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Policy Impact on the Workforce
Justin BarnesN.C. Solar Center / NCSU
Clean Energy Workforce Education Conference 2012 Albany, NY
November 14, 2012
Outline• DSIRE Background/Components• DSIRE and Workforce Development• RE Market Drivers and Trends• EE Market Drivers and Trends• Industry Recruitment/Support• Tour of DSIRE
• Created in 1995• Funded by U.S. DOE / NREL• Managed by NCSC / NCSU• Scope = government & utility
incentives & policies that promote RE/EE
• ~ 2,751 total summaries• ~175,000 users per month• DSIRE Solar (dsireusa.org/solar)• DSIRE data services for businesses
(dsireusa.org/services)
DSIRE Background
Major DSIRE Components• State and federal incentive pages/summaries• DSIRE Solar• DSIRE RPS Data • Summary maps• DSIRE search tool • Information requests and technical assistance
DSIRE: A Brief BreakdownEnergy Efficiency
• 1,843 policies/programs
– 1,200 utility programs– 448 state policies/programs
• 1,591 financial incentives• 243 regulatory policies
Renewable Energy• 1,632 policies/programs
– 627 utility programs– 793 state policies/programs
• 1,172 financial incentives• 460 regulatory policies
715 both RE/EE
UPDATES: As needed…or11 – 12 month cycle, 6 month for utility EE
DSIRE Inquiries
09/2011
10/2011
11/2011
12/2011
01/2012
02/2012
03/2012
04/2012
05/2012
06/2012
07/2012
08/2012
09/2012
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# of Responses
DSIRE and Workforce Development
Understanding
Market Opportunities
Training/ Certification
Sales & Consumer
Communication
Advocacy/ Alternatives
DSIRE and Workforce Development
Understanding
Market Opportunities
Training/ CertificationSales
Advocacy/ AlternativesAnd Industry Recruitment
Market Drivers: Renewables
Federal Tax Incentives (ITC, PTC, MACRS)
State Policy: RPS/RECs; Net Metering; 3rd Party Ownership;
PBFs; Tax Incentives
Electricity Prices/Rates/Rate Design
Renewable Portfolio Standard Policies..www.dsireusa.org / November
2012.
29 states,+ Washington DC and 2 territories,have
Renewable Portfolio Standards
(8 states and 2 territories have
renewable portfolio goals).
Renewable Portfolio Standard Policies with Solar / Distributed Generation Provisions.www.dsireusa.org / November
2012.
16 states,+ Washington DC have Renewable Portfolio
Standards with Solar and/or Distribute Generation provisions
Trends/Issues in RPS Policies• Slow down in adoption of new policies• Debate over relative role of DG/grid supply in solar
carve outs (NJ, DE, IL)• Long-term contracting provisions (CT, DE, MA, NJ)• Increased scrutiny of costs/increased relevance of
cost caps (OH, NM, IL)• Role of thermal energy resources (OH, NH)• Efforts to repeal or water down (OH, AZ, NC)• Declining costs, declining purchase rates (AZ, CO)
Public Benefits Funds for Renewables..www.dsireusa.org / November 2012 (estimated collections)..
18 states,+ Washington DC & Puerto Rico, have public
benefits funds ($7.8 billion by
2017).
(NOTE: Slides 2-12 explain the methodology for calculating funding estimates.)
Trends/Issues for PBFs• Decreased emphasis in many cases in favor of
RPS/market-based incentives (NJ, NY, PA)• Maintaining DG opportunities where RPS or
carve-outs not sufficient (MN, WI, OR)• Serving other needs beyond development of
end-use renewables (PA, NY, MA)• Instances of legislative “raiding” continue
(D.C., NY, IL)
Net Metering.www.dsireusa.org / November
2012.
43 states, + Washington DC
& 4 territories,have adopted a net
metering policy.Note: Numbers indicate individual system capacity limit in kilowatts. Some limits vary by customer type, technology and/or application. Other limits might also apply.
This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.
Net Metering: Meter Aggregation
DC
Aggregation of some from authorized by state
• Ownership requirements• Contiguous vs. non-contiguous
properties• Multiple customers• Multiple generators• Modified system/aggregate system size
• Rollover rates• Distance limitations• Number of accounts• How to address accounts on different
tariffs
But…It’s complicated
Trends in Net Metering Policies
• Adoption of virtual net metering/meter aggregation permissions (many)
• Standby charges or equivalent (CA, NM, VA)• Expanding aggregate capacity limits (CA, NY)• Increased concerns about net metering as a
“subsidy” and related costs/valuation of DG resources (CA)
3rd-Party Solar PV Power Purchase Agreements (PPAs).www.dsireusa.org / November 2012.
At Least 22 states,
+ Washington DC and Puerto
Rico,Authorize or Allow 3rd-Party
Solar PV Purchase Power Agreements.
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. See following slides for additional important information and authority references.
Third-Party Ownership Trends/Issues
• Industry interest in new states • Are retail PPA’s legal? Are there other impediments?
Does a lease work? (IL)• Applicability of third-party ownership to existing
incentive policies/programs (e.g., LIPA, NC, PA)• Sunset of 1603 Grants and impacts for tax-exempts
Source: U.S. Energy Information Administration
U.S. Electric Industry Average Revenue per kWh(March 2012)
Electricity Trends
But…at what rate? What about natural gas?
Other Topics of Interest• Grid integration, transmission and interconnection
issues• Resource externalities (e.g., MSW, biomass carbon
emissions)• Solar permitting/soft costs• Property taxes
JOBs, JOBs, JOBs…DSIRE and Industry recruitment
Market Drivers: Energy Efficiency
Federal Incentives??
State Policy: EERS/Utility Programs; PBFs;
Decoupling/Utility Programs
Electricity/Other Fuel Prices/Rates
Energy Efficiency Resource Standards.www.dsireusa.org / October 2012..
20 states have Energy Efficiency
Resource Standards.
(7 states have goals).Note: See following slide for a brief summary of policy details. For more details on EERS policies, see www.dsireusa.org and
www.aceee.org/topics/eers.
EERS Policy DetailsArizona: 22% cumulative electricity savings by 2020; 6% cumulative gas savings by 2020.
Arkansas: 0.75% of 2010 electric sales reduction by 2013; 0.4% of 2010 gas sales reduction by 2013.
California: Varies by utility.
Colorado: Electricity sales and demand reduction of 5% of 2006 numbers by 2018 (statutory requirement); natural gas savings requirements vary by utility .
Connecticut: 4% of retail load (includes CHP and waste heat recovery).
Delaware: Electricity and peak demand savings equivalent to 15% of 2007 numbers by 2015; natural gas savings equivalent to 10% of 2007 natural gas consumption by 2015.
Florida: 7,842 GWh cumulative reductions from 2010-2019 (statewide goal); 3,024 MW cumulative summer peak demand reduction from 2010-2019, 1,937 MW, cumulative winter peak demand reduction from 2010-2019 (statewide goal).
Hawaii: 4,300 GWh reduction in electricity use by 2030.
Illinois: 2.0% reduction of 2008 electricity sales by 2015; 1.1% reduction of 2008 peak load demand by 2018; 8.6% cumulative natural gas savings by 2020.
Indiana: 2.0% electricity sales reduction by 2019.
Iowa: Varies by utility.
Maine: 30% reduction of electricity and natural gas sales by 2020.
Maryland: 15% reduction in per capita energy consumption by 2015, compared to 2007; 15% reduction in per capital peak demand by 2015, compared to 2007.
Massachusetts: Reduce 1,103 GWh electricity in 2012 (statewide); reduce 24.7 million therms by 2012 (statewide).
Michigan: 1.0% annual reduction of previous year retail electricity sales by 2012; 0.75% annual reduction of previous year retail natural gas sales by 2012.
Minnesota: 1.5% reduction of previous 3-year average retail electric sales by 2010; 1.5% reduction of previous 3-year average retail natural gas sales by 2010.
Missouri : 9.9% cumulative electricity savings by2020; an additional 1.9% each year thereafter.9% cumulative peak reduction by 2020; an additional 1% each year thereafter.
New Mexico: 10% of 2005 total retail kWh sales by 2020.
New York: 15% reduction relative to projected electricity use in 2015; gas savings of 112 Bcf annually by 2020.
Ohio: 22.0% reduction of previous 3-year average retail electricity sales by 2025.
Pennsylvania: 3% of projected June 2009 - May 2010 electricity consumption by May 31, 2013; 4.5% of measured June 2007 - May 2008 peak demand by May 31, 2013.
Rhode Island: Varies by utility.
Texas: 25% reduction in annual growth in demand 2012; 30% reduction in annual growth in demand 2013.
Vermont: 320,000 MWh electricity savings (3-year goal for 2012, 2013, 2014); summer peak kW savings: 60,800 (3-year goal for 2012, 2013, 2014).
Virginia: 10% electricity savings by 2022 relative to 2006 base sales.
Washington: Varies by utility.
Wisconsin: 2011-2014: Net annual electric energy savings of 1,816,320,000 kWh; net annual natural gas savings of 73,040,000 therms.
Note: For more details on EERS policies, see www.dsireusa.org and www.aceee.org/topics/eers.
2011 State/Utility EE Budgets
Electric Energy Efficiency Program Budgets
State Budget ($ millions)
Spending as a % of Revenue
California 1,162.5 3.35%New York 1,073.2 4.69%
Massachusetts 453.0 5.77%Washington 274.9 4.36%New Jersey 225.0 2.05%
Pennsylvania 225.0 1.44%Minnesota 191.2 3.24%
Florida 188.5 0.77%Oregon 171.8 4.51%
Maryland 156.4 2.05%Texas 144.1 0.43%
Connecticut 138.3 2.83%Ohio 134.4 0.96%
Michigan 127.6 1.50%Arizona 126.1 1.74%Illinois 115.7 0.91%
Wisconsin 92.3 1.31%Iowa 88.8 2.55%
Colorado 64.1 1.28%Indiana 58.2 0.69%
Source: ACEEE 2012 State Efficiency Scorecard
Gas Efficiency Program Budgets
State Budget ($ millions)
Spending per Residential Customer($)
California 268.0 25.43New York 119.4 27.55
Massachusetts 118.0 84.92New Jersey 106.0 40.03Michigan 80.5 25.22
Illinois 51.6 13.44Iowa 44.0 50.06Ohio 42.6 13.14
Minnesota 40.9 28.61Utah 32.2 39.24
Washington 29.7 27.76Oregon 24.5 35.86
Pennsylvania 21.6 8.18Connecticut 20.0 40.77
Colorado 19.0 11.61Florida 13.6 20.13Indiana 13.3 7.99
Oklahoma 11.8 12.85Wisconsin 8.7 5.22
New Hampshire 7.8 82.11
What do they look like?Residential Programs
Prescriptive Equipment
Rebate
Home Performance
Direct Install (Low-Income)
In-store discount or recycling
Loan for Balance?
What do they look like?Non-Residential
Programs
Prescriptive Equipment
Rebate
Custom $/kWh, $/therm, $/kW
New Construction
Design Work/TA
Loan for Balance?
EE Program Trends• Increasing budgets ($1.9 billion in 2006 to $7 billion in 2011);
more programs • New technologies (e.g., data centers)• EERS dominates PBF mechanisms; ARRA impact receding but
not gone (e.g., continuing loan programs)• New financing mechanisms slowly gaining interest (on-bill,
commercial PACE)• Energy disclosure/benchmarking requirements• Energy code improvements• Increasing recognition of green building ratings other than
LEED
Fuel Price Trends
But…at what rate? Electric vs. gas vs. heating oil?
DSIRE Industry Recruitment• 41 Industry Recruitment Programs in DSIRE– 11 for both EE and RE– 40 for renewable energy– 12 for energy efficiency
• Incentive Types– Business loans– Cash incentives– Tax credits/abatements (property tax, sales tax,
franchise/income tax, payroll tax)
Industry Recruitment Examples• Cash Incentives
– NY Energy Star Homes Incentive for Builders– NJ Edison Innovation Grants/Loans
• Business Loans– MI Energy Revolving Loan Fund for Clean Energy Manufacturing– PA Solar, Wind, Geothermal, Alternative Energy Incentive Programs
• Tax Incentives– CA Sales and Use Tax Exclusion for Alternative Energy Manufacturing– NC RE Manufacturing Income Tax Credit– AZ RE Manufacturing Income Tax and Property Tax Incentives– MI Refundable Payroll Tax Credit for Alternative Energy Businesses
