Initiative Measure 81
Initiative 81 1% for Renewables - Creation of a Small Scale Local Renewable Energy Development Fund BE IT ENACTED BY THE SEATTLE CITY COUNCIL: The Seattle City Council finds that the use of small-scale renewable energy resources generated from sources such as solar and wind power would provide our community with, among others, the following benefits: * clean and reliable electricity; * reduced reliance on electricity generated from fossil fuels; * reduced reliance on hydroelectricity during dry summers; and * the creation of jobs in local renewable energy products and technologies industries. The Seattle City Council recognizes that Washington State is home to world-class leaders in the solar and solar-related industries. However, the City Council finds that these companies are leaving the state due to lack of support from the state government. By providing financial incentives to citizens of Seattle who invest in renewable energy products, Seattle would achieve the following: * support for renewable energy companies and renewable energy-related companies within Seattle; * support for Washington's renewable energy industries; and * diversification of Seattle's electricity sources, which would provide greater energy security and reliability for Seattle. Finding that the promotion of renewable energy in Seattle would provide significant economic, environmental, and energy security benefits to Seattle and Washington State generally, the Seattle City Council proposes to offer investment cost recovery incentives through this renewable energy ordinance to those residential electricity customers of Seattle that invest in renewable energy systems. The ordinance is as follows: (1) A Small Scale Renewable Energy Fund (Fund) is created in the custody of Seattle City Light (SSL). (2) Until June 30, 2013, a 1% rate adjustment on all SSL residential electric sales, except those households designated as low income, shall be deposited into the fund created in section (1). (3) Only the Director of SSL or the Director's assignee may authorize expenditures from the fund. (4) Any SSL residential electricity customer who becomes a Small Scale Renewable Generator (Generator) by investing in and operating either a small-scale (solar electric or wind) renewable energy system (system) of up to 5 kilowatts (kW) that feeds into the SSL electricity distribution system may receive annual investment cost recovery incentive payments from SSL. The amount of the incentive payment is calculated based on the amount of electricity in kilowatt- hours (kWh) produced by the Generator's system in that year. (5) The incentive application shall be on a form prepared by SSL and shall include a statement issued by SSL that verifies the system's electricity production. (6) Other than a 5% administration fee charged by SSL for payment processing costs, all funds deposited into the Fund will be distributed annually to Generators. See (7) for limitations on fund payments. (7) The investment cost recovery payment shall be calculated as follows: a) After a 5% administration cost has been subtracted, 100% of the remaining money collected and deposited in the Fund shall be paid to participating Generators. b) Generators shall receive payments based on the total amount of electricity produced by their system during the applicable year. The Generator will be responsible for purchasing from SSL a utility-grade electric meter to measure the electricity produced by their system from SSL. c) Generators are limited to small (5 kW or smaller) solar, or wind systems. These customer-owned and maintained systems must be located within SSL's electricity distribution system. d) Payment to individual Generators is equal to the total money deposited in the Fund for the applicable year divided by the total electricity produced by all the Generators during that year. The maximum payment in any year shall be limited to $1.50 per kWh and is set at the discretion of the Director of SSL. Any money remaining in the Fund after the disbursement of payment to Generators shall remain in the Fund and shall be added to the following year's Fund balance. e) Generators are responsible for meeting all SSL electrical interconnection requirements, complying with all State and Federal safety laws and regulations, and obtaining all necessary permits and licenses. This ordinance expires July 1, 2014.