October 2010 Idaho’s Emerging Green Industry Presented by Jennifer Verdon

Idaho’s Green Industry Renewable Energy Market Potential (Wind, Solar and Bio Energy) Transmission and Infrastructure Government Initiatives PURPA Idaho’s Innovative Resources

Overview: Idaho’s Green Industry Renewable Energy Market Potential –Hydro –Geothermal –Wind –Solar –Bio Energy

Wind Market Potential

U.S. Wind Installations

Idaho has the 13 th best wind power potential in the U.S. U.S. Wind Power Potential

Wind Power Capacity Wind power capacity nearly doubled in Idaho from 2008 to 2009.

Industry Needs “The wind power industry is facing shortages of wind turbine components, as demand for wind power continues to increase in the U.S. and worldwide.” Randall Swisher Executive Director American Wind Energy Association

Identified Sites18,192 MW Advanced Planning1,462 MW Signed Power Contract199 MW Under Construction276 MW Operating147 MW Idaho Wind Power Status

Recent Wind Developments in Idaho Exergy Development Group and GE Financial Services – 11 wind farms valued at nearly $500 million Ridgeline Energy and BP Wind Energy – megawatts American Wind Group and Renaissance Engineering & Design – 60 megawatts

Idaho’s companies involved in crucial stages of the supply chain AMET-precision welding equipment for tower construction Premier Technology – manufacturer with ability to create design-to-deliver projects Nordic Windpower-blade construction Pavilion Energy Resources and Partners – to build wind turbine manufacturing facility LA Aluminum Casting Company – produces wind turbine parts Power Engineers - electrical distribution Renaissance Engineering - construction management and site evaluation

Solar Market Potential

Annual Installed (Grid Connected) PV Capacity Source: Interstate Renewable Energy Council, July 2009

Renewable Energy: Solar Idaho is close to the demand

Solar Resource Comparison

Estimated Number of PV Systems in Idaho (220 Watts or Larger)

Idaho’s companies involved in crucial stages of the supply chain Hoku Scientific Video Clip Inovus Solar Micron Technology Transform Solar LA Aluminum Casting Company Sun

Bio Energy Market Potential

Bio Fuel Trends in the US Source: Energy Information Agency (EIA)

Bio Fuel Trends in the US Source: Energy Information Agency (EIA)

Overview of Bio Fuels in Idaho Ethanol Idaho offers a multitude of sources for the ethanol production. (Grains, Woody Biomass Cellulosic, Sugars (Beet Pulp)) Feedstock for Idaho’s agricultural sector

Overview of Bio Fuels in Idaho Biodiesel University of Idaho – 30 years of research experience Canola Mustard Meal & Glycerol (Byproduct) Uses Cattle feed Green Fertilizer Food Products

Idaho’s companies involved in crucial stages of the supply chain PACIFIC ETHANOL IDAHO SUSTAINABLE ENERGY PLEASANT VALLEY BIOFUELS THE NEW ENERGY COMPANY * DYNAMIS ENERGY *

Transmission and Infrastructure

Idaho’s Strategic Energy Market Location

Idaho’s Strategic Distribution Location

Transportation Infrastructure Boise Sandpoint Coeur d’Alene Moscow Lewiston Grangeville Idaho Falls Pocatello Twin Falls Sun Valley Highways: Rail Roads: Airports Port of Lewiston

Government Initiatives

Aggressive Performance-Based Incentives 3% Investment Tax Credit –New/used depreciable property (machinery, equipment) used in Idaho –Credit can offset up to 50% state income tax liability and may be carried forward up to 14 years 5% Research and Development Tax Credit carried forward up to 14 years “Idaho Business Advantage” – enhanced tax incentives on investment, real property development, property taxes and new job creation tax credits

Public Utility Regulatory Policies Act (PURPA)

Public Utility Regulatory Policies Act of 1978 (PURPA) More than any other single federal law, PURPA made possible renewable energy development in Idaho and the nation. Small power producers meeting specific criteria are guaranteed purchase and interconnection. (Regulated Utilities are required to buy independent power.)

PURPA Continued Administered by the FERC (Federal) Administered by the PUC (State) Allows “Qualifying Facility” to Sell Power to the Utility Price Paid is the “Avoided Cost” Renewable Energy Plants in Surrounding States Sell Power to Idaho Because of High Avoided Cost Rates.

Idaho’s Innovative Resources

Center of Advanced Energy Studies Universities Idaho National Lab Private Sector Idaho Office of Energy Resources Greenhouse Center for Energy Efficiency Research

Benefits of Alternative Energy Research and Development in Idaho Potential partnerships with Idaho National Laboratory and access to network of U.S. labs focusing on alternative energy Facilities available to test new products and technologies College and professional programs in place to train wind and alternative energy professionals Boise State University is one of only six Wind Application Centers in the United States

Technology R&D Leadership #1 Patents Per Capita: Forbes.com, May 2009 High Tech firms employ more than 37,000 people earning Idaho the 10 th highest ratio of high tech workers in the country Idaho had the 13 th most investment in R&D in 2008 (AEA 2008) Idaho has the 6 th best innovation capacity in the nation (Kauffman Foundation/Information Technology & Innovation Foundation, 2007)

Idaho’s Innovative Companies

Governor C.L. “Butch” Otter

Department of Commerce 700 W. State St. P.O. Box Boise, Idaho P: (800) F: (208)