2010 - The Alternative Energy Policy Landscape Surrounding AR

1. 2010 - The Alternative Energy Policy Landscape Surrounding AR

2. Remember the Elephant in the Room Coal Remains the State’s Fuel of Choice Ave. 2010 Spot Prices (H Hub) Natural Gas $4.69 per MMBtu Coal $2.25 per MMBtu Residential Electrical Energy Price 11.6 cents per KWH Source: EIA 2009a 2007 Arkansas Electricity Generation by Fuel Type (Total Generation = 54,596 GWh)

3. Generation Disclosure Policy 22 states + DC have adopted a generation disclosure policy Sources: NREL and DSIRE 2009

4. Net Metering Policy 43 states + DC & PR have adopted a net metering policy MO: 100 KS: 25/200* KY: 30* OK: 100* AR: 25/300 LA: 25/300 State policy Voluntary utility program(s) only *State policy applies to certain utility types only (e.g., investor-owned utilities)

5. Renewable Energy Portfolio Standards (RSP) 29 states + DC have an RPS (7 states have goals) IL: 25% x 2025 KS: 20% x 2020 MO: 15% x 2021 OK: 15% x 2015 State renewable portfolio standard TX: 5,880 MW x 2015 State renewable portfolio goal Solar water heating eligible Minimum solar or customer-sited requirement

6. RPS Policy with Solar and Distributed Generation Provisions MO: 0.3% solar-electric x 2021 16 states + DC have an RPS with solar/DG provisions TX: double credit for non-wind(non-wind goal: 500 MW) State renewable portfolio standard with solar / distributed generation (DG) provision State renewable portfolio goal with solar / distributed generation provision Solar water heating counts toward solar provision

7. Rebate Program For Renewable Energy 23 states + DC & PR offer rebates for renewables Note: This map does not include rebates for geothermal heat pumps or other energy efficiency technologies. State program(s) only Utility and/or local program(s) only State program(s) + utility and/or local program(s)

8. Grant Programs for Renewable Energy 25 states offer grant programs for renewables Note: This map only addresses grant programs for end-users. It does not address grants programs that support R&D, nor does it include grants for geothermal heat pumps or other efficiency technologies. State program(s) only Utility, local, or private program(s) only State program(s) + utility, local, and/or private program(s)

9. Loan Programs for Renewable Energy 31 states offer loan programs for renewables State program(s) only Note: This map does not include loan programs for geothermal heat pumps or other energy efficiency technologies. Utility and/or local program(s) only State program(s) + utility and/or local program(s)

10. Sales Tax Incentives for Renewable Energy 27 states + PR offer sales tax incentives for renewables Note: This map does not include sales tax incentives that apply only to geothermal heat pumps or other energy efficiency technologies. State exemption or deduction State exemption + local governments (option) authorized to offer exemption or deduction

11. Property Tax Incentives for Renewable Energy 32 States + PR offer property tax incentives for renewables State exemption or special assessment only Local governments authorized to offer exemption (no state exemption or assessment) State exemption or special assessment + local government option

12. State Interconnection Policy Standard KS: 25/200* MO: 100* KY: 30* AR: 25/300* 40 States + DC & PR have adopted an interconnection policy LA: 25/300* TX: 10,000 Note: Numbers indicate system capacity limit in kW. Some state limits vary by customer type (e.g., residential/non-residential).“No limit” means that there is no stated maximum size for individual systems. Other limits may apply. Generally, state interconnection standards apply only to investor-owned utilities. State policy * Standard only applies to net-metered systems

13. Property Assessed Clean Energy (PACE) 23 states + DCauthorize PACE (22 states have passed legislation and HI permits it based on existing law) MO: 2010 OK: 2009 TX: 2009 LA: 2009 PACE financing authorized

14. Public Benefit Funds for Renewable Energy 18 states + DC have public benefits funds ($7.2 billion by 2017) State PBF * Fund does not have a specified expiration date ** The Oregon Energy Trust is scheduled to expire in 2025

15. 3rd - Party Solar Power Purchase Agreements At least 17 states + PR authorize or allow 3rd-party solar PPAs Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making binding financial decisions related to a 3rd-party PPA. Authorized by state or otherwise currently in use Apparently disallowed by state or otherwise restricted by legal barriers Status unclear or unknown

16. Tax Credits for Renewable Energy 25 states + PR offer tax credits for renewables Personal tax credit(s) only Note: This map does not include corporate or personal tax deductions or exemptions; or tax incentives for geothermal heat pumps. Corporate tax credit(s) only Personal + corporate tax credit(s)

17. Energy Efficiency Policy

18. State Energy Efficiency Policy

19. Other Policy Considerations • Feed In Tariff (FIT) (two states?) • Contractor Licensing (nine states) • Equipment Certification (three states & PR) • Green Power Purchasing (nine states) • Renewable Energy Access Laws (35 states & VI) • Production Incentives (six states) • Green Power Mandates (eight states)

20. Policy – Important but Subject to Two Eyes Interpretation and Implementation • The politics of turf • Life threatening loopholes • Agreement and clarity • Rules of engagement • Triggers, limits and thresholds • Location and ownership • Supported by Research and Education

21. Planning? • Stakeholder involvement • Turf issues and authority • Resource assessment • Need assessment • Opportunity assessment • Public knowledge and awareness • Research needs