State CHP Policy

CHP POLICY AT THE STATE LEVEL

USCHPA has begun acquiring public comments submitted by companies and nonprofit organizations in state regulatory or legislative proceedings that impact CHP. It is our hope that this site acts as a resource to others interested in getting involved in CHP-related state actions. Much activity at the state level is led by the Regional CHP Initiatives, and they are your best source for further details on states within their region.

For general information on Recommended Efficiency Levels to use in CHP Policies, please visit our Federal Policy page. USCHPA member, the American Council for an Energy Efficient Economy (ACEEE) maintains a state-by-state list of CHP incentives and policies.

*The US Combined Heat and Power Association takes no responsibility for the content or the reproduction and posting of these documents. They are provided for information only to interested parties.

Renewable Portfolio Standards

Standby Rates

DG Emission Rules/Permitting

Interconnection

Blackout-related

Renewable Portfolio Standards (RPS)

CALIFORNIA

Click here to access all formal documents filed with the California Public Utilities Commission (CPUC) regarding the Renewable Portfolio Standard rulemaking, R.01-10-024. Parties have been providing testimony on the Investor Owned Utility (IOU) Long-term Procurement Plans. Cal ISO released its final report, 2004 Reliability Must Run Technical Study of the ISO-Controlled Grid in May 2003, as an appendix to its testimony to CPUC on IOU Long Procurement Plans to Rulemaking R.01-10-024, the RPS.

MASSACHUSETTS

Northeast CHP Initiative and others have been suggesting legislative modifications to the Mass. State Electricity Restructuring Act to extend the list of eligible technologies in the Massachusetts Renewable Energy Trust fund (MRET) to include "RECYCLED ENERGY."

The term “recycled energy” means (1) exhaust heat resulting from any industrial process; (2) industrial tail gas that would otherwise be flared, incinerated or vented; or (3) energy extracted from a pressure drop in any gas, excluding any pressure drop to a condenser that subsequently vents the resulting heat.

Letter to State Legislature Energy Committee, submitted by Sean Casten, Turbosteam and Policy Chair of NE CHPI. (May 2003)
SAMPLE LETTER OF SUPPORT for inclusion of "recycled energy"

NEW YORK

In February 2003, the New York Public Service Commission instituted a proceeding, Case No. 03-E-0188, to develop and implement a renewable portfolio standard for electric energy retailed in the state to address increasing concerns with the climate effects of, and over-dependence on, fossil-fired generation. Members of the Northeast CHP Initiative have been participating in the process.

Letter on cost-benefit analysis of RPS to New York State Department of Public Service, submitted by Katherine Kennedy, NRDC on behalf of Renewable Energy Technology and Environmental Coalition (RETEC) (May 2003)

Letter on Need for an Economic Analysis in the RPS Proceeding to NYDPS, submitted by Keith O'Neal, E Cubed, on behalf of Clean Technology Coalition (CTC) (May 2003)

Clean Technologies Coalition Eligibility Proposal based on Technology Attributes Measurement, signatories include Nuvera Fuel Cells, The E Cubed Company, Hess Microgen, RealEnergy, The City of New York, Niagara Mohawk, and KeySpan (June 2003)

Letter for inclusion of emerging DG technologies in RPS to NYDPS, submitted by Rudy Stegemoeller, Plug Power (March 2003)

Standby Rates

Standby rates are a major component of the competitive environment that the CHP and DG community faces. Implementing rates that are both fair and rational is critical to the long-term success of this innovative energy option, as well as for realization of all of the benefits that CHP can offer. If standby rates are implemented incorrectly, it can create a disincentive for the use on onsite generation like CHP.

NEW YORK

New York State Public Service Commission voted to approve new, standby rates for utilities' standby electric delivery service to customers that produce some of their own electricity through on-site generation and standby service to independent wholesale electric generating plants that import electricity as "station power" to support their operations. View PSC Press Release (July 23, 2003).

The NY State Public Service Commission (NYPSC) is investigating the reasonableness of rates, terms and conditions for the provision of electric standby service. The Northeast CHP Initiative has been actively following and involved in standby rate issues, with regard to Case No. 02-E-0780 and Case No. 02-E-0781.

NY Standby Rate Design documents, assembled by the E-Cubed Company.

Comments to NYPSC on ConEd Standby Rates, submitted by Ruben Brown, E Cubed (April 2003)

DG Emission Rules/Permitting

Some states have enacted DG emission regulations and others are investigating the idea of either addressing distributed generators that in the past were not subject to permitting, or to change the way regulations are written. The USCHPA and regional CHP initiatives would like any permit to reflect the added value of CHP technologies and to be designed on an output-basis.

NEW JERSEY

NJ has a pending regulation to create a self-generation program in the state modeled after California's. Comments submitted by Encorp, working with the Northeast CHP Initiative (Feb 2004)

NEW YORK

Comments on the NY DG Emissions Rule to the Department of Environmental Conservation (NYSDEC), jointly submitted by ACEEE, Capstone Turbine Corp, Coast Intelligen Inc, Hess Microgen, Invensys, RealEnergy, and TurboSteam Corp (May 1, 2003)

CALIFORNIA

The California Air Resources Board (CARB) established a DG certification program using output-based emissions standards for NOx, CO, VOCs, and particulate matter. The regulation went into effect on October 4, 2002, and applies to units that had otherwise been exempt from air pollution control requirements.

Comments on Proposed Heat Recovery Standards to CA PUC, submitted by NRDC and ACEEE (May 2001)

TEXAS

Effective June 1, 2001, Texas established a standard permit for NOx emissions from DG that would encourage the most energy-efficient configurations, such as combined heat and power. The standard permit was designed to be an expedited method of authorizing clean electric generating units in the state and to provide a streamlined preconstruction authorization mechanism for DG not prohibited by other state or federal permitting statute or regulation. The standard is output-based (in lbs/MWh) and establishes pre-certification requirements for a power system.

Comments on TX DG Emissions Rule to the TNRCC, submitted by ACEEE (Dec 2000)

Interconnection

The Interstate Renewable Energy Council's mission is to accelerate the sustainable utilization of renewable energy sources and technologies in and through state and local government and community activities. This site features information by state on interconnection.

ILLINOIS

On June 30, 2003, a variety of distributed energy organizations jointly submitted a letter to the Illinois Commerce Commission requesting that the ICC initiate a rulemaking to establish statewide interconnection standards and conditions for distributed energy resources in Illinois. View rulemaking request to ICC.

The signatories represent a wide range of energy companies and organizations in IL and expressed concern about continuing state barriers to interconnection including:

Lack of standardized interconnection standards and procedures;

Unclear or discriminatory treatment of distributed generation rates;

Incomplete or non-existent interconnection study fees, schedules and deadlines.

CONNECTICUT

The state Department of Public Utility Control (DPUC) have an open Docket No. 03-01-15 for a distributed generation interconnect standard with Public Comments due May 30, 2003. Certain NE CHPI members submitted comments. This docket is based on a DPUC Investigation into Possible Shortages of Electricity in Southwest Connecticut during Summer Periods of Peak Demand, in which the DPUC stated that it would conduct an investigation into the propriety of formalizing DG interconnection requirements to electric distribution systems.

NE CHP Initiative Comments, filed by Ingersoll Rand in response to Connecticut's request for guidance on developing a standard interconnection policy in the state (Aug 26, 2003)

NE CHP Initiative Comments filed by RealEnergy

Additional Public Comments filed are available online at DPUC through a Docket Search.

In 2002, the NE CHPI also submitted comments in response to Connecticut's "DPUC Investigation of the FERC's ANOPR Entitled Standardization of Small Generator Interconnection Agreements and Procedures," Docket 02-08-20. In its comments, NECHPI commended DPUC for taking this effort to better understand the issues associated with the interconnection of distributed resources to the electric power grid. Additional Public Comments filed are available online at DPUC through a Docket Search.

MASSACHUSETTS

Through DTE 02-38, the Mass. Division of Telecommunications and Energy (DTE) ordered the establishment of a collaborative forum--the Massachusetts DG Collaborative--to examine DG issues, and how to reconcile DG with the safety and reliability concerns associated with interconnection. In July 2002, the Northeast CHP Initiative submitted a response this order outlining suggested issues for the Collaborative to address. The following is the Collaborative's consensus-based report on state interconnection issues and subsequent filing.

REPORT on Proposed Uniform Standards for Interconnecting Distributed Generation in MA, submitted to Department of Telecommunications and Energy (DTE) by Massachusetts DG Collaborative (March 3, 2003)

Interconnection TARIFF Filing submitted to DTE by MA DG Collaborative (May 15, 2003)

In April 2002, Massachusetts passed its statute calling for renewable portfolio standard (RPS) and stipulated that any biomass plants must achieve both the "low-emission" and "advanced power conversion technology" requirements of the statute. The advanced power conversion technology was not defined in the statute, and the Massachusetts Division of Energy Resources (DOER) set out to clarify this requirement. After a lengthy process to clarify this ambiguity, the DOER announced on June 2, 2006 its intention to revise the regulations for RPS. A Public Hearing on the proposed revisions, as well as on the concurrently issued draft Guideline on the RPS Eligibility of Biomass Generation Units, was held in Boston in June. Initial written comments were requested by July 6; and final written comments by July 18, 2006.

For the draft guidelines, go to http://www.mass.gov/doer/rps/rps_biom_guideline.pdf

For more information on the Massachusetts RPS, go to

http://www.mass.gov/doer/rps/

For a good reference report on biomass plants, go to:

http://www.nrel.gov/docs/fy00osti/26946.pdf

For a good reference on biomass and other opportunity fuels for CHP, go to:

http://www.eere.energy.gov/de/pdfs/chp_opportunityfuels.pdf

Blackout-related

ILLINOIS

Midwest CHP Initiative provided written testimony to the Lt. Governor's Special Task Force (Blackout) on "Recycled Energy: an Important Component of Illinois's Energy Future." (Oct 23, 2003)

MORE RESOURCES

Visit the REGIONAL CHP INITIATIVES page for more details on the regional regulatory efforts. The hottest region right now is the Northeast.

To learn more about how these regulatory policies and others can impact CHP, download the CHP Roadmap document.



CHP POLICY AT THE STATE LEVEL USCHPA has begun acquiring public comments submitted by companies and nonprofit organizations in state regulatory or legislative proceedings that impact CHP. It is our hope that this site acts as a resource to others interested in getting involved in CHP-related state actions. Much activity at the state level is led by the Regional CHP Initiatives, and they are your best source for further details on states within their region. For general information on Recommended Efficiency Levels to use in CHP Policies, please visit our Federal Policy page. USCHPA member, the American Council for an Energy Efficient Economy (ACEEE) maintains a state-by-state list of CHP incentives and policies. *The US Combined Heat and Power Association takes no responsibility for the content or the reproduction and posting of these documents. They are provided for information only to interested parties. Renewable Portfolio Standards Standby Rates DG Emission Rules/Permitting Interconnection Blackout-related Renewable Portfolio Standards (RPS) CALIFORNIA Click here to access all formal documents filed with the California Public Utilities Commission (CPUC) regarding the Renewable Portfolio Standard rulemaking, R.01-10-024. Parties have been providing testimony on the Investor Owned Utility (IOU) Long-term Procurement Plans. Cal ISO released its final report, 2004 Reliability Must Run Technical Study of the ISO-Controlled Grid in May 2003, as an appendix to its testimony to CPUC on IOU Long Procurement Plans to Rulemaking R.01-10-024, the RPS. MASSACHUSETTS Northeast CHP Initiative and others have been suggesting legislative modifications to the Mass. State Electricity Restructuring Act to extend the list of eligible technologies in the Massachusetts Renewable Energy Trust fund (MRET) to include "RECYCLED ENERGY." The term “recycled energy” means (1) exhaust heat resulting from any industrial process; (2) industrial tail gas that would otherwise be flared, incinerated or vented; or (3) energy extracted from a pressure drop in any gas, excluding any pressure drop to a condenser that subsequently vents the resulting heat. Letter to State Legislature Energy Committee, submitted by Sean Casten, Turbosteam and Policy Chair of NE CHPI. (May 2003) SAMPLE LETTER OF SUPPORT for inclusion of "recycled energy" NEW YORK In February 2003, the New York Public Service Commission instituted a proceeding, Case No. 03-E-0188, to develop and implement a renewable portfolio standard for electric energy retailed in the state to address increasing concerns with the climate effects of, and over-dependence on, fossil-fired generation. Members of the Northeast CHP Initiative have been participating in the process. Letter on cost-benefit analysis of RPS to New York State Department of Public Service, submitted by Katherine Kennedy, NRDC on behalf of Renewable Energy Technology and Environmental Coalition (RETEC) (May 2003) Letter on Need for an Economic Analysis in the RPS Proceeding to NYDPS, submitted by Keith O'Neal, E Cubed, on behalf of Clean Technology Coalition (CTC) (May 2003) Clean Technologies Coalition Eligibility Proposal based on Technology Attributes Measurement, signatories include Nuvera Fuel Cells, The E Cubed Company, Hess Microgen, RealEnergy, The City of New York, Niagara Mohawk, and KeySpan (June 2003) Letter for inclusion of emerging DG technologies in RPS to NYDPS, submitted by Rudy Stegemoeller, Plug Power (March 2003) Standby Rates Standby rates are a major component of the competitive environment that the CHP and DG community faces. Implementing rates that are both fair and rational is critical to the long-term success of this innovative energy option, as well as for realization of all of the benefits that CHP can offer. If standby rates are implemented incorrectly, it can create a disincentive for the use on onsite generation like CHP. NEW YORK New York State Public Service Commission voted to approve new, standby rates for utilities' standby electric delivery service to customers that produce some of their own electricity through on-site generation and standby service to independent wholesale electric generating plants that import electricity as "station power" to support their operations. View PSC Press Release (July 23, 2003). The NY State Public Service Commission (NYPSC) is investigating the reasonableness of rates, terms and conditions for the provision of electric standby service. The Northeast CHP Initiative has been actively following and involved in standby rate issues, with regard to Case No. 02-E-0780 and Case No. 02-E-0781. NY Standby Rate Design documents, assembled by the E-Cubed Company. Comments to NYPSC on ConEd Standby Rates, submitted by Ruben Brown, E Cubed (April 2003) DG Emission Rules/Permitting Some states have enacted DG emission regulations and others are investigating the idea of either addressing distributed generators that in the past were not subject to permitting, or to change the way regulations are written. The USCHPA and regional CHP initiatives would like any permit to reflect the added value of CHP technologies and to be designed on an output-basis. NEW JERSEY NJ has a pending regulation to create a self-generation program in the state modeled after California's. Comments submitted by Encorp, working with the Northeast CHP Initiative (Feb 2004) NEW YORK Comments on the NY DG Emissions Rule to the Department of Environmental Conservation (NYSDEC), jointly submitted by ACEEE, Capstone Turbine Corp, Coast Intelligen Inc, Hess Microgen, Invensys, RealEnergy, and TurboSteam Corp (May 1, 2003) CALIFORNIA The California Air Resources Board (CARB) established a DG certification program using output-based emissions standards for NOx, CO, VOCs, and particulate matter. The regulation went into effect on October 4, 2002, and applies to units that had otherwise been exempt from air pollution control requirements. Comments on Proposed Heat Recovery Standards to CA PUC, submitted by NRDC and ACEEE (May 2001) TEXAS Effective June 1, 2001, Texas established a standard permit for NOx emissions from DG that would encourage the most energy-efficient configurations, such as combined heat and power. The standard permit was designed to be an expedited method of authorizing clean electric generating units in the state and to provide a streamlined preconstruction authorization mechanism for DG not prohibited by other state or federal permitting statute or regulation. The standard is output-based (in lbs/MWh) and establishes pre-certification requirements for a power system. Comments on TX DG Emissions Rule to the TNRCC, submitted by ACEEE (Dec 2000) Interconnection The Interstate Renewable Energy Council's mission is to accelerate the sustainable utilization of renewable energy sources and technologies in and through state and local government and community activities. This site features information by state on interconnection. ILLINOIS On June 30, 2003, a variety of distributed energy organizations jointly submitted a letter to the Illinois Commerce Commission requesting that the ICC initiate a rulemaking to establish statewide interconnection standards and conditions for distributed energy resources in Illinois. View rulemaking request to ICC. The signatories represent a wide range of energy companies and organizations in IL and expressed concern about continuing state barriers to interconnection including: Lack of standardized interconnection standards and procedures; Unclear or discriminatory treatment of distributed generation rates; Incomplete or non-existent interconnection study fees, schedules and deadlines. CONNECTICUT The state Department of Public Utility Control (DPUC) have an open Docket No. 03-01-15 for a distributed generation interconnect standard with Public Comments due May 30, 2003. Certain NE CHPI members submitted comments. This docket is based on a DPUC Investigation into Possible Shortages of Electricity in Southwest Connecticut during Summer Periods of Peak Demand, in which the DPUC stated that it would conduct an investigation into the propriety of formalizing DG interconnection requirements to electric distribution systems. NE CHP Initiative Comments, filed by Ingersoll Rand in response to Connecticut's request for guidance on developing a standard interconnection policy in the state (Aug 26, 2003) NE CHP Initiative Comments filed by RealEnergy Additional Public Comments filed are available online at DPUC through a Docket Search. In 2002, the NE CHPI also submitted comments in response to Connecticut's "DPUC Investigation of the FERC's ANOPR Entitled Standardization of Small Generator Interconnection Agreements and Procedures," Docket 02-08-20. In its comments, NECHPI commended DPUC for taking this effort to better understand the issues associated with the interconnection of distributed resources to the electric power grid. Additional Public Comments filed are available online at DPUC through a Docket Search. MASSACHUSETTS Through DTE 02-38, the Mass. Division of Telecommunications and Energy (DTE) ordered the establishment of a collaborative forum--the Massachusetts DG Collaborative--to examine DG issues, and how to reconcile DG with the safety and reliability concerns associated with interconnection. In July 2002, the Northeast CHP Initiative submitted a response this order outlining suggested issues for the Collaborative to address. The following is the Collaborative's consensus-based report on state interconnection issues and subsequent filing. REPORT on Proposed Uniform Standards for Interconnecting Distributed Generation in MA, submitted to Department of Telecommunications and Energy (DTE) by Massachusetts DG Collaborative (March 3, 2003) Interconnection TARIFF Filing submitted to DTE by MA DG Collaborative (May 15, 2003) In April 2002, Massachusetts passed its statute calling for renewable portfolio standard (RPS) and stipulated that any biomass plants must achieve both the "low-emission" and "advanced power conversion technology" requirements of the statute. The advanced power conversion technology was not defined in the statute, and the Massachusetts Division of Energy Resources (DOER) set out to clarify this requirement. After a lengthy process to clarify this ambiguity, the DOER announced on June 2, 2006 its intention to revise the regulations for RPS. A Public Hearing on the proposed revisions, as well as on the concurrently issued draft Guideline on the RPS Eligibility of Biomass Generation Units, was held in Boston in June. Initial written comments were requested by July 6; and final written comments by July 18, 2006. For the draft guidelines, go to http://www.mass.gov/doer/rps/rps_biom_guideline.pdf For more information on the Massachusetts RPS, go to http://www.mass.gov/doer/rps/ For a good reference report on biomass plants, go to: http://www.nrel.gov/docs/fy00osti/26946.pdf For a good reference on biomass and other opportunity fuels for CHP, go to: http://www.eere.energy.gov/de/pdfs/chp_opportunityfuels.pdf Blackout-related ILLINOIS Midwest CHP Initiative provided written testimony to the Lt. Governor's Special Task Force (Blackout) on "Recycled Energy: an Important Component of Illinois's Energy Future." (Oct 23, 2003)			MORE RESOURCES Visit the REGIONAL CHP INITIATIVES page for more details on the regional regulatory efforts. The hottest region right now is the Northeast. To learn more about how these regulatory policies and others can impact CHP, download the CHP Roadmap document.