73.81—Qualified conservation measures and renewable energy generation.
(a) Qualified energy conservation measures.
A qualified energy conservation measure is a demand-side measure not operational until the period of applicability, implemented in the residence or facility of a customer to whom the utility sells electricity, that:
(i)
Is a cost-effective demand-side measure consistent with an applicable least-cost plan or least-cost planning process that increases the efficiency of the customer's use of electricity (as measured in accordance with § 73.82(c)) without increasing the use by the customer of any fuel other than qualified renewable energy, industrial waste heat, or, pursuant to paragraph (b)(5) of this section, industrial waste gases;
(ii)
Is implemented pursuant to a conservation program approved by the utility regulatory authority, which certifies that it meets the requirements of paragraph (a)(2)(i) of this section and is not excluded by paragraph (b) of this section; and
(b) Non-qualified energy conservation measures.
The following energy conservation measures shall not qualify for Allowance Reserve allocations:
(4)
Load management measures that lead to economic reduction of electric energy demand during a utility's peak generating periods, unless kilowatt hour savings can be verified by the utility pursuant to § 73.82(c); or
(5)
Utilization of industrial waste gases, unless the applicant has certified that there is no net increase in sulfur dioxide emissions from such utilization.
(c) Qualified renewable energy generation.
Qualified renewable energy generation is electrical energy generation, not operational until the period of applicability, that:
(2)
In the case of renewable energy generation that is not included in appendix A(3) of this subpart is#:
(i)
Consistent with a least cost plan or a least cost planning process and derived from biomass (i.e., combustible energy-producing materials from biological sources which include wood, plant residues, biological wastes, landfill gas, energy crops, and eligible components of municipal solid waste), solar, geothermal, or wind resources;
(ii)
Implemented pursuant to approval by the utility regulatory authority, which certifies that it meets the requirements of paragraphs (c)(2)(i) and (c)(2)(ii) of this section and is not excluded by paragraph (d) of this section; and
(d) Non-qualified renewable energy generation.
The following renewable energy generation shall not qualify for Allowance Reserve allocations:
(2)
Measures that reduce electricity demand for a utility's customers without providing electric generation directly for sale to customers; and
(3)
Measures that appear on the list of qualified energy conservation measures in appendix A(1) of this subpart.