Section R14-2-1802. Eligible Renewable Energy Resources

A.      “Eligible Renewable Energy Resources” are applications of the following defined technologies that displace Conventional Energy Resources that would otherwise be used to provide electricity to an Affected Utility’s Arizona customers:

1.        “Biogas Electricity Generator” is a generator that pro- duces electricity from gases that are derived from plant- derived organic matter, agricultural food and feed matter, wood wastes, aquatic plants, animal wastes, vegetative wastes, or wastewater treatment facilities using anaerobic digestion or from municipal solid waste through a digester process, an oxidation process, or other gasifica- tion process.

2.        “Biomass Electricity Generator” is an electricity genera- tor that uses any raw or processed plant-derived organic matter available on a renewable basis, including: dedi- cated energy crops and trees; agricultural food and feed crops; agricultural crop wastes and residues; wood wastes and residues, including landscape waste,  right-of-way tree trimmings, or small diameter forest thinnings that are 12” in diameter or less; dead and downed forest products; aquatic plants; animal wastes; other vegetative waste materials; non-hazardous plant matter waste material that is segregated from other waste; forest-related resources, such as harvesting and mill residue, pre-commercial thin- nings, slash,  and brush; miscellaneous waste, such as waste pellets, crates, and dunnage; and recycled paper fibers that are no longer suitable for recycled paper pro- duction, but not including painted, treated, or pressurized wood, wood contaminated with plastics or metals, tires, or recyclable post-consumer waste paper.

3.        “Distributed Renewable Energy Resources” as defined in subsection (B).

4.        “Eligible Hydropower Facilities” are hydropower genera- tors that were in existence prior to 1997 and that satisfy one of the following two criteria:

a.         New Increased Capacity of Existing Hydropower Facilities: A hydropower facility that increases capacity due to improved technological or opera- tional efficiencies or operational improvements resulting from improved or modified turbine design, improved or modified wicket gate assembly design, improved hydrological flow conditions, improved generator windings, improved electrical excitation systems, increases in transformation capacity, and improved system control and operating limit modifi- cations. The electricity kWh that are eligible to meet the Annual Renewable Energy Requirements shall be limited to the new, incremental kWh output resulting from the capacity increase that is delivered to Arizona customers to meet the Annual Renewable Energy Requirement.

b.        Generation from pre-1997 hydropower facilities that is used to firm or regulate the output of other eligi- ble, intermittent renewable resources. The electricity kWh that are eligible to meet the Annual Renewable Energy Requirements shall be limited to the kWh actually generated to firm or regulate the output of eligible intermittent Renewable Energy Resources

Corporation Commission – Fixed Utilities

and that are delivered to Arizona customers to meet the Annual Renewable Energy Requirements.

5.        “Fuel Cells that Use Only Renewable Fuels” are fuel cell electricity generators that operate on renewable fuels, such as hydrogen created from water by Eligible Renew- able Energy Resources. Hydrogen created from non- Renewable Energy Resources, such as natural gas or petroleum products, is not a renewable fuel.

6.        “Geothermal Generator” is an electricity generator that uses heat from within the earth’s surface to produce elec- tricity.

7.        “Hybrid Wind and Solar Electric Generator” is a system in which a Wind Generator and a solar electric generator are combined to provide electricity.

8.        “Landfill Gas Generator” is an electricity generator that uses methane gas obtained from landfills to produce elec- tricity.

9.        “New Hydropower Generator of 10 MW or Less” is a generator, installed after January 1, 2006, that produces 10 MW or less and is either:

a.         A low-head, micro hydro run-of-the-river system that does not require any new damming of the flow of the stream; or

b.        An existing dam that adds power generation equip- ment without requiring a new dam, diversion struc- tures, or a change in water flow that will adversely impact fish, wildlife, or water quality; or

c.         Generation using canals or other irrigation systems.

10.     “Solar Electricity Resources” use sunlight to produce electricity by either photovoltaic devices or solar thermal electric resources.

11.     “Wind Generator” is a mechanical device that is driven by wind to produce electricity.

B.       “Distributed Renewable Energy Resources” are applications of the following defined technologies that are located at a cus- tomer’s premises and that displace Conventional Energy Resources that would otherwise be used to provide electricity to Arizona customers:

1.        “Biogas Electricity Generator,” “Biomass Electricity Generator,” “Geothermal Generator,” “Fuel Cells  that Use Only Renewable Fuels,” “New Hydropower Genera- tor of 10 MW or Less,” or “Solar Electricity Resources,” as each of those terms is defined in subsections (A)(1), (A)(2), (A)(5), (A)(6), (A)(9), and (A)(10).

2.        “Biomass Thermal Systems” and “Biogas Thermal Sys- tems” are systems which use fuels as defined in subsec- tions (A)(1) and (A)(2) to produce thermal energy and that comply with Environmental Protection Agency Cer- tification Programs or are permitted by state, county, or local air quality authorities. For purposes of this defini- tion “Biomass Thermal Systems” and “Biogas Thermal Systems” do not include biomass and wood stoves, fur- naces, and fireplaces.

3.        “Commercial Solar Pool Heaters” are devices that use solar energy to heat commercial or municipal swimming pools.

4.        “Geothermal Space Heating and Process Heating Sys- tems” are systems that use heat from within the earth’s surface for space heating or for process heating.

5.        “Renewable Combined Heat and Power System” is a Dis- tributed Generation system, fueled by an Eligible Renew- able Energy Resource, that produces both electricity and useful renewable process heat. Both the electricity and renewable process heat may be used to meet the Distrib- uted Renewable Energy Requirement.

6.        “Solar Daylighting” is the non-residential application of a device specifically designed to capture and redirect the visible portion of the solar beam, while controlling the infrared portion, for use in illuminating interior building spaces in lieu of artificial lighting.

7.        “Solar Heating, Ventilation, and Air Conditioning” (“HVAC”) is the combination of Solar Space Cooling and Solar Space Heating as part of one system.

8.        “Solar Industrial Process Heating and Cooling” is the use of solar thermal energy for industrial or commercial man- ufacturing or processing applications.

9.        “Solar Space Cooling” is a technology that uses solar thermal energy  absent the  generation  of electricity to drive a refrigeration machine that provides for space cooling in a building.

10.     “Solar Space Heating” is a method whereby a mechanical system is used to collect solar energy to provide space heating for buildings.

11.     “Solar Water Heater” is a device that uses solar energy rather than electricity or fossil fuel to heat water for resi- dential, commercial, or industrial purposes.

12.     “Wind Generator of 1 MW or Less” is a mechanical device, with an output of 1 MW or less, that is driven by wind to produce electricity.

C.      Except as provided in subsection (A)(4), Eligible Renewable Energy Resources shall not include facilities installed before January 1, 1997.

D.      The Commission may adopt pilot programs in which addi- tional technologies are established as Eligible Renewable Energy Resources. Any such additional technologies shall be Renewable Energy Resources that produce electricity, replace electricity generated by Conventional Energy Resources, or replace the use of fossil fuels with Renewable Energy Resources. Energy conservation products, energy management products, energy efficiency products, or products that use non- renewable fuels shall not be eligible for these pilot programs.

Historical Note

New Section made by final rulemaking at 13 A.A.R.

2389, effective August 14, 2007 (Supp. 07-2).