(3)__A cogeneration facility is eligible for a partial exemption under this section.__The exemption is calculated by multiplying the value of the cogeneration facility by a fraction, the numerator of which is the total amount of useful energy produced by the facility during the property tax year immediately preceding the property tax year for which a claim is being made that is directly used by a manufacturing facility without transmission over the facilities of a transmission and distribution utility, and the denominator of which is the total amount of useful energy produced by the facility during the property tax year immediately preceding the property tax year for which a claim is being made.

(4)__For purposes of this paragraph, unless the context otherwise indicates, the following terms have the following meanings.

(a) "Cogeneration facility" means the eligible business equipment within a facility that produces electrical energy, thermal energy or both for commercial or industrial use when less than 2/3 of the useful energy produced by the facility during the property tax year is sold and transmitted directly or indirectly through the facilities of a transmission and distribution utility.__ "Cogeneration facility" includes eligible business equipment within a heat recovery steam generator.

(b)__"Transmission and distribution utility" has the same meaning as defined in Title 35-A, section 102, subsection 20-B.

(c)__"Useful energy" is energy in any form that does not include waste heat, efficiency losses, line losses or other energy dissipation.

B.__Pollution control facilities that are entitled to exemption pursuant to section 656, subsection 1, paragraph E are not entitled to an exemption under this section, except that such property is entitled to exemption under this section if: