California PUC Uses SCC to Help Determine Value of DERs
Evaluation of Distributed Energy Resources
On May 16, 2019, the California Public Utilities Commission (CPUC) issued a final order requiring the use of the SCC for evaluating distributed energy resources (DERs). Specifically, utilities must conduct a societal cost test (SCT) in resource planning that is comprised of three parts, one of which is the "avoided social cost of carbon." The final order requires utilities to model the SCT using two SCC values, the 3% estimate and high-impact estimate.
e.g. $123/Mt CO2e for 2020 emissions (2016 IWG SCC high-impact values, 3% discount rate). 1
Rulemaking 14-10-003: Order Instituting Rulemaking to Create a Consistent Regulatory Framework for the Guidance, Planning and Evaluation of Integrated Distributed Energy Resources.
Order effective through December 2020.
- http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M293/K833/293833387.PDF ↩︎
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