12. 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. Section 2866 establishes eligibility and budget requirements for a low-income SWH incentive program.
2. In D.10-01-022, the Commission budgeted $25 million for low-income SWH incentives through the CSI Thermal Program.
3. According to Section 2866(f), any portion of the $25 million low-income SWH incentive budget that is unexpended and unencumbered on August 1, 2018 shall be used to augment cost-effective energy efficiency measures in low-income residential housing that benefit ratepayers.
4. Section 2861(e) defines low-income residential housing for the purpose of low-income SWH incentives, while Section 2852 defines low-income residential housing for purposes of the SASH program for incentives to solar PV energy systems through the CSI program.
5. Section 2866(c) allows the Commission to extend eligibility for low-income SWH incentive to residential housing occupied by ratepayers participating in a qualifying gas corporation LIEE program (now known as ESAP).
6. Approximately 70% of multifamily residents pay for utilities separate from their rent.
7. Section 2866(e)(2) requires the Commission to ensure that properties receiving low-income SWH incentives remain low-income residential properties for at least 10 years from the time of installation.
8. Section 2866(d) requires the Commission to ensure that low-income households benefit from the SWH installation.
1. The $25 million low-income SWH incentive budget should be collected exclusively from natural gas ratepayers and should only be used to fund natural-gas displacing SWH systems.
2. Any expenses to administer and market low-income SWH incentives should be absorbed by the existing $20 million administration budget and $25 million market facilitation budget for the CSI Thermal Program.
3. The $25 million low-income SWH incentive budget should be allocated among the three PAs with gas customers in the same proportions as the CSI Thermal gas-displacing program budget.
4. The Commission should extend low-income SWH incentives to residential housing occupied by ratepayers participating in a Commission-approved and supervised gas corporation LIEE program (now known as ESAP).
5. It is reasonable to make low-income SWH incentives available to multifamily properties with natural gas water heating so that the benefits of energy savings from SWH may be passed on to tenants.
6. To ensure that properties receiving incentives remain low-income residential properties, the PAs shall obtain a signed commitment from the applicant, as set forth in Appendix A, that the property will remain a low-income residential property for at least 10 years from the time of installation of the SWH system.
7. Funds collected from natural gas ratepayers to fund low-income SWH incentives should only be used to fund natural-gas displacing SWH systems.
8. The low-income SWH incentive component to CSI Thermal should be adopted as set forth in Appendix A, which sets forth eligibility requirements, incentive levels, and other program details.
9. The Commission should review participation in the low-income SWH incentive program and adjust incentives through a future decision as needed, following appropriate notice and an opportunity for comment by interested parties.
10. Low-income incentives levels for multifamily properties should be lower than single family properties because of economies of scale for multifamily properties and greater access by multifamily properties to financing for solar installations.
11. Incentives for single-family systems should be capped at 200% of the incentive caps for general market CSI Thermal single-family systems. Incentives for multifamily systems should be capped at $500,000 per system.
12. The benefits of the SWH installation should flow to single-family households through reduced natural gas consumption and a lower natural gas bill.
13. The PAs should obtain an affidavit from applicants who intend to install an SWH system on a multifamily property to indicate how qualifying low-income residents will benefit from the SWH installation through reduced energy costs.
14. Low-income SWH incentives should be administered by the same PAs that administer the natural gas portion of the CSI Thermal Program.
IT IS ORDERED that:
1. The low-income solar water heating incentive program set forth in Appendix A is adopted.
2. Within 90 days of the effective date of this decision, the California Solar Initiative (CSI)-Thermal Program Administrators (namely Pacific Gas and Electric Company, Southern California Gas Company and the California Center for Sustainable Energy) shall jointly submit an advice letter to revise the CSI Thermal Handbook to incorporate the low-income solar water heating incentive program as set forth in Appendix A. Within 30 days of the Commission approving this advice letter, the CSI Thermal Program Administrators shall begin to accept applications for low-income solar water heating incentives
3. The California Solar Initiative Thermal Program Administrators (namely Pacific Gas and Electric Company, Southern California Gas Company and the California Center for Sustainable Energy) shall submit an advice letter no later than September 1, 2018 detailing the amount of the $25 million low-income solar
water heating incentive budget that is unexpended and unencumbered.
This order is effective today.
Dated October 6, 2011, at Los Angeles, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK J. FERRON
Commissioners
I reserve the right file a concurrence.
/s/ TIMOTHY ALAN SIMON
Commissioner
