379.6
. (a) (1) It is the intent of the Legislature that the
self-generation incentive program increase deployment of distributed
generation and energy storage systems to facilitate the integration
of those resources into the electrical grid, improve efficiency and
reliability of the distribution and transmission system, and reduce
emissions of greenhouse gases, peak demand, and ratepayer costs. It
is the further intent of the Legislature that the commission, in
future proceedings, provide for an equitable distribution of the
costs and benefits of the program.
(2) The commission, in consultation with the Energy Commission,
may authorize the annual collection of not more than the amount
authorized for the self-generation incentive program in the 2008
calendar year, through December 31, 2019. The commission shall
require the administration of the program for distributed energy
resources originally established pursuant to Chapter 329 of the
Statutes of 2000 until January 1, 2021. On January 1, 2021, the
commission shall provide repayment of all unallocated funds collected
pursuant to this section to reduce ratepayer costs.
(3) The commission shall administer solar technologies separately,
pursuant to the California Solar Initiative adopted by the
commission in Decisions 05-12-044 and 06-01-024, as modified by
Article 1 (commencing with Section 2851) of Chapter 9 of Part 2 of
Division 1 of this code and Chapter 8.8 (commencing with Section
25780) of Division 15 of the Public Resources Code.
(b) (1) Eligibility for incentives under the self-generation
incentive program shall be limited to distributed energy resources
that the commission, in consultation with the State Air Resources
Board, determines will achieve reductions in emissions of greenhouse
gases pursuant to the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code).
(2) On or before July 1, 2015, the commission shall update the
factor for avoided greenhouse gas emissions based on the most recent
data available to the State Air Resources Board for greenhouse gas
emissions from electricity sales in the self-generation incentive
program administrators' service areas as well as current estimates of
greenhouse gas emissions over the useful life of the distributed
energy resource, including consideration of the effects of the
California Renewables Portfolio Standard.
(c) Eligibility for the funding of any combustion-operated
distributed generation projects using fossil fuel is subject to all
of the following conditions:
(1) An oxides of nitrogen (NOx) emissions rate standard of 0.07
pounds per megawatthour and a minimum efficiency of 60 percent, or
any other NOx emissions rate and minimum efficiency standard adopted
by the State Air Resources Board. A minimum efficiency of 60 percent
shall be measured as useful energy output divided by fuel input. The
efficiency determination shall be based on 100 percent load.
(2) Combined heat and power units that meet the 60-percent
efficiency standard may take a credit to meet the applicable NOx
emissions standard of 0.07 pounds per megawatthour. Credit shall be
at the rate of one megawatthour for each 3,400,000 British thermal
units (Btus) of heat recovered.
(3) The customer receiving incentives shall adequately maintain
and service the combined heat and power units so that during
operation the system continues to meet or exceed the efficiency and
emissions standards established pursuant to paragraphs (1) and (2).
(4) Notwithstanding paragraph (1), a project that does not meet
the applicable NOx emissions standard is eligible if it meets both of
the following requirements:
(A) The project operates solely on waste gas. The commission shall
require a customer that applies for an incentive pursuant to this
paragraph to provide an affidavit or other form of proof that
specifies that the project shall be operated solely on waste gas.
Incentives awarded pursuant to this paragraph shall be subject to
refund and shall be refunded by the recipient to the extent the
project does not operate on waste gas. As used in this paragraph,
"waste gas" means natural gas that is generated as a byproduct of
petroleum production operations and is not eligible for delivery to
the utility pipeline system.
(B) The air quality management district or air pollution control
district, in issuing a permit to operate the project, determines that
operation of the project will produce an onsite net air emissions
benefit compared to permitted onsite emissions if the project does
not operate. The commission shall require the customer to secure the
permit prior to receiving incentives.
(d) In determining the eligibility for the self-generation
incentive program, minimum system efficiency shall be determined
either by calculating electrical and process heat efficiency as set
forth in Section 216.6, or by calculating overall electrical
efficiency.
(e) Eligibility for incentives under the program shall be limited
to distributed energy resource technologies that the commission
determines meet all of the following requirements:
(1) The distributed energy resource technology shifts onsite
energy use to off-peak time periods or reduces demand from the grid
by offsetting some or all of the customer's onsite energy load,
including, but not limited to, peak electric load.
(2) The distributed energy resource technology is commercially
available.
(3) The distributed energy resource technology safely utilizes the
existing transmission and distribution system.
(4) The distributed energy resource technology improves air
quality by reducing criteria air pollutants.
(f) Recipients of the self-generation incentive program funds
shall provide relevant data to the commission and the State Air
Resources Board, upon request, and shall be subject to onsite
inspection to verify equipment operation and performance, including
capacity, thermal output, and usage to verify criteria air pollutant
and greenhouse gas emissions performance.
(g) In administering the self-generation incentive program, the
commission shall determine a capacity factor for each distributed
generation system energy resource technology in the program.
(h) (1) In administering the self-generation incentive program,
the commission may adjust the amount of rebates and evaluate other
public policy interests, including, but not limited to, ratepayers,
energy efficiency, peak load reduction, load management, and
environmental interests.
(2) The commission shall consider the relative amount and the cost
of greenhouse gas emissions reductions, peak demand reductions,
system reliability benefits, and other measurable factors when
allocating program funds between eligible technologies.
(i) The commission shall ensure that distributed generation
resources are made available in the program for all ratepayers.
(j) In administering the self-generation incentive program, the
commission shall provide an additional incentive of 20 percent from
existing program funds for the installation of eligible distributed
generation resources manufactured in California.
(k) The costs of the program adopted and implemented pursuant to
this section shall not be recovered from customers participating in
the California Alternate Rates for Energy (CARE) program.
(l) The commission shall evaluate the overall success and impact
of the self-generation incentive program based on the following
performance measures:
(1) The amount of reductions of emissions of greenhouse gases.
(2) The amount of reductions of emissions of criteria air
pollutants measured in terms of avoided emissions and reductions of
criteria air pollutants represented by emissions credits secured for
project approval.
(3) The amount of energy reductions measured in energy value.
(4) The amount of reductions of customer peak demand.
(5) The ratio of the electricity generated by distributed energy
resource generation projects receiving incentives from the program to
the electricity capable of being produced by those projects,
commonly known as a capacity factor.
(6) The value to the electrical transmission and distribution
system measured in avoided costs of transmission and distribution
upgrades and replacement.
(7) The ability to improve onsite electricity reliability as
compared to onsite electricity reliability before the self-generation
incentive program technology was placed in service.