9/11/2007

Sacramento – Following closely on the heels of the internationally significant Million Solar Roofs bill (SB 1-Murray) of 2006, the California Legislature has taken yet another giant step toward bringing about a mainstream solar power market. Last night, the California Senate passed the Solar Water Heating and Efficiency Act of 2007 (AB 1470-Huffman). The bill would launch the nation’s largest solar water heating program, creating a $250 million fund to provide rebates to homeowners and businesses who invest in solar water heating technologies. The bill aims at creating a world-class, mainstream market for solar water heating technologies within ten years.

“Harnessing the sun to meet our daily energy needs is a no-brainer, especially in California,” said Bernadette Del Chiaro, Clean Energy Advocate for Environment California and sponsor of AB 1470. “Solar water heating is another way we can make California the Saudi Arabia of the sun.”

AB 1470 is very similar to the Million Solar Roofs bill signed into law last year creating incentives for solar electric technologies. AB 1470 would similarly provide consumer incentives, in the form of rebates, for solar water heating systems that displace natural gas. The fund would come from a small, 13 cent per month, surcharge on gas bills.

California relies predominately on natural gas to meet its water heating needs. This leads to a heavy dependence on imported fossil fuels and air pollution. Solar water heating can reduce the amount of gas needed to heat water in homes and businesses by 50-75%.

“Solar power represents a significant energy resource for California,” said Assemblymember Jared Huffman (Marin), author of AB 1470. “California can achieve greater energy independence, fight global warming, and save homeowners and businesses money by encouraging a mainstream market for solar water heating.”

A report by Environment California Research & Policy Center, “Solar Water Heating: How California Can Reduce Its Dependence on Natural Gas”, details the benefits of growing a market for solar water heating in California.

• California imports 85% of its natural gas, 2/3rds of which is used by homes and businesses for water and space heating. An expanded solar water heating market could save 1.2 billion therms of natural gas each year, the equivalent of cutting 5% of statewide gas demand.
  
  
• Solar water heating could reduce global warming pollution by 6.8 million tons of CO2 per year. This represents 5% of the total reductions needed to meet the state’s greenhouse gas emissions cap by 2020.
  
  
• Decreased demand for natural gas saves all ratepayers money: some studies have shown that a 5% reduction in demand could shave 25-35% off California’s wholesale natural gas prices.

AB 1470 passed the Senate today by a vote of 24-16. It cleared the Assembly in July by a vote of 44-43. It returns to the Assembly for concurrence before heading to the Governor’s desk. A concurrence vote is expected today. The bill is broadly supported by environmental groups, low-income groups, and businesses such as PG&E.

Environment California is a leading nonprofit, nonpartisan environmental advocacy organization with offices in ten cities across California. Environment California Research & Policy Center is a 501(c)(3) organization. We are dedicated to protecting California’s air, water and open spaces. We investigate problems, craft solutions, educate the public and decision makers, and help Californians make their voices heard in local, state and national debates over the quality of our environment and our lives. www.environmentcalifornia.org