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Gov. Arnold Schwarzenegger has approved two major initiatives that will require utilities to pay consumers for generating extra power and will boost the payoff for certain solar facilities.

Homes, businesses and schools that have solar panels or wind turbines previously had no financial incentive to use less electricity than they generated. But AB 920, written by Assemblyman Jared Huffman (D-San Rafael), will encourage efficiency, supporters say.

SB 32, by state Sen. Gloria Negrete McLeod (D-Chino), requires utilities to purchase solar electricity from facilities that produce up to three megawatts and could increase installations on unused spaces such as warehouse roofs. The old limit was 1.5 megawatts.

The two bills will go into effect Jan. 1. Schwarzenegger signed them late Sunday, the last day to act on bills from this year’s legislative session.

Under AB 920, the state Public Utilities Commission will set a rate for utilities to compensate customers whose solar or wind systems produce more power than they use in a year. Under California’s current law, customers are not paid for any surplus electricity they feed back into the grid.

The state requires that when a consumer installs a solar power system, it be the right size to produce only enough power necessary for on-site use. Rebates from the California Solar Initiative, overseen by the utilities commission, discourage anything larger. So customers who later reduce their energy consumption often end up underutilizing their solar panels.

“The current system instills a perverse incentive for people to waste their solar electricity just so they don’t give it away for free to the utilities,” said Bernadette Del Chiaro, a clean energy advocate with Environment California, which sponsored the bill.

The new law could boost sales of photovoltaics, especially in regions with sunny summers. Homes that use less power than they did when their solar panels were installed — such as those that add energy-efficient appliances, insulation or weatherproofing — and those with children who have moved out can also benefit.

“This bill applies to individual homeowners as well as small businesses, farms, wineries, schools and even affordable housing developments,” Huffman said in a statement.

Customers can either receive a check for the extra energy or have credit rolled forward on their electricity bills. Experts, however, said they should expect little profit.

SB 32, meanwhile, could spark more interest in commercial rooftop systems. The law expands an existing program to include municipal utilities, which now must purchase solar power at a set rate until they reach their portion of a statewide 750-megawatt cap. The limit was previously set at 500 megawatts.

The utilities commission will set the rate, which will be higher than market price after incorporating environmental compliance costs and other benefits, said Sue Kateley, executive director of the California Solar Energy Industries Assn., which sponsored the bill.

Between the sweeping solar installations in the desert and the small-scale ones on homes, she said, there had been a category of properties that had plenty of space but didn’t use enough power to justify setting up huge solar panels.

But now, owners of large storage units and similar low-energy facilities will be able to install solar power systems and sell the extra electricity back to the utilities, a program known as a feed-in tariff.

The program took cues from countries such as Germany — where, some in the industry have complained, a similar tariff format stimulated the market so much that prices of solar energy shot too high. Other critics are worried that the tariff could be too low to interest investors.

“We didn’t want to replicate the German model, which was a social movement to create an industry,” Kateley said. “In California, we already had an industry, but we wanted to fill a market gap. And within the community, it’s really exciting because this law will create local jobs.”

In a note to the state Senate on Sunday, Schwarzenegger encouraged the utilities commission to continue investigating an expanded tariff for small to medium-size producers of renewable energy.

“In order to meet our greenhouse gas emission reduction goals and a Renewable Portfolio Standard of 33% by 2020, we will need to use all the tools available under our existing programs,” he said.

But Schwarzenegger vetoed a slate of bills — including SB 14 and AB 64 — that would have required the state to rely on renewable resources for at least one-third of its electricity. He has issued an executive order to meet the 33% goal using a different plan and supports efforts to create 1 million solar roofs by 2018.

Assemblyman Paul Krekorian (D-Los Angeles), chairman of a renewable energy committee, called the vetoes a dangerous setback. The bills, Krekorian said, would have created “green” jobs and steadied price volatility while cutting market manipulation from solar hubs outside of California. He said the vetoes would sour developers to the California market, leading them elsewhere.

“If we don’t get started now,” he said, “our opportunities to complete projects are going to be missed.”

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SACRAMENTO — The final pieces of a multi-bill legislative package needed to implement a $52.1-billion state budget stalled in the state Senate on Monday as lawmakers made last-minute efforts to change or derail several measures.

The major issues still on the table include a proposed suspension of the renters tax credit and legislation to allow local governments to implement cheaper retirement plans for their workers.

The Senate shut down late Monday afternoon without taking major action. Senate President Pro Tem David A. Roberti (D-Van Nuys) said members would return at noon today, and “we will go until all business is completed, exhausted or until all hope is dead.”

In one late maneuver that was outside the framework of the bipartisan budget agreement, a proposal was emerging to give local governments the proceeds of a new statewide tax on tobacco while stripping them of much of their authority to regulate smoking.

Gov. Pete Wilson was awaiting passage of the package to which he had agreed last week with Democratic and Republican leaders of the Assembly and Senate. The new fiscal year begins Thursday.

“The governor will sign the budget as soon as he has the entire package on his desk,” said Dan Schnur, Wilson’s chief spokesman. “Every piece of the budget package is critical. You take out one piece and the package doesn’t fit together anymore.”

There was disagreement, however, over just what constituted the agreed-upon package.

Wilson Administration officials have said all five members of the leadership group agreed to suspend the renters tax credit for two years. The Assembly passed a bill to do that last week.

But the legislation has hit a snag in the Senate, where Roberti insists that the deal included an agreement to place a measure on the ballot next year that, if approved by the voters, would embed the renters credit in the state Constitution. Such a move would make it impossible for the Legislature to tamper with it again.

Roberti and Wilson appeared to be on the verge of a compromise late Monday, although it was not clear if there was sufficient support in the Legislature. The new deal would put the issue to the voters, as Roberti wants, but would reinstate the $60 credit only for tenants who have a state tax obligation. The credit now goes–in the form of a refund–even to renters who pay no taxes.

Senate Democrats also appeared to be dragging their feet on the local government retirement issue. That bill, passed by the Assembly, would allow local governments to implement pension options for new employees that would save the governments money over time.

In holding up the bill, which is opposed by organized labor, Democrats appeared to be gambling that Wilson would look the other way because the measure produces no immediate savings to any level of government. But Schnur said the governor would not give up any piece of the package, no matter how minor.

“Even if the specific legislation doesn’t have direct fiscal impact, it is still the part of an overall agreement,” Schnur said. “We want to get this signed before midnight Wednesday. But we need the whole package in place before he can sign it.”

Schnur said the retirement bill, and another measure pending to allow counties to reduce general assistance welfare payments by as much as 27%, helped provide the rationale for the governor’s proposed shift of $2.6 billion in property tax revenue from local government to schools.

The so-called mandate relief, he said, was intended to give counties more control of their shrinking budgets.

The tobacco tax proposal floated Monday, although not part of the package, would address the same issue.

Local government reportedly could realize about $300 million annually through the 15-cent per pack tax. But in return, they would have to agree to strict limits on their ability to control smoking, perhaps leading to a state-imposed repeal of anti-smoking ordinances in place.

Several sources said Monday that the proposal had the tacit support of the tobacco industry and of Los Angeles County, which would stand to gain several millions dollars.

Sen. Charles M. Calderon (D-Whittier) confirmed that he was pushing the tobacco tax legislation. He said it made sense to restrict local government’s regulatory powers at the same time–a goal long sought by the tobacco industry.

“If we’re going to dedicate a revenue source, we have to make sure that the locals cannot circumvent or cut down the revenue source by continuing to impact the sales of cigarettes,” Calderon said.

But anti-smoking activists were out to kill the plan before it could even become an official proposal.

“Everybody wants to do something for (Los Angeles) County, but not under these conditions,” said Sen. Diane Watson (D-Los Angeles). “This is the most dishonest, diabolical scheme. It’s the worst kind of politics.”

Times staff writer Dan Morain contributed to this report.

State Budget Watch

Less than three days before the end of the fiscal year, these were the key developments in Sacramento:

THE PROBLEM: The state will end the year with a $2.7-billion deficit and faces a $9-billion gap between anticipated tax revenues and the amount needed to pay off the deficit and provide all state services at the current levels for another 12 months.

THE LEGISLATURE: Final legislative approval of the last handful of bills to complete the 1993-94 state budget was making no progress by late afternoon. The Senate met in the morning but recessed without voting on four budget bills, the stickiest of which would suspend the renters tax credit for two years.

GOV. PETE WILSON: Wilson was holding fast to his vow not to sign a new budget until all companion measures are passed by the Legislature.

KEY DEVELOPMENTS: Senate President Pro Tem David A. Roberti (D-Van Nuys) was one of those holding up his approval of legislation reducing the renters tax credit. He was seeking as a condition assurances in the form of a proposed constitutional amendment, to be considered by voters, that the credit would be protected and fully funded in future years.

Russian President Vladimir Putin has told top Kremlin officials to draft proposals for the possible resumption of nuclear weapons testing, as Moscow responds to President Donald Trump’s order that the United States “immediately” resume its own testing after a decades-long hiatus.

The Russian leader told his Security Council on Wednesday that should the US or any signatory to the Comprehensive Nuclear-Test-Ban Treaty (CTBT) conduct nuclear weapons tests, “Russia would be under obligation to take reciprocal measures”, according to a transcript of the meeting published by the Kremlin.

“In this regard, I instruct the Foreign Ministry, the Defence Ministry, the special services, and the corresponding civilian agencies to do everything possible to gather additional information on this matter, have it analysed by the Security Council, and submit coordinated proposals on the possible first steps focusing on preparations for nuclear weapons tests,” Putin said.

Moscow has not carried out nuclear weapons tests since the collapse of the Soviet Union in 1991. But tensions between the two countries with the world’s largest nuclear arsenals have spiked in recent weeks as Trump’s frustration with Putin grows over Russia’s failure to end its war in Ukraine.

The US leader cancelled a planned summit with Putin in Hungary in October, before imposing sanctions on two major Russian oil firms a day later – the first such measures since Trump returned to the White House in January.

Trump then said on October 30 that he had ordered the Department of Defense to “immediately” resume nuclear weapons testing on an “equal basis” with other nuclear-armed powers.

Trump’s decision came days after he criticised Moscow for testing its new Burevestnik missile, which is nuclear-powered and designed to carry a nuclear warhead.

According to the Kremlin transcript, Putin spoke with several senior officials in what appeared to be a semi-choreographed advisory session.

Defence Minister Andrei Belousov told Putin that Washington’s recent actions significantly raise “the level of military threat to Russia”, as he said that it was “imperative to maintain our nuclear forces at a level of readiness sufficient to inflict unacceptable damage”.

Belousov added that Russia’s Arctic testing site at Novaya Zemlya could host nuclear tests at short notice.

Valery Gerasimov, the Chief of the General Staff of the Russian Armed Forces, also cautioned that if Russia does not “take appropriate measures now, time and opportunities for a timely response to the actions of the United States will be lost”.

Following the meeting, state news agency TASS quoted Kremlin spokesman Dmitry Peskov as saying that Putin had set no specific deadline for officials to draft the requested proposals.

“In order to come to a conclusion about the advisability of beginning preparations for such tests, it will take exactly as much time as it takes for us to fully understand the intentions of the United States of America,” Peskov said.

Russia and the US are by far the biggest nuclear powers globally in terms of the number of warheads they possess.

The Center for Arms Control and Non-Proliferation (CACNP) estimates that Moscow currently has 5,459 nuclear warheads, of which 1,600 are actively deployed.

The US has about 5,550 nuclear warheads, according to the CACNP, with about 3,800 of those active. At its peak in the mid-1960s during the Cold War, the US stockpile consisted of more than 31,000 active and inactive nuclear warheads.

China currently lags far behind, but has rapidly expanded its nuclear warhead stockpile to about 600 in recent years, adding about 100 per year since 2023, according to the Stockholm International Peace Research Institute.

France, Britain, India, Pakistan, Israel and North Korea comprise the remaining nuclear-armed countries.

The US last exploded a nuclear device in 1992, after former Republican President George HW Bush issued a moratorium on nuclear weapons testing following the collapse of the Soviet Union a year earlier.

Since 1996, the year the CTBT was opened for signatures, only three countries have detonated nuclear devices.

India and Pakistan conducted tests in 1998. North Korea has carried out five explosive tests since 2006 – most recently in 2017 – making it the only country to do so in the 21st century.

Such blasts, regularly staged by nuclear powers during the Cold War, have devastating environmental consequences.

Trump has yet to clarify whether the resumption he ordered last week refers to nuclear-explosive testing or to flight testing of nuclear-capable missiles, which would see the National Nuclear Safety Administration test delivery systems without requiring explosions.

Security analysts say a resumption of nuclear-explosive testing by any of the world’s nuclear powers would be destabilising, as it would likely trigger a similar response by the others.

Andrey Baklitskiy, senior researcher at the United Nations Institute for Disarmament Research, said that the Kremlin’s response was a prime example of the “action-reaction cycle”, in which a new nuclear arms race could be triggered.

“No one needs this, but we might get there regardless,” he posted on X.

Russian MOD Belousov suggests Russia should start to prepare for a full-scale nuclear test in response to the US statements. Action-reaction cycle at its best. No one needs this, but we might get there regardless

— Andrey Baklitskiy (@baklitskiy) November 5, 2025