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State Clean Energy Policies Analysis: Technical Committee Meeting

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Challenge: limited outcome data available, so design elements are the ... Established best practices are based on design, not outcome. Policy breadth metric is ... – PowerPoint PPT presentation

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Title: State Clean Energy Policies Analysis: Technical Committee Meeting


1
State Clean Energy Policies Analysis Technical
Committee Meeting
  • August 27, 2008

2
Agenda
  • 900 - 925 SCEPA Project brief description,
    summary, update and next steps (Liz)
  • 925 - 1000 State Renewable Energy Scorecard
    presentation, discussion, comments (Liz and group
    discussion).
  • 1000 1015 Next policy proposed method and
    data sources overview RE tax incentives -
    personal and corporate
  • 1015- 1030 EE update (Matthew Brown)
  • 1030 -1050 QA Wrap up, next steps, collection
    of names of volunteers 

3
SCEPA Project Objectives
  • Identify and quantify impacts of current state
    EE/RE policies that are
  • most effective policy types (e.g. RFS,
    Incentives, decoupling, etc) for achieving
    particular public policy goals (e.g. local
    economic growth)
  • most effective variables within policy types
    (e.g. EERS, RPS, Sales tax exemption, etc.)
  • Promote understanding of current best policies to
    foster broader use by more states
  • Engage leading state officials and EE/RE market
    experts to identify and characterize next
    generation of innovative policies

4
Project Approach
  • Develop detailed work plan, project team, and
    technical committee (Sept, 07)
  • Conduct analysis to quantify and characterize
    policy impacts by type and drivers (Sept
    2007-2008)
  • Conduct sessions at regional workshops and
    national conferences to identify and share policy
    best practices and innovations and plan further
    work (Spring or Summer, 08?)
  • Further develop next-generation innovations and
    complete policy best practices analysis and
    documentation
  • Disseminate information on state policy best
    practices and innovations
  • Provide technical assistance (including
    peer-exchange) to support policy best practice
    and innovation application

5
SCEPA Update
  • Completions to date
  • Spring/Summer 2008 Delays
  • Next Steps (known)
  • Next Steps (wish list)

6
State Policy Scorecard
  • Goal Better inform state decision and
    policy-makers in identifying priority policies
    and groups of policies for increasing reasonable
    clean energy use
  • Strategy
  • Identify policy impacts and the design elements
    that result in them
  • Identify suites of policies that have large
    impacts and relate that information to trends in
    RE development

7
Current Status Year 1 Report
  • Compiles/develops best practices for RE policies
  • Defines renewable energy policy portfolio as
    suite of policies with large impacts
  • Provides a first look at the breadth of state
    portfolios of best practice policies
  • Identifies a huge range of opportunities for
    further research

8
RE Policy Portfolio
  • Included in Breadth Analysis
  • Not Included in Breadth Analysis
  • Grants and Rebate Programs
  • Interconnection
  • Net metering policies
  • Public Benefit Fund for Renewable Energy
  • Renewable Energy Production Incentives
  • Renewable Fuels Standards
  • Renewable Portfolio Standards
  • Tax Incentives (corporate, personal, property and
    sales where applicable)
  • Contractor Licensing
  • Equipment Certification
  • Generation Disclosure
  • Green Power Purchasing
  • Line Extension Analysis
  • Solar and Wind Access Laws
  • Green power purchasing

9
Best Practice Example RPS
  • Goal Identify the elements of RPS that work to
    increase RE penetration
  • Multiple Data Sources and research
  • Challenge limited outcome data available, so
    design elements are the determination of best
    practice

10
12 RPS Best Practice Elements
  • REC Trading
  • REC Tracking
  • Financial Penalties (ACP or compliance penalties)
  • Utility Status Reporting
  • RPS Review Board
  • Solar Support
  • Distributed Generation Support
  • Long-term Project Financing
  • Applies to Most Load Serving Entities 90
  • Out-of-State Projects Eligible projects are not
    restricted to only in-state development, although
    there may be a percentage of projects that are
    required to be developed in state.
  • Transmission Complimentary proactive
    transmission policies are in place (e.g. state
    transmission authority, renewable energy zones).
  • Short Year Compliance States with short-year
    compliance obligations in 2006 were considered to
    be following best practices if they have achieved
    a minimum of 95 compliance with their goals.

11
RPS Scoring Criteria Is it a best practice
policy?
  • Not all elements applicable across states
  • Assuming that the policy is working in existing
    states, determine average number of elements.
  • States with that number and above receive point
  • Strengths Starting point for analysis, allows
    for discussion and data gap identification
  • Weaknesses basic assumption may be incorrect,
    not quantitative

12
RPS Results
13
Overall Results
14
Conclusions
  • States vary widely in use of RE policies
  • Established best practices are based on design,
    not outcome
  • Policy breadth metric is incomplete
  • Role of policy in development is not quantified

15
Next Steps
  • Examine results in relation to most renewable
    energy development over length of policy and in
    recent years perhaps better weighting of
    policies is here
  • Further develop best practices in policy
    development
  • Create a framework for understanding policy
    portfolio and policy interaction effects.
  • Consider impacts and incorporation of innovative
    policies into analysis

16
QUESTIONS/COMMENTS ON SCORECARD
17
SCEPA Metrics
18
Renewable Energy Tax Incentives
  • Claire Kreycik and Gail Mosey

19
RE Tax Incentives Summary
  • Purpose of the report
  • To evaluate the impact of a well-designed tax
    incentive on state drivers
  • To present a methodology for matching incentives
    to resource availability
  • Purpose of this presentation
  • To propose methods for measuring impact of
    policies and get feedback from team

20
Examples of corporate and personal tax credits
  • Oregons Business Energy Tax Credit 50 of
    eligible project costs, distributed over 5 years,
    with maximum incentive depending on technology.
    Available for a wide range of RE (and EE)
    technologies.
  • Arizonas Residential Solar and Wind Energy
    Systems Tax Credit 25, 1,000 maximum credit,
    includes PV, solar water heating, daylighting,
    solar space heating, and wind

21
Corporate Tax Incentives 23 states
Personal Tax Incentives 20 states
22
Methodology for economic impact analysis
  • Draw upon best practices analysis to develop
    well-designed tax incentives for each renewable
    technology
  • Estimate increased market penetration (range)
    from these typical tax incentives (draw upon case
    studies and available tax revenue information)
  • Stage the selected tax incentive in a state
    context Use a state for each example policy
    that has adequate resources
  • Run impact analysis in the JEDI model for PV and
    Wind

In addition to state economic impacts, we will
consider savings to constituents.
23
Methodology for estimating fuel diversity impacts
  • Assuming the same market penetration estimates,
    estimate increased renewable capacity
  • Use DOE program information (capacity factors,
    etc.) to estimate renewable energy produced
    annually in MWh
  • Assume that this will offset fossil fuel
    electricity (national mix)
  • Energy security for this policy might revolve
    around the benefits of distributed generation.
    Comments?

24
Methodology for estimating global environmental
impacts
  • Use renewable energy production estimates from
    above, estimate GHG using EPAs Greenhouse Gas
    Equivalencies Calculator

25
Best Practices Resource Availability
  • The importance of matching incentives to
    available resources, not to what is considered
    fashionable
  • Why this isn't happening currently
  • information/data availability,
  • political will
  • Why this needs to be happening
  • policy effectiveness,
  • market development

26
Energy EfficiencyUpdate EEPS and EE Tax
Incentives
  • Matthew Brown

27
Thank you for your attention today!
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