BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          AB 1923 -  Evans                        Hearing Date: June 15,  
          2010                       A
          As Amended:         April 8, 2010                 NON FISCAL      
            B

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                                      DESCRIPTION
           
           Current law  provides $3.3 billion in ratepayer-funded incentives  
          for the California Solar Initiative (CSI) which includes $50  
          million for Research, Development, Deployment, and Demonstration  
          (RD&D) for development of solar and other distributed generation  
          (DG) technologies. 

           Current law  requires the California Public Utilities Commission  
          to report to the Legislature a description of each RD&D grant  
          awarded, including the intended purpose(s) to be achieved by the  
          particular grant, and the results of each grant.

           This bill  authorizes the CPUC to allocate RD&D funds for RD&D of  
          anti-theft technology to protect investments in solar energy  
          systems. 


                                      BACKGROUND
          
          The CSI has a budget of $3.3 billion of which $50 million is  
          allocated for RD&D.  Approximately half of that $50 million has  
          been allocated by the CPUC in the form of competitive grants.   
          Currently the intended use of the RD&D money is to fund solar  
          research and demonstration projects that will measurably reduce  
          the cost of and accelerate the installation of solar and other  
          distributed technologies that could employ solar for generation,  
          storage, or that could reduce the use of natural gas. While none  











          of that RD&D money is currently spent on solar security, the  
          RD&D program does not prevent the CPUC from awarding a contract  
          to a project related to anti-theft technologies.

          The nation's domestic solar PV market grew from 220 MW in 2007  
          to 357MW in 2008.  There were more than 60,000 distributed solar  
          electric systems interconnected across the United States by the  
          end of 2008.  Unfortunately, this increase in the number of  
          installations has created more opportunity for solar panel  
          theft.  According to the California State Sherrifs Association,  
          between June 2008 and September 2009 in Napa County alone, over  
          400 solar panels worth more than $400,000 were stolen from  
          wineries.  Solar panels that are stolen are nearly impossible to  
          recover because many panels have no serial number or other  
          method of identification.  Consequently, the potential for  
          contractors to buy them cheap and sell them back to customers at  
          full price without any repercussions exists.  Each 3 foot by 4  
          foot panel costs approximately $1,000 or more.  It has been  
          estimated that two people working together can dismantle a  
          fairly large solar array and abscond with as many as 50 panels  
          in about an hour. "Putting them up takes some time, taking them  
          down is simple."  There are current security options for solar  
          panels:  While there are no foolproof systems to prevent theft,  
          in the last few years several companies have begun selling  
          customized stainless-steel nuts and bolts to lock the panels  
          down.  The fasteners fit the different types of solar rack  
          assemblies and can be cut in a one-of-a-kind pattern so regular  
          wrenches and screwdrivers don't work to remove the panels. The  
          installer and/ or owner keep the key.  The cost is approximately  
          $400 for installation of a 50 panel system.  

          A second solar security option involves wiring an alarm through  
          each panel that sounds a 120 dB siren if a panel connection is  
          disturbed. Simultaneously, the system dials up to eight  
          pre-programmed numbers to notify the owner and police.  The cost  
          of these systems is between one to two thousand dollars. 

          While the CSI has not focused on distributed solar security  
          technologies, the CSI program  "promotes" the use of continuous  
          metering and monitoring technologies that notify system owners  
          immediately if the system has been tampered with.  Specifically,  
          the CSI program rules currently require metering and monitoring  
          on all systems (with an exception for small systems and systems  
          built before 2007).   In addition, the CSI program conducts  










          marketing and outreach to potential and existing solar  
          customers.  These programs have been expanded to include  
          additional information about avoiding solar system theft. 


                                       COMMENTS


              1)   Current RD&D Program.  The CPUC argues that this bill is  
               unnecessary due to the fact that the CPUC RD&D program does  
               not prevent the CPUC from awarding a contract to a project  
               related to anti-theft technologies.  However, currently no  
               monies from this program have been allocated toward  
               anti-theft technologies.  One of the over-arching goals of  
               the CSI program is to make solar economically viable to  
               consumers.  While there are several current anti-theft  
               technologies commercially available, consumers might argue  
               the cost of these technologies coupled with the risk of  
               theft makes purchasing solar financially risky especially  
               in rural areas.  In addition, the CSI RD&D program is a  
               competitive application process.  According to the CPUC,  
               the most recent soliciation received over 90 applicants.   
               This bill would only make applicants who do work related to  
               anti-theft technologies eligible for grants under the RD&D  
               program.  The bill would not mandate that the CPUC spend  
               any set amount of RD&D money on solar security.



              2)   Federal Action  .  U.S. Rep. Mike Thompson (Napa Valley)  
               has added a provision against solar thefts in the Solar  
               Technology Roadmap Act.  The provision would create a  
               national registry for solar panel serial numbers than can  
               be refered to in case of theft.  The bill has been passed  
               by the House of Representitives and now awaits a Senate  
               vote. 

           



                                   ASSEMBLY VOTES

           Assembly Utilities & Commerce         (9-2)










          Assembly Floor                     (46-25)

                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          California Solar Industries Association
          California State Sheriffs' Association 
          Napa County Office of Sheriff-Coroner
          Pacific Gas and Electric Company 
          Wine Institute


           Oppose:
           
          California Public Utilities Commission


          Maurice Pitesky 
          AB 1923 Analysis
          Hearing Date:  June 15, 2010