3rd Annual CHP Policy Conference 2002

Wednesday, MAY 8, 2003

USCHPA ANNUAL POLICY DAY CONFERENCE

Opening Remarks

John W. Jimison, Executive Director and General Counsel, USCHPA
Art Smith, Senior Vice President, NiSource Inc. & Chairman, USCHPA

Interconnection and Tariff Issues

This panel will attempt to advance the debate over interconnecting CHP and other distributed generation sources, in light of contention over State versus FERC regulatory jurisdiction, over standardized versus custom interconnection standards for small units, and over the implications for system security and the role of utilities. In particular, it will posit new approaches for dealing with legitimate utility cost allocation and tariff issues as CHP sponsors seek to obtain not only interconnection but also appropriate cost-based stand-by and back-up power services.

John W. Jimison, Executive Director, USCHPA, Presiding
Speakers: Gary Nakarado, Former Colorado Utility Commissioner, National Renewable Energy Laboratory
Louis Harris, Manager, Retail Restructuring Policy, Edison Electric Institute
Alison Silverstein, Assistant to the Chairman, Federal Energy Regulatory Commission

Coffee Break - Sponsored by PB Power, Inc.

Incentives and Financing for CHP Projects

Current tax policies have been identified as one of the hurdles to expanded implementation of CHP systems. Current depreciation rates do not fairly reflect the economic lives of modern equipment. To offset this and other market imperfections, USCHPA has advocated favorable tax treatment. In response, investment tax credits have been proposed as part of all the House, Senate and Administration energy legislation packages. In addition, several states are beginning to offer incentives for CHP systems, often as part of their public benefits programs. Congress is also expected to begin a review of current depreciation schedules later this year. This panel will review the status of federal and state incentives, and prospects for fixing federal depreciation problems.

R. Neal Elliott, Program Director, Industry Program, ACEEE, Presiding
Speakers: Elizabeth Brown, Research Assistant, Industry Program, ACEEE
William J. Garnett, III, Senior Vice President, PFG Energy Capital (Note: Graphics are slow to download)

Luncheon - Keynote Speaker: William P. Parks, Jr. Current Associate Deputy Assistant Secretary for Power Technologies, and recently selected as the Director of the new Office of Distributed Energy, Electricity Infrastructure and Reliability in the Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy.

Environmental Issues

Recent environmental protection activities at the Federal and State levels could have substantial impacts on CHP. This includes proposals for major changes to the federal Clean Air Act, actions by States to regulate emissions from small distributed energy facilities (including the draft model rule prepared by the Regulatory Assistance Project), proposed plans to curb emissions of greenhouse gases, and voluntary programs designed to encourage the growth of CHP (including EPA’s CHP Partnership). This panel of experts representing State, Federal, private sector and environmental group points of view, will help us understand what these recent events may mean for CHP.

Bruce M. Diamond, Director, Environment & Agency Relations, NiSource Corporation, Presiding
Speakers: John L. Pemberton, Chief of Staff, Office of Air & Radiation, U.S. EPA
Kenneth Colburn, Executive Director, NESCAUM
David Doniger, Policy Director, NRDC Climate Center, Natural Resources Defense Council
John Kelly, Director, Distributed Energy, Gas Technology Institute

Coffee Break - Sponsored by NiSource

Technology/Business Update

Given the numerous issues discussed at the Conference, and the challenges and barriers still faced by CHP, let’s not forget that 50 GW of CHP installations are operational. The members of this panel have addressed the challenges and cleared a path for CHP. They are prepared to discuss their experiences regarding CHP, including business drivers, technology selection, overcoming obstacles, and the economic benefits realized. They will also discuss new and anticipated developments in technology and business that will affect CHP development.

Thomas Carbone, President, Wartsila North American, Inc., Presiding Speakers: Al Hildreth, Manager, Business Development, General Motors
Lyle Wachtel, Director of Facilities, University of Illinois
Thomas White, Senior Vice President, Duke Solutions

The USCHPA 3rd Annual CHP Policy Conference

Fulfilling the Promise of Combined Heat and Power

Tuesday, May 7, 2003

Wednesday, MAY 8, 2003

Congressional Reception

Thursday May 9, 2003

Additional RESOURCES

2002 Policy Conference Focus



The USCHPA 3rd Annual CHP Policy Conference Fulfilling the Promise of Combined Heat and Power Georgetown University Conference Center, May 7-9, 2002, Washington, DC The 3rd Annual CHP Policy Conference was held May 7-9, 2002 in Washington DC. The main conference on CHP Policy was held May 8th. Click on a speaker's name below to view his/her presentation (where available). (Provided in pdf format.) Tuesday, May 7, 2003 USCHPA MEMBERSHIP MEETING Wednesday, MAY 8, 2003 USCHPA ANNUAL POLICY DAY CONFERENCE Opening Remarks John W. Jimison, Executive Director and General Counsel, USCHPA Art Smith, Senior Vice President, NiSource Inc. & Chairman, USCHPA Interconnection and Tariff Issues This panel will attempt to advance the debate over interconnecting CHP and other distributed generation sources, in light of contention over State versus FERC regulatory jurisdiction, over standardized versus custom interconnection standards for small units, and over the implications for system security and the role of utilities. In particular, it will posit new approaches for dealing with legitimate utility cost allocation and tariff issues as CHP sponsors seek to obtain not only interconnection but also appropriate cost-based stand-by and back-up power services. John W. Jimison, Executive Director, USCHPA, Presiding Speakers: Gary Nakarado, Former Colorado Utility Commissioner, National Renewable Energy Laboratory Louis Harris, Manager, Retail Restructuring Policy, Edison Electric Institute Alison Silverstein, Assistant to the Chairman, Federal Energy Regulatory Commission Coffee Break - Sponsored by PB Power, Inc. Incentives and Financing for CHP Projects Current tax policies have been identified as one of the hurdles to expanded implementation of CHP systems. Current depreciation rates do not fairly reflect the economic lives of modern equipment. To offset this and other market imperfections, USCHPA has advocated favorable tax treatment. In response, investment tax credits have been proposed as part of all the House, Senate and Administration energy legislation packages. In addition, several states are beginning to offer incentives for CHP systems, often as part of their public benefits programs. Congress is also expected to begin a review of current depreciation schedules later this year. This panel will review the status of federal and state incentives, and prospects for fixing federal depreciation problems. R. Neal Elliott, Program Director, Industry Program, ACEEE, Presiding Speakers: Elizabeth Brown, Research Assistant, Industry Program, ACEEE William J. Garnett, III, Senior Vice President, PFG Energy Capital (Note: Graphics are slow to download) Luncheon - Keynote Speaker: William P. Parks, Jr. Current Associate Deputy Assistant Secretary for Power Technologies, and recently selected as the Director of the new Office of Distributed Energy, Electricity Infrastructure and Reliability in the Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy. Environmental Issues Recent environmental protection activities at the Federal and State levels could have substantial impacts on CHP. This includes proposals for major changes to the federal Clean Air Act, actions by States to regulate emissions from small distributed energy facilities (including the draft model rule prepared by the Regulatory Assistance Project), proposed plans to curb emissions of greenhouse gases, and voluntary programs designed to encourage the growth of CHP (including EPA’s CHP Partnership). This panel of experts representing State, Federal, private sector and environmental group points of view, will help us understand what these recent events may mean for CHP. Bruce M. Diamond, Director, Environment & Agency Relations, NiSource Corporation, Presiding Speakers: John L. Pemberton, Chief of Staff, Office of Air & Radiation, U.S. EPA Kenneth Colburn, Executive Director, NESCAUM David Doniger, Policy Director, NRDC Climate Center, Natural Resources Defense Council John Kelly, Director, Distributed Energy, Gas Technology Institute Coffee Break - Sponsored by NiSource Technology/Business Update Given the numerous issues discussed at the Conference, and the challenges and barriers still faced by CHP, let’s not forget that 50 GW of CHP installations are operational. The members of this panel have addressed the challenges and cleared a path for CHP. They are prepared to discuss their experiences regarding CHP, including business drivers, technology selection, overcoming obstacles, and the economic benefits realized. They will also discuss new and anticipated developments in technology and business that will affect CHP development. Thomas Carbone, President, Wartsila North American, Inc., Presiding Speakers: Al Hildreth, Manager, Business Development, General Motors Lyle Wachtel, Director of Facilities, University of Illinois Thomas White, Senior Vice President, Duke Solutions Congressional Reception Environment and Public Works Committee Room, Room SD 406, Dirksen Senate Office Building Sponsored by: Trigen Energy Corporation and Wartsila North America, Inc. Special Guest: The Honorable Susan Collins, Senator from Maine. Thursday May 9, 2003 Special Post-Conference USCHPA Activity: Educate your Legislators Visit key Hill offices together with other USCHPA members. Welcome and overview: Suzanne Watson, Northeast-Midwest Institute.			Additional RESOURCES Materials from the Annual NATIONAL POLICY and ROADMAP Conferences: CHP Policy Conference 2003 CHP Policy Conference 2002 CHP Policy Conference 2001 CHP Roadmap Workshop 2003 CHP Roadmap Workshop 2002 CHP Roadmap Workshop 2001 2002 Policy Conference Focus Recognition continues to build that encouraging growth in the use of CHP represents sound national energy policy and is good for the environment. This was most dramatically affirmed in the May 17, 2001 Report of the President’s National Energy Policy Development Group, which contained numerous statements and recommendations advocating increased use of CHP. Many Democrats, industrial groups and environmental groups also share the view that growth in the use of CHP would be beneficial. Yet despite this widespread support, much work remains to be done to facilitate meaningful CHP contribution to our energy future. The challenge is to translate this support into concrete assistance. Competing priorities clamor for attention and there are interests that resist CHP market penetration. For example, efforts to provide tax relief for CHP development can clash with concerns over the federal (or State) budget, and proposals to ease interconnection standards for smaller CHP projects run into opposition from some utilities. Similarly, concern among some environmental groups and state regulators about the negative environmental impact of existing diesel generators have lead to regulatory proposals that might inhibit new CHP development. A great deal of federal and state legislative and regulatory activity was underway that could have profound implications for CHP, including proposals in Congress to create a new tax incentive for development of CHP systems, the FERC rulemaking on interconnection, proposals for recognizing the role that energy efficiency can play under the Clean Air Act, and State activity to provide for small distributed energy resources to play a greater role in State energy and environmental programs. This is an ideal time for those in the CHP community to come together, learn about the latest developments and discuss how we can best move forward. The panel discussions that were put together allowed attendees to learn the latest about what’s going on, hear stimulating discussions among experts, and ask questions. The congressional reception was an opportunity to hear from members of Congress and key staff and to network with peers.