5947281 Public Service Commission - Notice Of Final Rulemaking - RM29-2016-01, In The Matter of 15 DCMR Chapter 29-Renewable Energy Portfolio Standard- Renewable Energy Portfolio Standard Amendment Act Of 2014
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PUBLIC SERVICE COMMISSION OF THE DISTRICT OF COLUMBIA
NOTICE OF FINAL RULEMAKING
RM29-2016-01, In the Matter of 15 DCMR CHAPTER 29-renewable energy portfolio standard-renewable energy portfolio standard amendment act of 2014
1. The Public Service Commission of the District of Columbia (“Commission”), pursuant to its authority under D.C. Official Code §§ 2-505 and 34-802 (2012 Repl.), hereby gives notice of its final rulemaking action amending Chapter 29 (Renewable Energy Portfolio Standard) [‘REPS’ or ‘Standard’] of Title 15 (Public Utilities and Cable Television) of the District of Columbia Municipal Regulations (“DCMR”), effective upon publication of this Notice of Final Rulemaking in the D.C. Register.
2. On February 5, 2016, the Commission published a Notice of Proposed Rulemaking (“NOPR”) in the D.C. Register at 63 DCR 1352 amending Chapter 29, in accordance with the “Renewable Energy Portfolio Standard Amendment Act of 2014” (“REPS Amendment Act of 2014”).[1] The Office of the People’s Counsel filed comments in response to the NOPR, stating that it had no objection to the proposed rules as they are consistent with the legislative intent of the Council of the District of Columbia, are in accordance with the REPS Amendment Act of 2014, and would have no negative impact on ratepayers.[2] No reply comments were filed.
3. The REPS Amendment Act of 2014 changes the definition of the term “qualifying biomass”. The legislation also requires that, to qualify as a Tier 1 resource, a generation unit using biomass must achieve a total system efficiency of at least sixty-five percent (65%) on an annual basis, demonstrate that it achieved a total system efficiency of at least 65% on an annual basis through actual operational data after one year, and demonstrate that it started commercial operation after January 1, 2007 and refrain from using black liquor. Under this law, those biomass generation units that cannot achieve a total system efficiency of at least 65%; or that started commercial operations on or before December 31, 2006 or that use black liquor, can no longer qualify as Tier I resources. Rather, they now qualify as Tier II resources. The following definitions are also amended: qualifying biomass, tier one renewable source, and tier two renewable source. In addition, new definitions are added for the following terms: “black liquor”, “fuel input”, “total system efficiency”, and “useful thermal energy output”. Finally, under the Distributed Generation Amendment Act of 2011, energy supply contracts executed prior to August 1, 2011 are not subject to the increased solar requirement required by that law.[3] Under the REPS Amendment Act of 2014, any extension or renewal of these contracts executed on or after that date shall be subject to the higher solar energy requirement. Commission Rules 2901.14, 2902.22, and 2999 are revised accordingly in the NOPR.
4. The Commission, therefore, at its regularly scheduled meeting held on March 23, 2016 adopted the revised version of these rules as final, and they will become effective upon publication of this notice in the D.C. Register.
Chapter 29, RENEWABLE ENERGY PORTFOLIO STANDARD, of Title 15 DCMR, PUBLIC UTILITIES AND CABLE TELEVISION, is amended as follows:
2901 RPS COMPLIANCE REQUIREMENTS
Subsection 2901.14 is amended to read as follows:
2901.14 Energy supply contracts entered into prior to August 1, 2011, shall not be subject to the increased solar energy requirement as required by law; but any extension or renewal of such contracts, executed on or after August 1, 2011, shall be subject to the higher solar energy requirement as required by law.
2902 GENERATOR CERTIFICATION AND ELIGIBILITY
Subsection 2902.22 is added to read as follows:
2902.22 Every facility using qualifying biomass to generate electricity and certified as a qualifying resource by the Commission shall submit annually by June 1, starting in 2016, information demonstrating each system’s total system efficiency for the current calendar year consistent with the definitions of “total system efficiency,” “fuel input,” and “useful thermal energy output” in Subsection 2999.1.
2999 DEFINITIONS
The following definitions in Subsection 2999.1 are amended to read as follows:
Qualifying biomass -- a solid, non-hazardous, cellulosic waste material that is segregated from other waste materials, and is derived from any of the following forest-related resources, with the exception of old growth timber, construction and demolition-derived wood and whole trees that are not part of a closed-loop biomass system, cleared solely for the purpose of energy production, unsegregated solid waste, or post-consumer wastepaper:
(a) Mill residue;
(b) Precommercial soft wood thinnings;
(c) Slash;
(d) Brush;
(e) Yard waste;
(f) A waste pallet, crate, or dunnage;
(g) Agricultural sources, including tree crops, vineyard materials, grain, legumes, sugar, and other crop by products or residues; or
(h) Cofired biomass.
Construction and demolition-derived wood and whole trees that are not part of a closed-loop biomass system, cleared solely for the purpose of energy production, shall be considered qualifying biomass, if a) this material was used to generate RECs and those RECs are retired for compliance purposes with respect to electricity consumed by SOS customers on or before May 31, 2015; or b) this material was used by a facility certified before April 30, 2015, the effective date of the Renewable Energy Portfolio Standard Amendment Act of 2014, to generate RECs, which were purchased by an electricity supplier pursuant to a contract executed before April 30, 2015, and those RECs are retired for compliance purposes with respect to electricity consumed by non-SOS customers on or before December 31, 2017.
In all other instances, the construction and demolition-derived wood and whole trees that are not part of a closed-loop biomass system, cleared solely for the purpose of energy production, shall not be considered qualifying biomass, as of April 30, 2015.
Tier one renewable source -- one (1) or more of the following types of energy sources:
(a) Solar energy;
(b) Wind;
(c) Qualifying biomass used at a generation unit that achieves a total system efficiency of at least sixty-five percent (65%) on an annual basis, can demonstrate that it achieved a total system efficiency of at least 65% on an annual basis through actual operational data after one year, and that started commercial operation after January 1, 2007;
(d) Methane from the anaerobic decomposition of organic materials in a landfill or wastewater treatment plant;
(e) Geothermal;
(f) Ocean, including energy from waves, tides, currents, and thermal differences; and
(g) Fuel cells producing electricity from a Tier One renewable source under paragraph (c) or (d) of this paragraph.
The qualifications to qualifying biomass in subsection (c) shall not apply to RECs retired for compliance purposes with respect to electricity consumed by SOS customers on or before May 31, 2015; or with respect to electricity consumed by non-SOS customers on or before December 31, 2017, provided that these RECs were produced by a facility certified as a Tier I energy source before April 30, 2015 and were purchased by an electricity supplier pursuant to a contract executed before April 30, 2015. In all other instances, subsection (c) shall apply as of April 30, 2015.
Tier two renewable source -- one (1) or more of the following types of energy sources:
(a) Hydroelectric power other than pumped storage generation;
(b) Waste-to-energy; or
(c) Qualifying biomass used at a generation unit that started commercial operation on or before December 31, 2006; or achieves a total system efficiency of less than 65%; or uses black liquor.
Subsection (c) shall not apply to RECs retired for compliance purposes with respect to electricity consumed by SOS customers on or before May 31, 2015; or with respect to electricity consumed by non-SOS customers on or before December 31, 2017, provided that these RECs were produced by a facility certified as a Tier I energy source before April 30, 2015 and were purchased by an electricity supplier pursuant to a contract executed before April 30, 2015. In all other instances, subsection (c) shall apply as of April 30, 2015.
The following definitions that are being added to Subsection 2999.1 read as follows:
Black liquor -- the spent cooking liquor from the Kraft process of paper making.
Fuel input -- the higher heating value of the input fuel type, measured in BTU/LB, based on the standardized heating type of fuel type, multiplied by the annual fuel used in as delivered tons, multiplied by 2000.
Total system efficiency -- the sum of the net useful thermal energy output measured in BTUs divided by the total fuel input.
Useful thermal energy output -- energy in the form of direct heat, steam, hot water, or other thermal form that is used in production and beneficial measures for heating, cooling, humidity control, process use, or other valid thermal end use energy requirements and for which fuel or electricity would otherwise be consumed. Useful thermal energy output does not include thermal energy used for the purpose of drying or refining biomass fuel.
[1] Renewable Energy Portfolio Standard Amendment Act of 2014, effective April 30, 2015 (D.C. Law 20-245; 62 DCR 1492 (February 6, 2015)).
[2] RM29-2016-01, In the Matter of 15 DCMR Chapter 29-Renewable Energy Portfolio Standard-Renewable Energy Portfolio Standard Amendment Act of 2014 (“RM29-2016-01”), the Office of the People’s Counsel’s (“OPC”) Motion for Leave to File Comments Out-of-Time and Comments on the Notice of Proposed Rulemaking (“NOPR”) on the Renewable Portfolio Standard Amendment Act of 2014 (“Motion”), March 8, 2016. The NOPR was published on February 5, 2016 and comments were due thirty(30) days from that date. March 6, 2016, thirty days after that date, fell on a Sunday, so comments were permitted through Monday, March 7, 2016. The Commission accepts OPC’s comments into the record.
[3] Distributed Generation Amendment Act of 2011, effective October 20, 2011(D.C. Law 19-36; 58 DCR 6837 (August 12, 2011)).
