BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2296
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2296 (Saldana) - As Amended:  April 27, 2010 

          Policy Committee:                              UtilitiesVote:9-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill allows a solar energy system located on or adjacent to  
          the end-use customer's owned or rented premises to be eligible  
          for ratepayer-funded incentives from the California Solar  
          Initiative (CSI).

           FISCAL EFFECT 

          Ongoing annual special fund cost of $115,000 for one position to  
          oversee specific implementation of the expanded site definitions  
          for eligible solar energy systems, including monitoring the  
          impact of the site definition change on the program outcome,  
          coordinating consistent policies with net metering tariffs and  
          interconnection rules, and overseeing implementation of database  
          changes to track the revised site definition.

           COMMENTS  

           1)Purpose  . According to the author, this bill is intended to  
            allow a resident, commercial establishment, or owner of a  
            multi-family dwelling to place a solar energy system near his  
            or her principal location, and be eligible for CSI rebates.  
            Some multi-family dwellings may not be optimal for solar  
            installation directly on the roof-top.  Allowing near-site  
            application may expand the use of solar to generate  
            electricity for multi-family dwellings.

           2)Background  . SB 1 (Murray)/Chapter 132 of 2006, created the CSI  
            with the goal of installing 3,000 MW of solar PV in California  
            within 10 years. The PUC reports that the CSI remains on  
            target to meet the goal of 1,750 MW installed in the territory  
            of the investor-owned utilities (IOUs) by 2017.  (In addition  








                                                                  AB 2296
                                                                  Page  2

            to the IOUs, 1,750 MW, the New Homes Solar Programs, run by  
            the California Energy Commission, is responsible for 400 MW  
            and, the publicly-owned utilities are responsible for the  
            balance of the statewide goal.)  Although each utility  
            territory is progressing at different rates, the 322 MW both  
            installed and in the pipeline represent 18 percent of the  
            total program's goal of 1,750 MW after two years in the  
            10-year program. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081