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Combined Heat and Power Partnership

Arizona Renewable Energy Standard

Date Last Updated11/14/2012
Policy TypePortfolio Standard
State/FederalAZ
Policy Administrator/Contact OfficeArizona Corporation Commission (ACC)
Policy Initiation Date11/14/2006
Policy SummaryIn 2006, the ACC approved the Renewable Energy Standard and Tariff (REST), which specifically includes renewably-fueled CHP as an eligible resource. CHP systems are eligible for the renewable energy standard if they are renewably-fueled (i.e., with biomass or biogas). Both the electric and thermal outputs of CHP systems are credited. The thermal output from CHP is credited at a conversion rate of 3,415 Btus = 1 Renewable Energy Certificate (REC), and electricity from CHP is credited at a conversion of 1 kWh = 1 REC.

Under the REST Rules, utilities must increase the percentage of electricity generated by renewable energy from 2.5% in 2010, to 5% by 2015, 10% by 2020, and 15% by 2025. Starting in 2012, 30% of the requirement must be fulfilled by eligible distributed energy technologies (i.e., 4.5% of total retail sales in 2025). One-half of the distributed renewable energy requirement must come from residential applications and the remaining one-half from nonresidential, non-utility applications. The REST rules apply to any investor-owned utilities or electric power cooperatives serving retail electric load in Arizona, however, it excludes any utility distribution company with more than half of its customers located outside of Arizona.
CHP Eligibility RequirementsRenewably-fueled CHP, including biomass or biogas systems, is specifically identified as an eligible resource. To qualify for credit, CHP systems must have started operation on or after January 1, 1997.
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
Resource Website(s)

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