,,ii #aafth ,,congress #ast ,session ,s4 #bgjf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #bd1 #bjai,mrs4 ,shaheen introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to amend the ,public ,utility ,regulatory ,policies ,act of #aigh to assist ,states in adopting updated interconnection procedures and tariff schedules and standards for supplemental1 backup1 and standby power fees for projects for combined heat and power technology and waste heat to power technology1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,heat ,efficiency through ,applied ,technology ,act or the ,,heat ,act4 #b4 ,findings ,congress finds that-- 7#a7 combined heat and power technology1 also known as cogeneration1 is a technology that efficiently produces electricity and thermal energy at the point of use of the technology2 7#b7 by combining the provision of both electricity and thermal energy in a single step1 combined heat and power technology makes significantly more efficient use of fuel compared to separate generation of heat and power1 which has significant economic and environmental advantages2 7#c7 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 emissions1 reducing the need for electricity from other sources and the grid1 and any associated emissions2 7#d7 waste heat or waste heat to power is considered renewable energy in #ag ,states2 7#e7 7,a7 a #bjab joint report by the ,department of ,energy and the ,environmental ,protection ,agency estimated that by achieving the national goal outlined in ,executive ,order #acfbd 7#gg ,fed4 ,reg4 #edggi7 7,september #e1 #bjab7 of deploying #dj gigawatts of new combined heat and power technology by #bjbj1 the ,united ,states would increase the total combined heat and power capacity of the ,united ,states by #ej percent in less than a decade2 and 7,b7 additional efficiency would-- 7i7 save #a1jjj1jjj1jjj1jjj1jjj ,b,t,us of energy2 and 7ii7 reduce emissions by #aej1jjj1jjj metric tons of carbon dioxide annually1 a quantity equivalent to the emissions from more than #be1jjj1jjj cars2 7#f7 a #bjab 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 #aj gigawatts of electric generating capacity on a national basis2 7#g7 distributed energy generation1 including through combined heat and power technology and waste heat to power technology1 has ancillary benefits1 such as-- 7,a7 removing load from the electricity distribution grid2 and 7,b7 improving the overall reliability of the electricity distribution system2 and 7#h7 7,a7 a number of regulatory barriers impede broad deployment of combined heat and power technology and waste heat to power technology2 and 7,b7 a #bjjh study by ,oak ,ridge ,national ,laboratory identified interconnection issues1 regulated fees and tariffs1 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 technology4 #c4 ,definitions 7a7 ,in general ,in this ,act3 7#a7 ,combined heat and power technology ,the term combined heat and power technology means the 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 ,output-based emission standard ,the term output-based emission standard means a standard that relates emissions to the electrical1 thermal1 or mechanical productive output of a device or process rather than the heat input of fuel burned or pollutant concentration in the exhaust4 7#c7 ,qualified waste heat resource 7,a7 ,in general ,the term qualified waste heat resource means-- 7i7 exhaust heat or flared gas from any industrial or commercial process2 7ii7 waste gas or industrial tail gas that would otherwise be flared1 incinerated1 or vented2 7iii7 a pressure drop in any gas for an industrial or commercial process2 or 7iv7 any other form of waste heat resource as the ,secretary may determine4 7,b7 ,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 fuel4 7#d7 ,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 resource4 7b7 ,,purpa definitions ,section #c of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfjb7 is amended by adding at the end the following3 7#bb7 ,combined heat and power technology ,the term combined heat and power technology means the 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#bc7 ,qualified waste heat resource 7,a7 ,in general ,the term qualified waste heat resource means-- 7i7 exhaust heat or flared gas from any industrial process2 7ii7 waste gas or industrial tail gas that would otherwise be flared1 incinerated1 or vented2 7iii7 a pressure drop in any gas for an industrial or commercial process2 or 7iv7 any other form of waste heat resource as the ,secretary may determine4 7,b7 ,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 fuel4 7#bd7 ,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 resource4 4 #d4 ,updated interconnection procedures and tariff schedule 7a7 ,adoption of standards ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 is amended by adding at the end the following3 7#bj7 ,updated interconnection procedures and tariff schedule 7,a7 ,in general ,not later than #a year after the date of enactment of this paragraph1 the ,secretary1 in consultation with the ,commission and other appropriate agencies1 shall establish1 for generation with nameplate capacity up to #bj megawatts using all fuels-- 7i7 guidance for technical interconnection standards that ensure interoperability with existing ,federal interconnection rules2 7ii7 model interconnection procedures1 including appropriate fast track procedures2 and 7iii7 model rules for determining and assigning interconnection costs4 7,b7 ,standards ,the standards established under subparagraph 7,a7 shall1 to the maximum extent practicable1 reflect current best practices 7as demonstrated in model codes and rules adopted by ,states7 to encourage the use of distributed generation 7such as combined heat and power technology and waste heat to power technology7 while ensuring the safety and reliability of the interconnected units and the distribution and transmission networks to which the units connect4 7,c7 ,variations ,in establishing the model standards under subparagraph 7,a71 the ,secretary shall consider the appropriateness of using standards or procedures that vary based on unit size1 fuel type1 or other relevant characteristics4 4 7b7 ,compliance 7#a7 ,time limitations ,section #aab7;b7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;b77 is amended by adding at the end the following3 7#g7 7,a7 ,not later than #ij days after the date on which the ,secretary completes the standards required under section #aaa7;d77#bj71 each ,state regulatory authority 7with respect to each electric utility for which the authority has ratemaking authority7 shall commence the consideration referred to in that section1 or set a hearing date for such consideration1 with respect to each standard4 7,b7 ,not later than #b years after the date on which the ,secretary completes the standards required under section #aaa7;d77#bj71 each ,state regulatory authority 7with respect to each electric utility for which the authority has ratemaking authority7 shall-- 7i7 complete the consideration under subparagraph 7,a72 7ii7 make the determination referred to in section #aaa with respect to each standard established under section #aaa7;d77#bj72 and 7iii7 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 generation4 4 7#b7 ,failure to comply ,section #aab7;c7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;c77 is amended by adding at the end the following3 ,in the case of each standard established under paragraph 7#bj7 of section #aaa7;d71 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 paragraph44 7#c7 ,prior ,state actions 7,a7 ,in general ,section #aab of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7 is amended by adding at the end the following3 7g7 ,prior ,state actions ,subsections 7b7 and 7c7 shall not apply to a standard established under paragraph 7#bj7 of section #aaa7;d7 in the case of any electric utility in a ,state if1 before the date of enactment of this subsection-- 7#a7 the ,state has implemented for the electric utility the standard 7or a comparable standard72 7#b7 the ,state regulatory authority for the ,state has conducted a proceeding after ,december #ca1 #bjaf1 to consider implementation of the standard 7or a comparable standard7 for the electric utility2 or 7#c7 the ,state legislature has voted on the implementation of the standard 7or a comparable standard7 for the electric utility4 4 7,b7 ,cross-reference ,section #abd of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfcd7 is amended by adding at the end the following3 ,in the case of each standard established under paragraph 7#bj7 of section #aaa7;d71 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 paragraph44 #e4 ,supplemental1 backup1 and standby power fees or rates 7a7 ,adoption of standards ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 7as amended by section #d7;a77 is amended by adding at the end the following3 7#ba7 ,supplemental1 backup1 and standby power fees or rates 7,a7 ,in general ,not later than #a year after the date of enactment of this paragraph1 the ,secretary1 in consultation with the ,commission and other appropriate agencies1 shall establish model rules and procedures for determining fees or rates for supplementary power1 backup or standby power1 maintenance power1 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 excessive4 7,b7 ,factors ,in establishing model rules and procedures for determining fees or rates described in subparagraph 7,a71 the ,secretary shall consider-- 7i7 the best practices that are used to model outage assumptions and contingencies to determine the fees or rates2 7ii7 the appropriate duration1 magnitude1 or usage of demand charge ratchets2 7iii7 the benefits to the utility and ratepayers1 such as increased reliability1 fuel diversification1 enhanced power quality1 and reduced electric losses from the use of combined heat and power technology and waste heat to power technology by a qualifying facility2 and 7iv7 alternative arrangements to the purchase of supplementary1 backup1 or standby power by the owner of combined heat and power technology and waste heat to power technology generating units if the alternative arrangements-- 7,i7 do not compromise system reliability2 and 7,,ii7 are nondiscretionary and nonpreferential4 4 7b7 ,compliance 7#a7 ,time limitations ,section #aab7;b7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;b77 7as amended by section #d7;b77#a77 is amended by adding at the end the following3 7#h7 7,a7 ,not later than #ij days after the date on which the ,secretary completes the standards required under section #aaa7;d77#ba71 each ,state regulatory authority 7with respect to each electric utility for which the authority has ratemaking authority7 shall commence the consideration referred to in that section1 or set a hearing date for such consideration1 with respect to each standard4 7,b7 ,not later than #b years after the date on which the ,secretary completes the standards required under section #aaa7;d77#ba71 each ,state regulatory authority 7with respect to each electric utility for which the authority has ratemaking authority7 shall-- 7i7 complete the consideration under subparagraph 7,a72 7ii7 make the determination referred to in section #aaa with respect to each standard established under section #aaa7;d77#ba72 and 7iii7 submit to the ,secretary and the ,commission a report detailing the updated plans of the ,state regulatory authority for supplemental1 backup1 and standby power fees that reflect best practices to encourage the use of distributed generation4 4 7#b7 ,failure to comply ,section #aab7;c7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;c77 7as amended by section #d7;b77#b77 is amended by adding at the end the following3 ,in the case of each standard established under paragraph 7#ba7 of section #aaa7;d71 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 paragraph44 7#c7 ,prior ,state actions 7,a7 ,in general ,section #aab of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7 7as amended by section #d7;b77#c77;,a77 is amended by adding at the end the following3 7h7 ,prior ,state actions ,subsections 7b7 and 7c7 shall not apply to a standard established under paragraph 7#ba7 of section #aaa7;d7 in the case of any electric utility in a ,state if1 before the date of enactment of this subsection-- 7#a7 the ,state has implemented for the electric utility the standard 7or a comparable standard72 7#b7 the ,state regulatory authority for the ,state has conducted a proceeding after ,december #ca1 #bjaf1 to consider implementation of the standard 7or a comparable standard7 for the electric utility2 or 7#c7 the ,state legislature has voted on the implementation of the standard 7or a comparable standard7 for the electric utility4 4 7,b7 ,cross-reference ,section #abd of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfcd7 7as amended by section #d7;b77#c77;,b77 is amended by adding at the end the following3 ,in the case of each standard established under paragraph 7#ba7 of section #aaa7;d71 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 paragraph44 #f4 ,updating output-based emissions standards 7a7 ,establishment ,the ,administrator of the ,environmental ,protection ,agency 7referred to in this section as the ,administrator7 shall establish a program under which the ,administrator shall provide to each ,state 7as defined in section #cjb of the ,clean ,air ,act 7#db ,u4,s4,c4 #gfjb77 that elects to participate and that submits an application under subsection 7b7 a grant for use by the ,state in accordance with subsection 7c74 7b7 ,application ,to be eligible to receive a grant under this section1 a ,state shall submit to the ,administrator an application at such time1 in such manner1 and containing such information as the ,administrator may require4 7c7 ,use of funds 7#a7 ,in general ,a ,state shall use a grant provided under this section-- 7,a7 to update any applicable ,state or local air permitting regulations under the ,clean ,air ,act 7#db ,u4,s4,c4 #gdja et seq47 to incorporate environmental regulations relating to output-based emissions standards in accordance with relevant guidelines developed by the ,administrator under paragraph 7#b72 or 7,b7 if the ,state has already updated all applicable ,state and local permitting regulations to incorporate those output-based emissions standards1 to expedite the processing of relevant power generation permit applications under the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfja et seq474 7#b7 ,guidelines ,as soon as practicable after the date of enactment of this ,act1 the ,administrator shall publish guidelines for updating ,state and local permitting regulations under the ,clean ,air ,act 7#db ,u4,s4,c4 #gdja et seq47 that-- 7,a7 provide credit1 in the calculation of the emission rate of the facility1 for any thermal energy produced by combined heat and power technology or waste heat to power technology2 and 7,b7 apply only to generation units that produce #e megawatts of electrical energy or less4 7d7 ,maximum amount ,the amount of a grant provided under this section shall not exceed #ajj1jjj4 7e7 ,authorization of appropriations ,there is authorized to be appropriated to the ,administrator to carry out this section #e1jjj1jjj4