SECTIONS 2851-2853 - California Statutes

PUBLIC UTILITIES CODE

SECTION 2851-2853

2851. (a) In implementing the California Solar Initiative, the
commission shall do all of the following:
(1) The commission shall authorize the award of monetary
incentives for up to the first megawatt of alternating current
generated by solar energy systems that meet the eligibility criteria
established by the State Energy Resources Conservation and
Development Commission pursuant to Chapter 8.8 (commencing with
Section 25780) of Division 15 of the Public Resources Code. The
commission shall determine the eligibility of a solar energy system,
as defined in Section 25781 of the Public Resources Code, to receive
monetary incentives until the time the State Energy Resources
Conservation and Development Commission establishes eligibility
criteria pursuant to Section 25782. Monetary incentives shall not be
awarded for solar energy systems that do not meet the eligibility
criteria. The incentive level authorized by the commission shall
decline each year following implementation of the California Solar
Initiative, at a rate of no less than an average of 7 percent per
year, and shall be zero as of December 31, 2016. The commission shall
adopt and publish a schedule of declining incentive levels no less
than 30 days in advance of the first decline in incentive levels. The
commission may develop incentives based upon the output of
electricity from the system, provided those incentives are consistent
with the declining incentive levels of this paragraph and the
incentives apply to only the first megawatt of electricity generated
by the system.
(2) The commission shall adopt a performance-based incentive
program so that by January 1, 2008, 100 percent of incentives for
solar energy systems of 100 kilowatts or greater and at least 50
percent of incentives for solar energy systems of 30 kilowatts or
greater are earned based on the actual electrical output of the solar
energy systems. The commission shall encourage, and may require,
performance-based incentives for solar energy systems of less than 30
kilowatts. Performance-based incentives shall decline at a rate of
no less than an average of 7 percent per year. In developing the
performance-based incentives, the commission may:
(A) Apply performance-based incentives only to customer classes
designated by the commission.
(B) Design the performance-based incentives so that customers may
receive a higher level of incentives than under incentives based on
installed electrical capacity.
(C) Develop financing options that help offset the installation
costs of the solar energy system, provided that this financing is
ultimately repaid in full by the consumer or through the application
of the performance-based rebates.
(3) By January 1, 2008, the commission, in consultation with the
State Energy Resources Conservation and Development Commission, shall
require reasonable and cost-effective energy efficiency improvements
in existing buildings as a condition of providing incentives for
eligible solar energy systems, with appropriate exemptions or
limitations to accommodate the limited financial resources of
low-income residential housing.
(4) Notwithstanding subdivision (g) of Section 2827, the
commission may develop a time-variant tariff that creates the maximum
incentive for ratepayers to install solar energy systems so that the
system's peak electricity production coincides with California's
peak electricity demands and that assures that ratepayers receive due
value for their contribution to the purchase of solar energy systems
and customers with solar energy systems continue to have an
incentive to use electricity efficiently. In developing the
time-variant tariff, the commission may exclude customers
participating in the tariff from the rate cap for residential
customers for existing baseline quantities or usage by those
customers of up to 130 percent of existing baseline quantities, as
required by Section 80110 of the Water Code. Nothing in this
paragraph authorizes the commission to require time-variant pricing
for ratepayers without a solar energy system.
(b) Notwithstanding subdivision (a), in implementing the
California Solar Initiative, the commission may authorize the award
of monetary incentives for solar thermal and solar water heating
devices, in a total amount up to one hundred million eight hundred
thousand dollars ($100,800,000).
(c) (1) In implementing the California Solar Initiative, the
commission shall not allocate more than fifty million dollars
($50,000,000) to research, development, and demonstration that
explores solar technologies and other distributed generation
technologies that employ or could employ solar energy for generation
or storage of electricity or to offset natural gas usage. Any program
that allocates additional moneys to research, development, and
demonstration shall be developed in collaboration with the Energy
Commission to ensure there is no duplication of efforts, and adopted
by the commission through a rulemaking or other appropriate public
proceeding. Any grant awarded by the commission for research,
development, and demonstration shall be approved by the full
commission at a public meeting. This subdivision does not prohibit
the commission from continuing to allocate moneys to research,
development, and demonstration pursuant to the self-generation
incentive program for distributed generation resources originally
established pursuant to Chapter 329 of the Statutes of 2000, as
modified pursuant to Section 379.6.
(2) The Legislature finds and declares that a program that
provides a stable source of monetary incentives for eligible solar
energy systems will encourage private investment sufficient to make
solar technologies cost effective.
(3) On or before June 30, 2009, and by June 30th of every year
thereafter, the commission shall submit to the Legislature an
assessment of the success of the California Solar Initiative program.
That assessment shall include the number of residential and
commercial sites that have installed solar thermal devices for which
an award was made pursuant to subdivision (b) and the dollar value of
the award, the number of residential and commercial sites that have
installed solar energy systems, the electrical generating capacity of
the installed solar energy systems, the cost of the program, total
electrical system benefits, including the effect on electrical
service rates, environmental benefits, how the program affects the
operation and reliability of the electrical grid, how the program has
affected peak demand for electricity, the progress made toward
reaching the goals of the program, whether the program is on schedule
to meet the program goals, and recommendations for improving the
program to meet its goals. If the commission allocates additional
moneys to research, development, and demonstration that explores
solar technologies and other distributed generation technologies
pursuant to paragraph (1), the commission shall include in the
assessment submitted to the Legislature, a description of the
program, a summary of each award made or project funded pursuant to
the program, including the intended purposes to be achieved by the
particular award or project, and the results of each award or
project.
(d) (1) The commission shall not impose any charge upon the
consumption of natural gas, or upon natural gas ratepayers, to fund
the California Solar Initiative.
(2) Notwithstanding any other provision of law, any charge imposed
to fund the program adopted and implemented pursuant to this section
shall be imposed upon all customers not participating in the
California Alternate Rates for Energy (CARE) or family electric rate
assistance (FERA) programs as provided in paragraph (2), including
those residential customers subject to the rate cap required by
Section 80110 of the Water Code for existing baseline quantities or
usage up to 130 percent of existing baseline quantities of
electricity.
(3) The costs of the program adopted and implemented pursuant to
this section may not be recovered from customers participating in the
California Alternate Rates for Energy or CARE program established
pursuant to Section 739.1, except to the extent that program costs
are recovered out of the nonbypassable system benefits charge
authorized pursuant to Section 399.8.
(e) In implementing the California Solar Initiative, the
commission shall ensure that the total cost over the duration of the
program does not exceed three billion three hundred fifty million
eight hundred thousand dollars ($3,350,800,000). The financial
components of the California Solar Initiative shall consist of the
following:
(1) Programs under the supervision of the commission funded by
charges collected from customers of San Diego Gas and Electric
Company, Southern California Edison Company, and Pacific Gas and
Electric Company. The total cost over the duration of these programs
shall not exceed two billion one hundred sixty-six million eight
hundred thousand dollars ($2,166,800,000) and includes moneys
collected directly into a tracking account for support of the
California Solar Initiative and moneys collected into other accounts
that are used to further the goals of the California Solar
Initiative.
(2) Programs adopted, implemented, and financed in the amount of
seven hundred eighty-four million dollars ($784,000,000), by charges
collected by local publicly owned electric utilities pursuant to
Section 387.5. Nothing in this subdivision shall give the commission
power and jurisdiction with respect to a local publicly owned
electric utility or its customers.
(3) Programs for the installation of solar energy systems on new
construction, administered by the State Energy Resources Conservation
and Development Commission pursuant to Chapter 8.6 (commencing with
Section 25740) of Division 15 of the Public Resources Code, and
funded by nonbypassable charges in the amount of four hundred million
dollars ($400,000,000), collected from customers of San Diego Gas
and Electric Company, Southern California Edison Company, and Pacific
Gas and Electric Company pursuant to Article 15 (commencing with
Section 399).

2851.5. (a) A school district or community college district may
request an extension of a reservation expiration date for monetary
incentives for a solar energy system. The commission may grant a
maximum of three extensions of 180 calendar days for each extension.
(b) An extension request pursuant to subdivision (a) shall be made
in writing, submitted to the program administrators, and shall
include a written explanation of the need for the extension and the
amount of additional time needed. In describing the need for the time
extension request, the school district or community college district
shall provide information on the circumstances, that are beyond the
control of the district, that prevent the solar energy system from
being installed as previously described in the initial reservation
request. A failure to submit the incentive claim form package by the
original or extended reservation expiration date shall result in the
cancellation of the request.
(c) An approval of a request for a change in the reservation
expiration date for monetary incentives for a solar energy system
shall not modify any other condition of a reservation for incentives.

2852. (a) As used in this section, the following terms have the
following meanings:
(1) "Affordable housing cost," "affordable rent," and "lower
income households" have the same meanings as in those set forth in
Chapter 2 (commencing with Section 50050) of Part 1 of Division 31 of
the Health and Safety Code.
(2) "California Solar Initiative" means the program providing
ratepayer funded incentives for eligible solar energy systems adopted
by the Public Utilities Commission in Decision 05-12-044 and
Decision 06-01-024.
(3) "Low-income residential housing" means any of the following:
(A) A multifamily residential complex financed with low-income
housing tax credits, tax-exempt mortgage revenue bonds, general
obligation bonds, or local, state, or federal loans or grants, and
for which either of the following applies:
(i) The rents of the occupants who are lower income households do
not exceed those prescribed by deed restrictions or regulatory
agreements pursuant to the terms of the financing or financial
assistance.
(ii) The affordable units have been or will be initially sold at
an affordable housing cost to a lower income household and those
units are subject to a resale restriction or equity sharing agreement
pursuant to the terms of the financing or financial assistance.
(B) A multifamily residential complex in which at least 20 percent
of the total housing units are sold or rented to lower income
households and either of the following applies:
(i) The rental housing units targeted for lower income households
are subject to a deed restriction or affordability covenant with a
public entity or nonprofit housing provider organized under Section
501(c)(3) of the Internal Revenue Code that has as its stated purpose
in its articles of incorporation on file with the office of the
Secretary of State to provide affordable housing to lower income
households that ensures that the units will be available at an
affordable rent for a period of at least 30 years.
(ii) The housing units have been or will be initially sold at an
affordable cost to a lower income household and those units are
subject to a resale restriction or equity sharing agreement, for
which the homeowner does not receive a greater share of equity than
described in paragraph (2) of subdivision (c) of Section 65915 of the
Government Code, with a public entity or nonprofit housing provider
organized under Section 501(c)(3) of the Internal Revenue Code that
has as its stated purpose in its articles of incorporation on file
with the office of the Secretary of State to provide affordable
housing to lower income households.
(C) An individual residence sold at an affordable housing cost to
a lower income household that is subject to a resale restriction or
equity sharing agreement, for which the homeowner does not receive a
greater share of equity than described in paragraph (2) of
subdivision (c) of Section 65915 of the Government Code, with a
public entity or nonprofit housing provider organized under Section
501(c)(3) of the Internal Revenue Code that has as its stated purpose
in its articles of incorporation on file with the office of the
Secretary of State to provide affordable housing to lower income
households.
(4) "Solar energy system" means a solar energy device that has the
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity, that produces at
least one kilowatt, and produces not more than five megawatts,
alternating current rated peak electricity, and that meets or exceeds
the eligibility criteria established by the commission or the State
Energy Resources Conservation and Development Commission.
(b) In establishing the California Solar Initiative, no moneys
shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs.
(c) (1) The commission shall ensure that not less than 10 percent
of the funds for the California Solar Initiative are utilized for the
installation of solar energy systems on low-income residential
housing. Notwithstanding any other law, the commission may modify the
monetary incentives made available pursuant to the California Solar
Initiative to accommodate the limited financial resources of
low-income residential housing.
(2) The commission may incorporate a revolving loan or loan
guarantee program into the California Solar Initiative for low-income
residential housing. All loans outstanding as of January 1, 2016,
shall continue to be repaid consistent with the terms and conditions
of the program adopted and implemented by the commission pursuant to
this subdivision, until repaid in full.
(3) All moneys set aside for the purpose of funding the
installation of solar energy systems on low-income residential
housing that are unexpended and unencumbered on January 1, 2016, and
all moneys thereafter repaid pursuant to paragraph (2), except to the
extent those moneys are encumbered pursuant to this section, shall
be utilized to augment existing cost-effective energy efficiency
measures in low-income residential housing that benefit ratepayers.

2853. (a) For purposes of this section, "eligible state solar
energy system" means a solar energy system that meets all of the
following requirements:
(1) Is an eligible renewable energy resource pursuant to Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
(2) Meets the eligibility criteria established by the Energy
Commission pursuant to Chapter 8.8 (commencing with Section 25780) of
Division 15 of the Public Resources Code.
(3) Is owned by, operated by, or on property under the control of,
a state agency. For these purposes, premises that are leased by a
state agency are under the control of the state agency.
(4) Is sized to generate electricity for use on the premises and
the state agency does not sell electricity exported to the electrical
grid to a third party.
(b) In addition to an award of monetary incentives for the first
megawatt pursuant to Section 2851, the commission shall authorize the
award of monetary incentives for alternating current generated by an
eligible state solar energy system above the first megawatt, up to
five megawatts of alternating current.
(c) The commission shall limit the monetary incentives awarded
pursuant to subdivision (b) to an aggregate of 26 megawatts of
alternating current.
(d) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.