Learn about AB 1613

This page provides an overview of the PG&E FiT program for new and efficient CHP facilities.


PLEASE NOTE: FiT is pursuant to Assembly Bill (AB) 1613 (Stats. 2007, Ch. 713). The bill is known as the "Waste Heat and Carbon Emissions Reduction Act" (Act). Information about the bill is located in California Public Utilities Code section 2840.




Understanding AB 1613 and its requirements

AB 1613 encourages the development of new CHP facilities in California. Under this program, PG&E purchases excess power from facilities that meet qualifications defined by the Public Utilities Regulatory Policy Act (PURPA).


Qualifications include:

  • Have a generating capacity of not more than 20 megawatts ("MW")
  • Began operations no earlier than January 1, 2008
  • Meet the efficiency requirements issued by the California Energy Commission (CEC) for CHP facilities according to AB 1613

The all-in price that PG&E pays is:

  • Adopted by the California Public Utilities Commission (CPUC)
  • Based on the capital cost of a combined cycle gas turbine
  • Based on a variable natural gas based price.

Visit Prices for Qualifying Facilities & Eligible Combined Heat and Power Facilities


Learn about the types of agreements

A 10 percent energy price adder “location bonus” can apply if the California Independent System Operator (CAISO) identifies generators interconnected in an area as having local resource adequacy requirements. The term of the agreement is from one to ten years.

Depending on the size of the generator, PG&E’s AB 1613 tariff offers three contracts or power purchase agreements (PPAs). The contracts are approved by the CPUC and cannot be modified or negotiated. Download your choice of contract:


Learn more about AB 1613 Rulemaking and final decision

Prices, terms and conditions of the contracts were agreed upon in a final decision and during AB 1613 Rulemaking 08-06-024. View more information about the decision:


More information about the Act is located in CPUC Code section 2840.


Determining location bonus eligibility for AB 1613 facilities

PG&E has a list of substations that are eligible for a location bonus.
Visit Local Capacity Area Substation List (PDF, 4390KB)


These substations are located within Local Resource Adequacy (RA) areas, also known as Location Bonus areas. If you are seeking a location bonus, PG&E Energy Procurement Contract Management requires the following documentation:

  • Proof that the substation location resided in a Location Bonus area.
  • Evidence that it was located in the Location Bonus area during the contract year.
  • Verification that the AB 1613 generating facility was interconnected to the substation prior to commercial operation under AB 1613 PPA.

Updates to the substation list are expected. The updates are based on the annual adoption of the Local Resource Adequacy program requirements by the CPUC and the annual identification of substations within RA Areas as determined by CAISO.

PG&E is not responsible for inconsistencies between the Location Bonus areas, Local RA areas and the substations listed. Learn more about the Local Resource Adequacy areas by:


Contact us

Get answers if you have further questions. Visit AB 1613 Frequently Asked Questions or send an email to: AB1613inquiries@pge.com. PG&E typically responds within two business days.