,,ii  #aacth ,,congress  #ast ,session  
,s4 #abje  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #bj1     
#bjac ,mr4 ,franken introduced the      
following bill2 which was read twice and
 referred to the ,committee on ,energy  
and ,natural ,resources  ,a ,,bill  ,to 
reduce energy waste1 strengthen energy  
system resiliency1 increase industrial  
competitiveness1 and promote local      
economic development by helping public  
and private entities to assess and      
implement energy systems that recover   
and use waste heat and local renewable  
energy resources4  #a4 ,short title     
,this ,act may be cited as the ,local   
,energy ,supply and ,resiliency ,act of 
#bjac4  #b4 ,findings and purposes  7a7 
,findings ,congress finds that--  7#a7 a
 quantity of energy that is more than-- 
7,a7 #bg percent of the total energy    
consumption in the ,united ,states is   
released from power plants in the form  
of waste heat2 and  7,b7 #cf percent of 
the total energy consumption in the     

,united ,states is released from power  
plants1 industrial facilities1 and other
 buildings in the form of waste heat2   
7#b7 waste heat can be--  7,a7 recovered
 and distributed to meet building       
heating or industrial process heating   
requirements2  7,b7 converted to chilled
 water for air conditioning or          
industrial process cooling2 or  7,c7    
converted to electricity2  7#c7         
renewable energy resources in           
communities in the ,united ,states can  
be used to meet local thermal and       
electric energy requirements2  7#d7 use 
of local energy resources and           
implementation of local energy          
infrastructure can strengthen the       
reliability and resiliency of energy    
supplies in the ,united ,states in      
response to extreme weather events1     
power grid failures1 or interruptions in
 the supply of fossil fuels2  7#e7 use  
of local waste heat and renewable energy
 resources--  7,a7 strengthens ,united  
,states industrial competitiveness2     

7,b7 helps reduce reliance on fossil    
fuels and the associated emissions of   
air pollution and carbon dioxide2  7,c7 
increases energy supply resiliency and  
security2 and  7,d7 keeps more energy   
dollars in local economies1 thereby     
creating jobs2  7#f7 district energy    
systems represent a key opportunity to  
tap waste heat and renewable energy     
resources2  7#g7 district energy systems
 are important for expanding            
implementation of combined heat and     
power 7,,chp7 systems because district  
energy systems provide infrastructure   
for delivering thermal energy from a    
,,chp system to a substantial base of   
end users2  7#h7 district energy systems
 serve colleges1 universities1          
hospitals1 airports1 military bases1 and
 downtown areas2  7#i7 district energy  
systems help cut peak power demand and  
reduce power transmission and           
distribution system constraints by--    
7,a7 shifting power demand through      
thermal storage2  7,b7 generating power 

near load centers with a ,,chp system2  
and  7,c7 meeting air conditioning      
demand through the delivery of chilled  
water produced with heat generated by a 
,,chp system or other energy sources2   
7#aj7 evaluation and implementation of  
district energy systems--  7,a7 is a    
complex undertaking involving a variety 
of technical1 economic1 legal1 and      
institutional issues and barriers2 and  
7,b7 often requires technical assistance
 to successfully navigate these         
barriers2 and  7#aa7 a major constraint 
to the use of local waste heat and      
renewable energy resources is a lack of 
low-interest1 long-term capital funding 
for implementation4  7b7 ,purposes ,the 
purposes of this ,act are--  7#a7 to    
encourage the use and distribution of   
waste heat and renewable thermal        
energy--  7,a7 to reduce fossil fuel    
consumption2  7,b7 to enhance energy    
supply resiliency1 reliability1 and     
security2  7,c7 to reduce air pollution 
and greenhouse gas emissions2  7,d7 to  

strengthen industrial competitiveness2  
and  7,e7 to retain more energy dollars 
in local economies2 and  7#b7 to        
facilitate the implementation of a local
 energy infrastructure that accomplishes
 the goals described in paragraph 7#a7  
by--  7,a7 providing technical          
assistance to evaluate1 design1 and     
develop projects to build local energy  
infrastructure2 and  7,b7 facilitating  
low-cost financing for the construction 
of local energy infrastructure through  
the issuance of loan guarantees4  #c4   
,definitions  7#a7 ,combined heat and   
power system ,the term combined heat and
 power system or ,,chp system means     
generation of electric energy and heat  
in a single1 integrated system that     
meets the efficiency criteria in clauses
 7ii7 and 7iii7 of section              
#dh7;c77#c77;,a7 of the ,internal       
,revenue ,code of #aihf1 under which    
heat that is conventionally rejected is 
recovered and used to meet thermal      
energy requirements4  7#b7 ,district    

energy system ,the term district energy 
system means a system that provides     
thermal energy to buildings and other   
energy consumers from #a or more plants 
to individual buildings to provide space
 heating1 air conditioning1 domestic hot
 water1 industrial process energy1 and  
other end uses4  7#c7 ,loan guarantee   
program ,the term ,loan ,guarantee      
,program means the ,local ,energy       
,infrastructure ,loan ,guarantee        
,program established under section #e4  
7#d7 ,local energy infrastructure ,the  
term local energy infrastructure means a
 system that--  7,a7 recovers or        
produces useful thermal or electric     
energy from waste energy or renewable   
energy resources2  7,b7 generates       
electricity using a combined heat and   
power system2  7,c7 distributes         
electricity in microgrids2  7,d7 stores 
thermal energy2 or  7,e7 distributes    
thermal energy or transfers thermal     
energy to building heating and cooling  
systems via a district energy system4   

7#e7 ,microgrid ,the term microgrid     
means a group of interconnected loads   
and distributed energy resources within 
clearly defined electrical boundaries   
that--  7,a7 acts as a single           
controllable entity with respect to the 
grid2 and  7,b7 can connect and         
disconnect from the grid to enable the  
microgrid to operate in both            
grid-connected or island-mode4  7#f7    
,renewable energy resource ,the term    
renewable energy resource means--  7,a7 
closed-loop and open-loop biomass 7as   
defined in paragraphs 7#b7 and 7#c71    
respectively1 of section #de7;c7 of the 
,internal ,revenue ,code of #aihf72     
7,b7 gaseous or liquid fuels produced   
from the materials described in         
subparagraph 7,a72  7,c7 geothermal     
energy 7as defined in section           
#de7;c77#d7 of such ,code72  7,d7       
municipal solid waste 7as defined in    
section #de7;c77#f7 of such ,code72 or  
7,e7 solar energy 7which is used1       
undefined1 in section #de of such       

,code74  7#g7 ,renewable thermal energy 
,the term renewable thermal energy      
means--  7,a7 heating or cooling energy 
derived from a renewable energy         
resource2  7,b7 natural sources of      
cooling such as cold lake or ocean      
water2 or  7,c7 other renewable thermal 
energy sources1 as determined by the    
,secretary4  7#h7 ,secretary ,the term  
,secretary means the ,secretary of      
,energy4  7#i7 ,thermal energy ,the term
 thermal energy means--  7,a7 heating   
energy in the form of hot water or steam
 that is used to provide space heating1 
domestic hot water1 or process heat2 or 
7,b7 cooling energy in the form of      
chilled water1 ice or other media that  
is used to provide air conditioning1 or 
process cooling4  7#aj7 ,waste energy   
,the term waste energy means energy     
that--  7,a7 is contained in--  7i7     
exhaust gases1 exhaust steam1 condenser 
water1 jacket cooling heat1 or          
lubricating oil in power generation     
systems2  7ii7 exhaust heat1 hot        

liquids1 or flared gas from any         
industrial process2  7iii7 waste gas or 
industrial tail gas that would otherwise
 be flared1 incinerated1 or vented2     
7iv7 a pressure drop in any gas1        
excluding any pressure drop to a        
condenser that subsequently vents the   
resulting heat2  7v7 condenser water    
from chilled water or refrigeration     
plants2 or  7vi7 any other form of waste
 energy1 as determined by the           
,secretary2 and  7,b7 7i7 in the case of
 an existing facility1 is not being     
used2 or  7ii7 in the case of a new     
facility1 is not conventionally used in 
comparable systems4  #d4 ,technical     
assistance program  7a7 ,establishment  
7#a7 ,in general ,the ,secretary shall  
establish a program to disseminate      
information and provide technical       
assistance1 directly or through grants  
provided so that recipients may contract
 to obtain technical assistance1 to     
assist eligible entities in identifying1
 evaluating1 planning1 and designing    

local energy infrastructure4  7#b7      
,technical assistance ,the technical    
assistance under paragraph 7#a7 shall   
include assistance with #a or more of   
the following3  7,a7 ,identification of 
opportunities to use waste energy or    
renewable energy resources4  7,b7       
,assessment of technical and economic   
characteristics4  7,c7 ,utility         
interconnection4  7,d7 ,negotiation of  
power and fuel contracts4  7,e7         
,permitting and siting issues4  7,f7    
,marketing and contract negotiations4   
7,g7 ,business planning and financial   
analysis4  7,h7 ,engineering design4    
7#c7 ,information dissemination ,the    
information dissemination under         
paragraph 7#a7 shall include--  7,a7    
information relating to the topics      
identified in paragraph 7#b71 including 
case studies of successful examples2 and
  7,b7 computer software for assessment1
 design1 and operation and maintenance  
of local energy infrastructure4  7b7    
,eligible entity ,any nonprofit or      

for-profit entity shall be eligible to  
receive assistance under the program    
established under subsection 7a74  7c7  
,eligible costs ,on application by an   
eligible entity1 the ,secretary may     
award grants to an eligible entity to   
provide funds to cover not more than--  
7#a7 #ajj percent of the cost of initial
 assessment to identify local energy    
opportunities2  7#b7 #ge percent of the 
cost of feasibility studies to assess   
the potential for the implementation of 
local energy infrastructure2  7#c7 #fj  
percent of the cost of guidance on      
overcoming barriers to the              
implementation of local energy          
infrastructure1 including financial1    
contracting1 siting1 and permitting     
issues2 and  7#d7 #de percent of the    
cost of detailed engineering of local   
energy infrastructure4  7d7             
,applications  7#a7 ,in general ,an     
eligible entity desiring technical      
assistance under this section shall     
submit an application to the ,secretary 

at such time1 in such manner1 and       
containing such information as the      
,secretary may require under the rules  
and procedures adopted under subsection 
7f74  7#b7 ,application process ,the    
,secretary shall seek applications for  
technical assistance under this         
section--  7,a7 on a competitive basis2 
and  7,b7 on a periodic basis1 but not  
less frequently than once every #ab     
months4  7e7 ,priorities ,in evaluating 
projects1 the ,secretary shall give     
priority to projects that have the      
greatest potential for--  7#a7          
maximizing elimination of fossil fuel   
use2  7#b7 strengthening the reliability
 of local energy supplies and boosting  
the resiliency of energy infrastructure 
to the impact of extreme weather events1
 power grid failures1 and interruptions 
in supply of fossil fuels2  7#c7        
minimizing environmental impact1        
including regulated air pollutants1     
greenhouse gas emissions1 and use of    
ozone-depleting refrigerants2  7#d7     

facilitating use of renewable energy    
resources2  7#e7 increasing industrial  
competitiveness2 and  7#f7 maximizing   
local job creation4  7f7 ,rules and     
procedures ,not later than #ahj days    
after the date of enactment of this     
,act1 the ,secretary shall adopt rules  
and procedures for the administration of
 the program established under this     
section1 consistent with the provisions 
of this ,act4  7g7 ,authorization of    
appropriations ,there is authorized to  
be appropriated to carry out this       
section #aej1jjj1jjj for the period of  
fiscal years #bjad through #bjah1 to    
remain available until expended4  #e4   
,loan guarantees for local energy       
infrastructure  7a7 ,local energy       
infrastructure loan guarantee program   
7#a7 ,in general ,title ,,xvii of the   
,energy ,policy ,act of #bjje 7#db      
,u4,s4,c4 #afeaa et seq47 is amended by 
adding at the end the following3  #agjf4
 ,local energy infrastructure loan      
guarantee program  7a7 ,in general ,the 

,secretary may make guarantees under    
this section for commercial or          
innovative projects defined as local    
energy infrastructure in section #c of  
the ,local ,energy ,supply and          
,resiliency ,act of #bjac4  7b7         
,modification of existing authority ,the
 ,secretary shall reserve #d1jjj1jjj1jjj
 of the loan guarantee authority        
remaining under section #agjc to provide
 loan guarantees under this section4    
7c7 ,use of other appropriated funds ,to
 the maximum extent practicable1 the    
,secretary shall use funds appropriated 
to carry out section #agjc that remain  
unobligated as of the date of enactment 
of this section for the cost of loan    
guarantees under this section4  4  7#b7 
,table of contents amendment ,the table 
of contents for the ,energy ,policy ,act
 of #bjje 7#db ,u4,s4,c4 #aehja et seq47
 is amended by inserting after the item 
relating to section #agje the following 
new item3  ,sec4 #agjf4 ,local energy   
infrastructure loan guarantee program4  

4  #f4 ,definition of investment area   
,section #ajc7af7 of the ,community     
,development ,banking and ,financial    
,institutions ,act of #aiid 7#ab        
,u4,s4,c4 #dgjb7af77 is amended--  7#a7 
in subparagraph 7,a77ii71 by striking or
 at the end2  7#b7 in subparagraph 7,b71
 by striking the period at the end and  
inserting 2 or2 and  7#c7 by adding at  
the end the following3  7,c7 has the    
potential for implementation of local   
energy infrastructure as defined in the 
,local ,energy ,supply and ,resiliency  
,act of #bjac4  4