[Congressional Record Volume 162, Number 29 (Wednesday, February 24, 2016)]
[Senate]
[Page S1005]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3316. Mrs. SHAHEEN 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 subtitle D of title II, add the following:

     SEC. 23__. MODEL GUIDANCE FOR COMBINED HEAT AND POWER SYSTEMS 
                   AND WASTE HEAT TO POWER SYSTEMS.

       (a) Definitions.--In this section:
       (1) Additional services.--The term ``additional services'' 
     means the provision of supplementary power, backup or standby 
     power, maintenance power, or interruptible power to an 
     electric consumer by an electric utility.
       (2) Waste heat to power system.--
       (A) In general.--The term ``waste heat to power system'' 
     means a system that generates electricity through the 
     recovery of waste energy.
       (B) Exclusion.--The term ``waste heat to power system'' 
     does not include a system that generates electricity through 
     the recovery of a heat resource from a process the primary 
     purpose of which is the generation of electricity using a 
     fossil fuel.
       (3) Other terms.--
       (A) PURPA.--The terms ``electric consumer'', ``electric 
     utility'', ``interconnection service'', ``nonregulated 
     electric utility'', and ``State regulatory authority'' have 
     the meanings given those terms in the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.), 
     within the meaning of title I of that Act (16 U.S.C. 2611 et 
     seq.).
       (B) EPCA.--The terms ``combined heat and power system'' and 
     ``waste energy'' have the meanings given those terms in 
     section 371 of the Energy Policy and Conservation Act (42 
     U.S.C. 6341).
       (b) Review.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Federal Energy Regulatory Commission and other 
     appropriate entities, shall review existing rules and 
     procedures relating to interconnection service and additional 
     services throughout the United States for electric generation 
     with nameplate capacity up to 20 megawatts to identify 
     barriers to the deployment of combined heat and power systems 
     and waste heat to power systems.
       (2) Inclusion.--The review under this subsection shall 
     include a review of existing rules and procedures relating 
     to--
       (A) determining and assigning costs of interconnection 
     service and additional services; and
       (B) ensuring adequate cost recovery by an electric utility 
     for interconnection service and additional services.
       (c) Model Guidance.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Federal Energy Regulatory Commission and other 
     appropriate entities, shall issue model guidance for 
     interconnection service and additional services for use by 
     State regulatory authorities and nonregulated electric 
     utilities to reduce the barriers identified under subsection 
     (b)(1).
       (2) Current best practices.--The model guidance issued 
     under this subsection shall reflect, to the maximum extent 
     practicable, current best practices to encourage the 
     deployment of combined heat and power systems and waste heat 
     to power systems while ensuring the safety and reliability of 
     the interconnected units and the distribution and 
     transmission networks to which the units connect, including--
       (A) relevant current standards developed by the Institute 
     of Electrical and Electronic Engineers; and
       (B) model codes and rules adopted by--
       (i) States; or
       (ii) associations of State regulatory agencies.
       (3) Factors for consideration.--In establishing the model 
     guidance under this subsection, the Secretary shall take into 
     consideration--
       (A) the appropriateness of using standards or procedures 
     for interconnection service that vary based on unit size, 
     fuel type, or other relevant characteristics;
       (B) the appropriateness of establishing fast-track 
     procedures for interconnection service;
       (C) the value of consistency with Federal interconnection 
     rules established by the Federal Energy Regulatory Commission 
     as of the date of enactment of this Act;
       (D) the best practices used to model outage assumptions and 
     contingencies to determine fees or rates for additional 
     services;
       (E) the appropriate duration, magnitude, or usage of demand 
     charge ratchets;
       (F) potential alternative arrangements with respect to the 
     procurement of additional services, including--
       (i) contracts tailored to individual electric consumers for 
     additional services;
       (ii) procurement of additional services by an electric 
     utility from a competitive market; and
       (iii) waivers of fees or rates for additional services for 
     small electric consumers; and
       (G) outcomes such as increased electric reliability, fuel 
     diversification, enhanced power quality, and reduced electric 
     losses that may result from increased use of combined heat 
     and power systems and waste heat to power systems.
                                 ______