SoCalGas - Legislation and Regulatory Background
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Legislation and Regulatory Background

Date  Bill Number Description


AB 970

Assembly Bill required the CPUC to initiate load control and distributed generation activities.


D 01-03- 073

CPUC Decision complying with Assembly Bill 970 and establishing the Self Generation Incentive Program. Implementation of PU Code Section 399.15(b), Paragraph 4-7; Load Control and Distributed Generation Initiatives.


D. 01-06-035

CPUC Decision establishing waste heat recovery standards for SGIP. Requires Energy Branch to develop reliability criteria.


Letter on Reliability Criteria

CPUC Energy Branch Letter establishing reliability criteria requirements for level 3 technology applications received after January 1, 2002


D. 02-02-26

CPUC Decision addressing eligibility of customers served by electric municipalities, maximum size and annual program budget.


D. 02-04-004

CPUC Decision clarifying Applicant’s ability to receive incentive funding from multiple sources. Addressing SCAQMD’s PTM of Decision 01-03-073


D. 02-09-051

CPUC Decision adding technology level 3-R, which establishes a new level of incentives. Contains specific requirements for projects using renewable fuels for level 3-R. Addressing Capstone’s PTM


AB 1685

  • Extended the SGIP through 2007
  • Required that projects commencing January 1, 2005 meet a NOx emission standard
  • Required that projects commencing January 1, 2007 meet a more stringent NOx emission standard and a minimum system efficiency standard.
  • Established a NOx emission credit that can be used by combined heat and power (CHP) units to meet minimum system efficiency standard


AB 1684

Exempts certain projects from NOx emission standards set forth in AB 1685 that meet waste gas fuel and permitting requirements.


Decision 04-12-045

Modified SGIP to incorporate provisions of AB 1685:

  • Eliminates maximum percentage payment limits
  • Reduces incentive payments for several technologies
  • Expands opportunities for public input regarding developing a declining incentive schedule, developing an exit strategy and adopting a data release format
  • Required an application fee for all projects received after 1/1/2005 in order to deter against “phantom projects”.  This requirement was removed beginning in 2007 except in the case of new technologies that are in the process of certification.


Decision 06-01-047

Established the California Solar Initiative (CSI) and ordered changes in the 2006 SGIP to accommodate the transition of solar program elements to the CSI beginning January 1, 2007.


AB 2778

  • Extended SGIP until January 1, 2012
  • Limited eligible technologies beginning January 1, 2008 to fuel cells and wind systems that meet emissions standards required under the distributed generation certification program adopted by the State Air Resources Board
  • Requires that eligibility of non-renewable fuel cell projects be determined either by calculating electrical and process heat efficiency according to PU Code 216.6 or by calculating overall electrical efficiency


Decision 08-04-049

Removed the 1 MW cap on incentives for 2008 and 2009 allowing projects to receive lower incentives on a tiered structure for the portion of a system over 1 MW.


AB 2267

Requires an additional 20% incentive for the installation of eligible distributed generation resources from a California Supplier. This additional incentive is applied only to the technology portion of the incentive; the additional incentive for renewable fuels is not included in calculating the 20%.


Decision 08-11-044

  • Determined that Advanced Energy Storage systems coupled with eligible SGIP technologies will receive an incentive of $2/watt of installed capacity.
  • Revises the process for the review of SGIP program modification requests


Decision 09-09-048

Grants a petition to modify SGIP policies expanding eligibility for Level 2 incentives to include “directed biogas” projects where renewable fuel is nominated via contract.


Decision 10-02-017

  • Revises Decision 08-11-044 so that Advanced Energy Storage systems coupled with fuel cells must meet the site specific requirements for on-site peak demand reduction and be capable of discharging fully at least once per day in order to be eligible for the $2/watt incentive from the self-generation incentive program.
  • Determines that Advanced Energy Storage systems coupled with eligible technologies under the SGIP must install metering equipment capable of measuring and recording interval data on generation output and Advanced Energy Storage system charging and discharging.


CPUC D.11-09-015

•      Adds eligibility requirements based upon greenhouse gas reductions.
•      Establishes an on-site emission rate that projects must beat to be eligible for SGIP participation of 379 kg CO2/MWh.
•      Adds Waste Heat to Power, Pressure Reduction Turbine, Internal Combustion Engine – CHP, Microturbine – CHP, Gas Turbine – CHP, Stand-Alone AES technologies to the list of eligible technologies.
•      Revises the incentive levels for all technologies and adds a $2.00/Watt biogas adder.
•      Directs that Directed Biogas can only be procured from in-state suppliers.
•      Eliminates maximum size restrictions given a project meets on-site load. Sets a 30 kW minimum for wind and renewable fueled fuel cell projects.
•      Adopts a hybrid payment structure with 50% upfront, 50% PBI based on kWh generation of on-site load for projects 30 kW and larger.  Projects under 30 kW will receive the entire incentive upfront.
•      Adopts the following assumed capacity factors to be used in PBI calculations: 10% for AES, 25% for wind, and 80% for all other distributed energy resources.
•      Implements incentive decline in the following manner 10% per year for emerging technologies and 5% per year for all other technologies, beginning 1/1/2013.
•      Adopts a supplier concentration limit where no more than 40% of the annual statewide budget available on the first of a given year may be allocated to any single manufacturer’s technology during that year.
•      Establishes a maximum project incentive of $5 million.
•      Establishes that the minimum customer investment in a project must be 40% of eligible project costs.
•      Establishes an SGIP incentive budget allocation of 75% for renewable and emerging technologies, and 25% for non-renewable technologies.  
•      Determines that the Program Administration Budget will be reduced to 7%.
•      Establishes that projects exporting to the grid are eligible for SGIP incentives as long as they do not export more than 25% on an annual net basis.
•      Makes an energy efficiency audit mandatory for participation in SGIP unless an extensive audit has been conducted within five years of the date of the reservation request. 
•      Establishes an application fee that is 1% of the amount of incentive requested
•      Limits all projects to one six month extension. Request for a second extension may be made to the Working Group.
Extends the warranty period to 10 years



ADVICE LETTER COMPLYING WITH RESOLUTION E-4519 Proposed Amendments to the Self-Generation Incentive Program Handbook to Conform to Resolution E-4519. Changes to the RTE for AES technologies and elimination of certain data formatting requirements for PDP providers


ADVICE LETTER No. 3253-G/3940 –E

Proposed Revisions to the Self-Generation Incentive Program Handbook to Implement Decision (D.) 11-09-015: Implementation of the Hybrid-Performance-Based Incentive Payment Structure; Metering and Monitoring Protocols; Other Amendments.


ADVICE LETTER No 3253-G-A/3940–E-A

Supplemental Filing: Proposed Revisions to the Self-Generation Incentive Program Handbook to Implement Decision (D.) 11-09-015: Implementation of the Hybrid-Performance-Based Incentive Payment Structure; Metering and Monitoring Protocols; Other Amendments


Decision 12-05-037

Orders that all technologies previously eligible for the Emerging Renewables Program should be immediately eligible for the SGIP
Determines that consolidating the ERP and SGIP programs now is preferable to perpetuating two competing programs that serve the same types of technologies and policy purposes

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