Draft Combined Heat & Power Program Proposal
Administered by the Vermont Department of Public Service
Program Goal:
To promote cost effective, efficient Combined Heat & Power (CHP) projects and
technologies in Vermont through education and assistance. There are regulatory,
financial and technical issues that will need to be addressed in order for CHP project
activity to succeed. It is our aim to provide the informational and technical resources and
coordinate the services of others, in an out of state government, to facilitate success.
Program Overview:
The CHP program will be administered by Vermont Department of Public Service (DPS)
Energy Efficiency Division, and will promote CHP projects and technologies. The DPS
will act as a clearinghouse for CHP technologies and information in order to provide
general CHP related education and assistance to any interested party on a statewide basis.
In addition the DPS will coordinate and monitor CHP related activity in the State.
The DPS will also target specific markets where CHP applications are most suitable,
such as hospitals, colleges, schools, industrial/commercial business, etc. And not only
provide general CHP education and assistance, but will also include an outreach
component where the DPS will work with specific market sectors to promote CHP
projects that suit their unique requirements.
DPS Staffing & Resource Allocation:
In order for the DPS to act as the CHP information clearinghouse and provide general
education and assistance, the DPS will appoint a staff member to act as the CHP program
manager. The CHP program manager will be trained and knowledgeable in CHP projects
and technologies, and stay current on developing issues in the CHP field. The CHP
program manager will accomplish this by monitoring and participating in national CHP
programs such as the EPA’s CHP Partnership Program, DOE’s Distributed Energy
Program, and the United States Combined Heat & Power Association. On a regional level
the CHP program manager will participate and keep abreast of the activities of the
Northeast Combined Heat and Power Initiative and the Northeast CHP Application
Center. In addition the CHP program manager will stay informed by reviewing pertinent
CHP reports and publications.
Program Promotion:
The DPS will provide an area on its website related to the CHP program. The information
on the website will provide contact information for the CHP program manager, general
information on CHP technologies, and links to related CHP websites.
The information learned and knowledge gained by the DPS in providing general
education and assistance for CHP technologies and projects will provide an excellent
base for the CHP program’s targeted approach. In the targeted approach the DPS will
provide education and assistance to specific market sectors where CHP can be most
beneficial. Through an outreach program the DPS will seek to develop relationships with
the associations and organizations that represent these market sectors, such as Associated
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Draft Combined Heat & Power Program Proposal
Administered by the Vermont Department of Public Service
Industries of Vermont (AIV), Vermont Hospital Association, Vermont Business for Social
Responsibility, Vermont League of Cities and Towns, Vermont Ski Areas Association,
Vermont State College System, and the Vermont Business Roundtable, etc.
The outreach program will provide education and information to these marker sector
associations and organizations. As this information is disseminated to its membership,
their members will be encouraged to contact the CHP program manager for further
information. As interested parties contact the CHP program manager, the CHP program
manager can work with them to help determine if CHP is a viable option, and if so
provide guidance to encourage the development of the CHP project. If an interested party
determines they want to move forward with a CHP project, the CHP program manager
can request technical assistance from the Northeast CHP Application Center, help
determine all funding options, and assist in interaction with the distribution utility on
interconnection and back up service issues, review technical proposals, and assist in
vendor and proposal selection.
Overcoming Barriers:
Developing new CHP projects will require solving a variety of barriers besides
disseminating information. In addition there are regulatory, environmental, technical and
financial issues that will have to be addressed.
In order to encourage potential biomass and biogas CHP projects the DPS can partner
with the Vermont Agency of Agriculture and Vermont Agency of Natural Resources
Division of Forestry to leverage on their industry knowledge and contacts and address
possible environmental requirements in a proactive manner. An important barrier to the
success of a CHP project is its interconnection with the local distribution utility, and rates
for back up electric service. The CHP program manager will tap into other department
subject matter experts, such as electrical engineers, to help solve interconnection issues.
Also the DPS will work with the utilities to understand these issues and identify
solutions.
Another significant hurdle for CHP is the issue of funding these projects. A potential
relief to the funding barrier is the Vermont Clean Energy Development Fund (CEDF). In
2005, through Act 74, the Vermont General Assembly established the Vermont Clean
Energy Development Fund, for which funding is linked to activities at the Vermont
Yankee Nuclear Plant. One of the purposes of the CEDF is to promote the growth of
CHP, when the CEDF is fully funded it could provide significant financial incentives for
CHP technologies and projects in the State.
While the CEDF could provide funding for CHP projects, it is important to note that the
DPS’s CHP program proposal is independent of the CEDF, and can stand alone if the
CEDF is not fully funded. In order to help understand how hurdles to CHP development
can be overcome in Vermont, The CHP program manager will work with some of the
existing CHP projects in the State, i.e. Green Mountain Coffee Roasters, North Country
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Draft Combined Heat & Power Program Proposal
Administered by the Vermont Department of Public Service
Hospital and Middlebury College to learn first hand the challenges these project faced
and how they were overcome.
Conclusion:
The Department believes that by establishing this CHP program, we can make a
meaningful contribution to promoting CHP technologies and projects in Vermont. The
DPS believes that by having its Energy Efficiency Division act as a CHP information
clearinghouse it will provide a needed resource for those seeking assistance in CHP.
The creation of the CHP program will provide a place for the Efficiency Utility (EEU)
and Distribution Utilities to direct their customers where they will they receive answers
for their CHP applications. The implementation of a CHP program is an important step in
encouraging CHP development in Vermont, and the DPS looks forward to working with
all interested parties to make this program a success.
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