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

1. Washington State Energy Policy Trends in 2011 -OPALCO Speaker Pro Tem Jeff Morris

2. Can be broken down into three areas • Financial incentives • Regulatory constructs • Unintended consequences (mistakes)

3. Financial Incentive Trends • Feed in tariff (Standard Offer) • Net metering (going up to 2mw) • Sales/property tax exemptions • Grant programs

5. Grant Programs for Renewables www.dsireusa.org / February 2010 DC 23 states offer grant programs for renewables State program(s) only Puerto Rico 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.

6. Sales Tax Incentives for Renewables www.dsireusa.org / February 2010 DC 26 states + PR offer sales tax incentives for renewables Puerto Rico State exemption or deduction State exemption + local governments (option) authorized to offer exemption or deduction Notes: This map does not include sales tax incentives that apply only to geothermal heat pumps or other energy efficiency technologies.

7. Regulatory Constructs • RPS/climate change • Breaking down regulatory barriers (PERMITTING) • Interconnection • Integrated Resource Planning (IRP)

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

11. Unintended Consequences • Lack of regional coordination • RPS • Pancaking of climate change taxes • Boutique standards • Lack of knowledge of infrastructure of policy makers • Transmission electric and natural gas • firming

12. WECC RPS Mandates

13. Renewables….WECC wide: Goals vs. Current

15. Firming the Challenge!

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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