Bioenergy Market Adjusting Tariff (Bio-MAT)

PG&E, SCE, and SDG&E hosted a joint webinar to discuss the BioMAT program on Friday, November 20, 2015.  Information from this webinar is below:

Webinar Slides

Webinar Audio File

Available Capacity

SDG&E’s total program capacity is 24.68 MW.  The amount available for the current Program Period will be as follows:

Program Period 7 - CAT 3 (only) March 2017

Fuel Resource Category

Initial
Capacity (MW)

Contracted Capacity (MW)

Remaining Capacity (MW)

Available Capacity (MW)

$/MWh

Category 1

24.0

3.0

21.0

0.0

$127.72

Category 2

0.0

0.0

0.0

0.0

N/A

Category 3

0.5

0.0

0.5

0.5

$127.72

Total

24.5

3.0

21.5

0.5

Document Conflict

This Web site is intended to provide a summary level discussion of the information and requirements established in the BioMAT Tariff and Contract.  To the extent that there are any inconsistencies between the information provided here and the requirements in the BioMAT Tariff and Contract, the BioMAT Tariff and Contract shall govern.

Program Summary

Through BioMAT, SDG&E will offer power purchase agreements to distribution level renewable bioenergy projects sized at 3 MWs or below from two fuel resource categories*: Category 1 (biogas derived from wastewater treatment, diversion of organic solid waste, food processing waste, or anaerobic digestion of multiple biodegradable substrates or feedstocks), and Category 3 (biogas or biomass derived from fuel reduction activities or other sustainable forest management practices).  Note, the BioMAT program also includes a category for biogas derived from dairy waste, or biogas or biomass derived from other agricultural waste (Category 2); however, SDG&E’s target for this category is 0 MW per Commission Decision (D) 14-12-081.  The starting price for these resources will be $127.72/MWh (before time of delivery adjustment, “pre-TOD”).  The starting price will increase or decrease for each product type based on the statewide market participation in the program.  SDG&E’s target for the BioMAT program is 24.68 MWs.  SDG&E will target procurement of 3 MWs per product category every two months until it has reached its total capacity target.  The program rules are described in more detail in the BioMAT Tariff and Contract.

*Landfill gas projects are not eligible for BioMAT, see D.14-12-081 , p. 10.

BioMAT Quick Facts

Date SDG&E will start accepting BioMAT PPRs

December 1, 2015

Start Date for the first program period

February 1, 2016 

Project Size Limit

3 MW or below

Location

Within SDG&E's service territory

Price

Starting at $127.72, to be adjusted every two months based on statewide program participation

Bid Fee

A bid fee of $2/kW is required for each project submitted

Contract Term Options

10, 15, or 20 years

Selling Options

Full Buy/Sell (SDG&E will purchase every kilowatt-hour produced by the Generating Facility)
-or-
Excess Sale (only the excess electricity produced and exported to SDG&E’s electric system will be purchased)

Interconnection Information

http://www.sdge.com/generation-interconnections/overview-generation-interconnections

Diverse Business Enterprise Information

http://www.sempra.com/about/supplier-diversity

Program History

Senate Bill (SB) 1122 became effective on January 1, 2013.  This bill requires electrical corporations to collectively procure at least 250 megawatts (MW) of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013.  This bill was implemented via two Commission Decisions, D.14-12-081 and D.15-09-004. 

D.14-12-081, issued December 26, 2014, allocated the program capacity of 250 MW to each IOU based on its share of statewide peak demand.  This decision also identified the required characteristics of each of the three fuel types, allocated each IOU’s share of the statewide target among the three fuel types, set the statewide starting price and the mechanism for determining the tariff price going forward, and set an end date of 60 months from the beginning of the first program period.  Pursuant to this decision, the IOUs filed and served a proposed tariff, standard contract, and associated documentation on February 9, 2015.

D.15-09-004, issued September 22, 2015, accepted with modification, the IOUs’ proposed tariff, standard contract, and associated documentation.  This decision also set a schedule for expeditious implementation of the BioMAT program, and required each IOU to file its IOU-specific tariff, standard contract, and associated documentation.  SDG&E filed these documents in SDG&E AL 2804-E, on October 19, 2015:

SDG&E BioMAT Tariff

SDG&E BioMAT PPA

Initial Fuel Resource Attestation

Statewide Pricing Mechanism

Program Eligibility

Eligibility for the BioMAT program is described in SDG&E’s BioMAT Tariff, and summarized below:

  1. Located within SDG&E’s electric service territory and interconnected to SDG&E’s electric distribution system
  2. Eligible Renewable Energy Resource as defined in PUC Section 399.12
  3. Qualifying Facility (QF), as defined by the Federal Energy Regulatory Commission (FERC)
  4. 3.0 MW Maximum
  5. Interconnection
    1. Options:
      1. Passed Fast Track screens or Supplemental Review; or
      2. Completed one of the following IOU-specific: (i) System Impact Study in the Independent Study Process, (ii) Distribution Group Study Phase 1 Interconnection Study in the Distribution Group Study Process, or (iii) Phase 1 Study in the Cluster Study Process; or
      3. Use an existing interconnection agreement to the extent permitted by  the IOU’s BioMAT tariff
    2. Additional Requirements:
      1. Study or Agreement must affirmatively support the Project’s ability to interconnect within 24 months of BioMAT PPA execution
      2. To the extent the cost of transmission system Network Upgrades incurred in connection with the Project exceed $300,000, the Applicant will bear the actual costs in excess of $300,000 in accordance with the BioMAT PPA
      3. Rule 21 or IOU-specific Wholesale Distribution Access Tariff - if both are applicable, the Project can choose which to pursue.  If the CPUC makes a determination requiring the use of either option, all Projects that have not yet submitted a PPR at the time of that determination must pursue interconnection pursuant to the CPUC’s direction.
  6. Applicant must submit a map showing the boundary of the site and attest to 100% site control through: (a) direct ownership; (b) lease; or (c) an option to lease or purchase that may be exercised upon execution of the BioMAT PPA.  
  7. Applicant must attest that at least one member of its development team has: (a) completed the development of at least one project of similar technology and capacity; or (b) begun construction of at least one other project of similar technology and capacity. 
  8. Applicant must attest that either the Project is the only exporting project being developed or owned or controlled by the Applicant on any single or contiguous pieces of property or, if more than one exporting project is being developed or owned or controlled by the Applicant on any single or contiguous pieces of property, the total aggregated installed capacity of the projects does not exceed 3 MW.  
  9. A Project that previously received incentives under the Self-Generation Incentive Program (SGIP) is ineligible for BioMAT if the incentives were received within ten years or less of the date that the Applicant submits a PPR for BioMAT for such Project. 
  10. An Applicant that is a net energy metering (NEM) customer can only participate in BioMAT if the Applicant terminates its participation in the NEM program for the Project prior to the BioMAT PPA’s Execution Date.
  11. An Applicant may not submit a PPR or maintain a position in the queue for the same Project in both the Renewable Market Adjusting Tariff (Re-MAT) program and the BioMAT program. 
  12. The Project’s fuel resource(s) must be eligible for the Renewables Portfolio Standard (RPS) in accordance with the California Energy Commission’s (CEC) RPS eligibility requirements and must comply with the Fuel Resource Category definitions provided in Section N.2 of this Schedule.  Applicant must provide an attestation that specifies the Project’s Fuel Resource Category
  13. The Project must have commenced commercial operations on or after June 1, 2013, based on the definition of “commercial operations date” in the CEC’s Renewables Portfolio Standard Eligibility Guidebook.

Program Participation Request (PPR)

To be eligible for an SDG&E BioMAT PPA, the Applicant must first submit a completed PPR form, all supporting documentation, and the PPR Fee ($2/kW) to SDG&E.  Please visit SDG&E’s BioMAT Program Participation Request homepage (sdgebiomat.accionpower.com)* to begin the application process.

* This link will be active beginning December 1, 2015.

Supporting Documentation Checklist

  • A completed Initial Fuel Resource Attestation.
  • Copy of the most recent Interconnection Study for the Project.
  • A completed Cover Sheet for the BioMAT PPA.
  • An attestation that includes the percentage ownership that the Applicant and Applicant’s Affiliates have in each Project and/or Seller entity for which a BioMAT PPR has been submitted. 
  • The attestations required in SDG&E’s BioMAT Tariff.
  • A Geographic Information System file of the Project boundary information.
  • Such other information and documentation that SDG&E may request to verify compliance with the Eligibility Criteria.

Statewide Pricing Mechanism

The pricing methodology is described in the Statewide Pricing Mechanism document.

Terminology

  • Statewide Pricing Category: Category 1, Category 2 (Dairy), Category 2 (Other Agriculture), and Category 3
  • Statewide Pricing Queue: cumulative queues from each IOU by Statewide Pricing Category
  • Statewide Subscription: total capacity of Projects for which Applicants accept the Contract Price in a Period for each applicable Statewide Pricing Queue
  • Statewide Available Allocation: cumulative total of each IOU’s Available Allocation for the applicable Fuel Resource Category for the applicable Period
  • Statewide Subscription Rate: Statewide Subscription (MW) for the Statewide Pricing Category / the lesser of:  (i) Statewide Available Allocation (MW) for the Statewide Pricing Category, or (ii) the total capacity (MW) in the Statewide Pricing Queue for the Statewide Pricing Category

Methodology

Market depth and Subscription will be assessed on a statewide basis to determine the BioMAT contract price for each Fuel Resource Category. 

To determine market depth initially, at least three eligible Projects from at least three different Applicants (including Applicant’s Affiliates) in the applicable Statewide Pricing Queue will be required to allow a price adjustment in that Statewide Pricing Category.  Once at least one Project in a Statewide Pricing Queue accepts the Contract Price, at least five eligible Projects from at least five different Applicants (including Applicant’s Affiliates) in that Statewide Pricing Queue will be required to allow further price adjustments. 

To determine statewide Subscription, the capacity of all Projects that have accepted the price for a Statewide Pricing Category for the Program Period will be aggregated, and then divided by the lesser of the Statewide Pricing Category’s Statewide Available Allocation, or remaining statewide capacity.  The resulting percentage will determine whether or not the price will adjust in the subsequent period based on the percentages in the following table:

Statewide Subscription Rate %

Price Adjustment

< 20%

Price Increases

>= 20% and < 100%

No Price Adjustment

>= 100%

Price Decreases

The initial Contract Price for each Statewide Pricing Category in Period 1 will equal $127.72/MWh, pre-TOD.  The Contract Price for each Statewide Pricing Category will adjust independently in each subsequent Period.  The price adjustment increments are $4/MWh, then $8/MWh, then $12/MWh, with a cap of $12/MWh, in an uninterrupted series of increases or decreases.  Increases or decreases after a Period in which the Contract Price was unchanged will reset and begin at $4/MWh.  For more information on the mechanics of the price adjustment, refer to Section H.4 of the BioMAT Tariff.

SDG&E will maintain SDG&E-specific queues for the Fuel Resource Categories for which it has a target (Categories 1 and 3).  An Applicant whose Project is sited in SDG&E’s territory will submit a PPR for the Project to SDG&E.  SDG&E will award BioMAT PPAs on a first-come, first-served basis, and execution of a BioMAT PPA with SDG&E will result in the capacity of that Project being attributed to SDG&E’s capacity target.

Required Postings

Pursuant to Section I.7 of SDG&E’s BioMAT Tariff, SDG&E will post information regarding an executed BioMAT PPA within ten days of the execution of the PPA by both parties.

Program Launch & Duration

SDG&E will begin accepting applications for its BioMAT Program on December 1, 2015.  The first BioMAT Program Period will be February-March 2016, and the program will continue for 5 years.  The Final Period will be December 2020-January 2021.  Any Projects remaining in a Fuel Resource Category queue will be permitted to execute a BioMAT PPA within the ninety day period immediately following the close of the Final Period, subject to the following conditions:

  1. The Contract Price for each Statewide Pricing Category will not adjust pursuant to Section H.4 of SDG&E’s BioMAT Tariff and will remain the same as in the Final Period.
  2. Any Projects remaining in a Fuel Resource Category queue will have ninety days following the close of the Final Period to accept the applicable Contract Price as provided in Section F.3.a of SDG&E’s BioMAT Tariff.  Following that ninety day period, BioMAT PPAs will be awarded in BioMAT Queue Number order.
  3. For each Fuel Resource Category, SDG&E’s obligation to accept BioMAT PPAs is only up to the lesser of: (i) SDG&E’s total capacity remaining in the applicable Fuel Resource Category or (ii) six MW. 
  4. SDG&E may, in its sole discretion, continue to offer the BioMAT to new Applicants after the Final Period.

For More Information

For more information about applying for SDG&E’s BioMAT, please contact: (858) 637-7909. For more information about interconnection, please contact: (858) 636-5581.

For more information regarding the BioMAT program, please visit the CPUC Web site.

Or contact the CPUC Public Advisor’s Office:

Telephone:  (866) 849-8390 or (415) 703-2074
TTY:  (866) 836-7825
E-mail:  [email protected]
U.S. Mail:  505 Van Ness Avenue, Room 2103, San Francisco, CA 94102

For more information regarding this notice, please email SDG&[email protected] (please note, a BioMAT email address will be set up specifically for this program and will be posted once available)