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HomeMy WebLinkAbout2022-01-18; City Council; ; Resolution Regarding the Net Energy Metering Proceeding before the California Public Utilities CommissionMeeting Date: Jan. 18, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Jason Haber, Intergovernmental Affairs Director Jason.Haber@carlsbadca.gov, 760-434-2958 Subject: Resolution Regarding the Net Energy Metering Proceeding before the California Public Utilities Commission Districts: All Recommended Action Consider a request from Council Member Bhat-Patel to adopt a resolution in support of protecting rooftop solar power generation and expanding clean energy access as it relates to the net energy metering 3.0 proceeding being considered by the California Public Utilities Commission. Executive Summary On November 18, 2021, Council Member Bhat-Patel submitted the attached email (Exhibit 2) to the City Manager requesting that this item be placed on an upcoming City Council agenda.1 The council member proposed a resolution that would state the city’s opposition to certain proposed changes in the program that provides credits to electricity customers who generate their own power. Solar power advocates and others contend these changes would not advance the growth of rooftop solar power generation in California by reducing the incentives. The resolution, with some minor, non-substantive staff modifications, is attached as Exhibit 1. Discussion Electric utility customers who install small solar, wind, biogas, and fuel cell generation facilities to serve all or a portion of their onsite electricity needs are eligible for the state's net energy metering program. This program allows customers who generate their own energy to receive a financial credit on their electric bills for any surplus energy fed back to their utility. Net energy metering is intended to encourage the installation of renewable energy generation systems at homes and businesses. The commission adopted the current net energy metering program in 2016. In addition to providing the rate credit, it requires participating customers to 1 Carlsbad Municipal Code Section 1.20.060(C) states, in part: “Items of business may be placed on the agenda by any member of the council, the city manager or the city attorney, or by council action.” Jan. 18, 2022 Item #8 Page 1 of 14 pay charges that align the costs they pay with the costs paid by customers who are not in the program. The Public Utilities Commission recently launched a formal proceeding (R.20-08-020) to update the current net energy metering tariff structure. These tariffs set the rates for the bill credits that customers can receive for the excess power their power systems export to the electric grid. The new rulemaking is referred to as net energy metering 3.0 because this is the third iteration of the program. Eighteen proposals have been submitted to the commission for consideration, including a joint proposal from the state’s investor-owned utilities: Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric. Opponents of the investor-owned utilities’ joint proposal contend that it would hinder the state’s rooftop solar market, which is a key strategy in the state reaching its clean energy and environmental goals. An administrative law judge issued a proposed decision in the proceeding on Dec. 13, 2021. The 200-page proposed decision addresses important equity concerns raised by the investor-owned utilities and other parties, and supports exemptions from certain charges and beneficial rate components designed for low-income customers.2 However, by adopting a fixed grid participation charge of $8 per kilowatt per month for residential customers and using a reduced compensation rate for excess power generation instead of the retail rate, the proposed decision would eliminate long-standing incentives for customer generators, penalizing them for the size of their solar systems and undercutting the economics of rooftop solar. The California Public Utilities Commission created a fact sheet to explain the tariff-setting process, Modernizing California’s Net Energy Metering Program to Meet our Clean Energy Goals. It is provided in Exhibit 3. Details of the proposed decision are further outlined in a news release from the Public Utilities Commission dated Dec. 13, 2021, which is attached as Exhibit 4. The proposed decision may be heard, at the earliest, at the commission’s Jan. 27, 2022, meeting. This item is presented for the City Council to discuss and consider adoption of a resolution regarding the net energy metering 3.0. The proposed resolution, Exhibit 1, would urge the commission to not support provisions set forth in the investor-owned utilities’ proposal, such as high monthly fixed fees, and to instead adopt a structure that would make it easier for energy customers to generate their own power, expand access to clean energy technologies and ensure that California’s solar energy industry continues to grow. Fiscal Analysis This item has no fiscal impact. Next Steps If the proposed resolution is adopted, staff will transmit a copy to the California Public Utilities Commission in advance of the hearing at which the proposed decision is docketed. 2 The proposed decision can be found on the Public Utilities Commission’s website at cpuc.ca.gov/industries-and- topics/electrical-energy/demand-side-management/net-energy-metering/nem-revisit Jan. 18, 2022 Item #8 Page 2 of 14 Environmental Evaluation This action does not constitute a “project” within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Public Notification This item was noticed in keeping with the state's Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council resolution 2. Nov. 18, 2021, request from Council Member Bhat-Patel to place an item on the City Council agenda 3. California Public Utilities Commission fact sheet – Modernizing California’s Net Energy Metering Program to Meet our Clean Energy Goals, Dec. 13, 2021 4. California Public Utilities Commission news release – CPUC Proposal Aims to Modernize State’s Decarbonization Incentive Efforts, Dec. 13, 2021 Jan. 18, 2022 Item #8 Page 3 of 14 RESOLUTION NO. 2022-027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, SUPPORTING THE PROTECTION OF ROOFTOP SOLAR POWER GENERATION AND EXPANDING CLEAN ENERGY ACCESS AS IT RELATES TO THE NET ENERGY METERING 3.0 PROCEEDING BEFORE THE CALIFORNIA PUBLIC UTILITIES COMMISSION Exhibit :. WHEREAS, net energy metering is designed to support the installation of customer-sited renewable energy generation; and WHEREAS, net energy metering allows customers to receive bill credits for power generated by their solar system and shared with the power grid and ultimately save money on their utility bills; and WHEREAS, net energy metering is what has allowed solar to become increasingly accessible to low-and-moderate income households, schools, businesses and nonprofit organizations; and WHEREAS, the California Public Utilities Commission has launched a formal proceeding to update the current net energy metering structure to be introduced in 2022 as "net energy metering 3.0" and a number of parties have submitted their proposals for what they believe net energy metering 3.0 should look like; and WHEREAS, the California investor-owned utilities -San Diego Gas & Electric, Pacific Gas and Electric and Southern California Edison -have submitted a joint proposal that calls for drastic changes to net energy metering that would make customer-sited renewable energy more expensive by including high monthly fees and increasing the amount of time for customers to pay off the system and ultimately has the potential to eliminate the California distributed solar market; and WHEREAS, the investor-owned utilities' proposal would make it harder for customer-sited renewables to continue to grow sustainably as mandated by law, while other proposals submitted by Protect Our Communities Foundation, California Solar & Storage Association, Vote Solar, GRID Alternatives, Solar Energy Industries Association and others not only would encourage new solar adoption but also include additional subsidies for low income customers and energy storage adoption; and WHEREAS, the investor-owned utilities' proposal includes fees on the utility side of billing and would be the highest solar fees in the nation in the San Diego Gas & Electric territory, which Clean Energy Alliance customers would not be able to avoid even if the alliance's net energy metering rate was extremely solar friendly; and Jan. 18, 2022 Item #8 Page 4 of 14 WHEREAS, the City of Carlsbad Climate Action Plan includes rooftop solar on residential and commercial buildings as a key greenhouse gas reduction measure; and WHEREAS, the City Council continues to advocate for equity in our communities; and WHEREAS, protecting rooftop solar and expanding access to rooftop solar will help California move toward 100% clean energy; and WHEREAS, rooftop solar is used to power electric vehicles and is a critical component in lowering and eliminating transportation emissions; and WHEREAS, California cannot meet its clean energy targets in time with utility-scale solar alone and needs to triple the amount of rooftop solar to get to 100 percent clean energy by 2045; and WHEREAS, Carlsbad schools, residents and businesses should be able to continue to adopt rooftop solar and receive the benefits of solar paired with other clean energy technologies, which would be in jeopardy if the investor-owned utilities' proposal was adopted; and WHEREAS, a recent study conducted by Vibrant Clean Energy showed that rooftop solar can save all California ratepayers $120 billion and is a net benefit to society; and WHEREAS, the rooftop solar industry supports thousands of local jobs in San Diego County, including many in Carlsbad; and WHEREAS, the rooftop solar industry provides over $1 billion in economic benefits to the region; and WHEREAS, Carlsbad is a regional leader in rooftop solar adoption, with more than 8,000 local projects including homes, schools, nonprofits and businesses, which could be negatively impacted by current net energy metering proposals. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That the Carlsbad City Council supports protecting rooftop solar and expanding clean energy access by making it easier, not harder, for people to adopt rooftop solar in order to meet California's ambitious clean energy targets and deploy solar in communities struggling to pay for electricity. 3. That the Carlsbad City Council urges the California Public Utilities Commission to strengthen net energy metering to expand access to other clean energy technologies Jan. 18, 2022 Item #8 Page 5 of 14 Exhibit 2 From: Priya Bhat-Patel <Priya.Bhat-Patel@carlsbadca.gov> Sent: Thursday, November 18, 2021 9:24 AM To: Scott Chadwick <Scott.Chadwick@carlsbadca.gov> Cc: Matthew Hall <Matt.Hall@carlsbadca.gov>; Celia Brewer <Celia.Brewer@carlsbadca.gov> Subject: Fwd: Sign on in support of protecting solar in California Hi Scott, Matt and I would like to consider a potential NEM resolution similar to San Diego, Chula Vista and Solana Beach. The CPUC proposed decision has been expected by 12/10 but now it’s been heard that it will be delayed to later in the month. Given how important solar is to our community, is it possible for us to incorporate something to pass during one of our December meetings? I don’t anticipate it being very long and the Carlsbad Unified School District also passed something yesterday. Thank you all and let me know if I need to provide more information or a draft resolution that folks have considered in other parts of the county. If we need to hop on a call, I’m available after 10! Thanks again! Priya Bhat-Patel Council Member, District 3 City of Carlsbad 1200 Carlsbad Village Dr. Carlsbad, CA 92008 www.carlsbadca.gov 760-434-2830 (o)| 760-473-8726 (c) priya.bhat-patel@carlsbadca.gov Jan. 18, 2022 Item #8 Page 7 of 14 California Public Utilities Commission Fact Sheet Modernizing California’s Net Energy Metering Program to Meet our Clean Energy Goals December 13, 2021 Proposed Decision for Proceeding R.20-08-020 | www.cpuc.ca.gov/nemrevisit Rooftop Solar’s Changing Role in California’s Energy Transition •For more than 20 years, California has aggressively supported the rooftop solar market through its Net Energy Metering (NEM) program in Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric Company (SDG&E) territories. •NEM has driven record deployment of distributed generation as a result.1 o NEM has enabled 1.3 million customers to install roughly 10,000 megawatts of customer-sited renewable generation, almost all of which is rooftop solar. o NEM systems reduce the demand on the electric grid by as much as 25 percent during midday when the sun is shining. •NEM has helped California make significant progress toward meeting its climate goals, but now that California has nearly 25 gigawatts (GW) of solar on our grid, needs have shifted. It is now essential to address grid reliability shortfalls during “net peak”2 hours in the early evening when the sun is down and we rely on fossilfuels to meet demand. •Transforming NEM will ensure household solar+storage adopters are a part of the solution to meeting California’s urgent climate goals by reducing load and/or exporting energy during net peak. •By modernizing NEM, California can incentivize distributed storage and promote electrification, which will provide more value to the electric grid and help California meet its ambitious climate goals even faster. California Law and the Need to Modernize NEM •Assembly Bill 327 (Perea, 2013) required the CPUC to reform its existing NEM program, as well as conduct rate reform and distribution planning activities. The CPUC revised the NEM program in 2016 and created “NEM 2.0.” The CPUC initiated its current reform of NEM 2.0 in August 2020. •The CPUC is ensuring the NEM program complies with statutory requirements including: o Ensuring that customer-sited renewable distributed generation continues to grow sustainably; o Including alternatives designed for growth in disadvantaged communities; o Basing the tariff on the costs and benefits of eligible renewable electrical generation facilities; and,o Ensuring the tariff’s benefits to all customers and the electrical system approximately equal its costs. •There is a clean energy shortfall in the evening hours when the sun is down, which forces California to rely on fossil fuels to meet evening demand. One solution to the problem is distributed storage, but the current NEM 1 For California solar installation data, see the CPUC’s California Solar Initiative webpage and California Distributed Generation Statistics. 2 For an introduction to “net peak,” see www.caiso.com/documents/gross-and-net-load-peak-fact-sheet.pdf. Exhibit 3 Jan. 18, 2022 Item #8 Page 8 of 14 program lacks the price signals necessary to incent storage adoption, thus less than 10 percent of existing NEM customers have paired storage with their solar systems. • All ratepayers pay as much as 10 times more for exported NEM energy than for other sources of renewable energy.3 Californians today spend more than $3 billion a year to support NEM programs. • An independent third-party evaluation of NEM 2.0 found that its costs substantially exceed its benefits as residential NEM 2.0 participants only pay 9 to 18 percent of what it costs their utilities to serve them, even considering the value of the energy produced by their NEM systems. • Under NEM 2.0, the typical solar customer pays for the solar energy system through energy bill savings in 3-5.5 years depending on utility4, and then receives substantial bill savings for the remainder of the current 20-year tariff. • Ratepayers without NEM systems, who are disproportionately low-income, pay significantly higher electricity rates due to NEM. The Public Advocates Office at the CPUC estimates that households without NEM systems pay $67 to $128 more per year, depending on the utility, due to the costs of the NEM 1.0 and NEM 2.0 programs.5 Without NEM reform, these amounts will increase substantially by 2030. • While the Proposed Decision does not recommend this, as a reference point for current NEM costs, this amount would be sufficient to achieve 90-96 percent decarbonized electricity for all Californians by 2045 if it were redirected toward a portfolio with a greater emphasis on large-scale clean energy projects. Overview of the Proposed Net Billing Tariff The proposed new Net Billing Tariff has four key components: 1) Pays Net Billing customers for the electricity they export to the grid based on its value, determined by the avoided cost to the utility of buying clean energy elsewhere. 2) Charges Net Billing customers for the electricity they receive from the grid based on high differential time-of-use tariffs, creating more benefit for customers who install storage and incentivizing them to store solar energy and shift exports later in the day. 3) Creates a Grid Participation Charge based on the size of the solar system to ensure that Net Billing customers are paying the same fixed costs of the electric grid as non-Net Billing customers. 4) Provides a Market Transition Credit so that customers can pay back the cost of a new solar plus storage energy system in less than 10 years, ensuring that the solar industry in California continues to grow and rooftop solar remains economic. The credit will phase out for new customers over four years. How the Net Billing Tariff Incentivizes Storage Adoption to Support Net Peak Reliability Needs • Creates a Net Billing Tariff that sends more accurate price signals based on avoided costs that will incent storage and provide value to the grid when it is most needed during net peak. • Requires Net Billing customers to take service on rates with high differentials between peak and off-peak prices. Higher on-peak prices incent storage usage, while lower off-peak prices make using electric vehicles and appliances more affordable. 3 www.cpuc.ca.gov/nem2evaluation 4 Cost Effectiveness of NEM Successor Rate Proposals under Rulemaking 20-08-020, at https://willdan.app.box.com/s/3jpscul3lbtof5erje7f4bkqkk96uahp 5 R2008020 Public Advocates Office Prepared Testimony on NEM Jan. 18, 2022 Item #8 Page 9 of 14 • Transitions residential NEM 1.0 and NEM 2.0 customers (except low-income customers) to the new Net Billing Tariff after 15 years of being interconnected to the electric grid, which will incent storage adoption and reduce costs paid by other ratepayers by billions of dollars. • Provides storage rebates to NEM 2.0 customers if they switch to the Net Billing Tariff over a four-year period through the Storage Evolution Fund, so they can help California displace fossil fuel use at peak hours and become more resilient to natural disasters and wildfires. • Allows solar systems to be sized to cover 150 percent of a customer’s historical load in order to enable future electrification. How the New Net Billing Tariff Promotes Equity • Establishes an Equity Fund with up to $600 million to support clean energy and storage programs for low- income Californians, with allocation details to be determined following stakeholder feedback. • The fund could enhance and expand existing low-income storage and community solar programs that have strong consumer protections (e.g., Disadvantaged Communities-Green Tariff and Self-Generation Incentive Program Equity) or support new low-income programs that improve access to clean energy. • Exempts low-income customers, customers living in a disadvantaged community, and tribal households from paying the Grid Participation Charge. How the New Net Billing Tariff Supports the Sustainable Growth of Customer-Sited Renewable Energy • Supports installation of new customer-sited renewable energy by providing substantial annual bill savings and a 10-year payback period for solar plus storage energy systems. • Establishes a monthly residential Grid Participation Charge of $8/kilowatt (kW), so that future solar and storage adopters pay fairly for access to the electric grid (see table below). An average customer who does not have NEM solar or storage pays roughly $100 per month for their access to the grid. • Provides a glide path for the industry through a monthly Market Transition Credit of up to $5.25/kW for residential customers for both storage plus solar adopters and solar-only adopters (see table below). During the four-year glide path, the credit will step down 25 percent a year for prospective customers. • Provides stability and predictable bill savings by locking in the Market Transition Credit amount and tariff structure for each customer for 10 years and export compensation amount for a customer’s first 5 years. 2023 Effective Monthly Fixed Charges per Kilowatt (kW) (Grid Participation Charge minus Market Transition Credit) Customer Segment PG&E SDG&E SCE Residential $6.38/kW $8.00/kW $4.41/kW Low-Income -$4.36/kW $0.00 /kW -$5.25/kW 2023 Effective Monthly Fixed Charges for 5 kW Solar System Customer Segment PG&E SDG&E SCE Residential $31.90 $40.00 $22.05 Jan. 18, 2022 Item #8 Page 10 of 14 Low-Income -$21.80 $0.00 -$26.25 Remaining Steps in this Proceeding • Parties may file comments on the Proposed Decision within 20 days, and replies to comments are due 5 days thereafter, following Rule 14.3 of the Rules of Practice and Procedure.6 • The Proposed Decision may be heard, at the earliest, at the CPUC’s January 27, 2022 Voting Meeting. To confirm when it will be heard, see the agenda and hold list, which is posted on the CPUC website.7 • If adopted, the Proposed Decision would implement a sunset on the NEM 2.0 tariff four months after issuance of the final decision. • If the Proposed Decision is adopted, the next phase of the NEM proceeding will include workshops to consider community project tariffs, which will be coordinated with other related proceedings. • The next phase would also include a workshop by April 30, 2022 to solicit stakeholder feedback on the allocation of the Equity Fund, and a Ruling to seek stakeholder input on the five-year evaluation of the Net Billing Tariff, with a focus on affordability and equity metrics. 6 www.cpuc.ca.gov/-/media/cpuc-website/divisions/administrative-law-judge-division/documents/rules-of-practice-and-procedure-may-2021.pdf 7 www.cpuc.ca.gov/events-and-meetings Jan. 18, 2022 Item #8 Page 11 of 14 1 California Public Utilities Commission 505 Van Ness Ave., San Francisco _________________________________________________________________________________ FOR IMMEDIATE RELEASE PRESS RELEASE Media Contact: Terrie Prosper, 415.703.1366, news@cpuc.ca.gov Docket #: R.20-08-020 CPUC PROPOSAL AIMS TO MODERNIZE STATE’S DECARBONIZATION INCENTIVE EFFORTS SAN FRANCISCO, December 13, 2021 – The California Public Utilities Commission (CPUC), in ongoing actions to evolve decarbonization incentive efforts to meet the state’s groundbreaking clean energy goals, today issued a proposal that would revise current Net Energy Metering (NEM) rules and create a Net Billing Tariff that balances the needs of the electric grid, the environment, and consumers. The proposal will be on the CPUC’s January 27, 2022 Voting Meeting agenda. The proposal issued today, formally called a Proposed Decision, determines that NEM must be modernized to incentivize customers to install storage paired with rooftop solar to help California meet its net peak shortfall and ensure grid reliability. The Proposed Decision adopts more accurate price signals that will promote greater adoption of customer-sited storage, which will help California decrease its dependency on fossil fuels during the early evening hours, when the sun is down and energy demand is high. The proposal also includes a bill credit for Net Billing customers to ensure customers can pay for a solar plus storage energy system in 10 years or less through electric bill savings. The bill credit is designed to phase out while helping the solar and storage market continue to grow. The proposal also creates an Equity Fund with up to $600 million to improve low-income customer access to distributed clean energy programs with strong consumer protections. Today’s proposal for a new Net Billing Tariff: Evolves the tariff to improve grid reliability and accelerate climate goals by incenting the adoption of solar paired storage systems through more accurate price signals that will provide more value to the electric grid. Exhibit 4 Jan. 18, 2022 Item #8 Page 12 of 14 2  Establishes an Equity Fund with up to $600 million to help scale up low-income access to distributed clean energy. There would be a stakeholder process to determine the allocation of funds, which could go toward upfront incentives for distributed storage, community solar in low-income and disadvantaged communities, or other low-income clean energy programs with strong consumer protections.  Provides additional measures to incentivize distributed solar plus storage for low-income and tribal households, including an exemption from the Grid Participation Charge.  Allows Net Billing customers to “oversize” their systems by up to 150 percent of the customer’s historical load to allow for future vehicle and appliance electrification.  Requires Net Billing customers to take service on rates with high differentials between peak and off-peak prices, which will incent energy conservation or the use of stored solar energy during the net peak window of 6 p.m. to 9 p.m. when California needs to displace electric grid fossil fuel usage.  Adopts a monthly residential Grid Participation Charge of $8 per kilowatt (kW) of installed solar to capture residential adopters’ fair share of costs to maintain the grid and fund public purpose programs.  Creates a four-year glide path for the industry through a monthly Market Transition Credit of up to $5.25 per kW for residential solar plus storage and solar-only systems. Customers will lock this amount in for 10 years. During the four-year glide path, the credit will step down 25 percent a year for prospective customers, who will also lock in their amount for 10 years.  Establishes a Storage Evolution Fund to provide storage rebates to existing NEM 2.0 customers who transition to the Net Billing Tariff within the next four years, so that they can add storage systems to their homes to support the grid and become more resilient to wildfires and natural disasters.  Transitions residential NEM 1.0 and 2.0 customers (except for low-income customers) to the Net Billing Tariff after 15 years of being interconnected to the electric grid, which will incent storage adoption and reduce costs paid by other ratepayers by billions of dollars.  Moves residential customers from annual billing to monthly billing to help customers avoid unexpectedly large annual electric bills at the end of their 12-month billing period. Assembly Bill 327 (Perea, 2013) required the CPUC to reform the NEM program, as well as conduct rate reform and distribution planning activities. The CPUC made initial revisions to the NEM Jan. 18, 2022 Item #8 Page 13 of 14 3 program in 2016, resulting in what is called NEM 2.0. Today’s proposal, referred to as the Net Billing Tariff, continues work to modernize NEM to meet evolving consumer and grid needs and ensure all Californians have a cleaner and more reliable grid. The proposal is available at: https://docs.cpuc.ca.gov/SearchRes.aspx?docformat=ALL&docid=430903088. Members of the public can comment on the proposal and view documents related to the proceeding at: https://apps.cpuc.ca.gov/apex/f?p=401:56:0::NO:RP,57,RIR:P5_PROCEEDING_SELECT:R2008020. More information on the proceeding to revisit NEM is available at www.cpuc.ca.gov/nemrevisit. The CPUC regulates services and utilities, safeguards the environment, and assures Californians’ access to safe and reliable utility infrastructure and services. For more information on the CPUC, please visit www.cpuc.ca.gov. ### Jan. 18, 2022 Item #8 Page 14 of 14 Tammy Cloud-McMinn From: Sent: To: Subject: Lynda Daniels <1ynda6367@yahoo.com> Tuesday, January 18, 2022 11 :52 AM City Clerk Roof top solar All Receive -Agenda Item # Z For th~ Information ofthe: CITY COUNCIL Date U,9/'J.J,. CA .,...-cc ~ <;:M ~ACM ..-OCM (3)....:::::. As a Carlsbad resident with solar I am opposed to SDG&E's plan to impose fees on my sola ~ I agree with your resolution opposing it! Lynda Daniels 4547 Picadilly Court Sent from my iPhone CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. Tammy Cloud-McMinn From: Sent: To: Subject: To City Council members, katrina olson <bolsonkat@gmail.com> Tuesday, January 18, 2022 11 :59 AM City Clerk NET metering-agenda item #8 I would urge you to support today's net metering resolution. We need to show the California Public Utilities Commission that the City of Carlsbad wants :to see rooftop solar grow. As a current homeowner in Carlsbad we have been considering adcfilng rooftop solar but these new proposed rules make it financially less appealing to us-we want to do our part in this climate crisis, but can't justify the added costs to our energy bill that this proposal would bring. I'm sure that we are not alone. Our energy bill on our tiny home here is triple!! that of our children who live in Denver in a much larger home and colder weather-in this climate we should be taking advantage of ou~ solar power in any way that we can. Other points: -The Carlsbad Climate action Plan includes rooftop solar on residential and on commercial buildings as a key greenhouse gas reduction measure-if the proposed net metering decision is adopted it will make it impossible for the city to reach those goals. -The proposed decision before the CPUC goes beyond making changes that would make it financially unattractive for future solar customers. The proposed decision essentially kicks current solar customers off of their existing agreements earlier than they were promised and that's unfair, especially to those who couldn't afford a cash purchase. -Adding more rooftop solar should help decrease skyrocketing costs and also provide backL p power options once energy storage options improve. Local rooftop solar saves every ratepayer money. Rooftop solar reduces the cost of maintaining long distance power lines as well as wildfire costs associated with long distance power lines that ratepayers must pay. A recent study by Vibrant Clean Energy shows rooftop solar can save California ratepayers $120 billicn ! Thanks, Katrina Olson 2051 Cima Ct 1 Carlsbad, CA 92009 CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 2 Tammy Cloud-McMinn From: Sent: To: Cc: Subject: Mayor Hall and council members, Paige DeCino <pdecino@hotmail.com> Tuesday, January 18, 2022 12:39 PM City Clerk Paige DeCino Item 8, 1/18/22 Carlsbad City Council Meeting As requested by Councilmember Bhat-Patel, I urge the council to support her resolution that will protect roof-top sclar in the state as a means of achieving more renewable energy in our fight against climate change. While our current NEM 2.0 may not be perfect, the proposed 3.0 is a swing far in the wrong direction and will stifle installation of more solar in a distributed manner that is good for the climate and resiliency. Respectfully, Paige DeCino Skyline Rd, Carlsbad Sent from Mail for Windows CAUTION: Do not o en attachments or click on links unless you reco nize the sender and know the content i 1 Tammy Cloud-McMinn From: Sent: To: Subject: C Chiang <carina_chiang@yahoo.com> Tuesday, January 18, 2022 2:00 PM City Clerk Item 8: RESOLUTION REGARDING THE NET ENERGY METERING PROCEEDING BEFCRE THE CALIFORNIA PUBLIC UTILITIES COMMISSION Hello Carlsbad Mayor and City Council, Prior to a possible 27 January 2022 CPUC decision on proposed changes to the SDG&E ·Net Energy Metering Program, I urge the Carlsbad City Council to make a timely submission of comments in support of protecting rooftop solar power generation and expanding clean energy access. Thank you for your kind attention. Best regards, Carina Chiang Carlsbad resident CAUTION: Do not open attachments or click on links unless you reco nize the sender and know the content i safe. 1 Hector Gomez From: Sent: To: Subject: -----Original Message----- Council Internet Email Tuesday, January 18, 2022 2:10 PM City Clerk FW: City Council Meeting 1/18/2020 #8 From: maryanneviney@dslextreme.com <maryanneviney@dslextreme.com> Sent: Tuesday, January 18, 2022 2:00 PM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: City Council Meeting 1/18/2020 #8 Honorable City Council Members: Please adopt a resolution supporting the protection of rooftop solar power generation and expanding clean energy access as it relates to the net energy metering 3.0 proceeding before the California Public Utilities Commission. Thank you, Mary Anne Viney CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 Net Energy Metering Resolution Jason Haber Intergovernmental Affairs Director January 18, 2022 {city of Carlsbad PROPOSED ACTION Consider a request from Council Member Bhat- Patel to adopt a resolution in support of protecting rooftop solar power generation and expanding clean energy access as it relates to the net energy metering 3.0 proposal being considered by the California Public Utilities Commission. ITEM 8: NEM 3.0 Resolution { City of Carlsbad NET ENERGY METERING •State renewable energy incentive program •Current program (NEM 2) adopted in 2016 •Customer-generators receive full retail rate credits for energy exported to the grid •Net surplus compensation at annual average rate •One time interconnection fee ($132 in SDG&E) •Non-bypassable charges per kWh •TOU rate ITEM 8: NEM 3.0 Resolution { City of Carlsbad NET ENERGY METERING •2016 CPUC decision committed to review successor tariff to NEM 2 •Current proceeding R.20-080-020 •18 party proposals •Third-party Lookback Study ITEM 8: NEM 3.0 Resolution { City of Carlsbad NEM 2 STUDY •> 1 million NEM generators in CA by 2020 (Approx 8,500 in Carlsbad) •98% residential •< 12% in disadvantaged communities •Cost effective for NEM 2 participants, but not for ratepayers ITEM 8: NEM 3.0 Resolution { City of Carlsbad GUIDING PRINCIPLES •Policy compliance & consistency •Ensure equity among customers •Enhance consumer protections •Maximize value of customer sited renewables to all customers and the system •Consider competitive neutrality among LSEs ITEM 8: NEM 3.0 Resolution { City of Carlsbad PROPOSED DECISION •Monthly grid participation fee: $8/kW •Reduced export compensation: avoided cost calculator •Market transition credit: $0 •EV-TOU-5 rate schedule •15-year grandfathering for NEM1 & 2 customers •Storage rebate •$150 million equity fund •Low-income & disadvantaged carveouts ITEM 8: NEM 3.0 Resolution { City of Carlsbad PROPOSED RESOLUTION •Supports protecting rooftop solar and expanding clean energy access by making it easier… to adopt rooftop solar. •Urges CPUC to strengthen NEM to expand access to clean energy technologies… while excluding provisions such as high monthly fixed fees. ITEM 8: NEM 3.0 Resolution { City of Carlsbad