NOTICE TO CONSIDER ADOPTION OF CHANGES TO THE
Existing Renewable Facilities Program Guidebook

The California Energy Commission (Energy Commission) will hold a regularly scheduled Business Meeting on:

WEDNESDAY, November 30, 2005
10 a.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/

This item was originally scheduled for the November 16, 2005 Business Meeting, but was postponed in order to address comments submitted by interested parties. As part of the November 30, 2005, Business Meeting, the Energy Commission will consider adopting revisions to the Guidebook for the Existing Renewable Facilities Program (Guidebook). This Guidebook was initially adopted in February 2003.

The Energy Commission's Renewables Committee (Committee) recommends these Guidebook revisions pursuant to Public Resources Code section 25747, which authorizes the Energy Commission to adopt substantive changes to the Guidebook upon providing ten days written notice. Changes shall take effect once approved by the Energy Commission at a publicly noticed meeting.

The California Biomass Energy Alliance (CBEA) submitted a written request to the Committee that the Target Price and the Cap in the Existing Renewable Facilities Program (ERFP) be increased for Tier 1 biomass facilities by $0.008 cents/kWh for generation from August 1, 2005 through December 31, 2006. The request by the CBEA reflects increases in the cost of diesel fuel to collect, process, and transport biomass fuel.

The Committee has considered the CBEA's original request as well as subsequent comments by the CBEA, and is recommending the Target Price and Cap be increased pursuant to Public Resources Code section 25742, subdivision (b), which authorizes the Energy Commission to adjust these values to reflect changing market and contractual conditions as well as inflation. The Committee recommends increasing the Target Price and Cap as follows and proposes Guidebook revisions accordingly:

• Increase the Target Price for Tier 1 biomass facilities only, by $0.008 / kWh for November 2005 through April 2006 generation, and by $0.005 / kWh for May and June 2006 generation.


• Increase the Cap for Tier 1 biomass facilities only by $0.005 / kWh for November 2005 through June 2006 generation.


• The increased Target Prices and Cap will apply to generation produced from November 1, 2005 through June 30, 2006 only.

Although this increase is less than originally requested by the CBEA, the Committee believes it is reasonable, given the effect of the new federal production tax credit for biomass facilities. In addition, many of the biomass facilities participating in the ERFP will be negotiating new power purchase contracts with their procuring utilities and should be encouraged to negotiate contracts that reflect the increased costs of diesel fuel to collect, process, and transport biomass fuel.

The proposed Guidebook revisions are posted on the Energy Commission's website at:

http://www.energy.ca.gov/renewables/documents/index.html#existing

Hard copies of the proposed Guidebook revisions may be obtained by contacting Janet Preis by phone at (916) 654-4524 or by e-mail at [jpreis@energy.state.ca.us].

Written Comments

The Energy Commission encourages members of the public to submit written comments on the proposed Guidebook revisions in advance of the Business Meeting. An original and 21 copies of any comments filed by mail or in person should be provided to the Energy Commission's Docket Unit. Parties may also file a single copy electronically with the Docket Unit and follow up with an original copy by mail. If you are providing written comments at the Business Meeting, please make an additional 50 copies available at the beginning of the meeting.

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
E-Mail: docket@energy.state.ca.us

All written materials filed with the Docket Unit will become part of the public record in this proceeding. The Committee strongly encourages parties to file written comments by close of business November 28, 2005.

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 meeting, 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 meeting, please contact Lou Quiroz at (916) 654-5146 at least five days in advance.

If you have technical questions concerning the subject matter of this notice, please contact Tony Gon¨alves by phone at (916) 654-5168 or by e-mail at [tgoncalv@energy.state.ca.us]. News media inquiries should be directed to Claudia Chandler, Assistant Executive Director, at (916) 654-4989.

John L. Geesman Commissioner and Presiding Member Renewables Committee

Jackalyne Pfannenstiel Vice Chair and Associate Member Renewables Committee

Date posted: November 18, 2005

Mail List: 5503 Existing Renewables

* Amended and recast as Public Resources Code sections 25740 through 25751 pursuant to SB 183 (stats. 2003, ch. 666).