§ 18.1.

FINDINGS

A. Over the past year the San Francisco Solar Task Force (the “Solar Task Force”) was convened by Assessor-Recorder Phil Ting to provide analysis and policy proposals on how best to increase the development of solar energy in San Francisco.

B. The Solar Task Force report noted recent California Energy Commission data that show that average cost per kilowatt of solar energy installed in San Francisco is currently above the average cost of seven surrounding Bay Area counties.

C. According to data collected from the California Energy Commission and the California Public Utilities Commission, San Francisco now ranks last in the Bay Area in terms of the solar energy installed per capita.

D. The San Francisco Public Utilities Commission (the “SFPUC”) serves 16 percent of the City’s electrical demand, electric service providers serve 8 percent and Pacific Gas & Electric serves the remaining 76 percent. The SFPUC has installed 2 megawatts of solar generating capacity as well as 4 megawatts of methane gas cogeneration capacity, which projects have bolstered the in-City renewable energy portfolio. In addition, the SFPUC is supplementing its renewable energy generation portfolio with 25 MW of purchased geothermal generation.

E. The SFPUC is currently undertaking the development of additional large scale renewable energy generation assets within the City with the objectives of expanding and diversifying the renewable energy resources available to City departments and other SFPUC customers, boosting the City’s clean energy industry and improving overall in-City energy reliability. However, there is a need for further initiatives to stimulate the growth in the City’s supply of renewable energy.

F. The SFPUC is pursuing the establishment of Community Choice Aggregation (“CCA”) within the City. Implementation of CCA will allow the SFPUC to partner with private enterprise, leverage the purchasing power of a wider customer base and access the capital markets on a broader scale in order to expand its renewable energy generation asset portfolio.

G. The Solar Task Force recommended implementation of a Solar Energy Incentive Program as one method to address this cost trend, in that an increase in private demand combined with appropriate measures to attract investment in the City’s solar manufacturing and installation industries over the long term could reduce the overall cost of solar energy as costs of importing such manufacturing technology and installation expertise are reduced or eliminated and economies of scale are introduced to the in-City solar industry.

H. A successful solar incentive program would increase the installation of solar power, thus providing greater supply during peak demand times during the day and improving the reliability of in-City generation capacity using clean solar energy.

I. The development of a more efficient and cost-effective in-City solar manufacturing and installation industry over the long term would result in savings for the SFPUC’s solar projects.

J. The City has established a goal of reducing greenhouse gas emissions to 20 percent below 1990 levels by 2012.

K. In view of the City’s objectives in addressing the challenge of climate change, the positive benefits for the City’s overall power consumption market and the particular benefits for the SF-PUC’s Power Enterprise, the SFPUC intends to allocate certain power revenues previously budgeted to renewable energy development and energy efficiency projects towards funding the implementation of the solar incentive program described in this Chapter, with the objective of providing an appropriation of $2 million to $5 million annually over the ten years commencing with fiscal year 2008-2009.

L. The City and the SFPUC intend this program to complement the SFPUC’s renewable energy capital programs, including CCA, by attracting additional investment that will expand the development of renewable energy within the City and will spread the costs and risks of that development across a more diverse range of stakeholders.

M. As a complement to this initiative the SFPUC, the Mayor and the Board of Supervisors intend to pursue the establishment of a stable rate structure for all of the SFPUC’s power customers, which would enable the SFPUC to become a creditworthy bond issuer and to finance the City’s own renewable energy development projects on a more advantageous tax-exempt basis.

History

(Added by Ord. 102-08, File No. 071679, App. 6/18/2008)

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