1. A Synthesis of Recent Energy Policy Recommendations for Arizona Guiding PrinciplesDesert Context Technology Investment Infrastructure Transportation Energy policy should be long-term and include externalities Use measurable outcomes and benchmarks Gov't should approach EE as a partner and adopt holistic policies with industry Stress importance of individual responsibility RE/Sustainable energy should play predominant role Rely on diverse, sustainable portfolio with close to zero emissions Prioritize transportation fuels & NG affordability and reliability Develop detailed definition of solar supply chain to improve solar cluster dev Maintain & upgrade energy infrastructure Provide incentives to implement DG Infrastructure should support innovation Implement Solar Ready Ordinances Implement E-SIDS to establish PACE access W/ CA, develop mutually-beneficial transmission systems for RE and under- utilized Natural Gas plants ("renewable firm zones”) Map a business cluster to encourage export strategy Develop detailed solar energy generation plan with solar exports from large-scale generation Consider arid and sunny environment and political/economic context Encourage DG Encourage desert-friendly solar tech development Promote public transportation Use public incentives to support investment in emerging and new to market tech Promote public-private partnerships for emerging tech Focus on business attraction & retention Define projects of significance by a set of selective characteristics to encourage investment; tie them to performance- based incentives Increase research & implementation funding for energy storage Guiding Principles cont’d = Arizona Town Hall = Arizona Energy Consortium Solar Roadmap = ASU Solar Summit March 2012 Policy consistency, transparency is key Regional transmission development support is critical

2. A Synthesis of Energy Policy Recommendations for Arizona cont’d Environmental JusticeEconomics/Rate Setting Consolidation/Cooperation Demand Side BehaviorEnergy Safety Education Improve K-12 education with focus on science & tech Improve workforce development & trade programs Learn from other states' policies that successfully address innovation & development Develop cohesive narrative Recognize and improve environmental justice outcomes Build transmission & delivery in rural areas Public-private cooperation for long-term investment, emerging tech & innovation State leaders should agree to goals & implementation plans, including fair cost burdens Standardize permitting process for both installation and transmission lines Discuss regional needs Identify gov’t agency to implement a comprehensive energy policy Create regional permit approval centers Energy policies should include true costs of energy LCA to incorporate costs & incentives into energy pricing Re-implement 1603 Treasury Grant Utilize Master Limited Partnerships Focus on obtaining project investment through public-private partnerships Encourage bank investment by connecting solar dev to community reinvestment Encourage AZ Congressional Delegation to develop aggressive RE Incentives tax credits Change consumption habits Educate for greater awareness of comprehensive energy costs Educate for public understanding of benefits, costs and opportunities Conduct hazard assessment & mitigation plan for all energy facilities in AZ Encourage DG and storage on military bases = Arizona Town Hall = Arizona Energy Consortium Solar Roadmap = ASU Solar Summit March 2012= Arizona Town HallArizona Energy Consortium Solar RoadmapASU Solar Summit March 2012 Natural gas can help keep energy costs down Solar industry & utilities need to work to improve grid stability, customer service, and ratemaking