Rebate Frozen [RE-wrenches]

Dean T. Newberry deant at dcn.org
Sat Dec 13 21:55:12 PST 2003


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Hi y'All,
The following article reports that the CEC rebate is frozen. No new 
rebate applications will be accepted until further notice.

cul  deant at dcn.org
_____________________________________________________________

by Jesse Broehl, Staff Writer, SolarAccess.com News

 
Sacramento, California - December 11, 2003 [SolarAccess.com] 
California's Emerging Renewables program, which has been crucial to 
driving many new solar photovoltaic installations in the state, has been 
temporarily frozen in response to a new order handed down from Governor 
Arnold Schwarzenegger.

In an effort to alleviate the state's hemorrhaging budget deficit, the 
governor recently issued an executive order prohibiting new state 
contracts, contract extensions, and non-essential travel.

"It is vital to the economic health and prosperity of California that 
state government be conducted in the most business-like and economical 
manner, and that the people of this State be assured that their tax 
dollars be spent wisely," Governor Schwarzenegger states in the 
Executive Order. "The State General Fund is facing a significant 
imbalance between revenues and expenditures, and additional action must 
be taken to assure that the State lives within its means."

Executive Order S-4-03 prohibits all state agencies and departments from 
entering into any new contracts or agreements to lease or purchase 
equipment, from entering into any new services contracts, or from making 
any changes to an existing contract that would increase the amount or 
extend the term of such a contract, except as determined by the Director 
of Finance to be in the best interest of the State.

In response to the governor's order, the California Energy Commission 
(CEC), has temporarily put any new rebates and incentives on hold in 
order to evaluate the program's legal status under the new terms.

According to Claudia Chandler, Assistant Executive Director, Media and 
Communications Office for the CEC, the governor's order does impact the 
rebates and the CEC will seek an exemption to be processed later this week.

Another source at the CEC, questioned whether allocating monies from an 
existing account could be considered "new contracts" and felt the 
current freeze is more of a precautionary pause to allow an evaluation 
of the fund's legal status under the new order.

"The CEC is wondering whether that program falls into that account," 
said a CEC source speaking under condition of anonymity. "Like all 
agencies, the emerging renewables account is examining its legal statues 
and how it relates to the executive order."

The Emerging Renewables Program began on September 12, 2002, when Senate 
Bill 1038 was enacted into law authorizing the CEC to administer the 
program beginning in 2003 through 2006. The program grants capital cost 
rebates to assist customers who purchase and install renewable 
technologies for on-site generation. Increased sales encourage 
manufacturers and retailers to expand operations, which in turn should 
lower costs to consumers.

Participation in the program is setting record levels in 2003 with over 
6,000 applications submitted, according to the CEC. In the first nine 
months of the new program approximately half of the total funding 
allocated through 2006 has been paid or reserved.

This may only be a temporary setback based on a legal technicality, or 
it could prove to be something more serious for renewable energy in 
California.

In related news to the Emerging Renewables Account, the CEC's Renewables 
Committee is conducting a workshop today to solicit comments on proposed 
revisions to the Emerging Renewables Program Guidebook (publication # 
500-03-001F). Primary consideration is to reduce the rebate to $3/watt 
to stretch the rapidly depleting funds further. The rebate is currently 
at $3.80/watt and is scheduled to be reduced to $3.60/watt on January 1, 
2004.
 

Copyright © 2003 - SolarAccess.com - All Rights Reserved

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