September 26, 2013

1. CLEAN Resource Hub Tools to Open Wholesale DG Markets Ted Ko Associate Executive Director Clean Coalition ted@clean-coalition.org September 26, 2013

2. Clean Coalition – Mission and Advisors MissionTo accelerate the transition to local energy systems through innovative policies and programs that deliver cost-effective renewable energy, strengthen local economies, foster environmental sustainability, and provide energy resilience Board of Advisors L. Hunter LovinsPresident, Natural Capitalism Solutions Ramamoorthy RameshFounding Director, DOE SunShot Initiative Governor Bill RitterDirector, Colorado State University’s Center for the New Energy Economy, and Former Colorado Governor Terry TamminenFormer Secretary of the California EPA and Special Advisor to CA Governor Arnold Schwarzenegger Jim WeldonTechnology Executive R. James WoolseyChairman, Foundation for the Defense of Democracies;Former Director of Central Intelligence (1993-1995) Kurt YeagerVice Chairman, Galvin Electricity Initiative; Former CEO, Electric Power Research Institute Jeff AndersonCo-founder and Former ED, Clean Economy Network Josh BeckerGeneral Partner and Co-founder, New Cycle Capital Pat BurtCEO, Palo Alto Tech Group; Councilman & Former Mayor, City of Palo Alto Jeff BrothersCEO, Sol Orchard Jeffrey ByronVice Chairman National Board of Directors, Cleantech Open; Former Commissioner, CEC Rick DeGoliaSenior Business Advisor, InVisM, Inc. John GeesmanFormer Commissioner, CEC Eric GimonIndependent Energy Expert Patricia GlazaPrincipal, Arsenal Venture Partners Dan KammenDirector of the Renewable and Appropriate Energy Laboratory at UC Berkeley; Former Chief Technical Specialist for RE & EE, World Bank Fred KeeleyTreasurer, Santa Cruz County, and Former Speaker pro Tempore of the California State Assembly Felix KramerFounder, California Cars Initiative Amory B. LovinsChairman and Chief Scientist, Rocky Mountain Institute

3. Wholesale DG is the Critical & Missing Segment Central Generation Serves Remote Loads Project Size Wholesale DG Serves Local Loads Retail DG Serves Onsite Loads Behind the Meter Distribution Grid Transmission Grid

4. Wholesale DG Leader: Germany Solar Markets: Germany vs California (RPS + CSI + other) Cumulative MW Sources: CPUC, CEC, SEIA and German equivalents. Germany added over 7times more solar than California in 2012, even though California’s solar resource is 70% better!!!

5. German Solar Capacity is Small WDG (Rooftops) 26% 23.25% 22.5% 19% 9.25% Source: Paul Gipe, March 2011 Germany’s deployed solar capacity is essentially 100% WDG and about 90% is on rooftops

6. German Solar Pricing Translates to 5 cents/kWh Source: http://www.wind-works.org/cms/index.php?id=92, 10 September 2013 • Conversion rate for Euros to Dollars is €1:$1.309 • California’s effective rate is reduced 40% due to tax incentives and then an additional 33% due to the superior solar resource Replicating German scale and efficiencies would yield rooftop solar at only between 5 and 7 cents/kWh to California ratepayers

7. Wholesale DG in the US (sample)

8. Processes for Creating State Policies Start Campaign Regulatory Process Yes Open Proceeding Sufficient Statutory Mandates? No Build Coalition Build Coalition Navigate Design Implementation Pitch Concept Intervene Enact Design Bill Launch Legislative Process

9. CLEAN Resource Hub (CRH) and Stakeholders Policymakers: Legislators, Regulators, Standards Setters Local Companies NGO Advocates CLEAN Resource Hub Legislative Materials Implementation Guides Communications Collateral Model Tariffs Model Contracts Trade Assoc Labor Unions Supporting Materials Local Government Community Orgs Local CLEAN Program Guide

10. CLEAN Programs Defined CLEAN = Clean Local Energy Accessible Now CLEAN Program Features: • Procurement: Standard and guaranteed contract between the utility and a renewable energy facility owner to purchase 100% of generation at a predefined rate for a long duration • Interconnection: Predictable, streamlined distribution grid access • Financing: Low-risk contracts will attract lower-interest financing

11. CRH Scenario: Arizona Start Campaign Fictional Advocacy Group – AZ Energy Futurists “Let’s take advantage of our most abundant renewable resource – the sun - with a CLEAN Program for Arizona focused on wholesale distributed solar PV” “Arizona is actively talking about the value of solar energy, so let’s make sure we highlight all the benefits of distributed PV.” “Our campaign will be called AZ CLEAN”

12. AZ CLEAN : Build Coalition Build Coalition Supporting Materials Communications Collateral DG Catalog of Benefits Locational Benefits Brief CLEAN Program Checklists CLEAN Program Standard Deck

13. AZ CLEAN : Pitching Legislative Concept Pitch Concept Legislative Materials Supporting Materials Legislation Examples & References Legislation Summary Template CLEAN Program Checklists DG Catalog of Benefits Communications Collateral Pitch meetings CLEAN Program Standard Deck

14. AZ CLEAN : Designing Legislation Design Bill Legislative Materials Supporting Materials Full Proposal Example Legislation Proposal Template Legislation Examples & References In-State Renewables Brief Market Responsive Pricing Brief Implementation Guides Pricing Guide Program Rules & Best Practices Guide

15. AZ CLEAN : Campaigning Navigate Enact Supporting Materials Communications Collateral CLEAN Program Standard Deck Example Op-Eds Media Training Guide DG Catalog of Benefits CLEAN Program Checklists Market Responsive Pricing Brief Locational Benefits Brief Legislation Examples & References In-State Renewables Brief Legislative Materials

16. AZ CLEAN : Implementation Design Implementation Implementation Guides Model Tariffs Model Contracts Pricing Guide Program Rules & Best Practices Guide Model Interconnection Tariff CLEAN Model PPA Supporting Materials DG Catalog of Benefits Locational Benefits Brief Launch

17. CLEAN Resource Hub - Today • The CLEAN Resource Hub makes it easy for policymakers and advocates to design, enact and implement CLEAN Programs • Available on the website today • CLEAN Program Legislative Materials • CLEAN Program Implementation Guides • Model Interconnection Tariff and Model PPA • WDG Supporting Material • WDG Communications Collateral • CRH is a Living Resource • Feedback on materials is welcome • Constantly evolving and growing (notices will be sent for major releases of new material) • Open to contributions from other parties

18. CLEAN Resource Hub – Future Vision • The CLEAN Resource Hub will provide the latest thinking, policy designs and actionable materials for opening up the wholesale DG market segment • Next generation of Interconnection • Grid Modeling • Automated interconnection studies • Distribution Grid Planning • Optimal locations • Proactive distributed resource planning • Intelligent Grid solutions • Renewables Integration & Advanced Inverters • Grid balancing / Ramp control with intermittent resources • Voltage support / reactive power • Frequency support

19. Follow Up CLEAN Resource Hub Legislative Materials Implementation Guides Communications Collateral Model Tariffs Model Contracts Supporting Materials Local CLEAN Program Guide New Initiatives General Questions Contact: Gary Pett gary@clean-coalition.org Content / Policy Details Custom Collaboration Contact: Ted Ko ted@clean-coalition.org

20. Back-Up Slides 2013

22. CRH Materials

23. Model Tariffs • Model Interconnection Tariff for Wholesale DG • “Clear and simple standards and procedures reduce errors and uncertainty, allowing applications to be handled consistently and without delay“ • “Clear cost determination is the overriding issue for developers decisions and for a successful interconnection process” • “Current grid information should be maintained and readily available to generation interconnection staff and developers” • Review Screens: “is the aggregate Generating Facility capacity on the line section less than 100% of the section minimum load?” • Timelines: “Within fifteen (15) days following determination of Simplified Interconnection…the Utility shall tender a draft Interconnection Agreement”

24. Model Contracts • Model Tariffs and Contracts are full best practice examples, including actual legal language and detailed justifications • Model Power Purchase Agreement (PPA) • “Seller hereby provides and conveys all Green Attributes associated with all electricity generation from the Project to Buyer as part of the Product being delivered.” • “Buyer shall pay Seller the Contract Price for the Product that Seller would have been able to deliver but for the Unforced CurtailmentOrder” • “a collateral requirement equalto twenty dollars ($20.00) if Contract Capacity is less than 1,000 kW, or fifty dollars ($50.00) if Contract Capacity is greater than or equal to 1,000 kW, for each kilowatt of the Contract Capacity” • “Seller may, without Buyer’s consent, transfer, sell, pledge, encumber or assign this Agreement or the accounts, revenues or proceeds hereof to its Lender“

25. Guides: CLEAN Program Rules

26. Locational Benefits Local Generation Facility Avoided Grid Costs and Line Losses Employment Avoided Environmental Impacts Private Investment in Community

27. Market Responsive Pricing (MRP) Brief “adjust prices offered over time under CLEAN programs based on the market response”