Western Governors Association Renewable Energy Certificates Initiative for the West

1
Western Governors AssociationRenewable Energy
CertificatesInitiative for the West

• Renewable Energy Tracking and Certificates
• Working Group
• Planning Meeting
• April 25, 2003
• Salt Lake City, Utah

2
WGA Member States
.
3
WGA Mission

• The mission of the Western Governors
  Association (WGA) is to identify and address key
  policy and governance issues in the West advance
  the the role of the western states in the federal
  system and strengthen the social and economic
  fabric of the region.

4
Western Policy Landscape

• Improved economics for renewables.
• Renewable resource potential in the West.
• Passage of RPS in western states.
• WRAP implementation of Section 309 of the
  Regional Haze Rule (10/20 goal) and
• Emerging green power markets in the West

5
WGA Environmental Summit

• Workshop looked at how to expand use of renewable
  energy in the West. Two questions
• Are renewable energy certificates (RECs) a
  desirable strategy for promoting development of
  renewable energy in the West?
• What market architecture is needed to facilitate
  a regional RECs market?

6
Environmental Summit Conclusions

• RECs are flexible, market-based tools that can
  improve economics of renewables and increase the
  efficiency of green power transactions.
• Needed mechanisms to facilitate RECs market?
• Standard definition of RECs
• Registry for recording certificates.
• Single, independent institution to create,
  register, issue, track and oversee trades.
• Western Interconnect is appropriate geography

7
Environmental Summit Recommendations

• Western Governors should
• Support the creation of a single Western market
  for RECs.
• Consult with Tribal governments and regional
  stakeholders
• Recognize Western Interconnection as appropriate
  geography for registry
• Endorse a single RECs issuing body
• Adopt a standard definition and
• Support development of western renewable energy
  generation tracking system.

8

Western Geography
9
WGA RECs Resolution
Western Governors recognize that environmental
attributes of electricity generated from
renewable sources have economic value and can be
sold separately from the energy as Renewable
Energy Credits (RECs).. RECs lower the costs of
renewable energy and, in combination with other
public policies supported by Western Governors,
can accelerate the development of the Wests most
promising renewable resources.
10
WGA RECs Resolution (contd)

• Western Governors support
• Establishment of a single institution in the West
  that will issue, track and oversee REC trading,
• Development of a standard set of market design
  and operating guidelines for trading RECs within
  the Western Interconnection, and
• Creation of an independent, regional generation
  tracking system to provide data necessary to
  substantiate the number of megawatt hours
  generated from renewable energy sources and
  support verification, tracking and trading of
  RECs.

11
WGA Management Directive

• Western Governors direct WGA to seek funding
  and convene a regional meeting of stakeholders to
  define an institutional structure, design
  operating guidelines and identify information
  needed to establish a market for trading of RECs
  in the western interconnected system.

12
Next Steps

• Secure funding for WGA RECs initiative
• Establish work group to scope and define issues,
  and develop work plan
• Identify key stakeholders in the region
• Prepare assessment of needs, issues, options and
  conceptual framework for WREGIS
• Host regional stakeholder meeting (s) and
• Report findings to Western Governors.