Washington State Energy Policy Trends in 2011 -OPALCOSpeaker Pro Tem Jeff Morris

Can be broken down into three areas

Financial incentives

Regulatory constructs

Unintended consequences (mistakes)

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Financial Incentive Trends

Feed in tariff (Standard Offer)

Net metering (going up to 2mw)

Sales/property tax exemptions

Grant programs

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Grant Programs for Renewableswww.dsireusa.org / February 2010

Utility, local, or private program(s) only

State program(s) + utility, local, and/or private program(s)

Notes: This map only addresses grant programs for end-users. It does not address grants programs that support R&D, nor does it include grants for geothermal heat pumps or other efficiency technologies. The Virgin Islands also offers a grant program for certain renewable energy projects.

State program(s) only

Puerto Rico

DC

23 states

offer grant programs

for renewables

23 states

offer grant programs

for renewables

Sales Tax Incentives for Renewables

Notes: This map does not include sales tax incentives that apply only to geothermal heat pumps or other energy efficiency technologies.

State exemption + local governments (option) authorized to offer exemption or deduction

State exemption or deduction

www.dsireusa.org / February 2010

Puerto Rico 26 states + PR offer sales tax

incentives for renewables

26 states + PR offer sales tax

incentives for renewables

DC

Regulatory Constructs

RPS/climate change

Breaking down regulatory barriers (PERMITTING)

Interconnection

Integrated Resource Planning (IRP)7

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A View of the 3D Load Model during Fly-Over (looking north across Salt Lake Valley)

Unintended Consequences

Lack of regional coordinationRPSPancaking of climate change taxesBoutique standards

Lack of knowledge of infrastructure of policy makers Transmission electric and natural gasfirming

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WECC RPS MandatesState 2010 2015 2020BC N/A N/A N/AAlberta N/A N/A N/AWashington 0 3% 15%Montana 10% 15% 15%Oregon 0 15% 20%Idaho 0 0 0Wyoming 0 0 0California 20% 26% 33%

Must atleast +1% per YearNevada 12% 20% 20%Utah 0 0 0Colorado 5% 15% 20%Arizona 2.50% 5% 10%New Mexico 0 15% 15%

Renewables….WECC wide: Goals vs. Current

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2010 2015 2020

Year

GW

h

Target Renewable

Expected 2008 Renewable

Firming the Challenge!

Focus Permitting

Local Government is not staffed to evaluate new energy technology

Citizens who initiate energy independence on their own time and dime are frustrated with length of time and uncertainty of getting local permit.

Reluctance to lose local decision making to State

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Focus Permitting HB 2516

Authorizes the Energy Facility Site Evaluation Council (EFSEC) to permit small alternative energy resource facilities

Exempts the permitting of small alternative energy resources from the EFSEC's adjudicatory proceeding process and review and approval by the Governor

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Focus Permitting HB 2516

Authorizes the EFSEC and local governments to enter into inter-local agreements to permit small alternative energy resource facilities within the geographic jurisdiction of the local government

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Focus Permitting HB 2516

Alternative energy resources eligible for site certification under the EFSEC include: (1) wind; (2) solar energy; (3) geothermal energy; (4) landfill gas; (5) wave or tidal action; or (6)biomass energy based on solid organic fuels from wood, forest, or field residues, or dedicated energy crops that do not include wood pieces

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Focus Permitting HB 2516

To perform its duties EFSEC must survey for and determine the safest standards for the siting of small alternative energy resource facilities and adopt site certification standards based on these standards

Authorized to charge an application processing fee that represents full cost recovery of expected costs

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Focus Permitting HB 2516

Certify a small alternative energy resource facility site in 30 days

A site certification issued by the EFSEC for a small alternative energy resource facility preempts any permit issued by a local government, if the local government has not adopted permitting codes for these facilities in the last 10 years

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Conclusions

The model in HB 2516 defers to local governments that have current code

Encourages local governments to off load staffing knowledge to EFSEC in inter-local agreements

Provides certainty of 30 day permitting to individuals

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