(8)AR 112007 Solar Energy Systems

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ITEM #8 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF NOVEMBER 20, 2007 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: SBA FUNDING PUBLIC PROCEEDING DATE: November 13, 2007 BACKGROUND: On August 21, 2006 the State of California approved SB -1, The California Solar Initiative. This initiative was designed to encourage the installation of 3,000 MW of solar electric systems by 2016. SB -1 requires that publicly owned utilities (POU) begin making funds available to provide incentives for customers to install photovoltaic systems on their properties beginning on January 1, 2008. The incentives must be at a minimum of $2.80 per Watt and must decline at 7% per year. The POUs must initiate a public proceeding meeting before January 1, 2008 to determine what additional funding, if any, is necessary to provide the incentives to meet the utility's share of the statewide goals. DISCUSSION/ANALYSIS: Colton Electric Utility as a publicly owned electric utility in the State of California is required under SB 1 to hold a public proceeding before January 1, 2008 to determine what additional funding, if any, is necessary to provide the incentives to meet the utility's share of the statewide goals. To meet this requirement the governing body of Colton Electric Utility, The Colton City Council, must have a public proceeding before January 1, 2009. As a public proceeding must be preceded by a resolution to have a public proceeding and a public announcement of that proceeding be published in a local publication. A resolution to hold a public proceeding should be made at the City Council meeting on Tuesday November 27, 2007. The Colton City Council resolution should be to have a public proceeding as an agenda item during the City Council Meeting on Tuesday January 4, 2007 to discuss funding of financial incentives for customers' solar energy systems as required by SB -1. FINANCIAL IMPACT: The will be no financial impact by having the public proceeding except for staff time and the cost of the publication costs of the proceedings announcement. ENVIRONMENTAL IMPACT: None. CONFLICT OF INTEREST — Gift Disclosure Requirements None.