637 
the first 3 calendar years of such production, begin-
ning on or after the date of enactment of this Part. 
If the project produces net excess power and an elec-
tric utility purchases or transmits the excess power, 
50 percent of so much of such grant as is attrib-
utable to the net excess power shall be paid to the 
electric utility purchasing or transporting the net ex-
cess power. 
‘‘(3) USEFUL THERMAL ENERGY.—In the case 
of waste energy recovery that produces useful ther-
mal energy that is used for a purpose different from 
that for which the project is principally designed, the 
grants under this section shall be made to the owner 
or operator of the waste energy recovery project at 
the rate of $10 for each 3,412,000 Btus of such ex-
cess thermal energy used for such different purpose. 
‘‘(c) GRANTS TO STATES.—In the case of States that 
have achieved 80 percent or more of waste-heat recovery 
opportunities identified by the Administrator under this 
Part, the Administrator shall make grants to the States 
of up to $1,000 per Megawatt of waste-heat capacity re-
covered (or its thermal equivalent) to support State-level 
programs to identify and achieve additional energy effi-
ciency. 
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‘‘(d) ELIGIBILITY.—The Administrator shall estab-
lish rules and guidelines to establish eligibility for grants, 
shall make the grant program known to those listed in 
the Registry, and shall offer such grants on the basis of 
the merits of each project in recovering or preventing 
waste energy throughout the United States on an impar-
tial, objective, and not unduly discriminatory basis. 
‘‘(e) AUTHORIZATION.—(1) There is authorized to be 
appropriated to the Administrator $100,000,000 for fiscal 
year 2008, and $200,000,000 for each of fiscal years 
2009, 2010, 2011, and 2012 for grants under subsection 
(b) of this section, and such additional amounts during 
those years and thereafter as may be necessary for admin-
istration of the Waste Energy Recovery Incentive Grant 
Program. 
‘‘(2) There is authorized to be appropriated to the 
Administrator not more than $10,000,000 for each of the 
first five fiscal years after the enactment of this Part, to 
be available until expended for purposes of grants to 
States under subsection (c). 
‘‘SEC. 375. ADDITIONAL INCENTIVES FOR RECOVERY, UTILI-
ZATION AND PREVENTION OF INDUSTRIAL 
WASTE ENERGY. 
‘‘(a) CONSIDERATION
OF
STANDARD.—Not later 
than 180 days after the receipt by a State regulatory au-
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thority (with respect to each electric utility for which it 
has ratemaking authority), or nonregulated electric utility, 
of a request from a project sponsor or owner or operator, 
the State regulatory authority or nonregulated electric 
utility shall provide public notice and conduct a hearing 
respecting the standard established by subsection (b) and, 
on the basis of such hearing, shall consider and make a 
determination whether or not it is appropriate to imple-
ment such standard to carry out the purposes of this Part. 
For purposes of any such determination and any review 
of such determination in any court the purposes of this 
section supplement otherwise applicable State law. Noth-
ing in this Part prohibits any State regulatory authority 
or nonregulated electric utility from making any deter-
mination that it is not appropriate to adopt any such 
standard, pursuant to its authority under otherwise appli-
cable State law. 
‘‘(b) STANDARD FOR SALES OF EXCESS POWER.— 
For purposes of this section, the standard referred to in 
subsection (a) shall provide that an owner or operator of 
a waste energy recovery project identified on the Registry 
who generates net excess power shall be eligible to benefit 
from at least one of the options described in subsection 
(c) for disposal of the net excess power in accordance with 
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the rate conditions and limitations described in subsection 
(d). 
‘‘(c) OPTIONS.—The options referred to in subsection 
(b) are as follows: 
‘‘(1) SALE OF NET EXCESS POWER TO UTIL-
ITY.—The electric utility shall purchase the net ex-
cess power from the owner or operator of the eligible 
waste-energy recovery project during the operation 
of the project under a contract entered into for that 
purpose. 
‘‘(2) TRANSPORT BY UTILITY FOR DIRECT SALE 
TO THIRD PARTY.—The electric utility shall transmit 
the net excess power on behalf of the project owner 
or operator to up to three separate locations on that 
utility’s system for direct sale by that owner or oper-
ator to third parties at such locations. 
‘‘(3) TRANSPORT OVER PRIVATE TRANSMISSION 
LINES.—The State and the electric utility shall per-
mit, and shall waive or modify such laws as would 
otherwise prohibit, the construction and operation of 
private electric wires constructed, owned and oper-
ated by the project owner or operator, to transport 
such power to up to 3 purchasers within a 3-mile ra-
dius of the project, allowing such wires to utilize or 
cross public rights-of-way, without subjecting the 
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project to regulation as a public utility, and accord-
ing such wires the same treatment for safety, zon-
ing, land-use and other legal privileges as apply or 
would apply to the utility’s own wires, except that— 
‘‘(A) there shall be no grant of any power 
of eminent domain to take or cross private 
property for such wires, and 
‘‘(B) such wires shall be physically seg-
regated and not interconnected with any portion 
of the utility’s system, except on the customer’s 
side of the utility’s revenue meter and in a 
manner that precludes any possible export of 
such electricity onto the utility system, or dis-
ruption of such system. 
‘‘(4) AGREED UPON ALTERNATIVES.—The util-
ity and the owner or operator of the project may 
reach agreement on any alternate arrangement and 
its associated payments or rates that is mutually 
satisfactory and in accord with State law. 
‘‘(d) RATE CONDITIONS AND CRITERIA.— 
‘‘(1) IN GENERAL.—The options described in 
paragraphs (1) and (2) in subsection (c) shall be of-
fered under purchase and transport rate conditions 
reflecting the rate components defined under para-
graph (2) of this subsection as applicable under the 
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