Industrial renewable energy incentive deserves support

By CMTA Staff

Capitol Update, May 27, 2011 Share this on FacebookTweet thisEmail this to a friend

CMTA supports AB 864 (Jared Huffman, D-San Rafael) that would give large energy customers incentive to install renewable energy systems, such as wind, to offset their electrical demand.  The bill ensures that the incentives from the self-generation incentives program (SGIP) are available for distributed generation resources up to 10 MW in size and that such incentives are made available for up to the first 5 MW of such generation resources.

The SGIP is an important element of the policy framework supporting direct customer investment in distributed renewable energy generation, and AB 864 may provide industrial businesses an appropriate tool to assist them in achieving their carbon emission goals.

According to the U.S. Energy Information Administration, California industrial electricity rates are 95 percent higher than other western states. Making the SGIP more attractive to commercial and industrial users will encourage the installation of renewable energy, which will “green” the manufacturing process, and hopefully give California manufacturing a more competitive edge.

AB 864 passed the Assembly and will be heard soon in Senate committees.

Read more Energy articles

Capitol updates archive 989898989