STATE OF CALIFORNIA

Energy Resources
Conservation and Development Commission

Implementation of Renewables       )  Docket No. 02-REN-1038
Investment Plan Legislation        )  Renewable Energy Program
(Public Utilities Code Sections    )  NOTICE OF STAFF WORKSHOP
381, 383.5, and 445; [SB 1038])    )  RE: Pilot Performance-Based
                                   )  Incentive Program for the Emerging  
                                   )  Renewables Program
___________________________________)

Notice of Staff Workshop

Proposed Pilot Performance-Based Incentive Program
for the

Emerging Renewables Program

The staff of the California Energy Commission will conduct a public workshop on a proposed pilot performance-based incentive (PBI) program for the Emerging Renewables Program. The workshop will be held on:

MONDAY, SEPTEMBER 27, 2004
1:00 p.m.
CALIFORNIA ENERGY COMMISSION
1516 Ninth Street
First Floor, Hearing Room A
Sacramento, California
(Wheelchair Accessible)

Audio from this meeting will be broadcast over the Internet.
For details, please go to:
www.energy.ca.gov/webcast/

Purpose of the Workshop

The staff of the Energy Commission's Renewable Energy Program is conducting the workshop to solicit input on a proposal to implement a pilot performance-based incentive program for solar photovoltaic (PV) technologies for the Emerging Renewables Program (ERP). To initiate discussion and help focus the direction of the workshop, the Energy Commission staff has developed a ÒstrawmanÓ proposal, available on the Energy Commission's website. Interested parties are encouraged to review the proposal prior to the workshop.

Background

The ERP was created to help develop a self-sustaining market for renewable energy systems that supply on-site electricity in California. The goal of the ERP is to reduce the cost of renewable energy systems to consumers, stimulate demand and increase sales of systems. In turn, increased sales are expected to encourage manufacturers, sellers, and installers to expand operations, improve distribution, and reduce system costs. Currently operating under the direction of Senate Bill 1038 (SB 1038, Sher, Chapter 515, Statutes of 2002) and Senate Bill 183 (SB 183, Sher, Chapter 666, Statutes of 2003), the ERP has provided about $155 million in rebates for the installation of over 10,000 systems since 1998.

SB 1038 and SB 183 authorize the Energy Commission to develop a program that provides preference to systems based on their performance. On August 27, 2004, the Energy Commission's Integrated Energy Policy Report Committee and the Renewables Committee held a workshop to seek public comment on the Accelerated Renewable Energy Development Draft Staff White Paper.1 The future of the ERP and possible performance incentives were some of the key PV policy issues discussed at that workshop.

As a first step toward exploring a performance-based incentive program, the Energy Commission staff has developed a strawman proposal for a pilot program that includes a program structure, system size limits, incentive level and payment structure, data collection and reporting, and a reservation and application process for a performancebased incentive program.

The Energy Commission encourages interested parties to participate in the process of refining the staff proposal. Interested parties are invited to review the strawman proposal and provide oral and/or written comments on it at the workshop. Parties providing written comments on the staff's proposal are asked to provide an original and 21 copies of the comments. Parties may also file a single copy electronically with the Docket Unit and follow up with an original copy by mail. Parties providing written comments at the workshop are asked to submit them at the beginning of the workshop. Written comments may also be submitted during the week following the workshop by October 1, 2004.

Written comments on the staff's proposal should be submitted to:

California Energy Commission
Re: Docket No. 02-REN-1038
Docket Unit, MS-4
1516 Ninth Street
Sacramento, CA 95814-5504
e-mail: docket@energy.state.ca.us

All written materials will be filed with the Docket Unit and will become part of the public record.

The proposal is available on the Energy Commission's website at:

www.energy.ca.gov/renewables/emerging_renewables.html

Please note that although this is a staff workshop, Energy Commission Commissioners may attend.

Following the workshop, the staff expects to release a revised draft of the proposal for discussion at a Renewables Committee workshop. The ERP Guidebook will then be updated and a draft will be released for public review. After incorporating public input, the Energy Commission will consider the updated ERP Guidebook for adoption at a regularly scheduled business meeting.

Public Participation

The Energy Commission's Public Adviser, Margret J. Kim, provides the public assistance in participating in Energy Commission activities. If you would like information on how to participate in this workshop, please contact the Public Adviser's Office by phone at (916) 654-4489 or toll free at (800) 822-6228, by FAX at (916) 654-4493, or by e-mail at [pao@energy.state.ca.us]. If you have a disability and require assistance to participate in this workshop, please contact Lou Quiroz at (916) 654-5146 at least five days in advance.

If you have questions on the technical subject matter of this notice, please call Ann Peterson at (916) 653-4246 or e-mail her at [apeterso@energy.state.ca.us]. News media inquiries should be directed to Claudia Chandler, Assistant Executive Director, at (916) 654-4989.

Note: California Energy Commission's formal name is State of California Energy Resources Conservation and Development Commission.

1 Accelerated Renewable Energy Development Draft Staff White Paper (#100-04-003), pp. 67-92,
[www.energy.ca.gov/2004_policy_update/documents/index.html#draftwhitepapers].