(

a) The Energy Commission shall, by January 1, 2010, adopt guidelines that combined heat and power systems subject to this

chapter shall meet, and shall accomplish all of the following:

(1) Reduce waste energy.

(2) Be sized to meet the eligible customer-generator’s thermal load.

(3) Operate continuously in a manner that meets the expected thermal load and optimizes the efficient use of waste heat.

(4) Are cost effective, technologically feasible, and environmentally beneficial. (

b) It is the intent of the Legislature that the guidelines do not permit customers to operate as de facto wholesale generators with guaranteed purchasers for their electricity. (

c) Notwithstanding any other provisions of law, the guidelines required by this

section shall be exempt from the requirements of

Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code. The guidelines shall be adopted at a publicly noticed meeting offering all interested parties an opportunity to comment. At least days’ public notice shall be given of the meeting required by this section, before the Energy Commission initially adopts guidelines. Substantive changes to the guidelines shall not be adopted without at least days’ written notice to the public. (

d) Prior to January 1, 2010, the Energy Commission may adopt temporary guidelines for combined heat and power systems that comply with the parameters set forth in subdivision (a). (e)

(1) An eligible customer-generator’s combined heat and power system shall meet an oxides of nitrogen (NO

x) emissions rate standard of 0.07 pounds per megawatthour and a minimum efficiency of percent. A minimum efficiency of percent shall be measured as useful energy output divided by fuel input. The efficiency determination shall be based on 100-percent load.

(2) An eligible customer-generator’s combined heat and power system that meets the 60-percent efficiency standard may take a credit to meet the applicable NO x emissions standard of 0.07 pounds per megawatthour. Credit shall be at the rate of one megawatthour for each 3.4 million British thermal units of heat recovered. (

f) An eligible customer-generator’s combined heat and power system shall comply with the greenhouse gases emission performance standard established by the commission pursuant to

Section 8341. (

g) An eligible customer-generator shall adequately maintain and service the combined heat and power system so that during operation, the system continues to meet or exceed the efficiency and emissions standards established pursuant to subdivisions (a), (d), and (f).