6. Need for Expedited Consideration
Rule 77.7(f)(9) of the Commission's Rules of Practice and Procedure provides in relevant part that:
"...the Commission may reduce or waive the period for public comment under this rule...for a decision where the Commission determines, on the motion of the party or on its own motion, that public necessity requires reduction or waiver of the 30-day period for public review and comment. For purposes of this subsection, "public necessity" refers to circumstances in which the public interest in the Commission adopting a decision before expiration of the 30-day review and comment period clearly outweighs the public interest in having the full 30-day period for review and comment. "Public necessity" includes, without limitation, circumstances where failure to adopt a decision before expiration of the 30-day review and comment period...would cause significant harm to public health or welfare. When acting pursuant to this subsection, the Commission will provide such reduced period for public review and comment as is consistent with the public necessity requiring reduction or waiver."
We balance the public interest in quickly addressing these AB 970 implementation matters against the public interest in having a full 30-day comment cycle on the proposed amendment. The programs are designed to address the current energy crisis. A reduced period for review and comment balances the need for parties' input with the need for timely action.
Comments were filed on ___________by _________________.
1. Investments in new, environmentally superior electricity generation is one of the stated purposes of AB 970.
2. Distributed generation is one form of electricity generation promoted by AB 970 through new program initiatives administered by the Commission.
3. A fossil-fired system is not renewable or super clean, and therefore would qualify for incentives under § 399.15(b) only if it enhances system reliability.
4. Any distributed generation system will enhance generation reliability, since, by definition, the system is installed on the customer's side of the meter and provides electricity for a portion or all of a customer's electric load.
5. Interpreting § 399.15(b) to mean that fossil-fired systems only have to enhance generation reliability to be eligible for incentives, would fail to fully recognize the Legislature's interest in the environmental impacts of distributed generation technologies.
6. California is facing a shortage of electricity this year, with potential for rolling blackouts throughout the summer.
7. New sources of generation can alleviate the shortages and potential for blackouts.
8. Suspending the requirement that fossil-fueled projects demonstrate a transmission or distribution reliability benefit will allow more generation projects to qualify for funding under our program.
9. No further Commission action is required by D.01-03-073 to establish final implementation details for the distributed generation program.
10. The proposals by Joint Parties and RealEnergy for waste heat recovery standards do not include a minimum requirement for waste heat recovery, and therefore do not satisfy the direction in D.01-03-073 that non-renewable technologies must utilize waste heat recovery at the customer site.
11. The standard used by the Commission for determining the eligibility of cogeneration facilities for rate discounts is set forth in Pub. Util. Code § 218.5. This standard includes a minimum requirement for waste heat recovery and a minimum system efficiency ratio (output as a ratio to fuel input).
12. The Joint Parties' proposed minimum system efficiency ratio (40%) falls below the § 218.5 standard of 42.5%, and uses a formula for calculating system efficiency that overstates efficiency levels, relative to the one embodied in § 218.5. The seasonal variation proposed for units smaller than 250kW could allow these units to qualify with annual efficiencies much less than 40%.
13. Adding the additional FERC standard for systems over 50kW, as SCE proposes, would introduce a dual set of standards across Commission incentive programs for cogenerators.
14. The difference between the FERC and §218.5 efficiency standard is relatively small, and only affects systems over 50kW with less than 15% useful thermal output.
15. There is insufficient data or basis on the record to adopt a waste heat recovery standard and formula that had not been widely discussed or used in the industry, such as the one proposed by NRDC/ACEEE.
16. NRDC/ACEEE's proposal to incorporate emission standards currently under development into waste heat recovery standards is premature.
1. The reliability requirement set forth in D.01-03-073 for fossil-fired distributed generation resources is consistent with the stated purpose of AB 970.
2. SCE's Emergency Petition For Modification of D.01-03-073 should be denied.
3. It is reasonable to suspend the requirement that fossil-fueled projects demonstrate a transmission or distribution reliability benefit to qualify for funding under our programs for projects which seek funding this year in order to encourage the development of needed generation this year.
4. Energy Division should select final program details for statewide implementation without delay.
5. PG&E's proposal to use efficiency standards defined for cogeneration in Pub. Util. Code § 218.5 as the waste heat recovery requirement for non-renewable distributed generation technologies is reasonable, and should be adopted.
6. Distributed generation facilities participating in the AB 970 program should not be exempt from applicable emission standards, once they are developed and made effective by statute or by the California Air Resources Board.
7. The period for public review and comment on the draft decision should be reduced, pursuant to Rule 77.7(f)(9).
8. In order to proceed with the implementation of D.01-03-073 as expeditiously as possible, this decision should be effective today.
IT IS ORDERED that:
1. The Emergency Petition of Southern California Edison Company To Modify Decision (D.) 01-03-073, filed on May 17, 2001, is denied.
2. The requirement that fossil-fueled projects demonstrate a transmission or distribution reliability benefit in order to qualify for funding is suspended for projects seeking funding this year.
3. In order to qualify for incentives under the self-generation program adopted by D.01-03-073, Level 2 and 3 distributed generation technologies must meet the cogeneration standards set forth in Public Utilities Code Section 218.5.
4. Energy Division shall select any other program details required to implement the self-generation program on a statewide basis without delay.
This order is effective today.
Dated , at San Francisco, California.
