# Roadmap for Incorporating Energy Efficiency/Renewable Energy Policies and Programs into State and Tribal Implementation Plans

Appendix A: GlossaryA

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Roadmap for Incorporating Energy Efficiency/Renewable Energy Policies and Programs into State and Tribal Implementation Plans

Appendix A: G lossary

By: U.S. Environmental Protection Agency Office of Air Quality Planning and Standards Outreach and Information Division Research Triangle Park, North Carolina

U.S. Environmental Protection Agency Office of Air Quality Planning and Standards Outreach and Information Division Research Triangle Park, North CarolinaA

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### ACKNOWLEDGMENTS We would like to acknowledge substantial contributions from members of an inter

- office EPA team that included the Office of Atmospheric Programs, the Office of Policy Analysis and Review
, the Office of General Counsel and Regions 1 and 6. Th i s document also reflects

comments received from a number of stakeholders, including state a n d l o c a l air quality agencies.A

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Allowance: An allowance is an authorization to emit a specific amount of a pollutant under a cap and trade program. For example, under the U.S. Sulfur Dioxide ( SO 2 ) Allowance Trading Program, one allowance is the authorization to emit 1 ton of SO 2 . Allowances are used for compliance

an d can be traded among sources participating in the cap and trade program.

Annual Energy Outlook : Prepared by the U.S. Department of Energy ’s Energy Information Administration (EIA)

, the Annual Energy Outlook presents long

- term projections of energy supply, demand, and prices through 2035, based on results from EIA’s National Energy Modeling System.

Baseline P rojections: Baseline p rojections, including energy supply and demand and related emissions, are intended to describe future year conditions and ty pically assume continuation of current trends and no changes in laws and regulations. Baseline projections are sometimes referred to as “business

- as

- usual” projections. A baseline projection can be used for comparison with one or more alternative p olicy scenarios to assess the impacts of various policies.

Combined Heat and Power: Also known as cogeneration, combined heat and power ( CHP ) is an efficient, clean, and reliable approach to generating power and thermal energy from a single fuel source. Since less fuel is burned to produce each unit of energy output, CHP reduces air pollution and greenhouse gas emissions. As a result, the emission benefits from CHP systems can be recognized for State Implementation Plan/Tribal Implementation Plan credit. Typical CHP configurations include gas turbines or engines with heat recovery units or steam boilers with a steam turbine. Clean Air Act: The Clean Air Act (CAA) is the law that defines the U.S

. Environmental Protection Agency’s responsibilities for
pro tecting and improving the nation's air quality and the stratospheric ozone layer. The last major change in the law occurred when Congress enacted the CAA Amendments of 1990. Legislation passed since then has made several minor changes.

Criteria Air Pollutant: The C lean Air Act requires the U.S. Environmental Protection Agency to set National Ambient Air Quality Standards for six common air pollutants. These common air pollutants (also known as "criteria pollutants") are found all over the country

. They are particle pollution (often referred to as particulate matter), ground

- level ozone, carbon monoxide, sulfur oxides, nitrogen oxides, and lead.

Demand: The time rate of energy flow. Demand usually refers to electric power measured in k ilowatt but c an also refer to natural gas, usually as British thermal unit /h ou r (Btu/hr) , k ilo Btu/hr, or therms/day.

Discou nt R ate: A measure of the time value of money.

Electric G enerating U nit : This is an entity that supplies electricity to the electricity system relying on a variety of fuels.

Electricity Dispatch M odels: Electricity d ispatch models (also commonly referred to as “production cost” models) simulate the dynamic operation of the electric system, generally on a least

- cost system dispatch. In general, these models optimize the dispatch of the system based on the variable costs of each resource and any operational constraints that have been entered into the model. These models areA

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helpful in assessing which existing plants are displaced. Th ese models are also used in short

- term planning and regula tory support.

Emissions & Generation Reso urce Integrated Database : The E missions & Generation Resource Integrated Database is

a comprehensive inventory of environmental attributes of electric powe r plants , providing air emissions data for the electric power sector. The U

. S

. Environmental Protection Agency maintains the database. 1

Energy E fficiency: Energy efficiency is achiev ing the same or better level of service

or performance with lower energy consumption. Examples include high

efficiency appliances ; efficient lighting ; high

- efficiency heating, ventilat ing and air conditioning systems or control modifications ; efficient building design ; advanc ed electric motor drives ; combined heat and power ; and heat recovery systems.

Energy E fficiency P olicy : Energy efficiency ( EE ) policy means an enacted law and/or regulation by a state, locality

, or public utility commission order which requires applicable entities to adopt energy efficient technologies a nd/or practices, or to undertake activities to further such adoption in the marketplace. It can include: (1) policies that establish minimum efficiency requirements for new homes and buildings (building energy codes) or appliances (appliance standards); (2) policies that establish requirements on utilities (or other program administrators) to deliver a specified amount of energy

1 For more information, go to: www.epa.gov/egrid

. savings by developing EE programs to increase market adoption of EE technologies and practices ( EE resource standards); and (3) policies that commit to specified funding levels dedicated to implementing EE programs (e.g., EE rebates

or combined heat and power capital cost incentives from public benefits funds). State and local governments both have authority over EE policies. EE policies are generally enforced over a multi

- year period or until changed or updated by revised legislation or regulation (e.g., adopting a revised building energy code). These programs can be funded through ratepayer surcharges , f ederal fu nds

, proceeds from pollution auctions such as the Regional
G reenhouse Gas Initiative

, or any combination of the above.

Electric

- sector EE and renewable energy policies, programs and projects that will result in quantifiable reductions in emissions at exi sting fossil fuel

- fired electric generating units and that improve air quality in a nonattainment area can be accounted for in S tate and Tribal Implementation Plans

. Energy Efficiency Program: Energy efficiency ( EE ) program means a program designed to increase adoption of energy efficient technologies and practices in particular end

- use sectors (or specific market segments within a se ctor) through education and outreach, financial incentives, and/or technical assistance. An individual EE program can be run by a utility, state or local government, and/or third parties. In most cases, EE program administrators (i.e., utilities, state agencies, or 3rd parties) develop and implement EE programs to meet adopted EE policy objectives. State Publ ic UtilitiesA

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Commissions oversee and approve the EE programs funded with rate

- payer resources. EE programs typically operate over a one to three year period.

Electric

- sector EE and renewable energy policies, programs and projects that will result in quantifiable reductions in emissions at existing fossil fuel

- fired electric generating units and that improve air quality in a nonattainment area can be accounted for in State and Tr ibal Implementation Plans

. Energy E fficiency P roject or M easure: Installation of equipment, installation of subsystems or systems, or modification of equipment, subsystems, systems, or operations on the customer side of the meter, in order to improve ene rgy efficiency ( EE ) . These projects or measures can be taken in conjunction with or independent of an EE policy or program.

Energy Efficiency Resource Standard : An Energy Efficiency Resource Standard (also known as Energy E fficiency P ortfolio
S tandards) consists of electric and gas savings targets for utilities, often with flexibility to achieve them through a market

- based trading system or a buyout

option to purchase credits at a default price.

Energy M odel: This refers to simulation models that utilize computer modeling software to analyze the electric power system Energy models are capable of simulating electric system dispatch, forecasting future capacity and technology changes, and/or representing behavior of system

- wide energy markets. Examples of energy models include: Energy 2020, Integra ted Planning Model , MARKAL, National Energy Modeling System, Strategist by Ventyx.

Evaluation , Measurement and Verification : The performance of studies and activities aimed at determining the effects of a program; any of a wide range of assessment activities associated with understanding or documenting program performance, assessing program or program

- related markets and market operations; any of a wide range of evaluative efforts including assessing policy or program

- induced changes in energy efficiency markets, levels of demand or energy savings, and program

cost

- effectiveness.

Federal Enforceability: This refers to what
occurs in the State Implementation Plan ( S IP ) planning process when the U.S. Environmental Protection Agency ( EPA ) approves a SIP control strategy submitted to it for review and the SIP becomes federally enforceable

. A federal ly enforceab le SIP provides EPA with authority to ensure the SIP is implemented. Once energy efficiency / renewable energy policies and programs become federally enforceable

, EPA has the authority under the Clean Air Act ( CAA ) to apply CAA

mandated penalties against the noncompliant party

.

Future A ttainment Y ear B aseline: A specific year in the future for which a s tate,
t ribal or local agency must show attainment of the N ational Ambient A ir Quality Standard . The baseline forecast of emissions in a future attainment year refers

to the emissions that will result if no future policies or programs are adop ted and implemented. A baseline forecast of future emissions is made when an area prepares a State or Tribal Implementation Plan ( SIP/T IP )

. Future year emission projectionsA

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provide a basis for considering control strategies for ( SIPs /TIPs) , conducting
at tainment analyses, and tracking progress towards meeting air quality standards.

Heating, Ventilating, and Air Conditioning: Heating, v entilating, and a ir c onditioning refers to technology to provide for indoor environmental comfort.

Independent System Operator: Independent system operators ( ISOs ) s erve as grid operators, coordin ating the power grid to ensure reliable delivery . ISOs also

m atch generation to load instantaneously to keep electricity supply and demand balanced and a dminister forward capacity markets where utilities can use energy efficiency as a resource to meet demand

.

I ntegrated Planning Model: The EPA uses the Integrated Planning Model ( IPM ) to analyze the impact of environmental policies on the electric power sector in the 48 contiguous states and the District of Columbia. This model simultaneously models electric power, fuel, and environmental markets associated with electric production. I t is a capacity expansion and system dispatch model. Dispatch is based on seasonal, segmented load duration curves, as defined by the

user. IPM can be used to model the impacts of clean energy resources on the electric sector in the short and long term.

Kilowatt

- H our: A kilowatt

- hour (KWh) is a unit of work or energy, equivalent to 1 kilowatt (1,000 watts) of power expended for 1 hour. One kWh is equivalent to 3,412
B ritish thermal units

.
Load S hapes: Representations such as graphs, tables, and databases that describe energy consumption rates as a function of another variable such as time or outdoor air temperature.

Marginal E mission R ates : The emissions associated with the marginal generating unit in each hour of the day.

Measurement and verification : Data collection, monitoring, and analysis associated with the calculation of gross energy and demand savings from individual sites or projects. M easurement and verification can be a subset of progr am impact evaluation.

Megawatt: A megawatt is o ne million watts of electricity.

Megawatt

- hour : A megawatt

- hour is one thousand kilowatt

- hours or 1 million watt

hours.

National Ambient Air Quality Standards : The Clean Air Act ( CAA ) , which was last amended in 1990, requires the U.S. Environmental Protection Agency to set N ational A mbient A ir Q uality S tandards (NAAQS) for pollutants considered harmful to public health and the environment. Th e CAA established two types of NAAQS

. Primary standards set limits to protect public health, including the health of "sensitive" populations such as asthmatics, children, and the elderly. Secondary standards set limits to protect public welfare, including protection against decreased visibili ty, damage to animals, crops, vegetation, and buildings.

Nitrogen Oxides: Nitrogen oxide s can refer to a binary compound of oxygen and nitrogen, or a mixture of such compounds.

North American Electric Reliability Corporation: The North American Electric Reliability Corporation (NERC) is the electricA

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reliability organization certified by the Federal Energy Regulatory Commission to establish and enforce reliability standards for the bulk

- power system. NERC ensure s the reliability of the North American bulk power system.

“On the books” Energy Efficiency/ Renewable Energy Policies: Energy efficiency/renewable energy policies that have been adopted by a legislative or regulatory body.

“On the way” Energy Efficiency / Renewable Energy Policies : Energy efficiency/renewable energy policies that are planned for adoption by a legislative or regulatory body prior to the submittal of the State or Tribal Implementation Plans in question to the U.S. Environmental Protection Agency

.
Peak D emand: The maximum level of metered demand during a specified period, such as a billing month or a peak demand period.

Portfolio: A portfolio is e ither ( 1 ) a collection of similar programs addressing the same market, technology, or mechani sms or ( 2 ) the set of all programs conducted by one organization.

Po wer Pool: A power pool is an association of two or more interconnected electric systems that agree to coordinate operations and planning for improved reliability and efficiencies.

Program: A group of projects, with similar characteristics and installed in similar applications.

Public Utilities Commission or Public Service Commission : A public utilities commission or public service commission is a governing body that regulates the rates and services of a public utility. In some cases, government bodies with the title "Public Service Commission" may be civil service oversight bodies, rather than utilit y regulators.

Renewable Energy: Renewable e nergy resources are naturally replenis hing but flow

- limited. They are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. Renewable energy resources include biomass, hydro, geothermal, solar, wind, ocean thermal, wave action, and tidal action.

Renewable Energy Policy: Regulations, statutes, or state public utility commission orders that require parties to acquire renewable energy or to commit to funding levels for programs aimed at acquiring renewable energy

.
Electric

- sector energy efficiency and renewable energy policies, programs and projects that will result in quantifiable reductions in emissions at existing fossil fuel

- fired electric generating units and that improve air quality in a nonattainment area can be accounted for in St ate or Tribal Implementation Plans

. Renewable Energy Program: Renewable energy program means a program designed to increase the production and use of renewable energy sources through resource development and procurement, education and outreach, financial incentives, and/or technical assistance.

Electric

- sector energy efficiency and renewable energy policies, programs and projects that will result in quantifiable reductions in emissions at existing fossilA

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fuel

- fired electric generating units and that
im prove air quality in a nonattainment area can be accounted for in S tate or Tribal Implementation Plans

.
Renewable Portfolio Standard : A renewable portfolio standards a re a requirement on retail electric suppliers to supply a minimum percentage or amount of their retail load with eligible sources of renewable energy (e .g., solar, wind, biomass and geothermal)

. Retail Electricity Supplier : A person or entity that sells electrical energ y to e nd

- use

c ustomers, including but not limited to electric utility distribution companies supplying basic service or any successor service to e nd

- use c ustomers.

State Implementation Plans: A State Implementation Plan ( SIP ) is a plan developed by a state detailing how that state will comply with the requirements of the federal Clean Air Act, administered by the U.S. Environmental Protection Agency. The SIP consists of narrative, rules, technical documentation, and agreements that an individual state will use to meet the National Ambient Air Quality Standards.

S tate Implementation Plan/Tribal Implementation Plan Credit : Credit for State and Tribal Implementation Plans means emission reductions, achieved by using technologies or strategies, used by a

s tate or tribe for the purpose of meeting emission reduction requirements in its reasonable further progress, attainment or maintenance (control) strategy.

Tribal Implementation Plans: Although not required to do so, a tribe with “ t reatment

as s tate ” eligibility may develop its own air quality control plan, called a T ribal Implementation P lan , for approval by the U.S. Environmental Protection Agency (EPA)

. A TIP enacted by a tribal government and approved by the EPA is legally binding under both trib al and federal law and may be enforced by the tribe, EPA and the public.

Voluntary Energy Efficiency/Renewable Energy Programs: These are e nergy

e fficiency/ r enewable e nergy programs are not directly enforceable against a source or party administering the program

. Examples could include municipal government energy conservation plans or public awareness campaigns.

E merging /Voluntary M easures P olicy: In September 2004, the U.S. Environmental Protection Agency issued guidance entitled:

“ Incorporating Emerging and Voluntary Measures in a State Implementation Plan (SIP).” The guidance provides a policy for areas to try new types of pollutant reduction strategies such as e nergy efficiency/renewable energy programs to attain or maintain the N ational Ambient Air Quality Standards and meet C lean Air Act requirements.

Watt: The watt is a standard unit of electrical power equivalent to one ampere flowing across a potential difference of one volt. A w att is equal to 1/746 horse power.

Weight

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- E vidence: The augment ation of
a S tate Implementation Plan/Tribal Implementation Plan modeled attainment test with supplemental analyses , which may yield a conclusion differ ent from that indicated by the modeled attainment test results alone.9 United States Environmental Protection Agency Office of Air Quality Planning and Standards Outreach and Information Division Research Triangle Park, NC Publication No. EPA

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