Tuesday, March 1, 2005 (SF Chronicle) Governor fires up solar plan David R. Baker, Chronicle Staff Writer

Gov. Arnold Schwarzenegger announced on Monday his latest effort to cover California rooftops with solar panels, reviving an idea he has touted since taking office. Schwarzenegger and two senators introduced two bills to spur the installation of solar power systems in 1 million homes and businesses within the next 13 years, using a combination of rebates and tax credits. The legislation is intended to provide California a stable and clean source of energy and give the solar industry a boost. "Today in California, where we are famous for the sun, we are going to put the positive benefits of that sun to good use," the governor said in a prepared statement.

An earlier version of the idea, dubbed the "million solar roofs" initiative, died in the Legislature last year, the victim of a larger battle over California's energy policy. Now its bipartisan authors hope to avoid a similar morass. "Its problem last year had nothing to do with the actual policy - it just kind of got bogged down in end-of-the-year politics," said Sen. Kevin Murray, D-Los Angeles, who authored last year's version as well as part of the legislation announced Monday.

This time, the initiative has the backing of Republican Sen. John Campbell of Irvine, in addition to Schwarzenegger. That broad support gives it a solid chance of passing, Murray said. "You've got myself. You've got Sen. Campbell, who's one of the most fiscally conservative people in the building. You've got the governor, "Murray said. "We've covered our bases pretty well."

The initiative's latest version keeps many key features of the last, while dropping some ideas that drew opposition last year. - One bill would give home builders and homeowners rebates to install solar panels on new or existing buildings. The rebates would lower the cost of installation from $13,000 to $8,000 but would decrease over time,ending in 2015. - In new housing projects with 50 or more homes, builders would have to offer the option of installing a solar power system. - Another bill would extend an existing solar energy tax credit, set to expire this year. Homeowners would receive a 7.5 percent tax credit for every dollar they spent on solar installation, not counting the amount they would get back in rebates. - Last year's idea of forcing developers to install solar panels on a set proportion of new homes by a specific date has been dropped.

Some of the money for the rebates would come from an existing, $200 million renewable energy fund drawn from Californians' utility bills. The state's Public Utilities Commission could increase that funding if needed,potentially raising utility bills.

The proposal won immediate support Monday from some environmentalists,eager for any way to cut the amount of fossil fuels California burns. "It's the most aggressive solar power bill right now being considered in the country," said Bernadette Del Chiaro, clean-energy advocate for the Environment California group. "It has huge, huge potential."

E-mail David R. Baker at dbaker@sfchronicle.com. Copyright 2005 SF Chronicle

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