[Code of Federal Regulations]
[Title 40, Volume 14]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR73.81]

[Page 165-166]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 73--SULFUR DIOXIDE ALLOWANCE SYSTEM--Table of Contents
 
       Subpart F--Energy Conservation and Renewable Energy Reserve
 
Sec. 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:
    (1) Is specified in appendix A(1) of this subpart; or
    (2) In the case of a device or material that is not included in 
appendix A(1) of this subpart,
    (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 Sec. 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
    (iii) Is reported by the applicant in its application to the 
Reserve.
    (b) Non-qualified energy conservation measures. The following energy 
conservation measures shall not qualify for Allowance Reserve 
allocations:
    (1) Demand-side measures that were operational before January 1, 
1992;
    (2) Supply-side measures;
    (3) Conservation programs that are exclusively informational or 
educational in nature;
    (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 
Sec. 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:
    (1) Is specified in appendix A(3) of this subpart; or
    (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

[[Page 166]]

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
    (iii) Is reported by the applicant in its application to the 
Reserve.
    (d) Non-qualified renewable energy generation. The following 
renewable energy generation shall not qualify for Allowance Reserve 
allocations:
    (1) Renewable energy generation that was operational before January 
1, 1992;
    (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.

[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]