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HomeMy WebLinkAbout17 Year End Solar Program Potocols for SB-1Agenda Item # 17 TRUCKEE DONNER Public Utility District ------- ACTION To: From: Date: Board of Directors Kathleen Neus January 20, 2016 Subject: Direct Staff to Implement Final Year E nd and Solar Program Protocols for SB-1 1. WHY THIS MATTE R IS BE FOR E TH E BOARD The Board adopted the District's solar program in 2007 . This State mandated program ends December 31 ; 2016 and protocols are needed for the final year end. 2. HISTORY As part of the State's Million Solar Roof Program (SB-1 ), publicly owned electric utilities were required to adopt, implement and finance a solar initiative program by January 1, 2008 . Additionally , SB -1 established specific requirements for local programs, including system incentives, mandates that the rebate decrease by no less than 7% per year and a minimum rebate amount. The Board approved the District's Solar Program in November of 2007. The District was required to use rate payer funds and expend $1,773,408 over the life of the program. This dollar amount was set by the California State Legislature based upon the District's percentage of the total statewide load served by all local publicly owned utilities within California. The Federal Government had extended the tax credit in 2009 to coincide with the State of California's Million Solar Roof Program. 2008 the tax credit was $2,000 and was changed to 30% of the cost of the project for years 2009 through 2016. In December of 2015 in order to keep interest in solar installations active the Federal Government extended the Federal Tax Credit for solar as listed below: 30% for systems placed in service before 12/31/2019 26% for systems placed in service after 12/31/2019 and before 01/01/2021 22% for systems placed in service after 12/31/2020 and before 01/01/2022 3. NEW INFORMATION The State mandated solar program ends December 31, 2016. There has been no mention and it is unlikely that the State Legislature will extend the program as it is written today. As the District is on a calendar year, appl ications received for solar have until Page 1 of 5 December 31 51 of the year the application was submitted to complete their project; this includes installation and final by the Town Building Inspector. Every year there have always been a few that have not installed solar on their residence or business. Included with this staff report is a table of the number of applications received, systems installed and the rebate amounts for 2008-2015 (Attachment 1 ). Additionally, the District has no further requirement or need today for additional renewable energy. The District's current Renewable Portfolio Standard today sits at 51 %. The District's Power Content Label is attached to this document (Attachment 2). For the final year of the program, staff has had discussions with a few solar installers on how best to come up with a plan that triggers those who don't install in a timely fashion allowing others to move up the list without waiting until the end of the year. Some suggestions for the end of year protocols are listed below. All applicants shall be required to sign, date and submit a form acknowledging the following protocols: June 1, 2016 -Applicants must have a Building Permit for solar issued by the Town of Truckee. August 31, 2016 -Solar must be installed and finaled by the Town of Truckee Building Department. If not the applicant(s) are removed from the list and the next in line is moved up. October 31, 2016 -Those moved up the list and the solar must be installed and finaled by the Town of Truckee. If not the applicant(s) are removed from the list and the next in line is moved up. December 31, 2016 -Applicants the solar must be installed and finaled by the Town of Truckee. The program ends December 31, 2016 as per the SB-1 mandate whether all the money has been spent or not. It is anticipated that all required monies ( $1,773,408) will be spent in 2016. 4. FISCAL IMPACT The Board approved a customer charge at the November 19, 2007 Board Meeting to fund the District's Solar Program. The customer charge is as follows: Residential Small Commercial Medium Commercial Large Commercial $ 0.60 per month $ 5.00 per month $10.00 per month $15.00 per month Funds were to be collected over a 10 year period, the customer charge will continue to be collected through 2017. Page 2 of 5 5. RECOMMENDATION It is recommended that the Board authorize the following protocols for the final year end of the District's solar program. All applicants shall be required to sign, date and submit a form acknowledging the following protocols: June 1, 2016 -Applicants must have a Building Permit for solar issued by the Town of Truckee. August 31, 2016 -Solar must be installed and finaled by the Town of Truckee Building Department. If not the applicant(s) are removed from the list and the next in line is moved up. October 31, 2016 -Those moved up the list and the solar must be installed and finaled by the Town of Truckee. If not the applicant(s) are removed from the list and the next in line is moved up. December 31, 2016 -Applicants the solar must be installed and finaled by the Town of Truckee. Michael D. Holley General Manager Page 3 of 5 Attachment 1 SOLAR INFORMATION 2008-2015 * Applications Installations Kilowatts Rebate Dollars Installed 2008 16 10 40 $141,000 2009 15 6 128 $115,000 2010 21 8 27 $97,000 2011 15 15 56 $144,000 2012 9 8 26 $63,000 2013 22 14 67 $126,000 2014 38 34 124 $294,000 2015 48 37 160 $314,000 TOTALS 184 133 628 $1,294,000 *Rebate dollars only -does not include wages or meters Page 4 of 5 POWER CONTENT LABEL ENERGY RESOURCES 2014 TRUCKEE DONNER PUD* (Actual) 2014 CA POWER MIX*** (For comparison) Eligible Renewable 51% 20% --Biomass & waste 17% --Geothermal 0% --Small hydroelectric 2% --Solar 0% --Wind 31% Coal 0% 6% Large Hydroelectric 0% 6% Natural Gas 7% 45% Nuclear 0% 9% Other 0% 0% Unspecified sources of power** 42% 14% TOTAL 100% 100% * 0% Of Truckee Donner PUD is specifically purchased from individual suppliers. ** "Unspecified sources of power" means electricity from transactions that are not traceable to specific generation sources. 3% 4% 1% 4% 8% *** Percentages are estimated annually by the California Energy Commission based on the electricity sold to California consumers during the previous year . For specific information about this electricity product, contact Truckee Donner PUD. For general information about the Power Content Label , contact the California Energy Commission at 1-800-555-7794 or www .energy.ca.gov/consumer Attachment 2 Page 5 of 5