A tariff allowing dairies operating biogas plants to sell power to Pacific Gas & Electric and Southern California Edison at a favorable rate was approved by the California Public Utilities Commission February 14. The so called “feed-in” tariff also enables drinking water and sewage treatment facilities to sell power at a fixed rate to the investor-owned utilities in California. Utilities will receive credit under the renewable portfolio standard for power they purchase under this regulation. “Up until now, only large renewable projects were able to effectively participate in the renewable portfolio standard program,” said Mike Peevey, CPUC president. “Now, small facilities can easily contribute to this program.” Previously, small-scale project proponents could sell power to utilities but had to accept what they considered onerous conditions imposed by the three utilities. The tariff requires PG&E, Edison,and San Diego Gas & Electric to buy power from the projects at a market price set by the CPUC, which this year is just above 9 cents/kWh. Only facilities generating 1.5 MW of power or less will be eligible to sell under the tariff. Project operators availing themselves of the tariff are capped at a cumulative statewide generating capacity of 480 MW. Wastewater and drinking water plant operators are expected primarily to make power with small-scale hydro, solar, and biogas technologies. Generation by the water agencies under the tariff is capped at 250 MW. The remainder of the generating capacity allowed --230 MW--is reserved largely for dairy biogas plants that sell power to PG&E and Edison. Water agencies and biogas advocates welcomed the tariff. The program will provide “a great incentive for public water and wastewater agencies to expand our production of renewable power,” said Martha Davis, Inland Empire Utilities Agency executive manager for policy development. This will help them offset their increasing energy needs. It also is expected to “expand opportunities to reduce greenhouse gas emissions and produce clean energy on farms and dairies throughout California,” added Michael Boccadoro, Agricultural Energy Consumers Association executive director. Biogas plants at dairies achieve a net reduction in greenhouse gases by burning methane that otherwise would be emitted by cow manure. Even though the farms and dairies would emit carbon dioxide, it is a less powerful greenhouse gas than methane. The feed-in tariff implements AB 1969, enacted into law in 2006. The measure is intended to boost use of renewable energy and cut greenhouse gas emissions, said its author state Senator Leeland Yee (D-San Francisco). He served in the Assembly at the time the bill was enacted.