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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1205 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1205

 To reduce energy waste, strengthen energy system resiliency, increase 
 industrial competitiveness, 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 
                               resources.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 20, 2013

  Mr. Franken introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
 To reduce energy waste, strengthen energy system resiliency, increase 
 industrial competitiveness, 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 
                               resources.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Local Energy Supply and Resiliency 
Act of 2013''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) a quantity of energy that is more than--
                    (A) 27 percent of the total energy consumption in 
                the United States is released from power plants in the 
                form of waste heat; and
                    (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;
            (2) waste heat can be--
                    (A) recovered and distributed to meet building 
                heating or industrial process heating requirements;
                    (B) converted to chilled water for air conditioning 
                or industrial process cooling; or
                    (C) converted to electricity;
            (3) renewable energy resources in communities in the United 
        States can be used to meet local thermal and electric energy 
        requirements;
            (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;
            (5) use of local waste heat and renewable energy 
        resources--
                    (A) strengthens United States industrial 
                competitiveness;
                    (B) helps reduce reliance on fossil fuels and the 
                associated emissions of air pollution and carbon 
                dioxide;
                    (C) increases energy supply resiliency and 
                security; and
                    (D) keeps more energy dollars in local economies, 
                thereby creating jobs;
            (6) district energy systems represent a key opportunity to 
        tap waste heat and renewable energy resources;
            (7) district energy systems are important for expanding 
        implementation of combined heat and power (CHP) systems because 
        district energy systems provide infrastructure for delivering 
        thermal energy from a CHP system to a substantial base of end 
        users;
            (8) district energy systems serve colleges, universities, 
        hospitals, airports, military bases, and downtown areas;
            (9) district energy systems help cut peak power demand and 
        reduce power transmission and distribution system constraints 
        by--
                    (A) shifting power demand through thermal storage;
                    (B) generating power near load centers with a CHP 
                system; and
                    (C) meeting air conditioning demand through the 
                delivery of chilled water produced with heat generated 
                by a CHP system or other energy sources;
            (10) evaluation and implementation of district energy 
        systems--
                    (A) is a complex undertaking involving a variety of 
                technical, economic, legal, and institutional issues 
                and barriers; and
                    (B) often requires technical assistance to 
                successfully navigate these barriers; and
            (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.
    (b) Purposes.--The purposes of this Act are--
            (1) to encourage the use and distribution of waste heat and 
        renewable thermal energy--
                    (A) to reduce fossil fuel consumption;
                    (B) to enhance energy supply resiliency, 
                reliability, and security;
                    (C) to reduce air pollution and greenhouse gas 
                emissions;
                    (D) to strengthen industrial competitiveness; and
                    (E) to retain more energy dollars in local 
                economies; and
            (2) to facilitate the implementation of a local energy 
        infrastructure that accomplishes the goals described in 
        paragraph (1) by--
                    (A) providing technical assistance to evaluate, 
                design, and develop projects to build local energy 
                infrastructure; and
                    (B) facilitating low-cost financing for the 
                construction of local energy infrastructure through the 
                issuance of loan guarantees.

SEC. 3. DEFINITIONS.

            (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.
            (2) 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.
            (3) Loan guarantee program.--The term ``Loan Guarantee 
        Program'' means the Local Energy Infrastructure Loan Guarantee 
        Program established under section 5.
            (4) Local energy infrastructure.--The term ``local energy 
        infrastructure'' means a system that--
                    (A) recovers or produces useful thermal or electric 
                energy from waste energy or renewable energy resources;
                    (B) generates electricity using a combined heat and 
                power system;
                    (C) distributes electricity in microgrids;
                    (D) stores thermal energy; or
                    (E) distributes thermal energy or transfers thermal 
                energy to building heating and cooling systems via a 
                district energy system.
            (5) Microgrid.--The term ``microgrid'' means a group of 
        interconnected loads and distributed energy resources within 
        clearly defined electrical boundaries that--
                    (A) acts as a single controllable entity with 
                respect to the grid; and
                    (B) can connect and disconnect from the grid to 
                enable the microgrid to operate in both grid-connected 
                or island-mode.
            (6) Renewable energy resource.--The term ``renewable energy 
        resource'' means--
                    (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);
                    (B) gaseous or liquid fuels produced from the 
                materials described in subparagraph (A);
                    (C) geothermal energy (as defined in section 
                45(c)(4) of such Code);
                    (D) municipal solid waste (as defined in section 
                45(c)(6) of such Code); or
                    (E) solar energy (which is used, undefined, in 
                section 45 of such Code).
            (7) Renewable thermal energy.--The term ``renewable thermal 
        energy'' means--
                    (A) heating or cooling energy derived from a 
                renewable energy resource;
                    (B) natural sources of cooling such as cold lake or 
                ocean water; or
                    (C) other renewable thermal energy sources, as 
                determined by the Secretary.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (9) Thermal energy.--The term ``thermal energy'' means--
                    (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
                    (B) cooling energy in the form of chilled water, 
                ice or other media that is used to provide air 
                conditioning, or process cooling.
            (10) Waste energy.--The term ``waste energy'' means energy 
        that--
                    (A) is contained in--
                            (i) exhaust gases, exhaust steam, condenser 
                        water, jacket cooling heat, or lubricating oil 
                        in power generation systems;
                            (ii) exhaust heat, hot liquids, or flared 
                        gas from any industrial process;
                            (iii) waste gas or industrial tail gas that 
                        would otherwise be flared, incinerated, or 
                        vented;
                            (iv) a pressure drop in any gas, excluding 
                        any pressure drop to a condenser that 
                        subsequently vents the resulting heat;
                            (v) condenser water from chilled water or 
                        refrigeration plants; or
                            (vi) any other form of waste energy, as 
                        determined by the Secretary; and
                    (B)(i) in the case of an existing facility, is not 
                being used; or
                    (ii) in the case of a new facility, is not 
                conventionally used in comparable systems.

SEC. 4. TECHNICAL ASSISTANCE PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish a program to 
        disseminate information and provide technical assistance, 
        directly or through grants provided so that recipients may 
        contract to obtain technical assistance, to assist eligible 
        entities in identifying, evaluating, planning, and designing 
        local energy infrastructure.
            (2) Technical assistance.--The technical assistance under 
        paragraph (1) shall include assistance with 1 or more of the 
        following:
                    (A) Identification of opportunities to use waste 
                energy or renewable energy resources.
                    (B) Assessment of technical and economic 
                characteristics.
                    (C) Utility interconnection.
                    (D) Negotiation of power and fuel contracts.
                    (E) Permitting and siting issues.
                    (F) Marketing and contract negotiations.
                    (G) Business planning and financial analysis.
                    (H) Engineering design.
            (3) Information dissemination.--The information 
        dissemination under paragraph (1) shall include--
                    (A) information relating to the topics identified 
                in paragraph (2), including case studies of successful 
                examples; and
                    (B) computer software for assessment, design, and 
                operation and maintenance of local energy 
                infrastructure.
    (b) Eligible Entity.--Any nonprofit or for-profit entity shall be 
eligible to receive assistance under the program established under 
subsection (a).
    (c) Eligible Costs.--On application by an eligible entity, the 
Secretary may award grants to an eligible entity to provide funds to 
cover not more than--
            (1) 100 percent of the cost of initial assessment to 
        identify local energy opportunities;
            (2) 75 percent of the cost of feasibility studies to assess 
        the potential for the implementation of local energy 
        infrastructure;
            (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
            (4) 45 percent of the cost of detailed engineering of local 
        energy infrastructure.
    (d) Applications.--
            (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).
            (2) Application process.--The Secretary shall seek 
        applications for technical assistance under this section--
                    (A) on a competitive basis; and
                    (B) on a periodic basis, but not less frequently 
                than once every 12 months.
    (e) Priorities.--In evaluating projects, the Secretary shall give 
priority to projects that have the greatest potential for--
            (1) maximizing elimination of fossil fuel use;
            (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;
            (3) minimizing environmental impact, including regulated 
        air pollutants, greenhouse gas emissions, and use of ozone-
        depleting refrigerants;
            (4) facilitating use of renewable energy resources;
            (5) increasing industrial competitiveness; and
            (6) maximizing local job creation.
    (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 Act.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $150,000,000 for the period of 
fiscal years 2014 through 2018, to remain available until expended.

SEC. 5. LOAN GUARANTEES FOR LOCAL ENERGY INFRASTRUCTURE.

    (a) Local Energy Infrastructure Loan Guarantee Program.--
            (1) In general.--Title XVII of the Energy Policy Act of 
        2005 (42 U.S.C. 16511 et seq.) is amended by adding at the end 
        the following:

``SEC. 1706. LOCAL ENERGY INFRASTRUCTURE LOAN GUARANTEE PROGRAM.

    ``(a) In General.--The Secretary may make guarantees under this 
section for commercial or innovative projects defined as `local energy 
infrastructure' in section 3 of the Local Energy Supply and Resiliency 
Act of 2013.
    ``(b) Modification of Existing Authority.--The Secretary shall 
reserve $4,000,000,000 of the loan guarantee authority remaining under 
section 1703 to provide loan guarantees under this section.
    ``(c) Use of Other Appropriated Funds.--To the maximum extent 
practicable, the Secretary shall use funds appropriated to carry out 
section 1703 that remain unobligated as of the date of enactment of 
this section for the cost of loan guarantees under this section.''.
            (2) Table of contents amendment.--The table of contents for 
        the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.) is 
        amended by inserting after the item relating to section 1705 
        the following new item:

``Sec. 1706. Local energy infrastructure loan guarantee program.''.

SEC. 6. DEFINITION OF INVESTMENT AREA.

    Section 103(16) of the Community Development Banking and Financial 
Institutions Act of 1994 (12 U.S.C. 4702(16)) is amended--
            (1) in subparagraph (A)(ii), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) has the potential for implementation of local 
                energy infrastructure as defined in the Local Energy 
                Supply and Resiliency Act of 2013.''.
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