5. Assignment of Proceeding
Michael R. Peevey is the assigned Commissioner and Maryam Ebke is the assigned ALJ to this portion of the proceeding.
1. As stated in D.01-03-073, the intent of SGIP is to encourage deployment of DG to reduce peak demand, give preference to new renewable energy capacity, and ensure deployment of clean DG technologies.
2. Pub. Util. Code § requires the Commission, in consultation with the California Air Resources Board, to determine what technologies should be eligible for SGIP based on greenhouse gas emissions reductions.
3. SB 412 does not require the Commission consider cost-effectiveness or the need for incentives as screens in assessing technology eligibility for the SGIP.
4. The requirement that a technology passes the cost-effectiveness test and the need for incentives can be complex and administratively difficult to implement.
5. Some technologies may be able to provide additional information to demonstrate that they are GHG reducing.
6. Stand-alone advanced energy storage may reduce peak demand and GHGs.
7. The CSI program has a declining incentive structure.
8. Only some of SGIP systems have metering and monitoring equipment installed.
9. Ten percent of the SGIP budget is set aside for administration, including general administration, monitoring and evaluation and marketing and outreach.
10. Allowing SGIP projects to export to the grid will provide flexibility in the program.
11. Energy efficiency is the top priority in the State's loading order.
12. An application fee was eliminated to encourage more participation in the SGIP.
Conclusions of Law
1. Using the GHG emissions reduction test as a screen for SGIP eligibility is consistent with SB 412.
2. It is reasonable to adopt the CARB's GHG factor by 20% to reflect the fact that DG displaces a mix of resources, including renewable resources as required by the RPS statute.
3. It is reasonable to provide interim support to stand-alone AES while the Commission considers various proposals in other related proceedings.
4. It is reasonable to include PRT as an eligible SGIP technology.
5. It is reasonable to remove the minimum size requirement for SGIP projects.
6. It is reasonable to remove the maximum size limit for SGIP projects.
7. It is reasonable to adopt an incentive structure that reflects the nature of the fuel rather than just the technology.
8. It is reasonable to adopt incentive levels of $1.25/Watt for renewable and waste heat capture technologies and )$0.50/Watt for conventional fueled-based combined heat and power technologies.
9. The SGIP incentives should contain both an up-front incentive and a performance-based incentive component.
10. It is reasonable to adopt a declining incentive structure for the SGIP.
11. The SGIP should not pay incentives above 30% of a project's up-front cost.
12. Projects that are ineligible for tax credit should not be subject to 30% cost cap.
13. It is reasonable to limit the supplier concentration to no more than 50%, if using the same product.
14. It is reasonable to require accurate and current performance data to establish historical performance of SGIP funded projects.
15. Accurate metering and monitoring data is necessary to verify performance for PBI payments of SGIP systems.
16. It is reasonable to allocate 3% of the SGIP budget for program administration to marketing and outreach activities.
17. EXPORT TO THE GRID???
18. It is reasonable to require SGIP systems to conduct an audit to identify which, if any, energy efficiency measures will be taken.
19. An energy efficiency audit should not be required as a prerequisite to SGIP participation.
20. It is reasonable to require a capacity-based application fee from SGIP projects.
21. It is reasonable to require a service warranty of SGIP projects.
ORDER
IT IS ORDERED that:
1. The program administrators for the Self-Generation Incentive Program shall implement program handbook revisions, as set forth in this decision and summarized in Appendix A.
2. Within 30 days of the effective date of this decision, the program administrators for the Self-Generation Incentive Program shall file advice letters on the following issues:
_ Handbook revisions necessary to implement this decision.
_ Methods to determine the amount of waste heat capture for each project necessary to qualify the project as green house gas reducing.
_ Mechanism to protect against entities creating different governance structures to be able to achieve more funding than the capped amount.
3. Upon Commission approval of the revisions to the Self-Generation Incentive Program handbook, the program administrators for the Self-Generation Incentive Program shall lift the program suspension and resume accepting reservation requests for the Self-Generation Incentive Program.
4. This order is effective today.
Dated ????/2011, at San Francisco, California.
APPENDIX A
AMENDMENTS TO THE SGIP HANDBOOK
