iiCHP
SEPA COMBINED HEAT AND
POWER PARTNERSHIP
PORTFOLIO STANDARDS AND THE PROMOTION OF
COMBINED HEAT AND POWER
I. Introduction
Many states have developed portfolio standards to increase the adoption of renewable
energy generation, energy efficiency, and other clean energy technologies. Portfolio
standards require utilities and retail energy suppliers (mostly electricity and sometimes
gas) to procure a certain minimum quantity of eligible energy (typically from renewable
sources and other specified supply-side resources) or achieve a minimum amount of
energy efficiency savings (typically from demand-side measures).
Portfolio standards can stimulate market and technology development to help renewable
energy and clean energy sources become economically competitive with conventional
forms of electric power. In this way, portfolio standards can help overcome barriers and
create demand for such sources, enabling states to capture their energy-saving,
environmental, and economic benefits.
Combined Heat and Power (CHP), a clean energy technology, is an efficient method of
providing electric power and useful thermal energy (heating or cooling) using a single
fuel source. As such, it can replace or supplement less efficient conventional separate
heat and power. CHP provides environmental and energy benefits due to this higher
efficiency and the coincident elimination of transmission losses in delivering electricity
from the power plant to the user. With these benefits, CHP is uniquely qualified to
contribute to a state's objectives of increasing clean energy mix, both as a supply-side
resource and as a demand-side measure. CHP can help achieve multiple policy goals to
address energy and environmental issues. CHP's potential to use renewable fuels and
decrease environmental impact makes it a candidate for standards designed to
encourage renewable and clean energy resources. CHP's energy-efficiency benefits
make it a candidate for standards designed to encourage energy-saving measures in a
utility's portfolio of services.
This paper discusses the different ways CHP is incorporated in portfolio standards. It
presents the basic portfolio standard design approaches (Section II), identifies key CHP-
related issues for policymakers to consider when revising or developing portfolio
standards (Section II), and provides state-specific information on existing standards
allowing for CHP (see Sections III and IV). Additional resources are listed in Section V.
1
-------
Background
Portfolio standards have been in place since the late 1990s and early 2000s.1 As of
December 2012, some form of portfolio standards had been established in 42 states and
the District of Columbia. Most states have portfolio standards to encourage renewable,
clean energy resources and energy-efficiency savings. No two states have the same
standards, and some states have several standards. The first few standards were
renewable portfolio standards set in place to encourage renewable energy resources.
Several states subsequently added provisions for clean energy or alternative energy
sources.2 Deregulation in the electricity market led to an increase in portfolio standards
to encourage energy savings through Energy Efficiency Resource Standards.
The three main types of portfolio standards include:
Renewable Portfolio Standards (RPS)3 or Clean Energy Standards (CES) are
portfolio standards designed to increase the contribution of renewable energy
and clean energy to the electric supply mix. They are focused on typical
renewable energy sources such as wind, solar, hydro, geothermal, and biomass,
and on clean energy technologies such as CHP. Some states maintain a broad
RPS definition under which renewably fueled CHP systems qualify. There are
states that maintain a CES in parallel to a RPS, and others that have a combined
RPS that includes clean energy sources such as CHP in addition to renewable
through separate tiers or targets for these sources. Examples of states with RPS
include California and Connecticut. With all these standards, CHP is treated as a
supply resource with prescribed targets and CHP users can engage either in the
voluntary or compliance market.
Energy Efficiency Resource Standards (EERS)4 are designed to meet an
energy-savings goal through energy efficiency. They are intended to encourage
more efficient generation and transmission by electric and gas utilities. They are
usually focused on end-use energy savings, but some include other efficiency
measures, such as CHP or other high-efficiency distributed generation (DG) or
distribution system improvements. Examples of states with EERS include Texas
and Vermont.
1 Some states have emissions performance standards (EPS) for greenhouse gases (GHGs) that
establish minimum performance requirements similar to an energy-efficiency appliance standard.
Qualifying facilities and compliance options vary by state. The standards have output-based limits
(in lbs C02/MWh) and typically apply to electricity-generating plants or the supply portfolio of a
load-serving entity (distribution or wires company). A utility can ensure compliance using various
approaches, such as by balancing its supply portfolio, trading certificates that are created within
the power market, and trading project-based emissions reductions (or carbon offsets) created in
other sectors. For more information, refer to RGGI and EPS in Selected States. RAP Research
Brief. August 2010.
2 Refer to Heeter and Bird, Including Alternative Energy Resources in State RPS: Current Design
and Implementation Experience, November 2012.
3 Also referred to as Renewable Energy Standard (RES) or Renewable Resource Standard
(RRS).
Also referred to as Electricity Reduction Goals (ERG), Energy Optimization Standard (EO), and
Energy Portfolio Standard (EPS).
2
-------
Alternative Energy Portfolio Standards (APS)5 are hybrid standards
developed to allow energy efficiency to qualify within a RPS or a CES, and they
do so either through targets for a certain percentage of a supplier's capacity
(MW) or generation (MWh) to come from sources such as CHP, coal with carbon
capture and storage, or waste-to-energy projects using municipal solid waste.
Examples of states with APS include Massachusetts, Ohio, and Pennsylvania.
As there is no consistent terminology in place to refer to each type of portfolio
standard, this paper refers to each of the standards by the name assigned by the
state.
The standards vary in their structure, administration, size, and eligible applications as
well as the types of eligible energy sources. The structure and administration varies
based on the state's electric and gas market and whether it is regulated or deregulated
(or restructured). Typically, legislation creates the general architecture of the portfolio
standard and delegates implementation authority to the state utility regulator (Public
Utility Commission [PUC] or Public Service Commission [PSC]), which is responsible for
detailed rulemaking; guidelines for implementation; and evaluation, measurement, and
verification. In some cases, the PUC or PSC sets the numerical target rather than the
state legislature. In some states, the responsibility for implementing the portfolio
standard is shared with the state's energy department.
Depending on its objectives, a state sets targets as a percentage of retail sales, but
some states set specific energy targets (energy saved [in kWh], energy output [in kWh]
or energy capacity [in kW]). Some targets are set as a portion of expected load growth
(e.g., as in Texas) or a percentage reduction in peak demand for electricity (e.g., as in
Colorado). Depending on the type of standard, qualifying projects demonstrate
compliance with energy credits that can be traded in the voluntary or compliance market,
or achieve energy savings that are measured and verified. Portfolio standards policies
that have binding targets can also include compliance requirements, fulfillment of which
must be demonstrated periodically (typically annually).
The approaches used to incorporate resources including CHP into portfolio standards
have varied significantly by state. States have used three primary approaches to include
CHP and other resources in portfolio standards:
1. Include CHP as a generally eligible resource in a state's portfolio standard.
Under this approach, CHP qualifies as one of several resources in the state's
portfolio standards, and all qualified resources can meet the compliance target.
Typically, all eligible resources are credited at the same value. Indiana is an
example of a state that has enacted this type of standard (voluntary RPS goals).
2. Establish separate tiers for CHP within an existing portfolio standard. This
approach creates separate targets, or tiers, for CHP, detailing specific targets
and defining whether it is treated as a renewable, clean energy, or an energy
5 Also referred to as Alternative Energy Resource Standard (AERS), Alternative and Renewable
Energy Portfolio Standard (AREPS), Alternative Energy Portfolio Standard (AEPS), Renewable
Energy and Energy Efficiency Portfolio Standard (REPS), and Renewable, Recycled and
Conserved Energy Objective.
3
-------
efficiency measure. With this approach, the standard defines a target under
which CHP qualifies and can also include hybrid standards where CHP targets
are set in a separate tier based on CHP's energy savings potentials. For
example, Connecticut has three separate tiers under its RPS. The third tier,
known as "Class III," requires suppliers to obtain 4 percent of their retail load
from customer-sited CHP and certain other resources.
3. Establish a separate portfolio standard with specific sub targets for CHP. With
this approach, a state establishes a separate portfolio standard with subtargets
for CHP (and other resources). For example, Massachusetts established an APS
in 2009 that is separate from the state's RPS program but functions in the same
general manner. The APS requires 5 percent of the state's electric load to be met
with "alternative energy" resources by 2020. In 2009 and 2010, 99.1 percent of
the APS requirement was met by CHP systems.
II. CHP Design Features and Key Policy Considerations
States have accounted for CHP in portfolio standards based on the overall program
objectives, such as promote more efficient generation, reduce GHG emissions, or
encourage supply diversity. CHP-related design features, therefore, vary among state
portfolio standards:
1. Voluntary or Mandatory Standards. States have either mandatory or voluntary
portfolio standards. Mandates have created a clear pathway to increase the use
of resources such as CHP.6 Voluntary goals typically carry nonbinding targets
with no penalties for failure to comply.
2. CHP System Attributes in Portfolio Standards. Some standards define CHP
system characteristics, such as specific power-to-heat ratios, cost-effectiveness
thresholds, and other eligibility requirements that systems be installed before or
after specific dates. Most standards define the following CHP attributes:
a. CHP System Type. States have varying definitions concerning CHP
eligibility in their portfolio standards. For example, in some states, all CHP
types qualify as eligible technology, while in other states (e.g., Colorado,
Nevada, North Dakota), only waste heat-to-power qualifies as an eligible
CHP technology.
b. Size Limits. Some states have minimum and/or maximum system size
limits under their portfolio standard programs. For example, New York
allows only CHP systems of 50 kW or larger to qualify under its RPS.
c. Efficiency Threshold. Some states have incorporated various CHP
efficiency metrics into their standards. A handful of states have minimum
CHP operating efficiency requirements, such as the minimum level of 50
6 The Department of Energy's (DOE's) Lawrence Berkeley National Laboratory (LBNL) has
issued reports reviewing existing portfolio standards and their values. For example, a 2008 report
found that, assuming full compliance, current mandatory RPS programs will "require the addition
of roughly 60 gigawatts (GW) of new renewable capacity by 2025, equivalent to 4.7 percent of
projected 2025 electricity generation in the U.S., and 15 percent of projected electricity demand
growth." Massachusetts' APS shows the clear increase in CHP, which reflects the state mandate.
-------
percent set in the Connecticut RPS. In certain states, more efficient
systems earn more credit per unit of output (e.g., Connecticut RPS,7
Massachusetts APS). Massachusetts' APS provides credit for CHP based
on the efficiency of the system compared to that of grid-supplied
electricity and an onsite boiler producing the same electric and thermal
output as the CHP system.
d. Fuel Use. In a number of states, CHP would qualify under a renewable
portfolio standard irrespective of fuel type used. Some portfolio standards,
however, only recognize certain fuel-type CHP systems, such as
Arizona's Renewable Electricity Standard (RES), which allows only
renewably fueled CHP to qualify.8
3. Accounting for CHP's Benefits in Portfolio Standards. A CHP system's
benefits are accounted for based on its energy output, energy capacity, or energy
savings. Some portfolio standards encourage eligible resources such as CHP by
issuing tradable credits for the energy generated. These are commonly seen with
RPS, where credits can be sold at market prices to utilities or other entities to
demonstrate compliance with the portfolio targets. Typically, one MWh of eligible
generation or energy savings may earn one credit. The value of credits differs
based on the stringency of the portfolio standard targets, eligibility guidelines,
and other factors. Other portfolio standards encourage eligible resources by
providing financial incentives based on system performance or energy savings
and are commonly seen in EERS. Measurement and verification is a critical
component to CHP's inclusion in a portfolio standard. There are various ways to
account for CHP:
a. Accounting for CHP Electrical and Thermal Output. A CHP system
provides electrical and thermal outputs that may be taken into account in
assessing its benefits. Some states account for only the electric output
from CHP systems (typically based on a metered output [e.g., MWh]) in
determining credit for the portfolio standards. Other states account for
both the electrical and thermal output (typically based on measured heat
produced [Btu] converted to MWh or other equivalents).
b. Credit In Comparison to Other Resources. CHP can receive full credit
on par with other resources in the standard (e.g., Michigan, Pennsylvania)
or partial credit (e.g., Massachusetts APS, Minnesota EERS). States that
want to provide a significant incentive for CHP have applied a credit
multiplier (1.5 or 2 credits) for each MWh of eligible CHP generation. If a
state goal is to encourage diverse electricity supply, then that state may
credit CHP systems on par with renewable sources of generation. If the
objective is to encourage GHG emission reductions, then the state may
credit the CHP system based on a measure that reflects actual
reductions. How CHP is credited under portfolio standards can be a
function of the overall program objectives.
7 Where the revenue from the renewable energy credits for qualifying facilities are divided
between the customer and the state Conservation and Load Management Fund, depending on
when the Class III systems are installed.
8 It is important to note that Arizona's EERS does allow fossil-fueled CHP to qualify.
5
-------
c. Accounting for CHP's Efficiency. A CHP system's efficiency plays a
role in portfolio standards, either in defining a CHP system's eligibility (for
instance, for a performance-based incentive) or in assessing energy
savings (such as in an EERS). Various efficiency metrics exist for a CHP
system that pertain to electricity generation and heat production (the
electrical and thermal output), or an overall operating or system
efficiency. The type of efficiency that is used will depend on the type of
portfolio standard.
As these design features demonstrate, policymakers can promote CHP in their portfolio
standards through several different approaches, based on the energy savings and
environmental benefits CHP can provide in producing electricity and thermal energy.
States can benefit from a holistic approach as they develop portfolio standards that
support CHP to ensure that they are taking optimal advantage of CHP's benefits and to
address any conflicting requirements. As an example, an RPS or an APS can be
structured to capture the value of the supply-side attributes of CHPthe electric and
thermal outputswhile an EERS may be designed to recognize the demand-side
benefits of CHPthe energy-efficiency savings (e.g., North Carolina combined
RPS/EERS).
Recognizing the variability in state portfolio standards, a state can benefit from
consistently attributing CHP in the portfolio standards by addressing the following key
concepts:
1. Define CHP Eligibility Explicitly. Portfolio standards may not sufficiently
promote CHP unless CHP is explicitly identified as an eligible resource (e.g.,
Massachusetts APS, Connecticut RPS). Lack of formal recognition of CHP under
standards creates uncertainty, which may deter some projects due to concerns
about the timing and cost of the approval process that determines eligibility.
States with specific and distinct tiers and targets for CHP provide well-defined
goals to encourage its use.
2. Define CHP Eligibility Holistically. Currently, there are varying state definitions
of CHP eligibility. Some states allow for waste heat-to-power as an eligible
technology within their portfolio standards, and others only qualify renewably
fueled CHP. To secure the energy and environmental benefits from CHP, it is
best to consider all types of CHP systems as eligible technologies. Assembling
the right mix of efficiency requirements, size limits, eligible system types,
vintages, and performance-based incentives for CHP systems will allow a state
to achieve its economic, environmental, and energy supply objectives.
3. Account for CHP's Benefits Appropriately. As CHP systems vary based on
prime mover technology, fuel, application, and efficiency (total system and
electrical),9 their benefits have to be carefully evaluated so as to provide
adequate incentive and safeguards. Important questions to consider include:
a. How would each of these benefits be accounted for in a portfolio
standard? Would they be accounted for in the same portfolio standard?
9 www.epa.aov/chp/basic/methods.html.
6
-------
b. How would generation and energy savings be measured in the different
standards that are adopted?
c. How can CHP's electricity and thermal output be effectively credited in an
RPS or APS?
d. How can CHP's savings be effectively accounted for in an EERS? Are
there complementary policies in place, such as public benefit funds, cost-
recovery for energy-efficiency measures, or reducing or eliminating
throughput incentives, that will make the EERS more effective?
At this time, the type and the manner in which CHP is integrated varies by state.
Different approaches are in place to account for CHP electrical and thermal outputs as
well as to calculate CHP efficiency savings.
III. National Overview and State Examples
This section and the more detailed table that follows in Section IV present a national
overview on how CHP is incorporated in state portfolio standards, a range of state
examples, selected state case studies, and state-specific data. A list of additional
resources is also provided.
States with RPS, CES, and APS Requirements for CHP
Currently, 40 states and the District of Columbia have some form of APS or RPS (either
voluntary or mandatory), as shown in Figure 1. Of these states, 23Arizona,
Connecticut, Colorado, Hawaii, Illinois, Indiana, Louisiana, Maine, Massachusetts,
Michigan, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio,
Oklahoma, Pennsylvania, South Dakota, Utah, Vermont, Washington and West
Virginiaspecifically call out CHP and/or waste heat-to-power (WHP) as eligible under
their RPS or APS program guidelines.
The other 17 states and the District of Columbia do not explicitly mention CHP; however,
they may allow these systems to qualify if they use an eligible fuel. For instance, if
biomass is a qualifying fuel under an RPS, and a CHP system is biomass-fired, then that
CHP system would potentially be eligible to receive credit under the portfolio standard.
7
-------
Figure 1: States with RPS, CES, arid APS Requirements for CHP
Source: ICF International, C2ES, and the DSIRE database.
Mandatory RPS. no CHP
Mandatory RPS with
CHP/waste heat (CHP qualifies
under a separate tier)
Mandatory RPS with
CHP/waste heat (CHP qualifies
under the general standard)
Voluntary RPS no CHP
Voluntary RPS with CHP
Mandatory APS with CHP
~
~
~
States with EERS Requirements
Figure 2 shows the states with EERS programs and states that include energy-efficiency
targets in their RPS programs (effectively functioning as EERS). Thirteen states
Arizona, Connecticut (administered as part of RPS),10 Delaware, Hawaii, Massachusetts,
Minnesota, Nevada (administered as part of RPS), North Carolina (administered as part
of AEPS), North Dakota (administered as part of RPS), Ohio, Rhode Island, South
Dakota (administered as part of RPS), and Washingtonspecifically call out CHP or
WHP as eligible in their EERS regulations.
10 Connecticut's Class III requirement under their RPS is oftentimes referred to by organizations
such as DSIRE as an EERS. However, this efficiency tier is implemented under the RPS
structure.
8
-------
Figure 2: States with EERS Programs for CHP
~ 'Mandatory EERS, no CHP or
unspecified technology types
'Mandatory EERS with
~ Voluntary EERS, no CHP or
unspecified technology types
~EE Counts T owards RPS
CHP/waste heat
\ *
Source: ICF International, C2ES, and the DSIRE database.
State Examples
Below are examples of how several states have incorporated CHP into their standards:
Connecticut is an example of an RPS program that includes separate tiers for specific
categories of resources. The state's RPS was originally promulgated in 1998 and was
revised in 2005 and 2007. In 2005, Connecticut added a third tier to the resource
requirements, establishing a new RPS Class III which included CHP, demand response,
and electricity savings from conservation and load management (C&LM) programs. In
2007, the Class III standard was expanded to include waste heat recovery systems.11
The RPS requires electric suppliers and distribution companies to obtain 1 percent of
their generation from Class III resources beginning in 2007, increasing by 1 percent per
year until leveling out at 4 percent in 2010 and thereafter. The Class III targets effectively
serve as an EERS. Specific elements of the Class III standard include:
1. Eligible CHP systems must have been developed on or after January 1, 2006.
2. Eligible systems that recover waste heat or pressure from commercial and
industrial processes must have been installed on or after April 1, 2007.
11 Class III is defined as follows: "the electricity output from combined heat and power systems
with an operating efficiency level of no less than fifty percent that are part of customer-side
distributed resources developed at commercial and industrial facilities in this state on or after
January 1, 2006, a waste heat recovery system installed on or after April 1, 2007, that produces
electrical or thermal energy by capturing preexisting waste heat or pressure from industrial or
commercial processes, or the electricity savings created in this state from conservation and load
management programs begun on or after January 1, 2006."
9
-------
3. Existing units that have been modified on or after January 1, 2006 may earn
certificates only for the incremental output gains.
4. A CHP system must meet an overall efficiency level of at least 50 percent.
5. The sum of all useful electrical energy output must constitute at least 20 percent
of the system's total usable energy output.
6. The sum of all thermal energy outputs must also constitute at least 20 percent of
the technology's usable energy output.
7. Annual fuel-conversion efficiency and percentages of production are assessed
quarterly for the first year after initial certification. Customers that install Class III
resources on or after January 1, 2008, are entitled to Class III credits equal to at
least 1 cent per kWh. The revenue from these credits must be divided between
the customer and the state C&LM fund based on when the Class III resources
are installed, whether the customer is residential or nonresidential, and whether
the resources received state support or not.12
More information can be found at www.ct.aov/dpuc/cwp/view.asp?a=3354&g=415186.
Massachusetts has established an APS and an EERS, in addition to the state's RPS.
CHP qualifies under both the APS and EERS (renewably fueled CHP can qualify under
the RPS), and CHP projects are eligible to pursue credit under both programs. The
state-passed Green Communities Act in 2008 called for an APS that includes CHP and
an EERS that sets separate targets for demand-side resources, including behind-the-
meter CHP systems.
Treatment of CHP under the APS
The APS establishes a target of 5 percent of retail electricity suppliers' sales being from
alternative energy sources by December 31, 2020, and defines an alternative energy
source as one that generates electricity using any of the following: CHP, gasification with
capture and permanent sequestration of carbon dioxide, flywheel energy storage, paper-
derived fuel sources, or energy-efficient steam technology. Under Massachusetts' APS
regulations, CHP must have begun operation on or after January 1, 2008. Existing units
can receive credit for their added incremental useful thermal energy or useful electrical
energy. Only those additions made on or after January 1, 2008, qualify. A net C02
emissions rate of 890 Ibs/MWh also applies.13
CHP and other eligible projects can receive one credit, referred to as the "APS
Alternative Energy Certificates" (AEC) for one MWh of electrical energy output or for
thermal output using a conversion factor of 3,412 thousand Btus = 1 MWh. The
Alternative Energy Certificates (AECs) earned by a CHP unit represent the energy saved
by operating the CHP unit compared to separately operating an on-site thermal plant
while drawing electricity from the grid.14 AECs are granted for eligible CHP units equal to
the result, if positive, of the following calculation:
12 BGC Environmental Brokerage Services, www.bacebs.com/Renewables/.
13 The term "net" refers to the sum of emission increases and decreases. For a generation unit, it
includes carbon dioxide emissions related to combustion, gasification, fuel processing, and
sequestration, whether or not such activities occur at the generation unit or another location; in
the case of a CHP unit, it also includes emissions from thermal delivery.
14 Department of Energy Resources (DOERS). Massachusetts Renewables and Alternative
Energy Portfolio Standards (RPS & APS) Annual Compliance Report for 2010. January 11, 2012.
www.mass.aov/eea/docs/doer/rps/rps-aps-2010-annual-compliance-rpt-ian11 -2012.pdf.
10
-------
1. Take the sum of the following two:
a. The electrical energy generated divided by the overall efficiency of
electrical energy delivered to the end-use from the electrical grid (0.33 for
this purpose).
b. The useful thermal energy, expressed in MWh, divided by the overall
efficiency of thermal energy delivered to the end-use from a standalone
heating unit (0.80 for this purpose).
2. Then, subtract from this sum: The total of all fuel and any other energy
consumed by the CHP unit in that quarter expressed in MWh and calculated
using the energy content of the fuel based on its higher heating value.
Eligible CHP units must provide for the metering of electrical energy generated, useful
thermal energy produced, and fuel consumed, and for calculating the net quantity of
MWh for which AECs are awarded. Further details on this calculation can be accessed
at www.mass.aov/eea/enerav-utilities-clean-tech/renewable-enerav/rps-aps/rps-and-
aps-proaram-summaries.html.
At the end of 2010, 99.1 percent of the standard was met through CHP systems. The
total APS target for 2010 was 626,902 MWh.15 Massachusetts AECs were priced at
$19.68/MWh in 2011.
More information can be found at www.mass.aov/eea/enerav-utilities-clean-
tech/renewable-enerav/rps-aps/rps-and-aps-proaram-summaries.html.
Legislation passed in August 2012 requires that the state's executive office of energy
and environmental affairs study adding technologies that generate "useful thermal
energy" to the list of eligible technologies under this standard. That study was expected
to be completed by the end of December 2012.
Treatment of CHP under the EERS
Massachusetts also has a program that effectively functions as an EERS, as it has
energy savings targets. This program provides a rebate payment to help meet the
energy-efficiency targets and does not provide a tradable credit system (i.e., it is not
market-based). The program stipulates that the state meet at least 25 percent of electric
load by 2020 with demand-side resources, including: "energy efficiency, load
management, demand response, and generation that is located behind a customer's
meter, including a combined heat and power system with an annual efficiency of 60
percent or greater, with the goal of 80 percent annual efficiency for combined heat and
power systems by 2020." The EERS program, which started as a pilot in 2009, is known
as the Mass Save Ratepayer-Funded Energy Efficiency program. CHP systems can
qualify under either the APS or the EERS if they meet all necessary criteria under both
programs.
Under the Mass Save Ratepayer-Funded Energy Efficiency program, CHP systems are
eligible for the following incentives:
15 Department of Energy Resources (DOERS). Massachusetts Renewables and Alternative
Energy Portfolio Standards (RPS & APS) Annual Compliance Report for 2010. January 11, 2012.
www.mass.aov/eea/docs/doer/rps/rps-aps-2010-annual-compliance-rpt-ian11 -2012.pdf.
11
-------
Payments for feasibility studies, procurement, and installation.
For projects < 150 kW, a payment of $750/kWh capacity, up to a maximum
incentive of $112,000.
For projects >150 kW, the payment amount is determined by the utility
administrator, but it can be 50 percent of the installed cost for small to medium-
sized projects.
For systems greater than 2 MW, the incentive amount is determined by the funds
available.16
To qualify, CHP systems must also have a minimum efficiency of 60 percent, with fuel
input expressed on a higher heating value (HHV) basis, and must also pass a cost-
effectiveness screening threshold established by the Massachusetts Department of
Public Utilities (DPU), which results in a benefit to cost ratio > 1.0.17
New York is an example of a state portfolio standard program with a separate tier under
which CHP is eligible (although only certain CHP technologies are eligible). The New
York State PSC adopted an RPS in September 2004 and issued implementation
guidelines in 2005. The RPS was originally set at 25 percent of state electricity sales by
2013 but was expanded in January 2010 to 30 percent by 2015. Two tiers are used to
meet the RPS: 1) a main tier, and 2) a customer-sited tier (CST). The CST was revised
when the overall RPS target was increased in 2010, and it now includes CHP systems of
50 kW or larger.
New York's RPS is managed differently than most other state programs and works
through a central procurement model. Electric utilities collect a surcharge on electricity
sold to consumers. These funds are turned over to the New York State Energy Research
and Development Authority (NYSERDA), which purchases renewable energy credits
(RECs) on behalf of all the regulated entities to fulfill the RPS.
In addition, there is a separate pool of funds designated for the CST, with specific
funding allocations for different technologies. Funding for CHP systems will be provided
for eligible technologies through a combination of capacity- and performance-based
incentives. Eligible technologies include CHP systems fueled by anaerobic digestion
biogas, systems fueled by renewable biogas (including systems co-fired with renewable
biogas), and fuel cells fueled by any fuel. Incentives can be based on either capacity
(kW) or output (kWh) and are awarded through competitive solicitations.18
16 Massachusetts Department of Energy Resources (DOER). "Use of an Alternative Energy
Standard Portfolio Standard by Mass for the Support of CHP."
17 Mass Save: Savings through Energy Efficiency. "Combined Heat and Power ("CHP") Program:
Guidebook for Submitting CHP Applications for an Energy Efficiency Incentive in Massachusetts."
November 18, 2010. www.masssave.com/business/buildina-or-eauipment-uparades/find-
incentives/~/media/Files/Business/Applications%20and%20Rebate%20Forms/CHP%20lncentive
%20Guidebook%20-%20dated%2011-18-10.ashx.
18 State of New York Public Service Commission (PSC). Case 03-E-0188 - Proceeding on Motion
of the Commission Regarding Retail Renewable Portfolio Standard (RPS). Order Authorizing
Customer-Sited Tier Program Through 2015 and Resolving Geographic Balance and Other
Issues Pertaining to the RPS Program. April 2, 2010.
http://documents.dPS.state.nv.us/public/Common/ViewDoc.aspx?DocRefld=%7BC05CD0D6-
8EA5-4CB9-A9FA-6ADD3AECB739%7D.
12
-------
More information can be found at
http://documents.dps.nv.gov/public/Common/ViewDoc.aspx7DocReflch%7BC05CD0D6-
8EA5-4CB9-A9FA-6ADD3AECB739%7D.
North Carolina is an example of a state portfolio standard program with a separate
target for energy efficiency under which CHP is eligible. In August 2007, North Carolina
enacted a Renewable Energy and Energy Efficiency Portfolio Standard (REPS) requiring
all investor-owned utilities to supply 12.5 percent of 2020 retail electricity sales from
eligible energy resources by 2021. Municipal utilities and electric cooperatives must
meet a target of 10 percent eligible energy resources by 2018. Up to 25 percent of the
requirements may be met through energy-efficiency measures, including CHP. After
2018, up to 40 percent of the standard may be met through energy efficiency, including
CHP.
Under the REPS, no minimum efficiency requirement exists for CHP. Energy from CHP
is included to the extent that the system "uses waste heat to produce electricity or useful,
measurable thermal or mechanical energy for the retail customers' use and results in
less energy used to perform the same function or provide the same level of service at
the retail customer's facility." Thermal energy that is not used to generate electric power,
and is measured accurately in Btus, earns equivalent RECs using a conversion factor of
3,412 Btu per kWh. Renewable energy and CHP must be installed after January 1,
2007, to be considered eligible.
Utilities may meet their obligations through actual generation of electricity with eligible
fuels and technologies, through the purchase of RECs (each equivalent to 1 MWh) from
in-state or out-of-state renewable energy facilities, or through the implementation of
energy-efficiency measures.
The North Carolina Utilities Commission issued final REPS regulations under Order,
Docket No. E-100, Sub 113, on February 28, 2009. This Order can be found at:
http://ncuc.commerce.state.nc.us/cai-
bin/webview/senddoc.pam?dispfmt=&itvpe=Q&authorization=&parm2=SAAAAA06080B
&parm3=000127195.
13
-------
IV. CHP's Eligibility in State Portfolio Standards
Table 1 provides a summary of CHP eligibility in state portfolio standards. For each state, the table indicates if there is an RPS,
EERS, or APS in place, and the type of CHP eligible under the standard(s). As there is no consistent terminology in place to refer to
each type of portfolio standard, the table refers to them by the name assigned by the state. In some states, fossil-fueled topping-
cycle CHP (e.g., combustion turbine, steam turbine, reciprocating engine-based systems) and bottoming-cycle (i.e., WHP systems)
are explicitly called out as eligible resources under the portfolio standard(s). Some states, however, include only waste heat to power
systems as eligible. Other states do not explicitly identify CHP as an eligible resource, but CHP systems can qualify as long as they
are powered with a qualifying renewable fuel/technology.
Note: Typical CHP in this table is defined as fossil-fueled topping-cycle CHP. Under this form of CHP, fuel is combusted 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 useful thermal energy.
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
A - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
Alaska
~
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Not eligible.
Arizona
X
X
RPS:
Not eligible.
EERS:
CHP installations not used
to comply with the RPS may
be counted as energy
savings.
RPS:
Renewably fueled CHP
specifically called out as an
eligible resource.
CHP system must have an
operation date on or after
January 4, 1997, to qualify
for credit under the portfolio
standard.
EERS:
CHP installations not used
RPS:
Not eligible.
EERS:
CHP installations not used to
comply with the RPS may be
counted as energy savings.
14
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
to comply with the RPS may
be counted as energy
savings.
Arkansas
X
EERS:
Unspecified technologies;
CHP may qualify, subject to
approval.
EERS:
Unspecified technologies;
CHP may qualify, subject to
approval.
EERS:
Unspecified technologies;
CHP may qualify, subject to
approval.
California
X
X
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
Colorado
X
X
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible (defined as "recycled
energy").
Systems must have a
nameplate capacity of 15
MW or less and convert the
otherwise lost energy from
the heat from exhaust stacks
or pipes to electricity and not
combust additional fossil
fuel.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
15
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
Connecticut
X
X
RPS/EERS (combined
standard):
Eligible under separate tier
as a Class III Resource.
Must be installed on or after
January 1, 2006, and have
a minimum operating
efficiency of 50 percent.
Electricity savings from
conservation and load
management programs that
started on or after January
1, 2006.
RPS/EERS (combined
standard):
Eligible with qualifying
fuel/technology, and eligible
under separate tier as a
Class III Resource.
Must be installed on or after
January 1, 2006, and have
a minimum operating
efficiency of 50 percent.
Electricity savings from
conservation and load
management programs that
started on or after January
1, 2006.
RPS/EERS (combined
standard):
Eligible under separate tier
as a Class III Resource.
Must recover waste heat or
pressure from commercial
and industrial processes,
and be installed on or after
April 1, 2007.
Electricity savings from
conservation and load
management programs that
started on or after January 1,
2006.
Delaware
X
X
RPS:
Not eligible.
EERS:
Eligible.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
Eligible.
RPS:
Not eligible.
EERS:
Eligible (defined as "recycled
energy").
Recycled energy must be
from a modification of an
industrial or commercial
system that commenced
operation before July 29,
2009.
District of Columbia
X
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Not eligible.
16
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
Florida
~
EERS:
Unspecified technologies;
CHP may qualify, subject to
approval.
EERS:
Unspecified technologies;
CHP may qualify, subject to
approval.
EERS:
Unspecified technologies;
CHP may qualify, subject to
approval.
Hawaii
X
X
RPS:
Eligible, excluding fossil-
fueled qualifying facilities
that sell electricity to electric
utility companies and
central station power
projects.
Will fall under EERS on
January 1, 2015.
EERS:
CHP will be eligible under
the EERS starting in 2015.
Until then, energy efficiency
savings from CHP are
included under the RPS.
RPS:
Eligible.
EERS:
CHP will be eligible under
the EERS starting in 2015.
Until then, energy efficiency
savings from CHP are
included under the RPS.
RPS:
Not explicitly included, but
standard includes "use of
rejected heat from co-
generation and combined
heat and power systems."
EERS:
CHP will be eligible under
the EERS starting in 2015.
Until then, energy efficiency
savings from CHP are
included under the RPS.
Illinois
X
X
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Waste heat from industrial
processes is specifically
called out as eligible under
the inclusion of "other such
alternative sources of
environmentally preferable
energy."
EERS:
CHP may qualify as
custom/other technology,
17
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
subject to approval.
Indiana
~
X
RPS:
Eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible.
Must be waste heat from
industrial processes used for
heating or for generating
mechanical or electrical
work.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
Iowa
X
X
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
Kansas
X
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Not eligible.
Louisiana
~
RPS:
Not eligible.
RPS:
Biomass-only CHP is
eligible.
RPS:
Eligible.
Maine
X
X
RPS:
Eligible as a Class II
resource.
Must have been
RPS:
Eligible as a Class II
resource.
RPS:
Eligible.
EERS:
18
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
constructed prior to January
1, 1997, and have a
minimum efficiency of 60
percent.
EERS:
Unspecified technologies
are eligible (CHP may
qualify).
Unspecified technologies are
eligible (CHP may qualify).
EERS:
Unspecified technologies
are eligible (CHP may
qualify).
Maryland
X
X
RPS:
Not eligible.
EERS:
Unspecified technologies
are eligible (CHP may
qualify).
RPS:
Eligible with qualifying
fuel/technology.
EERS:
Unspecified technologies
are eligible (CHP may
qualify).
RPS:
Not eligible.
EERS:
Unspecified technologies are
eligible (CHP may qualify).
Massachusetts
X
X
X
RPS:
Not eligible.
EERS:
Eligible. CHP targets part of
Green Communities Act.
APS:
Eligible.
Must have a start date after
January 1, 2008.
Both electric and thermal
energy qualify.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
Eligible. CHP targets part of
Green Communities Act.
APS:
Eligible.
Must have a start date after
January 1, 2008.
RPS:
Not eligible.
EERS:
Eligible. CHP targets part of
Green Communities Act.
APS:
Massachusetts is
considering a rulemaking to
provide credit for WHP
19
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
Net C02 emissions rate
can't exceed 890 Ibs/MWh.
Michigan
X
X
RPS:
Eligible. Advanced cleaner
energy facilities and energy
optimization schemes
(which include CHP) qualify
under the RPS/EERS.
Must have a Vintage
Eligibility of Oct 6, 2008, or
later.
For industrial CHP, both the
thermal and electric energy
qualify.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible. Advanced cleaner
energy facilities and energy
optimization schemes
(which include CHP) qualify
under the RPS/EERS.
Must have a Vintage
Eligibility of Oct 6, 2008, or
later.
For Industrial CHP, both the
thermal and electric energy
qualify.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible. Advanced cleaner
energy facilities and energy
optimization schemes (which
include CHP) qualify under
the RPS/EERS.
Must have a Vintage
Eligibility of Oct 6, 2008, or
later.
For Industrial CHP, both the
thermal and electric energy
qualify.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
Minnesota
X
X
RPS:
Not eligible.
EERS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
Not eligible
RPS:
Not eligible.
EERS:
Eligible ('Waste heat
recovery converted into
electricity").
Missouri
X
~
RPS:
Not eligible.
EERS:
Unspecified technologies
RPS:
Eligible with qualifying
fuel/technology.
EERS:
RPS:
Not eligible.
EERS:
Unspecified technologies are
20
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
are eligible (CHP may
qualify).
Unspecified technologies
are eligible (CHP may
qualify).
eligible (CHP may qualify).
Montana
X
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Not eligible.
Nebraska
~
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Not eligible.
Nevada
X
X
RPS:
Not eligible.
EERS:
Eligible. Energy-efficiency
savings can meet up to a
quarter of the RPS in any
given year.
Portfolio Energy Credits are
used for compliance, and
energy efficiency gets a
credit multiplier of 1.05 (i.e.,
# of credits = number of
kWh saved x 1.05).
RPS:
Eligible with qualifying
fuel/technology.
EERS:
Eligible. Energy-efficiency
savings can meet up to a
quarter of the RPS in any
given year.
Portfolio Energy Credits are
used for compliance, and
energy efficiency gets a
credit multiplier of 1.05 (i.e.,
# of credits = number of
kWh saved x 1.05).
RPS:
Eligible.
Must have nameplate
capacity of 15 MW or less
and startup date on/after
January 1, 2005.
EERS:
Eligible. Energy-efficiency
savings can meet up to a
quarter of the RPS in any
given year.
Portfolio Energy Credits are
used for compliance, and
energy efficiency gets a
credit multiplier of 1.05 (i.e.,
# of credits = number of kWh
saved x 1.05).
New Hampshire
X
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Not eligible.
21
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
Legislation enacted in 2012
now allows for "useful
thermal energy," defined as
renewable energy delivered
from an eligible renewable
resource that can be
metered and is delivered to
an end-user in the form of
direct heat, steam, hot
water, or other thermal form
and for which fuel or
electricity would otherwise
be consumed.
New Jersey
X
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Not eligible.
New Mexico
X
X
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
New York
X
X
RPS:
Digester-gas-fired CHP
and fuel cells using any
fuel type are eligible under
CST.
Must be greater than 50
kW.
RPS:
Eligible under CST and with
any qualifying
fuel/technology.
Must be greater than 50
kW.
EERS:
RPS:
Not eligible.
EERS:
Unspecified technologies are
eligible (CHP may qualify).
22
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
EERS:
Unspecified technologies
are eligible (CHP may
qualify).
Unspecified technologies
are eligible (CHP may
qualify).
North Carolina
X
X
RPS/EERS (combined
standard):
Eligible.
Up to 25 percent of the
requirement may be met
through energy-efficiency
technologies, including CHP
systems powered by
nonrenewable fuels.
Thermal energy that is not
used to generate electric
power earns equivalent
RECs based on the end-
use energy value of
electricity of 3,412 Btu per
kWh. 1 REC = 1 MWh.
1 MWh of electricity avoided
through efficiency measure
= 1 REC.
Must be installed on/after
January 1, 2008.
RPS/EERS (combined
standard):
Eligible with qualifying
fuel/technology.
Up to 25 percent of the
requirement may be met
through energy-efficiency
technologies, including
CHP.
Thermal energy that is not
used to generate electric
power earns equivalent
RECs based on the end-
use energy value of
electricity of 3,412 Btu per
kWh. 1 REC = 1 MWh.
1 MWh of electricity avoided
through efficiency measure
= 1 REC.
Must be installed on/after
January 1, 2008.
RPS/EERS (combined
standard):
Eligible.
Waste heat must come from
renewables.
Must be installed on/after
January 1, 2008.
North Dakota
~
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Eligible under recycled
energy definition.
Ohio
X
X
EERS:
Eligible.
EERS:
Eligible.
EERS:
Eligible.
23
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
Must be installed or
retrofitted on/after
September 9, 2012.
APS:
Eligible.
Must have efficiency of at
least 60 percent.
At least 20percent of
system output must be in
the form of useful thermal
energy.
Must be installed or
retrofitted on/after
September 9, 2012.
APS:
Eligible with qualifying
fuel/technology.
Must be installed or
retrofitted on/after
September 9, 2012.
APS:
Eligible.
Oklahoma
~
RPS
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Up to 25 percent of the
renewable energy goal can
be met with demand-side
management (DSM) and
energy efficiency.
WHP qualifies as a DSM
measure. DSM includes
industrial byproduct
technologies, consisting of
using a byproduct from an
industrial process, including
reusing energy from exhaust
gases or other
manufacturing byproducts
that are used in the direct
production of electricity at
the facility of a customer.
Oregon
X
RPS:
Not eligible.
RPS:
Eligible with qualifying
RPS:
Not eligible.
24
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
fuel/technology.
Pennsylvania
X
X
EERS:
Unspecified technologies
are eligible (CHP may
qualify).
APS:
Eligible.
Tier II resources include
new and existing DSM and
DG systems, including
CHP.
EERS:
Unspecified technologies
are eligible (CHP may
qualify).
APS:
Eligible.
CHP with eligible
fuel/technology counts as
Tier I resource.
EERS:
Unspecified technologies are
eligible (CHP may qualify).
APS:
Eligible.
Tier II resources include new
and existing DSM and DG
systems, including WHP.
Rhode Island
X
X
RPS:
Not eligible.
EERS:
Eligible.
Utilities must establish
energy-efficiency
procurement plans that
include target percentages
for CHP.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
Eligible.
Utilities must establish
energy-efficiency
procurement plans that
include target percentages
for CHP.
RPS:
Not eligible.
EERS:
Eligible.
Utilities must establish
energy-efficiency
procurement plans that
include target percentages
for CHP.
South Dakota
~
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Eligible (defined as "recycled
energy").
Texas
X
X
RPS:
Not eligible.
EERS:
Unspecified technologies
RPS:
Eligible with qualifying
fuel/technology.
EERS:
RPS:
Not eligible.
EERS:
Unspecified technologies are
25
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
are eligible (CHP may
qualify).
Unspecified technologies
are eligible (CHP may
qualify).
eligible (CHP may qualify).
Utah
~
RPS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
RPS:
Eligible.
Vermont
~
X
RPS:
Eligible
Must have design efficiency
of >65 percent
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS
Eligible with qualifying
fuel/technology.
Must have design system
efficiency of at least 65
percent.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Not specified.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
Virginia
~
~
RPS:
Not eligible.
EERS:
Not eligible.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
Not eligible.
RPS:
Not eligible.
EERS:
Not eligible.
Washington
X
X
RPS:
Not eligible for renewable
targets, but utilities also
required to "pursue all
available conservation that
is cost-effective, reliable,
and feasible." High-
efficiency cogeneration
RPS:
Eligible with qualifying
fuel/technology.
DG with output of 5 MW or
less may be counted as
double the facility's
electrical output under
certain conditions.
RPS:
Not eligible for renewable
targets, but utilities also
required to "pursue all
available conservation that is
cost-effective, reliable, and
feasible." High-efficiency
cogeneration owned and
26
-------
Table 1: Summary of CHP Eligibility
Key:
X - Mandatory Standard
~ - Voluntary Standard or Goal
State
Portfolio Standard
CHP Eligibility
RPS
EERS
APS
Typical CHP
Renewably Fueled
WHP
owned and used by a retail
electric customer to meet its
own needs qualifies.
Thermal output must be at
least 33 percent of total
energy output, and system
must be in place on/after
March 31, 1999.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
used by a retail electric
customer to meet its own
needs qualifies.
Thermal output must be at
least 33 percent of total
energy output, and system
must be in place on/after
March 31, 1999.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
West Virginia
X
APS:
Eligible.
Some fossil fuels, including
natural gas, are eligible as
"alternative energy
resources."
Alternative energy resource
credit: 1 credit=1 MWh.
APS:
Eligible with qualifying
fuel/technology.
Renewable energy resource
credit: 2 credits=1 MWh.
APS:
Eligible (defined as "recycled
energy" and included as an
eligible "renewable energy
resource").
Renewable energy resource
credit: 2 credits=1 MWh.
Wisconsin
X
X
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Eligible with qualifying
fuel/technology.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
RPS:
Not eligible.
EERS:
CHP may qualify as
custom/other technology,
subject to approval.
27
-------
V. Additional Resources
1. American Council for an Energy-Efficient Economy (ACEEE). "Energy Efficiency
Resource Standards (EERS)." www.aceee.org/toDics/eers.
2. Barbose, Galen, Charles Goldman, and Jeff Schlegel. "The Shifting Landscape of
Ratepayer-Funded Energy Efficiency in the U.S." October 2009. Lawrence Berkeley
National Laboratory, http://eetd.lbl.aov/ea/ems/reports/lbnl-2258e.pdf.
3. Brown, Mathew. "Brief #9, "The Energy Efficiency Resource Standard: Observations on
an Emerging State Policy." Alliance to Save Energy.
4. Center for Climate and Energy Solutions (C2ES). Energy Efficiency Standards and
Targets, www.c2es.ora/us-states-reaions/policv-maps/enerav-efficiencv-standards.
5. Center for Climate and Energy Solutions (C2ES). Renewable & Alternative Energy
Portfolio Standards, www.c2es.org/us-states-regions/policv-maps/renewable-energy-
standards.
6. Clean Energy States Alliance, www.cleaneneravstates.org/resource-librarv/.
7. Database of State Incentives for Renewables & Efficiency (DSIRE). www.dsireusa.org/.
8. Elliott, R. Neal, et al. "CHP Savings and Avoided Emissions in Portfolio Standards." 2009
American Council for an Energy-Efficient Economy (ACEEE) Summer Study on Energy
Efficiency in Industry, www.aceee.org/proceedings-paper/ss09/panel04/paper11.
9. Heeter, Jenny and Lori Bird. "Including Alternative Resources in State Renewable
Portfolio Standards: Current Design and Implementation Experience." November 2012.
National Renewable Energy Laboratory (NREL). www.nrel.gov/docs/fv13osti/55979.pdf.
10. Kolwey, Neil. "Calculating Net Electricity Savings from Utility-Supported CHP Projects."
August 2012. Southwest Energy Efficiency Project.
http://swenergv.org/publications/documents/CHP%20Electricitv%20Savings%20for%20
Utilities%20-%20August%202012.pdf.
11. Nadel, Steve. "Energy Efficiency Resource Standards: Experience and
Recommendations." March 2006. ACEEE Report E063. www.aceee.org/research-
report/e063.
12. Sciortino, Michael, et al. "Energy Efficiency Resource Standards: A Progress Report on
State Experience." June 2011. American Council for an Energy-Efficient Economy
(ACEEE). www.aceee.org/sites/default/files/publications/researchreports/u112.pdf.
13. Wiser, Ryan and Galen Barbose. "Renewable Portfolio Standards in the United States: A
Status Report with Data Through 2007." April 2008. Lawrence Berkeley National
Laboratory, http://eetd.lbl.gov/ea/ems/reports/lbnl-154e.pdf.
Last Updated: January 4,2013
ftti mme iniotuMthm, (ttnhu I;
SeS
CHP
Weeharika Naik-Dhtingel
U.S. Environmental Protection Agency
Phone: 202-343-9553
e-mail; naik-dhungei.neehsiika&epa.gov
28
------- |