1. Making Clean Local Energy Accessible Now September 26, 2013 Ted Ko Associate Executive Director Clean Coalition ted@clean-coalition.org CLEAN Resource Hub Tools to Open Wholesale DG Markets

2. Making Clean Local Energy Accessible Now 2 Clean Coalition – Mission and Advisors Board of Advisors Jeff Anderson Co-founder and Former ED, Clean Economy Network Josh Becker General Partner and Co-founder, New Cycle Capital Pat Burt CEO, Palo Alto Tech Group; Councilman & Former Mayor, City of Palo Alto Jeff Brothers CEO, Sol Orchard Jeffrey Byron Vice Chairman National Board of Directors, Cleantech Open; Former Commissioner, CEC Rick DeGolia Senior Business Advisor, InVisM, Inc. John Geesman Former Commissioner, CEC Eric Gimon Independent Energy Expert Patricia Glaza Principal, Arsenal Venture Partners Dan Kammen Director of the Renewable and Appropriate Energy Laboratory at UC Berkeley; Former Chief Technical Specialist for RE & EE, World Bank Fred Keeley Treasurer, Santa Cruz County, and Former Speaker pro Tempore of the California State Assembly Felix Kramer Founder, California Cars Initiative Amory B. Lovins Chairman and Chief Scientist, Rocky Mountain Institute L. Hunter Lovins President, Natural Capitalism Solutions Ramamoorthy Ramesh Founding Director, DOE SunShot Initiative Governor Bill Ritter Director, Colorado State Universitys Center for the New Energy Economy, and Former Colorado Governor Terry Tamminen Former Secretary of the California EPA and Special Advisor to CA Governor Arnold Schwarzenegger Jim Weldon Technology Executive R. James Woolsey Chairman, Foundation for the Defense of Democracies; Former Director of Central Intelligence (1993-1995) Kurt Yeager Vice Chairman, Galvin Electricity Initiative; Former CEO, Electric Power Research Institute Mission Mission To accelerate the transition to local energy systems through innovative policies and programs that deliver cost-effective renewable energy, strengthen local economies, foster environmental sustainability, and provide energy resilience

3. Making Clean Local Energy Accessible Now 3 Wholesale DG is the Critical & Missing Segment Distribution Grid Transmission Grid Project Size Wholesale DG Serves Local Loads Behind the Meter

4. Making Clean Local Energy Accessible Now 4 Wholesale DG Leader: Germany Solar Markets: Germany vs California (RPS + CSI + other) Germany added over 7 times more solar than California in 2012, even though Californias solar resource is 70% better!!! Sources: CPUC, CEC, SEIA and German equivalents. Cumulative MW

5. Making Clean Local Energy Accessible Now 5 German Solar Capacity is Small WDG (Rooftops) Source: Paul Gipe, March 2011 Germanys deployed solar capacity is essentially 100% WDG and about 90% is on rooftops 22.5% 26% 23.25% 9.25% 19%

6. Making Clean Local Energy Accessible Now 6 German Solar Pricing Translates to 5 cents/kWh Project SizeEuros/kWhUSD/kWh California Effective Rate $/kWh Under 10 kW0.1450.19030.0762 10 kW to 40 kW0.1380.18050.0722 40.1 kW to 1 MW0.1230.1610.0644 1.1 MW to 10 MW 0.1010.13170.0527 Conversion rate for Euros to Dollars is 1:$1.309 Californias effective rate is reduced 40% due to tax incentives and then an additional 33% due to the superior solar resource Source: http://www.wind-works.org/cms/index.php?id=92, 10 September 2013 Replicating German scale and efficiencies would yield rooftop solar at only between 5 and 7 cents/kWh to California ratepayers

7. Making Clean Local Energy Accessible Now 7 Policy/ProgramTypeMarket Results Gainesville, FL FIT Program Municipal Program German Style Feed-in Tariff Installed solar grew 53x Local companies grew > 3x Vermont SPEED 2009 Legislation Statewide Program FIT converted to RFP Original 50 MW program expanded to 127.5 MW in 2012, then oversubscribed Sacramento Municipal Utility District (SMUD) Municipal Program Value-based CLEAN Program 100 MW installed < 2 years Equivalent to 2.5 GW across CA Wholesale DG in the US (sample) California AB 1969 2008 Legislation State Legislation Value-based Standard Offer 2+ years of no uptake Fully subscribed with drop in PV costs AR, IA, OR, ME 2013 CLEAN bills State Legislation Variety of CLEAN designs Introduced legislation all held or died in the process Long Island Power Authority (LIPA) CLEAN Solar-II Municipal ProgramSuccessful 50 MW led to 100 MW expansion Minnesota HF720 2013 Legislation State Legislation Pseudo-CLEAN Program Unlimited program with value of solar methodology Georgia Power Advanced Solar Initiative Regulated Utility Program Mixed CLEAN / RFP 735 MW total over 5 years Initial allocation heavily oversubscribed

8. Making Clean Local Energy Accessible Now 8 Processes for Creating State Policies Start Campaign Start Campaign Sufficient Statutory Mandates? Pitch Concept Build Coalition Design Bill Navigate Enact Open Proceeding Build Coalition Design Implementation Intervene Launch Yes No

9. Making Clean Local Energy Accessible Now 9 Policymakers: Legislators, Regulators, Standards Setters Legislative Materials Legislative Materials Communications Collateral Communications Collateral Implementation Guides Implementation Guides Supporting Materials Model Tariffs Model Contracts Model Tariffs Model Contracts Local CLEAN Program Guide Local CLEAN Program Guide Labor Unions Trade Assoc NGO Advocates Local Companies Community Orgs Local Government CLEAN Resource Hub (CRH) and Stakeholders

10. Making Clean Local Energy Accessible Now 10 CLEAN Programs Defined CLEAN = Clean Local Energy Accessible Now CLEAN Program Features: Procurement: Standard and guaranteed contract between the utility and a renewable energy facility owner to purchase 100% of generation at a predefined rate for a long duration Interconnection: Predictable, streamlined distribution grid access Financing: Low-risk contracts will attract lower-interest financing

11. Making Clean Local Energy Accessible Now 11 Fictional Advocacy Group – AZ Energy Futurists Lets take advantage of our most abundant renewable resource – the sun - with a CLEAN Program for Arizona focused on wholesale distributed solar PV Arizona is actively talking about the value of solar energy, so lets make sure we highlight all the benefits of distributed PV. Our campaign will be called AZ CLEAN CRH Scenario: Arizona Start Campaign Start Campaign

12. Making Clean Local Energy Accessible Now 12 DG Catalog of Benefits Locational Benefits Brief CLEAN Program Checklists AZ CLEAN : Build Coalition Build Coalition Supporting Materials Communications Collateral Communications Collateral CLEAN Program Standard Deck

13. Making Clean Local Energy Accessible Now 13 Legislation Examples & References Legislation Summary Template AZ CLEAN : Pitching Legislative Concept CLEAN Program Checklists DG Catalog of Benefits Pitch Concept Legislative Materials Legislative Materials Supporting Materials Communications Collateral Communications Collateral CLEAN Program Standard Deck

14. Making Clean Local Energy Accessible Now 14 Full Proposal Example Legislation Proposal Template Legislation Examples & References In-State Renewables Brief AZ CLEAN : Designing Legislation Market Responsive Pricing Brief Legislative Materials Legislative Materials Supporting Materials Design Bill Implementation Guides Implementation Guides Pricing Guide Program Rules & Best Practices Guide

15. Making Clean Local Energy Accessible Now 15 Legislation Examples & References In-State Renewables Brief AZ CLEAN : Campaigning DG Catalog of Benefits CLEAN Program Checklists Market Responsive Pricing Brief Locational Benefits Brief Legislative Materials Legislative Materials Supporting Materials CLEAN Program Standard Deck Example Op-Eds Media Training Guide Navigate Enact Communications Collateral Communications Collateral

16. Making Clean Local Energy Accessible Now 16 DG Catalog of Benefits Locational Benefits Brief AZ CLEAN : Implementation Supporting Materials Model Interconnection Tariff CLEAN Model PPA Design Implementation Implementation Guides Implementation Guides Pricing Guide Program Rules & Best Practices Guide Model Tariffs Model Contracts Model Tariffs Model Contracts Launch

17. Making Clean Local Energy Accessible Now 17 The CLEAN Resource Hub makes it easy for policymakers and advocates to design, enact and implement CLEAN Programs Available on the website today CLEAN Program Legislative Materials CLEAN Program Implementation Guides Model Interconnection Tariff and Model PPA WDG Supporting Material WDG Communications Collateral CRH is a Living Resource Feedback on materials is welcome Constantly evolving and growing (notices will be sent for major releases of new material) Open to contributions from other parties CLEAN Resource Hub - Today

18. Making Clean Local Energy Accessible Now 18 The CLEAN Resource Hub will provide the latest thinking, policy designs and actionable materials for opening up the wholesale DG market segment Next generation of Interconnection Grid Modeling Automated interconnection studies Distribution Grid Planning Optimal locations Proactive distributed resource planning Intelligent Grid solutions Renewables Integration & Advanced Inverters Grid balancing / Ramp control with intermittent resources Voltage support / reactive power Frequency support CLEAN Resource Hub – Future Vision

19. Making Clean Local Energy Accessible Now 19 Legislative Materials Legislative Materials Communications Collateral Communications Collateral Implementation Guides Implementation Guides Supporting Materials Model Tariffs Model Contracts Model Tariffs Model Contracts Local CLEAN Program Guide Local CLEAN Program Guide Follow Up New Initiatives General Questions Contact: Gary Pett gary@clean-coalition.org Content / Policy Details Custom Collaboration Contact: Ted Ko ted@clean-coalition.org

20. Making Clean Local Energy Accessible Now 2013 Back-Up Slides

21. Making Clean Local Energy Accessible Now 21

22. Making Clean Local Energy Accessible Now 22 TopicMaterialsPurpose Legislative Materials Proposal Template and Bill Examples Full Proposal Example, Summary Template In-state Renewables Brief Advocacy, Design Advocacy Design Implementation Guides Pricing, Program Rules Design concepts Supporting Materials CLEAN Program Checklists DG Catalog of Benefits Locational Benefits Brief Market Responsive Pricing Brief Advocacy content Design content Communications Collateral Media Training Guide, Example Op-Eds CLEAN Program Standard Deck Template Letter to Regulatory Comm content Comm collateral Model Tariffs and Contracts Model Interconnection Tariff Model PPA Detailed Design CRH Materials

23. Making Clean Local Energy Accessible Now 23 Model Interconnection Tariff for Wholesale DG Clear and simple standards and procedures reduce errors and uncertainty, allowing applications to be handled consistently and without delay Clear cost determination is the overriding issue for developers decisions and for a successful interconnection process Current grid information should be maintained and readily available to generation interconnection staff and developers Review Screens: is the aggregate Generating Facility capacity on the line section less than 100% of the section minimum load? Timelines: Within fifteen (15) days following determination of Simplified Interconnection…the Utility shall tender a draft Interconnection Agreement Model Tariffs

24. Making Clean Local Energy Accessible Now 24 Model Tariffs and Contracts are full best practice examples, including actual legal language and detailed justifications Model Power Purchase Agreement (PPA) Seller hereby provides and conveys all Green Attributes associated with all electricity generation from the Project to Buyer as part of the Product being delivered. Buyer shall pay Seller the Contract Price for the Product that Seller would have been able to deliver but for the Unforced Curtailment Order a collateral requirement equal to twenty dollars ($20.00) if Contract Capacity is less than 1,000 kW, or fifty dollars ($50.00) if Contract Capacity is greater than or equal to 1,000 kW, for each kilowatt of the Contract Capacity Seller may, without Buyers consent, transfer, sell, pledge, encumber or assign this Agreement or the accounts, revenues or proceeds hereof to its Lender Model Contracts

25. Making Clean Local Energy Accessible Now 25 Rule TypeExample EligibilityCapacity limited to 100% minimum coincident load (no backflow) Seller ConcentrationNo single developer can have contracts for more than X% of allocated capacity based on size of overall program ViabilityDevelopment Security of $20/KW TimelinesCommercial Online Date (COD) within 18 months with permitted extensions InterconnectionInitial interconnection cost study completed before contract execution Guides: CLEAN Program Rules

26. Making Clean Local Energy Accessible Now 26 Locational Benefits Avoided Grid Costs and Line Losses Private Investment in Community Avoided Environmental Impacts Employment Local Generation Facility

27. Making Clean Local Energy Accessible Now 27 Market Responsive Pricing (MRP) Brief adjust prices offered over time under CLEAN programs based on the market response