State and Local Policy Database

Additional Supportive Policies

Additional state policies and programs can support the deployment of CHP, including streamlined air permitting procedures, state technical assistance efforts, requirements to consider CHP at critical facilities, and policies that encourage the use of renewable-fueled CHP systems and other opportunity fuels and waste products.

There are currently no additional supportive policies to encourage CHP.

Last Reviewed: July 2019

Some additional supportive policies exist to encourage CHP in Alaska. The Alaska Energy Authority provides specific technical assistance and free screening analysis reports for potential CHP projects in the state. The AEA also offers two programs for which renewable-fueled CHP may be eligible (1) the Alaska Renewable Energy Fund (REF) and (2) the Rural Power System Upgrade Program (RPSU)

The REF was established by the state legislature in 2008 and extended 10 years in 2012. The fund is intended to provide assistance to utilities, independent power producers, local governments, and tribal governments for feasibility studies, reconnaissance studies, energy resource monitoring, and work related to the design and construction of eligible facilities. The fund did not receive appropriations in 2016 or 2017. 

The RPSU provides funding for power system upgrades in rural communities through Alaska. Upgrades may include efficiency improvements, powerhouse upgrades or replacements, line assessments, lines to new customers, demand-side improvements and repairs to generation and distribution systems.

The state Energy Efficiency and Conservation (EE&C) program has also funded waste heat recovery systems in isolated villages to capture exhaust heat from diesel-fueled generators for beneficial use to heat nearby public buildings.

Last Updated: July 2018

Arizona has policies to encourage the use of renewable-fueled CHP systems, waste heat to power (WHP) and biomass or biogas systems. These systems qualify for Arizona’s Renewable Energy Standard (RES) adopted by the Arizona Corporation Commission (ACC) in November 2006. The final rule expands the RES to 15% by 2025, with 30% of the renewable energy to be derived from distributed energy technologies. The standard allows for "Renewable Combined Heat and Power Systems," distributed generation systems, fueled by an eligible renewable energy resource, and produce both electricity and useful renewable process heat. Both the electricity and renewable process heat may be used to meet the standard’s Distributed Renewable Energy Requirement.

Renewable-fueled CHP systems may also be eligible for Renewable Energy Business Tax Incentives. Signed in July of 2009, SB 1403 created tax incentives intended to draw renewable energy product manufacturers to Arizona. To be eligible, businesses must meet certain minimum requirements for the quantity and quality of new jobs created. If approved, businesses may be eligible for income tax credits or property tax incentives. These incentives will be expire on December 31, 2019.

Last Updated: August 2017

There are currently no additional supportive policies to encourage CHP.

Last Updated: July 2018

California provides CHP-focused technical assistance through the Center for Sustainable Energy and through the California Energy Commission, which provides information on air permitting, demand response with CHP, financial incentives for CHP projects, and other issues. California also provides technical assistance through the investor-owned electric utilities, which assist CHP facilities in meeting the eligibility and interconnection requirements of the standard offer contracts available through the state's CHP feed-in-tarrif and the state's implementation of PURPA.

The CA IOUs frequently issue Requests for Offers (RFOs) for Local Capacity Resources (LCRs). Most of these RFOs are targeted specifically at renewable Distributed Generation (DG) and/or energy storage resources. Some RFOs are open to qualified natural gas CHP, albeit without the preference points given to renewable resources. For example, a 2015 CPUC decision allows Southern California Gas Company to provide Distributed Energy Resources (DERS) Tariff, which offers customers a fully elective, optional tariff under which SoCalGas would design, own and maintain CHP facilities on a customer's premise and charge the customer market-based prices for the service. 

The state also has policies to encourage the use of renewable-fueled CHP systems. In addition to offering incentives through the SGIP that are higher for projects powered with renewable fuels, the CPUC also began administering a bioenergy feed-in tariff in 2014, for which bioenergy projects are eligible. State Law SB 859 requires electricity retailers to collectively procure a total of 125 MW of energy from dead/dying trees.

California launched the BioMAT Program in 2015 for bioenergy generators less than 5 MW in size. A total of 250 MWs were made available to eligible projects through fixed price standard contracts to export electricity to one of CA’s three IOUs. Heat utilization is optional, and CHP can enhance the economics when a suitable thermal host is on site or nearby. Through 2018, there have been 22 signed contracts for 33 MW of capacity statewide.

Escalation of wildfires in the State have heightened attention on grid resiliency. PG&E, which has been hardest hit by the fires, is implementing a pre-emptive de-energization program and is planning for strategic “Resiliency Zones” with local power capability. Thus far, the plans for these Zones have included capability for grid isolated operation, hardening of transmission and distribution lines, and interconnection hookups for mobile generation sources. However, CHP has not been receiving much attention.

Last Updated: August 2019

Some additional supportive policies exist to encourage CHP in Colorado. The state encourages the use of renewable-fueled CHP systems and waste heat to power (WHP), which qualify under Colorado’s Renewable Energy Standard.

In a December 2014 ruling, the Colorado Public Utilities Commission approved Public Service Company of Colorado, a subsidiary of Xcel Energy, to provide financial incentives to industrial facilities for WHP in Colorado. The ruling allows Xcel Energy to pay an incentive of about $500 per kilowatt of recycled energy over 10 years, thereby reducing the payback period on a company’s initial investment. Individual projects can be as large as 10 megawatts, and there is no minimum project size.

Colorado Energy Office has partnered with DOE's Upper-West CHP Technical Assistance Partnership to offer recycled energy and CHP no-cost feasibility assessments for a limited number of facilities and Susan Brodie of the Heat is Power Association on an outreach initiative to drive further recycled energy and CHP development in Colorado

Last Reviewed: July 2019

Some additional supportive policies exist to encourage CHP in Connecticut. In 2011, the state established streamlined air permitting procedures that simplify the permitting process for some CHP systems. The Connecticut Department of Energy and Environmental Protection (DEEP) developed a permit-by-rule (PBR) that applies to CHP systems. The PBR, which expedites permit processing time that would otherwise take about six months, became effective in 2013.

With the passage of Public Act No. 12-148 in 2012, a Microgrid Grant and Loan Pilot Program was established to support local distributed energy generation at critical facilities in the state. The program considers applications requesting financial support for the development of microgrids that are powered by CHP and other renewable energy sources. The state also passed legislation in 2016 to expand the DEEP microgrid program funding for additional types of costs associated with microgrids. Grants and loans can now be used to cover costs associated with distributed generation infrastructure.

Renewable-fueled CHP systems are eligible within the Connecticut Renewable Portfolio Standards (RPS) and can be used to meet the state’s renewable targets. Also, in 2015, the Connecticut General Assembly passed Public Act 15-152 extending the state's anaerobic digester pilot program by two years, until 2017. The program provides loans, grants, or PPAs for anaerobic digestion facilities to generate electricity and heat.

In 2017, Connecticut enacted law PA 17-144, which allows electric distribution companies to provide financial incentives for the installation of fuel cell-powered combined heat and power systems.

Connecticut CHP systems can also qualify for a discounted natural gas rate. 

Last Updated: July 2018

The state provides technical assistance focused on encouraging CHP deployment through the Delaware Division of Energy and Climate. State program staff coordinate with CHP developers and/or local energy utilities to conduct outreach, help evaluate the feasibility of potential CHP sites, and identify and support applications for state financial incentives for CHP projects.

In 2018, Delaware provided over $70,000 for research on low-emission microgrids, including those anchored by CHP. They study explored microgrids for resilience in particular.

Last Updated: August 2019

There are currently some additional supportive policies to encourage CHP in DC. The District has worked in partnership with the US DOE CHP Technical Assistance Partnerships to help garner future CHP projects. Additionally, the city's Comprehensive Energy Plan, Clean Energy DC, identified several high priority sites for district energy and microgrid systems that incorporate CHP. The District operates a program that provides technical assistance to those wanting to integrate district energy and CHP into future developments, called the "microgrid extention service". The DC Sustainable Energy Utility has also provided EM&V review of a project's potential to screen under the Societal Cost Test. Further technical assistance includes Account Management and Engineering expertise to assess further benefits to the community or site where the CHP will be installed.

DC is also developing resiliency-centered microgrids for critical infrastructure, which will use CHP. The DC Public Service Commission is also examining a potential CHP-centered microgrid pilot project which will provide resiliency.  

Last Updated: August 2019

There are currently no additional supportive policies to encourage CHP.

Last Updated: July 2018

There are few additional supportive policies to encourage CHP but the state does offer a Biomass Sales and Use Tax Exemption that can benefit CHP system owners. To qualify for the exemption, the biomass material must be utilized in the production of energy, including the production of electricity, steam, or both electricity and steam. 

Last Updated: July 2018

Some additional supportive policies exist to encourage CHP in Hawaii. The state’s RPS, which sets a goal of 100% renewable energy by 2045, encourages the use of biogas, including landfill and sewage-based digester gas, biomass, and other opportunity fuels that may be used to power CHP.

Last Updated: August 2017

There are some additional supportive policies to encourage CHP.  Through its Renewable Energy Project Bond Program, the state allows independent (non-utility) developers of renewable energy projects to request financing from the Idaho Energy Resources Authority. The Idaho Statewide Wood Energy Team, which encourages sustainable biomass utilization, also provides grants and technical assistance for biomass CHP projects. 

Last Updated: July 2018

Some additional supportive policies exist to encourage CHP in Illinois. The Illinois Department of Commerce & Economic Opportunity (DCEO) offers technical assistance by telephone and by hosting webinars to explain the technical details of CHP and build awareness of the Public Sector CHP Pilot program.

The state also considers CHP as part of its resiliency planning efforts. CHP is referenced in Illinois' Energy Assurance Report and is described as a technology that can provide electric service to a facility during emergency situations. The report also provides helpful contact information and identifies CHP system locations with GIS mapping.

Last Updated: September 2018

There are currently no additional supportive policies to encourage CHP.

Last Updated: September 2018

Some additional supportive policies exist to encourage CHP. Iowa was a participant in the National Governors' Association Policy Academy on CHP in 2012, which resulted in a CHP technical assistance program though the Iowa State Energy Office. Activities include targeted outreach events, workshops, presentations, and the development of a CHP resource guide. The Combined Heat and Power Resource Guide for Iowa provides permitting guidance, a contact directory, summary of financial incentives, and links to additional resources.

The Iowa Economic Development Authority has funded the development of Iowa Biogas Assessment Model, which is a tool that can be useful in developing CHP projects by identifying opportunities for biogas fuel inputs. With an abundance of biomass in the state, using biogas as a CHP feedstock may make the economics of certain projects more attractive.

Iowa code 567 IAC 22.1(2) allows permitting exceptions for some CHP systems, including natural gas-fired units less than 10 mmBTU/hr and units less than 1 mmBtu/hr powered by coal, fuel oil, untreated wood, untreated seeds or pellets, or other untreated vegetative materials. 

Last Reviewed: July 2019

Some additional supportive policies exist in Kansas. The state offers a Waste Heat Utilization System Property Tax Exemption to encourage the use of waste heat to power and renewable-fueled CHP systems.

Last Updated: September 2018

Kentucky has implemented a focused technical assistance effort to encourage CHP deployment in the state. As part of an ongoing multi-year stakeholder process (2014 - 2016), a variety of education and outreach activities are being conducted in partnership with the Kentucky Association of Manufacturers (KAM), Kentucky Pollution Prevention Center (KPPC), and the Southeast CHP Technical Assistance Partnership (TAP). In addition, feasibility studies are conducted to help assess the potential for CHP in public buildings and at other sites in Kentucky. CHP projects could also qualify for expedited permitting through Kentucky's EXCEL program.

The State Energy Office currently includes landfill gas to energy training during the Landfill Operator's Training program hosted through the state Division of Compliance Assistance. In addition, the State Energy Office works in partnership with the Division of Compliance Assistance on the Sustainable Spirits initiative which includes opportunities for anaerobic digestion, biogas, and CHP projects. The initiaitve is targeted to the wine and spirits industry in Kentucky.  In a partnership between the State Energy Office, the Division of Compliance Assistance and the Division of Water, wastewater treatment facility managers and operators are provided information on energy efficiency and how the use of biogas and anaerobic digestion in association with CHP projects could enhance operations at their facilities.

Last Reviewed: July 2019

In 2012 the Louisiana legislature passed House Resolution 167, which prompts the state’s Department of Natural Resources (NDR) and Public Service Commission (PSC) to implement CHP systems to help increase and maintain stability and reliability in the state’s critical facilities. The law asks the DNR and PSC to develop and adopt rules that would encourage and hasten the deployment of CHP where “expected energy savings exceed the expected costs.”

The Louisiana Energy Office contracted with Louisiana State University to determine existing CHP opportunities, especially those that have an emergency planning or resiliency component to them. 

Last Updated: July 2018

Some additional supportive policies exist to encourage CHP in Maine. Efficiency Maine provides funding for up to 50% of the cost of Technical Assistance Studies up to $20,000.

Renewable-fueled CHP is also eligible for credit within Maine's Renewables Portfolio Standard, which involves the use of NEPOOL Generation Information System (GIS) certificates (similar to renewable-energy credits, or RECs) to satisfy the portfolio requirement.

Last Updated: July 2018

Some additional supportive policies exist to encourage the use of renewable-fueled CHP systems. According to Maryland's Renewable Energy Portfolio Standard utilities are required to meet 12% of retail sales in 2016 with Tier I resources, which include waste-to-energy systems. The percentage expands up to 18% in 2022.

The CHP Grant Program administered by the Maryland Energy Administration specifically reserves up to $1.5M of the annual program budget to encourage CHP for resiliency in critical infrastructure.

Last Updated: August 2019

Some additional supportive policies exist to encourage CHP in Massachusetts. Massachusetts Environmental Policy Act (MEPA), which defines the state’s environmental review process for large building projects requires a detailed analysis and evaluation of the feasibility of CHP.

CHP is also being supported through the state's $40 million Resiliency Initiative. For example, grants have covered the cost of adding black start and island mode capability to major CHP systems located at critical public facilities.

Last Revised: July 2019

Some additional supportive policies exist to encourage CHP in Michigan. In 2008, Michigan introduced its Renewable Energy Standard, requiring the state's utilities to generate 15% of their retail electricity sales from renewable energy resources by 2021. The standard allows utilities to use energy efficiency and advanced cleaner energy systems to meet a limited portion of the requirement. Eligible energy efficiency measures include both changes in equipment and changes in customer behavior directly attributable to an energy efficiency program or energy optimization plan. Advanced cleaner energy facilities are loosely defined as electric generating facilities using a new technology, but industrial CHP powered by renewable fuels is specifically identified as an eligible technology. The compliance period for the standard began in 2012.

The Michigan Agency for Energy and the US Department of Energy have partnered to fund the development of a comprehensive plan to optimize the adoption and implementation of CHP in Michigan. The plan will specifically identify and provide solutions to the barriers and market impediments to CHP adoption in Michigan and an initial assessment of these barriers is currently underway.

The Michigan Public Service Commission formed a working group to assess standby rates and form related recommendations. The final CHP-focused report laid out principles of fair standby rate design. 

The Michigan Technical Assistance Pilot for Combined Heat and Power (TAP CHP) offers assistance to facilities to complete feasibility studies and trainings. A CHP training event targeting hospitals and universities drew 102 attendees.

Last Updated: August 2019

There are currently some additional supportive policies to encourage renewable-fueled CHP.

With support from the U.S. DOE State Energy Program in 2013, Minnesota conducted a significant stakeholder engagement process that resulted in the development of a CHP Action Plan to help policy makers, utilities, industries, and trade allies increase implementation of CHP in the state. In 2016, the National Association of State Energy Officials (NASEO) published a case study documenting Minnesota's experience that can serve as a model for other states. 

Last Updated: July 2018

Mississippi has some additional supportive policies to encourage CHP, in the form of technical assistance programs. Mississippi Development Authority – Energy and Natural Resources Division in partnership with Innovate Mississippi has conducted workshops around the state to educate industrial, institutional, commercial and utility stakeholders on the benefits, opportunities and barriers pertaining to CHP deployment.

Last Updated: September 2018

Missouri has a number of additional supportive policies in place for CHP.

The Department of Energy is a formal engagement partner in DOE’s Packaged CHP Accelerator Partnership and is actively encouraging CHP packagers and solution providers to serve the Missouri territory via the eCatalog. The eCatalog is a public web-based tool that enables Missouri commercial and industrial businesses that would benefit from CHP to find pre-engineered and assembled systems from proven service providers. The eCatalog will serve in a powerful way to reduce the perceived risk associated with the performance of unknown (to them) technology. 

In partnership with Spire, the Department of Energy developed and hosted two summits focused on CHP resiliency for critical facilities. In total, over 200 facility managers, energy engineers, and administrators of hospitals, universities, correctional facilities, and nursing homes were provided with an understanding of CHP technologies, complimentary CHP assessment by the Midwest CHP TAP, and direct access to vendors of CHP solutions. With a focus on health care and correctional facilities, DE is proactively reaching out to potential CHP candidates, providing technical assistance, and facilitating connecting them with TAP and following through to conclusion. 

Additionally, the Department of Energy filed testimony before the Missouri Public Service Commission on behalf of CHP in Case Nos. ER-2014-0258, ER-2014-0370, ER-2016-0179, GR-2017-0215, EO-2018-0211, ER-2018-0145/0146, GR-2017-0215, GR-2017-0216, GR-2018-0013, and GR-2019-0077. These interventions resulted in dramatically improved Standby Service Rider tariffs in terms of structure, definitions, and transparency in Ameren Missouri and Kansas City Power & Light cases, as well as the development of a spreadsheet tool that customers can use to estimate what actual utility charges may be as a result of cogeneration, outreach by Liberty Utilities’ local gas distribution company, and the inclusion of CHP as a business custom measure in Ameren Missouri’s upcoming cycle of MEEIA programs.

Missouri voters approved the state’s Renewable Energy Standard (RES) law by passage of Proposition C on November 4, 2008. The RES required Missouri’s regulated electric utilities to meet defined percentages of total retail electrical sales by renewable resources starting in 2011. Renewable-fueled CHP is an eligible technology. If the CHP system uses in-state renewable fuels, the resultant electricity is eligible for a 1.25 multiplier. Renewable fuels and distributed energy, such as CHP, are also specifically eligible for funding through the Energy Loan Program. The Wood Energy Tax Credit allows individuals or businesses processing Missouri forestry industry residues into fuels a state income tax credit of $5 per ton of processed material (e.g., wood pellets).

The Missouri Comprehensive State Energy Plan includes specific strategies (1.1.5, 1.9.4, 3.6.1, 3.6.2) to advance CHP in Missouri including equal treatment of CHP with other energy efficiency measures by regulated utilities, examining CHP potential at existing and new state facilities, developing a statewide CHP potential study, and establishing cost-based standby service rates for CHP customers. 

 

Last Updated: August 2019

Montana's state energy office has undertaken technical assistance activities that encourage the deployment of CHP including outreach to project developers, conducting feasibility assessments, and encouraging the use of CHP in public buildings.

Last Reviewed: July 2019

There are currently no additional supportive policies to encourage CHP.

Last Updated: September 2018

Some additional supportive policies exist to encourage CHP in Nevada. Nevada's renewable portfolio standard (RPS) was initiated in 1997 and was expanded to include energy savings from efficiency measures in 2005. It requires the state's two investor-owned utilities, Nevada Power and Sierra Pacific Power, to achieve 25% renewable energy by 2025 and allows energy efficiency to meet a quarter of the standard in any given year. All types of CHP systems are eligible under the RPS as a "qualified energy recovery process." 

Last Updated: September 2018

Some additional supportive policies exist to encourage CHP in New Hampshire. The state’s Renewable Portfolio Standard (RPS), applicable only to systems fueled by renewable resources such as biomass or biogas, requires that 23.8% of electricity sold to end-use customers be supplied by renewable energy or an equivalent (via trading) by 2025. Resources are separated into four tiers, and new renewable-powered CHP would likely fall within Tier 1.

Last Reviewed: July 2019

Some additional supportive policies exist to encourage CHP in New jersey. The state’s Superstorm Sandy Action Plan includes funding specifically for CHP and recommends that critical infrastructure use CHP in order to increase the system resiliency. New Jersey also changed the definition of contiguous property to help promote CHP system incorporation with district energy systems.

The state's CHP incentive program provides additional bonus incentives to CHP systems with blackstart capabilities at critical infrastrucutre, and supports renewable-fueled systems.

New Jersey has also streamlined its air permitting process by offering a general permit for some eligible CHP systems, allowing a range of facilities to more quickly and easily install CHP technology. The New Jersey Department of Environmental Protection (DEP) developed two GPs: one for internal combustion engines (General Permit CHP-022) and one for turbines (General Permit CHP-021). Each GP contains four different sets of fuel and emission limits, depending on the size of the equipment and how the source plans to operate the equipment.

Last Updated: August 2019

There are currently some additional supportive policies that encourage renewable-fueled CHP in New Mexico. Biomass-fueled CHP systems are eligible for a corporate tax credit through the Renewable Energy Production Tax Credit and a sales tax incentive through the Biomass Equipment & Materials Compensating Tax Deduction. Additionally, the Energy Transition Act includes a 100 percent Zero Carbon Resource Standard. A Zero Carbon Resource, as defined by the Act, means an electricity generation resource that emits no carbon dioxide into theatmosphere, or that reduces methane emitted into the atmosphere in an amount equal to no less than one-tenth of the tons of carbon dioxide emitted into the atmosphere, as a result of electricity production. This definition, is a direct carve-out for anaerobic digesters which often use the digester gas for heat and power production and may included co-firing with fossil fuels. The one-tenth ratio allows for up to 72% of co-firing natural gas with captured digester gas to still be considered a "zero carbon resource". Recycled energy projects may also be eligible for an Advanced Energy Tax Credit. The state energy office also partners with USDOE support services to address any needs from any entity that requests assistance.

New Mexico has used the DOE CHP Technical Assistance Partnership program on several occasions in the past 3 years. Currently, the state energy office is working with the Houston Advanced Research Center to organize two workshops targeted to the state's large oil and gas industry. The workshops will focus on combined heat and power and will also highlight pending regulations targeting waste in the sector including venting and flaring of associated gas and produced water recycling and reuse.

Last Updated: August 2019

There are many additional supportive policies to encourage CHP in New York. Through its Flex Tech program, NYSERDA provides cost share for CHP feasibility studies, including “CHP-plus” configurations such as the pairing of CHP-plus-Storage. Through the first phase of its NY Prize Community Grid Competition, NYSERDA provided funding for 83 microgrid studies, the majority of which included CHP. In 2017, eleven of these projects advanced to the second phase of the NY Prize competition, all of which include CHP. NYSERDA also provides one-on-one coaching with potential CHP candidate sites and recommissioning assistance for CHP sites that have been operating for two years. CHP systems are assessed and a recommissioning report is produced, which includes recommendations to improve system operations or update hardware.

NYSERDA's programs prioritize grid resiliency and generally require systems to have the ability to operate during grid outages. Bonus incentives may be available for CHP projects serving critical infrastructure. Also, New York customers using natural gas for CHP may be eligible for discounted natural gas rates.

The state also has a decade-plus of effort encouraging renewable-fueled CHP systems through its renewable portfolio standard (RPS) adopted by the New York Public Service Commission (PSC) in September 2004, and transitioned in February 2016 to the Clean Energy Fund. This has typically taken the form of anaerobic digester biogas fueling of CHP systems at dairy farms, food production facilities, and water resource recovery plants.

Last Updated: July 2018

Some additional supportive policies exist to encourage CHP in North Carolina. The state’s RPS, which is a part of the Energy Portfolio Standard (EPS) encourages the use of opportunity fuels that may be used to power CHP, which can meet up to 25% of the RPS requirements through 2018.

Last Updated: July 2018

There are currently no additional supportive policies to encourage CHP.

Last Updated: July 2017

There are currently limited additional statewide supportive policies to encourage CHP. Customers located within Dayton Power & Light (DP&L) service territory may have access to technical assistance, including funding of up to $10,000 to subsidize the cost of a CHP feasibility study.

Last Updated: September 2018

There are currently no additional supportive policies to encourage CHP.

Last Updated: July 2018

Some additional supportive policies exist to encourage CHP in Oregon. The Energy Trust facilitates feasibility studies for potential CHP system owners the Oregon Department of Energy (ODOE) provides technical assistance to help customers identify opportunities for integrating CHP within existing operations. Projects are handled individually based on needs of the project (e.g. scoping, thermal management, financing, integration with other agencies, etc.).

The state also has policies to encourage the use of renewable-fueled CHP systems. According to the Renewable Energy Portfolio Standard, utilities are required to ensure that 25% of the electricity sold to retail customers is derived from renewable resources by 2025 and renewably-fueled CHP is eligible. Energy Trust also offers custom incentives for renewable-fueled CHP based on market costs. There are also tax credits available for biomass producers or collectors to help develop a bio-energy fuel market.

Oregon has also incorporated CHP into its local resiliency planning efforts. ODOE hosted a workshop in 2016 that focused on resiliency and CHP systems entitled "Northwest Combined Heat and Power: Improving Efficiency and Resilience in Energy Intensive Businesses."

Last Updated: July 2018

Some additional supportive policies exist in Pennsylvania. The Pennsylvania Public Utilities Commission and other entities are working toward the promotion of CHP through a CHP policy statement published in the Pennsylvania Bulletin on April 5, 2018. The main purpose is to encourage Electricity Distribution Companies (EDCs) and Natural Gas Distribution Companies (NGDCs) to: make CHP an integral part of their energy efficiency and resiliency plans, design interconnection and standby rates, and promote the consideration of special natural gas rates, for owners and operators of CHP facilities. EDCs will be required to report on their CHP activities.

In 2016, the Pennsylvania Department of Environmental Protection partnered with the Penn State University Mid-Atlantic CHP TAP at The Navy Yard in Philadelphia to conduct a pilot microgrid demonstration project that integrates CHP and renewable energy. The project will of share lessons learned, provide technical assistance to others in the state, and act as a demonstration site for the U.S. DOE’s Grid Modernization program. Efforts to develop a “CHP-Enabled Renewable Energy Guide” are also underway.

The state also encourages the use of renewable-fueled CHP systems through its AEPS, which recognizes renewable CHP as eligible as a Tier I resource.

Last Updated: July 2018

Some additional supportive policies encourage CHP in Rhode Island. The Department of Environmental Management (DEM) has a policy intended to streamline air permitting for certain CHP systems. Air Pollution Control Regulation No. 43 creates an alternative permitting process (general permit) for certain emergency generators, CHP and other distributed generation projects. The general permit offers an administratively simpler process than the current minor source permitting process in APC Regulation No. 9. The application form is available here. The state has also codified the use of nonwires alternatives for promoting the state's policy goals of enhancing grid reliability and resilience. CHP is defined as an eligible measure for nonwires alternatives. 

Technical assistance is also available, as outlined in its annual Energy Efficiency Program Plan. National Grid offers assistance by identifying and recruiting qualified CHP projects, conducting initial scoping studies, and providing up to 50% of the cost of independent engineering studies.

Additionally, National Grid has defined criteria and incentives for 'opportunity fuel' CHP systems, specifically waste-to-gas, in the 2018 Energy Efficiency Annual Plan. 

Last Updated: August 2019

Some additional supportive policies to encourage renewable-fueled CHP exist. South Carolina has a Biomass Energy Tax Credit for 25% up to $650,000 for biomass CHP systems.

Last Updated: August 2017

There are currently no additional supportive policies to encourage CHP.

Last Updated: August 2017

Some additional supportive policies exist to encourage CHP in Tennessee. The Qualified Energy Conservation Bond Program and Clean Tennessee Energy Grant Program have both been used in the past to encourage the deployment of waste heat to power (WHP) systems in the state.

The University of Tennessee Center for Industrial Services also helps companies evaluate, measure, and create a site-specific energy plan, which may include evaluating CHP options. 

In February 2019, the Board of Directors for the Tennessee Valley Authority (TVA), the federally-owned corporate electricity provider for Tennessee, approved a project that will seek to deploy CHP, solar, and other technologies to address behind-the-meter customer needs. This project, called the DER Flexibility Research Project, allows member utilities to deploy CHP systems as well as to enter into a purchased power agreement with TVA for the power provided. The project is capped at 300MW total, of which a third may be CHP. TVA and the member utility organization have stated goals for the project of providing high levels of distribution system reliability and resiliency.  

Last Updated: July 2019

Several additional supportive policies exist to encourage CHP in Texas. 

In 2013, Texas passed House Bill 2049, which allows CHP system owners to sell electric energy to multiple customers. It ensures that cogenerators selling electricity to more than one customer are not subject to regulation as a retail electric utility or subject to regulation as a retail electric provider or power generation company.

In 2011, Texas passed House Bill 3268 requiring that the state’s Commission on Environmental Quality (TCEQ) develop a “permit-by-rule” option of a simplified air permitting process for CHP systems that would allow for expedited permitting for certain qualifying systems. For CHP to be eligible under this section, systems must be designed such that its useful thermal energy is greater than 20% of the total heat energy output.

In 2009, Texas also passed two bills aimed at securing and strengthening critical government-owned buildings and facilities. They require that those facilities deemed “critical” conduct a feasibility assessment for CHP prior to initial construction or at points of major renovation.

Last Updated: August 2017

Some additional supportive policies exist to encourage CHP in Utah. Some bottoming cycle or waste heat to power systems may be eligible for the Alternative Energy Manufacturing Tax Credit and the Alternative Energy Development Incentive. CHP is an eligible technology for financial assistance under Utah's U-Save Energy Efficiency Fund, State Building Energy Efficiency Fund, and Commercial PACE.

The state enacted its Energy Resource and Carbon Emission Reduction Initiative (S.B. 202) in March 2008. This law is most accurately described as a voluntary, renewable portfolio goal (RPG). Specifically, the law requires that utilities only need to pursue renewable energy to the extent that it is "cost-effective" to do so. Eligible “renewables” include electric generation facilities that produce electricity from waste gas and waste heat.

Funding may be available for CHP systems through federal pre-disaster mitigation funds.

Last Updated: July 2019

There are some additional supportive policies to encourage CHP in Vermont. The state offers a Renewable Energy Sales Tax Exemption for renewable-energy systems which also applies to micro CHP systems up to 20 kW. The state also encourages the use of renewable-fueled CHP systems and waste heat to power (WHP), which qualify under its Renewable Energy Standard, which is 55% by 2017 and rising in 3 year increments by 4% to 75% by 2032.

Last Updated: September 2018

In 2018, Virginia adopted an update to its State Energy Plan. The updated plan provides recommendations for the future of the Commonwealth’s energy systems that aim to “support technological advances, create new business opportunities, and allow Virginia’s energy markets to grow” (DMME 2018). The plan recommends increased state-sponsorship of investment in CHP projects, and calls out CHP’s resilient attributes that are important for critical facilities during severe weather events. Specifically, the plan calls on the Commonwealth to establish a cumulative target of at least 750 MWs of CHP by 2030. This would build on Virginia’s Senate Bill 966, which requires Dominion Energy to consider including 200 MW of CHP or WHP in its next integrated resource plan. The authors also recommend developing strategies for achieving the target. These include utility investments, private market mobilization, and the deployment of CHP in public buildings.

Last Updated: August 2019

In June 2015, the Washington legislature passed comprehensive legislation – H.B. 1095 – that establishes a statewide policy fostering the development of CHP. The state now requires major public sector facilities and district energy systems to analyze their critical loads and obtain a CHP feasibility assessment. The bill also improves air quality permitting for faster/easier processing of permits using a general permit or permit by rule with an output-based emissions approach.

The state also encourages the use of renewable-fueled CHP systems and waste heat to power (WHP), which qualify under its Renewable Energy Standard.

The Washington Economic Development Finance Authority (WEDFA) and the Washington State Department of Commerce are low-cost loans for manufacturers of renewable energy technology equipment that would be applicable to some CHP systems.  

Last Updated: July 2018

There are currently no additional supportive policies to encourage CHP. In January 2015, West Virginia legislators voted to repeal the states Alternative and Renewable Energy Portfolio Standard, which once required utilities to obtain 25% of their retail electric sales from eligible alternative and renewable energy resources by 2025. CHP was an eligible technology before the repeal bill, H.B. 2001, eliminated the standard.

Last Updated: July 2018

Some additional supportive policies exist to encourage CHP in Wisconsin. The Wisconsin State Energy Office recieved funding from the U.S. Department of Energy to conduct the "Turning Waste into Cash in Wisconsin" project. The goal of the project was to identify and reduce barriers to project deployment and increase awareness of CHP in the state. Activites included a series of statekholder meetings and a summary white paper, which sets the stage for a Wisconsin Action Plan to promote the use of CHP in the state.

Also, CHP systems that displace electricity use and are fueled by renewable resources are eligible for the state’s Renewable Energy Standard, which set a statewide target of 10% of electricity from renewable resources by 2015.

Last Updated: August 2017

There are currently no additional supportive policies to encourage CHP.

Last Updated: August 2017