State Roundup: Illinois Solar Law, North Carolina Tax Credit, and California EV Charging

Illinois Governor Pat Quinn on Tuesday signed a bill that will require utilities to obtain 0.5% of the energy they sell from solar power sources by June 1, 2012.

Previously, utilities were required to hit that level by 2015. The new law is is significantly more ambitious, setting additional targets of 1.5% by June 1, 2013; 3% by June 1, 2014; and 6% by June 1, 2015.

Commonwealth Edison and Ameren (NYSE: AEE) are the two major utilities in the state. ComEd is a unit of Chicago-based Exelon Corporation (NYSE: EXC).

A second bill that ensures the right of individual homeowners to add solar energy panels to their homes, provided they follow certain guidelines, was also signed into law.

Quinn also signed a bill guaranteeing that individual homeowners have the right to add solar energy panels to their homes, provided they follow certain guidelines.

N.C. Grants Tax Credit to Combined Heat and Power

A new law in North Carolina now makes combined heat and power(CH) systems eligible for the state’s 35% renewable energy tax credit.

CHP, which combines the production of heat and electricity, is being widely adopted in Europe, but is only beginning to gain attention in the U.S. Systems can be scaled for residential or commercial use and they can reach efficiencies of up to 80%, compared to about 35% for separate systems. They also can reduce carbon emissions by more than 50%.

North Carolina businesses that install a CHP system can now receive a tax credit from the state equal to 35% of the cost of the equipment, construction, and installation, up to $2.5 million dollars. CHP systems for non-business use are eligible for a tax credit of up to $10,500. This credit was previously available only for solar, wind and other renewable technologies.

North Carolina is the third state to offer a CHP tax credit to businesses, and the first to offer it to individuals. CHP is also eligible for a 10% federal business energy investment tax credit.

California EV-Charging Firms Will Not Be Regulated As Public Utilities

The California Public Utilities Commission (CPUC) has ruled that companies selling electric-vehicle charging services to the public will not be regulated as public utilities.

"This decision provides needed regulatory clarity to encourage the state’s entrepreneurs and investors to develop charging solutions that will satisfy consumer needs and work harmoniously with the electric grid," explains CPUC Commissioner Nancy E. Ryan.

The CPUC is in the process of evaluating alternative-fueled vehicle policies to ensure that utilities are prepared for statewide growth of plug-in hybrid electric vehicles.

Nebraska Representative Introduces Small-Scale Hydro Bill

During a recent subcommittee hearing on hydropower, U.S. Representative Adrian Smith (R-NE) introduced a bill designed to encourage the production of more hydropower from smaller sources.

The Small-Scale Hydropower Enhancement Act (H.R. 5922) would exempt any conduit-type hydropower project generating less than
one and a half megawatt from Federal Energy Regulatory Commission (FERC) jurisdiction. The bill also would
require the Bureau of Reclamation to examine its facilities for more
conduit generation opportunities using existing funding.

According to Smith, thousands of miles of irrigation canals, pipes, and ditches in the West provide an opportunity for new hydropower generation. Hydropower produced in man-made water delivery systems does not consume or disrupt water deliveries and has no environmental effect on temperature or aquatic life.

Federal policies imposing (FERC) permitting rules, however, have effectively stifled advancements and innovation in the small hydropower field.