BILL ANALYSIS
AB 2296
Page 1
ASSEMBLY THIRD READING
AB 2296 (Saldana)
As Amended April 27, 2010
Majority vote
UTILITIES & COMMERCE 9-3
APPROPRIATIONS 11-4
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|Ayes:|Buchanan, Fong, Fuentes, |Ayes:|Fuentes, Ammiano, |
| |Huffman, Ma, Skinner, | |Bradford, Coto, Davis, |
| |Swanson, Villines, | |Hill, Hall, Skinner, |
| |Bradford | |Solorio, Torlakson, |
| | | |Torrico |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Tom Berryhill, |Nays:|Conway, Miller, Nielsen, |
| |Fuller | |Norby |
| | | | |
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SUMMARY : Allows a solar energy system that is located on a
near-site location to the end-use customer, to be eligible for
ratepayer-funded incentives from the California Solar Initiative
(CSI), and defines near-site as located on or adjacent to the
customer's owned, leased, or rented premises.
EXISTING LAW :
1)Establishes CSI, which provides $3.3 billion in
ratepayer-funded incentives with the following goals:
a) Install 3,000 megawatts (MW) equivalent generation
capacity of solar photovoltaic (PV) panels;
b) Establish a self-sufficient solar industry in which
solar energy systems are a viable mainstream option for
both homes and businesses in 10 years; and,
c) Place solar energy systems on 50% of new homes in 13
years.
2)CSI requires the California Energy Commission (CEC), in
consultation with the California Public Utilities Commission
(CPUC) and others, to establish eligibility criteria for solar
energy systems receiving ratepayer funded incentives that
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include the following:
a) The solar energy system is intended primarily to offset
part or all of the consumer's own electricity demand; and,
b) The solar energy system is located on the same premises
of the end-use consumer where the consumer's own
electricity demand is located.
3)Requires CEC to adopt guidelines for solar energy systems
receiving ratepayer funded incentives at a publicly noticed
meeting offering all interested parties an opportunity to
comment.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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 : 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 its roof-top. By allowing near-site application,
this may expand the use of solar to generate electricity for
multi-family dwellings with land that is close by that may be
more conducive to electricity generation.
SB 1 (Murray), Chapter 132, Statutes of 2006, created CSI, a
$3.3 billion program with the goal of installing 3,000 MW of
solar PV in California within 10 years. The CSI requires the
solar energy systems to be located on the same premises of the
end-use consumer where the consumer's own electricity demand is
located. Any excess electricity generated is "sold" back to the
utility, a process referred to as net-energy metering. Over a
12-month period, customers on net-energy metering will pay for
the net amount of electricity used from their utility over and
above the amount of electricity their solar systems generate (in
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addition to monthly nongeneration charges incurred).
Public Utilities Code Section 2827.9 provides net-energy
metering for an eligible biogas digester customer-generators
(manure- methane fueled generation) and allows the electrical
generating facility to be located "on or adjacent to the
customer's owned, leased, or rented premises?." and includes
other criteria. This bill would use the same definition for the
CSI rebates.
Net-energy metering for residential and business customers can
only apply when the solar energy system is located on the same
premises of the meter it is off-setting. This bill does not
address whether or how a "near-site" solar energy system would
off-set electricity consumption at a meter located at a
different premise.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0004342