California Public Utilities Code Section 216.6

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"Cogeneration" means the sequential use of energy for the
production of electrical and useful thermal energy. The sequence can
be thermal use followed by power production or the reverse, subject
to the following standards:
   (a) At least 5 percent of the facility's total annual energy
output shall be in the form of useful thermal energy.
   (b) Where useful thermal energy follows power production, the
useful annual power output plus one-half the useful annual thermal
energy output equals not less than 42.5 percent of any natural gas
and oil energy input.

Last modified: July 31, 2008