,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bgjf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,octob] #bd1 #bjai,mrs4
 ,%ahe5 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,en]gy & ,natural ,res\rces  ,a ,,bill  
,to am5d ! ,public ,utility ,regulatory 
,policies ,act ( #aigh to assi/ ,/ates 9
 adopt+ updat$ int]connection proc$ures 
& t>iff s*$ules & /&>ds = supplem5tal1  
backup1 & /&by p[] fees = projects =    
comb9$ heat & p[] te*nology & wa/e heat 
to p[] te*nology1 & = o!r purposes4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,heat ,effici5cy ?r\gh ,appli$          
,te*nology ,act or ! ,,heat ,act4  #b4  
,f9d+s ,congress f9ds t-- 7#a7 comb9$   
heat & p[] te*nology1 also kn[n z       
cog5]ation1 is a te*nology t effici5tly 
produces electricity & !rmal en]gy at ! 
po9t ( use ( ! te*nology2  7#b7 by      
comb9+ ! provision ( bo? electricity &  
!rmal en]gy 9 a s+le /ep1 comb9$ heat & 
p[] te*nology makes significantly m     
effici5t use ( fuel comp>$ to sep>ate   

g5]ation ( heat & p[]1 :i* has          
significant economic & environm5tal     
advantages2  7#c7 wa/e heat to p[] is a 
te*nology t captures heat disc>d$ by an 
exi/+ indu/rial process & uses t heat to
 g5]ate p[] ) no additional fuel & no   
increm5tal emissions1 r$uc+ ! ne$ =     
electricity f o!r s\rces & ! grid1 & any
 associat$ emissions2  7#d7 wa/e heat or
 wa/e heat to p[] is consid]$ r5ewable  
en]gy 9 #ag ,/ates2  7#e7 7,a7 a #bjab  
jo9t report by ! ,dep>tm5t ( ,en]gy & ! 
,environm5tal ,protection ,ag5cy e/imat$
 t by a*iev+ ! national goal outl9$ 9   
,executive ,ord] #acfbd 7#gg ,f$4 ,reg4 
#edggi7 7,septemb] #e1 #bjab7 ( deploy+ 
#dj gigawatts ( new comb9$ heat & p[]   
te*nology by #bjbj1 ! ,unit$ ,/ates w\ld
 increase ! total comb9$ heat & p[]     
capacity ( ! ,unit$ ,/ates by #ej p]c5t 
9 less ?an a decade2 &  7,b7 additional 
effici5cy w\ld-- 7i7 save               
#a1jjj1jjj1jjj1jjj1jjj ,b,t,us ( en]gy2 
&  7ii7 r$uce emissions by #aej1jjj1jjj 
metric tons ( c>bon dioxide annually1 a 

quantity equival5t to ! emissions f m   
?an #be1jjj1jjj c>s2  7#f7 a #bjab      
report by ! ,environm5tal ,protection   
,ag5cy e/imat$ ! am\nt ( wa/e heat      
available at a temp]ature high en\gh =  
p[] g5]ation f indu/rial & non9du/rial  
applications repres5ts an additional #aj
 gigawatts ( electric g5]at+ capacity on
 a national basis2  7#g7 di/ribut$ en]gy
 g5]ation1 includ+ ?r\gh comb9$ heat &  
p[] te*nology & wa/e heat to p[]        
te*nology1 has ancill>y b5efits1 su* z--
  7,a7 remov+ load f ! electricity      
di/ribution grid2 &  7,b7 improv+ !     
ov]all reliability ( ! electricity      
di/ribution sy/em2 &  7#h7 7,a7 a numb] 
( regulatory b>ri]s imp$e broad         
deploym5t ( comb9$ heat & p[] te*nology 
& wa/e heat to p[] te*nology2 &  7,b7 a 
#bjjh /udy by ,oak ,ridge ,national     
,laboratory id5tifi$ int]connection     
issues1 regulat$ fees & t>iffs1 &       
environm5tal p]mitt+ z areas t c\ld be  
/reaml9$ ) respect to ! provision (     
comb9$ heat & p[] te*nology & wa/e heat 

to p[] te*nology4  #c4 ,def9itions  7a7 
,9 g5]al ,9 ?is ,act3 7#a7 ,comb9$ heat 
& p[] te*nology ,! t]m comb9$ heat & p[]
 te*nology means ! g5]ation ( electric  
en]gy & heat 9 a s+le1 integrat$ sy/em t
 meets ! effici5cy crit]ia 9 clauses    
7ii7 & 7iii7 ( section #dh7;c77#c77;,a7 
( ! ,int]nal ,rev5ue ,code ( #aihf1 "u  
:i* heat t is conv5tionally reject$ is  
recov]$ & us$ to meet !rmal en]gy       
requirem5ts4  7#b7 ,output-bas$ emission
 /&>d ,! t]m output-bas$ emission /&>d  
means a /&>d t relates emissions to !   
electrical1 !rmal1 or me*anical         
productive output ( a device or process 
r ?an ! heat input ( fuel burn$ or      
pollutant conc5tration 9 ! exhau/4  7#c7
 ,qualifi$ wa/e heat res\rce  7,a7 ,9   
g5]al ,! t]m qualifi$ wa/e heat res\rce 
means-- 7i7 exhau/ heat or fl>$ gas f   
any indu/rial or comm]cial process2     
7ii7 wa/e gas or indu/rial tail gas t   
w\ld o!rwise be fl>$1 inc9]at$1 or v5t$2
  7iii7 a pressure drop 9 any gas = an  
indu/rial or comm]cial process2 or  7iv7

 any o!r =m ( wa/e heat res\rce z !     
,secret>y may det]m9e4  7,b7 ,exclusion 
,! t]m qualifi$ wa/e heat res\rce does n
 include a heat res\rce f a process !   
prim>y purpose ( :i* is ! g5]ation (    
electricity us+ a fossil fuel4  7#d7    
,wa/e heat to p[] te*nology ,! t]m wa/e 
heat to p[] te*nology means a sy/em t   
g5]ates electricity ?r\gh ! recov]y ( a 
qualifi$ wa/e heat res\rce4  7b7 ,,purpa
 def9itions ,section #c ( ! ,public     
,utility ,regulatory ,policies ,act (   
#aigh 7#af ,u4,s4,c4 #bfjb7 is am5d$ by 
add+ at ! end ! foll[+3  7#bb7 ,comb9$  
heat & p[] te*nology ,! t]m comb9$ heat 
& p[] te*nology means ! g5]ation (      
electric en]gy & heat 9 a s+le1         
integrat$ sy/em t meets ! effici5cy     
crit]ia 9 clauses 7ii7 & 7iii7 ( section
 #dh7;c77#c77;,a7 ( ! ,int]nal ,rev5ue  
,code ( #aihf1 "u :i* heat t is         
conv5tionally reject$ is recov]$ & us$  
to meet !rmal en]gy requirem5ts4  7#bc7 
,qualifi$ wa/e heat res\rce  7,a7 ,9    
g5]al ,! t]m qualifi$ wa/e heat res\rce 

means-- 7i7 exhau/ heat or fl>$ gas f   
any indu/rial process2  7ii7 wa/e gas or
 indu/rial tail gas t w\ld o!rwise be   
fl>$1 inc9]at$1 or v5t$2  7iii7 a       
pressure drop 9 any gas = an indu/rial  
or comm]cial process2 or  7iv7 any o!r  
=m ( wa/e heat res\rce z ! ,secret>y may
 det]m9e4  7,b7 ,exclusion ,! t]m       
qualifi$ wa/e heat res\rce does n       
include a heat res\rce f a process !    
prim>y purpose ( :i* is ! g5]ation (    
electricity us+ a fossil fuel4  7#bd7   
,wa/e heat to p[] te*nology ,! t]m wa/e 
heat to p[] te*nology means a sy/em t   
g5]ates electricity ?r\gh ! recov]y ( a 
qualifi$ wa/e heat res\rce4  4  #d4     
,updat$ int]connection proc$ures & t>iff
 s*$ule  7a7 ,adoption ( /&>ds ,section 
#aaa7;d7 ( ! ,public ,utility           
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfba7;d77 is am5d$ by add+ at
 ! end ! foll[+3  7#bj7 ,updat$         
int]connection proc$ures & t>iff s*$ule 
7,a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! 
date ( enactm5t ( ?is p>agraph1 !       

,secret>y1 9 consultation ) !           
,commission & o!r appropriate ag5cies1  
%all e/abli%1 = g5]ation ) nameplate    
capacity up to #bj megawatts us+ all    
fuels--  7i7 guidance = te*nical        
int]connection /&>ds t ensure           
int]op]ability ) exi/+ ,f$]al           
int]connection rules2  7ii7 model       
int]connection proc$ures1 includ+       
appropriate fa/ track proc$ures2 &      
7iii7 model rules = det]m9+ & assign+   
int]connection co/s4  7,b7 ,/&>ds ,!    
/&>ds e/abli%$ "u subp>agraph 7,a7 %all1
 to ! maximum ext5t practicable1 reflect
 curr5t be/ practices 7z demon/rat$ 9   
model codes & rules adopt$ by ,/ates7 to
 enc\rage ! use ( di/ribut$ g5]ation    
7su* z comb9$ heat & p[] te*nology &    
wa/e heat to p[] te*nology7 :ile ensur+ 
! safety & reliability ( ! int]connect$ 
units & ! di/ribution & transmission    
networks to :i* ! units connect4  7,c7  
,v>iations ,9 e/abli%+ ! model /&>ds "u 
subp>agraph 7,a71 ! ,secret>y %all      
consid] ! appropriat5ess ( us+ /&>ds or 

proc$ures t v>y bas$ on unit size1 fuel 
type1 or o!r relevant *>act]i/ics4  4   
7b7 ,compliance  7#a7 ,"t limitations   
,section #aab7;b7 ( ! ,public ,utility  
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfbb7;b77 is am5d$ by add+ at
 ! end ! foll[+3  7#g7 7,a7 ,n lat] ?an 
#ij days aft] ! date on :i* ! ,secret>y 
completes ! /&>ds requir$ "u section    
#aaa7;d77#bj71 ea* ,/ate regulatory     
au?ority 7) respect to ea* electric     
utility = :i* ! au?ority has ratemak+   
au?ority7 %all comm5ce ! consid]ation   
ref]r$ to 9 t section1 or set a he>+    
date = su* consid]ation1 ) respect to   
ea* /&>d4  7,b7 ,n lat] ?an #b ye>s aft]
 ! date on :i* ! ,secret>y completes !  
/&>ds requir$ "u section #aaa7;d77#bj71 
ea* ,/ate regulatory au?ority 7) respect
 to ea* electric utility = :i* !        
au?ority has ratemak+ au?ority7 %all--  
7i7 complete ! consid]ation "u          
subp>agraph 7,a72  7ii7 make !          
det]m9ation ref]r$ to 9 section #aaa )  
respect to ea* /&>d e/abli%$ "u section 

#aaa7;d77#bj72 &  7iii7 submit to !     
,secret>y & ! ,commission a report      
detail+ ! updat$ plans ( ! ,/ate        
regulatory au?ority = int]connection    
proc$ures & t>iff s*$ules t reflect be/ 
practices to enc\rage ! use ( di/ribut$ 
g5]ation4  4  7#b7 ,failure to comply   
,section #aab7;c7 ( ! ,public ,utility  
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfbb7;c77 is am5d$ by add+ at
 ! end ! foll[+3 ,9 ! case ( ea* /&>d   
e/abli%$ "u p>agraph 7#bj7 ( section    
#aaa7;d71 ! ref]5ce conta9$ 9 ?is       
subsection to ! date ( enactm5t ( ?is   
,act %all be deem$ to be a ref]5ce to ! 
date ( enactm5t ( t p>agraph44  7#c7    
,prior ,/ate actions  7,a7 ,9 g5]al     
,section #aab ( ! ,public ,utility      
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfbb7 is am5d$ by add+ at !  
end ! foll[+3  7g7 ,prior ,/ate actions 
,subsections 7b7 & 7c7 %all n apply to a
 /&>d e/abli%$ "u p>agraph 7#bj7 (      
section #aaa7;d7 9 ! case ( any electric
 utility 9 a ,/ate if1 be=e ! date (    

enactm5t ( ?is subsection--  7#a7 !     
,/ate has implem5t$ = ! electric utility
 ! /&>d 7or a comp>able /&>d72  7#b7 !  
,/ate regulatory au?ority = ! ,/ate has 
conduct$ a proce$+ aft] ,decemb] #ca1   
#bjaf1 to consid] implem5tation ( ! /&>d
 7or a comp>able /&>d7 = ! electric     
utility2 or  7#c7 ! ,/ate legislature   
has vot$ on ! implem5tation ( ! /&>d 7or
 a comp>able /&>d7 = ! electric utility4
  4  7,b7 ,cross-ref]5ce ,section #abd (
 ! ,public ,utility ,regulatory         
,policies ,act ( #aigh 7#af ,u4,s4,c4   
#bfcd7 is am5d$ by add+ at ! end !      
foll[+3 ,9 ! case ( ea* /&>d e/abli%$ "u
 p>agraph 7#bj7 ( section #aaa7;d71 !   
ref]5ce conta9$ 9 ?is subsection to !   
date ( enactm5t ( ?is ,act %all be deem$
 to be a ref]5ce to ! date ( enactm5t ( 
t p>agraph44  #e4 ,supplem5tal1 backup1 
& /&by p[] fees or rates  7a7 ,adoption 
( /&>ds ,section #aaa7;d7 ( ! ,public   
,utility ,regulatory ,policies ,act (   
#aigh 7#af ,u4,s4,c4 #bfba7;d77 7z am5d$
 by section #d7;a77 is am5d$ by add+ at 

! end ! foll[+3  7#ba7 ,supplem5tal1    
backup1 & /&by p[] fees or rates  7,a7  
,9 g5]al ,n lat] ?an #a ye> aft] ! date 
( enactm5t ( ?is p>agraph1 ! ,secret>y1 
9 consultation ) ! ,commission & o!r    
appropriate ag5cies1 %all e/abli% model 
rules & proc$ures = det]m9+ fees or     
rates = supplem5t>y p[]1 backup or /&by 
p[]1 ma9t5ance p[]1 & int]ruptible p[]  
suppli$ to facilities t op]ate comb9$   
heat & p[] te*nology & wa/e heat to p[] 
te*nology t appropriately all[ =        
adequate co/ recov]y by an electric     
utility b are n excessive4  7,b7        
,factors ,9 e/abli%+ model rules &      
proc$ures = det]m9+ fees or rates       
describ$ 9 subp>agraph 7,a71 ! ,secret>y
 %all consid]--  7i7 ! be/ practices t  
are us$ to model outage assumptions &   
cont+5cies to det]m9e ! fees or rates2  
7ii7 ! appropriate duration1 magnitude1 
or usage ( dem& *>ge rat*ets2  7iii7 !  
b5efits to ! utility & ratepay]s1 su* z 
increas$ reliability1 fuel              
div]sification1 enhanc$ p[] quality1 &  

r$uc$ electric losses f ! use ( comb9$  
heat & p[] te*nology & wa/e heat to p[] 
te*nology by a qualify+ facility2 &     
7iv7 alt]native arrangem5ts to ! pur*ase
 ( supplem5t>y1 backup1 or /&by p[] by !
 own] ( comb9$ heat & p[] te*nology &   
wa/e heat to p[] te*nology g5]at+ units 
if ! alt]native arrangem5ts--  7,i7 d n 
compromise sy/em reliability2 &  7,,ii7 
are nondiscretion>y & nonpref]5tial4  4 
7b7 ,compliance  7#a7 ,"t limitations   
,section #aab7;b7 ( ! ,public ,utility  
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfbb7;b77 7z am5d$ by section
 #d7;b77#a77 is am5d$ by add+ at ! end !
 foll[+3  7#h7 7,a7 ,n lat] ?an #ij days
 aft] ! date on :i* ! ,secret>y         
completes ! /&>ds requir$ "u section    
#aaa7;d77#ba71 ea* ,/ate regulatory     
au?ority 7) respect to ea* electric     
utility = :i* ! au?ority has ratemak+   
au?ority7 %all comm5ce ! consid]ation   
ref]r$ to 9 t section1 or set a he>+    
date = su* consid]ation1 ) respect to   
ea* /&>d4  7,b7 ,n lat] ?an #b ye>s aft]

 ! date on :i* ! ,secret>y completes !  
/&>ds requir$ "u section #aaa7;d77#ba71 
ea* ,/ate regulatory au?ority 7) respect
 to ea* electric utility = :i* !        
au?ority has ratemak+ au?ority7 %all--  
7i7 complete ! consid]ation "u          
subp>agraph 7,a72  7ii7 make !          
det]m9ation ref]r$ to 9 section #aaa )  
respect to ea* /&>d e/abli%$ "u section 
#aaa7;d77#ba72 &  7iii7 submit to !     
,secret>y & ! ,commission a report      
detail+ ! updat$ plans ( ! ,/ate        
regulatory au?ority = supplem5tal1      
backup1 & /&by p[] fees t reflect be/   
practices to enc\rage ! use ( di/ribut$ 
g5]ation4  4  7#b7 ,failure to comply   
,section #aab7;c7 ( ! ,public ,utility  
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfbb7;c77 7z am5d$ by section
 #d7;b77#b77 is am5d$ by add+ at ! end !
 foll[+3 ,9 ! case ( ea* /&>d e/abli%$  
"u p>agraph 7#ba7 ( section #aaa7;d71 ! 
ref]5ce conta9$ 9 ?is subsection to !   
date ( enactm5t ( ?is ,act %all be deem$
 to be a ref]5ce to ! date ( enactm5t ( 

t p>agraph44  7#c7 ,prior ,/ate actions 
7,a7 ,9 g5]al ,section #aab ( ! ,public 
,utility ,regulatory ,policies ,act (   
#aigh 7#af ,u4,s4,c4 #bfbb7 7z am5d$ by 
section #d7;b77#c77;,a77 is am5d$ by    
add+ at ! end ! foll[+3  7h7 ,prior     
,/ate actions ,subsections 7b7 & 7c7    
%all n apply to a /&>d e/abli%$ "u      
p>agraph 7#ba7 ( section #aaa7;d7 9 !   
case ( any electric utility 9 a ,/ate   
if1 be=e ! date ( enactm5t ( ?is        
subsection--  7#a7 ! ,/ate has implem5t$
 = ! electric utility ! /&>d 7or a      
comp>able /&>d72  7#b7 ! ,/ate          
regulatory au?ority = ! ,/ate has       
conduct$ a proce$+ aft] ,decemb] #ca1   
#bjaf1 to consid] implem5tation ( ! /&>d
 7or a comp>able /&>d7 = ! electric     
utility2 or  7#c7 ! ,/ate legislature   
has vot$ on ! implem5tation ( ! /&>d 7or
 a comp>able /&>d7 = ! electric utility4
  4  7,b7 ,cross-ref]5ce ,section #abd (
 ! ,public ,utility ,regulatory         
,policies ,act ( #aigh 7#af ,u4,s4,c4   
#bfcd7 7z am5d$ by section              

#d7;b77#c77;,b77 is am5d$ by add+ at !  
end ! foll[+3 ,9 ! case ( ea* /&>d      
e/abli%$ "u p>agraph 7#ba7 ( section    
#aaa7;d71 ! ref]5ce conta9$ 9 ?is       
subsection to ! date ( enactm5t ( ?is   
,act %all be deem$ to be a ref]5ce to ! 
date ( enactm5t ( t p>agraph44  #f4     
,updat+ output-bas$ emissions /&>ds  7a7
 ,e/abli%m5t ,! ,adm9i/rator ( !        
,environm5tal ,protection ,ag5cy 7ref]r$
 to 9 ?is section z ! ,adm9i/rator7 %all
 e/abli% a program "u :i* ! ,adm9i/rator
 %all provide to ea* ,/ate 7z def9$ 9   
section #cjb ( ! ,clean ,air ,act 7#db  
,u4,s4,c4 #gfjb77 t elects to p>ticipate
 & t submits an application "u          
subsection 7b7 a grant = use by ! ,/ate 
9 accordance ) subsection 7c74  7b7     
,application ,to be eligible to receive 
a grant "u ?is section1 a ,/ate %all    
submit to ! ,adm9i/rator an application 
at su* "t1 9 su* mann]1 & conta9+ su*   
in=mation z ! ,adm9i/rator may require4 
7c7 ,use ( funds  7#a7 ,9 g5]al ,a ,/ate
 %all use a grant provid$ "u ?is        

section--  7,a7 to update any applicable
 ,/ate or local air p]mitt+ regulations 
"u ! ,clean ,air ,act 7#db ,u4,s4,c4    
#gdja et seq47 to incorporate           
environm5tal regulations relat+ to      
output-bas$ emissions /&>ds 9 accordance
 ) relevant guidel9es develop$ by !     
,adm9i/rator "u p>agraph 7#b72 or  7,b7 
if ! ,/ate has already updat$ all       
applicable ,/ate & local p]mitt+        
regulations to incorporate ^?           
output-bas$ emissions /&>ds1 to exp$ite 
! process+ ( relevant p[] g5]ation p]mit
 applications "u ! ,public ,utility     
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 #bfja et seq474  7#b7         
,guidel9es ,z soon z practicable aft] ! 
date ( enactm5t ( ?is ,act1 !           
,adm9i/rator %all publi% guidel9es =    
updat+ ,/ate & local p]mitt+ regulations
 "u ! ,clean ,air ,act 7#db ,u4,s4,c4   
#gdja et seq47 t--  7,a7 provide cr$it1 
9 ! calculation ( ! emission rate ( !   
facility1 = any !rmal en]gy produc$ by  
comb9$ heat & p[] te*nology or wa/e heat

 to p[] te*nology2 &  7,b7 apply only to
 g5]ation units t produce #e megawatts (
 electrical en]gy or less4  7d7 ,maximum
 am\nt ,! am\nt ( a grant provid$ "u ?is
 section %all n exce$ #ajj1jjj4  7e7    
,au?orization ( appropriations ,!re is  
au?oriz$ to be appropriat$ to !         
,adm9i/rator to c>ry out ?is section    
#e1jjj1jjj4