COM/CR6/jt2 PROPOSED DECISION Agenda ID #15563 (Rev. 1) Quasilegislative 4/6/2017 Item #29 Decision PROPOSED DECISION OF COMMISSIONER RECHTSCHAFFEN (Mailed 3/6/2017) BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the SelfGeneration Incentive Program and Other Distributed Generation Issues. Rulemaking 1211005 (Filed November 8, 2012) DECISION REVISING THE SELFGENERATION INCENTIVE PROGRAM PURSUANT TO ASSEMBLY BILL 1637 AND GRANTING THE PETITION FOR MODIFICATION OF DECISION 1606055 BY THE CALIFORNIA SOLAR ENERGY INDUSTRY ASSOCIATION
Renewable Projects in the Generation Category Turning to the renewable generation category, none of the comments offer a compelling argument to adopt anything different than the approximately equal distribution proposed in the ACR. Therefore, the AB 1637 funds allocated to the renewable generation category will be distributed in the following manner: Step 1 (34%), Step 2 (33%) and Step 3 (33%). Accordingly, the Program Administrators, PG&E, SCE, SoCalGas, and CSE on behalf of SDG&E, shall implement the AB 1637 incentive funding distribution to incentive steps for the energy storage and renewable generation categories, as set forth above and make any other changes needed to the SGIP handbook as a result of this decision by submitting a Tier 2 advice letter within 10 days of the effective date of this decision. Table 4: Nominal Increase to Incentive Budget for Energy Storage and Renewables Generation Categories Incentive Category Step 1 Step 2 Step 3 Step 4 Step 5 Energy Storage > 10kW (preAB 1637) $34,446,038 $34,446,038 $34,446,038 $34,446,038 $34,446,038 Energy Storage > 10kW (AB 1637 funds) $0 (no increase) $60,231,357 $58,459,847 $58,459,847 $0 (no increase) Total Funds for Energy Storage > 10kW $34,446,038 $94,677,395 $92,905,884 $92,905,884 $34,446,038
Table 5: D.1606055 Incentive Structure for NonResidential Energy Storage ($/Wh) Slow Adoption Fast Adoption No ITC With ITC ITC Pct of NonITC No ITC With ITC ITC Pct of NonITC Incentive Level Step 1 Step 2 Step 3 Step 4 Step 5 0.50 0.45 0.40 0.35 0.30 0.36 0.31 0.26 0.21 0.16 72% 69% 65% 60% 53% 0.50 0.40 0.30 0.20 0.10 0.36 0.26 0.16 0.06 72% 65% 53% 30% 0% Pct Decline in Incentive Level Step 1 Step 2 Step 3 Step 4 Step 5 n/a 10% 11% 13% 14% n/a 14% 16% 19% 24% n/a 20% 25% 33% 50% n/a 28% 38% 63% 100% We find that CalSEIA’s explanation of the current incentive structure for nonresidential energy storage demonstrates a flaw in the current methodology. To address the problem, CalSEIA recommends that the nonITC/ITC incentive adjustment methodology for each step be based on the percentage difference at Step 1, i.e., 72%. Five parties filed responses to the Petition. CESA, SolarCity and CSE support the changes recommended by the Petition. The Joint IOUs oppose the Petition. ORA supports the Petition but recommends a different solution. The Joint IOUs’ opposition to the Petition centers on their concerns that granting CalSEIA’s Petition would contravene the Commission’s determination in D.1606055 that the value of the ITC is $0.14/Wh for all projects at all incentive levels. D.1606055 did not make such a finding. In D.1606055, we determined the