BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1637


                                                                    Page  1


          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1637 (Low)


          As Amended  August 18, 2016


          Majority vote


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          |ASSEMBLY:  |      |(April 28,     |SENATE: |23-12 |(August 22,      |
          |           |      |2016)          |        |      |2016)            |
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                 (vote not relevant)




          Original Committee Reference:  BUDGET


          SUMMARY:  Increases and extend subsidies on energy programs.   
          Specifically, this bill:


          1)Doubles, from $80 million to $160 million annually, the amount  
            of ratepayer subsidy paid to customers who install certain  
            energy storage systems as part of the Self-Generation  
            Incentive Program, ask known as SGIP.  These subsidies are  
            intended to increase in energy storage and to provide both  
            customers and energy storage manufacturers with incentives to  
            purchase and install the systems. 


          2)Extends and expands the Net Energy Metering for Fuel Cells  
            (NEM FC) program in the following ways:  








                                                                    AB 1637


                                                                    Page  2




             a)   Extends the sunset from January 1, 2017, to December 31,  
               2021, for the NEM FC  program; 


             b)   Increases the overall megawatt cap on the program from  
               one megawatt to five megawatts; 


             c)   Increases the amount of megawatts eligible for ratepayer  
               subsidy by 500 megawatts over capacity on January 1, 2017;  
               and


             d)   Requires the Public Utilities Commission to adopt annual  
               greenhouse gas reduction standards for fuel cell electric  
               generation by March 1, 2017.


          The Senate amendments delete the previous contents of the bill  
          and replaces it with the current language.


          Analysis Prepared by:                                             
                          Christian Griffith / BUDGET / (916)319-2099  FN:  
           0004833