BILL NUMBER: AB 2460 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Irwin
FEBRUARY 19, 2016
An act to amend Section 2851 of the Public Utilities
Code, relating to energy. An act to amend Sections
2861, 2863, 2864, 2865, 2866, 2867, and 2867.3 of, to amend and
renumber Section 2862 of, to repeal Sections 2860, 2867.1, and 2867.2
of, and to repeal and add Section 2867 .4 of, the Public
Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2460, as amended, Irwin. California Solar Initiative:
low-income residential housing. Solar thermal systems.
The Solar Water Heating and Efficiency Act of 2007, until August
1, 2017, requires the Public Utilities Commission, if it determines
that a solar water heating program is cost effective for ratepayers
and in the public interest, to implement a program to promote the
installation of 200,000 solar water heating systems in homes,
businesses, and buildings or facilities of eligible customer classes
receiving natural gas service throughout the state by 2017. The act
establishes the funding cap for the program, for the collective
service territories of all gas corporations, at $250,000,000. The
act, until August 1, 2017, requires the governing body of each
publicly owned utility providing gas service to retail end-use
customers to adopt, implement, and finance a solar water heating
system incentive program to encourage the installation of 200,000
solar water heating systems by 2017.
This bill would revise the program to, among other things, promote
the installation of solar water systems throughout the state, set
the funding cap for the program between January 1, 2017, and July 31,
2027, at $1,000,000,000, reserve 50% of the total program budget for
the installation of solar water heating systems in low-income
residential housing or in buildings in disadvantaged communities, and
extend the operation of the program through July 31, 2027. Because a
violation of any order, decision, rule, direction, demand, or
requirement of the commission implementing these revisions would be a
crime, this bill would impose a state-mandated local program. The
bill would also require the governing body of each publicly owned
utility providing gas service, until August 1, 2027, to adopt,
implement, and finance a solar water heating system incentive
program. Because the bill would extend the obligations of a publicly
owned electric utility to adopt, implement, and finance the program,
this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for specified reasons.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. Decisions of the commission adopted the California Solar
Initiative. Existing law requires the commission to undertake certain
steps in implementing the California Solar Initiative.
This bill would make a nonsubstantive change to the law requiring
the commission to undertake certain steps in implementing the
California Solar Initiative.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2860 of the Public
Utilities Code is repealed.
2860. This article shall be known, and may be cited, as the Solar
Water Heating and Efficiency Act of 2007.
SEC. 2. Section 2861 of the Public
Utilities Code is amended to read:
2861. As used in this article, the following terms have the
following meanings:
(a) "Disadvantaged community" means a community identified by the
California Environmental Protection Agency pursuant to Section 39711
of the Health and Safety Code.
(a)
(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.
(b)
(c) "kWth" or "kilowatts thermal" means the
kilowatt unit of measure of the equivalent
thermal capacity of a solar water heating system,
measured consistent with the standard established by the SRCC.
system that is calculated by multiplying the aperture
area of the solar collector area of the system, expressed in square
meters, by a conversion factor of 0.7.
(c)
(d) "kWhth" means kilowatthours thermal as measured by
the number of kilowatts thermal generated, or displaced, in an hour.
(d)
(e) "Low-income residential housing" means either of
the following:
(1) Residential housing financed with low-income housing tax
credits, tax-exempt mortgage revenue bonds, general obligation bonds,
or local, state, or federal loans or grants, and for which the rents
of the occupants who are lower income households, as defined in
Section 50079.5 of the Health and Safety Code, do not exceed those
prescribed by deed restrictions or regulatory agreements pursuant to
the terms of the financing or financial assistance.
(2) A residential complex in which at least 20 percent of the
total units are sold or rented to lower income households, as defined
in Section 50079.5 of the Health and Safety Code, and the housing
units targeted for lower income households are subject to a deed
restriction or affordability covenant with a public entity that
ensures that the units will be available at an affordable housing
cost meeting the requirements of Section 50052.5 of the Health and
Safety Code, or at an affordable rent meeting the requirements of
Section 50053 of the Health and Safety Code, for a period of not less
than 30 years.
(e)
(f) "New Solar Homes Partnership" means the 10-year
program, administered by the Energy Commission, encouraging solar
energy systems in new home construction.
(f)
(g) "Solar heating collector" means 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)
(h) "Solar 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, business, or any building or facility receiving natural gas
that is subject to the surcharge established pursuant to subdivision
(b) of Section 2863, 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
water heating systems" include multifamily residential, governmental,
educational, and nonprofit solar pool heating systems, but do not
include single-family residential solar pool heating systems.
(h) "SRCC" means the Solar Rating and Certification Corporation.
SEC. 3. Section 2862 of the Public
Utilities Code is amended and renumbered to read:
2862. The
2860. (a) Legislature finds and
declares all of the following:
(a)
(1) California is heavily dependent on natural
gas, importing more than 80 percent of the natural gas it consumes.
gas.
(b) Rising worldwide demand for natural gas and a shrinking supply
create rising and unstable prices that can harm California consumers
and the economy.
(2) The storage and delivery of natural gas relies on aging
infrastructure that is prone to leaks that can damage the environment
and imperil public health.
(c)
(3) Natural gas is a fossil fuel and a major source of
global warming pollution and the pollutants that cause air pollution,
including smog.
(d)
(4) 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)
(5) 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)
(6) Solar water heating systems represent the
largest major untapped natural gas saving
potential remaining in California.
(g)
(7) In addition to financial and energy savings, solar
water heating systems can help protect against future gas and
electricity shortages and reduce our dependence on foreign sources of
energy.
(h)
(8) Solar 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)
(9) 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.
(10) Installing solar water heating systems in disadvantaged
communities can provide local economic benefits while advancing the
state's clean energy goals and policies to reduce the emissions of
greenhouse gases.
(j)
(11) It is in the interest of the State of California
to promote solar water heating systems and other technologies that
directly reduce demand for natural gas in homes and businesses.
(k)
(b) It is the intent of the Legislature to build a
mainstream market for solar water heating systems that directly
reduces demand for natural gas in homes, businesses, schools,
nonprofit, and nonprofit and government
buildings. Toward that end, it is the goal of this article
to install at least 200,000 solar water heating systems on homes,
businesses, and other buildings or facilities of eligible customer
classes 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)
(c) It is the intent of the Legislature that the solar
water heating system incentives created by this article should be a
cost-effective investment by gas customers. Gas customers will recoup
the cost of their investment through lower prices
energy bills as a result of avoiding purchases of natural
gas.
(m) It is the intent of the Legislature that this article will
encourage the cost-effective deployment of solar heating systems in
both residential and commercial markets and in each end-use
application sector in a balanced manner. It is the intent of the
Legislature that the commission monitor and adjust incentives created
by this article so that they are cost-effective investments
sufficient to significantly increase markets and promote market
transformation. It is the intent of the Legislature that the
commission ensure that increased, uniform growth in each market
sector is achieved through program incentives or structure
adjustments that prevent overutilization of program resources by any
single sector.
SEC. 4. Section 2863 of the Public
Utilities Code is amended to read:
2863. (a) If, after a public hearing, the commission
determines that a solar water heating program is cost effective for
ratepayers and in the public interest, the By July 31,
2017, the commission shall do all of the following:
(1) Design and implement a Implement
changes to the program as authorized pursuant
to this section on December 31, 2016, applicable to the service
territories of a gas corporation, to achieve the goal of the
Legislature to promote the installation of 200,000
corporation to promote the installation of solar water heating
systems in homes, businesses, and buildings or facilities of eligible
customer classes receiving natural gas service throughout the
state by 2017. state. Eligible customer
classes shall include single-family and multifamily residential,
commercial, industrial, governmental, nonprofit, and primary,
secondary, and postsecondary educational customers. The
commission shall implement program changes in phases, if necessary,
to enable seamless continuation of the availability of rebates as of
January 1, 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 programs and initiatives, including, but not
limited to, the New Solar Homes Partnership
Partnership, to achieve the goal of building zero-energy
homes.
(4) The commission shall determine an appropriate division of
funds between solar water heating systems that are and are not solar
pool heating systems.
(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 water
heating systems, or the equivalent output of 200,000 solar water
heating systems, on homes, businesses, and buildings or facilities of
eligible customer classes receiving natural gas service 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) one billion dollars ($1,000,000,000)
over the course of the 10-year program.
period from January 1, 2017, to July 31, 2027, inclusive.
(3) Fifty percent of the total program budget shall be reserved
for the installation of solar water heating systems in low-income
residential housing or in buildings in disadvantaged communities. The
commission may revise the percentage if the budget for other types
of customers becomes depleted.
(3)
(4) The commission shall annually establish a surcharge
rate for each class of gas customers. 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.
(4)
(5) 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.
(5)
(6) 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 in the form of customer rebates to
promote utilization of solar water heating systems.
(1) On and after January 1, 2017, the rebate amount shall be
consistent with the amount the commission established for the
calendar year 2016 until revised by the commission pursuant to
paragraph (2).
(2) Beginning in 2017, and every two years thereafter, the
commission shall consider revisions to the rebate amount, taking into
account the cost of installing solar water heating systems and the
price of natural gas to end-use customers.
(3) The commission shall ensure that a cap on the maximum rebate
amount does not unreasonably impair the ability of industrial
customers to participate in the program.
(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.
SEC. 5. Section 2864 of the Public
Utilities Code is amended to read:
2864. (a) The commission, in consultation with the Energy
Commission and interested members of the public, shall establish
eligibility criteria for solar 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 residential solar
water heating system shall be certified by an accredited listing
agency in accordance with standards adopted by the commission. Solar
collectors used in systems for multifamily residential, commercial,
government, nonprofit, educational, or industrial water heating shall
be certified by an accredited listing agency in accordance with
standards adopted by the commission. Energy output of collectors and
systems shall be determined in accordance with procedures set forth
by the listing agency, and shall be based on testing results from
accredited testing laboratories.
(2) Require A requirement that solar
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 A requirement that solar
water heating collectors have a warranty of not less than 10 years
to protect against defects and undue degradation.
(4) Require A requirement that solar
water heating systems are in buildings or facilities connected to a
natural gas utility's distribution system within the state.
(5) Require A requirement that solar
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 with a capacity for
displacing over 30 kW th . The criteria may
require meters for systems with a capacity of 30 kW th
or smaller. The cost of monitoring the system
shall not exceed 2 percent of the system cost.
(6) Require A requirement that solar
water heating systems are installed in conformity with the
manufacturer's specifications and all applicable codes and standards.
(b) Gas customer funded incentives shall not be made for a solar
water heating system that does not meet the eligibility criteria.
(c) The commission may adopt consensus solar standards applicable
to products or systems as developed by accredited standards
developers.
SEC. 6. Section 2865 of the Public
Utilities Code is amended to read:
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
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 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 facility where the solar water heating system is
installed.
(b) The commission shall set rating standards for equipment,
components, and systems to ensure reasonable performance and shall
develop standards procedures that
provide for compliance with the minimum ratings.
SEC. 7. Section 2866 of the Public
Utilities Code is amended to read:
2866. (a) The commission shall provide not less than 10 percent
of the overall funds for installation of solar water heating systems
on low-income residential housing.
(b)
2866. (a) The commission may establish a
grant program or a revolving loan or loan guarantee program for
low-income residential housing consistent with the requirements of
Chapter 5.3 (commencing with Section 25425) of Division 15 of the
Public Resources Code. All Notwithstanding
Section 2867.4, all loans outstanding as of August 1,
2018, 2027, shall continue to be repaid in a
manner that is consistent with the terms and conditions of the
program adopted and implemented by the commission pursuant to this
subdivision, until repaid in full.
(c)
(b) The commission may extend eligibility for funding
pursuant to this section to include residential housing occupied by
ratepayers participating in a commission approved and supervised gas
corporation Low-Income Energy Efficiency (LIEE) program and who
either:
(1) Occupy a single-family home.
(2) Occupy at least 50 percent of all units in a multifamily
dwelling structure.
(d)
(c) The commission shall ensure that lower income
households, as defined in Section 50079.5 of the Health and Safety
Code, and, if the commission expands the program pursuant to
subdivision (c), (b), ratepayers
participating in a LIEE program, that receive gas service at
residential housing with a solar water heating system receiving
incentives pursuant to subdivision (a), benefit from the installation
of the solar water heating systems through reduced or lowered energy
costs.
(e) No later than January 1, 2010, the
(d) The commission shall do all
of the following to implement the requirements of this section:
(1) Maximize incentives to properties that are committed to
continuously serving the needs of lower income households, as defined
in Section 50079.5 of the Health and Safety Code, and, if the
commission expands the program pursuant to subdivision (c),
(b), ratepayers participating in a LIEE program.
(2) Establish conditions on the installation of solar water
heating systems that ensure properties on which solar water heating
systems are installed under subdivision (a) remain low-income
residential properties for at least 10 years from the time of
installation, including property ownership restrictions and income
rental protections, and appropriate enforcement of these conditions.
(f) All moneys set aside for the purpose of funding the
installation of solar water heating systems on low-income residential
housing that are unexpended and unencumbered on August 1, 2018, and
all moneys thereafter repaid pursuant to subdivision (b), except to
the extent that those moneys are encumbered pursuant to this section,
shall be utilized to augment cost-effective energy efficiency
measures in low-income residential housing that benefit ratepayers.
SEC. 8. Section 2867 of the Public
Utilities Code is amended to read:
2867. (a) The Consistent with subdivision
(c) of Section 2863, the commission shall consider reductions over
time in rebates provided through this program shall
decline over time. They the program. The rebate
shall be structured so as to drive down the cost of the solar 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) The commission shall consider the impact of rebates for solar
water heating systems pursuant to this article on existing incentive
programs for energy efficiency technology.
(d) In coordination with the commission, the Energy Commission
shall consider, when appropriate, coupling rebates for solar 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 water heating system.
SEC. 9. Section 2867.1 of the Public
Utilities Code is repealed.
2867.1. (a) 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 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.
(b) Not later than February 1, 2014, the commission shall complete
a review of whether the rebate levels established by the commission
will be sufficient to spur investment to reach the program goal of
installing 200,000 solar water heating systems in homes, businesses,
and other buildings or facilities receiving natural gas service
throughout the state by 2017, and shall report to the Legislature on
the results of its review. The report submitted pursuant to this
subdivision shall be submitted in compliance with Section 9795 of the
Government Code.
SEC. 10. Section 2867.2 of the Public
Utilities Code is repealed.
2867.2. Except for the Solar Water Heating Pilot Program in San
Diego, solar 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.
SEC. 11. Section 2867.3 of the Public
Utilities Code is amended to read:
2867.3. In order to further the state goal of
encouraging the installation of 200,000 solar water heaters by 2017,
the The governing body of each publicly owned
utility providing gas service to retail end-use gas customers shall,
after a public proceeding, adopt, implement, and finance a solar
water heating system incentive program that does all the following:
(a) Ensures that any solar water heating system receiving monetary
incentives complies with eligibility criteria adopted by the
governing body. The eligibility criteria shall include those elements
contained in paragraphs (1) to (6), inclusive, of subdivision (a) of
Section 2864.
(b) Includes minimum ratings and standards for equipment,
components, and systems to ensure reasonable performance and
compliance with the minimum ratings and standards.
(c) Includes an element that addresses the installation of solar
water heating systems on low-income residential housing. 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 low-income residential
housing consistent with the requirements of Chapter 5.3 (commencing
with Section 25425) of Division 15 of the Public Resources Code.
SEC. 12. Section 2867.4 of the Public
Utilities Code is repealed.
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.
SEC. 13. Section 2867.4 is added to the
Public Utilities Code , to read:
2867.4. This article shall become inoperative on August 1, 2027,
and, as of January 1, 2028, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2028, deletes
or extends the dates on which it becomes inoperative and is
repealed.
SEC. 14. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act or
because costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SECTION 1. Section 2851 of the Public Utilities
Code is amended to read:
2851. (a) In implementing the California Solar Initiative, the
commission shall do all of the following:
(1) (A) The commission shall authorize the award of monetary
incentives for up to the first megawatt of alternating current
generated by solar energy systems that meet the eligibility criteria
established by the Energy Commission pursuant to Chapter 8.8
(commencing with Section 25780) of Division 15 of the Public
Resources Code. The commission shall determine the eligibility of a
solar energy system, as defined in Section 25781 of the Public
Resources Code, to receive monetary incentives until the time the
Energy Commission establishes eligibility criteria pursuant to
Section 25782. Monetary incentives shall not be awarded for solar
energy systems that do not meet the eligibility criteria. The
incentive level authorized by the commission shall decline each year
following implementation of the California Solar Initiative, at a
rate of no less than an average of 7 percent per year, and, except as
provided in subparagraph (B), shall be zero as of December 31, 2016.
The commission shall adopt and publish a schedule of declining
incentive levels no less than 30 days in advance of the first decline
in incentive levels. The commission may develop incentives based
upon the electricity generated by the system, provided those
incentives are consistent with the declining incentive levels of this
paragraph and the incentives apply to only the first megawatt of
electricity generated by the system.
(B) The incentive level for the installation of a solar energy
system pursuant to Section 2852 shall be zero as of December 31,
2021.
(2) The commission shall adopt a performance-based incentive
program so that by January 1, 2008, 100 percent of incentives for
solar energy systems of 100 kilowatts or greater and at least 50
percent of incentives for solar energy systems of 30 kilowatts or
greater are earned based on the actual electrical output of the solar
energy systems. The commission shall encourage, and may require,
performance-based incentives for solar energy systems of less than 30
kilowatts. Performance-based incentives shall decline at a rate of
no less than an average of 7 percent per year. In developing the
performance-based incentives, the commission may:
(A) Apply performance-based incentives only to customer classes
designated by the commission.
(B) Design the performance-based incentives so that customers may
receive a higher level of incentives than under incentives based on
installed electrical capacity.
(C) Develop financing options that help offset the installation
costs of the solar energy system, provided that this financing is
ultimately repaid in full by the consumer or through the application
of the performance-based rebates.
(3) By January 1, 2008, the commission, in consultation with the
Energy Commission, shall require reasonable and cost-effective energy
efficiency improvements in existing buildings as a condition of
providing incentives for eligible solar energy systems, with
appropriate exemptions or limitations to accommodate the limited
financial resources of low-income residential housing.
(4) Notwithstanding subdivision (g) of Section 2827, the
commission may develop a time-variant tariff that creates the maximum
incentive for ratepayers to install solar energy systems so that the
system's peak electricity production coincides with California's
peak electricity demands and that ensures that ratepayers receive due
value for their contribution to the purchase of solar energy systems
and customers with solar energy systems continue to have an
incentive to use electricity efficiently. In developing the
time-variant tariff, the commission may exclude customers
participating in the tariff from the rate cap for residential
customers for existing baseline quantities or usage by those
customers of up to 130 percent of existing baseline quantities, as
required by Section 739.9. Nothing in this paragraph authorizes the
commission to require time-variant pricing for ratepayers without a
solar energy system.
(b) Notwithstanding subdivision (a), in implementing the
California Solar Initiative, the commission may authorize the award
of monetary incentives for solar thermal and solar water heating
devices, in a total amount up to one hundred million eight hundred
thousand dollars ($100,800,000).
(c) (1) In implementing the California Solar Initiative, the
commission shall not allocate more than fifty million dollars
($50,000,000) to research, development, and demonstration that
explores solar technologies and other distributed generation
technologies that employ or could employ solar energy for generation
or storage of electricity or to offset natural gas usage. Any program
that allocates additional moneys to research, development, and
demonstration shall be developed in collaboration with the Energy
Commission to ensure there is no duplication of efforts, and adopted
by the commission through a rulemaking or other appropriate public
proceeding. Any grant awarded by the commission for research,
development, and demonstration shall be approved by the full
commission at a public meeting. This subdivision does not prohibit
the commission from continuing to allocate moneys to research,
development, and demonstration pursuant to the self-generation
incentive program for distributed generation resources originally
established pursuant to Chapter 329 of the Statutes of 2000, as
modified pursuant to Section 379.6.
(2) The Legislature finds and declares that a program that
provides a stable source of monetary incentives for eligible solar
energy systems will encourage private investment sufficient to make
solar technologies cost effective.
(d) (1) The commission shall not impose any charge upon the
consumption of natural gas, or upon natural gas ratepayers, to fund
the California Solar Initiative.
(2) Notwithstanding any other provision of law, any charge imposed
to fund the program adopted and implemented pursuant to this section
shall be imposed upon all customers not participating in the
California Alternate Rates for Energy (CARE) or family electric rate
assistance (FERA) programs, including those residential customers
subject to the rate limitation specified in Section 739.9 for
existing baseline quantities or usage up to 130 percent of existing
baseline quantities of electricity.
(3) The costs of the program adopted and implemented pursuant to
this section shall not be recovered from customers participating in
the California Alternate Rates for Energy or CARE program established
pursuant to Section 739.1, except to the extent that program costs
are recovered out of the nonbypassable system benefits charge
authorized pursuant to Section 399.8.
(e) Except as provided in subdivision (f), in implementing the
California Solar Initiative, the commission shall ensure that the
total cost over the duration of the program does not exceed three
billion five hundred fifty million eight hundred thousand dollars
($3,550,800,000). Except as provided in subdivision (f), financial
components of the California Solar Initiative shall consist of the
following:
(1) Programs under the supervision of the commission funded by
charges collected from customers of San Diego Gas and Electric
Company, Southern California Edison Company, and Pacific Gas and
Electric Company. Except as provided in subdivision (f), the total
cost over the duration of these programs shall not exceed two billion
three hundred sixty-six million eight hundred thousand dollars
($2,366,800,000) and includes moneys collected directly into a
tracking account for support of the California Solar Initiative.
(2) Programs adopted, implemented, and financed in the amount of
seven hundred eighty-four million dollars ($784,000,000), by charges
collected by local publicly owned electric utilities pursuant to
Section 2854. Nothing in this subdivision shall give the commission
power and jurisdiction with respect to a local publicly owned
electric utility or its customers.
(3) (A) Programs for the installation of solar energy systems on
new construction (New Solar Homes Partnership Program), administered
by the Energy Commission, and funded by charges in the amount of four
hundred million dollars ($400,000,000), collected from customers of
San Diego Gas and Electric Company, Southern California Edison
Company, and Pacific Gas and Electric Company. If the commission is
notified by the Energy Commission that funding available pursuant to
Section 25751 of the Public Resources Code for the New Solar Homes
Partnership Program and any other funding for the purposes of this
paragraph have been exhausted, the commission may require an
electrical corporation to continue administration of the program
pursuant to the guidelines established for the program by the Energy
Commission, until the funding limit authorized by this paragraph has
been reached. The commission may determine whether a third party,
including the Energy Commission, should administer the utility's
continuation of the New Solar Homes Partnership Program. The
commission, in consultation with the Energy Commission, shall
supervise the administration of the continuation of the New Solar
Homes Partnership Program by an electrical corporation or third-party
administrator. After the exhaustion of funds, the Energy Commission
shall notify the Joint Legislative Budget Committee 30 days prior to
the continuation of the program. This subparagraph shall become
inoperative on June 1, 2018.
(B) If the commission requires a continuation of the program
pursuant to subparagraph (A), any funding made available pursuant to
the continuation program shall be encumbered through the issuance of
rebate reservations by no later than June 1, 2018, and disbursed by
no later than December 31, 2021.
(4) The changes made to this subdivision by Chapter 39 of the
Statutes of 2012 do not authorize the levy of a charge or any
increase in the amount collected pursuant to any existing charge, nor
do the changes add to, or detract from, the commission's existing
authority to levy or increase charges.
(f) Upon the expenditure or reservation in any electrical
corporation's service territory of the amount specified in paragraph
(1) of subdivision (e) for low-income residential housing programs
pursuant to subdivision (c) of Section 2852, the commission shall
authorize the continued collection of the charge for the purposes of
Section 2852. The commission shall ensure that the total amount
collected pursuant to this subdivision does not exceed one hundred
eight million dollars ($108,000,000). Upon approval by the
commission, an electrical corporation may use amounts collected
pursuant to subdivision (e) for purposes of funding the general
market portion of the California Solar Initiative, that remain
unspent and unencumbered after December 31, 2016, to reduce the
electrical corporation's portion of the total amount collected
pursuant to this subdivision.