[Congressional Record Volume 162, Number 16 (Wednesday, January 27, 2016)]
[Senate]
[Pages S260-S262]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2967. Mrs. SHAHEEN submitted an amendment intended to be proposed
by her to the bill S. 2012, to provide for the modernization of the
energy policy of the United States, and for other purposes; which was
ordered to lie on the table; as follows:
At the end of title II, add the following:
Subtitle F--Heat Efficiency Through Applied Technology
SEC. 2501. SHORT TITLE.
This subtitle may be cited as the ``Heat Efficiency through
Applied Technology Act'' or the ``HEAT Act''.
SEC. 2502. FINDINGS.
Congress finds that--
(1) combined heat and power technology, also known as
cogeneration, is a technology that efficiently produces
electricity and thermal energy at the point of use of the
technology;
(2) by combining the provision of both electricity and
thermal energy in a single step, combined heat and power
technology makes significantly more-efficient use of fuel, as
compared to separate generation of heat and power, which has
significant economic and environmental advantages;
(3) waste heat to power is a technology that captures heat
discarded by an existing industrial process and uses that
heat to generate power with no additional fuel and no
incremental emissions, reducing the need for electricity from
other sources and the grid, and any associated emissions;
(4) waste heat or waste heat to power is considered
renewable energy in 17 States;
(5)(A) a 2012 joint report by the Department of Energy and
the Environmental Protection Agency estimated that by
achieving the national goal outlined in Executive Order 13624
(77 Fed. Reg. 54779) (September 5, 2012) of deploying 40
gigawatts of new combined heat and power technology by 2020,
the United States would increase the total combined heat and
power capacity of the United States by 50 percent in less
than a decade; and
(B) additional efficiency would--
(i) save 1,000,000,000,000,000 BTUs of energy; and
(ii) reduce emissions by 150,000,000 metric tons of carbon
dioxide annually, a quantity equivalent to the emissions from
more than 25,000,000 cars;
(6) a 2012 report by the Environmental Protection Agency
estimated the amount of waste heat available at a temperature
high enough for power generation from industrial and
nonindustrial applications represents an additional 10
gigawatts of electric generating capacity on a national
basis;
(7) distributed energy generation, including through
combined heat and power technology and waste heat to power
technology, has ancillary benefits, such as--
(A) removing load from the electricity distribution grid;
and
(B) improving the overall reliability of the electricity
distribution system; and
(8)(A) a number of regulatory barriers impede broad
deployment of combined heat and power technology and waste
heat to power technology; and
(B) a 2008 study by Oak Ridge National Laboratory
identified interconnection issues, regulated fees and
tariffs, and environmental permitting as areas that could be
streamlined with respect to the provision of combined heat
and power technology and waste heat to power technology.
SEC. 2503. DEFINITIONS.
(a) In General.--In this subtitle:
(1) Combined heat and power technology.--The term
``combined heat and power technology'' means the generation
of electric energy and heat in a single, integrated system
that meets the efficiency criteria in clauses (ii) and (iii)
of section 48(c)(3)(A) of the Internal Revenue Code of 1986,
under which heat that is conventionally rejected is recovered
and used to meet thermal energy requirements.
(2) Output-based emission standard.--The term ``output-
based emission standard'' means a standard that relates
emissions to the electrical, thermal, or mechanical
productive output of a device or process rather than the heat
input of fuel burned or pollutant concentration in the
exhaust.
(3) Qualified waste heat resource.--
(A) In general.--The term ``qualified waste heat resource''
means--
(i) exhaust heat or flared gas from any industrial process;
(ii) waste gas or industrial tail gas that would otherwise
be flared, incinerated, or vented;
(iii) a pressure drop in any gas for an industrial or
commercial process; or
(iv) any other form of waste heat resource as the Secretary
may determine.
(B) Exclusion.--The term ``qualified waste heat resource''
does not include a heat resource from a process the primary
purpose of which is the generation of electricity using a
fossil fuel.
(4) Waste heat to power technology.--The term ``waste heat
to power technology'' means a system that generates
electricity through the recovery of a qualified waste heat
resource.
(b) PURPA Definitions.--Section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602) is amended
by adding at the end the following:
``(22) Combined heat and power technology.--The term
`combined heat and power technology' means the generation of
electric energy and heat in a single, integrated system that
meets the efficiency criteria in clauses (ii) and (iii) of
section 48(c)(3)(A) of the Internal Revenue Code of 1986,
under which heat that is conventionally rejected is recovered
and used to meet thermal energy requirements.
``(23) Qualified waste heat resource.--
``(A) In general.--The term `qualified waste heat resource'
means--
``(i) exhaust heat or flared gas from any industrial
process;
``(ii) waste gas or industrial tail gas that would
otherwise be flared, incinerated, or vented;
``(iii) a pressure drop in any gas for an industrial or
commercial process; or
``(iv) any other form of waste heat resource as the
Secretary may determine.
``(B) Exclusion.--The term `qualified waste heat resource'
does not include a heat resource from a process the primary
purpose of which is the generation of electricity using a
fossil fuel.
``(24) Waste heat to power technology.--The term `waste
heat to power technology' means a system that generates
electricity through the recovery of a qualified waste heat
resource.''.
SEC. 2504. UPDATED INTERCONNECTION PROCEDURES AND TARIFF
SCHEDULE.
(a) Adoption of Standards.--Section 111(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))
is amended by adding at the end the following:
``(20) Updated interconnection procedures and tariff
schedule.--
``(A) In general.--Not later than 1 year after the date of
enactment of this paragraph, the Secretary, in consultation
with the Commission and other appropriate agencies, shall
establish, for generation with nameplate capacity up to 20
megawatts using all fuels--
``(i) guidance for technical interconnection standards that
ensure interoperability with existing Federal interconnection
rules;
``(ii) model interconnection procedures, including
appropriate fast track procedures; and
``(iii) model rules for determining and assigning
interconnection costs.
``(B) Standards.--The standards established under
subparagraph (A) shall, to the
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maximum extent practicable, reflect current best practices
(as demonstrated in model codes and rules adopted by States)
to encourage the use of distributed generation (such as
combined heat and power technology and waste heat to power
technology) while ensuring the safety and reliability of the
interconnected units and the distribution and transmission
networks to which the units connect.
``(C) Variations.--In establishing the model standards
under subparagraph (A), the Secretary shall consider the
appropriateness of using standards or procedures that vary
based on unit size, fuel type, or other relevant
characteristics.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(7)(A) Not later than 90 days after the date on which the
Secretary completes the standards required under section
111(d)(20), each State regulatory authority (with respect to
each electric utility for which the authority has ratemaking
authority) and each nonregulated electric utility shall
commence the consideration referred to in that section, or
set a hearing date for such consideration, with respect to
each standard.
``(B) Not later than 2 years after the date on which the
Secretary completes the standards required under section
111(d)(20), each State regulatory authority (with respect to
each electric utility for which the authority has ratemaking
authority) and each nonregulated electric utility shall--
``(i) complete the consideration under subparagraph (A);
``(ii) make the determination referred to in section 111
with respect to each standard established under section
111(d)(20); and
``(iii) submit to the Secretary and the Commission a report
detailing the updated plans of the State regulatory authority
for interconnection procedures and tariff schedules that
reflect best practices to encourage the use of distributed
generation.''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
is amended by adding at the end the following: ``In the case
of each standard established under paragraph (20) of section
111(d), the reference contained in this subsection to the
date of enactment of this Act shall be deemed to be a
reference to the date of enactment of that paragraph (20).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(g) Prior State Actions.--Subsections (b) and (c) shall
not apply to a standard established under paragraph (20) of
section 111(d) in the case of any electric utility in a State
if, before the date of enactment of this subsection--
``(1) the State has implemented for the electric utility
the standard (or a comparable standard);
``(2) the State regulatory authority for the State, or the
relevant nonregulated electric utility, has conducted a
proceeding after December 31, 2013, to consider
implementation of the standard (or a comparable standard) for
the electric utility; or
``(3) the State legislature has voted on the implementation
of the standard (or a comparable standard) for the electric
utility.''.
(B) Cross-reference.--Section 124 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2634) is amended
by adding at the end the following: ``In the case of each
standard established under paragraph (20) of section 111(d),
the reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to
the date of enactment of that paragraph (20).''.
SEC. 2505. SUPPLEMENTAL, BACKUP, AND STANDBY POWER FEES OR
RATES.
(a) Adoption of Standards.--Section 111(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))
(as amended by section 2504(a)) is amended by adding at the
end the following:
``(21) Supplemental, backup, and standby power fees or
rates.--
``(A) In general.--Not later than 1 year after the date of
enactment of this paragraph, the Secretary, in consultation
with the Commission and other appropriate agencies, shall
establish model rules and procedures for determining fees or
rates for supplementary power, backup or standby power,
maintenance power, and interruptible power supplied to
facilities that operate combined heat and power technology
and waste heat to power technology that appropriately allow
for adequate cost recovery by an electric utility but are not
excessive.
``(B) Factors.--In establishing model rules and procedures
for determining fees or rates described in subparagraph (A),
the Secretary shall consider--
``(i) the best practices that are used to model outage
assumptions and contingencies to determine the fees or rates;
``(ii) the appropriate duration, magnitude, or usage of
demand charge ratchets;
``(iii) the benefits to the utility and ratepayers, such as
increased reliability, fuel diversification, enhanced power
quality, and reduced electric losses from the use of combined
heat and power technology and waste heat to power technology
by a qualifying facility; and
``(iv) alternative arrangements to the purchase of
supplementary, backup, or standby power by the owner of
combined heat and power technology and waste heat to power
technology generating units if the alternative arrangements--
``(I) do not compromise system reliability; and
``(II) are nondiscretionary and nonpreferential.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) (as
amended by section 2504(b)(1)) is amended by adding at the
end the following:
``(8)(A) Not later than 90 days after the date on which the
Secretary completes the standards required under section
111(d)(21), each State regulatory authority (with respect to
each electric utility for which the authority has ratemaking
authority) and each nonregulated electric utility shall
commence the consideration referred to in that section, or
set a hearing date for such consideration, with respect to
each standard.
``(B) Not later than 2 years after the date on which the
Secretary completes the standards required under section
111(d)(21), each State regulatory authority (with respect to
each electric utility for which the authority has ratemaking
authority) and each nonregulated electric utility shall--
``(i) complete the consideration under subparagraph (A);
``(ii) make the determination referred to in section 111
with respect to each standard established under section
111(d)(21); and
``(iii) submit to the Secretary and the Commission a report
detailing the updated plans of the State regulatory authority
for supplemental, backup, and standby power fees that reflect
best practices to encourage the use of distributed
generation.''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
(as amended by section 2504(b)(2)) is amended by adding at
the end the following: ``In the case of each standard
established under paragraph (21) of section 111(d), the
reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to
the date of enactment of that paragraph (21).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) (as amended
by section 2504(b)(3)(A)) is amended by adding at the end the
following:
``(h) Prior State Actions.--Subsections (b) and (c) shall
not apply to a standard established under paragraph (21) of
section 111(d) in the case of any electric utility in a State
if, before the date of enactment of this subsection--
``(1) the State has implemented for the electric utility
the standard (or a comparable standard);
``(2) the State regulatory authority for the State, or the
relevant nonregulated electric utility, has conducted a
proceeding after December 31, 2013, to consider
implementation of the standard (or a comparable standard) for
the electric utility; or
``(3) the State legislature has voted on the implementation
of the standard (or a comparable standard) for the electric
utility.''.
(B) Cross-reference.--Section 124 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2634) (as amended
by section 2504(b)(3)(B)) is amended by adding at the end the
following: ``In the case of each standard established under
paragraph (21) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of that
paragraph (21).''.
SEC. 2506. UPDATING OUTPUT-BASED EMISSIONS STANDARDS.
(a) Establishment.--The Administrator of the Environmental
Protection Agency (referred to in this section as the
``Administrator'') shall establish a program under which the
Administrator shall provide to each State (as defined in
section 302 of the Clean Air Act (42 U.S.C. 7602)) that
elects to participate and that submits an application under
subsection (b) a grant for use by the State in accordance
with subsection (c).
(b) Application.--To be eligible to receive a grant under
this section, a State shall submit to the Administrator an
application at such time, in such manner, and containing such
information as the Administrator may require.
(c) Use of Funds.--
(1) In general.--A State shall use a grant provided under
this section--
(A) to update any applicable State or local air permitting
regulations under this subtitle to incorporate environmental
regulations relating to output-based emissions in accordance
with relevant guidelines developed by the Administrator under
paragraph (2); or
(B) if the State has already updated all applicable State
and local permitting regulations to incorporate those output-
based emissions environmental regulations, to expedite the
processing of relevant power generation permit applications
under this subtitle.
(2) Guidelines.--As soon as practicable after the date of
enactment of this Act, the Administrator shall publish
guidelines for updating State and local permitting
regulations under this subtitle that--
(A) provide credit, in the calculation of the emission rate
of the facility, for any thermal energy produced by combined
heat and power technology or waste heat to power technology;
and
(B) apply only to generation units that produce 5 megawatts
of electrical energy or less.
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(d) Maximum Amount.--The amount of a grant provided under
this section shall not exceed $100,000.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to the Administrator to carry out this
section $5,000,000.
______