HB 3268, which went into effect September 1, is expected to prevent electricity shortages and increase job opportunities by eliminating regulatory barriers for combined heat and power systems. Combined heat and power (CHP), is the simultaneous production of electricity and heat from a single fuel source. Natural gas and biomass are the commonly used fuels for Texas CHP. Texas is the nation's leader in electricity produced by CHP - also known as cogeneration.

The bill, passed by Texas House member Lanham Lyne (R - Wichita Falls), requires the Texas Commission for Environment Quality (TCEQ) to create air permitting regulations for CHP plants that recognize their emission reduction benefits. A streamlined air permitting process is expected to reduce regulatory burdens and system costs especially for small on-site systems while increasing job opportunities. Presently, CHP adopters must follow the same permitting requirements of large utility-scale power plants. The new permit would effectively reward CHP systems' net reductions in electricity use and emissions. CHP systems are typically powered by natural gas and greatly reduce water used during electricity generation.

Paul Cauduro, Executive Director of the Texas Combined Heat and Power Initiative (TXCHPI), said, "CHP offers numerous benefits to installers, ERCOT and the electric grid, and public health. These benefits include reduced energy costs, transmission losses, air emissions and water consumption. The actions taken by Governor Perry and the Texas Legislature, if properly implemented, will increase job opportunities and will advance the installation of this effective, economical and environmentally-sensible energy option for Texas."

HB3268's implementation and impact will be fully discussed by CHP industry professionals at CHP2011, the industry's conference and trade show, at the Westin Galleria in Houston beginning Monday, October 17. http://www.CHPCON2011.com

The Texas Combined Heat & Power Initiative (TXCHPI) is a non-profit association of business interests that supports clean, energy-efficient, CHP technology applications in industrial, commercial and institutional settings. TXCHPI champions CHP as the most effective, economical and environmentally sensible energy option for Texas.