State and Local
Climate and Energy Program
LOCAL GOVERNMENT CLIMATE AND ENERGY STRATEGY SERIES
Combined Heat
and Power
A Guide to Developing and Implementing
Greenhouse Gas Reduction Programs
U.S. ENVIRONMENTAL PROTECTION AGENCY
2014
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EPA's Local Government Climate and Energy
Strategy Series
The Local Government Climate and Energy Strategy Series provides a comprehensive, straightforward overview of green-
house gas (GHG) emissions reduction strategies for local governments. Topics include energy efficiency transportation,
community planning and design, solid waste and materials management, and renewable energy. City, county, territorial,
tribal, and regional government staff, and elected officials can use these guides to plan, implement, and evaluate their
climate change mitigation and energy projects.
Each guide provides an overview of project benefits, policy mechanisms, investments, key stakeholders, and other imple-
mentation considerations. Examples and case studies highlighting achievable results from programs implemented in
communities across the United States are incorporated throughout the guides.
While each guide stands on its own, the entire series contains many interrelated strategies that can be combined to create
comprehensive, cost-effective programs that generate multiple benefits. For example, efforts to improve energy efficiency
can be combined with transportation and community planning programs to reduce GHG emissions, decrease energy and
transportation costs, improve air quality and public health, and enhance quality of life.
LOCAL GOVERNMENT CLIMATE AND ENERGY STRATEGY SERIES
All documents are available at: www.epa.gov/statelocalclimate/resources/strategy-guides.html.
ENERGY EFFICIENCY
Energy Efficiency in Local Government Operations
Energy Efficiency in K-12 Schools
Energy Efficiency in Affordable Housing
Energy-Efficient Product Procurement
Combined Heat and Power
Energy Efficiency in Water and Wastewater Facilities
TRANSPORTATION
Transportation Control Measures
URBAN PLANNING AND DESIGN
Smart Growth
SOLID WASTE AND MATERIALS MANAGEMENT
Resource Conservation and Recovery
RENEWABLE ENERGY
Green Power Procurement
On-Site Renewable Energy Generation
Landfill Gas Energy
Please note: All Web addresses in this document were working as of the time of publication, but links may break over time
as sites are reorganized and content is moved.
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CONTENTS
Executive Summary _v
1. Overview __1
2. Benefits of Combined Heat and Power __1
3. Combined Heat and Power Opportunities for Local Governments __4
4. Key Participants _6
5. Foundations for Project Development 8
6. Strategies for Effective Project Implementation _9
7. Costs and Funding Opportunities 11
Costs 11
Funding Opportunities 11
8. Federal, State, and Other Program Resources 13
Federal Programs 13
State Programs ._ 14
Other Programs 14
9. Case Studies _ 15
City of Boston, Massachusetts 15
Program Initiation ._ 15
Program Features 15
Program Results ._ 16
City of Hartford, Connecticut ._ 16
Program Initiation ._ 16
Program Features ._ 16
Program Results 17
10. Additional Examples and Information Resources 18
11. References 24
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Combined Heat and
Power
EXECUTIVE SUMMARY
Developing and Implementing
Energy Efficiency Programs
Saving energy through energy efficiency improvements
can cost less than generating, transmitting, and distrib-
uting energy from power plants, and provides multiple
economic and environmental benefits. Energy savings
can reduce operating costs for local governments, free-
ing up resources for additional investments in energy
efficiency and other priorities. Energy efficiency can also
help reduce air pollution and GHG emissions, improve
energy security and independence, and create jobs.
Local governments can promote energy efficiency in
their jurisdictions by improving the efficiency of munic-
ipal facilities and operations and encouraging energy
efficiency improvements in their residential, commer-
cial, and industrial sectors. The energy efficiency guides
in this series describe the process of developing and
implementing strategies, using real-world examples, for
improving energy efficiency in local government opera-
tions (see the guides on local government operations,
energy-efficient product procurement, and water and
wastewater facilities) as well as in the community (see
the guide on affordable housing).
Energy Efficiency in Combined
Heat and Power Production
This guide describes how local governments can lead by
example and increase use of combined heat and power
(CHP) in their facilities and throughout their commu-
nities. CHP, also known as cogeneration, refers to the
simultaneous production of electricity and thermal
energy from a single fuel source. This guide includes an
overview of the benefits of CHP systems, costs, sources
of funding, and case studies.
The guide is designed to be used by staff at local energy
or environment agencies, local code enforcement
officials and city planners, city councils, and mayors or
county executives. It also provides information useful for
RELATED GUIDES IN THIS SERIES
• Energy Efficiency: Energy Efficiency in Water and
Wastewater Facilities
CHP systems are very compatible with wastewater treat-
ment facilities that use anaerobic digesters. Anaerobic
digesters produce a continuous flow of biogas that can be
used as a fuel source. In addition, anaerobic digesters have
a heat load small enough to be met by most CHP systems.
• Renewable Energy: Landfill Gas Energy
Landfill gas, which consists of approximately 50 percent
methane and 50 percent carbon dioxide, can be captured
at municipal solid waste landfills and used as a fuel
source for CHP systems.
• Energy Efficiency: Energy Efficiency in
Affordable Housing
Many local governments partner with private and
nonprofit organizations to develop multi-family afford-
able housing. Through these affiliations, local govern-
ments can encourage developers to use CHP systems in
multi-family housing units to increase energy efficiency
and reduce costs.
• Energy Efficiency: Energy Efficiency in
K-12 Schools
A number of schools around the country are using
CHP systems to reduce energy costs and improve
energy supply reliability.
• Energy Efficiency: Energy Efficiency in Local
Government Operations
The use of CHP in government buildings and opera-
tions can help increase energy efficiency and reduce
GHG emissions and criteria air pollutants by decreasing
consumption of fossil fuel-based energy.
local government partners, such as local businesses, utili-
ties, energy service companies, and non-profit organiza-
tions. Readers of the guide should come away with an
understanding of options to improve energy efficiency
using CHP, a clear idea of the steps and considerations
involved in implementing CHP systems, and an aware-
ness of expected investment and funding opportunities.
Combined Heat and Power | Local Government Climate and Energy Strategy Series
EXECUTIVE SUMMARY
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The guide includes descriptions of the benefits of CHP
(section 2); opportunities to implement CHP systems
(section 3); key stakeholders (section 4); strategies
for promoting CHP projects (section 5); strategies
for effective project implementation (section 6); costs
associated with CHP systems and opportunities to
manage these costs (section 7); federal, state, and other
programs that may be able to help local governments
with information or financial and technical assistance
(section 8); and finally two case studies of CHP
projects implemented at local government facilities
(section 9). Additional examples of successful imple-
mentation are provided throughout the guide.
Relationships to Other Guides
in the Series
Local governments can use other guides in this series
to develop robust climate and energy programs that
incorporate complementary strategies. For example,
local governments could combine use of CHP with
alternative fuel sources such as biogas generated at
wastewater facilities or landfill gas captured at solid
waste landfills to help achieve additional economic,
environmental, and social benefits associated with
reduced use of fossil fuels. In addition, because CHP
systems require less fuel to produce the same output
as conventional separate heat and power systems, use
of CHP in government and community facilities helps
increase energy efficiency and energy supply reliability
while reducing costs.
See the box on page v for more information about
these complementary strategies. Additional connec-
tions to related strategies are highlighted in the guide.
EXECUTIVE SUMMARY
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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1. OVERVIEW
Combined heat and power (CHP), also known as
regeneration, refers to the simultaneous production of
electricity and thermal energy from a single fuel
source. Simultaneous production is more efficient than
producing electricity and thermal energy through two
separate power systems and requires less fuel. This
reduction in fuel use can produce a number of benefits,
including energy cost savings, reduced GHG emis-
sions, and reductions in other air emissions.
CHP SYSTEM CONFIGURATIONS
CHP systems consist of a number of individual
components—prime mover (heat engine), generator, heat
recovery, and electrical interconnection—configured into
an integrated whole. Every CHP application involves the
recovery of otherwise-wasted thermal energy to produce
useful thermal energy or electricity.
CHP systems can be configured either as a topping or a
bottoming cycle, as explained below.
In a typical topping cycle system, fuel is burned in a
prime mover such as a gas turbine or reciprocating
engine to generate electricity. Energy normally lost in
the prime mover's hot exhaust and cooling systems
is instead recovered to provide heat for industrial
processes (such as petroleum refining or food
processing); hot water (e.g., for laundry or dishwashing);
or for space heating, cooling, and dehumidification.
In a bottoming cycle system, also referred to as "waste
heat to power," fuel is burned to provide thermal input to
a furnace or other industrial process, and heat rejected
from the process is then used to produce electricity.
The graphic below demonstrates the configuration of a
typical topping cycle gas turbine CHP.
Source: US. EPA, 2011a, 2013a.
CHP systems are considered a type of distributed
generation (also referred to as distributed energy and
distributed energy resources), because they involve
non-centralized, often small-scale projects. Distributed
generation offers significant benefits, such as reduced
risk of energy supply disruption, lower transmission
and distribution losses, and reduced peak electricity
demand on the grid. CHP systems produce the same
benefits as those provided by typical distributed gener-
ation projects, but have the added benefit of increased
energy efficiency (U.S. EPA, 2008b).
This guide provides information on how local govern-
ments have planned and implemented CHP systems at
local government facilities and in their communities.
It includes an overview of CHP system benefits, costs,
sources of funding, and case studies. Additional exam-
ples and information resources are provided at the end
of this guide in Section 10, Additional Examples and
Information Resources.
2. BENEFITS OF COMBINED
HEAT AND POWER
A CHP system appropriately sized to meet a facility's
thermal energy needs achieves higher system efficien-
cies than conventional separate heat and power (SHP)
systems that obtain their power and heat from different
sources, such as central coal-fired power plants and
onsite natural gas heating systems. Fossil-fueled power
plants, for example, generally achieve a total system
efficiency of approximately 33 percent, meaning 67
percent of the energy used to generate electricity is
lost, often vented as heat. If a facility were to obtain its
electricity through the grid from a fossil-fueled power
plant and its thermal energy from an on-site boiler, the
overall efficiency would be approximately 51 percent.i
By using thermal energy that would otherwise be wast-
ed in the power generation process, CHP systems can
achieve total system efficiencies of approximately 60
to 80 percent (U.S. EPA, 2013b). The higher efficiency
of CHP systems compared with SHP systems can help
local governments and their communities to:
Reduce GHG emissions and other environmental
impacts. Because CHP systems require less fuel to
produce the same energy output as SHP systems,
CHP systems can reduce emissions of GHGs and air
pollutants, such as nitrogen oxides (NOx) and sulfur
dioxide (SO ). For example, a 5 MW CHP system with
1 This calculation assumes that the electricity and thermal energy used by the
facility require 91 units of fuel at a central power plant (33% efficiency) and
56 units in an onsite boiler (80% efficiency). Transmission and distribution
losses would further reduce overall efficiency. See http://epa.gov/chp/basic/
efficiency.html.
Combined Heat and Power | Local Government Climate and Energy Strategy Series
1. OVERVIEW
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METHODS FOR CALCULATING CHP
SYSTEM EFFICIENCY
Two efficiency metrics are used to compare CHP
systems with SHP systems:
• Total system efficiency is the more commonly cited
efficiency metric. Presented as a percentage, it refers
to the sum of the useful power output (in MWh
expressed in Btu/hr) and useful thermal outputs (in
BTU/hr) divided by the total fuel input (in BTU/hr).
• Effective electric efficiency refers to the electricity
output divided by the additional fuel the CHP system
uses over and above what would have been used by
a conventional system to meet the facility's thermal
energy load. This approach accounts for the multiple
outputs of CHP, and allows for a direct comparison
of CHP and conventional electricity production by
crediting that portion of the CHP system's fuel input
allocated to thermal output, thus measuring how
effectively the CHP system generates power once
the thermal demand of a site has been met.
Both efficiency metrics consider all the outputs of CHP
systems and reflect the benefits of CHP. Since each
metric measures a different performance characteristic,
the purpose and calculated value of each type of
efficiency metric differs. For example, the total system
efficiency is typically most appropriate for comparing
CHP system energy efficiency with the efficiency of
a site's SHP options. The effective electric efficiency
is typically used to compare the CHP system with
conventional electricity production (i.e., the grid).
In general, a CHP system's total system efficiency differs
from its effective electric efficiency by 5% to 15%.
Source: U.S. EPA, 2013c.
a natural gas turbine typically produces 20,870 metric
tons of carbon dioxide (CO2) emissions annually,
while an SHP system designed to achieve the same
output would produce 44,450 metric tons. The GHG
emissions prevented by a CHP system of this size are
equivalent to the annual GHG emissions of more than
5,400 passenger vehicles (U.S. EPA, 2013f).
The District General Services Plant in Sacra-
mento, California, the state capital, was
replaced in 2010 with a cogeneration plant
that provides chilled water for cooling, steam for
heating, and control air to 23 state-owned build-
ings in the Capitol Building district. The new plant
uses 58 percent less energy and 90 percent less
water than the plant it replaced, and its smaller
footprint allowed the building team to reclaim land
and turn it into a public garden, complete with a
landscape feature that reuses water from the plant.
The reduced water use allowed the plant to elimi-
nate its former practice of discharging water into
the Sacramento River, which was one of the major
goals of the project. The new plant is Platinum
LEED Certified. The reduced energy consumption
of the plant avoids more than 3,900 metric tons of
CO2 annually, equivalent to the annual emissions
from more than 800 cars. The plant is also
equipped with combustion air preheating and low
NOx natural gas burner assemblies, which mini-
mize combustion emissions of CO2, carbon
monoxide, NO , and ozone (Skanska, Undated).
Offset capital costs. CHP systems can offset capital
costs that would otherwise be needed to purchase and
install certain facility components, such as boiler and
chiller systems in new construction (U.S. EPA, 2013g).
Installing CHP systems with backup capability can
avoid the need for a local government to purchase a
conventional backup electricity generator. A typical
back-up diesel generator (with accompanying controls
and switchgear) can cost as much as $550 per kW
capacity (U.S. EPA, 2013d), compared with $100-$250
per kW to add backup capability to a CHP system
(ORNL, 2013).
The wastewater treatment plant, in York,
Pennsylvania, began operating a microtur-
bine CHP system in 2011. A combined total
of $4.2 million in state and federal funding
allowed the project to move forward as scheduled,
and reduced the impact of financing the improve-
ments by the York City Sewer Authority's ratepay-
ers. Sources of funding included $2 million in two
separate awards through H2O PA, $1.5 million
from the Pennsylvania Alternative and Clean
Energy program, and $500,000 from the Pennsyl-
vania Department of Environmental Protection's
GreenWorks program (BioCycle, 2012).
Support economic growth through job creation and
market development. Investing in CHP systems can
help stimulate local, state, and regional economies.
Demand for raw materials and for construction, instal-
lation, and maintenance services can create jobs and
2. BENEFITS
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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develop markets for CHP technologies (NECHP, 2006).
Facilities that reduce their energy costs can spend
those savings elsewhere, often contributing to the local
economy (Lawrence Berkeley Laboratory, 2010).
Lansing, Michigan, has experienced an
economic revival due to the local utility's
installation of the REO Town gas-fired
cogeneration plant. The installation of the plant
coincided with the renovation of the adjacent
Grand Trunk Western Railroad Depot, an historic
landmark, which now serves as the utility's new
headquarters. The new plant started operations in
2013 and serves the new headquarters. The
construction process generated thousands of jobs
and pumped an estimated $50 million in wages
into the local economy. The revitalized downtown
landscape has boosted the local economy, and is
expected to attract new enterprises (MLive, 2013;
Lansing, 2013).
Demonstrate leadership. Using CHP systems at local
government facilities can be an effective and visible
way of demonstrating environmental and fiscal respon-
sibility to the public. Installing CHP systems at facili-
ties frequently visited by the public can lead to greater
community awareness of local government leadership
and the benefits of clean energy.
The wastewater treatment plant in Sheboy-
gan, Wisconsin, is recognized as a nation-
wide leader in energy efficiency in the water
and wastewater treatment sector. The plant uses 20
percent less energy than its baseline level in 2003,
and generates 70 to 90 percent of its own energy
on site using a CHP microturbine system that runs
on biogas produced in the wastewater treatment
process. The biogas project, developed in a part-
nership between the local government and the
local utility, allows the city to reap both the finan-
cial and societal benefits of producing renewable
energy. The treatment plant receives one renewable
energy certificate for every megawatt-hour of
renewable energy the microturbines create
(ACEEE, 2011). Renewable energy certificates
represent the environmental attributes of electric-
ity generated from renewable sources, and they
EPA CHP EMISSIONS CALCULATOR
The EPA CHP Emissions Calculator can be used to
compare anticipated emissions from a CHP system
with those from an SHP system. The calculator, which
provides estimates for emissions of CO2, SO2, NOX, N2O,
and CH4, is designed for users with at least moderate
familiarities with CHP technologies.
http://www.epa.gov/chp/basic/calculator.html
can be sold directly to customers or through
brokers and marketers.2
Hedge against financial risks. The higher efficiencies
of CHP systems relative to SHP systems translate into
significant energy cost savings. Depending on total
system efficiencies, a CHP system can consume up to
one-third less energy than an SHP system (U.S. EPA,
2013b).s
EFFICIENCIES OF DIFFERENT CHP SYSTEMS
Not every CHP system operates at the same total system
efficiency. A CHP system's efficiency depends on the
technology used to generate the electricity and thermal
energy, the system design, and how much of the
thermal energy is used by the site. The most common
prime movers include:
• Steam Turbine: 80% efficiency
• Diesel Engine: 70%-80% efficiency
• Natural Gas Engine: 70%-80% efficiency
• Gas Turbine: 70%-75% efficiency
• Microturbine: 65%-75% efficiency
• Fuel Cell: 65%-80% efficiency
Sources: U.S. EPA, 2013a; 2013b.
2 For more information on how local governments can demonstrate leader-
ship by selling or purchasing renewable energy certificates and other forms
of green power, see EPA's On-site Renewable Energy Generation and Green
Power Procurement guides in the Local Government Climate and Energy
Strategy Series.
3 Based on a 5 MW natural gas-fired combustion turbine CHP system (U.S.
EPA, 2013b).
Combined Heat and Power | Local Government Climate and Energy Strategy Series
2. BENEFITS
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By installing a CHP system in 2008, the Back
River Wastewater Treatment Plant in Balti-
more, Maryland, reduced its electricity
consumption by 19.4 million kWh annually. The
system, which runs on methane gas produced in
wastewater treatment, saved the City of Baltimore
approximately $1.4 million per year in electricity
costs, equivalent to 3.5 percent of the city's entire
annual energy bill (Baltimore City DPW, 2012).
Since CHP systems require less fuel to produce the
same output as SHP systems, they can help reduce
the vulnerability of local governments to fluctuations
in energy prices. Local governments can achieve
additional protection from volatile energy prices by
siting CHP projects in close proximity to biomass (e.g.,
wood and agricultural wastes) or biogas resources.
Using renewable fuels can help the cost of operating
CHP systems remain stable even as fossil fuel prices
fluctuate. In addition, using biomass or biogas as a fuel
source provides a use for material that often would be
wasted otherwise (U.S. EPA, 2013f).
Lycoming County, Pennsylvania, partnered
with a private renewable energy company to
develop a 6.2 MW CHP system using landfill
gas. This system supplies 80 percent of the Federal
Bureau of Prisons' Allenwood Correctional
Complex's electricity and 90 percent of the power
and thermal needs of the Lycoming County land-
fill complex. The federal correctional facility gains
long-term power price stability and clean energy
to help it meet federal renewable energy require-
ments, and the county receives revenue for the
landfill gas (PPL Renewable Energy, 2012).
Increase electricity reliability. Disruptions in the
energy supply can be a serious risk for local govern-
ments, many of which own facilities where a loss of
electricity could be disastrous, such as waste water
treatment facilities, hospitals, and schools. CHP
systems can be designed to disconnect from the grid,
enabling them to operate in "island mode" if grid-
supplied electricity is lost during extreme weather or
other circumstances, and provide increased reliability
for these critical facilities. Using CHP to generate elec-
tricity on site also avoids the need to rely on non-CHP
backup generators, and can even improve the overall
reliability of the electricity grid by reducing peak load
and reducing the risk of blackouts (U.S. EPA, 2013d).
During the New York City blackout in the
summer of 2003 and Superstorm Sandy in
2012, half of city hospitals that used backup
generators alone experienced failures (U.S. EPA,
2013d). In contrast, a study conducted after Super-
storm Sandy showed that all of the CHP units in
New York City designed to operate during a grid
outage performed as expected when power was
lost during the storm (NYSERDA, 2013). Hospi-
tals, data centers, universities, district energy
systems, and wastewater treatment plants with
CHP systems were able to continue operating
during and after the storm (ORNL, 2013).
In 2011, the Sonoma County (California)
Administrative Campus installed a 1,400 kW
fuel cell CHP system capable of providing 90
percent independence from the electric grid when
needed. The CHP system is the centerpiece of the
County's Comprehensive Energy Project, which
the county expects will result in $40 to $50 million
in energy cost savings over the next 30 years. The
project will reduce and replace 13.4 million kWh
of electricity use from the electric grid, reduce the
county government's water consumption by 19
million gallons each year, and reduce GHG emis-
sions by more than 5,400 metric tons annually,
equivalent to the emissions from burning 600,000
gallons of gasoline (Sonoma County, 2011).
3. COMBINED HEAT AND
POWER OPPORTUNITIES FOR
LOCAL GOVERNMENTS
CHP systems can provide energy to be used in multiple
applications, including power for facility operations
and waste-heat recovery for facility heating, cooling,
dehumidification, and other processes (U.S. EPA,
2013a). Several types of facilities and operations can be
strong candidates for CHP systems, including:
Wastewater treatment facilities. CHP systems are very
compatible with wastewater treatment facilities using
anaerobic digesters. Anaerobic digesters produce a
continuous flow of biogas that can be used as a fuel
source. In addition, anaerobic digesters require heat,
which most CHP systems can provide. As of August
2013, CHP systems were operating at 185 wastewater
3. OPPORTUNITIES FOR LOCAL GOVT.
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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treatment facilities in the United States, providing 612
MW of electric capacity. Of these sites, 143 were fueled
by biogas generated at the facility, for a total of 352
MW (IGF, 2013). For more information on CHP in
wastewater facilities, see EPA's Energy Efficiency in
Water and Wastewater Facilities guide in the Local
Government Climate and Energy Strategy Series.
GRESHAM, OREGON - CHP AT A WASTEWATER FACILITY
The City of Gresham installed a 395 kW CHP system at its
20 million-gallon-per-day wastewater treatment plant in
2005. The system, which is fueled using byproduct gas
from the anaerobic digestion of sewage (consisting of
60% methane and 40% CO2), provides more than 50% of
the plant's electricity needs in addition to a substantial
amount of the plant's heat. Annual energy cost savings are
estimated to be approximately $200,000. For information
on opportunities for CHP at wastewater treatment
facilities, see Opportunities for Combined Heat and Power
at Wastewater Treatment Facilities: Market Analysis and
Lessons from the Field (U.S. EPA, 2011b) and EPA's Energy
Efficiency in Water and Wastewater Facilities guide in the
Local Government Climate and Energy Strategy Series.
Source: Energy Trust, 2006.
In 2009, the City of West Lafayette, Indiana,
installed a CHP system in its wastewater
treatment facility for the primary purpose of
reducing GHG emissions. EPA recognized the
project with a PISCES Award, which highlights
projects that further the goal of clean and safe
drinking water. EPA has also recognized the city as
a Green Power Partner (Purdue University, 2010).
Landfill gas energy projects. Landfill gas (LFG),
which consists of approximately 50 percent methane
and 50 percent CO2, can be captured at municipal
solid waste landfills and used as a fuel source for CHP
systems. LFG is generated in landfills continuously; it
typically has a heating value of 500 Btu per standard
cubic foot (scf), but values can range from 350 Btu per
scf to 600 Btu per scf (U.S. EPA, 2013i). The economics
of a landfill gas energy project (i.e., a project or facil-
ity capturing LFG for fuel use) improve the closer the
landfill is to the end-user.*
4 The piping distance from a landfill gas energy project to its end-user is typi-
cally less than 10 miles, although piping LFG up to 20 miles can be economi-
cally feasible, depending on gas recovery at the landfill and energy load at the
end-use equipment (U.S. DOE, Undated).
tin Los Angeles County, California, the Cala-
basas landfill operates three gas turbines that
generate up to 10 MW of power for the local
grid. The turbines, which were installed in 2010,
have helped reduced NOx and carbon monoxide to
levels significantly below the mandatory limits in
Southern California (Solar Turbines, 201 la).
In addition, LFG can be a green power source. Local
governments can sell LFG to landfill gas energy project
developers while retaining the environmental and
technological attributes associated with the green
power in the form of renewable energy certificates. For
more information on landfill gas, see EPA's Landfill
Gas Energy guide in the Local Government Climate and
Energy Strategy Series.
K-12 schools. A number of schools around the coun-
try are using CHP systems to reduce their energy costs
and improve reliability of their energy supply. Large
schools, especially those with swimming pools and
high hot water needs for cafeteria and locker room
loads, are good candidates for CHP. Many schools also
serve as emergency shelters during extreme weather
events, and the CHP system can help the school remain
operational during power outages.
Cambridge Rindge and Latin School, a
public school in Cambridge, Massachusetts,
installed a gas-fired cogeneration system in
2011 as part of a broader set of energy-saving
improvements. The system powers the Media Arts
building and provides heat and hot water to the
school in winter. In summer, the school uses the
cogeneration unit to heat the pools at the adjacent
Cambridge War Memorial Recreation Center. The
school anticipates the energy savings from the
overall energy improvement project will reduce
the its utility bills by more than $335,000 a year
(Cambridge Public Schools, Undated).
For information on how K-12 schools can improve
their energy efficiency, see EPA's Energy Efficiency in
K-12 Schools guide in the Local Government Climate
and Energy Strategy Series.
Combined Heat and Power | Local Government Climate and Energy Strategy Series
3. OPPORTUNITIES FOR LOCAL GOVT.
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Multi-family housing. Many local governments
partner with private and non-profit organizations to
develop multi-family affordable housing. Through
these affiliations, local governments can encourage
developers to use CHP systems in multi-family hous-
ing units. In some local governments, public housing
authorities have taken the initiative of installing CHP
systems in the facilities they manage.
In 2012, the Reading (Pennsylvania) Housing
Authority installed a 400 kW CHP system at
Glenside Homes, a 400 unit multi-family
residential building. The housing authority was
able to take advantage of energy efficiency and
renewable energy federal grant opportunities to
fund the project, which has an estimated annual
energy cost savings of $75,000-$100,000 (UGI
Performance Solutions, 2012).
USING CHP IN MULTI-FAMILY AFFORDABLE HOUSING
The U.S. Department of Housing and Urban
Development (HUD) has developed guidance and a
tool for using CHP in multi-family affordable housing.
The guidance materials, which include a question-
and-answer guide, a feasibility screening guide, and a
library of resources, are available at http://www.hud.
gov/offices/cpd/library/energy/index.cfm and http://
www.hud.gov/offices/cpd/energyenviron/energy/
library/#chp.
HUD has also developed a screening tool for CHP in
multi-family housing. Users enter 12 months of energy
use data, which the tool uses to calculate the potential
savings and payback period from using a CHP system
instead of obtaining heat and power separately. The tool
is available at http://www.hud.gov/offices/cpd/library/
energy/software, cfm.
District energy systems. In a district energy system,
steam, hot water, or chilled water is generated at a
central plant and then piped to many facilities through-
out the district. These systems reduce energy consump-
tion and capital costs by eliminating the need to install
chillers and boilers in individual facilities. District
energy systems can incorporate CHP systems into
their configuration, leading to greater energy efficiency
(IDEA, 2013; IDEA, 2007; IEA, 2013).
tSt. Paul, Minnesota, contracts with a private
district energy provider to obtain hot water
and cooling for many of its local government
facilities. The district energy system relies on a 25
MW CHP system to generate energy. St. Paul has
formed an agreement allowing the district energy
provider to obtain approximately 300,000 tons of
wood waste from the city's recycling center to be
used to fuel the CHP system (St. Paul, 2013).
4. KEY PARTICIPANTS
A variety of participants can play important roles in
mobilizing resources and ensuring effective implemen-
tation for CHP projects at local government facilities,
including:
Mayor or county executives. The mayor or county
executive can play a key role in increasing public
awareness of the benefits of CHP. Including CHP goals
in a mayor's or county executive's priorities can lead
to increased funding for CHP potential studies and
projects.
City and county councils. Clean energy activities,
including efforts to increase use of CHP, are often initi-
ated by city and county councils. In many local govern-
ments, city or county councils must authorize large
capital expenditures, such as purchasing CHP systems.
Securing support from city or county council members
can be important for ensuring CHP initiatives receive
the resources necessary to produce results.
The Orange County Cogeneration Plant is a
10.4 MW system serving the Santa Ana Civic
Center Campus in Santa Ana, California.
Installed in 2009 and powered by two gas turbines,
the system provides electricity, heating, and cool-
ing to buildings on the campus. Though econom-
ics were an important factor in the city's decision
to install a CHP system, city officials have cited
reliability and emissions reductions as key drivers
in their decision to switch to CHP (Combined
Cycle Journal, 2010).
Local code enforcement officials and planning
departments. In some local jurisdictions, older zoning,
building, and fire codes can present barriers to CHP
4. KEY PARTICIPANTS
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project permitting. Local governments can work with
their code enforcement officials and planning depart-
ments to update codes to accommodate CHP projects
(Virginia DEQ, 2004). Some local governments, such as
Boston, Massachusetts, and Epping, New Hampshire,
have modified zoning ordinances to provide permitting
incentives for CHP projects. Planning departments can
also be responsible for developing local energy plans
that can include CHP-specific goals and activities.
State energy and environmental departments. State
energy and environmental offices can provide local
governments with information resources and technical
assistance in planning and permitting CHP systems for
local government facilities.
In Lancaster County, Pennsylvania, the
1 ffl f county partnered with the Pennsylvania
I—I Department of Environmental Protection to
install a 3.2 MW CHP system that uses methane
produced at two local landfills (U.S. EPA, 2013h).
State public utilities commissions (PUCs). Local
governments can work with state PUCs to obtain infor-
mation on connecting CHP systems to the electricity
grid and to learn about funding opportunities avail-
able for CHP projects. Some state PUCs administer
programs that offer clean energy options for a targeted
customer base or provide financial incentives for
distributed generation projects, including CHP.
State legislation enacted in 2009 directed the
Maine Public Utilities Commission to devel-
op a program offering green power (includ-
ing CHP) as an option to residential and small
commercial customers. The PUC issued rules in
October 2010, and selected a company to manage
the statewide green power program for Maine's
transmission and distribution territories. The
program, which began operating in April 2012,
includes community-based renewable energy proj-
ects to the extent possible (Maine Public Utilities
Commission, Undated).
Local businesses. Local governments can contract
with local businesses to provide electricity or thermal
energy generated by local government CHP systems,
or to purchase the energy generated by a privately
owned CHP system. Local industries can also provide
feedstocks or fuels for CHP systems operated by local
governments.
The Gloversville-Johnstown Joint Wastewater
Treatment Facility, in Johnstown, New York,
works with several nearby cheese and yogurt
producers to collect their wastewater, which the
facility processes to generate biogas and then burns
in a CHP plant to meet its electricity and heating
needs. The arrangement provides the dairy compa-
nies with an economical disposal method for their
wastes, while bringing revenue and a significant
supply of biogas to the treatment facility. The CHP
plant avoids 1,950 metric tons of CO2 emissions
per year, equivalent to the annual GHG emissions
of more than 400 passenger vehicles (Cogeneration
and On-Site Power Production, 2011).
Utilities. Local governments can work to connect CHP
systems to the grid either through utilities they own
or by working with utilities with service territory in
their area. Connecting to the grid allows local govern-
ments to help meet electricity loads when demand
exceeds the capacity of the CHP system, and can create
opportunities for local governments to sell electric-
ity to the utility when capacity exceeds demand and
where state interconnection and net metering rules
permit (see Section 6, Strategies for Effective Project
Implementation for more information on selling excess
electricity). Information on state interconnection and
net metering rules, which determine whether and how
a utility allows customers to connect to the grid, can
be accessed through the EPA CHP Partnership website
(http://epa.gov/chp/policies/database.html). In addi-
tion, many utilities offer financial incentives for CHP
projects through energy conservation programs.s
A number of municipally owned electric
utilities, such Gainesville Regional Utilities
in Gainesville, Florida, are taking advantage
of the efficiency benefits of CHP systems to
provide customers with clean energy while reduc-
ing the utilities' operating costs (GRU, 2010).
5 The Database of State Incentives for Renewable Energy provides
information on utility incentives for CHP (http://dsireusa.org/index.
cfm?&CurrentPageID = 2&EE = l&KE = 0).
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4. KEY PARTICIPANTS
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Philadelphia Gas Works (PGW) promotes
microturbines and other types of CHP proj-
ects as a way to sell more natural gas. As a
landlocked utility serving a city whose population
and industrial base have declined, PGW has a lot
of underused infrastructure. With the price of
natural gas low, partly because of an abundance of
fuel produced from shale formations, PGW high-
lights the savings of natural gas over electricity or
steam. To induce customers to invest, PGW offers
a discounted industrial cogeneration rate for CHP
projects that recover at least 15 percent of the
waste heat (Philadelphia Inquirer, 2011).
Energy service companies (ESCOs). ESCOs provide
technical expertise on energy efficiency projects and
often offer performance contracts, which typically
include a guarantee that payments will not exceed the
savings generated. Local governments can contract
with ESCOs to purchase and install CHP systems and
to obtain operations and maintenance services. For
more information on performance contracting, see
Section 7, Costs and Funding Opportunities.
In 2009, the Southeastern Regional School
District in Easton, Massachusetts, installed a
250 kW reciprocating engine-powered CHP
system after entering into an energy service perfor-
mance contract with an ESCO. The performance
contract, which includes a broad range of energy
and water conservation projects in addition to the
CHP system, is expected to save the district
$276,000 annually (Ameresco, 2011).
Non-profit organizations. Local governments can
work with non-profit organizations to obtain technical
or financial assistance for implementing CHP-related
activities.
The International District Energy Association
promotes energy efficiency and environmental quality
through the advancement of district heating, district
cooling, and cogeneration, and actively lobbies to
secure favorable policies, legislation, and regulations
for district energy. For example, the association has
worked with brownfield business development parks
that are evaluating CHP as an option.
TEXAS CHP INITIATIVE
The Texas CHP Initiative (TXCHPI) is a non-profit
association with the objective of promoting CHP in
Texas as a reliable, economical, and environmentally
sensible solution for Texas's energy needs. TXCHPI
works in conjunction with the Texas Legislature to
develop CHP-friendly policies.
In the years since its foundation, TXCHPI has successfully
advocated several CHP-friendly policies. In 2010,
TXCHPI worked with the Texas Public Utility Commission
and Electric Utility Marketing Managers of Texas to
determine a fair incentive structure for CHP projects
that qualified under Texas's Energy Efficiency Incentive
Program. The previous year, TXCHPI provided language
the legislature used in two bills addressing emergency
preparedness in the wake of Hurricane Ike.
Source: TXCHPI, 2011.
5. FOUNDATIONS FOR
PROJECT DEVELOPMENT
Local governments use several mechanisms to promote
CHP systems in local government facilities and
throughout the community, including:
Local government planning processes. A number
of local governments have included goals for CHP in
local planning documents.
In its 2007 Climate Change Local Action
Plan, the City of Philadelphia, Pennsylvania,
recognizes the role CHP can play in reducing
GHG emissions from city buildings. The plan
includes an element for buildings intended to
promote the installation of CHP at city complexes.
Initially, the city will evaluate the financial feasibil-
ity of CHP at its prison system complex, and will
then explore approaches to encourage CHP at other
public and private facilities (Philadelphia, 2007).
Modification of zoning ordinances. Local govern-
ments can encourage using CHP systems by modifying
zoning ordinances.
5. FOUNDATIONS
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Boston, Massachusetts, adopted a Green
Building Ordinance in January 2007 that
applies to new public and private buildings
of 50,000 square feet or greater. To encourage
CHP, the city included an additional provision
awarding one credit point toward LEED certifica-
tion for buildings drawing 10 percent of their total
energy use from CHP systems (Boston, 2007a).
Incentives for private and public entities. In addition
to installing CHP systems at local government facili-
ties, local governments can work with the private sector
to encourage CHP systems in industrial manufacturing
facilities, institutions, commercial buildings, and multi-
family housing complexes. Local government activities
to encourage CHP in the private sector include:
Financial incentives. A number of local govern-
ments offer financial incentives to local businesses
and residents to install CHP systems at their facili-
ties. These incentives are included in the Combined
Heat and Power Partnership CHP Policies and
Incentives Database (see text box on page 12).
In 2003, Chicago, Illinois, organized a semi-
nar to provide local hospital administrators
with information on how CHP technologies
can be applied cost-effectively at hospitals. The city
followed this seminar with an offer to fund 50
percent (up to $5,000) of the cost of a CHP screen-
ing analysis to provide estimates of the costs,
savings, paybacks, and internal rates of return for
each participating hospital (Chicago, 2008).
Outreach. Some local governments are encourag-
ing local businesses to install CHP systems at their
facilities through educational outreach.
Kauai County, Hawaii, has offered technical
workshops through its Energy Extension
Service to advise local businesses of opportu-
nities to use CHP systems (U.S. EPA, 2008a).
6. STRATEGIES FOR
EFFECTIVE PROJECT
IMPLEMENTATION
Local governments can use a number of implementa-
tion approaches to enhance the benefits of CHP-related
activities, including:
Assess local CHP potential. An accurate initial assess-
ment of local demand, potential barriers, and the
availability of fuels can help ensure successful imple-
mentation of CHP projects. Local governments can
obtain assistance from a number of resources to help
assess CHP potential. For example, EPA has developed
a CHP Project Development Handbook local govern-
ments can use as a guide throughout the five stages of
developing a CHP project, from initial assessment to
operations and maintenance (for more information on
these stages, see the CHP Project Development text
box on page 10). Some local governments have hired
consultants to assess local potential for government,
commercial, and residential CHP systems.
San Francisco, California, commissioned a
study to evaluate CHP potential across the
city. The study identified potential demand
for CHP in the city, assessed CHP equipment
supply in the region, and identified local installa-
tion concerns, such as site selection and permitting
issues (San Francisco, 2007).
Select an approach to project development. Some
local governments have chosen to self-develop CHP
projects, hiring consultants to help plan and manage
the design and construction process. This option can
maximize financial returns to the local government,
but involves more risk and requires significant person-
nel resources. Other local governments have purchased
"turnkey" CHP systems that are planned, designed,
and constructed by private developers that provide a
single point of contact. This approach shifts some risk
to the developer but may reduce the economic return
to the facility owner. Local governments can also team
with partners (e.g., an engineering firm) to develop the
project and share the financial returns as well as the
risks (U.S. EPA, 2013J). The EPA Combined Heat and
Power Partnership developed a guidance document
that provides information on determining whether to
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6. STRATEGIES
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CHP PROJECT DEVELOPMENT
Planning, installing, and operating CHP systems requires
attention to many implementation issues. These issues
can be addressed in five steps:
• Qualification assessment. At the initial planning
stage of project, it is important to determine
whether CHP is appropriate for the site in
consideration. Many technical and economic factors
must be considered, such as electricity and thermal
energy demand and source fuel availability.
• Level 1 feasibility analysis. Goals at this stage include
identifying project goals and potential barriers, and
quantifying technical and economic opportunities.
• Level 2 feasibility analysis. Goals at this stage include
optimizing CHP system design, accounting for
capacity, thermal output, and operation needs. This
stage should also involve final CHP system pricing
and a determination of expected investment return.
• Procurement. This stage involves selecting a
qualified contractor or developer, financing the
project, and ensuring and recording compliance
with siting and permitting requirements.
• Operations and maintenance. This stage involves
maintaining a CHP system so that it continues to
provide expected energy savings and emission
reductions.
The EPA Combined Heat and Power Partnership has
developed tools and resources, including a Spark Spread
Estimator and a CHP Project Development Handbook,
to assist with each of these stages in the CHP project
development process. Local governments can find these
resources on the CHP Partnership Website: http://www.
epa.gov/chp/project-development/index.html.
Source: U.S. EPA, 2013h.
hire or partner with a developer, and how to select one
that is qualified.s
Austin Energy, the local municipal energy
utility in Austin, Texas, worked with a
private turnkey CHP developer to create a
CHP plant for the Dell Children's Medical Center
of Central Texas in 2006. The medical center saved
$8 million in capital outlay by outsourcing its
power, heating, and chilled water needs to Austin
Energy, which owns and operates the plant. The
medical center will purchase its power and chilled
6 See http://www.epa.gov/chp/documents/pguide.pdf.
water from the CHP plant at tariffed rates over a
30-year term (TAS, Undated).
Enter maintenance contracts. CHP systems involve
complex components that need to be maintained
in order to continue working as designed. Local
governments can enter maintenance contracts with
equipment manufacturers and ESCOs for regular
maintenance and operations services on CHP systems
(U.S. HUD, 2005).
Millbrae, California, incorporated provisions
into an energy performance contract with an
ESCO to have future maintenance and
potential renovations performed on a new CHP
system (Chevron, 2006; Millbrae, 2005).
Involve local planning departments. Local government
planning departments typically need to verify that CHP
projects are consistent with local land use and zoning
regulations. In some localities, special use permits might
be required for the construction of CHP systems.
The San Jose, California, Department of
Planning, Building, and Code Enforcement
developed a set of instructions for obtaining
a special use permit to construct CHP systems
(San Jose, 2008).
CONNECTING TO THE GRID
Local governments can connect to the grid to obtain
electricity to supplement power produced by a CHP
system, and to sell excess electricity to a local utility
or provider. Interconnection rules vary by utility, but
a number of states have adopted standardized rules
making interconnection more streamlined. The EPA
CHPP Procurement Guide includes information on the
steps involved in establishing interconnection (see text
box on page 12).
The Interstate Renewable Energy Council tracks
state interconnection regulation activities. A table
of these activities is available at http://www.
irecusa.org/fileadmin/user_upload/ConnectDocs/
December_2007_IC_Table.doc.
10
6. STRATEGIES
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Sell excess energy. In states where interconnection and
net metering rules permit, local governments can sell
some or all of the electricity they generate from CHP
systems. To learn about state interconnection and net
metering rules, visit dCHPP, EPA's database on CHP
policies and incentives, at http://www.epa.gov/chp/
policies/database.html.
Winnebago County, Wisconsin, earns
between $400,000 and $500,000 annually
from selling electricity generated by a 1.06
MW CHP system at the county sheriff's office to the
local electric utility. The office retains the 4,700
MBtu per hour of thermal energy for space heating
and domestic hot water (Winnebago, 2007).
7 COSTS AND FUNDING
OPPORTUNITIES
CHP systems involve a significant financial commit-
ment. Fortunately, many funding opportunities are avail-
able for purchasing and installing CHP systems. This
section provides an overview of the costs associated with
CHP systems and opportunities to manage these costs.
Costs
The actual cost of a CHP project varies depending on a
number of characteristics, including who develops the
project (i.e., the local government or a private develop-
er as part of a "turnkey" arrangement), system capacity,
availability and type of fuel, prime mover, and overall
system configuration. A typical CHP system can cost
between $1,000 and $5,000 per kW of installed capac-
ity (CEC, 2012). In addition to the cost of purchasing
and installing the system, a CHP project will incur
other associated costs in conducting preliminary
feasibility studies, obtaining permits, and operation
and maintenance costs. Preliminary feasibility studies,
for example, can range from $10,000 to $100,000 (U.S.
EPA, 20131), and operations and maintenance costs can
range from $0.005 per kWh to $0.015 per kWh (U.S.
EPA, 2013k). EPAs CHP procurement guide, which
discusses various financing methods for CHP projects,
can be found at: http://www.epa.gov/chp/documents/
pguide_financing_options.pdf.
In addition, EPAs CHP Catalog of Technologies (http://
www.epa.gov/chp/technologies.html) provides informa-
tion on cost and performance characteristics for the five
key CHP prime movers.
Funding Opportunities
Many funding opportunities are available to local govern-
ments to help finance CHP installations, including:
Performance contracting. Several local governments
have used energy performance contracts to purchase,
install, and maintain CHP systems. An energy perfor-
mance contract is an arrangement with an ESCO that
bundles together various elements of an energy-effi-
ciency investment, such as installation, maintenance,
and monitoring of energy-efficient equipment. These
contracts, which often include a performance guaran-
tee to ensure the investment's success, are typically
financed with money saved through reduced utility
costs but the systems may also be financed using tax-
exempt lease-purchasing agreements.
MILLBRAE, CALIFORNIA - ENERGY PERFORMANCE
CONTRACTING
Millbrae, California, used an energy performance
contract to install a 250 kW methane-fueled
microturbine CHP system at its wastewater treatment
facility. The ESCO also integrated a grease receiving
station into the facility to receive waste grease from
local businesses, providing the CHP system with an
additional source of fuel. The city saves $112,000 per
year in energy costs by producing heat and power on-
site, and the grease receiving fees generate $152,000
annually. These savings and income are used to pay
for the system, which was installed at no upfront cost.
This integrated system reduces the city's annual CO2
emissions by approximately 544 metric tons.
Source: Chevron, 2006.
State government programs. These programs offer
financial incentives for distributed generation projects
(including CHP) and projects using biomass/biogas
(including CHP), and CHP qualifies as renewable
energy in the renewable portfolio standards of 10 states.
The most frequent state incentives include tax credits,
rebates, and low-interest loans for CHP including
biomass/biogas projects. Some states, such as California,
Connecticut, and New Jersey, have included CHP as a
critical component of their state energy strategies.
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7. COSTS AND FUNDING
11
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TOLEDO, OHIO - COMBINING FUNDING SOURCES
In 2010, the City of Toledo began operating the Bay
View Wastewater Treatment Cogeneration Facility.
Before completing the facility, the treatment plant had
been getting electricity from a 10 MW substation, with
no backup plan in case of an extended power outage.
Since having the system offline for any length of time
could have terrible environmental consequences
and result in fines, the City of Toledo's Division of
Water Reclamation decided to install an on-site CHP
generation station to improve reliability, lower electricity
costs, and reduce emissions from city operations.
Final project costs totaled to $31 million. Funding
sources included an initial $1.5 million federal grant,
$1.75 million from the City of Toledo, and a $28 million
loan from Ohio EPA's Division of Environmental and
Financial Assistance, a program providing financing
to municipal wastewater treatment, water quality
improvement, and drinking water projects. Elected
officials in Toledo were intrigued by a critical
infrastructure investment with the potential to pay for
itself in a relatively short time frame. The availability of
state finance assistance meant that the city did not have
to advance the capital from its budget.
Sources: Shanahan and D'Addario, 2013; Solar Turbines, 2011b)
New Jersey provides grants for CHP systems
based on system size and amount of electric-
ity the system generates. The grant award
cannot exceed $3 million per project, and the
maximum grant percentage of a project's total cost
is capped at 45 percent for fuel cells and 30 percent
for all other CHP. The funds are made available
through the New Jersey Economic Development
Authority (U.S. EPA, 2013m).
In 2011, a biogas-fueled CHP system went
online at the Beaver Dam Wastewater Treat-
ment Plant in Beaver Dam, Wisconsin. The
$20 million project was funded through a $10
million low-interest Clean Water State Revolving
Fund loan from the government of Wisconsin and
a $10 million grant from the American Recovery
and Reinvestment Act. The plant uses whey waste
from a local cheese factory to produce biogas and
electricity, which is sold to a utility, as well as heat
for the buildings at the plant (Renewable Energy
From Waste, 2013).
Federal government. Local governments can obtain
financial assistance for CHP projects from the federal
government. The EPA Combined Heat and Power
Partnership maintains a database of federal and state
financial assistance opportunities for CHP projects (see
text box below). The database also provides informa-
tion on non-financial incentives, including favorable
regulatory treatment.
Utilities. Some utilities offer financial assistance to
local governments to help cover the costs of purchasing
and installing CHP systems. A number of utilities also
offer rebates for CHP systems.
The East Bay Municipal Utility District, a
publicly owned utility serving two counties
in California, received a $900,000 rebate
from an investor-owned utility through the state's
Self-Generation Program. The municipally owned
utility used the rebate to offset the $2.5 million cost
of a new 600 kW CHP system (EBMUD, 2006).
Non-profit organizations. Local governments can
often obtain financial assistance for CHP projects
through non-profit organizations promoting clean
COMBINED HEAT AND POWER PARTNERSHIP CHP
POLICIES AND INCENTIVES DATABASE
State and federal incentives and policies to encourage
CHP take a variety of forms, including:
• Financial incentives, such as grants, tax incentives,
low-interest loans, favorable partial load rates (e.g.,
standby rates), and tradable allowances; and
• Regulatory treatment that removes unintended
barriers, such as standard interconnection
requirements, net metering, output-based
regulations, and environmental regulations.
EPA's CHP Policies and Incentives Database (dCHPP) is
an online database that allows users to search for CHP
policies and incentives by state or at the federal level.
dCHPP serves the needs of two primary audiences:
• Policy makers and policy advocates can find useful
information on significant state/federal policies and
financial incentives affecting CHP.
• CHP project developers and others can easily find
information about financial incentives and state/
federal policies that influence project development.
Website: http://epa.gov/chp/policies/database.html
12
7. COSTS AND FUNDING
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energy. Most non-profit assistance for CHP takes place
through project development support, in which the
non-profit lends its expertise to evaluating CHP project
feasibility. The non-profits typically receive their fund-
ing through federal or state agencies.
In 2013, the U.S. Department of Energy
awarded a four-year, $2.2 million grant to the
Southwest Energy Efficiency Project
(SWEEP), a regional non-profit organization, to
promote energy efficiency through the use of CHP.
Based in Boulder, Colorado, SWEEP will promote
best practices for CHP project financing, manage-
ment and state policies, market analysis tools and
resources, and technical site evaluations with busi-
nesses and communities in Colorado, Arizona,
Oklahoma, New Mexico, Texas, Utah, and
Wyoming (SWEEP, 2013).
8. FEDERAL, STATE,
AND OTHER PROGRAM
RESOURCES
Local governments can obtain information on develop-
ing CHP projects and about CHP systems in general
through many federal, state, and other programs.
Federal Programs
U.S. EPA Combined Heat and Power Partnership. The
EPA Combined Heat and Power Partnership is a volun-
tary program that seeks to reduce the environmental
impact of power generation by promoting the use of
highly efficient CHP. The Partnership works with clean
energy stakeholders from the private and public sectors
to support the deployment of new CHP projects and
to promote their energy, environmental, and economic
benefits. CHP systems using at least 10 percent less fuel
than comparable separate heat and power generation
can qualify for the ENERGY STAR9 CHP Award.
Website: http://www. epa.gov/chp/
U.S. EPA State and Local Climate and Energy
Program. This program helps state, local, and tribal
governments achieve their climate change and clean
energy goals by providing technical assistance, analytical
tools, and outreach support. It includes two programs:
> The Local Climate and Energy Program helps local
and tribal governments meet multiple sustainability
goals with cost-effective climate change mitigation
and clean energy strategies. EPA provides local and
tribal governments with peer exchange training
opportunities along with planning, policy, technical,
and analytical information that support reduction of
GHG emissions.
> The State Climate and Energy Program helps states
develop policies and programs that can reduce GHG
emissions, lower energy costs, improve air quality
and public health, and help achieve economic devel-
opment goals. EPA provides states with and advises
them on proven, cost-effective best practices, peer
exchange opportunities, and analytical tools.
Website: http://www. epa.gov/statelocalclimate/
U.S. DOE Industrial Distributed Energy Program. The
DOE Industrial Distributed Energy Program focuses on
deployment of innovative CHP solutions through the
support of technology development efforts, demonstra-
tions, and technology performance validation projects
conducted through public-private collaborations. DOE
has also established several regional CHP application
centers (now referred to as CHP Technical Assistance
Partnerships) across the country. These centers can
provide information on the benefits of CHP systems and
project-specific support, including feasibility screenings
and third-party reviews of vendor proposals.
Websites:
http://wwwl. eere. energy.gov/manufacturing/distribut-
edenergy/ (Distributed Energy Program)
http://wwwl. eere. energy.gov/manufacturing/distrib-
utedenergy/chptaps.html (CHP Technical Assistance
Partnerships)
Oak Ridge National Laboratory (ORNL) Cooling,
Heat, and Power Technologies Program. ORNL works
with industry and the federal government to develop
CHP technologies. The CHP Program can provide local
governments with information resources on assessing
site feasibility, evaluating CHP system benefits and
performance, and capacity optimization.
Website: http://www. ornl.gov/sci/
engineering_science_technology/
cooling_heating_power/
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8. OTHER RESOURCES
13
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U.S. Department of Housing and Urban Devel-
opment (HUD). HUD administers a number of
programs intended to improve energy efficiency in
the nation's public housing. Through these programs,
HUD provides information on energy efficiency
measures that can be implemented in multi-family
developments, along with financial assistance for local
governments and public housing authorities. The
HUD Office of Energy and Environment, for example,
provides information on CHP systems in multi-family
housing. HUD, DOE, and EPA have recently issued
a guide on CHP, reliability, and resiliency: http://
portal.hud.gov/hudportal/HUD?src=/program_offices/
sustainable_housing_communities/chpguide.
Website: http://www. hud.gov/offices/cpd/library/
energy/index, cfm
State Programs
Some states have developed programs to promote CHP
and other distributed generation technologies. Local
governments can look to these programs for informa-
tion resources on the benefits and applicability of CHP
systems, as well as information on available financial
assistance.
The California Energy Commission has devel-
oped a distributed energy resource guide that
includes information on CHP systems,
including cost ranges, efficiency performance esti-
mates, relative strengths and weaknesses of CHP
technologies, and lists of vendors (CEC, 2012).
>\ New Jersey is seeking to improve its energy
1 ffl F resilience through the New Jersey Energy
I—I Master Plan. As a part of this plan, the New
Jersey Economic Development Authority and Board
of Public Utilities has issued funding to assist in
improving grid reliability in the state through CHP
(New Jersey Clean Energy Program, Undated).
Other Programs
Combined Heat & Power Association (CHPA). The
CHPA is a membership organization that encour-
ages increased deployment of CHP technologies. The
NYSERDA CHP PROGRAM
The New York State Energy Research and Development
Authority (NYSERDA) CHP Program provides technical
and financial assistance to energy customers for using
CHP technologies. NYSERDA helps local governments
gather data and assess energy trends to determine
CHP project feasibility. From 2000 through 2006,
NYSERDA assisted in the development of 100 projects
that will produce a combined 100 MW of power when
all projects become operational. As of December 2007,
30 projects had made their performance data available
via NYSERDA's Website http://chp.fiyserda.org/home/
index.cfm.
Source: NYSERDA, 2008.
CHPA has worked with EPA and DOE to develop a
number of resources to address existing barriers to the
development of CHP technologies. Local governments
can access many information resources through the
CHPA website, including policies encouraging CHP,
overviews of CHP basics, and several databases of CHP
projects and resources.
Website: http://chpassociation.org/
Database of State Incentives for Renewable Energy
(DSIRE). A project of the U.S. Department of Energy,
the North Carolina Solar Center, and the Interstate
Renewable Energy Council, DSIRE provides informa-
tion on federal, state, and local incentives for renew-
able energy and energy efficiency projects (including
CHP), including tax credits, loans, and grants. The
database also provides information on state and local
regulations pertaining to renewable energy purchases
and on-site renewable energy generation, includ-
ing overviews of state and local net metering rules,
renewable portfolio standards, and requirements for
renewable energy use at public facilities.
Website: http://www.dsireusa.org/
dCHPP: CHP Policies and Incentives Database. The
dCHPP database is a project of the U.S. EPA Combined
Heat and Power Partnership. The database provides
users with a comprehensive collection of CHP policies
and incentives, which can be searched for at the state
or federal level. The database also includes a function
for searching by policy/incentive type.
Website: http://epa.gov/chp/policies/database.html
14
8. OTHER RESOURCES
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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9. CASE STUDIES
The following two case studies describe CHP projects
implemented at local government facilities. Each case
study describes how the project was initiated and key
project activities, features, and benefits.
City of Boston, Massachusetts
The City of Boston adopted a Climate Action Plan in
2007, setting a goal of reducing GHG emissions 20
percent from current levels by 2020, and 80 percent by
2050 (Boston, 2007b). The city issued an update to this
plan in 2011. The update gives credit to CHP systems as
a major contributor to the reduction of GHG emissions
in municipal operations (Boston, 2011). Since 2000,
11 CHP systems have been developed in Boston, two
of which are located at public facilities. In 2013, the
American Council for an Energy-Efficient Economy
named Boston as the most energy efficient city in the
United States (ACEEE, 2013).
PROGRAM INITIATION
Boston has a number of programs to encourage CHP
development. The city's key policy driver is its climate
action plan, which recognizes reductions in GHG emis-
sions from CHP.
PROGRAM FEATURES
Boston has developed a number of CHP projects through
its climate change and energy infrastructure improve-
ment initiatives. Key activities include the following:
1 Climate Action Plan. The city's 2007 plan describes
a number of initiatives that could be used to promote
CHP development. For example, it notes the Boston
Housing Authority uses energy performance contracts
(EPCs) that include CHP installations. EPCs can make
the financing of energy efficiency projects more attrac-
tive, allowing the cost of the capital improvements to
be paid for out of the savings generated by energy and
water conservation measures.
Green Building Standards. Boston is the first city in
the United States to require a green building standard
through municipal zoning requirements. The city
requires projects larger than 50,000 square feet to meet
the U.S. Green Building Council's LEED certification
PROFILE: BOSTON, MA
Area: 48 square miles
Population: 636,000 (2012)
Structure: Boston residents elect a mayor every four
years, and the mayor can serve for multiple terms.
Members of the Boston City Council are elected every
two years. Boston's Environment Department and the
Environmental and Energy Services Cabinet coordinate
activities for promoting CHP.
Program Scope: Boston's Environment Department
and the Environmental and Energy Services Cabinet
work with local businesses and public entities to
provide technical assistance and information on CHP
technologies. The Boston Housing Authority has also
installed CHP systems under programs to promote
energy efficiency.
Program Creation Mechanism: In 2007, Boston
adopted a Climate Action Plan, and the mayor issued
an executive order requiring all existing municipal
properties to evaluate the feasibility of installing CHP
and certain other technologies. The City of Boston has
also worked on improving interconnection standards for
distributed generation, including CHP.
Program Results: Since 2000,11 CHP systems have been
installed in Boston, with a combined capacity of 2 MW.
Two sites serve public facilities (a jail and a multifamily
housing building), and nine serve private facilities.
standards. To comply with the green building direc-
tives, the Boston Housing Authority has adopted a
"whole building" and environmentally conscious
approach to its new projects. It is incorporating LEED
standards and ENERGY STAR products into its proj-
ects, some of which include CHP units. To further
encourage CHP, the city awards one credit point
toward LEED certification for buildings drawing 10
percent of their total energy use from CHP systems.
Interconnection Standards. The mayor's office joined
the Distributed Generation (DG) Collaborative (now
the DG Working Group), a forum hosted by the
Massachusetts Technology Collaborative, to develop an
interconnection tariff and to examine the role of DG
in electricity distribution system planning. In 2012,
the DG Working Group recommended changes to the
uniform interconnection standards to simplify the
process and costs for DG systems, including CHP. The
Massachusetts Department of Public Utilities is review-
ing the working group's recommendations (Massachu-
setts Distributed Generation Working Group, 2013).
Combined Heat and Power | Local Government Climate and Energy Strategy Series
9. CASE STUDIES
15
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District Heating. Boston has one of the most extensive
district heating systems in the country. The GenOn
Kendall Station CHP system, a 277 MW natural
gas-fired plant located in Cambridge, recently started
providing steam to the City of Boston's district heating
system. Boston is working on plans to expand its use
of district heating and to incorporate CHP into these
systems where possible (Boston Metro Green, 2011).
CHP in Hospitals. The Boston Green Ribbon
Commission, an organization composed of Boston
business, institutional, and civic leaders in Boston
working to develop climate change strategies, recently
collaborated on a report evaluating hospital cost
savings through the use of CHP. The report, Powering
the Future of Health Care - Financial and Operational
Resilience: A Combined Heat and Power Guide for
Massachusetts Hospital Decision Makers, provides an
overview of CHP applications, costs, and other require-
ments to help hospital executives decide whether to
invest in CHP. The report found that installing a 1 MW
CHP system at a hospital can result in a net positive
cash flow of $700,000 annually and also provides emis-
sions reduction and resilience benefits (Health Care
Without Harm, 2013).
PROGRAM RESULTS
Between 2000 and 2012, the City of Boston assisted
in installing a total of more than 2 MW of CHP at 11
facilities, including two office buildings, two multifam-
ily buildings, a brewery, a hotel, an amusement park,
a college, a jail, and two private residences. The neigh-
boring city of Cambridge also installed eight CHP
systems between 2000 and 2012. These CHP projects
are achieving meaningful energy and cost savings and
GHG reductions.
Harvard University installed 75 kW CHP system at a
hotel owned by the University to helps meet its GHG
reduction goals. The CHP system supplies 10 to 15
percent of the hotel s electricity, and the thermal output
is used for space heating, hotel laundry, and domestic
hot water. The system will avoid an estimated 175
metric tons of CO2 equivalent annually, equivalent to
the annual energy use from 24 homes (Sustainability at
Harvard, 2011).
The Mass Bay Harpoon Brewery installed a 225 kW
natural gas-fired reciprocating engine in 2012. This
CHP system achieves 90 percent efficiency, provides 70
percent of the brewery's electric power, and supplies 90
percent of its hot water needs (Harpoon Brewery, 2012).
Two private residences in Boston installed micro CHP
systems in 2009. One of these, a 1.2 kW unit, helped a
Boston homeowner save $2,000 in energy costs during
a single heating season (November through March,
2009) (Ferguson, 2009).
Website: http://www. cityofboston.gov/
environmentalandenergy/
City of Hartford, Connecticut
Hartford, Connecticut, has around 73 MW of installed
CHP capacity at 13 sites (IGF, 2013). The CHP systems
are located at public and private facilities, and include
two downtown district energy systems: the Capitol
Area System and the Hartford Steam district energy
systems. As of 2013, there were two more regional
systems under development with a CHP component:
the Hartford Steam fuel cell CHP system addition, and
the Parkville Cluster CHP microgrid project.
PROGRAM INITIATION
State policies favorable to CHP have had significant
influence on the number of CHP systems installed in
the city. As the state capital of Connecticut, Hartford
has been involved in implementing state programs
offering CHP incentives, innovative financing options,
pilot programs, and the state's comprehensive energy
strategy. This involvement, combined with the current
city charter, One City, One Plan, has created opportuni-
ties for Hartford to use CHP to promote livable and
sustainable neighborhoods. Public-private partnerships
have played an important role in many of city's CHP
projects, and some projects have received state grant
support, while others are privately owned.
PROGRAM FEATURES
Hartford has been fertile ground for CHP since the city
established its first CHP system in the 1940s. The city's
CHP use has increased steadily since the year 2000,
due in part to policies and initiatives at the state level,
including the following:
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9. CASE STUDIES
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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PROFILE: HARTFORD, CT
Area: 18.5 square miles
Population: 124,775 (2010)
Structure: Hartford residents elect a mayor to a four-
year term and elect nine members to the city council.
The city's activities for promoting CHP are coordinated
by the Hartford Environmental Health Division and Public
Works department, and also by the state Department of
Energy & Environmental Protection (DEEP).
Program Scope: Hartford's Environmental Health
Division and DEEP both work with local businesses,
organizations, medical facilities, and public entities.
DEEP has recognized the energy and environmental
benefits of CHP in its rules by streamlining the
permitting requirements for CHP systems.
Program Creation Mechanism: Hartford has a legacy of
CHP going back to the late 1940s, when it established
its first CHP system. The city has built on its legacy
led through public-private partnerships that have
capitalized on state funding and city oversight. The
systems are in place to serve both public (e.g., schools,
hospitals) and private facilities (e.g., local YMCA and
multi-family building). Since 2000, the city has seen a
growth in CHP systems. One of its projects is currently
being developed under Connecticut's new microgrid
pilot program, the Parkville Cluster.
Connecticut adopted a Climate Change Plan in
2005. The plan includes two action areas specifically
encouraging clean CHP. The Climate Change Plan also
recommends CHP be included as a third class of power
generation in the state's Renewable Portfolio Standard
(Connecticut, 2005). In response, Connecticut added
CHP as a Class III resource to the RPS, with targets
that began in 2007.
In 2005, the state established an incentive program to
address grid congestion, which occurs when actual or
scheduled flows of electricity over a line or piece of
equipment are constrained below desired levels. CHP
systems in congested areas received an added bonus
of $50/kW over the base incentive of $200-$500/kW.
Eighty-one CHP projects, for a total installed capacity
of 250 MW, received funding under this program until
its closure in 2008 (USEA, 2011).
' In 2008, Connecticut adopted Public Act No. 08-98,
An Act Concerning Global Warming Solutions, which
requires the state to reduce its GHG emissions to 10
percent below 1990 levels by 2020, and 80 percent
below 2001 levels by 2050.
The state is a participant in the Regional Greenhouse
Gas Initiative and has two CHP set-aside accounts for
eligible CHP projects (Connecticut, 2008). (Note that
in late 2013 the state proposed an amendment to elimi-
nate one of its CHP set-asides and reduce the other.)
Connecticut approved Public Act No. 12-148, An
Act Enhancing Emergency Preparedness and Response,
in June 2012, which established the nations first
microgrid pilot program to support local distributed
energy generation, including CHP for critical facilities
(Connecticut, 2012).
Connecticut established a grant program providing up
to $450 per kilowatt for CHP systems (5 MW or less)
located in the service territories of Connecticut utilities
(Energize Connecticut, 2013).
PROGRAM RESULTS
Between 2000 and 2012, the City of Hartford assisted
in installing more than 4.78 MW of CHP capacity at
10 facilities, including two downtown district energy
systems, three educational facilities, several private
businesses, a zoo, a local Veterans Administration
hospital, and a YMCA. The Hartford Steam Company
installed a 7.5 MW CHP system in 1998 at Hartford
Hospital, and is in the process of installing a 1.4 MW
fuel cell CHP system adjacent to Hartford Hospital
(IDEA, 2013). CHP systems in Hartford remained
operational during Superstorm Sandy in 2012.
Using CHP, Hartford Steam reduced its downtown
district heating system's water consumption by 41
percent between 2006 and 2009. Over the same period,
the company's downtown system reduced air pollut-
ants by 54 percent and greenhouse gas emissions by 23
percent (Hartford Business Journal, 2013). Compared
with conventional combustion-based power genera-
tion, Hartford Steam's new fuel cell power plant is
expected to avoid annual emissions of more than
57,000 pounds of nitrogen oxide, more than 128,000
pounds of sulfur dioxide, more than 3,000 pounds of
particulate matter, and more than 6,000 metric tons of
carbon dioxide—equivalent to the annual emissions
from 1,200 cars (Hartford Steam, 2013).
Some of Hartford's CHP projects currently under
development are part of a microgrid. Microgrids can
provide a centralized energy supply (with CHP, the
systems can provide both power and thermal energy
Combined Heat and Power | Local Government Climate and Energy Strategy Series
9. CASE STUDIES
17
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needs) for multiple facilities located in close proximity.
The City of Hartford's Parkville Cluster is a proposed
microgrid project with CHP that has received a state
grant of $2.06 million as part of a broader effort in
Connecticut to encourage microgrid pilot programs
(Connecticut, 2013). The proposed project will consist
of a 600 kW gas turbine CHP system and will cover a
school, senior center, and library, as well as an adjacent
supermarket and gas station (Bourgeois, 2013).
Websites: http://www. ct.gov/deep/cwp/view.
asp?a=4120&Q=508780 and http://www.hartford.gov/
10. ADDITIONAL EXAMPLES AND INFORMATION RESOURCES
Title/Description
Examples of Combined Heat and Power Opportunities for Local Governments
Website
Schools
Frankfort, Illinois. As part of additions to Lincolnway North High School in Frankfort, the school
district added a CHP system to reduce electrical demand charges and save additional money.
Electricity cost savings for the system were approximately $213,900 per year while saving 4,000
therms of energy yearly.
Hartford, Connecticut. Designed to meet LEED Silver Certification, the Annie Fisher Magnet
School in Hartford installed a CHP system among many other energy efficiency upgrades.
Swampscott, Massachusetts. Swampscott High School installed a 75 kW CHP system that
generated about 760 Massachusetts Alternative Energy Credits per year. Utility incentives brought
the system payback period to only five years.
http://www.berg-eng.com/
executive_ team/hpacaug96.pdf
http://online.qmags.com/LBD0411/
default.aspx?pg=100frmode=2
http://www.groomenergy.com/case_
study_combined_heat_power.html
Multi-Family Housing
Bronx, New York. A large CHP system was installed at the Co-Op City Central Plant in 2010 in the
Bronx, serving the largest co-op housing development in the country. The CHP system produces
savings of approximately $13 million annually.
New Bedford, Massachusetts. The New Bedford Housing Authority installed a 75 kW CHP system
at the Boa Vista Apartments, an elderly high-rise housing development. The system is expected
to save the housing authority nearly $400,000 over 10 years, an overall total energy savings of 24
percent.
Watertown, Massachusetts. As part of a large two-year comprehensive energy and water
conservation audit and improvement program, the Watertown Housing Authority installed a 60
kW CHP system for multiple building use. Collectively, the upgrades are projected to save the
housing authority 883,976 kWh of electricity annually.
http://www.combinedcyclejournal.
com/SQ-Pacesetter/CoopCityCentral.
pdf
http://www.aeg/sefiergyserwces.
com/wp-content/uploads/2012/01/
BoaVistaApartments.pdf
h ftp ://www. reu ters. com/
article/2008/10/01/idUS188401+01-
Oct-2008+PRN20081001
Wastewater Treatment Plants
Auburn, New York. Auburn installed a 1400 kW CHP system at the local wastewater treatment
plant in 2010. After the capital costs are repaid, savings from the system are expected to total
$900,000.
Dallas, Texas. A 4,200 kW CHP system was installed at the Southside Wastewater Treatment Plant
in Dallas. The system will allow energy to be sold to the city 3 cents/kWh cheaper than before
it was installed. In addition, the CHP system will avoid an estimated 36,000 metric tons of CO2
emissions.
http://www.auburnny.gov/Public_
Documents/AuburnNY_PLanning/
cipproject
http://www.greendallas.net/pdfs/
greenTimes/newsletter_102009.pdf
18
10. ADDITIONAL RESOURCES
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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Title/Description 1 Website
Holt, Michigan. The Dehli Charter Township in Holt installed a 60 kW CHP system at the local
wastewater treatment plant. The system, which went online in 2009, is expected to produce
annual electricity savings of $30,000 and annual natural gas savings of $40,000.
Oceanside, California. A 560 kW CHP system installed at the San Luis Rey Wastewater Treatment
Plant in Oceanside is capturing methane to produce electricity. As a result, the city is expecting to
save $185,000 per year on electricity and $150,000 per year on natural gas.
Toledo, Ohio. A 10 MW system was installed at the Bay View Wastewater Treatment plant in
Toledo in 2010, the largest wastewater treatment facility in Northwest Ohio. The system is
expected to avoid more than 650,000 metric tons of CO2 over the lifetime of the system.
Vineland, New Jersey. A 170 kW CHP system was installed at the Landis Sewerage Authority
Wastewater Treatment plant in Vineland in 2008, the largest facility in New Jersey. The project
has a total value of more than $1 million.
http://www. tpomag. com/
editorial/2010/05/low-tech-high-tech
http://www.utsandiego. com/
news/2007/dec/07/cogeneration-
sewage-plan-will-save-city-335000-
uti/?printfrpage=all
http://www.epa.gov/lmop/
documents/pdfs/conf/14th/ellman.
pdf
http://www.reec/cofistruct/ofic/ata.
com/building- types/water- treatment/
new-jersey/projects/1000606517/
Municipal Utilities
Austin, Texas. In 2004, Austin Energy installed a 4 MW CHP system at its Domain Industrial Park.
The energy produced from the system is used to provide district cooling services, reducing
operational and energy costs while enhancing commercial property value.
Gainesville, Florida. In 2009, Gainesville Regional Utilities partnered with Shandis HealthCare to
construct the GRU South Energy Center, a 4.3 MW CHP plant that will provide 100 percent of the
energy needs at the University of Florida's Shandis Cancer Hospital. The projected annual energy
savings is equivalent to the power needed to run more than 3,000 homes.
Rochester, New York. The County of Monroe had a CHP system installed at the Rochester
International Airport in 2002. The system will produce $500,000 in savings annually, reducing the
airport's energy consumption by 47 percent. This is the equivalent of the amount of jet fuel two
737's would use flying from Rochester to Chicago for a whole year.
http://www.austinenergy.com/
commercial/other%20services/
On-Site%20Energy%20Systems/
districtcooling.htm
http://www.burnsmcd.com/Press-
Releases/Detail/GRU-Shands-
HealthCare-partner-on-unique-
energy-project
https://www. nyserda. ny.gov/
Energy- Efficiency-and-Renewable-
Programs/CHP/CHP-Conferences/-/
media/Files/El BD/Research/
Combined%20Heat%20and%20
Power/lGRIALynchSlaybaugh.ashx
Landfill Gas Energy
Albany, Georgia. A 1.9 MW CHP system was installed at the Dougherty County Landfill in Albany
in 2011. The energy produced is sold to the nearby Marine Corps Logistic Base. In combination
with other installed energy efficiency measures at the base, the CHP system will reduce the base's
GHG emissions by 9,300 metric tons annually, equivalent to the annual energy use of more than
1,200 homes.
Kalispell, Montana. A CHP plant is currently in the process of being constructed in Kalispell in
Flathead County. The system will use wood byproducts from a local lumber company's logging
and mill operations to generate about 2.5 MW of power, enough to qualify the project for
renewable energy credits.
La Crosse, Wisconsin. Energy created from the La Crosse County Landfill CHP system is
transported through a two-mile-long underground pipe to provide green power to the local grid
and heat both buildings and water on the Hendersen Health System's campus.
Midland, Michigan. In 2011, the City of Midland had a CHP system constructed at the city landfill.
The system will increase plant efficiency and add a revenue stream. The first of the two CHP
generators already constructed saved the facility an estimated $400,000 in energy costs in the
first year of operation. When the second generator comes online, the facility expects to generate
an excess of energy that would then be sold back to a local utility.
http://www.epa.gov/chp/partnership/
current_winners.html#six
http://montananewsnow.com/the-
latest/tag/fh-stoltze-co-generation-
plant
http://www.epa.gov/lmop/partners/
award/2012.html
http://www.mlive.com/midland/
index.ssf/2011/01/trash_to_treasure_
midland_landfill_converting_
methane_into_electricity_on_
schedule_to_fire_up_next_m.html
Combined Heat and Power | Local Government Climate and Energy Strategy Series
10. ADDITIONAL RESOURCES
19
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Title/Description
Punta Gorda, Florida. In 2011, an energy developer constructed a 4.2 MW CHP plant at the Zemel
Road Landfill in Punta Gorda. The project is expected to generate long-term recurring revenue
and earnings, and a strong return on investment for company stockholders.
Website
http://www.lime-energy.com/about/
news/Lime-Energy-Announces-
Acquisition-of-Landfill-Gas-Rights-
for-Development-of-42M W-
Electricity-Generating-Facility
Trinity, Alabama. Part of the energy created by the CHP systems at the Morgan County Landfill in
Trinity provides winter heating for the city's newly constructed recycling center. EPA recognized
this achievement by naming the project the 2011 Landfill Methane Outreach Program Community
Partner of the Year.
District Energy Systems
Philadelphia, Pennsylvania. A 200 kW CHP microturbine was installed at Philadelphia Gas Work's
headquarters in 2011. The CHP system is expected to provide an 84 percent reduction in NOx, 100
percent reduction in SO2, and 33 percent in CO2, or 475 metric tons of avoided carbon dioxide
emissions per year. This is equivalent to the annual emissions of 87 cars. The project is also
expected to save the company $130,000 per year.
http://www.epa.gov/lmop/partners/
award/2011.html
http://www.vv/nn/ngcombo.
net/succeed/
PGWinstallsCHPmicroturbine.pdf
Tucson, Arizona. NRG Thermal owns and operates a CHP plant in Tucson. The system reduces
both energy costs and emissions while enhancing power reliability.
http://www.nrgthermal.com/chp.htm
City/Local Climate Change Plans
Berkeley, California. The City of Berkeley adopted its Climate Action Plan in 2009. The plan
outlines a series of recommendations the local government can take to reduce Berkeley's GHG
emissions by 80 percent by 2050. One of the recommendations in the plan is to "investigate the
potential and possible sites for combined heat and power (CHP) systems in Berkeley."
http://www.cityofberkeley.info/
uploadedFiles/Planning_and_
Developmen t/Level_3_ -_ Energy•_
and_Sustainable_Development/
Berkeley%20CUmate%20Action%20
Plan.pdf
Chicago, Illinois. Chicago's Climate Action Plan 2008 outlines 35 actions that can be taken to
reduce GHG emissions within the city. The plan proposes a goal to achieve GHG emissions
reduction of 25 percent below 1990 levels by 2020 and 80 percent below 1990 levels by 2050.
The report's includes an action area to increase efficient power generated on-site using DG and
CHP systems.
http://www.chicagoclimateaction.
org/filebin/pdf/finalreport/
CCAPREPORTFINALv2.pdf
Louisville, Kentucky. In 2009, the Louisville Metro Government (LMG) released a series of
recommendations for reducing the city's GHG emissions. Recommendation 58 states: "LMG
should investigate and work to remove barriers and provide incentives to stimulate greater
adoption of combined heat and power systems (CHP). This includes issues of appropriate
environmental regulations, utility interconnection policies, utility tariffs and reasonable financial
incentives for high performance CHP systems."
http://www.louisvilleky.gov/
NR/rdonlyres/4AOD4B18-88SB-
4A48-A803-A7A25EA1688E/0/
FinalClimateActionReport.pdf
New York, New York. PlaNYC's April 2011 update report details the challenges New York City faces
in the coming years and decades in terms of climate change, and outlines recommendations and
initiatives to meet those challenges. Initiative 13 encourages the development of clean distributed
generation and CHP systems, and mentions several examples of CHP development sites in the
city.
Philadelphia, Pennsylvania. In 2007, Philadelphia released a series of recommendations aiming
to reduce the city's GHG emissions. Recommendation 8 states: "Promote the installation of
combined heat and power systems (cogeneration) at City complexes. (CG) Combined heat and
power systems can reduce GHG emissions through their high fuel efficiencies, and these systems
may be cost effective at some City-owned facilities and at large private-sector projects. Initially,
the City will evaluate the financial feasibility of cogeneration at the Prison System's complex
located on State Road. Going forward, the City will explore approaches to encourage combined
heat and power systems at other public and private facilities."
http://nytelecom. vo. llnwd. net/
ol5/agencies/planyc2030/pdf/
planyc_2011_planyc_full_report.pdf
http://www.phila.gov/green/PDFs/
Attachmentl_Philadelphia_Local_
Action_Plan_Climate_Change.pdf
20
10. ADDITIONAL RESOURCES
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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Title/Description
Website
Information Re
Overview
Combined Heat and Power: Frequently Asked Questions. This EPA CH P partnership document
answers several common questions such as how CHP works, what facilities use CHP, and the
benefits and costs of CHP.
http://www.epa.gov/chp/documents/
faq.pdf
Catalog of CHP Technologies. This EPA CHP partnership document provides an overview of how
CHP systems work, the key concepts of efficiency and power-to-heat ratios, and summarizes the
cost and performance characteristics of commercially proven CHP technologies.
http://www.
cleanenergyresourceteams.org/
sites/default/files/publication_files/
CERTsManualChl0.pdf
Biomass Combined Heat and Power Catalog of Technologies. This EPA CHP partnership
document provides a detailed technology characterization of biomass CHP systems. The report
reviews the technical and economic characterization of biomass resources, biomass preparation,
energy conversion technologies, power production systems, and complete integrated systems.
Waste Heat to Power Systems. This EPA CHP partnership document examines the recovery of
industrial waste heat for power (WHP), a largely untapped type of CHP. The report explains the
opportunity for WHP, applicable technologies, industrial WHP applications, and the economics
and market status of WHP.
http://www.epa.gov/chp/documents/
biomass_chp_catalog.pdf
http://www.epa.gov/chp/documents/
waste_heat_power.pdf
Distributed Energy Resources Guide. This California Energy Commission guide provides
information on performance, costs, strengths, weaknesses, and future development of CHP
systems.
http://www.energy.ca.gov/distgen/
equipment/chp/chp.html
Benefits of Combined Heat & Power
Combined Heat and Power: Effective Energy Solutions for a Sustainable Future. This Oak Ridge
National Lab report describes four key areas in which CHP is effective and holds promise for the
future: as an environmental solution, a competitive business solution, a local energy solution, and
an infrastructure modernization solution. The appendix provides basic information about CHP.
http://info.ornl.gov/sites/
pubUcations/files/Publ3655.pdf
Benefits of CHP. This EPA CHP Partnership web page provides information on the efficiency,
reliability, environmental, and economic benefits CHP provides.
http://www.epa.gov/chp/basic/index.
html
CHP Emissions Calculator. EPA has developed this tool to assist CHP project developers and
policy makers in estimating the environmental benefits of installing CHP systems. The calculator
allows users to characterize a model CHP system and compare its benefits with a comparable
separate heat and power system.
CHP Calculation Methodology for LEED-NC v2.2 EA Credit 1. This document provides guidance
on accounting for CHP systems when using the U.S. Green Building Council's Leadership in
Energy and Environmental Design (LEED) v2.2 rating system for new construction.
http://www.epa.gov/chp/basic/
calculator.html
http://www.utexas.edu/utilities/
sustainability/leed/documents/
CHPCalculationMethodology.pdf
Treatment of District or Campus Thermal Energy in LEED V2 and LEED 2009 - Design &
Construction. This document describes the treatment of district and campus thermal energy in
the LEED v2.x and LEED-2009 Design & Construction and Interior Design & Construction rating
systems.
http://www. usgbc. org/Docs/Archive/
Ceneral/Docs7671.pdf
Opportunities for Combined Heat & Power
Municipal Wastewater Treatment Facilities. This EPA CHP website provides information on the
compatibility of CHP systems with wastewater treatment facilities.
http://www.epa.gov/CHP/markets/
wastewater.html
Landfill Gas As A Fuel for Combined Heat and Power. This paper describes opportunities to
capture LFG from landfills and use it as a source of fuel for CHP systems in various applications.
http://www. energyvortex. com/
files/Landfill_Gas_as_Fuel_for_
Combined_Heat_and_Power.pdf
Combined Heat and Power | Local Government Climate and Energy Strategy Series
10. ADDITIONAL RESOURCES
21
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Title/Description
The Role of District Energy in Greening Existing Neighborhoods. This report, from the
Preservation Green Lab, looks at how district energy can be a critical element of a successful
community energy plan for neighborhoods. It describes what district energy is, why it matters,
how to develop district energy systems, and case studies from around North America illustrating
the crucial role of city governments in promoting and implementing district energy.
Website
http://newenergycities.org/
resources/greening-existing-
neighborhoods-a-district-energy-
policy-primer/view
Community Energy: Planning, Development & Delivery. An International District Energy
Association guidebook that provides an overview of the local energy project development
process to assist mayors, planners, community leaders, real estate developers and economic
development officials in making informed decisions on the analysis, planning, development and
delivery of district energy systems.
http://districtenergy.org/community-
energy-planning-development-and-
delivery/
Combined Heat and Power: Enabling Resilient Energy Infrastructure for Critical Facilities. This
report summarizes how critical infrastructure facilities with CHP systems were able to power
through Superstorm Sandy. Several examples from other storms and blackout events in other
regions of the country are also included. This report also provides information on the use of CHP
for reliability purposes, as well as state and local policies designed to promote CHP in critical
infrastructure applications.
https://wwwl.eere.energy.gov/
manufacturing/distributedenergy/
pdfs/chp_critical_facilities.pdf
Department of Housing and Urban Development (HUD) Resources on CHP. This website describes
HUD energy initiatives, policies, and how federal government-wide energy policies affect HUD
programs and assistance. The portal includes resources developed by HUD to explain CHP to
building owners and managers, and provides evaluation tools specific to multifamily housing.
http://portal.hud.gov/hudportal/
HUD?src=/program_offices/comm_
planning/library/energyevelopment/
GuidelQAMultifamilyHousing.pdf
Market Analyses. These analyses cover a wide range of markets, including commercial and
institutional buildings and facilities, district energy, and industrial sites. They also examine the
market potential for CHP at federal sites and in selected states and regions.
https://wwwl.eere.energy.gov/
manufacturing/distributedenergy/
market_analyses.html
Combined Heat and Power on Brownfield Sites. This report, from Redevelopment Economics,
organizes the federal and New York State energy incentives available for CHP and explores federal
policy issues surrounding CHP, district energy, and brownfields. It also discusses and analyzes a
number of in-depth case studies, including financing, technology, impacts, and how CHP fits into
the overall redevelopment project.
Key Participants
Portfolio Standards and the Promotion of Combined Heat and Power. This EPACHP Partnership
paper discusses the different ways CHP is incorporated in portfolio standards.
http://redevelopmenteconomics.
com/yahoo_site_admin/assets/
docs/Brownfields-CHP-district_
Final.35291029.pdf
http://epa.gov/chp/documents/
ps_paper.pdf
Combined Heat and Power: A Clean Energy Solution. This report by DOE and EPA examines the
benefits of CHP, the current status of CHP, its potential and future role in the United States, drivers
and barriers to CHP deployment, and policy solutions to promote CHP.
http://wwwl.eere.energy.gov/
manufacturing/distributedenergy/
pdfs/chp_clean_energy_solution.pdf
Combined Heat and Power: A Resource Guide for State Energy Officials. This NASEO resource
guide provides a technology and market overview of CHP and ways in which state officials can
support CHP through energy assurance planning, energy policies and utility regulations, and
funding/financing opportunities for CHP.
http://www.naseo.Org/data/sites/l/
documents/publications/CHP-for-
State-Energy-Officials.pdf
Challenges Facing Combined Heat b Power Today: A State-by-State Assessment. This ACEEE
report examines the CHP environment and barriers to CHP development both in general and then
by state. The report concludes with suggestions on how stakeholders can further the CHP market
building on existing successes.
Guide to the Successful Implementation of State Combined Heat and Power Policies. This guide,
from the State & Local Energy Efficiency Action Network, provides state utility regulators and
other state policymakers with actionable information to assist them in implementing key state
policies that affect CHP.
http://aceee.org/research-report/
ielll
http://wwwl.eere.energy.gov/
seeaction/chp_policies_guide.html
22
10. ADDITIONAL RESOURCES
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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Title/Description Website
Project Development
CHP Project Development Handbook. This EPA CHP Partnership handbook provides information,
tools, and insights on the project development process, CHP technologies, and the resources of
the CHP Partnership.
Spark Spread Estimator. This EPA CHP Partnership resource calculates the difference between the
delivered electricity price and the total cost to generate power with a prospective CHP system,
helping to easily evaluate a prospective CHP system for its potential economic feasibility.
http://www.epa.gov/chp/documents/
chp_handbook.pdf
http://www.epa.gov/chp/project-
development/stagel.html
Costs and Funding Opportunities
dCHPP database. EPA's dCHPP is an online database that allows users to search for CHP policies
and incentives at the local, state and federal level.
Database of State Incentives for Renewable Energy. DSIRE is a comprehensive source of
information on incentives and policies that support renewables and energy efficiency, including
CHP, in the United States.
http://www.epa.gov/chp/policies/
database.html
http://www.dsireusa.org/incentives/
index, cfm ?EE=1&RE=1&SPV= O&ST
=0(ttechnology=combined_heat_
power(tsh=l
Case Studies & Strategies for Effective Project Implementation
Distributed Energy Case Study Database. DOE maintains this database of CHP projects. Users can
narrow database searches based on state. Clean Energy Application Center, market sector, NAICS
code, system size, technology, fuel, thermal energy use, and year installed.
Combined Heat and Power Installation Database. This database, operated by ICF International,
lists all known CHP installations. It also lists and provides information on the CHP units, organized
by state.
Combined Heat and Power Systems: Improving the Energy Efficiency of Our Manufacturing
Plants, Buildings, and Other Facilities. This Natural Resources Defense Council report provides
30 case studies demonstrating how various industrial and manufacturing facilities have benefited
from using CHP.
http://wwwl. eere. energy.gov/
manufacturing/distributedenergy/
chp_projects.html
http://www. eea -inc. com/chpdata/
http://www. nrdc. org/energy/files/
combined-heat-power-IP.pdf
District Energy Case Studies. This International District Energy Association web page provides http://www.districtenergy.org/case-
multiple district energy case studies from across the United States and around the world. studies
Regional Studies
Midwest Manufacturing Snapshot: Energy Use ft Efficiency Policies. This World Resources http://pdf.wri.org/working_papers/
Institute paper offers a snapshot of industrial energy use and current state approaches to midwest_manufacturing_snapshot/
reducing industrial energy intensity and energy costs for manufacturers. It also provides state-by- midwest_manufacturing_snapshot.
state policy studies for 10 Midwestern states. pdf
Power Almanac of the American Midwest. This World Resources Institute interactive map
provides facts and figures about the use and potential of CHP in the Midwest.
Clean Energy Roadmap: Washington State. This report by the Cascade Power Group outlines
three scenarios to help meet Washington State's energy demands and emissions reduction goals
by 2035 while decreasing total energy consumption, including the employment of CHP systems.
It is also designed to complement the state's 2012 State Energy Strategy.
California SGIP & CHP: Recent History and Current Status of the California Self-Generation
Incentive Program. This paper highlights the key changes and new program rules for the 2011-
2014 California Self-Generation Incentive Program. The paper is intended to assist potential CHP
site owners, project developers, and others with understanding the latest SGIP program rules.
http://www.wri.org/project/midwest-
almanac#map:stt=mwfrres=chpfrga
s=all
http://www.northwestcleanenergy.
org/NwChpDocs/WA%20Clean%20
Energy%20Roadmap%202012.pdf
http://www.pacificcleanenergy.
org/RESOURCES/Library/PDF/
SGIP2011Fullpaper-FINAL.pdf
Combined Heat and Power | Local Government Climate and Energy Strategy Series
10. ADDITIONAL RESOURCES
23
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Title/Description
2008 Combined Heat and Power Baseline Assessment and Action Plan for the California Market.
This report provides an updated baseline assessment and action plan for combined heat and
power in California and identifies the hurdles preventing the expanded use of CHP systems.
Website
http://www.pacificcleanenergy.org/
RESOURCES/Library/PDF/PRAC_CA_
Plan_2008.pdf
2011 Combined Heat and Power and Other Clean Energy System Baseline Assessment and Action
Plan for the Nevada Market. This report assesses and summarizes the current status of combined
heat and power, district energy, and waste heat-to-power in Nevada, and identifies the hurdles
preventing the expanded use of these clean energy systems.
http://www.pacificcleanenergy.org/
RESOURCES/Library/PDF/PCEAC_
NV_Plan_2011.pdf
2011 Combined Heat and Power and Other Clean Energy System Baseline Assessment and Action
Plan for the Hawaii Market. This report assesses and summarizes the current status of combined
heat and power, district energy, and waste heat-to-power in Hawaii, and identifies the hurdles
preventing the expanded use of these clean energy systems.
http://www.pacificcleanenergy.org/
RESOURCES/Library/PDF/PCEAC_HI_
Plan_2011.pdf
Combined Heat and Power in Texas: Status, Potential, and Policies to Foster Investment. This
study from Summit Blue Consulting examines CHP installations in Texas; assesses the technical,
economic, and regulatory environment surrounding CHP development; and identifies policy
options to encourage greater investment in CHP.
http://www.gulfcoastcleanenergy.
org/Portals/24/Reports_studies/
Summit%20Blue%20CHP%20
Study%20to%20PUCT%20081210.pdf
U.S. DOE CHP Technical Assistance Partnerships. DOE's seven CHP Technical Assistance
Partnerships, formerly called the Clean Energy Application Centers, promote and assist in
transforming the market for CHP, waste heat to power, and district energy technologies and
concepts throughout the United States.
http://wwwl.eere.energy.gov/
manufacturing/distributedenergy/
chptaps.html
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24
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Combined Heat and Power | Local Government Climate and Energy Strategy Series
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Boston Metro Green. 2011. The Boston District Heating
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COC_EDITORIAL/AssessmentofCHPGoals.pdf.
Accessed 5/20/2008.
Chicago. 2008. Cogeneration. Available: http://egov.
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25
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11. REFERENCES
Combined Heat and Power | Local Government Climate and Energy Strategy Series
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Combined Heat and Power | Local Government Climate and Energy Strategy Series
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