SOUTH CAROLINA CLEAN ENERGY BUSINESS ALLIANCE QUARTERLY REPORT - SUMMER 2017

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1 Spring 2016 SOUTH CAROLINA CLEAN ENERGY BUSINESS ALLIANCE QUARTERLY REPORT - SUMMER 2017 SCCEBA BUSINESS ROUNDTABLES JOIN THE DISCUSSION ON THE CLEAN ENERGY ISSUES DRIVING SC S ECONOMY VW Settlement Roundtable, April 13, 2017 at SCANA C-PACE Business Roundtable, Dec. 8, 2016 at TRANE SCCEBA BUSINESS ROUNDTABLES A great way to connect with colleagues and learn about clean energy industry issues in South Carolina Energy Storage Thursday, June 8 Flextronics International 1000 Technology Drive West Columbia, SC C-PACE Thursday, August 3 Agape Conference Center 1624 Main Street Columbia, SC Community Solar Thursday, November 2 Berkeley Elec. Cooperative 2 Springhill Drive Goose Creek, SC For more information regarding the SCCEBA Buisness Rountables and other SCCEBA Events, please visit our website, SCCEBA.org or contact Patty Pierce at patty@scceba.biz.

2 DIRECTOR S REPORT: Patty Pierce The 2017 regular legislative session came to an end on May 11. SCCEBA is celebrating the success we experienced in the SC Senate on our legislative efforts with approval of the Renewable Energy Economic Development and Jobs Act, S.44, and C-PACE (Commercial-Property Assessed Clean Energy Act), S.261, and looking forward to our work to prepare for the 2018 Session is the first year in a two-year legislative session, so all legislation remains alive through the end of the 2018 legislative session. On February 1, the Senate voted 38-4 to approve S.44, by Senators Greg Gregory (R-Lancaster) and Glenn Reese (D-Spartanburg), a bill enacted in 38 states that aims to standardize property tax treatment for Distributed Energy Resource (DER) and renewable energy resource property. On March 22, the Senate voted 40-0 to approve, S.261, by Senator Thomas Alexander (R-Oconee), C-PACE, a voluntary program, enacted in 33 states, that would empower commercial, industrial, and nonprofit property owners access up to 100% of private, commercial financing for clean energy upgrades to their buildings. Both bills were considered in House subcommittees in May--S.44 in a Ways and Means Legislative Subcommittee (carried over 3-1) and S.261 in the Labor, Commerce, and Industry Executive Subcommittee (no action). During the final week of the session, SCCEBA and its partners attempted to add S.44 bill language to a pending property tax bill on the Senate Calendar. However, we were met with fierce opposition from county and school association representatives and Koch Brother lobbyists claiming S.44 would reduce local tax income and provide a government subsidy. Not true. S.44 would bring NEW clean energy investments to both rural and urban communities and ADD to county and state tax bases. For every $1M invested in commercial, industrial, and utility-scale solar projects, $150,000 in real property tax revenue would be generated over the life of the facility. Moreover, the anticipated 90 solar projects that are sitting on the fence ready to be developed in SC worth $1.4B would bring to $217M in personal property taxes over the lifetime of the facilities. In the first year, the projects would add $6.2M in school personal property millage taxes, $2.7M in municipal personal property millage taxes, $1.6M in rollback taxes, and then annually thereafter $435K in taxes derived from land lease income, $938K in electric power taxes, and $103M in Electricity Sale taxable income not to mention taxable income from direct labor (25% of project costs) and local spending (15% of labor costs in local communities) when projects are installed. (Data from SCSBA). Although Act 236 in 2014 helped spur growth in SC s solar sector, SC continues to lag behind its neighboring states in solar investments. In 2015, NC invested $1.7B in solar projects and GA invested $311M. SC s 2015 solar investments-- $10M. NC also has 2,436 MW of total solar energy installed and GA 495 MW installed. Compare those numbers to SC s 25 MW of total installed solar, and it is clear that SC has room for growth in the solar energy sector. (Data from SEIA.org) SCCEBA also anticipates that SC s more than $1B building efficiency industry will benefit from passage of C-PACE, S.261. With 100% financing, long-term loans (up to 20 years), and no out-of-pocket costs, C-PACE will spur new clean energy building upgrades as it has proven to do across the US with more than 1,000 projects financed totaling $340M and an estimated 4,000 jobs created. (Data from PACE NATION) Bottom Line: SC can do better and the policies, S.44 and S.261, can help spur NEW clean energy investments in SC. Now more than ever SCCEBA needs YOU, clean energy business and industry leaders, to join the effort to educate your legislators and local government representatives on our clean energy industry and to help advocate for passage of S.261and S.44, two reasonable policies that can bring new renewable energy and energy efficiency investments to our state and help grow SC s clean energy economy. Join SCCEBA! We look forward to working with you! Patty Pierce Executive Director of SCCEBA PAGE 2

3 VW SETTLEMENT OPPORTUNITY: BUSINESS ROUNDTABLE SCCEBA hosted its first Business Roundtable in 2017 in partnership with SCE&G and Duke Energy to highlight the VW Settlement Opportunity on Thursday, April 13. More than 50 clean energy industry leaders gathered at SCANA s Headquarters in Cayce, SC to discuss Volkswagen s recent $15.7 Billion Civil Settlement to learn how SC can access its estimated allocation of $34M when the funds become available through the $3B Mitigation Trust and how SC can successfully apply for funds in the $2B Zero Emission Vehicle (ZEV) Trust. Rick Sapienza, Director of the Clean Transportation Program at the NC Clean Energy Technology Center at NC State University provided an overview of the process and timeline for SC to receive VW Settlement funds and eligible expenses for the funds. Sapienza also highlighted the ZEV Trust, eligible expenses for the Trust, and the first cities to receive awards from the Trust, such as Raleigh, NC, to support expansion of its community charging stations. James Westy Westmoreland, General Manager of Utility Support Services at SCE&G, Lang Reynolds, Electric Transportation Manager at Duke Energy, and Lynda Shafer, Program Developer of Conservation & Energy Efficiency at Santee Cooper shared news about how SC utilities are collaborating and planning for increased clean energy infrastructure and vehicles in SC. Shafer said, If the money is used strategically, it can serve as a tipping point for our state when it comes to clean energy transportation. Maeve Mason and Landon Masters, Energy Specialists at the Office of Regulatory Staff s Energy Office and Co- Coordinators for the Palmetto Clean Fuels Coalition presented on the Energy Office and the PCF s Electrify America s Zero Emission Vehicle Corridors planning efforts and their Plug-In SC Campaign. SC has a tremendous opportunity to increase its investments in clean transportation with the VW Settlement Funds. SCCEBA has been discussing how to increase use of zero emission vehicles, expand alternative fuel infrastructure, and support fleet conversions to clean fuels. Now, over the next decade, the VW funds can turn these concepts into reality, said Patty Pierce, Executive Director of SCCEBA. Access the VW Settlement BRT meeting presentations by visiting SCCEBA s website at SCCEBA.org. JOIN TODAY! For information about becoming a SCCEBA member, contact Patty Pierce at patty@scceba.biz or visit scceba.org. PAGE 3

4 SCCEBA MEMBER HIGHLIGHTS WaterFurnace International, Inc. Names Steve Weitzel Territory Manager of the Year WaterFurnace International, Inc., the leading manufacturer of residential, commercial, industrial and institutional geothermal and water source heat pumps, recently named Steve Weitzel of Blythewood, SC, Territory Manager of the Year at its 2017 WaterFurnace Annual Sales Meeting in Denver, CO. This prestigious award is presented to the salesperson that achieved impressive sales growth year over year while also exemplifying the character and work ethic desired in a WaterFurnace representative. Steve is the Territory Manager for SC and Southeast NC. SCCEBA is proud to have WaterFurnace and Steve Weitzel as a member, said Patty Pierce, ED of SCCEBA. Steve has been leading the charge to expand the use of geothermal and water source heat pump systems in SC for several years through policy development and consumer education. This is a well-deserved recognition of Steve s passion and commitment to the geothermal industry. Under Steve s leadership, the geothermal industry has doubled its economic impact in SC. It s been an honor to work with Steve and his team at WaterFurnace, said Pierce. WaterFurnace International, Inc. in addition to being the leading manufacturer of geothermal and water source heat pumps works to innovate new technologies, integrate key trends and grow its core business to represent a portfolio of clean and sustainable energy solutions. Founded in 1983, the company is headquartered in Fort Wayne, Indiana. WaterFurnace.com Adger Solar To Build SC s Largest Solar Farm in Jasper County 71.4MW In late March, Adger Solar announced it will build SC s largest solar farm to date in Jasper County, SC--a 71.4 MW solar farm and a companion 10 MW array. Both are expected to enter service in 2017 through power purchase agreements with South Carolina Electric & Gas (SCE&G). The Jasper projects were recently acquired by Dominion, one of the US s largest producers and transporters of energy. The 71.4 MW facility, now known as the Solvay Energy Center - Jasper County, SC will occupy nearly 900-acres that will remain owned by Adger Solar and leased to Dominion. Solvay, an international chemicals and advanced materials company will purchase the renewable energy credits produced by this facility. Jasper County is showing SC that large-scale solar can be built and sustained in all 46 counties across the Palmetto State, said Bill Moore, Principal of Adger Solar. Adger Solar has been working in SC since 2014, and we are actively pursuing multiple projects throughout the State to provide both tax revenue and new jobs to local communities as well as clean power to the citizens and companies of SC. We are pleased to be part of the emerging solar energy industry during this exciting time in SC. On May 23, Dominion, Solvay and Adger Solar hosted a Community Open House from 6:00-8:00 p.m. at 358 Third Avenue, Courthouse Square Ridgeland, SC. Adger Solar has financed and developed more than 3,000 MW of clean energy projects now in operation in the Midwest, the Northeast and the mid-atlantic utility markets. The Adger Solar team is one of the most experienced project development companies active in the Southeastern US. AdgerSolar.com PAGE 4

5 SCCEBA MEMBER HIGHLIGHTS Andrena Powell-Baker, Senior Mgr. of Community Relations and Development and Bryan Stone, COO of Lockhart Power, with Frank Hart, Union County Supervisor; Kathy Jo Lancaster, Union County Development Board Director; and Joe Nichols, Union County Development Board Chair. Lockhart Power of Union County Donates $140,000 to Two Upstate Industrial Parks In late February, Lockhart Power contributed its entire 2016 utility license tax credit to the Tyger River Industrial Park (TRIP) North in Spartanburg County and the Midway Green Industrial Park in Union, SC. Both parks are owned by Greenville-based Pacolet Milliken Enterprises. One of Lockhart Power s values is to promote economic development in the communities it serves, Bryan Stone, Chief Operating Officer said. Good-paying manufacturing jobs are highly important to Union and Spartanburg counties. We are happy to support those values in these two counties. TRIP North encompasses more than 880 acres off Highway 290 in Moore and is part of a larger 2,250-acre park purchased in 1968 by the late Roger Milliken. Midway Green is a 144-acre park to the west of the city of Union. Lockhart Power, a subsidiary of Pacolet Milliken, provides electricity to both sites. Lockhart Power has used its contributions to support a wide variety of projects over many years that have created numerous jobs and tremendous investments in the Upstate, said Rick Webel, President of Pacolet Milliken. It s an honor to be able to reinvest in our own communities. Lockhart Power, founded in 1912, serves customers in Spartanburg, Union, Cherokee, Chester, and York counties and generates 99% of its power from renewable sources. Lockhart Power provides reliable and cost-effective electric service to its retail and wholesale customers, while also providing renewable energy to the City of Columbia and Duke Energy Carolinas. Lockhartpower.com Southern Current Announces Plans for an 8MW Solar Facility in Orangeburg County Investing more than $10M Southern Current, LLC, headquartered in Charleston, SC, announced in March it will launch a new solar energy project in Orangeburg, SC. The 8MW project will bring more than $10 million in capital investment to Orangeburg County and is expected to be fully operational in It s exciting to be part of projects like these that are helping to reshape SC s energy future. This would not be possible without the support of the local community and all of our development partners, said Southern Current Founder and Chief Development Officer Paul Fleury. Secretary Bobby Hitt said, This investment by Southern Current will further strengthen SC s growing reputation in renewable energy. Providing both positive economic and environmental impacts, I m proud to see this company continue to expand in our state and look forward to growing this terrific partnership in the years ahead. We are excited about Southern Current s decision to locate here. We are grateful and supportive of their investment and commitment to our community, its people and the environment, said Orangeburg County Council Chairman Johnnie Wright Sr. Southern Current, LLC specializes in the ownership and development of long-term solar energy projects and strives to make solar power economically attractive to utilities and consumers. Focused on residential, commercial and utility-scale solar energy projects, Southern Current is working to build more than one gigawatt of new solar projects by the end of SouthernCurrentllc.com PAGE 5

6 SCCEBA MEMBER HIGHLIGHTS Hubner Manufacturing to Generate Clean, Renewable Energy in Mt. Pleasant, SC Hubner Manufacturing Corporation that develops solutions for the transportation industry including products used in rail vehicles, buses, airport technology and the automobile industry, unveiled its new 918 kw solar PV System, designed and installed by Hannah Solar Government Services (HSGS) on March 31, Hubner s system is recognized as the largest roof-mounted system in South Carolina Electric & Gas s Distributed Energy Resource program, and the largest solar PV system ever constructed in the town of Mount Pleasant, consisting of 2,700 solar panels. The system is expected to generate 1,221,770 kw hours of electricity in its first year, enough energy to power 113 homes. COL Retired Dave McNeil, President and CEO of HSGS, said Hannah Solar Government Services is proud to be a part of Hubner s investment in solar energy. The team at Hubner has set the standard for how businesses in South Carolina can advance its operation through solar energy generation. CEO of Hubner, Ron Paquette stated, The Hubner Group is recognized as a world-wide leader in advocating corporate sustainability and environmental responsibility. This was our mission in considering solar technology for our Mount Pleasant, South Carolina facility. We are now reaping the benefits of our investment and thank HSGS for helping us fulfill our mission to generate clean, renewable energy. HSGS is a veteran-owned business specializing in the design, installation, and maintenance of solar PV energy systems. Serving the government, commercial/industrial, and utility marketplaces, HSGS s breadth of experience includes projects that span the continental United States as well as overseas. HSGS.solar. Glen Raven Custom Fabrics in Anderson, SC Partners with Hannah Solar on One of SC s Largest Net Metering Solar Arrays In March, Hannah Solar installed a 1MW solar array at the Glen Raven Custom Fabrics facility that produces awning, marine, furniture, and RV products at its facility in Anderson, SC. The solar array is one of the largest net-metering solar systems in the state. Glen Raven s decision to go solar came from the company s passion for sustainability. Both of their plants in North and South Carolina incorporate recycling, water reduction and now solar. We are thrilled about how well this project turned out. Hannah Solar has done an exceptional job, and we hope there are more opportunities like this to keep pushing the sustainable element in our industry in the future, said Edmund Gant, Process Engineer for Glen Raven. Sustainability is a priority for our employees it s our way of life. The system, which is through Duke Energy s Solar Rebate Program, generates an average of 1,420,000 kilowatt hours (kwh) annually from 3,076 panels, producing enough energy to offset the equivalent of 317 tons of waste. We re proud to have partnered with Glen Raven Custom Fabrics on this exciting project, said Mark Cann, Regional Business Development Manager for Hannah Solar. This array is a great showpiece for the positive impact of renewable energy in South Carolina. PAGE 6

7 SCCEBA MEMBER HIGHLIGHTS Hannah Solar Installs Two Solar Arrays on Vetroresina s Manufacturing Facility in Greenville, SC In May, Hannah Solar installed two solar arrays on the Vetroresina, LLC s fiberglass composite manufacturing facility in Greenville, SC. Combined, the 639 kilowatt systems produce 178% of the electrical needs of the facility, making Vetroresina a net-positive manufacturer. This isn t Vetroresina s first time investing in solar. Our headquarters in Italy has a 1.3 megawatt array, said Vetroresina s CEO, Elena Colombarini. The energy savings, capital improvement, tax credits and our positive experience with solar in the past made it an easy decision. The array was installed in conjunction with Duke Energy s Solar Rebate Program, which creates a 3-year payback for the system. The solar energy produced by the system is equivalent to the energy needed for 63 homes. Hannah Solar considers Vetroresina to be true manufacturing solar pioneers, said Evan Becka, Business Development Manager for Hannah Solar. Large industry represents over 30% of global energy demand and Vetroresina s commitment to renewable energy improves the company s competitiveness in a global economy. Hannah Solar is a full service solar integrator providing engineering, products, installation and operations & maintenance of solar arrays, electric vehicle (EV) charging stations, Tesla Powerwall 2 storage systems and Generac backup generators. Its team is comprised of NABCEP certified solar experts, licensed master electricians in GA, AL, MS, NC, SC, & TN, project management professionals, business development managers, designers and installers. HannahSolar.com 2017 LEGISLATIVE BREAKFAST AT THE SC STATE HOUSE On April 20, SCCEBA and the SC Solar Business Alliance hosted a legislative breakfast to educate legislators about SC s clean energy industry, C-PACE and Renewable Energy Economic Development Jobs Act legislation. PAGE 7

8 OUR MEMBERS MAKE OUR WORK POSSIBLE THANK YOU TO OUR NEW AND RENEWING MEMBERS INVESTORS BUSINESS ADVISORS BUSINESS LEADERS 2017 South Carolina SAVE THE DATE 2017 Clean Energy Summit September 21, :30am - 5:30pm Columbia Metropolitan Convention Center Columbia, South Carolina For more information about joining SCCEBA, go to SCCEBA.org/members/ or contact Patty Pierce at patty@scceba.biz. PAGE 8