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North Dakota

North Dakota

Incentives/Policies for Renewables & Efficiency

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Renewable and Recycled Energy Objective   

Last DSIRE Review: 08/14/2013
Program Overview:
State: North Dakota
Incentive Type: Renewables Portfolio Standard
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Hydrogen, Electricity from Waste Heat, Anaerobic Digestion
Applicable Sectors: Municipal Utility, Investor-Owned Utility, Rural Electric Cooperative
Standard:Goal: 10% by 2015
Technology Minimum:No
Credit Trading:Yes (M-RETS)
Credit Transfers Accepted From:None
Credit Transfers Accepted To:M-RETS into MIRECS, NC-RETS, NAR
(Refers to tracking system compatibility only, not RPS eligibility. Please see statutes and regulations for information on facility eligibility)
Authority 1:
Date Enacted:
Date Effective:
ND Century Code ยง 49-02-24 et seq.
3/23/2007
08/01/2007
Authority 2:
Date Effective:
ND Admin. Code 69-09-08
07/01/2006
Authority 3:
Date Enacted:
ND PSC Order, Case No. PU-07-318
06/04/2008
Summary:

In March 2007, the North Dakota enacted legislation (H.B. 1506) establishing an objective that 10% of all retail electricity sold in the state be obtained from renewable energy and recycled energy by 2015. The objective must be measured by qualifying megawatt-hours (MWh) delivered at retail, or by credits purchased and retired to offset non-qualifying retail sales. This objective is voluntary; there is no penalty or sanction for a retail provider of electricity that fails to meet the objective. Municipal utilities and electric cooperatives that receive wholesale electricity through a municipal power agency or generation and transmission cooperative may aggregate their renewable and recycled energy objective resources to meet the objective.

Eligible resources include electricity produced by solar, wind, biomass, hydropower, geothermal, hydrogen derived from another eligible resource, and recycled energy systems that generate electricity from currently unused waste heat resulting from combustion or other processes and that do not use an additional combustion process. (The term "recycled energy system" does not include waste heat captured from any system designed primarily to generate electricity unless the generation system consumes wellhead gas that would otherwise be flared, vented or wasted.) Hydropower facilities must have an in-service date of January 1, 2007, or later, or must qualify as new hydropower generation obtained from re-powering or efficiency improvements to facilities existing on August 1, 2007.*

In order to qualify for renewable electricity and recycled energy objective credits, a generating source must meet the requirements of the North Dakota Public Service Commission's (PSC) rules for tracking, recording and verifying renewable energy certificates (RECs). RECs do not need to be acquired from an in-state facility. There are special conditions regarding RECs associated with hydropower facilities. Electricity generation applied to the renewable energy and recycled energy objective, as well as certificate purchases and certificate retirements, must be independently verified through the Midwest Renewable Energy Tracking System (M-RETS).

Before using new renewable and recycled energy after August 1, 2007, to meet the objective, each retail provider or its generation supplier was required to make an economic evaluation to determine if the use of new renewable and recycled energy would be cost-effective, considering other electricity alternatives. After evaluating the renewable and recycled energy objective and economic evaluation, the retail provider or its generation supplier may use the electricity alternative that best meets its resource or customer needs.

Beginning June 30, 2009, each retail provider must report to the PSC annually on the provider's previous calendar year's energy sales. This report must include (1) information regarding qualifying electricity delivered and renewable energy and recycled energy certificates purchased and retired as a percentage of annual retail sales and (2) a brief narrative report that describes steps taken to meet the objective over time and identifies any challenges or barriers encountered in meeting the objective. Electric cooperatives may aggregate their reporting through generation and transmission cooperatives. Municipal utilities may aggregate their reporting through a municipal power agency. The PSC may require a specific format and details for reporting. The reports are available on the PSC case search web site.


* When calculating the amount of electricity necessary to meet the objective, a utility may deduct from its baseline of total retail sales the proportion of electricity obtained from hydroelectric facilities with an in-service date before January 1, 2007.


 
Contact:
  Jerry Lein
North Dakota Public Service Commission
600 East Boulevard Avenue, Department 408
Bismarck, ND 58505
Phone: (701) 328-1035
Fax: (701) 328-2410
E-Mail: jlein@nd.gov
Web Site: http://www.psc.state.nd.us
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.