Accounting
for Federal Tax Incentives and Other Transfers in Benefit-Cost Analysis of DERs
Presented by Tim Woolfe, Synapse Energy Economics
Date/Time: August
13, 2024, from 1-3 PM ET
Prices:
Members: $195 or 2 group points
Non-Members: $299
CEUs/PDHs: 0.2 / 2
Course
Description:
This training course will describe how
“transfers” – i.e., when an impact on one party is exactly offset by an inverse
impact on another party – can be identified and accounted for in benefit-cost
analysis (BCA) for distributed energy resources (DERs). The guidance builds on
the National Standard Practice Manual for Benefit-Cost Analysis of
Distributed Energy Resources (NSPM) and expands upon some of the
guidance provided therein.
Tax incentives for installing or
otherwise implementing energy technologies are one example of an impact that
might be considered a transfer. With the recent significant increases in
federal tax incentives for installing clean DERs, it is critical that they be
properly characterized and accounted for in BCAs. Other examples of transfers
that will be addressed are treatment of utility performance incentives, market
price effects and host customer incentives.
The course will present key questions to consider in determining
whether an impact is a transfer or not and will explain how the determination
depends upon the scope of the BCA test being applied, i.e., whether it is the
Utility Cost Test (UCT), the Total Resource Cost Test (TRC), the Societal Cost
Test (SCT), or a Jurisdiction-Specific Test (JST).
At the conclusion of this course, attendees will:
• Describe what constitutes a transfer in the context of Benefit-Cost Analysis for Distributed Energy Resources.
• Identify and classify impacts as transfers or non-transfers in various BCA scenarios for DERs.
• Evaluate the role of transfers in different BCA tests (Utility Cost Test, Total Resource Cost Test, Societal Cost Test, and Jurisdiction-Specific Test) and explain how the scope of the test affects the characterization of transfers.
*Attendees must
earn an 70% or higher on the final course test in order to earn 0.2 CEUs.
