IPED Financing Solar Energy Conference Leveraging the Solar Tax Credit Virginia ARRA Example Stephen A. Walz Senior Advisor for Energy Policy Commonwealth of Virginia Office of Governor Timothy Kaine May 22, 2009

ARRA Energy State Energy Program –Energy efficiency and renewable energy support –State flexibility Energy Efficiency and Conservation Block Grant Program –Efficiency –Renewable in local government buildings U.S. Department of Energy, Energy Efficiency and Renewable Energy Programs State program summaries at National Association of State Energy Officials (

Stimulus.virginia.gov Communications on ARRA in Virginia Governor Kaine opened for suggestions - February 10 to March 6; + 9,000 proposals –+ $465 billion for all proposals –+ $15 billion for energy-related proposals $85 million available for energy efficiency and renewable activities

Virginia ARRA Project Criteria Near-term jobs created or preserved Conventional energy saved or renewable energy produced - sustainability Leverages other funds, avoid free rider when other funds available Ease of implementation; measurable & verifiable Provides future value – transforms marketplace Consistent with Virginia Energy Plan & Governors Commission on Climate Change Implement 2009 legislative proposals

ARRA Energy Projects in Virginia $38 million grants for solar thermal, photovoltaic and small-scale wind –$15 million for residential & commercial – small distributed projects statewide $5 million wind; $10 million solar –$13 million for state facilities to leverage other funds $3 million wind; $10 million solar –$10 million for local government and school facilities $2.5 million wind; $7.5 million solar

ARRA Energy Projects in Virginia $10 million grants for incentives to develop energy from biomass and waste $15 million grants for energy efficiency improvements to residential and commercial facilities $10 million to support clean energy businesses & commercialization of energy technologies Technical assistance to local governments and public schools for energy savings performance contracting

EECBG Direct from DOE –Cities/towns with 35,000 + people or top 10 by population –Counties with 200,000 + people or top 10 by population –$44.5 million in Virginia – 28 localities Indirect through Virginia DMME –Cities & towns with less than 35,000 people –Counties other than top 10 by population –$9.7 million in Virginia

Solar Projects Meet technical standards; SRCC, other Residential, Commercial, Industrial –Customer applies; Pre approval; 6 months to complete –$2,000 per kW PV; $1,000 per kW equiv thermal –Done over 2 years – build industry capability in VA –Enhance net-metering Up to 10 kW residential; 500 kW commercial Includes 3 rd party ownership of renewable systems Local government, public schools –Locality to decide on approach –Leverage other funds –Public education component

Solar Projects State agencies; public universities –Aggregated/individual projects Aggregated for economic impact Public Private Education and Infrastructure Act Performance contracting add on –Non jurisdictional at State Corporation Commission (PUC) – increased flexibility –RFPs – pilot first, then aggregate

Solar Projects State agencies; public universities –PPAs Length; end terms Liabilities/risk sharing State standard terms and conditions REC ownership PJM capacity markets Carbon credits –Management issues Low power costs Limited state tax provisions Varying expertise – agency and legal

Other ARRA Energy Provisions Federal facilities; GSA and Military –Efficiency; renewable sources Workforce Training –Competitive for energy efficiency and renewable workforce training Weatherization Assistance Program Public Housing –HUD to local housing authorities and VHDA Energy Star Appliance Rebate –DMME to manage – fall 2009 application schedule Alternate Fueled Vehicles –Virginia Clean Cities Program Research, Development and Deployment –DOE Fossil, Energy Efficiency, Basic Science; Military

Other ARRA Energy Provisions Smart Grid –Utilities and product providers Diesel Emission Reduction Program –Department of Environmental Quality Innovative Technology Loan Guarantees; Renewable Energy Bonds Battery Manufacturing Tax credits/grants –ITC/PTC/Treasury grants - renewables, CHP, fuel cells, microturbines –Residential/business energy efficiency –Wind, solar, geothermal –Advanced energy manufacturing –Carbon sequestration –Plug in hybrid and other alternate fuel vehicle

Information Sources Virginia – – Federal – –

Contacts Al Christopher Director, Division of Energy Department of Mines, Minerals and Energy 1100 Bank Street, 8 th floor Richmond VA (804) Stephen Walz Senior Advisor for Energy Policy, Office of Governor Tim Kaine Director, Department of Mines, Minerals and Energy 1100 Bank Street, 8 th floor Richmond, VA (804)