United States (Federal)

US-7:Combined Heat and Power (CHP) Partnership

Policy Description

The CHP Partnership is a voluntary program seeking to reduce the environmental impact of power generation by promoting the use of CHP. The companies and organizations that are members of the Partnership have access to a variety of tools and services provided by the U.S. Environmental Protection Agency (EPA). Entities that join the Partnership assist EPA by providing annual data on existing CHP projects and new project development.

Description

 

The Combined Heat and Power (CHP) Partnership is a voluntary program seeking to reduce the environmental impact of power generation by promoting the use of CHP [1]. CHP increases power production efficiencies from the average 33% to 50-70%. This increased efficiency results in reduced fossil fuel usage, reduced emissions of air pollutants and carbon dioxide [2].

Entities that join the CHP Partnership assist EPA by providing annual data on existing CHP projects and new project development. The EPA uses this data in order to:

  • Calculate the environmental benefits of Partners' CHP projects.
  • Provide Partners with their individual annual Greenhouse Gas (GHG) Reduction Report summarizing the GHG emission reductions from their CHP projects.
  • Promote the benefits of operational CHP projects through case studies (with Partners' permission).
  • Facilitate education about CHP technologies, emission characteristics, efficiencies, and CHP applications in different sectors.
  • Track projects and determine where EPA should focus its efforts to facilitate project implementation [3].

By becoming members of the CHP Partnership, the companies and organizations involved in the partnership have access to a variety of tools and services provided by the EPA. These tools and services facilitate Partners’ involvement in CHP and include outreach materials/documents, workshops/conferences, calculators, incentive database, and project qualifiers [4]. The CHP Partnership also provides a variety of recognition opportunities for the Partners including awards and certificates [5]. The CHP Partnership has 455 members [6].


 

 

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Information & Outreach, Voluntary Agreement

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 2001

Policy Linkages

Supported By Executive Order 13624 Effort Defining
Supported By State and Local Energy Efficiency Action Network (SEE Action) Supporting Measure
Supported By Better Buildings, Better Plants Effort Defining

Agencies Responsible

Environmental Protection Agency

Primary Objective: Energy

Objective

The main objective of the CHP partnership is to reduce the environment impacts of power generation by: • Facilitating/promoting the development of new CHP projects • ­Promoting the environmental and economic benefits of CHP

Target Group

• State, local, and tribal energy, environmental and economic development agencies [7] • ­Industry Partners: – ­Industrial, commercial, district energy and institutional facilities – ­Project developers – ­Equipment suppliers ­• Other Relevant Stakeholders: – ­End users of CHP – ­Financiers – ­Utilities

Driver of energy consumption or emissions affected by policy: Relative efficiency, Technology implementation rate, knowledge level

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

455 partners dedicated to promoting and implementing CHP

Quantitative Target? no

Progress Monitored? yes

Verification Required? yes

Enforced? no

Sanctions: If a partner fails to report project data in any given year, EPA will inquire about the delay. EPA may issue a letter, based on the inquiry, stating the Partner has three months to report project data. If the partner fails to complete the reporting within three months of receiving the letter, EPA will remove them from the program. [8]

Requirements on the Target Group

 

The CHP Partner is obligated to work with the EPA to promote and support CHP by:

  • Helping EPA determine greenhouse gas emissions prevented by annually providing data on existing CHP projects and new project development, as well on other CHP related activities
  • Assess the potential for CHP development at their facilities
  • Support development of new CHP projects
  • Publicize the energy, environmental, and economic benefits of their projects
  • Government partners also agree to promote the benefits of CHP and support the development of projects within their respective jurisdictions [9]

Support by Government

 

Promote understanding and recognition of the environmental, energy, and economic benefits of CHP [10]. Some examples include:

  • Sector specific information (for energy users), market analysis (for CHP industry partners), and information on best practice policies, programs and incentives (for utilities) for target specific market opportunities.  The CHP partnership analyzes and becomes involved in outreach efforts to increase awareness and adoption in four strategic market sectors: dry mill ethanol production, hotels and casinos, municipal wastewater treatment facilities and utilities [11].
  • Assistance for states in order to identify opportunities for developments in policy and programs to encourage CHP, provide examples of model state policies [12].

Support the Partner with tools and services intended to accelerate the development of CHP projects, including recognition of Partner’s CHP accomplishments and associated benefits [13]. Some examples of recognition include:

  • ENERGY STAR CHP Award, EPA Combined Heat & Power Partnership International CHP Award, Certificate of Greenhouse Gas Reduction, CHP Partnership certificate [14]
  • The opportunity to use the CHP Partnership logo in sales/marketing/ advertising [15]
  • The opportunity to share knowledge and showcase CHP projects by presenting at conferences/workshops, and submitting articles to be included in monthly emails and/or annual updates [16]

Implementation Toolbox

 

The CHP Partnership provides many tools and services consisting of outreach and education materials, direct project assistance, and public recognition:

  • Web portal of outreach materials including CHP resource documents, fact sheets, strategic market analysis reports, technical white papers, and clean energy policy resource documents http://www.epa.gov/chp/publications/index.html
  • The CHP partnership hosts/sponsors many workshops and conferences in order to facilitate peer-to-peer marketing and networking http://www.epa.gov/chp/events/index.html
  • CHP Project Qualifier tool which helps determine whether CHP would be a worthwhile investment in a specific facility http://www.epa.gov/chp/project-development/qualifier_form.html
  • Technical Assistance for Candidate Sites provides information, tools and technical assistance for those considering CHP. This includes Spark Spread Screening for CHP Candidate Sites, Level 1 feasibility study, third-party review of feasibility/design studies, technology/vendor list, incentive/policy analysis, and energy and emissions saving calculator. http://www.epa.gov/chp/partnership/tech_assistance.html
  • Funding database provides an updated list of state and federal incentives for CHP and biomass/biogas projects. These incentives include financial incentives and favourable regulatory treatment which removes unintended barriers (http://www.epa.gov/chp/funding/funding.html)
  • CHP emissions Calculator compares the anticipated carbon dioxide (CO2), sulfur dioxide (SO2), and nitrogen oxides (NOx) emissions from a CHP system to the emissions from a system that uses separate heat and power http://www.epa.gov/chp/basic/calculator.html

Complexity of Implementation

Government

Level of complexity is moderate due to the engagement of various stakeholders; provision of informational and other tools; organization of public recognition opportunities; and evaluation of existing and proposed CHP projects and associated benefits for partners.

Target Group

Mid-level complexity due to the data collection and reporting requirements and role in project implementation.

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions ­From 2001-2011 CHP Partnership assisted in more than 640 CHP projects, representing 5,490 megawatts (MW) of new CHP capacity. On an annual basis, these projects prevent the emission of 14.5 million metric tons of carbon dioxide equivalent [17]
Estimated costs/benefits for industry
Estimated cost for government

References & Footnotes

References

[1] "Combined Heat and Power Partnership." Environmental Protection Agency. .

[2] "Partnership." Combined Heat and Power Partnership. Environmental Protection Agency. .

[3] "Project Reporting." Combined Heat and Power Partnership. Environmental Protection Agency. .

[4] "Benefits of Joining." Combined Heat and Power Partnership. Environmental Protection Agency. .

[5] "Public Recognition." Combined Heat and Power Partnership. Environmental Protection Agency. .

[6] "Our Partners." Combined Heat and Power Partnership. Environmental Protection Agency. .

[7] "Partnership." Combined Heat and Power Partnership. Environmental Protection Agency. .

[8] "Partner Responsibilities." Combined Heat and Power Partnership. Environmental Protection Agency. .

[9] "Partner's Letter of Intent." Environmental Protection Agency. .

[10] "Partner's Letter of Intent." Environmental Protection Agency. .

[11] "Strategic Markets for CHP." Combined Heat and Power Partnership. Environmental Protection Agency. .

[12] "State Policy Resources." Combined Heat and Power Partnership. Environmental Protection Agency. .

[13] "Partner's Letter of Intent." Environmental Protection Agency. .

[14] "Public Recognition." Combined Heat and Power Partnership. Environmental Protection Agency. .

[15] "Public Recognition." Combined Heat and Power Partnership. Environmental Protection Agency. .

[16] "Public Recognition." Combined Heat and Power Partnership. Environmental Protection Agency. .

[17] "Partnership." Combined Heat and Power Partnership. Environmental Protection Agency. .

Other Useful Resources

DOE Advanced Manufacturing Office - Industrial Technical Assistance (PDF | 0.36mb)

US Department of Energy, 2013. A fact-sheet on how the deployment of energy efficient manufacturing technologies and practices, including strategic energy management and combined heat and power, across American industry is supported through training programs, site assessments, and standards development.