SCE Solicits Feedback on Solar PV Program; CPUC to Host Feed-in Tariff Panel
SCE Solar PV Program:
Back in June, the California Public Utilities Commission (“CPUC”) issued a decision authorizing Southern California Edison (“SCE”) to execute contracts for up to 250 MW of generation from solar PV facilities owned and operated by independent power producers through a competitive solicitation process. The CPUC decision required SCE to file an advice letter outlining the criteria for selection of bids and containing a draft standard power purchase agreement (“PPA”).
SCE recently filed the requisite advice letter requesting approval of its proposed competitive solicitation process and criteria and a draft standard PPA. Anyone may file protests or responses to SCE’s advice letter. Protests are due on August 10, 2009. For more information, as well as a link to SCE’s draft standard PPA, go to the CPUC website.
CPUC Panel on Feed-in Tariffs:
The CPUC announced that it will host an interactive panel discussion on feed-in tariffs for renewable energy on August 27, 2009. The panel will feature international experts from Germany, Spain, the United States, and elsewhere with experience in the global solar power market. The panelists will offer their insights on the global solar market, the role of feed-in tariffs and other mechanisms for advancing renewable energy development, and California’s role in facilitating wholesale renewable distributed generation.
The panel will be held from 1-2:30 PM at the CPUC Auditorium, 505 Van Ness Ave., San Francisco, CA.
Vermont Passes Renewable Energy Feed-in Tariff
Vermont has enacted into law legislation that establishes minimum rates to be paid by electric customers for certain renewable energy sources in long-term fixed-price contracts.
Key elements of the bill include a project size cap of 2.2 MW, for a total program cap of 50 MW, a specified contract term of 20 years (except solar contracts, which will be 25 years), and tariffs in the following amounts: wind energy projects less than 15 kW, $0.20/kWh; landfill and biogas, $0.12/kWh; solar, $0.30/kWh; and wind projects greater than 15 kW, hydropower, or other biomass, a formula using the state's average residential electricity rate. A regulatory examination of the tariffs will begin by September 15, 2009, with new rates to be set by January 15, 2010.
Governor Kulongoski Proposes Nine Bills to Promote Renewable Energy Projects, Energy and Fuel Efficiency
Oregon Governor Ted Kulongoski continues to take aggressive action in the green business realm. Having made renewable energy one of his budget priorities, Gov. Kulongoski filed nine bills under the climate change umbrella to be considered in the 2009 legislative session. According to Gov. Kulongoski, the bills will “build on our leadership in renewable energy that will create jobs and reduce greenhouse gas emissions.”
SB 80 would authorize Oregon’s participation in a regional cap-and-trade program. To flesh out the program details, SB 80 calls for the creation of the Oregon Climate Initiative Task Force, a citizen-led public process to help the Department of Environmental Quality craft the program’s administrative rules over a two-year period. The rules will then be presented to the 2011 legislature for consideration, with the program slated to go into effect in 2012.
Drawing from Germany’s success with a solar feed-in tariff program, HB 2121 seeks to promote solar energy in Oregon by creating a production incentive pilot program that will pay for the electricity produced by a solar project. The pilot program will evaluate whether production payments—as opposed to incentivizing capital expenditures—make investments in solar energy more affordable.
SB 79 is intended to give green buildings a boost by creating energy performance certificates that will function like vehicle miles-per-gallon ratings. This proposed bill charges the Oregon Department of Energy (“ODOE”) with creating an energy efficiency rating system to be adopted and implemented for new and existing residential buildings and commercial buildings of a certain size by 2011 and 2012, respectively. SB 79 also establishes a goal of net-zero emissions homes and buildings by 2030. To accomplish this, the bill calls for increased energy efficiency in commercial and residential building codes by 30 percent and 15 percent, respectively.
Pursuant to SB 101, ODOE and the Public Utility Commission would develop an emissions performance standard requiring new energy production sources to be at least as clean as natural gas.
HB 2186 would authorize the Environmental Quality Commission to develop and adopt a low-carbon fuel standard that will require fuel providers to reduce the average carbon intensity of fuels sold by 10 percent over time.
In addition to the feed-in tariff legislation, three bills would help fund energy efficiency and renewable energy projects. HB 2180 would create a Renewable Energy Fund, similar to the Cultural Trust program, that would provide up-front funding for small renewable energy projects. The bill would enable citizens to donate money into the fund and take a tax credit on the donation. To help finance energy efficiency projects, HB 2181 would give municipal and county governments bonding authority, enabling participating homeowners to pay for energy efficiency upgrades over time. SB 201 would authorize the creation of an “Energy Matchmakers” fund in the Department of Housing & Community Services. Relying in part on federal and private sector investments, the fund would be used to make houses of low-income families more energy efficient.
Finally, to help meet the Governor’s goal of 100 percent renewable electricity use for state government, SB 168 would clarify the authority to develop renewable energy projects in state buildings or on state lands.
Governor Kulongoski's Climate Change Agenda Unveiled
Earlier this week, I attended Climate Solutions’ Business Briefing on the Governor’s Proposed Climate Change Policy. Hosted by Gerding Edlen, the briefing offered a snapshot of the Governor’s legislative agenda for 2009 and beyond, and gave the sustainable business community the opportunity to offer feedback on what needs to happen to move the plans forward.
The Governor’s Climate Change Agenda (the “Agenda”) covers four major areas: greenhouse gas (“GHG”) reductions, renewable energy, sustainable transportation, and energy efficiency. Some highlights follow.
Greenhouse Gas Reductions
There are three major components to the GHG reduction plan: a cap and trade program, an emissions performance standard, and an authorization of the development of Environmental Quality Commission (“EQC”) regulations. Included in the proposed 2009 legislation is the authorization for Oregon’s participation in a regional cap and trade program. Once authorized, the plan calls for a statewide public process to gather input on how best to structure the program. The program design recommendations will be brought back to the 2011 Legislature for approval, with the regional program scheduled to go into effect in 2012.
Renewable Energy
In the renewable energy realm, the Agenda includes a solar feed-in tariff, a beefed-up Business Energy Tax Credit (“BETC”), and initiatives to help the state meet the Governor’s goal of 100% renewable energy for state government. Following Germany’s lead, which has had amazing success with the solar energy incentive program known as a “feed-in tariff”, the Governor’s proposed legislation will create a production incentive pilot program to help pay for the electricity produced by a solar project.
The Governor also plans to create a BETC Energy Fund to offer up-front project funding. As with the Cultural Trust program, this proposal will enable citizens to donate money into the fund and take a tax credit on the donation.
Sustainable Transportation
Thinking about buying a Prius? If you are hoping for a state tax credit, you may want to revise your wish list. The Governor’s plan calls for a shift toward vehicles that produce less carbon and that have not yet permeated the market, such as plug-in hybrids and all-electric vehicles. In addition, the Agenda would authorize the EQC to develop and phase in a low-carbon fuel standard, that will require fuel providers to lower the average carbon intensity of fuels sold by 10%. The plan also includes an Expanded Transportation Options program and the development of a least carbon planning model.
Energy Efficiency
Because energy efficiency investments are such a cost-effective way to reduce both our energy demand and GHG emissions, a large chunk of the Agenda is devoted to this area. The Governor has put forth several proposals, such as the creation of energy performance certificates, the expansion of the BETC for energy efficiency investments, and the authorization of bonding authority for local governments to finance energy efficiency projects.
Proposed legislation seeks to establish a goal of net-zero emissions homes and buildings by 2030. As a start, the legislation seeks to increase energy efficiency in commercial and residential building codes by 30 percent and 15 percent, respectively. The Agenda also calls for expanding the BETC for industrial energy efficiency projects from 35 percent to 50 percent of the total project costs, up to $20 million.
The various pieces of the Governor’s Agenda will add teeth to existing state programs aimed at addressing climate change, and help keep Oregon at the forefront of innovation and entrepreneurship in the sustainable business realm.
