How an Environmental Group Aligned with Monopoly Utilities to Squash Rooftop Solar

October 7, 2021

min

Karinna Gonzalez

Comic strip illustrating the absurdity of trying to kill solar adoption during the climate crisis

California’s legislative session has closed for 2021 and elected officials are beginning to discuss 2022 legislative priorities, undoubtedly strategizing about which groups will likely support or oppose their bills. As many California elected officials ran on progressive platforms, getting buy-in from environmental groups will be a big priority for many Democratic lawmakers.

One group that’s getting a lot of attention from climate activists is the Natural Resources Defense Council (NRDC), which has a mission to “safeguard the earth—its people, its plants and animals, and the natural systems on which all life depends and has always been traditionally looked at as an environmental organization.” Historically, NRDC has been highly respected and considered a reputable climate organization, with taglines like “Earth’s best defense” and with big wins like preserving critical species and securing broad legal protections for wildlife and marine protected areas. In 2010, NRDC helped to craft the first ever national ocean policy, which improves coordination among states and created a National Ocean Policy. Internationally, NRDC worked with partners to develop a first-of-its-kind United Nations agreement that requires the regulation of bottom trawling. NRDC has done some great work in the climate space.

NRDC was established as a nonprofit organization 51 years ago and its support or opposition is highly valued, however, its seniority and past wins have allowed the organization to support anti-climate, pro-utility legislation while still being regarded by many as a reputable environmental group, derailing legislation and climate policies. Why would an organization dedicated to protecting the earth support anti-climate policies? While it’s not well known, NRDC has a history of siding with the investor-owned utilities to advance a fossil fuel agenda, although more individuals and organizations are taking notice as of late.

After John Bryson co-founded NRDC, he served as a commissioner for the California Public Utilities Commission (CPUC) and eventually went on to become the CEO of Edison International, which founded the Edison International Institute (EII). EII is a utility-backed organization, which has produced studies biased against rooftop solar and led the attacks on the industry over the years. Taking a deeper look into NRDC’s history, Ralph Cavanagh, a senior lawyer from NRDC, set up the “California Collaborative Process” in 1989, which according to the San Francisco Bay Guardian, enabled key environmentalists to "meet behind closed doors with top executives from private utilities to smooth over their differences and hammer out energy-efficiency programs.”

NRDC has issued at least four joint statements with Edison Electric Institute since 2002 regarding all manner of clean energy policy, which NRDC makes no effort to hide. In 2014, NRDC made a deal with the utility industry in which the utilities would stop fighting the existence of energy efficiency and rooftop solar in exchange for NRDC's support for designing these programs so the utilities can maintain their profit margins. Beyond joint statements from NRDC and utility groups, NRDC has also worked with the utilities to draft anti-climate policies. For example, in 2016, NRDC and the utilities jointly filed for changes to the state’s net energy metering program, the rooftop solar agreement that has helped over one million California families, schools, businesses, cities and organizations to go solar. In 2019, as policymakers were debating whether or not Pacific Gas & Electric (PG&E) should be held liable for the fires PG&E caused, the LA Times reported NRDC’s ‘Cavanagh thinks state legislators should change the law so that PG&E and other utilities aren’t held liable for fires sparked by their infrastructure unless they’re found to be negligent. “Our utility liability rules are unworkable. They menace every utility in California, and they need to be fixed,” he said. “This is not just about PG&E, and it’s a mistake to treat it as such.”’

Fast forward to this year when we watched NRDC undermine rooftop solar by supporting the “kill solar bill” in California, Assembly Bill 1139, and submitting an anti-solar proposal for the state’s net energy metering program, which will determine the future rooftop solar agreement in California. Beyond that, NRDC has made attempts to derail the net energy metering proceeding by suggesting major changes to the tool that determines how the CPUC values rooftop solar. Further, the lawyer representing NRDC in the net energy metering proceeding formerly represented PG&E for 15 years, and represented Pacific Gas Transmission Company, a subsidiary of PG&E, for two years.

Environmentalists and climate justice advocates are beyond frustrated with NRDC’s actions. Not only is NRDC selling out to monopoly utility companies supporting environmental racism and accelerating the climate crisis, which often impacts communities of concern first and worst, its actions are causing decision makers to cite “environmental groups support {insert anti-solar initiative}” when in reality, it’s just one so-called environmental group that has a long-standing track record supporting the investor-owned utility companies. NRDC prioritizing that relationship over advocating to keep a proven climate solution an option for California, is not only disappointing, it has major consequences for environmental justice and climate policies.

When asked about the hypocrisy of NRDC’s disingenuous equity claims about rooftop solar, citing the Vibrant Energy study that shows rooftop solar reduces costs for all ratepayers, and pointing out that the top reasons electricity rates are increasing are because of infrastructure that investor-owned utilities get a guaranteed return on investment on and fire-related costs, NRDC did not address or refute our points and did not provide any facts to defend the organization’s stance. When we asked why over 100 climate and equity organizations opposed Assembly Bill 1139 yet NRDC was the only “environmental group” supporting it, an NRDC employee responded by insinuating that their organization understood the issue better than traditional environmental organizations, which weren’t aware of what exactly they were signing on to. That is not factual and is an insult to the organizations, now a broad, diverse coalition of more than 350 nonprofits, small businesses, labor unions, faith-based groups and other members, many of which meet on a monthly basis to save rooftop solar.

It is clear that NRDC works to push investor-owned utility agendas, therefore it is extremely dangerous for NRDC to continue being characterized as an environmental organization and utilized by decision makers to pass anti-climate legislation and policies during a climate emergency when we need to move away from fossil fuels and towards zero carbon. We urge legislators, CPUC commissioners and other elected officials to not mistake buy-in from NRDC as buy-in from environmental groups, because NRDC does not represent the vast majority of environmental groups nor do NRDC’s actions show it's truly trying to end climate injustices and the climate crisis. Please help us fight for a more just and livable future by spreading the word and by reaching out to NRDC, asking the organization to support rooftop solar as a solution to reduce climate racism and to slow the impacts of the climate crisis. To join us in protecting rooftop solar, please visit www.HelpCleanEnergy.org.

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Villa Lakeshore Apartments in Lakeside, which BQuest provided a SOMAH bride loan for, allowing the property to install solar, which saves tenants $1,600 a year on utility bills

California bill could restructure traditional incentive programs

Policy

October 27, 2023

min

California bill could restructure traditional incentive programs

New bill could restructure traditional incentive programs in California

It is no secret that traditionally, clean energy infrastructure has primarily been accessible to wealthy homeowners in California. More than a million homes and businesses have rooftop solar, but the state’s environmental justice communities, which are in the most polluted areas, have been left out. In order to reach the state’s climate and clean energy goals, it is necessary to provide clean energy access to everyone and a big part of how we get there is programs.

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The Solar on Multifamily Affordable Housing (SOMAH) Program was created by California Assembly Bill (AB) 693 introduced by then Assemblymember Susan Eggman in 2016, which included the largest investment of its kind in the nation - $1 billion over the next decade from five of the state's gas and electric investor-owned utility companies greenhouse gas cap-and-trade auction proceeds to subsidize solar panels on multifamily affordable housing across the state. For tenants, this means reduced utility bills, better housing security and job training opportunities. For housing complex owners, the solar reduces common area electricity costs, reducing overhead expenses. The program had a very successful launch, becoming fully subscribed within the first 24 hours of opening the program with more than 240 applications representing 74MW of solar capacity. However, after the successful launch, the program has experienced a significant decrease in applications in subsequent years, only receiving a total of 20 applications in 2022.

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A required third-party evaluation of the program identified a number of barriers to program participation. A major barrier cited from property owners was gap financing. SOMAH Program projects can be lengthy, and the current incentive structure requires the property owner to float the rebate amount, which can be thousands of dollars to hundreds of thousands of dollars, sometimes for a year. The program recognized this issue and rolled at progress payments, which paid a portion of the incentive for certain project milestones, but this simply is not enough for some property owners. Recognizing the need for gap financing in order for these projects to participate in the program, Hammond Climate Solutions Foundation and BQuest Foundation began working together to provide no interest bridge loans for SOMAH projects, providing much needed funds for projects that would have otherwise not moved forward. After funding a handful of projects, BQuest realized they could scale this opportunity a lot more quickly and reach many more property owners by creating a loan guarantee instead of financing these projects on a one by one basis. A loan guarantee would allow the property owner to access the rebate on the front end, backed by a loan guarantee from BQuest, without putting ratepayer money at risk and allowing BQuest to scale their impact.

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In February 2023, Senator Eggman introduced Senate Bill (SB) 355, which expanded SOMAH Program eligibility to include tribal housing, housing owned by public agencies and increased the income threshold among other things. At this point, Hammond Climate Solutions Foundation and BQuest had already been involved in numerous meetings with the SOMAH Program administrators, the California Public Utilities Commission (CPUC) energy division staff, the Governor’s Office and were actively involved in the SOMAH proceeding at the CPUC and while support for this idea was given by all parties, implementing something like this had proven to be slightly more difficult. Since SB 355 addressed the lack of applications in the SOMAH program and expanded eligibility, we met with Senator Eggman’s staff and proposed an amendment to the bill to include language for a loan guarantee and not only was the language added with no opposition, it was signed by Governor Newsom on October 7!

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This is a huge win for California and an opportunity to prove that incentive programs structured in a way that provides the rebate on the front end can work and will eliminate barriers to participation. You can read the full bill text here.

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Photo of the largest rooftop community solar project in the U.S, located in Carroll County, Maryland

California could lead the nation in Community Solar, if the utilities stop fighting it

Policy

September 29, 2023

min

California could lead the nation in Community Solar, if the utilities stop fighting it

California leads the nation in rooftop solar installations but has fallen short in creating a viable community solar market. Now, that can change.

California leads the nation in rooftop solar installations but has fallen short in creating a viable community solar market. Last year, Assembly Bill 2316 (AB 2316) unlocked the potential for California to lead the nation in community solar over the coming years by finally creating legislation that will tell the utilities to create a program that will credit customer’s accounts for renewable electricity produced elsewhere and set a compensation for the bill credit. Now, the utilities are attempting to derail a new proposed program called the Net Value Billing Tariff (NVBT).

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The NVBT would finally allow California renters, nearly 17 million people, and low-income households to take advantage of bill savings while using clean energy. There are a couple of things that make the NVBT different from failed community solar programs in California. The first is that it would require the installation of batteries with community solar projects, to alleviate the strain on the grid during peak hours (currently 4-9 p.m.), once demand is higher and solar energy being exported to the grid is dropping off as the sun sets. The second is that AB 2316 requires that low-and-moderate income households make up a majority of subscribers, ensuring that this program will benefit those who are paying a disproportionate amount of income towards skyrocketing electricity rates. Finally, this program has no caps on capacity, meaning the doors are truly open for developers that want to build these projects.

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One of the biggest advantages of community solar is that the solar power systems can be placed on rooftops and in parking lots, and the systems don’t require large plots of land like utility scale solar does. Community solar can also support local clean jobs and stimulate the regional economy. With the state’s target to procure 85 gigawatts of clean energy by 2035, there is already a large amount of projects in the desert trying to connect to the grid, however community solar projects can be a lot closer to the customers they serve, meaning they are able to connect to the lower voltage grid, eliminating the need for more costly and fire-causing transmission and distribution lines.

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It is no surprise that the only arguments against a program that could potentially replace dangerous peaker plants comes from the state’s three investor-owned utilities. The main argument coming from the utilities is that community solar should be treated like large-scale generators that have a different set of rules and guidelines than other distributed energy resources like rooftop solar.

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The California Public Utilities Commission proceedings tend to move pretty slowly, so there isn’t a definitive date for when we can expect the NVBT to be voted on by the commissioners. California has now passed the September 26 deadline for states to apply to $7 billion in federal funding as part of the Solar For All grants and having a community solar program in place would have made California’s application a lot more competitive.

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While the utilities have successfully blocked attempts to make solar more accessible, including the decision to slash the state’s net energy metering program last year, hopefully the state can get it right on this one.

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Let’s Go! San Diego Transit Relief

August 1, 2023

min

Let’s Go! San Diego Transit Relief

Do you live in San Diego County? How satisfied are you with the current state of roads and public transportation? You may be approached, if you have not been already, with these questions by a friendly volunteer in the next few months as the November 2023 deadline to submit measures for the 2024 ballot quickly approaches.

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The County’s transit infrastructure has been in decline for many years now. Local governments in the region have poured millions of taxpayers’ dollars into expanding freeways, but we know from looking at Los Angeles and other regions that more lanes increase the number of cars on the road. More cars on the road means more air pollution, which disproportionately burdens the health and well-being of BIPOC communities and communities of concern.

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It’s time for us to come together and create change. Let’s Go! San Diego is a campaign focused on building a better future for local families by delivering essential transportation improvements: reducing congestion, upgrading highway safety, fixing roads and making public transit more reliable and accessible. Some of the other projects that Let’s Go! will fund include:

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Purple trolley line extending from South County to Sorrento Valley
Moving Rail Line connecting to San Diego International Airport
Increased service on bus and trolley routes
Habitat preservation and stormwater upgrades

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Vehicles make up 50 percent of greenhouse gas emissions in California, 80 percent of nitrogen oxide pollution and 90 percent of diesel particulate matter pollution. Thus, an improvement to our transportation system means progress for meeting local and statewide climate goals.

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So, how will this be funded? The measure proposes a half-cent increase to the County’s sales tax, meaning for every $20 you spend, $0.10 will go towards improving our transit system. Tax increases are not often appealing, however, we wholeheartedly believe that the impact of this measure far outweighs the individual costs. The lack of viable transportation alternatives for County residents limits access to jobs, education, medical offices and recreational facilities. San Diego County needs more and better options, which is why it is crucial that residents bring this measure into next year’s ballot.

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The broad coalition supporting this important effort is composed of over 30 nonprofits, unions, environment groups and businesses. Launched by SanDiego350 and the Environmental Health Coalition, this grassroots effort continues to grow in strength. Check out the complete list of endorsements here: Let’s Go! San Diego Endorsements.

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If you haven’t signed the petition yet, visit one of the locations here to bring this measure one step closer to becoming a reality. Also, consider joining the campaign to stay up to date on our progress and spread awareness to friends, family and neighbors so that San Diego may deliver long-awaited transit improvements to the County.

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Photo Credit: Let’s Go! San Diego