The Texas Combined Heat & Power Initiative (TXCHPI) announced that state Governor Rick Perry has signed House Bill (HB) 2049 and HB 1864 into law supporting the combined heat and power (CHP) clean, energy efficient technology.

The new policies will now remove the regulatory barriers and improve the business climate for cogeneration facilities in Texas.

CHP technology helps increase the economic benefits of using natural gas and preserving water for Texas communities.

Natural gas used in CHP plants produce up to 65% fewer emissions than coal per kilowatt hour.

In addition, CHP does not use water resources like the traditional power generation and produces energy as and when needed without its loss that typically occurs during transmission and distribution.

CHP in Texas is expected to reduce grid congestion, increase grid capacity and lessen the amount of water used in the generation of electricity.

Texas Combined Heat and Power Initiative executive director Paul Cauduro said, "TXCHPI believes these policy changes will be effective to help Texas meet resource adequacy challenges and provide secure energy to critical facilities during grid outages."

HB 1864 instructs the State Energy Conservation Office (SECO) to issue compliance guidelines on how to conduct a CHP feasibility analysis before construction or renovation of any government facility.

The new legislation will provide accurate information to officials in taking major decisions regarding on-site power generation at critical facilities used for disaster preparedness and emergency response.