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Board reviews GoSolarSF changes, PUC seeks higher low-income incentive and $1 million reallocation

San Francisco Board of Supervisors Budget and Finance Committee · March 11, 2009
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Summary

PUC staff briefed the committee on GoSolarSF outcomes and proposed changes: increase the low-income adder from $5,000 to $7,000, extend the pilot, expand nonprofit eligibility, and shift $1 million in FY08-09 appropriations to avoid applicant payment freezes.

The Public Utilities Commission presented an implementation report on GoSolarSF and requested changes to preserve access for low-income and nonprofit customers and to shore up incentives as federal tax rules shifted. Barbara Hale, assistant general manager for power, told the committee the program produced more than 388 applications and roughly 1.2 megawatts in early activity and had helped create workforce-development hires. "We're very excited about our GoSolar program," Hale said.

Key proposed changes: PUC staff recommended raising the low-income incentive adder from $5,000 to $7,000 to neutralize recent federal tax-code shifts that reduced other incentive levels; extending the pilot program's time frame; expanding nonprofit multiunit eligibility (raising project caps toward $250,000 for certain affordable-housing projects); clarifying that nonprofits in government-owned buildings are eligible; and allowing a wider set of installation participants (including some manufacturers and distributors) to receive incentive funds. Staff also sought to shift $1 million within PUC appropriations to keep payments flowing to applicants this fiscal year.

Budget and oversight: Budget Analyst Deborah Newman noted the staff recommendation to request $4 million in the next fiscal year's budget to sustain the program and said the short-term reappropriation addresses projected shortfalls.

Council questions and public input: Supervisors pressed staff on access for smaller nonprofits and on safeguards so larger projects do not exhaust limited pots of money. Supervisor Mercarimi asked whether raising the nonprofit cap to $250,000 could be gamed by larger organizations; staff replied they would use outreach and loan programs to help less-resourced nonprofits participate. Public commenters included small local installers and workforce advocates who urged greater incentives for local installers and an expansion of workforce-development incentives to commercial projects.

Next steps: The committee voted to forward the ordinances to the full Board with a recommendation; supervisors asked PUC and budget staff to return with clearer breakdowns showing which system sizes and scenarios fit the $150,000 vs. $250,000 caps so the Board can consider technical amendments prior to the full hearing.