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Summary Of Legislation On District Energy/CHP Issues

U.S. House of Representatives

H.R. 1945, "Combined Heat & Power Advancement Act of 2001," Rep. Jack Quinn (R-NY).

  • Requires utilities to interconnect CHP to electric transmission and distribution grids and to provide back-up power at non-discriminatory rates (Title I).
  • Provides a 10% investment tax credit for CHP capacity added between June 30, 2001, and June 30, 2005 (Title II).
    • Must meet minimum efficiency standards (60% if less than 50 MW, 70% if more than 50 MW)
    • Must provide at least 20% of total useful output as thermal energy, and at least 20% as electricity or mechanical energy.
    • Does not specifically exclude distribution assets but language is not likely to be interpreted broadly.

H.R. 1045, "Energy Self-Sufficiency Act for the 21st Century," Rep. Heather Wilson

  • Requires standardized rules for utility interconnection of distributed generation facilities (Title I).
  • Provides a 10% investment tax credit for CHP and distributed generation (Title II).
  • Provides 7-year depreciation of CHP and distributed generation property (Title II).

U.S. Senate

S. 933, "Combined Heat & Power Advancement Act of 2001," Senator James Jeffords

  • Requires utilities to interconnect CHP to electric transmission and distribution grids and to provide back-up power at non-discriminatory rates (Section 4).


S. 596, "Energy Security & Tax Incentive Policy Act of 2001," Senator Jeff Bingaman

  • Provides 10% investment tax credit for CHP and various renewable power investments (Section 101).
    • Specifically excludes property to "distribute energy within or outside of the facility."
    • Excludes third party deals.
  • Provides 7-year depreciation for distributed generation (Section 301).
    • Specifically excludes property to "distribute energy within or outside of the facility."
    • Excludes third party deals.
  • Extends renewable energy production credit to 2011 and extends coverage to waste materials and to steel CHP (Section 302).
  • Provides 7-year depreciation for electric transmission and gas transmission and distribution assets (Section 304).
  • Provides tax credits and other incentives for clean coal technologies (Title IV).
  • Provides a variety of credits and incentives for oil and gas production (Title VI).


S. 597, "Comprehensive & Balanced Energy Policy Act of 2001," Senator Jeff Bingaman

  • Mandates the review by agencies of regulations that may inhibit distributed generation and CHP (Section 301).
  • Requires utilities to interconnect distributed generation to electric distribution grids (Section 603).
  • Mandates the establishment of a public benefits charge to be administered by the Treasury, and explicitly includes CHP as an allowable area for funding (Section 502).
  • Requires electric utilities to include disclosure of the source of power in customers' bills, and includes CHP in the list of environmentally preferred sources (Section 505).
  • Provides a variety of oil and gas supply-side measures (Title X).
  • Authorizes funding for energy technology research and development, including clean coal (Title XIV).
  • Establishes "Federal Energy Bank" for financing federal efficiency projects (Section 1301).
  • Establishes a grant program at DOE for energy efficiency in local school districts (Section 1302).


S. 389, "National Energy Security Act of 2001," Senator Frank Murkowski

  • Provides 10% investment tax credit for CHP and various renewable power investments (Section 971).
    • Specifically excludes property to "distribute energy within or outside of the facility."
    • Excludes third party deals.
  • Extends renewable energy production credit to 2011 and extends coverage to waste materials and to steel CHP (Section 991).
  • Provides a variety of oil and gas supply-side measures including tax credits and shortened depreciation (Titles III and IX)
  • Repeals the Public Utilities Regulatory Policy Act (PURPA) and the Public Utility Holding Company Act (PUCHA) (Title VIII).
    • Requires utilities to interconnect distributed generation to electric distribution grids (Section 603).
    • Authorizes funding for clean coal technology research and development (Title II).
    • Provides funding and incentives for nuclear energy (Title IV).
  • Establishes grant program at DOE for energy efficiency in local school districts (Section 602).
  • Expands use of Energy Savings Performance Contracts for federal facilities (Section 605).

 

 
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