Schneider Introduces Clean Energy Bill to Support Converting Waste Heat to Electricity

November 19, 2019
Press Release
Bill would grow jobs and accelerate transition to clean energy economy

Today, Congressman Brad Schneider (D-IL) introduced legislation to support technologies that convert industrial wasted heat to electric power. Expanding the use of waste heat to power technology would reduce emissions, save energy, and grow jobs throughout the country.


H.R. 5155, The Waste Heat to Power Investment Tax Credit Act would provide a 30 percent investment tax credit for waste heat to power technologies that begin construction before January 1, 2024, phasing down the credit to 26 percent and 22 percent in the subsequent two years.


Schneider’s waste heat to power investment tax credit was incorporated into the discussion draft released by Ways and Means Committee Democrats of the Growing Renewable Energy and Efficiency Now (GREEN) Act, a comprehensive package aimed at tackling climate change by using the tax code to extend and expand renewable energy use and reduce greenhouse gas emissions.


“Our industrial facilities routinely generate an enormous amount of heat, and at most sites around the country, that is wasted potential,” said Schneider. “Technology now allows us to capture this wasted heat and convert it to electricity, which reduces emissions and grows manufacturing employment. Addressing climate change requires an across the board effort, and supporting deployment of waste heat to power technologies is an important piece of our transition to a clean energy economy. I am proud to introduce the Waste Heat to Power Investment Tax Credit Act to help more businesses take advantage of this energy efficient technology.”


The Department of Energy estimates there is nearly 15 GW of untapped waste heat to power potential across the country – nearly 20 times the currently installed capacity. This potential is in industries including: petroleum refining, chemicals, metals, cement, lime, fabricated metals, paper, wood products, food, printing and general manufacturing.


The Waste Heat to Power Investment Tax Credit is supported by a range of energy and labor stakeholders, including the Alliance for Industrial Efficiency, Heat is Power Association, Clean Energy Business Network, the Midwest Cogeneration Association, and the Sheet Metal and Air Conditioning Contractors National Association.


“The Combined Heat and Power Alliance applauds Representative Schneider for championing the Waste Heat to Power Investment Tax Credit Act. Congress has provided tax credits for other zero-emission technologies but previously failed to ensure that waste heat to power (WHP) qualified for the Section 48 investment tax credit, even though it is an innovative zero-emission energy resource. We encourage Congress to recognize WHP’s benefits to American manufacturers by promoting parity in the tax code.”

David Gardiner, Executive Director, Combined Heat and Power Alliance


“The Sheet Metal and Air Conditioning Contractors National Association (SMACNA) features many highly-skilled construction contractors specializing in waste heat to power (WHP) completing industrial, commercial and public sector projects throughout the nation for more than a decade. Not only have these waste heat to power (WHP) projects boosted high skill construction employment, they have vastly improved a diverse collection of industrial facilities involving steel mills, paper plants, refineries, chemical plants, oil and gas pipelines, and general manufacturing but also university, commercial and entertainment facilities. WHP projects resulting from the Waste Heat to Power Investment Tax Credit Act will help make our nation and our manufacturing sector far more energy efficient, productive, and operationally efficient while boosting energy grid reliability.”

- Stanley Kolbe, Director of Government and Political Affairs, The Sheet Metal and Air Conditioning Contractors National Association (SMACNA)


“Despite the fact that waste heat to power (WHP) is a readily available, clean, and reliable domestic energy resource that could be fueling American businesses and saving them money, the conversion of waste heat to electricity is at a competitive disadvantage because it does not currently qualify for a Section 48 investment tax credit (ITC). The Midwest Cogeneration Association strongly supports the Waste Heat to Power Investment Tax Credit Act, which would provide tax parity for WHP.”

Patricia Sharkey, Policy Director, Midwest Cogeneration Association


“The Clean Energy Business Network serves more than 3,000 small business leaders across the United States working across the spectrum of clean energy technologies, including energy efficiency, natural gas, renewable energy, advanced transportation, and storage. We have seen that federal tax policies have been an important driver across all energy industries to allow more projects to move forward, drive down costs for consumers, promote investment, and create jobs. The Waste Heat to Power Investment Tax Credit Act would promote greater parity in the tax code for an underutilized clean energy technology, and the growth of new industries and jobs across the U.S.”

Lynn Abramson, President, Clean Energy Business Network


“The United States has 15 gigawatts of untapped WHP potential across a range of industries: petrochemicals, metals, minerals, paper, wood, and general manufacturing. Deploying this resource could create more than 160,000 new jobs. Cost savings from WHP would also enable manufacturers to lower their overhead costs, invest in additional good-paying jobs, and boost the competitiveness of the American manufacturing sector on the international market. WHP also provides a distributed source of electricity that can improve reliability onsite and strengthen the overall resilience of the grid. Thank you to Representative Schneider for sponsoring the Waste Heat to Power Investment Tax Credit and working to spur deployment of this clean and reliable energy source.”

John Prunkl, Chairman of the Board, Heat is Power Association


Original co-sponsors on the House bill are Reps. Beyer, Beyer, Blumenauer, Danny Davis, Moore, Panetta, Sanchez, Suozzi. Sens. Carper and Cardin have introduced companion legislation in the U.S. Senate.


A letter of support signed by businesses and organizations working in industrial energy efficiency is available online.