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                                                       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

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                            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.

           *       *       *       *       *       *       *