Word Document

FSTATE OF CALIFORNIA EDMUND G. BROWN JR., Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

Date Agenda ID #_____

TO PARTIES OF RECORD IN RULEMAKING 10-05-004

This is the proposed decision of Commissioner Michael R. Peevey. It will not appear on the Commission's agenda sooner than 30 days from the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the proposed decision as provided in Article 14 of the Commission's Rules of Practice and Procedure (Rules), accessible on the Commission's website at www.cpuc.ca.gov. Pursuant to Rule 14.3, opening comments shall not exceed 25 pages. [If GRC, then 25 pages.]

Comments must be filed pursuant to Rule 1.13 either electronically or in hard copy. Comments should be served on parties to this proceeding in accordance with Rules 1.9 and 1.10. [If there are special or different service requirements, insert them here.]Electronic and hard copies of comments should be sent to ALJ Maryam Ebke at meb@cpuc.ca.gov and Commissioner Peevey's advisor [enter advisor's full name] at @cpuc.ca.gov. The current service list for this proceeding is available on the Commission's website at www.cpuc.ca.gov.

Karen V. Clopton, Chief

Administrative Law Judge

KVC:lil

Attachment

COM/MP1/lil DRAFT Agenda ID #_____

Decision PROPOSED DECISION OF COMMISSIONER PEEVEY (Mailed ___)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

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)

DECISION MODIFYING THE SELF-GENERATION INCENTIVE PROGRAM
AND IMPLEMENTING SENATE BILL 412

DECISION MODIFYING THE SELF-GENERATION INCENTIVE PROGRAM AND IMPLEMENTING SENATE BILL 412

1. Summary

This decision modifies the Commission's Self-Generation Incentive Program (SGIP) to conform the program to Senate Bill (SB) 412 (Stats. 2009, ch. 182). In addition, the decision modifies several aspects of the SGIP to improve program outcomes and facilitate program implementation. Modifications to the SGIP program include eligibility criteria for participation in the program, incentive amounts and payment structures for eligible technologies, metering and warranty requirements, and budget allocation among eligible technologies.1

Eligibility for participation in the SGIP will now be based on greenhouse gas emissions reductions. SGIP technologies that achieve reductions of greenhouse gas emissions pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) will be eligible to participate in the SGIP. The eligible technologies include wind turbines, fuel cells, gas turbines, renewable-fueled micro-turbines and internal-combustion (IC) engines, organic rankine cycle/ bottom-cycle combined heat and power (CHP), advanced energy storage, and pressure reduction turbines.

Eligible technologies will receive up-front and performance-based incentives. The up-front incentive will be according to the new incentive rates as shown in Table 1 below:

Table 1 - SGIP Incentive Levels Category

Technology Type

Incentive ($/W)

Renewable and Waste Heat Capture

Wind Turbine

$1.25

Bottoming-Cycle CHP

$1.25

Pressure Reduction Turbine

$1.25

Conventional Fuel-Based CHP

Internal Combustion Engine - CHP

$0.50

Microturbine - CHP

$0.50

Gas Turbine - CHP

$0.50

Emerging technologies

Advanced Energy Storage2

$2.00

Biogas

$2.00

Fuel Cell - CHP or Electric Only

$2.25

To ensure continuity in the program, the changes we adopt today will be effective after the Commission approves the program administrators' (PAs)advice letters modifying the program handbook to implement this decision. In addition, the changes in this decision will only apply to SGIP projects going forward.3 In other words, existing SGIP projects will continue to receive the same incentives they were receiving prior to this decision and will continue to operate under the existing SGIP rules. Projects on the PAs' waitlist will receive incentives according to existing program rules, but SGIP projects that obtain reservation requests after the effective date of this decision will be subject to the new rates, payment structures, and other operational requirements adopted here. Eligible projects that were completed between January 1, 2012 and the effective date of this decision shall be subject to the program rules that were in place during that time.

To implement the changes adopted in this decision, within 30 days of the effective date of this decision, the SGIP PAs shall file advice letters proposing handbook revisions necessary to implement this decision. Upon Commission approval of the advice letters, the SGIP suspension shall be lifted and the PAs shall resume accepting reservation requests for the SGIP.

1 Attachment A sets forth a summary of all the program changes.

2 Stand-alone or paired with solar PV or any otherwise eligible SGIP technology.

3 We note, however, that current rules allow changes to existing program guidelines through advice letters and with staff approval. 

Top Of PageNext PageGo To First Page