This law required the Department of General Services, in consultation with the State Energy Resources Conservation and Development Commission, to ensure that solar energy equipment is installed, no later than January 1, 2007, on all state buildings and state parking facilities where feasible, as specified. It also would require solar energy equipment to be installed where feasible as part of the construction of all state buildings and state parking facilities that commences after December 31, 2002. The law would authorize the Director of General Services to exempt such a solar energy equipment project from specified advertising and competitive bidding requirements.
Theinteresting part of this proposal is contained in the provisions that define the term "feasible" and "cost effective." According to the law, it is feasible to install solar energy equipment "if adequate space on a building is available, and if the solar energy equipment is cost-effective." The bill defines cost-effective to mean "that the present value of the savings generated over the life of the solar energy system, including consideration of the value of the energy produced during peak and off-peak demand periods and the value of a reliable energy supply not subject to price volatility, shall exceed the present value cost of the solar energy equipment by not less than 10 percent. The present value cost of the solar energy equipment does not include the cost of unrelated building components. The department, in making the present value assessment, shall obtain interest rates, discount rates, and consumer price index figures from the Treasurer, and shall take into consideration air emission reduction benefits."
Thelife cycle analysis requirement to determine cost-effectiveness that California has adopted in this law is not the first time its been used in California. Since 1992, proposed changes in California’s energy code are also subjected to life-cycle cost analysis to determine cost-effectiveness before they are implemented.
More:
- Full Text and History of California Bill SBX2 82 – Approved by Governor October 5, 2001
- California Energy Commission
- California Public Utilities Commission
Senate Bill X2 No. 82
CHAPTER 10
An act to add Section 14684 to the Government Code, relating to solar energy. [Approved by Governor October 5, 2001. Filed with Secretary of State October 7, 2001.]
The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:
(a) California is experiencing severe electrical shortages, which endanger the health, safety, and economic development opportunity of its citizens.
(b) Immediate measures are needed to increase the electrical generation capacity within California, including energy from solar energy systems.
(c) California has been a leader in the development of solar energy systems.
(d) California must take all reasonable actions necessary to encourage the use of solar energy systems at state buildings and facilities.
SEC. 2. Section 14684 is added to the Government Code, to read:
14684.
(a) The department, in consultation with the State Energy Resources Conservation and Development Commission, shall ensure that solar energy equipment is installed, no later than January 1, 2007, on all state buildings and state parking facilities, where feasible. The department shall establish a schedule designating when solar energy equipment will be installed on each building and facility, with priority given to buildings and facilities where installation is most feasible, both for state building and facility use and consumption and local publicly owned electric utility use, where feasible.
(b) Solar energy equipment shall be installed where feasible as part of the construction of all state buildings and state parking facilities that commences after December 31, 2002.
(c) For purposes of this section, it is feasible to install solar energy equipment if adequate space on a building is available, and if the solar energy equipment is cost-effective. funding is available.
(d) No part of this section shall be construed to exempt the state from any applicable fee or requirement imposed by the Public Utilities Commission.
(e) The department may adopt regulations for the purposes of this section as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1. For purposes of Chapter 3.5 (commencing with Section 11340) of Part 1, including, but not limited to, Section 11349.6, the adoption of the regulations shall be considered by the Office of Administrative Law to be necessary for the immediate preservation of the public peace, health, safety, and general welfare. Notwithstanding the 120-day limit specified in subdivision (e) of Section 11346.1, the regulations shall be repealed 180 days after their effective date, unless the department complies with Chapter 3.5 (commencing with Section 11340) of Part 1 as provided in subdivision (e) of Section 11346.1.
(f) For purposes of this section, the following terms have the following meanings:
-
(1) ‘‘Cost-effective” means that the present value of the savings generated over the life of the solar energy system, including consideration of the value of the energy produced during peak and off-peak demand periods and the value of a reliable energy supply not subject to price volatility, shall exceed the present value cost of the solar energy equipment by not less than 10 percent. The present value cost of the solar energy equipment does not include the cost of unrelated building components. The department, in making the present value assessment, shall obtain interest rates, discount rates, and consumer price index figures from the Treasurer, and shall take into consideration air emission reduction benefits.
-
(2) ‘‘Local publicly owned electric utility” means a local publicly owned electric utility as defined in Section 9604 of the Public Utilities Code.
-
(3) ‘‘Solar energy equipment” means equipment whose primary purpose is to provide for the collection, conversion, storage, or control of solar energy for electricity generation.
