[AB 1685]Self-Generation Program Extended through 2008!

Governor Davis signed AB 1685 on Sunday 10-12-03, providing 4 more years of incentives for Distributed Generation.

AB 1685 by Assemblymember Mark Leno (D-San Francisco) extends the California Public Utilities Commission's Self-Generation Incentive Program until December 31, 2008 and would require certain distributed generation projects using fossil fuels to meet specific emissions targets to be eligible for the program.

Bi-partisan Assembly legislators had passed the legislation on September 12 which will now allocate approximately $500 million through 2008 for businesses and local governments to install distributed electricity generation.

Over the past two years, 70% of these funds have funded solar photovoltaic (PV) systems, growing California's commercial-scale solar market by 1000%, says the California Solar Energy Industries Association.

This program is currently administered seperately by each Invester Owned Utility (IOU) - PG&E, SCE, SDG&E and So Cal Gas.

For details on current incentive programs.

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AB 1685- Extension of the CPUC's Self-Generation Incentive Program

BACKGROUND:

The CPUC's Self Generation Incentive Program (SGIP) is the most successful distributed generation (DG) program in the US.

AB 1685 EXTENDS A SUCCESSFUL PROGRAM:

This bill ensures that the ratepayer investment in fossil DG, is only for the most efficient and clean technologies.

Environmental groups, the solar industry, and key gas-fired generator manufacturers and venders support the bill.

This bill does not change CARB's DG emission standards or process in any way.

This legislation does not include program repeals or immediate restrictions contemplated in SB 107 (Bowen).

California Independent Petroleum Association (CIPA) has removed its opposition to the bill as commitments have been made that will address the waste/flare gas issues next session.

The California Chamber of Commerce has also removed its opposition to AB 1685.

SPECIFIC BILL DETAILS:

AB 1685:
· Extends the PUC Self Gen rebate program to 12/31/08;
· Extends ultra-clean and low-emission DG definition to 12/31/08;
· Eligibility for rebate program remains the same for solar, wind, fuel cells and renewable gas DG;
· Eligibility for rebate program is revised for combustion fossil DG in the following manner:
1) Beginning January 1, 2005 must meet NOx emission rate of 0.14 lbs/MWhr (equivalent to the Texas Dg 2005 standard for non-attainment areas)
2) Beginning January 1, 2007 must meet NOx emission rate of 0.07 lbs/MWhr (CARB 2007DG NOx target) AND 60% efficiency (measured as useful energy output divided by fuel input/ based on 100% load).

For complete bill language