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Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues.

Rulemaking 10-05-004

(Filed May 6, 2010)

10. Assignment of Proceeding 5959

1. Summary

2. Background

3. Procedural Issues

4. Issues surrounding Net Energy Metering, VNM, and Bill Credit Transfer Tariffs

4.1. Service Delivery Point as VNM Boundary in the MASH Program2

Allow for the allocation of net energy metering benefits from a single solar energy system to all meters on an individually metered multifamily affordable housing property, without adversely impacting building tenants. (D.08-10-036 at 38.)

4.2. Expansion of VNM to All Customers6

4.3. Expansion of VNM to All Affordable Housing Customers8

4.4. Bill Credit Transfer Option9

5. General Market Program Modifications

5.1. Application Processing Timelines12

PA Action

Residential Systems



Reservation Issued

30 days

60 days

ICF Claim Processed (no inspection)

30 days

60 days

ICF Claim Processed (with inspection)

60 days

90 days

Incentive Paid after ICF claim approval

30 days

30 days

5.2. Project Completion Time Requirements15

5.3. Project Inspections

5.4. Performance Monitoring and Reporting Services Cost Cap Exemption and Measurement and Evaluation Metering Expenses21

5.5. EPBB Calculator Integration with Powerclerk23

5.6. Payment Intervals for PBI24

6. Budget Issues

6.1. General Market Administrative Budget25

Administrative Budget Component


Application Processing








Total Program Administration


6.2. M&O Budget29

6.3. M&E Budget30

Program Area

Authorized Budget

($ in millions)

Authorizing Decision

CSI General Market












CSI Thermal






6.4. CSI Revenue Requirement32






Transfer from SGIP
on 12/31/2006




























































7. Low Income Program Modifications

7.1. SASH Design Factor34

7.2. SASH Inspections36

7.3. Increasing the Budget for MASH Track 1 Incentives37

7.4. Two Year Occupancy for MASH Program38

8. Marketing and Outreach Modifications40

9. Comments on Proposed Decision

10. Assignment of Proceeding

1 EAH is a non-profit housing corporation.

2 See Staff Proposal Section 2.2.

3 Rule 1 of SCE's tariffs define "premises" as follows:

All of the real property and apparatus employed in a single enterprise on an integral parcel of land undivided, excepting in the case of industrial, agricultural, oil field, resort enterprises, and public or quasi-public institutions, by a dedicated street, highway, or other public thoroughfare, or a railway. Automobile parking lots constituting a part of and adjacent to a single enterprise may be separated by an alley from the remainder of the premises served. (See SCE comments, 12/20/10 at 3, n. 7.)

4 Specifically, PG&E cites to a generation credit for the City of Davis, Assembly Bill (AB) 2573 regarding CCSF solar wheeling, AB 2488 regarding dairy biodigesters, and AB 2466 regarding local government renewable power. (See PG&E comments, 12/6/10 at 4.)

5 As stated in PG&E's tariff that the Commission approved in PG&E's Advice Letter 3718-E, parcels may be divided by a street, highway or public thoroughfare as long as they are otherwise contiguous, part of the same enterprise, and under the same ownership.

6 See Staff Proposal Section 2.3.

7 All statutory references are to the Public Utilities Code unless otherwise noted.

8 See Staff Proposal Section 2.4

9 See Staff Proposal section 2.5.

10 The Commission issued D.11-06-016 on June 9, 2011 to establish a Net Surplus Compensation Rate in Application (A.) 10-03-001 and consolidated cases.

11 See D.11-06-0106 issued by the Commission on June 9, 2011.

12 See Staff Proposal Section 3.1.

13 The CSI PAs are PG&E, SCE, and CCSE.

14 EPBB applications pay incentives up front based on an estimate of system performance.

15 See Staff Proposal Section 3.2.

16 See Staff Proposal Section 3.3.2.

17 The Third Edition of the CEC's Guidelines for California's Solar Electric Incentive Programs (Senate Bill 1) was published June 29, 2010, and can be found at: http://www.energy.ca.gov/2010publications/CEC-300-2010-004/CEC-300-2010-004-CMF.pdf.

18 PBI refers to payment of incentives over a five-year period based on the actual, measured output of the solar energy system.

19 See Staff Proposal Section 3.3.3.

20 See Staff Proposal Section 3.3.4.

21 See Staff Proposal Sections 3.4 and 4.6.

22 See http://www.gosolarcalifornia.org/equipment/perf_monitor.php.

23 See Staff Proposal Section 3.8.

24 See Staff Proposal Section 3.9.

25 See Staff Proposal Section 3.6.

26 Other portions of CSI such as RD&D, SASH and MASH have separate administrative budgets, and are not included in the 10% reserved for the general market administrative budget.

27 Interim guidance on M&O was provided in D.07-05-047. An Assigned Commissioner's Ruling, dated July 29, 2008 in R.08-03-008 set an M&E budget of $46.7 million.

28 Post-2016 costs may occur if an incentive application is received on December 31, 2016. Under normal circumstances, the project may take up to 12 months after the application submittal to receive its incentive. If extensions are granted, the incentive may not be paid for three years from the application date, or December 2019. If the project occurs and is eligible for an incentive, the PAs will incur administrative costs to pay the incentive. If the project is eligible for PBI payments, there may be administrative costs for up to five years after project completion.

29 See Staff Proposal Section 5.4.

30 See Staff Proposal Section 4.2.

31 Per D.10-01-022 (at 66), the CSI Thermal M&E budget is composed of $5 million from the gas-displacing budget, and $1.25 million from the general market CSI administration budget.

32 See Staff Proposal Section 7.1.

33 See D.06-12-033 and D.08-12-004.

34 See Staff Proposal Section 6.3.

35 The design factor is a reflection of a proposed system's tilt, orientation, shading, equipment efficiency, and other factors compared to an optimally-installed system.

36 See Staff Proposal Section 6.4.

37 See Staff Proposal Section 6.6.

38 See Staff Proposal Section 6.7.

39 Current NSHP Affordable Housing incentives are $3.50 per watt for residential unit systems and $3.30 per watt for common area systems.

40 See Staff Proposal Sections 5.2, 5.3, 5.5 and 5.6.

41 On April 5, 2011, the Energy Division approved the PAs' 2011 M&O plans, and issued "CSI Approval Procedure, and Energy Division Staff Guidelines, for CSI Marketing and Outreach Activities, Materials and Third-party Sponsorships-Version 1.0."

42 See Navigant's "California Solar Initiative Low-Income Solar Program Evaluation Market Assessment Report," at 10. The report can be viewed at: http://www.cpuc.ca.gov/NR/rdonlyres/EB601615-61B3-43B2-B034-EEC95AF46708/0/CSISASHandMASHMarketAssessmentReport.pdf

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