Promote Low- and Non-CO2-Emitting Distributed Generation (EGU Action 2.9)

Encourage the development of customer-sited low- and non-CO2-emitting distributed generation (DG) through a combination of regulatory changes and incentives as begun with the passage of Senate Bill 451 (SB 451) in the 2008 Session. These distributed generation resources can include renewable power sources such as solar photovoltaic systems, wind power systems, biogas and landfill gas-fired systems, geothermal generation systems, and systems fueled with biomass, as well as extremely efficient fossil fuel fired cogeneration or combined heat and power. The distributed electricity generating systems provide electricity system benefits such as avoided capital investment and avoided transmission and distribution losses, while also displacing fossil-fueled generation and thus reducing greenhouse gas emissions. SB 451 authorizes rate recovery for electric public utilities investments in distributed energy resources located on the premises of a retail customer of the electric public utility. Additional policies designed to encourage and accelerate the implementation of customer-sited renewable distributed generation could include direct incentives for system purchase, market incentives, including "net metering", education and training, state goals or directives, and favorable rules for interconnecting renewable generation systems with the electricity grid.