Order Instituting Rulemaking Implementation of the Waste Heat and Carbon Emissions Reduction Act

Docket Number: 08-WHCE-1

Background

Assembly Bill 1613 (Blakeslee, Chapter 713, Statutes of 2007 - PDF file) and amended by Assembly Bill 2791 (Blakeslee, Chapter 253, Statutes of 2008 - PDF file) directed the California Energy Commission, the Public Utilities Commission (CPUC), and the Air Resources Board (ARB) to implement the Waste Heat and Carbon Emissions Reduction Act. The Act is designed to encourage the development of new combined heat and power (CHP) systems in California with a generating capacity of not more than 20 megawatts.

The Act directs the CPUC, publicly owned electric utilities, and the Energy Commission to establish policies and procedures for the purchase of electricity from eligible CHP systems. It also directs the ARB to report on the reduction in emissions of greenhouse gases resulting from the increase of new electricity generation from CHP.

The Act specifically directs the Energy Commission to adopt by January 1, 2010, guidelines establishing technical criteria for eligibility of CHP systems for programs to be developed by the CPUC and publicly owned utilities. The CPUC is also directed to establish (1) a standard tariff for the sale of electricity to electricity corporations for delivery to the electrical grid and (2) a "pay as you save" pilot program requiring electricity corporations to finance the installation of qualifying CHP systems by nonprofit and government entities.

Section 2843 of the Act provides that the Energy Commission's guidelines require that CHP systems:

  • Be designed to reduce waste energy.
  • Have a minimum efficiency of 60 percent.
  • Have NOx emissions of no more than 0.07 pounds per megawatt-hour.
  • Be sized to meet the eligible customer generation thermal load.
  • Operate continuously in a manner that meets the expected thermal load and optimizes the efficient use of waste heat
  • Be cost effective, technologically feasible, and environmentally beneficial.

COMMISSION MODIFIED FINAL GUIDELINES for Certification of Combined Heat and Power Systems Pursuant to the Waste Heat And Carbon Emissions Reduction Act, Public Utilities Code, Section 2840 Et Seq. - Publication # CEC-200-2009-016-CMF-REV2. Posted: June 1, 2010. (Acrobat PDF file, 43 pages, 2.1 megabytes).

For tariff information and the CPUC's procedural history of the Act, please refer to the CHP Feed-in Tariff.

For more information, please contact:

Bryan Neff
Electricity Analysis Office
1516 Ninth Street, MS #20
Sacramento, CA 95814
Phone: 916-654-4414
E-mail: bneff@energy.ca.gov.

Proceeding Information

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