Energy Advisory Board February 2, 2005

1
Energy Advisory BoardFebruary 2, 2005

• Act 213
• Proposed Technical Guidance Overview
• PA DEP

2
Overview of Key Recommendations

• Environmental Standards
• Eligible Resource Delivery Requirements
• Resource Specific Standards
• Low Impact Hydropower
• Fuel Cells
• Pumped Storage
• Waste Coal
• Distributed Generation
• Coal Mine Methane
• Industrial Customers
• Demand-Side Management
• Net Metering and Interconnection

3
Department Authority

• Section 7(b) of Act 213 provides for the
  following responsibilities for DEP The
  Department shall ensure that all qualified
  alternative energy sources meet all applicable
  environmental standards and shall verify that an
  alternative energy source meets the standards set
  forth in section 2.

4
Environmental Standards

• Two qualifiers
• Must self-certify that they have all required
  state and federal permits, one-time certification
  unless there is a modification
• Must annually self-certify that they have no
  major compliance violations
• Out-of-state sources must meet permitting and
  compliance standards equivalent to PA

5
Eligible Resource Delivery Requirements

• Electricity from eligible sources must be
  delivered to retail customers in Pennsylvania
• EGCs and EDCs must acquire eligible electric
  power from within their RTO
• Penn Power MISO
• Orange and Rockland NYISO
• All Others PJM
• All electricity from qualifying sources generated
  and delivered to retail customers in Pennsylvania
  is eligible

6
Resource Specific Standards

• Low-Impact Hydropower
• Incremental improvements
• Capacity from the incremental improvements can
  count towards Tier I
• LIHI does not apply to new facilities how
  should we deal with in-stream sources?
• All other hydropower shall count towards Tier II

7
Resource Specific Standards (Continued)

• Fuel Cells
• No fuel input limitations
• Pumped Storage
• How should this be counted?
• Credit for generation used to offset peak loads?
  (This would be consistent with the Acts emphasis
  on load reduction/shifting)

8
Resource Specific Standards (Continued)

• Waste Coal
• Emphasize that credits are based on the
  proportion of waste coal utilized
• Should this be on a heat input basis?
• Distributed Generation
• Limited to Tier II resource inputs
• Coal-Mine Methane
• Only captured fugitive methane for electricity
  generation
• Does not include commercially developed coal-bed
  methane

9
Industrial Customers

• Standards should not apply to self-generators,
  even those registered as EGS who are
  self-generating (not currently in draft guidance)
• Self-generators generating electricity from
  eligible fuels own those credits unless other
  contractual arrangements have been made
• Recycled energy counts towards Tier II

10
Demand-Side Management

• All customer sectors eligible and should own
  their own credits
• Energy efficiency refers to reductions in overall
  energy usage. (Need to ensure that electricity
  is not shifted to another fuel source).
• Energy efficiency, new construction, major
  building retrofits, voluntary load shifting for
  customers greater than 1MW (periods of mandatory
  interruption only)
• MV based on actual metering, credits accrue
  based on a baseline year and actual reductions
• Industrial By-product/Energy Reuse customers
  own credits, measured by generation,
  environmental compliance rules apply

11
Net-Metering and Interconnection

• Basically recommend adoption of the NJ rules with
  some special provisions
• Retail for avoided usage, wholesale for excess
  supplied to the grid trued-up annually
• 50KW residential, 2 MW for all other customer
  classes, including farms
• Net-metering and interconnection combined
• Should apply statewide, including rural electric
  cooperatives
• Net Metering Tier I resources only
  Interconnection both tiers
• Customer-generators should own credits from
  generation

12
Next Steps

• Comments due on Feb. 11 send to Eric Thumma
• Revised draft based on the comments will be
  completed by March 1
• Published in the PA Bulletin with a 30 day
  comment period
• Questions and Comments Eric Thumma
• ethumma_at_state.pa.us