BILL NUMBER: AB 1073AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 31, 2011 INTRODUCED BY Assembly Member Fuentes FEBRUARY 18, 2011 An act to amend Section 2864 of add Section 717 to the Public Utilities Code, relating to solar energy energy efficiency . LEGISLATIVE COUNSEL'S DIGEST AB 1073, as amended, Fuentes. Solar Water Heating and Efficiency Act of 2007. Electrical corporation energy efficiency programs: application requirements. Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law establishes the Solar Water Heating and Efficiency Act of 2007 (the act), which requires the commission to evaluate the data available from a specified pilot project, and, if, after a public hearing, the commission determines that a solar water heating program is cost effective for ratepayers and in the public interest, requires the commission to design and implement a program applicable to the service territories of a gas corporation, to achieve the goal of installing 200,000 solar water heating systems in homes and businesses throughout the state by 2017. Existing law requires the commission, in consultation with the Energy Commission and interested members of the public, to establish eligibility criteria for solar water heating systems receiving gas customer funded incentives pursuant to the act. electrical corporations. The Public Utilities Act requires the PUC to review and adopt a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. The act requires that an electrical corporation's proposed procurement plan include certain elements, including a showing that the electrical corporation will first meet its unmet needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. The act requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission, to identify all potentially achievable cost-effective electricity efficiency savings and to establish efficiency targets for electrical corporations to achieve pursuant to their procurement plan. The PUC has approved various energy efficiency programs by electrical corporations. This bill would make technical, nonsubstantive changes to those eligibility criteria provisions require that a written building or construction permit be submitted to the electrical corporation at the time of application for any ratepayer- funded energy efficiency incentive for a project that involves a physical alteration or addition to a residential, commercial, or industrial structure . Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 717 is added to the Public Utilities Code , to read: 717. A written building or construction permit shall be submitted to the electrical corporation at the time of application for any ratepayer-funded energy efficiency incentive for a project that involves a physical alteration or addition to a residential, commercial, or industrial structure. This requirement does not apply to an application for ratepayer-funded energy efficiency incentives for appliances or changes, alterations, or repairs to structures that are of a minor nature not affecting structural features, egress, sanitation, safety, or accessibility, as determined by the entity of local government responsible for the issuance of building or construction permits. SECTION 1. Section 2864 of the Public Utilities Code is amended to read: 2864. (a) In consultation with the Energy Commission and interested members of the public, the commission 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, 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 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 water heating collectors have a warranty of not less than 10 years to protect against defects and undue degradation. (4) Require that solar water heating systems are in buildings connected to a natural gas utility's distribution system within the state. (5) Require 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 kWth. The criteria may require meters for systems with a capacity of 30 kWth or smaller. (6) Require 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.