1 California Solar Initiative Low Income Multifamily Program Public Workshop March 17, 2008 San Francisco, CA

2 Agenda 9:00 to 9:20Introduction of workshop scope and purpose 9:20 to 9:45Low Income Multifamily Program overview:  Background & CSI  Low Income Program eligibility 9:45 to 10:45Proposed Low Income Multifamily Program:  Program Goals  Program Administration  Incentive and Financing Structure  Budget  Energy Efficiency Requirements 10:45 to 11:00Challenges to designing a solar incentive program for multifamily affordable housing 11:00 to 11:45Open discussion on remaining issues 11:45 to 12:00Summary, next steps, and conclusion

3 Overview California Solar Initiative (CSI):  $2,167 million over ten years ( )  3,000 MW of new distributed solar generation by 2017  Self-sustaining solar industry free from ratepayer subsidies by 2017 Program Category Budget ($ Million) General Market Program Subtotal$1,897 Direct Incentives to Consumers$1,707 Program Administration, Marketing & Outreach, Evaluation (10%)$190 Low Income Program (10%)$217 Research, Development, Deployment and Demonstration (RD&D)$50 San Diego Regional Energy Office Solar Hot Water Pilot$2.6 Total CPUC CSI Budget$2,167

4 Overview CSI Low Income Programs:  $217 million  50% ($108 million) Single-Family owner-occupied  CPUC adopted Single-Family program in D  50% ($108 million) Multifamily renter-occupied  Eligibility defined in PU Code Section 2852(a)(2) :  (A) Housing financed using local, state or federal housing assistance programs  (B) Residential complex in which at least 20 percent of the total units are sold or rented to lower income households

5 Program Goals  The staff proposed goals of the Low Income Multifamily Program are to: 1.Stimulate the adoption of solar power in the affordable housing sector; 2.Improve the energy utilization and overall quality of affordable housing through the application of solar and energy efficiency technologies; 3.Decrease electricity use and costs without increasing monthly household expenses of low income tenants; 4.Increase awareness of and appreciation for the benefits of solar among low income tenants and affordable housing developers.

6 Program Administration Recommended administrative structure: CSI Program Administrators - PG&E, SCE & CCSE Multifamily program targets affordable housing building owners and developers not low-income tenants Target audience is more similar to the General Market CSI program than the Single-Family Program

7 Incentive and Financing Structure Track 1: Incentives Track 1A: PV system offsets Common Area Load Track 1B: PV System offsets Individual Tenant Load $3.00/watt$4.00/watt Track 2: Affordable Housing Solar Grants $20 million of multifamily budget set aside for AH projects that require additional funds Applicants must prove added direct benefits to low-income tenants

8 Budget Utility Percent of total budget CSI Budget (in millions) Low Income Budget (in millions) LI MP Budget (in millions) PG&E43.7%$ 947$ 94.7$ SCE46.0%$ 997$ 99.7$ SDG&E10.3%$ 223$ 22.3$ Total100%$ 2,167$ 216.7$

9 Energy Efficiency All program applicants must undergo an energy audit All applicants must enroll in an IOU energy efficiency program Buildings that meet Title 24 standards are exempt

10 Challenges to Multifamily Affordable Housing Solar Allocating benefits between solar system owner and low income tenants Metering issues Diversity of the affordable housing market

11 Recommendations for overcoming challenges Virtual net-metering Submetering exemption to master-metered buildings

12 Open discussion /questions Are proposed incentive levels appropriate? Are there additional benefits, not described in this proposal that can be passed on to low income tenants? Is Virtual Net-Metering a feasible option for the LI MP? Are there additional challenges not anticipated in this proposal? Additional questions/comments.

13 Next Steps Comments due March 26, 2008 Formal comments: Become a party to the proceeding Informal comments: Submit to Energy Division Letters should be addressed to Melicia Charles

California Solar Initiative Go Solar California! For Additional Information: Thank You! Curtis Seymour, Melicia Charles,