Combined heat and power legislation introduced

By CMTA Staff

Capitol Update, March 9, 2007 Share this on FacebookTweet thisEmail this to a friend

Two measures that promote combined heat and power (CHP) were introduced just prior to the deadline for introduction of new bills.  CHP, also known as cogeneration, uses heat that would otherwise be wasted to generate electricity.  

AB 1064 (Sally Lieber, D-Mountain View) restores eligibility for gas-fired generation in the California Self-Generation Incentive Program.  It revises her bill from last year, AB 2778 (Chapter 617), which removed fossil fuel combustion technologies like CHP from the SGIP and limited eligibility to wind and fuel cell applications effective January 2008.

AB 1613 (Sam Blakeslee, R-San Luis Obispo) enacts the "Waste Heat and Carbon Emissions Reduction Act," which finds that capturing waste heat is environmentally beneficial and reduces emissions of carbon and other greenhouse gases (GHGs).  The bill states the intent of the Legislature to obtain 5000 megawatts of new electrical generation by the year 2015 by utilizing waste heat through CHP.   The bill requires the California Public Utilities Commission, in conjunction with the California Energy Commission, to simplify interconnection rules and tariffs.

CHP provides an important environmental benefit by reducing GHGs.  Natural gas-fueled CHP reduces the state's GHG emissions from power generation by up to 65 percent compared to a typical California power plant.  CHP is also the most cost-effective form of distributed generation.

CMTA and other advocates of CHP will be working this year to support these bills and any other efforts to increase incentives for CHP.

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