BILL ANALYSIS Ó
AB 1150
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1150 (V. Manuel Pérez)
As Amended September 8, 2011
Majority vote
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|ASSEMBLY: |52-19|(June 2, 2011) |SENATE: |30-6 |(September 9, |
| | | | | |2011) |
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Original Committee Reference: U. & C.
SUMMARY : Extends the sunset on the Public Utility Commission's
(PUC's) Self-Generation Incentive Program (SGIP). Specifically,
this bill extends through 2014 the PUC's authority to collect
$83 million annually from ratepayers for SGIP program.
The Senate amendments delete the Assembly version of this bill,
and instead extends through 2014, PUC's authority to collect $83
million annually from ratepayers for SGIP program.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor absorbable costs to PUC.
COMMENTS : According to the author of the bill, "AB 1150 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."
BACKGROUND : PUC established the SGIP in 2001, pursuant to
energy crisis legislation, AB 970 (Ducheny, Battin and Keeley),
Chapter 329, Statutes of 2000, 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, 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
AB 1150
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standards. As of late 2010, SGIP had committed $865 million for
1,489 projects totaling 437 megawatts (MW) capacity. In 2006,
when PUC adopted the California Solar Initiative, which
established a rebate program for photovoltaic technologies,
photovoltaic technologies were severed from 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, Statutes of 2009, extends 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 PUC
determines will support the state's goals for the reduction of
emissions of greenhouse gases and that meet specified efficiency
standards. PUC is in the process of implementing SB 412
(Kehoe), and last month released a staff proposal outlining
program eligibility and rebate levels.
Analysis Prepared by : Sue Kateley / U. & C. / (916) 319-2083
FN:
0002893