1.  ’Qualified energy recovery process’ means a system with a nameplate capacity of not more than 15 megawatts that converts the otherwise lost energy from:

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(a) The heat from exhaust stacks or pipes used for engines or manufacturing or industrial processes; or

(b) The reduction of high pressure in water or gas pipelines before the distribution of the water or gas, to generate electricity if the system does not use additional fossil fuel or require a combustion process to generate such electricity.

2.  The term does not include any system that uses energy, lost or otherwise, from a process whose primary purpose is the generation of electricity, including, without limitation, any process involving engine-driven generation or pumped hydrogeneration.