; and (4) new advances in intelligent sensing and simulation and control technologies offer the potential to enhance the benefits of clean distributed generation to both the host facility and the electric grid operator from dynamic, adaptive, and anticipatory response to changing grid conditions. 3. Definitions In this Act: (1) Ancillary service The term ancillary service means those services necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system. (2) Clean distributed energy The term clean distributed energy means energy technologies that are located on the customer site operating on the customer side of the electric meter and are interconnected with the electric grid. (3) Combined heat and power technology The term combined heat and power technology means the generation of electric energy and heat in a single, integrated system that meets the efficiency criteria in clauses (ii) and (iii) of section 48(c)(3)(A) of the Internal Revenue Code of 1986, under which heat that is conventionally rejected is recovered and used to meet thermal energy requirements. (4) Energy storage The term energy storage means technologies that store electric energy and are able to discharge on demand to meet customer or grid needs for electric energy. (5) Fuel cell The term fuel cell means a device that produces electric energy directly from a chemical reaction. (6) Grid The term grid means the electric grid that is composed of both distribution and transmission lines, and associated facilities, including substations, sensors, and operational controls. (7) Intelligence The term intelligence means any devices or technologies that manifest adaptive, anticipatory, and dynamic optimization behavior. (8) Qualified waste heat resource (A) In general The term qualified waste heat resource means— (i) exhaust heat or flared gas from any industrial process