Background
In Decision (D.) 10-01-022, the Commission established the California Solar Initiative (CSI) Thermal Program, which pays incentives to solar water heating (SWH) systems that displace gas water heating. The CSI Thermal Program Administrators1 (PAs) pay incentives to gas-displacing systems, which are funded by $250 million collected from natural gas ratepayers. The program also pays incentives to SWH systems that displace electric water heating. Incentives to electric-displacing SWH systems are funded by $100.8 million collected from electric ratepayers and allocated for solar thermal incentives in the general market budget of the CSI program. Despite these two sources of funding for SWH systems, D.10-01-022 makes no provision for the payment of incentives to SWH systems that displace propane water heating. This stems in part from language in D.06-12-033 which allows funding of solar thermal technologies and solar water heating in the CSI program, but only those that displace electric usage.
On June 14, 2011, the Administrative Law Judge (ALJ) in this proceeding issued a ruling requesting comment from parties on the issue of allowing CSI Thermal incentives to SWH systems that displace propane usage.2 An Energy Division Staff Proposal (Staff Proposal) providing background and analysis on the issue was attached to the ruling. Comments were filed by Dr. Barbara Barkovich,3 the California Solar Energy Industries Association (CALSEIA), SCE, and jointly by the CCSE and PG&E. Joint reply comments were filed by CALSEIA and CCSE.
The Staff Proposal recommends that the Commission modify D.10-01-022 to allow payment of incentives to customers of PG&E, SCE and SDG&E who install SWH systems that displace propane. According to the Staff Proposal, electric ratepayers who use propane for water heating help support the CSI Thermal Program through their rates but cannot access the program's benefits.
The Staff Proposal recommends that customers seeking CSI Thermal incentives for propane-displacing SWH systems meet all of the eligibility requirements that currently apply to electric-displacing CSI Thermal applicants. Furthermore, Staff proposes that incentive levels for systems displacing propane would be set at the same level as the current CSI Thermal incentives to electric-displacing SWH systems. Staff proposes that funding for incentives to propane-displacing SWH systems would come from the $100.8 million budgeted in the general market CSI program for electric-displacing solar thermal, as adopted in D.10-01-022.
1 The CSI Thermal PAs are Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), Southern California Gas Company (SoCalGas) and the California Center for Sustainable Energy (CCSE) in the San Diego Gas & Electric Company (SDG&E) service territory.
2 The ruling proposes modification of D.10-01-022, adopted in Rulemaking (R.) 08-03-008. In opening the successor rulemaking R.10-05-004 in May 2010, the Commission noted that all modifications of prior decisions would occur in the new rulemaking docket. (See R.10-05-004, Ordering Paragraph 3.)
3 Dr. Barkovich frequently participates in Commission proceedings on behalf of clients, but in this rulemaking, she is representing her own interests as an inhabitant of Western Mendocino County where there is no natural gas service.
