Code of Federal Regulations Title 10. Energy § 10.503.37 Cogeneration

The following table may be used to determine eligibility for a permanent exemption based on oil and natural gas savings.

Data are based upon 1987 oil, natural gas and electricity statistics published by DOE's Energy Information Administration.

EXAMPLE:  The proposed cogeneration project is to be located in Massachusetts and is to use distillate oil. It will have a capacity of 50 MW, an average annual heat rate of 7600 BTU/KWHR, and be operated at a capacity factor of 90%. The annual fuel consumption is therefore calculated to be 2,996 x 10 ⁹ Btu/yr. (50,000 KW x 7600 BTU/KWHR x .9 x 8760 HR/YR) The oil and gas backed off the grid would be calculated to be .2070 x 10 ⁹ BTU/YR. (50,000 KW x 5250 BTU/KWHR x .9 x 8760 HR/YR) since the proposed unit would consume more oil that would be “backed off” the grid, the unit would not be eligible for a permanent exemption based on savings of oil and natural gas.