California Archives - Vote Solar https://votesolar.org/states/california/ Make Solar Energy Mainstream Tue, 12 Mar 2024 18:24:11 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 California Coalition Letter to Governor Gavin Newsom on CPUC’s Proposed Decision https://votesolar.org/california-coalition-letter-to-governor-gavin-newsom-on-cpucs-proposed-decision/ Tue, 12 Mar 2024 18:07:12 +0000 https://votesolar.org/?p=8905 MAR 12 2024 The Honorable Gavin Newsom Governor, State of California 1021 O St., Ste. 9000 Sacramento, CA 95814 The Honorable Cottie Petrie-Norris Chair, Assembly Utilities & Energy Committee 1021 O St., Ste. 4230 Sacramento, CA 95814 The Honorable Mike McGuire Senate President pro Tempore 1021 OSt., Ste. 8518 Sacramento, CA 95814 The Honorable Steve […]

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The Honorable Gavin Newsom
Governor, State of California
1021 O St., Ste. 9000
Sacramento, CA 95814
The Honorable Cottie Petrie-Norris
Chair, Assembly Utilities & Energy Committee
1021 O St., Ste. 4230
Sacramento, CA 95814
The Honorable Mike McGuire
Senate President pro Tempore
1021 OSt., Ste. 8518
Sacramento, CA 95814
The Honorable Steve Bennett
Chair, Assembly Budget, Subcommittee #4
1021 O St., Ste. 4710
Sacramento, CA 95814
The Honorable Robert Rivas
Speaker of the Assembly
1021 O St., Ste. 8330
Sacramento, CA 95814
The Honorable Josh Becker
Chair, Senate Budget Subcommittee #2
1021 O St., Ste. 7250
Sacramento, CA 95814
The Honorable Stephen Bradford
Chair, Senate Energy, Utilities, and Commerce Committee
1021 O St., Ste. 7210
Sacramento, CA 95814

We, the undersigned organizations, represent a broad and diverse coalition fighting for equitable, affordable, reliable community solar-plus-storage in California.

We write to focus your attention on the California Public Utility Commission’s (CPUC) crippling proposed decision affecting the future of community solar development in California.

The decision runs counter to the recent efforts by both our state and our country to support affordability while meeting ambitious climate and energy equity goals by scaling up all forms of renewable electricity generation. Community-scale renewable generation plus storage provides an unprecedented opportunity to strengthen our state’s electric grid and prevent blackouts, all while providing flexible and affordable power to all Californians. At a time when the Department of Energy (DOE) just reaffirmed the federal government’s significant commitment to rapidly deploying third-party developed community solar, challenging the community solar industry to meet a target of 20 gigawatts (GW) of community solar by 2025, California would be going in the wrong direction if this proposed decision is adopted.

The proposed decision is flawed in numerous ways, but most importantly, it fails to provide the foundation needed for California to build a sustainable, scalable community solar program, which will ultimately leave billions of private investment and matching federal dollars on the table and ratepayers without a choice for more affordable, clean energy.

The proposed decision asserts that our coalition’s Net Value Billing Tariff (NVBT) proposal violates federal law under PURPA by bringing about an entirely new wholesale electricity seller in California. This assertion is in error. Decades of community solar development, as proven by 22 state programs across the country, directly refute that claim.

The proposed decision also hampers the growth of distributed energy resources for low-to-moderate income (LMI) households and the creation of well-paying jobs in disadvantaged communities. Doing so flies in the face of the Biden administration’s Justice40 environmental justice initiative by slowing the shuttering of fossil fuel generation in vulnerable communities — a worrying trend that Governor Newsom is, in part, enabling. California’s ambition to be a national environmental justice leader will undoubtedly suffer. 

Cost-shift, an often misunderstood topic, has been addressed directly by the NVBT proposal. Ratepayer advocates have repeatedly shown that the NVBT proposal is a good deal for all ratepayers.

In addition, pairing battery storage with each community solar project going forward will be essential to improving grid reliability and guarding against blackouts. This proposed decision makes storage optional and does nothing to incentivize developers to incorporate storage in future projects.

Ultimately, the proposed decision does not support affordability, encourages cost-shift, and leaves California stuck in the past without a viable path forward to meet necessary clean energy and environmental justice goals.

However, the fate of community solar in California can still be altered for the better. Third-party enabled, optimized community solar programs scale rapidly, drive greater bill savings for subscribers, and produce the maximum amount of LMI participation, especially in light of the federal Solar for All and tax credit incentives. A successful program that embraces the thoughtful, market-tested NVBT would enable more than one million Californians to save at least $300 per year; that’s $5 to $9 billion dollars back in the pockets of hard-working Californians over the life of these projects. This development could also reduce emissions equivalent to taking 600,000 cars off the road and provide enough capacity to shut down more than half of the state’s peaker plants.

These goals are still attainable if state officials review the flaws of the current proposed decision and support the widely-backed NVBT proposal. Our state’s most vulnerable households and communities, and their ability to access bill savings and clean energy, heavily depend on it.

 

Sincerely,

Coalition for Community Solar Access
California Environmental Justice Alliance
Natural Resources Defense Council
Vote Solar
The Utility Reform Network
GRID Alternatives 

 

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Community Solar Advocates Call on State Leadership to Halt Devastating Blow to Equitable Access to Solar Resources https://votesolar.org/community-solar-advocates-call-on-state-leadership-to-halt-devastating-blow-to-equitable-access-to-solar-resources/ Thu, 07 Mar 2024 20:13:08 +0000 https://votesolar.org/?p=8894 FOR IMMEDIATE RELEASE Contact: Lycia Ortega, Vote Solar, (928) 750-0581, lortega@votesolar.org Community Solar Advocates Call on State Leadership to Halt Devastating Blow to Equitable Access to Solar Resources The recent proposed decision puts CA behind in achieving a clean energy future and puts federal funding at risk. SAN FRANCISCO, CA (March 7, 2024) – Vote […]

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FOR IMMEDIATE RELEASE

Contact: Lycia Ortega, Vote Solar, (928) 750-0581, lortega@votesolar.org

Community Solar Advocates Call on State Leadership to Halt Devastating Blow to Equitable Access to Solar Resources

The recent proposed decision puts CA behind in achieving a clean energy future and puts federal funding at risk.

SAN FRANCISCO, CA (March 7, 2024) – Vote Solar, California Environmental Justice Alliance (CEJA), and NRDC (Natural Resources Defense Council) urge immediate action to avoid the devastating impacts of the proposed decision (PD) by the California Public Utilities Commission this week, which would reject the Net Value Billing Tariff (NVBT) community solar and storage proposal championed by a broad coalition of environmental justice, labor, developers, and affordability advocates.

The NVBT community solar and storage program would enable customers to benefit from thousands of low-cost clean and reliable community solar and storage projects. Projects would include storage to help boost grid reliability, and importantly, provide a clean energy option to the millions of Californians who rent or otherwise aren’t able to install a solar system directly. Access to solar bill savings is especially needed as millions of low-income households are behind on their bills, and there is federal funding at stake that could bring greater benefits for these households.

Regrettably, the Commission’s proposed decision would reject the NVBT program, and instead proposes an alternative based on methods that have failed to build projects. Instead of learning from past mistakes, the PD continues to rely on an uneconomic model that has failed for years, thus violating the AB 2316 requirements for robust access to community solar. This program would not work for Californians.

We are calling for the Commission and State leadership to ensure this PD is amended, and instead adopt the NVBT which is a proven model for community solar and storage throughout the country. Doing this will be critical to unlock equitable community solar and storage access for all Californians, safely retire polluting gas plants in overburdened communities, and put the State in a better position for securing time-sensitive federal funding. 

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About Vote Solar

Vote Solar is an energy justice non-profit working towards a 100% clean energy future by bringing solar to the mainstream. Founded in 2002, Vote Solar advocates for clean energy in legislative and regulatory arenas at the state level, where most decisions about electricity are made. Despite powerful opposition, we use a winning combination of deep policy expertise, coalition building, and public engagement to get the job done. To learn more, visit: https://votesolar.org/

About California Environmental Justice Alliance 

The California Environmental Justice Alliance is a statewide, community-led alliance that works to achieve environmental justice by advancing policy solutions. We unite the powerful local organizing of our members in the communities most impacted by environmental hazards – low-income communities and communities of color  – to create comprehensive opportunities for change at a statewide level to alleviate poverty and pollution. To learn more, visit: https://caleja.org/ 

About Natural Resources Defense Council

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law, and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, Beijing and Delhi (an office of NRDC India Pvt. Ltd). Visit us at  http://www.nrdc.org and follow us on Twitter @NRDC.

 

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California Utility Opposition to Net Value Billing Tariff: Myths Vs. Facts https://votesolar.org/california-utility-opposition-to-net-value-billing-tariff-myths-vs-facts/ Thu, 21 Dec 2023 21:38:40 +0000 https://votesolar.org/?p=8778 The post California Utility Opposition to Net Value Billing Tariff: Myths Vs. Facts appeared first on Vote Solar.

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Press Release: Virtual Net Metering (VNEM) Statement from Vote Solar Deputy Program Director – West, Andrea León-Grossmann https://votesolar.org/ca-vnem-20231117/ Fri, 17 Nov 2023 23:51:57 +0000 https://votesolar.org/?p=8585 OAKLAND, Calif. (November 17, 2023) – The recent decision on Virtual Net Metering (VNEM) by the California Public Utility Commission (CPUC) represents a major setback for the state’s leadership in the clean energy transition. Unfortunately, this decision hampers the ability of schools, farms, and small businesses to fully embrace onsite solar generation, deepening the challenges […]

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OAKLAND, Calif. (November 17, 2023) – The recent decision on Virtual Net Metering (VNEM) by the California Public Utility Commission (CPUC) represents a major setback for the state’s leadership in the clean energy transition. Unfortunately, this decision hampers the ability of schools, farms, and small businesses to fully embrace onsite solar generation, deepening the challenges they already face in choosing solar energy. These entities, essential to our communities, stand to benefit the most from the cost savings associated with clean energy and this policy decision hurts the vision of a clean energy future.

Moreover, this decision escalates the financial barriers to adopting heat pumps for HVAC and hot water, as well as electric vehicle (EV) chargers, effectively waging a war on electrification. The increased financial burden, compounded by rising interest rates, poses economic challenges for solar and storage companies. Simultaneously, the decision cuts access and equity for clean energy, disproportionately affecting low-wealth and historically underserved communities.

In direct contradiction to its own environmental and social justice action plan, the CPUC has chosen to overlook the commitment to improving air quality and public health through access to EV charging for Environmental and Social Justice (ESJ) communities. Instead of aligning with our country’s overall climate goals by accelerating emissions reductions and focusing on savings for everyday utility customers, this decision primarily benefits the shareholders of investor-owned utilities by increasing their revenue opportunities. Such a move not only de-centers the people experiencing these impacts but it also undermines California’s progress towards clean energy targets by slowing the ability for people to take advantage of EVs. This keeps our society moving toward the direction of depending on gas thereby intensifying the dangers of climate change.

Now more than ever, we believe it is vital for Governor Newsom and other state leaders to step up and realign the state’s path toward its clean energy goals. By doing so, Vote Solar is confident that California can reclaim its position as a trailblazer in the clean energy transition, fostering environmental sustainability and social equity for all.

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About Vote Solar

Vote Solar is an energy justice non-profit working towards a 100% clean energy future by bringing solar to the mainstream. Founded in 2002, Vote Solar advocates for clean energy in legislative and regulatory arenas at the state level, where most decisions about electricity are made. Despite powerful opposition, we use a winning combination of deep policy expertise, coalition building, and public engagement to get the job done.

https://votesolar.org/

Media Relations

Lycia Ortega, Vote Solar, lortega@votesolar.org 

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From Rays to Resilience: Solar Power’s Vital Role in Earthquake Safety https://votesolar.org/from-rays-to-resilience-solar-powers-vital-role-in-earthquake-safety/ Thu, 19 Oct 2023 20:16:33 +0000 https://votesolar.org/?p=8488 By Andrea León-Grossmann This October 19, as millions of people worldwide participate in earthquake drills for International ShakeOut Day, Californians are reminded of the sobering truth: a looming threat and opportunity for change remains alarmingly under the radar. While the state diligently focuses on building resilient structures to withstand seismic events, the perilous dangers of […]

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By Andrea León-Grossmann

This October 19, as millions of people worldwide participate in earthquake drills for International ShakeOut Day, Californians are reminded of the sobering truth: a looming threat and opportunity for change remains alarmingly under the radar. While the state diligently focuses on building resilient structures to withstand seismic events, the perilous dangers of dirty energy sources threaten to unleash a silent storm with the potential to harm the most vulnerable. Our legislators must prepare for all monumental perils, including responding to dirty energy and climate change. 

One stark example of the dangers posed by fossil fuels was from the 2015 gas blowout at SoCalGas’ Aliso Canyon Gas Storage Facility. This was the largest blowout in the nation’s history, with the contamination still lingering, poisoning those living in the San Fernando Valley and raising questions about the safety of similar facilities across the state. Despite warnings dating back to July 2017 by a former SoCalGas manager about the potential “catastrophic loss of life” in the event of a major earthquake, little action was taken to mitigate the risk. Now, our false reliance on fossil fuels poses an additional risk to our safety should a large earthquake hit California. We need our decision-makers to consider this possibility when preparing for the Great Shakedown.  

Alarming as it is, Aliso Canyon is just the tip of the iceberg. SoCalGas, which is the nation’s largest methane gas distribution utility, operates another older and even more dangerous gas storage facility in Playa del Rey, adjacent to Los Angeles International Airport and the Hyperion Water Treatment plant. This facility, which is essentially a field of depleted oil wells repurposed to store gas, tends to leak when pressure builds, releasing an oily mist filled with dangerous substances like benzene, formaldehyde, toluene, and other carcinogens. The dangers posed prior to and during an earthquake could be disastrous. 

To add to the growing list of concerns, SoCalGas is aggressively pushing for the construction of a hydrogen hub in Los Angeles, with the possibility of storing hydrogen at its gas storage facilities. Hydrogen, being smaller and more explosive than methane, poses an even greater threat to public safety. Our legislators cannot allow for the building of another combustible fuel plant that could harm communities near the plant during a natural disaster.

It’s high time that our legislators and regulators take a stand to protect Californians beyond just climate concerns. Clean, renewable energy sources like wind and solar power have proven not to harm or endanger lives during natural disasters. They do not hinder the efforts of first responders, who are often forced to halt rescue operations when gas leaks are detected in the aftermath of disasters. While many may have a false sense of security, believing that shutoff valves will prevent explosions and contain the danger, the truth is that gas will continue to flow through the massive pipeline infrastructure across the state, putting everyone in its path at risk.

The time for action is now. We must swiftly transition to 100% renewable energy sources, not only for a livable climate but to ensure the health and safety of Californians during natural disasters. A “shakeout” should not translate into a “blowout.” After all, the only pipeline that doesn’t leak is the one that is never built. It’s time to put the safety and well-being of Californians first and leave the dirty energy past behind for good.

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Press Release – Fate of California’s Community Solar Plan, Primary Clean Energy Option for the Majority of Californians, to Be Determined in Coming Weeks https://votesolar.org/press-release-fate-of-californias-community-solar-plan/ Wed, 27 Sep 2023 19:43:39 +0000 https://votesolar.org/?p=8427 Stakeholders Meet Ahead of IRA Funding Deadline & Public Utility Commission’s Issuance of Community Solar and Storage Decision  OAKLAND, Calif. (September 26, 2023) – Today, a year after California Governor Newsom signed California’s community solar and storage bill, AB 2316, into law, Vote Solar held a stakeholder briefing on the state of community solar and environmental justice […]

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Stakeholders Meet Ahead of IRA Funding Deadline & Public Utility Commission’s Issuance of Community Solar and Storage Decision 

OAKLAND, Calif. (September 26, 2023) – Today, a year after California Governor Newsom signed California’s community solar and storage bill, AB 2316, into law, Vote Solar held a stakeholder briefing on the state of community solar and environmental justice in California with representatives from the diverse coalition that got the bill passed last year: the California Environmental Justice Alliance (CEJA), Coalition for Community Solar Access (CCSA), California Green New Deal Coalition, Natural Resources Defense Council (NRDC), and The Utility Reform Network (TURN).

WATCH: The State of Community Solar in California

“With no functional community solar plan in place, there is a real chance that California could miss out on a critical program to create solar for all,” according to CCSA’s Derek Chernow.

Despite generating the most solar energy in the country, 44 percent of California residents – primarily renters and impacted communities – cannot currently access clean solar energy due to the lack of a functioning community solar program in the state. Without a real community solar and storage program, the state risks losing up to $30 billion in state and federal incentives, including from the Inflation Reduction Act, that would allow more than 2 million people access to affordable, renewable, reliable power.

“This is a huge opportunity for the state. There is now the opportunity to make real progress and we’re calling on the PUC and the state leadership to really move this forward in an expedited way” said NRDC’s Merrian Borgeson.

50 U.S. states and territories have already shown interest in the competitive, $7 billion Environmental Protection Agency (EPA) Solar For All fund. While other states competing for the federal funds including New York and Massachusetts have active and robust community solar programs, California is last in terms of subscribers and success.

“Renters and low-income communities suffer the worst impacts of the climate crisis, and are largely locked out of the paths to benefit from our clean energy transition,” said CEJA’s Alexis Sutterman. “Right now, California has a major opportunity to change that.”

“We’re running a real risk that the clean energy future will not be equitable,” said California Green New Deal Coalition’s Zach Lou.

“In our view, California needs a viable community energy program. It’s long overdue. The existing voluntary subscription services offered by private utility companies are failing,” said TURN’s Matt Freedman.

With only a few weeks until the October 12 application deadline for key Solar For All funding from the Inflation Reduction Act, the speakers called on the California Public Utilities Community (CPUC) and the Governor’s office to act quickly to finalize a scalable community solar program and submit strong funding recommendations to the Environmental Protection Agency.

“As the world faces an imminent energy transition, community solar, with battery storage, offers the most scalable near-term renewable energy solution to enhance grid reliability and supply clean energy to residents across California,” said Vote Solar’s Emerald Sage.

To review a recording of this briefing, please click here.

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About Vote Solar

Vote Solar is an energy justice non-profit working towards a 100% clean energy future by bringing solar to the mainstream. Founded in 2002, Vote Solar advocates for clean energy in legislative and regulatory arenas at the state level, where most decisions about electricity are made. Despite powerful opposition, we use a winning combination of deep policy expertise, coalition building, and public engagement to get the job done.

https://votesolar.org/

 

Media Relations

Emily Samsel, Boundary Stone Partners

samsel@boundarystone.com

 

Emerald Sage, Vote Solar

esage@votesolar.org

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Vote Solar Responds to California’s Lawsuit Against Big Oil https://votesolar.org/vote-solar-responds-to-californias-lawsuit-against-big-oil/ Tue, 19 Sep 2023 17:19:00 +0000 https://votesolar.org/?p=8417 Vote Solar’s California Deputy Program Director, Andrea León-Grossmann, Statement on California’s Lawsuit Against Big Oil California’s groundbreaking lawsuit against major fossil fuel companies marks a pivotal moment in holding Big Oil accountable for its decades-long deception regarding climate change’s causes and consequences. These companies, including Exxon Mobil, Shell, BP, ConocoPhillips, Chevron, and the American Petroleum […]

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Vote Solar’s California Deputy Program Director, Andrea León-Grossmann, Statement on California’s Lawsuit Against Big Oil

California’s groundbreaking lawsuit against major fossil fuel companies marks a pivotal moment in holding Big Oil accountable for its decades-long deception regarding climate change’s causes and consequences. These companies, including Exxon Mobil, Shell, BP, ConocoPhillips, Chevron, and the American Petroleum Institute, concealed vital knowledge about their pollution’s devastating climate impact dating back to the 1960s, instead spending billions to mislead the public. California’s suit, aiming to establish an abatement fund for climate disaster recovery and resilience, is essential, as it joins over forty states and municipalities in seeking justice and restitution from the very entities responsible for the climate crisis. This fight is about fairness, accountability, and securing a sustainable future for all.

However, it is crucial that California, while pursuing this lawsuit, remains steadfast in its commitment to not invest any of the funds in false solutions touted by Big Oil, such as carbon capture. We must prioritize solutions that genuinely address the climate crisis. It is incumbent upon us to direct these resources towards supporting clean energy alternatives like solar and battery storage, which are not only environmentally friendly but also contribute to reducing our dependence on fossil fuels.

Additionally, as we seek climate justice, we should actively promote programs like community solar and virtual net metering. These initiatives empower communities to take control of their energy sources and reduce their carbon footprint. By embracing such programs, we can ensure that the benefits of clean energy are accessible to all, regardless of their economic circumstances.

In conclusion, we must remain resolute in our pursuit of climate justice, prioritizing genuine solutions and inclusive programs that pave the way for a sustainable and equitable future. Climate change is a crime, and it is time to make polluters pay for the damage they’ve caused while investing in a cleaner and more just energy future for all Californians.

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California’s Electrification Study – Part 1 https://votesolar.org/californias-electrification-study-part-1/ Fri, 23 Jun 2023 21:06:43 +0000 https://votesolar.org/?p=8070 Kevala releases Part 1 of an Electrification Study for CA’s 3 IOUs This blog provides an in-depth analysis of the High Distributed Energy Resources (DER) proceeding. A blog providing a short overview intended for all to understand will be released next week. Please contact Stephanie Doyle for questions at sdoyle@votesolar.org. Where the study came from […]

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Kevala releases Part 1 of an Electrification Study for CA’s 3 IOUs

This blog provides an in-depth analysis of the High Distributed Energy Resources (DER) proceeding. A blog providing a short overview intended for all to understand will be released next week. Please contact Stephanie Doyle for questions at sdoyle@votesolar.org.

Where the study came from – High Distributed Energy Resources (DER) proceeding overview 

In the summer of 2021, the High DER proceeding (Order Instituting Rulemaking (OIR) to Modernize the Electric Grid for a High DER Future) was launched at the CPUC. The proceeding is intended to prepare for the impact and potential investments to the grid of California’s electrification goals and consider changes to the current distribution planning process (DPP) in order to improve how Distributed Energy Resources are incorporated into deferral options at the three Investor Owned Utilities (IOUs). The proceeding will also look at possible “non-wires alternatives,” such as energy storage, demand response, and enhanced energy efficiency, which could obviate the need for massive investments in the IOU’s grid infrastructure, to mitigate such impacts. For a description of Vote Solar’s efforts in the proceeding as a whole, see our opening Blogs on California’s High DER Future. 

One of the major deliverables of Track 1 in this High DER proceeding was an Electrification Impacts Study, that was contracted by the CPUC to be completed by analytics company, Kevala. The EIS is intended to have two parts, and EIS Part 1, was released on May 10th, 2023 with an all-day webinar hosted by Energy Division staff and Kevala the following week on May 17th to discuss its findings and Kevala’s recommendations. 

 

Why is Vote Solar involved?

Vote Solar is a party in the High DER proceeding because we see an opportunity to improve how DERs are incorporated into distribution planning, and because of the ongoing inequities in how grid upgrades and planning are currently approached. We are hopeful that through this proceeding, there can be a deeper involvement of communities in the planning process for when and where DERs are incorporated into the grid, as well as a better valuation process of how DERs can provide benefits to the grid and the many issues we face, rather than solely being seen as a burden and increase to our peak load.

Vote Solar is also concerned that substantial capital investments by the IOUs in grid infrastructure may result in stranded costs, which would be borne by all customers. Under the current IOU business model, their rate of return (essentially, the IOUs’ profits) are largely based on the value of capital investments in the grid. This discourages them from leveraging customer or third-party owned DERs to mitigate or avoid infrastructure investments, which increase the rate bases on which their rates of return are calculated. Without changes to the IOU business model, which could include moving to an Independent Distribution System Operator (DSO) structure (to be addressed in a later phase of this proceeding), there is a significant financial incentive for them to maximize grid investments.

 

EIS Part 1 

The EIS is intended to help determine if there are new and improved approaches to distribution planning and how to accommodate the growth of DERs in California in a more cohesive, data-driven manner. The study is seen as a tool to help open a discussion on how DERs may impact the grid, and what mitigation strategies and policies could be deployed to reduce grid infrastructure costs incurred over the next few years and decades.

Kevala used a novel, highly granular, bottom-up approach for identifying where and when the distribution grid will need upgrades under specific scenarios. The study is intended to help determine the when and where of California’s electrification (although the electrification scenarios are narrowly defined in Part 1) through preliminary estimates of the scale of electrification impacts for the three IOUs. By using premise level predictions for 12 million properties across California to determine a baseline load and model DER adoption for specific technologies including solar, batteries, EVs and some building electrification, the hope is to achieve two objectives: 

  1. Estimating Grid Infrastructure Costs: The study aims to assess the unmitigated costs associated with achieving California’s electrification policies over an extended period by examining infrastructure requirements at a system level.
  2. Evaluating Planning Methods: The study seeks to explore new planning and analytical techniques, including scenario planning, to improve forecasting accuracy and assess the impact of DER growth on load predictions. 

Part 1, which was the most recently released and completed, analyzed customer and grid infrastructure from the three IOUs (SDG&E, PG&E and SCE) and then Kevala used AI computing to create customer net-load profiles. These net-load profiles are granular models looking at how customers currently use energy and how that will change across each household in California over time with the adoption of various technologies. Part 1 was intended to show the potential upgrades that would be necessary using traditional grid planning, with no mitigation measures included, to show a worst-case scenario if electrification continues with little policy or technological intervention or innovation. While this makes for an interesting, though unrealistic baseline, there are major issues with modeling electrification with zero mitigation measures. 

The EIS results highlight the rapid changes happening in California’s electricity grid, driven by various factors such as customer behaviors, technological advancements, energy policies, and climate change impacts. The study estimates that up to $50 billion in traditional electricity distribution grid infrastructure investments may be needed by 2035. This estimate reflects the potential distribution grid needs across the service territories of PG&E, SCE, and SDG&E. 

However, It’s important to remember that the EIS Part 1 results reflect the cost of unmitigated loads. This means that the high dollar amount of $50 billion in traditional electricity distribution investments by 2035 reflects an unrealistic, worst-case scenario, if nothing was done to help reduce the immense new load expected from electrification. Luckily, we are already committed to many mitigation measures, such as using batteries to store energy when it’s less expensive then discharging them during periods of peak demand, demand response, and other new measures that are being proposed at the legislative and regulatory levels in order to address these projected high costs. In fact, the Public Advocates Office recently released their own study, which predicted $15-20 billion in costs of upgrades by 2035, a significantly smaller (though still high) cost than what Kevala has put forward. 

The EIS study also shows a big need for infrastructure related to transportation electrification, which is expected to escalate rapidly by 2030 and increase even further by 2035. This shows the importance of planning for transportation electrification-related infrastructure in advance. Kevala models show that without mitigations, system-peak load will increase between 2025-2035 by 56% on average across the three IOUs. Kevala predicts transportation electrification will result in significantly greater grid impacts than behind-the-meter tariffs (such as NEM). 

There are admitted issues with the EIS Part 1, as Kevala and Energy Division pointed out both in the study and in the webinar that was held to go over the results. The EIS Part 1 was conducted before the Net Energy Metering tariff was finalized in January of 2023, which meant that the version in the study’s assumptions is incorrect. The scenarios used for PV were based on Nem 2.0 and the Proposed Decision in December 2022, which included a grid access charge as well as inaccurately represented the final export rate used in the new Net Billing Tariff (NEM 3.0). This makes it hard to say that the study is accurately representing how solar customers, or those looking to go solar, will respond to electrification. There are also issues with using the proposed PD and not the newest version of the Net Billing Tariff (NBT), since NBT necessitates purchasing energy storage storage with solar in order to be beneficial. The modeling that Kevala did, while assuming those with PV would eventually get batteries, may not have fully incorporated how closely tied these will be adopted going forward under the new regime. In addition, there is no indication that increasing efficiency over time for appliances and electric vehicles was taken into account in this analysis, such as increasing battery density mileage so less electric power is needed. There are also admitted issues with how Building Electrification and Transportation Electrification was modeled. While models are never perfect, especially when policy and technology updates happen almost monthly in California, there could be improvements to the assumptions used for Part 2 to improve the likely outcomes.

When it comes to considerations for equity, the EIS uses historical data from customers who’ve installed  solar and batteries, as well as EVs, to predict who is likely to adopt in the future. This is a reasonable assumption for modeling, but also leads to a repeating of existing inequities in the adoption of clean energy technologies, where those who can most afford to adopt do so, and ignores programs and policies that exist to counter those historical patterns. If we want electrification to be a more equitable transition than would naturally occur, we should be modeling the future we want to see, not solely what is expected to occur based on income and historical adoption rates.

Kevala includes a short section on energy burden, defined as the percentage cost of electricity relative to household income, including the quote, “(f)or all three IOUs, electrification of transportation could result in higher electricity burden under the current study assumptions”. They also suggest finding ways to incorporate impacts of electrification on energy burden for certain census tracts into Distribution Planning. While energy burden is one way to understand the equity implications of electrification and proliferation of DERs on communities, there needs to be a more holistic approach to how DERs can also offer benefits for communities. Consideration of the local impacts of reduced load from gas peaker plants due to more  non-wires alternatives in communities, or impacts on resilience compared to traditional utility infrastructure are two additional things to consider in Part 2 of the study to truly begin to dig into the equity implications and mitigation solutions available.

 

What Comes Next?

As described by Kevala, Part 2 of the EIS is intended to build on these preliminary findings and include updated forecasts from Part 1 to create a framework for investment in the grid. Part 2 is also intended to be where mitigation measures are investigated in more detail, including identifying opportunities to use non-wires alternatives instead of traditional electric infrastructure in order to reduce costs and improve DER integration.

While the EIS Part 1 is an impressive first step in understanding the future impacts of electrification on the California grid, we are most interested in how DERs can be viewed and modeled as solutions to mitigate and avoid excess cost and buildout, rather than solely as a burden on the grid. Kevala and the CPUC have expressed that Part 2 of the EIS should look at just this, and are accepting comments from stakeholders to understand the types of mitigation measures (as well as general updates to the model) that should be conducted. Part 2 of the EIS, we believe, should also look at how California’s inequality when it comes to our grid infrastructure will play out in any electrification scenarios going forward. Without planning for the inequity we know is baked into our decision making and current grid infrastructure, we are likely to repeat the same processes that have resulted in abysmal resilience and reliability for our lowest income and most disadvantaged communities. 

While understanding the worst case scenarios of electrification cost on the grid is an interesting endeavor,we know we currently have ways to mitigate and avoid those costs and we also know that with the correct policies in place, we can continue to create an equitable electrification process that brings all Californians to the decarbonized future we need and want. 

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California Advocates Commend Proposed Investments in Community Solar and Storage https://votesolar.org/california-advocates-commend-proposed-investments-in-community-solar-and-storage/ Fri, 26 May 2023 14:04:33 +0000 https://votesolar.org/?p=7916 $400 million allocation signals continued momentum for community solar and storage Community solar advocates are applauding the California Senate Budget Committee for proposing a $400 million community solar and storage investment in the updated Budget and Fiscal Review, released on May 25th, 2023.  Earlier this week, a coalition of environmental and environmental justice advocates submitted […]

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$400 million allocation signals continued momentum for community solar and storage

Community solar advocates are applauding the California Senate Budget Committee for proposing a $400 million community solar and storage investment in the updated Budget and Fiscal Review, released on May 25th, 2023. 

Earlier this week, a coalition of environmental and environmental justice advocates submitted a letter to legislative leadership, requesting the $400 million appropriation from Clean Energy Reliability Investment Plan (CERIP) funding. The groups specifically urged the legislature to fund projects that deliver bill savings for low-income customers and increase local reliability in low-income and marginalized communities. 

Community solar and storage expands access to affordable solar by allowing all utility customers —regardless of housing type — to subscribe to a solar array and receive direct credits off their utility bills  for renewable energy generated. Last September, California passed the landmark Assembly Bill 2316, which opened a process to create a community solar and storage program and requires 51% of program capacity to serve low-income customers. Solar and equity advocates celebrated the bill’s potential to accelerate the state’s clean energy transition, while bringing financial relief to those struggling with disproportionately high energy bills and utility debt. While the program is currently being debated and designed at the California Public Utilities Commission, advocates are requesting state funding to support enhanced equity benefits of any new community solar and storage program and make California more competitive for securing funding from the $7 billion “Solar for All” pot exclusively earmarked for expanding solar access for low-income and disadvantaged communities.

“The $400 million funding will help us build on the enormous potential of AB 2316, bringing affordable solar and storage within reach for many more California families,” says Stephanie Doyle, California Regulatory Director for Vote Solar. “Thank you to the Senate Budget Committee for recognizing the need for bold investments in equitable and impactful clean energy solutions. This commitment will help California secure federal investments that can help expand access and benefits for more Californians.” 

Governor Newsom and the state assembly are currently considering their own “budget trailer bills,” which in California refers to bills that implement policies outlined in the state budget. The bills will be negotiated and final versions will be voted on before the legislative session ends in September.

“This proposed commitment from the Senate will go a long way in helping frontline communities to access clean energy. The Governor and the state assembly should follow their lead and champion environmental justice by approving a $400 million appropriation from the CERIP funding for community solar and storage,” says Alexis Sutterman, Energy Equity Program Manager at the California Environmental Justice Alliance. “California is far behind other states in community solar and storage when it should be leading. Community solar and storage is a critical pathway to reliably retire polluting peaker gas plants and bring bill savings and improved air quality to low-income and environmental justice communities.”

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The 2023 Update on Community Solar in California https://votesolar.org/community-solar-in-california-vote-solars-2023-update/ Wed, 05 Apr 2023 20:30:54 +0000 https://votesolar.org/?p=7686 California is well known for being a leader when it comes to energy and climate policy. We’ve led the way in reducing emissions, committing to electric vehicles, and pushing our utilities to embrace renewable energy. But there is one area where California has lagged behind many other U.S. states and missed out on an opportunity […]

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California is well known for being a leader when it comes to energy and climate policy. We’ve led the way in reducing emissions, committing to electric vehicles, and pushing our utilities to embrace renewable energy. But there is one area where California has lagged behind many other U.S. states and missed out on an opportunity to spread solar energy beyond its usual suspects. That policy is community solar and storage.

But thanks to the work of a strong coalition of solar developers, ratepayer advocates, and environmental justice advocates––including Vote Solar––the state legislature passed Assembly Bill 2316 from Assembly Member Ward. This bill has opened up California to the potential of a new market for solar energy and storage and a far more equitable way to ensure more people in California who have not had access to solar before have access now, alongside the needed benefits of local reliability that the California grid so desperately needs. So now that the bill has passed, what happens next?

What’s Happening with Community Solar in California

Now the work of ensuring that a well-designed, truly equitable, and functioning community solar and storage program is created in California. This happens through the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC), each of which is in charge of designing, and potentially funding, any new community solar and storage program. Vote Solar is currently a party to the proceeding (A. 22-05-022), which means we will work within the regulatory process to weigh in with testimony and legal briefs, working alongside partners from the AB 2316 effort. Over the next 6-8 months, we will work to ensure that the design of the tariff used to pay developers for any community renewable program is created using the lessons learned from Vote Solar’s work in other states and from the guidance of communities on the ground for whom a community solar and storage program will most benefit. 

Included in AB 2316 was guidance for the CPUC, including a review of the existing green tariff programs in California. These programs have mostly proven too restrictive and limited in scope, making them difficult to scale and hard for solar developers to access. In the initial opening testimony from many of the parties in the proceeding, the existing programs were shown to be ineffective and costly, which is the opposite of what AB 2316 requires. AB 2316  includes language stating that if the current programs are found to be ineffective, a new program can be created with detailed requirements, including a 51% carveout for low-wealth subscribers. 

Community Solar Proceeding

Vote Solar submitted opening testimony in the proceeding co-authored with California Environmental Justice Alliance and Natural Resources Defense Council, calling out the ways to meet the requirements of AB2316 while upholding equity and prioritizing disadvantaged communities in the creation of any new community solar and storage program. Our testimony included a discussion of providing maximum bill savings, especially for low-wealth and disadvantaged community subscribers to any project as well as the necessary consumer protections needed to protect subscribers from bad actors. 

The Commission held a workshop on February 27th where parties presented their evaluations and proposed new programs, which included a presentation on the Net Value Billing Tariff by CCSA (Coalition for Community Solar Access). The NVBT is currently the only new community solar and storage proposal in the proceeding and includes promising design aspects that Vote Solar supports, including valuing projects on an avoided cost basis, using net billing to ensure one bill for subscribers, extensive consumer protections, and potential opportunity for substantial savings for subscribers, provided there is added funding available from federal or state incentives.  

What’s Next

The California Energy Commission is currently deciding how different buckets of funding for reliability and resiliency will be allocated, and Vote Solar believes that in order to achieve an equitable program with substantial savings for low-wealth subscribers, we need to see a proportion of that funding go to community reliability projects, such as community solar and storage that can provide benefits for both the grid and subscribers of those projects. Resources could support higher financial savings for low-wealth participants of community solar and storage projects and could support projects that demonstrate pathways to community ownership. 

We believe that the sooner we can get a working and equitable community solar program up and running in California, the better for our renters, disadvantaged communities, and everyone who has struggled to access the benefits of solar and storage. The Commission and the CEC have the opportunity now to create and provide incentive funding for a program that provides relief during net peak hours so California can keep the lights on, provide meaningful savings for people’s energy bills, opportunities for community ownership and expand access to solar and storage for renters. Those goals are ones we plan to keep in mind as we work within this proceeding. Let’s get to the front of the nation again with the most equitable community solar and storage program that truly opens up access and savings for all.

Community solar trees
Community solar trees

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