BILL NUMBER: SB 585	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 31, 2011
	AMENDED IN SENATE  MARCH 29, 2011

INTRODUCED BY   Senator Kehoe

                        FEBRUARY 17, 2011

   An act to add Section 2851.1 to the Public Utilities Code,
relating to solar energy, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 585, as amended, Kehoe. Energy: solar energy systems: funding.
   Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations. Decisions of the PUC adopted the California Solar
Initiative. Existing law requires the PUC, in implementing the
California Solar Initiative, to ensure that the total cost over the
duration of the program does not exceed $3,350,800,000, and imposes
monetary limits on programs funded by charges collected from
customers of the state's 3 largest electrical corporations and on
programs adopted, implemented, and financed by charges collected by
local publicly owned electrical utilities.
   This bill would require the commission, to fund certain program
shortfalls, to first allocate interest accumulated from customer
collections and, for the remainder of the shortfall, to increase
collections from customers of the state's 3 largest electrical
corporations for specified programs.  The bill, except as
specified, would set the discount rate for interest at 4%. 
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2851.1 is added to the Public Utilities Code,
to read:
   2851.1.   Notwithstanding   (a)  
  As used in this section,"discount rate" means a financial
mechanism that provides a given amount of interest as an offset to
the loss of the time value of money on solar projects that receive
performance-based incentives under Section 2851. 
    (b)     Notwithstanding  the total
cost limitation in subdivision (e) of Section 2851, and the component
cost limitation in paragraph (1) of subdivision (e) of Section 2851,
the commission, to fund program shortfalls identified for incentive
step levels 8, 9, and 10 for nonresidential solar photovoltaic
systems, shall first allocate interest accumulated from customer
collections and, for the remainder of the shortfall, increase
collections from customers of San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company for programs described in paragraph (1) of subdivision (e) of
Section 2851. 
   (c) The discount rate shall be set at 4 percent, unless the
commission determines the rate should be reduced. 
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to make additional funding available as soon as possible
for the nonresidential incentives provided under the California Solar
Initiative, which needs the funds before 2012 to remain solvent, it
is necessary for this act to take effect immediately.