Bureaucracy - California Style [RE-wrenches]

Mon Jan 6 12:15:27 PST 2003

Wrenches:

Antony asked:

> Aren't "production incentives or supplemental energy payments" a
> different thing then Buydown Incentives?  It would seem that production
> incentives are typically paid per kilowatt-hour produced as opposed to
> per kilowatt capacity installed.

> Has anyone asked the CEC or CPUC (or whomever else could give a
> definitive answer - perhaps CALSEIA?) regarding the interpretation of
> that bill before we conclude it will have the adverse effects suggested?

First of all, I'm not willing to concede the battle at this point.  It will
take a lot of people fighting in unison and with a common direction to
effectively develop the "cures" to the ills.

One of the issues is, like I said yesterday, the primary legislative pieces
affecting us got intertwined....Antony's question is derived from 1078
(RPS).  An example of the types of intertwinement is below:

>From 1038 (Buydown) Section 15

(2) Any funds used to support in-state renewable electricity

generation technology facilities pursuant to this subdivision shall

be expended in accordance with the provisions of the report, subject

to all of the following requirements:

   (A) Of the funding for existing renewable electricity generation

technology facilities available pursuant to this subdivision, 75

percent shall be used to fund first tier technologies, including

biomass and solar electric technologies and 25 percent shall be used

to fund second tier wind technologies.

   (B) The Energy Commission shall reexamine the tier structure as

proposed in the report and adjust the structure to reflect market and

contractual conditions. The Energy Commission shall also consider

inflation when adjusting the structure.

   (C) The Energy Commission shall establish a cents per kilowatthour

production incentive, not to exceed the payment caps per

kilowatthour established in the report, as those payment caps are

revised in guidelines adopted by the commission, representing the

difference between target prices and the market clearing price for

electricity, if sufficient funds are available.  If there are

insufficient funds in any payment period to pay either the difference

between the target and market clearing price or the payment caps,

production incentives shall be based on the amount determined by

dividing available funds by eligible generation.  The market clearing

price for electricity shall be determined by the Energy Commission

based on the energy prices paid to nonutility power generators as

authorized by the commission, or on otherwise available measures of

market price.  For the first tier biomass technologies, the Energy

Commission shall establish a time-differentiated incentive structure

that encourages plants to run the maximum feasible amount of time and

that provides a higher incentive when the plants are receiving the

lowest price.  The Energy Commission may establish a different

incentive rate within the same technology tier to account for

discounted contracts.

To me, a lot of this looks bleak "as is".  My initial read of the final
legislation that was signed by the Governor on the relevant issues was one
of absolute anger and disappointment.  Hearing the "We won!" from our side
after the fact didn't jive with what I saw.  How could we let this happen?
I wish I was one of the faces and voices down at the Capitol during the
brawls that went on!

I know that the PV people fought hard on the things they saw as important,
while not understanding the implications of others.  Some concessions were
necessary.  They generally are in "negotiation".  Unfortunately, when you
are "David" and they are "Goliath", you are sometimes distracted by one
thing and not seeing the "whole picture".  You're busy kicking them in the
shins when you should be taking head and body shots.

Now it is time, to once again "clean up the mess".  A concentrated effort is
necessary to most effectively accomplish the best we can....

Legislation was the vehicle by which this stuff came to be.  Legislation
will be one of the vehicles by which it shall come to pass!  Didn't the new
Legislative session just start?  Time to get going!

One of my thoughts for one direction we should consider is to propose a bill
that "excludes" systems below a certain size from the Public Works
requirements and the other burdensome issues....

I urge all affected to take the time to read the entire text of the
chaptered legislation.  Links below:

1078 (RPS) -
http://www.leginfo.ca.gov/pub/01-02/bill/sen/sb_1051-1100/sb_1078_bill_20020
912_chaptered.html

1038 (Buydown) -
http://www.leginfo.ca.gov/pub/01-02/bill/sen/sb_1001-1050/sb_1038_bill_20020
912_chaptered.html

58 (Net Metering) -
http://www.leginfo.ca.gov/pub/01-02/bill/asm/ab_0051-0100/ab_58_bill_2002092
4_chaptered.html

You have to read 'em all and digest them a bunch to see the entanglements.
This stuff takes time and energy.  It will give you a headache.  Thinking
about this kind of stuff often does!  Nobody wants to do it, but we all must
in this case.

While you're reading, use a highlighter and pen or pencil....Jot down your
notes and thoughts...Fax or e-mail them to Graham or myself...Either of us
will respond or forward them onward as appropriate.  I know both of us are
and will be spending a lot of time and energy (both un-reimbursed, by the
way) in trying to attack this.  There are others as well, it's not just us.

I am in the process of "highlighting" and commenting on these right now.
Once I have compiled "my thoughts" in a digital format, I will make them
available to all.

My phone and fax info are:

Matt Lafferty
(916) 422-9772
(916) 628-7694 Cell
(916) 914-2247 Fax
pvpro at attbi.com

Graham can share his info, if you don't already have it.

Anybody else wanna volunteer?  Anybody else have some input already?  Jump
in!  The water may be icy cold right now but if there are enough warm bodies
I'm sure we can get the kettle to a good rolling boil!

Thanks to all for their time, patience and energies.

Pray for Sun!

-Matt Lafferty
pvpro at attbi.com

- - - -
To send a message: RE-wrenches at topica.com

Archive of previous messages: http://www.topica.com/lists/RE-wrenches/

List rules & etiquette: http://www.mrsharkey.com/wrenches/etiquete.htm

Check out participant bios: www.mrsharkey.com/wrenches/index.html

Hosted by Home Power magazine

Moderator: michael.welch at homepower.com

==^================================================================
This email was sent to: michael.welch at homepower.com

EASY UNSUBSCRIBE click here: http://topica.com/u/?bz8Qcs.bz9JC9.bWljaGFl
Or send an email to: RE-wrenches-unsubscribe at topica.com

TOPICA - Start your own email discussion group. FREE!
http://www.topica.com/partner/tag02/create/index2.html
==^================================================================