Distributed Generation: Doomed by Deployment Details?

 

The industry makes strides, but messy issues like air quality and building codes could be showstoppers.

Progress in California's initiative to set guidelines for the deployment of distributed generation took a shift as 2000 came to a close. Activity moved from the California Public Utilities Commission to the California Energy Commission, with the CEC's release of two DG reports: one addressing permit streamlining under the California Environmental Quality Act (CEQA), released Dec. 20, and the other addressing interconnection rules, released Nov. 7.

Permit streamlining, with its "not-in-my-backyard" entanglements, and issues concerning interconnection of DG to the grid-arguably the most glaring lightening rod in the DG regulatory debate historically-are two important facets in a complex regulatory picture. The new reports indicate progress on both issues, and in particular it looks like smooth sailing ahead for permit streamlining. Most stakeholders say they are satisfied with the results of the process that produced the streamlining report. But many issues remain to be resolved.

"[CEQA permit streamlining] is all part of a bigger piece of the pie," says Manuel Alvarez, manager for regulatory affairs at Southern California Edison. Clearly, much needs to be sorted out on the subject of DG, a fact underscored by the CPUC's decision to "subcontract out" to the California Energy Commission the investigations on CEQA review and interconnection.

And in the future, look for a new focus on building codes and limits on DG emissions-the issue that most stakeholders now agree is the true hot button.