SLO Climate Coalition Joins Amicus Brief Challenging the CPUC NEM 3.0 Decision on rooftop solar

SLO Climate Coalition is part of Amicus Brief to California Supreme Court Challenging the CPUC NEM 3.0 Decision and the Deference Afforded by the Lower Court.  

SLO Climate Coalition has joined twelve other organizations in an Amicus Curiae Brief in support of the Center for Biological Diversity, Inc et al case challenging the California Public Utilities Commission (CPUC) rooftop tariff decision, often called NEM 3.0. These organizations include: Local Clean Energy Alliance, California Alliance for Community Energy, 350 Bay Area, Climate Reality Project, Climate Reality (SF Chapter), Climate Reality (San Diego Chapter), Reclaim our Power: Utility Justice Campaign, Project Green Home, Third Act, Sustainable Rossmoor, and the Electric Vehicle Association (Central Coast Chapter).

What is the NEM 3.0 Decision?  Several California laws encouraged people to install rooftop solar systems to assist the state in reducing peak energy demand and achieve its energy goals. The CPUC introduced Net Energy Metering (NEM) to promote installation of rooftop solar. “Net metering” is a billing system where those with solar installations receive retail credit for any excess power that is generated, thereby offsetting their electricity usage during times when their solar panels aren’t producing enough power for their households. The utilities oppose rooftop solar, arbitrarily arguing that it is unfair to non-solar customers, causing them to have higher bills. 

The result of the CPUC NEM 3.0 Proceeding was to eliminate netting (crediting) of surplus energy by creating a Net Billing Tariff (NBT) which reduced the value of a rooftop solar installation by 75%.  

The Amicus Brief argues that the CPUC decision incorrectly interpreted the law because it incorrectly valued rooftop solar and failed to support California’s climate goals – as rooftop solar installations are needed to achieve California’s goal to become carbon neutral by 2045. The CPUC decision on the Net Billing Tariff has benefited Investor-Owned Utilities and hindered climate goals by creating a dramatic decline in rooftop solar installations.

The Amicus Brief further argues that the Court of Appeals has wrongfully granted the CPUC “unique deference” to interpret legislation. This violates the will of the California Legislature which determined in 1998 that the CPUC is subject to the same deference as any other agency.   

Oral arguments are expected this spring or summer.

To learn more, listen to the podcast with Roger Lin, Senior Attorney for the Center for Biological Diversity  Read the Brief