BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 2249 (Buchanan) - Solar energy.
          
          Amended: August 6, 2012         Policy Vote: E,U&C 10-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 16, 2012                     Consultant: 
          Bob Franzoia  
          
          SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.


          Bill Summary: AB 2249 would expand eligibility for incentives 
          under the California Solar Initiative CSI thermal program to 
          include multifamily residential, governmental, educational, and 
          nonprofit solar pool heating systems.

          Fiscal Impact: $166,000 from the Public Utilities Reimbursement 
          Account in 2012-13 and 2013-14 to the Public Utilities 
          Commission to implement expanded program eligibility 
          requirements.
           $120,000 annually beginning 2014-15 to monitor the program and 
            ensure that the new requirements are met by the utilities' 
            program administrators.
           Unknown, likely major accelerated CSI thermal program 
            expenditures annually.

          Background: In 2007, the commission established the CSI, a $2.16 
          billion ratepayer funded incentive program with a goal of 
          installing 1,940 megawatts of generation and creating a 
          sustainable solar industry.  The thermal program (natural gas 
          displacing) has a balance of approximately $240 million.  Single 
          family residential systems are and would remain ineligible.

          Staff Comments: This bill would require the commission to (1) 
          determine an appropriate division of funds between solar water 
          heating systems and solar pool heating systems (2) review 
          whether rebate levels established by the commission will be 
          sufficient to spur investment to reach the goals of the program 
          and to report the results to the Legislature by no later than 
          July 1, 2013 and (3) direct gas corporations or third-party 
          administrators to implement the program changes made by this 
          bill no later than July 1, 2013 and marketing of the program as 
          revised commencing by August 1, 2013.








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          In general, requiring entities to complete relatively complex 
          tasks within six months of the effective date of a bill will 
          result in increased costs.  Staff recommends this bill be 
          amended to change reporting and implementation date from July 1, 
          2013 to January 1, 2014.  Also, it is unclear why language 
          stating it is the intent of the Legislature that the solar water 
          heating system incentives should be a cost effective investment 
          by gas customers is being struck.  This would be inconsistent 
          with other commission market support programs which require 
          ratepayer benefit.  

          The proposed amendments would delay the PUC reporting date from 
          July 1, 2013 to February 1, 2014 and delete the requirement that 
          the marketing of the revised program commence by August 1, 2013.