On December 11th, the California Public Utilities Commission (CPUC) issued a Proposed Decision extending the ratepayer-funded Self-Generation Incentive Program (SGIP) through 2024, and prioritizing $1.2 billion to increase the resilience of residents and local critical infrastructure to Public Safety Power Shutoff (PSPS) events. Funding for the program has been significantly increased, and the applicant base now includes residents in RCRC member counties with medical needs, in addition to critical infrastructure.
The SGIP program collects $166 million annually, and uses those funds for distributed generation and energy storage projects. A recent CPUC decision redirected $100 million in unutilized SGIP funding to PSPS resiliency projects for critical infrastructure and low-income and medically sensitive customers. Under the new Proposed Decision funds collected between 2020-2024 will be allocated as follows:
- 63% ($512.8 million of funds collected 2020-2024) to an Equity Resiliency Budget for residential and nonresidential energy storage projects for customers with critical resiliency needs. Total funding for this pot rises to $612.8 million through 2025 after factoring in the $100 million reallocation noted above.
- Residential customers eligible for funding include those residing in a Tier 3 or Tier 2 High Fire Threat District (or whose electricity was shut off during two or more PSPS events) and who are low income, eligible for the medical baseline program, or who have notified the utility of a serious illness or condition that could become life threatening if electricity is disconnected.
- Households relying on electric pump wells for water supplies are eligible if located in a Tier 3 or Tier 2 High Fire Threat District or if the electricity was shut off during two or more PSPS events.
- Nonresidential customers eligible for funding are those who provide critical facilities or infrastructure to a low-income or CalEnviroScreen community located in a Tier 3 or Tier 2 High Fire Threat District (or whose electricity was shut off during two or more PSPS events).
- Critical facilities and infrastructure eligible for funding include police stations; fire stations; emergency response providers; emergency operations centers; 911 call centers; medical facilities (hospitals, skilled nursing facilities, nursing homes, blood banks, health care facilities, dialysis centers, and hospice facilities); public and private gas, electric, water, wastewater, or flood control facilities; jails and prisons; locations designated by utilities to provide assistance during PSPS events; locally designated cooling centers; homeless shelters; grocery stores, corner stores, markets, and supermarkets with average annual gross receipts of $15 million or less; independent living centers; and food banks.
- Residential customers eligible for funding include those residing in a Tier 3 or Tier 2 High Fire Threat District (or whose electricity was shut off during two or more PSPS events) and who are low income, eligible for the medical baseline program, or who have notified the utility of a serious illness or condition that could become life threatening if electricity is disconnected.
- 12% ($122.1 million of funds collected 2020-2024) for large energy storage systems over 10 kilowatt hours. Total funding for this pot is $314 million after factoring in previously unexpended allocations.
- 7% ($57 million of funds collected 2020-2024) for small residential energy storage systems, with a “soft target” that half of those funds go to residential customers living in Tier 3 or Tier 2 High Fire Threat Districts or whose electricity has been turned off during two or more PSPS events. Total funding for this pot is $60.1 million after factoring in previously unexpended allocations.
- 3% ($24.4 million of funds collected 2020-2024) for energy storage systems for low income residential customers. Total funding available for this pot is $31.7 million after factoring in previously unexpended allocations.
- 15% ($122.1 million through 2025) for renewable generation.
The CPUC made many notable changes to improve SGIP Program effectiveness, including significantly increasing subsidy levels to ensure that low-income and medically sensitive residents and rural communities can utilize the program. Several other new mechanisms increase funding for longer-duration energy storage systems and provide additional incentives for large scale storage projects for non-residential customers with critical resiliency needs. These important changes help better tailor the SGIP program to the types of projects needed to cope with longer-term PSPS events.
Applications for small-scale residential equity resiliency budget funds will be accepted beginning no later than March 1, 2020. Applications for nonresidential energy storage projects for customers with critical resiliency needs will be accepted beginning April 1, 2020.
RCRC supported AB 1144 (Friedman, Chapter 394, Statutes of 2019), which directed the CPUC to allocate at least $16.6 million in 2020 to support PSPS resiliency projects at critical facilities. Since then, RCRC has strongly advocated for additional funding to mitigate the impact of PSPS events on critical facilities and infrastructure and medically sensitive residents. The CPUC’s Proposed Decision increases that allocation to $202.6 million for 2020 alone (including $100 million that was rededicated for these purposes from a previously unutilized set-aside for equity projects) and dedicates $613 million for these purposes through 2025.