HomeMy WebLinkAboutAgenda Report - December 17, 2008 E-11AGENDA ITEM r
Am CITY OF LODI
COUNCIL COMMUNICATION
M
AGENDA TITLE: Adopt Resolution Authorizing the City Managerto Extendfor One Year (2009)the
Lodi Solar Rebate Program as Developed by the Electric Utility Department Not to
Exceed $825,940 and Making NecessaryAppropriations (EUD)
MEETING DATE: December 17, 2008
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to extend for one
year (calendaryear 2009) the Lodi Solar Rebate Program as
developed by the Electric Utility Department not to exceed $825,940
and making necessary appropriations.
BACKGROUND INFORMATION: 2009 will mark Year Two of a 10-yearstate-mandated program
designed to encourage the installation of photovoltaic (solar)
systems on the rooftops of residential, commercial/industrial and
municipal buildings. 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 solar systems. The official start date of the
CSI was January 1, 2008. The City of Lodi is in full compliance and is now prepared to enter into the
second year of this 10 -year program.
Lodi's annual program budget is $600,000. This figure is based upon the formula provided in the 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 the entire 10 -year
program period is approximately $6 million, while the total municipal utility share of the CSI for the 10
years is $784 million).
Forthe 2008 program year, a total of $374,060 was expended on rebates for installed solar systems
through November. This results in a "carryover" amount to 2009 of $225,940. With $600,000 in new 2009
funds plus the $225,940 in 2008 carryoverfunds, the total amount available for rebates in 2009 will be
$825,940. Of this amount, $800,000 will be earmarked for customer rebates and $25,940 will be expended
on program marketing, customer education and outreach, which are expenses allowed under the state law.
A detailed list of 2009 program requirements and specifics is highlighted on Attachment A.
FISCAL IMPACT: $825,940 (not to exceed). The program is funded via the California Solar
Surcharge, which is an element of the Lodi Electric Utility rate tariffs.
FUNDING: Appro Solar Surcharge revenue into Solar Rebate Account No. 166601.8098
E ns, Budget Manager
George F. Mo ow, Electric Utility Director
Prepared By: Rob Lechner, Manager, Customer Service 8 Programs
APPROVED:
Blair Ki ity Manager
I�Y�l���C�1i•li•C���Z�Z:�:
A RESOLUTION OF THE LODI CITY COUNCIL
EXTENDING FOR ONE YEAR (2009) THE LODI SOLAR
REBATE PROGRAMAND MAKING NECESSARY
APPROPRIATIONS
WHEREAS, the California State Legislature and the Governor of California
enacted a state law, known as the California Solar Initiative (Senate Bill 1), in 2006; and
WHEREAS, the California Solar Initiative requires all electric service providers to
maintain a solar rebate program for ten years, commencing January 1, 2008; and
WHEREAS, the Lodi Solar Rebate
make available $800,000 to residential and
systems on their property; and
Program, now entering its second year, will
non-residential customers for installing solar
WHEREAS, the specific 2009 Lodi Solar Rebate Program criteria and eligibility
are outlined on Attachment A.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
extends for one year (2009) the Lodi Solar Rebate Program to be effective January 1,
2009, and authorizing the Electric Utility Department 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 state law and to
promote customer satisfaction and make necessary appropriations.
Dated: December 17,2008
hereby certify that Resolution No. 2008-246 was passed and adopted by the
City Council cf the City of Lodi in a regular meeting held December 17, 2008, by the
following Vote:
AYES: COUNCIL MEMBERS —Hitchcock, Johnson, Katzakian, Mounce,
and Mayor Hansen
NOES: COUNCIL MEMBERS —None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS— None
DI JOHL
City Clerk
2008-246
Attachment A
2009 Lodi Solar Rebate Program
■ Term: January 1,2009 to December 31,2009
■ Rebatelincentive program budget: $800,000 (for 2009 calendar year program)
■ Of the $800,000 rebate budget, 35% ($280,000) of said funds will be earmarked for
residential PV rebates and 65% ($520,000) of said funds will be earmarked for non-
residential rebates (non-residential customers are defined as commercial, industrial,
non-profit, and municipal); Note: the allocation of the $800,000 in rebate funds was
determined by 2007 calendar year megawatt-hourenergy sales by customer class
■ Rebates only provided for solar systems installed AFTER January 1, 2009
■ Rebates provided after system is installed and confirmed operation al/qualified by Electric
Utility Department
• 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 (note: if the system
is not installed within this 90 day period, the customer must re -apply for a rebate)
■ To reserve funding for a rebate, the customer must submit 1) a signed sales contract
from their chosen solar installation contractor, 2) a completed rebate application and 3)
documentation showing that an energy audit has been performed on their property (for
residential customers only)
■ Rebate for 2009 program year is $2.601watt
■ Rebates are provided on a first-come, first-served basis
• 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 must be installed per LEU engineering specifications, and comply with any state
requirements
■ Should either rate class (residential or non-residential) fail to utilize its share of funding
by October 1, 2009, then customers from another rate class may access those rebate
funds
■ All solar systems must be installed, permitted and confirmed operational no later than
December 1, 2009 to a receive rebate
■ Program funds unused in any one year will be carried forward to the next year or future
years, less $25,000 for administrative costs
• Residential customers must consent to on-site energy audit or must perform an on-line
energy audit, and submit to the utility for record-keeping purposes
■ Non-residential customers are encouraged to conduct an energy audit
■ Customers will relinquish all "renewable energy credits" (REC's) and Green House Gas
(GHG) a I Iowa noes/credits to Lodi Electric Utility
■ All customers must complete and sign an electrical interconnection and payment
agreement before rebate is issued
■ Residential, G-1 and G-2 customers will be paid for electric energy provided to EUD
from the installed solar systems pursuant to the Net Metering and Co -Metering rate
schedules, as appropriate
■ Rates paid to G-3 and larger customers shall be memorialized in bilateral rate
agreements which must be approved by the City Council, provided that such customers
may elect to take service pursuant to the terms of ELID's Co -Metering rate schedule
without further City Council approvals