Landfill Methane Outreach Program 6th Annual Conference & Project Expo

January 7, 2003

Stephen S. KallandNC Solar Center - NC State University

(919) 513-1896Steve_Kalland@ncsu.edu

The North Carolina Solar Center:

Programs of Interest to LMOP

The North Carolina Solar Center

Created in 1988 as a “spin-off” of Solar House that was constructed in 1981 - became university center in 1992

NCSU College of Engineering

Mission: to help integrate renewable energy into state energy policy and portfolio for homes, schools, institutions, businesses, vehicles

Partners: NCSU College of Engineering, NC State Energy Office, NC Dept of Natural Resources, USDOE, NREL, DUKE Solar, IREC, NAIMA, BP, other corporations

Relevant Programs

NC GreenPower Industrial Extension Programs DSIRE Project National Interconnection Project

Net Metering and Simplified Interconnection (States and FERC)

NC GreenPower

NC Solar Center has seat on program Advisory Board and Strongly Supports LFG Technologies in the Program

Statewide Green Power Program

Demand Driven – 100 kWh Blocks Sold

Separate “Premium” and “Bulk Purchase” Products

Projected LFG Premium 3.3 ¢ – 2.5¢

Industrial Extension Programs

NCSU and the Solar Center NCSC RE Industrial Assessment

Program Industrial Extension Service (IES) Industrial Assessment Center (IAC) Industries of the Future (IOF)

Wood products, Chemicals, Agriculture, Mining

“North Carolina is a national pioneer in developing landfill gas utilization projects for small landfills. At the small Yancey/Mitchell County landfill a unique partnership of public, private, nonprofit, economic and educational consortiums worked together to implement a unique plan. A second project at Avery County has secured funding and the gas collection system will be installed in the fall of 2000.”

-- From EPA 430-R-00-010, A Primer on Developing North Carolina’s Landfill Gas Utilization Potential

EnergyXchange formed to develop the Yancey/Mitchell County landfill project.

DSIRE Project

Current & Accurate Information on Incentives, Programs & Policies

Access to Documentation & Legislation

Links to Program Websites

Contact Information

Search Capabilities

Summary Tables and Maps

DSIRE Project Modules

State Financial Incentives

State Regulatory Policies & Programs

Utility Programs & Incentives

Schools Going Solar

Local Gov’t & Community Programs & Incentives

Federal Incentives

Financial Incentives

Grants, Rebates & Loans Personal Tax Incentives Corporate Tax Incentives Sales Tax Incentives Property Tax Incentives Industry Recruitment Leasing & Sales Programs Production Incentives

Rules, Regulations & Policies

Public Benefits Funds Generation Disclosure Renewables Portfolio Standards Net Metering & Interconnection Line Extension Analysis Solar & Wind Access Laws Construction & Design Policies Contractor Licensing Equipment Certification Installer Certification/Accreditation Required Green Power Programs

Investment & Investment & Awareness

Education & Assistance Programs

Outreach & Research Centers Demonstration Projects Green Aggregation Green Pricing Programs

National Interconnection Project

Sponsored by IREC and US DOE www.irecusa.org/connect

Technical Assistance to States and Utilities for Developing Interconnection Rules Interconnection Workshops Direct Q&A Response

Project Serves As an Information Clearinghouse on Interconnection Issues Interconnection Newsletter “Connecting to the Grid” Website -

www.irecusa.org/connect

Interconnection Cost

This issue is seen as greatest barrier to DG by customer, DOE and EPA LMOP

Line study and upgrade cost need to be determined by CP&L in a timely fashion

Will require 100kVa 3 Ø transformer bank Can charge upgrade against Schedule CSP-

20B at 1% per month Metering requirements need to be

determined by CP&L, but should be less than $500

What Is Net Metering?

Allows customers to spin their meter backward, using excess renewable generation to offset utility-purchased electricity on a periodic basis (usually a monthly billing period, sometimes an annual period);

Effectively values all renewable generation (up to parity) at retail rates; any excess generation is sold at the lower ‘avoided cost’ rate, or is uncompensated;

Most meters used in residential and small commercial applications are bi-directional, making net metering easy to implement without meter replacement.

Status of Net Metering

~39 States have at least some areas with net metering available

Latest News: The Good - WY, DC, FL? The Bad (but not too bad) - OH The Ugly - CO, MO Others - KS, IN, UT, KY, WV

~39 states have “something”

Net Metering Programs:

Not All Are Created Equal

Net Metering For All Consumers

•7 States Limit by Class (i.e. Residential, Commercial, Industrial)

•12 States Do Not Include All Types of Electricity Providers (i.e. IOUs, Munis, and Coops)

Net Metering Programs:

Not All Are Created Equal

Simple Net Metering For All Consumers

The Next Step Is To Identify Which States Have Simple Procedures for Technical Interconnection and Contractual Agreements

Interconnection Issues

-No Simple Standard Agreement Form

-Interconnection Not Addressed or Requires More Than IEEE, UL and NEC only

Net Metering Programs:

Not All Are Created Equal

Interconnection: Technical Issues

The Problem: Utilities are responsible for maintaining the safety and

reliability of the grid, and have legitimate concerns about the interconnection of equipment to the network.

BUT, utilities face a conflict of interest because they have an incentive to discourage self-generation by customers.

The Solution: Uniform adherence to codes and standards developed

by nationally-recognized independent authorities, such as IEEE, UL, and NEC.

Technical Standards Adoption

Twenty-two states have adopted interconnection standards for net metering based on UL/IEEE

A number of additional states are addressing interconnection standards

States have started addressing interconnection standards outside of the net metering context -- very important for larger RE applications not eligible for net metering

Solid - rules process completeStriped - rules process in progress

Adoption of Technical Standards

Adoption Is Not Implementation

Streamlining interconnection involves three essential steps:

Development of standards => (almost) DONE!

Adoption of standards => IN PROGRESS . . .

Implementation of standards => STILL TO COME . . .

Example -- California: Implementation required nearly five years, and required the repeated intervention of the legislature, the PUC, the CEC, CalSEIA and other stakeholders

FERC Interconnection – Small Generators

Would standardize interconnection for all generator interconnections

FERC has expedited procedures for small generators under 20 MW

Small Generator representatives detailed the 20 MW exemption for: 2 to 20 MW | below 2 MW

Application Process Overview

Scope of process shrinks considerably when expedited

ANOPR defines a series of criteria depending on size threshold

Generator Application

>20MW?

Full Application

Process

Interconnect Agreement

>2MW?

Expedited Application

Process Super Expedited

Application Process

Meets Criteria?

Yes

Yes

Yes

Size Threshold Categories

Less than 2 MW (Attachment A) certified equipment de minimis grid impact no transmission Load response only?

2-20MW (Attachment B) check for transmission impacts could follow Att. A

When will all of this be over?

Consensus document filed Nov. 14 Comments due on ANOPR – Dec 20 FERC “Queing” Technical

Conference – Jan 21 FERC to issue proposed Rule ~

Feb/Mar New rule in place ~ May/June 2003

For More Information

Interconnection & Green Power Issues

Steve KallandAssociate Director,

Policy and Development

NC Solar Center at NC State University

919-513-1896steve_kalland@ncsu.edu

DSIRE Project

Sue GouchoeManager, Policy AnalysisNC Solar Center at NC

State University919-513-3078sue_gouchoe@ncsu.edu