[Congressional Record Volume 161, Number 89 (Thursday, June 4, 2015)]
[Senate]
[Pages S3779-S3780]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself and Mr. Casey):
  S. 1516. A bill to amend the Internal Revenue Code of 1986 to modify 
the energy credit to provide greater incentives for industrial energy 
efficiency; to the Committee on Finance.
  Ms. COLLINS. Mr. President, I am pleased to be joined by my 
colleague, the distinguished Senator from Pennsylvania, Mr. Casey, in 
introducing the Power Efficiency and Resilience, POWER, Act.
  The POWER Act would expand tax incentives for industrial energy 
efficiency systems, including combined heat and power, CHP, and waste 
heat to power, WHP, technologies, making

[[Page S3780]]

the incentives more accessible an providing parity with other forms of 
renewable energy. The upfront costs of CHP and WHP can be expensive, 
and facilities seeking to lower their energy bills often lack access to 
the capital needed for purchasing the equipment. The POWER Act aims to 
spur investment in these efficient technologies that capture wasted 
heat from electricity generation and industrial processes and use it to 
heat or cool buildings or to generate additional electricity. Capturing 
this otherwise wasted resource has the potential to increase electrical 
generation efficiency by nearly 80 percent and reduce electricity costs 
for industrial users.
  While technologies such as solar energy and fuel cells currently 
benefit from a 30 percent investment tax credit, ITC, the incentives 
for CHP are more limited. CHP systems are only eligible for a 10 
percent ITC for the first 15 megawatts, MW, of projects that are 
smaller than 50 MW in capacity. Moreover, while WHP has the potential 
to produce 15 gigawatts of emissions-free electricity nationwide, it 
currently does not qualify for the ITC. The limits on the size and 
scope of the ITC have hampered companies from making important 
investments to increase their efficiency. The POWER Act would increase 
the ITC for CHP to 30 percent, allow WHP to qualify for the credit, 
remove the limit on project size to ensure large industrial systems are 
eligible, and extend the credit through December 2018 to allow time for 
equipment purchase, installation, and permitting.
  By making our industrial sector more efficient, we would be reducing 
costs for manufacturers and helping them to better compete in the 
global marketplace. CHP can also help us be a more resilient nation. 
Critical institutions that have combined heat and power can keep the 
power on even when the lights go out. That is why some hospitals, 
wastewater treatment plants, and military bases are installing CHP--
they have to keep operating even in extreme weather or during 
blackouts. The POWER Act can save energy, reduce costs, build 
resilience, and reduce emissions.
  Woodard & Curran, headquartered in Portland, Maine, noted in its 
support for the bill that the POWER Act: ``. . . will allow more 
companies to reduce energy use and costs by installing combined heat 
and power, CHP, systems. As a developer of such projects, we know that 
this technology poses a significant opportunity to generate new 
businesses, create jobs, and reduce our Nation's energy consumption. 
CHP is still largely an untapped resource, and we could double its 
installed capacity over the next decade with the right policies in 
place.'' Another company in Scarborough, ME, Self-Gen, Inc., stated: 
``Every year, the United States sends enough wasted heat from 
electricity generation up our chimneys to power Japan. Combined heat 
and power can harness this heat as a resource to create more 
electricity, nearly doubling efficiency. Senator Collins' POWER Act 
will help us use this technology throughout Maine and across the 
nation, moving the United States towards increased energy 
independence.''
  The POWER Act would allow more U.S. companies to install CHP and WHP 
systems, which would help improve the energy efficiency and lower costs 
for some of the largest energy users. The legislation has the support 
of a broad coalition of businesses from across the country, several 
environmental organizations, and a number of trade associations. I urge 
my colleagues on both sides of the aisle to support this legislation.

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