10. Assignment of Proceeding
Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned ALJ in this portion of the proceeding.
1. In D.08-10-036, the Commission established the MASH program with the goal of allocating the benefits of solar energy systems to all tenants on the eligible affordable housing property.
2. Many multifamily affordable housing properties are comprised of multiple parcels extending across several city blocks and served by multiple service delivery points.
3. The current VNM tariffs limit the transfer of VNM credits to those accounts served by a single service delivery point.
4. Residential and small business renters that fund CSI through their electric rates are unable to apply for CSI incentives under the current CSI program.
5. The concept of a bill credit transfer for local governments was created by Section 2830.
6. Energy Division has found that CSI application processing times are too long and delays cost solar customers both time and money.
7. When CSI applications drop out, those incentive dollars can be made available to other projects.
8. The CEC's SB 1 Guidelines require inspection of one in seven CSI projects whereas in D.06-08-028, the Commission required the PAs to inspect every CSI project between 30 and 100 kW.
9. In D.06-08-028 the Commission directed that project installers who fail three random inspections must be excluded from program participation.
10. In D.06-08-028, the Commission allowed EPBB systems to apply for a PMRS cost-cap exemption under certain circumstances.
11. The EPBB calculator, created in compliance with D.06-08-028, is separate from the CSI online application processing database, PowerClerk.
12. In D.06-08-028, the Commission allowed smaller solar energy systems to opt-in to PBI payments, rather than up-front EPBB incentives.
13. In D.06-08-028, the Commission allocated 10% of the total CSI budget for administrative expenses, but directed the PAs to spend only half this amount until further Commission order.
14. In D.10-09-046, the Commission shifted $40 million from the CSI administration budget into the CSI incentive budget.
15. The PAs will need administrative funds to cover post-2016 expenses.
16. The Commission established a CSI program evaluation budget of $46.7 million in July 2008, which was reduced to $26.7 million in D.10-09-046.
17. The current CSI revenue requirement was adopted in D.10-04-017.
18. Forfeited application fees and interest reduce the amount of ratepayer collections for CSI.
19. In D.07-11-045, the Commission adopted a minimum design factor requirement for SASH projects.
20. In D.08-11-005, the Commission required that 100% of SASH installations be inspected by a third-party inspector.
21. The SASH program has financial safeguards through program reporting and auditing.
22. MASH Track 1 incentives are sold out in all three utility territories, and there are unused funds available in the MASH Track 2 budget.
23. In D.08-10-036, the Commission required that MASH projects be occupied for two years prior to applying for MASH incentives.
1. To fulfill the mandate of D.08-10-36, the VNM tariffs applicable to MASH Program participants should be modified to allow the sharing of VNM credits over the entire affordable housing property participating in MASH, which may be on contiguous parcels divided by a street, highway or public thoroughfare, as long as they are under the same ownership.
2. VNM tariffs should be expanded to allow any residential, commercial or industrial multi-tenant or multi-meter property to take VNM service and thereby receive the benefits of a solar energy system and net energy metering.
3. For properties other than MASH-participating affordable housing developments, an expanded VNM tariff should be limited to accounts served by a single SDP.
4. It is not necessary for a customer to have received a CSI incentive to receive VNM service.
5. The expanded VNM tariff can apply to any DG technology that is eligible for a full retail rate credit under net energy metering.
6. Energy Division should further review the costs and implementation issues surrounding expansion of the RES-BCT tariff, which could allow solar energy system owners to share production at one site with other accounts registered to the same customer.
7. The Commission should adopt minimum standards for CSI order processing.
8. The CSI PAs should submit a quarterly report to the Energy Division containing detailed information on application extensions.
9. It is reasonable to remove the requirement that PAs inspect every project between 30 and 100 kW so that Commission requirements and CEC SB 1 Guidelines for inspection are consistent.
10. The PAs should review their inspection procedures, sampling methodology and costs in an effort to decrease inspection costs. The PAs should submit an inspection plan by advice letter.
11. The CSI rules for suspension should be modified to be based on a failure rate rather than a predetermined number of failures.
12. Section 4.10 of the CSI Handbook should be modified to clarify that high volume installers, defined as those with 200 or more project sites per rolling 12-month period, shall be placed on probation if their failure rate reaches 1.5%, and shall be suspended if their failure rate reaches 2.5%.
13. The cost-cap exemption adopted in D.06-08-028 should be removed to improve collection of CSI production data. All EPBB systems over 10 kW, except those funded through MASH or SASH, should take PMRS service at the applicants own cost, and report 15-minute interval kWh production data to the PAs on a quarterly basis for five years.
14. Integration of the EPBB calculator into PowerClerk will expedite sharing of critical CSI project information from applicants directly into the database to be used for program evaluation purposes.
15. Fixed tilt systems 10 kW or smaller should no longer be able to opt-in to PBI payments.
16. The CSI PAs should be allowed to spend the entire authorized administrative budget amount, but not exceed it.
17. The PAs should reserve unallocated administrative funds for post-2016 expenses.
18. The PAs may charge administrative expenses related to miscellaneous functions that pertain to several CSI sub-programs to the general market CSI administrative budget.
19. The CSI M&O budget should remain as adopted in D.10-09-046.
20. The PAs should coordinate and jointly manage M&E activities across all CSI sub-programs.
21. The CSI revenue requirement needs a minor adjustment to collections in 2016 so that revenue collections match the CSI budget adopted in D.10-09-016.
22. The SASH minimum design factor should be lowered to 0.85 based on experience with the program.
23. Random inspection of a sample of SASH installations should replace the former 100% inspection requirement.
24. The SASH PA should develop a sampling protocol for SASH involving random inspection of one in seven systems by a third-party inspector not affiliated with the PA.
25. If inspection guidelines for the general market program are modified, the SASH inspection guidelines should conform to these new inspection guidelines.
26. All funds remaining in MASH Track 2 should be shifted to MASH Track 1.
27. MASH Track 1 incentives should be reduced given declines in solar installation costs.
28. It is reasonable to remove the 20/80 percentage split of Track 1A and 1B funds adopted in D.08-10-036, and allow the PAs to spend MASH Track 1 funds on either Track 1A or 1B without limitation.
29. A MASH application fee should be adopted, mirroring the application fees in the general market CSI program.
30. The two-year occupancy requirement for MASH applicants is no longer needed, but projects may not receive incentives from both NSHP and MASH.
31. The PAs should continue to conduct the key M&O activities adopted in D.07-05-047.
IT IS ORDERED that:
1. Within 30 days of the effective date of this decision, Southern California Edison Company and San Diego Gas and Electric Company shall each file a Tier 2 advice letter to revise their respective Virtual Net Metering tariffs, applicable to Multifamily Solar Housing (MASH) Program participants, to match the Pacific Gas and Electric Company (PG&E) NEMVNMA tariff. Within 30 days of this decision, PG&E should file a Tier 2 advice letter to remove the sunset date from its NEMVNMA tariff for MASH participants.
2. Within 60 days of the effective date of this decision, Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas and Electric Company (collectively, the utilities) shall each file Tier 2 advice letters containing modifications to their Net Energy Metering tariffs to allow Virtual Net Metering (VNM) to apply to all multi-tenant and multi-meter properties, with the limitation that sharing of bill credits can only occur for accounts served by a single service delivery point that receive a full retail rate credit unless the customer is a Multifamily Solar Housing Program participant. The revised tariffs in these advice letters should mirror the tariff created in compliance with Decision 08-10-036 for Multifamily Affordable Solar Housing (MASH) program participants. Any deviations from the MASH VNM tariffs should be explained and supported in the advice letter. The utilities may propose a one time account set up fee and monthly administrative fee for VNM service. The utilities may seek recovery of VNM implementation and set up costs in their future general rate cases.
3. The California Solar Initiative (CSI) Program Administrators (namely Pacific Gas and Electric Company, Southern California Edison Company, and the California Center for Sustainable Energy) should act on CSI applications within the timeframes in Table 1 of this decision.
4. The Commission's Energy Division may draft a resolution for consideration of an audit of California Solar Initiative Program Administrators' performance with regard to project extensions.
5. The California Solar Initiative Program Administrators (namely Pacific Gas and Electric Company, Southern California Edison Company, and the California Center for Sustainable Energy) shall jointly undertake a review of their inspection procedures, sampling methodology, and inspection costs. Such a review shall assess the inspection sampling methodology and whether certain solar installation contractors should be targeted for inspection if they are new to the program or had a history of problem installations. The inspection review shall consider the cost of inspections versus the benefit inspections can provide in preventing fraud and maintaining program integrity.
6. Within 90 days of the effective date of this decision, the California Solar Initiative (CSI) Program Administrators (namely Pacific Gas and Electric Company, Southern California Edison Company, and the California Center for Sustainable Energy) shall jointly submit a Tier 2 advice letter with a CSI inspection plan.
7. The California Solar Initiative (CSI) Program Administrators (namely Pacific Gas and Electric Company, Southern California Edison Company, and the California Center for Sustainable Energy) shall report within one year of this decision to Energy Division on the feasibility of using advanced metering infrastructure data to make solar production data available to CSI participants, and ensure a copy of this report is sent to the service list of this rulemaking.
8. Within 90 days of the effective date of this decision, the California Solar Initiative (CSI) Program Administrators (namely Pacific Gas and Electric Company, Southern California Edison Company, and the California Center for Sustainable Energy) shall complete integration of the Expected Performance Based Buydown Calculator into the CSI application database, PowerClerk.
9. The California Solar Initiative Program Administrators (namely Pacific Gas and Electric Company, Southern California Edison Company, and the California Center for Sustainable Energy) may spend up to, but no more than, the total administrative budget amounts adopted in Decision 10-09-046, Table 6.
10. The California Solar Initiative (CSI) Program Administrators (namely Pacific Gas and Electric Company, Southern California Edison Company, and the California Center for Sustainable Energy) shall reserve the unallocated funds shown in Table 6 of Decision 10-09-046 for post-2016 CSI expenses. If additional funds are needed for post-2016 CSI application processing, the CSI Program Administrators shall alert Energy Division in the semi-annual CSI expense report.
11. The California Solar Initiative revenue requirement shown in Table 5 of this decision is adopted.
12. Southern California Edison Company shall work with the Single Family Affordable Solar Housing (SASH) Program Administrator to develop a sampling protocol for the SASH Program and shall, within 60 days of this decision, submit that protocol for Commission approval through a Tier 2 advice letter.
13. Multifamily Affordable Solar Housing (MASH) Program Track 1 incentives shall be reduced to $1.90 per watt for Track 1A and $2.80 per watt for Track 1B. These new incentive levels shall apply to any MASH reservations confirmed after the date of this decision.
14. Energy Division shall obtain information on the number of households eligible for the Single Family Affordable Solar Housing Program and the Multifamily Affordable Solar Housing Program and report this information to the Administrative Law Judge and assigned Commissioner.
15. The Administrative Law Judge and assigned Commissioner may issue a ruling to shift funds from the Single Family Affordable Solar Housing Program to the Multifamily Affordable Solar Housing Program, after appropriate notice and opportunity to comment by the parties to this proceeding.
16. Applicants for Multifamily Affordable Solar Housing incentives may not receive incentives from the California Energy Commission's New Solar Homes Partnership.
17. The California Solar Initiative Program Administrators (namely Pacific Gas and Electric Company, Southern California Edison Company, and the California Center for Sustainable Energy) shall file annual Marketing and Outreach plans and budgets through a Tier 2 advice letter no later than December 1st of each year, following the general approval guidelines currently established by the Energy Division.
18. The Administrative Law Judge may modify the compliance dates set forth in this order for good cause and as needed to ensure effective program implementation.
19. This proceeding remains open for consideration of additional issues as set forth in the Scoping Memo Ruling dated November 9, 2010.
This order is effective today.
Dated July 14, 2011, at San Francisco, California
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK J. FERRON
Commissioners
