States Offering Distributed Generation Policies

ACEEE Technical Reports

• IE071 Survey of Emissions Models for Distributed Combined Heat and Power Systems
• IE062 Combined Heat and Power: Connecting the Gap between Markets and Utility Interconnection and Tariff Practices (Part I)
• IE063 Combined Heat and Power: Connecting the Gap between Markets and Utility Interconnection and Tariff Practices (Part II)

More CHP Reports...

Important Resources and Links

• U.S. Clean Heat and Power Association (USCHPA)
  ACEEE was a founding member of the USCHPA, the national association for the promotion of CHP and distributed generation. A private, non-profit association, USCHPA works to bring a variety of CHP stakeholders together to achieve public policy support for these technologies. An annual meeting connects many of these stakeholders and fosters discussion about the state of relevant policies.
  
  
• U.S. Department of Energy (DOE)
  The DOE’s Distributed Generation Program established eight CHP Regional Application Centers (RACs) covering the entire U.S. to facilitate the deployment of CHP technologies. The RACs provide education for regional players on the benefits of CHP technologies, project-specific support and feedback to DOE and industry regarding R&D needs. They also interact with states to encourage a favorable policy environment for CHP. Visit the above-linked RAC web page for lists of and links to the eight application centers.
  
  
• U.S. Environmental Protection Agency (EPA)
  The EPA CHP Partnership is a voluntary program that seeks to reduce the environmental impact of power generation by promoting the use of CHP. Through the Partnership, EPA engages state and local governments, the CHP industry and other stakeholders in cooperative relationships to expand the use of CHP.
  • EPA Guide to Action chapter on Interconnection Standards [PDF]
  • EPA's guide for "best practice" areas for state CHP policies
    
    
• Western Governors' Association (WGA)                                 
  The WGA’s Clean and Diversified Energy Initiative released an excellent Combined Heat and Power White Paper in January 2006.
  
  
• New York State Energy Research and Development Authority (NYSERDA)
  NYSERDA’s Distributed Generation and Combined Heat and Power Program supports the development and demonstration of distributed generation systems and combined heat and power applications in industrial, municipal, commercial and residential sectors.
  
  
• International District Energy Association (IDEA)
  The IDEA is a non-profit trade association for district energy technologies. Members include manufacturers, managers, salespeople, heating and cooling executives and equipment suppliers. Their website includes information on current technologies, the Campus Program, and updates on the market.
  
  
• The World Alliance for Decentralized Energy (WADE)
  WADE was launched by a group of major companies and national industry associations to accelerate the development of high efficiency CHP and decentralized renewable energy systems which will deliver substantial economic and environmental benefits worldwide.

For more information contact:
Anna Chittum, Research Assistant

Leading States: Combined Heat & Power

California: California has CHP-friendly standby rates, streamlined interconnection standards for systems up to 10 MW, and emissions regulations that acknowledge the benefits of CHP systems by including a mechanism to credit useful thermal output.  The state also promotes CHP through financial incentives.  Its Self-Generation Incentive Program (SGIP) provides rebates for electric utility customers who install clean distributed generation.

New York: New York was the second state to adopt uniform interconnection standards for distributed generation systems, and adopted modifications in 2002 to streamline the application process.  In 2004, the maximum capacity of interconnected systems was increased from 300 kW to 2 MW and interconnections were expanded to the state’s more complex distribution systems, or “networked” systems, which exist in large, urban areas including New York City.  Through the New York State Research and Development Authority’s Distributed Generation and Combined Heat & Power program, the state has provided significant financial incentive and technical assistance to encourage CHP deployment.  Over the last seven years, these programs have invested over $94 million, about 75% of which has resulted in permanent equipment in the field with a capacity of about 192 MW.

Connecticut: Connecticut has developed interconnection standards applicable to CHP systems as large as 10 MW, and has established multiple size tiers so that smaller systems may benefit from easier interconnection processes. Its emissions regulations provide credit for thermal output for highly efficient CHP systems, and CHP is explicitly listed as an integral part of the state’s renewable portfolio standard.

For a ranking of CHP policies in all 50 states, read the 2009 State Energy Efficiency Scorecard