California and Clean Energy/Tech Permit Streamlining & Business Development. Office of Planning and Research

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1 California and Clean Energy/Tech Permit Streamlining & Business Development Governor s Office of Planning and Research Scott Morgan National Governor s Association Workshop December 9, 2011 Office of Planning and Research Coordinates State Review of Environmental Documents Facilitates inter agency coordination at with state, local and federal agencies. Is the state planning agency for California Provides technical assistance on land use planning and environmental compliance. 1

2 Permit Streamlining Utility Scale Solar: Desert Renewable Energy Conservation Plan 1 20MW Model Ordinance Degraded Agricultural Lands Solar Systems on Buildings and Parking Lots Desert Renewable Energy Conservation Plan (DRECP) Overview 2

3 What is DRECP? Planning Agreement Signed in May 2010 Natural Community Conservation Plan (NCCP) complies with CA NCCP Act Habitat Conservation Plan (HCP) complies with the Federal Endangered Species Act Focused only on renewable energy and related transmission projects within the California Deserts DRECP Schedule Preliminary Conservation Strategy Oct 2011 Draft Alternative Conservation and Implementation Strategies Dec 2011 Select Preferred Strategy & Refine Feb 2012 Public Review Draft Plan, EIR/EIS Jun 2012 Final Plan and Final EIR/EIS Dec 2012 Signed Implementing Agreement/Permits Jan

4 DRECP Plan Area Mojave & Colorado Desert Eco regions Counties include: Imperial Inyo Kern Los Angeles Riverside San Bernardino San Diego ~ 22,587,000 acres Roughly the size of Scotland Planning Goals Conserve and manage covered species Preserve, restore & enhance natural communities and ecosystems Identify the most appropriate locations within Plan Area for renewable energy projects Implement covered activities in compliance with CEQA, NCCPA, FESA, NEPA and other relevant laws Provide issuance of take authorization for covered species incidental to covered activities 4

5 Planning Goals Coordinate and standardize mitigation and compensation requirements for covered activities within Plan Area Increase regulatory certainty for renewable energy projects and create greater conservation values than project by project, species by species review Provide durable and reliable regulatory assurances under NCCPA and FESA for covered activities Indentify and incorporate climate change adaptation research, management objectives, and/or policies into the Final Plan Proposed Covered Activities Construction, development, operation, maintenance and decommissioning of renewable energy and related electric transmission projects within the Plan area: High voltage Transmission Facilities Solar (Photovoltaic and Thermal) Wind Geothermal DRECP Conservation Actions 5

6 Proposed Covered Species Specific plants and animals for which conservation, mitigation and long term management are provided and take is authorized for covered animals List is being developed by REAT agencies with input from applicants, public, Stakeholder Committee & Independent Science Advisors To date, initial analysis suggests covering approximately 90 species List will remain under development until the Final Plan is approved DRECP Will Provide permits. USFWS & CDFG issue yr permits to plan participants for covered species. Streamline, standardize, and create predictable process for endangered species permits, creating greater regulatory and economic certainty. Pre define mitigation. Provide large scale habitat/ species conservation in areas of high biological value avoid project by project approach. 6

7 DRECP Will Facilitate California Renewables Portfolio Standard (RPS) and enable long term renewable energy development beyond 2020 Create science based monitoring and adaptive management program to maintain and enhance conservation areas. May provide funding opportunities. Approved HCP/NCCP s are eligible for state and federal funding which can be used for conservation in the desert. 1 20MW Distributed Generation Model Ordinance California County Planning Directors Association: Model Solar Energy Facility (SEF) Ordinance Create a consistent strategy in California for counties to issue approvals/permits for small and large scale photovoltaic installations. 7

8 Solar Rooftop Programs Solar Group Buy Programs Rebates for Installing Solar Systems Solar Group Buy Programs SunShares Model this program was originated by City of San Jose; Bay Area Climate Collaborative used the San Jose model to develop guidance and tools for other local governments and private businesses to establish solar group buy programs for their employees California School Boards Association Solar Schools Program 8

9 Solar Group Buy Programs Joint Venture Silicon Valley s Purchasing Power: Best Practices Guide to Collaborative Solar Procurement (2011 World Resources Institute/Joint Venture Silicon Valley) Open Neighborhoods Solar Program Santa Monica/Los Angeles area Rebates for Energy Installations New Residences: California Energy Commission s New Solar Homes Partnership for PG&E, SCE and SDG&E customers Sacramento Municipal Utility District customers 9

10 Renewable Energy Rebates Existing Residences: Solar System rebates for PG&E, SCE and SDG&E customers Sacramento Municipal Utility District customers LADWP customers City of San Francisco GoSolarSF Incentives Energy Upgrade California: American Recovery and Reinvestment Act funded program for whole house energy efficiency upgrades, with low interest (3%) loans and rebates; funds available until March Property Assessed Clean Energy (PACE) Renewable Energy System Financing: A way for local governments to finance energy efficiency and renewable energy systems on private buildings using municipal bonds or other funds; the loan is secured and is repaid on the property tax bill, and the repayment obligation runs with the land. 10

11 Legislation Senate Bill 226 (2011): Exempted Solar Rooftop Installations from the California Environmental Quality Act (CEQA). In the works: Exemption for 1 20 MW solar installations on degraded agricultural lands. Senate Bill 226 CEQA requires a lead agency develop environmental documents and consider the environmental impacts of projects prior to making a decision to approve/deny. This bill exempts the installation of a solar energy system, including associated equipment, on the roof of an existing building or an existing parking lot meeting specified conditions. This bill also allows that the thermal powerplants certification process would be applicable to owners of specified proposed solar thermal powerplants who are proposing to convert the facility from solar thermal technology to photovoltaic technology. (CEC) 11

12 Senate Bill 226 (continued) Existing parking lot [is] an area designated and used for parking of vehicles as of the time of the application for the solar energy system and for at least the previous two years. Solar energy system includes all associated equipment. Associated equipment does not include a substation. BUSINESS DEVELOPMENT Governor s Office of Business and Economic Development. Helps coordinate all things related to business development in California. Created in statute in More information on the following programs can be found on their web site. 12

13 Enterprise Zones and LAMBRAs 42 Designated Zones throughout the State. Enterprise Zone provides: Hiring Tax Credit for newly hired qualified employee. Sales Tax Credit for qualified manufacturing equipment. Business Expense Deduction Net Interest Deduction for Lenders Net Loss Carryover for up to 10 years LAMBRA provides similar benefits for decommissioned military installations. California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) California Treasurer s Office SB71 Sales tax exemption on the purchase of manufacturing equipment used in the process of making green or clean technologies. Exception of all sales tax (State and Local) All or a portion of equipment s production capability maybe excepted. Manufacturing equipment of major components can be exempt. 13

14 Employment Training Panel Program was created in Cash reimbursement from the State for training. Targets key industries including manufacturing, biotechnology, and clean technology. Curriculum flexibility and trainer options Multiple training delivery modes: Classroom / Laboratory Video Conferencing Clinical (Healthcare) Computer-Based Industrial Development Bonds (IDB) California Infrastructure Bank (I-Bank) Low interest, Tax-exempt securities issued up to $10 million. General Requirements: $20,000,000 Capital Expenditure Limitation Must be used to purchase, construct, and/or equip manufacturing facility. New and Used Equipment Land and Existing Facility No Working Capital or Inventory Letter of Credit from A Rated Bank 14

15 Research and Development Tax Credit Provides Tax Credit for Basic Research 15 percent credit for qualified in-house research expenses 24 percent credit for basic research payments to outside organizations (third parties). Separate from the Federal R&D Tax Credit Research must be conducted in the State. Credit never expires, can be carried forward. Alternative and Renewable Fuel and Vehicle Technology Program (AB 118) California Energy Commission Annual program budget of approximately $100 million Develop and improve alternative and renewable low-carbon fuels, infrastructure, workforce, and vehicle retrofitting. Provides grants, loans, loan guarantees, and revolving loans. 15

16 Governor s Office of Business and Economic Development th Street, 2 nd Floor Sacramento, CA THANK YOU Scott Morgan Director, State Clearinghouse Deputy Director Administration Governor s Office of Planning & Research

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