TITLE
Recommendation to direct staff to implement a Solar Water Heating Incentive Program pursuant to California Assembly Bill 797;
Adopt resolution authorizing City Manager, or designee, to execute a contract with the Center for Sustainable Energy of San Diego, CA, in the amount of $60,510, and authorize a 10 percent contingency in the amount of $6,051, for a total contract amount not to exceed $66,561 to administer Solar Water Heating Incentive Program; and
Increase appropriations in the Gas Fund (EF 301) in the Energy Resources Department (ER) by $1,066,561. (Citywide)
DISCUSSION
In October 2017, the State Legislature enacted a bill (AB 797 - Solar Thermal Systems), which revised and extended the Solar Water Heating and Efficiency Act of 2007 (AB 1470) through July 31, 2020. Both AB 797 and AB 1470 are intended to promote the installation of solar thermal systems statewide. AB 797 specifically requires each local publicly-owned utility providing gas service to adopt, implement, and finance a Solar Thermal System Incentive Program (Program) to incentivize solar water heating systems. Implementation of the Program supports greenhouse gas reduction goals identified in the Global Warming Solutions Act of 2006 (AB 32) and meets the statutory requirements in AB 1470. A solar water heating system, as defined in AB 1470, is a solar energy device with the primary purpose of reducing demand for natural gas through water heating, space heating, or other methods of capturing energy from the sun to reduce natural gas consumption in a home, business, or any building receiving natural gas that is a utility retail customer that meets or exceeds certain eligibility criteria.
As required through AB 797, the incentives will be funded through a $0.0125/therm State surcharge implemented for this purpose and will be displayed as a separate line item on customer bills. This surcharge amounts to an estimated $0.33 increase on the average residential monthly bill. The Program...
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