26 Del. Admin. Code § 3008-3.0
Current through Register Vol. 28, No. 7, January 1, 2025
Section 3008-3.0 - Administration of RPS3.1 Certifying and Decertifying Eligible Energy Resources: 3.1.1 The Commission through its Staff will certify Generation Units as Eligible Energy Resources based on the definition of Eligible Energy Resources found in subsection 1.1.3.1.2 Any Generation Unit seeking certification as an Eligible Energy Resource must submit an Application for Certification as an Eligible Energy Resource Under the Delaware Renewable Energy Portfolio Standard (Application) to the Commission. This may include Customer-Sited Generation or a Generation Unit owned or operated by a Municipal Electric Company.3.1.3 Customer-sited generation is eligible to be considered an Eligible Energy Resource provided the facility is physically located in Delaware.3.1.4 Commission Staff will review the Application and will notify the applicant of its approval as an Eligible Energy Resource or of any deficiencies in its Application within 30 days of receipt. The applicant will have the opportunity to revise its submission, if appropriate.3.1.5 If an Eligible Energy Resource, once notified by Commission Staff, fails to provide the required documentation or missing information within 60 days of the date of such notification, the Application will be dismissed and must be resubmitted.3.1.6 If Commission Staff finds the Generation Unit to be in compliance with this Regulation and other applicable law, Staff will issue a State of Delaware Certification Number.3.1.7 Upon receipt of the State of Delaware Certification Number, a Generation Unit will be deemed an Eligible Energy Resource.3.1.8 Upon designation as an Eligible Energy Resource, the Generation Unit's owner shall be entitled to one (1) REC for each mega-watt hour of energy derived from Eligible Energy Resources other than Solar Photovoltaic Energy Resources. Upon designation as an Eligible Energy Resource, the owner of a Generation Unit employing Solar Photovoltaic Energy Resources shall be entitled to one (1) SREC for each mega-watt hour of energy derived from Solar Photovoltaic Energy Resource. SRECs and RECs will be created and supplied by the PJM-EIS GATS, or its successor at law. Eligible Energy Resources are subject to applicable PJM-EIS GATS rules and shall pay applicable PJM-EIS GATS fees. 3.1.8.1 The Commission may establish or participate in another renewable energy tracking system, if the Commission finds that PJM-EIS's GATS is not applicable or not suited to meet the needs or requirements of the RPS.3.1.9 If a Generation Unit is deemed an Eligible Energy Resource and the Eligible Energy Resource's GATS account continues to be maintained in good standing, the Eligible Energy Resource may achieve a Delaware designation for RECs or SRECs recorded with PJM-EIS's GATS for the calendar year being traded in GATS at the time of the Commission Staff's approval of the Eligible Energy Resource.3.1.10 An Eligible Energy Resource will remain certified unless substantive changes are made to its operational characteristics. Substantive changes include but are not limited to changes in fuel type, fuel mix and generator type. An Eligible Energy Resource making substantive changes to its operational characteristics shall notify the Commission of such changes at least 30 days prior to the effective date of such changes. At such time, the Generation Unit shall submit a revised Application, which shall be subject to review and re-certification.3.1.11 An Eligible Energy Resource must provide updates to any changes to information submitted in the Application within 30 days of those changes becoming effective. These changes include but are not limited to changes in ownership of the generating unit, changes in ownership of the RECs or SRECs, changes in system size, or the deactivation of the unit.3.1.12 RECs or SRECs created by an Eligible Energy Resource shall remain valid for compliance, subject to subsection 3.2.9, subsection 3.3.3 and subsection 3.3.4, even if that Eligible Energy Resource is subsequently decertified for eligibility.3.1.13 An Eligible Energy Resource may be decertified for any of the following: 3.1.13.1 Failure to comply with subsections 3.1.1 through 3.1.11;3.1.13.2 A material change in circumstances that causes it to become ineligible for certification under subsection 3.1;3.1.13.3 Fraud or misrepresentation in the Application or to PJM-EIS GATS;3.1.13.4 Failure to properly update the Commission on changes to information submitted in the Application; or3.1.13.5 Good cause as determined by the Commission.3.2 Compliance with RPS 3.2.1 The Total Retail Sales of each Retail Electricity Product delivered to End-Use Customers by a CREC during any given Compliance Year shall include a minimum percentage of electrical energy sales from Eligible Energy Resources and Solar Photovoltaics as shown in Schedule 1. | SCHEDULE 1 |
| Compliance Year (beginning June 1st) | Cumulative Minimum Percentage from Solar Photovoltaics Energy Resources | Minimum Cumulative Percentage from Eligible Energy Resources |
2018 | 1.75% | 17.5% |
2019 | 2.00% | 19.0% |
2020 | 2.25% | 20.00% |
2021 | 2.50% | 21.00% |
2022 | 2.75% | 22.00% |
2023 | 3.00% | 23.00% |
2024 | 3.25% | 24.00% |
2025 | 3.50% | 25.00% |
2026 | 3.75% | 25.5% |
2027 | 4.0% | 26% |
2028 | 4.25% | 26.5% |
2029 | 4.5% | 27% |
2030 | 5.0% | 28% |
2031 | 5.8% | 30% |
2032 | 6.6% | 32% |
2033 | 7.4% | 34% |
2034 | 8.4% | 37% |
2035 | 10% | 40% |
Minimum Cumulative Percentage from Eligible Energy Resources includes the Minimum Cumulative Percentage from Solar Photovoltaics
3.2.2 A CREC's compliance with Schedule 1 shall be based on accumulating RECs and SRECs equivalent to the current Compliance Year's Cumulative Minimum Percentage of Total Retail Sales of each Retail Electricity Product sold to End-Use Customers subject to subsection 3.2.9 and, where appropriate, other Commission regulations. Each CREC shall file a report detailing its compliance with its RPS obligations within 120 days following the end of the Compliance Year.3.2.3 The CREC shall be responsible for procuring RECs, SRECs, and any other attributes needed to comply with the minimum percentage requirements set forth in 26 Del.C. § 354 and subsection 3.2.1 with respect to all energy delivered to the CREC's End-Use Customers.3.2.4 The CREC will charge all of its distribution system End-Use Customers for RPS compliance costs through a non-bypassable charge based on the weighted average cost of the RECs and SRECs supplied by the CREC.3.2.4.1 Industrial Customers whose peak demand is in excess of 1500 kilowatts and have been acknowledged by the Commission as having their load exempted from the RPS compliance obligations pursuant to 26 Del.C. § 353 (b), Section 1.0, and subsections 2.2.1 and 2.2.2, shall not be charged the RPS compliance cost permitted by subsection 3.2.3.3.2.4.2 For a particular compliance year, the total recovery of the RPS compliance costs by the CREC, shall not be an amount greater than the CREC's actual dollar for dollar costs incurred for that compliance year in complying with the State of Delaware's RPS, except that any compliance fee assessed pursuant to 26 Del.C. § 358 (d) and subsection 3.3.5 shall be recoverable only to the extent authorized by 26 Del.C. § 358 (f)(2) and subsection 4.2.3.2.5 The CREC shall place on their websites customer education pertaining to the RPS non-bypassable charge and credit required in subsections 3.2.3 and 3.2.3.1. The CREC shall also include information on the RPS non-bypassable charge and credit on its bill message or bill insert.3.2.6 A CREC may use energy output produced by a Qualified Fuel Cell Provider Project to fulfill their REC and SREC requirements as set forth in 26 Del.C. § 353 (d).3.2.7 Energy output must be tracked using PJM-EIS GATS or its successor at law or pursuant to subsection 3.1.8.1.3.2.8 The right of a CREC to use energy output produced by a Qualified Fuel Cell Provider Project to fulfill their REC and SREC requirements shall not expire until actually applied to fulfill such requirements.3.2.9 No CREC with existing contractual electric supply obligations can provide more than 1% of each Compliance Year's Total Retail Sales from Eligible Energy Resources operational before December 31, 1997. The remainder of each year's retail sales, up to the required amount as specified in subsection 3.2.1 must come from New Renewable Generation resources. In Compliance Year 2026 and for each Compliance Year thereafter, all Eligible Energy Resources used to meet the cumulative minimum percentage requirements set by the Commission rules shall be New Renewable Generation Resources.3.2.10 A CREC shall not use RECs or SRECs used to satisfy another state's renewable energy portfolio requirements for compliance with subsection 3.2.1 and Schedule 1. A CREC may sell or transfer any RECs or SRECs not required to meet this Regulation.3.2.11 Eligible Energy Resources may create and accumulate RECs or SRECs for the purposes of calculating compliance with the RPS.3.2.12 Eligible Energy Resources that do not settle though the PJM Market settlement system must document their actual output of generation, as recorded by appropriate metering, as frequently as PJM-EIS-GATS shall prescribe.3.2.13 Aggregate generation from small Eligible Energy Resources totaling 100 kilowatts or less of capacity, may be used to meet the requirements of subsection 3.2.1 and Schedule 1 provided that the generators or their agents shall document the level of generation, as recorded by appropriate metering, as frequently as PJM-EIS-GATS shall prescribe.3.2.14 A CREC or Rural Electric Cooperative shall receive 300% credit toward meeting the Minimum Cumulative Percentage from Eligible Energy Resources of subsection 3.2.1 and Schedule 1 of the RPS for energy derived from the following sources installed on or before December 31, 2014:3.2.14.1 Customer-Sited solar photovoltaic physically located in Delaware; or3.2.14.2 A fuel cell powered by Renewable Fuels for a CREC, and such a fuel cell sited in Delaware for Rural Electric Cooperatives.3.2.15 A CREC or Rural Electric Cooperative shall receive 150% credit toward meeting the RPS for wind energy installations sited in Delaware on or before December 31, 2012.3.2.16 A CREC or a Rural Electric Cooperative shall receive an additional 10% credit toward meeting the RPS for solar or wind energy installations sited in Delaware, provided that a minimum of 50% of the cost of the renewable energy equipment, inclusive of mounting components, relates to Delaware manufactured equipment.3.2.17 A CREC or a Rural Electric Cooperative shall receive an additional 10% credit toward meeting the RPS for solar or wind energy installations sited in Delaware provided that the facility is constructed and/or installed with a workforce that consists of at least 75% Delaware residents and/or the installing company employs in total a minimum of 75% workers who are Delaware residents.3.2.18 A CREC or a Rural Electric Cooperative shall receive credit toward meeting the RPS for electricity derived from the fraction of eligible landfill gas, biomass or biogas combined with other fuels (for a Rural Electric Cooperative the Eligible Energy Resource must be sited in Delaware).3.2.19 Cumulative minimum percentage requirements of Eligible Energy Resources and Solar Photovoltaic Resources shall be established by Commission rules for Compliance Year 2036 and each subsequent year. The minimum percentages established by Commission rules may not be lower than those required for Compliance Year 2035 in subsection 3.2.1 and Schedule 1. Each of the rules setting such minimum percentage must be adopted at least two years before the minimum percentage being required.3.2.20 The Renewable Energy Taskforce shall be formed for the purpose of making recommendations about the establishment of trading mechanisms and other structures to support the growth of renewable energy markets in Delaware according to 26 Del.C. § 360 (d).3.3 Verification of Compliance with the RPS 3.3.1 Beginning with the Compliance Year 2012, the CREC must submit a completed Commission-Regulated Electric Company Compliance Report with the Delaware Renewable Energy Portfolio Standard Report which includes, but is not limited to, evidence of the specified number of SRECs and RECs required for the Compliance Year according to Schedule 1.3.3.2 SRECs or RECs must have been created by PJM-EIS's GATS or its successor at law, or pursuant to subsection 3.1.8.1.3.3.3 SRECs or RECs, submitted for compliance with this Regulation may be dated no earlier than three (3) years prior to the beginning of the current Compliance Year.3.3.4 The three (3) year period referred to in subsection 3.3.3 shall be tolled during any period that a renewable energy credit or solar renewable energy credit is held by the SEU.3.3.5 In lieu of standard means of compliance with the RPS, any CREC may pay into the Fund an ACP pursuant to, and in such amounts as stated in, 26 Del.C. § 358. If alternative compliance payments representing 15% or more of the total number of RECs for eligible non-solar renewable energy resources are paid into the Fund for each of 2 consecutive compliance years, the minimum cumulative percentage from eligible energy resources specified in Schedule I of subsection 3.2.1 remains at the percentage specified for the immediately preceding year and does not increase from that percentage until a year passes during which less than 15% of the REC obligation is satisfied by alternative compliance payments. After the year in which less than 15% of the REC obligation is satisfied by alternative compliance payments, the annual increases in Schedule I of subsection 3.2.1 resume, starting from the percentage specified for the year immediately before the current compliance year. A freeze of the minimum cumulative percentage from eligible non-solar technology does not permit a freeze of the minimum cumulative percentage from eligible solar energy resources.3.3.6 In lieu of standard means of compliance with the RPS, any CREC may pay into the Fund an SACP pursuant to, and in such amounts as stated in, 26 Del.C. § 358. If solar alternative compliance payments representing 15% or more of the total number of SRECs are paid into the Fund for each of 2 consecutive compliance years, the minimum cumulative percentage from solar technology specified in Schedule I of subsection 3.2.1 remains at the percentage specified for the immediately preceding year and does not increase from that percentage until a year passes during which less than 15% of the SREC obligation is satisfied by solar alternative compliance payments. After the year in which less than 15% of the total SREC obligation is satisfied by solar alternative compliance payments, the annual increases set forth in Schedule I of subsection 3.2.1 resume, starting from the percentage specified for the year immediately before the current compliance year. A freeze of the minimum cumulative percentage from solar technology does not freeze the minimum cumulative percentage from eligible energy resources.3.3.7 The Commission Staff shall notify the CREC of any compliance deficiencies within 165 days of the close of the current Compliance Year. If the CREC is found to be deficient by the Commission Staff, the CREC shall be required to pay the appropriate ACP or SACP, according to subsection 3.3.5 and 3.3.6. All such payments shall be due within 30 days of notification by the Commission Staff. Upon receipt of payment, the CREC shall be found to be in compliance for that given year.3.3.8 All compliance payments, made by a CREC, shall be payable to the Delaware Green Energy Fund and sent to the Commission.26 Del. Admin. Code § 3008-3.0
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