II 

114TH CONGRESS 

1ST SESSION S. 1516 

To amend the Internal Revenue Code of 1986 to modify the energy credit 

to provide greater incentives for industrial energy efficiency. 

IN THE SENATE OF THE UNITED STATES 

JUNE 4, 2015 

Ms. COLLINS (for herself and Mr. CASEY) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the energy credit to provide greater incentives for industrial energy efficiency. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Power Efficiency and 

5 Resiliency Act’’ or as the ‘‘POWER Act’’. 

6 SEC. 2. MODIFICATIONS IN CREDIT FOR COMBINED HEAT 

7 AND POWER SYSTEM PROPERTY. 

8 (a) INCREASED ENERGY PERCENTAGE.—Clause (i) 

9 of section 48(a)(2)(A) of the Internal Revenue Code of 

10 1986 is amended by striking ‘‘and’’ at the end of subVerDate Sep 11 2014 04:17 Jun 09, 2015 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1516.IS S1516

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1 clause (III), by redesignating subclause (IV) as subclause 

2 (V), and by inserting after subclause (III) the following 

3 new subclause: 

4 ‘‘(IV) energy property described 

5 in paragraph (3)(A)(v), and’’. 

6 (b) MODIFICATION OF CERTAIN CAPACITY LIMITA7 TIONS.—Section 48(c)(3)(B) of such Code is amended— 

8 (1) by striking ‘‘15 megawatts’’ in clause (ii) 

9 and inserting ‘‘25 megawatts’’, 

10 (2) by striking ‘‘20,000 horsepower’’ in clause 

11 (ii) and inserting ‘‘34,000 horsepower’’, and 

12 (3) by striking clause (iii). 

13 (c) EXTENSION OF CREDIT FOR COMBINED HEAT

14 AND POWER SYSTEM PROPERTY.—Section 

15 48(c)(3)(A)(iv) of such Code is amended by striking ‘‘Jan16 uary 1, 2017’’ and inserting ‘‘January 1, 2019’’. 

17 (d) EFFECTIVE DATE.— 

18 (1) IN GENERAL.—Except as provided in para19 graph (2), the amendments made by this section 

20 shall apply to periods after the date of the enact21 ment of this Act, under rules similar to the rules of 

22 section 48(m) of the Internal Revenue Code of 1986 

23 (as in effect on the day before the date of the enact24 ment of the Revenue Reconciliation Act of 1990). 


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1 (2) EXTENSION OF CREDIT.—The amendments 

2 made by subsection (c) shall apply to property 

3 placed in service after December 31, 2016. 

4 SEC. 3. ENERGY CREDIT FOR WASTE HEAT TO POWER 

5 PROPERTY. 

6 (a) IN GENERAL.—Subparagraph (A) of section 

7 48(a)(3) of the Internal Revenue Code of 1986 is amended 

8 by striking ‘‘or’’ at the end of clause (vi), by inserting 

9 ‘‘or’’ at the end of clause (vii), and by adding at the end 

10 the following new clause: 

11 ‘‘(viii) waste heat to power property,’’. 

12 (b) WASTE HEAT TO POWER PROPERTY.—Sub13 section (c) of section 48 of such Code is amended by add14 ing at the end the following new paragraph: 

15 ‘‘(5) WASTE HEAT TO POWER PROPERTY.— 

16 ‘‘(A) WASTE HEAT TO POWER PROP17 ERTY.—The term ‘waste heat to power prop18 erty’ means property comprising a system which 

19 generates electricity through the recovery of a 

20 qualified waste heat resource. 

21 ‘‘(B) QUALIFIED WASTE HEAT RESOURCE

22 DEFINED.—The term ‘qualified waste heat re23 source’ means— 

24 ‘‘(i) exhaust heat or flared gas from 

25 any industrial process, 


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1 ‘‘(ii) waste gas or industrial tail gas 

2 that would otherwise be flared, incinerated, 

3 or vented, 

4 ‘‘(iii) a pressure drop in any gas for 

5 an industrial or commercial process, or 

6 ‘‘(iv) such other forms of waste heat 

7 resources as the Secretary may determine. 

8 ‘‘(C) EXCEPTION.—The term ‘qualified 

9 waste heat resource’ does not include any heat 

10 resource from a process whose primary purpose 

11 is the generation of electricity utilizing a fossil 

12 fuel or nuclear energy. 

13 ‘‘(D) TERMINATION.—The term ‘waste 

14 heat to power property’ shall not include any 

15 property placed in service after December 31, 

16 2018.’’. 

17 (c) INCREASED ENERGY PERCENTAGE.—Clause (i) 

18 of section 48(a)(2)(A) of such Code, as amended by sec19 tion 2(a) of this Act, is further amended by inserting after 

20 the new subclause (V) the following new subclause: 

21 ‘‘(VI) energy property described 

22 in paragraph (3)(A)(viii), and’’. 

23 (d) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to periods after the date of the 

25 enactment of this Act, under rules similar to the rules of 


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1 section 48(m) of the Internal Revenue Code of 1986 (as 

2 in effect on the day before the date of the enactment of 

3 the Revenue Reconciliation Act of 1990). 

Æ 


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