NASEO’s 2019 West Regional

State and Territory Energy Officials Meeting

Policy Issues and Program Activities

May 21-22, 2019

Seattle, Washington

Alaska

Idaho

American Samoa

Montana

Arizona

Nevada

California

New Mexico

Commonwealth of the

Northern Mariana Islands

Oregon

Guam

Utah

Hawaii

Washington

NASEO’s 2019 West Regional State and Territory Energy Officials Meeting

American Samoa Territorial Energy Office

State Energy Program Activities:

• Lighting Retrofit – The goal and objectives for this activity is to retrofit if not but most of government facilities to meet energy high efficient lights to replace incandescent and other non efficient lights.

• Energy Education – Strengthening Education Programs through media advertisement services, schools and community energy education presentations outreach on renewable and energy related materials and tools, public energy awareness campaign. Schools and community visits are schedules and available for the energy education outreach awareness campaign.

Other (Non-SEP) Activities:

• WAP program – Weatherization Assistance Program

• LIHEAP program – Low Income Home Energy Assistance Program – assist the public with payment on their monthly electric bills.

NASEO’s 2019 West Regional State and Territory Energy Officials Meeting

State Energy Office: Arizona Department of Administration, Office of Grants and Federal Resources

Arizona’s Energy Policy Issues:

The Arizona Corporation Commission has proposed the Arizona’s Energy Modernization Plan. The plan

revolves around eight main topics: policy framework, clean energy, energy storage, forest health-

biomass related energy, dispatchable clean energy, energy efficiency, electric vehicles, and energy

planning. The plan is a comprehensive update to Arizona’s energy policies to accomplish cleaner energy

resources. The rulemaking process has begun at the ACC, to adopt and implement policies utilizing the

Energy Modernization Plan as guiding principle.

The State Energy Program is providing funding to complete an “Energy Vision Plan”, which will provide a

strategic plan for the State of Arizona regarding energy related policies and topics. The Energy Vision

Plan project team will utilize the Governor’s Natural Resources Goal Council as an advisory group

throughout the process. The Energy Vision Plan will then be utilized as a strategic planning document to

guide projects funded with SEP grant funds.

State Energy Program Activities:

1. Emergency Management and Resiliency a. Provide statewide energy assurance training and educational opportunity

2. Energy Conservation and Efficiency a. Guaranteed Energy Savings Performance Contracts (GESPC)

i. Potential State Agencies to use GESPC: Arizona State Hospital, Arizona State Fair, Special Olympics, Department of Corrections

b. Energy Vision Plan 3. Alternative Fuel Vehicles and Related Infrastructure

a. Pilot program with Arizona Department of Transportation (ADOT) i. EV options in fleet

b. EV Infrastructure i. State Parks infrastructure

c. Capitol Complex Transportation i. EV-AMP-GEM car options

ii. Carpool/TDM

Other (Non-SEP) Activities:

1. Volkswagen Settlement a. School Bus Replacement Program

i. Awarded $37,045,000 to replace 332 school buses across the State b. Pilot Project-Repurposing of school bus

i. Utilization of technical schools- West Mec-EVIT for construction ii. Repurposing Use:

1. State Fair- Education, showers, 2. DPS- public safety training purposes 3. Agriculture- greenhouses, education, food sustainability

2. Travel Reduction Program Program mandated under ARS 49-588, which requires all employers in Maricopa County, with 50 or more employees to implement a plan to reduce the number of individuals who drive alone to work site to 60% or less of the agencies total employee population (single occupancy vehicle rate). TRP implements a series of strategies to incentivize employees to use alternate modes. These incentives include, transit subsidies, vanpool subsidies, preferential parking for carpools, telework implementation, bike sharing, etc.

a. 2019 travel Demand Management software implementation- Ride Amigos

NASEO 2019 Western Regional Meeting May 21-22, 2019

Seattle, Washington

HAWAII STATE ENERGY OFFICE (HSEO)

HAWAII’s Energy Policy Issues:

• Moving toward a 100% RPS by 2045, with principle focus on 30% by 2020 and 40% by 2030. HSEO supports this effort by promoting renewable generation, advising on regulatory changes and processes, and enabling grid and clean energy infrastructure improvements.

• Achieving an EEPS of 4,300 GwH reduction in electricity energy demand via energy savings performance contracting, building code adoption, smart financing.

• Working toward the electrification of ground transportation.

State Energy Program Activities:

• Development of visualization tools that will enable decisionmakers and stakeholders to better analyze and communicate the tradeoffs and interdependencies of resource development necessary to achieve 100 renewable energy.

• Produced a Hawaii State Energy Office Operations Guide to provide HSEO staffers step-by-step instructions on their responsibilities during a natural disaster. HSEO is the division within the Department of Business, Economic Development and Tourism that fulfils the role of State Emergency Support Function 12 (ESF12) under the National Incident Command Structure.

• Upgrading HSEO’s Renewable EnerGIS and Permitting Wizard online tools. These upgrades will add data about soil contamination to the tools to make it easier for developers to build renewable energy projects on contaminated lands. This is part of a broader effort to make productive use of otherwise unusable sites.

• Provided technical assistance for Hawaii energy code and related analyses, compliance assessments, training, as well as updating and supporting adoption of the energy code.

• Execution of an integrated, multipronged communications plan that involves public relations, marketing, digital media, and community relations.

Other (Non-SEP) Activities:

• Recently completed study to evaluate the alternative utility and regulatory models, including a long-term cost-benefit analysis of each model and the steps required to carry out each scenario for each county.

• Developed a Beneficiary Mitigation Plan that will guide the State of Hawaii’s effort to invest $8.125 million from the Volkswagen Environmental Mitigation Trust to promote the reduction of vehicle emissions.

• Provide technical assistance to state and county agencies entering into energy performance contracts and projects that include office buildings, community colleges, airports, highways, and prisons.

• Administer the Hawaii renewable fuels production tax credit and certification process.

NASEO’s 2019 Regional State and Territory Energy Officials Meetings

The Montana Energy Office at the Department of Environmental Quality strives to support and advance practical energy policies, and demonstrate and deploy successful technologies, projects and programs that promote the conservation of energy, and advance energy security.

Montana’s Energy Policy Issues:

o 2019 Legislative Issues ▪ Colstrip (securitization, remediation, ownership) ▪ Energy Bonding (solar, wind, all resources) ▪ Electric Vehicles (rates, utilities, parking, fees, infrastructure) ▪ Utility Resource Planning and Acquisition ▪ Energy Performance Contracting

o Governor Bullock’s Energy Blueprint o IOU Rate Cases

Montana State Energy Program Activities:

• Energy Emergencies/Energy Assurances o The Montana Energy Office is the primary agency for Emergency Support Function

12 (ESF-12) under the Montana Emergency Response Framework (MERF) and its role the Energy Supply Emergency Powers Act.

• Energy and Resource Efficiency o State Building Energy Conservation Program o Energy Performance Contracting (EPC) o Energy Codes o Montana Resource Efficiency Project o High Performance Buildings o SMART Schools (Saving Money And Resources Today)

• Renewable Energy Development o Generation and Transmission Work Group o Solar on Public Buildings o Montana Community-Scale Solar Strategy Project o Alternative Energy Revolving Loan Program

• Transportation o Volkswagen Environmental Mitigation Trust o Park-to-Park Corridor o REV West MOU o Solar Energy Innovation Grant

Other (Non-SEP) Activities:

• Radon Control Program o This program provides education on radon in Montana, as well as free testing kits for

homeowners.

• Small Business Environmental Assistance Program o Assists small businesses with environmental regulatory questions and encourages

businesses to be sustainable.

NASEO’s 2019 West Regional State and Territory Energy Officials Meeting

Nevada Governor’s Office of Energy

Nevada’s Energy Policy Issues:

• Energy efficiency

• Transportation electrification

• Renewable Portfolio Standard (RPS)

• Climate policy

State Energy Program Activities:

• Financing energy programs

• Public information

• Clean Cities

• Policy and energy legislation

• State energy strategic plans

• Climate change planning

• Energy emergency planning

Other (Non-SEP) Activities:

• Renewable Energy Tax Abatement

• Green Building Tax Abatements

• Nevada Electric Highway

• Nevada Clean Energy Fund (green bank)

• Energy efficiency assistance programs

• Grid regionalization

• Public lands nexus with utility-scale renewable energy and transmission

NASEO 2019 West Regional State and Territory Energy Officials Meeting

Oregon Department of Energy Oregon Energy Policy Issues

• Legislative: Climate continues to be a leading issue in Oregon. HB 2020 would establish a new carbon cap and trade program for the state. SB 928 would create the Oregon Climate Authority and transfer a majority of ODOE’s “duties, functions, and powers”. HB 3425 would create a rebate to ameliorate the impacts on individuals below the area median income from an increase in gasoline costs as the result of Cap & Trade. For all three bills, there are many amendments working their way through the committees – we expect action on these items to continue through the end of session.

ODOE’s only agency bill, SB 38 (clarifying thermal renewable energy credits (TRECs) as eligible instruments for RPS compliance) passed out of the legislature unanimously and is headed to the Governor’s desk. Other bills touch on: ▪ Allowing natural gas utilities to invest in and rate-base renewable natural gas (RNG)

projects, and to voluntarily implement a decarbonization plan (SB 98). ▪ Requiring 8% of electricity sales to come from small-scale renewable energy facilities. ▪ Including legacy hydro in the RPS which would substantially increase the RPS goal

percentage. ▪ Allowing the creation of Community Choice Aggregation (CCAs) entities. ▪ Addressing concerns of energy equity and affordability by allowing differentiated retail

rates for low-income utility customers.

• Energy Siting: ODOE’s Siting Division, which staffs the Energy Facility Siting Council, is seeing what may be the largest volume ever of pending and current applications. This includes a large transmission line, amendments to existing wind projects, large-scale solar facilities, and multi-resource projects such as the amended Wheatridge Wind Energy Facility, which will add 150MW of PV and 41 distributed energy storage system sites. This wind + solar + storage facility would be the 1st of its kind in Oregon.

ODOE is also tracking a legislative proposal to move the responsibility for siting most renewable projects from the state to the county level.

State Energy Program (SEP) Activities

• Executive Order 17-20: ODOE has been hard at work implementing EO 17-20, which aims to reduce greenhouse gas emissions through energy efficiency. We completed a plug load strategy and building energy performance targets for state agencies. We also collaborated with our sister agencies at PUC and OHCS to develop a new state plan and recommendations to improve energy efficiency in affordable housing.

• Resiliency: We continue to build a comprehensive approach to resiliency – from mitigating the effects of disasters to supporting flexible energy systems that can respond to climate change. As part of EO 17-20, we reported on the role of EE and DERs in resiliency and will soon release a Local Energy Resiliency Guidebook focusing on steps that consumer owned utilities and local governments can take to improve resilience.

• Alternative Fuels: ODOE has requested to add this market title to its SEP grant activities for 2019 – 2020. This new market title will support work to develop a cost comparison tool for transit authorities and school districts on alternative fuel buses. The market title will also support work to build on ODOE’s Renewable Natural Gas Inventory work by assessing the costs of renewable natural gas development. The funds would also be used to create an electrical vehicle dashboard that will provide a high level view of EV adoption and EV charger infrastructure across the state.

Other (Non-SEP) Activities:

• Renewable Energy Development Grants: In April ODOE made available $2.75 million available in competitive grants for renewable energy projects around the state, and we received 46 applications totaling over $5 million. This is the eighth, and likely final, round of the program, which received a national State Leadership in Clean Energy Award last year from the Clean Energy States Alliance.

• Biennial Energy Report: The BER, which we shared with NASEO at the last annual meeting has been getting a lot of attention. It has been presented to the legislature and used as a resource by stakeholders, including local utilities, universities, and public officials. ODOE is leveraging the report into new online data visuals and resources. https://energyinfo.oregon.gov/ber

• Solar Dashboard: Developed with partners across the state and funded through a grant from the U.S. Department of Energy, the dashboard visualizes the rise in Oregon's solar energy in Oregon by mapping solar facilities and tracking the increase in projects and reduction in costs over time.

• Executive Oder 17-21: ODOE continues to support the implementation of this EO, which would reduce GHG emissions by accelerating EV adoption through its leadership of the Zero Emission Vehicle Interagency Working Group (ZEVIWG). The EO calls for 50,000 EVs in Oregon by 2020. ODOE is also working closely with the Governor’s Office to develop two electric vehicle awards to be given to dealerships and organizations that are demonstrating leadership in EV adoption.

NASEO’s 2019 West Regional State and Territory Energy Officials Meeting

Utah Governor’s Office of Energy Development

Utah’s ’s Energy Policy Issues:

• A new tax regime is being debated in the legislature and is expected to include new tax obligations for the service industry. There is a probable impact on energy services utilized across our energy sector, including conventional, renewable and energy efficiency services. We are working with stakeholders to understand these impacts

• On-going assessment of energy and economic incentives through a legislated task force is continuing through the 2019 interim period

• Utah’s participation in regional power markets

• Advancing cleaner air solutions through energy system changes, including increased renewable access for certain cities and municipalities

• Advancing energy storage opportunities and programs

State Energy Program Activities:

• Energy Efficiency: OED continues to provide leadership to advance Energy Efficiency for Utah’s homes and businesses. Key activities include: (1) Delivering codes an standards training through our Building Talks Program; (2) Creating an “Renter’s Guide for Energy Efficiency” for release summer 2019; (3) Expanding our partnership with the University of Utah IIAC to deliver industrial energy audits and realize savings through implementation of industrial efficiency measures; (4) Through an SEP competitive grant, and in partnership with Utah Clean Energy and Ogden City, OED is creating a road map to identify energy efficiency measures that enhance energy resilience in our communities. (5) C-PACE: Utah has fully implemented a third-party administrator and realized a number of opt-in agreements with cities/municipalities across the state. OED is currently working on it’s first Assessment in Moab, Utah under the new program and in coordination with Rocky Mountain Power.

• Energy Education: (1) Through receipt of an SEP Competitive Grant, OED is leading in partnership with other Western States and Energy Strategies a study to look at the evolution of regional markets in the West. The kick-off meeting was held April 16 and follow-up webinar May 14. (2) Through the SEP Formula Grant, OED has partnered with the Utah Science Teacher’s Association to update 31 K-12 lesson plans to meet the new SEEd standards being adopted by the State Board of Education this fall, improving utilization across classrooms. (3) Through a public/private partnership with Tacitus Venture Corporation and Air Products, OED developed helium educational materials, including lesson plans, teaching kits, and a video to highlight the importance and strategic value of safely developing our helium resources. (4) Through a partnership with the University of Utah’s Smart Energy Lab, OED conducted an Energy Career Expo for local undergraduate students exploring careers in the energy and minerals industry, with 114 students in attendance and 13 companies. (5) Through a partnership with the National Energy Foundation (NEF), OED developed five new lesson plans for 6th and 8th grade teachers covering the air energy nexus, bio-energy, and helium. NEF also delivered 4 teacher development workshops, educating 40 teachers on the STEM connections to integrate OED’s Energy and Minerals curriculum. (6) The Greenpower Electric Car Challenge (Greenpower) is an

engineering competition for schools based around designing and building a single seat electric-powered race car. Through a partnership with Utah State University (USU), OED supported Greenpower by serving as the primary sponsor for the Greenpower Invitational (state race) held on April 25, 2019, program advisor, and sponsored three new schools to start Greenpower programs this year. (7) Partnering with Chevron, OED has supported workforce development by administering the Utah Energy Workforce Scholarship program, providing over $40,000 in scholarship funding over 3 the last 3 years to high school seniors pursuing a STEM degree or trade certification at a Utah-based institute or higher learning.

• Alternative Transportation: Along the Wasatch Front, OED continues to work closely with refineries to support tens of millions of dollars worth of upgrades toward the production of cleaner, Tier 3 Fuels. Adding to Tier 3 results, Utah can also expect continued adoption of clean alternative fuel vehicles, including electric, hybrids, compressed-natural-gas, hydrogen and others that will provide resilience through diversity and reduced emissions from low to zero-emitting tailpipes. (1) OED is supporting application for federal funding to advance electric bus transport in the state, with support for applications form Park City and St. George; (2) OED in partnership with Utah Clean Cities is delivering a “Ride and Drive” for alternative fueled vehicles a the Governor’s Energy Summit, May 30, 2019; (3) OED leads to deliver the “Greenpower” high school electric vehicle program across Utah, and delivered another successful “race car” competition this April.

• Renewable Energy Growth - Utah now ranks 5th for installed solar capacity. To help us meet the demands of an evolving landscape, (1) In partnership with Utah State University, OED is nearing completion of the work under the DOD siting grant to identify renewable energy development siting based on locations of our military installations. (2) OED continues to administer the Renewable systems tax credit (RESTC). From July 1, 2018, to May 13, 2019, OED processed 3,369 RESTC applications; (3) Production tax credit (PTC): OED anticipates issuing PTCs to 28 renewable energy projects throughout the state this year, totaling about $8.3 million. Private investment associated with PTC projects is estimated to be around $2 billion. (4) FORGE, the Frontier Observatory for Research in Geothermal Energy is the next step in the development of Enhanced Geothermal Systems. Through a partnership with the University of Utah’s Energy and Geoscience Institute (EGI), OED has supported education and outreach activities for the FORGE program and geothermal development across the west, providing multiple videos, lesson plans, and presentations highlighting the research, utilization, and value of geothermal energy. The education and outreach leadership provided by OED, combined with the superior site and research team at EGI resulted in the U.S. Department of Energy awarding Utah the $140 million FORGE research grant

• Energy Emergency Planning: (1) In partnership with NASEO, OED is enhancing energy resilience through vehicles, specifically alternative fuel vehicles, by developing a report on the iRev program for Utah. (2) On May 8, 2019 OED in partnership with NASEO and Dominion Energy delivered an unprecedented Energy Emergency Planning Exercise focused on natural gas supply disruption. OED plans to deliver similar exercises annually. (2) OED is developing a podcast series to keep the public more educated and informed about energy safety tips. (3) OED helped to facilitate and support a successful DOE grant for $4.4 million to the University

of Utah or cybersecurity integration with solar systems at critical infrastructure sites;

Other (Non-SEP) Activities:

OED administers incentives and programs that support Utah’s diverse energy portfolio. Key initiatives are focused on delivering on the Governor’s Energy Action Plan and include: (1) Western States and

Tribal Nations Natural Gas initiative, with our report released April 2019. Other states, including ND, NM and WY, are considering joining tis work effort to improve the economies of our rural communities and realize environmental benefits locally and globally. (2) delivering the High Cost Infrastructure Tax Credit to promote development of energy infrastructure. As an example, the incentive was approved for the development of food waste to renewable natural gas facility in Davis County. This project is now in first stage operation with full operation planned for Fall 2019. (3) In coordination with Dominion Energy, OED is working on renewable natural gas initiatives, specifically delivering on legislation passed in the 2019 General Session. (4) OED is leading on international engagement on energy investment through several initiatives: creating the OED-World Trade Center Energy and Minerals Investment Task Force; Trade mission with the Governor to Rome June 2019; OED-led trade mission to Canada, July 2019; OED and State department Trade mission to India July 2019. (6) Advanced Carbon innovations - Utah continues to be a place for unprecedented carbon and storage innovation, bringing researchers and industry leaders from across the world to provide investment and jobs in both our urban and rural communities, with over $10 million in federal grants realized to date. (7) OED is delivering the Governor’s Annual Energy Summit, scheduled for May 30, 2019, with Secretary Perry and other industry leaders providing keynotes and support for the event.

NASEO’s 2019 West Regional State and Territory Energy Officials Meeting

Washington State Energy Office

Washington’s Energy Policy Issues:

This was a very productive legislative session for the State Energy Office (SEO) with the passage of ten clean energy and greenhouse gas reduction bills. These bills passed based on the efforts of Policy and Programs staff. This included numerous meetings to work with legislators and stakeholders as well as 66 fiscal analyses of draft bills. Bills that passed included work on appliance efficiency standards, hydrofluorocarbon reduction, distributed energy, energy efficiency in commercial buildings including an incentive program, 100% Clean Energy in electricity, net metering, advancing green transportation, vehicle electrification, and an update to the state’s fuel mix disclosure requirements.

The implementation of the 100% Clean Energy legislation requires that utilities remove coal-fired resources from their electric portfolios by 2025, achieve greenhouse gas neutral electricity supplies by 2030, and achieve 100 percent renewable and non-emitting electricity portfolios by 2045. State Energy Program Activities:

The SEP supports activities in both policy and program development. WSEO is currently working on:

• Fuel Action Planning – Development of state Fuel Action Plan for non-catastrophic petroleum

shortages. Additionally there are initial discussions regarding multistate fuel planning.

• Transportation Electrification – Assisted in developing budget allocation requests for state agency EVSE planning and implementation, provided technical support for electrification planning and implementation by local governments, and now beginning new work related to low-income EV financing.

• Biofuels and Biomass – Completed and distributed a report in cooperation with the Washington State University (WSU) Energy Extension, entitled “Promoting Renewable Natural Gas in Washington State,” that provides an in-depth techno economic analysis of RNG production potential, policy options, and public procurement opportunities. A subsequent conversation amongst numerous stakeholders regarding RNG quality standards for pipeline injection is now underway.

• Energy Assistance Need Programs – Provided technical support between equity & environmental justice groups and utilities to design work that will collect data on the current state of energy assistance need programs in Washington.

Other (Non-SEP) Activities:

Over the past six years, Washington has implemented programs that support the clean energy transition and help drive public investment in energy efficiency and renewable energy.

The compromise budget funds programs that connect agencies with resources to support clean energy transition. These programs are critical to growing the market for clean energy businesses and reducing the amount of taxpayer funds required to fund future operations.

New Capital Funding: $32.6 million has been provided for the Clean Energy Fund (CEF) focused on Grid Modernization, Grants to Non-Profit Lenders, and Research, Development & Demonstration Programs. The impact of the CEF since its start can be seen in over 20 legislative districts across the state. These projects have helped utilities respond to aging infrastructure, changing customer needs, a growing population, and an increasing number of renewable energy assets coming online. Because of continued support for CEF, Washington State has become a test bed for advanced clean energy technology and policy.

An additional $12.5 million was provided for the Energy Efficiency & Solar for solar deployment grants and energy efficiency grants to local agencies, public higher education institutions, and state agencies. Public buildings are energy consumers too, and they should lead or at least keep pace with the private sector. Public agency investments in energy efficiency and renewable energy increase the market for clean energy businesses, provide leadership to the private sector, and reduce the amount of taxpayer funds required to fund future operations. The EE&S program provides clean energy public sector leadership and market transformation by encouraging investment in energy efficiency and solar.

Existing Capital Funding: Active competition is underway for the Energy Efficiency and Solar program and CEF Research, Development & Demonstration Program. Both programs have are currently in the application review phase and will be announcing awards soon.

The CEF Grid Modernization program recently selected and announced awards for four public and private electric utilities serving Washington consumers. Selected projects include: a shared energy economy that will assess how a cluster of buildings performs utilizing distributed generation and a centrally located power plant; a hybrid energy storage system mixing flow and lithium ion technology to provide rapid response combined with state-of-the art switch gear; a school district based utility scale storage microgrid project; and, a liquid air energy storage system.

The CEF Solar Deployment program also recently announced three selected solar deployment projects that will further develop solar generating projects, one of which will provide incentives and billing credits benefiting low income customers.

Finally, the CEF Electrification of Transportation Program is under development. Program and Policy staff are working with an advisory committee to develop the draft Notice of Funding Opportunity (NOFO), which will be open for competition soon. The stakeholder engagement work completed for this program is being identified as an agency best practice.

Other Activities: The Solar Plus Solar Seeds SES program is in the final year of a three year program, with the focus being on continued deployment of community solar, solar for community resilience, expanding benefit to low-income communities, and continued efforts to reduce commercial scale costs. The work done in this group has been the catalyst for State Energy Office efforts to include equity partners in the development of policy, legislation and programs.

The Office of State Efficiency and Environmental Performance (SEEP) joined the State Energy Office last year. This group works collaboratively with state agencies and the Governor’s office to reduce GHG emissions and eliminate toxic materials from state agency operations. SEEP coordinates state agency efforts related to electric vehicles, energy efficient and zero net energy facilities, green purchasing, and clean electricity.