COM/MP1/tcg Date of Issuance 9/28/2009

Decision 09-09-048 September 24, 2009

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 08-03-008 (Filed March 13, 2008)

DECISION GRANTING PETITION TO MODIFY SELF GENERATION INCENTIVE PROGRAM REGARDING RENEWABLE FUELS

1. Summary

This decision grants a petition by Bloom Energy Corporation (Bloom) to modify certain renewable fuel requirements rules for the Commission's Self Generation Incentive Program (SGIP). The decision modifies SGIP policies to expand eligibility for Level 2 incentives of $4.50 per watt to include projects that use renewable fuels delivered through directed biogas contracts.

The SGIP program administrators are directed to implement the handbook revisions contained in Bloom's petition, and attached as Appendix A of this decision, which has been modified to incorporate the following: 1) the expanded eligibility applies to any SGIP eligible gas-fired generator that uses directed biogas; 2) facilities using directed biogas must meet requirements to ensure the biogas meets local utility injection standards; and 3) the 20 percent adder for using a California supplier of distributed generation (DG) resources is calculated on the non-renewable SGIP incentive rate of $2.50 per watt before adding $2.00 per watt for using renewable fuel.