1. Landfill Methane Outreach Program 6 th Annual Conference & Project Expo January 7, 2003 Stephen S. Kalland NC Solar Center - NC State University (919) 513-1896 Steve_Kalland@ncsu.edu The North Carolina Solar Center: Programs of Interest to LMOP

2. The North Carolina Solar Center  Created in 1988 as a “spin- off” of Solar House that was constructed in 1981 - became university center in 1992  NCSU College of Engineering  Mission: to help integrate renewable energy into state energy policy and portfolio for homes, schools, institutions, businesses, vehicles  Partners: NCSU College of Engineering, NC State Energy Office, NC Dept of Natural Resources, USDOE, NREL, DUKE Solar, IREC, NAIMA, BP, other corporations

3. Relevant Programs  NC GreenPower  Industrial Extension Programs  DSIRE Project  National Interconnection Project  Net Metering and Simplified Interconnection (States and FERC)

4. NC GreenPower  NC Solar Center has seat on program Advisory Board and Strongly Supports LFG Technologies in the Program  Statewide Green Power Program  Demand Driven – 100 kWh Blocks Sold  Separate “Premium” and “Bulk Purchase” Products  Projected LFG Premium 3.3 ¢ – 2.5¢

5. Industrial Extension Programs  NCSU and the Solar Center  NCSC RE Industrial Assessment Program  Industrial Extension Service (IES)  Industrial Assessment Center (IAC)  Industries of the Future (IOF)  Wood products, Chemicals, Agriculture, Mining

6. “North Carolina is a national pioneer in developing landfill gas utilization projects for small landfills. At the small Yancey/Mitchell County landfill a unique partnership of public, private, nonprofit, economic and educational consortiums worked together to implement a unique plan. A second project at Avery County has secured funding and the gas collection system will be installed in the fall of 2000.” -- From EPA 430-R-00-010, A Primer on Developing North Carolina’s Landfill Gas Utilization Potential EnergyXchange formed to develop the Yancey/Mitchell County landfill project.

7. DSIRE Project  Current & Accurate Information on Incentives, Programs & Policies  Access to Documentation & Legislation  Links to Program Websites  Contact Information  Search Capabilities  Summary Tables and Maps

9. DSIRE Project Modules  State Financial Incentives  State Regulatory Policies & Programs  Utility Programs & Incentives  Schools Going Solar  Local Gov’t & Community Programs & Incentives  Federal Incentives

10. Financial Incentives  Grants, Rebates & Loans  Personal Tax Incentives  Corporate Tax Incentives  Sales Tax Incentives  Property Tax Incentives  Industry Recruitment  Leasing & Sales Programs  Production Incentives

11. Rules, Regulations & Policies  Public Benefits Funds  Generation Disclosure  Renewables Portfolio Standards  Net Metering & Interconnection  Line Extension Analysis  Solar & Wind Access Laws  Construction & Design Policies  Contractor Licensing  Equipment Certification  Installer Certification/Accreditation  Required Green Power Programs

12. Investment & Investment & Awareness  Education & Assistance Programs  Outreach & Research Centers  Demonstration Projects  Green Aggregation  Green Pricing Programs

22. National Interconnection Project  Sponsored by IREC and US DOE  www.irecusa.org/connect  Technical Assistance to States and Utilities for Developing Interconnection Rules  Interconnection Workshops  Direct Q&A Response  Project Serves As an Information Clearinghouse on Interconnection Issues  Interconnection Newsletter  “Connecting to the Grid” Website - www.irecusa.org/connect

23. Interconnection Cost  This issue is seen as greatest barrier to DG by customer, DOE and EPA LMOP  Line study and upgrade cost need to be determined by CP&L in a timely fashion  Will require 100kVa 3 Ø transformer bank  Can charge upgrade against Schedule CSP- 20B at 1% per month  Metering requirements need to be determined by CP&L, but should be less than $500

24. What Is Net Metering?  Allows customers to spin their meter backward, using excess renewable generation to offset utility-purchased electricity on a periodic basis (usually a monthly billing period, sometimes an annual period);  Effectively values all renewable generation (up to parity) at retail rates; any excess generation is sold at the lower ‘avoided cost’ rate, or is uncompensated;  Most meters used in residential and small commercial applications are bi-directional, making net metering easy to implement without meter replacement.

25. Status of Net Metering  ~39 States have at least some areas with net metering available  Latest News:  The Good - WY, DC, FL?  The Bad (but not too bad) - OH  The Ugly - CO, MO  Others - KS, IN, UT, KY, WV

26. ~39 states have “something” Net Metering Programs: Not All Are Created Equal

27. Net Metering For All Consumers 7 States Limit by Class (i.e. Residential, Commercial, Industrial) 12 States Do Not Include All Types of Electricity Providers (i.e. IOUs, Munis, and Coops) Net Metering Programs: Not All Are Created Equal

28. Simple Net Metering For All Consumers The Next Step Is To Identify Which States Have Simple Procedures for Technical Interconnection and Contractual Agreements Interconnection Issues -No Simple Standard Agreement Form -Interconnection Not Addressed or Requires More Than IEEE, UL and NEC only Net Metering Programs: Not All Are Created Equal

29. Interconnection: Technical Issues  The Problem:  Utilities are responsible for maintaining the safety and reliability of the grid, and have legitimate concerns about the interconnection of equipment to the network.  BUT, utilities face a conflict of interest because they have an incentive to discourage self-generation by customers.  The Solution:  Uniform adherence to codes and standards developed by nationally-recognized independent authorities, such as IEEE, UL, and NEC.

30. Technical Standards Adoption  Twenty-two states have adopted interconnection standards for net metering based on UL/IEEE  A number of additional states are addressing interconnection standards  States have started addressing interconnection standards outside of the net metering context -- very important for larger RE applications not eligible for net metering

31. Solid - rules process complete Striped - rules process in progress Adoption of Technical Standards

32. Adoption Is Not Implementation  Streamlining interconnection involves three essential steps:  Development of standards => (almost) DONE!  Adoption of standards => IN PROGRESS...  Implementation of standards => STILL TO COME...  Example -- California: Implementation required nearly five years, and required the repeated intervention of the legislature, the PUC, the CEC, CalSEIA and other stakeholders

33. FERC Interconnection – Small Generators  Would standardize interconnection for all generator interconnections  FERC has expedited procedures for small generators under 20 MW  Small Generator representatives detailed the 20 MW exemption for:  2 to 20 MW | below 2 MW

34. Application Process Overview  Scope of process shrinks considerably when expedited  ANOPR defines a series of criteria depending on size threshold Generator Application >20MW? Full Application Process Interconnect Agreement >2MW? Expedited Application Process Super Expedited Application Process Meets Criteria? Yes

35. Size Threshold Categories  Less than 2 MW (Attachment A)  certified equipment  de minimis grid impact  no transmission  Load response only?  2-20MW (Attachment B)  check for transmission impacts  could follow Att. A

36. When will all of this be over?  Consensus document filed Nov. 14  Comments due on ANOPR – Dec 20  FERC “Queing” Technical Conference – Jan 21  FERC to issue proposed Rule ~ Feb/Mar  New rule in place ~ May/June 2003

37. For More Information Interconnection & Green Power Issues Steve Kalland Associate Director, Policy and Development NC Solar Center at NC State University 919-513-1896 steve_kalland@ncsu.edu DSIRE Project Sue Gouchoe Manager, Policy Analysis NC Solar Center at NC State University 919-513-3078 sue_gouchoe@ncsu.edu