Description: In response to the 1999 Texas Public Utility Regulatory Act that determined that on-site generation was an entitlement to all customers, the Public Utility Commission of Texas developed generous interconnection regulations, effective 2001. Texas’ rules allow the interconnection of distributed generation, including CHP, up to 10MW, and do not establish a limit on the total interconnected distributed generation capacity at any one facility. Notable in the Texasrules are a variety of size tiers, which allow for less restrictive interconnection for systems of smaller sizes. Additionally, the rules establish customer-friendly timelines on approval or rejection of interconnection applications, ensuring proposed projects do not sit in regulatory limbo.
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Contact:
John McElroy
1701 N. Congress Avenue
Suite 9-180
Austin, TX 78711-3326
John McElroy (mcelroy@opc.state.tx.us)
(512) 936-7518
(512) 936-7520
There are currently no state financial incentives in place that apply to CHP.
For more information on financial incentives for energy efficiency, click here.
Description: The investor-owned utilities ruled by the Texas Public Utility Commission have not developed standby rates specifically for CHP systems. Instead, standby rates are negotiated by these utilities on a case-by-case basis, with applicable rates generally ranging from very negative to neutral in their treatment of and impact on CHP.
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Description: Texas’ 2001 Standard Permit sets limits on NOx emissions, and calculates a system’s compliance by considering the useful thermal output of the system. Thus, the emissions are calculated on a net MWh basis, which provides an incentive for CHP.
Texas House Bill 3268 was signed in June 2011. This bill requires the Texas Commission on Environmental Quality to open a rulemaking to establish a standard permit for CHP systems. The bill requires that the Commission develop this rule by September 2012.
Links:
Contact:
Anne Inman
12100 Park 35 Circle
Austin, TX 78711
(512) 239-1264
Description: After the 1999 deregulation of Texas’ electric industry, Texas Public Utility Commission proposed a new rule establishing energy efficiency requirements applicable to every investor-owned utility in the state. The goals have since been updated, and in 2008 an updated rule allowed, for the first time, CHP to count towards the efficiency goals. Only CHP systems up to 10MW in size are eligible. Texas’ investor-owned utilities are to achieve a 15% reduction in their annual growth in demand of residential and commercial customers by 2009, and a 20% reduction by 2010.
Links:
Contact:
Theresa Gross
Electric Division - Energy Efficiency
Texas Public Utility Commission
512-936-7367
512-936-7361 (Fax)
theresa.gross@puc.state.tx.us
There is currently no net metering policy in place that applies to CHP.
For more information on net metering, click here.
Policy: No state loan programs are available for CHP.
For more information on energy efficiency financing, click here.
n 2011, Texas passed House Bill 3268 required that the state’s Commission on Environmental Quality (TCEQ) develop a “permit-by-rule” option of a simplified air permitting process for CHP systems that would allow for expedited permitting for certain qualifying systems. The draft rule would apply to natural gas systems up to 5MW; TCEQ is currently considering comments on the draft rule and preparing to issue a final rule.
The text of House Bill 3268 can be found here: http://tx.opengovernment.org/sessions/82/bills/hb-3268.
In 2009, Texas passed two bills aimed at securing and strengthening critical government-owned buildings and facilities. They require that those facilities deemed “critical” conduct a feasibility assessment for CHP prior to initial construction or at points of major renovation. It further encourages the implementation of projects when a project is expected to be cost-effective in its first 20 years.
The text of House Bill 1831 can be found here: http://www.capitol.state.tx.us/tlodocs/81R/billtext/pdf/HB01831F.pdf
The text of House Bill 4409 can be found here: http://www.capitol.state.tx.us/tlodocs/81R/billtext/pdf/HB04409F.pdf.
For more about these laws visit: http://www.txsecurepower.org/.