1. (a) Operating and efficiency standards for topping-cycle facilities.

   1. (1) Operating standard. For any topping-cycle cogeneration facility, the useful thermal energy output of the facility must, during any calendar year period, be no less than five percent (5%) of the total energy output.

   2. (2) Efficiency standard.

      1. (A) For any topping-cycle cogeneration facility for which the energy input, except for emergency or start-up uses, is natural gas or oil, and the installation of which began on or after March 13, 1980, the useful power output of the facility plus one-half (1/2) the useful thermal energy output, during any calendar year period, must:

2. (i) Subject to subdivision (a)(2)(A)(ii) of this section, be no less than forty-two-and-one-half percent (42.5%) of the total energy input of natural gas and oil to the facility; or

   1. (ii) If the useful thermal energy output is less than fifteen percent (15%) of the total energy output of the facility, be no less than forty-five percent (45%) of the total energy input of natural gas and oil to the facility.

      1. (B) For any topping-cycle cogeneration facility not subject to subdivision (a)(2)(A) of this section, there is no efficiency standard.

3. (b) Efficiency standards for bottoming-cycle facilities.

   1. (1) For any bottoming-cycle cogeneration facility for which any of the energy input as supplementary firing is natural gas or oil, and the installation of which began on or after March 13, 1980, the useful power output of the facility must, during any calendar-year period, be no less than forty-five percent (45%) of the energy input of natural gas and oil for supplementary firing.

   2. (2) For any bottoming-cycle cogeneration facility not covered by subdivision (b)(1) of this section, there is no efficiency standard.

      1. (c) Waiver of criteria. The Arkansas Public Service Commission may waive any of the requirements of subsections (a) and (b) of this section upon a showing that the facility will produce significant energy savings.

Codification Notes: This section was promulgated as Section 2.5 of the Cogeneration Rules prior to codification in the Code of Arkansas Rules.