2010 - The Alternative Energy Policy Landscape Surrounding AR

Remember the Elephant in the Room

Coal, 47%

Natural Gas, 15%

Nuclear, 28%

Hydroelectric, 6% Other Renewables, 3%

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 MMBtuCoal $2.25 per MMBtuResidential Electrical Energy Price11.6 cents per KWH

Generation Disclosure Policy

22 states + DC have adopted a

generation disclosure policy

22 states + DC have adopted a

generation disclosure policy

Sources: NREL and DSIRE 2009

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

43 states + DC & PR have adopted a net

metering policy

Renewable Energy Portfolio Standards (RSP)

MO: 15% x 2021

KS: 20% x 2020IL: 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

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

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

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 & PRoffer rebates

for renewables

23 states +

DC & PRoffer rebates

for renewables

Note: This map does not include rebates for geothermal heat pumps or other energy efficiency technologies.

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

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.

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

31 states offer loan

programs for renewables

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

27 states + PR offer sales tax

incentives for renewables

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

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

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.

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)

23 states + DC authorize

PACE (22 states have passed

legislation and HI permits it based on existing law)

PACE financing authorized

(PACE)

Public Benefit Funds for Renewable Energy

18 states + DC have public benefits funds

($7.2 billion by 2017)

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

3rd - Party Solar Power Purchase Agreements

At least 17 states + PR authorize or

allow 3rd-party solar PPAs

At least 17 states + PR authorize or

allow 3rd-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.

Tax Credits for Renewable Energy

25 states + PR offer tax

credits for renewables

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.

Energy Efficiency Policy

Rules, Regulations & Policies for Energy Efficiency

State

  Appliance/Equipment   Energy Standards for   Building Energy Codes  

  Public Benefits Funds  Standards Public Buildings  

 Federal  1-F   1-F      

 Alabama    1-S   1-S    

 Arkansas    1-S   1-S    

 Kansas    1-L   1-S    

 Kentucky    2-S   1-S    

 Louisiana    1-S   1-S    

 Mississippi      1-S    

 Missouri    1-S   1-S    

 Oklahoma    1-S   1-S    

 Tennessee    1-S   1-S 1-L    

 Texas    2-S 4-L   1-S 2-L    

 Totals 14 50 53 23

F = Federal   S = State/Territory   L = Local

State Energy Efficiency Policy

Rules, Regulations & Policies for Energy Efficiency

State

  Appliance/Equipment   Energy Standards for   Building Energy Codes     Public Benefits Funds  Standards Public Buildings  

 Federal  1-F   1-F      

 Alabama    1-S   1-S     Arkansas    1-S   1-S    

 Kansas    1-L   1-S     Kentucky    2-S   1-S    

 Louisiana    1-S   1-S    

 Mississippi      1-S     Missouri    1-S   1-S    

 Oklahoma    1-S   1-S     Tennessee    1-S   1-S 1-L    

 Texas    2-S 4-L   1-S 2-L     Totals 14 50 53 23

F = Federal   S = State/Territory   L = Local

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)

Policy – Important but Subject to Two Eyes

Interpretation and Implementation

The politics of turfLife threatening loopholesAgreement and clarityRules of engagement Triggers, limits and thresholdsLocation and ownershipSupported by Research and Education

Planning?

Stakeholder involvementTurf issues and authorityResource assessmentNeed assessmentOpportunity assessmentPublic knowledge and awarenessResearch needs