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Federal Legislation - Existing
The Public Utility Holding Company Act of 1935
The Public Utility Holding Company Act (PUHCA) of 1935 is the only law that prevents utility holding companies from subsidizing unregulated business activities from profits obtained from their regulated business activities and captive customers. PUHCA requires that all side businesses be kept separate from the regulated business.
[Read More  ]Current Status
Public Utilities Regulatory Policies Act of 1978
A US federal law enacted in 1978 which was intended to encourage more energy-efficient and environmentally friendly commercial energy production. PURPA defined a new class of energy producer called a qualifying facility. QFs are either small-scale producers of commercial energy who normally self-generate energy for their own needs but may have occasional or frequent surplus energy, or incidental producers who happen to generate usable electric energy as a byproduct of other activities. When a facility of this type meets the Federal Energy Regulatory Commission's requirements for ownership, size and efficiency, utility companies are obliged to purchase energy from these facilities based on a pricing structure referred to as avoided cost rates. These rates tend to be highly favorable to the producer, and are intended to encourage more production of this type of energy as a means of reducing emissions and dependence on other sources of energy.
[Read More ]Current Status
Energy Policy Act of 1992 (Public Law 102-486)
After two years of legislative work on a wide-ranging energy bill, the Congress cleared H.R. 776, the Energy Policy Act of 1992, on October 8, 1992. The President signed the bill into law on October 24, 1992. The Energy Policy Act was the broadest and most extensive energy legislation enacted since the National Energy Act of 1978. The act contains some significant changes in federal energy policy, most notably a reform of regulations on the U.S. electric utility industry.
[Read More ]Energy Policy Act of 2005 (Public Law 109-58)
On August 8, 2005, the Energy Policy Act of 2005 was enacted. It has been almost 13 years since the enactment of major energy legislation. The primary concern driving the Act is the belief that the United States needs an assured domestic fuel and energy supply, particularly in the face of oil and natural gas prices at historic highs.A presentation presented by Jim Jimison, former director of USCHPA, on October 3, 2005
Provisions Relating to CHP/Distributed Generation and Renewable Energy
Note: Click on a subtitle to see additional information
Title I - Energy Efficiency
§106: Voluntary Commitments to Reduce Industrial Energy Intensity
The goal of a voluntary commitment is at least 2.5% reduction per year from 2007 through 2016. Grant or technical assistance to be provided by U.S. DOE.§121: Low-Income Home Energy Assistance Program
Includes assistance for purchasing renewable energy including biomass. Congress appropriated $5.1 billion per year through 2007.§123: State Energy Programs
The energy efficiency goal of each state will be at least 25% improvement in efficiency by calendar year 2012 as compared to calendar year 1990.§125: Energy Efficient Public Buildings
Awards grants for: (1) Construction of new public building that uses at least 30% less energy than a comparable building constructed in compliance with the current version of the International Energy Conservation Code (IECC) and/or (2) Renovation of an existing public building to achieve reductions in energy use of at least 30% as compared to the baseline energy use in such buildings prior to renovation assuming a 3-year, weather-normalized average.§126: Low-Income Community Energy Efficiency Pilot Program
DOE will award grants to local governments, private, non-profit community development organizations and Indian tribe economic development entities who wish to improve energy efficiency; identify and develop alternative, renewable, and distributed energy supplies; and/or increase energy conservation in low income rural and urban communities. Technical and financial assistance to local governments and private entities in the development of new combined heat and power generation is included.§154: Energy Strategy for the Department of Housing & Urban Development
Section 2.2 of HUD's Energy Strategy ( 935 KB) states the Department will "identify opportunities and assist with feasibility analysis for combined heat and power in public or assisted housing."Title II - Renewable Energy
§202: Renewable Energy Production Incentive
A corporate tax credit () that now includes closed-loop (dedicated energy crops) biomass technologies, landfill gas, and livestock methane. The production incentive is equal to $0.019/kW for closed-loop biomass and $0.01/kW for all others. The incentive applies to the first ten years of operation. This incentive expires December 31, 2008.§206(b): District Heating and Cooling Programs
Amends Energy Policy Act of 1992 §172 to include evaluating the use of renewable energy systems in residential buildings. The original Act required a study only on district heating and cooling systems.§209: Rural and Remote Community Electrification Grants
Projects may use biomass, landfill gas and livestock methane. A rural area is defined as containing no more than 10,000 inhabitants. Eligible grant projects increase energy efficiency and/or provide or modernize electric generation facilities.§210: Grants to Improve the Commercial Value of Forest Biomass for Electric Energy, Useful Heat, Transportation Fuels, and other Commercial Purposes
This provision contains a "preferred community clause." This provision establishes two grant programs.
Title IX - Research and Development
§922: High Power Density Industry Program
Efforts focused on improving the energy efficiency of facilities such as data centers, server farms and telecommunications facilities.§923: Micro-Cogeneration Energy Technology
This program will provide competitive, merit-based grants to a consortia. The consortia shall explore the use of small-scale combined heat and power in residential heating appliances, the use of excess power to operate other appliances within the residence, and the supply of excess generated power to the power grid. Congress appropriated $20 million per fiscal year through 2008.§924(a): Distributed Energy Technology Demonstration Programs - Coordinating Consortia Program
DOE may provide financial assistance to coordinating consortia of interdisciplinary participants for demonstrations designed to accelerate the use of distributed energy technologies (including combined heat and power) in high-energy intensive commercial applications.§925(a)(7): Electric Transmission and Distribution Programs
A program to ensure reliability, efficiency and environmental integrity of electrical transmission and distribution systems. The program includes studying the integration of power systems such as combined heat and power systems.§932: Bioenergy Program
This program includes biopower energy systems and integrated biorefineries.
§942(c): Production Incentives for Cellulosic Biofuels
Eligible facilities will be awarded incentives on a per gallon basis through reverse auction beginning the first year of annual production in the U.S. of 100,000,000 gallons of cellulosic biofuels or no later than 2008.Title XIII - Energy Policy Tax Incentives
§1301: Extension and Modification of Renewable Electricity Production Credit
The Renewable Electricity Production Credit (REPC) is a per kilowatt-hour tax credit for electricity generated by qualified energy resources. Section 710 of the "American Jobs Creation Act of 2004" (H.R. 4520), expanded REPC to include additional eligible resources -- geothermal energy, open-loop biomass, solar energy, small irrigation power, landfill gas, municipal solid waste combustion, and refined coal -- in addition to the formerly eligible wind energy, closed-loop biomass, and poultry-waste energy resources. The REPC provides a tax credit of 1.5 cents/kWh, adjusted annually for inflation, for wind, closed-loop biomass and geothermal. Currently, the REPC for these technologies is 1.9 cents/kWh. Electricity from open-loop biomass, small irrigation hydroelectric, landfill gas, municipal solid waste resources, and hydropower receive half that rate -- currently 1.0 cent/kWh.
[Read More ]§1303: Clean Renewable Energy Bonds
Created clean renewable energy bonds by adding Section 54 to the tax code. Essentially the owners of the bond receive federal tax credits instead of tax-free interest payments from the bond issuer. The available national allocation for these bonds is $1.2 billion. Bonds may be issued through December 31, 2008. At least 95% of the bond proceeds must be spent on one or more eligible projects within five (5) years of the date of issue.
[Read More ]§1331: Energy Efficient Commercial Buildings Deduction
A corporate deduction for energy efficient commercial buildings applicable to qualifying systems and buildings placed in service from January 1, 2006 through December 31, 2008.A tax deduction of $1.80 per square foot is available to owners of new or existing buildings who install (1) interior lighting; (2) building envelope, or (3) heating, cooling, ventilation, or hot water systems that reduce the building's total energy and power cost by 50% or more in comparison to a building meeting minimum requirements set by ASHRAE Standard 90.1-2001. This includes the installation of combined heat and power systems. Deductions of $0.60 per square foot are available to owners of buildings in which individual lighting, building envelope, or heating and cooling systems meet target levels that would reasonably contribute to an overall building savings of 50% if additional systems were installed. [Read More ]§1336: Credit for Business Installation of Qualified Fuel Cells and Stationary Microturbine Power Plants
A corporate tax credit for equipment placed in service between January 1, 2006 and December 31, 2008. The credit is 30% for fuel cells (with at least 0.5kW capacity) and 10% for microturbines (up to 2MW system capacity). The maximum incentive is $500/0.5kW and $200/kW for fuel cells and microturbines respectively.
[Read More ]The Tax Relief and Health Care Act of 2006 (Public Law 109-432)
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| Page Updated/Reviewed: 08/15/2007 2:52 PM |
Subtitle A - Federal Programs