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

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

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

4

Grant Programs for Renewables / 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

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 / February 2010 Puerto Rico 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

8

9

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

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 11

WECC RPS Mandates

Renewables….WECC wide: Goals vs. Current

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 16

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 17

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 18

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 19

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 20

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 21

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 22