Policy Priorities

The Alliance for Industrial Efficiency advocates for state and federal policies that reduce financial and regulatory barriers for CHP and WHP. We work to expand markets for CHP and WHP systems by supporting smart energy legislation and by highlighting the role that CHP and WHP can play in meeting EPA Clean Air Act rules.

Removing Financial Barriers

Combined Heat and Power (CHP) and Waste Heat to Power (WHP) can save a manufacturer money by lowering their energy costs; however, these technologies require significant upfront investments. Congress should support policies that reduce these up-front costs. In particular, the Alliance for Industrial Efficiency supports the following changes to the existing Investment Tax Credit for CHP that would make the credit more usable:

  • Support previously introduced, bipartisan legislation that would allow WHP projects to qualify for the existing 10 percent Investment Tax Credit
  • Increase the capacity limitation of the existing credit to a project’s first 25 Megawatts, rather than the first 15 Megawatts as is currently the case
  • Remove the current 50-Megawatt size limitation
  • Provide a 30 percent Investment Tax Credit for WHP and highly efficient CHP projects.

The 114th Congress has introduced bi-partisan legislation in both the House and the Senate that addresses many of the Alliance’s proposed fixes. The Power Efficiency and Resiliency (POWER) Act would allow CHP and WHP owners to take advantage of the full ITC and extend the credit through December 2018.

Click here for a  factsheet on ways to improve the ITC for CHP and WHP.

Creating Markets


Support the White House Executive Order on Industrial Efficiency

On August 30, 2012, the White House issued an industrial efficiency Executive Order (EO 13624), establishing a national goal of increasing CHP deployment by 50% by the year 2020. Meeting this goal would save energy users $10 billion per year, result in $40 to $80 billion in new capital investment in manufacturing and other facilities that would create American jobs, and would reduce emissions equivalent to taking 25-million cars off the road. The Alliance is working with stakeholders in the states and federal government to help realize this goal.


Executive Order 13624

White House Press Release

Alliance Press Statement on Executive Order 13624


Include CHP and WHP in a Clean Energy Standard

The Alliance for Industrial Efficiency believes that a Clean Energy Standard (CES) can help create a market for Combined Heat and Power and Waste Heat to Power. To do so, we believe:

  • Combined Heat and Power and Waste Heat to Power should be included in any CES.
  • Production and efficiency should compete evenly in any standard.
  • Energy efficiency is a critical component of a CES because it provides the cheapest, cleanest energy source, especially for industrial electricity consumers.


The Alliance highlighted the benefits and opportunities of Combined Heat and Power and Waste Heat to Power in comments sent to members of the Senate Energy and Commerce Committee in May 2011. We continue to work in the states to defend state portfolio standards and to urge the inclusion of CHP and WHP.

Department of Defense Energy Security Act of 2015 Encourages Resiliency through Enhanced CHP Deployment on US Bases 

The Alliance supports sections of Department of Defense Energy Security Act of 2015 (DODESA). Section Eight of DODESA includes provisions that will improve our military’s access to more reliable and cleaner energy. It “establish[es] a program to develop and support projects designed to foster secure and reliable sources of energy for military installations,” with attention paid to waste heat, renewable combined heat and power, and combined heat and power systems.


Department of Defense Energy Security Act of 2015

Alliance Letter in Support of DODESA 2015

EPA’s Clean Air Act Rules

The Environmental Protection Agency (EPA) has said it is committed to using energy efficiency to help reduce emissions. A number of Clean Air Act rulemakings provide a valuable tool for advancing industrial energy efficiency through Combined Heat and Power (CHP) and Waste Heat to Power (WHP). The Alliance for Industrial Efficiency has worked with a broad network of stakeholders from the energy efficiency and environmental community to comment on these rules. EPA rules have traditionally discriminated against CHP and WHP, so the Alliance has urged EPA to provide credit for it under its rules.


Comments by the Alliance in Various EPA Rule Making Proceedings