A Synthesis of Recent Energy Policy Recommendations for Arizona

Guiding Principles Desert Context Technology Investment

Infrastructure Transportation

Energy policy should be long-term and include externalities

Use measurable outcomes and benchmarks

Gov't should approach EE as a partner and adopt holistic policies with industry

Stress importance of individual responsibility

RE/Sustainable energy should play predominant role

Rely on diverse, sustainable portfolio with close to zero emissions

Prioritize transportation fuels & NG affordability and reliability

Develop detailed definition of solar supply chain to improve solar cluster devMaintain & upgrade energy infrastructureProvide incentives to implement DGInfrastructure should support innovationImplement Solar Ready OrdinancesImplement E-SIDS to establish PACE accessW/ CA, develop mutually-beneficial transmission systems for RE and under-utilized Natural Gas plants ("renewable firm zones”) Map a business cluster to encourage export strategy

Develop detailed solar energy generation plan with solar exports from large-scale generation

Consider arid and sunny environment and political/economic context

Encourage DG

Encourage desert-friendly solar tech development

Promote public transportation

Use public incentives to support investment in emerging and new to market tech

Promote public-private partnerships for emerging tech

Focus on business attraction & retention

Define projects of significance by a set of selective characteristics to encourage investment; tie them to performance-based incentives

Increase research & implementation funding for energy storage

Guiding Principles cont’d

= Arizona Town Hall = Arizona Energy Consortium Solar Roadmap = ASU Solar Summit March 2012

Policy consistency, transparency is key

Regional transmission development support is critical

A Synthesis of Energy Policy Recommendations for Arizona cont’d

Environmental Justice Economics/Rate Setting Consolidation/Cooperation

Demand Side Behavior Energy Safety EducationImprove K-12 education with focus on science & techImprove workforce development & trade programsLearn from other states' policies that successfully address innovation & developmentDevelop cohesive narrative

Recognize and improve environmental justice outcomes

Build transmission & delivery in rural areas

Public-private cooperation for long-term investment, emerging tech & innovationState leaders should agree to goals & implementation plans, including fair cost burdensStandardize permitting process for both installation and transmission linesDiscuss regional needsIdentify gov’t agency to implement a comprehensive energy policyCreate regional permit approval centers

Energy policies should include true costs of energyLCA to incorporate costs & incentives into energy pricingRe-implement 1603 Treasury GrantUtilize Master Limited PartnershipsFocus on obtaining project investment through public-private partnershipsEncourage bank investment by connecting solar dev to community reinvestmentEncourage AZ Congressional Delegation to develop aggressive RE Incentives tax credits

Change consumption habits

Educate for greater awareness of comprehensive energy costs

Educate for public understanding of benefits, costs and opportunities

Conduct hazard assessment & mitigation plan for all energy facilities in AZ

Encourage DG and storage on military bases

= Arizona Town Hall = Arizona Energy Consortium Solar Roadmap = ASU Solar Summit March 2012

Natural gas can help keep energy costs down

Solar industry & utilities need to work to improve grid stability, customer service, and ratemaking