BILL ANALYSIS Ó
AB 1150
Page 1
ASSEMBLY THIRD READING
AB 1150 (V. Manuel Pérez)
As Amended May 27, 2011
Majority vote
UTILITIES & COMMERCE 12-0 NATURAL
RESOURCES 6-2
-----------------------------------------------------------------
|Ayes:|Bradford, Fletcher, |Ayes:|Chesbro, Brownley, |
| |Buchanan, Fong, Fuentes, | |Dickinson, Huffman, |
| |Carter, Roger Hernández, | |Monning, Skinner |
| |Huffman, Ma, Nestande, | | |
| |Skinner, Swanson | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Grove, Halderman |
| | | | |
-----------------------------------------------------------------
APPROPRIATIONS 12-5
--------------------------------
|Ayes:|Fuentes, Blumenfield, |
| |Bradford, Charles |
| |Calderon, Campos, Davis, |
| |Gatto, Hall, Hill, Lara, |
| |Mitchell, Solorio |
| | |
|-----+--------------------------|
|Nays:|Harkey, Donnelly, |
| |Nielsen, Norby, Wagner |
| | |
--------------------------------
SUMMARY : Extends the sunset on the Public Utility Commission's
(PUC's) Self-Generation Incentive Program (SGIP). Specifically,
this bill extends, for one year (through 2012), the PUC's
authority to collect $83 million annually from ratepayers for
the SGIP program.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor absorbable costs to the PUC.
COMMENTS : According to the author of the bill, "AB 1150 will
permit the extension of a vital program for incentivizing the
AB 1150
Page 2
development of distributive on-site renewable energy facilities.
These are needed to meet increasing statewide demand for
electricity, to reduce peak demand pressures on the grid and
help meet California public policy goals of reducing greenhouse
gas emissions and increase the supply of clean renewable
energy."
BACKGROUND : The PUC established the SGIP in 2001, pursuant to
energy crisis legislation, AB 970 (Ducheny), to offer incentives
for renewable and "super clean" distributed generation
resources. SGIP has been extended and/or modified by at least
five bills since then. Over the last 10 years, the SGIP has
offered rebates for installation of solar photovoltaic (solar
electric), wind, fuel cell, and, until 2008, certain renewable
and fossil fuel combustion resources meeting specified emissions
and efficiency standards. As of late 2010, SGIP had committed
$865 million for 1,489 projects totaling 437 megawatts (MW)
capacity. In 2006, when the PUC adopted the California Solar
Initiative, which established a rebate program for photovoltaic
technologies, photovoltaic technologies were severed from the
SGIP and annual funding for the program was reduced from $125
million to $83 million since 2007. SGIP provides upfront
payments, varying by the particular technology, to offset the
cost of capital investment.
The program is funded by a charge on all ratepayers (CARE
customers are excluded) which is reflected in the distribution
charges paid in each billing. This costs the ratepayer less
than $5 dollars per year.
SB 412 (Kehoe), Chapter 182 of 2009, extends the SGIP sunset
date through January 1, 2016, limits funding to $83 million
annually through 2011, and expands the eligible resources to
include all self-generation technologies that the PUC determines
will support the state's goals for the reduction of emissions of
greenhouse gases and that meet specified efficiency standards.
The PUC is in the process of implementing SB 412, and last month
released a staff proposal outlining program eligibility and
rebate levels.
Analysis Prepared by : Sue Kateley / U. & C. / (916) 319-2083
AB 1150
Page 3
FN: 0001086