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EPA Publishes Clean Power Plan, State And Local Governments Take Sides

The U.S. Environmental Protection Agency (EPA) has formally published the final Clean Power Plan in the Federal Register, and a coalition of 24 states has launched a lawsuit against the agency in an effort to block the emissions-reduction initiative. In response, a coalition of 25 states, cities and counties has filed a motion to defend the plan.

Initially released in 2014 and finalized in August of this year, the Clean Power Plan aims to increase the efficiency of coal-fired power plants; shift generation from existing coal- and oil-fired power plants to gas-fired power plants; and up the electricity generation from non-emitting renewable sources, including wind and solar.

The original goal was to cut carbon emissions from the power sector 30% below 2005 levels by 2030, but in the August revision, the EPA upped it to 32%.

Although the plan is expected by many to be a major boon for U.S. renewables, some states and other stakeholders, such as utilities, argue that the changes would be too drastic.

West Virginia Attorney General (AG) Patrick Morrisey, who is leading the coalition of states against the plan, says it “unlawfully expands the federal government’s regulatory power over electricity production and consumption in nearly every state in the U.S.”

“[The] EPA claims to have sweeping power to enact such regulations based on a rarely used provision of the Clean Air Act, but such legal authority simply does not exist,” Morrisey explains.

Besides West Virginia, the states challenging the rule are Texas, Alabama, Arkansas, Colorado, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Michigan, Missouri, Montana, Nebraska, New Jersey, Ohio, South Carolina, South Dakota, Utah, Wisconsin and Wyoming, as well as the Arizona Corporations Commission and the North Carolina Department of Environmental Quality.

According to their lawsuit, the states believe the rule could have “devastating impacts upon the states and their citizens”:

“The Section 111(d) rule exceeds the EPA’s authority by unlawfully forcing states to fundamentally alter state resource planning and energy policy by shifting from coal-fired generation to other sources of power generation, with a significant emphasis on renewable sources. The rule is also illegal because it seeks to require states to regulate coal-fired power plants under Section 111(d) of the Clean Air Act, even though the EPA already regulates those same plants under Section 112 of the act.”

“As attorney general, I have a responsibility to protect the lives of millions of working families, the elderly and the poor from such illegal and unconscionable federal government actions,” Morrisey adds.

New York State AG Eric T. Schneiderman is leading the charge in defense of the Clean Power Plan. He is joined by the states of California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New Mexico, Oregon, Rhode Island, Vermont, Virginia and Washington. Cities include the District of Columbia; New York; Boulder, Colo.; Chicago; Philadelphia; South Miami, Fla.; and Broward County, Fla.

“The EPA’s Clean Power Plan is a critical step forward in responding to the threat of climate change,” Schneiderman says. “The rule is firmly grounded in science and the law. The rule incorporates successful strategies New York and other states have used to cut climate change pollution from power plants while maintaining electricity reliability, holding the line on utility bills and growing our economies. We are committed to aggressively defending the Clean Power Plan to ensure progress is made in confronting climate change.”

In a separate statement, Anna Aurilio, director of the Washington, D.C., office of Environment America, says, “No matter how deep the pockets of the polluters or how many lawsuits they or their government allies file, the Clean Power Plan will prevail, and if we’re going to ensure a safer climate for future generations, it must.” - Betsy Lillian

 

SunEdison’s Bloomberg Deal Spotlights New York’s Virtual Net-Metering Policy

SunEdison Inc. has signed a power purchase agreement (PPA) with Bloomberg to power the company’s Rockland County, N.Y.-based data center with 2.9 MW of solar energy.

The deal represents a relatively new structure for delivering solar energy benefits to customers. Steve Raeder, regional general manager of SunEdison’s Eastern U.S. solar business, says New York’s virtual net-metering rule has opened up opportunities for companies that otherwise could not benefit from solar because of site constraints.

The New York Independent Systems Operator (NYISO) has load zones designated A-K, with Zone A being in the far western portion of the state and Zone K being Long Island. SunEdison’s remote net-metering program in New York allows the company to build a solar project and supply the credits it generates to an off-taker in the same NYISO load zone and utility service area. Some zones represent very sizable geographic areas where the solar array could be located tens of miles away from the customer site.

Bloomberg’s data center is located in NYISO Zone G. SunEdison says it has a site picked out for the solar array that will produce the electricity under the PPA. The contracted power is expected to generate enough electricity each year to offset more than 5% of the data center’s electricity usage. Construction is set to begin next year.

“A data center is a great example of where it might be great from a power consumption standpoint, but there are a lot of reasons why a person might not want to put the panels on-site,” Raeder says.

One of the reasons is that data centers are sensitive locations. Because the operations of the facility are so critical, there is often reluctance to allow people into the facility itself either to install the system or to service and maintain it later. Though some data center operators may be willing to install ground-mounted systems adjacent to the building, land value and land-use issues may come into play. Finally, data center operators often lease the buildings they use.

“For the Bloomberg deal, off-site generation checked those boxes,” Raeder says. “It took away the constraint around not owning the facility and then any physical constraints that there would be, which is really the theme of remote net metering.”

The net-metering credit, which is the commodity that these solar systems generate, is worth a certain amount. SunEdison says it has 80 MW in Massachusetts delivering net-metering credits in the same fashion.

New York’s virtual net-metering program used to be a monetary crediting system like the one that exists now in Massachusetts. That has since changed to a volumetric calculation based on kilowatt-hours, which means less money for developers.

The new New York rule grandfathers existing projects, and the project at the heart of the SunEdison and Bloomberg deal falls into that category. Raeder says SunEdison has a number of projects on the books in New York that are also grandfathered.

“Utilities look at the volumetric calculation as more favorable,” Raeder says. “It was a little bit of a setback for folks like us. But, our cost structure continues to drop. Things like that may cause some temporary discomfort, but in the long term, it may add more survivability for the market.” - Michael Puttré

 

New York Makes $13M In Solar Incentives Available For Low- To Moderate-Income Homeowners

The New York State Energy Research and Development Authority has launched its Affordable Solar program intended to increase access to solar for low- to moderate-income homeowners.

Affordable Solar doubles the applicable incentives for each solar project installed at the home of a low- to moderate-income resident. The double incentives are available for residential solar projects at households earning less than 80% of the area or state median income.

Residential incentives currently range from $0.20/W to $0.60/W, depending on the area. Under the program, the range will increase to $0.40/W to $1.20/W.

The $13 million in initial funding for the Affordable Solar incentives is expected to support between 2,500 and 4,500 new residential projects for low- to moderate-income households. Eligibility requirements for the increased incentives include household income verification and completion of an electricity energy-efficiency assessment at the home. If the assessment identifies a need for more efficient lighting or hot water heating, those updates will be implemented prior to the solar installation to decrease electricity consumption. R