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payment of all guarantees issued under this section 
with respect to principal and interest. 
PART 5—INDUSTRIAL ENERGY EFFICIENCY 
SEC. 9061. INDUSTRIAL ENERGY EFFICIENCY. 
(a) AMENDMENT.—Title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6201 and following) is 
amended by adding the following after part D: 
‘‘PART E—INDUSTRIAL ENERGY EFFICIENCY 
‘‘SEC. 371. SURVEY OF WASTE INDUSTRIAL ENERGY RECOV-
ERY AND POTENTIAL USE. 
‘‘Congress finds that— 
‘‘(1) the Nation should encourage the use of 
otherwise wasted energy and the development of 
combined heat and power and other waste energy re-
covery projects where there is wasted thermal energy 
in large volumes at potentially useful temperatures; 
‘‘(2) such projects would increase energy effi-
ciency and lower pollution by generating power with 
no incremental fossil fuel consumption; 
‘‘(3) because recovered waste energy and com-
bined heat and power projects are associated with 
end-uses of thermal energy and electricity at the 
local level, they help avoid new transmission lines, 
reduce line losses, reduce local air pollutant emis-
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sions, and reduce vulnerability to extreme weather 
and terrorism; and 
‘‘(4) States, localities, electric utilities, and 
other electricity customers may benefit from private 
investments in recovered waste energy and combined 
heat and power projects at industrial and commer-
cial sites by avoiding generation, transmission and 
distribution expenses, and transmission line loss ex-
penses that may otherwise be required to be recov-
ered from ratepayers. 
‘‘SEC. 372. DEFINITIONS. 
‘‘For purposes of this Part: 
‘‘(1) The term ‘Administrator’ means the Ad-
ministrator of the Environmental Protection Agency. 
‘‘(2) The term ‘waste energy’ meansl 
‘‘(A) exhaust heat and flared gases from 
any industrial process; 
‘‘(B) waste gas or industrial tail gas that 
would otherwise be flared, incinerated or vent-
ed; 
‘‘(C) a pressure drop in any gas, excluding 
any pressure drop to a condenser that subse-
quently vents the resulting heat; and 
‘‘(D) such other forms of waste energy as 
the Administrator may identify. 
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‘‘(3) The term ‘recoverable waste energy’ means 
waste energy from which electricity or useful ther-
mal energy may be recovered through modification 
of existing facilities or addition of new facilities. 
‘‘(4) The term ‘net excess power’ means, for 
any facility, recoverable waste energy recovered in 
the form of electricity in amounts exceeding the total 
consumption of electricity at the specific time of gen-
eration on the site where the facility is located. 
‘‘(5) The term ‘useful thermal energy’ is energy 
in the forms of direct heat, steam, hot water, or 
other thermal forms that is used in production and 
beneficial measures for heating, cooling, humidity 
control, process use, or other valid thermal end-use 
energy requirements, and for which fuel or elec-
tricity would otherwise be consumed. 
‘‘(6) The term ‘combined heat and power sys-
tem’ means a facility— 
‘‘(A) that simultaneously and efficiently 
produces useful thermal energy and electricity; 
and 
‘‘(B) that recovers not less than 60 percent 
of the energy value in the fuel (on a lower-heat-
ing-value basis) in the form of useful thermal 
energy and electricity. 
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