&EPA
Roadmap for Incorporating Energy
Efficiency/Renewable Energy
Policies and Programs into State and Tribal
Implementation Plans
Appendix A: Glossary
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EPA-456/D-12-001b
July 2012
Roadmap for Incorporating Energy Efficiency/Renewable Energy
Policies and Programs into State and Tribal Implementation Plans
Appendix A: Glossary
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 Carolina
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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. This document also reflects
comments received from a number of stakeholders, including state and local air quality
agencies.
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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
(S02) Allowance Trading Program, one
allowance is the authorization to emit 1 ton
of S02. Allowances are used for compliance
and 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
ElA's National Energy Modeling System.
Baseline Projections: Baseline projections,
including energy supply and demand and
related emissions, are intended to describe
future year conditions and typically 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 policy 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
protecting 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 Clean 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 kilowatt but can also refer to
natural gas, usually as British thermal
unit/hour (Btu/hr), kiloBtu/hr, or
therms/day.
Discount Rate: A measure of the time value
of money.
Electric Generating Unit: This is an entity
that supplies electricity to the electricity
system relying on a variety of fuels.
Electricity Dispatch Models: Electricity
dispatch 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 are
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helpful in assessing which existing plants
are displaced. These models are also used
in short-term planning and regulatory
support.
Emissions & Generation Resource
Integrated Database: The Emissions &
Generation Resource Integrated Database is
a comprehensive inventory of
environmental attributes of electric power
plants, providing air emissions data for the
electric power sector. The U.S.
Environmental Protection Agency maintains
the database.1
Energy Efficiency: Energy efficiency is
achieving the same or better level of service
or performance with lower energy
consumption. Examples include high-
efficiency appliances; efficient lighting;
high-efficiency heating, ventilating and air
conditioning systems or control
modifications; efficient building design;
advanced electric motor drives; combined
heat and power; and heat recovery
systems.
Energy Efficiency Policy: 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 and/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, federal funds, proceeds from
pollution auctions such as the Regional
Greenhouse 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 existing fossil fuel-fired electric
generating units and that improve air
quality in a nonattainment area can be
accounted for in State 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 sector) 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 Public Utilities
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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 Tribal
Implementation Plans.
Energy Efficiency Project or Measure:
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 energy
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 Efficiency Portfolio
Standards) 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 Model: 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,
Integrated 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
(SIP) 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 federally
enforceable 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 Attainment Year Baseline: A
specific year in the future for which a state,
tribal or local agency must show attainment
of the National Ambient Air 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 adopted and
implemented. A baseline forecast of future
emissions is made when an area prepares a
State orTribal Implementation Plan
(SIP/TIP). Future year emission projections
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provide a basis for considering control
strategies for (SIPs/TIPs), conducting
attainment analyses, and tracking progress
towards meeting air quality standards.
Heating, Ventilating, and Air Conditioning:
Heating, ventilating, and air conditioning
refers to technology to provide for indoor
environmental comfort.
Independent System Operator:
Independent system operators (ISOs) serve
as grid operators, coordinating the power
grid to ensure reliable delivery. ISOs also
match generation to load instantaneously
to keep electricity supply and demand
balanced and administer forward capacity
markets where utilities can use energy
efficiency as a resource to meet demand.
Integrated 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. It 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-Hour: 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
British thermal units.
Load Shapes: 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 Emission Rates: 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. Measurement and
verification can be a subset of program
impact evaluation.
Megawatt: A megawatt is one 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
National Ambient Air Quality Standards
(NAAQS) for pollutants considered harmful
to public health and the environment. The
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 visibility, damage to animals,
crops, vegetation, and buildings.
Nitrogen Oxides: Nitrogen oxides 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 electric
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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 ensures
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 Demand: The maximum level of
metered demand during a specified period,
such as a billing month or a peak demand
period.
Portfolio: A portfolio is either (1) a
collection of similar programs addressing
the same market, technology, or
mechanisms or (2) the set of all programs
conducted by one organization.
Power 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 utility
regulators.
Renewable Energy: Renewable energy
resources are naturally replenishing 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 State 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 fossil
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fuel-fired electric generating units and that
improve air quality in a nonattainment area
can be accounted for in State or Tribal
Implementation Plans.
Renewable Portfolio Standard: A
renewable portfolio standards are 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 energy to end-use
customers, including but not limited to
electric utility distribution companies
supplying basic service or any successor
service to end-use customers.
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.
State 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
state 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 "treatment
as state" eligibility may develop its own air
quality control plan, called a Tribal
Implementation Plan, 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 tribal and federal law and may
be enforced by the tribe, EPA and the
public.
Voluntary Energy Efficiency/Renewable
Energy Programs: These are energy
efficiency/renewable energy 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.
Emerging/Voluntary Measures Policy: 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 energy
efficiency/renewable energy programs to
attain or maintain the National Ambient Air
Quality Standards and meet Clean 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 watt is equal to 1/746 horse power.
Weight-of-Evidence: The augmentation of
a State Implementation Plan/Tribal
Implementation Plan modeled attainment
test with supplemental analyses, which may
yield a conclusion different from that
indicated by the modeled attainment test
results alone.
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United States Office of Air Quality Planning and Standards Publication No. EPA-456/D-12-001b
Environmental Protection Outreach and Information Division July 2012
Agency Research Triangle Park, NC
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