HomeMy WebLinkAbout1DCITY COUNCIL STAFF REPORT
DATE: January 13, 2022 CONSENT CALENDAR
SUBJECT: RESOLUTION IN SUPPORT OF NET ENERGY METERING
FROM: Justin Clifton, City Manager
BY: Anthony J. Mejia, City Clerk
SUMMARY:
The City Council is requested to adopt a resolution in support of Net Energy Metering
(NEM) and authorize Staff to transmit the resolution to Governor Newsom, State Senator
Melendez, Assembly Member Mayes, and members of the California Public Utilities
Commission (CPUC).
RECOMMENDATION:
Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, IN SUPPORT OF NET ENERGY METERING.”
BACKGROUND:
Customers who install small solar, wind, biogas, and fuel cell generation facilities to serve
all or a portion of on-site electricity needs are eligible for the state's Net Energy Metering
(NEM) program. NEM allows customers who generate their own energy to serve their
energy needs directly on-site and to receive a financial credit on their electric bills for any
surplus energy fed back to their utility.
The current NEM program was adopted by the California Public Utilities Commission
(CPUC) in Decision (D.)16-01-044 on January 28, 2016. The program provides customer-
generators rate credits for energy exported to the grid and requires them to pay charges
that align NEM customer costs more closely with non-NEM customer costs. NEM is
designed to support the installation of customer-sited renewable energy generation.
Recently, the CPUC launched a formal proceeding to update the current NEM structure.
The new rulemaking is referred to as NEM 3.0 because this is the third iteration of the
NEM program. Over 17 proposals have been submitted to the CPUC for consideration,
including a joint proposal from the state’s big three investor-owned utilities (IOUs), Pacific
Gas & Electric, Southern California Edison, and San Diego Gas & Electric. Opponents of
the big three IOUs’ joint proposal claim that it would hinder the state’s highly successful
Item 1D - 1
City Council Staff Report
January 13, 2021 -- Page 2
Resolution in Support of Net Energy Metering
rooftop solar market which is a key strategy in the state reaching its lofty clean energy
and environmental goals.
NEM 3.0 is currently progressing through the necessary steps at the CPUC as part of the
rulemaking proceeding. While it would be premature at this time to advocate for one
particular proposal of the over 17 submitted, the City Council should adopt the attached
Resolution, which is general in nature but includes key goals and themes that are
consistent with the City’s Sustainability Goals.
These include:
•Protecting and expanding rooftop solar via a strong succeeding NEM tariff and
expanding clean energy access by making it easier, not harder, for people to adopt
rooftop solar and energy storage in order to meet California's ambitious clean
energy targets and deploy solar in all communities and households, particularly
those struggling to pay for electricity; and
•Expressing its support for the items as stated above, including urging the CPUC
to:
(i)strengthen NEM to expand access to all households, particularly those of low-
and moderate-income;
(ii)expand access to other clean energy technologies that pair with solar, such as
batteries;
(iii)ensure that the solar installations continue to grow in order to meet State and
City climate goals; and
(iv) exclude provisions set forth in the IOU Proposal such as high monthly fixed
fees and reducing or eliminating credits for sharing electricity with the power
grid.
While the big three IOUs’ plan and the solar and environmental advocates’ plan are
largely in opposition, a consensus is emerging that a fair and effective rooftop solar policy
must share its benefits with low-income and disadvantaged communities that have
previously been left out.
FISCAL IMPACT:
There is no fiscal impact as a result of adopting this resolution.
REVIEWED BY:
City Clerk: Anthony Mejia
Director of Development Services Flinn Fagg
City Manager: Justin Clifton
Attachment:
1.Draft Resolution
Item 1D - 2
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, IN SUPPORT OF NET
ENERGY METERING
WHEREAS, Net Energy Metering (NEM) is designed to support the installation of
customer-sited renewable energy generation; and
WHEREAS, NEM allows customers to receive bill credits for power generated by
their solar system and shared with the power grid and ultimately save money on their
utility bills; and
WHEREAS, NEM is what has allowed solar to become increasingly accessible to
low- and moderate-income households; and
WHEREAS, the California Public Utilities Commission (CPUC) has launched a
formal proceeding to update the current NEM structure to be introduced in 2022 as NEM
3.0 and a number of parties have submitted their proposal for what they believe NEM 3.0
should look like; and
WHEREAS, the California Investor Owned Utilities (IOUs), Pacific Gas and
Electric, San Diego Gas & Electric, and Southern California Edison, have submitted a
joint proposal (the “IOU Proposal”) that calls for drastic changes to NEM that would make
customer-sited renewable energy more expensive, increase the amount of time it takes
for customers to pay off their systems, and ground to a halt the installation of distributed
solar in California; and
WHEREAS, The IOU Proposal would make it impossible for customer-sited
renewables to continue to grow sustainably as mandated by law as a result of high
monthly fixed fees for all solar installations, and slashing credits customers receive for
sharing their excess electricity with the power grid; and
WHEREAS, proposals submitted to CPUC by Protect Our Communities
Foundation, California Solar & Storage Association, Vote Solar, GRID Alternatives, Solar
Energy Industries Association, and others not only would encourage new solar adoption
but also include additional subsidies for low-income customers; and
WHEREAS, California cannot meet its clean energy targets in time with utility-scale
solar alone and needs to triple the amount of rooftop solar, as reported by the California
Energy Commission 2021 SB 100 Joint Agency Report Summary; and
WHEREAS, protecting rooftop solar and expanding access to rooftop solar in
communities of concern will help California as well as our own city to move toward 100
percent clean energy, lessen the impacts of the climate crisis, and reduce climate
injustices from dirty energy; and
WHEREAS, we are in a climate crisis and need to make the transition to clean
energy more accessible.
Item 1D - 3
Resolution No.
Page 2
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Palm Springs
that it supports protecting and expanding rooftop solar via a strong succeeding NEM tariff
and expanding clean energy access by making it easier, not harder, for people to adopt
rooftop solar and energy storage in order to meet California's ambitious clean energy
targets and deploy solar in all communities and households, particularly those struggling
to pay for electricity;
BE IT FURTHER RESOLVED that the Palm Springs City Council urges the CPUC
to:
(i)strengthen NEM to expand access to all households, particularly those of low- and
moderate-income;
(ii)expand access to other clean energy technologies that pair with solar, such as
batteries;
(iii)ensure that the solar installations continue to grow in order to meet State and City
climate goals; and
(iv) exclude provisions set forth in the IOU Proposal such as high monthly fixed fees,
and reducing or eliminating credits for sharing electricity with the power grid.
BE IT FURTHER RESOLVED that that copies of this Resolution shall be sent to
Governor Gavin Newsom, State Senator Melissa Melendrez, Assemblymember Chad
Mayes, and members of the California Public Utilities Commission Board.
ADOPTED this __ day of ______, 2022.
Justin Clifton, City Manager
ATTEST:
Anthony J. Mejia, MMC
City Clerk
Item 1D - 4
Resolution No.
Page 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on _______________________,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Springs, California, this ______ day of ______________, _________.
Anthony J. Mejia, MMC
City Clerk
Item 1D - 5