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Funding Resources

Funding Resources
WV Alternative Energy Standard
Type of Incentive Environmental Regulations
Eligible States WV
Eligible Technology Backpressure Turbine, Boiler, Combustion Turbine, Condensing Turbine, Extracting Turbine, Fuel Cell, Microturbine, Other, Reciprocating Engine, Heat Recovery Generator, Stirling Engine
Eligible Fuel # 2 Fuel Oil, # 6 Fuel Oil, Biogas, Biomass, Coal, Hydrogen, LFG, Municipal Solid Waste, Natural Gas, Other, Tire-Derived Fuel, Waste heat Recovery
Eligible Project Size All (MW)
Number of Awards  
Size of Award West Virginia's Alternative and Renewable Energy Portfolio Standard rules require investor owned utilities with over 30,000 residential customers to increase their total renewable energy mix to 10 percent by 2015, to 15 percent by 2020, and 25 percent by January 1, 2025.

While this law contains some provisions similar to those found in renewables portfolio standards (RPSs) adopted by other states, certain other provisions in this law demonstrate that this policy approach is unique to WV. Specifically, the portfolio standard does not require a minimum contribution from renewable energy resources. It is therefore feasible that the portfolio standard could be met using only alternative resources and no renewable resources. Another distinguishing element of the standard is West Virginia's definition of alternative energy resources is much broader than comparable alternative energy definitions.

The definition of alternative energy resources includes coal technology, coal bed methane, natural gas, fuel produced by a coal gasification or liquefaction facility, synthetic gas, integrated gasification combined cycle technologies, waste coal, tire-derived fuel, pumped storage hydroelectric projects, and recycled energy. The definition of renewable energy resources includes solar electric, solar thermal energy, wind power, run of river hydropower, geothermal energy, fuel cell technology, as well as certain biomass energy and biologically derived fuel. S.B. 350 enacted in April 2010 changed "recycled energy" from classification as an "alternative energy resource" to a renewable energy resource (effective in June 2010).

To be eligible under the portfolio standard, electricity produced by alternative and renewable resources must be generated or purchased from a facility within the state of West Virginia or from within the PJM Service Territory (the regional transmission organization which serves the state). The Public Service Commission has been granted the authority to certify additional resources as either alternative or renewable, if applicable in the future. Furthermore, greenhouse gas emission reduction or offset projects as well as certain demand-side or efficiency projects may be certified and counted towards meeting the standard.
Start Date 7/1/2009
End Date

 

Minimum Efficiency(%)

 

Additional Information Compliance is based on alternative energy credits (AECs), and banking of excess credits will be allowed. A credit is equal to a megawatt-hour (MWh) of alternative or renewable electricity generation. The PSC is to establish the credit trading system and publicly available registry to track transactions. Credits will be awarded in the following way:

*One Credit for each MWh of electricity generated/purchased from an alternative energy resource facility. It should be noted that utilities may meet no more than 10 percent of the portfolio standard with credits obtained from electricity generated from natural gas.
*Two Credits for each MWh of electricity generated/purchased from a renewable energy resource facility.
*Three Credits for each MWh of electricity generated or purchased from a renewable energy resource facility located on a reclaimed surface mine within West Virginia.
*Customer-generators shall be awarded one credit for each MWh of electricity generated from an alternative energy resource facility and two credits for each MWh of electricity generated from a renewable energy resource facility.

Furthermore, the PSC is authorized to award one credit to an electric utility for each ton of carbon dioxide equivalent reduced or offset provided that the project is pre-approved and the reductions/offsets are verifiable and certified according to PSC rules (to be determined). Finally, the PSC is authorized to award one credit to an electric utility for each MWh of electricity conserved by a pre-approved energy efficiency or demand-side management project, provided that the project savings are verified and certified according to PSC rules (to be determined).

Utilities are to submit to the PSC their alternative and renewable energy portfolio standard compliance plans by January 1, 2011 for review and subsequent approval. Within a year of receiving approval from the PSC on their plan, the utilities are to submit annual reports outlining their progress towards compliance. The commission shall evaluate compliance after January 1, 2015 and impose non-compliance assessments if the utility fails to comply with the standard.
Web Site http://wvcommerce.org/energy/default.aspx Exit EPA
Additional Web Site http://www.dsireusa.org/incentives/
incentive.cfm?Incentive_Code=WV05R&currentpageid=3&EE=1&RE=1
Exit EPA
Primary Contact Jeff Herholdt
Bldg. 6, Room 553 State Capitol Complex
Charleston, WV 25305-0311
Jeff Herholdt (jherholdt@energywv.org)
(304) 558-2234

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