Distributed generation bill to be heard in Appropriations

By CMTA Staff

Capitol Update, July 2, 2008 Share this on FacebookTweet thisEmail this to a friend

CMTA supports SB 1012 (Christine Kehoe, D-San Diego) to extend eligibility under the Self-Generation Incentive Program (SGIP) for qualified distributed generation resources (as determined by the California Public Utilities Commission-CPUC) to support state achievement of climate change goals.  The bill will next be heard in the Assembly Appropriations Committee.

Distributed generation technologies in a combined heat and power configuration can improve energy efficiencies through recovery of waste heat from industrial or other processes.  Combined heat and power has been acknowledged by the California Energy Commission and the California Air Resources Board’s Economic and Technology Advancement Advisory Committee as a way to significantly contribute to California’s energy and climate change plan.  This bill will restore those technologies to the SGIP that the CPUC determines meet strict emission standards and will support the state’s plan.

Recent amendments to the bill were taken to ensure fair treatment of all ratepayers with regard to program costs.  Many utility programs are supported by all classes of ratepayers either in distribution charges or in non-bypassable public purpose program charges.  Programs such as SGIP, low-income rate discounts and energy efficiency programs, research and development programs, are just a few.  CMTA opposed a previous version of the bill that would have removed residential ratepayers from the pool of funding sources.  It is inappropriate to assess SGIP program costs to only nonresidential ratepayers when all ratepayers benefit from expenditures that support statewide goals.  

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