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Northeast States-EPA Workshop on Siting Renewable Energy Projects at Closed Solid Waste Landfills and Contaminated Sites. Pat Stanton Conservation Services Group June 2008. Who is CSG?. Founded in 1984; nonprofit corporation 300 staff, 12 offices nationwide
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Northeast States-EPA Workshop on Siting Renewable Energy Projects at Closed Solid Waste Landfills and Contaminated Sites Pat Stanton Conservation Services Group June 2008
Who is CSG? • Founded in 1984; nonprofit corporation • 300 staff, 12 offices nationwide • US EPA Climate Leader - committed to Net Zero GHG emissions • Design, develop, and deliver energy efficiency and clean energy programs and projects • Clean Energy Markets Group founded in 2002 to assist Clean Energy Projects access emerging markets • Transact ~ $20 million in RECs per year
Message from the ISO and RGGI • New large central station coal plants are not likely to be in our future • Carbon Emissions • Line loses for transmission and distributions • Costs of transporting coal • Can not be sited near load • More distributed generation (both on grid and on customer side of the meter) • More renewables – supported by RPSs • More energy efficiency
Is there a Match? #1 challenge for new renewable projects? Siting, Siting, Siting Closed Landfills and Contaminated Sites • Lower NIMBY resistance • Potentially strategic locations in NEMA, SEMA, and CT
Understanding Incentives • Energy • Capacity • Tax and production credits • RGGI – Climate Change • Renewable Portfolio Standards • Utility or state backed long term contracts
Energy • LMP (Locational Marginal Pricing) • Higher prices • NEMA, SEMA & CT • NYC, Long Island and Southeast NY • Lower prices • ME, NH, VT & WEMA • Upstate and Western CT • Further locational incentives by distribution companies
Capacity • Forward Capacity Markets in ISO-NE • Very structure process • Very time sensitive for developers • Benefit of five year contract in advance • Annual Capacity in NY-ISO • If you show up you can participate • Exploring forward strategy
Tax and Production Credits • Often critical to project finance • Different technologies covered by different provisions • “sunset” creates REAL timeline crisis
Why Renewables don’t get offsets under RGGI • Conundrum of “indirect emissions” • RGGI solution/ one of multiple possible approaches • Good News: Strong RPS REC markets going forward • Bad News: Don’t know if a national program will include same strategy.
RPS Eligible RECs • State set requirement levels (demand) • Private investment determines supply • Supply/Demand balance dictates price • Up to a price ceiling set by the states • No price floor
Contact Information Patricia Stanton Stephanie Hamilton Vice President, Clean Energy Markets Legal Affairs and Policy Analyst Conservation Services Group Conservation Services Group 40 Washington Street 40 Washington Street Westborough, MA 01581 Westborough, MA 01851 Phone 508-836-9500 x 13297 Phone 508-836-9500 x 13285 Cell 508-740-2836 Cell 508-439-0417
Connecticut RPS Class III • First Compliance year 2007 • Eligible Resources: 1) Combined Heat & Power 2) Conservation and load-management programs 3) Demand Response • Only Commercial and Industrial (C&I) measures • Independent verification required
Connecticut RPS Class III continued. . . • Retain ownership of Class III REC or sell to Fund • NEPOOL GIS enhanced for Class III RECs Public Act No. 06-74 • Lifts the ban on imports • Class I eligible biomass plants must now burn “sustainable biomass” , no C& D Public Act 07-242 • Effective on October 10th, 2007, extends the CT RPS requirement beyond 2010, until 2020.
Massachusetts RPS Provisions under New Energy Bill • Creates a Tiered classification program • Class I New Renewables with limited technologies • Class II old renewables or technologies not Class I eligible • Class III coal gasification. • Annual demand increase from ½ % to 1% starting 2010. • New requirements for renewables importing from outside of ISO-NE
Rhode Island RES • 2007: first compliance year • 2 categories: New (post-1997) and Existing Resources (pre-1998) • Third party verification for behind-the-meter generation required • NEPOOL GIS rule change to allow third party verification to enter data in the tracking system
Maine RPS • Public Law Chapter 403, enacted on June 22nd, 2007, requires that 10% of Maine electricity be produced by new resources by 2017. • Begins in 2008 at 1%, and scales up 1% a year until 2017. • New: anything in-service after September 1st, 2005; or any incremental generation after September 1st, 2005.
New Hampshire • Effective July 10, 2007; requires 23% and in 2025, 23.8% • Class I - New Renewable Energy: operation after January 1, 2006: • Class II - New Solar: operation after January 1, 2006. • Class III - Existing Biomass(>25MW) and Methane: operation prior to January 1, 2006: • Class IV - Existing Small Hydroelectric, 5MW or less • Docket is open to develop regulations
Vermont • Goal: meet demand increase 2005-2012 with renewable energy resources and energy efficiency • If goal is not met by 2013 then it becomes a Renewable Portfolio Standard
Summary • RPS policy continues to change and develop in New England • The New England RPS experience can provide valuable lessons to other states developing their RPS