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Expanding the Solution Set: How CHP Can Support 111(d) Compliance

Combined heat and power (CHP) is a technology that produces electricity and thermal energy using the same fuel. Replacing conventional boilers with CHP at industrial, commercial and institutional facilities improves the efficiency of energy use, and results in significant emissions reductions, both conventional air pollutants and greenhouse gas emissions. And because CHP displaces electricity generation from the power grid and reduces electric sector emissions, CHP presents an opportunity to support compliance with EPA’s forthcoming carbon dioxide standards for the electric power sector under Section 111(d) of the Clean Air Act. Under a system-based approach to 111(d) compliance, these emissions reductions can potentially be sold to covered sources and create a new incentive to invest in efficient CHP.