EPA's Commitment to Clean Distributed Energy Resources

1
EPA's Commitment to Clean Distributed Energy
Resources
Tom Kerr, Chief, Energy Supply Industry
Branch Climate Protection Partnerships
Division June 28, 2001
2
The DG Opportunity

• Distributed Generation (DG) offers an opportunity
  to dramatically reduce the environmental
  footprint of power generation
• reduced line losses
• Combined Heat and Power (CHP) can achieve
  efficiencies of 80 and higher
• renewable energy applications
• But DG can also be less efficient and
  environmentally harmful

3
EPAs Messages

• Clean, Efficient DG
• Can break the link between rising energy demand
  and air pollution
• Can reduce the use of existing fossil-fired power
  
• Clean distributed energy technologies and
  policies are available today
• Market barriers prevent greater use of clean DG

4
EPAs Objectives

• Create a level playing field for clean DG
• lack of recognition in environmental regulations
  of increased efficiency of DG
• inconsistent tax treatment
• lack of objective information about the many
  benefits that clean DG has to offer
• interconnect issues
• Provide permitting flexibility within current law
  for highly efficient technologies

5
Quantifying DER Emissions Impacts The Challenge

• Difficult to quantify what is being displaced
  from the Grid
• Varies dramatically by time of day/year
• Varies dramatically by region
• Now vs. 5 or 10 years from now
• At CHP projects, need to understand what
  emissions are displaced by thermal output
• EPA developing approved methodology for
  estimating emissions benefits of DG

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Regional Variability in Electric Generation
Resources
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EPA Actions

• Most DG is not Federally regulated
• Advocating environmental policies and regulations
  that promote clean DG
• flexibility in our New Source Review program
• Output-based emissions standards for DG, with
  recognition of CHP output
• Output-based emissions allocations within NOx SIP
  Call (set-asides)
• Promoting CHP in target markets through new CHP
  Partnership
• Investigating Energy Star label for packaged CHP
  units

8
EPA Tools and Policy Guidance

• Guidance document on output-based DG standards
• Catalog of technologies
• Participation in RAP DG Model Rule effort
• Inventory of Diesel Generators
• with NESCAUM
• Modeling DG/CHP environmental benefits
• with the Center for Clean Air policy
• Publicly available methodology for calculating
  emissions benefits of DG/CHP

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Additional Resources

• EPAs E-GRID Database
• Can assist in the development of inventories,
  output-based standards, establishing baselines
• New E-GRID Features
• Mergers, divestitures captured
• Plant specific NUG data included
• Mercury data for 450 plants
• Fuel-specific emissions rates
• Forthcoming E-GRID Features
• Power flows between grid regions (FERC)
• State imports exports
• Emissions Profile Tool

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Addl. Resources Continued

• Web-Based State Policy Toolkit--compendium of
  policies to promote clean energy
• Supplemental Environmental Projects (SEPs) for
  clean energy
• Emissions disclosure using E-GRID

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For More Information

• For information about CHP/DG
• Joe Bryson, tel. [phone] email
  bryson.joe_at_epa.gov
• For information about E-GRID and state policy
  toolkit
• Chloe Weil, tel. [phone] email
  weil.chloe_at_epa.gov
• We welcome feedback on state policy toolkit and
  to work with us in FERC/RTO dialogue
• Download E-GRID at www.epa.gov/airmarkets/egrid