California Public Utilities Code § 2840.2

For purposes of this article, the following terms have the following meanings: (a) “Combined heat and power system” means a system that produces both electricity and thermal energy for heating or cooling from a single fuel input that meets all of the following: (1) Is interconnected to, and operates in parallel with, the electrical transmission and distribution grid. (2) Is sized to meet the eligible customer-generator’s onsite thermal demand. (3) Meets the efficiency standards of subdivisions (a) and (d) of, and the greenhouse gases emissions performance standard of subdivision (f) of, Section 2843. (b) “Eligible customer-generator” means a customer of an electrical corporation that meets both of the following requirements: (1) Uses a combined heat and power system with a generating capacity of not more than 20 megawatts, that first commences operation on or after January 1, 2008. (2) Uses a time-of-use meter capable of registering the flow of electricity in two directions. If the existing electrical meter of an eligible customer-generator is not capable of measuring the flow of electricity in two directions, the eligible customer-generator shall be responsible for all expenses involved in purchasing and installing a meter that is able to measure electricity flow in two directions. If an additional meter or meters are installed, the electricity flow calculations shall yield a result identical to that of a time-of-use meter. (c) “Excess electricity” means the net electricity exported to the electrical grid, generated by a combined heat and power system that is in compliance with Section 2843. (d) “Greenhouse gas” or “greenhouse gases” includes all of the following gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.

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