42 USC 6344 - Additional incentives for recovery, use, and prevention of industrial waste energy

U.S Code last checked for updates: May 17, 2024

§ 6344.

Additional incentives for recovery, use, and prevention of industrial waste energy

(a)

Consideration of standard

(1)

In general

Not later than 180 days after the receipt by a State regulatory authority (with respect to each electric utility for which the authority 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—

(A)

provide public notice and conduct a hearing respecting the standard established by subsection (b); and

(B)

on the basis of the hearing, consider and make a determination whether or not it is appropriate to implement the standard to carry out the purposes of this part.

(2)

Relationship to State law

(3)

Nonadoption of standard

(b)

Standard for sales of excess power

(c)

Options

The options referred to in subsection (b) are as follows:

(1)

Sale of net excess power to utility

(2)

Transport by utility for direct sale to third party

(3)

Transport over private transmission lines

The State and the electric utility shall permit, and shall waive or modify such laws as would otherwise prohibit, the construction and operation of private electric wires constructed, owned, and operated by the project owner or operator, to transport the power to up to 3 purchasers within a 3-mile radius of the project, allowing the wires to use or cross public rights-of-way, without subjecting the project to regulation as a public utility, and according the wires the same treatment for safety, zoning, land use, and other legal privileges as apply or would apply to the wires of the utility, except that—

(A)

there shall be no grant of any power of eminent domain to take or cross private property for the wires; and

(B)

the wires shall be physically segregated and not interconnected with any portion of the system of the utility, except on the customer side of the revenue meter of the utility and in a manner that precludes any possible export of the electricity onto the utility system, or disruption of the system.

(4)

Agreed on alternatives

(d)

Rate conditions and criteria

(1)

Definitions

In this subsection:

(A)

Per unit distribution costs

The term “per unit distribution costs” means (in kilowatt hours) the quotient obtained by dividing—

(i)

the depreciated book-value distribution system costs of a utility; by

(ii)

the volume of utility electricity sales or transmission during the previous year at the distribution level.

(B)

Per unit distribution margin

The term “per unit distribution margin” means—

(i)

in the case of a State-regulated electric utility, a per-unit gross pretax profit equal to the product obtained by multiplying—

(I)

the State-approved percentage rate of return for the utility for distribution system assets; by

(II)

the per unit distribution costs; and

(ii)

in the case of a nonregulated utility, a per unit contribution to net revenues determined multiplying—

(I)

the percentage (but not less than 10 percent) obtained by dividing—

(aa)

the amount of any net revenue payment or contribution to the owners or subscribers of the nonregulated utility during the prior year; by

(bb)

the gross revenues of the utility during the prior year to obtain a percentage; by

(II)

the per unit distribution costs.

(C)

Per unit transmission costs

(2)

Options

(3)

Applicable rates

(A)

Rates applicable to sale of net excess power

(i)

In general

(ii)

Voltages exceeding 25 kilovolts

(B)

Rates applicable to transport by utility for direct sale to third parties

(i)

In general

(ii)

Voltages exceeding 25 kilovolts

(iii)

States with competitive retail markets for electricity

(4)

Limitations

(A)

In general

Any rate established for sale or transportation under this section shall—

(i)

be modified over time with changes in the underlying costs or rates of the electric utility; and

(ii)

reflect the same time-sensitivity and billing periods as are established in the retail sales or transportation rates offered by the utility.

(B)

Limitation

(e)

Procedural requirements for consideration and determination

(1)

Public notice and hearing

(A)

In general

(B)

Administration

The determination referred to in subsection (a) shall be—

(i)

in writing;

(ii)

based on findings included in the determination and on the evidence presented at the hearing; and

(iii)

available to the public.

(2)

Intervention by Administrator

The Administrator may intervene as a matter of right in a proceeding conducted under this section—

(A)

to calculate—

(i)

the energy and emissions likely to be saved by electing to adopt 1 or more of the options; and

(ii)

the costs and benefits to ratepayers and the utility; and

(B)

to advocate for the waste-energy recovery opportunity.

(3)

Procedures

(A)

In general

(B)

Multiple projects

(f)

Implementation

(1)

In general

The State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority) or nonregulated electric utility may, to the extent consistent with otherwise applicable State law—

(A)

implement the standard determined under this section; or

(B)

decline to implement any such standard.

(2)

Nonimplementation of standard

(A)

In general

(B)

Availability to public

(C)

Annual report

(D)

New petition

(Pub. L. 94–163, title III, § 374, as added Pub. L. 110–140, title IV, § 451(a), Dec. 19, 2007, 121 Stat. 1628.)

cite as: 42 USC 6344