The Policy Server Encryption Key is used to encrypt the Shared Secret. It is stored in the Policy Store in the Trusted Host Object. Here is an example of a Trusted Host Object from XPSExplorer:
------------------------- Object Meta Data ------------------------
XID: CA.SM::TrustedHost@24-cec7a36f-f619-4000-a78e-263701eab312
Actual Class: CA.SM::TrustedHost
Base Class: CA.SM::TrustedHost
In Cache: yes 4
Created: 2015-04-24 08:56:57 GMT
Last Updated: 2015-04-24 08:56:57 GMT
By: os:NT AUTHORITY/SYSTEM (via Internal)
---------------- Attributes from CA.SM::TrustedHost ---------------
Desc = "Automatically generated TrustedHost object"
IpAddr
Name = "u124537-agent"
PrevSecret
RolloverEnabled = false
Secret = <***>
SecretGenTime = 0
SecretUsedTime = 0
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