definition of “combined heat and power
system” constrains complying CHP systems
to those with a low amount of net sales
of electricity, and the ACELA contains no
definition of CHP systems at all.
The primary criterion should be energy
efficiency, not size or sales. Accordingly,
we recommend using a threshold criterion
for CHP that is the same as we recommend for the cap-and-trade legislation.
Funding Support for District Energy
Senators Bernie Sanders, I-Vt., and
Jeff Merkley, D-Ore., have introduced the
Thermal Energy Efficiency Act (S.1621),
which would dedicate 2 percent of revenues from cap-and-trade legislation in
the form of an allowance set-aside to
fund district energy and CHP systems. As
a result of advocacy of S.1621, the recently
released version of the Senate climate
change bill (the Senate Environment and
Public Works Committee’s “Chairman’s
It’s time IDEA
Mark”) would dedicate 10 percent of State
Energy and Environment Development
program funding from emissions allowance
revenue generated by cap-and-trade legislation in the form of an allowance set-aside to fund district energy and CHP
systems. Based on various estimates, this
could create funding of approximately
$150 million per year for clean energy
infrastructure. IDEA strongly supports
S.1621, and we encourage more extensive
incorporation of its provisions into the
final climate change legislation.
Efficiency and Renewables Programs
Both the House and Senate climate
bills, as well ACELA and other energy policy
legislation, contain numerous provisions
aimed at promoting and creating incentives for energy efficiency activities. Yet, a
large number of those provisions inexplicably omit CHP and district energy systems,
notwithstanding the enormous contribution such facilities can make to energy
savings. IDEA has proposed a series of
amendments to both bills that would
incorporate CHP and district energy systems
into the relevant provisions. If accepted, these
amendments should help ensure that district
energy can continue to make further
contributions to reduce CO2 emissions.
Mark Spurr is legislative
to answer the call.
director of IDEA. He also is
president of FVB Energy Inc.,
a U.S. consulting firm special-
izing in district energy and
CHP business development,
engineering and marketing,
with offices in Minneapolis,
Minn., and Bahrain. In addition, FVB has
offices in Edmonton, Toronto and Vancouver,
Canada; and in Stockholm, Västerås and other
cities in Sweden. Spurr represents the United
States on the executive committee of the
International Energy Agency Implementing
Agreement on District Heating and Cooling,
including Implementation of CHP. He may be
reached at firstname.lastname@example.org.
As you know, district energy is about aggregating thermal loads to
achieve economies of scale. The same applies to fund-raising for lobbying
activities. We need to aggregate the resources of all IDEA members to
achieve the scale needed for an effective lobbying campaign in Washington, D.C.,
and we are asking for your contribution today.
Federal energy and climate change legislation is being written that
will have a profound impact on our industry. IDEA needs dedicated
resources for advocacy efforts to ensure the legislation fairly treats district
energy and CHP.
Our current advocacy efforts on federal climate legislation are focused
on an important emissions allowance exemption for CHP district energy
systems and on the Thermal Energy Efficiency Act, which will direct 10 percent
of State Energy and Environment Development emissions allowance revenue
(approx. $150 million per year) to fund district energy deployment.
If successful, these two measures alone could financially benefit all
IDEA members – from consultants to suppliers to operators. However, we
have now reached a critical juncture making it essential that we garner
additional financial resources to continue advocacy at an effective level.
Please answer the call with a robust pledge. If each IDEA member
does his or her part, we will all be better for it. As Benjamin Franklin said
when signing the Declaration of Independence, “We must all hang together
or most assuredly, we will all hang separately.”
Contact Rob Thornton, IDEA, (508) 366-9339, email@example.com,
to make your pledge today!