[Senate Report 116-209] [From the U.S. Government Publishing Office] Calendar No. 354 116th Congress } { Report SENATE 2d Session } { 116-209 ====================================================================== CHP SUPPORT ACT OF 2019 _______ January 28, 2020.--Ordered to be printed _______ Ms. Murkowski, from the Committee on Energy and Natural Resources, submitted the following R E P O R T [To accompany S. 2425] The Committee on Energy and Natural Resources, to which was referred the bill (S. 2425) to amend the Energy Policy and Conservation Act to establish the CHP Technical Assistance Partnership Program, and for other purposes, having considered the same, reports favorably thereon with amendments and recommends that the bill, as amended, do pass. Amendments The amendments are as follows: On page 5, line 6, strike ``target market''. On page 5, line 16, strike ``perform market research to''. On page 5, line 17, strike ``high-profile''. On page 6, lines 3 and 4, strike ``companies and organizations''. Purpose The purpose of S. 2425 is to amend the Energy Policy and Conservation Act (EPCA, Public Law 94-163) to establish the CHP Technical Assistance Partnership Program (Program). Background and Need The Department of Energy (DOE) estimates that there is more than 240 gigawatts of technical potential for combined heat and power (CHP) at over 291,000 sites within the United States, across all CHP categories--onsite industrial, onsite commercial, onsite waste heat to power, export industrial, and export district energy. DOE, CHP Technical Potential in the U.S. at iii (Mar. 2016). Because CHP produces both electricity and thermal energy onsite, CHP systems can increase energy security by producing energy at the point of use, while simultaneously improving energy efficiency. Generally, when electricity and thermal energy are provided separately, overall energy efficiency ranges from 45 to 55 percent. In contrast, a typical CHP system will operate with an overall efficiency of between 65 to 85 percent. S. 2425 seeks to support businesses that want to invest in energy efficient CHP technology, and enable higher education research centers to provide assistance and analysis for businesses considering investing in CHP technology deployment. Legislative History S. 2425 was introduced by Senators King and Collins on August 1, 2019. The Energy Subcommittee held a hearing on the measure on November 6, 2019. Companion legislation, H.R. 1480, was introduced in the House of Representatives by Representatives Welch, Kinzinger, McKinley, and Tonko on February 28, 2019. In the 115th Congress, a similar bill, S. 2142, was introduced by Senator King on November 16, 2017. Companion legislation, H.R. 6949, was introduced in the House of Representatives by Representatives Kinzinger, McKinley, Tonko, and Welch on September 27, 2018. The Senate Committee on Energy and Natural Resources met in open business session on November 19, 2019, and ordered S. 2425 favorably reported, as amended. Committee Recommendation The Senate Committee on Energy and Natural Resources, in open business session on November 19, 2019, by a majority voice vote of a quorum present, recommends that the Senate pass S. 2425, if amended as described herein. Senator Lee asked to be recorded as voting no. Committee Amendments During its consideration of S. 2425, the Committee adopted four amendments to the revision of section 375(b)(2)(B)(2) of EPCA made by the bill as originally introduced, which governs funding for regional CHP Technical Assistance Partnerships. The amendments strike the following: ``target market'' in clause (iv); ``perform market research'' and ``high profile'' in clause (vi); and ``companies and organizations'' in clause (ix). Section-by-Section Analysis Section 1. Short title Section 1 provides a short title. Sec. 2. CHP Technical Assistance Partnership Program Section 2(a) amends section 375 of EPCA to establish the CHP Technical Assistance Partnership Program. The revised section 375 is titled ``Sec. 375. CHP Technical Assistance Partnership Program.'' The entire section 375 is replaced by this subsection. The revised section 375(a) redesignates DOE's Clean Energy Application Centers as the CHP Technical Assistance Partnership Program. The Program shall include the ten regional CHP Technical Assistance Partnerships already in existence, any others the Secretary of Energy (Secretary) establishes, and any supporting activities under the Technical Partnership Program of the Advanced Manufacturing Office. The revised section 375(b)(1) describes the Program, which must encourage deployment of CHP, waste heat to power, and efficient district energy by providing education and outreach, and provide project specific support to building and industrial professionals through assessments and advisory activities. The revised section 375(b)(2) directs the Program to make funds available to universities, research centers, and other appropriate institutions to ensure continued effectiveness of regional CHP Technical Assistance Partnerships. This section further specifies the allowable uses of those funds, including to research and develop informational materials; support mission goals of the Department of Defense relating to CHP and microgrid technologies; maintain and update various CHP databases; conduct workshops and seminars; provide onsite CHP technology deployment assessments; identify candidates for CHP technology deployment; provide appropriate engineering support; assist organizations in overcoming barriers to deployment; and assist with field validation and performance evaluation of CHP and other clean energy technologies. The revised section 375(c) authorizes for this section $12 million for each of fiscal years 2020 through 2024. Subsection (b) makes a conforming amendment to section 372(g) of EPCA. Subsection (c) makes a clerical amendment to the table of contents of EPCA. Cost and Budgetary Considerations The Congressional Budget Office estimate of the costs of this measure has been requested but was not received at the time the report was filed. When the Congressional Budget Office completes its cost estimate, it will be posted on the internet at www.cbo.gov. Regulatory Impact Evaluation In compliance with paragraph 11(b) of rule XXVI of the Standing Rules of the Senate, the Committee makes the following evaluation of the regulatory impact which would be incurred in carrying out S. 2425. The bill is not a regulatory measure in the sense of imposing Government-established standards or significant economic responsibilities on private individuals and businesses. No personal information would be collected in administering the program. Therefore, there would be no impact on personal privacy. Little, if any, additional paperwork would result from the enactment of S. 2425, as ordered reported. Congressionally Directed Spending S. 2425, as ordered reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. Executive Communications The testimony provided by the Department of Energy at the November 6, 2019, hearing on S. 2425 follows: Testimony of Assistant Secretary Daniel Simmons, Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy introduction Chairman Cassidy, Ranking Member Heinrich, and Members of the Energy Subcommittee of the Committee on Energy and Natural Resources, thank you for the opportunity to testify today on legislation pertinent to the Department of Energy now pending in the Senate. My name is Daniel Simmons, and I am the Assistant Secretary for the Office of Energy Efficiency and Renewable Energy (EERE). As the Assistant Secretary, I am responsible for overseeing a broad portfolio of energy efficiency and renewable energy programs. The technologies in my portfolio advance America's economic growth and energy security while enhancing the reliability and resilience of the U.S. energy system. The Department of Energy supports improving the energy efficiency and reducing energy costs, while at the same time ensuring important performance standards are met or exceeded. For instance, we want to ensure schools and other buildings are sufficiently bright to ensure safety, and that water flow from faucets is strong enough to clean dirty hands. Today, I would like to share what relevant work my office has done and is doing in the areas that these bills address. I have been asked to testify on eleven (11) bills today, addressing a range of important energy issues. The Administration continues to review all of these bills. I appreciate the ongoing bipartisan efforts to address our Nation's energy challenges and I look forward to working with the Committee. bills S. 2425--CHP Support Act of 2019 S. 2425 amends the Energy Policy and Conservation Act to establish the Combined Heat and Power (CHP) Technical Assistance Partnership Program. The program would provide education and outreach to building, industrial, and electric and natural gas utility professionals, State and local policy makers, and other stakeholders with an interest in CHP, waste heat to power, and efficient district energy technologies. The bill would update the number of regional CHP Technical Assistance Partnerships from 8 to 10, as well as authorize annual appropriations of $12 million for each of fiscal years 2020 through 2024. The Department will continue to review the legislation and looks forward to working with Congress as the legislative process moves forward. conclusion Thank you again for the opportunity to testify before the Subcommittee today. The Department appreciates the ongoing bipartisan efforts to address our Nation's energy challenges, and looks forward to working with the Committee on the legislation on today's agenda and any future legislation. I would be happy to answer your questions. Changes in Existing Law In compliance with paragraph 12 of rule XXVI of the Standing Rules of the Senate, the changes in existing law made by S. 2425, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman): ENERGY POLICY AND CONSERVATION ACT Public Law 94-163, as Amended * * * * * * * TABLE OF CONTENTS * * * * * * * TITLE III--IMPROVING ENERGY EFFICIENCY * * * * * * * Part E--Industrial Energy Efficiency Sec. 371. Definitions. Sec. 372. Survey and Registry. Sec. 373. Waste energy recovery incentive grant program. Sec. 374. Additional incentives for recovery, utilization and prevention of industrial waste energy. [Sec. 375. Clean Energy Application Centers.] Sec. 375. CHP Technical Assistance Partnership Program. * * * * * * * TITLE III--IMPROVING ENERGY EFFICIENCY * * * * * * * Part E--Industrial Energy Efficiency * * * * * * * SEC. 372. SURVEY AND REGISTRY. * * * * * * * (f) New Facilities.--As a new energy-consuming industrial facility is developed after the date of enactment of the Energy Independence and Security Act of 2007, to the extent the facility may constitute a site with recoverable waste energy that may qualify for inclusion on the Registry, the Administrator may elect to include the facility on the Registry, at the request of the owner, operator, or developer of the facility, on a conditional basis with the site to be removed from the Registry if the development ceases or the site fails to qualify for listing under this part. (g) Optimum Means of Recovery.--For each site listed in the Registry, at the request of the owner or operator of the site, the Administrator shall offer, in cooperation with [Clean Energy Application Centers operated by the Secretary of Energy] regional CHP Technical Assistance Partnerships, suggestions for optimum means of recovery of value from waste energy stream in the form of electricity, useful thermal energy, or other energy-related products. (h) Revision.--Each annual report of a State under section 548(a) of the National Energy Conservation Policy Act (42 U.S.C. 8258(a)) shall include the results of the survey for the State under this section. * * * * * * * [SEC. 375. CLEAN ENERGY APPLICATION CENTERS. [(a) Renaming.-- [(1) In general.--The Combined Heat and Power Application Centers of the Department of Energy are redesignated as Clean Energy Application Centers. [(2) References.--Any reference in any law, rule, regulation, or publication to a Combined Heat and Power Application Center shall be treated as a reference to a Clean Energy Application Center. [(b) Relocation.-- [(1) In general.--In order to better coordinate efforts with the separate Industrial Assessment Centers and to ensure that the energy efficiency and, when applicable, the renewable nature of deploying mature clean energy technology is fully accounted for, the Secretary shall relocate the administration of the Clean Energy Application Centers to the Office of Energy Efficiency and Renewable Energy within the Department of Energy. [(2) Office of electricity delivery and energy reliability.--The Office of Electricity Delivery and Energy Reliability shall-- [(A) continue to perform work on the role of technology described in paragraph (1) in support of the grid and the reliability and security of the technology; and [(B) shall assist the Clean Energy Application Centers in the work of the Centers with regard to the grid and with electric utilities. [(c) Grants.-- [(1) In general.--The Secretary shall make grants to universities, research centers, and other appropriate institutions to ensure the continued operations and effectiveness of 8 Regional Clean Energy Application Centers in each of the following regions (as designated for such purposes as of the date of the enactment of the Energy Independence and Security Act of 2007): [(A) Gulf Coast. [(B) Intermountain. [(C) Mid-Atlantic. [(D) Midwest. [(E) Northeast. [(F) Northwest. [(G) Pacific. [(H) Southeast. [(2) Establishment of goals and compliance.--In making grants under this subsection, the Secretary shall ensure that sufficient goals are established and met by each Center throughout the program duration concerning outreach and technology deployment. [(d) Activities.-- [(1) In general.--Each Clean Energy Application Center shall-- [(A) operate a program to encourage deployment of clean energy technologies through education and outreach to building and industrial professionals; and other individuals and organizations with an interest in efficient energy use; and [(B) provide project specific support to building and industrial professionals through assessments and advisory activities. [(2) Types of activities.--Funds made available under this section may be used-- [(A) to develop and distribute informational materials on clean energy technologies, including continuation of the 8 websites in existence on the date of enactment of the Energy Independence and Security Act of 2007; [(B) to develop and conduct target market workshops, seminars, Internet programs, and other activities to educate end users, regulators, and stakeholders in a manner that leads to the deployment of clean energy technologies; [(C) to provide or coordinate onsite assessments for sites and enterprises that may consider deployment of clean energy technology; [(D) to perform market research to identify high profile candidates for clean energy deployment; [(E) to provide consulting support to sites considering deployment of clean energy technologies; [(F) to assist organizations developing clean energy technologies to overcome barriers to deployment; and [(G) to assist companies and organizations with performance evaluations of any clean energy technology implemented. [(e) Duration.-- [(1) In general.--A grant awarded under this section shall be for a period of 5 years [(2) Annual evaluations.--Each grant shall be evaluated annually for the continuation of the grant based on the activities and results of the grant. [(f) Authorization.--There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2008 through 2012.] SEC. 375. CHP TECHNICAL ASSISTANCE PARTNERSHIP PROGRAM. (a) Renaming.-- (1) In general.--The Clean Energy Application Centers of the Department of Energy are redesignated as the CHP Technical Assistance Partnership Program (referred to in this section as the ``Program''). (2) Program description.--The Program shall consist of-- (A) the 10 regional CHP Technical Assistance Partnerships in existence on the date of enactment of the CHP Support Act of 2019; (B) any other regional CHP Technical Assistance Partnerships as the Secretary may establish; and (C) any supporting technical activities under the Technical Partnership Program of the Advanced Manufacturing Office of the Department of Energy. (3) References.--Any reference in any law, rule, regulation, or publication to a Combined Heat and Power Application Center or a Clean Energy Application Center shall be deemed to be a reference to the Program. (b) CHP Technical Assistance Partnership Program.-- (1) In general.--The Program shall-- (A) operate programs to encourage deployment of combined heat and power, waste heat to power, and efficient district energy (collectively referred to in this subsection as `CHP') technologies by providing education and outreach-- (i) to building, industrial, and electric and natural gas utility professionals; (ii) to State and local policymakers; and (iii) to other individuals and organizations with an interest in efficient energy use, local or opportunity fuel use, resiliency, energy security, microgrids, and district energy; and (B) provide project-specific support to building and industrial professionals through economic and engineering assessments and advisory activities. (2) Funding for certain activities.-- (A) In general.--The Program shall make funds available to institutions of higher education, research centers, and other appropriate institutions to ensure the continued operation and effectiveness of regional CHP Technical Assistance Partnerships. (B) Use of funds.--Funds made available under subparagraph (A) may be used-- (i) to research, develop, and distribute informational materials relevant to manufacturers, commercial buildings, institutional facilities, and Federal sites; (ii) to support the mission goals of the Department of Defense relating to CHP and microgrid technologies; (iii) to continuously maintain and update-- (I) the CHP installation database; (II) CHP technology potential analyses; (III) State CHP resource websites; and (IV) CHP Technical Assistance Partnerships websites; (iv) to research, develop, and conduct target market workshops, reports, seminars, internet programs, CHP resiliency resources, and other activities to provide education to end users, regulators, and stakeholders in a manner that leads to the deployment of CHP technologies; (v) to provide or coordinate onsite assessments for sites and enterprises that may consider deployment of CHP technology; (vi) to perform market research to identify high-profile candidates for deployment of CHP technologies, hybrid renewable-CHP technologies, microgrids, and clean energy; (vii) to provide nonbiased engineering support to sites considering deployment of CHP technologies; (viii) to assist organizations developing clean energy technologies and policies in overcoming barriers to deployment; and (ix) to assist companies and organizations with field validation and performance evaluations of CHP and other clean energy technologies implemented. (C) Duration.--The Program shall make funds available under subparagraph (A) for a period of 5 years. (c) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $12,000,000 for each of fiscal years 2020 through 2024. * * * * * * *