S.Amdt. 1941

1. 1

   Change 1: Adds Subtitle E--Technical Assistance Program SEC. 241. SHORT TITLE at the end of title II

   Adds a section

   In S. 1392 · Placed on Calendar Senate

   (e) Termination of Effectiveness.--The authority provided by this section terminates effective December 31, 2015.

   Inserted: Subtitle E--Technical Assistance Program SEC. 241. SHORT TITLE.

   Inserted: This title may be cited as the "Local Energy Supply and Resiliency Act of 2013".

   Inserted: SEC. 242. FINDINGS AND PURPOSES.

   Inserted: (a) Findings.--Congress finds that--

   Inserted: (1) a quantity of energy that is more than--

   Inserted: (A) 27 percent of the total energy consumption in the United States is released from power plants in the form of waste heat; and

   Inserted: (B) 36 percent of the total energy consumption in the United States is released from power plants, industrial facilities, and other buildings in the form of waste heat;

   Inserted: (2) waste heat can be--

   Inserted: (A) recovered and distributed to meet building heating or industrial process heating requirements;

   Inserted: (B) converted to chilled water for air conditioning or industrial process cooling; or

   Inserted: (C) converted to electricity;

   Inserted: (3) renewable energy resources in communities in the United States can be used to meet local thermal and electric energy requirements;

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   Inserted: (4) 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 events, power grid failures, or interruptions in the supply of fossil fuels;

   Inserted: (5) use of local waste heat and renewable energy resources--

   Inserted: (A) strengthens United States industrial competitiveness;

   Inserted: (B) helps reduce reliance on fossil fuels and the associated emissions of air pollution and carbon dioxide;

   Inserted: (C) increases energy supply resiliency and security; and

   Inserted: (D) keeps more energy dollars in local economies, thereby creating jobs;

   Inserted: (6) district energy systems represent a key opportunity to tap waste heat and renewable energy resources;

   Inserted: (7) district energy systems are important for expanding implementation of combined heat and power systems because district energy systems provide infrastructure for delivering thermal energy from a CHP system to a substantial base of end users;

   Inserted: (8) district energy systems serve institutions of higher education, hospitals, airports, military bases, and downtown areas;

   Inserted: (9) district energy systems help cut peak power demand and reduce power transmission and distribution system constraints by--

   Inserted: (A) shifting power demand through thermal storage;

   Inserted: (B) generating power near load centers with a CHP system; and

   Inserted: (C) meeting air conditioning demand through the delivery of chilled water produced with heat generated by a CHP system or other energy sources;

   Inserted: (10) evaluation and implementation of district energy systems--

   Inserted: (A) is a complex undertaking involving a variety of technical, economic, legal, and institutional issues and barriers; and

   Inserted: (B) often requires technical assistance to successfully navigate those barriers; and

   Inserted: (11) a major constraint to the use of local waste heat and renewable energy resources is a lack of low-interest, long-term capital funding for implementation.

   Inserted: (b) Purposes.--The purposes of this title are--

   Inserted: (1) to encourage the use and distribution of waste heat and renewable thermal energy--

   Inserted: (A) to reduce fossil fuel consumption;

   Inserted: (B) to enhance energy supply resiliency, reliability, and security;

   Inserted: (C) to reduce air pollution and greenhouse gas emissions;

   Inserted: (D) to strengthen industrial competitiveness; and

   Inserted: (E) to retain more energy dollars in local economies; and

   Inserted: (2) to facilitate the implementation of a local energy infrastructure that accomplishes the goals described in paragraph (1) by--

   Inserted: (A) providing technical assistance to evaluate, design, and develop projects to build local energy infrastructure; and

   Inserted: (B) facilitating low-cost financing for the construction of local energy infrastructure though the issuance of loan guarantees.

   Inserted: SEC. 243. DEFINITIONS.

   Inserted: In this title:

   Inserted: (1) Combined heat and power system.--The term "combined heat and power system" or "CHP system" means generation of electric energy and heat in a single, integrated system that meets the efficiency criteria in clauses (ii) and (iii) of section 48(c)(3)(A) of the Internal Revenue Code of 1986, under which heat that is conventionally rejected is recovered and used to meet thermal energy requirements.

   Inserted: (2) Demand response.--The term "demand response" means a change in electricity use by an electric utility customer, as measured against the usual consumption pattern of the consumer, in response to--

   Inserted: (A) a change in the price of electricity during a given period of time; or

   Inserted: (B) an incentive payment designed to induce lower electricity use when--

   Inserted: (i) wholesale market prices are high; or

   Inserted: (ii) system reliability is jeopardized.

   Inserted: (3) District energy system.--The term "district energy system" means a system that provides thermal energy to buildings and other energy consumers from 1 or more plants to individual buildings to provide space heating, air conditioning, domestic hot water, industrial process energy, and other end uses.

   Inserted: (4) Local energy infrastructure.--The term "local energy infrastructure" means a system that--

   Inserted: (A) recovers or produces useful thermal or electric energy from waste energy or renewable energy resources;

   Inserted: (B) generates electricity using a combined heat and power system;

   Inserted: (C) distributes electricity in microgrids;

   Inserted: (D) stores thermal energy; or

   Inserted: (E) distributes thermal energy or transfers thermal energy to building heating and cooling systems via a district energy system.

   Inserted: (5) Microgrid.--The term "microgrid" means a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that--

   Inserted: (A) acts as a single controllable entity with respect to the grid; and

   Inserted: (B) can connect and disconnect from the grid to enable the microgrid to operate in both grid-connected or island-mode.

   Inserted: (6) Renewable energy resource.--The term "renewable energy resource" means --

   Inserted: (A) closed-loop and open-loop biomass (as defined in paragraphs (2) and (3), respectively, of section 45(c) of the Internal Revenue Code of 1986);

   Inserted: (B) gaseous or liquid fuels produced from the materials described in subparagraph (A);

   Inserted: (C) geothermal energy (as defined in section 45(c)(4) of such Code);

   Inserted: (D) municipal solid waste (as defined in section 45(c)(6) of such Code); or

   Inserted: (E) solar energy (which is used, undefined, in section 45 of such Code).

   Inserted: (7) Renewable thermal energy.--The term "renewable thermal energy" means--

   Inserted: (A) heating or cooling energy derived from a renewable energy resource;

   Inserted: (B) natural sources of cooling such as cold lake or ocean water; or

   Inserted: (C) other renewable thermal energy sources, as determined by the Secretary.

   Inserted: (8) Secretary.--The term "Secretary" means the Secretary of Energy.

   Inserted: (9) Thermal energy.--The term "thermal energy" means--

   Inserted: (A) heating energy in the form of hot water or steam that is used to provide space heating, domestic hot water, or process heat; or

   Inserted: (B) cooling energy in the form of chilled water, ice or other media that is used to provide air conditioning, or process cooling.

   Inserted: (10) Waste energy.--The term "waste energy" means energy that--

   Inserted: (A) is contained in--

   Inserted: (i) exhaust gas, exhaust steam, condenser water, jacket cooling heat, or lubricating oil in power generation systems;

   Inserted: (ii) exhaust heat, hot liquids, or flared gas from any industrial process;

   Inserted: (iii) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented;

   Inserted: (iv) a pressure drop in any gas, excluding any pressure drop to a condenser that subsequently vents the resulting heat;

   Inserted: (v) condenser water from chilled water or refrigeration plants; or

   Inserted: (vi) any other form of waste energy, as determined by the Secretary; and

   Inserted: (B)(i) in the case of an existing facility, is not being used; or

   Inserted: (ii) in the case of a new facility, is not conventionally used in comparable systems.

   Inserted: SEC. 244. TECHNICAL ASSISTANCE PROGRAM.

   Inserted: (a) Establishment.--

   Inserted: (1) In general.--The Secretary shall establish a program to disseminate information and provide technical assistance, directly through the establishment of 1 or more clean energy application centers or through grants so that recipients may contract to obtain technical assistance, to assist eligible entities in identifying, evaluating, planning, and designing local energy infrastructure.

   Inserted: (2) Technical assistance.--The technical assistance under paragraph (1) shall include assistance with 1 or more of the following:

   Inserted: (A) Identification of opportunities to use waste energy or renewable energy resources.

   Inserted: (B) Assessment of technical and economic characteristics.

   Inserted: (C) Utility interconnection.

   Inserted: (D) Negotiation of power and fuel contracts, including assessment of the value of demand response capabilities.

   Inserted: (E) Permitting and siting issues.

   Inserted: (F) Marketing and contract negotiations.

   Inserted: (G) Business planning and financial analysis.

   Inserted: (H) Engineering design.

   Inserted: (3) Information dissemination.--The information disseminated under paragraph (1) shall include--

   Inserted: (A) information relating to the topics identified in paragraph (2), including case studies of successful examples; and

   Inserted: (B) computer software for assessment, design, and operation and maintenance of local energy infrastructure.

   Inserted: (b) Eligible Entity.--Any nonprofit or for-profit entity shall be eligible to receive assistance under the program established under subsection (a).

   Inserted: (c) Eligible Costs.--On application by an eligible entity, the Secretary may award a grant to the eligible entity to provide amounts to cover not more than--

   Inserted: (1) 100 percent of the cost of initial assessment to identify local energy opportunities;

   Inserted: (2) 75 percent of the cost of feasibility studies to assess the potential for the implementation of local energy infrastructure;

   Inserted: (3) 60 percent of the cost of guidance on overcoming barriers to the implementation of local energy infrastructure, including financial, contracting, siting, and permitting issues; and

   Inserted: (4) 45 percent of the cost of detailed engineering of local energy infrastructure.

   Inserted: (d) Applications.--

   Inserted: (1) In general.--An eligible entity desiring technical assistance under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require under the rules and procedures adopted under subsection (f).

   Inserted: (2) Application process.--The Secretary shall solicit applications for technical assistance under this section--

   Inserted: (A) on a competitive basis; and

   Inserted: (B) on a periodic basis, but not less frequently than once every 12 months.

   Inserted: (e) Priorities.--In evaluating projects, the Secretary shall give priority to projects that have the greatest potential for--

   Inserted: (1) maximizing elimination of fossil fuel use;

   Inserted: (2) strengthening the reliability of local energy supplies and boosting the resiliency of energy infrastructure to the impact of extreme weather events, power grid failures, and interruptions in supply of fossil fuels;

   Inserted: (3) minimizing environmental impact, including regulated air pollutants, greenhouse gas emissions, and use of ozone-depleting refrigerants;

   Inserted: (4) facilitating use of renewable energy resources;

   Inserted: (5) increasing industrial competitiveness; and

   Inserted: (6) maximizing local job creation.

   Inserted: (f) Rules and Procedures.--Not later than 180 days after the date of enactment of this Act, the Secretary shall adopt rules and procedures for the administration of the program established under this section, consistent with the provisions of this title.

   Inserted: (g) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $100,000,000 for the period of fiscal years 2014 through 2018, to remain available until expended.

   Inserted: SEC. 245. LOAN GUARANTEES FOR LOCAL ENERGY INFRASTRUCTURE.

   Inserted: (a) Assurance of Repayment.--Section 1702(d) of the Energy Policy Act of 2005 (42 U.S.C. 16512(d)) is amended--

   Inserted: (1) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4); and

   Inserted: (2) by inserting after paragraph (1) the following:

   Inserted: "(2) Local energy infrastructure documentation.--No guarantee shall be made for local energy infrastructure unless the borrower submits to the Secretary--

   Inserted: "(A) an independent engineering report, prepared by an engineer with experience in the industry and familiarity with similar projects, that includes detailed information on--

   Inserted: "(i) how the technology to be employed in the project is a proven, commercial technology;

   Inserted: "(ii) project siting;

   Inserted: "(iii) engineering and design;

   Inserted: "(iv) permitting and environmental compliance;

   Inserted: "(v) testing and commissioning; and

   Inserted: "(vi) operations and maintenance;

   Inserted: "(B) a detailed description of the overall financial plan for the proposed project, including all sources and uses of funding, equity and debt, and the liability of parties associated with the project over the term of the guarantee agreement;

   Inserted: "(C) all applicable financial statements of the borrower and any non-Federal parties providing financial assistance to the borrower, which shall have been audited by an independent certified public accountant;

   Inserted: "(D) the business plan on which the project is based and a financial model presenting project pro forma statements for the proposed term of the guarantee, including income statements, balance sheets, and cash flows;

   Inserted: "(E) a copy of any power purchase agreement, thermal energy purchase agreement, and other long-term offtake or revenue-generating agreement that will be the primary source of revenue for the project, including repayment of the debt obligations for which a guarantee is sought; and

   Inserted: "(F) a list of each engineering and design contractor, construction contractor, and equipment supplier for the project, as well as any performance guarantee, performance bond, liquidated damages provision, and equipment warranty to be provided.".

   Inserted: (b) Eligible Projects.--Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended--

   Inserted: (1) in subsection (b), by adding at the end the following:

   Inserted: "(11) Local energy infrastructure, as defined in section 243 of the Local Energy Supply and Resiliency Act of 2013."; and

   Inserted: (2) by adding at the end the following:

   Inserted: "(f) Special Rules for Local Energy Infrastructure.--

   Inserted: "(1) In general.--Subsection (a)(2) shall not apply to a project described in subsection (b)(11).

   Inserted: "(2) Requirements for loan guarantee.--A loan guarantee shall only be made available for a project described in subsection (b)(11) to the extent specifically provided for in advance by an appropriations Act enacted after the date of enactment of the Local Energy Supply and Resiliency Act of 2013.".

   Inserted: SEC. 246. DEFINITION OF INVESTMENT AREA.

   Inserted: Section 103(16) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(16)) is amended--

   Inserted: (1) in subparagraph (A)(ii), by striking "or" at the end;

   Inserted: (2) in subparagraph (B), by striking the period at the end and inserting "; or"; and

   Inserted: (3) by adding at the end the following:

   Inserted: "(C) has the potential for implementation of local energy infrastructure (as defined in section 243 of the Local Energy Supply and Resiliency Act of 2013).".

   Inserted: SEC. 247. STATE ENERGY CONSERVATION PLANS.

   Inserted: Section 362(d) of the Energy Policy and Conservation Act (42 U.S.C. 6322(d)) is amended--

   Inserted: (1) in paragraph (16), by striking "and" at the end;

   Inserted: (2) by redesignating paragraph (17) as paragraph (18); and

   Inserted: (3) by inserting after paragraph (16) the following:

   Inserted: "(17) programs to support the evaluation and implementation of local energy infrastructure (as defined in section 243 of the Local Energy Supply and Resiliency Act of 2013).".

   Original wording

   At the end of title II, add the following:

2. 2

   Change 2: Rewrites page 47, line 24 through page 48, line 2

   ReplacesPrinted page

   Removes page 47, line 24 through page 48, line 2 of the printed bill. See that page

   Inserted: (4) $200,000,000 for fiscal year 2013;

   Inserted: (5) $180,000,000 for fiscal year 2014;

   Inserted: (6) $130,000,000 for fiscal year 2015; and

   Inserted: (7) $80,000,000 for each of fiscal years 2016 through 2018.

   Original wording

   Beginning on page 47, strike line 24 and all that follows through page 48, line 2, and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed