Palmetto Clean Energy - Setting the PaCE for South Carolina's Future

The following types of renewable energy are eligible, once delivered into the electricity grid:

1. Solar Electric;
2. Wind;
3. Geothermal;
4. Hydropower;

   Hydropower from new generation capacity on a non-impoundment or on an existing impoundment, meeting one or more of the following conditions:

   1. meets licensing standards as defined by the Federal Energy Regulatory Commission (FERC) and the appropriate state and local governing agencies and is certified by the Low-Impact Hydropower Institute
      
   2. is a run-of-the-river facility with a capacity not-to-exceed 5MW
      
   3. consists of a turbine in a pipeline or in an irrigation canal. Any new hydro generating facility that involves a new impoundment will require special approval.

   Ocean-based resources will be considered as technologies mature and as practical application reaches near term.

5. Solid, liquid, and gaseous forms of biomass from the following fuels:
   1. All wood waste;
      • Includes “black liquor” from pulp and paper processing, mill residues, industrial waste wood, and waste wood from woodworking or wood processing, so long as the wood is not chemically treated or coated.
      • Excludes wood that has been coated with paints, plastics, or formica; and wood that has been treated for preservation with materials containing halogens, chlorine or halide compounds like CCA-treated materials, or arsenic. (CCA = chromated copper arsenate) Qualified wood fuels may contain de minimis quantities (less than 1% of total wood fuel) of the above excluded contaminates.
   2. All agricultural crops or waste;
   3. All animal and other organic waste (including cooking oils);
   4. All energy crops;
   5. Landfill gas and wastewater methane; and
   6. Municipal Solid Waste (MSW)

      Municipal Solid Waste (MSW) is eligible with Board approval if it is first converted to a clean burning fuel that is then used to generate electricity. The solid waste conversion facility for converting the municipal solid waste to a clean burning fuel must meet the following criteria:

      1. The facility uses a non-combustion thermal process to convert the municipal solid waste to a clean burning fuel.
      2. The technology is designed to produce no discharges of air contaminants or emissions, including greenhouse gases.
      3. The technology produces no discharges to surface or groundwaters.
      4. The technology produces no hazardous wastes.
      5. To the maximum extent feasible, the technology removes all recyclable materials, including plastics, and marketable green waste compostable materials from the solid waste stream prior to the conversion process and the owner or operator of the facility certifies that those materials will be recycled or composted.
      6. The facility complies with all applicable laws, regulations, and ordinances.

      Third-party verification that an MSW facility has met these criteria is required.

6. Biodiesel (B100) that is used to generate electricity is eligible. Biodiesel blended with petroleum diesel is permitted if all of the following conditions are met:
   1. The biodiesel is separately measured (and verified) from the petroleum diesel; and
   2. A process is in place to verify that the biodiesel was converted to electricity.
7. Fuel cells and hydrogen-powered generators are eligible only if powered by hydrogen derived from any of the above eligible renewable resources or hydrogen that is a byproduct of an industrial process.

Co-firing of eligible forms of biomass with non-renewables is permitted if at least one of the following conditions is met:

1. The biomass is separately metered and there are contracts in place to verify that the biomass portion was converted to electricity; or
2. The facility uses a generation tracking system that is fully capable of accurately measuring and reporting the differentiated (biomass-fired and non-biomass-fired) electrical output from the facility. The methodology presented to PaCE must demonstrate that the Btu value of the electrical output from the facility is attributed to the eligible biomass fuel. Some of the criteria that the Board will consider in making a decision are:
   1. Whether the facility was modified to accept biomass fuel;
   2. Whether there is an independent entity involved in verifying or determining the appropriate measurement; and
   3. Whether there is a way to determine and ensure the net electricity increment being sold as "renewable" can be attributed to eligible biomass fuel.

Only the amount of electricity generated from the eligible biomass may count towards the PaCE criteria.

Facilities generating new renewable energy are eligible if they began operation or were repowered January 1, 1997 or later.