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S.1766
Energy Policy Act of 2002 (Placed on Calendar in Senate)
Subtitle C--Amendments to the Public Utility Regulatory Policies Act of
1978
SEC. 241. REAL-TIME PRICING STANDARD.
(a) ADOPTION OF STANDARD- Section 111(d) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the
following:
`(11) REAL-TIME PRICING- (A) Each electric utility shall, at the request
of an electric consumer, provide electric service under a real-time rate
schedule, under which the rate charged by the electric utility varies by the
hour (or smaller time interval) according to changes in the electric
utility's wholesale power cost. The real-time pricing service shall enable
the electric consumer to manage energy use and cost through real-time
metering and communications technology.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each State
regulatory authority shall consider and make a determination concerning
whether it is appropriate to implement the standard set out in subparagraph
(A) not later than one year after the date of enactment of this
paragraph.'.
(b) SPECIAL RULES FOR REAL-TIME PRICING STANDARD- Section 115 of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by
adding at the end the following:
`(i) REAL-TIME PRICING- In a state that permits third-party marketers to
sell electric energy to retail electric consumers, the electric consumer shall
be entitled to receive the same real-time metering and communication service
as a direct retail electric consumer of the electric utility.'.
SEC. 242. ADOPTION OF ADDITIONAL STANDARDS.
(a) ADOPTION OF STANDARDS- Section 113(b) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by adding at the end the
following:
`(6) DISTRIBUTED GENERATION- Each electric utility shall provide
distributed generation, combined heat and power, and district heating and
cooling systems competitive access to the local distribution grid and
competitive pricing of service, and shall use simplified standard contracts
for the interconnection of generating facilities that have a power
production capacity of 250 kilowatts or less.
`(7) DISTRIBUTION INTERCONNECTIONS- No electric utility may refuse to
interconnect a generating facility with the distribution facilities of the
electric utility if the owner or operator of the generating facility
complies with technical standards adopted by the State regulatory authority
and agrees to pay the costs established by such State regulatory
authority.
`(8) MINIMUM FUEL AND TECHNOLOGY DIVERSITY STANDARD- Each electric
utility shall develop a plan to minimize dependence on one fuel source and
to ensure that the electric energy it sells to consumers is generated using
a diverse range of fuels and technologies, including renewable
technologies.
`(9) FOSSIL FUEL EFFICIENCY- Each electric utility shall develop and
implement a ten-year plan to increase the efficiency of its fossil fuel
generation and shall monitor and report to its State regulatory authority
excessive greenhouse gas emissions resulting from the inefficient operation
of its fossil fuel generating plants.'.
(c) TIME FOR ADOPTING STANDARD- Section 113 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by adding
at the end the following:
`(d) SPECIAL RULE- For purposes of implementing paragraphs (6), (7), (8),
and (9) of subsection (b), any reference contained in this section to the date
of enactment of the Public Utility Regulatory Policies Act of 1978 shall be
deemed to be a reference to the date of enactment of this subsection.'.
SEC. 243. TECHNICAL ASSISTANCE.
Section 132(c) of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2642(c)) is amended to read as follows:
`(c) TECHNICAL ASSISTANCE FOR CERTAIN RESPONSIBILITIES- The Secretary may
provide such technical assistance as he determines appropriate to assist State
regulatory authorities and electric utilities in carrying out their
responsibilities under section 111(d)(11) and paragraphs (6), (7), (8), and
(9) of section 113(b).'.
SEC. 244. COGENERATION AND
SMALL POWER PRODUCTION PURCHASE AND SALE REQUIREMENTS.
(a) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS- Section 210
of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a-3) is
amended by adding at the end the following:
`(m) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS-
`(1) IN GENERAL- After the date of enactment of this subsection, no
electric utility shall be required to enter into a new contract or
obligation to purchase or sell electric energy under this section.
`(2) NO EFFECT ON EXISTING RIGHTS AND REMEDIES- Nothing in this
subsection affects the rights or remedies of any party with respect to the
purchase or sale of electric energy or capacity from or to a facility under
this section under any contract or obligation to purchase or to sell
electric energy or capacity on the date of enactment of this subsection,
including--
`(A) the right to recover costs of purchasing such electric energy or
capacity; and
`(B) in States without competition for retail electric supply, the
obligation of a utility to provide, at just and reasonable rates for
consumption by a qualifying small power production facility or a
qualifying cogeneration
facility, backup, standby, and maintenance power.
`(A) REGULATION - To
ensure recovery by an electric utility that purchases electric energy or
capacity from a qualifying facility pursuant to any legally enforceable
obligation entered into or imposed under this section before the date of
enactment of this subsection, of all prudently incurred costs associated
with the purchases, the Commission shall issue and enforce such
regulations as may be required to ensure that the electric utility shall
collect the prudently incurred costs associated with such
purchases.
`(B) ENFORCEMENT- A regulation under subparagraph (A)
shall be enforceable in accordance with the provisions of law applicable
to enforcement of
regulations under the Federal Power Act (16 U.S.C. 791a et seq.).'.
(b) Elimination of Ownership Limitations-
(1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C)) is
amended to read as follows:
`(C) `qualifying small power production facility' means a small power
production facility that the Commission determines, by rule, meets such
requirements (including requirements respecting minimum size, fuel use,
and fuel efficiency) as the Commission may, by rule, prescribe.'.
(2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 796(18)(B)) is
amended to read as follows:
`(B) `qualifying cogeneration facility' means a
cogeneration facility that
the Commission determines, by rule, meets such requirements (including
requirements respecting minimum size, fuel use, and fuel efficiency) as
the Commission may, by rule, prescribe.'.
SEC. 245. NET METERING.
Title VI of the Public Utility Regulatory Policies Act of 1978 is amended
by adding at the end the following:
`SEC. 605. NET METERING FOR RENEWABLE ENERGY AND FUEL CELLS.
`(a) DEFINITIONS- For purposes of this section:
`(1) The term `eligible on-site generating facility' means--
`(A) a facility on the site of a residential electric consumer with a
maximum generating capacity of 10 kilowatts or less that is fueled by
solar energy, wind energy, or fuel cells; or
`(B) a facility on the site of a commercial electric consumer with a
maximum generating capacity of 500 kilowatts or less that is fueled solely
by a renewable energy resource, landfill gas, or a high efficiency
system.
`(2) The term `renewable energy resource' means solar, wind, biomass, or
geothermal energy.
`(3) The term `high efficiency system' means fuel cells or combined heat
and power.
`(4) The term `net metering service' means service to an electric
consumer under which electric energy generated by that electric consumer
from an eligible on-site generating facility and delivered to the local
distribution facilities may be used to offset electric energy provided by
the electric utility to the electric consumer during the applicable billing
period.
`(b) REQUIREMENT TO PROVIDE NET METERING SERVICE- Each electric utility
shall make available upon request net metering service to an electric consumer
that the electric utility serves.
`(1) IDENTICAL CHARGES- An electric utility--
`(A) shall charge the owner or operator of an on-site generating
facility rates and charges that are identical to those that would be
charged other electric consumers of the electric utility in the same rate
class; and
`(B) shall not charge the owner or operator of an on-site generating
facility any additional standby, capacity, interconnection, or other rate
or charge.
`(2) MEASUREMENT- An electric utility that sells electric energy to the
owner or operator of an on-site generating facility shall measure the
quantity of electric energy produced by the on-site facility and the
quantity of electric energy consumed by the owner or operator of an on-site
generating facility during a billing period in accordance with normal
metering practices.
`(3) ELECTRIC ENERGY SUPPLIED EXCEEDING ELECTRIC ENERGY GENERATED- If
the quantity of electric energy sold by the electric utility to an on-site
generating facility exceeds the quantity of electric energy supplied by the
on-site generating facility to the electric utility during the billing
period, the electric utility may bill the owner or operator for the net
quantity of electric energy sold, in accordance with normal metering
practices.
`(4) ELECTRIC ENERGY GENERATED EXCEEDING ELECTRIC ENERGY SUPPLIED- If
the quantity of electric energy supplied by the on-site generating facility
to the electric utility exceeds the quantity of electric energy sold by the
electric utility to the on-site generating facility during the billing
period--
`(A) the electric utility may bill the owner or operator of the
on-site generating facility for the appropriate charges for the billing
period in accordance with paragraph (2); and
`(B) the owner or operator of the on-site generating facility shall be
credited for the excess kilowatt-hours generated during the billing
period, with the kilowatt-hour credit appearing on the bill for the
following billing period.
`(d) Safety and Performance Standards-
`(1) An eligible on-site generating facility and net metering system
used by an electric consumer shall meet all applicable safety, performance,
reliability, and interconnection standards established by the National
Electrical Code, the Institute of Electrical and Electronics Engineers, and
Underwriters Laboratories.
`(2) The Commission, after consultation with State regulatory
authorities and nonregulated electric utilities and after notice and
opportunity for comment, may adopt, by rule, additional control and testing
requirements for on-site generating facilities and net metering systems that
the Commission determines are necessary to protect public safety and system
reliability.
`(e) APPLICATION- This section applies to each electric utility during any
calendar year in which the total sales of electric energy by such utility for
purposes other than resale exceeded 1,000,000,000 kilowatt-hours during the
preceding calendar year. '.
Subtitle D--Consumer Protections
SEC. 251. INFORMATION DISCLOSURE.
(a) OFFERS AND SOLICITATIONS- The Federal Trade Commission shall issue
rules requiring each electric utility that makes an offer to sell electric
energy, or solicits electric consumers to purchase electric energy to provide
the electric consumer a statement containing the following information:
(1) the nature of the service being offered, including information about
interruptibility of service;
(2) the price of the electric energy, including a description of any
variable charges;
(3) a description of all other charges associated with the service being
offered, including access charges, exit charges, back-up service charges,
stranded cost recovery charges, and customer service charges; and
(4) information the Federal Trade Commission determines is
technologically and economically feasible to provide, is of assistance to
electric consumers in making purchasing decisions, and concerns--
(A) the product or its price,
(B) the share of electric energy that is generated by each fuel type;
and
(C) the environmental emissions produced in generating the electric
energy.
(b) PERIODIC BILLINGS- The Federal Trade Commission shall issue rules
requiring any electric utility that sells electric energy to transmit to each
of its electric consumers, in addition to the information transmitted pursuant
to section 115(f) of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2625(f)), a clear and concise statement containing the information
described in subsection (a)(4) for each billing period (unless such
information is not reasonably ascertainable by the electric utility).
SEC. 252. CONSUMER PRIVACY.
(a) PROHIBITION- The Federal Trade Commission shall issue rules
prohibiting any electric utility that obtains consumer information in
connection with the sale or delivery of electric energy to an electric
consumer from using, disclosing, or permitting access to such information
unless the electric consumer to whom such information relates provides prior
written approval.
(b) PERMITTED USE- The rules issued under this section shall not prohibit
any electric utility from using, disclosing, or permitting access to consumer
information referred to in subsection (a) for any of the following
purposes:
(1) to facilitate an electric consumer's change in selection of an
electric utility under procedures approved by the State or State regulatory
authority;
(2) to initiate, render, bill, or collect for the sale or delivery of
electric energy to
electric consumers or for related services;
(3) to protect the rights or property of the person obtaining such
information;
(4) to protect retail electric consumers from fraud, abuse, and unlawful
subscription in the sale or delivery of electric energy to such
consumers;
(5) for law enforcement purposes; or
(6) for purposes of compliance with any Federal, State, or local law or
regulation authorizing
disclosure of information to a Federal, State, or local agency.
(c) AGGREGATE CONSUMER INFORMATION- The rules issued under this subsection
may permit a person to use, disclose, and permit access to aggregate consumer
information and may require an electric utility to make such information
available to other electric utilities upon request and payment of a reasonable
fee.
(d) DEFINITIONS- As used in this section:
(1) The term `aggregate consumer information' means collective data that
relates to a group or category of retail electric consumers, from which
individual consumer identities and characteristics have been removed.
(2) The term `consumer information' means information that relates to
the quantity, technical configuration, type, destination, or amount of use
of electric energy delivered to any retail electric consumer.
SEC. 253. UNFAIR TRADE PRACTICES.
(a) SLAMMING- The Federal Trade Commission shall issue rules prohibiting
the change of selection of an electric utility except with the informed
consent of the electric consumer.
(b) CRAMMING- The Federal Trade Commission shall issue rules prohibiting
the sale of goods and services to an electric consumer unless expressly
authorized by law or the electric consumer.
SEC. 254. APPLICABLE PROCEDURES.
The Federal Trade Commission shall proceed in accordance with section 553
of title 5, United States Code, when prescribing a rule required by this
subtitle.
SEC. 255. FEDERAL TRADE COMMISSION ENFORCEMENT.
Violation of a rule issued under this subtitle shall be treated as a
violation of a rule under section 18 of the Federal Trade Commission Act (15
U.S.C. 57a) respecting unfair or deceptive acts or practices. All functions
and powers of the Federal Trade Commission under such Act are available to the
Federal Trade Commission to enforce compliance with this subtitle
notwithstanding any jurisdictional limits in such Act.
SEC. 256. STATE AUTHORITY.
Nothing in this subtitle shall be construed to preclude a State or State
regulatory authority from prescribing and enforcing additional laws, rules, or
procedures regarding the practices which are the subject of this section, so
long as such laws, rules, or procedures are not inconsistent with the
provisions of this section or with any rule prescribed by the Federal Trade
Commission pursuant to it.
SEC. 257. APPLICATION OF SUBTITLE.
The provisions of this subtitle apply to each electric utility if the
total sales of electric energy by such utility for purposes other than resale
exceed 500 million kilowatt-hours per calendar year. The provisions of this
stubtitle do not apply to the operations of an electric utility to the extent
that such operations relate to sales of electric energy for purposes of
resale.
SEC. 258. DEFINITIONS.
As used in this subtitle:
(1) The term `aggregate consumer information' means collective data that
relates to a group or category of electric consumers, from which individual
consumer identities and identifying characteristics have been removed.
(2) The term `consumer information' means information that relates to
the quantity, technical configuration, type, destination, or amount of use
of electric energy delivered to an electric consumer.
(3) The terms `electric consumer', `electric utility', and `State
regulatory authority' have the meanings given such terms in section 3 of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).
Subtitle E--Renewable Energy and Rural Construction Grants
SEC. 261. RENEWABLE ENERGY PRODUCTION INCENTIVE.
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