State Clean Energy Policy Analysis (SCEPA): Impacts and Opportunities November 29, 2007 Project Description and Progress Webcast

Meeting Agenda 1)Project Objectives 2)Logistics 3)Project Design and Analytic Framework 4)Current Policy and Draft Results 5)Questions/Comments/Avenues for more information

Objectives for SCEPA Project 1) Identify and quantify impacts of current state EE/RE policies to inform policy decisions and development 2) Promote understanding of current policy impacts to foster broader use of high impact policies 3) Engage leading state officials and EE/RE market experts to identify and characterize next generation of innovative policies

Logistics DOE/WIP Funded NREL Implemented with policy experts from NREL and Interenergy Solutions, Inc (Matthew Brown) Technical Committee - states and other interested parties offering feedback and direction

Project Approach 1.Develop detailed work plan, project team, and technical committee (Sept 07) 2.Conduct analysis to quantify and characterize policy impacts by type and drivers (Sept 07-08) 3.Dissemination of project info and OUTCOMES! (Sept 07-08): Website Conduct sessions at regional workshops and national conferences Direct Technical Assistance on specific policies in coordination with TAP 4.Further develop next-generation innovations and complete policy analysis and documentation (Spring/Summer 08) 5.Provide technical assistance (including peer-exchange) to support policy best practice and innovation application (Late 08)

Project Design and Analytic Framework

Primary Questions What do state policy makers and program implementers need? How can we approach policies systematically and comparably?

What do State Actors Need? Measures of success that make sense to states (policy drivers) –Economic development –Environmental impact –Energy security Level playing field for policy options Efficient delivery and communication of information

How to Approach Policies Systematically and Comparably? Basic decision making framework 2 part process

Step One: How Policies Address the Driver

Comparable Metrics Economic: –% change in GSP –% change in employment –% change in renewable/efficiency industry value Energy Security –% increase in fuel diversity –% Imports offset Environmental - % GHG, criteria pollutant reduction

Step 2: In-Policy Variables Concept: –Capture the impacts of innovative in-policy choices –Capture non-quantitative measurable elements General Policy Metrics (it depends!) –Applicability to other states (includes prerequisite policies) –Unintended consequences Examples: –Economic Development Zones in an RPS (Texas) –Sunset dates on tax credits –Compliance mechanisms

Known Challenges to Approach Different state resources (financial and EE and RE), levels of interest Lack of data on existing policies Policy impact attribution (suites) Unknown Challenges to Approach We know they are out there…and to find them, we started the project:

Current Policies (completed in January 08) EERS (Matthew Brown) RPS (David Hurlbut) RFS (Gail Mosey) Next up (completed in Early 08) Decoupling/lost revenues/utility incentive EE and RE Tax Incentives White certificates RE products grants and rebates Feed-in tariffs

Expected Results for Policy Comparison EconomicEnvironmentalES/FD PolicyValue of Industry Net Job GSPCons. Purch. Power Local Air Quality Global Air Quality Water Quality Land Use Imports Offset Fuel Diversity EERSMed Unk HighUnk RFSHighMedUnk High RPSHigh (if imprts exc) Med (w/ imports) Med (if imports exc) High (with Green Power) Medium (w/o) Med LowHigh

Technical Committee As policies are evaluated, technical committee webcasts for interested parties to comment on metric development and usefulness to states One-on-one calls with analysts for input Document/report review Overall project input (303)

Questions, Comments?

Additional Slides

Policy Priorities Policy Renewable Portfolio Standards Renewable Fuels Standards Energy Efficiency Resource Standards Decoupling/Lost Revenues/Incentives Renewable Project Contracting and Financing RE Tax Incentives: Personal DG/Net Metering, property tax exemptions, easements, sales tax exemptions. RE/Alt Fuels Tax Incentives: Personal Auto White Certificates EE Tax Incentives EE Tax Incentives: Personal EE Tax Incentives: Corporate EE Tax Incentives: Sales EE Tax Incentives: Property

Policy Priorities Tax Incentives: Corporate Auto alt fuels Renewable Products Grants Renewable Products Rebates Feed in tariffs EE Rebates EE Grants EE Loans Energy Efficiency Mortgages EE Pay As You Save EE QAP Allocations for Efficiency EE Bonds Administration of Energy Eff Programs Demand Response Programs Non-Traditional Rate Structures: TOU (EE and RE) Non-Traditional Rate Structures: Inverted Block (EE and RE) Non-Traditional Rate Structures:Others (EE and RE) EE Public Benefit Funds PBF Renewable Related Policies

Policy Priorities - Beyond Consumer Information/Education Bulding Codes Appliance Standards Performance Contracting Standards for Public Buildings Green Building Incentives Transmission Policies Industry Recruitment incentives Loans Standardized Permitting for Renewables

Outreach Conference/MeetingStart DateLocation NCSL Fall Forum11/27/07Phoenix, AZ DOE State Meeting West12/07 NARUC-Institute of Public Utilities Annual Policy Conference Dec-07Charleston, SC NGA Gov's Biofuels Summit12/13/07Tampa, FL NASEO 2008 Winter Conference2/3/08Washington, DC DOE State Meeting East3/08 NCSL Spring Forum4/22/08Washington, DC MACRUC 2008 Convention1-Jun-08Williamsburg, VA NCSL 2008 Legislative Summit7/22/08New Orleans, LA ACEEE Summer Study in Buildings8/17/08Monterey, CA ACEEE Energy Efficiency in Agriculture Forum 2/8/08Des Moines, IA CESA Spring Meeting5/11/08New Haven, CT