AR 538 Rulemaking First Workshop 9302009

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AR 538 RulemakingFirst Workshop9/30/2009

• AGENDA
• Introductions
• Purpose of todays workshop
• The Rulemaking Process Outline Draft
  proposal to Rules to Launch of Pilots
• Anticipated Schedule to Launch of Pilot Programs
• Confirm Dates for Oct Nov Workshops
• Solar PV Capacity Target, anticipated schedule
• Review Staff straw proposal for Pilot Programs
• Framework for todays work/comments
• Staff Straw Proposal
• Feedback
• Identify objectives or detail not yet addressed
  in proposal
• Begin discussion of possible revisions
• Request for participants to submit comments
  (informal)

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Purpose, Meeting 9/30

• Kick Off Rulemaking process for HB 3039
• Initial concepts (rules/ideas) for launching
  pilot programs for solar PV feed in tariffs
• Before April 1, 2010
• Fast Track Schedule
• Set a schedule for Solar PV Capacity Standard
  work (20 MW)

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Purpose, Workshop 9/30

• Today
• Begin work on the rules for solar PV pilots (AR
  538, Administrative Rules 538)
• Rules implement the law and are only changed
  through another rulemaking
• Process administered by an Administrative Law
  Judge
• Begin work on recommendations to the Commission
  for solar PV Pilots (UM 1452)
• UM 1452 intends to lead to decisions of the
  Commission (that implement the law)
• Commission decisions can change through another
  Commission order
• Process initiated by a filing staff leads
  process to recommendation memo
• No need to differentiate these until later
  workshops

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Two Stages of Rulemaking
Informal Phase Convened by Staff PURPOSE
GENERATE PROPOSED RULES Launches with opening
of a docket Utilizes public process to draft
the proposed rules Ends with the filing of a
Notice of Proposed Rulemaking
(with the Secretary of State) All
participants welcome comparatively informal
Communication to PUC.AR538_at_state.or.us
Formal Phase Administrative Law Judge
presides Formal written record established
through filings with the Hearings Division of the
Public Utility Commission Launches with
filing of Notice of Proposed Rulemaking
Hearing date and close of formal comments
determined All participants welcome
Written comments filed or Verbal Comments at
Hearing Written comments filed through the
Filing Center of the PUC
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How do pieces stages fit together?
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How do pieces stages fit together?
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AR538 INFORMAL STAGE
Lots of holes ?s
Majoritycomplete
Phrasingfinalized
9/30Workshop
10/19 or 10/23Workshop
Framework straw proposal introduced
11/4 or 11/6Workshop
11/13 Notice of Proposed Rulemaking Filed with
Secretary of State
Staff led Informal workshops Interactive
discussions Informal, written comments emailed
to PUC.AR538_at_state.or.us
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Fast TrackSchedule to Launch of Pilots
Launch Solar PV Pilot Programs3/31/2010
Commission approves Tariffs 3/23/2010
3 weeks
Companies file Tariffs 3/15/2010
Commission approves rules 3/9/2010
7-8 weeks 7-9 weeks
Notice of Proposed Rules 11/13/2009
6 weeks
Launch of Rulemaking 9/30/2009
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AR538 INFORMAL STAGE
9/30Workshop
10/19 or 10/23Workshop
11/4 or 11/6Workshop
11/13 Notice of Proposed Rulemaking Filed with
Secretary of State
Staff led Informal workshops Interactive
discussions Informal, written comments
emailed to PUC.AR538_at_state.or.us
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AR 538 RulemakingFirst Workshop9/30/2009

• AGENDA
• Purpose of todays workshop
• The Rulemaking Process Outline Draft
  proposal to Rules to Launch of Pilots
• Anticipated Schedule to Launch of Pilot Programs
• Confirm Schedule for Oct Nov Workshops
• Solar PV Capacity Target, anticipated schedule
• Review Staff straw proposal for Pilot Programs
• Framework for todays work/comments
• Staff Straw Proposal
• Feedback
• Identify objectives or detail not yet addressed
  in proposal
• Begin discussion of possible revisions
• Request for participants to submit informal
  comments

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• Introduce Staff Framework
• Grouping of elements of the law, so that we can
  work on them efficiently
• Creating structure to solicit feedback
• Whats gone too far? Whats missing?
• Whats not gone far enough?
• What needs to be clarified?
• Use a Staff Straw Proposal to address
• Issues that came up during the legislation
• Surface issues that have been missed
• Questions that need work between now and next
  workshop
• Feedback Hear each other in the room
• Feedback by 10/12/2009 to PUC.AR538

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• Framework for todays work
• Framework for written comments(to be submitted
  to PUC.AR538_at_state.or.us, from 9/30 10/12)

The Framework is a semi-arbitrary construct,
designed to facilitate informal comments
discussion. Comment on the CONTENT within the
framework is solicited. In the interests of
time, the framework will be kept constant.
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Legend for slides
A WHITE VERSUS SHADED BOXES
HB 3039 required or permitted element (to be
included in rule or Order)
Staff proposal for detail or target values (to
be included in rule or Order)
B. CASCADING STRUCTURE OF BOXES

• X. Top Level requirementof HB 3039

X.1 Subordinate requirement of HB 3039
X.2 Subordinate requirement of HB 3039,
proposed by staff
X.2.1 Detail of Subordinate Requirement
X.2.1 Detail of Subordinate Requirement
X.2.2 Detail of Subordinate Requirement
X.1.2 Detail of Subordinate Requirement,
proposed by staff
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WHAT PRIMARY OBJECTIVES OF HB 3039 (1 of 4 )

• 1.0 Demonstrate the use and effectiveness of
  volumetric incentive rates for solar PV energy
  systems.

How ESTABLISH 5 YEAR PILOT PROGRAMS
How ESTABLISH ELIGIBILITY
1.1 By rule, PUC to adopt requirements for the
pilot programs
1.2 Prior to April 2010, PUC to establish pilot
programs
1.1.1 Qualifying Systems must be Installed
in the State of Oregon Operational after end
1Q10 Installed by the consumer
1.2.1 Proposal

1.2.2 Proposal
1.1.2 System compliance with legislative
requirements
1.2.3 Proposal
1.1.3 Interconnection Requirements
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WHAT PRIMARY OBJECTIVES OF HB 3039 (2 of 4)
2.0 Incent the development of the most efficient
solar PV energy systems.
How SET INCENTIVE RATES for cost efficiency
How ESTABLISH STANDARD CONTRACTS
2.2 Establish Long Term Contracts
2.1 Establish Adjust Volumetric Incentives Rates
2.2.1 The customer-generator will be offered a
15 year contract that provides payments for
actual energy generated through rates or a rate
formula established at the time of enrollment.
2.1.1 Proposal
2.1.2 Proposal
2.2.2 At the end of the 15 year contract, the
customer generator will receive payments based
on the actual electricity generated from the
qualifying system at a rate equal to the resource
value.
2.1.3 Proposal
2.2.3 Proposal
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WHAT PRIMARY OBJECTIVES OF HB 3039 (3a of 4)
3.0 Aim towards a limit of 25 MW solar PVby end
1Q15
How DISTRIBUTE CAPACITY LIMITS BY ELECTRIC
COMPANY
How DISTRIBUTE CAPACITY BY SIZE
3.1 Establish pilot capacity limit for each
electric company to limit rate impact to lt .25
of revenue requirement.
3.2 Design pilot programs to achieve 75 of
energy from small-scale solar PV
3.2.1 Commission may change allocated to
small-scale solar PV.
3.1.1 Proposal
3.2.2 Define Smaller-Scale Capacity
3.1.2 Proposal
3.1.3 Power is measured as the sum of power
generated on the alternating current side of the
inverter.
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WHAT PRIMARY OBJECTIVES OF HB 3039 (3b of 4)
3.0 Aim towards a limit of25 MW solar PVby end
1Q15
How Establish Adjust and Correct Mechanisms
How Establish Broad Participation
3.4 Establish checkpoint and trigger
mechanisms to ensure the feasibility of meeting
goals.
3.3 All rate classes are eligible for
participation in solar PV pilot programs
3.4.1 The Commission may adjust the rate
schedule as needed.
3.4.2 The Commission may adjust the maximum
percentage of goal of energy generated by small
scale systems.
3.4.3 The Commission may adjust the definition
of size of small scale systems.
3.4.4 Other processes required to enable
adjustments
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WHAT PRIMARY OBJECTIVES OF HB 3039 (4 of 4)
4.0 Assess Pilot Programs request improvements
How BI-ANNUAL UPDATES TO THE LEGISLATURE
How EARLY REQUESTS FOR LEGISLATIVE CHANGES
4.2 Commission to make formal reports to the
legislature.
4.1 Recommend legislative changes to improve
pilots.
4.1.1 Proposal
4.2.1 Proposal
4.1.2 Proposal
4.2.2 Proposal
4.1.3 Proposal
4.2.3 Proposal