Tom Starrs Bonneville Environmental Foundation. San Dieg

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Greetings
Using RECs to Promote Regional Renewable Energy
Investment Tom Starrs ? Bonneville
Environmental Foundation San Diego Solar Energy
Week ? September 29, 2005
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About BEF

• Independent non-profit established in 1998
• Helped introduce the retail market for RECs in
  2000
• Works with utilities, developers, and
  environmentalists to
• Identify, review and endorse low-impact
  renewables
• Market green power and RECs (Green Tags)
• Sell gt 88 aMW of Green Tags
• Emphasize product integrity w/ Green-e
• BEF reinvests net revenues from Green Tags sales
  in
• New renewable energy development
• Watershed restoration projects

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• Three Principal Ways to Support Renewable
  Energy

Renewable Energy
On-SiteGeneration your own project - you
generatethe environmentalbenefits
Green Tags(RECs or TRCs) renewable energy
creditsfrom a marketer- environmentalbenefits
unbundledfrom commodity power
Utility Green Power delivered renewable
energy - environmentalbenefits bundledwith
commoditypower
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Utility Green Power
Green Power
Utility
Green Power
Bundled
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Green Tags
Green Tags
Utility
Green Power
Not Bundled
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• REC Markets Enable Renewable Energy Investment
• Compliance Markets
• Most RPS laws are being implemented using a
  REC-based approach
• RPS laws tend to favor state/regional resources,
  driving local investment (and skewing local
  REC markets)
• Voluntary Markets
• Is likely to supplant bundled green power
  products as the leading mechanism for
  implementing voluntary programs
• Over 1.8 million Green-e certified RECs sold in
  2003
• Represents more than 200 aMW
• Green-e certified RECs were about 20 of total
  market

REC Markets
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• How to Compare OptionsAmong Green Power Green
  Tags
• Cost - most range from 0.01 to 0.03 per kWh
  above the cost of commodity energy.
• Type of Resource - you may choose the type of
  renewable energy to support such as wind or
  solar.
• Location - you may have an option to choose the
  geographic location of the renewable energy
  source.
• Certification - there are certifications such
  as Green-e that act as an industry standard
  for green power products (think Consumer
  Reports for green power).
• Environmental Endorsement - has the renewable
  generation facility been approved by the
  environmental community?
• New vs. Existing - do your dollars support
  the resources that need the funding or are
  they extra profits?
• Claiming the Offsets - is ownership of the
  associated carbon offset included with the
  renewable energy product?
• Reinvestment - does the provider use your
  dollars towards developing additional
  renewable energy resources and environmental
  benefits on your behalf?

Procurement
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• Certifications
• Center For Resource Solutions Green-e Program
• Standards for what constitutes a renewable
  energy resource. (i.e. no large hydro,
  nuclear, futures or donation programs)
• Standards for advertising green in a renewable
  energy product.
• Standards for carbon offsets associated with the
  renewable energy product.
• Requires an annual audit of all transactions and
  marketing claims from the renewable energy
  provider.
• Other validation and accreditation

Procurement
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• Making The Case
• Customers - people support businesses that
  reflect their values. When price and quality
  are equal, 76 of consumers will switch
  brands or retailers if a company is
  associated with a good cause.
• Distinction - set your organization, brand or
  building ahead of the competition.
• Recognition - programs such as the EPAs Green
  Power Partnership publicly recognize those
  who support renewable energy.
• Employee Goodwill - people want to be
  associated with organizations that reflect
  their values.
• Carbon Mitigation - a carbon tax is a likely
  component of future business and
  development.
• Energy Security - supports domestic sources and
  rural economies.

Why Green Energy?
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BEF Green Tag Products

• CoolerFuture
• Retail and web product
• 99 new wind, 1 new solar
• BrighterFuture
• NEW Retail and web product
• 90 new wind, 10 new solar
• Commercial Products
• Custom blends
• Mostly wind
• Up to 5 solar

Green Tags
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BEF Green Tags Sales

• Wide Variety of Customers
• NW Regional Utilities (50)
• Commercial Sales Corporations, NGOs,
  Universities, Government Organizations,
  Faith-Based Groups, Green Builders,
  Sustainable Slopes and more (45)
• Direct Web/Retail Sales (5)
• Wide Geographic Range
• Commercial and retail sales in 41 states
  and some Canadian Provinces.

Green Tags
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Natural Products

• BEF has been among the first to market its Green
  Tags to the Natural Products audience. Our
  successes include
• BB The first green powered coffee roaster,
  partner in award-winning marketing campaign.
• White Wave Foods Green Power Partner of the
  Year, 2003 2004.
• Promotional Packaging Silk and Traditional
  Medicinals products proudly display their
  commitment to renewable energy on their
  packaging.

Sales Initiatives
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SkiGreen.org
Sales Initiatives
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Green Building

• BEF is an active participant in the Green
  Building movement and has delivered Green Tags
  to the following LEED projects
• Wild Goose Restaurant - Tahoe, CA
• PSU Stephen Epler Hall - Portland, OR
• PSU Broadway Housing - Portland, OR
• Ode to Roses Building - Portland, OR
• Knoll Office Furnishings - San Francisco, CA
• Baca Navajo School - Prewitt, NM
• Eastside Fire Rescue - Issaquah, WA
• Carkeek Park Environmental Center - Seattle, WA
• Natural Resources Defense Council - Santa
  Monica, CA
• BEF is a member of the U.S. Green Building
  Council, has a LEED Accredited Professional on
  staff, and also delivers Green Tags to the
  following green building product manufacturers
  and professional service providers
• Interface Fabrics David Evans
  Associates,Inc.
• Lees Carpets PAE Engineers, Inc.
• Squawk Mountain Stone CH2M Hill

Sales Initiatives
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Carbon Calculator Green Events and Travel

• BEF offers event and travel services that allow
  individuals and organizations to green their
  impacts and to host an event or travel
  Climate Neutral. Examples include
• The first green powered wedding.
• Salomon Oasis Tour 2004/05 - 100,000 green
  miles traveled to 13 North American ski areas.
• Solar World Congress 2005.
• MTVs Trippin with Cameron Diaz - Greened
  the Tanzania, Costa Rica, and Chile episodes.
• Rolling Stones/NRDC - Turn Up the Heat on
  Global Warming - concert for climate change
  awareness.
• 15th Annual E-Source Members Forum.

Sales Initiatives
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FocusBEF Reinvestment
Reinvestment

• BEF focuses on renewables reinvestment in the
  geographic areas where it has strong customer
  participation and/or marketing alliances
• Until recently, emphasis was on Pacific
  Northwest
• Strengthening national alliances have led to
• Eight-state project management on behalf of Vote
  for Change musicians (Bonnie Raitt, Dave Matthews
  Band, Pearl Jam, REM)
• Maine Energy Investment Corp. (MEIC) rebate
  program, funded by BEF and Interface Corp.
• Programs under discussion in Alaska, Canada, here
  in New Mexico, and throughout the West

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Reinvestment Programs
Reinvestment

• Program Specific Reinvestment
• BEF commits a portion of revenues (usually 1 -
  4 per Green Tag sold, depending on program) to
  reinvestment fund
• BEF and program partners jointly decide how to
  use funds
• Options include direct turnkey funding of
  projects cost-sharing of projects or
  establishment of rebate/incentive programs
• Additional Reinvestment
• BEF dedicates net revenues (after administrative,
  marketing and program costs) to renewable and
  watershed programs

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Solar4RSchools
Reinvestment
Willamette High School Solar Roller (OR)
West Salem High School (OR)
West Linn High School (OR)
Castleford High School (ID)
CREST School Wilsonville (OR)
Wilderness Charter School Ashland (OR)
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Our Wind Co-Op
East Glacier (MT)
Reinvestment

• Seven of ten small (10 kW) turbines installed
  and operating
• Three remaining turbines to be installed in
  2005-06

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Net Revenues Support Over Sixty Projects
Reinvestment
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Sign Up At Home or At Work www.GreenTagsUSA.org
Thanks!
Tom StarrsVice President Chief Operating
Officer Bonneville Environmental
Foundation 503.248.1905 TomStarrs_at_b-e-f.org