State Clean Energy Policy Analysis (SCEPA): Impacts and

Opportunities

November 29, 2007Project Description and Progress Webcast

Meeting Agenda

1) Project Objectives

2) Logistics

3) Project Design and Analytic Framework

4) Current Policy and Draft Results

5) Questions/Comments/Avenues for more information

Objectives for SCEPA Project

1) Identify and quantify impacts of current state EE/RE policies to inform policy decisions and development

2) Promote understanding of current policy impacts to foster broader use of high impact policies

3) Engage leading state officials and EE/RE market experts to identify and characterize next generation of innovative policies

Logistics

• DOE/WIP Funded

• NREL Implemented with policy experts from NREL and Interenergy Solutions, Inc (Matthew Brown)

• Technical Committee - states and other interested parties offering feedback and direction

Project Approach1. Develop detailed work plan, project team, and technical

committee (Sept 07)

2. Conduct analysis to quantify and characterize policy impacts by type and drivers (Sept 07-08)

3. Dissemination of project info and OUTCOMES! (Sept 07-08):

• Website

• Conduct sessions at regional workshops and national conferences

• Direct Technical Assistance on specific policies in coordination with TAP

4. Further develop next-generation innovations and complete policy analysis and documentation (Spring/Summer 08)

5. Provide technical assistance (including peer-exchange) to support policy best practice and innovation application (Late 08)

Project Design and Analytic Framework

Primary Questions

• What do state policy makers and program implementers need?

• How can we approach policies systematically and comparably?

What do State Actors Need?

• Measures of success that make sense to states (policy drivers)– Economic development– Environmental impact– Energy security

• Level playing field for policy options• Efficient delivery and communication of

information

How to Approach Policies Systematically and Comparably?

• Basic decision making framework

• 2 part processSelecting Policy Type: What goals does the policy need to meet?

Selecting Policy Variables: What customization is needed to meet goals?

Final Policy

Identification of Need for Policy

Step One: How Policies Address the Driver

ENERGY SECURITYECONOMIC ENVIRONMENTAL

PossiblePolicies

POLICY DRIVER CONTINUUM

Value ofindustry

FuelImportOffset

Local AirQuality

GreenhouseGasEmissions

FuelDiversity

Gross StateProductImpact

JobsimpactMetrics

Comparable Metrics

• Economic: – % change in GSP– % change in employment– % change in renewable/efficiency industry value

• Energy Security– % increase in fuel diversity– % Imports offset

• Environmental - % GHG, criteria pollutant reduction

Step 2: In-Policy Variables• Concept:

– Capture the impacts of innovative in-policy choices – Capture non-quantitative measurable elements

• General Policy Metrics (it depends!)– Applicability to other states (includes prerequisite

policies)– Unintended consequences

• Examples: – Economic Development Zones in an RPS (Texas) – Sunset dates on tax credits– Compliance mechanisms

Known Challenges to Approach

• Different state resources (financial and EE and RE), levels of interest

• Lack of data on existing policies• Policy impact attribution (suites)

Unknown Challenges to ApproachWe know they are out there…and to find them,

we started the project:

Current Policies (completed in January 08)

• EERS (Matthew Brown)• RPS (David Hurlbut)• RFS (Gail Mosey)

Next up (completed in Early 08)

• Decoupling/lost revenues/utility incentive• EE and RE Tax Incentives• White certificates• RE products grants and rebates• Feed-in tariffs

Expected Results for Policy Comparison

Economic Environmental ES/FD

Policy Value of Industry

Net Job

GSP Cons. Purch.

Power

Local Air Quality

Global Air Quality

Water Quality

Land Use

Imports Offset

Fuel Diversity

EERS Med Med Unk Unk Unk Unk High Unk

RFS High Med Unk Unk Unk Unk High High

RPS High (if imprts exc)

Med (w/ imports)

Med (if imports exc)

High (with Green Power)

Medium (w/o)

Med Med Low High

Technical Committee

• As policies are evaluated, technical committee webcasts for interested parties to comment on metric development and usefulness to states

• One-on-one calls with analysts for input

• Document/report review

• Overall project inputElizabeth_brown@nrel.gov,

(303) 384-7489

Questions, Comments?

Additional Slides

Policy PrioritiesPolicy

Renewable Portfolio Standards

Renewable Fuels Standards

Energy Efficiency Resource Standards

Decoupling/Lost Revenues/Incentives

Renewable Project Contracting and Financing

RE Tax Incentives: Personal DG/Net Metering, property tax exemptions, easements, sales tax exemptions.

RE/Alt Fuels Tax Incentives: Personal Auto

White Certificates

EE Tax Incentives

EE Tax Incentives: Personal

EE Tax Incentives: Corporate

EE Tax Incentives: Sales

EE Tax Incentives: Property

Policy Priorities - 2008Tax Incentives: Corporate Auto alt fuels

Renewable Products Grants

Renewable Products Rebates

Feed in tariffs

EE Rebates

EE Grants

EE Loans

Energy Efficiency Mortgages

EE Pay As You Save

EE QAP Allocations for Efficiency

EE Bonds

Administration of Energy Eff Programs

Demand Response Programs

Non-Traditional Rate Structures: TOU (EE and RE)

Non-Traditional Rate Structures: Inverted Block (EE and RE)

Non-Traditional Rate Structures:Others (EE and RE)

EE Public Benefit Funds

PBF Renewable Related Policies

Policy Priorities - BeyondConsumer Information/Education

Bulding Codes

Appliance Standards

Performance Contracting

Standards for Public Buildings

Green Building Incentives

Transmission Policies

Industry Recruitment incentives

Loans

Standardized Permitting for Renewables

OutreachConference/Meeting Start Date Location

NCSL Fall Forum 11/27/07 Phoenix, AZ

DOE State Meeting West 12/07

NARUC-Institute of Public Utilities Annual Policy Conference 2007

3-Dec-07 Charleston, SC

NGA Gov's Biofuels Summit 12/13/07 Tampa, FL

NASEO 2008 Winter Conference 2/3/08 Washington, DC

DOE State Meeting East 3/08

NCSL Spring Forum 4/22/08 Washington, DC

MACRUC 2008 Convention 1-Jun-08 Williamsburg, VA

NCSL 2008 Legislative Summit 7/22/08 New Orleans, LA

ACEEE Summer Study in Buildings 8/17/08 Monterey, CA

ACEEE Energy Efficiency in Agriculture Forum

2/8/08 Des Moines, IA

CESA Spring Meeting 5/11/08 New Haven, CT