DEEP: DEEP Announces New Program to Facilitate Permitting for Combined Heat-and-Power Systems (CHP)

July 12, 2013
DEEP Announces New Program to Facilitate Permitting for Combined Heat-and-Power Systems (CHP)
Initiative designed to benefit air quality, energy goals, and business growth
Connecticut’s Department of Energy and Environmental Protection (DEEP) today announced a new initiative that makes permitting for Combined Heat-and-Power Systems (CHP) faster and easier – while maintaining important standards that protect air quality.   
DEEP Commissioner Daniel Esty said, “This new permit-by-rule for CHP systems is a perfect example of how DEEP is bringing together the need to protect our environment, meet clean energy goals, and encourage economic growth and job creation.  Everyone benefits when the three E’s – environment, energy and economy – are taken into consideration.”
CHP systems, also known as cogeneration, produce electricity and useful thermal energy – that can be used for heating, cooling and other purposes – in a single, integrated system.  The result is a more efficient use of conventional generation technologies such as engines and turbines.  A CHP system may be installed in any commercial, industrial or institutional setting that uses an engine or turbine to provide power for its operations including hospitals, college campuses and manufacturers.
This new permit-by-rule applies to CHP systems with a capacity of less than 10MW.
Many businesses and institutions are looking to install CHP systems because energy efficient systems save money.  The increased use of CHP systems is consistent with the goals of Connecticut’s Comprehensive Energy Strategy and Governor Malloy’s commitment to bringing cheaper, cleaner and more reliable power to our state’s residents and businesses.
In keeping with the state’s focus on this technology, Connecticut’s Clean Energy Finance and Investment Authority (CEFIA) recently announced a rolling Request for Proposals (RFP) for a financing program for CHP projects of less than 5MW.   
This CHP solicitation is designed to offer a number of financial support options in an effort to best leverage limited public dollars.  The RFP and application materials are posted at

Background Information on DEEP Permit-By-Rule
Since 2002, DEEP has used permits-by-rule, in lieu of the requirement to obtain an individual permit, for categories of equipment for which standardized permit conditions will protect public health and air quality.  The use of permits-by-rule has reduced workload, reduced permitting timeframes and provided a fair and consistent basis for equipment operations. 
The adoption of this permit-by-rule creates regulatory certainty for the owner of a new CHP system that relies on the best available emission control technology.  Absent this permit-by-rule, the owner of a new CHP system would need to apply for and obtain an individual permit prior to beginning construction.  The permitting process typically takes about seven months, creates regulatory uncertainty and places an administrative and financial burden on the CHP system owner. 
The rule includes all the restrictions necessary to limit emissions of air pollutants from a regulated CHP system to a level that protects air quality and public health.  The regulation includes limitations for nitrogen oxides, particulate emissions and carbon monoxide; restrictions on hazardous air emissions; monitoring and testing requirements sufficient to measure compliance with the emissions limitations; and record keeping and reporting requirements sufficient to ensure that compliance with the limits may be evaluated and enforced.