Solar Highway

MSNBC Video http://www.msnbc.msn.com/id/3032619/ns/nightly_news#33968518

NEW: Please review the attached letter from Tualatin Valley Fire & Rescue (TVF&R) District stating the Fire District’s opinion that developed property typically represents lower fire risk than undeveloped property. TVF&R states in this letter that they believe that the solar project and the bordering trail would create fire breaks that currently do not exist on the property. And, the gravel access road to the site could actually improve TVF&R's ability to respond to an incident in that area.

UPDATE: An ODOT noise study has commenced on the proposed site. In addition, an ODOT survey crew may be observed on solar highway site over the next month or more. The ODOT survey crew are taking spot elevation measurements on the middle and lower benches, but will not be working on the northernmost part of the right-of-way. They will not be surveying the northern boundary of the ODOT right-of-way. They are also taking elevation measurements of existing drainage improvements along the freeway, and mapping the location of the stream on the west side of the site near Salamo Road. This survey and mapping work is needed to support a stormwater analysis that will begin soon.

INFO: The latest edition of the "Solar Highway Update" is now available. This publication is designed to keep citizens informed about the solar highway project. Click here to read the second edition. This newsletter was handed out to all participants at the BHT Neighborhood Association meeting on September 2, 2009, and is available online for all West Linn neighbors.

NEW! Download below the responses to the list of questions and information requests from the Barrington Heights Neighborhood Association. Also included below a new informational document from the Good Company on the facts related to panel glare and reflectivity.

UPDATE: Currently, there is a lot of staging activity on the proposed solar highway site related to the Abernethy Bridge project. Large tanker trucks, material storage, large highway construction equipment, etc. are being stored and staged at the site. This activity is not related to the solar highway proposal. If you have any questions about the Abernethy Bridge project, please contact Susan Hanson in ODOT Community Affairs.

Soon, a geotechnical analysis of the potential solar highway site will underway. A driller is scheduled to be on site to take core samples in four locations. There are two sample sites on the lower bench, and two on the upper bench. All the sample sites are toward the center of the site, not the edges. The core sample holes will be filled in with inert material when completed, as is required by normal drill permit requirements. ODOT requires the drill operators to take extra precautions for fire prevention during the work, because the grass on the site is very dry. They will have water available to spray as they move the drill around on the site and during the drilling, and they will remain on the site after the drill is moved, to make sure fire danger has passed before they leave.

INFO: The "Solar Highway Update" is a periodic newsletter published to keep citizens informed about the solar highway project. Click here to read the first edition. This newsletter was direct mailed to all homes in the BHT Neighborhood Association, and is available online for all West Linn neighbors.

UPDATE: The West Linn City Council voted 4-1 on July 27, 2009 in support of a resolution indicating West Linn's support for continuing to work with ODOT in considering West Linn as a possible site for a solar highway. Read the full resolution text and agenda information here.

NEW! Read ODOT responses to an email circulating from Oregon City about the proposed solar highway project. Click here to review the facts.

NEW! View renderings of the proposed solar highway project site from various Oregon City vantage points.

The City of West Linn and Clackamas County have asked the Oregon Department of Transportation (ODOT) to look into a West Linn location as a potential site for a large solar highway project. The West Linn City Council will consider a resolution supporting the project's process at the July 27, 2009 City Council Meeting at 6:00 at City Hall.

ODOT has requested that West Linn gather public input to help evaluate the potential site. West Linn will be conducting town hall meetings in June on solar highways. Review these frequently asked questions to learn more about the proposed solar highway project.

What is this proposed project?
The West Linn Solar Highway project is a proposal to place enough solar arrays alongside the highway to generate 3 Megawatts of renewable energy to power Oregon’s transportation system.

Where is the site?
The site is on the north side of I-205, in the south portion of the City of West Linn. On ODOT right-of-way, it is about 1/8 mile southwest of an abandoned safety rest area. ODOT acquired the acreage when it originally built I-205, because the property was a known slide area. To stabilize the land and protect the highway, ODOT created “benches” and removed the potential slide material. ODOT currently uses the site for operations and maintenance storage because it is not suitable for other development.

Why is this location a good site for a large solar project?
•The large acreage site in West Linn would allow for “utility scale,” which lowers the price per kilowatt installed by spreading out the fixed costs of the project. Our demonstration project at the I-5/I-205 intersection proved that 1 Megawatt is the minimum we need to make financial sense, and larger is better.
•The West Linn site’s benched land and direct southern exposure are also ideal, allowing for maximum sun exposure and easier installation and maintenance.
•The close proximity of a PGE substation permits easy access to the grid.
•Arrays would be placed so they don’t interfere with future I-205 widening.

Will these panels create problems for drivers and residents on the Oregon City side?
The potential for glare from solar panels has been carefully studied over the years, with the conclusion that it is not a distraction for drivers. For example, one study showed no difference in driver behavior along an English roadway after solar panels were installed. Solar panels have been installed

at airports, including Denver, Long Beach, Fresno, and San Francisco, and other locations, demonstrating confidence that glare would not be an issue. In fact, solar panels are designed to absorb sunlight, not reflect it, to produce energy.

For residents on the Oregon City side of the interstate, views of the panels would be minimized by low-growing shrubs placed around the arrays. Currently, the view of this area includes ODOT maintenance equipment, supplies, and stacks of barriers 9 feet tall. For comparison, the tallest solar array would be just over 13 feet. To get an idea of what an array looks like, see the solar highway demonstration project in Tualatin at the intersection of I-5 and I-205. (Viewable at www.oregonsolarhighway.com)

How many panels will it take to make a 3 Megawatt solar array?
It depends on the panels selected for the project, but between 13,600 and 17,000 panels will be used to generate 3 million kilowatt hours of electricity, enough to power nearly 170 all electric homes annually.

What preparation would the site need to make it ready for the project?
ODOT would need to address the environmental impacts of preparing the site for a solar array (see description of preparation efforts, following) because preparing the site would require:
•Removing trees on the lower and upper benches so the array would not be shaded; and
•Filling in a small spring-fed wetland that occurred after ODOT stabilized the slope.

What measures will ODOT perform to address the tree removal, wetland fill, and visual impacts?
•ODOT is currently evaluating the environmental impacts associated with this site. Similar to any ODOT project, this project must address the National Environmental Policy Act (NEPA) requirements.
•If the site is ultimately approved, these studies include determining conditions of permit approval, working in cooperation with local and federal agencies such as the City of West Linn, Oregon Division of State Lands, the US Army Corps of Engineers and others.
•In addition, the City of West Linn and ODOT are exploring options for additional enhancements, such as a bicycle and pedestrian trail overlooking the array and an interpretive display about solar energy.

Does removing trees conflict with the gain of clean energy?
Large trees and solar panels do not exist well together, as shade greatly reduces the productivity of the panels. However, the carbon emissions reduced through the use of solar power have a greater positive impact to the environment than the amount of carbon sequestered in the soil by trees. There is accepted scientific methodology used to confirm this on a site-specific basis, and that analysis, along with many others, will be performed for each solar highway site to ensure that the overall benefit of the panels greatly exceeds any losses.

Will cutting down the trees create erosion and drainage problems?
No. Registered engineers will perform storm water and geotechnical studies prior to designing a storm water system for the site. These analyses will include a review of the existing drainage system in the vicinity of the project. The resulting storm water design would ensure all storm water flows are accommodated. We do know the soils on site are very thin, so root systems of the existing trees and other plants are lateral and shallow, not deep. In the past, a lot of material (over 100 feet of depth in some places) was removed from the site in order to stabilize the hillside down to bedrock. The geotechnical study will also ensure that the stability of the site will not be at risk if trees are removed and the solar installation is completed.

What will electricity generated at this site be used for?
Every kilowatt hour produced by Oregon Solar Highway projects will be credited to ODOT to power the transportation system. Because solar highway projects are located on land acquired with constitutionally dedicated highway funds, the electricity can only be used for the transportation system. How? For the demonstration project, solar energy produced by the array feeds into the grid during the day. At night, the meter essentially runs backward, as energy flows back from the grid to light the interchange. ODOT, through a Solar Power Purchase Agreement with PGE, buys the energy produced by the array at the same rate the agency pays for regular energy from the grid. This is essentially the same model contemplated for future solar highway projects, except that ODOT will receive a site license fee for use of the land.

What are the economic and financial considerations?
•A solar array of this size is estimated to create between 140 – 150 direct and indirect jobs.
•It would cost approximately $20 million to build this 3-megawatt site, and these costs would be paid for through a partnership similar to the one that paid for the first solar highway at I-5/I-205. It involves private financing, tax credits and public investment.
•Communities nearby may experience other ongoing economic benefits if they decide to include interpretive areas describing the site.

If the site includes a bike path and/or interpretive center, will that increase crime in the area?
Security measures are required around solar arrays, such as the one at I-5/I-205, and to date, they have proven effective at that site. The community of West Linn will have the opportunity to decide whether a trail or interpretive center is consistent with community interests and what design, security, and/or maintenance measures are needed to protect adjoining properties.

Will property values be adversely affected by a loss of view?
The view from Oregon City across the river from the site will change, but it will not be a loss of view. Traditionally, unless an easement protects a view, there is no property right to a specific view without a view easement. No known study supports the contention property values would be adversely affected by solar panels. Analogous studies imply any effect would be nominal and indistinguishable from any distance or over time.

On the solar project site, highway construction staging and maintenance activity are ongoing. In the immediate area near the solar panel site, there is a school bus parking lot, a sewage treatment plant, paper mills, and a major freeway, so finding out if solar panels by themselves affected property values would be difficult.

What about the costs associated with this large project?
While the cost of solar is coming down, it is still too expensive for ODOT to buy its own panels. Tax credits, accelerated depreciation, and utility incentives are necessary to finance our solar installations. But ODOT, as a governmental entity, doesn’t have a tax liability. So in order to take advantage of the tax credits and accelerated depreciation, ODOT would enter into a public-private partnership with a third party power provider — with the demonstration project, that partner was PGE. The third party finances, owns, operates and maintains the solar installation. PGE’s customers receive the benefit of the tax incentives, which makes it possible for PGE to secure renewable resources as required by law but at a lower cost to its customers. While the specifics of the business model can vary, they all include using:

- a 50 percent state Business Energy Tax Credit;
- a 30 percent federal investment tax credit;
- accelerated depreciation; and
- utility incentives available through the Energy Trust of Oregon to customers of PGE and Pacific Power (about 20 percent).

This model makes it possible for a third party power provider to sell energy from the installation that they own back to a solar “host” — which will be ODOT— at a cost no more than that paid for electricity from the grid. Through a net metering agreement, ODOT pays for electricity produced but makes no capital investment or investment in operations or maintenance. If the land is needed for some other transportation use, ODOT has call back rights.

If ODOT were to purchase the array, own, maintain and operate it without the option of tax credits and accelerated depreciation, it would take over 100 years to pay it off using savings from the energy generated and assuming current energy rates and regulatory structure. Under the third-party financing arrangement, ODOT receives green power that would usually cost 8 – 10 percent more at no greater cost than it would otherwise pay. ODOT then begins receiving net benefit the day the solar installation begins generating power.

Why not use wind power instead of solar power?
While wind turbines need sites with strong winds, solar arrays can be placed wherever there is good southern exposure to the sun. For that reason, solar arrays can be sited in communities where wind may not be possible. Siting solar resources in areas close to where the energy is used saves energy lost in transmission over long distances.

Why can’t this installation be placed in eastern Oregon where there is more sunshine?
Most of ODOT’s electricity load is in northwestern Oregon; ODOT gets more of its power to run the transportation system from PGE than any other utility in the state. With the West Linn site, each kilowatt hour produced by the solar array would be credited to ODOT, offsetting electricity ODOT would have needed from PGE. This is called net metering. Under Oregon law, an ODOT net-metered facility must be:

1.located in PGE’s service area;
2.on ODOT’s own property; and
3.for ODOT’s own use.

The proposed West Linn site would meet all of the statutory requirements. A project in central or eastern Oregon intended to supply energy to offset ODOT’s needs in PGE’s service area would not meet those statutory requirements. Having the project in PGE’s service area also saves transmission and distribution losses. For the three solar highway projects currently under consideration, those “line loss” savings would be enough to supply the electricity needed by 27 all electric Oregon homes over the life of the project.

Where else might ODOT place solar highways in Oregon?
ODOT is exploring several locations throughout the state, including an expansion of the existing I-5/I-205 project site, the Baldock rest area on I-5 northbound, and others outside the Portland metropolitan area. ODOT’s goal is to explore as many opportunities as possible for developing renewable resources to power the transportation system with 100% green power.

Does Oregon have enough sunshine for solar to work?
Yes, solar energy is the most abundant renewable energy resource in Oregon. According to the Renewable Energy Atlas of the West, Oregon has a 68 million megawatt-hour solar generation potential and could generate its annual energy use of 48 million megawatt-hours with partial development of these resources. Solar Oregon reports “Germany is installing more new solar energy systems per capita than any other country, yet its capitol, Berlin, receives less sun than the cloudiest location in Oregon, near Astoria.” See: http://www.solaroregon.org/learn/oregon-solar-resource

Are there plans to make a “phase 2” enlargement of this project?
No. Any significant later expansion is unlikely given cost considerations and the engineering challenges of locating panels on a slope, but any such expansion would go through its own public review process. Although the West Linn site could theoretically hold up to 6 megawatts of solar, the only project being considered is one that would have between 13,600 and 17,000 panels depending on the panels selected to generate 3 million kilowatt hours of electricity annually.

What is the life expectancy of solar panels, and how are they dealt with when they are no longer working?
Solar panels at the first solar highway project (I-5/I-205 interchange) used mono-crystalline modules manufactured by SolarWorld in Hillsboro and are warranted for 25 years. Based on past performance, it’s likely they will produce energy much longer. For example, SolarWorld panels made 27 years ago are still producing 87% of their original power, and the world’s first mono-crystalline solar panels made by Bell Labs in 1953 are still working today, 56 years later.

Solar panels can be recycled. SolarWorld, with its own recycling facilities, uses the materials as “seed” to grow new solar wafers, which make up the panels. Cells and modules made of recycled panels meet the same quality and performance criteria as modules from non-recycled materials. A recent move toward automation has streamlined recycling processes, making production of recycled products less energy-intensive than primary production.

All Oregon Solar Highway projects will require recycling from any solar panel supplier – if the company cannot commit to recycling the panels at the end of their useful life, the vendor will not be considered.

What about hazardous materials in solar panels?
Any solar panels installed in the Oregon Solar Highway projects would meet strict standards for ensuring no hazardous materials are released into the environment.

Is a byproduct of solar panel creation — silicon tetrachloride — something we should be concerned about here in the U.S.?
No — because we have strict environmental regulations. The Silicon Valley Toxics Coalition’s January 2009 white paper, Toward a Just and Sustainable Solar Energy Industry, says “Although it is easily recovered and reused as an input for silane production, in places with little or no environmental regulation, silicon tetrachloride can constitute an extreme environmental hazard.” The white paper cites an article in the Washington Post that reports environmental abuses in China, where there are no recycling facilities, but says “Because of the environmental hazard, polysilicon companies in the developed world recycle the compound, putting it back into the production process.” See earlier response about recycling facilities in Oregon.

I’ve read being next to electromagnetic fields can harm our health. Is this a problem with a large solar array?
Electromagnetic radiation is all around us – it is not inherently harmful. It is in the sunlight that warms the earth, and it is what is converted by solar installations into useful energy while producing few electromagnetic emissions of its own. In fact, studies show even in homes just 250 feet away, electromagnetic emissions would be less than those produced by a common household appliance such as a refrigerator, washing machine or television.

What about the UK report stating potential health problems?
The Health and Survey Executive (HE) Horizon Scanning Report, produced by a government agency in the United Kingdom in July 2009, discusses potential future health and safety implications of the growing use of solar in the United Kingdom. The intent of such reports is to foster development of the resources and skills to ensure that such potential implications do not become a reality. In Oregon, such potential health and safety issues are being addressed well. The following statements are from the referenced report:

The next generation of solar photovoltaic modules may use chemicals such as cadmium telluride or other chemicals that may present hazards in solar panel manufacturing and recycling. Solar manufacturing and recycling processes are and will be subject to regulation in the United States through state and federal environmental and occupational health and safety regulatory agencies.

With more solar photovoltaic panel installations there will be the need for installation and interconnection skills. Oregon has anticipated installation skill requirements and trains and certifies solar photovoltaic installers through the Energy Trust of Oregon. The Public Utility Commission of Oregon regulates interconnection requirements in Portland General Electric’s (PGE) service area and all solar photovoltaic installations completed in PGE’s service area must meet those requirements as approved by PGE.

Solar thermal power (STP) uses the sun’s energy to heat air or water and apparently may be interconnected to gas central heating requiring plumbing skills. There are no ODOT projects now contemplating using solar thermal power interconnected to gas central heating. Such gas interconnections are regulated in Oregon and would only be completed by qualified personnel following specific safety and code standards. Solar photovoltaic panels include no combustible gases.

What is the energy conversion plant or process?
The “energy conversion plant” is an inverter, which turns the direct current (DC) electricity produced by the solar panels into alternating current (AC) so it can be used on the grid. The inverters don’t show up on artist renderings because the exact number, location, and size of them has not been designed. They will be located behind the panels just as on the demonstration project site at the I-5 and I-205 interchange, at regularly spaced intervals.
PGE has two feeder lines on the West Linn site which would put the power on the grid; no new power lines would be needed. The ease of interconnection contributes to the quality of this site for a solar array.

What is the federal government’s concern about solar arrays on public lands?
The concerns of federal land management agencies over solar development are associated with the use of large tracts of land required for utility-scale solar development. Public lands were generally acquired for significant resource values other than solar resource development, but that’s not to say that solar resource development cannot be consistent with those resource values: it does mean that care must be taken to ensure that objective is fulfilled. ODOT is committed to ensuring that objective is fulfilled on the public lands for which it is the steward. If it can do so while also powering the transportation system with sustainable energy resources, the public interest is well served.

Isn’t the technology changing so rapidly that these solar panels will be outdated?
The newer generation of solar panels are larger and produce more energy than the previous generation. That does not mean that the earlier panels do not perform well. The smaller panels at the I-5 and I-205 interchange have performed very well. Both Oregon and the nation have committed to investing in renewable energy resource technology to further our collective goal of developing sustainable energy sources.

Further Q & A specific to the proposed West Linn Solar Project

Q: I understand the solar project will only produce around 20 percent of its rated capacity – or around 600 kilowatt hours instead of 3,000,000 kilowatt hours. Is that correct?
A: No, but an explanation is useful. The proposed West Linn Solar Highway project will have a “nameplate” capacity of 3 megawatts, which means it has the capacity to produce 3,000,000 kilowatt hours of alternating current electricity per year. An estimate for a solar array’s energy output in the Portland area is available through the US Department of Energy’s website: http://rredc.nrel.gov/solar/codes_algs/PVWATTS/version1/US/Oregon/Portla.... By entering 3,000 kW (which is 3 megawatts) as the DC (direct current) capacity, the USDOE model will show you the annual AC (alternating current) production of more than 3,000,000 kilowatt hours. However, solar facilities like the solar highway demonstration project may do even better than the basis for that estimate because of the high quality of the Oregon-made solar panels.

Q: Will the energy produced by the solar project go to ODOT?
A: Yes, it will. Under Oregon law, utility regulatory rules, and by legal contract, every kilowatt hour produced by the proposed solar array will be credited to ODOT.

Imagine that the utility grid is like the Willamette River and electrons on the utility grid are like molecules in the water. If a small stream trickles five gallons per minute into the Willamette River upstream in Molalla and you have a pipe in West Linn downstream that diverts five gallons per minute from the river, the pipe flow probably contains only few molecules from that stream in Molalla out of the billions of molecules present in the entire river. But West Linn has a legal, binding agreement, in keeping with Oregon law and utility regulations, with the river-keepers that guarantees that it gets those five gallons per minute, regardless if the molecules come from Molalla or a creek emptying into the Willamette somewhere else. That amount of water is legally West Linn’s – no one else can have it. The amount of electrons produced by the solar array are ODOT’s, no one else can use them according to the law, and ODOT will use that amount to power the transportation system, providing illumination to Interstate 205 in the West Linn area and elsewhere in PGE territory.

Q: Some say it would take over 100 years to pay off this project using energy cost savings alone. Is this really a smart financial move?
A: It’s true that new technologies and new applications cost more when they are first created, tested and then deployed. When comparing the costs of the solar highway to the status quo (fossil fuels) or to other potential resources (nuclear power), it is critical to take into account values such as long term environmental damage and carbon impacts, as well as public subsidies for nuclear and fossil fuels. For example, a solar project will produce significant relative net benefits immediately in terms of carbon emissions when compared to any fossil fuel plant.

For a longer view, consider the President’s 2009 US Department of Energy (DOE) budget. It included $156 million for the Solar America Initiative to help make solar cost competitive with conventional resources. It also included $595 million to continue development of (not implementation) a nuclear waste repository and more than $600 million for technology development (not implementation) to capture carbon from coal plants, plus another $1.65 billion in tax credits and low interest loan guarantees to accelerate development of such technologies. (See http://www.whitehouse.gov/omb/rewrite/budget/fy2009/energy.html) With multiple subsidies in place for both renewable and “conventional” resources, it is difficult to make an “apples to apples” cost comparison.

It’s not difficult, however, to consider the benefits of solar energy over other energy sources. Experts agree our current energy supply will not meet the increased demands of the future. The US DOE expects electricity consumption in the US to increase about 30 percent in the next 20 years. Meeting this challenge with renewables increases our energy security. Coal (which supplies around 40 percent of Oregon’s electricity) and most natural gas come from out of state; the money we spend on that energy leaves Oregon, and we are dependent on others to source it for us. Burning coal and natural gas also produces carbon dioxide, the most dangerous greenhouse gas. Developing our own clean green sources of energy provides energy stability and security, and the money – and jobs – stay here in Oregon.

Q: Why doesn’t ODOT just put this solar project in the desert? There’s more sun there.
A: Oregon law requires that solar projects be located on customer-owned property in the utility service area that serves the customer; in this case, the solar panel must be located on ODOT property and ODOT must use the electricity generated, and both the property and the energy use must be in the same utility service area. The transportation system in eastern Oregon doesn’t need that much electricity, so it doesn’t make sense to put a solar array in eastern Oregon. It does make sense to put it in PGE territory, in the Portland metropolitan area because that’s where ODOT uses the most electricity.

Here’s some perspective: The 2006-2008 US Census American Community Survey reports there are 10,117 housing units in West Linn. Of those, 7,346 are detached (single family). The Energy Trust of Oregon says that the average electric consumption in all electric homes is 19,164 kWhs per year and in gas heated homes it’s 9,336 kWhs per year. Not considering all other households, commercial, public or other uses, just the detached homes in West Linn will use between 67 million kWhs annually if all were gas heated and 141 million kWhs if all were electrically heated. The scale of the 3 million kWh solar project now has context.

The ODOT solar highway project being considered represents 2 percent to 4 percent of the electricity used just by these homes in West Linn, if the homes in West Linn average about 1800 square feet (the median size used by the Energy Trust). According to that same US Census community survey, homes in Oregon have 5.3 rooms on average while homes in West Linn have 6.6 or 25 percent more rooms on average –
which might suggest a higher average square foot size and therefore even higher electricity consumption as noted by the Energy Trust.

For those concerned about the project scale, it is worth noting that there is simply no comparison between what the solar highway will produce and what West Linn households alone consume today. Those 7,346 West Linn households use from 1.5 – 3 times the electricity required by the entire state transportation system. In just 8 –16 days, these households will use more electricity than the solar highway project will produce in a year – and yet through this project the sun shining on the ground around a highway maintenance yard could sustainably supply one-sixth of the electricity needed for the state highway system throughout PGE’s service area.

Q: What about the controversy surrounding the Business Energy Tax Credit (BETC)? People seem to be questioning its public benefit.
A: The Oregon Legislature established the BETC as a financing tool specifically to encourage public and private sector investment in renewable energy and conservation technologies. While there may be other financing tools to encourage renewable energy, from the standpoint of public policy the legislature preferred the BETC.

ODOT can only use the financing tools the Oregon legislature makes available to construct solar highway projects. Right now, that means ODOT will use the BETC for the solar highway projects. If the legislature alters its policies on renewable energy development, ODOT will use whatever financing tools the Oregon legislature provides.

Q: I heard that solar panels only have an expected life of only 25-30 years with a 20 percent degradation in output near the end of that period?
A: It’s interesting to note solar panels produced over 50 years ago are still producing energy today. The solar highway projects under contemplation are expected to produce clean, renewable, home-grown energy easily and efficiently for at least 30 years, and likely far past that. ODOT will have the option to extend the solar power agreements with PGE at the end of the first 25 year period, for up to 3 five year terms. If conditions allow, projects may extend past then as well.

Even though the warranty would be for 25 years, a considerably longer performance period is anticipated, and although the warranty is based on degradation of less than 19 percent over 25 years, a considerably lower degradation is anticipated. For the solar highway demonstration project, the conservation financing assumptions were based on a degradation of 0.5 percent per year, or less than 12 percent over 25 years (since the first year is at 100 percent).

Updated December 10, 2009

Further Q&A Specific to the Proposed West Linn Solar Project

Can you put the scale of the proposed West Linn solar highway project in perspective?
Yes. The proposed West Linn solar highway project will produce about 3.2 million kilowatt-hours of
electricity annually. On the average, the 7,497 single family homes in West Linn use more
electricity in 16 days than what will be produced annually by the proposed solar highway project.
For further comparison, the annual electricity use in the 290 single family homes in the nearby
Barrington Heights, Hidden Creek Estates & Tanner Woods Neighborhood Association (BHTNA) is
about the same as the electricity which will be produced every year by the proposed solar highway
project.

What does this mean? It means the electrical distribution system running through the West Linn
neighborhoods already supplies more electricity than the solar highway project will produce. So
while the proposed solar highway project is significant in terms of the electricity needed to power
the state transportation system, it represents a small percentage of the electricity flowing through
the neighborhoods. Together those homes use more electricity than the entire state transportation
system not just throughout the Portland area, but throughout Oregon.

I understand the solar project will only produce around 20 percent of its rated capacity – or around 600 kilowatt hours instead of 3,000,000 kilowatt hours. Is that correct?
No, but an explanation is useful. The proposed West Linn Solar Highway project will have a
“nameplate” capacity of 3 megawatts, which means it has the capacity to produce 3,000,000
kilowatt hours of alternating current electricity per year. An estimate for a solar array’s energy output in the Portland area is available through the US Department of Energy’s website:
http://rredc.nrel.gov/solar/codes_algs/PVWATTS/version1/US/Oregon/Portla.... By entering
3,000 kW (which is 3 megawatts) as the DC (direct current) capacity, the USDOE model will show
you the annual AC (alternating current) production of more than 3,000,000 kilowatt hours. However,
solar facilities like the solar highway demonstration project may do even better than the basis for
that estimate because of the high quality of the Oregon-made solar panels.

Will the energy produced by the solar project go to ODOT?
Yes, it will. Under Oregon law, utility regulatory rules, and by legal contract, every kilowatt hour
produced by the proposed solar array will be credited to ODOT.

Imagine that the utility grid is like the Willamette River and electrons on the utility grid are like
molecules in the water. If a small stream trickles five gallons per minute into the Willamette River
upstream in Molalla and you have a pipe in West Linn downstream that diverts five gallons per
minute from the river, the pipe flow probably contains only few molecules from that stream in
Molalla out of the billions of molecules present in the entire river. But West Linn has a legal, binding
agreement, in keeping with Oregon law and utility regulations, with the river-keepers that
guarantees that it gets those five gallons per minute, regardless if the molecules come from Molalla
or a creek emptying into the Willamette somewhere else. That amount of water is legally West Linn’s – no one else can have it. The amount of electrons produced by the solar array are ODOT’s,
no one else can use them according to the law, and ODOT will use that amount to power the
transportation system, providing illumination to Interstate 205 in the West Linn area and elsewhere
in PGE territory.

Some say it would take over 100 years to pay off this project using energy cost savings alone. Is this really a smart financial move?
It’s true that new technologies and new applications cost more when they are first created, tested
and then deployed. When comparing the costs of the solar highway to the status quo (fossil fuels)
or to other potential resources (nuclear power), it is critical to take into account values such as long
term environmental damage and carbon impacts, as well as public subsidies for nuclear and fossil
fuels. For example, a solar project will produce significant relative net benefits immediately in terms
of carbon emissions when compared to any fossil fuel plant.

For a longer view, consider the President’s 2009 US Department of Energy (DOE) budget. It
included $156 million for the Solar America Initiative to help make solar cost competitive with
conventional resources. It also included $595 million to continue development of (not
implementation) a nuclear waste repository and more than $600 million for technology development
(not implementation) to capture carbon from coal plants, plus another $1.65 billion in tax credits and
low interest loan guarantees to accelerate development of such technologies. (See
http://www.whitehouse.gov/omb/rewrite/budget/fy2009/energy.html) With multiple subsidies in place for both renewable and “conventional” resources, it is difficult to make an “apples to apples” cost
comparison.

It’s not difficult, however, to consider the benefits of solar energy over other energy sources.
Experts agree our current energy supply will not meet the increased demands of the future. The US
DOE expects electricity consumption in the US to increase about 30 percent in the next 20 years.
Meeting this challenge with renewables increases our energy security. Coal (which supplies around
40 percent of Oregon’s electricity) and most natural gas come from out of state; the money we
spend on that energy leaves Oregon, and we are dependent on others to source it for us. Burning
coal and natural gas also produces carbon dioxide, the most dangerous greenhouse gas.
Developing our own clean green sources of energy provides energy stability and security, and the
money – and jobs – stay here in Oregon.

Why doesn’t ODOT just put this solar project in the desert? There’s more sun there.
Oregon law requires that solar projects be located on customer-owned property in the utility service
area that serves the customer; in this case, the solar panel must be located on ODOT property and
ODOT must use the electricity generated, and both the property and the energy use must be in the
same utility service area. The transportation system in eastern Oregon doesn’t need that much
electricity, so it doesn’t make sense to put a solar array in eastern Oregon. It does make sense to
put it in PGE territory, in the Portland metropolitan area because that’s where ODOT uses the most
electricity.

Here’s some perspective: The 2006-2008 US Census American Community Survey reports there
are 10,117 housing units in West Linn. Of those, 7,346 are detached (single family). The Energy
Trust of Oregon says that the average electric consumption in all electric homes is 19,164 kWhs per
year and in gas heated homes it’s 9,336 kWhs per year. Not considering all other households,
commercial, public or other uses, just the detached homes in West Linn will use between 67 million
kWhs annually if all were gas heated and 141 million kWhs if all were electrically heated. The scale
of the 3 million kWh solar project now has context.

The ODOT solar highway project being considered represents 2 percent to 4 percent of the
electricity used just by these homes in West Linn, if the homes in West Linn average about 1800
square feet (the median size used by the Energy Trust). According to that same US Census
community survey, homes in Oregon have 5.3 rooms on average while homes in West Linn have
6.6 or 25 percent more rooms on average – which might suggest a higher average square foot size
and therefore even higher electricity consumption as noted by the Energy Trust.

For those concerned about the project scale, it is worth noting that there is simply no comparison
between what the solar highway will produce and what West Linn households alone consume
today. Those 7,346 West Linn households use from 1.5 – 3 times the electricity required by the
entire state transportation system. In just 8 –16 days, these households will use more electricity
than the solar highway project will produce in a year – and yet through this project the sun shining
on the ground around a highway maintenance yard could sustainably supply one-sixth of the
electricity needed for the state highway system throughout PGE’s service area.
What about the controversy surrounding the Business Energy Tax Credit (BETC)? People seem
to be questioning its public benefit.

The Oregon Legislature established the BETC as a financing tool specifically to encourage public
and private sector investment in renewable energy and conservation technologies. While there may
be other financing tools to encourage renewable energy, from the standpoint of public policy the
legislature preferred the BETC.

The BETC enables ODOT to engage the private sector to invest in and construct solar highway
projects on the highway right of way. The BETC allowed ODOT and PGE to develop the nation’s
first solar highway project at the I-5 and I-205 interchange (see www.oregonsolarhighway.com).
ODOT can only use the financing tools the Oregon legislature makes available to construct solar
highway projects. Right now, that means ODOT will use the BETC for the solar highway projects. If
the legislature alters its policies on renewable energy development, ODOT will use whatever
financing tools the Oregon legislature provides.

I heard that solar panels only have an expected life of only 25-30 years with a 20 percent
degradation in output near the end of that period?
It’s interesting to note solar panels produced over 50 years ago are still producing energy today.
The solar highway projects under contemplation are expected to produce clean, renewable, homegrown
energy easily and efficiently for at least 30 years, and likely far past that. ODOT will have the
option to extend the solar power agreements with PGE at the end of the first 25 year period, for up
to 3 five year terms. If conditions allow, projects may extend past then as well.

Even though the warranty would be for 25 years, a considerably longer performance period is
anticipated, and although the warranty is based on degradation of less than 19 percent over 25
years, a considerably lower degradation is anticipated. For the solar highway demonstration project,
the conservation financing assumptions were based on a degradation of 0.5 percent per year, or
less than 12 percent over 25 years (since the first year is at 100 percent).

If this project is viewed in terms of future energy resources, it’s valuable to note that all the energy
stored in the Earth’s reserves of coal, oil and natural gas is equal to the energy supplied by just 20
days of sunshine…and on the 21st day, the sun is still shining.

For more information about Oregon’s solar highway, visit www.oregonsolarhighway.com.

Click here to participate in West Linn’s online forum about the proposed solar highway project.

Stop by the West Linn Public Library or West Linn City Hall for more information about the proposed solar highway project.

Supporting Documentation