[Congressional Record Volume 162, Number 17 (Thursday, January 28, 2016)]
[Senate]
[Pages S380-S382]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3113. Mr. FRANKEN submitted an amendment intended to be proposed
to amendment SA 2953 proposed by Ms. Murkowski 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 III, add the following:
Subtitle I--Distributed Generation
SEC. 3801. DEFINITIONS.
In this subtitle:
(1) Combined heat and power system.--The term ``combined
heat and power system'' means 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
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is conventionally rejected is recovered and used to meet
thermal energy requirements.
(2) Demand response.--The term ``demand response'' means
changes in electric usage by electric utility customers from
the normal consumption patterns of the customers in response
to--
(A) changes in the price of electricity over time; or
(B) incentive payments designed to induce lower electricity
use at times of high wholesale market prices or when system
reliability is jeopardized.
(3) Distributed energy.--The term ``distributed energy''
means energy sources and systems that--
(A) produce electric or thermal energy close to the point
of use using renewable energy resources or waste thermal
energy;
(B) generate electricity using a combined heat and power
system;
(C) distribute electricity in microgrids;
(D) store electric or thermal energy; or
(E) distribute thermal energy or transfer thermal energy to
building heating and cooling systems through a district
energy system.
(4) District energy system.--The term ``district energy
system'' means a system that provides thermal energy to
buildings and other energy consumers from 1 or more plants to
individual buildings to provide space heating, air
conditioning, domestic hot water, industrial process energy,
and other end uses.
(5) Islanding.--The term ``islanding'' means a distributed
generator or energy storage device continuing to power a
location in the absence of electric power from the primary
source.
(6) Loan.--The term ``loan'' has the meaning given the term
``direct loan'' in section 502 of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a).
(7) Microgrid.--The term ``microgrid'' means an integrated
energy system consisting of interconnected loads and
distributed energy resources, including generators and energy
storage devices, within clearly defined electrical boundaries
that--
(A) acts as a single controllable entity with respect to
the grid; and
(B) can connect and disconnect from the grid to operate in
both grid-connected mode and island mode.
(8) Renewable energy source.--The term ``renewable energy
source'' includes--
(A) biomass;
(B) geothermal energy;
(C) hydropower;
(D) landfill gas;
(E) municipal solid waste;
(F) ocean (including tidal, wave, current, and thermal)
energy;
(G) organic waste;
(H) photosynthetic processes;
(I) photovoltaic energy;
(J) solar energy; and
(K) wind.
(9) Renewable thermal energy.--The term ``renewable thermal
energy'' means heating or cooling energy derived from a
renewable energy resource.
(10) Thermal energy.--The term ``thermal energy'' means--
(A) heating energy in the form of hot water or steam that
is used to provide space heating, domestic hot water, or
process heat; or
(B) cooling energy in the form of chilled water, ice, or
other media that is used to provide air conditioning, or
process cooling.
(11) Waste thermal energy.--The term ``waste thermal
energy'' means energy that--
(A) is contained in--
(i) exhaust gases, exhaust steam, condenser water, jacket
cooling heat, or lubricating oil in power generation systems;
(ii) exhaust heat, hot liquids, or flared gas from any
industrial process;
(iii) waste gas or industrial tail gas that would otherwise
be flared, incinerated, or vented;
(iv) a pressure drop in any gas, excluding any pressure
drop to a condenser that subsequently vents the resulting
heat;
(v) condenser water from chilled water or refrigeration
plants; or
(vi) any other form of waste energy, as determined by the
Secretary; and
(B)(i) in the case of an existing facility, is not being
used; or
(ii) in the case of a new facility, is not conventionally
used in comparable systems.
SEC. 3802. DISTRIBUTED ENERGY LOAN PROGRAM.
(a) Loan Program.--
(1) In general.--Subject to the provisions of this
subsection and subsections (b) and (c), the Secretary shall
establish a program to provide to eligible entities--
(A) loans for the deployment of distributed energy systems
in a specific project; and
(B) loans to provide funding for programs to finance the
deployment of multiple distributed energy systems through a
revolving loan fund, credit enhancement program, or other
financial assistance program.
(2) Eligibility.--Entities eligible to receive a loan under
paragraph (1) include--
(A) a State, territory, or possession of the United States;
(B) a State energy office;
(C) a tribal organization (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b));
(D) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)); and
(E) an electric utility, including--
(i) a rural electric cooperative;
(ii) a municipally-owned electric utility; and
(iii) an investor-owned utility.
(3) Selection requirements.--In selecting eligible entities
to receive loans under this section, the Secretary shall, to
the maximum extent practicable, ensure--
(A) regional diversity among eligible entities to receive
loans under this section, including participation by rural
States and small States; and
(B) that specific projects selected for loans--
(i) expand on the existing technology deployment program of
the Department; and
(ii) are designed to achieve 1 or more of the objectives
described in paragraph (4).
(4) Objectives.--Each deployment selected for a loan under
paragraph (1) shall include 1 or more of the following
objectives:
(A) Improved security and resiliency of energy supply in
the event of disruptions caused by extreme weather events,
grid equipment or software failure, or terrorist acts.
(B) Implementation of distributed energy in order to
increase use of local renewable energy resources and waste
thermal energy sources.
(C) Enhanced feasibility of microgrids, demand response, or
islanding.
(D) Enhanced management of peak loads for consumers and the
grid.
(E) Enhanced reliability in rural areas, including high
energy cost rural areas.
(5) Restriction on use of funds.--Any eligible entity that
receives a loan under paragraph (1) may only use the loan to
fund programs relating to the deployment of distributed
energy systems.
(b) Loan Terms and Conditions.--
(1) Terms and conditions.--Notwithstanding any other
provision of law, in providing a loan under this section, the
Secretary shall provide the loan on such terms and conditions
as the Secretary determines, after consultation with the
Secretary of the Treasury, in accordance with this section.
(2) Specific appropriation.--No loan shall be made unless
an appropriation for the full amount of the loan has been
specifically provided for that purpose.
(3) Repayment.--No loan shall be made unless the Secretary
determines that there is reasonable prospect of repayment of
the principal and interest by the borrower of the loan.
(4) Interest rate.--A loan provided under this section
shall bear interest at a fixed rate that is equal or
approximately equal, in the determination of the Secretary,
to the interest rate for Treasury securities of comparable
maturity.
(5) Term.--The term of the loan shall require full
repayment over a period not to exceed the lesser of--
(A) 20 years; or
(B) 90 percent of the projected useful life of the physical
asset to be financed by the loan (as determined by the
Secretary).
(6) Use of payments.--Payments of principal and interest on
the loan shall--
(A) be retained by the Secretary to support energy research
and development activities; and
(B) remain available until expended, subject to such
conditions as are contained in annual appropriations Acts.
(7) No penalty on early repayment.--The Secretary may not
assess any penalty for early repayment of a loan provided
under this section.
(8) Return of unused portion.--In order to receive a loan
under this section, an eligible entity shall agree to return
to the general fund of the Treasury any portion of the loan
amount that is unused by the eligible entity within a
reasonable period of time after the date of the disbursement
of the loan, as determined by the Secretary.
(9) Comparable wage rates.--Each laborer and mechanic
employed by a contractor or subcontractor in performance of
construction work financed, in whole or in part, by the loan
shall be paid wages at rates not less than the rates
prevailing on similar construction in the locality as
determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States Code.
(c) Rules and Procedures; Disbursement of Loans.--
(1) Rules and procedures.--Not later than 180 days after
the date of enactment of this Act, the Secretary shall adopt
rules and procedures for carrying out the loan program under
subsection (a).
(2) Disbursement of loans.--Not later than 1 year after the
date on which the rules and procedures under paragraph (1)
are established, the Secretary shall disburse the initial
loans provided under this section.
(d) Reports.--Not later than 2 years after the date of
receipt of the loan, and annually thereafter for the term of
the loan, an eligible entity that receives a loan under this
section shall submit to the Secretary a report describing the
performance of each program and activity carried out using
the loan, including itemized loan performance data.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as are
necessary.
SEC. 3803. TECHNICAL ASSISTANCE AND GRANT PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary shall establish a technical
assistance and grant program (referred to in this section as
the ``program'')--
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(A) to disseminate information and provide technical
assistance directly to eligible entities so the eligible
entities can identify, evaluate, plan, and design distributed
energy systems; and
(B) to make grants to eligible entities so that the
eligible entities may contract to obtain technical assistance
to identify, evaluate, plan, and design distributed energy
systems.
(2) Technical assistance.--The technical assistance
described in paragraph (1) shall include assistance with 1 or
more of the following activities relating to distributed
energy systems:
(A) Identification of opportunities to use distributed
energy systems.
(B) Assessment of technical and economic characteristics.
(C) Utility interconnection.
(D) Permitting and siting issues.
(E) Business planning and financial analysis.
(F) Engineering design.
(3) Information dissemination.--The information
disseminated under paragraph (1)(A) shall include--
(A) information relating to the topics described in
paragraph (2), including case studies of successful examples;
(B) computer software and databases for assessment, design,
and operation and maintenance of distributed energy systems;
and
(C) public databases that track the operation and
deployment of existing and planned distributed energy
systems.
(b) Eligibility.--Any nonprofit or for-profit entity shall
be eligible to receive technical assistance and grants under
the program.
(c) Applications.--
(1) In general.--An eligible entity desiring technical
assistance or grants under the program shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(2) Application process.--The Secretary shall seek
applications for technical assistance and grants under the
program--
(A) on a competitive basis; and
(B) on a periodic basis, but not less frequently than once
each year.
(3) Priorities.--In selecting eligible entities for
technical assistance and grants under the program, the
Secretary shall give priority to eligible entities with
projects that have the greatest potential for--
(A) facilitating the use of renewable energy resources;
(B) strengthening the reliability and resiliency of energy
infrastructure to the impact of extreme weather events, power
grid failures, and interruptions in supply of fossil fuels;
(C) improving the feasibility of microgrids or islanding,
particularly in rural areas, including high energy cost rural
areas;
(D) minimizing environmental impact, including regulated
air pollutants and greenhouse gas emissions; and
(E) maximizing local job creation.
(d) Grants.--On application by an eligible entity, the
Secretary may award grants to the eligible entity to provide
funds to cover not more than--
(1) 100 percent of the costs of the initial assessment to
identify opportunities;
(2) 75 percent of the cost of feasibility studies to assess
the potential for the implementation;
(3) 60 percent of the cost of guidance on overcoming
barriers to implementation, including financial, contracting,
siting, and permitting issues; and
(4) 45 percent of the cost of detailed engineering.
(e) Rules and Procedures.--
(1) Rules.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall adopt rules and
procedures for carrying out the program.
(2) Grants.--Not later than 120 days after the date of
issuance of the rules and procedures for the program, the
Secretary shall issue grants under this subtitle.
(f) Reports.--The Secretary shall submit to Congress and
make available to the public--
(1) not less frequently than once every 2 years, a report
describing the performance of the program under this section,
including a synthesis and analysis of the information
provided in the reports submitted to the Secretary under
section 3802(d); and
(2) on termination of the program under this section, an
assessment of the success of, and education provided by, the
measures carried out by eligible entities during the term of
the program.
(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $250,000,000 for
the period of fiscal years 2017 through 2021, to remain
available until expended.
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