I
107TH CONGRESS
1ST SESSION
H. R. 1945
To amend the Federal Power Act and the Internal Revenue Code of 1986
to encourage the development and deployment of innovative and efficient
energy technologies.
IN THE HOUSE OF REPRESENTATIVES
MAY 22, 2001
Mr. QUINN (for himself, Mr. MEEHAN, and Mr. DOYLE) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Energy and Commerce, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To amend the Federal Power Act and the Internal Revenue
Code of 1986 to encourage the development and deploy-
ment of innovative and efficient energy technologies.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Combined Heat and Power Advancement Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purpose.
TITLE I—INTERCONNECTION
Sec. 101. Interconnection.
TITLE II—INVESTMENT TAX CREDIT FOR COMBINED HEAT AND
POWER SYSTEMS
Sec. 201. Investment tax credit for combined heat and power systems.
SEC. 2. FINDINGS.
Congress finds that—
(1) the removal of barriers to the development
and deployment of combined heat and power tech-
nologies and systems, an example of an array of in-
novative energy-supply and energy-efficient tech-
nologies and systems, would—
(A) encourage technological innovation;
(B) reduce energy prices;
(C) spur economic development;
(D) enhance productivity;
(E) increase employment; and
(F) improve environmental quality and en-
ergy self-sufficiency;
(2) the level of efficiency of the United States
electricity-generating system has been stagnant over
the past several decades;
(3) technologies and systems available as of the
date of enactment of this Act, including a host of in-
novative onsite, distributed generation technologies,
could—
(A) dramatically increase productivity;
(B) double the efficiency of the United
States electricity-generating system; and
(C) reduce emissions of regulated pollut-
ants and greenhouse gases;
(4) innovative electric technologies emit a much
lower level of pollutants as compared to the average
quantity of pollutants generated by United States
electric generating plants as of the date of enact-
ment of this Act;
(5) a significant proportion of the United
States energy infrastructure will need to be replaced
by 2010;
(6) the public interest would best be served if
that infrastructure were replaced by innovative tech-
nologies that dramatically increase productivity, im-
prove efficiency, and reduce pollution;
(7) financing and regulatory practices in effect
as of the date of enactment of this Act do not recog-
nize the environmental and economic benefits to be
obtained from the avoidance of transmission and dis-
tribution losses, and the reduced load on the elec-
tricity-generating system, provided by onsite, com-
bined heat and power production;
(8) many legal, regulatory, informational, and
perceptual barriers block the development and dis-
semination of combined heat and power and other
innovative energy technologies; and
(9) because of those barriers, United States
taxpayers are not receiving the benefits of the sub-
stantial research and development investment in in-
novative energy technologies made by the Federal
Government.
SEC. 3. PURPOSE.
The purpose of this Act is to encourage energy pro-
ductivity and efficiency increases by—
(1) removing barriers to the development and
deployment of combined heat and power technologies
and systems; and
(2) establishing an investment tax credit for
qualified combined heat and power systems.
TITLE I—INTERCONNECTION
SEC. 101. INTERCONNECTION.
(a) DEFINITIONS.—Section 3 of the Federal Power
Act (16 U.S.C. 796) is amended—
(1) by striking paragraph (23) and inserting
the following:
‘‘(23) 
TRANSMITTING
UTILITY.—The 
term
‘transmitting utility’ means any entity (notwith-
standing section 201(f)) that owns, controls, or oper-
ates an electric power transmission facility that is
used for the sale of electric energy.’’; and
(2) by adding at the end the following:
‘‘(26) APPROPRIATE
REGULATORY
AUTHOR-
ITY.—The term ‘appropriate regulatory authority’
means—
‘‘(A) the Commission;
‘‘(B) a State commission;
‘‘(C) a municipality; or
‘‘(D) a cooperative that is self-regulating
under State law and is not a public utility.
‘‘(27) GENERATING FACILITY.—The term ‘gen-
erating facility’ means a facility that generates elec-
tric energy.
‘‘(28) LOCAL
DISTRIBUTION
UTILITY.—The
term ‘local distribution utility’ means an entity that
owns, controls, or operates an electric power dis-
tribution facility that is used for the sale of electric
energy.
‘‘(29) NON-FEDERAL
REGULATORY
AUTHOR-
ITY.—The term ‘non-Federal regulatory authority’
means an appropriate regulatory authority other
than the Commission.’’.
(b) INTERCONNECTION
TO DISTRIBUTION FACILI-
TIES.—Section 210 of the Federal Power Act (16 U.S.C.
824i) is amended—
(1) by redesignating subsection (e) as sub-
section (g); and
(2) by inserting after subsection (d) the fol-
lowing:
‘‘(e) INTERCONNECTION TO DISTRIBUTION FACILI-
TIES.—
‘‘(1) INTERCONNECTION.—
‘‘(A) IN
GENERAL.—A local distribution
utility shall interconnect a generating facility
with the distribution facilities of the local dis-
tribution utility if the owner of the generating
facility—
‘‘(i) complies with the final rule pro-
mulgated under paragraph (2); and
‘‘(ii) pays the costs of the interconnec-
tion.
‘‘(B) 
COSTS.—The 
costs 
of 
the
interconnection—
‘‘(i) shall be just and reasonable, and
not unduly discriminatory, as determined
by the appropriate regulatory authority;
and
‘‘(ii) shall be comparable to the costs
charged by the local distribution utility for
interconnection by any similarly situated
generating facility to the distribution facili-
ties of the local distribution utility.
‘‘(C) APPLICABLE
REQUIREMENTS.—The
right of a generating facility to interconnect
under subparagraph (A) does not—
‘‘(i) relieve the generating facility or
the local distribution utility of other Fed-
eral, State, or local requirements; or
‘‘(ii) provide the generating facility
with transmission or distribution service.
‘‘(2) RULE.—
‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of this subpara-
graph, the Commission shall promulgate a final
rule to establish reasonable and appropriate
technical standards for the interconnection of a
generating facility with the distribution facili-
ties of a local distribution utility.