BILL NUMBER: AB 1470 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 1, 2007
AMENDED IN ASSEMBLY MAY 2, 2007
AMENDED IN ASSEMBLY APRIL 12, 2007
INTRODUCED BY Assembly Member Huffman
( Principal coauthor: Assembly Member
Leno )
(Coauthors: Assembly Members Carter,
Beall, Carter, DeSaulnier, Laird, Maze,
Wolk, and Saldana)
(Coauthors: Senators Kuehl and Romero)
FEBRUARY 23, 2007
An act to add the heading of Article 1 (commencing with Section
2851) to, and to add and repeal Article 2 (commencing with Section
2860) of, Chapter 9 of Part 2 of Division 1 of, the Public Utilities
Code, relating to solar energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1470, as amended, Huffman. Solar energy: Solar Hot
Water Heating and Efficiency Act of 2007.
(1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including gas
corporations. The commission is required to implement elements of the
California Solar Initiative, which modifies the self-generation
incentive program for distributed generation resources and provides
incentives to customer-side photovoltaics and solar thermal electric
projects under one megawatt. The commission is required to award
monetary incentives for up to the first megawatt of alternating
current generated by solar energy systems that meet the eligibility
criteria established by the State Energy Resources Conservation and
Development Commission (Energy Commission). The commission is
required to adopt a performance-based incentive program for solar
energy photovoltaic systems and is authorized to award monetary
incentives for solar thermal and solar water heating devices in a
total amount up to $100,800,000.
This bill would establish the Solar Water Heating and
Efficiency Act of 2007. The bill would make findings and declarations
of the Legislature relating to the promotion of solar hot
water heating systems and other technologies
that reduce natural gas demand. The bill would define several terms
for purposes of the act. The bill would require the commission, after
the receipt and evaluation of data on the appropriate level and type
of incentives needed to promote installation of solar hot
water heating systems from a specified pilot
program, to design and implement a program to incentivize the
installation of 200,000 solar hot water
heating systems in homes and businesses throughout the state by
2017.
The bill would require the commission, in consultation with the
Energy Commission and interested members of the public, to establish
eligibility criteria for the solar hot water
heating systems receiving gas customer funded incentives. The
commission would be required to establish conditions on those
incentives. The bill would specify that, except for the Solar
Hot Water Heating Pilot Program in San
Diego, only solar water heating technologies that displace
electricity are eligible for a portion of California Solar
Initiative funds, as determined by the commission. The commission
would be required to allocate not less than 10% of the overall funds
for installation of solar hot water heating
systems for specified affordable housing projects and specify
that no moneys be diverted from any existing programs for low-income
ratepayers. The bill would specify that the consumer rebates decline
over time and be structured to reduce the cost of solar hot
water heating technologies. The Energy
Commission, in coordinating efforts with the commission, would be
required to consider, when appropriate, coupling rebates for solar
hot water heating systems with
complementary energy efficient technologies. The commission would be
required to report to the Legislature, not later than July 1, 2010,
on the effectiveness of the program. The bill would repeal these
provisions on August 1, 2018.
(2) Existing law establishes a surcharge on all natural gas
consumed in the state to fund certain low-income assistance programs,
cost-effective energy efficiency and conservation activities, and
public interest research and development. Existing law requires a
public utility gas corporation, as defined, to collect the surcharge
from natural gas consumers, as specified. The moneys from the
surcharge are deposited in the Gas Consumption Surcharge Fund and are
continuously appropriated to specified entities, including to the
commission, or to an entity designated by the commission, to fund
low-income assistance programs, cost-effective energy efficiency and
conservation activities, and public interest research and development
not adequately provided by the competitive and regulated markets.
This bill would require the commission to fund the program of the
Solar Hot Water Heating and Efficiency
Act of 2007, for the service territories of the gas corporations,
through a surcharge applied to gas customers in those service
territories based on the amount of natural gas consumed, not to
exceed $250,000,000 over the course of the 10-year program. The bill
would require the commission to annually establish a surcharge rate
for each class of gas customers , and would except
. The bill would exempt from the
that surcharge those gas customers participating in the
California Alternate Rates for Energy (CARE) or Family Electric Rate
Assistance (FERA) programs. The bill would also authorize those
individual and families whose household income is at or
below 300% of the federal poverty level to apply for an
exemption. The bill would require a gas corporation to provide
information to their ratepayers no fewer than 2 times per year
regarding the availability of these exemptions . The bill would
require that the program be administered by the gas corporations or
3rd party administrators, as determined by the commission, and
subject to the supervision of the commission.
(3) The bill would require the governing body of each publicly
owned utility providing gas service to retail end-use gas customers,
to adopt, implement, and finance a solar hot water
heating system incentive program meeting certain
requirements.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The heading of Article 1 (commencing with Section 2851)
is added to Chapter 9 of Part 2 of Division 1 of the Public
Utilities Code, to read:
Article 1. Solar Photovoltaic Energy
Systems
SEC. 2. Article 2 (commencing with Section 2860) is added to
Chapter 9 of Part 2 of Division 1 of the Public Utilities Code, to
read:
Article 2. Solar Hot Water Water
Heating Systems
2860. This article shall be known, and may be cited, as the Solar
Hot Water Water Heating and Efficiency
Act of 2007.
2861. As used in this article, the following terms have the
following meanings:
(a) "Energy Commission" means the State Energy Resources
Conservation and Development Commission.
(b) "Gas customer" includes both "core" and "noncore" customers,
as those terms are used in Chapter 2.2 (commencing with Section 328)
of Part 1, that receive retail end-use gas service within the service
territory of a gas corporation.
(c) "kWth" means the kilowatt thermal capacity of a solar
hot water water heating system, measured
consistent with the standard established by the SRCC.
(d) "kWhth" means kilowatthours thermal as measured by the number
of kilowatts thermal generated , or displaced, in an hour.
(e) "New Solar Homes Partnership" means the 10-year program,
administered by the Energy Commission, encouraging solar energy
systems in new home construction.
(f) "Solar heating collector" means the a
device that is used to collect or capture heat from the sun and
that is generally, but need not be, located on a roof.
(g) "Solar hot water water heating
system" means a solar energy device that has the primary purpose of
reducing demand for natural gas through water heating, space heating,
or other methods of capturing energy from the sun to reduce natural
gas consumption in a home, businesses, or any building receiving
natural gas that is subject to the surcharge established pursuant to
Section 2860, or exempt from the surcharge pursuant to subdivision
(c) of Section 2863, and that meets or exceeds the eligibility
criteria established pursuant to Section 2864. "Solar hot
water water heating systems" do not include
solar pool heating systems.
(h) "SRCC" means the Solar Rate Rating
and Certification Corporation.
2862. The Legislature finds and declares all of the following:
(a) California is heavily dependent on natural gas, importing more
than 80 percent of the natural gas it consumes.
(b) Rising worldwide demand for natural gas and a shrinking supply
create rising and unstable prices that can harm California consumers
and the economy.
(c) Natural gas is a fossil fuel and a major source of global
warming pollution and the pollutants that cause air pollution,
including smog.
(d) California's growing population and economy will put a strain
on energy supplies and threaten the ability of the state to meet its
global warming goals unless specific steps are taken to reduce demand
and generate energy cleanly and efficiently.
(e) Water heating for domestic and industrial use relies almost
entirely on natural gas and accounts for a significant percentage of
the state's natural gas consumption.
(f) Solar hot water water heating
systems represent the largest untapped natural gas saving potential
remaining in California.
(g) In addition to financial and energy savings, solar
hot water water heating systems can help protect
against future gas and electricity shortages and reduce our
dependence on foreign sources of energy.
(h) Solar hot water water heating
systems can also help preserve the environment and protect public
health by reducing air pollution, including carbon dioxide, a leading
global warming gas, and nitrogen oxide, a precursor to smog.
(i) Growing demand for these technologies will create jobs in
California as well as promote greater energy independence, protect
consumers from rising energy costs and result in cleaner air.
(j) It is in the interest of the State of California to promote
solar hot water water heating systems
and other technologies that directly reduce demand for natural gas in
homes and businesses.
(k) It is the intent of the Legislature to build a mainstream
market for solar hot water water heating
systems that directly reduces demand for natural gas in homes,
businesses, and government buildings. Toward that end, it is the goal
of the Solar Hot Water and Efficiency Act of 2007
this article to install at least 200,000 solar
hot water water heating systems on homes,
businesses, and government buildings throughout the state by 2017,
thereby lowering prices and creating a self-sufficient market that
will sustain itself beyond the life of this program.
(l) It is the intent of the Legislature that the solar
hot water water heating system incentives
created by the act should be a cost-effective investment by gas
customers. Gas customers will recoup the cost of their investment
through lower prices as a result of avoiding purchases of natural
gas, and benefit from additional system stability and pollution
reduction benefits.
2863. (a) After meaningful data is available and evaluated by the
commission from the Solar Hot Water Heater
Water Heating Pilot Project conducted by the San Diego Regional
Energy Organization on the appropriate level and type of incentives
needed to promote installation of solar hot water
water heating systems, the commission shall do all of the
following:
(1) Design and implement a program applicable to the service
territories of a gas corporation, to achieve the goal of the
Legislature to promote the installation of 200,000 solar hot
water water heating systems in homes and
businesses throughout the state by 2017.
(2) The program shall be administered by gas corporations or
third-party administrators, as determined by the commission, and
subject to the supervision of the commission.
(3) The commission shall coordinate the program with the Energy
Commission's New Solar Homes Partnership to achieve the goal of
building zero-energy homes.
(b) (1) The commission shall fund the program through the use of a
surcharge applied to gas customers based upon the amount of natural
gas consumed. The surcharge shall be in addition to any other charges
for natural gas sold or transported for consumption in this state.
(2) The commission shall impose the surcharge at a level that is
necessary to meet the goal of installing 200,000 solar hot
water water heating systems , or the
equivalent output of 200,000 solar water heating systems, on
homes and businesses in California by 2017. Funding for the program
established by this article shall not, for the collective service
territories of all gas corporations, exceed two hundred fifty million
dollars ($250,000,000) over the course of the 10-year program.
(3) The commission shall annually establish a surcharge rate for
each class of gas customers. Any surcharge imposed to fund
the program designed and implemented pursuant to this article shall
not be imposed upon a gas customer whose household income is below
300 percent of the federal poverty level. Any gas
customer participating in the California Alternate Rates for Energy
(CARE) or Family Electric Rate Assistance (FERA) programs shall be
exempt from paying any surcharge imposed to fund the program designed
and implemented pursuant to this article. Additionally, individuals
and families whose household income is at or below 300 percent of the
federal poverty level may apply for an exemption from paying any
surcharge designed and implemented pursuant to this article. Gas
corporations shall provide information to their ratepayers no fewer
than two times per year regarding the availability of these
exemptions.
(4) Any surcharge imposed to fund the program designed and
implemented pursuant to this article shall not be imposed upon the
portion of any gas customer's procurement of natural gas that is used
or employed for a purpose that Section 896 excludes from being
categorized as the consumption of natural gas.
(4)
(5) The gas corporation or other person or entity
providing revenue cycle services, as defined in Section 328.1, shall
be responsible for collecting the surcharge.
(c) Funds shall be allocated for the benefit of gas customers to
promote utilization of solar hot water water
heating systems.
(d) In designing and implementing the program required by this
article, no moneys shall be diverted from any existing programs for
low-income ratepayers or cost-effective energy efficiency programs.
2864. (a) The commission, in consultation with the Energy
Commission and interested members of the public, shall establish
eligibility criteria for solar hot water
water heating systems receiving gas customer funded incentives
pursuant to this article. The criteria should specify and include all
of the following:
(1) Design, installation, and energy output or displacement
standards. To be eligible for rebate funding, a solar hot
water residential solar water heating system
shall, at a minimum, have a SRCC OG-300 Solar Water Heating System
Certification. Solar collectors used in systems for multifamily
residential, commercial, or industrial water heating shall, at a
minimum, have a SRCC OG-100 Solar Water Heating System Certification.
(2) Require that solar hot water water
heating system components are new and unused, and have not
previously been placed in service in any other location or for any
other application.
(3) Require that solar hot water water
heating collectors have a warranty of not less than 10 years to
protect against defects and undue degradation.
(4) Require that solar hot water water
heating systems are in buildings connected to a natural gas
utility's distribution system within the state.
(5) Require that solar hot water water
heating systems have meters or other kWhth measuring devices in
place to monitor and measure the system's performance and the
quantity of energy generated or displaced by the system. The
criteria shall require meters for systems displacing over 30 kWh
th . The criteria may require meters for systems 30 kWh
th or smaller.
(6) Require that solar hot water water
heating systems are installed in conformity with the
manufacturer's specifications and all applicable codes and standards.
(b) No gas customer funded incentives shall be made for a solar
hot water water heating system that does
not meet the eligibility criteria.
2865. (a) The commission shall establish conditions on gas
customer funded incentives pursuant to this article. The conditions
shall require both of the following:
(1) Appropriate siting and high-quality installation of the solar
hot water water heating system based on
installation guidelines that maximize the performance of the system
and prevent qualified systems from being inefficiently or
inappropriately installed. The conditions shall not impact housing
designs or densities presently authorized by a city, county, or city
and county. The goal of this paragraph is to achieve efficient
installation of solar hot water water heating
systems and promote the greatest energy production or
displacement per gas customer dollar.
(2) Appropriate energy efficiency improvements in the new or
existing home or commercial structure where the solar hot water
system is installed.
(b) The commission shall set rating standards for equipment,
components, and systems to ensure reasonable performance and shall
develop standards that provide for compliance with the minimum
ratings.
2866. The commission shall provide not less than 10 percent of
the overall funds for installation of solar hot water
water heating systems on low-income and
affordable housing projects undertaken pursuant to Section 50052.5,
50053, 50079.5, or 50199.14 of the Health and Safety Code.
If deemed appropriate in consultation with the California Tax Credit
Allocation Committee, the commission may establish a grant program
or a revolving loan or loan guarantee program for affordable housing
projects consistent with the requirements of Chapter 5.3 (commencing
with Section 25425) of Division 15 of the Public Resources Code.
2867. (a) The rebates provided through this program shall decline
over time. They shall be structured so as to drive down the cost of
the solar hot water water heating
technologies, and be paid out on a performance-based incentive basis
so that incentives are earned based on the actual energy savings
, or on predicted energy savings as established by the commission
.
(b) The commission shall consider federal tax credits and other
incentives available for this technology when determining the
appropriate rebate amount.
(c) In coordinating with the commission, the Energy Commission
shall consider when appropriate, consider coupling rebates for solar
hot water water heating systems with
complementary energy efficiency technologies, including, but not
limited to, efficient hot water heating tanks and tankless or on
demand hot water systems that can be installed in addition to the
solar hot water water heating system.
2867.1. Not later than July 1, 2010, the commission shall report
to the Legislature as to the effectiveness of the program and make
recommendations as to any changes that should be made to the program.
This report shall include justification for the size of the rebate
program in terms of total available incentive moneys as well as the
anticipated benefits of the program in its entirety. To facilitate
the understanding of how solar hot water
water heating systems compare with other clean energy and
energy efficiency technologies, all documents related to and rebates
provided by this program shall be measured in both kWhth and therms
of natural gas saved.
2867.2. Except for the Solar Hot Water
Water Heating Pilot Program in San Diego, solar hot
water water heating technologies shall not be
eligible for California Solar Initiative (CSI) funds, pursuant to
Section 2851, unless they also displace electricity, in which case
only the electricity displacing portion of the technology may be
eligible under the CSI program, as determined by the commission.
2867.3. In order to further the state goal of encouraging the
installation of 200,000 solar hot water heaters by
2017, the governing body of each publicly owned utility providing
gas service to retail end-use gas customers shall adopt, implement,
and finance a solar hot water water heating
system incentive program that does all the following:
(a) Relies upon meaningful data from the Solar Hot Water
Heater Water Heating Pilot Project conducted by
the San Diego Regional Energy Organization on the appropriate level
and type of incentives needed to promote installation of solar
hot water water heating systems.
(b) Ensures that any solar hot water water
heating system receiving monetary incentives complies with the
eligibility criteria equivalent to those established by the
commission, in consultation with the Energy Commission and interested
members of the public, pursuant to Section 2864.
(c) Includes conditions for the receipt of monetary incentives for
solar hot water water heating systems
consistent with those adopted by the commission pursuant to
subdivision (a) of Section 2865.
(d) Includes minimum ratings for equipment, components, and
systems consistent with those adopted by the commission pursuant to
subdivision (b) of Section 2865.
(e) Provides that not less than 10 percent of the overall funds be
used for installation of solar hot water
water heating systems on low-income and affordable
housing projects undertaken pursuant to Section 50052.5, 50053, or
50199.14 of the Health and Safety Code. If deemed appropriate in
consultation with the California Tax Credit Allocation Committee, the
governing board may establish a grant program or a revolving loan or
loan guarantee program for affordable housing projects consistent
with the requirements of Chapter 5.3 (commencing with Section 25425)
of Division 15 of the Public Resources Code.
2867.4. This article shall remain in effect only until August 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before August 1, 2018, deletes or extends
that date.