Renewable Energy Facilities for North Carolina

Renewable Energy Facilitiesfor North Carolina What needs to be filed with the N. C. Utilities Commission? Jay Lucas, PE Public Staff – NC Utilities Commission Electric Division March 21, 2014

What is the NC Utilities Commission? • Created by the General Assembly to regulate the rates and quality of service of utilities • In NC, the electric utilities are: Duke Energy Carolinas Duke Energy Progress Dominion North Carolina Power • some oversight of electric membership corporations and municipal power systems

What is the Public Staff? Created by the General Assembly as part of the Utilities Commission to protect the using and consuming public • reviews filings made with the Utilities Commission, • provides recommendations to the Commission, • receives and resolves complaints by consumers • including the providers of renewable energy

Why worry about renewable energy? • The world’s non-renewable energy resources will eventually be depleted. • North Carolina has limited fossil fuel resources, but a high potential for renewable energy. • Required by State Law since August 2007

What is the NC law on renewable energy? • Session Law 2007-397 • Senate Bill 3 • NC Renewable Energy and Energy Efficiency Portfolio Standard (REPS) • NC General Statute 62-133.8

What does the law require? All electric power suppliers must meet part of their sales with renewable energy • 3 % by 2012 • 6 % by 2015 • 10 % by 2018 • 12.5 % by 2021 (only for electric utilities) Part of the requirement must be met with solar energy, swine waste, & poultry waste (set asides)

Summary Questions • Who is requiring renewable energy? • Who is enforcing the renewable energy requirements? • Who has to meet the requirements?

Summary Questions • Who is requiring renewable energy? • the General Assembly; REPS is the law • Who is enforcing the renewable energy requirements? • the Utilities Commission with help from the Public Staff • Who has to meet the requirements? • the electric power suppliers

What is a “renewable energy facility”? Definition is in NCGS 62-133.8(a) • Generates electricity with a renewable energy resource: solar, wind, hydropower, geothermal, ocean energy, biomass, and other combustible products, or • Generates combined heat and power using a renewable energy resource, or • Solar thermal facility Read NCGS 62-133.8(a) for all complete definitions

The facility is the electric or thermal generating facility, not what it’s attached to. This Not This

How does the Utilities Commission keep track of whether energy is renewable or not? • MWh of renewable electricity or equivalent thermal energy earns one “renewable energy certificate” or REC. • Renewable energy generators in NC must input their RECs into the North Carolina Renewable Energy Tracking System (NC-RETS) if used for NC requirements • Out-of-state generators can use other tracking systems and import their RECs into NC-RETS • www.ncrets.org

Electricity and RECs are two different things. • Electric power suppliers must buy your electricity at avoided cost rates (required by federal law) • Avoided cost is what the power supplier avoids when it does not have to generate electricity or purchase it elsewhere. • No one has to buy your RECs; it’s an open competitive market. • You can sell your electricity to one power supplier and sell the RECs to someone else. • Electricity and RECs can be “bundled” and sold together if the buyer and seller agree

Summary Questions • What makes an electric generator renewable? • What’s the difference between electricity and RECs? • Does the facility have to generate electricity to be considered renewable?

Summary Questions • What makes an electric generator renewable? • Making electricity with a renewable resource or combined heat & power or solar thermal • What’s the difference between electricity and RECs? • Electricity is energy; a REC represents one MWh of renewable energy • Does the facility have to generate electricity to be considered renewable? • No, it can be solar thermal

If you are building a renewable energy facility in North Carolina,what needs to be filed with the Utilities Commission?

If the capacity is less than 2 MW orproducing electricity mostly for your own use… • You must file a Report of Proposed Construction (ROPC); if it’s complete, you can start construction • It’s only a report, the Commission doesn’t give approval • Commission Rule R8-64 and 65 • See http://energyapps.nc.gov

If the capacity is 2 MW to 80 MW… You must file an application for a Certificate of Public Convenience and Necessity (CPCN) Commission Rule R8-64(b)(1) … if dependable capacity is ≥ 5 MW and contract is 5 years or more, then add information in R8-64(b)(2); for solar photovoltaic, its needed if capacity is 25 MW or greater See http://energyapps.nc.gov

Details on the ROPC and CPCN… Does not apply to solar thermal facilities Commission Rule R8-64(b)(1): (i) Name, business address, business telephone number, and e-mail address of the facility owner; (ii) Whether the facility owner is an individual, a partnership, or a corporation plus some details

(iii) The nature of the facility, including the type and source of its power or fuel [please include the nameplate capacity in AC]; (iv) The location in terms of local roads, streams, or other generally known local landmarks togetherwith a location map [not driving directions]

… recently added to item (iv) • the site layout relative to the map; (2) all major equipment (3) the site boundary; and (4) planned and existing pipelines, roads, water supplies, and electric facilities;

(v) Ownership of the site[not facility] and, if it’s not you, your legal interest in the site; (vi) Description of the buildings, structures, and equipment … and the manner of its operation; (vii) Dependablecapacity of the facility in MW;

The projected cost of the facility • can be filed confidentially • File confidential information under a separate cover and make it clear (ix) The projected date on which the facility will come on line;

Your plan for sale of the electricity to be generated, don’t forget to provide the name of the buyer • provisions for wheeling of the electricity or emergency generation; • the service life in years; • projected annual sales in kWh; • whether the you plan to sell RECs in NC;

A complete list of all federal and state[not local] licenses, permits, and exemptions … and a statement of whether each has been obtained or applied for Provide a copy with your application or when it becomes available

What are the state and federal licenses, permits, and exemptions? • If > 1 MW, you must file a Federal Energy Regulatory Commission (FERC) Form 556 • The NC Dept. of Environment and Natural Resources has sedimentation and erosion control requirements • Air quality permits for combustion facilities • And others…

Difference between ROPC and CPCN application: • Size (< 2 MW limit on ROPC) • File a complete ROPC and start construction • Prior to construction on a facility of 2 MW to 80 MW, file an application for CPCN and receive approval.

What happens after you file for a CPCN? • Commission issues an order with a public notice that you must publish in a local newspaper weekly for four times (it used to be a daily newspaper, but not anymore) • Before you publish this notice, send a copy of the notice and application to the interconnecting utility • Then file a notarized letter with the Commission stating you did this • After the notice period, the newspaper will send you an affidavit of publication • You must file this affidavit

What else? • A concurrent review by the State Clearinghouse - other state agencies get to review and comment for 30 days • Public Staff recommendation (last step!)

Summary Questions • Who is responsible for the documentation for an ROPC and a CPCN? • Does a solar photovoltaic system in NC need an ROPC or CPCN? • What’s the difference between an ROPC and a CPCN?

Summary Questions • Who is responsible for the documentation for an ROPC and a CPCN? • The applicant • Does a solar photovoltaic system in NC need an ROPC or CPCN? • Yes. A solar thermal system doesn’t. • What’s the difference between an ROPC and a CPCN? • The system capacity and the review requirements

If you want to sell RECs to an electric power supplier in North Carolina whether you’re inside or outside the state…

You must file a Registration Statement (Application to Register a Renewable Energy Facility) Annual certification requirement (April 1) • This form is all you need for a solar thermal facility See http://energyapps.nc.gov

Application to Register a Renewable Energy Facility or New Renewable Energy Facility Pursuant to Rule R8-66 (Applicants should consult Rule R8-66 while completing this form in order to ensure they provide sufficient information.)

The owner of the renewable energy facility shall provide the following attestations, signed and notarized: • Yes No I certify that the facility is in substantial compliance with all federal and state laws, regulations, and rules for the protection of the environment and conservation of natural resources. • Yes No I certify that the facility satisfies the requirements of G.S. 62-133.8(a)(5) or (7) as a: _____ renewable energy facility, or __X__new renewable energy facility, (built in 2007 or later) and that the facility will be operated as a: _____ renewable energy facility, or __X__new renewable energy facility. (built in 2007 or later)

Other common mistakes on the Application to Register… • Failure to include a map • Capacity (kW or MW) must be in AC, not DC • Capacity must be Btu/hour for thermal systems • Name the REC tracking system (usually NC-RETS)

Why so many items to answer? • Keeping track of renewable energy isn’t easy • Need information to help ensure compliance by electric power suppliers • Need all renewable energy generators to be treated as equally as possible

If you are not a homeowner installing a facility at your residence, please write a cover letter with your contact information. You can file a CPCN application or ROPC along with an Application to Register, but please indicate what you are filing in your cover letter.

Summary Questions • Does an out of state facility need an ROPC or CPCN? • Can you build an electric generating facility in NC without a Registration Statement?

Summary Questions • Does an out of state facility need an ROPC or CPCN? • No. • Can you build an electric generating facility in NC without a Registration Statement? • Yes.

Tax Benefits North Carolina has tax benefits for constructing Renewable Energy Facilities See the NC Dept. of Revenue website: http://www.dornc.com/ Do search on “renewable”

For more information, please see: http://energyapps.nc.gov (don’t use “https” and don’t use “www”) If you still have questions, please contact Jay Lucas at 919-733-1518 or Jay.Lucas@psncuc.nc.gov Thank you for seeking this information!

Renewable Energy Facilities for North Carolina