Policy and Incentives

National Regional      
Alaska Idaho Montana
 Oregon Washington

National

Guide to the Successful Implementation of State Combined Heat and Power Policies (March 2013) – A document by SEE Action (State and Local Energy Efficiency Action Network) This Guide to Successful Implementation of State Combined Heat and Power Policies is designed to inform state regulators, facility operators, utilities, and other key stakeholders about the benefits, costs, and implications of greater use of combined heat and power (CHP). Achieving greater use of CHP is consistent with President Obama’s Executive Order 13626-Accelerating Investment in Industrial Energy Efficiency, which calls for 40 gigawatts (GW) of new, cost-effective CHP by 2020.

White House Executive Order --Accelerating Investment in Industrial Energy Efficiency (August 30, 2012) - President Obama signed an Executive Order establishing a national goal of deploying 40 gigawatts (GW) of new combined heat and power (CHP) and waste heat recovery (WHR) by the end of 2020, a 50 percent increase from 2010 capacity levels.

Regional

2009 Northwest Industrial Energy Efficiency Summit report (May 2009) Report summarizing the 2009 Northwest Industrial Energy Efficiency Summit's events and objectives.  This event was a Call To Action for industry, utilities, federal and state government, academia and industrial and energy efficiency organizations to strengthen their collaborative work and leverage their resources.

For a description of regional and state level CHP policy, financing and initiative efforts see CHP Initiative and Policy Efforts in the Northwest (May 2007).

The purpose of the Northwest CHP Policy and Initiatives is to encourage the development of a policy, regulatory and statutory framework to help ensure rapid development and use of CHP. This initiative led the development of the CHP Pacific Northwest Roadmap. The Pacific Northwest Initiative works in cooperation with similar initiatives throughout the country. See the regional initiatives page on the U.S. Clean Heat and Power Associations web site for more information.

  • Industrial Energy Efficiency: Improving Competitiveness, Reducing Emissions (June 2011) This Western Governors’ Association (WGA) report focuses on the potential for fostering improved industrial energy efficiency in the Western states, looking at both obstacles and solutions to it. The industrial sector of this region accounts for 35 percent of total energy consumption. A recent study by McKinsey estimates potential industrial energy savings of up to 18 percent by 2020, based on readily, cost-effective technologies. CHP is discussed on pages 5 and 11-12.  Recommended barrier reduction policies include: 1) Utility standby charges; 2) Interconnection standards; 3) CHP as a portfolio resource; and 4) Output-based emission standards.
  • State of Washington Clean Energy Opportunity: Technical Market Potential for CHP (August 2010) What is the technical potential for CHP in Washington? The state of Washington has significant clean energy technical market potential – well over 4000 MW! CHP provides significant energy efficiency improvements and economic benefits as compared to stand-alone power generation.
  • Freeing the Grid 2012: Best Practices in State Net Metering Policies and Interconnection Procedures (December 2012) A Policy guide that grades states on two key programs: net metering and interconnection procedures. Now in its sixth year of publication, the 2012 report indicates that states continue to drive progress in the nation’s renewable energy economy. Freeing the Grid is produced annually by NNEC (Network for New Energy Choices)
  • CHP Initiative And Policy Efforts In The Northwest (April 2007)
  • This Combined Heat and Power White Paper (January 2006) was prepared for the Western Governors' Association (WGA) at the invitation of the WGA's Clean and Diversified Energy Advisory Committee.
  • Clean Heat and Power in the Pacific Northwest: Market Assessment (August 2004) This report provides: 1) A comprehensive review of current CHP capacity in the Pacific Northwest including a database by each state; 2) A review of the economic and technical market potential for additional CHP; 3) A review of barriers and incentives to CHP; and 4) Recommended actions to increase CHP deployment.
  • Comparing Pipes and Wires (March 2004) This study is a capital cost analysis of energy transmission via natural gas pipelines and overhead electric wires.

Alaska

  • Alaska Power Cost Equalization (PCE) - Statistical reports on population, energy consumption, fuel consumption to produce electricity, and other key data points are available by community and year on the PCE web page.
    The goal of Alaska Energy Authority's (AEA) Power Cost Equalization program is to provide economic assistance to customers in rural areas of Alaska where the kilowatt-hour charge for electricity can be three to five times higher than the charge in more urban areas of the state. Approximately 30% of all kWh’s sold by the participating utilities are eligible for PCE.
    PCE fundamentally improves Alaska’s standard of living by helping small rural areas maintain the availability of communications and the operation of basic infrastructure and systems, including water and sewer, incinerators, heat and light. PCE is a core element underlying the financial viability of centralized power generation in rural communities. AEA determines eligibility of community facilities and residential customers and authorizes payment to the electric utility. Commercial customers are not eligible to receive PCE credit. Participating utilities are required to reduce each eligible customer’s bill by the amount that the State pays for PCE. Estimated FY2015 costs for PCE was $41.4 million (Source: November 2015 AEA PCE Program Fact Sheet).
  • Alaska passes State Energy Policy (June 2010)
    Sponsored by the House Energy Special Committee, chaired by Representatives Millett and Edgmon.
    (Reformatted version) HB 306 has four main goals in establishing a statewide energy policy: establishing a thorough and coordinated approach to supporting energy efficiency and conservation; encouraging economic development in Alaska; supporting energy research, education and workforce development; and coordinating governmental functions
    (for original version click here)
  • Interconnection requirements of utilities with over 25,000 customers
  • Alaska Utility Data 2013
    The purpose of this report is to provide ready access to utility information for the state of Alaska. The source of the data is the U.S. Department of Energy, Energy Information Administration’s 2013 Electric Sales and Revenue Report. The utility-level data includes the total number of customers, annual sales in dollars and in megawatt-hours (MWh), average retail rates and peak summer and winter demand (MW) for industrial customers and commercial customers. If information is provided about whether the utility offers a net metering or green pricing program, it is noted here as well.
    This data is used for many purposes. The NW CHP Technical Assistance Partnership provides this data as a useful benchmark for developing economic potential estimates for combined heat and power, as a basis for policy initiatives and to identify potential target areas for combined heat and power development.
  • Alaska Energy Pathway (July 2010): A Guide for Alaskan Communities to Utilize Local Energy Resources
    This report takes the previous report “Alaska Energy – A first step toward energy independence” one step further by setting an overall policy direction for Alaska, including aggressive targets for energy efficiency, conservation, and renewable energy development. In addition, the report identifies critical priority areas for Alaska that are closely related to energy supply and demand, and also includes much more detailed information on an energy path forward for each community and region in the State.
  • Alaska Energy, A First Step Toward Energy Independence (Jan 2009) -- This Report was prepared by the Alaska Energy Authority (AEA) and Alaska Center for Energy and Power (ACEP). The report is 245 pages and is very comprehensive. It covers a wide range of topics related to Alaska’s Energy Resources, including the history of Alaska’s energy policy, permitting, and the analysis of 18 types of technologies and their potential for use in Alaska. The geographic focus of the report is on the Non-Railbelt portions of Alaska, where the need to reduce energy costs is greatest.
    The technologies discussed include both fossil fuel and renewable energy sources. Appropriate technologies for each fuel are identified. Diesel is currently the most common fuel in the rural villages triggering heavy price impacts (up to 80 cents per kWh). There is a strong focus on shifting away from a heavy reliance on diesel engine technology toward renewable energy (see companion report on Alaska Community Energy Profiles 2009) There is also focus on efficiency of diesel engines including a shift to heat recovery and CHP. This topic is covered under “Diesel efficiency and Heat Recovery” on pgs 59-69. CHP is discussed on pgs 123-126. Many Alaska villages are shifting from standalone power production to CHP with renewable energy integration. For example, all Alaska wind-diesel hybrids are CHP systems (the wind is also used for heat).
  • Alaska Energy Models -- Community By Community -- (January 2009) This document from the Alaska Energy Authority is quite extensive (888 pgs, 9.17MB .pdf) but very thorough in it's detailing of each community's energy usage and their alternative energy resources, which includes information about how much is available for each resource, the cost, the energy content, etc., and also a brief summary of the community's demographics and history. The information for each community is about 4-5 pgs long.
  • Alaska Community Energy Profiles -- (March 2009) Final Report on the Village End Use Energy Efficiency Measures Program ‘07 – ‘08. Details the accomplishments of the grant-funded program for six rural villages from 01/07 – 01/09. The villages received energy efficiency upgrades to their community buildings.
  • The Alaska Energy Data Inventory (AEDI) is a web-based interactive map and data that provides an inventory of all available Alaska energy resource data suitable for electrical power generation and space heating needs. In addition, it helps identify locations or regions where the most economic energy resource or combination of energy resources can be developed to meet local needs. High quality data will be non-existent in most areas of the state.
  • Renewable Energy Atlas -- (May 2009) Map-based guide to the renewable resources of Alaska. Discusses Alaska’s current energy infrastructure, renewable energy policies, the viability of all types of renewable energy sources, and GIS-based maps showing existing locations and locations with potential for each of the six renewable types of energy.
  • Alternative Energy and Energy Efficiency Assistance Plan -- (June 2005) Biennial plan by the Alaska Energy Authority (AEA) for the period 2005 – 2007. This plan, required under 3 AAC 108.310, describes 1) available funding and funding that AEA plans to request for alternative energy and energy efficiency assistance, 2) the types of assistance that AEA provides and plans to provide, and 3) the criteria for allocating funds.
  • Switchgear Evaluation. This paper is an evaluation of switchgear by the Alaska Energy Authority and Marsh Creek LLC of switchgear used for small (250 kW to 1 MW) mini-grid systems in villages in Alaska. The switchgear connects stand alone power production to village electricity needs.
  • Non-Railbelt Final Report -- (April 2004) Report by the Alaska Energy Policy Task Force (EPTF). This report presents the findings and recommendations of the EPTF on the energy needs of the Non-Railbelt area of Alaska. The Non-Railbelt area comprises the largest geographic portion of the state (Four Dam Pool and SE Alaska, Power Cost Equalization communities, and South Central Coastal communities).

Idaho

  • Interconnection requirements of utilities with over 25,000 customers
  • Idaho Utility Data 2013
    The purpose of this report is to provide ready access to utility information for the state of Idaho. The source of the data is the U.S. Department of Energy, Energy Information Administration’s 2013 Electric Sales and Revenue Report. The utility-level data includes the total number of customers, annual sales in dollars and in megawatt-hours (MWh), average retail rates and peak summer and winter demand (MW) for industrial customers and commercial customers. If information is provided about whether the utility offers a net metering or green pricing program, it is noted here as well.
    This data is used for many purposes. The NW CHP Technical Assistance Partnership provides this data as a useful benchmark for developing economic potential estimates for combined heat and power, as a basis for policy initiatives and to identify potential target areas for combined heat and power development.
  • Idaho Legislature Approves 2012 Energy Plan
  • Boise CHP Workshop - white paper (December 2011) Follow-up report to the Combined Heat and Power Workshop held in Boise, ID on December 1, 2011. It articulates the findings derived from a plenary session and breakout groups conducted during the workshop. The workshop was organized by the Center for Advanced Energy Studies’ Energy Policy Institute (EPI) at the request of the Idaho Office of Energy Resources.
  • Idaho Strategic Energy Alliance
    In 2008 Governor C.L. “Butch” Otter formed the Idaho Strategic Energy Alliance (ISEA) within the Office of Energy Resources by an Executive Order. The Alliance is comprised of diverse professionals with expertise in energy. Teams focus on various areas of energy including: energy efficiency and conservation, transmission, economic development, carbon issues, and communications. They have recently added an industrial focus as well. Their goals are to define resource potential, identify barriers and opportunities, and develop options. The Alliance and Idaho Legislature are currently updating the 2007 Idaho Energy Plan, which will be released in January 2012.
  • Forest Biomass Task Force Report (October 2009)
    This report, focused on forestry resources, summarizes issues, opportunities, and suggested actions to address Idaho’s energy objectives. The core of this report is the identification of barriers and challenges to, and the development of options for, expanding development of biomass resources in Idaho.
    For more info on this report, contact:
    Jay O’Laughlin
    Director of Policy Analysis Group and Professor of Forest Resources
    E-mail: jayo@uidaho.edu
    Phone: (208) 885-5776
  • Idaho Energy Action Plan

Montana

  • Montana Legislature passes Senate Bill 305
    On May 2, 2011 the Montana Legislature passed Senate Bill 305 (Section 1. Section 90-4-1001), updating Montana’s state energy policy goal statement to include:
    • Promote distributed generation (up to 80 MW)
    • Qualifying facility - Small power production facility defined as up to 80 MW - MT Code Annotated 69-3-601
    • Develop biomass plants to generate heat for industrial use, electricity, or both, as a means to manage Montana’s forests
    • Develop contracts between qualified small power production facilities & utilities
  • Interconnection requirements of utilities with over 25,000 customers
  • Montana Utility Data 2013
    The purpose of this report is to provide ready access to utility information for the state of Montana. The source of the data is the U.S. Department of Energy, Energy Information Administration’s 2013 Electric Sales and Revenue Report. The utility-level data includes the total number of customers, annual sales in dollars and in megawatt-hours (MWh), average retail rates and peak summer and winter demand (MW) for industrial customers and commercial customers. If information is provided about whether the utility offers a net metering or green pricing program, it is noted here as well.
    This data is used for many purposes. The NW CHP Technical Assistance Partnership provides this data as a useful benchmark for developing economic potential estimates for combined heat and power, as a basis for policy initiatives and to identify potential target areas for combined heat and power development.
  • Understanding Energy in Montana: A Guide to Electricity, Natural Gas, Coal and Petroleum Produced and Consumed in Montana (July 2010) Developed by the Legislative Services Environmental Quality Council (Montana), this recently updated guide focuses on historical and current patterns of energy supply and demands. The 2010 revisions also coincide with the ETIC’s statutorily required review and potential revision of Montana’s Energy Policy.
  • The Electricity Law Handbook: A Montanan’s Guide to Understanding Electricity Law (July 2010) This recently updated Electricity Law Handbook was first developed by the legislative Environmental Quality Council in 2002. The Energy and Telecommunications Interim Committee oversees regular updates to the document in an effort to help Montana citizens better understand our electricity laws and the most recent changes to those laws.
  • Developing a Business Case for Sustainable Biomass Generation: A Regional Model for Western Montana (June, 2010)  This biomass energy feasibility study prepared for Northwestern Energy explores the feasibility of developing sustainable, woody biomass-fueled CHP plants at sawmills in Western Montana to supply a portion of Northwestern Energy’s required RPS.
  • Biomass and Bioenergy: Lessons from other northwest states (March, 2010)  Presentation to the Montana Environmental Quality Council.
  • Harvesting Energy: An analysis of methods for increasing the use of forest and agricultural residues for biomass-based energy generation in Montana -- A Report to the 62nd Montana Legislature, September 2009.
  • An Assessment of Forest-Based Biomass Supply And Use in Montana (22 pgs) -- April 2009 report from the University of Montana - Missoula (for the Forestry Assistance Bureau).  This report examines and quantifies the volumes of four woody biomass types from several sources in Montana:  live trees, standing dead trees, logging residue, and primary mill residue.
  • Montana Climate Change Action Plan -- 2007 Final Report of The Governor’s Climate Change Advisory Committee (CCAC). An evaluation of state-level greenhouse gas (GHG) reduction opportunities as well as 54 policy recommendations that are designed to help reduce Montana’s emissions to 1990 levels by 2020.
  • Reducing Market Barriers to Small-scale Distributed Generation in Montana -- 2004 report by Montana State University for the MT Dept. of Envir. Quality. A significant common barrier for small to medium-scale distributed energy technologies is the high transaction cost relative to the cost of the technology itself. This report discusses research findings on current market barriers and proposed solutions.
  • Reducing Regulatory Barriers to Small-scale Distributed Generation in Montana -- 2004 report by Montana State University for the MT Dept. of Envir. Quality. This report discusses research findings on current regulatory barriers that could stifle widespread acquisition and installation of small-scale distributed generation in Montana, including tax disincentives.

Oregon

  • Oregon State Legislature passes HB 3672 (2011), effective September 2011
    On August 5, 2011 the Oregon Legislature passed House Bill 3672 (Tax Credit Extension Bill), which includes the creation of the Energy Conservation Projects program (Sections 34-51) and sunsetting of the Business Energy Tax Credit (BETC, Section 1). Cogeneration facilities are eligible for the Energy Conservation Projects program beginning January 1, 2013. The BETC expired in April 2011 and has since been renamed the Energy Incentives Program. Click on these links for the BETC rulemaking process and draft of proposed permanent rules. For more information on the changes to BETC go to Oregon Department of Energy.
  • Interconnection requirements of utilities with over 25,000 customers
  • Oregon Utility Data 2013
    The purpose of this report is to provide ready access to utility information for the state of Oregon. The source of the data is the U.S. Department of Energy, Energy Information Administration’s 2013 Electric Sales and Revenue Report. The utility-level data includes the total number of customers, annual sales in dollars and in megawatt-hours (MWh), average retail rates and peak summer and winter demand (MW) for industrial customers and commercial customers. If information is provided about whether the utility offers a net metering or green pricing program, it is noted here as well.
    This data is used for many purposes. The NW CHP Technical Assistance Partnership provides this data as a useful benchmark for developing economic potential estimates for combined heat and power, as a basis for policy initiatives and to identify potential target areas for combined heat and power development.
  • A Framework For Addressing Rapid Climate Change (January 2008)
  • Woody Biomass Energy -- (June 2007) 16-page Report from the Oregon Forest Resources Institute, with color photos and charts, examines opportunities for the conversion of woody biomass from forest thinning into “green” energy, biofuels and other bioproducts. It also looks at some short-term potential for moving Oregon forward in developing an industry tied to the removal of woody biomass from overcrowded forests.
  • Distributed Generation in Oregon: Overview, Regulatory Barriers and Recommendations (Febrary 2005) -- A study completed by the Oregon Public Utility Commision (OPUC).
  • Oregon Strategy for Greenhouse Gas Reductions (December 2004)

Washington

  • 2012 passed legislation favorable to combined heat and power, waste heat recovery, and district energy
    • ESHB 2664 – Adds thermal to voluntary green power programs and eliminates annual reporting
    • ESSB 5575 – Expands definition of biomass energy under Washington’s RPS (I-937) and allows legacy biomass if intertied to a qualifying utility
    • SSB 6414 – RPS pre-certification advisory process for public utilities and project developers
    • 2SSB 5343 – Extends sulfur air emissions compliance until December 31, 2016 for generators fueled by biogas from anaerobic digesters
  • Clean Energy Roadmap: Washington State (March 2012) – This report by the Cascade Power Group outlines three scenarios to help meet our state’s energy demands and emissions reduction goals by 2035 while decreasing total energy consumption. It is also designed to complement the 2012 State Energy Strategy (Executive Summary).
  • 2012 Washington State Energy Strategy (December 2011) In this Energy Strategy, the term "distributed energy" (DE) covers a wide range of technologies and applications: district heating (and cooling), combined heat and power (CHP), and distributed electricity generation.
  • 2009 was a very successful year in Washington State for legislation favorable to CHP. Eight bills were passed. Here’s a summary of each bill as it relates to CHP:
    • SB 6170 – extends and expands tax reduction incentives for a) sales and use tax refunds for purchase of machinery and equipment used directly in generating electricity from biomass energy, lost energy from exhaust, anaerobic digestion, fuel cells, geothermal and landfill gas, b) Sales and use tax exemptions for hog fuel and forest-derived biomass to produce electricity, steam, heat or biofuel, c) Business and Occupation tax credit for harvesting of forest-derived biomass used for production of electricity, steam, heat, or biofuel.
    • HB 2289 (Section 5) – provides $38.5 million of ARRA recovery funds from the State Energy Program (SEP) for loans, loan guarantees, and grants for energy efficiency and renewable energy projects or programs.
    • SB 5649 – provides guidance on the use of ARRA recovery funds, including $500,000 to develop farm energy assessments.
    • SB 5921 – establishes a Clean Energy Leadership Council to guide development of the clean energy economy and advise on stimulus funding use.
    • SHB 1007 – establishes a sustainable energy trust in the Housing Finance Commission for renewable energy and energy efficiency for residential, commercial, agricultural, state and municipal property.
    • SB 5797 – provides a solid waste permit exemption for co-digestion of pre-consumer food waste and dairy manure. This legislation removes a regulatory barrier for dairy anaerobic digestion/CHP systems.
    • SB 5724 – empowers counties with PUDs to own and operate a facility that generates electricity from biomass energy. This bill enables a 20 MW CHP system in Clark County.
    • HB 2165 – allows the Dept. of Natural Resources to develop two biomass energy demonstration projects using forest biomass.
    Detailed Legislation Summary (slides 18 - 22)
  • Report on the potential for cost-effective distributed generation in areas served by investor-owned utilities in Washington State (October 2011) Report by the Washington Utilities and Transportation Commission (UTC) to identify and develop a set of policy actions to advance distributed energy in Washington, including potential legislation to encourage the growth of distributed energy in the state.
  • Interconnection requirements of utilities with over 25,000 customers
  • Washington Utility Data 2013
    The purpose of this report is to provide ready access to utility information for the state of Washington. The source of the data is the U.S. Department of Energy, Energy Information Administration’s 2013 Electric Sales and Revenue Report. The utility-level data includes the total number of customers, annual sales in dollars and in megawatt-hours (MWh), average retail rates and peak summer and winter demand (MW) for industrial customers and commercial customers. If information is provided about whether the utility offers a net metering or green pricing program, it is noted here as well.
    This data is used for many purposes. The NW CHP Technical Assistance Partnership provides this data as a useful benchmark for developing economic potential estimates for combined heat and power, as a basis for policy initiatives and to identify potential target areas for combined heat and power development.
  • Clean Energy Projects (July 2011) Status of Washington's clean energy projects (includes CHP, district energy and waste energy recovery). Also includes projects brought on-line and under development.
  • State of Washington Clean Energy Opportunity: Technical Market Potential for CHP (August 2010) What is the technical potential for CHP in Washington? The state of Washington has significant clean energy technical market potential – well over 4000 MW! CHP provides significant energy efficiency improvements and economic benefits as compared to stand-alone power generation.
  • Wood Biofuels and Bioenergy: Washington Perspectives (February 2010) PowerPoint presentation about utilizing woody biomass in the most efficient, effective, and sustainable manner; also discusses funding and policy issues
  • Washington State Pulp and Paper Mill Boilers: Current and Potential Renewable Energy Production (September 2009) This report, produced by the University of Washington, School of Forest Resources, at the request of the Washington State Legislature, is an assessment of the current energy/boiler profile of the Washington pulp and paper industry to determine the renewable energy CHP production potential of the industry with implementation of state-of-the-art technologies (market assessment).
  • The Beyond Waste Implementation Work Group - The Next 50% Report (November 2008) includes Green Electricity sections (CHP). See pages 15 to 20.
  • The Energy Efficiency Green Buildings Implementation Work Group Report (November 2008) includes a CHP section. See pages 9-14.
  • The report titled Recommendations for the Development of Agricultural Sector Carbon Offsets in Washington State (October 2008) is a core document for establishing higher carbon offsets percentages which in general enables CHP. For a specific discussion of dairy anaerobic digestion/CHP opportunities see pages 24 to 33.
  • CHP & Climate Change (May 2007) PowerPoint presentation about carbon credits and how to use them as a revenue source
  • Developing and Deploying Renewable Energy and Clean Heat & Power Technologies – A role for Washington Industry (November 2002) This report provides industry perspectives and recommendations for developing renewable energy and CHP in the Pacific Northwest.