For purposes of this article, the following terms have the following meanings:

1. (a) “Combined heat and power system” means a system that produces both electricity and thermal energy for heating or cooling from a single fuel input that meets all of the following:

   1. (1) Is interconnected to, and operates in parallel with, the electrical transmission and distribution grid.
   2. (2) Is sized to meet the eligible customer-generator’s onsite thermal demand.
   3. (3) Meets the efficiency standards of subdivisions (a) and (d) of, and the greenhouse gases emissions performance standard of subdivision (f) of, Section 2843.

2. (b) “Eligible customer-generator” means a customer of an electrical corporation that meets both of the following requirements:

   1. (1) Uses a combined heat and power system with a generating capacity of not more than 20 megawatts, that first commences operation on or after January 1, 2008.
   2. (2) Uses a time-of-use meter capable of registering the flow of electricity in two directions. If the existing electrical meter of an eligible customer-generator is not capable of measuring the flow of electricity in two directions, the eligible customer-generator shall be responsible for all expenses involved in purchasing and installing a meter that is able to measure electricity flow in two directions. If an additional meter or meters are installed, the electricity flow calculations shall yield a result identical to that of a time-of-use meter.
3. (c) “Excess electricity” means the net electricity exported to the electrical grid, generated by a combined heat and power system that is in compliance with Section 2843.
4. (d) “Greenhouse gas” or “greenhouse gases” includes all of the following gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.