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STATE OF CALIFORNIA
ENERGY RESOURCES CONSERVATION
AND DEVELOPMENT COMMISSION
Implementation of Renewables Investment Plan ) Docket No. 02-REN-1038
Legislation (Public Utilities Code Sections 381, ) BUSINESS MEETING
383.5 and 445 [SB 1038] ) Re: Adoption of the
) Renewable Energy Program
_________________________________________________) Guidelines
NOTICE TO CONSIDER ADOPTION OF PROPOSED GUIDELINES
FOR THE RENEWABLE ENERGY PROGRAM
The California Energy Commission's Business Meeting will be held:
WEDNESDAY, February 19, 2003
Beginning at 10 a.m.
CALIFORNIA ENERGY COMMISSION
First Floor, Hearing Room A
1516 Ninth Street
Sacramento, California
(Wheelchair Accessible)
As part of its regularly scheduled Business Meeting on February 19, 2003, the California Energy Commission will consider adopting proposed guidelines for the continuation of its Renewable Energy Program (REP) under Senate Bill 1038 (SB 1038, Sher, Statutes of 2002, Chapter 515). These guidelines are comprised of four separate guidebooks and include the Overall Program Guidebook for the REP, the Existing Renewable Facilities Program Guidebook, Emerging Renewable Program Guidebook, and the Consumer Education Program Guidebook. The Energy Commission's Renewables Committee supports these proposed guidelines and recommends their adoption.
Background
On September 12, 2002, Governor Gray Davis signed SB 1038 into law, extending the Energy Commission's REP. SB 1038 authorizes the Energy Commission to continue administering the REP beginning January 1, 2003 and extends the Energy Commission's authority to continue distribution of the Public Goods Charge funds.
SB 1038 directs the Energy Commission to adopt guidelines governing the implementation of program funding under the law. Towards this end, the Energy Commission conducted two staff workshops in October and November 2002 to solicit public comments on critical issues affecting the continuation of the REP and the implementation of the Existing Renewable, Emerging Renewable, and Consumer Education elements of the REP. Based on the public comments received as a result of these workshops, as well as changes to existing law under SB 1038, draft guidebooks were prepared. The Renewables Committee held two days of hearings in December 2002 to solicit public comments on the draft guidebooks, which have now been revised, in part, to address the comments received.
The proposed guidelines do not address the New Renewable or Customer Credit elements of the REP at this time. The Energy Commission is developing procedures and guidelines for the New Account in consultation with the California Public Utilities Commission and in consideration of the Renewables Portfolio Standard mandated by Senate Bill 1078 (SB 1078, Sher, Statutes of 2002, Chapter 516). A subsequent notice will address the New Renewable Program element of the REP.
The Energy Commission intends to address changes to the Customer Credit element of the REP as part of or subsequent to the Customer Credit report mandated by Public Utilities Code section 383.5(f)(2)(E). A subsequent notice will address this program element.
Availability of Proposed Guidebooks
Attached to this notice are summaries of the major changes in the Existing Renewable and Emerging Renewable elements made subsequent to the December hearings. The proposed guidebooks in their entirety are available from the Energy Commission's website address:
www.energy.ca.gov/renewables/documents/
OR
www.energy.ca.gov/renewables/02-REN-1038/documents/
For those preferring a printed copy of the guidebooks, please call the Project Secretary, Janet Preis, at (916) 654-4530 or e-mail at jpreis@energy.state.ca.us.
Written Comments
Members of the public may submit written comments before the February 19, 2003, Business Meeting, but they are encouraged to submit comments by February 17, 2003. Those submitting written comments should provide an original plus 11 copies to the Energy Commission's Docket Unit. Those interested in filing comments by e-mail immediately may send electronic documents to [docket@energy.state.ca.us] but will need to follow up with an original copy by mail or one delivered to the Docket Unit plus 11 copies. If you are providing written comments at the Business Meeting, please make an additional 30 copies available at the beginning of the Business Meeting. Written materials filed with the Docket Unit or provided at the Business Meeting become part of the public record. Please send or deliver written materials to:
California Energy Commission
Re: Docket No. 02-REN-1038
Docket Unit, MS-4
1516 Ninth Street
Sacramento, CA 95814-5504
Assistance
The Energy Commission's Public Adviser, Roberta Mendonca, provides assistance to participate in Energy Commission activities. Members of the public who would like information on how to participate in the Business Meeting may contact the Public Adviser's Office by phone at (916) 654-4489 or toll free at (800) 822-6228, FAX at (916) 654-4493, or e-mail at [pao@energy.state.ca.us].
If you have a disability and need assistance to participate in the Business Meeting, please contact Lourdes Quiroz at (916) 654-5146 at least five days before the meeting.
Members of the public who have technical questions regarding this notice may contact Tim Tutt, Technical Director of the Renewable Energy Program by phone at (916) 654-4590 or by e-mail at ttutt@energy.state.ca.us. News media should direct inquiries to Claudia Chandler, Assistant Director, at (916) 654-4989.
Dated: January 17, 2003
STATE OF CALIFORNIA
ENERGY RESOURCES CONSERVATION
AND DEVELOPMENT COMMISSION
JOHN L. GEESMAN
Commissioner and Presiding Member
Renewables Committee
JAMES D. BOYD
Commissioner and Associate Member
Renewables Committee
Mass Mail List: Master 63
Date Mailed: January 17, 2003
ATTACHMENT 1
Summary of Major Changes to the Emerging Renewables Program
(Changes reflect modifications to the December 2002 Committee Draft Guidebook)
- The Energy Commission intends to begin accepting new reservation requests on March 3, 2003 (the first business day in March). The initial incentive remains at $4.00 for photovoltaic (PV) systems and $2.50 for small wind systems as proposed in the December 2002 Committee Draft Guidebook (Draft Guidebook).
- Incentives will decline by $0.20 per watt every six months (instead of %0.25 per watt), with the first decline beginning July 1, 2003. Additional declines will occur every six months (without regularly scheduled reviews as proposed in the Draft Guidebook).
- There are no longer primary and secondary rebates as proposed in the December 2002 Committee Draft Guidebook. Instead, owners of self-installed systems will receive a 15 percent lower rebate than contracted installations. This rebate discount replaces the $1.00 per watt for PV and $0.50 per watt for wind discounts that applied to secondary rebates in the Draft Guidebook.
- At this time, the pilot performance-based program for systems 30 kW or greater is not being proposed. The Energy Commission expects to develop this program at a later date. A total of $10 million is still reserved for this purpose.
- Wind systems less than 30 kW will receive an incentive of $2.50 per watt for the first 7.5 kW (rather than the first 5 kW). Increments above 7.5 kW will receive an incentive of $1.50 per watt.
- Rebate payment will be issued following receipt a signed copy of the utility interconnection applications, instead of the original utility interconnection agreement; however a letter of authorization to interconnect with the utility must also be submitted later.
- Equipment purchased or installed more than 18 months before applying for a rebate reservation is ineligible. The Draft Guidebook specified 12 months.
- The reservation period for aggregated systems totaling 30 kW or more is 18 months. The previous Draft Guidebook provided no information on the item.
- The Solar Schools Program has been suspended at this time pending resolution of issues related to settlement funds collected by the Attorney GeneralŐs Office from electricity suppliers.
- No Emerging Renewables Program rebate is available for systems in publicly owned electric utility service areas. The funds for this program have been returned to the StateŐs general fund as a result of budget cuts.
- The full five year warranty is no longer required to apply to the system energy estimate on the Reservation Request. Companies may warrant this estimate if they wish, however an energy estimate is still required on the Reservation Form.
ATTACHMENT 2
Summary of Major Changes to the Existing Renewable Facilities Program
(Changes reflect modifications to the December 2002 Committee Draft Guidebook)
- The Energy Commission will make payments to eligible ERFP participants for 2002 generation.
- The target price for Tier 1 facilities will be 5.5 cents/kWh for 2002 only. All other target prices shall remain as specified in the December 2002 Committee Draft Guidebook.
- Facilities that have fixed-price contracts of 5.37 cents/kWh with Investor Owned Utilities are eligible for payments from the ERFP.
- For facilities with contracts that receive fixed monthly average energy prices for a majority of their generation, the value of the market price for all their generation will now be the fixed monthly average energy price as specified in the contract.
(Facilities that signed 5.37 cents/kWh amendments and received 75 percent of payments based on 5.37 cents/kWh and 25 percent based on Short Run Avoided Costs (SRAC) will now receive a market price of 5.37 cents/kWh. For facilities in the PG&E territory that signed 5.37 cents/kWh amendments, the market price will be approximately 6.0 cents/kWh during the winter period and 4.7 cents/kWh during the summer period.)