For purposes of this article, the following terms have the
following meanings:
   (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) Is interconnected to, and operates in parallel with, the
electric transmission and distribution grid.
   (2) Is sized to meet the eligible customer-generator's onsite
thermal demand.
   (3) Meets the efficiency standards of subdivisions (a) and (d),
and the greenhouse gases emissions performance standard of
subdivision (f) of Section 2843.
   (b) "Eligible customer-generator" means a customer of an
electrical corporation that meets both of the following requirements:
   (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) 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.
   (c) "Electrical corporation" has the same meaning as defined in
Section 218.
   (d) "Energy Commission" means the State Energy Resources
Conservation and Development Commission.
   (e) "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.
   (f) "Greenhouse gas" or "greenhouse gases" includes all of the
following gases: carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.