Loading...
HomeMy WebLinkAboutEnergyPlan OER_PUC.pdf1 Report to the Idaho State Legislature December 2009 Idaho Office of Energy Resources Idaho Public Utilities Commission 2 December 11, 2009 Senators and Representatives, The 2007 Idaho Energy Plan, written in compliance with House Concurrent Resolution 62, directs that the “Energy Division (now the Office of Energy Resources) and the Public Utilities Commission should report to the Legislature every two years on the progress of Idaho state agencies, energy providers and energy consumers implementing the recommendations in this Energy Plan.” (Action Item I-3, page 65, 2007 Idaho Energy Plan.) The Office of Energy Resources and the Public Utilities Commission, acting jointly, hereby submit the 2009 report. We consider this biennial filing to be a critical component to helping achieve the state’s goal of ensuring a reliable, low-cost energy supply, protecting the environment and promoting economic growth. Filing this report every two years, as the Energy Plan requires, will help us evaluate our progress and set future goals. You will find that we firmly believe the State is making progress in meeting many of the plan’s objectives. We also do not hesitate to point out those areas where some of the plan’s recommendations are best met with other approaches and methodologies. As stated in Energy Plan’s introductory letter from the Interim Committee on Energy, Environment and Technology, “Idaho’s existing energy resource base has resulted in some of the lowest electricity and natural gas prices in the country, providing enormous benefit to customers.” To maintain that benefit and yet meet the significant challenges of the future to provide energy supply at reasonable rates, the Office of Energy Resources and the PUC concurs with the Committee’s statement that we need a “pragmatic, common-sense approach.” We believe that the actions taken thus far, and those planned, will prepare us well for the future. Sincerely, Paul Kjellander Director, Idaho Office of Energy Resources Jim Kempton President, Idaho Public Utilities Commission 3 Table of Contents The Action Items below are the same as those cited in the 2007 Energy Plan. Electricity Action Item E-1: Conservation in resource planning……………………………………..5 Action Item E-2: Annual Targets for Conservation Achievement………………………..6 Action Item E-3: Benchmarks to evaluate cost-effectiveness of conservation……………7 Action Item E-4: Shareholder incentives for conservation targets………………………..8 Action Item E-5: Support market transformation programs……………………………..11 Action Item E-6: Rate designs to encourage efficient energy use……………………….11 Action Item E-7: Municipal and cooperative utilities conservation report………………12 Action Item E-8: Tax incentives for energy efficient technologies……………………...13 Action Item E-9: Sales and use tax exemption for energy efficient technologies……….14 Action Item E-10: Implement international building codes; assist local jurisdictions…..14 Action Item E-11: Increase energy efficiency in state government, raise awareness……15 Action Item E-12: Tax incentives for Combined Heat and Power (CHP) facilities……..18 Action Item E-13: Credit backstop for low-cost financing for renewables, CHP……….19 Action Item E-14: Offer voluntary “green pricing” programs……………………….…..19 Action Item E-15: Shareholder incentives for renewable investment…………………...19 Action Item E-16: Administer PURPA to encourage customer-owned generation……..20 Action Item E-17: Establish uniforn interconnection and net metering policies………...21 Action Item E-18: Utilities report to customers their fuel mix…………………………..22 Action Item E-19: State agencies should report on progress of clean-coal technologies..23 Action Item E-20: Work with INL to bring Next Generation Nuclear Facility here…….24 Action Item E-21: Encourage use of dry-cooling or gray-water cooling………………..24 Action Item E-22: Participate in regional efforts to increase Western grid capability…..25 Action Item E-23: Credit backstop for low-cost financing for transmission projects…...25 Action Item E-24: Amend Internal Revenue Code for transmission revenue bonds…….26 Natural Gas Action Item NG-1: PUC policies to encourage use of natural gas when efficient………26 Action Item NG-2: Incentives for investment in non-traditional natural gas resources…27 Action Item NG-3: Support siting of liquefied natural gas (LNG) terminals……………27 Alternative Fuels Action Item T-1: State vehicle procurement rules should encourage efficient fuels…….28 Action Item T-2: Provide incentives for purchase of alternative fuel vehicles………….29 Action Item T-3: Incentives for investment in fuel supply infrastructure……………….29 4 Action Item T-4: Incentives for ethanol and biodiesel…………………………………..30 Action Item T-5: Promote R&D for alternative fuels, including cellulosic ethanol…….30 Action Item T-6: Prohibit contract exclusivity requirements……………………………30 Energy Facility Siting Action Item S-1: PUC authority to site transmission facilities in specified corridors…...31 Action Item S-2: Creation of Energy Facility Site Advisory Team……………………...32 Action Item S-3: Local input on siting of large generation facilities……………………33 Implementation Action Item I-1: Consider Department of Water Resources reorganization……….…….33 Action Item I-2: Energy Division engage in public outreach, education………………..33 Action Item I-3: Energy Division, PUC report to Legislature every two years…………34 Action Item I-4: Revisit Energy Plan every 5 years……………………………………..35 5 ELECTRICITY Actions Conservation, Energy Efficiency and Demand Response E-1 – All Idaho utilities should fully incorporate cost-effective conservation, energy efficiency and demand response as the priority resources in their integrated resource planning (IRP). Legislative Guidance The Idaho Public Utilities Commission (PUC) requires that regulated utilities file an Integrated Resource Plan (IRP) every two years. Respective IRPs detail utilities’ plans for meeting customer demand over 10 years. 1 In IRPs, demand-side resources are compared directly to supply-side resources, including renewable resources. To the extent IRP forecast analyses are valid, a utility has incentive to pursue those resources that reduce cost and risk or else face the risk of the Commission denying cost recovery on capital investment and operational cost. The Commission recognizes cost-effectiveness from the Total Resource Cost (TRC) perspective as an important criterion for assessing the appropriateness of utility demand- side management (DSM). Two other cost-effectiveness perspectives are also important: 1) the utility cost (UCT) perspective and 2) the participant cost perspective. In Order No. 28894, the PUC ordered Idaho Power to use all three of the above tests in assessing the cost-effectiveness of its 1 Idaho Power’s 2008 IRP update can be found on the Commission Website at www.puc.idaho.gov. Click on the electric icon, then on “Closed Electric Cases,” and scroll down to IPC-E-06-24. Click on “2008 IPR Update.pdf.” The update is also available at this link: http://www.puc2.idaho.gov/intranet/cases/elec/IPC/IPCE0624/200806202008%20IRP%20UPDATE.PDF To access the Commission’s order granting Idaho Power an extension to file its 2009 IRP to Dec. 31, 2009, go to “Closed Electric Cases,” and scroll down to Case No. IPC-E-09-13. For press release re: Avista’s latest IRP (AVU-E-07-8, Order No. 30464), see Appendix A. For press release re: PacifiCorp’s latest IRP (PAC-E-09-06), see Appendix B. For the press release on PacifiCorp’s latest IRP (PAC-E-09-06), see Appendix B.) The Committee intends that Idaho utilities should make cost‐effective conservation, energy efficiency and demand response the highest priority resources in their IRPs. The Committee recommends the “Total Resource Cost” perspective as the appropriate test of the cost‐effectiveness of conservation measures, and provides the following definition of cost‐effectiveness as guidance: “Cost‐effectiveness of a conservation measure means that the lifecycle energy, capacity, transmission, distribution, water and other quantifiable savings accruing to Idaho citizens and businesses exceed the direct costs of the measure to the utility and participant.” 6 DSM programs. Avista Utilities’ and Rocky Mountain Power’s assessment of their DSM programs consistently include cost-effectiveness evaluations using all three of these tests. The TRC cost-effectiveness test ensures that the sum of the incremental cost of the energy efficiency improvement plus the program administrative costs is less than the sum of quantifiable benefits. Under the TRC test, quantifiable benefits include avoided costs of electricity, natural gas, other fuels, water, sewer, detergent, labor, etc. The TRC treats incentives paid by the utility to entice customer participation as a transfer payment, rather than as a cost. Thus, use of the TRC as the only cost-effectiveness test invites utilities to pay higher incentives than necessary because TRC cost-effectiveness can only increase, never decrease, with higher incentive payments. Paying customers higher than necessary incentives is contrary to Order No. 22299, the 1989 order that is the genesis of utility IRPs. In addition, the PUC cannot ignore the fact that the TRC’s inclusion of the non- utility savings in cost-effectiveness increases the discrepancy between who pays the DSM costs and who benefits from the programs. Measuring cost-effectiveness from the UCT perspective is important for ensuring that the utility’s overall, long-term costs are reduced by DSM programs. The UCT counts incentive payments by the utility to entice customer participation as a program cost. Thus, the use of this test encourages utilities to limit incentive payments to only the amount necessary to motivate the optimal amount of customer participation, thereby maximizing net benefit for its customer base. Cost-effectiveness from the participant perspective ensures that customers who are willing and able to participate in a DSM program will, on average, not be economically harmed by their participation. Use of the participant test helps ensure credibility of utility DSM programs and, thus, long-term acceptance by utility customers. For further explanation of the importance of assessing cost-effectiveness from multiple perspectives, and for more detailed information on each of the above and other cost- effectiveness tests, see the National Action Plan for Energy Efficiency’s (NAPEE) Understanding Cost-Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods and Emerging Issues for Policy Makers, November 2008, available online at http://www.epa.gov/cleanenergy/documents/cost-effectiveness.pdf E-2 – The Idaho PUC should establish annual targets for conservation achievement based on estimates of cost-effective conservation in the service territories of Idaho’s investor-owned utilities. From a statutory standpoint, the Idaho Public Utilities Commission has a regulatory role, but it does not manage investor-owned utilities; nor does the Commission currently have the resources to assume such responsibilities. While it is possible for the PUC to annually establish specific targets for conservation achievement, doing so would require new or reassigned resources at the PUC and at each 7 of the utilities. The effort would require extensive formal process involving defining of public purpose for each target; estimation of benefits, or lack thereof; tracking target compliance, and reviewing appeals for reconsideration where penalties are assessed for failure to achieve specific targets. Because of the complexity of the issues above, and because achievable cost-effective conservation comes as a mix of customer participation and utility Demand-Side Management (DSM) programs, the Commission has not established specific conservation targets. The Commission has instead directed utilities to pursue all available cost- effective DSM and conservation. For example, in regard to the Commission’s approval of Idaho Power’s Evander Andrews peaking power plant, the Commission directed the Company to “ ... diligently and vigorously pursue all available cost-effective DSM, conservation and pricing options that could potentially displace or defer the need for additional future peaking generation”. (Order No. 30201). The compelling reason for directing utilities to pursue all available cost-effective DSM and conservation is that establishing pre-set targets implies knowledge of cost- effectiveness parameters years in advance of the time actual data is collected to verify front-end decisions. In reality, most cost-effectiveness parameters are continually changing. It is impossible to accurately foresee future supply-side costs and restraints; future development of hardware and software efficiencies including their prices and useful lives; the delivery complexity of future programs and the evaluation costs. It is also difficult to estimate future program participation levels because participation is dependent on an evolving myriad of economic, social and governmental priorities, such as tax incentives, building codes and appliance standards.” The “prudency” standard in a front-end decision to acquire cost-effective DSM and conservation is discussed under the E-1 action item in the form of the TRC test, UTC test and participant cost perspective. It is important to note that regional efforts are under way to assess the role that conservation measures can have on regional energy needs. The Office of Energy Resources participated in the Northwest Power and Conservation Council’s Regional Technical Forum and Conservation Resource Advisory Committee during the development of the draft Sixth Northwest Power Plan. Energy conservation is a significant portion of the Council’s plan to supply energy for the Northwest into the future. When the Sixth Northwest Power Plan is completed, it can be viewed at http://www.nwcouncil.org/. This reference to the Sixth Northwest Power Plan is not intended as endorsement of the end product, but merely seeks to provide additional references to assist policy makers in their effort to understand regional perspectives associated with energy efficiency and conservation. E-3 – The Idaho PUC should establish and periodically update an avoided cost benchmark for each utility to be used in evaluating the cost-effectiveness of 8 conservation and renewable resource investments and in calculating payments to qualifying facilities under the federal Public Utility Regulatory Policy Act (PURPA). Because avoided cost is defined as the cost of the next unit of power a utility would acquire if there were a need for additional generation, it is often argued that avoided cost used to value a qualifying small-power PURPA project should also be used to evaluate cost-effectiveness of proposed conservation projects or renewable resource options. Under this proposition, it is logical to suggest that an “avoided cost benchmark” for each utility could be established and updated periodically. In actual practice, the benchmark concept is oversimplified. To accommodate small (10MW or less) PURPA projects in Idaho, the Commission has established a published avoided-cost rate based on a surrogate avoided resource (SAR) that is currently defined as a combined-cycle combustion gas turbine. This over- simplified methodology works relatively well for small base load-type resources. It does not work well for variable renewable energy resources because of the difference in SAR operating characteristics. Instead, the utility uses its Integrated Resource Plan process with actual planned resources and forecasted market prices to establish an avoided cost for each proposed renewable project. The IRP and its various parameters are published and periodically updated. The avoided cost associated with this methodology more accurately reflects the generation costs that a utility expects to avoid by acquiring any other resource regardless of operating characteristics. It also forms the basis of the cost- efficient resource acquisition calculations conducted to meet the standards of E-1. Published PURPA avoided- cost rates for small qualifying facilities were most recently updated in March 2009 in response to a joint petition from the investor-owned utilities and other parties to 1) update the non-fuel cost components of the SAR and 2) reflect the new natural gas price forecast from the Northwest Power and Conservation Council.2 Utility IRPs used to determine actual planned generation costs avoided by proposed renewable resources are updated every two years. The PUC is continuously evaluating both the processes used by utilities to deliver demand-side programs and the assumptions and measurements used to determine cost- effectiveness. The Commission is currently working with utilities to establish procedures to annually report demand-side process improvement and to periodically update program impact evaluation, measurement and verification (EMV) practices. E-4 – The Idaho PUC should establish appropriate shareholder incentives for investor-owned utilities that achieve the conservation targets established by the PUC. Shareholder incentives may include, but are not limited to: i. Recovery of revenues lost due to reduced sales resulting from conservation investments; ii. Capitalization of conservation expenditures; 2 Case No. GNR-E-08-02, Order No. 30744. For press release, see Appendix C. 9 iii. A share of the net societal benefits attributable to the utility’s energy efficiency programs; iv. An increase in the utility’s return on equity for each year in which savings targets are met; or v. “Decoupling” of utility revenues from sales. The PUC has not established “conservation targets” as explained under E-2 except to “achieve all available DSM, conservation and energy efficiency.” However, in March 2007, the Commission adopted one of the first electric decoupling mechanisms in the nation designed to remove financial disincentives for Idaho Power Company to implement energy efficiency programs. (Case No. IPC-E-04-15, Order No. 30267) The Fixed Cost Adjustment (FCA) is a mechanism that separates utility sales from revenues by allowing Idaho Power to recover its fixed costs of providing power, as established in the most recent rate case, regardless of reduced sales due to energy efficiency and demand side management programs. In exchange for allowing Idaho Power this recovery, the utility committed to aggressively and cost-effectively pursue energy efficiency and demand side management programs. Idaho and the PUC are soon to be in the final year of a three-year pilot and Idaho Power has applied to have the FCA made permanent.3 Also, each of the three major investor-owned utilities has energy efficiency riders in place that allow them to recover costs of demand-side management, conservation and energy efficiency programs. The Commission has been willing to grant utility requests to significantly increase these riders over recent years to encourage conservation, energy efficiency and DSM. On June 1, 2009, the Commission increased the Idaho Power rider from 2.5 percent to 4.75 percent. According to Idaho Power’s application, energy efficiency programs in 2008 resulted in 107,484 megawatt-hours of energy savings, a 72 percent increase over the 2007 total of 62,544 MWh. DSM programs that reduce demand on Idaho Power’s system provided 58 megawatts of demand reduction in 2008 compared to 48 MW in 2007. 4 The commission recently completed a review of Avista’s DSM and energy efficiency programs in conjunction with its earlier approval of an increase in the rider from 2.24 percent to 3.27 percent. Avista’s DSM and efficiency efforts are based on providing financial incentives or rebates for customer participation in more than 30 programs. Avista continues to exceed targets in electric and gas savings as the result of these programs for its Washington and Idaho customers. More than 110 average megawatts of demand-side management programs are now in place on the company’s total retail average load (during 2008) of 1,100 average megawatts.5 3 Order approving FCA in Case No. IPC-E-04-15, Order No. 30267. For press release, see Appendix D. Press release re: Idaho Power application to make FCA permanent, Case No. IPC-E-09-28, see Appendix E 4 Most recent Idaho Power energy efficiency rider increase, IPC-E-09-05, Order No. 30814. For press release, see Appendix F. 5 Case No. AVU-E-09-06. For Order 30918, see Appendix G. 10 In May 2008, the Commission authorized an increase in PacifiCorp’s (Rocky Mountain Power) rider from 1.5 percent to 3.72 percent. By implementing programs funded by the rider, the company estimates it will save 13,140 megawatt-hours per year. At the former 1.5 percent, the rider funded programs that saved about 8,000 MWh during 2007.6 The independent American Council for an Energy-Efficient Economy (www.aceee.org) ranks Idaho 13th among the 50 states and the District of Columbia in its 2008 State Energy Efficiency Scorecard. More noteworthy, is the report’s declaration that Idaho is the “most improved” state, having moved up 12 spots from the 2007 scorecard. The link to that report is as follows: http://aceee.org/pubs/e086_es.pdf While the PUC does not establish explicit shareholder incentives, the aggressiveness of the utility is a factor in setting Return On Equity (ROE) in rate cases. In Order No. 22299, the Commission said, "Accordingly, we take this opportunity to notify our regulated electric utilities that in future rate cases we will take into account the utility's commitment to energy conservation in determining the allowed rate of return. A utility that aggressively addresses the issues and concerns found in this Order, all other things being equal, may expect the allowance of higher return than might otherwise be allowed." Also encouraging to shareholders is the fact that increased frequency of rate cases has decreased the potential for lost recovery of fixed costs due to demand-side achievements in between rate cases. All three IOUs purchase power under contract from renewable resources. These costs are allocated to annual Power Cost Adjustment (PCA) accounts until the costs are placed in base rates following the next rate case. (A mechanism like a PCA, called the Energy Cost Adjustment Mechanism, has just been approved for PacifiCorp, Order No. 30904) For PURPA contracts, the utilities get 100 percent recovery of prudent expenses through the PCA until costs are fully included in base rates. Additionally, the Idaho Office of Energy Resources (OER) initiated a series of workshops to develop an appropriate incentive mechanism to optimize cost-effective demand-side management activities for Idaho Power Company. The results of the workshops may be presented to the PUC for its consideration in regulatory proceedings. The goal of the workshops is to explore and potentially develop an incentive mechanism for Idaho Power’s investment in DSM activities that represents a reasonable and attainable incentive, and that balances and aligns utility, customer and societal interests. Parties indentified from previous PUC cases were invited to participate in the workshops. 6 Case No. PAC-E-08-01, Order No. 30543. For press release, see Appendix H. 11 These workshops are also intended to advance commitments made by the State of Idaho in relationship to acceptance of funds provided by the American Reinvestment and Recovery Act. In a letter addressed to the United States Secretary of Energy, Idaho Governor C.L. “Butch” Otter signed assurances that the state would seek to implement a general policy that ensures that utility financial incentives are aligned with helping customers use energy more efficiently. 7 E-5 – The Idaho PUC should support market transformation programs that provide cost effective energy savings to Idaho citizens. The PUC continues to allow Idaho’s regulated utilities to fund and actively participate in the Northwest Energy Efficiency Alliance (NEEA), a regional market transformation entity. PUC staff actively monitors NEEA’s programs and decision-making processes in assessing the benefits to Idaho customers. All three IOUs have or are currently negotiating new 5-year contracts with NEEA to continue market transformation efforts. The PUC staff consistently supports NEEA’s efforts as cost-effective and prudent. However, the commission continues to evaluate NEEA’s cost-effectiveness calculation methods and its past method of allocating savings to utility service areas. In this regard, utilities are encouraged to compare the cost-effectiveness of NEEA programs to programs that could otherwise be provided by the utilities within their own service areas. To further support regional market transformation programs, Gov. Otter exercised his authority to appoint a member to the NEEA board. Under provisions of the NEEA bylaws, Idaho and Montana “rotate” a seat on the NEEA board. Governor Otter’s recommendation to the NEEA Board was approved in October 2009. 8 E-6 – The Idaho PUC and Idaho utilities should consider adopting rate designs that encourage more efficient use of energy. The PUC continues to consider the affects of rate design on electricity consumption and peak-energy demand. The PUC recognizes that, ultimately, cost-based and time-varying rates will provide important price signals, but until customer meters are upgraded to accommodate such dynamic pricing, other rate designs (e.g. tiered rates, seasonal rates) have been implemented. In conjunction with Idaho Power’s 2008 rate case, the Commission re-instituted tiered rates in early 2009 for Idaho Power customers. Customers pay the lower rate for use below 800 kWh. The next highest rate is for use between 801 and 2000 kWh. All use above 2000 kWh is priced at the highest level.9 7 Assurance letter dated March 19, 2009. See Appendix I. 8 Letter from NEEA acknowledging appointment dated October 21, 2009. See Appendix J. 9 IPC-E-08-10, Order No. 30722. For press release, see Appendix K. 12 Rocky Mountain Power in eastern Idaho has had Time of Use rates (TOU) for more than 20 years. The Commission continues to assess whether cost-based TOU rates effectively supplant the benefits of tiered rates. To meet the challenge of increased efficiency in reducing load, the Commission has strongly encouraged utilities to implement automated metering infrastructure, often referred to as the “smart grid.” In 2005, Idaho Power began installing automated meters on a pilot basis in the Emmett area. The Commission later ordered automated meters installed in three phases throughout Idaho Power’s service territory and, in the context of the most recent rate case, included expenses from the first phase in base rates.10 Installation is now under way and expected to be completed in 2011. E-7 – Idaho’s municipal and cooperative utilities should annually report to the Energy Division their estimates of cost-effective conservation in their service territories, their plans for acquiring this resource, their conservation and energy efficiency expenditures, and their estimated savings in electrical energy (MWh) and peak capacity (kW) during the lifetime of the measures implemented. OER and the PUC do not have any direct authority over Idaho’s municipal and cooperative utilities. Accordingly, any compliance with this action item is entirely up to the discretion of the cooperative and municipal utilities. In an effort to acquire the information associated with this action item, the OER sent a formal request to the Idaho Consumer-Owned Utilities Association.11This request resulted in a prompt response from Idaho’s municipal and cooperative utilities which provide power to more than 200,000 Idahoans. Historically, public power in Idaho has been on the forefront of energy conservation and efficiency programs. Each municipality and cooperative manages their individual resource plan, and energy efficiency and conservation are a part of that plan. Public power utilities in Idaho are customers of the Bonneville Power Administration (BPA) and participate in the development and deployment of BPA conservation efforts. Conservation and energy efficiency expenditures and corresponding energy savings are reported directly to BPA. Programs include but are not limited to: rebates for energy efficient appliances, residential weatherization, commercial lighting retrofits, duct sealing for manufactured homes, heat pump programs, CFL programs, irrigation sprinkler programs, and LED traffic signals.[11a 10 IPC-E-08-16, Order No. 30726. For press release, see Appendix L. For recent inclusion of AMI in rates, see Case No. IPC-E-09-07, Order No. 30829. For press release, see Appendix M 11 Text of Letter to Idaho Consumer-Owned Utilities Association dated 10/27/2009. See Appendix N. 11a/ Estimated savings in electrical energy by public power in Idaho for 2007 and 2008 can be found in Appendix ICOU. 13 E-8. Idaho should offer an income tax incentive for investments in energy efficient technologies by Idaho businesses and households. OER has initiated several efforts to update Idaho’s statutory language related to energy efficiency tax incentives. The most recent effort in the fall of 2009 resulted in targeted language to update the residential incentives for energy efficiency deployment.12 This draft legislation was ultimately rejected due to fiscal realities that could have potentially impacted existing general fund revenue streams. From a pragmatic perspective, the current economic recession will continue to serve as a barrier to efforts of this nature. These legislative concepts will have to wait until the state fully recovers from its current economic slump. OER continues to provide incentives in the form of low-interest loans for residential, commercial, industrial and agricultural customers. The program provides a 4 percent interest rate over a 5-year loan repayment plan and has been used to fund energy efficiency and renewable energy projects.13 This program has provided 2,538 loans totaling $16,748,541.49. The OER has also taken steps to advance investments in energy efficient technologies by Idaho businesses through its Industrial Energy Efficiency Programs. OER’s Industries of the Future (IOF) programs provide US Department of Energy certified Energy Saving Assessments (ESAs) for industrial partners that investigate the operating characteristics of energy intensive processes and provide improvement recommendations that include estimates of energy and dollar savings. The energy intensive industrial processes addressed by ESAs include Steam Systems, Pumping Systems, Fan Systems, Compressed Air Systems, Process Heating Systems, and opportunities for Combined Heat and Power (CHP) applications. In its industrial efficiency and training outreach efforts, OER is working with Boise State University and the University of Idaho’s Tech Help program to explore expansion of Tech Help to become a DOE-certified Industrial Applications Center. Currently, the only DOE certified Energy Specialist in the state is an OER staff member, so expansion of the universities’ Tech Help program to the status of an Industrial Applications Center will significantly broaden the availability of energy specialist expertise in Idaho to assist Idaho industries. Funding through the American Reinvestment and Recovery Act ($30 million) is also being targeted to provide assistance for low-income residential customers. This program is being directed by the Idaho Department of Health and Welfare. Details related to this incentive program can be found at http://www.healthandwelfare.idaho.gov/. 12 Text of Draft legislation for residential energy efficiency updates. See Appendix O. 13 More information on OER’s Low-interest Loan program information can be found at http://www.energy.idaho.gov/financialassistance/lowinterestenergyloans.shtml. 14 To further support investment in energy efficient technologies, the OER awarded $5 million in American Recovery and Reinvestment Act funds to Micron Technology Inc. to advance a manufacturing program focused on producing light-emitting diode (LED) technology.14 This funding directly incented the establishment of an LED manufacturing operation in Idaho that will create jobs and ultimately improve access to this energy efficiency technology. LED technology uses about one-seventh of the electricity of today’s standard lighting sources. Applications include general commercial and residential illumination, municipal streetlights and outdoor area lighting; off-grid lighting powered by solar for remote locations; television and display backlighting as well as automotive lighting and instrument illumination. E-9. Idaho should offer a sales and use tax exemption on the purchase of energy efficient technologies. As was referenced in Section E-8, the current economic downturn and the potential impact incentives and exemptions can have on general fund revenue streams makes it difficult to pursue efforts of this nature. Economic realities represent an insurmountable hurdle to these types of legislative initiatives. As the economy improves, further consideration to this public policy consideration will be explored. E-10. Idaho should adopt international building codes on a three-year cycle as a minimum for building energy efficiency standards and should provide technical and financial assistance to local jurisdictions for implementation and enforcement. The concept of adopting International Energy Codes is fully supported by the State of Idaho. As part of the assurances required for the American Recovery and Reinvestment Act (ARRA) funds, Governor Otter committed to make progress toward adopting the 2009 International Energy Code.15 Additionally, the Governor strongly encouraged the PUC, OER and the Division of Building Safety to make progress in this area.16 Efforts to adopt building codes for energy efficiency building standards are under way. The Idaho Building Code Board met on June 10, 2009 and issued a Notice of Rulemaking for adoption of the 2009 International Building Code, including the International Energy Conservation Code. On August 12, 2009 the Board adopted the IECC without amendment effective January 1, 2011. The rulemaking has been submitted to the Administrative Rules Office.17 14 Text of Press Release dated 9/24/2009. See Appendix P. 15 Letter from Governor Otter to U.S. Department of Energy Dated March 19, 2009. See Appendix Q. 16 Letter from Governor Otter dated March 19, 2009. See Appendix R. 17 Text of Energy Code Rulemaking. See Appendix S. 15 The OER has also dedicated $500,000 of ARRA funds to assist local units of government in their quest to implement new energy codes. Additionally, the Energy Codes Collaborative has been formed which includes representatives from the Association of Idaho Cities, the Idaho Association of Counties , the Idaho Division of Building Safety, the Office of Energy Resources, the Idaho Association of Building Officials, Northwest Energy Efficiency Alliance and various code-enforcing jurisdictions to further explore opportunities to implement new energy codes. The OER is working closely with the Collaborative to provide scholarships to building officials for energy code training in 2010, assisting development of Energy Code Ambassadors to assist with adoption and implementation, and to use the compliance tools in a proactive way to provide jurisdictions and builders with a self-assessment tool for code compliance. The support actions will continue through 2012 to follow up the IECC implementation date. E-11. State Government will: i. Demonstrate leadership by promoting energy efficiency, energy efficient products, use of renewable energy and fostering emerging technologies by increasing energy efficiency in all facets of State government; ii. Ensure that public facility procurement rules provide appropriate incentives to allow full implementation of cost-effective energy efficiency and small-scale generation at public facilities; iii. Collaborate with utilities, regulators, legislators and other impacted stakeholders to advance energy efficiency in all sectors of Idaho’s economy; iv. Work to identify and address all barriers and disincentives to increased acquisition of energy conservation and efficiency; and v. Educate government agencies, the private sector and the public about the benefits and means to implement energy efficiency. The Commission will work with the Legislature and with OER to promote and provide education regarding energy efficiency. In Case No. IPC-E-08-11, the Commission directed that $500,000 in proceeds from the sales of Idaho Power Company emissions credits go toward energy efficiency education in Idaho Power’s southern Idaho territory. Idaho Power is cooperating with the Office of Energy Resources to develop the program.18 As part of the 2008 Idaho Power rate case (IPC-E-08-10), the commission approved a request by the Community Action Partnership Association of Idaho (CAPAI) to require Idaho Power to provide $25,000 annually to each of the state’s five community-action regions for energy-efficiency education projects. In the most recent PacifiCorp rate case settlement (PAC-E-08-07), the parties to the settlement agreed that $50,000 of demand- side management funds should be made available to community action agencies in eastern Idaho to provide conservation education to participants in the company’s low- income weatherization program. 18 Case No. IPC-E-08-11, Order No. 30760. For press release, see Appendix T. 16 In our own office, the Commission continually looks for ways to encourage energy efficiency and reduce our carbon footprint. We have formalized a telecommuting policy for our employees and are exploring ways to conduct our hearings through teleconferencing or other methods to reduce staff and commission travel. The commission is also represented on the board of the Idaho Strategic Energy Alliance and its task forces. The creation of the Idaho Strategic Energy Alliance (ISEA) serves as a key component in fulfilling this action item. Governor Otter created the Idaho Strategic Energy Alliance in 2008 as a mechanism to involve energy experts and stakeholders from across Idaho in developing our state's energy future.19 The ISEA (http://www.energy.idaho.gov/idahostrategicenergyalliance) is comprised of about a dozen volunteer tasks forces focusing on a range of energy options and energy efficiency opportunities. More than 140 experts representing energy and economic development from the private sector, academi, and government serve on these task forces. Their goal is to provide objective analyses and recommendations and build partnerships that will allow the government and private sector to enhance economic growth through sound energy development and use. The ISEA has a wide variety of Task Forces within its structure that have been developing base-line reports related to multiple aspects of energy resource development. One of the first reports issued through ISEA examined energy efficiency. Through ISEA, the Energy Efficiency Task Force has prepared and released a significant report that identifies various options to promote more energy efficiency deployment.20 In addition to the Alliance, the Executive branch has promoted the deployment of energy efficiency measures within state government in a variety of ways including retrofits of existing buildings, the installation of energy-saving devices on vending machines located in state buildings, and formal support of energy efficiency projects for public buildings. Most notably, Governor Otter has taken a lead role in promoting the Idaho K-12 Energy Efficiency Project. This project commits more than $17 million dollars of ARRA funding to perform energy efficiency upgrades in Idaho’s public school buildings. In a promotional brochure prepared for this project, Governor Otter authored a message that demonstrates leadership and support for the deployment of energy efficiency in government buildings. Specifically, the Governor says, “A reduction in energy use in existing buildings will reduce market volatility in the purchase of energy, providing (school) districts greater security in planning both short and long-term energy budgets.”21 Additionally, the Governor wrote letters to each of Idaho’s 115 school districts encouraging them to participate in this program. All 115 school districts are participating in this venture. 19 Executive Order Creating the ISEA. See Appendix U. 20 The Energy Efficiency Task Force report can be found at www.Energy.Idaho.Gov. 21 Text of Brochure promoting Idaho K-12 Energy Efficiency Project. See Appendix V. 17 The Legislative branch has also taken measures to advance energy efficiency deployment and renewable energy development. Since the establishment of the 2007 Idaho Energy Plan, several pieces of legislation have been approved that demonstrate leadership in the areas of energy efficiency and renewable energy development.22 An example of legislation that addresses energy efficiency in public buildings is Senate Bill 113, passed by the 2009 Legislature and signed by the governor. It is codified as 33- 356 I.C. and focuses on fundamental commissioning and integrated design of school buildings.23 The goal of this measure is to ensure that the building is designed, constructed, certified and maintained in such a manner as to be as energy-efficient as existing technology (and budgets) allows. Subsequent to the passage of this bill, the Division of Building Safety has proposed rules (DOCKET NO. 07-0301-0903)24 providing guidance to school districts with a desire to establish eligibility for the relief defined in 33-356 I.C. In order to be eligible, schools constructing new building facilities must utilize fundamental commissioning and integrated design in the construction process. The DBS rules define a mechanism whereby a district’s eligibility may be verified, documented and made known to the Idaho Department of Education on an annual basis. It is important to note that the OER also works closely with public schools and local units of government in efforts to provide assistance toward the deployment of energy efficiency measures. The OER provides assistance to schools and local governments that choose to enter into an Energy Performance Contract. Energy Performance Contracting enables public schools and governmental entities to use savings from improved energy efficiencies to pay for new equipment and improvements to existing buildings. The program does this in a budget-neutral financing method using the proceeds from the savings. A recent example of the OER’s efforts assisted in the construction of the Van Buren Elementary School in Caldwell, one of the most energy efficient public school buildings in the state.25 To further illustrate how the state is working to identify and address all barriers and disincentives to increased acquisition of energy conservation and efficiency, the OER has initiated a series of workshops to develop an appropriate incentive mechanism for Idaho Power Company to optimize cost-effective demand-side management activities. These workshops demonstrate a serious commitment to collaborate with utilities, regulators, legislators and other affected stakeholders for the purpose of advancing energy efficiency in all sectors of Idaho’s economy. The use of funds associated with the American Recovery and Reinvestment Act for Idaho-based energy efficiency projects further demonstrates progress in this area.26 This 22 List of energy related legislation passed since creation of 2007 Idaho Energy Plan. See Appendix W 23 Text of 33-356 I.C. See Appendix X. 24 Text of Proposed Rules. See Appendix Y. 25 Text of Martin Van Buren Elementary School Fact Sheet from Caldwell School District. See Appendix Z. 26 View details of OER stimulus plan and its emphasis on energy efficiency at www.energy.Idaho.gov . 18 funding is primarily targeted to energy efficiency and renewable energy projects for schools and local units of government. Funding has also been earmarked to incent the purchase of energy star appliances throughout the state of Idaho. E-12. Idaho should offer an income tax incentive for investment in customer-owned renewable generation and combined heat and power (CHP) facilities by Idaho businesses and households. While the present economic environment is ill-suited for the passage of additional new incentives, efforts to promote existing incentives targeted at renewable energy development are being pursued. The Idaho Department of Commerce has developed marketing materials aimed at promoting renewable development in the state.27 Additionally, the Idaho Department of Commerce has created a listing of existing incentives that could potentially benefit renewable energy development.28 Despite the present economic downtown, the OER continues to make progress on efforts to encourage the development of combined heat and power facilities by Idaho businesses. A Memorandum of Understanding (MOU) has been entered into by OER, Idaho Power Company and the Amalgamated Sugar Company to explore the feasibility of a combined heat and power project at the Amalgamated Sugar Company’s Nampa site. The purpose of the MOU is to set forth understandings with respect to a contemplated opportunity, that if found feasible within the context of Idaho Power’s Integrated Resource Planning process, a CHP facility may be built at the Nampa site. The OER recognizes the potential benefits of this proposed project to improve Idaho’s energy resources portfolio, increase source energy utilization efficiency and reduce environmental impacts. Moreover, the proposed CHP project to be examined conforms with the goals of OER’s Combined Heat and Power program, which is to foster development of such projects.29 The OER also provides incentives in the form of low-interest loans to assist business and residential customers who are interested in pursuing projects relevant to this action item. Details of this program can be found at www.energy.idaho.gov. The residential aspect of this program has shown increased interest in the installation of ground source heat pumps. Review of loan applications reveal that heat pumps are often a good choice for rural homes without access to natural gas and currently using propane and fuel oil. Electric forced-air furnaces are also good candidates for conversion. Additionally, water source heat pumps generally cost less than ground source heat pumps. Both heat pumps are much more expensive than other heat systems. Projects costing $10,000 to $20,000 27 See promotional brochure at http://www.commerce.idaho.gov/assets/content/docs/Final%20Copy%2009- 2009.pdf. 28 View listing of existing incentives for renewable energy development at www.commerce.idaho.gov/business/incentives.aspx. 29 Text of MOU dated Oct. 9, 2009, see Appendix AA. 19 are not unusual. However, both types of heat pumps are the most efficient heating system available with Coefficients of Performance (COP) of up to 4.4. Successful loan applications work best in medium to large homes where potential savings are greater. E-13. Idaho should provide a credit backstop to enable the Idaho Energy Resources Authority to provide low-cost financing for customer-owned renewable generation and combined heat and power facilities. Legislative action is perhaps the most reasonable solution to providing a credit backstop that would enable the Idaho Energy Resources Authority with the appropriate support required to meet this action item. Unfortunately, the present economic situation will likely impede any immediate progress in this area. The OER explored opportunities to utilize ARRA funding for this purpose. However, due to some federal restrictions and the limited amount of available funding, credit backstop options were abandoned. The OER will continue to consider other opportunities if they materialize. E-14. Idaho utilities should offer voluntary “green pricing” programs that allow customers to support an environmentally preferred and renewable energy resource. These programs, cited below, were in place before the Energy Plan was issued and remain in effect. In February 2001, the Commission approved Idaho Power’s Green Energy Purchase Program (Case No. IPC-E-00-18). The program gives customers an option to participate in the purchase of renewable energy. Customers designate their level of participation by choosing a fixed dollar amount per month. The programs funds are used to buy green energy or cover the green energy price premium. In early 2002, the Commission approved Avista Utilities’ Optional Renewable Power Rate (AVU-E-01-16, Order No. 28948). Under the “Buck-A-Block” program, customers can buy wind in blocks of 300 kWh for $1 each. According to the Company’s 2008 update, 1,007 Idaho residential customers participate as do 41 commercial and industrial customers. In August 2003, the Commission approved PacifiCorp’s “Blue Sky” program for its Rocky Mountain Power territory in eastern Idaho. (PAC-E-03-9, Order No. 29329). Customers can buy 100 kWh of renewable energy for $1.95. E-15. The Idaho PUC should establish appropriate shareholder incentives for investments in Idaho renewable resources by investor-owned utilities. Shareholder incentives may include, but are not limited to: 20 i. Increased return on investments in renewable resources located in Idaho; ii. A share of net societal benefits attributable to a renewable energy purchase. Neither the Commission nor utilities have implemented or proposed specific shareholder incentives. However, it should be noted that there is little to no risk for shareholders when the company pursues renewable generation. The Fixed Cost Adjustment mechanism assures Idaho Power it will recover its fixed costs even when energy sales decline. Further, Idaho Power and Avista Utilities are allowed to allocate all their PURPA purchase power contracts through a power cost adjustment process, which guarantees 100 percent recovery after a prudency review. A similar cost recovery mechanism has recently been approved for PacifiCorp (Rocky Mountain Power). The Commission does consider the utility’s aggressiveness in pursing cost-effective demand-side resources when it sets a company’s return on equity in rate cases. In an effort to provide additional tools to secure capital financing for utility-scaled projects, the OER initiated legislation that addressed ratemaking treatment considerations prior to construction of the actual project.30 This effort became law and is viewed as a positive step toward reducing risk considerations associated with large-scale projects as utilities seek capital financing. The essence of this law allows the Commission to look at the ratemaking treatment at the beginning of a project instead of waiting until the project is completed and billions of dollars have already been invested. The benefit is that utilities and the investment community gain the confidence they need to access financing for critical infrastructure including large-scale renewable energy generation resources. Ultimately, this law is seen as having the potential to minimize upward pressure on the cost of capital which ultimately benefits customers. E-16. The Idaho PUC should administer its responsibilities under PURPA in a way that encourages the development of customer–owned renewable generation and combined heat and power facilities. The Commission has historically established PURPA-related policies that encourage the development of customer-owned renewable resource generation, but we must also remain consistent with the Commission’s other legal obligations, including maintaining rates that are fair and reasonable. The Commission has established several provisions including standard 20-year contracts with fixed-price published rates to simplify the process for customer-owned and small-power generators. The Commission offers generators and utilities the option of entering into “levelized” or “non-levelized” contracts. Under a levelized contract, the developer is paid the same rate over the entire span of the contract. That rate, in the early years, is higher than the current value of electricity, which allows the developer to recoup his initial investment more quickly and makes it easier for the 30 Text of SB 1123, see Appendix BB. 21 developer to get financing. These contract features encourage the development of renewable generation. A number of recent and current cases involve revisions to PURPA related tariffs. (See response to E-3 for PURPA updates). Commission decisions in these cases recognize the need to encourage renewable generation from small-power providers or at the customer level. An important point to remember (as stated in E-3) is that when it is stated that the “PUC should administer its responsibilities under PURPA in a way that encourages renewable development” the PUC is restricted under the provisions of PURPA from adopting QF (Qualifying Facility) project avoided cost that exceeds a utility’s actual avoided cost. In support of efforts to encourage the development of customer-owned renewable generation and combined heat and power facilities, the OER utilizes its low-interest loan program to provide funding for small-scale customer-owned renewable projects. The OER has also earmarked funds from the ARRA to assist with the development of renewable energy projects initiated by local units of government and public schools (solar panel schools project). These projects can be viewed in greater detail at www.energy.idaho.gov. E-17 The Idaho PUC should establish uniform policies for interconnection and net metering that promote investment in customer-owned renewable energy facilities. Idaho’s municipal and cooperative utilities should work together to develop a uniform policy for municipal utilities and rural electric cooperatives. The Commission has had net metering tariffs in place for many years and those have been updated to reflect evolving technologies. The PUC has recently reviewed interconnection and net metering policies to comply with new PURPA standards enacted by the Energy Policy Act of 2005. Order No. 30229 in Case No. GNR-E-06-02 details the PUC’s decision to deem the three IOUs’ current interconnection and net metering tariffs in compliance with PURPA and also describes each IOU’s approach to customer-owned generation. Additionally, Idaho Power extensively revised its interconnection tariff (Schedule 72) in 2008 in response to an Exergy complaint. (Order No. 30574 in Case No. IPC-E-08-05.) All three IOUs require a net metering customer to execute an Interconnection Agreement. Although the three IOU’s interconnection agreements have slight differences, they contain similar requirements for customers paying interconnection costs, safety and operational issues, metering requirements, and financial and liability obligations. Generally, the customer receives credit for energy generated at the customer’s tariffed rate, although Idaho Power has argued unsuccessfully that the credit should be for energy only. In 2006, Idaho Power filed a petition with the Commission to pay net metering 22 customers a rate that is 85 percent of wholesale rather than the full retail rate. The company later withdrew that application.31 Net metering credits for Avista customers carry forward from month to month during a year, but are not continued into a new year. The fact that the PUC began approving net metering tariffs in the 1990s signifies encouragement of customer-owned generation. The recent actions cited above re-affirm the continuation of that support. However, the customer must make the investment decision to buy and install the generating equipment – whether wind, solar, fuel cell, or something else. While the PUC has authority over how customer-owned generation is interconnected and how much compensation is received for energy produced, the customer’s investment decision is driven more by the availability of financial and tax incentives from manufacturers and federal and state government, respectively as well as the expected payback period, and ease and feasibility of installing the generation. Any customer experiencing difficulty with interconnection or net metering with an Idaho IOU may seek the PUC’s help. It is important to note that net metering rates already provide a subsidy to participants that is paid by other customers. This has not been an issue, however, because the number of net metering customers is small. The Commission has established caps on the collective capacity of net metering allowed for each utility, but the utilities are not close to reaching those caps. The OER intends to utilize a program funded by the American Reinvestment and Recovery Act to explore aspects of net metering related to projects installed at public schools. This project seeks to fund several solar projects at public school buildings in service territories that have existing net metering tariffs. As the project develops, one of the areas of interest is how renewable energy projects at public schools might utilize net metering. Through this effort a broader understanding of existing net metering tariffs will be gained that could lead to future recommendations or policy discussions. Details of the solar schools program can be viewed at www.idaho.energy.gov . E-18. Idaho utilities shall report annually to their retail customers their sources of electricity (their “fuel mix.”) Each of the three investor-owned utilities reports its fuel mix to customers at least once annually. The PacifiCorp report applies to its six-state territory, making Idaho-specific information more difficult to discern. Each utility has voluntarily provided the customer resource report in compliance with the 2007 Idaho Energy Plan without an order to do so from the Commission. Copies of the most recent reports to Avista and Idaho Power customers are attached under Appendix AVU and Appendix IPC. 31 Case No. IPC-E-06-17, Order No. 30227. For press release, see Appendix CC. 23 E-19 The Idaho PUC and Departments of Water Resources and Environmental Quality should investigate and report on the status of “clean coal” technologies and barriers that prevent Idaho utilities from investing in environmentally-preferred uses of coal. Each of the electric utilities regularly study and evaluate clean coal technologies and options in their Integrated Resource Plans, which are prepared and filed every two years. The U.S. Department of Energy is funding some demonstration projects for carbon sequestration using ARRA (stimulus bill) funds, but most of those are directed to coal producing states like Illinois and West Virginia. The development of actual new technology for the cleaner burning of coal is decades away. Concerns over carbon treatment and associated costs have rendered the development of traditional coal-fired generation facilities largely impractical. The result is that only “clean coal” options can be considered. The following excerpts from a report published by the Western Governors Association, “Deploying Near-Zero Technologies for Coal: A Path Forward” helps illustrate the status of “clean coal” technology in Idaho and the West: “A range of readily deployable technologies exists to achieve reductions in carbon dioxide emissions from coal-fired power plants. Some technologies, such as ultra- supercritical boilers, offer near-term (3-5 year) results and potential emissions reductions of up to 30 percent at most. Other technologies, such as carbon capture and storage, will enable near zero emissions, but face economic obstacles to wide-scale deployment over the next 5-10 years without targeted subsidies and incentives. There are also technologies, such as IGCC plants, which function at higher efficiencies comparable to new ultra-supercritical pulverized coal, and although they can be designed to be “capture ready”, would not actually capture emissions without the addition of specific carbon capture equipment. These plants do reduce emissions per unit of energy produced compared with conventional coal plants and provide project and operational experience in one component of an integrated carbon capture and sequestration system. “Given the need to deal with increasing population, accommodating electricity demand, and meeting the governors goal to have clean generation, discussion in centered around what role coal can play and in what timeframe. This summary acknowledges that CCS remains an additional economic burden on the cost of electricity and that structural infrastructure issues such as pipelines, coordination of new and existing plants with reserves, and a policy framework remain uncertain. But the challenge for industry is to take the small steps that will reduce these burdens. “It has become increasingly difficult to get new coal generating facilities permitted, regardless of the technology employed. To a great degree this is driven by a concern for adding new carbon dioxide emissions to the atmosphere. It is the case that to have near- zero emissions coal, it is necessary to capture and sequester the carbon emissions. 24 Unfortunately, at the current rate of research and regulatory development, it will be some number of years before regulated sequestration will be a reality. “This leads to the question of whether it would be acceptable to “ramp-up” to high levels of carbon capture and sequestration, or whether there should be a moratorium on construction of new coal facilities if they do not deploy high levels of capture and storage. On this point there was a clear division, with many of the environmental community proposing that no coal plant should be built without immediate capture and sequestration, and many utility and coal industry representatives arguing that while it is possible to reach high levels in time, it is more reasonable to build to this level in a series of steps. Industry argues that without the ability to make stepwise progression to high levels of sequestration, the construction of new coal burning facilities is severely limited.” The complete report can be reviewed at http://www.westgov.org/wga_reports.htm. E-20. Idaho and Idaho utilities should work with the Idaho National Laboratory to investigate the feasibility of bringing a “next generation” nuclear facility to Idaho. The Commission is open to working with regulated utilities and the Idaho National Laboratory (INL) on nuclear options. However, the utilities, not the PUC, make their own resource acquisition decisions. Some utilities, including Idaho Power and PacifiCorp, are beginning to include nuclear options in their Integrated Resource Planning. The creation of OER in 2007 coincided with the announcement of a proposed project to develop a large-scale nuclear power generation facility in Idaho. Through discussions between INL and OER, it was agreed that the lab would provide OER with some direct technical expertise. This relationship assisted the state in gaining a greater understanding of the licensing and permitting process associated with nuclear power generation. Presentations were also made to members of the Legislature. The initial relationship with the INL led to a more formal Memorandum of Understanding that will also be used to continue the exploration of next generation nuclear in Idaho.32 Additionally, the OER has established Base Load Task Force within the structure of the Idaho Strategic Energy Alliance to examine all forms of large scale generation including next generation nuclear. It is also important to note that the INL has received approximately $160 million in federal funds to continue the development of next generation nuclear technology. While no project is ready to break ground in Idaho, developers continue to express active interest in the state for nuclear energy ventures. E-21. Idaho should encourage the use of “dry cooling” or “gray water” cooling for new thermal facilities. 32 MOU between INL and the State of Idaho, see Appendix DD. 25 No such opportunities have materialized to date. E-22. Idaho should participate in regional efforts aimed at increasing the capability of the western transmission grid and bringing to Idaho the benefits of cost-effective remote resources. For many years, the Commission has been involved in regional transmission planning and coordinating efforts. The Idaho PUC and commissions and consumer counsels from four other Intermountain and Northwest states, along with Idaho Power and PacifiCorp, actively participate in the Northern Tier Transmission Group (NTTG) planning process. NTTG is a group of transmission providers and customers that are actively involved in the sale and purchase of transmission capacity of the power grid that delivers electricity to customers in the Northwest and Mountain States. Transmission owners serving this territory work in conjunction with state governments, customers, and other stakeholders to improve the operations of and chart the future for the grid that links all of these service territories. NTTG members are committed to working with stakeholders and state officials to increase efficient use of the grid and to develop the infrastructure needed to deliver new renewable and thermal power resources to customers. Avista Utilities belongs to ColumbiaGrid, which has many of the same objectives as NTTG, but is focused primarily in the Pacific Northwest. The Idaho Commission is a member (and Commissioner Marsha Smith is on the board of directors) of the Western Electricity Coordinating Council, the regional entity responsible for coordinating and promoting bulk electric system reliability in the Western Interconnection. In addition, FERC assures open and non-discriminatory transmission access for all power providers. The Western Governors' Association and U.S. Department of Energy launched the Western Renewable Energy Zones initiative in May 2008. The WREZ seeks to identify those areas in the West with vast renewable resources to expedite the development and delivery of renewable energy to where it is needed. Renewable energy resources are being analyzed within 11 states, two Canadian provinces, and areas in Mexico that are part of the Western Interconnection. The Idaho Office of Energy Resources has been an active participant in WREZ activities. E-23. Idaho should provide a credit backstop to enhance the Idaho Energy Resources Authority’s ability to provide low-cost financing for transmission projects that benefit Idaho’s citizens. Efforts to fund a credit backstop to enhance the Idaho Energy Resources Authority’s ability to provide low-cost financing for transmission projects is severely limited by the current economic climate. Legislative appropriations at this time are unlikely to be positively received and will need to be explored at a later date. 26 Despite the inability to provide funding for this action item, several substantial transmission projects have been proposed that would potentially benefit Idaho customers. Among the projects is Gateway West, a joint venture proposed by Idaho Power and Rocky Mountain Power. Other projects include the Mountain State Transmission Intertie, Boardman to Hemingway, the SWIP corridor, and several DC line proposals. E-24. Idaho should support efforts to amend the Internal Revenue Code to provide that revenue bonds issued by state transmission entities be provided with tax exempt status to provide additional ability to construct needed transmission facilities. While legislative action is the only recourse to achieve this action item, the newly established Transmission Task Force within the structure of the Idaho Strategic Energy Alliance could serve as a tool to examine the value proposition associated with this concept. NATURAL GAS NG-1. The Idaho PUC should ensure that its line extension policies, electric and natural gas tariffs, and other policies encourage the direct use of natural gas in applications for which natural gas in the most efficient energy source. The Commission maintains a position of neutrality regarding customer choice for fuel source. The issue of which resource is the most efficient is complex. It is important to remember that electricity is available almost everywhere as an essential service, but natural gas is not; so electrical space heating is the only choice in many rural areas of Idaho and the nation. While the PUC is not in the business of favoring one type of utility service over another, the PUC has facilitated gas utilities’ expanding their service to rural areas through tariff rates to recover the cost of expansion. The gas utilities make their own business decisions about expansion because it involves the costs of pipelines, hookups, and more gas supply. The customers involved also incur costs to replace electric space heating with gas furnaces. However, customers benefit from cheaper energy bills. The argument can be made that the benefit of more efficient heating using natural gas applies to customers of both the electric and gas utilities. 27 NG-2. Idaho should provide incentives for investments in non-traditional natural gas supply resources, including landfill methane, anaerobic digesters and biomass methane. The advancement of non-traditional natural gas supply resources has become an important goal of the Office of Energy Resources. While incentives for investments are hindered by the recession, efforts under the direction of the OER are assisting in the desire to promote the use of non-traditional natural gas. Biogas was the focus of one of the first Task Force groups created within the organizational structure of the Idaho Strategic Energy Alliance. The Biogas Task Force has issued its initial report where it examines in detail the issues and concerns associated with the development of non-traditional natural gas supplies such as landfill methane, anaerobic digesters, and biomass methane. This report can be viewed at www.idaho.energy.gov. The body of work associated with this task force prompted the OER to include biogas projects in its American Recovery and Reinvestment funding plan submitted to the Department of Energy (DOE). Under the plan approved by DOE, Idaho’s local units of government can seek funding for projects that could advance the development and utilization of biogas. Project developers utilizing methane from the dairy industry and landfills have expressed interest in applying for this funding. Another incentive for the development of anaerobic digesters comes in the form of the published avoided cost rate structure established by the Idaho Public Utilities Commission. The avoided cost rate helps foster the development of small-scale renewable energy projects under the federal mandates established by PURPA. The IPUC has approved three contracts that utilize methane from anaerobic digesters to produce electricity, including a landfill methane contract with Ada County. NG-3 Idaho should support the siting of liquefied natural gas terminals and other infrastructure in the United States to provide delivery capability to Idaho. Efforts to promote LNG terminal development in the Northwest have been somewhat hampered by the recession. However, developers continue to pursue options and to the extent they are successful, it will potentially free up available space on the pipelines that serve Idaho customers. Idaho has been supportive of these measures. Regarding other infrastructure associated with LNG operations, a 6 million therm LNG facility near Nampa is owned and operated by Intermountain Gas. This facility can presently supply peak-load needs for the company’s customers. The utility also has a smaller LNG facility near Rexburg that also provides for peak-load needs. The costs of these facilities are recovered in the base rates for Intermountain Gas. Satellite LNG facilities such as these help the utility avoid more expensive system upgrades while still helping to provide safe and reliable service. The utility also utilizes LNG tankers to 28 provide continuous service when necessary construction on distribution lines is required. Most recently, the company’s Sun Valley distribution area benefited from this practice. The state, through the work of the Idaho Public Utilities Commission, continues to support LNG technology by allowing the recovery of costs associated with its deployment. ALTERNATIVE FUELS T-1 Idaho should ensure that its state vehicle procurement rules promote purchases of high-efficiency, flex-fuel, natural gas and alternative-fuel vehicles where cost effective. On December 20, 2007 Governor Otter issued Executive Order No. 2007-21.33 This Order required state agencies to incorporate more fuel-efficient practices related to state fleet vehicles and also encouraged the purchase of alternative-fuel vehicles. The main provisions include the following: • All executive branch departments, agencies and offices of the State of Idaho shall decrease the amount of gasoline and diesel used in State vehicles by: a. increasing the fuel economy of its vehicles; b. increasing the operating efficiency; and c. reducing the number of miles driven by employees. • All executive branch departments, agencies and offices of the State of Idaho shall limit the purchase or lease of four-wheel drive sport utility vehicles and similar specialty vehicles to situations where there is a clear business need or the mission of the entity requires such vehicles. • All executive branch departments, agencies and offices of the State of Idaho shall give priority to the purchase and use of hybrid gas/electric and other fuel efficient/low emission and new petroleum efficient technology vehicles. • The Division of Purchasing will make available to all departments and agencies a list of available vehicle purchasing contracts, which will identify vehicles that meet the requirements of this executive order. Any purchase outside this list will need written justification signed by the director or administrator of the entity. 33 Text of Executive Order Regarding Fleet Vehicles. See Appendix EE. 29 In compliance with the Governor’s Executive Order, the Idaho State Division of Purchasing prepares a quarterly report that updates fleet vehicle purchases via the state contract.34 T-2 Idaho should provide incentives for the purchase of efficient, flex-fuel and alternative fuel vehicles. Incentives necessary to advance this action item require legislative action and based on general fund impairment tied to the current economic recession, state funded initiatives are unlikely in the near term. T-3 Idaho should provide incentives for investments in retail and wholesale alternative fuel supply infrastructure. On March 26, 2007 Governor Otter signed into law the Rural Idaho Economic Development Biofuel Infrastructure, Consumer Choice and Fuel Independence Act of 2007 (HB 150). The purpose of this legislation was to provide grants for up to 50 percent of the cost of constructing qualified fueling infrastructure projects dedicated to providing biofuels to Idaho customers. The legislation directed the Idaho energy office to administer the funds. The Legislature appropriated $690,000 for fiscal year 2008 and anticipated an additional $1,610,000 for FY 2009 through 2012 for a total of $2.3 million over the five-year period. With the downturn in the economy, however, the Legislature was not able to provide further funding. The program ended in August 2009 after awarding more than $597,000 for infrastructure projects.35 In conjunction with the BIG program OER also built a partnership with Idaho fuel suppliers to provide a smooth and problem-free transition to biofuels. Fuel suppliers were given informational pamphlets explaining the facts about biofuels and technical assistance to help minimize potential problems with the new fuels. Additionally, through its affiliation with the Treasure Valley Clean Cities Coalition, the OER supports efforts to utilize compressed natural gas (CNG) as an alternative transportation fuel. Efforts lead by the Treasure Valley Clean Cities Coalition, in collaboration with Allied Waste and the City of Boise lead to a grant that allows for the conversion of garbage trucks to CNG. Additionally, plans are underway to establish the first public CNG fueling facility at the Allied Waste site in Boise. 34 Sample Quarterly Fleet Vehicle Report. See Appendix FF. 35 Grant Award Summary for BIG Program. See Appendix GG. 30 T-4 Idaho should establish an incentive for the production of ethanol and biodiesel that reflects the cost of alternative fuel production relative to the price of gasoline and diesel fuel. The production of ethanol and biodiesel is tied to the volatility of traditional transportation fuel prices. For example, when the price of traditional transportation fuel drops, production of non-traditional transportation fuels is negatively impacted. The dramatic drop in petroleum-based transportation fuels over the past year has resulted in the closure of ethanol plants in Idaho and throughout the nation. This scenario coupled with the current economic recession, makes it difficult to effectively promote the establishment of incentives that would provide the level of subsidies necessary to support this action item. T-5 Idaho should promote research and development and business-university partnerships to speed the commercialization of alternative fuel technologies, with particular emphasis on cellulosic ethanol. The Biofuels Task Force created within the structure of the Idaho Strategic Energy Alliance is comprised of experts in the in the field of alternative fuel technologies. This task force is exploring a variety of opportunities associated with the research and development of alternative fuels. Members of this task force include representatives from private business and universities. Accordingly, attention to fostering improved partnerships between business and universities is a focal point. T-6 Idaho should prohibit “exclusivity” requirements in future contracts between fuel suppliers and retail service stations that prevent the stations from offering alternative fuels. This action item requires legislative action and is an area that the Interim Committee might choose to revisit as it prepares for its five-year review of the 2007 Idaho Energy Plan. TRANSPORTATION FUEL CONSERVATION T-7 Idaho should work with other states to promote an increase in Federal CAFE standards. T-8 Idaho should permit local authorization of transit option taxes to support the use and expansion of public transportation. T-9 Idaho should provide incentives for the installation and operation of equipment that reduces truck and tour bus idling. T-10 Idaho should encourage regional land use planning and policies that minimize vehicle-miles traveled. 31 The majority of items under the heading of Transportation Fuel Conservation generally require legislative action. It would appear that the Interim Committee might target these areas for further review to determine if the initial interest for these action items is still a policy direction it wants to pursue. The five-year review outlined in the 2007 Idaho Energy Plan appears to represent the best opportunity to explore these issues in greater detail. As a general interpretation of this section, it is clear that the Legislature encourages Idaho to work with other states to identify potential enhancements for transportation fuel efficiency. Appropriately, Idaho’s executive branch is an active member of the Western Governors Association (WGA), a group dedicated to addressing regional issues of interest. Among the areas of concern for WGA and its membership is alternative fuels and transportation fuel conservation. The WGA Advisory Committee on Transportation Fuels for the Future has proposed strategies to accelerate the development of alternative transportation fuels that hold the promise of reducing the risks to our energy security, environment and economy posed by our near total dependence on petroleum for conventional transportation fuel. The Advisory Committee also proposes strategies for improving vehicle fuel efficiency. The report on Transportation Fuels for the Future offers some options that might be of interest to legislative leaders as they consider future directions related to transportation fuel conservation.36 ENERGY FACILITY SITING S-1. The Idaho PUC should be vested with the authority to site transmission facilities within area that have been designated by the U.S. Department of Energy as National Interest Transmission Corridors. During its 2007session, the Idaho Legislature granted the PUC authority to issue a route certificate for transmission lines located in National Interest Energy Corridors as designated by the U.S. Secretary of Energy. (Idaho Code § 61-1701 through 61-1709) The Commission may pre-empt local government land use or permitting decisions if the local government has: 1) denied a transmission application; 2) failed to timely act on a transmission application; or 3) has imposed unreasonable or uneconomical conditions on a transmission permit. Idaho Code § 61-1703 (3). In instances other than federally designated transmission corridors, the PUC generally does not exercise permitting or siting authority related to transmission projects. Occasionally as a prelude to seeking cost recovery for a transmission project, a public utility may request that the PUC issue a certificate of public convenience and necessity (CPCN) under Idaho Code § 61-526. The PUC may issue a CPCN if it finds: 1) the present or future public convenience requires or will require the construction of a transmission line; and 2) the utility has the financial ability and good faith to serve its 36 View Transportation Fuels for the Future Report at http://www.westgov.org/wga_reports.htm. 32 customers. The PUC may also attach reasonable terms and conditions to the CPCN. Idaho Code § 61-528. An application for a CPCN or other pleading filed with the Commission is governed by the PUC’s Rules of Procedure, IDAPA 31.01.01. The PUC may exercise two forms of “backstop” permitting and siting authority. The first instance is that cited above in federally designated energy corridors. Also, a local land use or permitting decision concerning a public utility may become null and void if such decision is in conflict with a specific order of the PUC, provided that the PUC has given the affected local government an opportunity to appear or consult with the Commission regarding such conflict. Idaho Code § 67-6528. Transmission entities may have eminent domain authority under Idaho Code § 7-701(11). Using the power of eminent domain for a transmission line in excess of 230 kilovolts on property devoted to agriculture require a public meeting with 10 days’ notice. Idaho Code § 7-704(4). S-2. For electric generating facilities 50 MW or larger, an “Energy Facility Site Advisory Team” shall be established consisting of members appointed by the Departments of Environmental Quality, Water Resources, Commerce, Health and Welfare, Fish and Game, and Agriculture to provide technical information as requested by the local jurisdiction. Since the inception of this policy objective, no requests from local governmental entities have emerged that would trigger this action item. The state agencies listed within this action item are ready to engage when asked. As evidence of this commitment, the OER works collaboratively with local units of government on energy-related projects and is committed to continuing and expanding existing relationships. An example of these ongoing relationships includes activities associated with the American Recovery and Reinvestment Act (ARRA). The Idaho Office of Energy Resources (OER), Association of Idaho Cities (AIC) and Idaho Association of Counties (IAC) have partnered to implement the Energy Efficiency and Conservation Block Grant (EECBG) associated with the ARRA of 2009. The ARRA established funding opportunities for Idaho cities and counties through a program administered by OER. The partnership with AIC and IAC is designed to streamline the process and insure an expeditious deployment of grant funds to the applicants. To further illustrate support for this action item, the OER serves as the coordinating agency for the state on all energy-related projects that require federal permits. This responsibility requires coordination and cooperation among various state, federal, and local units of government. 33 Additionally, when project developers emerge, OER routinely serves to facilitate meetings with appropriate state agencies and other units of government in an effort to provide all parties with a greater knowledge of the potential development and associated permitting and application process. S-3 When permitting large electric generating facilities, local jurisdictions should be required to make a reasonable effort to hear testimony about the impact of the facilities from citizens and businesses in neighboring jurisdictions. Recent generation and transmission projects have attracted the attention of local units of government who have conducted public hearings in accordance with this policy recommendation. An example of a specific joint effort to involve citizens and businesses in neighboring jurisdictions involves the Gateway West Transmission line. While this effort deals with transmission, the intent of this action item is clearly being realized as Cassia and Power counties reached out to neighboring counties to include their interests and concerns in a series of task force meetings related to the project. IMPLEMENTATION I-1 The Legislature, in consultation with the Governor, should study whether the Department of Water Resources should become the Department of Water and Energy Resources, with the necessary statutory framework prescribing the duties of the Energy Division within the Department. In accordance with the intent of this provision of the 2007 Idaho Energy Plan, Governor C.L. “Butch” Otter created the Office of Energy Resources (OER) via Executive Order on September 4, 2007.37 The executive order is in effect for four years from the date of initiation and provides the Governor and the Legislature an appropriate length of time to determine any necessary statutory framework related to the OER’s duties. The Governor’s executive order recognized the critical nature of energy resource considerations as they relate to Idaho’s future. Accordingly, the Governor chose to create the OER within the Office of the Governor. The Legislature subsequently approved a dedicated funding source for the OER in 2008 to help insure the long-term stability of the office.38 The OER is actively engaged in furthering the areas of interest identified within the 2007 Idaho Energy Plan. I-2 The Energy Division should engage in public outreach and education and work with Idaho energy stakeholders to promote a reliable, diverse, cost-effective and 37 View Executive Order Creating the Office of Energy Resources at http://gov.idaho.gov/mediacenter/execorders/eo07/eo_2007_15.html. 38 View House Bill 529 at http://www3.state.id.us/oasis/2008/H0529.html. 34 Environmentally-sound energy system for the benefit of Idaho citizens and businesses. The newly created OER has assumed the responsibilities of the Energy Division for purposes of fulfilling the intent of the 2007 Idaho Energy Plan. Toward the goal of engaging in public outreach and education the OER oversees the organization of the Idaho Strategic Energy Alliance (ISEA). As was referenced earlier in this report, the ISEA was created by Governor Otter to bring together Idaho energy stakeholders for the purpose of promoting a reliable, diverse, cost-effective and environmentally-sound energy infrastructure for the benefit of Idahoans. A key piece of this effort involves the need for the ISEA to serve as an “honest broker” for citizens to access information relevant to the development of Idaho’s energy resources. During its first full year of existence, the ISEA has initiated the creation of multiple task force reports related to distinct areas of energy resource development. These task force reports serve to educate and facilitate additional discussion and understanding of the state’s energy needs and potential resource development.39 Members of the ISEA are often invited to participate on behalf of the alliance and its efforts at various public forums throughout the state. To assist in providing a consistent message about the ISEA and the state’s energy considerations, a standardized presentation has been prepared for use by alliance members.40 The OER also plays a key role in fulfilling the intent of this action item through the following activities: • OER staff routinely participates in direct involvement with Idaho-based associations and groups in an effort to provide timely information regarding energy resource concerns. • OER has established a website dedicated to providing open and transparent access to information regarding projects directly under its jurisdiction as well as energy-related issues that impact Idaho. • OER actively participates in regional organizations such as the Western Governors Association that have the potential to impact energy resource development in Idaho. • OER serves as the coordinating agency on behalf of the State of Idaho in issues pertaining to permits and applications for energy projects on federal land. I-3 The Energy Division and PUC should report to the Legislature every two years on the progress of Idaho state agencies, energy providers and energy consumers in implementing the recommendations of this Energy Plan. This report is a direct result of the recommendation to provide an overview of the progress associated with the 2007 Idaho Energy Plan. Through the collaborative efforts of the Idaho Public Utilities Commission and the Office of Energy Resources, this report 39 Task Force Reports can be viewed at www.energy.idaho.gov. 40 View Idaho Strategic Energy Alliance Presentation. See Appendix HH_. 35 represents efforts under way that are designed to achieve the action items identified in the plan. I-4 The Interim Committee recommends that the Legislature revisit this Energy Plan and develop new recommendations on a five-year cycle. Based on the Interim Committee’s recommendation, the Legislature is slated to revisit this Energy Plan and develop new recommendations in 2012. APPENDIX A - Avista IRP IDAHO PUBLIC UTILITIES COMMISSION Case No. A VU-E-07-08 March 25, 2008 Contact: Gene Fadness (208) 334-0339, 890-2712 Website: ww.puc.idaho.gov A vista counts on natural gas, not coaL, to meet future resource needs The Idaho Public Utilities Commission has accepted a long-range plan for A vista Utilities that depends more on natual gas for its future energy resources, rather than coaL. The Integrated Resource Plan (IRP) outlnes how A vista intends to meet the demands of its growing customer base over the next decade. A vista, which seres about 1 15,000 customers in nortern Idaho, says it wil need 350 megawatts from natual gas sources to meet customer demand. It plans on getting most of that - 275 MW - from the Lancaster Generation Facility near Rathdru. A vista also plans on adding 300 megawatts from wind sources, 35 MW from other renewable resources and 87 MW from energy savigs due to conseration measures. Without the additional generation, the company states it would face generation shortfalls of about 83 average-megawatts in 2011 and 272 aMW by 2017. Avista decided to drop plans outlined in an earlier 2005 IRP for coal-fired generation for several reasons including legislation in Washington state where the utility has most of its customers. Washigton enacted a greenhouse gas emissions standard that precludes A vista from acquirig a new pulverzed coal plant or enterng into a long-ter contract with an existing plant. Several utilities have dropped coal sources from their long-range planing due to new emssions standards and higher costs associated with the potential for carbon taxes, making coal less competitive with other generation alternatives. Avista's 2007 plan also includes fewer renewables - from 500 megawatts to 350 MW - than it _. had hoped for in its 2005 plan. A vista said the cost of wind resources has increased by more than 100 percent over the last six years. Legislation in Oregon, Washington and other states that mandates a cerain percentage of generation from renewable sources has increased the demand for wind tubines. That demand reduces their availability and increases their price. "Ironically, Idaho presently has neither carbon emission standards nor renewable portfolio standards, yet the new legislation in other states has effectively limited the new generation choices for serving Idaho loads," commission staff said. Utilities in Idaho that sere several states must meet the requirements in all the states they sere. It is "impractical to develop new generation projects devoted solely to serve Idaho loads," commission staff said. A vista moved away from natural gas-fied sources in 2005 because of the price volatility in natual gas markets that drastically increased prices between 2003 and 2005. But with the elimination of coal-fired generation and the higher cost of renew ables, the utilty retus to natual gas to meet some of its futue demand. Commission staff urged A vista to develop new and inovative methods to counteract natual gas price volatility and to maxize the use of cost-effective load control programs. Furher, staff said utilities should "dutifully consider the potential for integratig nuclear energy into their long-ter resource plang." A vista is planng an additional 87 MW from conseration measures, an 85 percent increase in conseration since Avista's 2003 IRP and a 25 percent increase over the 2005 IRP. Acceptance of Avista's IRP does not mean the commssion endorses all the anticipated projects in the plan. It means only that the utility has complied with a requirement to file an IRP every two years. The commission recognizes that assumptions and projections can change over time. "It is the ongoing plang process that we acknowledge, not the conclusion or results," the commission said. A copy of Avista's plan, along with other documents related to ths case, is available on the commission's Web site at ww.puc.idaho.gov.Click on "File Room" and then on "Electrc Cases" and scroll down to Case Number A VU-E-07-08. APPENDIX B - PacifCorp IRP Idaho Public Utilties Commission Case No. PAC-E-09-06, Acceptance of Filg September 17, 2009 Contact: Gene Fadness (208) 334-0339, 890-2712 Website: ww.puc.idaho.gov PacifCorp relies on renewable energy to meet future needs State regulators have accepted a planng document filed by PacifiCorp that details how the utility intends to meet customer needs over the next decade. The utility serves customers in Washington, Oregon, Utah, Wyoming, Californa and in eastern Idaho, where, operating as Rocky Mountain Power, it has about 70,000 customers. PacifiCorp plans to add more than 1,423 megawatts of renewable energy and does not include any added coal generation in its plan. The Idaho Public Utilities Commission requires that regulated electrc utilities file an Integrated Resource Plan (IRP) ever two years. Acceptance of the plan by the commission does not guarantee that it wil approve ever project proposed durng the 10- year period. "The IRP, as we continue to note, is a utility planng document that incorporates assumptions and projections at a point in time. It is the ongoing planng process that we acknowledge, not the conclusion or results," the commssion said. PacifiCorp said it wil begin to experence a capacity deficit in 2011 if steps are not taken soon to increase generation and reduce demand. The utility anticipates a growth rate of about 2.5 percent per year over the next decade. Further creating the need for more generation is the 2011 expiration of a major power purchase contract with the Bonneville Power Administration. The vast majority of the 1,423 MW in anticipated new renewable generation is expected to come from wind (1,313 MW) with the rest coming from geothermal (35 MW and major upgrades to existing hydroelectrc facilties (75 MW. On the conseration side, the utility plans to save just more than 900 MW from energy effciency programs and another 105 to 325 MW from programs where the company remotely reduces demand from customers such as irgators and industr durng times of peak use. PacifiCorp also plans to add about 831 MW in gas-fied capacity between 2014 and 2016 and gain 170 MW of emissions-free capacity from coal plant tubine upgrades. The company could have been short on capacity as soon as 2010, but took steps to meet increased demand in 2008 by acquing a 520-MW natural gas plant in Chehalis, Washigton, and adding 175 MW of additional wind resources. PacifiCorp anticipates gainig access to more generation with the completion of its proposed Gateway transmission project, a joint project with Idaho Power Co. that wil transport energy from easter Wyomig, though southern Idaho (Gateway West) and through Utah (Gateway South). Commssion staff, which operates independently of the commission, commended the company for a diverse mix of generation resources, while adherng to imposed and pending environmental regulation. Stafffound it noteworthy that coal-fired generation does not appear in the company's portfolio of future generation sources. Staff did express concern that the company anticipates a more than doubling of the wind integration cost assessed wid developers. The company's 2007 IRP used a cost of$5.10 per megawatt-hour to integrate wind, but includes an $11.75 per MW cost in the curent IRP. Staff also said that costs included by the company to meet mandated renewable portfolio standards in other states were not adequately quantified. The IRP was developed though a collaborative and public process with involvement from state utility commissions, advocacy groups and interested citizens. The document, including attachments, is available on the commission's Web site at www.puc.idaho.gov. Click on the electrc icon, then on "Electrc Cases," and scroll down to Case No. PAC-E- 09-06. APPENDIX C - PUR A updates Idaho Public Utities Commission Case No. GNR-E-08-02, Order No. 30738 Case No. GNR-E-09-01, Order No. 30744 March 17, 2009 Contact: Gene Fadness (208) 334-0339, 890-2712 Commssion updates rates to be paid developers of small-power projects Developers of qualifying renewable small-power projects wil be paid considerably more for their generation as a result of new rates published by state regulators that became effective Monday. The Idaho Public Utilities Commission updated both the fuel and non-fuel components of a mechansm used to calculate the rates that Idaho's three major regulated utilities must pay to small-power or cogeneration project developers whose projects qualify under the federal Public Utility Regulatory Policies Act, or PURP A. PUR A, passed by Congress durng the energy crisis of the late 1970s, requires electrc utilities to offer to buy power produced by qualifyng small-power producers or cogenerators. The rate that utilities must pay project developers, called an "avoided-cost rate," is deterined by state commissions. The avoided-cost rate is to be equal to the cost the utility avoids if it would have had to generate the power itself or purchase it from another source. In Idaho, projects canot be larger than 10 megawatts to qualify for the published avoided-cost rate. The commission recently issued two orders; one that updates the non-fuel components of the avoided-cost rate, such as capital costs and operations and maintenance and another that updates the always varing fuel components of the rate. The fuel component is adjusted shortly after the Northwest Power and Conseration Council releases a new natural gas price forecast, which it did in late December. The result of both orders is an avoided-cost rate that is considerably higher than the former rate paid by utilities to small-power producers. For example, the developer of a wind far or geothermal facility with a capacity of less than 10 MW would be paid $88.67 per megawatt-hour (or about 8.87 cents per kWh) for a 20-year levelized (same rate all 20 years) contract with Avista Utilities. That compares to the former avoided-cost rate of$70.12 per MWh. The thee major investor-owned utilities in Idaho - Idaho Power, PacifiCorp and Avista Utilities - paricipated in the case as did Black Canyon LLC, which is developing a wind generation facility in Bonneville County. PacifiCorp, which does business in eastern Idaho as Rocky Mountai Power, fied a motion to delay implementing the new avoided-cost rate and, in the absence of a delay, asked the commssion to decrease the size of projects that can qualify for the published rate from 10 MW to no larger than 1 MW. PacifiCorp contended the Nortwest Power and Conseration Council natual gas price forecast was too high given the recessionary economic environment. The commission said PacifiCorp did not present enough evidence that the rate is not reasonable. Furter, the commission said, any utility can petition the commission at any time if it believes the mechanism used to calculate the rate is uneasonable. The order updating the published rates is available on the Commission Web site at ww.puc.idaho.gov.Click on "File Room," then on "Recent Orders and Notices," and scroll down to Order No. 30744. The order updating the non-fuel component of the avoided-cost rate is Order No. 30738. Petitions for reconsideration must be filed with the commssion by no later than April 2. APPENDIX D - Order approvig decouplig mechanism IDAHO PUBLIC UTILITIES COMMISSION Case Nos. IPC-E-04-15 and IPC-E-06-32 March 14, 2007 Contact: Gene Fadness (208) 334-0339 Website: ww.puc.idaho.gov New rate mechanism designed to encourage energy effciency programs The Idaho Public Utilities Commission has approved a yearly rate adjustment designed to remove financial disincentives for Idaho Power Company to implement energy efficiency programs. The rate adjustment, called a Fixed Cost Adjustment (FCA), is approved only on a pilot basis, subject to modification or removal by the commssion. Curently, when Idaho Power intiates programs designed to encourage customers to reduce their energy use, it negatively impacts energy sales. If customers signficantly reduce their consumption though conseration efforts, the company may not recover its fixed costs of servng customers. The FCA wil be a yearly adjustment to electrc rates that would prevent the company from losing money when it invests in energy effciency programs. Often refered to in the industr as "decoupling," the FCA removes the link between energy effciency and energy sales by allowing the company to recover its fixed costs regardless of the volume of energy sales. Initially, the thee-year pilot program applies only to residential and small-business customers. When the commission sets rates, it determines the anual revenue needed by the company to recover its costs. Durng the rate-settng process, the commission deternes the fixed cost that should be recovered from residential and commercial customers. The FCA mechansm wil allow for a "tre-up" between fixed costs actuly recovered though rates and the fixed cost amount authorized by the commission for recover in the company's most recent rate case. If the fixed cost recovered were less than the authorized fixed-cost rate, customers would get a surcharge that can be no higher than 3 percent. If the company collects more in fixed costs.than authorized by the commssion, customers would get a credit. The surcharge or credit would last one year when the FCA would again be updated. According to Idaho Power's estimates, the impact on rates for average residential customers would typically be $1 or less a month. The fixed-cost adjustment would be made at the same time the company adjusts bils for its anual power cost adjustment (PCA), which allows the company an opportty to recover above-normal costs of supplying power. In exchange for removal of the fiancial disincentive, the FCA requires Idaho Power to signficantly increase the size and availability of energy efficiency programs and to support more energy effcient building and energy codes. The pilot program is the result of a negotiated settlement between Idaho Power, commission staff and the Nortwest Energy Coalition. In its comments, the Nortwest Energy Coalition said "decoupling results in a better alignent of shareholder, management and customer interests to provide for more economically and environmentally efficient resource decisions." The Idaho Citizens Action Network opposed the FCA mechanism as one that would allow Idaho Power to receive additional revenue without any proof of need. ICAN sought a more thorough review of the program and public heargs. In its fidings, the commssion said the program wil require close monitoring, which is why the FCA is a pilot program. Many of the issues raised by ICAN wil be considered in the commission's assessment of the program durg the pilot perod, the commission said. "Promotion of cost-effective energy effciency... is an integral par ofleast-cost electrc serce," the commission said. In addition to their environmental benefits, energy effciency programs benefit all customers because they reduce or elimate the need for the power company to meet load growt by adding new generation plants or buying additional power from the wholesale market. On the same day. the commission approved the FCA mechansm, it also approved a pilot program that should encourage the constrction of energy-efficient homes. Idaho Power curently provides an incentive payment of$750 to builder for each home built to meet energy effciency standards set forth by the ENERGY ST ARan Homes Nortwest program. The program approved ths week provides incentive payments or penalties to Idaho Power for meeting or not meeting specified parcipation goals in the program. Under this pilot, the company will provide marketing to encourage more paricipation in the program. On average, homes constrcted to the ENERGY ST AR(ß stadard in Idaho wil save an estiated 2,078 kilowatt hours anually, or 30 percent greater energy effciency than existing Idaho residential building codes. Under ths pilot program, Idaho Power would receive an incentive payment if the market share of homes constrcted under the ENERGY STAR(ß program exceeds 7 percent of the total number of residential building perits issued in Idaho Power's serice tertory in 2007, 9.8 percent of tota serce area homes in 2008 and 11.7 percent of total servce area homes in 2009. The amount of the incentive would equal the percentage that exceeds the target. For example, if Idaho Power were able to achieve 105 percent of the 7 percent target for 2007, it would receive a payment equal to 5 percent of the total program net benefits. The incentive would be capped at 10 percent of program net benefits. Penalties would be levied for any year Idaho Power fails to reach the market share of4.9 percent program paricipation it achieved in 2006. Impact on customer' rates would be negligible. The Industral Customer of Idaho Power opposed the program, saying customers should not be required to pay Idaho Power to induce it to implement cost-effective conseration activities. The Northwest Energy Coalition endorsed the program because it is strctued in such a way that Idaho Power wil need to show excellent performance in order to received incentive payments. A full text of the commission's orders, along with other documents related to these cases, are available on the commssion's Web site. Click on "File Room" and then on "Electrc Cases" and scroll down to the above case numbers. APPENDIXE Idaho Public Utilties Commission Case No. IPC-E-09-28, Order No. 30948 December 8, 2009 Contact: Gene Fadness (208) 334-0339, 890-2712 Website: www.puc.idaho.gov Idaho Power wants to make FCA permanent Idaho Power Company is asking state regulators to make permanent a program that allows the utility to recover its fixed costs of delivering energy regardless of the impact energy efficiency and conservation programs have on energy sales. The Idaho Public Utilities Commission implemented the Fixed Cost Adjustment (FCA) in 2007 as a three-year pilot program. The adjustment, sometimes referred to as a "decoupling mechanism," allows Idaho Power to recover its fixed costs of delivering energy as established in its most recent general rate case even if there is a reduction in energy sales and revenues because of energy effciency and demand reduction efforts. Without a mechansm like the FCA, Idaho Power claims there is a financial disincentive for it to promote energy efficiency and conservation programs because energy sales may decline. The FCA allows Idaho Power to recover its established fixed costs through a surcharge when it under-collects fixed costs because of reduced electrical use. Conversely, if Idaho Power collects more than its established fixed costs, customers receive a credit instead of a surcharge. Durng the first year of the pilot, the FCA resulted in a credit of about 48 cents per month on an average residential bil. Durng the second year, customers were assessed a surcharge, or an increase of about 56 cents per month on an average residential bilL. The FCA applies only to residential and small-business customers. Idaho Power claims that implementation of the FCA has been a major factor in the utility's substantial increase in its level of investment in energy effciency and conservation, from $11.5 milion in 2006 to $21.2 milion durng 2008. That investment has resulted in significant increases in the number of megawatt-hours saved - a 29 percent increase after the first year and a 54 percent increase after the second year. According to the company's figures, the megawatt-hours saved durng 2006 was 70,766; during 2007, the total saved was 91,145; and during 2008, the total was 140,156. The commission has established a Dec. 16 deadline for parties who want to paricipate in hearings or file testimony. The commission will later establish a schedule for processing this case, including comment deadlines for the utility's customers or other interested paries. APPENDIX F - Idaho Power Energy Effciency Rider increase (Excerpt from May 29,2009 press release) Energy Effciency Rider IPC-E-09-05, Order No. 30814 The money raised from the 2.5 percent Energy Effciency Rider is used to fund up to 20 programs that reduce customer demand on Idaho Power's electrc system. That demand reduction reduces the amount of electrcity Idaho Power has to buy or generate, saving customer money in the long-ru. On June 1, the rider wil increase from 2.5 percent to 4.75 percent of customer bils. The increase in the rider is primar due to a new commercial demand response program and a greater than anticipated paricipation in the Irrgation Peak Rewards Program, which wil be capable of reducing Idaho Power's peak loads in the sumer by 200 megawatts. None of the funding from the rider can increase earnings for Idaho Power, but can be used only to fund energy effciency and conservation programs. "Rate increases are never popular and are especially unwelcome in diffcult economic times," the commission said. "However, the information provided shows that energy effciency programs have been effective in creating more effcient use of electrcity by customers, and in reducing the peak demand on Idaho Power's system. These results mean that higher rates to support constrction of new generating facilties have been delayed or avoided altogether." The rider was created in 2002, after the Western energy crisis of 2000-0 1. At that time, the commssion directed Idaho Power to develop comprehensive demand-side management (DSM) and energy effciency programs to help customers reduce bils and lessen Idaho Power's dependency on the volatile wholesale market for electrc supply. Energy efficiency programs in 2008 resulted in 107,484 megawatt-hours of energy savings, a 72 percent increase over the 2007 total of 62,544 MW. DSM programs that reduce demand on Idaho Power's system provided 58 megawatts of demand reduction in 2008 compared to 48 MW in 2007. (One megawatt is one milion watts, enough electrcity to power about 650 average homes and light 10,000 100-watt light bulbs.) "By encouraging energy effciency programs though relatively modest increases in the rider, the commssion is delaying, or avoiding altogether, larger rate increases necessitated by Idaho Power's investment in generation resources," the commission said. The Nortwest Energy Coalition and the Idaho Irgation Pumper Association filed comments in support of the rider, although the coalition said the amount of the rider is "insuffcient to captue all the cost-effective energy savings potential in Idaho Power's serce tertory and to operate robust demand-response programs to reduce peak generation resource needs." The coalition noted that ''using electrcity more effciently is the quickest and least-cost approach to meeting customers' power nees" because it reduces customer bils and reduces loads durng peak perods when Idaho Power's system is most stressed. APPENDIX G - A vista effciency rider Idaho Public Utities Commission Case No. A VU-E..09-06 and A VU-G-09-04, Interlocutory Order No. 30870 August 3, 2009 Contact: Gene Fadness (208) 334-0339, 890-2712 Website: ww.puc.idaho.gov Commssion reviewing A vista conservation programs The Idaho Public Utilties Commission is takng comments though Aug. 28 on an application by A vista Utilities to increase the rider that electrc and natual gas customers pay to fud conservation programs and to create a mechansm for a yearly adjustment each spring. If the commission approves the application, there is no increase to the overall rates approved by the commission in its July 17 order and made effective on Aug. 1. That increase - an average 1.5 percent for electrc customer and 1.2 percent for gas customers already includes the proposed rider adjustments. The net increase approved July 17 was the result of the following adjustments: . an increase to base rates for electrc and natual gas customers . a decrease for electrc customers in the anual Power Cost Adjustment and a decrease for gas customers in.the anual Purchases Gas Cost Adjustment . a decrease for residential and small-far electrc customers as a result of the resumption of the Bonneville Power Admstration's residential exchange credit . an increase (subject to commssion review in this application) to the energy effciency rider for electrc and natual gas customers. The commission directed that the energy effciency rider portions of the adjustment be made effective Aug. 1 on a temporar basis to avoid having several rate adjustments within a short period of time. If the commission finds that the company has not demonstrated a need for an increase in the energy efficiency rider, the rider account will be adjusted in the near futue to accommodate the comiission's findings. The rider fuds more than 30 programs in two categories called demand side management (DSM) and energy effciency. DSM programs reduce customer demand.on the company's generation sources. Efficiency programs help customers use their electrcity more effciently. The commission approves rider for electrc and gas utilities if they are found to be cost -effective for both customers and the utility. DSM and effciency programs can save customers money in both the short ter by direct customer paricipation and in the long ter because they prevent or delay the utility from having to buy or build more expensive generation. Avista proposes to increase its electrc rider from 2.24 percent to 3.27 percent of customer bils and the gas rider from 1.55 percent to 2.6 percent. As stated, this proposed increase is already in the overall rates approved last July 17, subject to commssion review. Final approval of the rider would increase anual revenue by $5.4 milion. However, increases in the rider cannot increase or decrease company earnings. Revenue collected from the rider can be used only to payoff a $2.36 millon shortfall in the electrc rider fud, a $1 milion shortfall in the gas rider fud and to fund ongoing programs. Avista's DSM and effciency effort are based on providing financial incentives or rebates for customer paricipation in more than 30 programs. Some of the programs include effciency measures for appliances, compressed air systems, HV AC systems, industral and commercial equipment, lighting and motors. The programs also include renewable technologies and sustainable building measures. Furer, A vista has long encouraged the direct use of natual gas by its electrc customers with rebates for the conversion of electrc-to-natual gas space and water heater loads. According to the company's application, A vista contiues to exce tagets in electrc and gas savings as the result of these programs for its Washigton and Idaho customers. More than 110 average megawatts of demand-side management programs are now. in place on the company's tota retal average load (durg 2008) of 1,100 average megawatts. (A megawatt is one millon watts, enough electrcity to power about 650 average homes.) On the gas side, 1.9 milion thers were saved durng 2008, which was 136 percent of the company's target. Of all the surcharge revenues collected from Washigton and Idaho electrc and gas customers, 72 percent were paid back to customers in direct incentives to participate in energy effciency and demand-side management programs. Ths does not include the additional benefits such as techncal analysis and education provided to customers by the company's DSM staff. In this application, A vista also proposes to reduce large negative or positive adjustments to the rider by filing on or about Feb. 15 of each year for either an increase or a decrease to the rider. According to the company's application, installing energy effciency measures "is a direct action customers can tae to respond to a period of increasing energy prices facing the Pacific Northwest and the countr as a whole." The application states that Avista's energy effciency programs are being used by customers at unprecedented levels. The commission plans to handle ths request in a modified procedure that uses wrtten comments rather than conducting a hearg, uness customer comments can demonstrate a need for a public hearng. Comments are accepted via e-mail by accessing the commission's homepage at ww.puc.idaho.gov and clickig on "Comments & Questions." Fil in the case number (A VU-E-09-06 or AVU-G-09-04) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762. APPENDIX H - PacifiCorp Energy Effciency Rider IDAHO PUBLIC UTILITIES COMMISSION May 5, 2008 Case No. PAC-E..08-01, Order No. 30543 Contact: Gene Fadness (208) 334-0339,890-2712 Website: ww.puc.idaho.gov Commssion: Customers wil benefit from increase in efficiency rider Customers of Rocky Mountain Power in easter Idaho wil pay more for a rider on customer bils to fud an expansion of the utility's energy efficiency programs. The increase in the rider, from 1.5 percent to 3.72 percent, is about $1.56 per month more for an average residential customer. The Idaho Public Utilities Commission approved the increase as one that wil be fiancially beneficial to customers in the long-term. "We fid that demand-side management, conseration, and energy effciency measures continue to be the least-cost resources that utilities can acquire to serve new load," the commission said. PacifiCorp, the parent company of Rocky Mountain Power, anticipates a shortage of energy resources to serve peak loads this summer. By implementing programs funded by the rider, the company estimates it wil save 13,140 megawatt-hour per year. At the former 1.5 percent, the rider fuded programs that saved about 8,000 MW durg 2007. While those customers who directly parcipate in the conseration programs wil benefit the most, "all customers, including those with fixed and limited income, will benefit from deferng the cost of new supply-side resources," the commission said. Furer, Idaho's share of system supply costs in PacifiCorp's six-state tertory wil decrease from expanded conservation programs. Revenue collected from the rider must go directly to fud and adinister energy effciency programs and canot be used for other puroses. The enanced energy effciency programs wil offer information, serices and cash incentives to help customers install energy efficient equipment or make permanent operational changes to reduce consumption and save money. The commission directed the company to file a report each year on May 1 outlining the programs and demonstrating their cost-effectiveness. The commission also directed the company to provide the information necessary to conduct a prudency review of the costs and expenses related to the program durng the company's next general rate case. "Costs imprudently incured wil not be paid by customers," the commission said. The Northwest Energy Coalition filed comments in support of the filing. NWC contends PacifiCorp has been underding and underachieving energy savings and believes the time is ripe for a signficant expansion of effort. The commission should make it clear, NWEC said, that utility performance not be measured on expenditue of fuds, but on the actual energy savings acquired. Rocky Mountain Power proposes these changes: . Expanding the Finswer Express program, which provides incentives for commercial and industral customers in effcient lighting, premium motors and mechanical upgrades to heating and cooling systems. Both new constrction and retrofit projects are eligible. Rocky Mountain Power reports there is a waiting list of business customers wanting to paricipate. . Adding the Energy Finswer program to its Idaho jursdiction. Rocky Mountan Power, which operates as PacifiCorp in five other Wester states, offers ths program in other states. It would provide incentives and honorarums to builder of new constrction projects that excee cuent Idaho energy code by at least 10 percent. . Modifyng and updating the Irgation Energy Savers program, which helps irgators with system upgrades, including the installation of frequency drives on pumps that help them to operate more effciently. . Modifyng the Home Energy Savings program to increase parcipation and align incentive levels with Idaho markets. The program provides incentives for residential customers for more efficient use of washing machines, dishwashers, water heaters, lighting, evaporative cooling, insulation and heat pumps. Other programs fuded by the rider that will contiue without change are Refrgerator Recycling, Low-Income Weatherzation Serces and the Irrgation Load Control Credit Rider. A full text ofthe commssion's order, along with other documents related to ths case, is available on the commission's Web site at ww.puc.idaho.gov.Click on "File Room" and then on "Electrc Cases" and scroll down to Case No. PAC-E-08-01. APPENDIX I C. L. "BUTCH" OTTER GOVERNOR Marh 19, 2009 The Honorable Steven Chu Secreta U.S. Deparent of Energy 1000 Independence Avenue, S.W. Washingtn, D.C. 20585 VI FACSIME & U.S. MA.. . Re: The State ofIdaho's Energ Program Assurances Dear Secreta Chu, As a condition of reCeiving Iq:áho's share .of the $3.1 billon fudig for the State Energy Program (SEP) under the American Recovery and Rtiew.al Act Qf2009 (H.R. IXAR), I am providing the fQllowi asurces. I have wrtten to our pùblic utility còmtb:j$'$iotiaïateqùeSttid~lbårthêY' continue their~cçeSSt\Mt9Upling~iforiid'consider additioiuil actions to proraote energyeffc.iéniy, çOQsjšteit witlthe Federal sttOry lanlugeconta~ in H.R~ land their obligations to maita jttstand t~onlii~ 'rates, while protectg the PiiWc.1havè a1sQ' wrttn the appropriat---.----statege-anreâ-tøeyii5ii:s-.~bulding eie:tos; consistè.:wth State law and , ..._--.- State Cansttutional reuiremeÎlts, and to coìiide thesttut¿iy language c.l'nedin ARRA. . We are prioritingoúrenergy investments to tae advantage of e:i,;istgpi\grans ¡pdexpand piogriUs where appropriate. Our State is ¿oiItledtb.aro1:ú,stimprovénient in eiitî' éffciêrèy áid renewable energy, as well as a balanced State energy policy. I W3.t to assur yoú tlt, Withinthé limiisof ÌiyJuthority, we wili move forward in thesecriticà1 ar. . . . We look forward to imediate distibution of the Fedeà1 SEP fuds topermt my State to make progres in energy effciency and renewable energy. As Aiways, ~L:~tua""'~~ CLO/sg C.L. "Butch" Ot Governor of Idao cc: Gil Sperling Directr, Offce of Weatherization and Intergovernental Progrs U.S. Deparent of Energy .State Ener Director.. David Terr, Exeèutive Director National Asociaton of State Energy Offcias STATE CAPITOL' BOISE, IDAHO 83720 . (208) 334-2100 .._____, ..______________.-'--__...__ ..____._.~_____~R APPENDIX J ~ b-.. NORTHWEST .. :. ENERGY EFFICrENCY ..,.; ALLIANCE Ocober 21s 2009 The Honorale C. L. "ButchS' Otter Goveror of Idao State Capitol Baise, il 83720 Dear Goveror Otter: Than you for appintig David Hawk as Idao's repreentatve to the Nortwet Eiergy ,. Effciency Alance (N) Boar. It is an excitlg tie for energy efcIency and I look forard to worg with Mr. Hawk as vie contiue to serve the region includig Idao, to accmpli our mission to mobilie the Nortwes to become increaingly energy efcient for a sustanable futu. I than you for brigig an indidua to the Boar with the depth and brth of experence that Mr. Hawk has in energy reated mat, and parcuarly hi solid undedig ofIdao-related energy conce. NE is appreatve of the tie and focu you spent on the selecon and for the concentred foc Paul Kjelander contrbuted to the effort. We are deely appreciatve to you both. Sinceely,~~~ Clae Fulenwider Exective Director cc: David Hawk ilã'¿g&1mdèi, Idaho Offce of Ener Resources War Kle, Idaho Power 529 SW Thrd Ave., Suite 600, Portd, Oregon 97204 ww.nwncoig I (tel) 503.027.8416 I (fa) 503.827.8437 APPENDIX K-Implementation of tiered rate (emphasis added) Idaho. Public Utities Commssion Case No. IPC-E-08-10, Order No. 30722 Januar 30,2009 Contact: Gene Fadness (208) 334-0339, 898-2712 Website: ww.puc.idaho.gov. Idaho Power gets 3.1 percent increase; 1.6 percent for residential customers Rates for Idao Power Company cutomer wil increae by an average 3.1 pecent effective Feb. 1, according to an order issued todayby the Idao Public Utilities Commssion. Rates for residential customers will increae an average 1.6 percet. Last July, Idao Power asked the commssion to approve an overl averge 9.89 perent increase with a requeste 6.31 percent increase for reidential customer. The utility asked to increase its anual revenue requiement by $66.6 millon. Today's order authorizes a $20.87 milion increae in anua revenue. The order also establishes a year-round, three-tired rate stucture for resientu customers to promote energy effciency and providecost-saving opportnits. The new non-summer residentu rate of 5.58 cents per kUowat-hour for the first 800 kWh.of monthly use is actally less than the current non-summer rate of 5.78 cents per kWh Idaho Power proposed à. two-tiered rate under which customer would pay a rate 20 percent higher than the first tier once thei monthy consption exceeed 600 kWh. Intead, the commission adopted a thee-tiered rate of 5.58 cents per kWh for non- sumer use up to 800 kWh; 6.2 cets per kWh for use beteen 801 and 2000 kWh and 7.13 cents for use of2,001 kWh or more. Dug the sumer month, the fist tier is 5.78 cents, the second tier is 6.59 cents and the thd tier, 8.17 cets. Idaho Power's cuent sumer rate is 5.78 cents on the first 300 kWh and 6.S 1 cents for use beyond that. Rates for other cutomer classes var depending largely on how much it costs to sere eah customer class. The rates approved by the commission for the major rate classes (with the company's origial proposal in parenthesis) are as follows: Residential- 1.61 percent (6.3 percent) Small commercial- 0.42 percent (10.6 percent) Large commercial- 3.35 percent (15 percent) Industral- 5.62 percent (15 percent) Irgation ~ 6 percet (15 percent) In adopting a signficatly smaller revenue requiement than the utility reques, the commission noted the deteroratig ecnomic conditions since Idaho Power made its application to the commssion last July. "The volatility of the market and gener fiancial distress on both a state and national level have trggered signficant commission concer about ambitious fiancial projections based on 2007 customer growt" and then extrapolated by the company into 2008, the commssion said. The commission said it expects Idaho Power to contiue to demonstrate its ongoing efforts to reduce operating costs and increase effciencies. Because of the tough economic climate, the commssion said all utilties' fiscal responsibility wil be ''reviewed extensively and continually." Even in tough economic times, the commission must abide by state statutes requirng that regulated electrc utilities be allowed to recover all prudently incured expenses in order to sere customers in a safe and reliable maner. When the commssion denies cost recovery to a utility, it must be able to legally demonstrate why the utility's costs were not prudently incured or in the best interest of customers. The commission disallowed some of Idaho Power's proposed expenses. The utility proposed to include in its revenue requirement an increase of nearly $16 milion in operation and maintenance expenses over 2007 levels based on anticipated growth in its serice tertory. The commission allowed $2.87 million, noting that ths is an area where Idaho Power has the most discretion to control costs. The commission also deducted $11.2 milion from the company's proposed $91.4 millon in net power supply costs (fuel to operate plants, power purchases from the wholesale market and other utilities and purchases from in-state small-power facilities). The commission disallowed the following amounts in these other categories: employee incentive compensation accounts ($3.2 millon), legal serces ($192,300) and employee purchase card expenses ($885,000). Idaho Power agreed with commission staffs fidings to reduce $1.4 million in depreciation expense and $2 milion in payroll expense due to a lack of increase in employees durng 2008. The company said it has responded to the economic slowdown by instituting a selective hirig freeze. The commission also is requing Idaho Power to reimburse customers $3.26 millon over five year. That is the amount credited to Idaho Power by federal agencies after it successfully challenged the amount offees it had to pay the Federal Energy Regulatory Commission and other agencies during 1999-2006. Idaho Power maintained a near 10 percent increase was necessar to recover investments including $578 millon for 13 new substations, 1,157 miles of distrbution lines and 190 miles of transmission lines over the last three years. Durng the same time perod, the company claims it increased the amount of electrcity it buys from other utilities from $876 millon to more than $2 bilion. That includes purchases from renewable sources, including wind and geotheral. The company anticipates spending about $900 milion durg 2008-2010 in constrction expenditues. In a depare from past practice, the commssion allowed the utility to include a greater proporton of projected costs in rates to more closely align rates with the company's expenses, thereby improving its credt rating and borrowing capacity. Typically, only actul, historical costs are included in rates. But because of the time it taes to process a rate case (about six months), the company often incurs expense that it canot recover until months after new plant is in use. The commission allowed Idaho Power to include major plant addition in excess of$2 milion thatwas to be completed by Dec. 31,2008 and allowed it to include an escalation in some expense accounts where a specific trend could be identifièd. However, the commssion did not allow as much in forecasted expense as Idaho Power wanted. The commission approved an 8.18 percent rate of retu and 10.5 percent return on common equity. The company requested 8.55 percent and 11.25 percent respectively. Evidence supported a finding that a slightly higher rate of retu is required than the curent 10.25 percent, the commssion said, in order to attact investors and to improve the company's credit ratings, which can benefit customers by lowerng Idaho Power's borrowing costs. The company's ongoing constrction needs also prompted the commission to include in rates an allowance for fuds used durng constrction (AFUDC) totaling $6.8 million related to the Hells Canyon relicensing projects. Typically, AFUDC is not included in rates until a project is in use and benefittng customers. In 2006, the Idaho Legislatue amended a 1984 statute that prohibited the commission from including those costs in rates except in extreme emergencies. The 2006 amendment said constrction work in progress and plant held for future use can be included in rates if the commission makes an explicit fiding that including those costs is in the public interest. Including the Hells Canyon costs is in the public interest, the commission said, because paying down some relicensing accounts now wil mean smaller rate increases in the futue because all prudently incured relicensing costs wil have to be included in futue rates. Furer, the commission said, "Idaho Power's cash flow wil improve, which will help maintain its credit strengt to access fuds for ongoing constrction projects." The commission said the relicensing effort, which is required by the Federal Energy Reguatory Commission and has cost $95.6 million through 2007, is unike a typical constrction project because it has been under way for nearly 10 years with no certain completion date. Furher, Idaho Power is able to use the Hells Canyon complex hydroelectrc projects during relicensing, thus benefiting customers. The commission also approved a request by the Communty Action Parership Association ofIdaho (CAP AI) to require Idaho Power to provide $25,000 anually to each of the state's five communty-action regions for energy-efficiency education projects. The commission declined a request by CAP AI that Idaho Power increase fuding for low-income weatherzation. The commssion said the utility is already actively involved in fuding low-income weatherzation projects. Other paries in the case besides CAP AI, which represents low- and fixed-income customers, included the Idaho Irgation Pumpers Association, the Industral Customers ofIdaho Power, Micron Technology, the U.S. Departent of Energy (on behalf of the Idaho National Laboratory), the Kroger Company (dba Fred Meyer and Smith's) and the Snake River Allance. The commssion also held three public workshops for customers, thee public heargs and a four-day techncal hearng. A full text ofthe commssion's order, along with other documents related to this case, is available on the commission's Web site at ww.puc.idaho.gov.Click on "File Room" and then on "Electrc Cases" and scroll down to Case Number IPC-E-08-10. Interested pares may petition the commission for reconsideration by no later than Feb. 20. Petitions for reconsideration must set fort specifically why the petitioner contends that the order is uneasonable, unawfu or eroneous. Petitions should include a statement of the natue and quantity of evidence the petitioner wil offer if reconsideration is granted. Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to P.O. Box 83720, Boise, ID, 83720-0074, or faxed to 208-334-3762. APPENDIX L - Idaho Power automated meters plån approved Idaho Public Utities Commssion February 17, 2009 Case No IPC-E-08-16, Order No. 30726 Contact: Gene Fadness, (208) 334-0339, 890-2712 (cell) Commission OK's installation of automated meters Idaho Power wil begin this year a thee-yea project to install automated meters thoughout its souther Idaho service tertory. Responding to an urgent directive from the Idaho Public Utilities Commission, the utility wil replace its existing meters with advanced meterg infrastrctue (AMI) that wil eventully allow customers to monitor electrc prices and adjust their use to take advantage of lower price-perods. Idaho Power submitted a cost estimate of$71 milion for the project and wil absorb any costs above that. Rates wil not immediately increase, but wil be included in base rates as the meters are placed in serice. The commission also approved the company's request to accelerate the depreciation time frame on its existing meters down to three years. The commission is urging Idaho Power to "move forward with all deliberate speed" with installation beginning ths year in the Boise area, then in 2010 in the Canyon and Payette regions and, finally, in 201 1 in the Magic Valley, Pocatello and Salmon areas. The advanced meters can be read from a remote location, negating the need for an Idaho Power representative to access customer properties. They can provide the company and individual customers with hourly meter readings and inform customer of current electrc prices, potentially allowing them to manage their use and reduce their bils. Other benefits to customers and the company wil include reduced operational costs associated with meter reading and improved meter reading accuracy, outage monitoring and theft detection. Customers can also be disconnected and reconnected from a remote location saving time and labor. There are also biling advantages such as fewer estimated bils, less re-biling and more flexible biling schedules. After the Wester energy crsis of2000-2001, the commission said advanced meterg technology was becoming more necessar. At that time, the commission ordered Idaho Power to evaluate and report on advanced meterg technology. In 2002, the commission ordered Idaho Power to complete installation of advanced metering by 2004, but financial and technical problems made it impossible for the company to meet that time frame. The commission eventually adopted a phased-in implementation and evaluation approach, with advanced meters installed in test areas such as Emmett. In an earlier order, the commission stated. .. "the potential benefits of advanced meterng to ratepayer and the company are too great to delay. .. implementation indefinitely." The Idaho Conservation League endorsed adoption of the AMI program, saying it wil encourage customers to be more effcient, which wil lead to a decrease in overall electrcal demand and reduce carbon dioxide emssions. AA Idaho opposed the plan, saying more information should be obtaied through a techncal hearng before imposing the additional cost of AMI on customers. The commission said it is mindful of the large capital expense, but said it expects Idaho Power to "demonstrate its ongoing effort to reduce operating costs and increase efficiencies and reminds the company that in the curent economic climate its fiscal responsibilty wil be reviewed extensively and continually." Copies of the commission's order are available on the commssion's Web site at www.puc.idaho.gov.Click on "Recent Orders and Notices," and scroll down to Case No. IPC-E-08-16. Petitions for reconsideration must be fied by no later than March 5. APPENDIX M - Update of automated meters in rates Porton of May 29, 2007, press release including AMI expense in base rates: Advanced Meterig Infrastructure IPC-E-09-07, Order No. 30829 Responding to a directive from the commission, Idaho Power has begu a thee-year process to replace its existing meters with advanced meterng infrastrctue (AMI) that wil eventually allow customers to monitor electrc prices and adjust their use to take advantage of lower price-periods. Idaho Power estimates the project wil cost $71 million over its thee year phase-in process. In this application, Idaho Power sought the first installment, or $11.2 milion for investments made between June 1, 2009, and May 31, 2010, which would have resulted in a 2.22 percent increase. However, the commission adopted its staffs recommendation to include only costs though 2009, as more representative of the company's actual investment. The resulting increase is 1.8 percent. "We are confident that such an approach wil provide the necessar protection to ratepayers and ensure that the company is able to maintain adequate cash flow and access to suffcient capital to maintain a secure financial footing in the midst of the curent economic downtu," the commssion said. The Snake River Allance fied comments supporting the company's application, but acknowledged that the meters' benefits won't be realized immediately. However, "eventul benefits wil lead to real energy savings that wil benefit all customers ... though reduced energy bils and reduced need for additional investments in generation and transmission." The commission is urging Idaho Power to "move forward with all deliberate speed" with installation beginnng this year in the Boise area, then in 2010 in the Canyon and Payette regions and, finally, in 201 1 in the Magic Valley, Pocatello and Salmon areas. Idaho Power is pursing federal stimulus dollars to help fud the project, which could eventually reduce ratepayer costs. APPENDIX N OFFICE OF ENRGY RESOURCE PAUL KJELLERAdri 32 Ea Fro St P.O. Bo 8320Bo,ldahO 8300 Co "'BUTCH" OTTRGQmo (20) 28-4 FAX (2) 28-67 October 27, 2009 Wil Har Execuve Dirtor .Idao Conser-Owned Utities Associaton POBox 1898 - Boise, Idaho 83701 Wil Har The Ofce of Energy Resour (OER) is in the pros of compg a rert on the 200 Idaho Energy Plan. Speificaly, ths report is trcki the progrss rela to vanous action ite contaed in the energy plan. There is a setion with the plan that des diy with Idao's municipa and cooperave utilities and in an efort to respond apriatly to the legislat, I am seekig your assista. The speifc section of the plan relat to your associaton is as follows: E.7 Ida' s muicipal and cooperative utlities shoul anuaUy report to th Enrgy Division their estimaes ojcoat-efeetve coervation in thir service territories, ther pla for acquiring. this resource. their conservatn and energy efiency expendtures, an their estimated savings in electrical energy (MWh) and peak capacit (kW) during the lifetime of th meauresimplemered. At your ealiest convenience, could you consult with your membership and provide OER with some lanage that addrs the secton reernced above. Your response to ths request wil be incorprated into the fmal report that wil be delivere to the Idaho State Legislature prior to the next session. Thk you for your consdertion of this reuest. If you reui addtiona informaton, conta . me at (208)287-4903. ~~ Paul Kjellander Administrtor, Idaho Offce of Energy Resourc APPEN"DIX iCOU - 2007 2007 Totals 50,440 13205 47,083 30,291 9,742 3,804,010 APPENDIX ICOU - 2008 H35,634 "w~wH,a~6. ...................JH,1I9 S1,eQQ. .E1.,.?~? $9 ~?5. $204 $10000 $33150 $50,484 $16,440 $51,393 $2,000 $13,167 ...J.~,~~?? . l1Le1Q $3,932 $1,433,261 APPENDIX 0 LEGISLA'l OF THE STATE OF IDAHO Sixtieth Leislature 2010 Second Relar Session -- IN THE BILL NO. BY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 AN ACT RELATING TO INCOME TAX DEDUCTIONS TO PROMOTE ENERGY EFFiCIENCY; SECTION 63-3022B,IDAHO CODE, TO REMOVE THE REQUIREMENT THAT OLDER THA 1976 TO CLAIM THE DEDUCTION. AMENDING HOMES BE Be It Enacted by the Legislature of the State of Idaho: SECTION 1. That Section 63-3022B, Idaho Code, be, and the same is hereby amended to read as follows: 63-3022B. DEDUCTION FOR INSULA'lO~1 ENERGY EFFICIENCY UPGRADE OF RESIDENCES. For taxable years commencing on and after January 1, ~ 2010, an individual taxpayer may deduct from taxable income an amount actually paid or accrued by the individual taxpayer during the taxable year for the actual installation~ not replaoement, of insulation energy efficiency upgrade measures within any existing building in the state of Idaho which serves as a place of residence . of the individual taxpayer. As useè in tRis seotion, "insulation" means any material eoftoniy useè in tRe builèin~inèustry anè aotually installeè for tRe purpose of retarèin~ tRe passa~e of Reat ener~y into or out of a builèin~, inoluèin~ but not limiteè to, SUCR items as fiber~lass inqulation, HeatRer strippin~, double pane ',¡indoHs, anè storm doors anè HinèoHs .As useèin tRis. section, "elfistin~ builèin~" means any builèin~ in bein~, unèer oonstruction, or subj eot to an outstanèinq leqal buildinq permit on tReeffective èate of tRis aot. (1) Definitions: (a) "Energy efficiency upgrade measure" means an energy efficiency improvement to the building envelope, such as insulation, weather stripping, high efficiency windows, storm doors and windows, or ductsystem insulation and sealing that reduces the energy use. of . that building component and is actually installed during the taxableyear. (b) "Existing building" means any single family or duplex .building constructed and occupied prior to the taxable year' in which the improvement is made or accrued. (2) Specific requirements for energy efficient upgrade measures: (a) Upgrade measures shall meet or exceed the prescriptive value for the improved building component established by 39-4109, Idaho Code during the taxable year in which the improvement is paid or accrued subj ect to the limitation of subsection b and the requirement of subsection c of this section. 2 1 (b) Insulation shall be added to existing insulation and not in 2 replacement of it. In the case of uninsulated walls and other 3 confined building cavities it may be impossible to install the 4 amount of insulation required by subsection (a). In that case the 5 insulation value required for the deduction shall be determined by 6 the amount of insulation that can be installed in the cavity using 7 blown fibrous insulation. 8 (c) Window replacements must be Energy Star certified by the U. S. 9 Environmental Protection Agency during the taxable year in which the10 window is installed.11 (d) Duct sealing and insulation upgrades shall be deductible if they12 meet these standards: Duct sealing requires mechanical fastening of13 joints and mastic sealant, and insulation of ducts outside of the14 living area shall be to a minimum R value of eight (8). In addition15 performance testing of duct sealing and static pressure is16 recommended, and the cost of testing and sealing by a technician17 certified and operating according to the Performance Tested Comfort 18 System requirements promulgated by the Regional Technical Forum of19 the Northwest Power and Conservation Council is deductible.20 (e) Duct air flow testing and duct repair for better air flow shall21 be deductible where the final tested air flow is no less than eighty22 five percent (85%) and no greater than one hundred twenty percent23 (120%) of the manufacturer's recommended air flow for the air24 conditioner or heat pump attached to the duct system at an external 25 static pressure no greater than one half inch water column measured 26 using procedures specified in the Performance Tested Comfort System 27 requirements promulgated by the Regional Technical Forum of the 28 Northwest Power and Conservation Council. 29 3031 SECTION 2. The Legislature finding that an emergency exists, therefore 32 this act shall be in full force and effect on and after January 1, 2010. 33 3 STATEMNT OF PUROSE The purpose of this legislation is to update the existing tax deduction for existing homes. The update removes the restriction that homes must be built prior to 1976 in order to qualify for a tax deduction for energy efficiency improvements, defines minimum levels of efficiency improvements by reference to current energy efficiency requirements in code, defines energy efficiency upgrade measures, and provides standards for insulating, sealing, repairing and sealing ductwork. FISCA IMPACT This amendment will be revenue posi ti ve after considering income tax on installation labor and material and product sale profits and sales tax on materials and products. The deduction is estimated to increase 30%--an added state tax loss of $200, 000. A conservative estimate shows this increase would be offset by $106, 000 estimated increased income tax on installation income and material and net product profits and $105, 000 estimated increased sales tax. State revenue is estimated to increase overall by approximately $10,500. CONTACT Name: Phone: APPENDIX P NEWS RELEASE IDAHO OFFICE OF ENERGY RESOURCES Release 2009-37 FOR IMMEDIATE RELEASE Boise, Idaho - September 24, 2009 Contact: Paul Kjellander 287-4903 Administrator Offce of Energy Resources Micron Awarded Stimulus Funds for Energy-Efficient Lighting Technology Development Project Governor Otter Announces Stimulus Support for Project to Develop Technology, Reuse Facilties and Create Jobs at Idaho Innovation Summit at 9:15 a.m. on September 24 The Idaho Offce of Energy Resources (OER) wil award $5 milion in available American Recovery and Reinvestment Act stimulus funds to Micron Technology Inc. to advance a program focused on producing energy-effcient Iight-emitting diode (LED) technology. LED technology uses approx imately 1n of the electricity of today's standard lighting sources. Applications include general commercial and residential illumination, municipal streetlights and outdoor area lighting; off-grid lighting powered by solar for remote locations; television and display backlighting as well as automotive lighting and instrument ilumination. Micron's LED development efforts were one of four projects selected in May by OER and reviewed by a council convened by the Idaho Department of Commerce as the best proposals to stimulate Idaho's economy while creating an industry that promotes energy effciency. "The project fits Idaho's long-term economic development goals through creation of quality jobs and career opportunities in an innovative industry," Governor C.L. "Butch" Otter said. This stimulus funding provides additional financial support to the significant capital and assets Micron has also committed to the project. These include Idaho- based fabrication facilities, world- class research and development personnel and advanced production tools and machinery. OER Administrator Paul Kjellander said, "Investing in a new direction for Idaho's high-technology industry wil restore jobs and growth for Idaho." "LED technology aligns well with Micron's core semiconductor technology expertise," said Scott DeBoer, Micron Vice President of Process R&D. "The stimulus support announced tad ay, together with the significant R&D investments Micron is making toward this project, further the possibility that this effort could help Idaho grow as a leader in energy-effcient LED technology." More information about these project and the Offce of Energy Resources is available at http://ww .energy.idaho.govl (END) APPENDIX AVU All mixed together Rnancil ex always couns their clen to "diver." That's goo advice for the energy business, too. At Avist, we light your reading lamp, charge your laptop and lots more with a mix of fuel sources; That appoach can increase rèliabilit and keep rates more manageable. In 2007. we generated or cotrcted to purcase this much energ for you: . Hydro . Coal . Natural gas . Waste* Wind** mi Nudear* ii Coeneration II Landfill gases* II Oter Ii Solar II Geotheral 50.88 percent 24.72 percent 20.09 percent 1.25 percent 1.13 percent 0.28 percent 0.11 percent 0.01 percent 0.01 percent 0.00 percent 0.00 percnt * Avi do't ow or ope landfill ga. nudear or wate geeraon facilies. .. Papang custrs purchase 66.638 mewa-hrs 01 new, renle elethro Avist's Buck-A-ki prm. Sinæ pang customers pad fo ths en dire, it don't coe an Avist purc. Source 01 data: /J reed by Avta Utilies to, and publish by, the Sta 01 Washng Depart 01 Comunit, Tra and Econoic Deeknt Ener Poicy Diio fo th '27 caler yea. ~~~rV'STA~ . APPENDIX IPC Where Did Your Electricity Come From Last Year? Idaho Power uses a diverse mix of resources to provide its customers with a reliable, low-cost supply of electricity. This mix includes hydroelectricity, power generated by the company's coal or natura gas-fired plants and from purchases from the wholesale energy market. These charts show the source of your electricity in a normal year and the amount and sources Idaho Power used to meet electrical demand in 2008. Normal Expectation 8.90/00.2ll/o~ 2.6%47.9% 40.4% 2008 Actual 40.2% 13.9% _Hydro . Coal Gas . Long Term Purchases . Market Purchases Energy is a finite, precious resource, and Idaho Power encourages its customers to use it wisely. For more information and to sign up for energy efficiency programs that can help conserve electricity and save money, please go to ivwwJdahopower.comí enercyeffciency. CID# 470881387.8ki1l ~ iOO91daho _ APPENDIX 0 C. L. "BUTCH" OTTER GOVERNOR Marh 19, 2009 The Honorable Steven ChuSecre U.S. Depaent of Energy 1000 Indepndence Avenue, S.W. Washingtn, D.C. 20585 VI FACSIME & U.S. MA Re: The State ofldaho's :Energ Progra Asuraces Dea Secre Cbu, As a condition of reiving ldào'ssliof th $3.1 bilion fuding for the Sta Energy Progr (SEP) under the American Recoveryandl~.en(;\ValAct of2009 (H.R. 1 )(AR), I am providig the fQllowig assuces. I have writn to our public utility coinssionandrequest:thatthey contiue theirsuccessfúlaeçupliig efforts and coider additiona. actions to proiaot ener~ effpieJlcy, consistnt with the Fedra stator languge contaned in H.R.l and their obligaons to maita justa,d reasonäblerate, whileprôtecg the pu¡'lic. lhave also wrttn the appropri.....~~dreuest-teynsid~()-ipro.e.bingy..coes; cosistent w..8aw_anL..... .. State Constitutiona reuirements and to consider the .sttuory larguage contaed.in ARRA.- .. . We are proritizg ourener~ investments to tae advantae ofeKistng ptQgram and expand progr where appropriate. Our State is committed to a robustim:prôvemenf in energy effciency and reevvbleenerg, as well as a balanced Stae energy policy. I want to as you th with the limits of mymthority, we will move forwar in thesecritical aras. . We look forwar to imedatè distbution of the Fed SEP funds topet my State to make progress in energy effciency and renewable energy.~A~~¡; CLO/sg C.L. "Butch" Ot Goveror ofIdao cc: Gil Sperling Director, Offce of Weatherition and Intergovernental Programs U.S. Deparent of Energy State Energy Dirctor David Terr, Exective Director National Associaton of Stae Energy Offcials STATE CAPITOL. BOISE, IDAHO 83720 · (208) 334-2100 ..--,.._-_.,._._-_.__._---_..~._._..~._---"-._---_.-._.."+._-,--""_._..__._..-._--~~-~----~.~.~--"~~ APPENDIX R c. L. "BUTCH" OTTER GOVERNOR Mah 19, 2009 Paul KJellande Adminstatr Idao Ofce of Ener Resour 322 EastFront Strt P.O. Box 83720 Bois, Idao 83720"0098 RE: State Energ Program Fundi Dea Pau, I am athig the relevan section of the reently pa Amerca Recover and Renewa Act of 2009 (H.R. 1 )(AR), which conta a reuiment tht Goverors mae cert asances regag ener effciency program and energy codes as a condition of the State reeivig our shar of $3.1 billon frm the Feder State Ene Program (SEP). I am as you to work with the Ida Public Utities Commssion and th Division of Buidig Safety to coordi efrt to fu th st's reuients unde the relevat provisions of the AR. Such coordion ca bent the public. I fuer reuest th you inorm me of your actions. As Alwas - Idaho, "E Pera"q.d~~ CLO/sg C.L. "Butch" Otter Goernor ofIdao (D0726.00C 11) STATE CAPITOL · BoisE, IDAHO 83720 · (208)334-2100 4.."". .. H.R.1-33 authoriation provide in secton S6S(t) of such Ac only if the goveror of th recipient Stte noties th Secreta of Energyin wrting that the governo has obtai necessa assurace that each of the folowig wi occ: (1) Th applible Stte reguatory authority wi see toimplement, in approprte preeng for each elecc andgas utility. wi respec to which th State reto authorty h~s. ratemldng .auth~, a gen~er olcy tht. enure: that utity fina inctive are with helpi thei cu tomer use energy more efcien: and tht P'de tiely cost recov and a timey ea o~por for utisassocite with costectve measuble and verable ef- ciency savigs, in a way tht suain or enhaces utiitcuomer incetives to use en more efcien.(2) Th State, or th app1ile unts of loc goverent tht have autor to adopt buiding coes, wil implement the followig: J (A) A bu energy code (or codes) for residenal buildigs tht meet or exeds the mos recetly publshedInternation Energy Conerti Code, or aces equvaent or greate ener saving. (B) A bui energy code (or codes) for commeibuildigs thoughout the State tht meets or exee theANSVASA Standar 90.1-2007, or acleves equvaen or greate enrg savi. (0) A pl for th judicton acbev copliancewith the bUiding energy code or codes descr'bed m sub paraph (A) aD (1) withn 8 yea of the date of enct- men of this Act in at le 90 percet of new and renovated residenti an coercal buidi spac. Such pl shalinclude actve trning and enorct progrs an meurement of the rate of compliace ea year.(S) Th State wil to th exent practcable prioritie the grants toward fudig ene efciency an renewable ene prgrms. inclding- (A) the expanson of exting energy efciency pro- gram approve by the State or tlie appropriate reator authorty, includg energy efcienc retrts of budingand indusal facties, tht ar fued- (i) by the State; or (ü) thoug rates uner the overght of the applicable reguto auorty, to the exentapplicae;(B) the exanon of exstg pr apped bythe Stte or the appropte regat autor, to sup- por renewable ener project an deployment acvities.includig programs operte by entities wli have theauthority and capaty to mane an dibute grnts loans, perorance incentives, and oter fors of :fanci assistan; and(C) copertion an joint actvities between Stte to advance more eft an efece use of th fungto support the prities descrbed in th paragaph.(b) STAT MA.-The State cost shar requret under the item relti to "Depaent of Energ Energy Consertion"in title n of the Deparnt of the Inteior an Reted Agenci I ~ APPENDIX S IDAPA 07 . DIVISION OF BUILDING SAFETY 07.03.01 - RULES OF BUILDING SAFET DOCKE NO. 07-G301-0902 NOTICE OF RULEKING - PROPSED RULE AUTHORITY: In compliance with Setion 67-5221(1), Idah Code notice is hery given that this agency hasinitiated prpose niemaking produres. The action is authorzed puruat to Section 39.4109, Idao Code. PUBLIC HEARING SCHEDULE: Public hearing(s) conceming this rulemaking wil be Scheduled ifreuesed in writing by twenty-five (25) peons. a political subdivision, or an agency, not later than Octobe 21,200. lñe hearing site(s) wil be aci:essibl~ to perns with disailties. 'Requests for acmmodation must be mad not later tin five (5) days prior to the hearing, to the agency addres below. DESCRIPTIVE SUMMARY: The following is a nontehnica explantion of the substance and purpse of the proposedniemaking: Secion 39-4109, Idaho Code, provide the Building Coe Boa with the authority to adpt specified building coc.'S via administrve rule. The rules currently adopt the 200 editions of th building code and need to be updated to reflec the most recent 2009 editions of the codes. Additionally, the American Recver and Reinvestment Act (fedeal stimulus legislaion) include funding for sta to build ener efcient building. To rc.'Civc that funding, Idaho has provide asurances to the federal goverment that it wil adopt the 2009 Intemational gnerg Conservion Code. The rule would adopt the 2009 edition of th Inteational Ener Conseation Code with any amendments therto as adpte by the Bod through the neotiat rulemaking process. FEE SUMMARY: The following is a speific desption ofthc fee or charge imposed or incred: NA FISCAL IMPACT: The following is a spefic desption, if aplicable, of an negative fiscl impact on the stae general fund grer than ten thousand dollars ($10,00) during the fiscal yea reulting from this rulemaking: None. NEGOTIATED RULEMAKI NG: Pursuanl to Section 67.5220, Ida Code, Rc-gotialed rulcmaking was not conduced because of the simple nature of the rulemaking. ASSISTANCE ON TECHNICAL QUESTIONS. SUBMISSION OF WRITIEN COMMENTS: For asistanceon tenical questions concerning th proposed nie, conta Steve Keys, Deuty Administratr. Opeions, (208) 332.8986, Anyone may submit written comments i-egarding this proposed rulemaking. All written comments must be dirc.'Cd to the undeigned and must be delivered on or before October 28,2009. DATED this 28th day of August, 200. SteKeys Deputy Administra. Operations Division of Building Safety 1090 E. Wau:rtower SL Mendian, ID 83642 Phone: (208) 332-8986 Fax: (208) 855.2164 THE FOLLOWING ISTRE PROPOSED TEXT FOR DOCKET NO. 07-0301-0902 Idaho Administive Bulletn Page 154 October 7,2009 - Vol. 09.10 DIVISION OF BUILDING SAFET .Rules of Building Safety Docket No. 07.0301-6902 Proposed Rulemak/ng 004. ADOPTION AND INCORPORATION BY REFERENCE. Under the provisions of Section 39.4109, Idaho Code, the /e.a8wfng codes enumerated in this Section are hereby adopted and incorporated by reference into IDAPA 07.03.0 I, "Rules of Building Safety," Division of Building Safety. The effective dat of a 2009 edition of any of the codes adopte in this Section with any amendments identified thereto shall be Januar i. 201 i. Until such time, the 2006 edition of any sueh code enumerated in this Section without amendment win remain effective pursuant to Section 39-4109. Idao Code, Copies of these documents may be rt"Viewed at the offce of the Division of Building Safety. The referenced codes may beohtained from Interational Code Council, 5360 Workman Mil Road, Whittier, California 90601-2298 or hltp:/twww.iecsafe.org.~ !! International Existing Building Code. 2002 Edition. Internatonal Energ Conservaton Code. 2009 Edition. (5-8-09) (5-8-09)~L- 01. 02. 03. International Building Code. 2006 Edition. International Residential Code. 2006 Edition. Idaho Administrative Bulletin Page iSS October 7, 2009 - Vol. 09-10 APPENDIXT Idaho Public Utities Commssion IPC-E-08-11, Order No. 30760 April 1, 2009 Contact: Gene Fadness (208) 334-0339, 890-2712 Proceeds from previous credits used to expand energy efficiency education The Idaho Public Utilities Commission chose a modified version of a proposal by Idaho Power Company as the best use of $500,000 for energy efficiency education. In a related case, the commission chose a modified version of a proposal by Idaho Power as the best use of $500,000 for energy efficiency education. In the 2008 emissions credits case, the commission agreed with a recommendation from the Idaho Energy Education Project that a portion of$19.6 milion in emssions credits be used for energy education. Proposals for an education program came from IEEP, Idaho Power Co. and a joint proposal by the Offce of Energy Resources and the State Deparent of Education. The commission adopted the Idaho Power proposal, saying it is more focused on schools withn its servce tertory and has smaller overhead and administrative costs. Idaho Power's proposal includes expanding its existing program of energy education by increasing the number of energy audits for homes and schools as well as follow-up discussion of those audits. Idaho Power will distrbute classroom energy kits to students to take home. Students wil be taught how to read meters, including advanced meters that are being installed throughout Idaho Power's tertory. With meters the students take home, they wil be able to calculate the energy use of home appliances. Students wil also be invited to paricipate in audits of school buildings, including makng recommendations for efficiency measures. The commission rejected a porton ofIdaho Power's proposal to add two more solar . projects to the two existing projects in the Solar 4R Schools program. The commission said the $75,000 allocated for those projects would be better used in the home and school energy effciency components of the program. The commission also directed Idaho Power to establish an advisory board to implement the energy education proposal. Its members wil include some of the pares who paricipated in the case. The board will also assist Idaho Power in preparng a final report to the commission after the two-year project is complete. APPENDIX U C.L. "BUTCH" OTTER GOVERNOR lI DBPMTMEN STAm OF IDAIO/l0l EXCUTIVE ORDER NO. 2009-5 ESTABLISHING THE IDAHO STRATEGIC ENERGY ALIACE REPEALIG AND REPLACING EXCUTIE ORDER 2007-20 WHEREAS, it is the policy of the State of Idaho to utilize the natural resource of our State to increase our enrgý supply in .aneconollically effcient and prudent manr while protecting the integrty of our state 's reources; and WHEREAS, the preence of an afordable, relîableand plentil energ supply is critical for our state and natina economy; and WHEREAS, the deveopment of reneable and/or sutainale energ sources, including but not limited to bio-diesel, biomas, ethanol, methane digeters, wind power and solar, wold be beneficial to farmers, rural communities and the state as a whole by esblishing additonal markets. creating diverse and sutainable form of energ, and creating new job opportnities for Idahoans; and WHEREAS, Idao's energ resources can help Idaho and the nation to lesen dependence onforeign oil; and WHEREAS, to thi end, it is the goal of the State of Idaho that 25 percent of Idaho's energ nee be provided through renewable and/or sutainable Idao-based energ sources by the year 2025; NOW, THEREFORE, L C.L "BUTCH" OTTR, Governor of the SUIte of Idaho, by the authority vested in me under the Constitution and the laws of the State of Idaho do hereby order the following: 1. The establishment of the Idaho Strategic Energ Allance as ajoint effort between local, tribal, State and federal governents, as well as the for profit and not-jor- profit private sectors. The purpose of the Allance is to enable the development of a sound energ portolio for Idaho that includes diverse energ resources and production methds, that provides the highest value to the citiens of Idaho, that ensres quality stewardship of environmental resources, and that fùnctions as an effective, secure, ~nd stable energy supply. . 2. The responsibilites of the Allîae shall be: A: To provide policy direction and planning through an overseeing Council that is aimed at increasing the State of Ida's prouction of renewable and sutainable energy. B. To work to improve coopeation. collaboration and iriormon sharing among public and private sector entities in the area of renewable and sutainable energ. C. To seek out new and innovative means to increae production of energy in Idaho. 3. Membership of the Council shall includ a representative frm the Ofce of the Governr and the directors of the fol/owing State entities or their deignees: A. Departmnt of Agrculture B. Departent of Environmental Qulity C. Departent of Land D. Departent of Water Resources E. Departent of Commerce F. Idaho Transportation Department G. Ofce of Energy Resources 4. The Council shall engage representatives and members of federal government, local government organizations, tribal governments, Idaho universities, private, and not-for-profit organizations having an interest in the energy juture of Idaho pertaining to renewable or sustainable energ, and who can bring the expertse and resources to create a successjul Alliance. 5. Council members shall serve at the pleasure of the Governor. 6. The Council shall meet at least twice annually. The chairman of the Council shall be the administrator of the Offce of Energy Resources or his representative. 7. The Council shall submit a report of its activities to the Governor and the Legislature annually. IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affed the Great Seal of the State of Idaho in Boise on this 6th day of February in the year of our Lord two thousand and nine, and of the Independence of the United States of America the two hundred thirt- third and of the Statehood of Idaho the one hundred nineteenth. ~ C.L "BUTCH" OITR GOVERNOR~.BE~ SECRETARY OF STATE AP P E N D I X V ID A H O K - 1 2 EN E R G Y E F F I C I E N C Y PR O J E C T Th e O f f c e o f E n e r g y R e s o u r c e s ( O E R ) ha s c o m m i t t e d o v e r s e v e n t e e n m i l i o n do l l a r s o f A m e r i c a n R e c o v e r y a n d Re i n v e s t m e n t A c t ( A R R A ) S t a t e E n e r g y Pr o g r a m ( S E P ) f u n d s t o K - 1 2 e x i s t i n g sc h o o l b u i l d i n g e n e r g y e f f i c i e n c y up g r a d e s . Th i s p r o j e c t w i l s e c u r e s a v i n g s t h r o u g h a c o m b i n a t i o n o f b u i l d i n g p r o c e s s ch a n g e s , m e c h a n i c a l s y s t e m t u n e - u p s , an d t h e i n s t a l l a t i o n o f h a r d m e a s u r e s im p l e m e n t e d t h r o u g h b u i l d i n g e n v e l o p e , li g h t i n g , m e c h a n i c a l a n d w a t e r s a v i n g s re t r o f i t . T h e t r a i n i n g w i l b e d e s i g n e d t o su p p o r t t h e m o s t e f f c i e n t a n d e f f e c t i v e im p l e m e n t a t i o n o f b o t h t h e t u n e - u p s a n d ha r d m e a s u r e i n s t a l l a t i o n . TH E O B J E C T I V E S ID A H O ' S C O M M I T M E N T TH E GO A L Th e g o a l u n d e r t h i s p r o j e c t i s th e r e d u c t i o n o f s t a t e w i d e K - 1 2 cl a s s r o o m e n e r g y u s e b y 1 0 t o 15 p e r c e n t o v e r t h e n e x t t w o ye a r s w h e n c o m p a r e d t o a 2 0 0 8 ba s e l i n e . 1. D u r i n g s t a t e f i s c a l y e a r s 2 0 1 0 a n d 2 0 1 1 a p p r o x i m a t e l y 7 0 3 e x i s t i n g Id a h o K - 1 2 c l a s s r o o m b u i l d i n g s w i l u n d e r g o h e a t i n g v e n t i l a t i o n a n d co o l i n g ( H V A C ) a u d i t s a n d t u n e - u p s t o i n c r e a s e s y s t e m p e r f o r m a n c e an d r e d u c e e n e r g y b i l s . Ap p r o x i m a t e l y f i v e m i l l o n d o l l a r s wi l b e s p e n t o n a u d i t s a n d t u n e - up s s t a t e w i d e . It ' s e s t i m a t e d t h a t i m p l e m e n t a t i o n o f t h e K- 1 2 p r o j e c t w i l e i t h e r c r e a t e o r h e l p to m a i n t a i n 1 5 0 - 2 5 0 j o b s i n t h e I d a h o ma r k e t o v e r t h e n e x t t w o y e a r p e r i o d . A s e c o n d a r y b e n e f i t o f t h i s p r o j e c t i s to m a k e t h e s e j o b s s u s t a i n a b l e i n t h e lo n g e r t e r m . 2. D u r i n g t h i s s a m e t i m e p e r i o d , pr o j e c t e n g i n e e r s w i l p e r f o r m sc o p i n g a u d i t s o n 7 0 3 K - 1 2 bu i l d i n g s t o d e t e r m i n e h i g h p r i o r i t y bu i l d i n g s f o r l i g h t i n g , en v e l o p e m e c h a n i c a l a n d w a t e r sa v i n g e n e r g y r e t r o f i t m e a s u r e s . Al m o s t t e n m i l l o n d o l l a r s w i l b e us e d t o r e t r o f i t e n e r g y s y s t e m s i n se l e c t e d I d a h o K - 1 2 b u i l d i n g s . AP P E N D I X V ( c o n t i n u e d ) GO V E R N O R ' S M E S S A G E "T e p r i m a r y p u r p s e o f t h i s p r o c t i s to r e d u c e e n e r g y b i l l s i n K - 1 2 s c h o o l di s t r i c t s s t a t e w i d e , t h e r e b y av o i d i n g t h e co s o f p u r c h a s e d e n e r g y . A r e d u c t o n In e n e r g y u s e I n e x i s t i n g b u i l d i n g s w i l l re d u c e m a r k e t v o l a t i l i t i n t h e p u r c h a s e of e n e r g y , p r o v i d i n g d i s t r i c t s g r e a t e r se c u r i i n p l a n n i n g b o t h s h o r t a n d l o n g - te r m e n e r g y b u d g e t s . "A N t h i s w o r k w i l l b e n e f i t n o t j u s t y o u r di s t r i c t b u t a l l o f I d a h o , s i n c e b o t h y o u r st a t e a n d l o c a l t a x d o l l a r s p a y t h e he a t i n g a n d c o l i n g b i l s f o r s c h o o l s . A n th e p r o j e c t w i l l p r o v i d e o n g o i n g b e n e f i t s in t e r m s o f c o f o r t , d u r a b i l i t y a n d b e t t e r eq u i p p e d a n d t r a i n e d s t a f f f o r o u r p u b l i c sc h o o l b u i l d i n g s . U l t i m a t e l y , a l l t h a t W I L L me a n h e a l t h i e r l e a r n i n g e n v i r o n m e n t s f o r ou r c h i l d r e n . " Fo r m o r e i n f o r m a t i o n , v i s i t t h e O E R we b s i t e a t h l t : / l w w . e n e r o y , i d a h o , g o y . Si n c e r e l y , Cf d ~ ~ C. L . " B t c h " i ' vu e , G o v e r n Id a l i o Of f c e _ f E n e r g y R . e s o u r c e s e- - ~~ a n d R e i n v e s t m e n t A c CO s t a s s o c i a t e w i l l t h i s p u b l i c a t i o n a r e a v a A a b l e f r th e I d a h O f f c e o f E n e r y R e s u c s I n a c c o r a n c e w l i i Se c t l E l l ) 2 0 2 , I d B h o C o , O E R . Q 7 . Q 1 , 5 0 0 Appendi W - Energy-related legislation since creation of 2007 Idaho Energy Plan Idaho Energy Legislation 2007 Biofuel infrastructure investment, income tax creditH0177 - Ch.165 Biofuel Infrastructure/Fuel Independence Act . . . H0150 - Ch.185 Electric facili ties, j oint participation by cities . H0030 - Ch. 28 Electric transmission facility, siting, certificateH0152 - Ch.186 Energy Facility Site Advisory Act. . . . . . . . .H0154 - Ch.164 Energy Resources Authority, operations, investmentsH0032 - Ch.107Wind energy electrical production, tax .H0189 - Ch.143 Energy Facility Site Advisory Act. . . . . . . . .H0154 - Ch.164 2008 Energy facility, commercial purpose, endowment landsH0500 - Ch.115 Geothermal energy electrical production, tax . . . H0529 - Ch.227 Energy Efficient State Buildings Act. . . . . . .H0422 - Ch.274 Energy savings performance, facilities, contractorsH0556 - Ch.366 Energy-producing materials, sales tax exemption. . H0561 - Ch.233 2009 Energy~efficient school building design .......... S1132 - ch.145 APPENDIX X Idaho Statutes TITLE 33 EDUCATION CHAPTER 10 FOUNDATION PROGRA -- STATE AID -- APPORTIONMENT 33-1019.ALLOCATION FOR SCHOOL BUILDING MAINTENANCE REQUIRED. (1) School districts shall annually allocate moneys for school building maintenance from any source available to the district equal to at least two percent (2%) of the replacement value of school buildings, less the receipt of state funds as provided in this section. Any school district expending more than four percent (4%) of the replacement value of school buildings for school building maintenance in any single fiscal year, beginning with the expenditures of fiscal year 2005, may apply the excess as a credit against the two percent (2%) requirement of this section until such credit is depleted or fifteen (15) years have expired. The state shall annually provide funds to be allocated for school building maintenance as follows: (a) Di vide one (1) by the school district's value index for the fiscal year, as calculated pursuant to section 33-906B, Idaho Code; and (b) -Multiply the result by one-half of one percent (0.5%) of the replacement value of school buildings. (c) For purposes of the calculation in this subsection (1), public charter schools shall be assigned a value index of one (1) . (2) State funds shall be appropriated through the educational support program/division of facilities and disbursed from the school district building account. The order of fundingsources used to meet the state funding requirements of this section shall be as follows: (a) State lottery funds distributed pursuant to section 33- 905 (2), Idaho Code; (b) If state lottery funds are insufficient to meet the state funding requirements of this section, then other state funds available pursuant to section 33-905 (3), Idaho Code, shall be utilized; and (c) If the funds in paragraphs (a) and (b) of this subsection (2) are insufficient to meet the state funding requirements of this section, then funds available pursuant to section 33-1018B, Idaho Code, shall be utilized. (3) Moneys allocated for school building maintenance shall be used exclusively for the maintenance and repair of school buildings or any serious or imminent safety hazard on the property of said school buildings as identified pursuant to chapter 80, title 39, Idaho Code, and shall be utilized, first, to abate serious or imminent safety hazards, as identified pursuant to chapter 80, title 39, Idaho Code. Unexpended moneys in a school district's school building maintenance allocation shall be carried over from year to year and shall remain allocated for the purposes specified in this subsection (3). The replacement value of school buildings shall be determined by mul tiplying the numer of square feet of building floor space inschool buildings by eighty-one dollars and forty-five cents ($81.45). Notwithstanding the definition in subsection (8) of this section, school buildings that are less than one (1) year old on the first day of school shall not be used in the replacement value calculation. The joint finance-appropriations committee shall annually review the replacement value per square foot when setting appropriations for the educational support program and may make adjustments to this figure as necessary. (4) For school buildings first occupied between July 1, 2009, through September 30, 2019, regarding the replacement value calculation that school districts are directed to use to determine the amount of moneys such districts shall allocate for school building maintenance as directed by subsection (1) of this section, a portion of the square footage of school buildings first occupied on or after July 1, 2009, and constructed pursuant to the provisions of section 33-356, Idaho Code, shall not be used in the replacement value calculation, based on the following schedule: (a) For school buildings at least one (1) year old but less than two (2) years old on the first day of school, exclude one hundred percent (100%) of the square footage; (b) For school buildings at least two (2) years old but less than three (3) years old on the first day of school, exclude eighty percent (80%) of the square footage; (c) For school buildings at least three (3) years old but less than four (4) years old on the first day of school, exclude sixty percent (60%) of the square footage; (d) For school buildings at least four (4) years old but less than five (5) years old on the first day of school, exclude forty percent (40%) of the square footage; and (e) For school buildings at least five (5) years old but less than six (6) years old on the first day of school, exclude twenty percent (20%) of the square footage. (5) The amount of relief provided to any school district pursuant to subsection (4) of this section shall not exceed the amount that would be provided if the school district had a valueindex of one (1). (6) School districts shall submit the following to the state department of education by not later than December 1: (a) The numer of square feet of school building floor space; and (b) The funds and fund sources allocated for school building maintenance and any unexpended allocations carried forward from prior fiscal years; and (c) The projects on which moneys from the school district's school building maintenance allocation were expended, and the amount and categories of expenditures; and (d) The planned uses of the school district's school building maintenance allocation.The state department of education shall transmit a sumary of such reports to the legislature by not later than January 15 of the following year. (7) If a school district that is participating in the relief provided for in subsection (4) qf this section is forgiven the requirement to allocate the school district portion of the moneys for the two percent (2%) of building replacement value for building maintenance provided in subsection (1) of this section, then once the requirements of subsection (1) of this section are reinstated, the provisions of subsection (4) of this section shall recommence from the time the forgiveness took effect. (8) For the purposes of this section: (a) "Annually" means each fiscal year. (b) "School building" means buildings that are owned by the school district or leased by the school district through a lease- purchase agreement and are regularly occupied by students. (c) "School district" means a school district or public charterschool. The Idaho Code is made availble on the Internet by the Idaho Leslature as a public servce. This Internet version of the Idaho Code may not be used for commercial purposes, nor may ths database be published or repackaged for commercia sale without express written permssion. The Idaho Code is the property of the state of Idaho, and is copyrighted by Idaho law, i.e. § 9-350. According to Idaho law, any person who reproduces or distributes the Idaho Code for commercial purposes in violation of the provisions of this statute shall be deemed to be an infinger of the state of Idaho's copyright. APPENDIX Y - Text of proposed rules IDAPA 07 - DIVISION OF BUILDING SAFETY 07.03.01 - RULES OF BUILDING SAFETY DOCKET NO. 07-0301-0903 NOTICE OF RULEMAG - PROPOSED RULE AUTHORITY: In compliance with Section 67- 5221(1), Idao Code, notice is hereby given tht this agency has intiated proposed rulemakg procedures. The action is authorized puruat to Section 33-356 and 67-2601A, Idaho Code. PUBLIC HEARG SCHEDULE: Public hearg(s) concerning ths rulemakg will be scheduled if requested in wrtig by twenty-five (25) persons, a political subdivision, or an agency, not later than October 21,2009. The hearng site(s) wil be accessible to persons with disabilities. Requests for accommodation must be made not later than five (5) days prior to the hearg, to the agency addrss below. DESCRITIVE SUMY: The followig is a nontechncal explanation of the substace and purose of the proposed rulemakg: A new section of the Idao Code codified at Section 33-356 was passed by the legislatue in 2009, which provides fiancial incentives for school distrcts to use integrated design and fudaental commissionig building practices in the constrction of school buildig facilities. Puuant to that statute, the adminstrator of the Division of Buildig Safety is required to promulgate rules which provide guidance and technical information for school distrcts, as well as rules governing an anual optiization review to ensure optial energy penormance of buildig systems. The rule would provide notice of the availability of gudace, educational, and techncal support to school distrcts to implement the processes of integrated design and fudaental commssionig, as well as the availability 6f a list of all thd par commissionig agents in the state; provide for a process of performg and cering the anual optimization review to ensure energy effciency; and provide for certfications regarding quaification of schools for the building replacement value calculation. FEE SUMY: The following is a specific description of the fee or charge imposed or increased: N/A FISCAL IMP ACT: The followig is a specific description, if applicable, of any negative fiscal impact on the state general fud greater than ten thousand dollar ($10,000) durig the fiscal year resultig from ths rulemakg: None. NEGOTIATED RULEMAG: Pusuant to Section 67-5220, Idao Code, negotiated ruemakg was not conducted because of the simple nature of the rulemakg. ASSISTANCE ON TECHNICAL QUESTIONS, SUBMISSION OF WRTTEN COMMNTS: For assistace on techncal questions concerning the proposed rule, contact Steve Keys, Deputy Admstrator - Operations, (208) 332-8986. Anyone may submit wrtten comments regardig this proposed rulemakg. Al wrtten comments must be diected to the undersigned and must be delivered on or before October 28, 2009. DATED ths 28th day of August, 2009. Steve Keys Deputy Administrator - Operations Division of Building Safety 1090 E. Watertower St. Meridian, il 83642 Phone: (208) 332-8986 Fax: (208) 855-2164 DIVSION OF BUILDING SAFETY Docket No. 07-0301-0903 Rules of BuDding Safety Proposed Rulemaking Idaho Adminstrative Buletin Page 157 October 7, 2009 - Vol. 09-10 THE FOLLOWIG IS THE PROPOSED TEXT FOR DOCKET NO. 07-0301-0903 038. INTEGRATED DESIGN AND FUNDAMNTAL COMMSSIONING. 01. Definitions. The following defitions are intended to supplement, and should be read in conjunction with the defintions contained in Section 33-356, Idao Code. () a. Fundaental Commssionig. A quality-focused process for enhancing the delivery of a project. It makes use of a qualified thd par employed directly by the buildig owner. ( ) b. Integrted Design. Integrated design refer to a collaborative design effort in which each of the individual architectul or engineeng professionals focuses on the whole buildig approach, with an emphasis on optimizing the building's pedormance, environmenta sustainability, and cost-savigs, to include cliate, use, loads and systems resulting in a more comfortble and productive environment, and a building that is more energy-efficient than would be realied using curent best practices. ( ) 02. Techncal and Educational Information. Techncal and educational iiormation related to integrated design and fudaenta commissionig in the form of the American Institute of Architects Integrated Project Delivery Guide; Portand Energy Consation, Inc. (PECI) Commissionig Guides; ASHRA Guideline 0- 2005- The Commssionig Process; and the Nortwest Energy Effciency Aliace Integrated Design Special Focus on Energy Pedormance Guide is available at the Division offce locations includig 1090 E. Watertower St., Meridian, Idao 83642, and 1250 Ironwood Dr., Ste. 220, Coeur d'Alene, Idao 83814. A building commissioned under the prescriptive approaches defined by any of the above-named national organzations is deemed to have completed the Fundamental Commissionig process. ( ) 03. Commissioiung Agents. The Division has compiled and made available for public examination a list of all known thd pàr buildig commissionig agents in Idao and its contiguous states. The Division has ensured that all such commissioning agents appearg on ths list have been certfied by the Building Commssionig Association (BCA) or other similar certfyg entity. () 04. Anual Optiation Review. ( ) a. A public school buildig which quafies for the school buildig replacement value calculation puruant to Section 33-356(5)(a), Idao Code, shal undergo an anual optimation review each year followig the fit year of operations tht the involved school distrct seeks to qualify such building for the buildig relacement value calculation. ( ) b. The systems with a buildig required to undergo anual optiation review, as well as any relevant measurg criteria for such systems, shall be formulated by the thd par commissionig agent that pedorms the initial fudaental commissionig. The school distrct shall be provided with a wrttn report from the commissioning agent identifyg the systems which wil be subject to the anual optimization review along with any other requirements. () c. The report required above in Pargraph 038.03.b. of these rules shall include, but is not lited to, at least the following: () i.. Verification that the heatig, ventilation, and air conditioning (HV AC) controls, dapers, valves, senors and other equipment used to control the syste are fuctioning as they were at the commissionig of the building. ( ) ü. Verfication that the lightig controls are fuctionig as they were at the commssionig of the buildig. ( ) iii. The requirement that any changes made to any of the controls contained on the agent's list aftr the intial commissionig be re-set back to the commssioned settgs uness it can be demonstrated that the new settgs result in greater energy effciency. ( ) d. The anual optimization review shall be pedormed by persons qualified to make the required determintions and adjustments. ( ) e. The school distrct shall submit to the Division wrtten verification indicatig that the systems identified by the commissionig agent, includig those identified in this Section are fuctionig as they were at the initial commssionig. Such wrtten verfication shall also identify the persons pedorming the optiation and their qualifications. ( ) 05. Commssioiung Aniuversary Date. The date upon which the commissionig agent provides the school distrct with the requied wrtten report described in Paragrph 038.03.b. of these rules shal be the commissionig anversary date for puroses of ths Section. If a school distrct seeks to qualify a building for the building replacement value calculation, the anual optiization review shall be pedormed with th (30) days of the anual commissionig anversar date followig the fist year the building is in operation. The wrttn verfication required by Pargrph 038.03.e. of these rules shall be received by the Division not later th sixty (60) days after the anual commssionig anvers date. () 06. Fundamental Buiding Commissionig Requiements. ( ) a. School distrcts seeking to qualify a buildig for the building replacement value calculation shall engage a building commssionig agent. ( ) b. The commissionig agent must document the owner's requirements for each commssioned system in the facility. Al HV AC and controls systems, duct work and piping, renewable and alternative technologies, lightig controls and day lightig, waste heat recovery, and any other advanced technologies incorporated in the building must be commissioned. Building envelope systems must also be verified. The owner's requirements for these systems may include effciency tagets and other pedormance criteria such as temperatue and lightig levels that wil derme the pedormance criteria for the fuctional pedormance testig tht occurs prior to acceptace.( ) c. The commissionig agent shall include commissionig requirements in the project constrction documents. Ths includes the scope of commissioning for the project, the systems to be commissioned, and the varous requirements related to schedule, submittl reviews, testig, tring, 0 & M manuals, and wartý reviews. ( ) d. The commissionig agent shall develop and utilize a commissioning plan. This plan must include an overview of the commissioning process for the project, a list of commissioned systems, priar commissioning paricipants and their roles, a communication and management plan, an outline of the scope of commssionig tasks, a list of work products, a schedule, and a description of any commissionig testig activities. ( ) e. The commissioning agent must submit a report to the owner once the commissionig plan has been executed. ( ) 0389. -- 999. (RSERVED). APPENDIX Z c THE CALDWELL SCHOOL DISTRICT Building energy-efficient, high-performing schools Van Buren Elementary Financially responsible and environmentally conscous. Caldwell is taking control of energy use. . E nerg-srt building choices can signifUy reduæ openg cots and crate bett place to Ieam and teach. The Caldwell Scool Disct is pro to be the fi schoo distnct in Idaho to tae energ-sart building to one of the highest nationl rating leels. CaU is aetingthe net generatin of school building. CAlDWELL FACT: The Caldwell School Dislrct antiipates saving 30 percnt in fute energy cost by cotrctng Wash- ingtand Van Burn elementary scoo with energy savng feature. NATIONAL FACTS: Schoos spen mor 1Ian $6 bilion a year on energy and abou 25 pecent of th dolla could be save by being smart abou energ, accrding to the U.S. De- partent of Ener. In mo scfools, enrgy co are secnd only to salari and exee the cot of supplies an bos. OUR MESSAGE: Energy sang innotion in building sch wiD great improve a teer's abilit to do their jo and a chllds ability to lea. Teacrs and s~cInts will brthe heaUhie air and work in more comfrtbl conditons and be more succsfL. VAN BUREN FACTS *Ab 600 stdents in graes K-5 will attnd in th fal of 2009 (89 perc fa be th pove line; 70 pent are Hispani) * Studnts at Van Bure ha for the pa two year achiev Adequte Yeaity Prgres (AVP), an acdemic benchmark esb- lished by the feera government *The new scools 70,000 squa feet and wi. cot $12 million, which iscoraJe to other re coct prec in the Treasre Valey. * Th CS took adntae of a deign~ull pros wh profesals woked tDgethr to enure syms wee inra and th work wa done swy. * The CSD tok advge of energ-sving pemal' c0 tr and enrging inænt prrams offere by Idah Pow that will revn thouans of doll to the diic * The CSD tok advae of Idao's Off of Ener Re- sourc, whic ha staff fud on helping schoo find fuding and resourc fo encint buildin. APPENDIX AA OFFICE OF ENERGY RESOURCES PAUL KJLLADER Administrtor 322 East Front Str. P.O. Sox 83720 Boise. Idaho 83720 C.L. "BUTCH" OTTER. Govemor (208) 287-41 . FAX (208) 287-6713 c MEMORAUM OF UNERSTANING . By and among The Idao Offce of Energ Resources, Idaho Power Company, The Amalgamate Sugar Company, LLC , October 9, 2009 Ths Memoradum of Undertadig (MOD) is entered into by the Idao Offce of Energy Resources (OER), Idaho Power Company (!C), and the Amalgamated Sugar Company (ASC), refered to herin as "the Pares," for the purose of explorig the feaibility of a Combined Heat and Power (CHP) project to be located at the Amalgamated Sugar Company's Nampa, Idaho site. The purose of ths MOU is to set fort undertadings with respect to a contemplated opportty, that if found feasible with the context of Idaho Power's Integrted Resource Plang process, a CHP facility may be built at the ASC's Nampa site. The Idaho Offce of Energy. Resoures reêgnzes the potential benefits of ths proposed project to improve Idao's energy resource portfolio, increase source energy utiization effciency, and reuce envionmental impacts. Moreover, the proposed CHP project to be examed conform with the goals ofOER's Combined Heat and Power program, which is to foster development of such projects. Iii order to explore the feaibilty of ths potential project the pares do agree to the folloWigrectas: . i. The Idao Offce of Energy Resoures herby comits up to $20,000. of its Deparent of Energy (DOE) Industal Technologies Prgr (l) grt monies to co-fud contractg of the consulting experise necssa to condut the feaibilty anyses, the costs of which are to be shaed eveny betee OER and ipe. Jeff Brooks wil be OER's projec mager. CHP MOU JB,OER Pagel 2. Idao Power hereby commits up to $20,000 to co-fud the costs for the consultant contrct(s) necessar to conduct and complete the feasibilty anlyses, the costs for which are to be shared evenly between OER and IPC. Karl Bokenkamp wil be Idaho Power's project manager. 3. Amalgamated Sugar agrees to faciltate the feasibilty analyses process by providing site and inormation access to accurately determine costs, benefits and operational requirements of such a project. Mr. Eric Erickson will be the project manager for ASC. 4. Idao Power and The Office of Energy Resources wil jointly select the consulting contractor(s) to perform the feasibilty analyses. Idao Power wil be responsible to insure that the consultat contract language contains end-product specifications necessar for input to Idaho Power's Integrted Resource Plan process. Idaho Power and OER wil jointly develop contrctor payment milestones and jointly approve payments for completed milestones. OER wil provide Idao Power with copies of all consultat invoices for the project, so contrctor costs payment can be accurtely shad between the paries. Each Par hereby acknowledges their shared goals and individual responsibilties contained in ths Memorandum of Uriderstanding and agree to fulfill their commitments as so set fort in good faith. It is fuher agreed that the goal of ths effort is to complete the feasibility analyses in a reasonable timeframe of 6 months or less, which requires that each par respond to their commitments in a timely maner that does not unduly delay progress. IN WITNESS THEREOF, the Paries hereby execute ths Memorandum of Understanding to become effective upon the last date wrtten below. By: Date: Joe Huff Title: Chief Operating Offcer Amalgamated Sugar Company, LLC By: Date: Dan Minor Title: Executive Vice President, Operations Idaho Power Company By: Date: Paul Kjellander Title: Administrator Idaho Office of Energy Resources CHP MOU JB,OER Page 2 APPENDIX BB 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 .23 24 25 26 27 28 f 29 30 31 32 33 34 35 36 37 38 Sixtieth Legislatue LEGISLATUR OF TH STATE OF IDAHO First Regular Session. 2009 IN TH SENATE SENATE BILL NO. 1123 BY STATE AFFAIS COMMTTEE AN ACT RELATING TO PUBLIC UTILITY RATES; AMNDING CHATER 5, TITLE 61, IDAHO CODE, BY TH ADDITION OF A NEW SECTION 61.541, IDAHO CODE, TO DEFIN A TERM, TO PROVIDE THT PUBLIC UTITY COMMSSION BINING RATEMAG TRATMENTS AR APPLICABLE WHN COSTS OF A NEW ELECTRC 'GENERATION FACILIT AR'INCLUDED IN RATES, TO PROVIDE PROCEDURS AND TO PROVIDE FOR RULES. Be It Enacted by the Legislatu of the State of Idaho: SECTION 1. That Chapter 5, Title 61, Idaho Code, be, and the sae is hereby amçnded by the addition theret of a NEW SECTION, to be known and designated as Section 61.541, Idaho Code, and to read as follows: 61-541. BINING RATEMAG TRATMNTS APPLICABLE WHN COSTS OF A NEW ELECTRC GENERATION FACILITY AR INCLUDED IN RATES. (1) As used in' this section, "certificate" means a certificate of convenience and necessity' issued undersection 61.526, Idaho Code. . (2) A public utilty that proposes to constrct, leae or purchase an electrc genertionfacilty or transmission facilty, or make major additions to an electric generation or transmission facilty, may file al application with the commission for an order speifying in advance the ratemakg treatments that shall apply when the costs of the proposed facilty are included in the public utilty's revenue requirements for ratemakg púrposes. For puroses of this section, the requested ratemakg treatments may include nontraditional ratemakg treatments or nontraditional cost recovery mechanisms. (a) In its application for an order under this section, a public utilty shall describe the need for the proposed facilty, how the public utilty addresses the risks associated with the proposed facilty, the proposed date of the lease or purhas or commenceent of constction, the public utility's proposa for cost recovery, and any proposed ratemakg. treatments to be applied to the proposed facilty. . (b) For puroses of this section, ratemakg tratments for a proposed facilty include but are not limited to: (i) The retu on common equity investment or method of determining the retu on common equity investment; (ii) The depreciation life or schedule; (ii) The maxmum amount of costs that the commission wil include in rates at the time determined by the commission without the public utilty having the burden of moving forward with additional evidence of the prudence and reasonableness of such costs; (iv) The method of handling any variances between cost estates and actual costs; and 2 1 (V) The treatment of revenues received from wholesale purchasers of service 2 from the proposed facilty. 3 (3) The commission shall hold a public hearing on the application submitted by the 4 public utility under this section. The commission may hold its hearing in conjunction with an 5 application for a certificate. 6 (4) Based upon the hearing record, the commission shall issue an order that addresses 7 the proposed ratemaking treatments. The commission may accept, deny or modify a proposed 8 ratemaking treatment requested by the utilty. In determining the proposed ratemaking 9 treatments, the commission shall maintain a fair, just and reasonable balance of interests 10 between the requesting utility and the utility's ratepayers. 11 (a) In reviewing the application, the commission shall also determine whether: 12 (i) The public utilty has in effect a commission-accepted integrated resource plan; 13 (ii) The services and operations resulting from the facilty are in the public 14 interest and wil not be detrimental to the provision of adequate and reliable15 electric service; 16 (iii) The public utilty has demonstrated that it has considered other sources for' 17 long-term electric supply or transmission; 18 (iv) The addition of the facilty is reasonable when compared to energy effciency, 19 demand-side management and other feasible alternative sources of supply or20 transmission; and 21 (v) The public utilty paricipates in a regional transmission planning process. 22 (b) The commission shall use its best efforts to issue the order setting fort the 23 applicable ratemaking treatments prior to the date of the proposed lease, acquisition or 24 commencement of constrction of the facilty. 25 (c) The ratemaking treatments specified in the order issued under this section shall be 26 binding in any subsequent commission proceedings regarding the proposed facility that is 27 the subject of the order, except as may otherwise be established by law. 28 (5) The commission may not require a public utility to apply for an order under this 29 section. 30 (6) The commission may promulgate rules or issue procedural orders for the purpose of 31 administering this section. APPENDIX CC - Retail rate for net meterig customers IDAHO PUBLIC UTILITIES COMMISSION Case No. IPC-E-06-17, Order No. 30227 January 30,2007 Contact: Gene Fadness (208) 334-0339 Website: ww.puc.idaho.gov Net metering customers wi contiue to get retail rate Net-meterng customers ofIdaho Power Company who generate their own electrcity and sell their surlus back to the company wil continue to be paid the full retail rate rather than a wholesale rate. However, an order recently issued by the commission allows the company to include power supply expenses associated with the net meterng customers in its anual power cost adjustment (PCA) process for possible recovery from ratepayers. Idaho Power has about 27 residential and small-business customers who offset their own power consumption by generating their own power with small hydro, wind or solar projects. Another 13 customers have pending requests for net-meterng generation interconnects. In August, Idaho Power filed an application with the Idaho Public Utilities Commission to pay net-meterng residential and small business customers an amount equal to about 85 percent of the wholesale market rate for electrcity rather than the full retail rate. In December, the company modified its application to leave the rate paid for excess generation the same. The final order issued by the commssion leaves the rate the same, but grants Idaho Power's request to recover expenses associated with the net metering program though its anual power cost adjustment process. The order also grants the company's request to remove a financial impediment for customers in classes other than residential and small-businesses to paricipate in net meterng by removing a requirement that those customers have a second meter. In its origial application, Idaho Power assered that excess generation from residential and small-business net metering customers is "non-firm," or interttent. Thus, those customers should be paid the same rate - a lower wholesale rate - as all sellers of non-firm energy. Under the curent system of paying full retail rate for excess generation, Idaho Power said it does not recover its full costs of providing serice to net meterng customers and that those costs are shifted to the remaining residential and small-business customers who do not have net metering. Customers do get the full retail rate for all the energy that offsets their own consumption, but, the company believes that generation in excess of the customer's consumption should be viewed differently. The commission said the amount of excess generation sold back to the company by net meterng customers is not substantial enough to warant a revision to the tarff. The cumulative capacity of existing net metering projects is 336 kilowatt-hours and the total amount paid for the projects' excess generation over the past 12 months was $23,102. "Ifthis increased substantially, it would be necessar to reconsider the pricing of excess generation. There is no need for that reassessment at ths time," the commssion said. The commission cautioned potential net meterg customers agaist relying on continuation of the curent tarff when calculating their investment in net meterg projects. "We must note that the net meterng program price is a tarff rate. It is not a contract rate. As a taff rate, it is subject to change," the commssion said. "A peruaive arguent could be made that net meterng customers are being subsidized by other customers." A full text ofthe commssion's order, along with other documents related to this case, are available on the commission's Web site at www.puc.idaho.gov Click on "File Room" and then on "Electrc Cases" and scroll down to Case No. IPC-E-06-17. APPENDIX DD MEORAUM OF UNERTANINGBETW TH STATE OF IDAHO AN IDAHO NATIONAL LAORATORYON ADV ANClG ECONOMIC PROSPER AN ENONMAL SUSTAIABn.TY THOUGH ENGY SECU Ou natiai secty an way of lie deon stble, se aforble an eneny reble energy reou. En th fo Idao an debly cotig to UnedSta energy sety thgh th adcemt of scienee solution is the focu of th Meradu ofUnder (MOU). L Background Th economy and citi of Ido have bee th benfi of ver affble an relileenergy supplies for dede. As reoi iitiçm an globa en maket evolve Ida's busineses and cits wi be chen to mainain th highy comtive energy poitin . enjoye in th pas.. . iMee th chenge wil re.deopin a sound energy portolio in Ido tht inludes divere engy resurce an pr meod tht (l) provde the highes vaue to th citize of Ido, (2) enures qu stds of envinmenta reou, an (3) fucton as an efecve secur and stble ener syte whie engig Ida citi to use engy in th mos efie way pole As th State buids an energy porlio to mee the demands of th cog de, ther is an opor to sitaeously bud ne, high-vaue busineses in Id based on inovtiveenergy exon coverion trpo an us for local regional an nation ma. Ido ishome to signcat rene engy reou, cnticay impo engy dibuton cor enen engy busi, an world-cl energy syem reea delopent, æs and deonstron progr at th Ida Nationa Laborto. Id's neibog stte. an Ca prvice poses world-css fo engy, urum an reewable engy reour, an crticay imort ener trsion cordor. See reonengy deelopment pahi foced on invative ways to mae th value of these resource is a signca opporty for Ida, th Rock Moun Regon øn the nation an is an esenl elemt ofth agren. IT Pupose The purose of th MOU is to establi a long-ter parerp beee the State ofIdo (State) an the Ido Nationa Laborto (I) tht wi ret in a sound an sece engy futue fo Idao and deonsbly contribute to Unite State energy secty. Th agrent also defes th :fork and mechanism by whi th State an IN will condu th parp. Ke goal associated with the State / IN pahip, esblied tbghthis MOU, inlude: . .. · Developing an implementig mechanisms to prvide inortion, data and advice necessar for the citien, leader, relator an other staeholder to ma inored decisions regag energy prodon, trssion and use, includi technology an imact issues; · Deeloping inovative approaches to energy exaction, converion and trmision tht wi benefit Idaho, the region and the nation; · Developing regiona parerps betee public, prvate, fedeal an trbal entities, to enance energy-based economic deelopment an energy securty localy, regonay and nationay; · Enin Idaho citize' and staoldes' knowledge about local regional and national energy chllenges and opportties, inludi ways to produce and use energy more effciently and wisely; · Providig regutor agenies and staeholder with credble facts and data about energy development options, appoaches and tehnologies proposed for implementation in Idao and the region; · Developing new energy-related busess, reeah, delopment and demonsation projec in Ida, includi pnvate secto and feder investments; and · Enhing Idaho's abilty to deelop and attct an outstadi energy businss workforce. m. Collaboration i) Jointly, the State and IN will: · Establih an Energy Invations Extive Roundtble, chired by senor State and Laboratory offcia, fo th purose of focing on loca regina an nationa oppores in ener-system developmet; · Establi vauable regiona stteto-stte and stateto-prvice parershps based on common economc and enviental inerests and coplita stengt fo the purse of mazi the vaue of regiona engy reources, businesses an workforce for loca regiona and nationa stakeholders whie protectig regiona envionmen an natu resources and quality of life; · Develop and implement public and steholder outreach mechasms for the purose of education, awaress and enement of Idao's imge locally, regionally and nationay in the ar of energy producton an use issues. · Integrte unverities in Idao though the Center for Advaced Energy Studies (CABS) to support State and regional reseach opportties. ü) The IN wil: · Promote the key goals, object and mechms as arcuted in th MOU with loc regiona and nationa staolder. · Provide professiona an tehn assie to the Stat of Idao, Offce of Energy Resources and other stae agencies, inludig, but not lited to, suppor for the Idao Strtec Energy Alance Council, Boad, an Task Groups and relted or correlate activities to ene inormed enrgy-related decisions by state goverent. · Work with State offcials, where appropriate to provide assistace in attctg high-value energy reource industr to Idao. il) The State ofIdao wil: · Promote the key goa, objectives, an mechasms as arcuatein th MOU with loca, regona an nationa staeholde. APPENDIXEE C.L "BUTCH" OTTER GOVERNOR BX DBAITK STATB OF lIMBO BOIS EXCUIV ORDER NO. 2007-21 ESTABLISHING APOUCY TO REDUCE FOSSIL FUEL USE AN GREENHOUSE GAS EMISSIONS FROM STATE VEHICLES WHEREAS, the State of Idaho has demonstrated leadership by establishing policies to redue air pollution, wastejùl, uneconomical and unnsary uses of energ and greenhoue gas emissions caued by state governent; and WHEREAS, emisions from vehicles are a major source of greenhouse gas gases in Idaho as well as a major source of air pollution in Idaho's urban are; and WHEREAS, to perform their duties and servce the citiens State of Idaho deportents, offces and agencies own or lease a signifèant fleet of motor vehicles; and WHEREAS, the State of Idaho can and should lead by example managing its state vehicle fleet to improve and protect air quality, redue greenhouse gas emissions and rece the amount offossiljùels purchaed and used; and WHEREAS, reducingfossil.fel use and increasingjùel effciency in the state's vehicle fleet wilInot only reduce greenhouse gas and air pollutant emissions but will also maimize effciency in state governent operations and reduce annual operating costs; NOW, THEREFORE. i, C.L "BUTCH" OTTR, Govemorofth State of Idaho, by the authority vested in me under the Constitution and the laws of the State of Idaho do hereby order the following: 1. All executive branch departments, agenies and offes of the State of Idaho shall decree the amount of gasoline an diesel used in State vehicles by: a. increasing the .fel economy of its vehicles; b. increasing the operating effciency; and c. reucing the number of miles driven by employees. 2. All extive branch departments, agencies and offces of the State of Idaho shall limit the purchae or lease of four-wheel drive sport utility veicles an similar specialty vehicles to situatins where there is a clear busines need or the mision of the entity requires such vehicles. . 3. All executive branch deprtents, agencies and offces of the State of Idaho shall give priority to the purchase and use of hybrid gas/electrc and other jùel effcient/ow emision and ne petrleum effcient technology vehicles. 4. The Division of Purchaing wil mak available to all departnts and agencies a list of available vehicle purchaing contracts, which will identif vehicles that meet the reqirements of this execve .order. Any purchase outsde this list wil need written justifcation signd by the diretor or administrator of the entity. 5. The Division of Purchasing will provide the Department of Environmental Quality and Ofce of the Governor a quarerly vehicle puchaing rert. ~-BE~ SECRETARY OF STATE IN WITESS WHEREOF, I have hereunto set my hand and caused to be affed the Great Seal the State of Idaho at the Capitol in Boise on this day of December in. the year of our Lord two thousand and seven, and of the Independence of the United States of America the two hundred thirty-second and of the Statehood of Idaho the one hundred eighteenth. c.L. "BUTCH" OTTR GOVERNOR Co r a c t D e I v D a En g l . . _ c a o n o n f l "v i / O Bl d . . . . _ T o t R _ C W I o El P O ' SB P O ' Orr Da (N L T ) ( + t d e a u l l Ag c y Ma . ß u l a r e Ma Mo d D r C a t g o Ty p (V e t o t R . . . d l Oi r T o t Vl h l c C O O 8a n g a l Bl d _ _ 1 El 1 4 9 0 SB P 1 3 0 11 l 3 21 1 l IC he e I Ma l b u H) 'l D MD S D N H) NR $2 3 , 3 0 . 0 0 3. 3 0 . 0 0 $0 . 0 0 $2 , 3 1 . 0 0 El I 4 9 1 SB P I 3 0 11 l 3 21 1 l ic B V I GM C sM Pa s V a n AW D Mv a n FF V NR $4 5 , 4 7 8 . 0 0 $2 , 1 3 9 . 0 0 $1 1 , 0 0 . 0 0 $5 8 . 7 8 . 0 0 El I 4 9 SB P 1 2 l ll n l 2 2~ IC Fo E 35 .2 W D FS V a n Ga Ve s $1 . 9 , 1 7 3 . 0 0 $1 9 , 1 7 3 . 0 0 $7 , 8 . 0 0 $2 , 7 7 3 . Q O El 1 4 9 3 S8 1 3 0 11 / 1 3 1 31 1 1 1 2 DB S GM C Sl 15 0 4W D LO T FF V NR $2 . 2 . o o $2 . 0 0 $8 . 5 . 0 0 $2 , 7 3 2 . 0 0 El 1 4 9 4 S8 1 3 0 11 / 1 3 1 2/ 1 8 1 ID F G . GM C Si e a 15 0 4W D LO T FF V NR $4 6 8 . 6 3 U O $2 1 . 3 0 1 . l l $1 4 3 , 0 0 . 0 0 $8 1 1 . 6 3 . 6 0 ElP O I 4 9 4 .S B P O I 3 0 11 / 1 3 1 2/ 1 8 1 ID F G GM C SI 15 0 4W D LO T FF V NR $4 , 6 3 . 2 0 $2 1 , 4 1 . 8 0 $1 2 3 , 5 . 0 0 $5 1 3 4 . 2 0 El 1 4 9 4 S8 1 3 0 11 / 1 3 1 2/ 6 / ID F G GM C SI 25 4W D LO T Ga s Ve s $2 , 3 1 6 . 2 $2 , 1 0 9 . 6 9 $7 8 , 0 0 . 0 0 $3 . 3 1 6 . 2 El 1 4 9 4 S8 1 3 0 11 / 1 3 1 2/ 1 6 1 0 0 ID F G GM C Si e r 25 4W D LO T Ga Ve s $2 e , 3 0 . 5 9 $2 4 , 2 9 . 6 9 $7 1 , 5 0 . 0 0 $3 7 , 8 0 . 5 9 El 1 4 9 4 S8 1 3 0 11 / 1 3 1 2/ 1 8 1 ID F G GM C Si r r 15 0 4W D LO T FF V NR $4 8 , 6 4 7 . 1 8 $2 4 , 4 2 3 . 5 9 $1 3 . 0 0 . 0 0 $8 1 , 6 4 7 . 1 8 El 1 4 9 4 S8 1 3 0 11 / 1 3 1 2/ 1 8 1 ID F G GM C Vu k n 25 0 0 4W D 5U Ga Ve s $3 . 7 5 6 . 1 1 $3 , 7 5 6 . 1 1 $8 , 0 0 . 0 0 $3 8 , 7 5 6 . 1 1 EX P O I 4 9 4 SB P o I 3 0 5 11 / 1 3 1 2/ 1 8 1 ID F G GM C Si e a 35 0 4W D LO T Ga Ve s $2 2 1 . 2 2 $2 3 , 5 1 . 2 2 $7 , 7 0 0 . 0 0 $3 1 , 2 1 . 2 2 El 1 4 9 4 S8 1 3 0 11 1 1 3 1 2/ 1 8 1 ID F G GM C Si e a 35 4W D LO T Ga Ve s $2 . 8 8 . 5 2 $2 2 . 5 2 $7 , 7 0 0 . 0 0 $3 , 5 . 5 2 El 1 4 9 4 SB P I 3 0 11 1 1 3 1 2/ 8 1 ID F G GM C Si e a 35 4W D CC Ga Ve s $3 . 0 9 . 6 5 $3 4 , 0 9 . 6 5 $7 , 3 0 . 0 0 $4 1 , 3 9 7 . 6 5 El 1 4 9 4 S8 1 3 0 11 / 1 3 1 2/ 1 8 1 ID F G GM C 5i 25 4W D LO T Ga s Ve s $2 , 0 9 7 2 1 $2 5 , 0 9 . 2 1 . $ 6 5 0 . 0 0 $3 1 , 5 9 7 . 2 1 El 1 4 9 4 S8 1 3 0 11 / 1 3 1 2/ 1 8 1 ID F G GM C Sl 15 0 4W D LO T FF V NR $2 4 , 5 2 3 . 5 $2 4 , 5 2 . 5 $8 , 5 . 0 0 $3 1 , 0 2 . 5 9 El 1 4 9 4 S8 1 3 0 11 / 1 3 1 2/ 1 8 1 ID F G GM C Vu k n 15 0 0 4W D SU FF V NR $2 . 7 5 2 . 0 3 $2 , 7 5 2 . 0 3 $7 , 3 . 0 0 $3 7 , 0 5 . 0 3 El 1 4 9 4 SB P O I 3 0 11 / 1 3 1 2/ 1 8 1 ID F G GM C8 Ex 'l LD T Ga NR $1 3 . 6 5 . 5 0 $1 3 . 6 5 . 5 0 $4 . 9 0 . 0 0 $1 8 , 5 . 5 El 1 4 9 5 S8 1 2 7 9 - 0 1 11 1 1 3 1 2/ 1 6 1 0 0 ID F G Fo r es H) 4W D SU Hy NR $2 6 , 6 . 1 6 $2 8 , 8 0 7 . 1 6 $2 5 . 0 0 $2 , 8 7 . 1 6 El 1 4 9 5 SB P 1 2 l 11 / 1 4 1 2/ 1 8 1 ID F G Fo r Ex SS 4W D 5U Ga Ve s $2 4 , 8 . 0 0 $2 4 . 8 0 . 0 0 $8 , 8 0 . 0 0 $3 1 , 4 0 3 . 0 0 El 1 4 9 5 SB P I 2 9 11 / 1 4 1 2/ 1 6 1 0 0 ID F G Je Ch e La 4W D 5U FF V NR $2 , 6 1 7 . 0 0 $2 , 6 1 7 . 0 0 $9 , 7 0 . 0 0 $3 2 , 3 1 7 . 0 0 EX P 1 4 9 7 SB P 1 3 0 11 1 4 1 2/ 1 8 1 ID F G Ch e Ma l i b u fN d 'l D MD S D N Hy I NR $2 , 3 . 0 0 $2 , 3 1 . 0 0 $0 . 0 0 $2 , 3 0 . 0 0 El 1 4 9 5 S8 1 3 0 11 / 1 4 1 2/ 1 7 1 2 PH D Ch e l a Im p a l a LS FW D FL S D N FF V NR $3 3 . 7 1 8 . 0 0 $1 6 , 8 . 0 0 $1 0 , 0 0 . 0 0 $4 , 7 1 8 . 0 0 El 1 4 9 9 SB P I 3 0 11 / 1 4 1 2/ 1 7 1 2 IS P Ch e e t Ma l i b u LS FW D FL S N Ga NR $1 7 , 7 7 9 . 0 0 $1 7 . 7 7 9 . 0 0 $2 5 , 9 4 0 . 0 0 $4 3 , 7 1 9 . 0 0 EX 0 1 5 l l SB P I 2 9 12 ~ 2l 0 0 IS P Do e Ch a e r LS 'l D Fl N Ga s Ve s $3 9 , 7 7 8 . 0 0 $1 9 , 8 8 . 0 0 $9 , 0 0 . 0 0 $4 , 7 7 6 . 0 0 EX 0 1 5 l 0 l SB P I 2 9 12 ~ 2l 0 0 IS P Fo F 15 0 4W D LO T FF V NR $4 , 3 . 0 0 $2 4 , 1 7 2 . 0 0 $1 4 , 4 0 . 0 0 $6 , 7 - 4 . 0 0 El I 5 l SB O I 2 9 12 ~ 2J IS P Je Ch e La 4W D SU V FF V NR $6 , 6 5 . 0 0 $2 1 , 8 8 . 0 0 $2 9 . 1 0 0 . 0 0 $9 , 7 5 5 . 0 0 El 5 l SB O I 2 9 12 ~ 2J IS P Fo r d ex XL T 4W O SU V Ga Ve s $2 , 6 9 . 0 0 $2 , 8 . 0 0 $8 . 0 0 . 0 0 $2 8 , 8 9 . 0 0 El 1 5 0 S8 1 2 7 9 - 0 1 11 / 2 1 1 2 12 / 1 9 1 0 0 PT V Fo r es H) l 4W D SU V Hy b NR $2 , 8 0 . 1 8 $2 , 6 . 1 6 $2 4 9 . 0 0 $2 , 6 5 . 1 6 El I 5 0 SB P I 2 9 11 / 2 1 1 2 2/ 1 3 1 ve S Fo r Fo c 5E FW D SM S d Ga NR $1 2 , 3 8 . 0 0 $1 2 , 3 . 0 0 $3 4 0 . 0 0 $1 5 . 7 8 3 . 0 0 El 1 5 0 3 SB P 1 2 7 9 - 1 11 ~ 2 12 / 1 9 1 UB R l e s Fo r es Hy 4W D 5U Hy NR $2 , 8 0 7 . 1 6 $2 , 8 0 . 1 6 $2 . 0 0 $2 8 , 8 5 . 1 8 EX O I 5 0 SB P 0 1 3 0 12 / 1 1 2 21 8 1 lT CI Ma l i b u fN d FW D M O S O N Hy NR $1 6 3 . 9 7 8 . 5 0 $2 3 , 4 2 5 . 5 0 $0 . 0 0 $1 8 3 , 9 7 8 . 5 EX 0 1 5 0 SB O I 2 9 12 / 1 1 2 3/ 1 1 2 ID Fo r 5u b 15 0 4W D LO T Ga Ve s $1 2 1 , 2 . 0 0 $2 , 2 1 1 . 0 0 $4 3 , 2 . 0 0 $1 6 4 , 4 6 . 0 0 El P O I 5 0 SB P O I 2 9 9 12 ~ 31 / 2 0 0 9 IT O Fo r Ch u l l 35 2W D MD T DiH l Ve s $3 . 3 7 4 . 0 0 $3 0 . 3 7 4 . 0 0 $7 , 2 0 0 . 0 0 $3 7 , 5 7 4 . 0 0 El I 5 0 SB P O I 3 0 12 ~ 3~ IT O GM C Sl 35 'l D MD T DI Ve s $2 8 , 3 9 1 . 3 9 $2 3 9 . : l $7 , 5 . 0 0 $3 5 , 8 9 1 . 3 9 El I 5 0 SB P 0 3 0 12 / 5 1 3~ 11 0 GM C Sl e a 25 4W D MD T . Ga Ye s $2 4 , 1 0 0 . 0 4 $2 4 , 1 0 0 . 0 4 $7 , 0 0 . 0 0 $3 1 , 1 0 0 . 0 4 El I 5 0 SB P O I 3 0 12 ~ 3~ 11 0 GM C Si e r 25 'l D LO T Ga s Ye s $1 6 6 , 3 . 4 5 $1 8 , 4 7 6 . 0 5 $5 , 5 0 . 0 0 $2 4 , 8 . 4 5 El 1 5 0 8 SB P I 3 0 12 ~ 3~ lT GM C Sl 25 'l D LO T Ga s Ve s $4 1 , 5 1 3 . 0 4 $2 , 7 5 6 . 5 2 $1 3 , 0 0 . 0 0 $1 , 5 1 3 . 0 4 EX P I 5 0 SB P I 3 0 12 ~ 31 0 0 lT GM C SI 25 4w d LO T Ga s Ve s $4 2 , 7 8 1 . 1 0 $2 1 , 3 9 0 . 5 5 $1 3 , 0 0 . 0 0 $5 . 7 8 1 . 1 0 El I 5 0 S8 1 3 0 12 ~ 3~ lT GM C Si e r 15 0 2W D LO T FF V NR $3 9 . 6 8 . 0 0 $1 7 , 4 8 3 . 3 0 $8 . 0 0 . 0 0 $4 3 3 , 6 . 0 0 El I 5 0 SB P I 3 0 12 ~ 3~ lT GM C Sa l l ~V a n 2W O FS V . n Ga s Ve s $3 9 , 9 2 7 . 5 0 $1 9 , 9 8 . 7 5 $1 5 , 8 0 . 0 0 $5 , 5 7 . 5 0 El 1 5 0 8 SB P O I 3 0 12 ~ 31 0 0 lT GM C Sa Pa s V a n 'l D FS V a n Ga Ve s $2 . 9 6 . 5 5 $2 1 , 9 6 . 5 $7 , 8 . 0 0 $2 , 7 8 5 . 5 5 El 1 5 0 8 SB P O I 3 0 12 ~ 31 5 1 0 0 lT GM C C& n n Ex C a b 'l D LO T Ga s Ve s $8 1 . 3 2 7 . 2 0 $1 5 , 3 3 1 . 0 0 $1 9 , 8 0 . 0 0 $8 , 9 2 . 2 0 El I 5 0 S8 1 2 9 12 / 5 1 3~ lT Fo r Ch 35 2W D MD T DI Ve s $2 4 . 8 0 7 . 0 0 $2 4 , 8 0 7 . 0 0 $6 , 8 0 . 0 0 $3 1 , 0 6 . 0 0 El 1 5 1 0 SB P 1 2 9 12 / 1 1 1 2 3/ 1 1 1 2 PH 0 7 C Fo r d Fo SE FW D SM S d n Ga NR $2 5 . 7 9 2 . 0 0 $1 2 , 8 9 1 . 0 0 $8 , 8 0 . 0 0 $3 , 5 8 . 0 0 EX P 1 5 1 1 S8 1 3 0 12 / 1 5 1 3/ 1 8 1 AG I C Su ~ Wa g AW D MD S D N Ga NR $2 , 1 9 3 . 0 0 $2 , 1 9 3 . 0 0 $2 , 0 0 . 0 0 $2 , 1 9 3 . 0 0 El 1 5 1 2 SB P 0 1 3 0 12 / 1 5 1 3/ 1 8 1 IS P B Do e Gr a n d C a a n SX FW D Mv a n Ga NR $2 . 0 3 2 . 0 0 $2 , 0 3 . 0 0 $2 , 5 . 0 0 $2 , 5 3 2 . 0 0 El 1 5 1 3 SB P O I 2 9 9 12 / 1 9 1 3~ PH D 3 B Do e Av e n 2W D MD S D N Ga NR $1 4 , 2 . 0 0 $1 4 , 2 . 0 0 $4 , 3 0 0 . 0 0 $1 8 , 5 0 : 0 0 El P 0 1 5 1 3 SB P O I 2 9 12 / 1 9 1 3~ PH D 3 B Fo r d F 15 0 4W D LO T Ga Ve s $1 8 , 5 0 0 $1 8 , 5 . 0 0 $7 , 2 . 0 0 $2 , 7 0 8 . 0 0 EX P 1 5 1 4 - 1 SB P 0 1 3 0 1 12 / 9 1 3~ ID L A Do e Ra m 25 4W D LO T Ga Ye s $1 8 . 8 7 8 . 0 0 $1 8 . 8 7 8 . 0 0 $1 0 , 5 . 0 0 $2 , 1 7 8 . 0 0 El 1 5 1 5 S8 1 3 O 12 1 3l 0 0 Ii C B Ch e r o Im p a LS FW D MD S D N FF V NR $3 , 3 4 . 0 0 $1 8 . 1 7 3 . 0 0 $1 0 , 0 0 . 0 0 $4 , 3 . 0 0 El 1 5 1 6 SB P I 3 0 1~ 9 WI tD B GM C Si e 15 0 4W D LO T FF V NR $1 9 , 7 7 4 . 6 0 $1 9 . 7 7 4 . 8 0 $8 , 5 0 . 0 0 $2 4 . 8 0 El 1 5 1 7 SB P O I 3 0 1~ 9 WI AG R I B Su b a Ou a c Wa g AW O MD S O N Ga s NR $2 0 . 1 9 3 . 0 0 $2 0 , 1 9 3 . 0 0 $2 . 0 0 . 0 0 $2 . 1 æ . 0 0 El 1 . 5 1 8 SB P 0 3 0 1~ 9 WI ID B GM C SI e r 25 4W D MO T Ga s Ve s $2 4 , 2 9 . 4 8 $2 4 , 2 3 9 . 4 8 $7 . 0 0 . 0 0 $3 1 , 2 3 9 . 4 8 El 1 5 1 9 SB P I 3 0 1~ 2 41 1 2 ID L A Ch e SU 15 0 4W D LO T FF V NR $3 1 , 8 . 0 3 $3 1 , 8 4 . 0 3 $6 0 0 . 0 0 $3 7 , 8 4 . 0 3 El I 5 2 0 SB P I 3 0 1~ 2 4/ 7 1 2 PH D 5 B GM C C& n n ex i 'l D LO T Ga s NR $1 2 , 0 4 . 8 5 $1 2 , 0 4 . 8 5 $4 . 0 0 . 0 0 $1 8 , 0 4 . 8 5 'E l I 5 2 1 SB P 2 9 1~ 2 41 2 1 2 PH D 5 B Fo r Fo c SE 2W O SM S d Ga NR $2 5 , 1 4 0 . 0 0 $1 2 , 5 7 0 . 0 0 $8 , 8 0 . 0 0 $3 1 , 9 4 . 0 0 ix I 5 2 2 - U 1 SB P I 3 0 1~ 2 4/ 7 1 2 ID P B GM C C& n n Ex 2W D LO T Ga NR $1 3 , 5 . 6 5 $1 3 , 5 8 0 . 6 5 $4 . 9 0 . 0 0 $1 8 . 4 8 0 . 6 5 ix l 5 2 - U 1 SB P I 3 0 1~ 2 41 1 2 IO P R B GM Si e 25 0 0 4W D LO T FF V NR $2 3 , 3 3 5 . 4 9 $2 3 , 3 3 5 . 4 9 $8 . 1 9 4 . 5 3 $2 , 5 3 . 0 2 El 1 5 2 SB P 1 3 0 21 5~ IS L C GM C Yu k 25 4W D SU V Ga Ve s $2 , 5 3 . 7 0 $2 , 5 3 . 7 0 $5 . 0 0 . 0 0 $3 , 5 . 7 0 t; - El I 5 2 4 SB P O I 3 0 2/1 7 / 2 0 0 5/ 1 7 1 2 IT O B GM Sl 25 4W D MD T Ga Ve s $2 4 . 3 0 . 0 4 $2 4 , 3 0 . 0 4 $7 , 0 . 0 0 $3 1 , 3 0 . 0 4 EX I 5 2 SB P I 3 0 31 4 1 6~ ID P R C GM Ca ex t 2W D LO T Ga NR $1 8 , 8 2 . 0 0 $1 8 , 8 2 . 0 0 $4 . 9 0 . 0 0 $2 3 , 7 2 8 . 0 0 ~ El P O I 5 2 SB P O I 3 0 31 4 1 6/ 4 1 ID P R A Ch e e t CO r a d Cr 'l D LO T Ga NR $1 5 , 9 0 . 5 3 $1 5 , 9 0 . 5 3 $4 , 9 . 0 0 $2 , 9 0 . 5 3 El P 0 1 5 2 7 S8 1 3 0 1 3/ 1 0 1 0 0 6/1 0 1 0 0 ID L A Do e Ra 15 0 4W D LO T FF V NR $1 8 , 9 3 9 . 0 0 $1 8 , 9 3 9 . 0 0 $8 , 0 . 0 0 $2 4 , 9 3 9 . 0 0 ~ El P O I 5 2 7 SB P 1 3 0 1 3/ 1 0 i 6/1 0 1 0 0 ID L A Do e Ra 25 4W D LO T Ga Ye s $3 7 , 9 8 . 0 0 $1 8 , 9 9 : 0 0 $2 1 , 0 0 . 0 0 $5 . 9 8 . 0 0 .. El P O I 5 2 8 SB P I 2 9 3/ 1 0 i 6/1 0 1 0 0 ID L A Fo d F 15 0 4W D LO T FF V NR $1 7 , 5 1 . 0 0 $1 7 . 5 6 1 . 0 0 $7 , 2 0 0 . 0 0 $2 4 . 7 8 1 . 0 0 ~ El 1 5 2 9 SB P I 3 0 3~ 81 0 0 ID P C GM C Si e r 15 0 4W D LO T FF V NR $2 3 , 0 4 2 . 8 4 $2 3 . 0 4 2 . 8 4 $8 . 7 0 0 . 0 0 $2 . 7 4 2 . 8 4 Z El I 5 2 9 SB P O I 3 0 3~ 61 3 / 2 0 0 iD C GM Si e r r 15 0 4W O LD T FF V NR $2 3 , 0 4 2 . 6 4 $2 3 , 0 4 2 . 8 4 $6 , 7 0 0 . 0 0 $2 9 , 7 4 2 . 6 4 ~~~~ co n D e e r D e En . . . . J _ i o o n f i l e Av g 1 0 r ai d A s s l _ T è l _ C W EX . O t l SB P O t I On D a IN L T ) 1 - d e a u l Ag AR i M a n u f c l . . MI l o M_ D_ C a Ty p e (Y o a R e q d ) Or d e T è l V_ C O O IS a I al i _ I EX l 5 2 SB l 3 0 3~ 6/ 3 1 IO P R C GM SI 15 0 ~W O LO T FF V . NR 52 , 0 2 . 8 4 52 , 0 4 2 . 8 4 $6 . 7 0 0 . 0 0 $2 , 7 4 2 . 8 4 EX l ~ 3 0 SB P l 3 0 3~ ll 10 P R C GM SI a 15 0 ~W O LO T FF V NR $2 , 9 . 4 4 $2 , 9 . . $6 7 0 . 0 0 $2 . 6 6 . 4 4 EX 1 5 3 0 SB P l 3 0 3~ 6 ~ IO P C Je e Ub sp o ~W O $U Ga Ye s 52 , 0 4 2 . 8 $2 3 , 0 4 . 8 4 $6 , 7 0 0 . 0 0 $2 , 7 ~ 2 . 8 4 EX 1 5 3 0 SB P 1 3 0 3~ ll IO P R C Je e Ub Sp ~W O SU V Ga Ye s $2 , 1 7 2 . 0 0 $2 0 , 1 1 2 . 0 0 $3 , 0 0 . 0 0 52 , 1 7 2 . 0 0 EX 1 5 3 1 1 SB P 0 1 3 0 3~ ll IO P C Je Ub o Sp 4W Ò SU V Ga Ye s $2 1 , 1 9 5 . 0 0 $2 , 1 9 5 . 0 0 $3 , 0 0 . 0 0 $2 4 , 1 9 5 . 0 0 EX 1 5 3 SB P 1 3 0 3~ ll IO P C Je e Ch e e e Li 4W O SI FF V NR $1 9 , 8 . 0 0 $1 9 , 8 1 . 0 0 $9 . 7 0 0 . 0 0 $2 , 5 1 . 0 0 EX 1 5 3 SS P Q 1 3 0 1 3/ 3 1 ll IO P A Do e Ca l i b SX T mo MO O N Ga NR $1 3 , 9 0 . 0 0 $1 3 , 9 0 . 0 0 $2 , 5 . 0 0 $1 8 , 4 0 . 0 0 EX 1 5 3 SB 1 2 9 31 6I BS a Fo r F 35 2W 0 MO T Ga Ye s $1 9 , 6 6 . 5 $1 9 , 1 3 . 5 $7 , 1 0 0 . 0 0 $2 7 6 2 EX 5 3 SS P 0 1 2 9 31 1 1 2 7/ 1 1 2 10 P R A Fo r d R~ XL 2W 0 LO T Ga NR $1 ~ , 2 4 3 . 0 0 $1 ~ , 2 3 . 0 0 $4 , 7 0 0 . 0 0 $1 8 , 9 4 3 . 0 0 EX 5 3 6 SB P 1 2 9 31 1 1 2 7/1 1 2 0 0 IO P A Fo r F 15 0 ~W O LO T FF V NR $1 8 , 5 8 . 0 0 $1 8 , 5 8 3 . 0 0 $7 , 2 . 0 0 $2 , 7 8 . 0 0 EX l 5 3 9 SB P l 2 9 4~ 7~ 6 IS P a Fo r d F 15 0 ~W O LO T F F V NR $5 , 1 2 8 . 0 0 $1 3 , 5 . 0 $2 , 8 0 . 0 0 $7 6 , 9 2 . 0 0 EX l 5 4 SB P l 2 9 4~ 7~ 6 IO A Fo r d F 15 0 4W O LO T FF V NR $2 0 , 1 5 3 . 0 0 $2 , 1 5 3 . 0 0 $7 , 2 . 0 0 $2 7 , 3 5 3 . 0 0 EX 1 5 3 7 . Q 1 SB P 1 2 9 9 4~ 7~ 6 IO a Do Ra 25 ~W O LO T Ga Ve s $1 7 , 9 7 0 . 0 0 $1 7 . 9 7 0 . 0 0 $1 0 . . 0 0 $2 , 4 7 0 . 0 0 EX 1 5 3 7 SS P O l 2 9 4~ 7~ 6 IO P A Fo r F 45 4W O HO T Ga Ye s $2 7 , 0 0 . 0 0 $2 , 0 0 . 0 0 $7 , 0 0 . 0 0 $3 , 0 5 . 0 0 EX 1 5 3 SS P 0 1 2 9 4~ 7~ 6 IO P A Fo r ~ Hy ~W O SI Hy b r d NR $1 7 , 6 8 . 0 0 $1 7 , 8 8 . 0 0 $4 . 0 . 0 0 $2 1 , 8 8 . 0 0 EX 5 4 2 SB 1 3 0 4~ 7~ 8 FI N a Do C_ a n SX FW D MY a n Ga s NR 52 , 0 3 . 0 0 52 , 0 3 . 0 0 $2 , 5 . 0 0 $2 0 0 EX l 5 4 1 SB P l 3 0 1 4I 7~ 8 FI N a Ho CM c Hy r i d 2W 0 MD S O Hy NR 52 , 6 6 . 0 0 52 , 6 6 . 0 0 $0 . 0 0 52 , 6 6 . 0 0 EX l 5 4 3 SB P 1 2 9 9 .i 1 1 2 71 2 1 1 2 CO R R a Do Ni t SE ~W O SI Ga Ve s $1 8 9 , 6 5 1 . 0 0 $1 7 , 2 4 1 . 0 0 $4 , 9 5 . 0 0 $2 6 0 1 . 0 0 EX l 5 4 3 SB P 1 2 9 .i 1 1 2 71 2 1 1 2 CO R B Do Av e e r SE 2W 0 MO S O P2 E NR $2 , 4 0 6 . 0 0 $1 ~ , 2 . 0 0 $8 , 6 0 . 0 0 $3 7 , ( . 0 0 EX l 5 4 SS P 0 1 2 9 4I 7l 1 IS P a Do e Ch e r LS 2W 0 FL S Ga Ve s $2 1 , 2 . 0 0 $2 1 , 2 8 3 . 0 0 $8 , 5 . 0 0 $2 9 , 7 8 3 . 0 0 EX l 5 4 SS P O l 3 0 4~ 7~ 2 DA I R Y B Do e Gr C _ a n SX T FW D Mv Ga NR $2 , 3 6 1 . 0 0 $2 5 , 3 8 1 . 0 0 $2 , 5 0 . 0 0 $2 7 , 8 9 1 . 0 0 EX l 5 4 SB 1 2 9 51 1 2 1 8/ 1 1 1 2 0 0 CO R R B Fo r d El5 0 XL 2W O FS V a n Ga Ye s $9 , 4 3 . 0 0 $1 8 , 0 6 . 0 0 $3 , 0 0 . 0 0 $1 2 5 , 4 . 0 0 EX 1 5 4 6 SB P O l 2 9 51 1 2 1 8/ 1 1 1 2 0 0 CO R R B Fo r d 63 5 XL 2W 0 FS V a n Ga Ye s $3 8 , 3 . 0 0 $1 9 , 1 7 3 0 0 $1 5 , 2 . 0 0 $5 , 5 4 . 0 0 EX P 1 5 4 SB P 1 2 9 5/ 1 2 1 8/ 1 1 1 2 CO R R B Fo r E3 XL 2W 0 FS V a n Ga Ve s $2 , 7 8 1 . 0 0 $2 0 , 7 8 1 . 0 0 $6 . 0 0 . 0 0 $2 . 7 8 1 . 0 0 EX P l 5 5 3 SB P 0 1 3 0 2 6~ ll IS P B GM C SI 15 0 ~W O LO T FF V NR $2 4 , 3 5 1 . 1 8 $ 2 4 , 3 5 1 . 1 8 $8 , 5 . 0 0 $3 , 8 1 . 1 8 EX O l 5 5 3 SS P 0 1 3 0 6~ ll IS P B G M C si e 25 0 ~W O LO T Ga Ye s $5 1 8 4 . 9 4 $2 , 5 9 2 . ~ 7 $1 3 , 0 0 . 0 0 $8 , 1 8 4 . 9 4 EX 1 5 4 SS P 0 1 3 0 8I lI tS P B Do Ch e r LS mo FL S O N Ga s Ye s $1 0 4 . 9 1 5 . 0 0 $2 , 9 8 . 0 0 $4 , 0 0 . 0 0 $1 4 6 9 1 5 . 0 0 EX l 5 5 SS P 0 1 2 9 6/ 1 2 1 91 2 1 CO R R a Fo r d 63 5 XL mo FS V a n Ga ve s $2 , 8 1 0 . 0 0 $2 , 7 8 1 . 0 0 $8 0 , 0 0 . 0 0 $2 8 7 , 8 1 0 . 0 0 EX 1 5 5 1 SB l 3 0 8/ 1 9 1 91 1 9 1 OH . S H N A Ch e l e Im p a l a LS FW D MO S O N FF V NR $1 7 . 7 0 . 8 3 $1 7 , 7 0 . 8 3 $5 , 0 0 . 0 0 $2 2 , 7 0 8 . 8 3 EX l 5 5 1 SB P O l 3 0 6/ 1 9 1 91 1 9 1 OH W . S H N A Ch Im p a LS FW D M O S O N FF V NR $1 8 , 2 . 0 0 $1 8 , 2 . 0 0 $5 . 0 0 . 0 0 $2 3 , 2 8 . 0 0 EX 1 5 5 2 SB P 0 1 3 0 6/ . i 0 0 91 . i PH 1 A Su b tm p r AW O MO S O P2 E NR $1 8 . 0 0 . 0 0 $1 6 , 0 0 . 0 0 $5 . 0 0 $1 8 , 5 . 0 0 EX 1 5 4 9 - 7/ 1 1 2 12 1 1 5 1 IS P B Do Ch a e r LS 2W 0 FL S Ga Ye s $7 3 , 8 9 . 0 0 $2 1 , 0 5 . 0 0 $3 , 0 0 . 0 0 $l , 0 , 8 . o o 28 1 . 0 0 $5 , 8 1 3 , 2 7 7 8 1 $ 20 . 6 8 7 . 9 2 $1 . 7 8 1 . 7 1 3 . 5 $7 , 5 7 ~ , 9 9 . 1 ~ Ne t Re t 5a n i 97 FF V :I . 5 ' l I r - t O i C o a n d s i i i i $5 , 8 1 3 , 2 7 . 6 1 $7 , 5 7 4 . 9 9 1 . 1 ~ $1 , 7 8 1 . 7 1 3 . 5 3 14 Hy ~. O % A _ C o a n S a v i n g s $2 0 , 6 8 7 . 8 2 $2 8 , 9 5 7 . 2 6 $8 , 2 . 4 4 16 4 G a s 58 . 4 % T O l P e S a v 23 . 3 % 3 Ga P 2 1.1 % 3 Di e 1.1 % 28 1 T o t V e h l c EO 2 0 7 - 2 1 J u s t l R e q r e e n Al (2 8 1 1 Le I S P P u n u i t ( 2 3 8 ) No t R e q u i r e 13 3 47 % 58 % Ve s = 14 8 53 % YE S ß e s I S P I 10 i 44 % APPENDIX GG