Public Fuel Cell Alliance Fuel Cell and Hydrogen Technology Commercialization

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Public Fuel Cell AllianceFuel Cell and Hydrogen
Technology Commercialization

• Public Utilities Commission of Ohio
• Case No. 05-1500-EL-COI
• TECHNICAL CONFERENCE STAND-BY POWER
• (In response to EPAct 2005)
• March 23, 2006
• Cameron Brooks
• Project Director

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Clean Energy States Alliance

• Multi-state consortium of 17 funds in 13 states
• Nearly 4 billion to invest in next ten years

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Public Fuel Cell Alliance
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PFCA Strategic Objectives

• PFCAs overall goals include
• Increase coordination of public programs
• Leverage opportunities to increase state and
  regional funding
• Pursue regional commercialization strategies
• Enhance program effectiveness through targeted
  applications
• Engage with leading strategists on technology
  innovation

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New Opportunities for Ohio

• PFCA experience with states suggests
• Advanced Technologies Demand Advanced Regulations
• Regulatory Models Exist to Encourage Clean
  Distributed Generation
• Ohio Has The Opportunity For True Leadership
• Technology Innovation Requires Coordination

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Tariff and Standby Charges
Highlight innovative exemptions in -
California - New York - Massachusetts Recomm
endations for state action

• Peregrine Energy Group
• October 2005

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Standby Charges and Fuel Cells

• Standby Charges Likely Have Larger Effect on Fuel
  Cell Projects
• Wind, Biomass, Geothermal, etc.Wholesale
  transactions with transmission network
• Fuel CellWholesale/retail transaction with
  distribution grid
• PhotovoltaicsBehind-the-meter retail
  transaction (net metering)

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• NStar hit for waving BU off plan for fuel cell
• The effect of what NStar is recommending is
  very clear
• It is to eradicate the market for distributed
  generation. It's a market we desperately need to
  develop for
• economic development, energy efficiency, and
  environmental protection.
• NStar's proposals have had a very chilling
  effect on a half-dozen big projects
• Boston Globe
• March 2004

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Standby Rates

• Massachusetts DTE
• Decision in 2004 to settle NSTAR Case
• Allows Standby Rate Exemption for
• Onsite generation lt 250 kW
• Onsite generation between 250 kW - 1 MW (if lt
  30 of the customers load)
• All clean energy technologies eligible for
  support from the Massachusetts Renewable Energy
  Trust, (PV, wind, fuel cells, landfill gas,
  hydro, and low emission, advanced biomass)
• Fuel cells powered by natural gas are exempt only
  up to 2 MW per project and up to 10 MW total in
  the NSTAR service territory.

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Standby Rates

• New York
• Designated Technology Customers operational by
  May 31, 2006.
• (a) Fuel cells, wind, solar thermal, PV,
  sustainable managed biomass, tidal, geothermal,
  or methane waste or (b) small, efficient
  combined heat and power of less than 1 MW.
• PSC now seeking public comment on possible
  extension of the deadlines
• Also established favorable policies for gas
  distribution
• gives incentives for more efficient use of gas
  infrastructure (02-M-0515)

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Standby Rates

• California
• Distributed CHP and renewable resources
  installed between May 1, 2001 - Dec 31, 2004. (lt
  5MW, expires June 1, 2011)
• Ultra Clean Resources installed between January
  1, 2003 - Dec 31, 2005. (Renewables and fuel
  cells fueled by natural gas.) (lt 5MW, also
  expires June 1, 2011) The exemption is limited to
  generators no greater than 5MW. This exemption
  also expires June 1, 2011.
• Extending net metering for fuel cells

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Standby Rates

• Connecticut
• New Distributed Generation Law (HB7501)
• 1 by 2007 rising to 4 by 2010
• Capital subsidies (200-500/kW)
• Capped at 65MW for system
• competitive bid to provide long-term financing,
  advanced power monitoring and metering equipment
• Provision for expedited siting of DG resources
• Exempts new customer-side distributed resources
  from backup charges if a system's capacity is
  less than peak load
• In tandem with CCEFs On-Site Renewable DG
  Program (21m)

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New DG Provisions and State Action

• Many States are Responding to key DG provisions
  within EPAct of 2005, notably
• 1251 Net Metering
• Amends PURPA to require net metering
  availability
• 1252 Smart Metering
• Within 18 months, utilities to offer time-based
  electric rate schedule
• 1253 Cogeneration and Small Power
• Eliminates mandatory purchase and sale
  requirements of PURPA
• 1254 Interconnection
• Each electric utility shall make available
  interconnection service
• Ohio can establish leadership role

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New Report Energy Security Emergency
Preparedness
Available for download from www.cleanenergystates
.org
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• Sprint is in the early stages of a major new
  deployment
• 150 backup units in 2006
• Fortune 100 commitment
• New Florida proposal for sales and income tax
  incentives
• Could expand existing plan
• Security
• Telecommunications infrastructure
• Redirecting critical resources (trucks, fuel,
  engineers, etc.)
• PV-hybrid systems in test stages

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• Even as we confront the human tragedy, the
  consequences will also force us to think more
  expansively about energy security, and to focus
  harder on a matter which other events have
  already emphasized
• The need for new infrastructure and investment in
  our energy sector.
• Katrina's shock underscores a transition in the
  idea of energy security.
• OpEd by Daniel Yergin
• September 2, 2005

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Technology Transitions
The Public Fuel Cell Alliance represents one
organization that is well-positioned to help
connect and coordinate disparate research
findings, as well as share the learning-by-doing
that derives from early commercialization
efforts.

• Andrew Hargadon
• Director of Technology Management Programs
• Graduate School of Management
• U.C. Davis

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Advanced Energy Policy
What are best strategies to model regulatory
safe harbors for fuel cell and emerging
advanced energy technologies? Advanced Energy
Technologies Demand Advanced Regulation Ohio
Has Opportunity For Continued Leadership (Already
an order of magnitude beyond other states)
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Contact Information

• Cameron Brooks
• Clean Energy Group
• [phone]
• cameron_at_cleanegroup.org
• www.cleanegroup.org
• www.cleanenergystates.org