10 C.F.R. § 503.37
Cogeneration.
Cite as 10 C.F.R. § 503.37 (2026)
The following table may be used to determine eligibility for a permanent exemption based on oil and natural gas savings.
Average Annual Utilization of Oil and Natural Gas for Electricity Generation by State
[BTU's per KWHR sold]
State name
Oil/gas savings Btu/kWh
Alabama
33
Arizona
802
Arkansas
1,363
California
3,502
Colorado
289
Connecticut
3,924
Delaware
3,478
Washington, DC.
895
Florida
3,177
Georgia
45
Idaho
0
Illinois
250
Indiana
53
Iowa
147
Kansas
686
Kentucky
34
Louisiana
4,189
Maine
2,560
Maryland
895
Massachusetts
5,250
Michigan
256
Minnesota
151
Mississippi
1,519
Missouri
57
Montana
60
Nebraska
139
Nevada
761
New Hampshire
2,695
New Jersey
1,894
New Mexico
1,528
New York
4,219
North Carolina
49
North Dakota
47
Ohio
36
Oklahoma
5,180
Oregon
0
Pennsylvania
771
Rhode Island
1,800
South Carolina
24
South Dakota
36
Tennessee
20
Texas
4,899
Utah
107
Vermont
105
Virginia
460
Washington
3
West Virginia
126
Wisconsin
72
Wyoming
75
Data are based upon 1987 oil, natural gas and electricity statistics published by DOE's Energy Information Administration.
Example:
The proposed cogeneration project is to be located in Massachusetts and is to use distillate oil. It will have a capacity of 50 MW, an average annual heat rate of 7600 BTU/KWHR, and be operated at a capacity factor of 90%. The annual fuel consumption is therefore calculated to be 2,996 × 10
9
Btu/yr. (50,000 KW × 7600 BTU/KWHR × .9 × 8760 HR/YR) The oil and gas backed off the grid would be calculated to be .2070 × 10
9
BTU/YR. (50,000 KW × 5250 BTU/KWHR × .9 × 8760 HR/YR) since the proposed unit would consume more oil that would be “backed off” the grid, the unit would not be eligible for a permanent exemption based on savings of oil and natural gas.
[54 FR 52895, Dec. 22, 1989]