BILL ANALYSIS
AB 1536
Page 1
ASSEMBLY THIRD READING
AB 1536 (Blakeslee)
As Amended May 6, 2009
Majority vote
UTILITIES AND COMMERCE 15-0 NATURAL
RESOURCES 6-1
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|Ayes:|Fuentes, Duvall, Tom |Ayes:|Skinner, Gilmore, |
| |Berryhill, Blakeslee, De | |Brownley, Chesbro, Hill, |
| |La Torre, Carter, Fong, | |Knight |
| |Fuller, Furutani, | | |
| |Huffman, Krekorian, | | |
| |Skinner, Smyth, Swanson, | | |
| |Torrico | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|De Leon |
| | | | |
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APPROPRIATIONS 15-0
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|Ayes:|De Leon, Nielsen Ammiano, | | |
| | | | |
| |Charles Calderon, Davis, | | |
| |Duvall, Fuentes, Hall, | | |
| |Harkey, John A. Perez, | | |
| |Price, Skinner, Solorio, | | |
| |Audra Strickland, | | |
| |Torlakson | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Expands eligibility for Self-Generation Incentive
Program (SGIP) rebates to include energy storage facilities.
Specifically, this bill :
1)Changes the name of SGIP to the Clean Technology Incentive
Program (CTIP).
2)Provides that energy storage facilities using emerging
technologies and meeting other specified criteria, including
AB 1536
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that the facilities store energy from an eligible renewable
resource, are eligible for the CTIP.
3)Limits annual program spending to $75 million.
EXISTING LAW :
1)Authorizes the California Public Utilities Commission (PUC) to
administer SGIP to provide rebates for distributed generation
electricity generators.
2)Restricts SGIP-eligible technologies to wind and fuel cells
distributed generation technologies that meet or exceed
specific emissions standards.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor absorbable costs for the PUC to implement the
program modifications.
COMMENTS : According to the author, the purpose of this bill is
to create incentives for merchant-owned energy storage
facilities. The author believes these energy storage facilities
will be necessary for California to meet its renewable energy
goals since they can store energy produced by wind and solar
facilities at times that electricity is not needed to be used at
peak periods when demand for electricity is high.
California law requires all retail sellers of electricity to
meet at least 20% of the retail sales using electricity from
renewable resources by 2010 - a Renewable Portfolio Standard
(RPS). The California Air Resources Board has identified an
advancement of RPS to 33% by 2020 as one of the key actions
needed to be taken in order to meet the greenhouse gas reduction
goals of AB 32 (Nunez), Chapter 488, Statutes of 2006. Two
bills have been introduced this legislative session to create
the 33% RPS goals: AB 64 (Krekorian) and SB 14 (Simitian).
While several studies have determined that a 33% RPS is
achievable, it can only be met with a heavy reliance on wind and
solar energy. The problem is that both resources are
intermittent. They only produce electricity when the wind is
blowing or the sun is out. This intermittency could create
reliability problems for the electricity grid since the grid
managers cannot count on the solar and wind energy being
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available at the same time there is demand for electricity.
One way to resolve this reliability problem is to build more
electric generation facilities that are capable of turning on
and off quickly and can be available when the renewable energy
facilities are not operating. These facilities are referred to
as "peaker plants." They generally run on natural gas. They
are also relatively expensive to operate compared to other
generating facilities that operate around the clock.
Another approach would be to find ways to store the electrical
output of renewable facilities to use hours later. The storage
devices could help take the place of peaker plants.
This bill attempts to help promote the development of new energy
storage devices by allowing the PUC award rebates to new storage
devices out of an existing program that subsidizes distributed
generation technologies. To be eligible for the rebates the
storage facility must use an emerging technology that is not in
commercial use and the facility must store energy generated
from an eligible renewable resource during off-peak periods and
dispatched the energy during on-peak periods.
Analysis Prepared by : Edward Randolph / U. & C. / (916)
319-2083
FN: 0000936