1. INTERMOUNTAIN CHP CENTER
Resources for Clean Energy (generation) Project Evaluation and Implementation
Patti Case, ETC Group
Electrical Generating Systems Association
Annual Fall Conference
Colorado Springs, CO
September 15, 2009
INTERMOUNTAIN CHP CENTER

2. On Deck
What are the Clean Energy Application Centers and what help can they offer?
Examples of CE-AC/supplier/end-user collaborations
Stimulus & other funding for CHP, waste heat recovery, and district energy
Other Colorado resources FYI
Colorado’s use of stimulus funds for energy

3. Origin of the Regional Application Centers (2001)
Over 50 companies contributed to National Roadmap:
Technology
Deployment
Determined need for a stronger regional focus
DOE/ORNL Working Group suggests local “SWAT Teams”
DOE EERE’s approach: CHP Regional Application Centers

4. Eight Application Centers Now Serve all 50 States
Midwest
Northeast
Northwest Region
Mid Atlantic
Pacific
Intermountain
Southeastern
(Contact info at end of presentation)
Gulf Coast

5. INTERMOUNTAIN CHP CENTER
Contact Info For Your Reference
Pacific: Univ. of California, Tim Lipman, ,
Intermountain: ETC Group, Patti Case, ,
Gulf Coast: Houston Advanced Research Center, Dan Bullock, ,
Midwest: University of Illinois, John Cuttica, ,
Southeastern: North Carolina State University, Keith McAllister, ,
Northeast: Pace University, Tom Bourgeois, ,
Mid-Atlantic: Penn State University, Anthony Atchley, ,
Northwest: Washington State University, David Sjoding, ,
INTERMOUNTAIN CHP CENTER

6. National Goal: Double CHP by 2010
46 GW in 1998
85 GW in 2008
92 GW in 2010
Two points: CHP is growing, and RACs are helping

7. The CHP Regional Application Centers are expanding in scope
Fall 2009, with our new round of funding, the Centers will now also cover:
Waste heat recovery
District energy
Names changing to “Clean Energy Application Centers”

8. What We Actually Do
Inform prospective CHP users on the benefits, business model, and resources available for their specific application
Websites, workshops, trainings, webinars, advisory
Help potential projects “take the next step”
Project feasibility screenings, permitting issues, tariffs/rate assessments, equipment questions, convincing upper management, 3rd party review of proposals…
Promote CHP as an effective clean energy policy solution:
Educate state policymakers and regulators, remove barriers

9. On-The-Ground Results and Accomplishments
Supported over 350 projects representing over 1.3 GWs CHP
7.7 million tons of CO2 avoided
Over 120 target market workshops (9000 attendees)
Hospitals and Healthcare
Waste Heat to Power
Manufacturing
Food Processing
Forest Products
Livestock
Waste Water Treatment
Energy Assurance
Multi-family housing
Federal Facilities
Municipalities
Premium Power
Gas Utility Clients

10. *Input from project developers/installers is important!*
We are open to your suggestions (& collaboration) for our future target market identification/education efforts
*Input from project developers/installers is important!*

11. Policymaker Education Has Resulted In…
New state CHP incentive programs
Connecticut Distributed Energy Incentive Program
Improved state interconnection standards
Inclusion of CHP in energy efficiency, renewable portfolio standards, carbon mitigation efforts, and regional power planning
Western Governors’ Association’s Clean and Diversified Energy Initiative
Northwest Power Planning Council
North Carolina RPS
Connecticut Distributed Energy Incentive Program: CHP is offered several incentives for installation in Connecticut. CHP is included in the states Renewable Portfolio Standard, offered direct incentives in congested areas, and eligible for both investment and production tax credits.
Western Governors Association Clean and Diversified Energy Initiative: The regional Initiative identifies the benefits and market potential in the western states and presents a portfolio of policies that will accelerate deployment of CHP.
Northwest Power Planning Council: The regional Council produced an electric power and conservation action plan that encourages utilities to remove regulatory and market barriers to CHP projects.
North Carolina Renewable Energy and Energy-Efficiency Portfolio Standard (REPS): The North Carolina REPS sets the target of 12.5% of retail utility sales in 2020 being generated by renewable energy and energy efficiency. 25% of this target (3.125% of retail sales) may come from energy-efficiency and CHP.

12. Site Assessments: Different Levels of Assistance
Questionnaire
(end user or CE-AC)
Level 1 Screening / Walkthrough Analysis
(CE-AC)
Level 2 Conceptual / Financial Analysis
(CE-AC or engineering firm)
Level 3 Investment Grade
(engineering firm)

13. Example: Ethan Allen Furniture Factory
Furniture manufacturer since 1889
Employs 550 people in VT & NH
Annual Energy Costs of $1,500,000
Factory was planning on closing and moving offshore

14. Ethan Allen (cont’d) Center Recommendation:
Replace steam engine with steam turbine using biomass fired boiler
3 year payback, 10% savings off energy costs
Co-funded by Vermont, New Hampshire, & VT Electric Co-op
Plant has stayed on shore.

15. Example: Conant High School, Illinois
450,000 sq. ft., 2,600 student high school
Technical assessment conducted in 2002
Two 400 kW engine generators with heat recycling

16. Example: Seaman Paper Company
Tissue Paper Mfg.
$55m/yr sales and over $3.2m/yr energy costs
Center Recommendation:
Replace oil fired boiler with biomass boiler
Use steam turbine to generate power
<3 yr. payback

17. ARRA Funds for CHP Q: Are there ARRA funds for CHP projects?
Sorry, deadline for solicitation has passed
Q: Results/winners?
We haven’t heard yet (October 2009)
Q: Any other ARRA funding expected for CHP?
No national-level solicitations that we are aware of
Q: Are you always this unhelpful?
No. We’ll tell you about other incentives and some state funds available

18. Submitted Colorado Lumber Mill
Proposal for 7 MW biomass fired CHP system submitted with technical assistance from Intermountain Center
Multiple, proprietary projects submitted with assistance from NW Center
AZ project did not submit due to “made in America” requirements

19. Kulzer Energy Park
$4 million for Stevens County, WA project from USFS for 2-4 MWc CHP system with specialty beam mill and biochar production system
Tied to healthy forests and re-building carbon content in area farms

20. Bonus Depreciation
ARRA extended the five-year bonus depreciation schedule through 2010 and includes CHP, thereby allowing 50 percent of the depreciation value to be taken in the first year and the remainder over the following four years

21. Non-ARRA Incentives for CHP (But stimulating none-the-less)
USDA REAP grants
For projects in rural areas
Business Energy Investment Tax Credit
10-30% tax credit
Or: Dept. of Treasury Renewable Energy Grants
Yes, CHP does count
State-specific incentives
Ex. Colorado Carbon Fund

22. CHP Investment Tax Credit Energy Improvement and Extension Act of 2008 (EIEA)
10% credit for cost of first 15 MW
To Qualify
20% electricity, 20% thermal
<50 MW
Taxpayer constructed (or original equip. owner)
placed in service after October 3, 2008, and before January 1, 2017
60 percent efficient on a lower heating value basis, if 90 percent of the system's energy source is biomass
CHP Investment Tax Credit EIEA created a 10 percent investment tax credit (ITC) for the costs of the first 15 megawatts (MW) of CHP property. To qualify for the tax credit, the CHP system must:
Produce at least 20 percent of its useful energy as electricity and 20 percent in the form of useful thermal energy.
Be smaller than 50 MW.
Be constructed by the taxpayer or have the original use of the equipment begin with the taxpayer.
Be placed in service after October 3, 2008, and before January 1, 2017.
Be 60 percent efficient on a lower heating value basis.
The 60 percent efficiency requirement does not apply to CHP systems that use biomass for at least 90 percent of the system's energy source. The ITC may be used to offset the alternative minimum tax, and the CHP system must be operational in the year in which the credit is first taken.
ARRA allows taxpayers eligible for the CHP ITC to receive a grant from the U.S. Treasury Department instead of taking the ITC for new installations. For eligible CHP projects, the Department of Treasury will make payments to qualified applicants in an amount equal to 10 percent of the system cost. On July 9, 2009, the Treasury Department issued guidance for receiving a grant in lieu of the ITC. For more information including the guidance document (PDF) (20 pp, 138K), terms and conditions (PDF) (3 pp, 29K), and a sample application (PDF) (6 pp, 75K), please visit the U.S. Department of Treasury's Web site. Please note: The Department of Treasury is not yet accepting applications for grants. This information has been released to allow companies to prepare in advance for submitting a grant application.
The CHP ITC is claimed through IRS Form 3468 (PDF) (3 pp, 249K), available on the IRS's Web site. Facility owners who claim the ITC can not claim the production tax credit (PTC).

23. Microturbines and Fuel Cells
ITC Extended to 2016
Micro turbines 10% up to 2 MW, capped at $200/kW
Fuel Cells 30%, at least .5 kW, capped at $1,500 per 0.5 kW
To Qualify
Micro turbines 26% electric-only generation efficiency
Fuel Cells 30% electric-only generation efficiency
All may receive grant in lieu of ITC (Treasury is not yet accepting applications)
CHP Investment Tax Credit EIEA created a 10 percent investment tax credit (ITC) for the costs of the first 15 megawatts (MW) of CHP property. To qualify for the tax credit, the CHP system must:
Produce at least 20 percent of its useful energy as electricity and 20 percent in the form of useful thermal energy.
Be smaller than 50 MW.
Be constructed by the taxpayer or have the original use of the equipment begin with the taxpayer.
Be placed in service after October 3, 2008, and before January 1, 2017.
Be 60 percent efficient on a lower heating value basis.
The 60 percent efficiency requirement does not apply to CHP systems that use biomass for at least 90 percent of the system's energy source. The ITC may be used to offset the alternative minimum tax, and the CHP system must be operational in the year in which the credit is first taken.
ARRA allows taxpayers eligible for the CHP ITC to receive a grant from the U.S. Treasury Department instead of taking the ITC for new installations. For eligible CHP projects, the Department of Treasury will make payments to qualified applicants in an amount equal to 10 percent of the system cost. On July 9, 2009, the Treasury Department issued guidance for receiving a grant in lieu of the ITC. For more information including the guidance document (PDF) (20 pp, 138K), terms and conditions (PDF) (3 pp, 29K), and a sample application (PDF) (6 pp, 75K), please visit the U.S. Department of Treasury's Web site. Please note: The Department of Treasury is not yet accepting applications for grants. This information has been released to allow companies to prepare in advance for submitting a grant application.
The CHP ITC is claimed through IRS Form 3468 (PDF) (3 pp, 249K), available on the IRS's Web site. Facility owners who claim the ITC can not claim the production tax credit (PTC).

24. Colorado: NEED Grants (New Energy Economic Development)
Commercial/industrial/public sectors
For energy efficiency and renewable energy projects
$2m in funding for this round
No max per projects
1st deadline was August 28th (but 2 other rounds will follow)

25. Still the best source for all incentive information:
DSIRE Database
(Database of State Incentives for Renewables & Efficiency)
Also check…
EPA CHP Partnership
- Clean Energy Application Centers
(see websites or just call)
Note: our website lists incentives unique to our states; other CE-AC websites probably do the same…
INTERMOUNTAIN CHP CENTER
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26. New Colorado Industrial Energy Efficiency Program Launching This Fall
Voluntary commitments to reduce energy intensity
Assessments, technical assistance, goal-setting, trainings, public recognition
INTERMOUNTAIN CHP CENTER
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27. New Colorado Industrial Energy Efficiency Program (cont’d)
Stems from Gov. Ritter’s Colorado Climate Action Plan
Governor’s Energy Office, SWEEP, ETC Group, Colo State Univ.
One of 12 state/regional industrial EE programs selected to receive funding from DOE ITP solicitation
Will promote upcoming ISO energy management standard

28. INTERMOUNTAIN CHP CENTER
Industrial Assessment Centers
Energy, waste, and productivity assessments to small and mid-sized manufacturers
Funded by DOE
Assistance provided by upper-level engineering students
INTERMOUNTAIN CHP CENTER

29. Colorado Governor’s Energy Office (GEO)
Home Weatherization: $80m over 3 years
Energy Efficiency and Conservation Block Grants (EECBG): $45m over 3 years
Most to cities/counties, some to state
State: local code development & training, residential EE, “Greening Main Street” (commercial EE), & more
State Energy Program…

30. CO State Energy Program $50m over 3 years, from ARRA funds
42% Financing and Capital Grants
21% Renewable Energy Programs
12% Residential Programs
11% Commercial Buildings Programs
10% Greening Government Programs
3% Public Information & Outreach
1% Utility and Transmission Programs

31. Questions? Patti Lynn Case 801-278-1927
Director, Intermountain Clean Energy Application Center
Vice President, ETC Group