This document summarizes a presentation on renewable energy in the United States given in Berlin, Germany on December 1, 2009. It discusses current US energy consumption and sources, which are dominated by fossil fuels. Renewable energy makes up around 9% of total energy supply. The presentation then covers various renewable energy resources in the US and recent growth in the renewable energy market. It also describes state-level policy tools like renewable portfolio standards and incentives that have supported this growth. Finally, it discusses federal policies including tax credits that have driven renewable energy development.

1. Renewable Energy in the United
States: Resources, Market
Growth and Policy
Matthew J. Stamatoff
Brooke Heaton
Berlin, Germany
December 1, 2009
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

2. “To finally spark the creation of a clean energy
economy, we will double the production of alternative
energy in the next three years…We will double our
capacity to generate alternative sources of energy like
wind, solar, and biofuels…“
- President Barack Obama, Jan 8, 2009
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

3. Presentation Overview: Part I
Brooke Heaton
US Energy Market and Renewable Energy Resources
Current Energy Consumption
Current Energy Mix
Solar, Wind, Biomass and Geothermal
US Renewable Energy Market Growth
State-Level Policy Tools
Renewable Portfolio Standards (RPS),
Tax Incentives, Rebates, Loans and Grants
Interstate Cooperation – WREZ Initiative
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

4. Current US Energy Consumption
and Energy Mix
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

5. Annual Per Capita Energy
Consumption 2005
(kgoe)
9000
7885
8000
7000
6000
5000
4187
4000
3000
2000 1778
1000
0
pe
ly
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d
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te
an
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si
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(Data Source: WRI 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

6. US Greenhouse Gas Emissions
by Sector (TG CO Eq) 2
3.000
2.500
2.000 Electricity Generation
Transportation
Industrial
1.500
Residential
Agriculture
1.000 Commercial
500
0
1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
(Data Source: US EPA)

7. Energy Consumption - Coal
(Source: National Public Radio 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

8. Energy Consumption - Gas
(Source: National Public Radio 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

9. Energy Consumption - Nuclear
(Source: National Public Radio 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

10. Energy Consumption - Hydro
(Source: National Public Radio 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

11. US Transmission Lines
(345 kV+)
Wind Demand
Solar
(Source: National Public Radio 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

12. US Energy Mix
(Source: Energy Information Administration: „Renewable Energy Consumption and Electricity Preliminary
Statistics 2008, Table 1“: Published June 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

13. Sources of Electric Energy
Nuclear Power
21%
Coal Renewable Energy
9%
52%
Natural Gas Petroleum
1%
17%
(Source: Energy Information Administration, Annual Energy Review, Figure 2.0, 2008)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

14. Sources of Transport Energy
Natural Gas
2%
Petroleum
95% Renewable Energy
3%
(Source: Energy Information Administration, Annual Energy Review, Figure 2.0, 2008)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

15. Sources of Industrial Energy
Coal
Natural Gas
9%
40%
Renewable Energy
10%
Petroleum
41%
(Source: Energy Information Administration, Annual Energy Review, Figure 2.0, 2008)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

16. Sources of Residential and
Commercial Energy
Coal
Natural Gas
1%
76%
Renewable Energy
7%
Petroleum
16%
(Source: Energy Information Administration, Annual Energy Review, Figure 2.0, 2008)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

17. Renewable Energy Capacities
(2008)
120
Geothermal
100 Solar PV
Biomass
80 Small hydro
Wind
Gigawatts
60
40
20
0
EU-27 China United States Germany Spain India Japan
(Source: REN21, Renewables Global Status Report 2009 Update)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

18. Solar, Wind, Biomass and
Geothermal Resources
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

19. (Source: National Renewable Energy Lab 2008)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

20. (Source: National Renewable Energy Lab 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

21. (Source: National Renewable Energy Lab 2008)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

22. (Source: National Renewable Energy Lab 2008)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

23. US Renewable Energy
Market Growth
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

24. US Renewable Energy Market
Renewables contribute to 7% of total US energy demand and 9% of
electricity
51% of renewable energy is used for electricity by electricity
producers. Most of the remaining 49% is used for d industrial
applications (principally paper industry)
US is 2nd largest renewable energy producer in the world
Current Electricity Generating Capacity of Renewable Sectors:
□ Wind 31 GW □ Biomass 8 GW
□ Solar PV 1100 MW □ Geothermal 3 GW
□ Solar CSP 418 MW
(Source: Energy Information Administration)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

25. 2008: Strong Advancements in
the US RE Market
Total Renewable Energy Capacity of 40 GW (2nd in world).
Became leader in new capacity investment with $24 billion.
Added more power capacity from renewables than from
conventional sources (gas, coal, oil, and nuclear).
Led in total wind power capacity with 25 GW, surpassing
Germany (24 GW).
Added over 8,5 GW of wind, 310 MW of PV, and 400 MW of CSP.
(Source: REN21)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

26. US Renewable Electricity Capacity*
2006-2030
70,00
60,00
50,00
Production Capacity (GWh)
40,00
30,00
Offshore Wind
20,00 Solar Photovoltaic
Solar Thermal/CSP
Geothermal
10,00 Biomass
Wind
0,00
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Year
*Electricity Only, Exludes Hydro (Data Source: Energy Information Administration)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

27. State-Level Policy Tools
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

28. State Renewable Portfolio
Standards (RPS)
RPS require a percentage of an electricity producer‘s total retail electricity sales
to derive from renwable energy resources.
29 US states have established an RPS: California: 33% renewables by 2020
Utilities comply with this percentage target by purchasing certified Renewable
Energy Credits (RECs)= 1 MWh of RE
RECs may also be purchased voluntarily. The US voluntary market is larger
than the mandatory market.
RECs can be traded in the marketplace, are certified by independent NGO‘s, and
tracked by regional tracking systems.
RECs provide a market solution to promote RE, increase liquidity, break down
geographic barriers and monetize renewable attributes.
(Source: dsire.org)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

29. Renewable Portfolio Standards
29 States have RPS, 6 have goals
40% by 2017
33% by 2020
State renewable portfolio standard
State renewable portfolio goal
(Source: dsire.org)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

30. State Tax Credits and Loans
Corporate tax credits (25 states)
Credits, deductions and exemptions provided to corporations that purchase
and install eligible renewable energy or energy efficiency equipment, or to
construct green buildings. Typically, there is a cap.
Personal tax credits (22 states)
Credits and deductions to individuals to reduce the expense of purchasing
and installing residential renewable energy or energy efficiency systems
and equipment.
Property tax incentives (34 states)
Provided by local tax authority in the form of exemptions, exclusions and
credits.
State Loans (45 states)
Offered to the residential, commercial, industrial, transportation, public and
nonprofit sectors to provide financing for the purchase of renewable energy
or energy efficiency systems or equipment at below market interest rates.
(Source: dsire.org)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

31. State Rebates and Grants
Rebates (44 states)
Offered by states, local governments and utilities to promote the
installation of renewable energy systems and energy efficiency
measures. Often provide funding for solar water heating and/or
photovoltaic (PV) systems.
Grants (27 states)
Primarily available to commercial, industrial, utility, education and
government sectors on a competitive basis. Most are designed to
pay down the cost of eligible equipment, R&D, or project
commercialization.
(Source: dsire.org)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

32. Western Renewable Energy Zones
Cooperative program of Western Governors Association and DOE
Includes all 11 Western Interconnect states plus Alberta and British
Columbia
Goals: Generate reliable information and political support to
facilitate the construction of utility scale renewable energy facilities
and transmission across the Western Interconnection. Build
interstate cooperation to address major cost issues.
Phase 1 Report finished June, 2009
(Source: WGA)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

33. Western Renewable Energy Zones
Cooperative program of Western Governors Association and DOE
Includes all 11 Western Interconnect states plus Alberta and British
Columbia
Goals: Generate reliable information and political support to
facilitate the construction of utility scale renewable energy facilities
and transmission across the Western Interconnection. Build
interstate cooperation to address major cost issues.
Phase 1 Report finished June, 2009
(Source: WGA)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

34. Presentation Overview: Part II
by Matthew Stamatoff
Current Federal Policies Driving RE Market
ITC, PTC, P-ITC
Challenges of US RET Tax Incentives
American Recovery and Reinvestment Act
(ARRA) 2009
Future Policy Developments (RES and Cap-
and-Trade)
Bingaman Bill (Senate)
Waxman-Markey Bill, RES and Cap-and-Trade
(House)
Kerry-Boxer Bill, RES and Cap-and-Trade
(Senate)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

35. Investment Tax Credit (ITC)
Corporate income tax credit
30% for solar, fuel cells and small wind
(100 kW or less)
10% for geothermal, microturbines (2
MW or less) and CHP
Maximum incentive for Fuel cells:
$1,500 per 0.5 kW and Microturbines:
$200 per kW
Credits are available for systems placed
in service on or before December 31,
2016 (extended by 8 yrs in 2008)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

36. Production Tax Credit (PTC)
Corporate income tax credit
2.1¢/kWh for wind, geothermal, closed-
loop biomass
1.1¢/kWh Landfill Gas, Hydro-power,
Municipal Solid Waste, Anaerobic
Digestion, Ocean energy tech
Wind technologies must be installed
before December 31, 2012, all other
technologies must be before December
31, 2013
In general, credits can be received for up
to 10 years
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

37. PTC and Wind Sector Growth
Source of graph (above): American Wind Energy Association
(AWEA)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

38. Personal Income Tax Credit
(P-ITC)
30% personal income tax credit for solar
technologies, wind, fuel cells and
geothermal
Used to be a cap on credit, now there is
not a maximum credit (except for fuel
cells $500 per .5 kW)
ARRA 2009 removed the cap on credits
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

39. Challenges of US RET Tax Incentives
Extending PTC and ITC
Uncertainty of extensions disrupts
market growth
Accelerated wind deployment in 2008
Small pool of Tax Equity Investors is
getting smaller
Developers do not have profile to take
advantage of PTC or ITC
Pool of Tax Equity Investors was 20 in
2008 and 6 in 20091
Low tax appetite
1. Renewable Energy Project Financing: Impacts of Financial
Crisis and Federal Legislation (NREL, 2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

40. American Recovery and Reinvestment
Act (ARRA) 2009 & Tax Credits
All eligible entities under the
PTC, may now elect to take the
ITC or receive a grant (ie. large-
scale wind, anerobic digestion)
All eligible entities under the
ITC, may also elect to receive a
grant
Grant is a cash grant equivalent
to 10% basis of property CHP,
geothermal and microturbines. It
is 30% cash grant for all other
technologies.
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

41. ARRA 2009: Accelerated Depreciation
& Loan Guarantees
Extends bonus depreciation option
50% of project costs are depreciable
in year 1; remaining 50% follows
normal schedule
Additional $6 billion for DOE loan
guarantees
Encourage debt financing in a credit
tight market
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

42. Source of Graph (above):Renewable Energy Project Financing:
Impacts of Financial Crisis and Federal Legislation (NREL, July
2009)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

43. American Recovery and Reinvestment
Act (ARRA) 2009 & Energy Programs
Department of Energy (DOE)
received $36.7 billion for energy
programs. This funding includes
such programs as:
Smart grid grant program ($4.5
billion)
Advanced battery manufacturing
grants ($2 billion)
Renewable energy loan guarantees
($6 billion)
Expands weatherization program
($5 billion)
Increases funding to State Energy
Program ($3.1 billion)
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

44. S. 1462 American Clean Energy Act
of 2009 (Sen. Bingaman, NM)
Creates a Renewable Electricity Standard
(RES)
Percentage of utilities electricity must
derive from energy efficiency or RE
3% in 2011-2013
6% in 2014-2016
9% in 2017-2018
12% in 2019-2020
15% in 2021-2039
Energy efficiency credits can
contribute to 26.67% of requirement
Percentages are not as significant as
they appear; exemptions from base for
municipal solid waste and new
nuclear. New hydro is eligible, old
hydro is exempt
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

45. H.R. 2454: American Clean Energy and Security
Act of 2009 (Rep. Waxman, CA and Rep. Markey,
MA)
Creates a Renewable Electricity
Standard (RES)
Percentage of utilities electricity
must derive from energy
efficiency or RE
6% in 2012-2013
9.5% in 2014-2015
13% in 2016-2017
16.5% in 2018-2019
20% in 2020-2039
RES targets are more aggressive than
S. 1462
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

46. H.R. 2454: American Clean Energy and Security
Act of 2009 (Rep. Waxman, CA and Rep. Markey,
MA)
Amends Clean Air Act (CAA) to reduce GHG
emissions by:
3% of 2005 levels by 2012
17% by 2020
42% by 2030
83% by 2050
Regulates emissions from electricity sources,
industrial sources, fuel producers and importers
and other relevant emitters
Establishes annual tonnage limit on GHG
Creates allowances equivalent to one ton of GHG
Creates an auction for allowances, establishing a
carbon trading
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

47. S. 1733 Clean Energy Jobs and American Power
Act (Sen Kerry, MA and Sen Boxer, CA)
Amends Clean Air Act (CAA)
to reduce GHG emissions by:
3% of 2005 levels by 2012
20% by 2020*
47% by 2030*
83% by 2050
*These target goals are more
aggressive than H.R. 2454
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

48. Current Status of the US Energy Bills
S. 1462 (Sen. Bingaman):
Senate Committee on Energy and Natural
Resources recommended bill for consideration
by Senate (vote 15-8 on June 17, 2009)
Bill was placed on Senate Calender (No. 110)
H.R. 2454 (Rep. Waxman, Rep. Markey)
Passed House on June 26, 2009
Roll call vote 219 Ayes, 212 Nays
S. 1733 (Sen. Kerry, Sen. Boxer)
Senate Committee of Environment and Public
Works recommended bill for consideration by
Senate as a whole
Currently being debated by Senate Finance
Committee
Senator Webb (D-VA) and Senator Alexander (R-
TN) Energy Act of 2009 recently introduced, Nov
2009
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009

49. Thank you for your attention!
Vielen Dank für Ihre Aufmerksamkeit!
Kontaktinformationen
Matthew Stamatoff
MatthewJ.Stamatoff@bmu.bund.de
Brooke Heaton
Brooke.Heaton@bmu.bund.de
BrookeHeaton@gmail.com
Produced by Brooke Heaton and Matthew Stamatoff for the German Federal Ministry for the Environment, October 2009