Washington State Energy Policy Trends in 2011 -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 www.dsireusa.org / February 2010 DC 23 states State program(s) only Utility, local, or private program(s) only State program(s) + utility, local, and/or private program(s) Puerto Rico offer grant programs for renewables 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. Sales Tax Incentives for Renewables www.dsireusa.org / February 2010 DC 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. 26 states + PR offer sales tax incentives for renewables 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 State BC Alberta Washington Montana Oregon Idaho Wyoming California Nevada Utah Colorado Arizona New Mexico 2020 2015 2010 N/A N/A N/A N/A N/A N/A 15% 3% 0 15% 15% 10% 20% 15% 0 0 0 0 0 0 0 33% 26% 20% Must atleast +1% per Year 20% 20% 12% 0 0 0 20% 15% 5% 10% 5% 2.50% 15% 15% 0 Renewables….WECC wide: Goals vs. Current US Area of WECC 200,000 Target Renewable 180,000 Expected 2008 Renewable 160,000 140,000 GWh 120,000 100,000 80,000 60,000 40,000 20,000 2010 2015 Year 2020 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 18 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 Focus Permitting HB 2516 19 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 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