Local Energy Supply and Resiliency Act of 2013 - Fall

This report evaluates S.1205, the Local Energy Supply and Resiliency Act of 2013, which promotes combined heat and power (CHP) systems and smart microgrids to improve energy efficiency and climate resilience. The bill was inspired by events such as Hurricane Sandy, during which decentralized microgrids—like that powering New York University—remained operational while much of Manhattan lost electricity. The Act proposes a technical assistance program and a loan guarantee mechanism to encourage local energy infrastructure investments that reduce transmission losses, recover waste heat, and enhance grid reliability. CHP systems can achieve efficiency rates exceeding 60–80%, significantly outperforming conventional centralized generation.

The team’s implementation framework addresses staffing, budgeting, organizational design within the Department of Energy, and performance measurement systems. Key metrics include energy efficiency gains, greenhouse gas reductions, avoided outage costs, and job creation. The program emphasizes lean administration and measurable operational indicators to track deployment of resilient energy systems nationwide. The report concludes that S.1205 represents a technologically feasible and economically sound response to increasing climate-related grid disruptions. By integrating financial tools with technical guidance, the Act could catalyze widespread adoption of decentralized energy systems and strengthen national energy security while promoting local economic development.

Learn more about the MPA-ESP Workshop in Applied Earth Systems Management.