IPED Financing Solar Energy Conference

1. IPED Financing Solar Energy Conference Leveraging the Solar Tax Credit Virginia ARRA Example ----------- Stephen A. Walz Senior Advisor for Energy Policy Commonwealth of Virginia Office of Governor Timothy Kaine ---------- May 22, 2009

2. ARRA Energy • State Energy Program • Energy efficiency and renewable energy support • State flexibility • Energy Efficiency and Conservation Block Grant Program • Efficiency • Renewable in local government buildings • U.S. Department of Energy, Energy Efficiency and Renewable Energy Programs • State program summaries at National Association of State Energy Officials (www.naseo.org)

3. Stimulus.virginia.gov • Communications on ARRA in Virginia • Governor Kaine opened for suggestions - February 10 to March 6; + 9,000 proposals • + $465 billion for all proposals • + $15 billion for energy-related proposals •  $85 million available for energy efficiency and renewable activities

4. Virginia ARRA Project Criteria • Near-term jobs created or preserved • Conventional energy saved or renewable energy produced - sustainability • Leverages other funds, avoid free rider when other funds available • Ease of implementation; measurable & verifiable • Provides future value – transforms marketplace • Consistent with Virginia Energy Plan & Governor’s Commission on Climate Change • Implement 2009 legislative proposals

5. ARRA Energy Projects in Virginia • $38 million grants for solar thermal, photovoltaic and small-scale wind • $15 million for residential & commercial – small distributed projects statewide • $5 million wind; $10 million solar • $13 million for state facilities to leverage other funds • $3 million wind; $10 million solar • $10 million for local government and school facilities • $2.5 million wind; $7.5 million solar

6. ARRA Energy Projects in Virginia • $10 million grants for incentives to develop energy from biomass and waste • $15 million grants for energy efficiency improvements to residential and commercial facilities • $10 million to support clean energy businesses & commercialization of energy technologies • Technical assistance to local governments and public schools for energy savings performance contracting

7. EECBG • Direct from DOE • Cities/towns with 35,000 + people or top 10 by population • Counties with 200,000 + people or top 10 by population • $44.5 million in Virginia – 28 localities • Indirect through Virginia DMME • Cities & towns with less than 35,000 people • Counties other than top 10 by population • $9.7 million in Virginia

8. Solar Projects • Meet technical standards; SRCC, other • Residential, Commercial, Industrial • Customer applies; Pre approval; 6 months to complete • $2,000 per kW PV; $1,000 per kW equiv thermal • Done over 2 years – build industry capability in VA • Enhance net-metering • Up to 10 kW residential; 500 kW commercial • Includes 3rd party ownership of renewable systems • Local government, public schools • Locality to decide on approach • Leverage other funds • Public education component

9. Solar Projects • State agencies; public universities • Aggregated/individual projects • Aggregated for economic impact • Public Private Education and Infrastructure Act • Performance contracting add on • Non jurisdictional at State Corporation Commission (PUC) – increased flexibility • RFPs – pilot first, then aggregate

10. Solar Projects • State agencies; public universities • PPAs • Length; end terms • Liabilities/risk sharing • State standard terms and conditions • REC ownership • PJM capacity markets • Carbon credits • Management issues • Low power costs • Limited state tax provisions • Varying expertise – agency and legal

11. Other ARRA Energy Provisions • Federal facilities; GSA and Military • Efficiency; renewable sources • Workforce Training • Competitive for energy efficiency and renewable workforce training • Weatherization Assistance Program • Public Housing • HUD to local housing authorities and VHDA • Energy Star Appliance Rebate • DMME to manage – fall 2009 application schedule • Alternate Fueled Vehicles • Virginia Clean Cities Program • Research, Development and Deployment • DOE Fossil, Energy Efficiency, Basic Science; Military

12. Other ARRA Energy Provisions • Smart Grid • Utilities and product providers • Diesel Emission Reduction Program • Department of Environmental Quality • Innovative Technology Loan Guarantees; Renewable Energy Bonds • Battery Manufacturing • Tax credits/grants • ITC/PTC/Treasury grants - renewables, CHP, fuel cells, microturbines • Residential/business energy efficiency • Wind, solar, geothermal • Advanced energy manufacturing • Carbon sequestration • Plug in hybrid and other alternate fuel vehicle

13. Information Sources • Virginia • www.stimulus.virginia.gov/ • www.dmme.virginia.gov • Federal • www.recovery.gov/ • www.doe.gov/recovery/

14. Al Christopher Director, Division of Energy Department of Mines, Minerals and Energy 1100 Bank Street, 8th floor Richmond VA 23219 al.christopher@dmme.virginia.gov (804) 692-3216 Stephen Walz Senior Advisor for Energy Policy, Office of Governor Tim Kaine Director, Department of Mines, Minerals and Energy 1100 Bank Street, 8th floor Richmond, VA 23219 stephen.walz@governor.virginia.gov (804) 692-3211 Contacts