BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1150|
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THIRD READING
Bill No: AB 1150
Author: V. Manuel Pérez (D)
Amended: 9/8/11 in Senate
Vote: 21
SENATE ENERGY, UTILITIES & COMM.COMMITTEE : 11-0, 7/5/11
AYES: Padilla, Fuller, Berryhill, Corbett, De León,
DeSaulnier, Pavley, Rubio, Simitian, Strickland, Wright
SENATE APPROPRIATIONS COMMITTEE : 9-0, 8/25/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
ASSEMBLY FLOOR : 52-19, 6/2/11 - See last page for vote
SUBJECT : Self-generation incentive program
SOURCE : Foundation Windpower
DIGEST : This bill authorizes the California Public
Utilities Commission (PUC) to collect funds for an
additional $83 million in 2012 from gas and electric
ratepayers to fund the Self-Generation Incentive Program
through
December 31, 2014.
Senate Floor Amendments of 9/8/11 require the PUC, in
future proceedings, provide for an equitable distribution
of the cost and benefits of the self-generation incentive
program.
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AB 1150
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2
Senate Floor Amendments of 9/2/11 extend funding of the
Self-generation incentive program an additional two years
from December 31, 2012 to December 31, 2014; add intent
language.
ANALYSIS : Current law authorizes the California Public
Utilities Commission (PUC) to administer the
Self-Generation Incentive Program (SGIP) through 2015 and
permits the PUC to annually collect $83 million from gas
and electric ratepayers to fund the program through 2011.
The program is intended to provide incentive payments for
generation on the customer's side of the meter for any
distributed generation resources (DG) that the PUC
determines will support the state's goals for reduction of
emissions of greenhouse gases.
Background
SGIP History . During the 2000-01 energy crisis the PUC was
directed by the Legislature to create a program of
incentives for renewable and super clean, gas-fired DG to
reduce electricity demand. As a result, the PUC
established the SGIP in March 2001 which has offered
rebates for installation of technologies such as
photovoltaics, wind, fuel cells, waste gas, and ultra-clean
and low emission gas-fired DG (combined heat and power
ÝCHP]). Legislation adopted in 2004 eliminated CHP from
the program as of January 1, 2008. In 2006 photovoltaic
incentives were moved out of the SGIP to the California
Solar Initiative effective January 1, 2007. Beginning in
2008 only fuel cell and wind technologies and storage if
coupled with wind or fuel cells were eligible for
incentives.
In 2009 the Legislature expanded the SGIP to include any DG
that help to achieve the state's greenhouse gas reduction
goals. The PUC has not concluded its rulemaking to
implement SB 412 (Kehoe), Chapter 182, Statutes of 2009.
As a consequence wind and fuel cells continued to be
eligible. In the winter of 2010 it became apparent that
program funding could be depleted before the PUC
established rules under SB 412 so program applications were
suspended January 1, 2011.
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Comments
Purpose of this bill . According to the author's office,
this bill will permit the extension of a vital program for
incentivizing the 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Program oversight Absorbable within existing
resources Special*
Increases state agency About $1,000
Various
energy costs
Incentives paid to Unknown potential revenues
Various
state agencies
* Public Utilities Commission Utilities Reimbursement
Account.
SUPPORT : (Verified 9/6/11)
Foundation Windpower (source)
A123 Systems, Inc.
Associated General Contractors
California Business Properties Association
California Energy Storage Alliance
California Institute of Technology
California Large Scale Consumer Association
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California League of Conservation Voters
California Manufacturers and Technology Association
California Solar Energy Industries Association
California Wind Energy Association
Calmac Manufacturing Corporation
Capstone Turbine Corporation
Center for Sustainable Energy
Clean Economy Network
Clean Power Campaign
Debenham Energy, LLC
Deeya Energy, Inc.
Distributed Wind Energy Association
EnerVault Corporation
Environment California
Environmental Defense Fund
Fluidic Energy
FuelCell Energy
Greensmith Energy Management Systems, LLC
Ice Energy, Inc.
Industrial Environmental Association
LightSail Energy, Inc.
Mitsubishi Cement Corporation
Mitsubishi Power Systems
Pacific Environment
Powergetics
Prudent Energy Corporation
Renewable Energy Systems Americas, Inc.
Saft America
Samsung SFI America, Inc.
Seeo, Inc.
Sierra Club
Silent Power, Inc.
Solar Turbines, Inc.
Sonoma County Water Agency (if amended)
Sumitomo Electric
SunEdison
Sunverge Energy, LLC
SustainX, Inc.
TechNet
Tecogen
Teichert Materials
Union of Concerned Scientists
Xtreme Power, Inc.
Younicos
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OPPOSITION : (Verified 9/6/11)
California Chamber of Commerce
Howard Jarvis Taxpayers Association
ARGUMENTS IN SUPPORT : Foundation Windpower writes "that
distributed generation utilizing 100% renewable energy
generation equipment is sound public policy that is
consistent with the goals of SB 412 (Kehoe 2009). Mending
and extending the SGIP through AB 1150 will help California
meet the goals of AB 32 and the Renewable Portfolio
Standard by supporting Governor Brown's goal of 12,000 MW
in distributed renewable generation by 2020. California
businesses state that these advantages are material
inducements to retain their California presence and
continue to invest in their California-based operations.
Given the public policy, employment, and economic
development benefits, the SGIP should be extended for a
reasonable and predictable period through 2016. An
extension will give businesses in the state of California a
stable planning horizon to invest in distributed generation
and continue their investments in California."
ARGUMENTS IN OPPOSITION : California Chamber of Commerce
writes:
"At a time when the state significantly reduced funding
to courts, reduced support for its higher education
system and with the prospect of further reductions to
education, it is inappropriate to extend changes to fund
the Self-Generation Incentive Program without it being
prioritized within the state's spending plan. This
charge is collected from all electricity rate payers, yet
subsidizes a small group that benefit from it.
"Moreover, AB 1150 will result in higher electricity
charges when we should be reducing costs on business to
make California more competitive with other states."
ASSEMBLY FLOOR : 52-19, 6/2/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
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Buchanan, Butler, Charles Calderon, Campos, Carter,
Cedillo, Davis, Eng, Feuer, Fletcher, Fong, Fuentes,
Furutani, Galgiani, Gatto, Gordon, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Lara, Bonnie
Lowenthal, Ma, Mendoza, Mitchell, Monning, Olsen, Pan,
Perea, V. Manuel Pérez, Portantino, Smyth, Solorio,
Swanson, Torres, Wieckowski, Williams, Yamada, John A.
Pérez
NOES: Conway, Donnelly, Beth Gaines, Garrick, Grove,
Hagman, Halderman, Harkey, Jones, Knight, Logue, Mansoor,
Miller, Morrell, Nielsen, Norby, Silva, Valadao, Wagner
NO VOTE RECORDED: Brownley, Chesbro, Cook, Dickinson,
Gorell, Hall, Jeffries, Nestande, Skinner
RM:kc 9/9/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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