HomeMy WebLinkAboutAgenda Report - September 19, 2007 I-01 PHAGENDA ITEM T I
ift CITY OF LODI
COUNCIL COMMUNICATION
M
AGENDA TITLE: Public Hearing to Introduce the Lodi Solar Rebate Program, to Become
Effective January 1,2008 (EUD)
MEETING DATE: September 19,2007
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Conduct a Public Hearing to introduce the Lodi Solar Rebafe
Program, which would 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 CSI requires ALL electric service providers in the state to
maintain a rebate program for the installation of eligible* photovoltaic/solar systems 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 its proposed solar rebate program to its governing board prior to the start-up date in January of
2008. The CSI also requires utilities to provide a rebate of no less than $2,80/watt in year one, and then,
the rebate level drops by 7% each year thereafter.
Lodi's program budget per year is $600,000. This figure is based upon the formula provided in the new
state law using total energy sales during the fiscal year 2005-2006, (Lodi's municipal utility percentage
share of the CSI spending obligation is 0.79%; the total mandated rebate dollars for Lodi over 10 years is
approximately $6 million, while the total municipal utility share of the CSI for the 10 years is $784 million).
In order to distribute the available rebate dollars in a fair and equitable manner, the following is being
recommended:
➢ utilize the 2008 calendar year (or year one of the CSI) as a pilot project year; Staff will report back
to Council 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 megawatt-hoursales by
customer class; thus for 2008, this would mean 25% of the $600,000 budget be allocated for
residential rebates (equaling $150,000) and 75% for all non-residential rebates (equaling
$450,000);
➢ provide rebates on a first-come, first-served basis; should any particular customer class NOT utilize
funding by November 1,2008, then customersfrom another rate class may access those rebate
funds; and
➢ other proposed program specifics are as highlighted in attachment'A".
'Eligible solar projects: under the new state law, ALL solar systems must have a minimum warranty of 20 years;
this warranty must cover both the photovoltaic/solar panels as well as the system inverter.
APPROVED:
Blai , City Manager
Conduct a Public Hearing to Introducethe Lodi Solar Rebate Program, to Become Effective
January 1,2008 (EUD)
September 19,2007
Page 2 of 2
FISCAL IMPACT: The Electric Utility will spend up to $600,000 per calendar year to implement the
state -mandated solar rebate program in Lodi.
FUNDING: Electric Utility is proposing a rate surcharge to fund this state -mandated program,
r �
s, Budget Manager
4
Georbe F. Morrow
Electric Utility Director
Prepared By: Rob Lechner, Manager, Customer Service 8 Programs
GFMIRSUIst
Attachment
RESOLUTION NO. 2007-191
A RESOLUTION OF THE LODI CITY COUNCIL
ADOPTING A LODI SOLAR REBATE PROGRAM
TO BECOME EFFECTIVE JANUARY 2008
WHEREAS, the California State Legislature and the Governor of California enacted
Senate Bill (SB) 1, otherwise known as the California Solar Initiative, in the summer of 2006;
and
WHEREAS, SB1 requires all electric service providers to maintain a solar rebate
program commencing January 1, 2008, and continue that program for ten consecutive years;
and
WHEREAS, the Lodi Solar Rebate Program will provide rebates totaling $600,000
annually to residential and commercial customers for installing solar systems on their property;
and
WHEREAS, program criteria and eligibility requirements are outlined on Attachment A.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby approves a
Lodi Solar Rebate Program to become effective January 1, 2008, and authorizes the Electric
Utility Director to implement said program generally in accordance with the concepts contained
in Attachment A and to make programmatic adjustments as necessary to comply with the spirit
of S131 and to promote customer satisfaction.
Dated: September 19, 2007
I hereby certify that Resolution No. 2007-191 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held September 19, 2007, by the following vote:
AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Katzakian, Mounce, and
MayorJohnson
NOES: COUNCIL MEMBERS—None
ABSENT: COUNCIL MEMBERS—None
ABSTAIN: COUNCIL MEMBERS— None
VANDI JOHL
City Clerk
2007-191
ATTACHMENT `A
Lodi Solar Rebate Pilot Project
• Term: January 1, 2008 to December 31, 2017
• Annual rebate/incentive budget: $600,000
• Rebates only provided for systems installed after January 1, 2008
• Rebates provided after system is installed and confirmed operational qualified by EUD
• Customer may apply for a rebate before installation. A rebate application will hold the
customer's place in line for available funds for up to ninety (90) days with staff discretion
to extend for up to 90 days upon customer request.
• Rebate starts @ $2.80/watt (year 1); decreases by 7% 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 EUD engineering specifications
• Should any rate class (residential or non-residential) fail to utilize its share of funding by
November 1, 2008, customers from another rate class may access those rebate funds
• Program funds unused in any one year will be carried forward to future periods
• Residential customers must consent to on-site energy audit
• Non-residential customers are encouraged to conduct on-site energy audit
• Customers will be paid for electric energy provided to EUD from the installed solar
systems pursuantto the Net Metering and Co -Metering rate schedules, as appropriate
• Example ONE: if a customer installs a 100 kW system in year 1 of the program, the total
rebate would be $280.000: the first rebate installmentwould be 575.000. second installment
would be $75,000, third installment would be $75,000, and fourth installment would be
$55,000
*
Example TWO: if a customer installs a 100 kW system in year 8 of the program, the total
rebate would be $167,000 (rebate level decreases by 7% annually; in year 8 of the program,
the rebate level is $1.67/watt); the first rebate installmentwould be $75,000, the second
installment would be $75,000 and the third installment would be $17,000
• Example THREE: if a customer installs a 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 installment would be $75,000 and there would NOT be a third installment ($5,000)
because the program would be concluded
Please immediately confirm receipt
of this fax by calling 3.33-6702
CITY OF LODI
P.O. 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:
SEND AFFIDAVIT AND BILL TO: RANDI JOHL, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, SEPTEMBER 6,2007
ORDERED BY:
NNIFER . PERRIN. CMC
PUTY CITY CLERK
RANDI JOHL
CITY CLERK
DANA R. CHAPMAN
ADMINISTRATIVE CLERK
Fixed #d, E1I NTH
forms\advins doc
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 perjurythat the foregoing is true and correct.
Executed on September 7, 2007, at Lodi, California.
J IFER M PERRIN, CMC
D UTY CITY CLERK
N:\Administradon\Cl.ERKT-omis\DECPOSTEUD.DOC
ORDERED BY:
RANDIJOHL
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:
Randi Johl
City Clerk
Telephone: (209)333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, September 19, 2007, at the
hour of 7.00 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. Ail 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,
2n' 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.
BOrder of the Lodi City Council:
R ohl
City Clerk
Dated: September 5, 2007
D. Stephen Schwabauer
City Attorney
CLERKIPUHHEARSNOTICEStNoteud.doo 9/&07
Electric Utility Department
City Council
September 19,2006
• What's driving this new program? An overview
of Senate Bill (SB) 1
• Highlights of proposed Lodi Solar Rebate Pilot
Program
• Fast facts about installed solar systems
• Next steps
2
Enacted into law August 2006
Fulfills Governor Schwarzenegger's desire to cover one
million rooftops with solar in the next 10 years (3000
megawatts of electricity total)
SB1 delegates full implementation of the law to the
California Energy Commission (CEC)
ALL California electric utilities must have a solar rebate
program in place on 1/1/08
3
• SBI , an unfunded state mandate, allows
utilities to fund rebates via existing cash
resources or a rate surcharge
• Rebates start at $2.80/watt (no less) on 1/1 /08
• Rebates decline by 7% per year after 2008
• Solar systems must have a minimum 10 year
warranty on all parts and labor
2
• Requires residential customers to complete an
energy audit
• Recommends that commercial customers
consider energy efficiency improvements in
conjunction with installing solar system
• Mandates that beginning 1 /1 /11, residential
developments of more than 50 homes make
solar systems an option on their new homes
5
• Rebates wi I I start at $2.80/watt on 1/1 /08
• $600k in total rebate funds available for
2008
• The rebate "pot" be allocated among
customer classes based on 2006 sales
— 25% for residential ($1 50k)
— 75% for non-residential ($450k)
s
• Provides rebates on a first-come, first-served
basis
'0 If one customer class does not utilize rebate
funds by 11/1 /08, then customers from another
rate class may access those "unclaimed" funds
• Rebates provided after system is installed and
confirmed operational
Customer may apply for rebate funds before system is
installed; rebate application will hold the funds for up to
90 days
Maximum rebate per any system is $375k, with a cap
payment of $75k/year until rebate commitment is paid**
Solar system installed per EUD engineering
specifications
** Depending upon the actual
maximum rebate available
below $375k
year system is installed, the
to a customer may be limited
• 1 kilowatt (kW) of solar will generate about 1,500 kilowatt (kWh) of
electricity per year
• Optimal direction for solar panels is 18 degrees south of southwest
(EUD program will allow panels to face due south and west as well)
• Average cost per 1kW of solar is $9000
• Typical home installs a 3kW system
• Federal government provides a one-time $2000 tax credit
• Coupling a solar system with energy efficiency improvements is in
customers best interest
Develop and prepare solar rebate application
Continue tracking CEC rules & regulations updates
regarding the `California Solar Initiative'
Ensure rebate funding mechanism is in place
Conduct another solar fair in January 2008
Prepare marketing/outreach program information
10
Citizens interested in learning more about solar,
or on-line links to solar information, may call:
Lodi Electric Utility at 333-6815
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