HomeMy WebLinkAboutAgenda Report - September 5, 2007 E-18 PHAGENDA rrEM 141
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Set Public Hearingibr September 19,2007 to introduce the LocliSolar Rebate
Program, to become effective January 1,2008 (EUD)
MEETING DATE: September 5,2007
PREPARED BY Electric Witty Director
RECOMMENDED ACTION: Set a Public Hearing for September 19,2007to introducethe Lodi
Solar Rebate Program, to become effective January 1,2008.
BACKGROUND INFORMATION: Senate Bill (SB) 1, otherwise known as the'California Solar
Initiative'or CSI, was enacted into state law in August 2006. In
short, the C -Sl requiresALL electric service providers in the state to
maintain a rebate program for the installation of eligible" photovoltaidsolarsystems on residential,
commercial and industrial customer sites. The official start date of the CSI is January 1,2008, and the
program is mandated for 10 consecutive years. The new law requires utilities, like Lodi Electric Utility, to
present ks proposed solar rebate program to its governing board prior to the start-up date in January of
2008. The C_Sl also requires utilities to provide a rebate of no less than $2.80ANatt in year one, and then,
the rebate level drops by 71/6 each year thereafter.
The statewide municipal utility share of the CSI fbr ten years is $784 million, as established by the legislation.
Lodi's municipal utility percentage share of the CS I is 0. 79%, Mich is appro)dmately $6 million over ten years,
based on energy sales during fiscal year2005-2006, Lodi's obligation to provide rebatesfor the CSI are limitedto
this arnount The proposed Lodi Solar Rebate PWA Programwould budget and limit expendituresfor this program at
$600,000 per year.
I n order to distribute the available rebate dollars in a fair and equitable manner, the following is being
recommended:
> utilize the 2008 calendaryear (oryear one of the CSI) as a pilot project year; staff will report back to
Council in January 2009 on how the first year program has progressed, and recommend any
changes at that time;
> distribute the first year program rebate budget by 2006 calendar year utility megawatthour sales by
customer class; thus for 2008, this would mean 25% of the $600,000 budget be allocated for
residential rebates (equaling $150,GOO) and 75% for all non-residential rebates (equaling
$450,000);
)o- please see attachment ' Afor the proposed program specifics; and
> provide rebates on a first-come, first-served basis; should any particular customer class NOT utilize
funding by November 1,2008, then customers from another rate class may access those rebate
funds.
APPROVED: e�a� ----)
Blairl, Ni, City Manager
Set Public Hearing for September 19,2007 to introducethe Lodi Soler Rebate Program, to
become effective January 1,2008 (EUD)
September 5,2007
Page 2 of 2
*Eligible solar projects: under the new state law, ALL solar systemsmust have a minimum warranty cf 20 years;
this warranty must cover both the photovoltaic/solar panels as well as the system inverter.
FISCAL IMPACT: The Electric Utility will spend up to $600,000 per calendar year to implementthe
state -mandated solar rebate program in Lodi.
FUNDING: Electric Utility is proposing a rate surcharge to fund this state -mandated program
without,i,4aqt on any other programs.
clearbo F, WWII*
Electric Utility Director
Prepared By: Rob Lechner. Manager, Customer Service & Programs
GFWRSUist
Attachment
ATTACHIVIENT'A
Lodi Solar Rebate Pilot Proiect
• Effectivedate: January 1,2008to December3l,2017
• Annual rebatelincentive budget: $600,000
• Rebatesonly providedfor systems installedAIFTER January 1, 2008 forward
• Rebates Provided after systern is installed and confim*�ed operational by Electric Utility
Department
• Customer may apply for a rebate before installation. A rebate application will hold the
customers place in linefor availablefunds for upto sixty (60) daysAFrER receiptof
rebate application ( isystem is NOT installed, approved and operational within the 60
day pedod, customer must re -apply for rebatefunding)
• Rebate starts @ $2.80twatt (year 1); decreases by 71/6 each year after
• Maximum rebate is up to $375,000 per system, with a cap payment of $75,000 per
customer per year until entire rebate commitment is paid"
• Panels installed per LEU engineering specifications
• Should any rate class (residential or non-residential) fail to utilizefunding by November
1, 2008, then customers from another rate class may access those rebate funds
9 RoskkwWW Q000aws":
- customermustconsanftoon-siteenergyawlit
. customer is encouraged to conduct on-site energy audit
" Example ONE: if a aistorner installsa 100kW system inyear I & ft program, the total
rebate would be $280.000; the first rebate installmentwould be $75,000, second installment
would be $75,ODO, third installment would be $75,000, and fourth installment woulld be
$55,000
Example TWO. if a customer installs a 100 kW system in year 8 of the program, the total
rebate vvould be $167,D00 (rebate leveldecreases by 7% annually; in year 8 cf the program,
the rebate level is $1.67/waft); the first rebate installmentwould be $75,000, the second
installmentwould be $75,000 and the third instal I mentwould be $17.000
Example THREE: if a customer installsa 100 KW system in year 9 of the program, the
total rebate would be $155,000 (rebate level decreases by 7% annually; in year 9 of the
program, the rebate level is $1.55/watt); the first rebate installment would be $75,000, the
second instal I mentwou Id be $75,000 and there would NOT be a third installment ($5.000)
because the program would be concluded
" Systems largerthan 10kW do not qualify for net metedng; these systems will be charged
using co-metedng
X 61;
-
Fo
Please immediately confirm receipt
of this fax b calling 333-6 702
y
CITY OF LODI
P. 0. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT PUBLIC HEARING TO CONSIDER INTRODUCTION OF AN ORDINANCE
REGARDING THE LODI SOLAR REBATE PROGRAM TO BECOME
EFFECTIVE JANUARY 1,2008
PUBLISH DATE: SATURDAY, SEPTEMBER 8,2007
TEAR SHEETS WANTED: Three (3) 121ease
SEND AFFIDAVIT AND BILL TO: RAND] JOHL, CITY CLERK
City d Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, SEPTEMBER 6,2007
ORDERED BY:
J IFER MI)PERRIN. CMC
D UTY CITY CLERK
forms\advins.doc
RANDIJOHL
CITY CLERK
DANA R. CHAPMAN
ADMINISTRATIVE CLERK
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER INTRODUCTION OF AN ORDINANCE
REGARDING THE LODI SOLAR REBATE PROGRAM
TO BECOME EFFECTIVE JANUARY 1,2008
On Friday, September 7, 2007, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider introduction of an ordinance regarding the Lodi
Solar Rebate Program to become effective January 1, 2008 (attached and marked as
ExhibitA) was posted at the following locations:
Lodi Public Library
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
I declare under penalty of perjury that the foregoing is true and correct.
Executed on September 7, 2007, at Lodi, California.
Jy*IFER PERRIN. CMC
DE-PUTY CITY CLERK'
N:\Adrriinistration\CLERKTorms\DECPOSTEUD.DOC
ORDERED BY:
RANDI JOHL
CITY CLERK
DANA R. CHAPMAN
ADMINISTRATIVE CLERK
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: September 19,2007
Time: 7:00 p.m.
For information regarding this notice please contact:
RandiJohl
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, September 19, 2007, at the
hour of TOO p.m., or as soon thereafter as the matter may be heard, the City
Council will conduct a public hearing at the Carnegie Forum, 305 West Pine
Street, Lodi, to consider the following matter:
a) Introduction of an ordinance regarding the Lodi Solar Rebate Program to
become effective January 1, 2008
Information regarding this item may be obtained in the Electric Utility
Department, 1331 South Ham Lane, Lodi, (209) 333-6762. All interested
persons are invited to present their views and comments on this matter. Written
statements may be filed with the City Clerk, City Hall, 221 West Pine Street,
2 nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral
statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only
those issues you or someone else raised at the public hearing described in this
notice or in written correspondence delivered to the City Clerk, 221 West Pine
Street, at or prior to the close of the public hearing.
By Order of the Lodi City Council:
ohJ
City Clerk
Dated: September 5, 2007
D. Stephen Schwabauer
City Attorney
CLERMPUBHEAR\r4OTiCES\t4oteud,doc 916107