BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 415
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 415 (Garcia)
          As Amended  June 25, 2013
          Majority vote
           
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          |ASSEMBLY:  |74-0 |(May 23, 2013)  |SENATE: |37-0 |(September 3,  |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    U. & C.  

           SUMMARY  :  Broadens the test protocols and accredited listing  
          agencies that eligible equipment can use to be eligible for  
          solar water heating incentives.  Specifically,  this bill   
          requires that solar water heating systems be certified by an  
          accredited listing agency in accordance with standards developed  
          by an accredited standard developer and adopted by the  
          California Public Utilities Commission (PUC).

           The Senate amendments are non-substantive and technical in  
          nature.  
           
           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.  


           COMMENTS :   

           1)Author's statement  .  "In 2007 when the Governor signed AB 1470  
            into law, the Solar Rating & Certification Corporation (SRCC)  
            was the only solar system certification then in existence. Now  
            there are several accredited listing agencies that have the  
            ability to review and issues certification for solar  
            collectors used in systems for multifamily residential,  
            commercial, government, nonprofit, educational, or industrial  
            water heating."

           2)Background  .  In 2010, PUC authorized the California Solar  
            Initiative (CSI) Thermal Program, which pays incentives to  
            solar water heating (SWH) systems that displace gas water  
            heating and electric water heating.  CSI Thermal Program was  
            established pursuant to AB 1470 (Huffman), Chapter 536,  
            Statutes of 2007, which contains direction to PUC in regards  
            to the program budget, design, and eligibility criteria.  AB  








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            1470 required that to be eligible for an incentive a  
            residential SWH system must be certified by SRCC.  AB 1470  
            also required that to be eligible for a non-residential  
            incentive the solar collectors must be certified by SRCC.

           3)Alternative Rating Systems  .  In October 2011, PUC approved a  
            D1111004 finding that International Association of Plumbing  
            and Mechanical Officials (IAPMO) are qualified to certify  
            solar water heating systems to SRCC standards.  CSI Thermal  
            Program Administrators were directed to accept SRCC  
            certifications rendered by IAPMO.  Additionally, the PUC's  
            decision established a process for considering requests for  
            acceptance of SRCC certification performed by entities that  
            are American National Standards Institute (ANSI) accredited  
            listing agencies.

            Part of the basis of PUC's decision was a letter from the  
            author of AB 1470, former Assemblymember Huffman, stating  
            that: "It's also important to note that regardless of the  
            entity certifying a solar water heating unit, all  
            certification entities should produce the same test results  
            when testing a solar water heater for eligibility?" 
            PUC also noted that there should not be much difference  
            between SRCC and other entities' test results.

           4)If there's no difference, why is this important  ?  As written  
            the current statute creates a monopoly for one listing entity.  
             If this bill is enacted manufacturers could choose among  
            testing agencies based on a variety of factors, such as  
            timeliness of testing, cost, or proximity to the test  
            facility. 

            This concept of multiple testing agencies is not new.  For  
            example, in electric equipment safety testing, Underwriters'  
            Laboratory (UL) develops test protocols.  UL also provides  
            equipment testing.  However, other accredited testing  
            organizations, such as Intertek, may also provide equipment  
            testing.

            According to the sponsors, this bill will provide an open,  
            competitive market for certification services.
           

          Analysis Prepared by  :    Susan Kateley / U. & C. / (916)  
          319-2083 








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