1. (a) Maximum size. The power production capacity of the facility for which qualification is sought, together with the capacity of any other facilities that use the same energy resources, are owned by the same person, and are located at the same site, may not exceed eighty megawatts (80 MW).

2. (b) Method of calculation.

   1. (1) For purposes of this subsection, facilities are considered to be located at the same site as the facility for which qualification is sought:

      1. (A) If they are located within one (1) mile of the facility for which qualification is sought; and
      2. (B) For hydroelectric facilities, if they use water from the same impoundment for power generation.
   2. (2) For purposes of making the determination in subdivision (b)(1) of this section, the distance between facilities shall be measured from the electrical generating equipment of a facility.
   3. (3) The Arkansas Public Service Commission may modify the application of subdivision (b)(2) of this section for good cause.

3. (c) Fuel use.

   1. (1) The primary energy source of the facility must be biomass, waste, renewable resources, geothermal resources, or any combination thereof, and more than seventy-five percent (75%) of the total energy input must be from these sources.
   2. (2) Any primary energy source that, on the basis of its energy content, is fifty percent (50%) or more biomass shall be considered biomass.
   3. (3) Use of oil, natural gas, and coal by a facility may not, in the aggregate, exceed twenty-five percent (25%) of the total energy input of the facility during any calendar year period.

Codification Notes: This section was promulgated as Section 2.4 of the Cogeneration Rules prior to codification in the Code of Arkansas Rules.