Assignment of Proceeding

President Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned ALJ for this portion of the proceeding.

Findings of Fact

1. In D.07-11-045, the Commission directed that solar incentives paid through the LISF program may only go to qualifying low-income homeowners who are also the system owners and occupants of the home.

2. Barriers to program participation exist if a low-income homeowner must finance the full, before rebate cost of the system and wait for the solar rebate.

3. In D.07-11-045, the Commission required that the Program Manager verify system installation is complete and the solar energy system is operable before incentives are paid through the LISF program.

4. The LISF Program Manager must submit to an annual independent audit of program expenditures to ensure program funds are paid to legitimate and verified installations.

5. GRID's non-profit business model is based on volunteer labor and solar manufacturer discounts.

6. Allowing homeowners to assign their incentive payments to third parties is not the same as transferring system ownership to third parties.

Conclusions of Law

1. The language in D.07-11-045 restricting solar incentive payments to low-income homeowners is unnecessarily restrictive.

2. Allowing incentive recipients to assign incentives to third parties can overcome potential barriers to program participation.

3. GRID's non-profit model can help fulfill the goals of our LISF program.

4. The Commission should modify D.07-11-045 to allow assignment of incentive payments, as long as system ownership remains with the low-income homeowner.

5. A conflict of interest exists if the LISF Program Manager that pays out incentives also receives assignment of incentives.

6. The Commission should allow the LISF Program Manager to receive incentive assignments if the Program Manager's contract contains provisions for third party monitoring and oversight of incentive payments and adequately reflects the independent audit and verification requirements in D.07-11-045, as modified herein.

7. A third party must perform verification of system installation and operability.

8. Incentive recipients should be allowed the option to assign incentives to either the Program Manager or alternate solar installers or financing entities.

9. Energy Division should ensure the Program Manager coordinates with existing CSI program administrators to consider using existing arrangements for verification and inspection services.

10. Any third-party monitoring work should be compensated from the LISF budget, whether it is performed by the utilities or other entities.

ORDER

IT IS ORDERED that:

1. The petition for modification of Decision (D.) 07-11-045 filed by GRID Alternatives is granted as set forth herein.

2. D.07-11-045 should be modified as follows (new text is underlined):

Conclusion of Law (COL) 15: Energy Division should ensure the Program Manager's contract includes an agreement to submit to an annual independent audit of program expenditures.

COL 17: The Program Manager may only pay low-income incentives to a qualifying low-income homeowner who is also the system owner and occupant of the home, but a qualifying homeowner may assign his or her right to receive the incentive payment to a third party that provides the solar equipment, installation, or financing for such equipment or installation costs, as long as the homeowner continues to own the solar energy system.

COL 18: Incentives shall only be paid after third-party verification of system installation and operability.

3. The Commission's Energy Division shall ensure the Low-Income Single-Family Program Manager's contract adequately reflects the independent audit and verification requirements in D.07-11-045, as modified herein, and includes third-party monitoring and oversight of incentive payments if the Program Manager provides equipment, installation or financing to program applicants and receives incentive assignments.

4. Rulemaking 08-03-008 remains open.

This order is effective today.

Dated November 6, 2008, at San Francisco, California.

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