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Combined Heat and Power Partnership

2012 Integrated Energy Policy Report Update

Date Last Updated5/13/2013
Policy TypeState Energy Plan
Policy Administrator/Contact OfficeCalifornia Energy Commission
Policy Initiation Date1/1/2012
Policy SummaryThe 2012 Integrated Energy Policy Report (IEPR) Update includes additional information on five topics that were originally raised in the 2011 Integrated Energy Policy Report. These topics include: (1) the Energy Commission's adopted electricity and natural gas demand forecast for 2012 to 2022; (2) the outlook for and trends in the natural gas market; (3) the potential for increased development of CHP facilities; (4) an assessment of electricity infrastructure needed in Southern California to provide sufficient and reliable power; and (5) suggested actions to support renewable development and help California meet its Renewables Portfolio Standard target of 33% renewable electricity by 2020.

An entire chapter of the 2012 IEPR update is focused on CHP: "Chapter 3: Combined Heat and Power Assessment and Barriers." It covers CHP's contribution to the state's electricity mix, technical and market potential, and barriers to CHP development, which include disincentives to CHP investments in the current cap-and-trade rules and current interconnection rules that do not accommodate distributed, small-scale generators that wish to export some or all of their electricity. The recommendations address these barriers specifically and the others identified:
  • "The Energy Commission should revisit and update its CHP technical assessments in late 2013/early 2014 for the CPUC's use in the 2014 Long Term Procurement Plan proceeding. The assessment should include evaluation of the potential effects of cap-and-trade on CHP before its full implementation in 2015 as well as progress toward addressing other barriers.
  • Agencies with jurisdiction over interconnection processes (Rule 21, the Wholesale Distribution Access Tariff, and Generator Interconnection Procedures) should evaluate their requirements with the goal of easing the process of interconnection at facilities that expand their generation capabilities.
  • The Energy Commission and CPUC should continue to track, analyze, and report to the Governor and Legislature on the progress of the Qualifying Facility Settlement Agreement, Assembly Bill 1613 (Blakeslee, Chapter 713, Statutes of 2007), and programs of both the investor- and publicly owned utilities to encourage new CHP."
CHP Eligibility RequirementsDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
Resource Website(s) http://www.energy.ca.gov/2012_energypolicy exit EPA

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