Cogeneration and Small Power Production Deregulation Act of 1981

[AI summary unavailable — showing source text] Cogeneration and Small Power Production Deregulation Act of 1981 - Amends the Federal Power Act to raise the power production ceiling from 80 to 165 megawatts for small power production facilities and to eliminate utility ownership limitations on qualifying small power production facilities and cogeneration facilities. Amends the Public Utility Regulatory Policies Act of 1978 to exempt non-utility owned qualifying cogeneration facilities and small power production facilities from the Federal Power Act, the Public Utility Holding Company Act, and the Powerplant and Industrial Fuel Use Act of 1978 and from State laws with respect to the rates or financial or organizational regulation of electric utilities. Exempts utility-owned qualifying cogeneration and small power production facilities from such laws only if the Federal Power Commission determines that such exemption will encourage cogeneration and small power production without undue anticompetitive effects. Amends the Powerplant and Industrial Fuel Act of 1978 to exclude facilities which produce mechanical energy and any other energy used for industrial, commercial, or space heating purposes from classification as major fuel-bur…