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2. Topics. Why legal / regulatory issues matterCharacterizing waste heat
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1. Legal & Regulatory Considerations for Waste Heat Development Current landscape & future prospects
2. 2 Topics Why legal / regulatory issues matter
Characterizing waste heat & its functions
Selling waste-heat-generated power to utilities
Federal & state support for waste heat development
Conclusions
Useful next steps
3. 3 Why legal/regulatory issues matter Sensible legal & regulatory treatment can –
4. 4 Characterizing waste heatFish, fowl or …? ‘Waste’
5. 5 Why it matters: Federal PURPA benefits Facilities producing electricity from waste heat can qualify for PURPA benefits, including:
6. 6 Why it matters: Federal PURPA benefits ‘Qualifying cogeneration facility’
7. 7 Why it matters: Federal production & investment credits ‘Production credit’ for electricity from some renewables
8. 8 Why it matters: State & local examples Direct financial incentives
9. 9 State Portfolio Standards Many states have adopted ‘portfolio standards’
10. 10 State Portfolio Standards(potential waste heat resources)
11. 11 Nevada RPS A qualified energy recovery process means:
12. 12 State Net Metering Programs Utilities normally buy power at wholesale, & sell to customers at retail
Net metering allows self-generators to offset their excess production (otherwise valued at wholesale) against their retail purchases
Essentially self-executing – minimizes transaction costs for customers & utilities
States limit eligible system size
range: 10kW – 2 MW
typical: 25 kW – 100kW
States define eligible resource types & customers
13. 13 State Net Metering Programs:eligible resource types
14. 14 Conclusions Legal & regulatory treatment will strongly affect the direction & value of waste heat development
Waste heat is characterized in diverse ways, without clearly articulated policy rationale
Waste heat projects appear eligible for important financial & market incentives already in place, but largely untested so far in the waste heat context
Developing coherent, consistent & defensible regulatory policy will simplify the work of waste heat proponents, & catalyze more widespread resource development
15. 15 Useful Next Steps Develop a more comprehensive understanding of the existing legal & regulatory landscape
Develop a coherent policy rationale for treatment of waste heat-to-power
Develop model legislation & regulatory approach to enhance certainty for providers & customers