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26 Combined Heat & Power: Effective Energy Solutions for a Sustainable Future States with Portfolio Standards That Include CHP (as of April 2008) Renewable Portfolio Standards More states are adopting energy efficiency resource standards (EERS) or renewable portfolio standards (RPS) to ensure that cost-effective energy efficiency measures and renewable energy sources help offset growing electricity demand. EERS/ RPS require that energy providers meet a specific portion of their electricity demand through energy efficiency or renewable energy. Fourteen states have portfolio standards that include CHP and two states have pending standards that may allow CHP to count in their programs. CHP should be universally recognized as an energy efficiency technology, and standard methods agreed upon to compute the energy efficiency contribution of CHP for RPS purposes. Proper Emissions Treatment of CHP (Output-Based Standards) Output-based regulations relate air emissions to the productive output of a process and encourage use of fuel conversion efficiency as an air pollution control or prevention measure. Output-based regulations that include both the thermal and electric output of a CHP process can recognize the higher efficiency and North Dakota and Nevada include waste heat CHP only. Output-Based Emissions Standards Source: ACEEE Source: EPA 32 EPA. 2004. Output-Based Regulations: A Handbook for Air Regulators. environmental benefits of CHP. Several states have implemented output-based regulations with recognition of thermal output for CHP systems, especially for smaller systems. In recent years, regulators have adopted market-based regulatory structures, primarily emission cap-and-trade programs. In these programs, allocation of emission allowances is a critical component that can create an incentive for different technologies. Most cap-and-trade programs have allocated allowances based on historic emissions, which does not encourage new or efficient technologies. More recently, some states have adopted output-based allocation methodologies that include both electricity and thermal output of CHP systems. These can create a significant incentive for CHP facilities.32 = State EERS/RPS allows CHP = Pending EERS/RPS may allow CHP = States with Output Based Regulations = States with Output Based Regulations that include a thermal credit for CHPPDF Image | COMBINED HEAT AND POWER
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