Renewables - key to our energy future

- policy framework to make it happen

Tony UsibelliAssistant Director Washington State Department of CommerceTony.usibelli@Commerce.wa.gov

Washington’s emerging challenges• 1.3 million per decade – double < 50 yr • 273 to house, feed, employ, transport, educate…• 300 new megawatts per year• No new dams sites – 15,000 miles lines• New subdivision – apartment• Car culture – walk able communities?

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Build on strengths• Be good stewards of the Columbia River• Institutionalize efficiency through building codes• Capture untapped efficiency through • Market transformation• Incentives• investments

• Diversify energy production• Localize energy production

A Future Path

Today 1. 11 million people in the NW

2. World’s largest hydrosystem

3. Fossil fuel transportation

4. Two-third imported energy

5. Car based

6. Plenty of inefficiency

7. Centralized generation

Tomorrow

1. 20 + million

2. Integrated system

3. Clean fuel

4. Locally produced energy

5. Transit and eff. vehicles

6. Zero energy buildings

7. Distributed

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Washington’s energy strategy Maintain competitive energy prices that are fair and

reasonable for consumers and businesses and support our state’s continued economic success.

Increase competitiveness by fostering a clean energy economy and jobs through business and workforce development

Meet the state’s obligations to reduce greenhouse gas emissions.

Evolving energy priorities

Sector Focus: Bio Energy – Synergies with traditional forestry and agriculture industries

Smart Grid – The nexus of transmission and distribution expertise and the software industry

Green Building – Adopting sustainability to meet consumer demand

Energy Efficiency – Reducing energy consumption by living and working smarter

Stakeholders

Citizens – Beneficiaries of objectives, change enablers

Business – Source of investment, platform for innovation

Government – policy – incentives – regulation – market framer

Regulators – balance generations – investors & ratepayers

1. Mandates - create markets

2. Incentives

3. Partnerships/Alignment

4. State Influence

5. Channeling Federal Resources

Framework for success - alignment

1. Mandates Renewable Portfolio

Standards Government

Procurement Renewable Fuel

Standards Building Codes

Renewable Portfolio Standards; Initiative 937Requires an electric utility with 25,000 or more customers to

use "eligible renewable resources“ to meet the following annual targets:At least 3 percent of its load by 2012,;At least 9 percent of its load by 2016; andAt least 15 percent of its load by 2020

Government Procurement PrioritiesProvide a common approach to register vendors and notify

them of business opportunities with the state of Washington through a single portal

ObjectiveReduce Health and Environmental Threats from Motor Vehicle Emissions

2nd Substitute House Bill 1481 - By the year 2015, all state agencies and local government subdivisions of the state must satisfy 100 percent of their fuel needs for all vessels, vehicles, and construction equipment from electricity or biofuels.

2. Incentives B&O Tax Credits Sales Tax Exemption Production

Incentives

B&O Tax Incentives Reductions in the

rates business pays tax on gross receipts

Credits against B&O liability

Sales Tax Incentives Exemptions to tax Deferrals in

anticipation of qualified actions

3. Alignment / partnerships Government Bodies Public Private

Partnerships Encourage Industry

Associations

Government Bodies

Align Core Mission Grow and improve

jobs in Washington

Align Policies and Execution

Policy and Innovation Unit within Commerce

“Sector Lead”

Public Private Partnerships

The mission of the Washington State Clean Energy Leadership Council is “to create a clean energy leadership initiative that will set the path to leverage Washington's energy infrastructure and make Washington a hub for clean energy technology and a leader in the creation of green jobs and the development, deployment, and export of clean energy technologies and services."

Encourage Industry Associations

The value of a CAMPS membership lies in the power associated with being part of a network of manufacturers, supply chain partners, business advisors, and strategic partners, all working together.

"Helping Puget Sound manufacturers succeed through innovation, supply chain positioning and business development”

4. Leverage the power of the states Federal Influence Foreign Overtures Recruitment Efforts Research Collective buying power

Foreign Overtures

Trade MissionsAttracting Foreign Direct InvestmentGateway to the worldHuge part of economyTremendous logisticsHigh tech workforceInnovationWorld class research

Recruitment EffortsProvide Value Statements and Messaging

Identify and Recruit Out-of-State Key Sector Targets

Work with WA companies to identify missing links in localized supply chains.

5. Channel Federal Resources ARRA/SEP DoE, DoT, DoD Grant

Assistance Research

ARRA/SEP

Washington State recently awarded:

$5.8 Million for Industrial, Commercial and Institutional Energy Efficiency$5.2 Million for Clean Energy Innovation$1 million for Transportation$4.5 million for Waste-to-Energy

Need to improve our ability to capture research, investment, contracts

The American Recovery and Reinvestment Act targets investments to key areas that will save or create good jobs immediately while also laying the groundwork for long-term economic growth.

Build a better world togetherplenty to learn from each other

invest – create - innovate

THANK YOU

Tony UsibelliAssistant Director Washington State Department of CommerceTony.usibelli@Commerce.WA.gov