California may lead the US to more renewable energy....

Today’s post: Wednesday, 2-25-2009

California has more solar energy potential than most of the states in the United States although this is less true of wind energy.

But, of more importance, significant innovations in California are often gradually or even rapidly adopted throughout the rest of the United States.

So, for those two reasons, what California does to bring more renewable energy online not only benefits people in California, it will likely also begin to benefit people throughout the United States.

Similarly, significant innovations in California and the rest of the United States are often copied elsewhere in the world.

As you know if you have been reading this post or know renewable energy well, Germany is now the world leader in building new renewable energy. They have developed and are still using an innovation called feed-in tariffs that has enabled them to install HALF the world’s solar energy with only a tiny part of the world’s solar energy potential.

So this method works incredibly well. And, it’s still working. Just last year Germany added about 10 times as much new solar as all of California.: “In 2008, Germany added 1.5 gigawatts of solar while California added less than 160 megawatts -- a factor of nearly 10 times even though 160 megawatts, from the RPS and CSI programs combined, set a record for California!“

This method is called the Feed-in Tariff. No new taxes or government money need be spent or authorized as the new renewable energy is paid for as the renewable energy comes online by gradual and relatively small increases in the utility rates.

Despite its incredibly effective success in Germany, it has NOT been widely copied or emulated in the United States.

THAT may be about to come to a screeching halt.

A man called Craig Lewis is working to have a very carefully worked out feed-in tariff used soon throughout California.

Anything you can do to help him succeed from lobbying your local California representative to praying for his success, please do it.

This is because if it is enacted and used in California in its present form, it will be used even more in California; AND it will be used throughout the United States and in more of the world than now uses feed-in tariffs.

This should be front page news in every newspaper in California.

As you may know or have read here, it is critical that we bring very large amounts of renewable energy online in just the next two or three decades for many reasons. Having a robust economy is one of them. Economies run on energy; and fossil fuels are beginning to be and already have been too dangerous to use; they will keep getting bid up in price if there is no large scale competition for them; and they will run out relatively suddenly at some point if we have no alternatives in place which will cause world wide economic collapse.

So, if California adopts this program for feed-in tariffs, it has huge and dramatically positive implications.

Even better, by focusing on relatively small installations near existing electrical transmission hubs, the renewable energy will come online quite soon!

That’s equally important. But once we do this feed-in tariff program, we need to add a longer acting feed-in tariff to develop larger installations and those that will go into areas that have very large solar potential but do not as yet have transmission lines in place.

Craig sent me this.:

“The Renewable Energy & Economic Stimulus Act of 2009

SUMMARY

REESA will direct the California Public Utilities Commission (CPUC) to follow the December 2008 recommendation by the California Energy Commission (CEC) to immediately implement a comprehensive, cost-based Feed-In Tariff (FIT) in California. The REESA FIT creates a highly effective regulatory tool for bringing renewable energy online in a timely manner. The frustratingly slow progress of the Renewable Portfolio Standard (RPS) program, and the limited nature of the California Solar Initiative (CSI) and the Small Generator Incentive (SGIP) Program, require that a far more effective solution is implemented for achieving California's current RPS mandate of 20% of delivered electricity by 2010, and the goal of 33% renewables by 2020, which is likely to become law this year. The RPS program is many years behind schedule due to many factors that include the typical 10-year dependency that large projects have on significant transmission improvements. The REESA FIT is a simple and streamlined program that will bring significant levels of renewable energy capacity online in a timely manner -- capacity that will not require major transmission improvements. The economic benefits of the REESA FIT include substantial in-state job creation, with all REESA FIT facilities being built within the State of California, providing a vital boost for the many California-based, renewable energy and clean-tech companies.


BACKGROUND

For economic, energy security, public health, and environmental reasons, California desires to be a leader in transitioning from fossil fuel energy sources to renewables. Unfortunately, California's RPS program is many years behind schedule, and the CSI and SGIP programs are too limited in scope to bring significant levels of renewable energy online. At the same time, many countries around the world have introduced effective FIT programs that are bringing renewables online in levels that are orders of magnitude greater than California has achieved over the last eight years under the RPS program. This is true despite the fact that California has far better solar, wind, and other renewable energy resources. For example, while Germany has the solar intensity of lower Alaska, it has consistently added far more solar capacity than California: In 2008, Germany added 1.5 gigawatts of solar while California added less than 160 megawatts -- a factor of nearly 10 times even though 160 megawatts, from the RPS and CSI programs combined, set a record for California!

FIT programs have now been implemented in dozens of countries around the world, and have proven to be the most effective policy mechanism for bringing renewable energy online in a timely manner.

EXISTING LAW

California currently has three programs for attracting renewable energy generation: the RPS program, which is focused on attracting large central station renewables, and the CSI and SGIP programs, both of which facilitate relatively small, behind-the-retail-meter installations that rely on net metering benefits combined with incentives.

The REESA FIT is designed so that it will not interfere with any of the existing programs. Rather, it fills a critical programmatic gap by unleashing the tremendous potential of the Wholesale Distributed Generation (WDG) market segment: the 20 megawatt-and-under market segment in which projects are interconnected to the distribution grid. REESA FIT facilities will have dedicated meters that measure all energy generated, and as such, the energy generated will not offset any onsite load, be net metered, nor be eligible for CSI or SGIP incentives. Instead all the energy will be sold to utilities, bundled with the renewable energy attributes, including the Renewable Energy Certificates (RECs), which will count toward utilities' RPS requirements.

THIS BILL

The REESA FIT will direct the CPUC to implement a comprehensive FIT with rates that are not limited by the Market Price Referent (MPR), which has proven to be a contentious pricing construct used in the RPS program. Features of the REESA FIT include the following:

" Applies to all RPS-eligible technologies in projects sized 20 megawatts and under.
" Sets technology-differentiated rates that are based on typical manufacturing costs, typical renewable resource intensities, and profit margins commensurate with those allowed for utility-owned generation.
" Sets an upper limit on FIT rates, assuring that California ratepayers are well protected.
" Follows a simple and streamlined Standard Must-Take Contract (SMTC) that is developed by the CPUC.
" Applies to all California utilities, investor-owned (IOUs) and publicly-owned (POUs), but provides more discretion to POUs in developing their program.

California's RPS program is many years behind schedule, and the CSI and SGIP programs are too limited in scope to bring significant levels of renewable energy online. At the same time, many countries around the world have introduced effective FIT programs that are bringing renewables online in levels that are orders of magnitude greater than California has achieved over the last eight years under the RPS program. This is true despite the fact that California has far better solar, wind, and other renewable energy resources. For example, while Germany has the solar intensity of lower Alaska, it has consistently added far more solar capacity than California: In 2008, Germany added 1.5 gigawatts of solar while California added less than 160 megawatts -- a factor of nearly 10 times even though 160 megawatts, from the RPS and CSI programs combined, set a record for California!

FIT programs have now been implemented in dozens of countries around the world, and have proven to be the most effective policy mechanism for bringing renewable energy online in a timely manner.

EXISTING LAW

California currently has three programs for attracting renewable energy generation: the RPS program, which is focused on attracting large central station renewables, and the CSI and SGIP programs, both of which facilitate relatively small, behind-the-retail-meter installations that rely on net metering benefits combined with incentives.

The REESA FIT is designed so that it will not interfere with any of the existing programs. Rather, it fills a critical programmatic gap by unleashing the tremendous potential of the Wholesale Distributed Generation (WDG) market segment: the 20 megawatt-and-under market segment in which projects are interconnected to the distribution grid. REESA FIT facilities will have dedicated meters that measure all energy generated, and as such, the energy generated will not offset any onsite load, be net metered, nor be eligible for CSI or SGIP incentives. Instead all the energy will be sold to utilities, bundled with the renewable energy attributes, including the Renewable Energy Certificates (RECs), which will count toward utilities' RPS requirements.

THIS BILL

The REESA FIT will direct the CPUC to implement a comprehensive FIT with rates that are not limited by the Market Price Referent (MPR), which has proven to be a contentious pricing construct used in the RPS program. Features of the REESA FIT include the following:

" Applies to all RPS-eligible technologies in projects sized 20 megawatts and under.
" Sets technology-differentiated rates that are based on typical manufacturing costs, typical renewable resource intensities, and profit margins commensurate with those allowed for utility-owned generation.
" Sets an upper limit on FIT rates, assuring that California ratepayers are well protected.
" Follows a simple and streamlined Standard Must-Take Contract (SMTC) that is developed by the CPUC.
" Applies to all California utilities, investor-owned (IOUs) and publicly-owned (POUs), but provides more discretion to POUs in developing their programs.
" Bundles all renewable energy attributes with the energy sold.
" Allows any party to own FIT facilities, including 3rd party developers, utilities, and utility customers.
" Limits the REESA FIT program to two percent of annual delivered energy for each utility for each year of the FIT program.
" Mandates a program start-date of 1 July 2010.
" Assures total separation from CSI and SGIP programs by requiring dedicated FIT meters, instead of net metering on retail meters. Among many benefits, separate meters expand renewable energy generation opportunities to owners of leased properties and/or multi-unit buildings, and to any site that has a deployment capacity over the 1 megawatt incentive limit of the CSI and SGIP programs.
" Utilizes Rule 21 to assure that interconnection system upgrade costs are either minimal or covered by FIT project developers.”


The Renewable Energy & Economic Stimulus Act of 2009

SUMMARY

REESA will direct the California Public Utilities Commission (CPUC) to follow the December 2008 recommendation by the California Energy Commission (CEC) to immediately implement a comprehensive, cost-based Feed-In Tariff (FIT) in California. The REESA FIT creates a highly effective regulatory tool for bringing renewable energy online in a timely manner. The frustratingly slow progress of the Renewable Portfolio Standard (RPS) program, and the limited nature of the California Solar Initiative (CSI) and the Small Generator Incentive (SGIP) Program, require that a far more effective solution is implemented for achieving California's current RPS mandate of 20% of delivered electricity by 2010, and the goal of 33% renewables by 2020, which is likely to become law this year. The RPS program is many years behind schedule due to many factors that include the typical 10-year dependency that large projects have on significant transmission improvements. The REESA FIT is a simple and streamlined program that will bring significant levels of renewable energy capacity online in a timely manner -- capacity that will not require major transmission improvements. The economic benefits of the REESA FIT include substantial in-state job creation, with all REESA FIT facilities being built within the State of California, providing a vital boost for the many California-based, renewable energy and clean-tech companies.


BACKGROUND

For economic, energy security, public health, and environmental reasons, California desires to be a leader in transitioning from fossil fuel energy sources to renewables. Unfortunately, California's RPS program is many years behind schedule, and the CSI and SGIP programs are too limited in scope to bring significant levels of renewable energy online. At the same time, many countries around the world have introduced effective FIT programs that are bringing renewables online in levels that are orders of magnitude greater than California has achieved over the last eight years under the RPS program. This is true despite the fact that California has far better solar, wind, and other renewable energy resources. For example, while Germany has the solar intensity of lower Alaska, it has consistently added far more solar capacity than California: In 2008, Germany added 1.5 gigawatts of solar while California added less than 160 megawatts -- a factor of nearly 10 times even though 160 megawatts, from the RPS and CSI programs combined, set a record for California!

FIT programs have now been implemented in dozens of countries around the world, and have proven to be the most effective policy mechanism for bringing renewable energy online in a timely manner.

EXISTING LAW

California currently has three programs for attracting renewable energy generation: the RPS program, which is focused on attracting large central station renewables, and the CSI and SGIP programs, both of which facilitate relatively small, behind-the-retail-meter installations that rely on net metering benefits combined with incentives.

The REESA FIT is designed so that it will not interfere with any of the existing programs. Rather, it fills a critical programmatic gap by unleashing the tremendous potential of the Wholesale Distributed Generation (WDG) market segment: the 20 megawatt-and-under market segment in which projects are interconnected to the distribution grid. REESA FIT facilities will have dedicated meters that measure all energy generated, and as such, the energy generated will not offset any onsite load, be net metered, nor be eligible for CSI or SGIP incentives. Instead all the energy will be sold to utilities, bundled with the renewable energy attributes, including the Renewable Energy Certificates (RECs), which will count toward utilities' RPS requirements.

THIS BILL

The REESA FIT will direct the CPUC to implement a comprehensive FIT with rates that are not limited by the Market Price Referent (MPR), which has proven to be a contentious pricing construct used in the RPS program. Features of the REESA FIT include the following:

" Applies to all RPS-eligible technologies in projects sized 20 megawatts and under.
" Sets technology-differentiated rates that are based on typical manufacturing costs, typical renewable resource intensities, and profit margins commensurate with those allowed for utility-owned generation.
" Sets an upper limit on FIT rates, assuring that California ratepayers are well protected.
" Follows a simple and streamlined Standard Must-Take Contract (SMTC) that is developed by the CPUC.
" Applies to all California utilities, investor-owned (IOUs) and publicly-owned (POUs), but provides more discretion to POUs in developing their progra

California's RPS program is many years behind schedule, and the CSI and SGIP programs are too limited in scope to bring significant levels of renewable energy online. At the same time, many countries around the world have introduced effective FIT programs that are bringing renewables online in levels that are orders of magnitude greater than California has achieved over the last eight years under the RPS program. This is true despite the fact that California has far better solar, wind, and other renewable energy resources. For example, while Germany has the solar intensity of lower Alaska, it has consistently added far more solar capacity than California: In 2008, Germany added 1.5 gigawatts of solar while California added less than 160 megawatts -- a factor of nearly 10 times even though 160 megawatts, from the RPS and CSI programs combined, set a record for California!

FIT programs have now been implemented in dozens of countries around the world, and have proven to be the most effective policy mechanism for bringing renewable energy online in a timely manner.

EXISTING LAW

California currently has three programs for attracting renewable energy generation: the RPS program, which is focused on attracting large central station renewables, and the CSI and SGIP programs, both of which facilitate relatively small, behind-the-retail-meter installations that rely on net metering benefits combined with incentives.

The REESA FIT is designed so that it will not interfere with any of the existing programs. Rather, it fills a critical programmatic gap by unleashing the tremendous potential of the Wholesale Distributed Generation (WDG) market segment: the 20 megawatt-and-under market segment in which projects are interconnected to the distribution grid. REESA FIT facilities will have dedicated meters that measure all energy generated, and as such, the energy generated will not offset any onsite load, be net metered, nor be eligible for CSI or SGIP incentives. Instead all the energy will be sold to utilities, bundled with the renewable energy attributes, including the Renewable Energy Certificates (RECs), which will count toward utilities' RPS requirements.

THIS BILL

The REESA FIT will direct the CPUC to implement a comprehensive FIT with rates that are not limited by the Market Price Referent (MPR), which has proven to be a contentious pricing construct used in the RPS program. Features of the REESA FIT include the following:

" Applies to all RPS-eligible technologies in projects sized 20 megawatts and under.
" Sets technology-differentiated rates that are based on typical manufacturing costs, typical renewable resource intensities, and profit margins commensurate with those allowed for utility-owned generation.
" Sets an upper limit on FIT rates, assuring that California ratepayers are well protected.
" Follows a simple and streamlined Standard Must-Take Contract (SMTC) that is developed by the CPUC.
" Applies to all California utilities, investor-owned (IOUs) and publicly-owned (POUs), but provides more discretion to POUs in developing their programs.
" Bundles all renewable energy attributes with the energy sold.
" Allows any party to own FIT facilities, including 3rd party developers, utilities, and utility customers.
" Limits the REESA FIT program to two percent of annual delivered energy for each utility for each year of the FIT program.
" Mandates a program start-date of 1 July 2010.
" Assures total separation from CSI and SGIP programs by requiring dedicated FIT meters, instead of net metering on retail meters. Among many benefits, separate meters expand renewable energy generation opportunities to owners of leased properties and/or multi-unit buildings, and to any site that has a deployment capacity over the 1 megawatt incentive limit of the CSI and SGIP programs.
" Utilizes Rule 21 to assure that interconnection system upgrade costs are either minimal or covered by FIT project developers. “

As you can see, it is fairly detailed and designed to work without interfering with existing programs and will add huge amounts of renewable energy soon if we do it.

I think this should be enacted within 30 days if it can be.

In an email to me Craig added this.:

“Note that a relatively sophisticated impact analysis has been run on the REESA FIT showing that, acting alone, the REESA FIT can satisfy more than 90% of the anticipated 33% RPS requirement by 2020. At the same time, the analysis shows that maxing the REESA FIT to its annual program limit would have a worst-case ratepayer impact of less than 1% per year. This translates into a ratepayer impact of less than 10% over a 10 year period, while nearly satisfying the entire 33% RPS requirement on its own! I believe that it is safe to say that such a low 33% RPS ratepayer impact is far lower than nearly everyone expects -- it is even considerably less than the avoided inflationary effects that are forecasted over the same period; meaning that ratepayers are likely to benefit from a net savings.


I would like your support for the REESA FIT and would appreciate your help in getting the REESA in front of key organizations, like leading environmental and social justice organizations (clean energy, clean jobs, preempting the use of dirty power plants in poor neighborhoods, etc)...

Cheers,

Craig Lewis
Principal, RightCycle Enterprises
Advisor, GreenVolts
16 Palm Ct
Menlo Park, CA 94025”