Indianas Clean Energy Credit Program Energy Efficiency

1
Indianas Clean Energy Credit Program (Energy
Efficiency Renewable Energy Set-aside)

• Roger Letterman
• Sr. Environmental Manager
• Office of Air Quality
• Compliance Branch

2
Background

• Clean Energy Credit Program (CECP) is implemented
  through the Energy Efficiency/Renewable Energy
  Set-aside
• EE/RE Set-aside established in Indianas NOx
  Budget Trading Program
• EE/RE Set-aside is pool of NOx allowances for
  EE/RE projects
• One NOx allowance one ton of NOx emissions

3
NOx Budget Trading Program

• Regional trading program involving 21 states in
  eastern U.S.
• Sources in the trading program must hold NOx
  allowances equal to ozone season (May 1 -
  September 30) NOx emissions
• NOx allowance value fluctuates - currently
  between 1,800 and 2,300 per allowance

4
Eligible Projects

• Demand side management
• Highly efficient generation
• Renewable energy projects
• Wind
• Solar
• Biomass
• Methane capture

5
Demand Side Management

• Lighting efficiency/control projects
• Building retrofits (insulation improvements,
  window replacements)
• Process equipment efficiency improvements
• Heating and cooling efficiency improvements
• Reducing fuel usage

6
Highly Efficient Generation

• Combined heat and power at least 60 efficient
• Microturbines (gt500 kW) at least 40 efficient
• Combined cycle projects gt 500 kW at least 50
  efficient
• Fuel cell systems at least 40 efficient

7
Renewable Energy

• Wind
• Solar
• Biomass combustion
• Methane capture/combustion
• Sanitary landfills
• Water or sewage treatment plant
• Anaerobic digestion - CAFOs

8
Examples

• Commercial Building Envelope Retrofit
• Retailer completes variety of energy efficient
  retrofits including
• Compact fluorescent lighting, energy management
  systems, energy efficient HVAC/windows and LCD
  exit signs
• 4 million kWh saved during the ozone season
• Energy savings 3 NOx allowances
• 3 allowances x 2,050 x 5 years 30,750

9
Examples (continued)

• Landfill Methane Generation
• Landfill captures/compresses methane that fires
  reciprocating engines driving four 800 kilowatt
  generators
• Generators produce 11,750,400 kWh of electricity
  for distribution to the grid
• Electricity generated 9 NOx allowances
• 9 allowances x 2,050 x 5 years 92,250

10
Examples (continued)

• Wind Turbine Project
• Wind development company installs ten turbines
  with maximum output of 1.5 MW
• Turbines generate 40 of maximum capacity and
  22,032,000 kWh during the ozone season
• Electricity generated 17 allowances
• 17 allowances x 2,050 x 5 years 174,250

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Examples (continued)

• Combined Heat and Power Project
• Athletic facility operates two 60 kW
  microturbines with waste heat used for hot water
  production and heating two swimming pools
• Electricity generated and heat used 1 NOx
  allowance
• 1 allowance x 2,050 x 5 years 10,250

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Applicant Requirements

• Project sponsor must contact U.S. EPA to
  establish a general account for holding NOx
  allowances
• Projects must result in a least one ton of NOx
  reductions/savings
• Projects may be combined to meet the one ton
  requirement

13
Application Process

• Submit application by September 1 of year prior
  to anticipated implementation
• IDEM/OEDD review applications and requests
  additional information where needed
• After approval, allowances are reserved for
  following ozone season

14
Allocation Process

• Results submitted each year after implementation
• IDEM/OEDD review results to verify NOx savings
• Appropriate NOx allowances are calculated
• IDEM notifies U.S. EPA to transfer the NOx
  allowances from EE/RE set-aside

15
Program Benefits

• Energy savings - reduced fuel usage, reduction in
  electricity demand
• Air quality - reduced pollution from electric
  generators, incentive for clean energy
• - provides economic incentive
• Innovation - provides incentives for newer,
  cleaner energy and energy efficiency

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Additional Information

• www.IN.gov/idem/energycredit
• Guidance manual
• Application materials
• Links for measurement and verification protocol
  guidance
• Contacts
• Roger Letterman 317/232-8342
• Ryan Brown 317/232-8961