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Legal Regulatory Considerations for Waste Heat Development

2. Topics. Why legal / regulatory issues matterCharacterizing waste heat

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Legal Regulatory Considerations for Waste Heat Development

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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 heat Fish, 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

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