Self-Generation Incentive Program Greenhouse Gas Staff Proposal Workshop

1. Self-Generation Incentive ProgramGreenhouse Gas Staff Proposal Workshop October 22, 2018 California Public Utilities Commission Energy Division

2. Safety and Emergency Information • In the event of an emergency, please calmly proceed out the exits. • We have four exits: Two in the rear and one on either side of the speakers. • In the event that we do need to evacuate the building: • Our assembly point is the Memorial Court directly across from City Hall and just north of the Opera House. • For the Rear Exits: Head out through the courtyard, and down the front steps. Continue south on Van Ness Ave toward the Memorial Court. • For the Side Exits: Go out of the exits and you will be on Golden Gate Avenue. Proceed west to Franklin Street. Turn south onto Franklin Street and continue toward the Memorial Court.

3. Evacuation Map City Hall

4. Webex and Call-in Information Webex:https://centurylinkconferencing.webex.com/centurylinkconferencing/j.php?MTID=m253c01790a4e768f6d8f9fbf12e78a76 Meeting number: 711 318 756 Meeting password: !Energy1 Call-in: Local access number (required): 1-877-820-7831 (US) Access code: 754 947 5944 • Remote callers will be placed on listen-only mode by default. Please submit questions/comments via the WebEx chat.

5. Other Useful Information WiFi Access • SSID: cpucguest • login: guest • password: cpuc92818 Workshop Materials are Available Online • All workshop materials are available online at http://www.cpuc.ca.gov/sgip/

6. Workshop Objective and Next Steps • Objective: To explore in more detail options for ensuring Self-Generation Incentive Program (SGIP) projects reduce greenhouse gas (GHG) emissions, as presented in the SGIP GHG Staff Proposal and comments.   • Next Steps: • Commission plans to issue a revised staff proposal for comment before the end of the year • Proposed decision expected in Q1 2019

7. Legislative Requirements for SGIP Storage to Reduce GHGs • SB 700 reemphasizes the role of storage in achieving SGIP’s environmental goals • PU Code 379.6(b)(3): “The commission shall adopt requirements for energy storage systems to ensure that eligible energy storage systems reduce the emissions of greenhouse gases.” • PU Code 379.6(a)(1) codifies three main SGIP goals: • Environmental goals – reduce GHGs, integrate renewables and reduce criteria air pollutants • Grid Support goals – reduce or shift peak demand, reduce grid costs, provide ancillary services • Market transformation

8. Procedural Background and Schedule • August 2017: Itron completes 2016 SGIP Storage Impact Evaluation • November 2017: Workshop on GHG issue • December 2017: Assigned Commissioner’s Ruling establishes the SGIP GHG Working Group • January - June 2018: SGIP GHG Working Group meets and issues report • September 2018: Energy Division issues GHG Staff Proposal • September 2018: Itron completes 2017 SGIP Storage Impact Evaluation • October 2018: Workshop on GHG Staff Proposal • Q1 2019: Proposed decision expected

9. GHG Staff Proposal In developing proposals, staff aimed to: • Give operators flexibility in how they dispatch storage systems to achieve GHG reductions • Verify and enforce GHG performance directly rather than through proxy metrics • Keep rules simple and straightforward

10. Summary of GHG Staff Proposal

11. Out of Scope Topics for the Workshop • Changes to retail rates • Build margin • Requiring SGIP systems to enroll in demand response or other grid service programs • SGIP solar attribution

12. Agenda