1. Policy Impact on the Workforce Justin Barnes N.C. Solar Center / NCSU Clean Energy Workforce Education Conference 2012 Albany, NY November 14, 2012

2. Outline DSIRE Background/Components DSIRE and Workforce Development RE Market Drivers and Trends EE Market Drivers and Trends Industry Recruitment/Support Tour of DSIRE

3. Created in 1995 Funded by U.S. DOE / NREL Managed by NCSC / NCSU Scope = government & utility incentives & policies that promote RE/EE ~ 2,751 total summaries ~175,000 users per month DSIRE Solar (dsireusa.org/solar) DSIRE data services for businesses (dsireusa.org/services) DSIRE Background

4. Major DSIRE Components State and federal incentive pages/summaries DSIRE Solar DSIRE RPS Data Summary maps DSIRE search tool Information requests and technical assistance

5. DSIRE: A Brief Breakdown Energy Efficiency 1,843 policies/programs – 1,200 utility programs – 448 state policies/programs 1,591 financial incentives 243 regulatory policies Renewable Energy 1,632 policies/programs – 627 utility programs – 793 state policies/programs 1,172 financial incentives 460 regulatory policies 715 both RE/EE UPDATES: As needed…or 11 – 12 month cycle, 6 month for utility EE

6. DSIRE Inquiries

7. DSIRE and Workforce Development Understanding Market Opportunities Training/ Certification Sales & Consumer Communication Advocacy/ Alternatives

8. DSIRE and Workforce Development Understanding Market Opportunities Training/ Certification Sales Advocacy/ Alternatives And Industry Recruitment

9. Market Drivers: Renewables Federal Tax Incentives (ITC, PTC, MACRS) State Policy: RPS/RECs; Net Metering; 3 rd Party Ownership; PBFs; Tax Incentives Electricity Prices/Rates/Rate Design

10. Renewable Portfolio Standard Policies.. www.dsireusa.orgwww.dsireusa.org / November 2012. 29 states, + Washington DC and 2 territories,have Renewable Portfolio Standards (8 states and 2 territories have renewable portfolio goals). 29 states, + Washington DC and 2 territories,have Renewable Portfolio Standards (8 states and 2 territories have renewable portfolio goals).

11. Renewable Portfolio Standard Policies with Solar / Distributed Generation Provisions. www.dsireusa.orgwww.dsireusa.org / November 2012. 16 states,+ Washington DC have Renewable Portfolio Standards with Solar and/or Distribute Generation provisions

12. Trends/Issues in RPS Policies Slow down in adoption of new policies Debate over relative role of DG/grid supply in solar carve outs (NJ, DE, IL) Long-term contracting provisions (CT, DE, MA, NJ) Increased scrutiny of costs/increased relevance of cost caps (OH, NM, IL) Role of thermal energy resources (OH, NH) Efforts to repeal or water down (OH, AZ, NC) Declining costs, declining purchase rates (AZ, CO)

13. Public Benefits Funds for Renewables.. www.dsireusa.org www.dsireusa.org / November 2012 (estimated collections).. 18 states, + Washington DC & Puerto Rico, have public benefits funds ($7.8 billion by 2017). 18 states, + Washington DC & Puerto Rico, have public benefits funds ($7.8 billion by 2017). (NOTE: Slides 2-12 explain the methodology for calculating funding estimates.)

14. Trends/Issues for PBFs Decreased emphasis in many cases in favor of RPS/market-based incentives (NJ, NY, PA) Maintaining DG opportunities where RPS or carve-outs not sufficient (MN, WI, OR) Serving other needs beyond development of end-use renewables (PA, NY, MA) Instances of legislative “raiding” continue (D.C., NY, IL)

15. Net Metering. www.dsireusa.org / November 2012. 43 states, + Washington DC & 4 territories,have adopted a net metering policy. 43 states, + Washington DC & 4 territories,have adopted a net metering policy. Note: Numbers indicate individual system capacity limit in kilowatts. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.

16. Net Metering: Meter Aggregation DC Aggregation of some from authorized by state Ownership requirements Contiguous vs. non-contiguous properties Multiple customers Multiple generators Modified system/aggregate system size Rollover rates Distance limitations Number of accounts How to address accounts on different tariffs But…It’s complicated

17. Trends in Net Metering Policies Adoption of virtual net metering/meter aggregation permissions (many) Standby charges or equivalent (CA, NM, VA) Expanding aggregate capacity limits (CA, NY) Increased concerns about net metering as a “subsidy” and related costs/valuation of DG resources (CA)

18. 3 rd -Party Solar PV Power Purchase Agreements (PPAs). www.dsireusa.org / November 2012. At Least 22 states, + Washington DC and Puerto Rico,Authorize or Allow 3 rd -Party Solar PV Purchase Power Agreements. At Least 22 states, + Washington DC and Puerto Rico,Authorize or Allow 3 rd -Party Solar PV Purchase Power Agreements. Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making binding financial decisions related to a 3rd-party PPA. See following slides for additional important information and authority references.

19. Third-Party Ownership Trends/Issues Industry interest in new states Are retail PPA’s legal? Are there other impediments? Does a lease work? (IL) Applicability of third-party ownership to existing incentive policies/programs (e.g., LIPA, NC, PA) Sunset of 1603 Grants and impacts for tax-exempts

20. Source: U.S. Energy Information Administration U.S. Electric Industry Average Revenue per kWh (March 2012)

21. Electricity Trends But…at what rate? What about natural gas?

22. Other Topics of Interest Grid integration, transmission and interconnection issues Resource externalities (e.g., MSW, biomass carbon emissions) Solar permitting/soft costs Property taxes JOBs, JOBs, JOBs…DSIRE and Industry recruitment

23. Market Drivers: Energy Efficiency Federal Incentives?? State Policy: EERS/Utility Programs; PBFs; Decoupling/Utility Programs Electricity/Other Fuel Prices/Rates

24. Energy Efficiency Resource Standards. www.dsireusa.org / October 2012.. 20 states have Energy Efficiency Resource Standards. (7 states have goals). 20 states have Energy Efficiency Resource Standards. (7 states have goals). Note: See following slide for a brief summary of policy details. For more details on EERS policies, see www.dsireusa.org and www.aceee.org/topics/eers.www.dsireusa.org www.aceee.org/topics/eers

25. EERS Policy Details Arizona: 22% cumulative electricity savings by 2020; 6% cumulative gas savings by 2020. Arkansas: 0.75% of 2010 electric sales reduction by 2013; 0.4% of 2010 gas sales reduction by 2013. California: Varies by utility. Colorado: Electricity sales and demand reduction of 5% of 2006 numbers by 2018 (statutory requirement); natural gas savings requirements vary by utility. Connecticut: 4% of retail load (includes CHP and waste heat recovery). Delaware: Electricity and peak demand savings equivalent to 15% of 2007 numbers by 2015; natural gas savings equivalent to 10% of 2007 natural gas consumption by 2015. Florida: 7,842 GWh cumulative reductions from 2010- 2019 (statewide goal); 3,024 MW cumulative summer peak demand reduction from 2010-2019, 1,937 MW, cumulative winter peak demand reduction from 2010- 2019 (statewide goal). Hawaii: 4,300 GWh reduction in electricity use by 2030. Illinois: 2.0% reduction of 2008 electricity sales by 2015; 1.1% reduction of 2008 peak load demand by 2018; 8.6% cumulative natural gas savings by 2020. Indiana: 2.0% electricity sales reduction by 2019. Iowa: Varies by utility. Maine: 30% reduction of electricity and natural gas sales by 2020. Maryland: 15% reduction in per capita energy consumption by 2015, compared to 2007; 15% reduction in per capital peak demand by 2015, compared to 2007. Massachusetts: Reduce 1,103 GWh electricity in 2012 (statewide); reduce 24.7 million therms by 2012 (statewide). Michigan: 1.0% annual reduction of previous year retail electricity sales by 2012; 0.75% annual reduction of previous year retail natural gas sales by 2012. Minnesota: 1.5% reduction of previous 3-year average retail electric sales by 2010; 1.5% reduction of previous 3-year average retail natural gas sales by 2010. Missouri : 9.9% cumulative electricity savings by2020; an additional 1.9% each year thereafter.9% cumulative peak reduction by 2020; an additional 1% each year thereafter. New Mexico: 10% of 2005 total retail kWh sales by 2020. New York: 15% reduction relative to projected electricity use in 2015; gas savings of 112 Bcf annually by 2020. Ohio: 22.0% reduction of previous 3-year average retail electricity sales by 2025. Pennsylvania: 3% of projected June 2009 - May 2010 electricity consumption by May 31, 2013; 4.5% of measured June 2007 - May 2008 peak demand by May 31, 2013. Rhode Island: Varies by utility. Texas: 25% reduction in annual growth in demand 2012; 30% reduction in annual growth in demand 2013. Vermont: 320,000 MWh electricity savings (3-year goal for 2012, 2013, 2014); summer peak kW savings: 60,800 (3-year goal for 2012, 2013, 2014). Virginia: 10% electricity savings by 2022 relative to 2006 base sales. Washington: Varies by utility. Wisconsin: 2011-2014: Net annual electric energy savings of 1,816,320,000 kWh; net annual natural gas savings of 73,040,000 therms. Note: For more details on EERS policies, see www.dsireusa.org and www.aceee.org/topics/eers.www.dsireusa.org www.aceee.org/topics/eers

26. 2011 State/Utility EE Budgets Electric Energy Efficiency Program Budgets State Budget ($ millions) Spending as a % of Revenue California1,162.53.35% New York1,073.24.69% Massachusetts453.05.77% Washington274.94.36% New Jersey225.02.05% Pennsylvania225.01.44% Minnesota191.23.24% Florida188.50.77% Oregon171.84.51% Maryland156.42.05% Texas144.10.43% Connecticut138.32.83% Ohio134.40.96% Michigan127.61.50% Arizona126.11.74% Illinois115.70.91% Wisconsin92.31.31% Iowa88.82.55% Colorado64.11.28% Indiana58.20.69% Source: ACEEE 2012 State Efficiency Scorecard Gas Efficiency Program Budgets State Budget ($ millions) Spending per Residential Customer($) California268.025.43 New York119.427.55 Massachusetts118.084.92 New Jersey106.040.03 Michigan80.525.22 Illinois51.613.44 Iowa44.050.06 Ohio42.613.14 Minnesota40.928.61 Utah32.239.24 Washington29.727.76 Oregon24.535.86 Pennsylvania21.68.18 Connecticut20.040.77 Colorado19.011.61 Florida13.620.13 Indiana13.37.99 Oklahoma11.812.85 Wisconsin8.75.22 New Hampshire7.882.11

27. What do they look like? Residential Programs Prescriptive Equipment Rebate Home Performance Direct Install (Low-Income) In-store discount or recycling Loan for Balance?

28. What do they look like? Non-Residential Programs Prescriptive Equipment Rebate Custom $/kWh, $/therm, $/kW New Construction Design Work/TA Loan for Balance?

29. EE Program Trends Increasing budgets ($1.9 billion in 2006 to $7 billion in 2011); more programs New technologies (e.g., data centers) EERS dominates PBF mechanisms; ARRA impact receding but not gone (e.g., continuing loan programs) New financing mechanisms slowly gaining interest (on-bill, commercial PACE) Energy disclosure/benchmarking requirements Energy code improvements Increasing recognition of green building ratings other than LEED

30. Fuel Price Trends But…at what rate? Electric vs. gas vs. heating oil?

31. DSIRE Industry Recruitment 41 Industry Recruitment Programs in DSIRE – 11 for both EE and RE – 40 for renewable energy – 12 for energy efficiency Incentive Types – Business loans – Cash incentives – Tax credits/abatements (property tax, sales tax, franchise/income tax, payroll tax)

32. Industry Recruitment Examples Cash Incentives – NY Energy Star Homes Incentive for Builders – NJ Edison Innovation Grants/Loans Business Loans – MI Energy Revolving Loan Fund for Clean Energy Manufacturing – PA Solar, Wind, Geothermal, Alternative Energy Incentive Programs Tax Incentives – CA Sales and Use Tax Exclusion for Alternative Energy Manufacturing – NC RE Manufacturing Income Tax Credit – AZ RE Manufacturing Income Tax and Property Tax Incentives – MI Refundable Payroll Tax Credit for Alternative Energy Businesses

33. Let’s Take a Tour… www.dsireusa.org

34. Questions?? Contact Information: Justin Barnes Justin_barnes@ncsu.edu