Texas streamlines CHP laws

In a boost for CHP in Texas, a new law requires the Texas Commission for Environment Quality (TCEQ) to create air-permitting regulations for CHP plants that recognize their emission reduction benefits.

The streamlined air permitting process is expected to reduce regulatory burdens and system costs especially for small on-site systems. Currently, CHP developers must follow the same permitting requirements as large utility-scale power plants.

The new permit would effectively reward CHP systems' net reductions in electricity use and emissions. Federal tax incentives encourage use of CHP helping reduce dependency on foreign fuels and promote growth of clean energy technology. CHP systems meet the requirements of Texas law regulating energy security for mission critical facilities and are considered a green building solution that drives emission reduction.

Dan Bullock, director of the US Department of Energy’s Gulf Coast Clean Energy Application Center, said, “While often overlooked, combined heat and power technologies are a significant part of the Texas clean energy story. Implementation of additional CHP is a logical step for Texas to comply with emerging environmental regulations while adding jobs and increasing the competitiveness of our industry.”

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