CHP can help states meet their Clean Power Plan targets, and here’s how

Blog | June 01, 2015 - 3:32 pm

Emissions reductions from combined heat and power (CHP) can help states comply with their obligations under EPA’s proposed Clean Power Plan. ACEEE has released a step-by-step guide to help states do just that. ACEEE’s new CHP template is intended to help states understand how to document and claim emissions reductions that result from CHP measures in their state plans. This topic and other issues related to the role of CHP in the Clean Power Plan will be discussed at the Industrial Energy Technology Conference in New Orleans tomorrow.

As an underutilized resource with the potential for increased deployment in every state of the nation, CHP can be a component in a state’s plan for cost-effectively reducing emissions from the US power sector. ACEEE has estimated that CHP can conservatively contribute more than 68 million megawatt hours (MWh) of electricity savings nationwide in the year 2030, which would reduce greenhouse gas emissions by approximately 46 million metric tons.

What’s more, obtaining credit for CHP in a state compliance plan is an additional benefit from something that is already a good economic development investment. CHP facilities help local businesses and manufacturers save money and boost their productivity and provide local communities with increased reliability and safety during electric grid outages. States should consider CHP as a tool for attracting businesses and building more resilient communities, with the added benefit of offering cost-effective emissions reductions that can help with Clean Power Plan compliance.

This CHP template is the third in a series of templates available on our 111(d) webpage to help states incorporate energy efficiency strategies into their plans for compliance. The series also includes templates focused on building energy codes and energy efficiency financing programs. To get an idea of just how much CHP could help your state toward achieving its Clean Power Plan emissions reduction target, and at what cost, check out ACEEE’s State and Utility Pollution Reduction (SUPR) Calculator.