Solar e-Clips - Governor Davis Signs Energy Legislation 2001.10.13

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Governor Davis Signs Energy Legislation 2001.10.13

Governor Gray Davis has signed 10 energy-related bills from both the regular and special sessions of the legislature, including legislation to boost the use of renewable energy in the state,promote energy conservation, and alter the process for naming members to the Independent System Operator (ISO) board.

AB 1 by San Aanestad (R-Grass Valley) establishes a dispute resolution process at the California Public Utilities Commission (PUC) for the Large Nonresidential Standard Performance Contract Program. This energy efficiency program, which provides incentives for the installation of high-efficiency equipment for commercial and industrial users, is funded by the publicgoods surcharge on electric bills. The bill provides energy efficiency contractors with a venue to dispute the amount of money utilities pay them for upgrades or improvements made under thePUC's energy efficiency program, specifically the Large Nonresidential Standard Performance Contract Program. Link below to view the signing message.

AB 1233 by Assemblyman Anthony Pescetti (R-Rancho Cordova) requires the Public Utilities Commission (PUC) to investigate impediments to the in-state production and storage of natural gas as part of a gas utility's rate proceeding. The bill also discourages the PUC from adopting tariffs that discourage in-state production or storage of natural gas.

AB 1574 by Assemblyman Alan Lowenthal (D-Long Beach) authorizes the California Energy Commission (CEC) to develop and disseminate information measures to enhance energy efficiency for single-family homes that were built prior to the establishment of current energy efficiency standards. In addition, the new law allows for home inspection to include an energyefficiency component if requested by the buyer or seller at the point of sale.

AB 1724 by Assemblywoman Fran Pavley (D-Agoura Hills) allows residential and small commercial customers to continue to receive credits for the purchase of renewable energy systems after January 1, 2002. The bill requires the Energy Commission to establish a cap on the amount of the credit.

AB 21XX by Assemblyman Joe Canciamilla (D-Pittsburg) is part of a package sponsored by the Assembly Subcommittee on Natural Gas Cost and Availability aimed at stabilizing the price of natural gas. It streamlines the eminent domain process initiated by a public utility gas corporation by allowing the PUC to consolidate the public hearing process for a Certificate of Public Convenience. The bill also extends by 45 days the time the PUC has to complete its review of eminent domain petitions.

AB 26XX by Assemblyman Thomas Calderon (D-Montebello) provides initiatives for the installation of renewable and energy efficiency equipment. It requires the PUC, when establishing tariffs for distributed generation systems, to provide lower rates for those customers with more reliable systems. The bill also extends the sunset date of the State Assistance Fund for Energy, California Business and Industrial Development Corporation (SAFE-BIDCO), a non-profit statutorily created entity that provides energy efficiency loans to small businesses, from July 1, 2001 to July 1, 2011. In addition, the bill also requires that interest rates for the Energy Commission's energy conservation loan programs not be less than three percent.

AB 28XX by Assemblywoman Carole Migden (D-San Francisco) codifies Governor Davis' Executive Order (D-23-1) that directed the Electricity Oversight Board to develop and implement outage protocols for transmission and generation facilities located in the State. In addition, it authorizes the EOB to investigate wholesale electricity matters to protect California consumers' interests. The bill would also require the Independent System Operator to propose operation, maintenance, and availability standards for generators. The bill would sunset no later than January 1, 2003, and would become operative only upon the enactment of SB 39XX (Speier).

AB 48xx by Assemblyman Roderick Wright (D- South Central Los Angeles) creates a statewide solar training program and the "Sunny Homes Seal" for solar energy systems installed in new homes. The bill would also modify the Energy Commission's solar program to allow for the development of specifications for components of solar energy generation systems with battery back-up systems.

SB 47 by Senator Debra Bowen (D-Marina del Rey) requires appointments to the Independent System Operator Governing Board to be confirmed by the Senate. In January, Governor Davis signed AB 5X (Keeley) that replaced the 26-member ISO, dominated by generator and utility interests, with a five-member independent board appointed by the Governor. At the time, the Governor said he would sign a future bill (this legislation) requiring Senate confirmation of appointees. This bill also lengthens the terms of Board members from one to three years and provides for staggered terms. In addition, the bill authorizes the Electricity Oversight Board to investigate any matter related to the wholesale market for electricity.

SB 527 by Senator Byron Sher (D-Palo Alto) allows the Air Resources Board to impose penalties for the less egregious air pollution law violations through an administrative hearing process rather than by seeking civil prosecution through the court system. The administrative hearing process is more cost efficient for both ARB and the violator than civil court hearings. This bill also makes needed changes to the existing California Climate Action Registry to encourage businesses to participate in the Registry. Link below to view the signing message.