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Electronic Code of Federal Regulations

e-CFR Data is current as of April 16, 2014

Title 40: Protection of Environment
PART 73—SULFUR DIOXIDE ALLOWANCE SYSTEM


Subpart F—Energy Conservation and Renewable Energy Reserve


Contents
§73.80   Operation of allowance reserve program for conservation and renewable energy.
§73.81   Qualified conservation measures and renewable energy generation.
§73.82   Application for allowances from reserve program.
§73.83   Secretary of Energy's action on net income neutrality applications.
§73.84   Administrator's action on applications.
§73.85   Administrator review of the reserve program.
§73.86   State regulatory autonomy.
Appendix A to Subpart F of Part 73—List of Qualified Energy Conservation Measures, Qualified Renewable Generation, and Measures Applicable for Reduced Utilization

Source: 58 FR 3695, Jan. 11, 1993, unless otherwise noted.

§73.80   Operation of allowance reserve program for conservation and renewable energy.

(a) General. The Administrator will allocate allowances from the Conservation and Renewable Energy Reserve (the “Reserve”) established under subpart B based on verified kilowatt hours saved through the use of one or more qualified energy conservation measures or based on kilowatt hours generated by qualified renewable energy generation. Allowances will be allocated to applicants that meet the requirements of this subpart according to the formulas specified in §73.82(d), and in the order in which applications are received, except where provided for in §73.84 and §73.85, until a total of 300,000 allowances have been allocated.

(b) Period of applicability. Allowances will be allocated under this subpart for qualified energy conservation measures or renewable energy generation sources that are operational on or after January 1, 1992, and before the date on which any unit owned or operated by the applicant becomes a Phase I unit or a Phase II unit.

(c) Termination of the Reserve. The Administrator will reallocate any allowances remaining in the Reserve after January 2, 2010 to the affected units from whom allowances were withheld by the Administrator, in accordance with section 404(g), for purposes of establishing the Reserve. Each unit's allocation under this paragraph will be calculated as follows:

eCFR graphic ec10no91.004.gif

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(Allowances will be rounded to the nearest allowance)

[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]

§73.81   Qualified conservation measures and renewable energy generation.

(a) Qualified energy conservation measures. A qualified energy conservation measure is a demand-side measure not operational until the period of applicability, implemented in the residence or facility of a customer to whom the utility sells electricity, that:

(1) Is specified in appendix A(1) of this subpart; or

(2) In the case of a device or material that is not included in appendix A(1) of this subpart,

(i) Is a cost-effective demand-side measure consistent with an applicable least-cost plan or least-cost planning process that increases the efficiency of the customer's use of electricity (as measured in accordance with §73.82(c)) without increasing the use by the customer of any fuel other than qualified renewable energy, industrial waste heat, or, pursuant to paragraph (b)(5) of this section, industrial waste gases;

(ii) Is implemented pursuant to a conservation program approved by the utility regulatory authority, which certifies that it meets the requirements of paragraph (a)(2)(i) of this section and is not excluded by paragraph (b) of this section; and

(iii) Is reported by the applicant in its application to the Reserve.

(b) Non-qualified energy conservation measures. The following energy conservation measures shall not qualify for Allowance Reserve allocations:

(1) Demand-side measures that were operational before January 1, 1992;

(2) Supply-side measures;

(3) Conservation programs that are exclusively informational or educational in nature;

(4) Load management measures that lead to economic reduction of electric energy demand during a utility's peak generating periods, unless kilowatt hour savings can be verified by the utility pursuant to §73.82(c); or

(5) Utilization of industrial waste gases, unless the applicant has certified that there is no net increase in sulfur dioxide emissions from such utilization.

(c) Qualified renewable energy generation. Qualified renewable energy generation is electrical energy generation, not operational until the period of applicability, that:

(1) Is specified in appendix A(3) of this subpart; or

(2) In the case of renewable energy generation that is not included in appendix A(3) of this subpart is#:

(i) Consistent with a least cost plan or a least cost planning process and derived from biomass (i.e., combustible energy-producing materials from biological sources which include wood, plant residues, biological wastes, landfill gas, energy crops, and eligible components of municipal solid waste), solar, geothermal, or wind resources;

(ii) Implemented pursuant to approval by the utility regulatory authority, which certifies that it meets the requirements of paragraphs (c)(2)(i) and (c)(2)(ii) of this section and is not excluded by paragraph (d) of this section; and

(iii) Is reported by the applicant in its application to the Reserve.

(d) Non-qualified renewable energy generation. The following renewable energy generation shall not qualify for Allowance Reserve allocations:

(1) Renewable energy generation that was operational before January 1, 1992;

(2) Measures that reduce electricity demand for a utility's customers without providing electric generation directly for sale to customers; and

(3) Measures that appear on the list of qualified energy conservation measures in appendix A(1) of this subpart.

[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]

§73.82   Application for allowances from reserve program.

(a) Application Requirements. Each application for Conservation and Renewable Energy Reserve allowances, shall:

(1) Certify that the applicant is a utility;

(2) Demonstrate that the applicant, any subsidiary of the applicant, or any subsidiary of the applicant's holding company, is an owner or operator, in whole or in part, of at least one Phase I or Phase II unit by including in the application the name and Allowance Tracking System account number of a Phase I or Phase II unit which it owns or operates and for which it is listed as an owner or operator on the certificate of representation submitted by the designated representative for the unit pursuant to §72.20 of this chapter;

(3) Through certification, demonstrate that the applicant is paying in whole or in part for one or more qualified energy conservation measures or qualified renewable energy generation (that became operational during the period of applicability) either directly or through payment to another person that purchases the qualified energy conservation measure or qualified renewable energy generation;

(4) Demonstrate that the applicant is subject to a least cost plan or a least cost planning process that:

(i) provides an opportunity for public notice and comment or other public participation processes;

(ii) evaluates the full range of existing and incremental resources in order to meet expected future demand at lowest system cost;

(iii) treats demand-side resources and supply-side resources on a consistent and integrated basis;

(iv) takes into account necessary features for system operation such as diversity, reliability, dispatchability, and other factors of risk;

(v) may take into account other factors, including the social and environmental costs and benefits of resource investments; and

(vi) is being implemented by the applicant to the maximum extent practicable.

(5) Demonstrate that the qualified energy conservation measure adopted or qualified renewable energy generated, or both, are consistent with the least cost plan or least cost planning process;

(6) If the applicant is subject to the rate-making jurisdiction of a State or local utility regulatory authority, its least cost plan or least cost planning process has been approved or accepted by the utility regulatory authority in the State or locality in which the qualified conservation measure(s) are adopted or in which the qualified renewable energy generation is utilized, and such State or local utility regulatory authority certifies that the least-cost plan or least-cost planning process meets the requirements of paragraph (a)(4) of this section;

(7) If the applicant is not subject to the rate-making jurisdiction of a State or local regulatory authority, its least cost plan or least cost planning process has been approved or has been accepted by the utility regulatory authority with rate-making jurisdiction over the applicant, and such utility regulatory authority certifies that the least cost plan or least cost planning process meets the requirements of paragraph (a)(4) of this section;

(8) If the applicant is an independent power production facility that sells qualified renewable energy generation to another utility, the applicant has enclosed documentation that such qualified renewable energy generation was purchased pursuant to the purchasing utility's least cost plan or least cost planning process, which has been approved or accepted by the purchasing utility's utility regulatory authority.

(9)(i) If the applicant is an investor-owner utility subject to the ratemaking jurisdiction of a State utility regulatory authority and is submitting an application on the basis of one or more qualified energy conservation measures, such State utility regulatory authority has established a procedure for determining rates and charges ensuring net income neutrality, as defined in §72.2 of this chapter, including a provision that the utility's net income is compensated in full (considering factors such as risk) for lost sales attributable to the utility's conservation programs, which may include:

(A) General ratemaking for formulas that decouple utility profits from actual utility sales;

(B) Specific rate adjustment formulas that allow a utility to recover in its retail rates the full costs of conservation measures plus any associated net revenues lost as a result of reduced sales resulting from conservation initiatives; or

(C) Conservation incentive mechanisms designed to provide positive financial rewards to a utility to encourage implementation of cost-effective measures;

(ii) Provided that the existence of any one of the categories of ratemaking or rate adjustment formulas or conservation incentive mechanisms specified in paragraph (a)(9)(i) of this section shall not necessarily constitute fulfillment of the net income neutrality requirement unless, pursuant to §73.83, the Secretary of Energy has certified the establishment of such net income neutrality;

(10) Demonstrate that the applicant has implemented the qualified energy conservation measures or used the qualified renewable energy generation specified in the application during the period of applicability;

(11) Demonstrate the extent to which installation of the qualified conservation measure(s) has achieved actual energy savings, by stating, on the basis of the performance of the measure(s) following installation:

(i) The amount of kilowatt hour savings resulting from the measure(s) in the given year(s);

(ii) Pursuant to paragraph (c) of this section, the methodology used to calculate the kilowatt hour savings; and

(iii) The name, address, and phone number of the person who performed the calculation of kilowatt hour savings;

(12) Report the type and amount of yearly qualified renewable energy generation, by stating (and submitting documentation, including copies of plant operation records, supporting such statements) the kilowatt hours of qualified renewable energy generated during a previous calendar year or years; and

(13) Report the extent to which qualified renewable energy generation was produced in combination with other energy sources (hereafter “hybrid generation”) by stating (and submitting documentation, including copies of plant operation records, supporting such statements) the heat input and heat rate of the non-qualified renewable generation, the total annual kilowatt hours generated, and the kilowatt hours that can be attributed to qualified renewable energy generation;

(14) Demonstrate the extent to which the implementation of qualified energy conservation measures or the use of qualified renewable energy generation has resulted in avoided tons of sulfur dioxide emissions by the utility during the period of applicability, pursuant to paragraph (d) of this section.

(b) Application to the Secretary of Energy. For purposes of paragraph (a)(9) of this section, the applicant shall fulfill the following requirements:

(1) If a utility applying for allowances from the Reserve has not received certification of net income neutrality from the Secretary of Energy or such certification is no longer applicable, the applicant shall submit to the Secretary of Energy:

(i) A copy of the relevant State utility regulatory authority's final order or decision setting forth the approved ratemaking mechanisms that ensure that a utility's net income will be at least as high upon implementation of energy conservation measures as such net income would have been if the energy conservation measures has not been implemented;

(ii) A description of how the State utility regulatory authority's order or decision meets the definition of net income neutrality as defined in §72.2; and

(iii) Any additional information necessary for Secretary of Energy to certify that the State regulatory authority has established rates and charges that ensure net income neutrality.

(2) If a utility applying for allowances from the Reserve has already received certification of net income neutrality from the Secretary of Energy in connection with a previous application for allowances, and the ratemaking methods or procedures that ensure net income neutrality have not been altered, the applicant shall certify that the ratemaking methods and procedures that led to the original certification are still in place.

(c) Verification of energy savings methodology. For the purposes of paragraph (a)(11) of this section:

(1) Applicants subject to the ratemaking jurisdiction of a State utility regulatory authority shall use the energy conservation verification methodology approved by such authority in support of energy conservation applications under this subpart and part 72 of this chapter, provided that

(i) The authority in question uses this methodology to determine the applicant's entitlement to performance-based rate adjustments, which permit a utility's rates to be adjusted for additional kilowatt hours saved due to the utility's energy conservation programs;

(ii) Such performance based rate adjustments are subject to modification either prospectively or retrospectively to reflect periodic evaluations of energy savings secured by the applicant; and

(iii) The applicant has provided the Administrator with a description of the State utility regulatory authority's verification methodology and documentation that the requirements of this paragraph (e) have been met.

(2) All other applicants, including applicants whose rates are not subject to the ratemaking jurisdiction of a State utility regulatory authority shall demonstrate to the satisfaction of the Administrator through submission of documentation that savings have been achieved and may use the EPA Conservation Verification Protocol.

(3) All records of verification of energy savings shall be kept on file by the applicant for a period of 3 years. The Administrator may extend this period for cause at any time prior to the end of 3 years by notifying the applicant in writing.

(4) The Administrator reserves the right to conduct independent reviews, analyses, or audits to ascertain that the verification is valid and correct. If the Administrator determines that the verification is not valid or correct, the Administrator may revise the allocation of allowances to an applicant or require the surrender of allowances from the applicant's Allowance Tracking System account.

(d) Calculation of allowances to be allocated. (1) In the case of an application submitted on the basis of qualified energy conservation measures, the sulfur dioxide emissions tonnage deemed avoided for any calendar year shall be equal to the product of:

eCFR graphic ec10no91.005.gif

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(Rounded to the nearest ton)

where:

(A) = the kilowatt hours that were not, but would otherwise have been, supplied by the utility during such year in the absence of such qualified energy conservation measures.

(B) = 0.004 1bs. of sulfur dioxide per kilowatt hour.

(2) In the case of an application submitted on the basis of qualified renewable energy generation, the sulfur dioxide emissions tonnage deemed avoided for any calendar year shall be equal to the product of:

eCFR graphic ec10no91.006.gif

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(Rounded to the nearest ton)

where:

(A) = the actual kilowatt hours of qualified renewable energy generated or purchased by the applicant (based on the qualified renewable energy generation portion for hybrid generation).

(B) = 0.004 lbs. of sulfur dioxide per kilowatt hour.

(e) Certification by Applicant's Certifying Official. (1) Certification of all application requirements, including the net income neutrality requirements, shall be made by a certifying official of the applicant upon such official's verification of all information and documentation submitted.

(2) The applicant shall submit a certification statement signed by the applicant's certifying official that reads “I certify under penalty of law that I have personally examined and am familiar with the information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the information is to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false material information, or omitting material information, including the possibility of fine or imprisonment for violations.”

(f) Certification by State Utility Regulatory Authority. Applicants subject to the ratemaking jurisdiction of a State utility regulatory authority shall include in their applications a certification by the State utility regulatory authority's certifying official that it has reviewed the application, including supporting documentation, and finds it to be accurate, complete, and consistent with all applicable requirements of this subpart.

(g) Time period to apply. (1) Beginning no earlier than July 1, 1993, and no earlier than July 1 of each subsequent year, applicants may apply to the Administrator for allowances from the Reserve for emissions avoided in a previous year or years by use of qualified energy conservation measures or qualified renewable energy generation that became operational during the period of applicability; and

(2) Beginning no earlier than January 1, 1993, any applicant may apply to the Secretary of Energy for the Secretary's certification of net income neutrality where the application is based on the use of one or more qualified energy conservation measures.

(3) Applications will be received by the Administrator and the Secretary of Energy until January 2, 2010, pursuant to §73.80(c), or until no allowances remain in the Reserve.

(h) Submittal location. Applicants shall submit one copy of the completed Reserve application, not including the net income neutrality application, via registered mail to the Administrator at an address to be specified in later guidance. Applicants shall submit 10 copies of the net income neutrality application via registered mail to the Department of Energy at the following address: Department of Energy, Office of Conservation and Renewable Energy, Mail Stop CE-10, Room 6c-036, 1000 Independence Avenue, SW., Washington, DC 20585, Attn: Net Income Neutrality Certification.

[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]

§73.83   Secretary of Energy's action on net income neutrality applications.

(a) First come, first served. The Secretary of Energy will process and certify net income neutrality applications on a “first-come, first served” basis, according to the order, by date and time, in which they are received from either the applicant or, in the case of an application submitted to the Administrator and then forwarded to the Secretary, from the Administrator.

(b) Deficient applications. If the Secretary of Energy determines that the net income neutrality certification application does not meet the requirements of §73.82 (a)(9) and (b), the Secretary will notify the applicant and the Administrator in writing of the deficiency. The applicant may then supply additional information or a new revised application as necessary for the Secretary to make a determination that the applicant meets the requirements of §73.28(a)(9) and (b). Additional information or revised applications will be processed according to the date of receipt of such information or revisions.

(c) Notification of approval. The Secretary of Energy will review the net income neutrality application to determine whether it meets the requirements of §73.82 (a)(9) and (b) and will certify this finding in writing to the applicant and to the Administrator within 60 calendar days of receipt of the net income neutrality application or a revised application, except that the Secretary may specify a later date for certification.

§73.84   Administrator's action on applications.

(a) First come, first served. The Administrator will process and approve Allowance Reserve applications, in whole or in part, on a “first-come, first-served” basis as established by the order of date of receipt, provided that the Administrator shall not allocate more than a total of 30,000 allowances in connection with applications based on any one of the four categories of qualified renewable energy generation enumerated in §73.81(c)(2)(i) and appendix A(3.1-3.4).

(b) Deficient applications. An application is deficient and will be returned by the Administrator if it fails to meet the requirements set forth in this subpart, including those set forth in §73.82. A revised application that is submitted after being returned for failure to meet the requirements of this subpart will be processed according to the date of receipt of the revised application.

(c) Notification of approval. Applications that the Administrator determines to be complete and correct will be conditionally approved, subject to notification to EPA of a net income neutrality certification from the Department of Energy, within 120 calendar days of receipt. Allowances from the Reserve will be awarded subject to the Department of Energy certification, or, if a DOE certification has already been issued to the applicant, allocated to applicants from such applications depending on the availability of allowances in the Reserve. In the event the initial application approval is conditioned upon the Secretary of Energy's certification, final approval will be granted upon notification of certification by the Secretary of Energy pursuant to §73.83. The Administrator will notify applicants of final approval in writing.

(d) Allocation of allowances. Beginning in 1995, the Administrator will allocate allowances from the Reserve for each approved application into the applicant's account or accounts in the Allowance Tracking System. If the applicant does not have an account in the Allowance Tracking System, or wishes to open a new account for the allowances from the Reserve, an application pursuant to §73.31(c) must accompany the application for Reserve allowances.

(e) Partial fulfillment of requests. (1) In the event that the allowances available in the Reserve are less than the number that could otherwise be allocated to an approved applicant's account under the application as approved, the applicant will receive the allowances remaining in the Reserve.

(2) In the event that a subaccount is established by EPA, pursuant to §73.85, and the applicant is making a request for allowances not included in the subaccount, the Allowance Reserve allocations for the approved applicant will be made, in addition to any that may be allocated pursuant to paragraph (f)(3) of this section, from any allowances remaining in the Reserve that are not contained in the subaccount.

(f) Oversubscription of the Reserve. (1) In the event that the Reserve becomes oversubscribed by more than one applicant on a single day, the allowances remaining in the Reserve will be distributed on a pro rata basis to applicants meeting the requirements of §73.82.

(2) If Reserve applications are received by the Administrator after all allowances from the Reserve have been allocated, the Administrator will so notify the applicant within 5 business days after receipt of the application.

(3) In the event that applications meeting the requirements pursuant to §73.82 are received by the Administrator prior to February 1, 1998, and

(i) All remaining allowances in the Reserve have been placed in a subaccount pursuant to §73.85; and

(ii) The applicant is not eligible for an allocation of allowances from the subaccount; the application will be placed on a waiting list in order of receipt.

(iii) The Administrator will notify the applicant of such action within 5 business days after receipt of the application.

(4) If any allowances are returned to the Reserve after February 1, 1998 pursuant to §73.85(c), the Administrator will review the wait-listed applications in order of receipt and allocate any remaining allowances to the approved applicants in the order of their receipt until no more allowances remain in the Reserve.

(g) Applications for allowances based on the same avoided emissions from the same energy conservation measures or renewable energy generation.(1) The Administrator will not award allowances to more than one applicant for the same avoided emissions from the same energy conservation measure or the same qualified renewable energy generation, and will process and act on such duplicative applications on a “first-come, first-serve” basis as determined by the order of date of receipt.

(2) Any allowances awarded pursuant to two or more applications received on the same date based on the same avoided emissions from the same energy conservation measure or the same renewable electric generation will be divided equally between all such applicants unless the Administrator is otherwise directed by all such applicants.

§73.85   Administrator review of the reserve program.

(a) Administrator review of the Reserve and creation of a subaccount. In the event that an allocation of allowances from the Reserve pursuant to a pending application would bring the total number of allowances allocated to a number greater than 240,000, the Administrator will review the distribution of all allowances allocated as follows:

(1) If at least 60,000 allowances have been allocated from the Reserve for each of

(i) Qualified energy conservation measures, and

(ii) Qualified renewable energy generation, allocations of allowances will continue pursuant to §73.82, until no more allowances remain in the Reserve.

(2) If fewer than 60,000 allowances have been allocated for either qualified energy conservation measures or qualified renewable energy generation, the Administrator will establish a subaccount for the allocation of allowances for applications based on the category for which fewer than 60,000 allowances have been allocated. The subaccount will contain allowances equal to 60,000 less the number of allowances previously allocated for such category.

(b) Allocation of allowances from the subaccount. The Administrator will allocate allowances from the subaccount established pursuant to paragraph (a) of this section to approved and DOE certified applicants that fulfill the requirements of this subpart, including §73.82 and §73.83, on a “first-come, first-served basis”, pursuant to §73.84(a), until the subaccount is depleted or closed pursuant to paragraph (c) of this section.

(c) Closure of the subaccount. Unless all allowances in the subaccount have been previously allocated, the Administrator will terminate the subaccount not later than February 1, 1998 and return any allowances remaining in the subaccount to the general account of the Reserve. After all Reserve allocations have been made to applicants with approved and DOE certified applications subject to §73.84(f)(3), the Administrator will allocate any remaining allowances to any applicants that meet the requirements of this subpart, including §73.82 and §73.83, on a “first-come, first-served” basis, pursuant to §73.84.

§73.86   State regulatory autonomy.

Nothing in this subpart shall preclude a State or State regulatory authority from providing additional incentives to utilities to encourage investment in any conservation measures or renewable energy generation.

Appendix A to Subpart F of Part 73—List of Qualified Energy Conservation Measures, Qualified Renewable Generation, and Measures Applicable for Reduced Utilization

1. Demand-side Measures Applicable for the Conservation and Renewable Energy Reserve Program or Reduced Utilization

The following listed measures are approved as “qualified energy conservation measures” for purposes of the Conservation and Renewable Energy Reserve Program or reduced utilization qualified energy conservation plans under §72.43 of this chapter. Measures not appearing on the list may also be qualified conservation measures if they meet the requirements specified in §73.81(a) of this part.

1.1   Residential

1.1.1   Space Conditioning

  Electric furnace improvements (intermittent ignition, automatic vent dampers, and heating element change-outs)

  Air conditioner (central and room) upgrades/replacements

  Heat pump (ground source, solar assisted, and conventional) upgrades/replacements

  Cycling of air conditioners and heat pumps

  Natural ventilation

  Heat recovery ventilation

  Clock thermostats

  Setback thermostats

  Geothermal steam direct use

  Improved equipment controls

  Solar assisted space conditioning (ventilation, air-conditioning, and desiccant cooling)

  Passive solar designs

  Air conditioner and heat pump clean and tune-up

  Heat pipes

  Whole house fans

  High efficiency fans and motors

  Hydronic pump insulation

  Register relocation

  Register size and blade configuration

  Return air location

  Duct sizing

  Duct insulation

  Duct sealing

  Duct cleaning

  Shade tree planting

1.1.2   Water Heating

  Electric water heater upgrades/replacements

  Electric water heater tank wraps/blankets

  Low-flow showerheads and fittings

  Solar heating and pre-heat units

  Geothermal heating and pre-heat units

  Heat traps

  Water heater heat pumps

  Recirculation pumps

  Setback thermostats

  Water heater cycling control

  Solar heating for swimming pools

  Pipe wrap insulation

1.1.3   Lighting

  Lamp replacement

  Dimmers

  Motion detectors and occupancy sensors

  Photovoltaic lighting

  Fixture replacement

  Outdoor lighting controls

1.1.4   Building Envelope

  Attic, basement, ceiling, and wall insulation

  Passive solar building systems

  Exterior roof insulation

  Exterior wall insulation

  Exterior wall insulation bordering unheated space (e.g., a garage)

  Knee wall insulation in attic

  Floor insulation

  Perimeter insulation

  Storm windows/doors

  Caulking/weatherstripping

  Multi-glazed inserts for sliding glass doors

  Sliding door replacements

  Installation of French doors

  Hollow core door replacement

  Radiant barriers

  Window vent conversions

  Window replacement

  Window shade screens

  Low-e windows

  Window reduction

  Attic ventilation

  Whole house fan

  Passive solar design

1.1.5   Other Appliances

  Refrigerator replacements

  Freezer replacements

  Oven/range replacements

  Dishwasher replacements

  Clothes washer replacements

  Clothes dryer replacements

  Customer located power generation based on photovoltaic, solar thermal, biomass, wind or geothermal resources

  Swimming pool pump replacements

  Gasket replacements

  Maintenance/coil cleaning

1.2   Commercial

1.2.1   Heating/Ventilation/Air Conditioning (HVAC)

  Heat pump replacement

  Fan motor efficiency

  Resizing of chillers

  Heat pipe retrofits in air conditioning units

  Dehumidifiers

  Steam trap insulation

  Radiator thermostatic valves

  Variable speed drive on fan motor

  Solar assisted HVAC including ventilation, chillers, heat pumps, and desiccants

  HVAC piping insulation

  HVAC ductwork insulation

  Boiler insulation

  Automatic night setback

  Automatic economizer cooling

  Outside air control

  Hot and cold deck automatic reset

  Reheat system primary air optimization

  Process heat recovery

  Deadband thermostat

  Timeclocks on circulating pumps

  Chiller system

  Increase condensing unit efficiency

  Separate make-up air for exhaust hoods

  Variable air volume system

  Direct tower cooling (chiller strainer cycle)

  Multiple chiller control

  Radiant heating

  Evaporative roof surface cooling

  Cooling tower flow control

  Ceiling fans

  Evaporative cooling

  Direct expansion cooling system

  Heat recovery ventilation (water and air-source)

  Set-back controls for heating/cooling

  Make-up air control

  Manual fan switches

  Energy saving exhaust hood

  Night flushing

  Spot radiant heating

  Terminal regulated air volume control scheme

  Variable speed motors for HVAC system

  Waterside economizers

  Airside economizer

  Gray water systems

  Well water for cooling

1.2.2   Building envelope

  Insulation

  Wall insulation

  Floor/slab insulation

  Roof insulation

  Window and door upgrades, replacements, and films (to reduce solar heat gains)

  Passive solar design

  Earth berming

  Shading devices and tree planting

  High reflectivity roof coating

  Evaporative cooling

  Infiltration reduction

  Weatherstripping

  Caulking

  Low-e windows

  Multi-glazed windows

  Replace glazing with insulated walls

  Thermal break window frames

  Tinted glazing

  Vapor barrier

  Vestibule entry

1.2.3   Lighting

  Electronic ballast replacements

  Delamping

  Reflectors

  Occupancy sensors

  Daylighting with controls

  Photovoltaic lighting

  Efficient exterior lighting

  Manual selective switching

  Efficient exit signs

  Daylighting construction

  Cathode cutout ballasts

  High intensity discharge luminaries

  Outdoor light timeclock and photocell

1.2.4   Refrigeration

  Refrigerator replacement

  Freezer replacement

  Optimize heat gains to refrigerated space

  Optimize defrost control

  Refrigeration pressure optimization control

  High efficiency compressors

  Anti-condensate heater control

  Floating head pressure

  Hot gas defrost

  Parallel unequal compressors

  Variable speed compressors

  Water cooler controls

  Waste heat utilization

  Air doors on refrigeration equipment

1.2.5   Water Heating

  Electric water heating upgrades/replacements

  Electric water heater wraps/blankets

  Pipe insulation

  Solar heating and/or pre-heat units

  Geothermal heating and/or pre-heat units

  Circulating pump control

  Point-of-use water heater

  Heat recovery domestic water heater (DWH) system

  Chemical dishwashing system

  End-use reduction using low-flow fittings

1.2.6   Other end-uses and miscellaneous

  Energy management control systems for building operations

  Customer located power based on photovoltaic, solar thermal, biomass, wind, and geothermal resources

  Energy efficient office equipment

  Customer-owned transformer upgrades and proper sizing

1.3   Industial

1.3.1   Motors

  Retire inefficient motors and replace with energy efficient motors, including the use of electronic adjustable speed or variable frequency drives

  Rebuild motors to operate more efficiently through greater contamination protection and improved magnetic materials

  Install self-starters

  Replace improperly sized motors

1.3.2   Lighting

  Electronic ballast replacement/improvement

  Electromagnetic ballast upgrade

  Installation of reflectors

  Substitution of lamps with built-in automatic cathode cut-out switches

  Modify ballast circuits with additional impedance devices

  Metal halide and high pressure sodium lamp retrofits

  High pressure sodium retrofits

  Daylighting with controls

  Occupancy sensors

  Delamping

  Photovoltaic lighting

  Two step and dimmable high intensity discharge ballast

1.3.3   Heating/Ventilation/Air Conditioning (HVAC)

  Heat pump replacement/upgrade

  Furnace upgrade/replacement

  Fan motor efficiency

  Resizing of chillers

  Heat pipe retrofits on air conditioners

  Variable speed drive on fan motor

  Solar assisted HVAC including ventilation, chillers, heat pumps and desiccants

1.3.4   Industrial Processes

  Upgrades in heat transfer equipment

  Insulation and burner upgrades for industrial furnaces/ovens/boilers to reduce electricity loads on motors and fans

  Insulation and redesign of piping

  Upgrades/retrofits in condenser/evaporation equipment

  Process air and water filtration for improved efficiency

  Upgrades of catalytic combustors

  Solar process heat

  Customer located power based on photovoltaic, solar thermal, biomass, wind, and geothermal resources

  Power factor controllers

  Utilization of waste gas fuels

  Steam line and steam trap repairs/upgrades

  Compressed air system improvements/repairs

  Industrial process heat pump

  Optimization of equipment lubrication or maintenance

  Resizing of process equipment for optimal energy efficiency

  Use of unique thermodynamic power cycles

1.3.5   Building Envelope

  Insulation of ceiling, walls, and ducts

  Window and door replacement/upgrade, including thermal energy barriers

  Caulking/weatherstripping

1.3.6   Water Heating

  Electric water heater upgrades/replacements

  Electric water heater wraps/blankets

  Pipe insulation

  Low-flow showerheads and fittings

  Solar heating and pre-heat units

  Geothermal heating and pre-heat units

1.3.7   Other End-uses and miscellaneous

  Refrigeration system retrofit/replacement

  Energy management control systems and end use metering

  Customer-owned transformer retrofits/replacements and proper sizing

1.4   Agricultural

1.4.1   Space Conditioning

  Building envelope measures

  Efficient HVAC equipment

  Heat pipe retrofit on air conditioners

  System and control measures

  Solar assisted HVAC including ventilation, chillers, heat pumps, and desiccants

  Air-source and geothermal heat pumps replacement/upgrades

1.4.2   Water heating

  Upgrades/replacements

  Water heater wraps/blankets

  Pipe insulation

  Low-flow showerheads and fittings

  Solart heating and/or pre-hear units

  Geothermal heating and/or pre-heat units

1.4.3   Lighting

  Electronic ballast replacements

  Delamping

  Reflectors

  Occupancy sensors

  Daylighting with controls

  Photovoltaic lighting

  Outdoor lighting controls

1.4.4   Pumping/Irrigation

  Pump upgrades/retrofits

  Computerized pump control systems

  Irrigation load management strategies

  Irrigation pumping plants

  Computer irrigation control

  Surge irrigation

  Computerized scheduling of irrigation

  Drip irrigation systems

1.4.5   Motors

  Retire inefficient motors and replace with energy efficient motors, including the use of electronic adjustable speed and variable frequency drives

  Rebuild motors to operate more efficiently through greater contamination protection and improved magnetic materials

  Install self-starters

  Replace improperly sized motors

1.4.6   Other end uses

  Ventilation fans

  Cooling and refrigeration system upgrades

  Grain drying using unheated air

  Grain drying using low temperature electric

  Customer-owned transformer retrofits/replacements and proper sizing

  Programmable controllers for electrical farm equipment

  Controlled livestock ventilation

  Water heating for production agriculture

  Milk cooler heat exchangers

  Direct expansion/ice bank milk cooling

  Low energy precision application systems

  Heat pump crop drying

1.5   Government Services Sector

1.5.1   Streetlighting

  Replace incandescent and mercury vapor lamps with high pressure sodium and metal halide

1.5.2   Other

  Energy efficiency improvements in motors, pumps, and controls for water supply and waste water treatment

  District heating and cooling measures derived for cogeneration that result in electricity savings

2. Supply-side Measures Applicable for Reduced Utilization

Supply-side measures that may be approved for purposes of reduced utilization plans under §72.43 include the following:

2.1   Generation efficiency

  Heat rate improvement programs

  Availability improvement programs

  Coal cleaning measures that improve boiler efficiency

  Turbine improvements

  Boiler improvements

  Control improvements, including artificial intelligence and expert systems

  Distributed control—local (real-time) versus central (delayed)

  Equipment monitoring

  Performance monitoring

  Preventive maintenance

  Additional or improved heat recovery

  Sliding/variable pressure operations

  Adjustable speed drives

  Improved personnel training to improve man/machine interface

2.2   Transmission and distribution efficiency

  High efficiency transformer switchouts using amorphous core and silicon steel technologies

  Low-loss windings

  Innovative cable insulation

  Reactive power dispatch optimization

  Power factor control

  Primary feeder reconfiguration

  Primary distribution voltage upgrades

  High efficiency substation transformers

  Controllable series capacitors

  Real-time distribution data acquisition analysis and control systems

  Conservation voltage regulation

3. Renewable Energy Generation Measures Applicable for the Conservation and Renewable Energy Reserve Program

The following listed measures are approved as “qualified renewable energy generation” for purposes of the Conservation and Renewable Energy Reserve Program. Measures not appearing on the list may also be qualified renewable energy generation measures if they meet the requirements specified in §73.81.

3.1   Biomass resources

  Combustible energy-producing materials from biological sources which include: wood, plant residues, biological wastes, landfill gas, energy crops, and eligible components of municipal solid waste.

3.2   Solar resources

  Solar thermal systems and the non-fossil fuel portion of solar thermal hybrid systems

  Grid and non-grid connected photovoltaic systems, including systems added for voltage or capacity augmentation of a distribution grid.

3.4   Geothermal resources

  Hydrothermal or geopressurized resources used for dry steam, flash steam, or binary cycle generation of electricity.

3.5   Wind resources

  Grid-connected and non-grid-connected wind farms

  Individual wind-driven electrical generating turbines



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