All Exceptions require additional documentation; see the ZC Exception Documentation and Summary Table in Documentation Requirements for more information.
ENERGY USE EXCEPTIONS
EC-001 Industrial Peak Load
Industrial applications are allowed to use propane gas water heaters as a short-term peak load backup to the regular domestic and process hot water system. The team must provide a narrative describing the hot water requirements and alternatives explored in an effort to avoid this Exception, as well as demonstrate through sub-metering that the gas is used for only the short-term processing peak load (i.e., winery “crush,” which is approximately six weeks long) and not throughout the year.
EC-002 Specialized Combustion
In certain circumstances, use of this Exception requires ILFI approval in advance; see details below.
Combustion-based equipment used for process-specific applications that require high heat, such as Bunsen burners in a laboratory setting, are allowed. For any specialized applications that do not require high heat, electric-based alternatives must be explored and documented prior to requesting an Exception. Each Exception request must be submitted as a Request for Ruling for preapproval.
EC-003 Combustion in Commercial Kitchens
In commercial kitchens where electricity-based equipment will not adequately serve the cooking needs of the facility, and where efforts have been made to find alternative solutions and minimize combustion impacts, teams may use combustion-based equipment.
The project team must explain the proposed use, why electricity-based equipment is not functionally equivalent, and describe efforts both to source non-combustion and to minimize the impacts of combustion. In addition, demonstration of renewable energy offset through on- or off-site renewable production must include utility bills and BTU/ kWh calculations (using 1 kBTU = 0.293 kWh).
Teams using wood-fired cooking must also document air quality protection through the use of a CE and/or UL certified soot and smoke filter to minimize air quality impacts. Demonstration of renewable energy offset must include documentation of all wood used in the oven during the performance period, and calculations showing that the equivalent kBtu was offset by renewable energy production by the project over the course of that same time period.
EC-004 Ornamental Fireplace in Transects L1, L2, and L3
In the limited instances where development is allowed in Transects L1 and L2, it is acceptable to install a single indoor wood-burning stove or fireplace because of a strong cultural legacy of the “hearth in the wilderness.” The allowance for a single wood-burning stove or fireplace in Transects L1 and L2 assumes that it is merely ornamental and ceremonial and are not used for primary, day-to-day heating purposes. Therefore, it may be excluded from the project’s energy calculations. This Exception also allows one outdoor wood-burning fireplace in addition to the indoor wood-burning stove or fireplace. The use of a propane igniter is not allowed.
Fireplaces are also allowed in projects in Transect L3 under the following conditions:
The fireplace:
- Cannot be a primary heat source; and
- Must be closed and meet current Nordic Swan emission and efficiency standards (or prove equivalency) as developed by the Nordic Council of Ministers (see below).
In addition, the project must be in a region that is in compliance with the EPA 2013 PM2.5 primary annual fine particle standard of 12 μg/m3.
Nordic Swan Standards
Emissions criteria:
- Organic gaseous carbon (OGC): 100 mg/m3
- Carbon monoxide (CO): 1250 mg/m3
- Particles: 2.0 g/kg (for up to four loads); 5 g/kg (for each load)
- Efficiency criteria: 76% for manually operated stoves or inset fireplaces for intermittent use.
The project team must provide a narrative describing the functionality of the fireplace with regard to these requirements.
If fireplaces with Nordic Swan labels cannot be sourced from within a project’s country, the project team may prove equivalency by showing that the fireplace:
- Falls below the U.S. EPA’s particulate matter emissions level of 2.5g/hr for cord wood or 2.0g/hr for all other wood; and
- Meets the Nordic Swan’s efficiency requirement of at least 76%.
The project team must also advocate to the regional air quality regulatory body to require fireplace manufacturers to perform CO and OGC testing.
The project team must provide documentation showing the installation of carbon monoxide detector(s) within the building.
EC-005 Pre-existing Infrastructure
Projects can take advantage of pre-existing photovoltaic (PV) arrays in certain limited circumstances. The renewable energy system cannot predate the project unless the PV installation was intentionally sized with sufficient overcapacity in place to meet the project’s energy demand. For example, a PV array might be installed ahead of building construction or as part of a campus system to take advantage of certain incentives or efficiencies of scale. This is allowed as long as the team can demonstrate that the PV system was planned, designed, and installed with the intention to serve additional buildings in the future. The project team must provide:
- Photographs of the existing system;
- Metering data or other records documenting the amount of energy both produced by the existing PV array and used by the campus prior to the addition of the project; and
- A narrative signed by the owner confirming their approach and that the system was planned, designed, and installed specifically to service additional buildings.
Pre-Existing Campus Infrastructure
If the project will be served by a pre-existing array that serves an area larger than the project alone, the percentage of energy production that can be attributed to the project must be based on the following:
- The total energy use of the campus over the 12-month performance period, including the project;
- The production of the existing array during the same 12-month period; and
- The total energy use of the project
For example, if during that 12-month period the array provides 22% of the total energy for a larger campus, then the project may claim that 22% of its operating energy was supplied by the array.
To show compliance, the remaining energy required by the project will need to be supplied by new renewable sources dedicated solely to the project unless there is an intention to add renewables that will supply 100% of the entire campus’s energy. The new renewables could be located within the Project Area, elsewhere on the campus, or off site as part of a procurement associated with the project.
Existing Building Projects
If there is an existing PV array serving the building, that energy production may continue to be utilized for the project. The existing PV array must have been planned, designed, and installed with the intention to serve additional buildings in the future, and it may not be attributed to another building or entity via ownership or REC purchasing. In addition, no other current uses of the existing PV can be supplanted by the renovation project.
EC-006 Periodic Cultural Festivals
Periodic cultural festivals are allowed to use gas water heaters as a backup to the regular kitchen hot water. The team must provide a narrative describing the hot water requirements and alternatives explored in an effort to avoid this Exception, as well as demonstrate through sub-metering that the gas is only used during festivals and not during regular occupancy.
EC-007 Government REC Sales
Project renewable energy certificates (RECs), or other similar production incentives, may be sold as part of a governmentally established or mandated program for achieving larger public policy objectives such as carbon reduction. In these cases, the RECs must be sold to a governmentally specified REC recipient, such as a utility, and the REC purchase contract must specify that the RECs will be held (not resold) by the governmentally established recipient for a minimum of 15 years in order to prevent double-counting of the energy and carbon benefits. Project teams must provide the REC contract and highlight the renewable attribute language of that contract.
EC-008 Arbitrage of Project-Generated RECs
Project-generated RECs and/or emissions-avoidance claims from on-site or off-site systems can be sold or transferred to a third party for their energy or emissions claims if the following conditions are met:
- The project procures, then retires or maintains possession for a minimum of 15 years, new RECs equal to the renewable energy capacity of the RECs being sold or transferred; and
- All newly procured RECs must:
- Be sourced from a comparable 100% non-combustion based renewable energy source, such as wind or solar.
- Be sourced from within the same regional grid, as defined by the electric power markets by the U.S. Federal Energy Regulatory Commission (or comparable international authority).
- Be exclusively attributed to the project.
- Be Green-e Certified (or international equivalent).
EC-011 District Energy System
When a combustion-based DES is permitted and used, the project team must meter the energy derived from the system and include that energy in the Energy Production and Demand Table and show that the proportionate share of energy produced by the system is compensated for by the project’s installed or procured renewable energy. For projects that contribute thermal resources to a district system, the project must meter the amount of off-site thermal benefit and calculate the proportionate reduction in electrical usage from the contributing project system. Waste heat capture for the project from a DES is only allowed if the heat is not generated from combustion.
EC-022 Zero/Net Positive Energy Performance for Utility Constrained Projects
Projects that are grid-connected but prohibited by the utility from exporting energy to the grid may demonstrate the ability to be zero energy (or net positive, per the standard being pursued) through calculations showing excess energy that could have been provided to the grid during the performance period in their energy balance. The project must draw energy from the grid only when their battery has been depleted and be unable to cover loads with renewables. Calculated energy surpluses must be identified as such in the energy tracking table and must be based on actual meteorological conditions and actual loads.
The project team must provide documentation showing:
- A record of correspondence with the utility that highlights the inability to export energy to the grid;
- Surplus energy calculations, including loads and meteorological conditions; and
- Advocacy to the utility provider to allow for energy to be exported to the grid.
