Although many have grown cynical of the possibility of bipartisan policy agreement in Washington DC these days, it’s refreshing to know that both parties can reach an agreement when dealing with really important issues such as energy. On April 30th 2015, the Energy Efficiency Improvement Act of 2015 (S. 535) was officially signed into law by the president after passing both chambers of Congress.
1). NEW ENERGY OPPORTUNITIES
While seemingly a modest piece of energy legislation, the Energy Efficiency Improvement Act of 2015 could create some new energy opportunities for deploying CHP systems by defining new energy related terms and also by requiring the Department of Energy to conduct a commercial building feasibility analysis.
2). SUBSTANTIALLY REDUCE UTILITY COSTS
This legislation clarifies and defines the term Cost Effective Energy Efficiency Measure to include any building product, material, equipment, or service, and the installing, implementing, or operating thereof, that provides energy savings in an amount that is not less than the cost of such installing, implementing, or operating. Additionally, the Energy Efficiency Improvement Act of 2015 defines the term High-Performance Energy Efficiency Measure as a technology, product, or practice that will result in substantial operational cost savings by reducing energy consumption and utility costs.
Both of these energy terms defined within the Energy Efficiency Improvement Act of 2015 bode very well for the future of CHP technologies as they are designed to both yield a rate of return and substantially reduce utility costs.
3). BOOST COMMERCIAL ENERGY EFFICIENCY
Additionally, the Energy Efficiency Improvement Act of 2015 requires Department of Energy to conduct a feasibility analysis to explore high performance energy efficiency measures in commercial buildings. This feasibility study is required to be completed by the summer of 2016, and must provide models and simulations that predict energy savings and financing payback. CHP systems should fare well when analyzed as high performance energy efficiency measures through this mandated feasibility analysis that the DOE will be conducting, and such a study should prove to be a great reference tool for exploring CHP as tool to boost commercial energy efficiency.
4). THE FUTURE OF CHP
It’s fair to assume that the Energy Efficiency Improvement Act of 2015 is a small step forward for CHP. However, the bipartisanship illustrated by the passage of this bill could be a sign of things to come and ultimately prove to be one giant leap forward for CHP. Additional energy legislation that specifically encourages the expanded use of CHP has been introduced and is now being considered by the Senate Energy and Natural Resources Committee.
We’ll keep you posted on any relevant CHP legislation and report back any updates on the aforementioned feasibility analysis the Department of Energy is being tasked to conduct as a requirement of the Energy Efficiency Improvement Act of 2015.
Click below to download a copy of the Energy Efficiency Improvement Act of 2015, and remember to demand more from your energy supply. Demand CHP.
