1. 2010 - The Alternative Energy Policy Landscape Surrounding AR

2. Remember the Elephant in the Room Source: EIA 2009a 2007 Arkansas Electricity Generation by Fuel Type (Total Generation = 54,596 GWh) Coal Remains the State’s Fuel of Choice Ave. 2010 Spot Prices (H Hub) Natural Gas $4.69 per MMBtu Coal $2.25 per MMBtu Residential Electrical Energy Price 11.6 cents per KWH

3. Generation Disclosure Policy 22 states + DC have adopted a generation disclosure policy Sources: NREL and DSIRE 2009

4. Net Metering Policy State policy Voluntary utility program(s) only * State policy applies to certain utility types only (e.g., investor-owned utilities) LA: 25/300 AR: 25/300 MO: 100 KY: 30* KS: 25/200* OK: 100* 43 states + DC & PR have adopted a net metering policy

5. Renewable Energy Portfolio Standards (RSP) MO: 15% x 2021 KS: 20% x 2020 IL: 25% x 2025 OK: 15% x 2015 TX: 5,880 MW x 2015 29 states + DC have an RPS (7 states have goals) 29 states + DC have an RPS (7 states have goals) State renewable portfolio standard State renewable portfolio goal Solar water heating eligible Minimum solar or customer-sited requirement

6. RPS Policy with Solar and Distributed Generation Provisions TX: double credit for non-wind (non-wind goal: 500 MW) MO: 0.3% solar- electric x 2021 16 states + DC have an RPS with solar/DG provisions State renewable portfolio standard with solar / distributed generation (DG) provision State renewable portfolio goal with solar / distributed generation provision Solar water heating counts toward solar provision

7. Rebate Program For Renewable Energy Utility and/or local program(s) only State program(s) + utility and/or local program(s) State program(s) only 23 states + DC & PR offer rebates for renewables 23 states + DC & PR offer rebates for renewables Note: This map does not include rebates for geothermal heat pumps or other energy efficiency technologies.

8. Grant Programs for Renewable Energy Utility, local, or private program(s) only State program(s) + utility, local, and/or private program(s) State program(s) only 25 states offer grant programs for renewables Note: 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.

9. Loan Programs for Renewable Energy Utility and/or local program(s) only State program(s) + utility and/or local program(s) State program(s) only Note: This map does not include loan programs for geothermal heat pumps or other energy efficiency technologies. 31 states offer loan programs for renewables

10. Sales Tax Incentives for Renewable Energy State exemption + local governments (option) authorized to offer exemption or deduction State exemption or deduction Note: This map does not include sales tax incentives that apply only to geothermal heat pumps or other energy efficiency technologies. 27 states + PR offer sales tax incentives for renewables

11. Property Tax Incentives for Renewable Energy State exemption or special assessment + local government option Local governments authorized to offer exemption (no state exemption or assessment) State exemption or special assessment only 32 States + PR offer property tax incentives for renewables 32 States + PR offer property tax incentives for renewables

12. State Interconnection Policy Standard LA: 25/300* AR: 25/300* MO: 100*KY: 30* TX: 10,000 KS: 25/200* 40 States + DC & PR have adopted an interconnection policy State policy * Standard only applies to net-metered systems Note: Numbers indicate system capacity limit in kW. Some state limits vary by customer type (e.g., residential/non-residential).“No limit” means that there is no stated maximum size for individual systems. Other limits may apply. Generally, state interconnection standards apply only to investor- owned utilities.

13. Property Assessed Clean Energy OK: 2009 TX: 2009 LA: 2009 MO: 2010 23 states + DC authorize PACE (22 states have passed legislation and HI permits it based on existing law) PACE financing authorized (PACE)

14. Public Benefit Funds for Renewable Energy 18 states + DC have public benefits funds ($7.2 billion by 2017) State PBF * Fund does not have a specified expiration date ** The Oregon Energy Trust is scheduled to expire in 2025

15. 3 rd - Party Solar Power Purchase Agreements At least 17 states + PR authorize or allow 3 rd -party solar PPAs Apparently disallowed by state or otherwise restricted by legal barriers Status unclear or unknown Authorized by state or otherwise currently in use Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making binding financial decisions related to a 3rd-party PPA.

16. Tax Credits for Renewable Energy 25 states + PR offer tax credits for renewables Corporate tax credit(s) only Personal + corporate tax credit(s) Personal tax credit(s) only Note: This map does not include corporate or personal tax deductions or exemptions; or tax incentives for geothermal heat pumps.

17. Energy Efficiency Policy Rules, Regulations & Policies for Energy Efficiency State Appliance/Equipment Energy Standards for Building Energy Codes Public Benefits Funds StandardsPublic Buildings Federal 1-F Alabama 1-S Arkansas 1-S Kansas 1-L 1-S Kentucky 2-S 1-S Louisiana 1-S Mississippi 1-S Missouri 1-S Oklahoma 1-S Tennessee 1-S 1-S 1-L Texas 2-S 4-L 1-S 2-L Totals14505323 F = Federal S = State/Territory L = Local

18. State Energy Efficiency Policy Rules, Regulations & Policies for Energy Efficiency State Appliance/Equipment Energy Standards for Building Energy Codes Public Benefits Funds StandardsPublic Buildings Federal 1-F Alabama 1-S Arkansas 1-S Kansas 1-L 1-S Kentucky 2-S 1-S Louisiana 1-S Mississippi 1-S Missouri 1-S Oklahoma 1-S Tennessee 1-S 1-S 1-L Texas 2-S 4-L 1-S 2-L Totals14505323 F = Federal S = State/Territory L = Local

19. Other Policy Considerations  Feed In Tariff (FIT) (two states?)  Contractor Licensing (nine states)  Equipment Certification (three states & PR)  Green Power Purchasing (nine states)  Renewable Energy Access Laws (35 states & VI)  Production Incentives (six states)  Green Power Mandates (eight states)

20. Policy – Important but Subject to Two Eyes Interpretation and Implementation  The politics of turf  Life threatening loopholes  Agreement and clarity  Rules of engagement  Triggers, limits and thresholds  Location and ownership  Supported by Research and Education

21. Planning?  Stakeholder involvement  Turf issues and authority  Resource assessment  Need assessment  Opportunity assessment  Public knowledge and awareness  Research needs