Combined Heat and Power (CHP) Program Overview

Combined Heat and Power, referred to as cogeneration, is the simultaneous generation of useful heat and electricity from a single fuel source. The CPUC has programs to support the deployment of CHP, recognizing the potentially substantial contributions CHP can make to the state's energy needs and greenhouse gas mitigation objectives.

Assembly Bill (AB) 32, the Global Warming Solutions Act of 2006, aims to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. As the lead state agency implementing AB 32, the Air Resources Board (ARB) created a Climate Change Scoping Plan (2008) that identified CHP as the third most significant source for GHG emissions reductions and calls for 4,000 megawatts (MW) of new CHP capacity to result in 6.7 million metric tons (MMT) of GHG reductions.

CHP Proceedings

QF/CHP Program Settlement
CHP Feed-in Tariff (FiT) Assembly Bill (AB) 1613
Self Generation Incentive Program (SGIP)

Recent Updates, Documents

List of QF/CHP Decisions and Resolutions pursuant to the QF/CHP Settlement.
CHP Program Semi-Annual Reports (updated 2012-10-08) - Download a zip folder containing the current and all previous Semi-Annual Reports. Each Report has aggregated information on the IOUs' CHP procurement and data on how individual projects contribute to the IOUs' MW and GHG reduction targets under the QF/CHP Settlement. Each successive report provides cumulative information on the IOUs' CHP resources.
CHP Program Semi-Annual Report Template (Version 3.1) - Download the CHP Program Semi-Annual reporting template. Reported facilities are fictitious and are provided for demonstrative use only.
Qualifying Facility Semi-Annual Reports

Quick Links

Subscribe to the Long Term Procurement Plan service list (R.12-03-014)
IOU pages on QF/CHP Settlement
2012 U.S. Department of Energy & U.S. Environmental Protection Agency Report
- Combined Heat and Power: A Clean Energy Solution
2012 California Energy Commission Report
- Combined Heat and Power: Policy Analysis and 2011-2030 Market Assessment.

Overview of CHP Program Targets

Commission Decision (D). 10-12-035 adopted a comprehensive Settlement for Qualifying Facilities and Combined Heat and Power. Pursuant to the Decision, the investor owned utilities (IOUs) must procure a minimum of 3,000 MW of CHP for the entire QF/CHP Program and reduce GHG emissions consistent with the ARB Scoping Plan.

To track progress toward the MW and GHG reduction targets the IOUs must prepare CHP Program Semi-Annual Reports.

GHG Emissions Reduction Targets

In the Climate Change Scoping Plan, ARB has identified a CHP GHG Emissions Reduction Target of 6.7 million metric tonnes (MMT) by 2020. The investor owned utilities (IOUs) are responsible for 4.8 MMT of the statewide target, which is allocated among the IOUs based on retail sales from bundled and unbundled customers within their service territories.


Utility	IOU Retail Sales (%) 2011	IOU Target by 2020 (MMT)
PG&E	45.0	2.17
SCE	44.6	2.15
SDG&E	10.4	0.50
Total	100.0	4.8

Refer to the GHG ERT Calculator (updated 2012-11-27) for the assumptions used in the allocation of the Emissions Reduction Target.

Megawatt Procurement Targets


Utility	Target A (MW)	Target B (MW)	Target C (MW)	Total (MW)
SCE	630	378	394	1,402
PG&E	630	376	381	1,387
SDG&E	60	50	50	160
Total	1320	804	825	2,949*

*SDG&E will procure an additional 51 MW by 2018 in the Second Program Period to meet the minimum procurement Target of 3,000 MW.

Three MW targets periods (A, B, and C) correspond to the three CHP competitive solicitations (or Request for Offers or RFOs) and are outlined in the QF/CHP Program Settlement Term Sheet (Section 5.1.2). The three CHP RFOs will be scheduled at regular intervals. The IOUs initiated their first RFO by the end of February 2012.

To view the Term Sheet and other background information, visit the QF/CHP Settlement page.