SB 315: CHP/WER Overview Shawn Nelson, Senior Policy Director Mike Fraizer, Senior Policy Advisor CHP/WER Workshop September 13, 2012 PUCO
SB 221 Recap • 2008’s Senate Bill 221 created a three “tier” Alternative Energy Portfolio Standard • Renewable Energy • Energy Efficiency • Advanced Energy • Slight modifications were made to these tiers in 2012’s SB 315
The Renewable Tier SB 221: created a Renewable Portfolio Standard (RPS) in which 12.5% of Ohio’s electricity must be generated from renewable energy resources by 2025. SB 315: included Waste Energy Recovery (WER) systems, which utilize the capture of waste energy that would otherwise be vented and convert it to electricity, under the definition of a renewable energy resource.
The Renewable Tier • What does this mean? • WER projects that are constructed on or after the effective date of SB 315 on September 10, 2012 can obtain Renewable Energy Credits (RECs) for the energy they produce and can then trade those credits on the open REC market.
The Energy Efficiency Tier SB 315 allows fossil fuel fired CHP systems and WER systems to count toward an Ohio utility’s Energy Efficiency Requirements.
The Energy Efficiency Tier • What Does This Mean? • CHP and/or WER projects can work with a utility’s Energy Efficiency Team to file with the PUCO and receive funding via the utility to offset the costs associated with constructing a new project.
The Advanced Energy Tier SB 221 allows for 12.5% of electricity generation to come from advanced energy resources by 2025, of which WER and CHP projects have always qualified.
SB 315 Impact • WER can be counted as a renewable energy resource, advanced energy resource, or toward an Ohio utility’s energy efficiency requirements. • CHP can be counted as an advanced energy resource or toward an Ohio utility’s energy efficiency requirements. • Double counting of resources is NOT allowed in SB 315.