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33% RPS Implementation and Barrier Analysis

33% RPS Implementation and Barrier Analysis. August 26, 2008 Susan Lee & Carl Linvill Aspen Environmental Group. Purpose: 33% RPS Implementation Challenges Will Be Examined And Solutions Proposed. Resource planning in the regulatory arena often fails to assess implementation challenges

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33% RPS Implementation and Barrier Analysis

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  1. 33% RPS Implementation and Barrier Analysis August 26, 2008 Susan Lee & Carl Linvill Aspen Environmental Group

  2. Purpose: 33% RPS ImplementationChallenges Will Be Examined And Solutions Proposed Resource planning in the regulatory arena often fails to assess implementation challenges Environmental Review, Supply Chain Adequacy, and Contracting and Regulatory Issues each have implementation consequences The 33% RPS examples are an opportunity to present the Commission with the challenges and propose potential solutions

  3. Environmental Issues That Drive Timelines – Some Examples Examples of Environmental or Permitting Concerns DPV2 Transmission Line West of Devers segment (tribal land) Arizona segment (another state’s approval required) Sunrise Powerlink Transmission Line Legal and permitting risk of routing options through Anza-Borrego Desert State Park vs. National Forest land Ivanpah BrightSource Solar Thermal CEC and BLM coordination required to meet both agencies’ requirements takes additional time

  4. Environmental Issues Considered at Three Points – Initial Buildout

  5. Environmental Screen Will Affect Initial Buildout • RETI metrics by CREZ offer values that can influence initial buildout choices • RETI metrics include: • Footprint within CREZ and transmission ROW • Category 1 and Category 2 lands • Significant species & wildlife corridors

  6. Environmental Issues Considered at Three Points – Final Buildout

  7. Implementation Screen Will Support Final Buildout • Use RETI as a foundation • Support RETI with supplemental qualitative information, e.g. – • Cumulative impacts (agricultural land, specific habitat types, cultural resources) • Land uses adjacent to transmission corridors requiring expansion

  8. Environmental Issues Considered at Three Points – Implementation Analysis

  9. Environmental Issues Drive Implementation Timelines Use team experience to identify potential significant implementation challenges in the environmental process Approval timelines by key agencies: CPUC (transmission), BLM and CEC (solar) Effects of multiple concurrent proceedings on agency timing and workload Availability of mitigation lands for specific habitat types Solar PEIS scoping comments offer insight into major concerns and permitting challenges Challenges arising in ongoing CEC and CEC/BLM proceedings (Ivanpah BrightSource, Carrizo Ausra, Stirling Solar Two)

  10. Implementation Challenges Arise From Other Sources As Well • Supply Chain Challenges • Contracting and Regulatory Challenges • Others?

  11. Supply Chain Issues Introduce Implementation Challenges Manufacturing capacity of renewable technologies will require expansion Manufacturing capacity for major transmission construction may be limited Some transmission system equipment needs to be specifically ordered with long lead time Delays in delivery of capital in rapid expansion phases is common

  12. Contracting and Regulatory Issues Introduce Challenges The chicken and egg problem of T and G contracting, financing and construction High contract failure rate creates planning difficulties LTPP determination of need and other regulatory changes may increase long term contracting certainty

  13. Other Implementation Issues?

  14. Contact Information: Susan Lee slee@aspeneg.com 415.955.4775 Carl Linvill clinvill@aspeneg.com 916.379.0350

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