26 September 2013

1. Buildings of 2030 Vision driving Demonstrations, Certifications, Standards, and Codes Craig Lewis Executive Director Clean Coalition 650-796-2353 mobile craig@clean-coalition.org 26 September 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. Clean Coalition Vision = Clean Local Energy

4. Clean Coalition Overarching Objectives • From 2020 onward, at least 50% of all new electricity generation in the United States will be from local sources. • Locally generated electricity does not travel over high voltage transmission lines to get from the location it is generated to the area it is consumed. • From 2020 onward, at least 80% of all new electricity generation in the United States will be from renewable sources. • By 2020, policies and programs are well established for ensuring successful fulfillment of the other two objectives. • Policies reflect the full value of local renewable energy. • Programs prove the superiority of local energy systems in terms of economics, environment, and resilience.

5. Zero Net Energy is Key Vision-driver for Buildings

6. Vision drives Demos, Certs, Standards & Codes

7. Buildings of 2030 Must Fit with Cities of Future

8. Expect EV Chargers Everywhere EVs provide the CLEAN Bridge between Energy, Buildings, Cities and Transportation

9. Plan for Renewables Everywhere within D-grid Central Generation Serves Remote Loads Project Size Wholesale DG Serves Local Loads Retail DG Serves Onsite Loads Behind the Meter Distribution Grid Transmission Grid

10. WDG is Key Market Segment with Superior Value Total Ratepayer Cost of Solar Sources: CAISO, CEC, and Clean Coalition, Nov2012; see full original analysis from Jul2011 at www.clean-coalition.org/studies The most cost-effective solar is large WDG, not central station due to significant hidden T&D costs

11. WDG Delivers Scale & Cost-Effectiveness Fast Solar Markets: Germany vs California (RPS + CSI + other) Cumulative MW Sources: CPUC, CEC, SEIA and German equivalents. Germany has deployed 12 times more solar than California in the last decade despite California’s 70% better solar resource!!!

12. 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

13. German Solar Capacity is Small WDG (Rooftops) 26% 23.25% 22.5% 19% 9.25% Source: Paul Gipe, March 2011 Germany’s solar deployments are almost entirely sub-2 MW projects on built-environments and interconnected to the distribution grid (not behind-the-meter)

14. US has Far Better Solar Resource than Germany

15. Deployment Volume Drives Learning Curves Solar pricing is reduced by 20% for every doubling of deployed volume Si learning curve New technology learning curve Efficiency innovation

16. DG+IG Initiative = Proving Feasibility of High DG • Work with five utilities across the US to deploy a DG+IG demonstration project at each by yearend-2015 • Prove viability of Distributed Generation (DG) providing at least 25% of total electric energy consumed within a single substation grid area • Integrate Intelligent Grid (IG) solutions to ensure that grid reliability is maintained or improved from original level • IG solutions includediversity and Energy Storage for sure, and potentially, advancedinverters, forecasting & curtailment, and/or DemandResponse

17. Benefits of DG+IG • Power Quality, Reliability & Resilience benefits • Increased customer satisfaction • Improved equipment longevity • Sustained vital services in otherwise complete blackout scenarios • Avoided transmission & central generation vulnerabilities • Economic benefits • Significant private-sector investment • Substantial local job creation • Fixed electricity prices for 20+ years • Localized energy spending • Avoided inefficiencies of central generation & transmission • Environmental benefits • Avoiding dirty power generation, including nasty peaker plants that are often sited in underserved communities • Utilizing built-environments and disturbed lands for generation projects • Preserving pristine environments from transmission lines and other infrastructure

18. Hunters Point = DG+IG Showcase • BVHP has a long history of environmental degradation. • Houses one third of San Francisco’s hazardous waste sites. • Was downwind from California's dirtiest peaker power plant until community activism forced its closure in 2010. • 20% of BVHP children suffer from asthma, and other chronic illnesses, 4x CA average • BVHP has one of the highestpoverty rates in San Francisco, with 30% of families earning less that $10,000 per year, and a median household income of $29,640 annually, as compared to $65,000 for white San Franciscans and a $55,221 average citywide.  • An overwhelming 72% of the African Americans in BVHP have incomes below the federal poverty level. • Sources: Hunters Point Family and Grid Alternatives.

19. Comparison of New Construction & Retrofit Hunters Point Substation serves Major Redevelopment Area & Continuing Urban Neighborhoods(30% & 70% of projected load respectively)

20. Scope of Complete Hunters Point DG+IG Project • Coordinating collaborative partners • Providing redevelopment plans (SF Agencies) • Providing full set of Distribution Grid (D-grid) details and loads (PG&E) • Identifying prospective sites for Distributed Generation (DG) • Establishing Modeling Platform • Simulating existing D-grid scenario and DG+IG iterations for opitimized recommendations • Defining Intelligent Grid (IG) performance requirements • Identifying prospective sites for IG Solutions • Assessing DG+IG benefits in terms of economics, environment, and grid efficiency, reliability & resilience • Designing interconnection and procurement processes and procedures to stage for DG+IG deployments

21. Replacing SONGS with DG+IG vs 570 MW of local solar with advanced inverters, oversized by 10% set at 0.9 Power Factor = 261 MVArs Huntington Beach 290 MVars (minus line losses = 261 MVars) Local solar configured with advanced inverters alone can replace SONGS

22. PV Potential of Top 25 Roofs in LA is Over 75 MW 100+ GW of Built-Environment Solar Potential in California vs 60 GW of Peak Load

23. Back-Up Slides Back-Up Slides

24. Renewables are Reliable Sources: Galvin Electricity Initiative, Electric Reliability: Problems, Progress and Policy Solutions, February 2011 U.S. Energy Information Administration, International Energy Statistics, 2011

25. DG+IG Keeps Power in Balance DR, ES shifts load ES, Auto-DR, curtail for steep ramp DR, ES shifts load

26. Replace SONGS – Energy Storage Potential Targets proposed by CPUC include 745 MW storage in Southern California

27. DG+IG Projects Begin with Grid Modeling & Simulation

28. DG+IG Policy Innovations Required • Integrate Grid Planning • Transparent and public T&D planning processes • Proactively evaluate DG+IG alternatives to new transmission investments • Necessary to meet goals re: renewables, EVs, costs, local job creation, resilience • Implement Full Cost & Value Accounting • Investments should reflect the full spectrum of rate impacts, economic growth, health, safety, and environmental sustainability • Prevent bias against DG+IG (e.g. hidden transmission costs) • Monetize DG+IG Grid Services • Establishing markets that compensate at full value of grid services is fundamental to optimizing value for ratepayers • Prioritize DG+IG Development in High Value Locations • Identify preferred locations on the grid based on transparent cost & value criteria • Set “Local Portfolio Standard” targets • Update Technical Standards: • Update national technical standards (IEEE/ UL) to allow DG+IG to provide grid services to the fullest potential