NorthwestWindResource&ActionCenter Distributed/CommunityWindWorkGroupMeeting Wednesday,May6,2015 1:00PM–4:00PMMountainTime InpersonLocation: MontanaWeatherizationTrainingCenter 705OstermanDrive,Bozeman,MT RemoteParticipationInfo: Presentationaccess:https://attendee.gotowebinar.com/register/1831247976571834113 Callinnumber:7124321500,Passcode:872009# MeetingObjective:Networkwithotherswhoarecurrentlyactiveinthedistributed/communitywindsectorinthe region.Getupdatedonthecurrentissuesandactivitiesaffectingthismarketsegment. 12:30pm Arrive,informalnetworking(lightlunchprovided) 1:00pm Welcome&Introductions(webinar/conferencecallconnectionwillstartatthistime) 1:15pm Overview[MiaDevine,NorthwestSustainableEnergyforEconomicDevelopment(NWSEED)] Forthosenewtothegroup,MiawillprovideanintroductiontotheNorthwestWindCenterand activitiesoftheDistributed/CommunityWindWorkingGroup. U.S.DepartmentofEnergy’sDistributedWindStrategy[BretBarker,NewWestTechnologies] BretisstrategicadvisorfordistributedwindforDOEandwillprovideanoverviewofDOE’sinterest, 1:301:50 priorities,andcurrentactivitiesrelatedtodistributedwind.Participantswillhavetheopportunityto askquestionsandprovidefeedback/recommendationsonDOE’sstrategy. 1:502:15 2:152:20 2:202:50 2:503:20 3:203:50 3:504:00 CommunityWindCaseStudy:GordonButte,MT[BryanRogan,OversightResources] HearhowthreeMontanaentrepreneursdevelopeda9.6MWwindfarmwithlittlepriorwind developmentexpertise.NotonlyisthisprojectownedbyMontanansbutwasconstructedand financedbyMontanabasedcompanies.Presentationwillincludeadiscussionofopportunitiesand challengesfordevelopingsimilarprojects. Break WindLeasing[RussellTencer,UnitedWind] UnitedWindisthefirstcompanytoofferalittletonomoneydownleasingoptionforsmallwind installations.Insteadofpurchasingawindturbinethemselves,landownerscanpayafixedmonthly amounttoUnitedWindinexchangefortheinstallation,operation,andmaintenanceofthewind turbineontheirproperty.UnitedWindwillexplaintheirleasingproductandprocess,providean updateontheiractivityinNewYork,anddiscussopportunitiesfortheNorthwest. PermittingandZoning[MiaDevine,NorthwestSEED] Thepermittingprocessfordistributedwindenergyprojectscanvarygreatlyfromcountytocounty, leadingtoincreasedcostsandinefficienciesforbothpermittingagenciesandtheirconstituents.Mia willpresentadraftpermittoolkitthatjurisdictionscanusetoadoptwindfriendlypermittingbest practices.Theaudiencewillbeinvitedtoprovidefeedbackonimprovinganddistributingthetoolkit. NewOpportunitiesinNetMetering[JarodBishop,EWT] EWTisaglobalmanufacturerofmidsizedwindturbinesdesignedforthedecentralizedenergy sector.Jarodwillintroducehisworkevaluatingthefeasibilityofnetmeteredmidsizedwind turbinesatdairyfarms,alfalfairrigators,andfoodprocessingfacilities.Attendeeswillbe encouragedtobrainstormotherneartermopportunitiesfornetmeteredwindsystemsandidentify specificactionsthatcanleadtosignificantdeploymentofdistributedwindintheregion. Wrapupdiscussionandnextsteps Attendees MiaDevine,NorthwestSEED,WA JarodBishop,EWT,WA AliceOrrell,PacificNorthwestNationalLab,WA DanaPeck,Consultant HeatherRhoadesWeaver,eFormativeOptions BrittonRife,eFormativeOptions,WA TimStearns,WADeptofCommerce CraigDublanko,CoastalCAP,WA NikFoster,PacificNorthwestNationalLab,WA BradBurkle,EIPTechnologies,OR RobDelMar,OregonDepartmentofEnergy JakeWade,PugetSoundEnergy,WA JenniferJenkins,DistributedWindEnergyAssociation BretBarker,NewWestTechnologies/U.S.DepartmentofEnergy BryanRogan,OversightResources,MT NatalieMyer,CityofBozeman,MT GarrettMartin,MTDepartmentofEnvironmentalQuality BrianSpangler,MTDepartmentofEnvironmentalQuality BenBrower,MontanaRenewableEnergyAssociation DianaManeta,MontanaRenewableEnergyAssociation ChrisMason,MariahWind,WY DwightRose,ValleyViewElectric,MT JunePusichLester,NorthwesternEnergy,MT JarrodBley,MontanaWeatherizationTrainingCenter DaveRyan,MontanaRenewableEnergyAssociationboard JeffFox,RenewableNorthwest KyleAndrucyk,UnitedWind,NY LisaDaniels,Windustry,MN NWDistributed/CommunityWindWorkingGroup May 6, 2015 Bozeman, MT Agenda– nwwindcenter.org Northwest Wind Center Renewable Northwest - Fiscal Sponsor Steering Committee Oregon Dept. of Energy Washington Dept. of Commerce Offshore Wind Work Group •Lead: ODOE Renewable Northwest Northwest SEED Distributed & Community Wind Work Group Boise State University Montana Dept. of Commerce/ Dept. of Environmental Quality Land-based Utility Wind Work Group •Lead: NWSEED •Lead: Renewable NW •Community Renewable Energy Association •OR Dept of Energy •WA Dept of Commerce •Montana Renewable Energy Association •Energy Trust of Oregon •Endurance Wind Power •Xzeres Wind •Oregon Community Wind •Coastal Community Action Plan •One PacificCoast Bank •eFormative Options •Distributed Wind Energy Association Whatisdistributedwind? Whatiscommunitywind? InstalledCapacity State Washington Wyoming Montana Oregon Idaho Distributed Wind (MW) 12.7 5.8 4.9 4.8 2.4 Source: Pacific Northwest National Lab Community Wind (MW) 10.4 0 9.6 9.0 0 Wind data source: NREL, includes turbines rated at 100 kW or less. Solar data source: Washington State University Data source: Bloomberg New Energy Finance “2015 Factbook: Sustainable Energy in America” Wind data includes only turbines 100 kW or less. Solar data includes only “small-scale” solar. Installed Cost ($/Watt) Wind data : Bloomberg New Energy Finance “2015 Factbook: Sustainable Energy in America” Solar data source: LBNL “Tracking the Sun VII”, systems up to 10 kW in size. Photo Credit: Aegis Renewable Energy Bret Barker Wind Program Opportunities: Distributed Wind Systems 1 | Program Name or Ancillary Text New West Technologies Advisor to Wind and Water Power Technologies Office U.S. Department of Energy Northwest SEED Distributed & Community Wind Working Group Meeting May 6th, 2015 eere.energy.gov White House & DOE Priorities White House • Generate 80% of the nations’ electricity from clean energy sources by 2035 • Reduce carbon emissions 80% by 2050 • Lead the world in clean energy innovation, stimulate jobs and economic growth with a clean energy economy DOE • Ensure America’s security and prosperity by addressing energy and environmental challenges through transformative science and technology solutions • Maintain a vibrant U.S. effort in science and engineering as a cornerstone of economic prosperity EERE • Invest in clean energy technologies that strengthen the economy, protect the environment, and reduce dependence on foreign oil • Increase U.S. competitiveness in the production of clean-energy materials and products WWPTO • Improve the performance, lower the costs, and accelerate the deployment of innovative wind and water power technologies The mission of the Wind and Water Power Technologies Office is to enable U.S. deployment of clean, affordable, reliable and domestic wind and water power to promote national security, economic growth, and environmental quality. 2 | Energy Efficiency & Renewable Energy eere.energy.gov eere.energy.go Distributed Wind Portfolio Evolution Provide national leadership by redefining distributed wind to including all wind technologies used in distributed applications (not just small wind turbines) and establish new R&D priorities. Goal: By 2015, expand the market for small wind technologies five fold from 2007 baseline. Goal: By 2020, increase the number of certified small and medium wind turbine models to forty from 2010 baseline of zero. Target: DW COE competitive with other distributed generation technologies. 2008 2009 2010 2011 Small Wind Focused Development and publication of AWEA Standard 9.1 – Small Wind Turbine Performance and Safety. Development of regional facilities for testing small wind turbines to AWEA Standard 9.1 and establishment of accredited certification body. 2012 2013 2014 Application Focused First small wind turbine certification achieved in the U.S. by accredited U.S. certification body. Turbine technology optimized for distributed applications; advanced manufacturing; improved reliability; reduced soft costs. In August of 2014, the DOE Wind Program issued Request for Information: Acceleration of Distributed Generation from Wind Energy Systems 3 | Wind and Water Power Program eere.energy.gov Request for Information Results and Outlook Soft Cost Reduction and Turbine Technology R&D are top priorities. ¾ Stakeholders see significant potential for Soft Cost Reduction. ¾ ¾ DOE to research and develop high fidelity Soft Cost data set for Distributed Wind systems deployed in the U.S. DOE to use Soft Cost data set to identify and evaluate opportunities for Soft Cost reduction. ¾ Turbine Technology not optimized, but industry is confident it’s headed in right direction. ¾ ¾ DOE committed to Competitiveness Improvement Project, and anticipates continued support for this program. DOE to conduct research to develop a Small Wind Turbine Tower design tool. Stakeholders report Wind Resource Characterization & Assessment areas for improvement, but not top priority. ¾ Quality of assessment varies greatly based on tool, user, and system size. ¾ ¾ NREL to hold workshop on behalf of DOE during the June, 2015 Small Wind Conference in Stevens Point, WI. Workshop to focus on resource characterization in the site assessment process and identify approaches for improving accuracy, while reducing time and cost. Stakeholders suggest Distributed Grid Integration requires limited WWPTO attention. ¾ Issues well understood as a result of increased solar penetration. ¾ Wind Program an active participant in the broader DOE Grid Modernization effort, which includes distributed wind energy integration in building energy management systems and micro grids. 4 | Wind and Water Power Program eere.energy.gov Competitiveness Improvement Project Round 3 Technology development and turbine certification isn’t easy (or cheap), but we’re committed to help through the Competitiveness Improvement Project (CIP). ① Component and Manufacturing Process Improvement a) b) Component and Whole System Optimization ($350k w/ 20% cost share) Manufacturing Process Upgrade ($150k w/ 50% cost share) ② Certification Testing a) b) 2013 Rotor swept area <200m2 ($150k w/ 20% cost share ) Rotor swept area >200m2 and <1000m2 ($450k w/ 20% cost share) 2 Contracts Executed • Bergey Wind Power (Topic 1a) • Pika Energy (Topic 1b) 2014 Distributed Wind Cost of Energy competitive with distributed power sources and retail electricity rates. By 2020, increase the number of certified small and medium wind turbines to 40 from 2010 baseline of zero. 5 Contracts Executed • Endurance Wind Power (Topic 2a) • Pika Energy (Topics 1a,b) • Northern Power Systems (Topics 1a) • Urban Green Energy (Topic 2b) CIP Request for Proposals Closed February 25th, 2015. 8 Proposals Received. 5 | Wind and Water Power Program eere.energy.gov Competitiveness Improvement Project Round 1 Projects 6 | Wind and Water Power Program eere.energy.gov Small Wind Turbine Certification CIP Supports Previous DOE Investment to Establish Certification Framework Standards Test Facilities Certified Small Wind Turbine Model Ratings Bergey Windpower Excel 6 SWCC 9920 kWh 47.2 dB(A) 5.5 kW Bergey Windpower Excel 10 SWCC 13,800 kWh 42.9 dB(A) 8.9 kW Endurance S-343 SWCC 8,910 kWh 46.4 dB(A) 5.4 kW Kestrel e400nb SWCC 3,930 kWh 55.6 dB(A) 2.5 kW KW6 SWCC 8,950 kWh 43.1 dB(A) 5.2 kW Osiris 10 Intertek 23,700 kWh 49.4 dB(A) 9.8 kW Sonkyo Energy Windspot 3.5 Intertek 4,820 kWh 39.1 dB(A) 3.2 kW Sumec Hardware & Tools Co PWB01-30-48 Intertek 2,920 kWh 41.1 dB(A) 1.2 kW Sumec Hardware & Tools Co PWA03-44-48 Intertek 6,400 kWh 40.9 dB(A) 3.2 kW Sumec Hardware & Tools Co PWB02-40-48 Intertek 4,660 kWh 36.9 dB(A) 1.7 kW Sumec Hardware & Tools Co PWA05-50-280 Intertek 9,240 kWh 42 dB(A) 5 kW Xzeres Wind Corp 442SR SWCC 16,700 kWh 48.5 dB(A) 10.4 kW Xzeres Wind Corp Skystream 3.7 SWCC 3,420 kWh 41.2 dB(A) 2.1 kW Endurance Wind Power Eveready Diversified Products Kingspan Environmental Certification Bodies International Harmonization 7 | Wind and Water Power Program Osiris Technologies eere.energy.gov Certification Outreach Adoption of distributed wind systems has been hindered by untested technologies, unverified claims about turbine performance, and high-profile equipment failures. Certification and quality assurance requirements can help prevent unethical marketing and false claims, promote solid products, and can be adopted by local planning officials, utilities, banks, state energy offices, and federal agencies to ensure consumer protection and industry credibility. By 2020, DOE’s goal is to increase the number of certified small and medium wind turbine designs to forty (40). ¾ As of February 2015, thirteen (13) small wind turbine models are fully certified to the AWEA Standard with power performance ratings, sound level ratings and design and duration test compliance, and 2 medium wind turbine models have certified power performance and acoustics reports from accredited U.S. certification organizations. DOE is working to promote certification of distributed wind systems within the federal government: ¾ Issued a guidance memo to federal agencies encouraging funds be expended only on certified machines. ¾ Provided technical support to Treasury during the revision of Section 48 guidance for small wind. 8 | Wind and Water Power Program eere.energy.gov GordonButteWind NWDistributed&CommunityWindWorkGroup May6th,2015 GordonButteWind • • • • • • • Martinsdale,MT 10MW SixGE1.5MWSle ProjectCost $20M InterconnectwithNorthwesternEnergy 25yearPPA(QF)– NorthwesternEnergy DevelopmentPartners ¾ErrolGalt– Landowner ¾BryanRogan– “Developer” Martinsdale DevelopmentTimeline 2005 2011 • 2005– “Delusion’sofgrandeur” • 2009– RealityCheck • 2010– ProjectCompanyformed – OversightResources,LLC – 71Ranch,LP – DAWind,LLC UniqueFeatures • Windresource 50%AnnualCapacityFactor year1 • HandsonOwners– Landowner,Contractor,& Developer • Completedonbudgetandaheadofschedule • 100%MontanaOwnedandOperated(CREP) • FinancingbyStockmanBank • CashGrantinsteadofPTC ExpecttheUnexpected TurbineTransport Miscellaneous BryanRogan GordonButteWind,LLC OversightResources,LLC [email protected] 4065868440 Changing Our Energy Landscape IInvestor nvestor P Presentation resentation Our Vision Provide affordable, clean, wind energy to millions of rural property owners nationwide | Page 2 United Wind: Award Winning Leadership 2014 Small Wind Leadership Awards From: US Department of Energy, AWEA, DWEA Russell Tencer, Co-Founder & CEO • Founder & CEO, Wind Analytics • Founder & CEO, Parker Boston • Family Office Fund Manager Stuart Adler, Head of Projects • Strategic Purchaser Specialist, Vestas • Operations Analyst, DHL Express Brian Asparro, Chief Operating Officer • CFO, Green Charge Networks • Director, Moody’s Analytics • Board Member Ghana Capital Partners Sarah Gaddis, Head of Marketing • Marketing Associate, Community Environmental Center • Development, EDF Kyle Andrucyk, VP Finance • Head of Analysis, United Wind • Senior Analyst, Wind Analytics David Arfin, Advisory Board • VP Strategy & VP Customer Finance, SolarCity • Special Advisor, U.S. Dept. of Energy Jason Kaplan, Counsel & Head of Public Policy • Associate Attorney, Sahn Ward & Baker • Law Clerk, General Electric | Page 3 WindLease™ Savings Start Day One Customers Can Now Switch to On-Site Wind Energy With Zero Upfront Costs An Easy Switch to Wind • Zero upfront costs • Installation & maintenance included • Monthly payments less than current utility bill • 20 year warranty + performance guarantee Meaningful Customer Savings • 10% -15% immediate discount on electricity • Payment rates are locked in below utility escalation rates • Total savings over lease typically 20%+ • Typically powers 50% - 90% of property energy needs Savings Over Time Monthly Lease Payment New Monthly Utility Bill Customer Energy Costs Old Monthly Utility Bill Savings Savings Monthly Savings 0 5 10 15 20 Years | Page 4 WindLease™ Key Customer Terms Provision Summary Term 20 year lease of the small wind turbine installed by UW on the customer’s property Termination Hell or high water lease, cannot be terminated by the customer for any reason End of Lease Executed lease agreements shall include the following end of lease term options: • Customer may renew the lease agreement for 10 years; or • Customer may require the Project owner to remove the system at the Project owner’s expense. Lessee Obligations • • • Not repair or alter the equipment without UW’s consent Not build structures or obstruct wind energy potential in any way Maintain property insurance (for negligence that damages the turbine) Lessor Obligations • • • Insure the system Repair promise (20 years), Warranty (installation, equipment) Production guarantee (reimburse production below “threshold” at contractual price) Contingencies United Wind may terminate the lease agreement if: • United Wind cannot find a financing partner for the Lease • Customer credit is unacceptable • Building permits cannot be obtained • Equipment and/or contractors cannot be procured Ownership Transfer If the Customer sells his property, the Customer can execute a Transfer Agreement where the new property owner assumes all of Lessee’s rights and obligations, and where the Customer either: • Prepays the remaining monthly payments, and UW will continue to honor the terms of the (I&M); or • Submits the credit of the new owner, if approved new property owner continues to make the Monthly Payments | Page 5 U.S. Small Wind Addressable Market 25GW ($25B) 2015 – 2022 Potential Installed Capacity of Small Wind (100kW and below) by U.S. State Potential Installed Capacity 00-100MW 101 011-250MW 251 511-500MW 500MW+ | Page 6 NY Small Wind Addressable Market 1.1GW ($1.1B) 2015 – 2022 Potential Installed Capacity of Small Wind in NY State by County Potential Installed Capacity 00-25MW 2626 6-50MW 5151 1-75MW 7676 6-100MW | Page 7 United Wind Contracted Projects in NY State | Page 8 Contracted Customer Base Growing Rapidly We’ve Doubled our Customer Base in the Last Six Months Customer Sales to Date • 108 Customers Signed • $15.4M (1.9MW) in Signed Contracts • 27 Total Projects Commissioned 2015 Sales Projections • 300 Total Customers Signed • $35M (4MW) in Total Signed Contracts • 150 Total Projects Commissioned Existing Customer Data: Lease Type Credit Scores Customer Type Zero Down Agricultural Partial Prepaid 21% Fully Prepaid 46% 650-699 7% 10% Residential 700-749 Commercial 750+ 25% 35% 58% 33% 65% | Page 9 We Use Industry Leading Wind Analysis Technology Desktop Site Analysis Tools Deliver Accurate Results in Minutes • WindAnalytics™ currently used by NYSERDA and Energy Trust of Oregon to determine cash grants • System uses global network of Automated Surface Observing System (ASOS) station data, encompassing 6,000 stations across the US WindAnalytics land cover classification analysis • The data is provided as an hourly average of wind speed and direction, with typical station record history of 30+ years • Software suite accounts for variations in local obstructions, land cover, and topographical features to determine the wind profile at a given study site • Third party blind tested to 5.6% standard deviation on energy production including all loss factors WindAnalytics obstruction analysis | Page 10 We Lease Best-in-Class, NYSERDA Approved Wind Turbines Endurance E-3120 Manufacturer Overview • Endurance Wind Power • HQ: British Columbia, Canada • Founded in 2007 • Production capacity: 1,000+ Turbine Specifications • 54.8W rated capacity • SWCC certified • 11.3 million operating hrs. • 25 year useful life • 1,000+ turbines deployed Bergey Excel 10 Manufacturer Overview • Bergey Wind Power • HQ: Norman, Oklahoma • Founded in 1977 • Production capacity: 2,000+ Turbine Specifications • 8.9kW rated capacity • UL, SWCC certified • 50 million operating hrs. • 50 year useful life • 9,000+ turbines deployed | Page 11 Our Project Costs Are Falling Rapidly Cost/W Our Total Installed Cost Per Watt Has Declined 30% Over A Three Year Period $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 2012 2013 2014 Equipment 2015 (E) 2016 (E) 2017 (E) Balance of Plan | Page 12 Streamlined & Safe Installation Processes Defined Phase Installer UW Guidelines Frame Agreement Pre-Qualification Provide requested information to UW for certification checklist • Copies of insurance • NYSERDA Contract • Inspection Certificates Certification Checklist • NYSERDA Approved • Minimum SWT Installs for 1 Year • GL/WC/Equipment Insurance Not Applicable Project Award Execute Frame Agreement to become eligible for installations Cannot execute a Frame Agreement unless Certification Checklist achieved Determines “set” pricing for all Bergey/Endurance installations Installation Manage construction process for installation • Hire and manage all subs • Perform all foundation, electrical, tower erection, and turbine installation activities • Procure heavy equipment • Inspect equipment on delivery • Maintain up-to-date inspection and safety certificates on site UW Quality Assurance personnel performs at least two (2) unannounced site visits, during the foundation pouring, and turbine erection phases of installation Installation Warranty • 5 year warranty on installation HSE Standards • Maintain safety plans, access restriction, certified personnel at work site • Acceptance of equipment upon delivery shifts liability for defects from UW/supplier to installer Commissioning • UW Quality Assurance personnel reviews third party electrical inspection report for fleet consistency • • Manage application process for Manufacturer’s warranty Manage utility interconnection process • Comply with Manufacturer’s commissioning requirements Cure any defaults identified prior to awarding warranty | Page 13 Operations & Maintenance Processes Well Defined Phase Service Provider UW Guidelines Frame Agreement Inspections Make work site available for UW and Manufacturer inspections Project Site Checklist • Permit inspection • HSE visual inspection • Equipment damage check First required inspection (from Manufacturer) is part of each installation Scheduled Maintenance Perform scheduled maintenance as required by the Manufacturer’s Owner’s Manual Execute an O&M Frame Agreement prior to conducting scheduled maintenance Annual/Bi-annual maintenance of tower, turbine, and inverter Unscheduled Maintenance Perform unscheduled maintenance in conjunction with the Manufacturer’s guidance Execute an O&M Frame Agreement prior to conducting unscheduled maintenance= Confer with Manufacturer prior to performing any unscheduled maintenance Customer Billing & Collections Perform credit checks, billing, collection and tier 1 customer service and support Define and approve customer communication protocols Compliance with applicable consumer lending and confidentiality regulations | Page 14 Our Projects Deliver Competitive Unlevered Yields Year Lease Rentals State Rebate Operating Expenses Pre-Tax Cash Investment Developer Fee & Interest Tax Benefits Taxes Owed Post Tax Return Cumulative Post Tax Return 0 $0 $24,960 $0 ($42,240) ($64,000) ($3,200) $0 $0 ($42,240) ($42,240) 1 $1,545 $13,440 ($424) $14,465 $0 ($96) $35,965 ($15,548) $34,883 ($7,357) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 TOTAL $1,575 $1,605 $1,636 $1,667 $1,699 $1,731 $1,765 $1,798 $1,833 $1,868 $1,904 $1,940 $1,978 $2,015 $2,054 $2,093 $2,134 $2,174 $2,216 $0 $37,230 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $38,400 ($774) ($424) ($788) ($424) ($803) ($424) ($1,234) ($424) ($834) ($484) ($911) ($484) ($928) ($484) ($1,384) ($484) ($964) ($484) ($484) $0 ($13,644) $705 $1,085 $751 ($8,453) $896 $1,307 $531 $1,374 $999 $1,384 $993 $1,456 $1,050 $1,531 $670 $1,609 $1,169 $1,690 $1,732 $0 ($15,294) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($64,000) ($96) ($96) ($96) ($9,696) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($13,280) $6,032 $2,757 $1,654 $1,489 $869 $124 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $48,891 ($315) ($466) ($334) ($490) ($353) ($516) ($208) ($542) ($393) ($546) ($391) ($574) ($413) ($604) ($263) ($635) ($460) ($667) ($683) ($147) ($24,546) $6,421 $3,377 $2,072 ($7,454) $1,412 $916 $323 $832 $606 $838 $602 $882 $636 $927 $407 $975 $709 $1,024 $1,049 ($147) ($936) $2,441 $4,513 ($2,941) ($1,529) ($613) ($290) $542 $1,148 $1,986 $2,588 $3,470 $4,107 $5,034 $5,441 $6,416 $7,125 $8,149 $9,198 $9,050 Post-Tax IRR $9,050 11.50% | Page 15 PERMITTING OF DISTRIBUTED WIND SYSTEMS WHY FOCUS ON PERMITTING? • “Neartermpolicybarrier:restrictivezoning”and“nearterm policyaction:developmodelzoningordinancesandblueprint templatesofzoningregulations” AmericanWindEnergyAssociation,SmallWindRoadmap,2002 • “Inthenearterm,permittingisaverysignificantbarrier” DistributedWindEnergyAssociation,DistributedWindVision2015 • Itcantakemorepersonhourstoobtainapermittoinstall thanitdoestomanufacture,deliver,andinstallasmallwind turbine. • Withover25,000jurisdictionsintheU.S.DWEAestimatesthat addressingeachzoningordinanceindividuallywouldtake morethan1millionpersonhoursandcostmorethan$250 million. PERMITTING IMPROVEMENT TASKS Researchnationalbestpracticesandtemplates Createdatabaseofcurrentordinancesinwindy countiestoidentifyareasofimprovement Modifynationaltemplatesforlocaluse Implementtemplateslocally Goal:Astreamlinedpermitprocessfordistributedwindsystemsthatissimple,fast, andcosteffective,whileensuringsystemsafety. EXAMPLE: KLICKITAT COUNTY, WA • • • • • EnergyOverlayZonereplacedConditionalUseprocess CountywidewindresourceandEnvironmentalImpact Studywithpublicinput Preapprovedsitesfordevelopers Permittedoutright:windturbinesupto25kWand120ft 1200+MWwindcapacityadded PERMITTING BEST PRACTICES • AWEAModelSmallWindZoningOrdinance • DWEAModelDistributedWindOrdinance • ModelWindOrdinancesfromGeorgia,NewYork,Wisconsin, Minnesota,California,Oregon • DOEWindEnergyOrdinancesfactsheet • NACo report:ImplementingWindOrdinancesinAmerica’s Counties • PermittingSmallWindTurbines:AHandbook [email protected] DifferentRequirementsforDifferentSizes TypeI 100kWorLess Distributed TypeII Greaterthan100kW Distributed TypeIII WindFarms CascadeCommunityWind AllZones AllZonesExcept Residential EnergyOverlayZones Type II & III Type I Max Tip Height Tower Height Type II & III Type I ??? OTHER ISSUES • • • Sound Aesthetics DecommissioningRequirements NEXT STEPS • • • • PermittingWorkGroup? Webinars? Focusontargetcounties? Howdowefundthiswork? ))(*,-'#,#+#', ,*#'! (-, !"'!'*! =X\^!_! `* ^^{ |}'^^!^ ~^'!^!^_^'^ ' !^_ *!^ "1,,*#'! {~`""^ • }*!'^ \^''}_' • ^^*X'^''* !^ • ^_^"!'"^} ~' • ""*!'X` • }*'"!_^' .*!%,*##,1,+ Residential Commercial Industrial Census Division and State New England Feb-15 20.72 Feb-14 17.79 Feb-15 17.46 Feb-14 15.95 Feb-15 14.12 Feb-14 13.27 15.86 16.83 13.49 14.63 8.35 8.94 11.4 10.89 9.44 9.17 6.22 6.07 Pacific Contiguous 13.63 12.77 12.37 11.74 7.92 7.86 California 17.18 16.15 14.08 13.23 10.61 10.5 Oregon 10.44 10.23 8.91 8.92 5.82 6.16 8.65 8.67 8.19 8 4.59 4.63 Pacific Noncontiguous 24.91 28.25 22.52 25.59 21.02 26.3 Alaska 19.31 18.71 17.35 16.76 14.59 15.91 Hawaii 30.85 37.11 27.82 34.4 23.7 30.45 U.S. Total 12.29 11.92 10.62 10.67 6.88 7.07 Middle Atlantic Mountain Washington | • ^" '^__^ ^^""^ • "^ ^X\ • '^ '!^"' ''^!"^^"^ '^ '*!1','+#.'-+,*1 ,(*+ !" • `^_!_ • } • !_^^ #' • ~_!_ • !_"^X_^ • "^_!^ * • `^^'^^''!^ • "^^ • |^_'X__ • • • • ~^^^' ^' ^ ^!!^^ "%%'!+ ~ "' ! ^!' |'!^!_!^ ^ ^^' ^ #'#+1 + /:;<= =>+ =? @ *!('*($,+ !**#G JN> • |!|'' • }''}'^ • X\}! • =X\* • ~\^!' • |!"^X\! *!('*($,+ UVJN >!YJ • ~^^ _^'^!X^'"^^*} ^^|^!} • ^¡X\ • ¡} • *¡ • ~ ¡ • \|_¡ • |!"^=X\! 2-**($,#, (*(*!(' %# (*'#% % *(/*+ "" ¢_*^£''^ ' "^^}!_^"¡ ¡ X\^ *¡ X\ _^ ^'!' 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