---
kind: "section"
citation: "40 C.F.R. § 73.81"
title: "40"
number: "73.81"
heading: "Qualified conservation measures and renewable energy generation."
url: "https://uscodex.org/cfr/40/73.81"
---

# §73.81. Qualified conservation measures and renewable energy generation.

- (a) **Qualified energy conservation measures.** A qualified energy conservation measure is a demand-side measure not operational until the period of applicability, implemented in the residence or facility of a customer to whom the utility sells electricity, that:
  - (1) Is specified in appendix A(1) of this subpart; or
  - (2) In the case of a device or material that is not included in appendix A(1) of this subpart,
    - (i) Is a cost-effective demand-side measure consistent with an applicable least-cost plan or least-cost planning process that increases the efficiency of the customer's use of electricity (as measured in accordance with [§ 73.82(c)](/cfr/40/73.82.md?p=c)) without increasing the use by the customer of any fuel other than qualified renewable energy, industrial waste heat, or, pursuant to [paragraph (b)(5)](#b-5) of this section, industrial waste gases;
    - (ii) Is implemented pursuant to a conservation program approved by the utility regulatory authority, which certifies that it meets the requirements of [paragraph (a)(2)(i)](#a-2-i) of this section and is not excluded by [paragraph (b)](#b) of this section; and
    - (iii) **Is reported by the applicant in its application to the Reserve.**
- (b) **Non-qualified energy conservation measures.** The following energy conservation measures shall not qualify for Allowance Reserve allocations:
  - (1) Demand-side measures that were operational before January 1, 1992;
  - (2) Supply-side measures;
  - (3) Conservation programs that are exclusively informational or educational in nature;
  - (4) Load management measures that lead to economic reduction of electric energy demand during a utility's peak generating periods, unless kilowatt hour savings can be verified by the utility pursuant to [§ 73.82(c)](/cfr/40/73.82.md?p=c); or
  - (5) Utilization of industrial waste gases, unless the applicant has certified that there is no net increase in sulfur dioxide emissions from such utilization.
- (c) **Qualified renewable energy generation.** Qualified renewable energy generation is electrical energy generation, not operational until the period of applicability, that:
  - (1) Is specified in appendix A(3) of this subpart; or
  - (2) **In the case of renewable energy generation that is not included in appendix A(3) of this subpart is#—**
    - (i) Consistent with a least cost plan or a least cost planning process and derived from biomass (i.e., combustible energy-producing materials from biological sources which include wood, plant residues, biological wastes, landfill gas, energy crops, and eligible components of municipal solid waste), solar, geothermal, or wind resources;
    - (ii) Implemented pursuant to approval by the utility regulatory authority, which certifies that it meets the requirements of paragraphs [(c)(2)(i)](#c-2-i) and [(c)(2)(ii)](#c-2-ii) of this section and is not excluded by [paragraph (d)](#d) of this section; and
    - (iii) **Is reported by the applicant in its application to the Reserve.**
- (d) **Non-qualified renewable energy generation.** The following renewable energy generation shall not qualify for Allowance Reserve allocations:
  - (1) Renewable energy generation that was operational before January 1, 1992;
  - (2) Measures that reduce electricity demand for a utility's customers without providing electric generation directly for sale to customers; and
  - (3) Measures that appear on the list of qualified energy conservation measures in appendix A(1) of this subpart.

## Notes

### Amendments

[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]

### Source

Source: 58 FR 3695, Jan. 11, 1993, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 7601 and 7651 et seq.

### Amendments

[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]