Self-Generation Incentive Extended by New Law

By Published On: October 18, 2003

On the last day to sign new bills into law, the outgoing Governor Gray Davis ratified legislation that would keep alive the program providing incentives to renewable and super ?clean? distributed generation (DG) owners. Under AB 1685 by Assemblymember Mark Leno (D-San Francisco), solar- and wind-powered units will be able to receive incentives until 2008. It would also require fossil-fueled DG to meet certain air standards for nitrogen oxides and more stringent standards in the beginning of 2007. ?This is a good bill and will help out the business guys,? said John White, head of the Center for Energy Efficiency and Renewable Technologies. The program, run by the California Public Utilities Commission, offers $4.50 per watt but only up to half the total installation cost of clean distributed energy. It is funded by distribution charges in utility bills, which adds up to about $125 million each year. The CPUC planned to terminate the program on December 31, 2004 although there was no statutory sunset date.

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