Combined Heat and Power (CHP) as a Compliance Option under the

Combined Heat and Power (CHP) as a Compliance Option under the Clean Power Plan: A Template and Policy Options for State Regulators—July 2015 Combined Heat and Power (CHP) as a Compliance Option under the Clean Power Plan A Template and Policy Options for State Regulators July 2015 Prepared for: Prepared by: Combined Heat and Power (CHP) as a Compliance Option under the Clean Power Plan: A Templat. [...] 10 Combined Heat and Power (CHP) as a Compliance Option under the Clean Power Plan: A Template and Policy Options for State Regulators—July 2015 forward looking, each state will need to develop a reasonable forecast of the energy savings it expects to achieve through CHP based on the potential for CHP development in the state and the anticipated impact of state or utility programs to promote CHP d. [...] Steps toward a CHP Compliance Module The following are key steps a state can take to evaluate and configure a CHP compliance module: Survey CHP Potential and Build on Existing State and Utility CHP Programs A first step to including CHP in a state CPP compliance plan is to collect information on the CHP potential in a state or utility service territory. [...] 14 Combined Heat and Power (CHP) as a Compliance Option under the Clean Power Plan: A Template and Policy Options for State Regulators—July 2015 Estimate Energy Savings and Emission Reductions Based in part on the CHP potential studies and experience with utility and state-based incentive programs, the state should make a realistic estimate of energy savings and emission reductions that they expec. [...] The project costs cannot exceed 20 percent of the property's State Equalized Value, and the lien to value of the property cannot exceed 99 percent of twice the State Equalized Value.