HR 1828 IH
106th CONGRESS
1st Session
H. R. 1828
To provide for a more competitive electric power industry, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 17, 1999
Mr. BLILEY (for himself and Mr. DINGELL) (both by request) introduced the
following bill; which was referred to the Committee on Commerce, and in addition
to the Committees on Resources, Agriculture, Transportation and Infrastructure,
and the Judiciary, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdiction
of the committee concerned
A BILL
To provide for a more competitive electric power industry, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Comprehensive Electricity Competition
Act'.
SEC. 2. TABLE OF CONTENTS.
Sec. 2. Table of contents.
TITLE I--RETAIL ELECTRIC SERVICE
Sec. 101. Retail competition.
Sec. 102. Authority to impose reciprocity requirements.
Sec. 103. Aggregation for purchase of retail electric energy.
TITLE II--CONSUMER PROTECTION
Sec. 201. Consumer information.
Sec. 202. Access to electric service for low-income consumers.
Sec. 203. Unfair trade practices.
Sec. 204. Residential electricity consumer database.
Sec. 205. Model retail supplier code.
Sec. 206. Model electric utility worker code.
TITLE III--FACILITATING STATE AND REGIONAL REGULATION
Sec. 301. Clarification of State and Federal authority over retail
transmission services.
Sec. 302. Interstate compacts on regional transmission planning.
Sec. 303. Backup authority to impose a charge on an ultimate consumer's
receipt of electric energy.
Sec. 304. Authority to establish and require independent regional system
operation.
TITLE IV--PUBLIC BENEFITS
Sec. 401. Public benefits fund.
Sec. 402. Federal renewable portfolio standard.
Sec. 404. Reform of section 210 of PURPA.
Sec. 405. Interconnections for certain facilities.
Sec. 406. Rural and remote communities electrification grants.
Sec. 407. Indian tribe assistance.
Sec. 408. Office of Indian Energy Policy and Programs.
Sec. 409. Southeast Alaska electrical power.
TITLE V--REGULATION OF MERGERS AND CORPORATE STRUCTURE
Sec. 501. Reform of holding company regulation under PUHCA.
Sec. 502. Electric company mergers.
Sec. 503. Remedial measures for market power.
TITLE VI--ELECTRIC RELIABILITY
Sec. 601. Electric reliability organization and oversight.
Sec. 602. Electricity outage investigation.
Sec. 603. Additional transmission capacity.
TITLE VII--ENVIRONMENTAL PROTECTION
Sec. 701. Nitrogen oxides cap and trade program.
TITLE VIII--FEDERAL POWER SYSTEMS
Subtitle A--Tennessee Valley Authority
Sec. 802. Application of Federal Power Act.
Sec. 803. Antitrust coverage.
Sec. 804. TVA power sales.
Sec. 805. Renegotiation of long-term power contracts.
Sec. 806. Stranded cost recovery.
Sec. 807. Conforming amendments.
Subtitle B--Bonneville Power Administration
Sec. 812. Application of Federal Power Act.
Sec. 813. Surcharge on transmission rates to recover otherwise
non-recoverable costs.
Sec. 815. Review of commission orders.
Sec. 816. Conforming amendments.
Subtitle C--Western Area Power Administration and Southwestern Power
Administration
Sec. 822. Application of Federal Power Act.
Sec. 823. Surcharge on transmission rates to recover otherwise
non-recoverable costs.
Sec. 824. Conforming amendments.
TITLE IX--OTHER PROVISIONS
Sec. 901. Treatment of nuclear decommissioning costs in
bankruptcy.
Sec. 902. Energy Information Administration study of impacts of
competition in electricity markets.
Sec. 903. Antitrust savings clause.
Sec. 904. Elimination of antitrust review by the Nuclear Regulatory
Commission.
Sec. 905. Environmental laws savings clause.
Sec. 906. Generating plant efficiency study.
Sec. 907. Conforming amendments.
TITLE I--RETAIL ELECTRIC SERVICE
SEC. 101. RETAIL COMPETITION.
(a) RETAIL COMPETITION- The Public Utility Regulatory Policies Act of 1978
(referred to in this Act as PURPA) is amended by adding after section 608 the
following new section:
`SEC. 609. RETAIL COMPETITION.
`(a) DEFINITIONS- For purposes of this section, `retail stranded costs'
means the amount of net costs incurred or obligations undertaken before the
date of enactment of the Comprehensive Electricity Competition Act by a
distribution utility that--
`(1) were incurred or undertaken by that distribution utility in order
to comply with a legal obligation on that utility to provide electricity to
electric consumers in its service territory, and
`(2) cannot be recovered because of implementation of retail competition
under subsection (b).
`(b) RETAIL COMPETITION REQUIREMENT- Except as provided in subsection (c),
not later than January 1, 2003, any distribution utility that has the
capability to deliver electric energy to an electric consumer over its
facilities shall offer open access to those facilities for the sale of
electric energy to the consumer and shall do so at rates, terms, and
conditions that are not unduly discriminatory or preferential, as determined
by the appropriate regulatory authority.
`(c) OPT OUT- (1) A State regulatory authority (with respect to a
distribution utility for which it has ratemaking authority) may direct a
distribution utility not to implement the retail competition requirement
described in subsection (b) if the State regulatory authority finds, after
notice and opportunity for hearing, that implementation of the retail
competition requirement by the distribution utility will have a negative
impact on a class of customers of that utility that cannot be mitigated.
`(2) A nonregulated distribution utility may determine not to implement
the retail competition requirement described in subsection (b) if it finds,
after notice and opportunity for hearing, that implementation of the retail
competition requirement by the distribution utility will have a negative
impact on a class of customers of that utility that cannot be mitigated.
`(3) The State regulatory authority (with respect to a distribution
utility for which it has ratemaking authority) or nonregulated distribution
utility shall publish the determination and its basis and shall file a notice
with the Commission of its determination by January 1, 2002.
`(d) NOTICE OF RETAIL COMPETITION- A State regulatory authority (with
respect to a distribution utility for which it has ratemaking authority) or
nonregulated distribution utility shall file with the Commission a notice that
the distribution utility has implemented or will implement retail competition
consistent with subsection (b). The notice shall describe the implementation
of retail competition. The notice is effective for purposes of section 118,
119, 119A, and 119B of this Act and sections 212(h), 216, and 217 of the
Federal Power Act on the date the notice is filed or the date of
implementation of retail competition consistent with subsection (b), whichever
is later.
`(e) CONSIDERATION OF RECOVERY OF RETAIL STRANDED COSTS- (1) If a State
regulatory authority or nonregulated distribution utility conducts a public
proceeding before a distribution utility implements retail competition as
required under subsection (b), as part of this proceeding, the State
regulatory authority or nonregulated distribution utility shall consider the
appropriate mechanism to address recovery by a distribution utility for which
it has ratemaking authority of retail stranded costs that are legitimate,
prudent, and verifiable, if the utility has taken all reasonable steps to
mitigate the costs, including assistance for workers who are employed or were
most recently employed by an electric utility and who may become or have
become unemployed as a result of the implementation of retail competition. A
charge imposed for purposes of recovering retail stranded costs or providing
assistance for unemployed workers should be imposed in a manner so as to
minimize to the fullest extent possible any effect on an electric consumer's
choice among competing suppliers or products.
`(2) If a State regulatory authority or nonregulated utility imposes or
allows a charge to recover retail stranded costs under paragraph (1), it shall
consider reducing the charge on an electric consumer who uses electric energy
produced on-site when the charge results from the use of new on-site
generation produced by--
`(B) a facility with an efficiency rate of at least 50 percent,
`(C) a facility that uses a single fuel source to produce at the point
of use either electric or mechanical power and thermal energy and that has a
combined efficiency rate of at least 50 percent, or
`(D) a renewable resource.
`(f) ENFORCEMENT- Any person may bring an action in the appropriate State
court against a State regulatory authority, a distribution utility, or a
nonregulated distribution utility for failure to comply with this section.
Filing an action challenging whether retail competition is being implemented
consistent with subsection (b) makes a notice of retail competition
ineffective for purposes of section 118, 119, 119A, and 199B of this Act and
sections 212(h), 216, and 217 of the Federal Power Act until final resolution
of the action. Notwithstanding any other law, a court created under Article
III of the Constitution does not have jurisdiction over an action arising
under this section.'.
(b) DEFINITIONS- Section 3 of PURPA is amended by adding after paragraph
(21) the following new paragraphs:
`(22) The term `notice of retail competition' means a notice filed under
section 609(d).
`(23) The term `distribution utility' means a person, State agency, or
any other non-federal entity that owns or operates a local distribution
facility used for the sale of electric energy to an electric consumer.
`(24) The term `nonregulated distribution utility' means a distribution
utility not subject to the ratemaking authority of a State regulatory
authority.'
SEC. 102. AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.
PURPA is amended by adding the following new section after section 117:
`SEC. 118. AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.
`(a) STATE REGULATORY AUTHORITY- If a State regulatory authority files a
notice of retail
competition with respect to a distribution utility, beginning on the
effective date of the notice, the State regulatory authority may prohibit any
other distribution utility located in the United States over which it does not
have ratemaking authority (and any affiliate of such a utility, as defined under
the Public Utility Holding Company Act of 1999) from selling electric energy to
electric consumers of a distribution facility covered by the notice of retail
competition, unless a notice of retail competition has been filed with respect
to the other distribution utility.
`(b) NONREGULATED DISTRIBUTION UTILITY- If a nonregulated distribution
utility files a notice of retail competition, beginning on the effective date
of the notice, it may prohibit any other distribution utility located in the
United States (and any affiliate of such a utility, as defined under the
Public Utility Holding Company Act of 1999) from selling electric energy to
electric consumers of the nonregulated distribution utility covered by the
notice unless a notice of retail competition has been filed with respect to
the other distribution utility.'.
SEC. 103. AGGREGATION FOR PURCHASE OF RETAIL ELECTRIC ENERGY.
PURPA is amended by adding the following new section after section 118 as
added by section 102 of this Act:
`SEC. 119. AGGREGATION FOR PURCHASE OF RETAIL ELECTRIC ENERGY.
`Notwithstanding any other provision of Federal or State law, and subject
to legitimate and nondiscriminatory State requirements imposed on retail
electric suppliers, a group of customers or any entity acting on behalf of
such group may acquire retail electric energy on an aggregate basis if the
group of customers is served by one or more distribution utilities for which a
State regulatory authority or nonregulated distribution utility has filed a
notice of retail competition under section 609 of this Act for each
distribution utility.'.
TITLE II--CONSUMER PROTECTION
SEC. 201. CONSUMER INFORMATION.
PURPA is amended by adding the following new section after section 119 as
added by section 103 of this Act:
`SEC. 119A. CONSUMER INFORMATION DISCLOSURE.
`(a) DISCLOSURE RULES- Not later than six months after the date of
enactment of this Act, the Secretary, in consultation with the Commission, the
Administrator of the Environmental Protection Agency, and the Federal Trade
Commission, shall issue rules prescribing the form, content, placement, and
timing of the supplier disclosure required under subsections (b) and (c) of
this section. The rules shall be prescribed in accordance with section 553 of
title 5, United States Code.
`(b) DISCLOSURE TO ELECTRIC CONSUMERS- An electric utility that offers to
sell electric energy to an electric consumer shall provide the electric
consumer, to the extent practicable and in accordance with rules issued under
subsection (a), a statement containing the following information:
`(1) The nature of the service being offered, including information
about interruptibility or curtailment 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, but not limited to, access charges, exit charges,
back-up service charges, stranded cost recovery charges, and customer
service charges;
`(4) Information concerning the type of energy resource used to generate
the electric energy and the environmental attributes of the generation
(including air emissions characteristics); and
`(5) Any other information the Secretary determines can be provided
feasibly and would be useful to consumers in making purchasing
decisions.
`(c) DISCLOSURE TO WHOLESALE CUSTOMERS- In every sale of electric energy
for resale, the seller shall provide to the purchaser the information
respecting the type of energy resource used to generate the electric energy
and the environmental attributes of the generation required by rules
established under subsection (a).
`(d) FEDERAL TRADE COMMISSION ENFORCEMENT- A violation of a rule
prescribed under this section shall constitute an unfair or deceptive act or
practice in violation of section 5 of the Federal Trade Commission Act (15
U.S.C. 45) and shall be treated as a violation of a rule under section 18 of
the Federal Trade Commission Act (15 U.S.C. 57a). All functions and powers of
the Federal Trade Commission under the Federal Trade Commission Act are
available to enforce compliance with this section notwithstanding
jurisdictional limitations in the Federal Trade Commission Act.
`(e) AUTHORITY TO OBTAIN INFORMATION- Authority to obtain information
under section 11 of the Energy Supply and Environmental Coordination Act of
1974 (15 U.S.C. 796) is available to the Secretary to administer this section
and to the Federal Trade Commission to enforce this section. In order to carry
out its duties under this section, the Federal Trade Commission may use any of
its powers under sections 3, 6, 9, and 20 of the Federal Trade Commission Act
(15 U.S.C. 43, 46, 49, and 57b-2) without regard to the limitations contained
in section 20(b) of that Act (15 U.S.C. 57b-2(b)) or any jurisdictional
limitations contained in that Act.
`(f) ENFORCEMENT BY STATES- (1) When a State determines that the interests
of its residents have been or are being threatened or adversely affected
because any person is violating or has violated a rule of the Secretary under
this section, the State may bring a civil action on behalf of its residents in
an appropriate district court of the United States to--
`(A) enjoin the violation;
`(B) enforce compliance with the rule of the Secretary;
`(C) obtain damages, restitution, or other compensation on behalf of its
residents; or
`(D) obtain other relief the court considers appropriate.
`(2) The State shall serve prior written notice of any civil action under
this subsection upon the Federal Trade Commission and provide the Federal
Trade Commission with a copy of its complaint, except that if it is not
feasible for the State to provide this prior notice, the State shall serve the
notice immediately upon instituting the action. Upon receiving a notice
respecting a civil action, the Federal Trade Commission may--
`(A) intervene in the action, and
`(B) upon so intervening, be heard on all matters arising in the action
and file petition for appeal.
`(3) For purposes of bringing any civil action under this subsection, this
section does not prevent a State official from exercising the powers conferred
by State law to conduct investigations, administer oaths or affirmations, or
compel the attendance of witnesses or the production of documentary and other
evidence.
`(4) While a civil action instituted by or on behalf of the Federal Trade
Commission for violation of any rule prescribed under this subsection is
pending, a State may not institute a civil action under this section against a
defendant named in the complaint in the pending action for a violation alleged
in the complaint.
`(5) A civil action brought under this subsection may be brought in the
district in which the defendant is found, is an inhabitant, or transacts
business or wherever venue is proper under section 1391 of title 28, United
States Code. Process in such an action may be served in any district in which
the defendant is an inhabitant or in which the defendant may be found.
`(6) This section does not prohibit a State from proceeding in State court
on the basis of an alleged violation of a State or criminal statute.'.
SEC. 202. ACCESS TO ELECTRIC SERVICE FOR LOW-INCOME CONSUMERS.
PURPA is amended by adding the following new section after section 119A as
added by section 201 of this Act.
`SEC. 119B. ACCESS TO ELECTRIC SERVICE FOR LOW-INCOME CONSUMERS.
`(a) DEFINITIONS- For purposes of this section `low-income residential
consumer' is a household, as defined in section 2603(4) of the Low-Income
Energy Assistance Act of 1981 (42 U.S.C. 8622(4)), with an annual income
that--
`(1) does not exceed 60 percent of the State median income, as defined
in section 2603(9) of the Low-Income Home Energy Assistance Act of 1981 (42
U.S.C. 8622(9)), of the State where the household is located, or
`(2) meets the eligibility criteria for a low-income energy program
operated by the State where the household is located.
`(b) APPLICABILITY- Each State regulatory authority and nonregulated
distribution utility that files a notice of retail competition under section
609 of this Act shall conduct a proceeding to determine whether to apply the
principles of subsection (c).
`(c) PRINCIPLES- The following are principles for providing electric
service to low-income residential consumers:
`(1) A State regulatory authority or nonregulated distribution utility
shall assure that its low-income residential consumers obtain benefits from
retail competition comparable to its other residential consumers.
`(2) As a condition of offering retail service to residential consumers
in a State, a retail electric supplier shall agree to--
`(A) offer, promote, and provide, upon request, retail electric
service to a low-income residential consumer on rates, terms, and
conditions comparable to those offered to other residential consumers
located in the same area where the low-income residential consumer is
located, and
`(B) share equitably with other retail electric suppliers in the State
any costs necessary to provide service to low-income residential consumers
under subparagraph (A).'.
SEC. 203. UNFAIR TRADE PRACTICES.
The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended by
inserting the following new section after section 5:
`SEC. 5A. ELECTRICITY SUPPLY UNFAIR TRADE PRACTICES.
`(a) DEFINITION- For purposes of this section, `retail electric supplier'
has the meaning given that term in section 3(25) of the Public Utility
Regulatory Policies Act of 1978.
`(b) SLAMMING- (1) The Federal Trade Commission shall establish rules in
accordance with section 553 of title 5, United States Code for the submittal
and verification of a retail electric customer's selection or change in
selection of a retail electric supplier and for the assessment of penalties
for violation of these rules. These rules shall ensure that the customer
receives electric service from the retail electric supplier of the customer's
choice.
`(2) A person shall not submit or change the selection made by a retail
electric customer except in accordance with procedures established in
paragraph (1).
`(c) CRAMMING- (1) The Federal Trade Commission shall establish rules in
accordance with section 553 of title 5, United States Code for obtaining the
consent of a retail electric customer for purchase of goods and services other
than those expressly authorized by law or by the customer's electricity supply
and metering agreement and for the assessment of penalties for violation of
these rules.
`(2) A person shall not charge a retail electric customer for a particular
service except in accordance with procedures established in paragraph (1).
`(d) FEDERAL TRADE COMMISSION ENFORCEMENT- Violation of this section or of
a rule prescribed under this section constitutes an unfair and deceptive act
or practice in violation of section 5 of this Act and shall be treated as a
violation of a rule under section 18 of this Act. All functions and powers of
the Federal Trade Commission under this Act are available to the Federal Trade
Commission to enforce compliance with this section notwithstanding any
jurisdictional limitations in this Act.
`(e) STATE PROCEEDINGS AND OTHER REMEDIES- (1) This section does not
preclude a State or State commission from prescribing and enforcing additional
laws, regulations, or procedures regarding the practices which are the subject
of this section, so long as such laws, regulations or procedures do not
conflict with the provisions of this section or with any rule prescribed by
the FTC pursuant to it.
`(2) The remedies provided by this section are in addition to any other
remedies available by law.'.
SEC. 204. RESIDENTIAL ELECTRICITY CONSUMER DATABASE.
PURPA is amended by adding the following new section after section 119B as
added by section 202 of this Act:
`SEC. 119C. RESIDENTIAL ELECTRICITY CONSUMER DATABASE.
`(a) DATABASE- The Secretary is authorized to compile a database to
provide residential electric consumers with information to compare the offers
of various retail electric suppliers.
`(b) INFORMATION- A retail electric supplier who provides electric
consumers with information under section 119A shall provide the Secretary the
same information and any other
information the Secretary considers appropriate for purposes of this section.
`(c) CONTENT- The database under this program shall--
`(1) compare the rates, terms, and conditions of the service offered by
the various retail electric suppliers based on the information provided
under subsection (b);
`(2) disseminate the comparison to consumers through various
communications channels, including the Internet; and
`(3) provide other information the Secretary considers appropriate to
carry out the purposes of this section.'.
SEC. 205. MODEL RETAIL SUPPLIER CODE.
PURPA is amended by adding the following new section after section 119C as
added by section 204 of this Act:
`SEC. 119D. MODEL CODE FOR RETAIL SUPPLIERS.
`The Secretary shall develop by rule and circulate among the States for
their consideration a model code for the regulation of retail electric
suppliers for the protection of electric consumers.'.
SEC. 206. MODEL ELECTRIC UTILITY WORKER CODE.
PURPA is amended by adding the following new section after section 119D as
added by section 205 of this Act:
`SEC. 119E. MODEL CODE FOR ELECTRIC UTILITY WORKERS.
`(a) The Secretary shall develop by rule and circulate among the States
for their consideration a model code containing standards for electric
facility workers to ensure electric facility safety and reliability. The
Secretary, in developing these standards, shall consult with all interested
parties, including representatives of electric facility workers.
`(b) In issuing a model code under this section, the Secretary shall not,
for purposes of section 653 of title 29, be deemed to be exercising statutory
authority to prescribe or enforce standards or regulations affecting
occupational safety and health.'.
TITLE III--FACILITATING STATE AND REGIONAL REGULATION
SEC. 301. CLARIFICATION OF STATE AND FEDERAL AUTHORITY OVER RETAIL
TRANSMISSION SERVICES.
(a) NONPREEMPTION OF STATE AND NONREGULATED UTILITY AUTHORITY TO ORDER
RETAIL WHEELING AND TO IMPOSE LOCAL DELIVERY CHARGES- Section 201(b) of the
Federal Power Act (referred to in this Act as `the FPA') is amended by adding
the following new paragraph after paragraph (2):
`(3) This Act does not preempt or otherwise affect any authority under the
law of a State or municipality to--
`(A) require unbundled transmission and local distribution services for
the delivery of electric energy directly to an ultimate consumer, but if
unbundled transmission is in interstate commerce, the rates, terms, and
conditions of the transmission are subject to the exclusive jurisdiction of
the Commission under this Part, or
`(B) impose a delivery charge on an ultimate consumer's receipt of
electric energy.'.
(b) OPEN ACCESS TRANSMISSION AUTHORITY; RETAIL WHEELING IN RETAIL
COMPETITION STATES-
(1) APPLICABILITY OF OPEN ACCESS TRANSMISSION RULES- Section 206 of the
FPA is amended by adding the following new subsection after subsection
(d):
`(e) OPEN ACCESS TRANSMISSION SERVICES- (1) Under section 205 and this
section, the Commission may require, by rule or order, public utilities to
provide open access transmission services, subject to section 212(h), and may
authorize recovery of stranded costs, as defined by the Commission, arising
from any requirement to provide open access transmission services. This
section applies to any rule or order issued by the Commission before the date
of enactment of the Comprehensive Electricity Competition Act.'.
(2) AUTHORITY TO ORDER RETAIL WHEELING- Section 212(h) of the FPA is
amended--
(A) by inserting `(1)' before `No';
(B) by striking `(1)', `(2)', `(A)', and `(B)' and inserting in their
places `(A)', `(B)', `(i)', and `(ii)' respectively;
(C) by striking from redesignated paragraph (1)(B)(ii) `the date of
enactment of this subsection' and inserting `October 24, 1992,' in its
place; and
(D) by adding at the end a new paragraph as follows:
`(2) Notwithstanding paragraph (1), the Commission may issue an order
that requires the transmission of electric energy directly or indirectly to
an ultimate consumer if a notice of retail competition under section 609 of
the Public Utility Regulatory Policies Act of 1978 has been filed and is in
effect with respect to the ultimate consumer's distribution utility or if a
distribution utility offers open access to its delivery facilities to the
ultimate consumer.'.
(3) Conforming amendments-
(A) Section 3(23) of the FPA is amended to read as follows:
`(23) `transmitting utility' means any entity that owns, controls, or
operates electric power transmission facilities that are used for the sale
of electric energy in the 48 contiguous States and the District of Columbia,
notwithstanding section 201(f) of this Act;'.
(B) Section 3(24) of the FPA is amended to read as follows:
`(24) `transmission services' means the transmission of electric energy
sold or to be sold;'.
(C) Section 211(a) of the FPA is amended by striking `for
resale'.
(D) Section 212(a) of the FPA is amended by striking `wholesale' each
time it appears, except the last time.
(c) APPLICABILITY OF COMMISSION JURISDICTION TO TRANSMITTING UTILITIES-
Section 206(e) of the FPA as added by subsection (b)(1) of this section is
amended by adding the following new paragraphs after paragraph (1):
`(2)(A) The Commission has jurisdiction over the rates, terms, and
conditions for transmission services provided by a transmitting utility that
is not a public utility or covered by section 201A, subject to section 212(h),
and may authorize recovery of stranded costs, as defined by the Commission, by
such transmitting utility. The Commission may require, by rule or order, a
transmitting utility that is not a public utility or covered by section 201A
to provide open access transmission services, subject to section 212(h).
`(B) In exercising its authority under this Act, the Commission--
`(i) shall take into account the different structural and operating
characteristics of transmitting utilities, including the multi-tier
structure and the not-for-profit operations of electric cooperatives;
`(ii) with respect to any transmitting utility that has outstanding
loans made or guaranteed by the Rural Utilities Service, shall take into
account the policies of the Department of Agriculture in implementing the
Rural Electrification Act of 1936 and shall assure, to the extent
practicable, that the utility will be able to meet any loan obligations
under that Act; and
`(iii) shall not approve rates, terms, or conditions the Commission
determines would have the effect of jeopardizing the tax exempt status of
nonprofit electric cooperatives under the Internal Revenue Code of
1986.
`(C) Notwithstanding any other law, section 205, this section, and part
III apply to a transmitting utility that is not a public utility or covered by
section 201A for purposes of this section.
`(3) Any electric utility that owns, directly or indirectly, generation
facilities financed in whole or in part with outstanding loans made or
guaranteed by the Rural Utilities Service may apply to the Commission to
impose a charge for the recovery of stranded costs as defined by the
Commission. If the Commission determines that the proposed charge is just,
reasonable, and not unduly discriminatory or preferential, the Commission may
issue an order providing for the imposition of the charge on transmission
service by the applicant or by another transmitting utility or on any electric
utility or transaction subject to the Commission's jurisdiction.'.
(d) NOTICE TO AND INTERVENTION OF SECRETARY OF AGRICULTURE IN FERC
PROCEEDINGS- The FPA is amended by adding after section 218, as added by
section 601 of this Act, the following new section:
`NOTICE TO AND INTERVENTION OF SECRETARY OF AGRICULTURE IN COMMISSION
PROCEEDINGS
`SEC. 219. Any person filing a complaint or petition for rulemaking under
part II of the FPA that directly affects an electric utility with loans made
or guaranteed under the Rural Electrification Act of 1936 shall provide notice
of such complaint or petition to the Secretary of Agriculture. The Secretary
of Agriculture may as a matter of right intervene or otherwise participate in
any proceeding before the Commission that directly affects an electric utility
with loans made or guaranteed under the Rural Electrification Act of 1936. The
Secretary of Agriculture shall comply with rules of procedure of general
applicability governing the timing of intervention or participation in such
proceeding or activity and, upon intervening or participating therein, shall
comply with rules of procedure of general applicability governing the conduct
thereof.'.
SEC. 302. INTERSTATE COMPACTS ON REGIONAL TRANSMISSION PLANNING.
The FPA is amended by adding after section 214 the following new
section:
`INTERSTATE COMPACTS ON REGIONAL TRANSMISSION PLANNING
`SEC. 215. (a) The consent of Congress is given for an agreement to
establish a regional transmission planning agency, if the Commission
determines that the agreement would--
`(1) facilitate coordination among the States within a particular region
with regard to the planning of future transmission, generation, and
distribution facilities,
`(2) carry out State electric facility siting responsibilities more
effectively,
`(3) meet the other requirements of this section and rules prescribed by
the Commission under this section, and
`(4) otherwise be consistent with the public interest.
`(b)(1) If the Commission determines that an agreement meets the
requirements of subsection (a), the agency established under the agreement has
the authority necessary or appropriate to carry out the agreement. This
authority includes authority with respect to matters otherwise within the
jurisdiction of the Commission, if expressly provided for in the agreement and
approved by the Commission.
`(2) The Commission's determination under this section may be subject to
any terms or conditions the Commission determines are necessary to ensure that
the agreement is in the public interest.
`(c)(1) The Commission shall prescribe--
`(A) criteria for determining whether a regional transmission planning
agreement meets subsection (a), and
`(B) standards for the administration of a regional transmission
planning agency established under the agreement.
`(2) The criteria shall provide that, in order to meet subsection (a)--
`(A) a regional transmission planning agency must operate within a
region that includes all tribal governments and all or part of each State
that is a party to the agreement,
`(B) a regional transmission planning agency must be composed of one or
more members from each State and tribal government that is a party to the
agreement,
`(C) each participating State and tribal government must vest in the
regional transmission planning agency the authority necessary to carry out
the agreement and this section, and
`(D) the agency must follow workable and fair procedures in making its
decisions, in governing itself, and in regulating parties to the agreement
with respect to matters covered by the agreement, including a requirement
that all decisions of the agency be made by majority vote (or majority of
weighted votes) of the members present and voting.
`(3) The criteria may include any other requirement for meeting subsection
(a) that the Commission determines is necessary to ensure that the regional
transmission planning agency's organization, practices, and procedures are
sufficient to carry out this section and the rules issued under it.
`(d) The Commission, after notice and opportunity for comment, may
terminate the approval of an agreement under this section at any time if it
determines that the regional transmission planning agency fails to comply with
this section or Commission prescriptions under subsection (c) or that the
agreement is contrary to the public interest.
`(e) Section 313 applies to a rehearing before a regional transmission
planning agency
and judicial review of any action of a regional transmission planning agency.
For this purpose, when section 313 refers to `Commission', substitute `regional
transmission planning agency' and when section 313(b) refers to `licensee or
public utility', substitute `entity'.'.
SEC. 303. BACKUP AUTHORITY TO IMPOSE A CHARGE ON AN ULTIMATE CONSUMER'S
RECEIPT OF ELECTRIC ENERGY.
The FPA is amended by adding the following new section after section 215
as added by section 302 of this Act:
`BACKUP AUTHORITY FOR CHARGE ON RECEIPT OF ELECTRIC ENERGY
`SEC. 216. (a) If a State regulatory authority that has provided notice of
retail competition under section 609 of the Public Utility Regulatory Policies
Act of 1978 for a distribution utility determines that the utility should be
authorized or required to impose a charge on an ultimate consumer's receipt of
electric energy but the State regulatory authority lacks authority to
authorize or require imposition of such a charge, the State regulatory
authority may apply to the Commission for an order providing for the
imposition of the charge. If the Commission determines that the imposition of
the charge is just, reasonable, and not unduly discriminatory or preferential;
is consistent with the State regulatory authority's policy regarding the
imposition of the charge; and is not prohibited by State law, the Commission
may issue an order providing for the imposition of the charge.
`(b) If a nonregulated utility that has outstanding loans made or
guaranteed by the Rural Utilities Service and that has filed a notice of
retail competition under section 609 of the Public Utilities Regulatory
Policies Act of 1978 determines that it is appropriate to impose a charge on
an ultimate consumer's receipt of electric energy, but lacks the authority to
impose such a charge under State law, the utility may apply to the Commission
for an order providing for the imposition of a charge. If the Commission
determines that the proposed charge is just, reasonable, and not unduly
discriminatory or preferential, the Commission may issue an order providing
for the imposition of the charge.'.
SEC. 304. AUTHORITY TO ESTABLISH AND REQUIRE INDEPENDENT REGIONAL SYSTEM
OPERATION.
Section 202 of the FPA is amended by adding the following new subsections
after subsection (g):
`(h) Upon its own motion or upon application or complaint and after notice
and an opportunity for a hearing, the Commission may order the establishment
of entities for the purpose of independent operation, control, and planning of
interconnected transmission facilities; order a transmitting utility to
relinquish control over operation of its transmission facilities to an entity
for the purpose of independent operation, control, and planning of
interconnected transmission facilities; subject generators to the control of
such entity consistent with other laws to the extent necessary to permit
reliable operation of the transmission facilities; or take any combination of
these actions, if the Commission finds that--
`(1) this action is appropriate to promote competitive electricity
markets and efficient, economical, and reliable operation of the interstate
transmission grid;
`(2) the entity established for the purpose of independent operation,
control, and planning of interconnected transmission facilities will
operate, control, and plan the transmission facilities in a manner that
assures that--
`(A) ownership of transmission facilities provides no advantage in
competitive electricity markets;
`(B) the transmission customers of the Tennessee Valley Authority
(TVA), the Bonneville Power Administration, the Southwestern Power
Administration (SWPA), and the Western Area Power Administration (WAPA)
will not pay an unreasonable share of the entity's costs and will not
experience unreasonable transmission rate increases resulting from the
establishment of the entity; and
`(C) as applicable, the respective statutory and treaty obligations
and contractual obligations existing on the date of enactment of this Act
of the TVA Board of Directors, the Bonneville Administrator, the SWPA
Administrator, the WAPA Administrator, the Bureau of Reclamation, and the
Corps of Engineers can be met;
`(3) any transmitting utility ordered to transfer control of its
transmission facilities will receive just and reasonable compensation for
the use of its facilities, consistent with section 201A where applicable;
and
`(4) adequate reliability of the affected transmission facilities will
be maintained. Nothing in this section limits States from addressing
transmission facility maintenance, planning, siting, and other utility
functions in a manner consistent with this Act or Commission action under
this Act.
`(i) If not ordered under subsection (h), TVA, the Bonneville
Administrator, the SWPA Administrator, or the WAPA Administrator are
authorized to participate in a regional transmission system operation after
conducting a public process in the relevant service area to receive comments.
Notwithstanding any other law, participation may include delegation of
operation and control of the Authority or Administration's transmission system
to that entity, or other method of participation, under terms and conditions
the Authority or Administrator determines necessary or appropriate, including
being bound by operational and other orders of the entity and by the results
of arbitration of disputes with the entity or with other participants.'.
TITLE IV--PUBLIC BENEFITS
SEC. 401. PUBLIC BENEFITS FUND.
PURPA is amended by adding after section 609, as added by section 101 of
this Act, the following new section:
`SEC. 610. PUBLIC BENEFITS FUND.
`(a) DEFINITIONS- For purposes of this section--
`(1) the term `Board' means the Joint Board established under subsection
(b)(1);
`(2) the term `eligible public purpose program' means a program that
supports one or more of the following--
`(A) availability of affordable electricity service to low-income
customers,
`(B) implementation of energy conservation and energy efficiency
measures and energy management practices,
`(D) the development and demonstration of an electricity generation
technology that the Secretary determines is emerging from research and
development, provides environmental benefits, and--
`(i) has significant national commercial potential, or
`(ii) provides energy security or generation resource diversity
benefits, or
`(E) rural assistance subsequent to a determination made under
subsection (d)(4);
`(3) the term `fiscal agent' means the entity designated under
subsection (b)(2)(B);
`(4) the term `Fund' means the Public Benefits Fund established under
subsection (b)(2)(A); and
`(5) the term `State' means each of the 48 contiguous States and the
District of Columbia.
`(b) JOINT BOARD- (1) A Joint Board is established whose membership is
composed of two officers or employees of the United States Government
appointed by the Secretary, four State commissioners appointed by the national
organization of State commissions, and one member of an Indian tribal
government appointed by the Secretary. The Secretary shall designate the Chair
of the Board.
`(A) establish a Public Benefits Fund upon petition of States and
tribal governments wishing to participate in the program under this
section,
`(B) appoint a fiscal agent, from persons nominated by the States and
tribal governments petitioning to establish the Fund, and
`(C) administer the Fund as set forth in this section.
`(c) FISCAL AGENT- The fiscal agent appointed by the Board shall collect
and disburse the amounts in the Fund as set forth in this section.
`(d) SECRETARY- The Secretary shall prescribe rules for--
`(1) the determination of charges under subsection (e);
`(2) the collection of amounts for the Fund, including provisions for
overcollection or undercollection;
`(3) distribution of amounts from the Fund; and
`(4) the criteria under which the Board determines whether a State or
tribal government's program is an eligible public purpose program, including
a rural assistance program. A rural assistance program shall be an eligible
public purpose program to the extent that the Secretary, in consultation
with the Secretary of Agriculture, determines by rule that significant
adverse economic effects on rural customers have occurred or will occur as a
result of electricity restructuring that meets the retail competition
requirements of this Act. After such a determination is made, the Secretary,
in consultation with the Secretary of Agriculture, shall specify by rule the
mechanism for distribution of funds to rural assistance programs, amounts to
be provided, and variances to the overall requirements to the Public
Benefits Fund under this section, if any. For the purposes of funding rural
assistance programs, the Secretary shall increase the charge for the Public
Benefit Fund as necessary, up to a maximum of .17 mills per kilowatt hour.
Funding for rural assistance programs under this section shall be provided
exclusively from this increase in the charge.
`(e) PUBLIC BENEFITS CHARGE- (1) As a condition of existing or future
interconnection with facilities of any transmitting utility, each owner of an
electric generating facility whose capacity exceeds one megawatt shall pay the
transmitting utility a public benefits charge determined under paragraph (2),
even if the generation facility and the transmitting facility are under common
ownership or are otherwise affiliated. Each importer of electric energy from
Canada or Mexico, as a condition of existing or future interconnection with
facilities of any transmitting utility in the United States, shall pay this
same charge for imported electric energy. The transmitting utility shall pay
the amounts collected to the fiscal agent at the close of each month, and the
fiscal agent shall deposit the amounts into the Fund as offsetting
collections.
`(2)(A) The Board shall notify the Commission of the sum of the requests
of all States and tribal governments under subsection (f) within 30 days after
receiving the requests.
`(B) The Commission shall calculate the rate for the public benefits
charge for each calendar year at an amount, not in excess of 1 mill per
kilowatt-hour, equal to the sum of the requests of all States and tribal
governments under subsection (f) for programs described in subsection
(a)(2)(A) through (a)(2)(D), but not to exceed $3 billion per year, divided by
the estimated kilowatt hours of electric energy to be generated by generators
subject to the charge. Amounts collected in excess of $3 billion in a fiscal
year shall be retained in the fund and the assessment in the following year
shall be reduced by that amount. If there are more than de minimis receipts
from the sale of Renewable Energy Credits under section 611, the Secretary
shall direct the Commission to reduce the charge to reflect the amount of
receipts received from the sale of Credits. The amount of the receipts from
the sale of Renewable Energy Credits deposited in the Public Benefits Fund may
not exceed $3 billion per year adjusted for inflation. Receipts from the sale
of Renewable Energy Credits in excess of $3 billion per year adjusted for
inflation shall be deposited in the General Fund of the Treasury.
`(C) If a finding is made under subsection (d)(4) in relation to rural
customers, the public benefit charge shall be increased as indicated under
subsection (d)(4).
`(f) STATE AND TRIBAL GOVERNMENT PARTICIPATION- (1) Not later than 90 days
before the beginning of each calendar year, each State and tribal government
seeking to participate in the Fund shall submit to the Board a request for
payments from the Fund for the calendar year in an amount not in excess of 50
percent of the State or tribal government's estimated expenditures for
eligible public purpose programs for the year, except as provided under rules
issued under subsection (d)(4) for rural assistance programs.
`(2) To the extent a State or tribal government generates all or part of
its funds for eligible public purpose programs through a wires charge on an
ultimate consumer's receipt of electric energy, the State or tribal government
shall impose the charge on a non-discriminatory basis on all consumers within
the State or tribal government jurisdiction.
`(3) Notwithstanding subsection (a)(5)--
`(A) Alaska may participate in the Fund as a State if it certifies to
the Board that all generators within Alaska with a nameplate capacity
exceeding one megawatt shall pay
into the Fund at the rate calculated by the Board during the year in which
Alaska seeks matching funds, and
`(B) Hawaii may participate in the Fund as a State if it certifies to
the Board that all generators within Hawaii with a nameplate capacity
exceeding one megawatt shall pay into the Fund at the rate calculated by the
Board during the year in which Hawaii seeks matching funds.
`(g) DISBURSAL FROM THE FUND- (1) The Board shall review State and tribal
government submissions and determine whether programs designated by the State
or tribal government are eligible public purpose programs, using the criteria
prescribed under subsection (d), and whether there is reasonable assurance
that spending qualifying as State or tribal government matching funds will
occur.
`(2) The fiscal agent shall disburse amounts in the Fund to participating
States and tribal governments to carry out eligible public programs in
accordance with this subsection and rules prescribed under subsection (d).
`(3) To the extent the aggregate amount of funds requested by the States
and tribal governments exceeds the maximum aggregate revenues eligible to be
collected under subsection (e) and deposited as payment for Renewable Energy
Credits under section 611, the fiscal agent shall reduce each participating
State and tribal government's request proportionately.
`(4)(A) The fiscal agent shall disburse amounts for a calendar year from
the Fund to a State or tribal government in twelve equal monthly payments
beginning two months after the beginning of the calendar year. Amounts
disbursed may not exceed the lesser of the State or tribal government's
request for the fiscal year, after any reduction required under paragraph (3),
or 50 percent of the State or tribal government's documented expenditures for
eligible public purpose programs for the calendar year, except as provided
under rules issued under subsection (d)(4) for rural assistance programs.
`(B) The fiscal agent shall make distributions to the State or tribal
government or to an entity designated by the State or tribal government to
receive payments. The State or tribal government may designate a nonregulated
utility as an entity to receive payments under this section.
`(C) A State or tribal government may use amounts received only for the
eligible public purpose programs the State or tribal government designated in
its submission to the Board and the Board determined eligible.
`(h) REPORT- One year before the date of expiration of this section, the
Secretary shall report to Congress, after consultation with the Board, whether
a public benefits fund should continue to exist.
`(i) SUNSET- This section expires at midnight on December 31 of the
fifteenth year after the year the Comprehensive Electricity Competition Act is
enacted, except with regard to charges and funding for rural assistance
programs.'.
SEC. 402. FEDERAL RENEWABLE PORTFOLIO STANDARD.
(a) STANDARD- PURPA is amended by adding after section 610, as added by
section 401 of this Act, the following new section:
`SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD.
`(a) MINIMUM RENEWABLE GENERATION REQUIREMENT- (1) For each calendar year
beginning with 2000, a retail electric supplier shall submit to the Secretary
Renewable Energy Credits in an amount equal to the required annual percentage,
specified in subsection (b), of the total electric energy sold by the retail
electric supplier to electric consumers in the calendar year. The retail
electric supplier shall make this submission before April 1 of the following
calendar year.
`(2) For purposes of this section a `renewable energy' resource means
solar energy, wind, geothermal, or biomass.
`(3) This section does not preclude a State from requiring additional
renewable energy generation in that State.
`(b) REQUIRED ANNUAL PERCENTAGE- (1) The Secretary shall determine the
required annual percentage that is to be applied to all retail electric
suppliers for calendar years 2000-2004. This required annual percentage shall
be equal to the percent of the total electric energy sold, during the most
recent calendar year for which information is available before the calendar
year of the enactment of this section, by retail suppliers to electric
customers in the United States that is renewable energy.
`(2) The Secretary shall determine the required annual percentage for all
retail electric suppliers for calendar years 2005-2009. This percentage shall
be above the percentage in paragraph (1) and below the percentage in paragraph
(3) and shall be selected to promote a smooth transition to the level in
paragraph (3).
`(3) For calendar years 2010-2015, the required annual percentage is 7.5
percent.
`(c) SUBMISSION OF CREDITS- A retail electric supplier may satisfy the
requirements of subsection (a) through the submission of--
`(1) Renewable Energy Credits issued under subsection (d) for renewable
energy generated by the retail electric supplier in the calendar year for
which Credits are being submitted or any previous calendar year,
`(2) Renewable Energy Credits issued under subsection (d) to any
renewable energy generator for renewable energy generated in the calendar
year for which Credits are being submitted or a previous calendar year and
acquired by the retail electric supplier, or
`(3) any combination of Credits under paragraphs (1) and (2).
`(d) ISSUANCE OF CREDIT- (1) The Secretary shall establish, not later than
one year after the date of enactment of this section, a program to issue,
monitor the sale or exchange of, and track Renewable Energy Credits.
`(2) Under the program, an entity that generates electric energy through
the use of a renewable energy resource may apply to the Secretary for the
issuance of Renewable Energy Credits. The application shall indicate--
`(A) the type of renewable energy resource used to produce the
electricity,
`(B) the State in which the electric energy was produced, and
`(C) any other information the Secretary determines appropriate.
`(3)(A) Except as provided in paragraph (B), the Secretary shall issue to
an entity one
Renewable Energy Credit for each kilowatt-hour of electric energy the entity
generates through the use of a renewable energy resource in any State in 2000
and any succeeding year.
`(B) The Secretary shall issue two Renewable Energy Credits for each
kilowatt-hour of electric energy generated through the use of a renewable
energy resource in any State in 2000 and any succeeding year, if the
generating facility is located on Indian land. For purposes of this paragraph,
renewable energy generated by biomass cofired with other fuels is eligible for
two credits only if the biomass was grown on the land eligible under this
paragraph.
`(C) To be eligible for a Renewable Energy Credit, the unit of a
electricity generated through the use of a renewable energy resource may be
sold or may be used by the generator. If both a renewable energy resource and
a non-renewable energy resource are used to generate the electric energy, the
Secretary shall issue credits based on the proportion of the renewable energy
resource used. The Secretary shall identify Renewable Energy Credits by type
of generation and by the State in which the generating facility is located.
`(4) In order to receive a Renewable Energy Credit, the recipient of a
Renewable Energy Credit shall pay a fee, calculated by the Secretary, in an
amount that is equal to the administrative costs of issuing, recording,
monitoring the sale of exchange of, and tracking the Credit or does not exceed
five percent of the dollar value of the Credit, whichever is lower. The
Secretary shall retain the fee and use it to pay these administrative
costs.
`(5) When a generator sells electric energy generated through the use of a
renewable energy resource to a retail electric supplier under a contract
subject to section 210 of this Act, the retail electric supplier is treated as
the generator of the electric energy for the purposes of this section for the
duration of the contract.
`(6) The Secretary shall disqualify an otherwise eligible renewable energy
generator from receiving a Renewable Energy Credit if the generator has
elected to participate in net metering under section 612.
`(7) If a generator using a renewable energy resource receives matching
funds under section 610, the Secretary shall reduce the number of Renewable
Energy Credits the generator receives under paragraphs (3) so that the
aggregate value of those Credits plus the matching funds received under
section 610 equals the aggregate value of the Credits the generator would have
received absent this paragraph. For purposes of this paragraph, the Secretary
shall value a Credit at a price that is representative of the price of a
Credit in private transactions. In no event shall the Secretary use a price to
establish values for purposes of this paragraph that exceeds the cost cap
established under subsection (f).
`(e) SALE OR EXCHANGE- A Renewable Energy Credit may be sold or exchanged
by the entity to whom issued or by any other entity who acquires the Credit. A
Renewable Energy Credit for any year that is not used to satisfy the minimum
renewable generation requirement of subsection (a) for that year may be
carried forward for use in another year.
`(f) RENEWABLE ENERGY CREDIT COST CAP- Beginning January 1, 2000, the
Secretary shall offer Renewable Energy Credits for sale. The Secretary shall
charge 1.5 cents for each Renewable Energy Credit sold during calendar year
2000, and on January 1 of each following year, the Secretary shall adjust for
inflation, based on the Consumer Price Index, the price charged per Credit for
that calendar year. The Secretary shall deposit in the Public Benefits Fund
established under section 610 the amount received from a sale under this
subsection.
`(g) ENFORCEMENT- The Secretary may bring an action in the appropriate
United States district court to impose a civil penalty on a retail electric
supplier that does not comply with subsection (a). A retail electric supplier
who does not submit the required number of Renewable Energy Credits under
subsection (a) is subject to a civil penalty of not more than three times the
value of the Renewable Energy Credits not submitted. For purposes of this
subsection, the value of a Renewable Energy Credit is the price of a Credit
determined under subsection (f) for the year the Credits were not
submitted.
`(h) INFORMATION COLLECTION- The Secretary may collect the information
necessary to verify and audit--
`(1) the annual electric energy generation and renewable energy
generation of any entity applying for Renewable Energy Credits under this
section,
`(2) the validity of Renewable Energy Credits submitted by a retail
electric supplier to the Secretary, and
`(3) the quantity of electricity sales of all retail electric
suppliers.
`(i) SUNSET- This section expires December 31, 2015.'.
(b) DEFINITIONS- Section 3 of PURPA is amended by adding after paragraph
(24) as added by section 101 of this Act the following new paragraph:
`(25) The term `retail electric supplier' means a person, State agency,
or Federal agency that sells electric energy to an electric consumer.
`(26) The term `Indian land' means (A) any land within the limits of any
Indian reservation, pueblo or rancheria, (B) any land not within the limits
of any Indian reservation, pueblo or rancheria title to which was on the
date of passage of the Comprehensive Electricity Competition Act either held
in trust by the United States for the benefit of any Indian tribe or
individual or held by any Indian tribe or individual subject to restriction
by the United States against alienation, (C) any dependent Indian community,
and (D) any land conveyed to any Alaska Native corporation under the Alaska
Native Claims Settlement Act.
`(27) The term `Indian tribe' means any Indian tribe, band, group, or
nation, including Alaska Indians, Aleuts, or Eskimos, or any Alaskan Native
Village of the United States, which is considered an eligible recipient
under the Indian Self Determination and Education Assistance Act (Public Law
93-638) or was considered an eligible recipient under chapter 67 of title
31, United States Code, prior to the repeal of such chapter.'.
SEC. 403. NET METERING.
PURPA is amended by adding the following new section after section 611 as
added by section 402 of this Act:
`SEC. 612. NET METERING FOR RENEWABLE ENERGY.
`(a) DEFINITIONS- For purposes of this section--
`(1) The term `eligible on-site generating facility' means a facility on
the site of an electric consumer with a peak generating capacity of 20
kilowatts or less that is fueled
solely by a renewable energy resource.
`(2) The term `renewable energy resource' means solar energy, wind,
geothermal, or biomass.
`(3) The term `net metering service' means service to an electric
consumer under which electricity generated by that consumer from an eligible
on-site generating facility and delivered to the distribution system through
the same meter through which purchased electricity is received may be used
to offset electricity provided by the retail electric supplier to the
electric consumer during the applicable billing period so that an electric
consumer is billed only for the net electricity consumed during the billing
period, but in no event shall the net be less than zero during the
applicable billing period.
`(b) REQUIREMENT TO PROVIDE NET METERING SERVICE- Each retail electric
supplier shall make available upon request net metering service to any retail
electric consumer whom the supplier currently serves or solicits for
service.
`(c) STATE AUTHORITY- This section does not preclude a State from imposing
additional requirements consistent with the requirements in this section,
including the imposition of a cap limiting the amount of net metering
available in the State. Nothing in this Act or any other Federal law preempts
or otherwise affects authority under State law to require a retail electric
supplier to make available net metering service to a retail electric consumer
whom the supplier serves or offers to serve.'.
SEC. 404. REFORM OF SECTION 210 OF PURPA.
Section 210 of PURPA is amended by adding the following new subsection
after subsection (l):
`(m) REPEAL OF MANDATORY PURCHASE REQUIREMENT- After the date of enactment
of the Comprehensive Electricity Competition Act, an electric utility shall
not be required to enter into a new contract or obligation to purchase
electric energy under this section.'.
SEC. 405. INTERCONNECTIONS FOR CERTAIN FACILITIES.
PURPA is amended by adding the following new section after section 612 as
added by section 403 of this Act:
`SEC. 613. INTERCONNECTIONS FOR CERTAIN FACILITIES.
`(a) DEFINITION- As used in this section `facility' means--
`(1) a small-scale electric power generation facility that is designed
to serve customers at or near the facility, or
`(2) a facility using a single fuel source to produce at the point of
use either electric or mechanical power and thermal energy.
`(b) INTERCONNECTION- A distribution utility shall allow a facility to
interconnect with the distribution utility if the facility owner is located in
the distribution utility's service territory and complies with the final rule
issued under subsection (c).
`(c) Within one year from the date of enactment of this section, the
Secretary shall issue a final rule to implement subsection (b) and issue
related safety and power quality standards. To the extent feasible, the
Secretary shall develop the standards through a process involving interested
parties.
`(d) The Commission shall enforce the rule established under subsection
(c) using its authority under this Act.'.
SEC. 406. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS.
Section 313 of the Rural Electrification Act of 1936 (7 U.S.C. 940c) is
amended by adding after subsection (b) the following new subsections:
`(c) RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS- The Secretary,
in consultation with the Secretary of Energy and the Secretary of the
Interior, may provide grants to eligible borrowers under this Act for the
purpose of increasing energy efficiency, lowering, or stabilizing electric
rates to end users, or providing or modernizing electric facilities for:
`(1) a unit of local government of a State or territory, or
that has an average cost per kilowatt hour of electricity that is at least
150 percent of the average retail price per kilowatt hour for all consumers in
the United States, as determined by the Secretary using data provided by the
Department of Energy. The Secretary shall issue the grants based on a
determination of cost-effectiveness and most effective use of the funds to
achieve the stated purposes of this section.
`(d) DEFINITION- For purposes of this section, the term `Indian tribe'
means any Indian tribe, band, group, or nation, including Alaska Indians,
Aleuts, or Eskimos, or any Alaskan Native Village of the United States, which
is considered an eligible recipient under the Indian Self Determination and
Education Assistance Act (Public Law 93-638) or was considered an eligible
recipient under chapter 67 of title 31, United States Code, prior to the
repeal of such chapter.
`(e) AUTHORIZATION- There is authorized to be appropriated for purposes of
subsection (c) $20,000,000 for each of the seven fiscal years following
enactment of this section.'.
SEC. 407. INDIAN TRIBE ASSISTANCE.
Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501-3506) is
amended by adding after section 2606 the following new section:
`SEC. 2607. TRIBAL ELECTRICITY ASSISTANCE.
`(a) The Secretary of Energy, in consultation with the Secretary of the
Interior and the Secretary of Agriculture, shall establish a program to assist
an Indian tribe to meet its electricity needs. Under the program, the
Secretary shall provide, subject to appropriations, to an Indian tribe--
`(1) technical assistance and grants to analyze tribal electricity
needs, the availability of natural resources for tribal generation of
electricity, the opportunities for the improvement of transmission of
electricity to the tribe, and the effect on the tribe of retail competition
in the sale or transmission of electricity, and
`(2) in an area that is not served or served inadequately by an electric
utility, as defined in section 3(4) of the Public Utility Regulatory
Policies Act of 1978, or distribution utility, as defined in section 3(23)
of the Public Utility Regulatory Policies Act of 1978, grants to plan and
construct or improve facilities to generate, transmit, and distribute
electricity to serve tribal needs.
In exercising authority under this section, the Secretary shall take into
account the ability of entities with loans made or guaranteed under the Rural
Electrification Act of 1936 to repay those
loans. The Secretary shall issue the grants based on a determination of
cost-effectiveness and most effective use of funds to achieve the stated
purposes of this section.
`(b) DEFINITION- For purposes of this section, the term `Indian tribe'
means any Indian tribe, band, group, or nation, including Alaska Indians,
Aleuts, or Eskimos, or any Alaskan Native Village of the United States, which
is considered an eligible recipient under the Indian Self Determination and
Education Assistance Act (Public Law 93-638) or was considered an eligible
recipient under chapter 67 of title 31, United States Code, prior to the
repeal of such chapter.
`(c) There are authorized to be appropriated to the Department of Energy
for each of the seven fiscal years following enactment of this section,
$5,000,000 to carry out subsection (a)(1), and $15,000,000 to carry out
subsection (a)(2).'.
SEC. 408. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
Title II of the Department of Energy Organization Act is amended by adding
the following new section after section 212:
`SEC. 213. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
`(a) The Secretary may establish within the Department an Office of Indian
Energy Policy and Programs. The Office shall be headed by a Director appointed
by the Secretary.
`(b) Subject to the supervision of the Secretary, the Office is authorized
to establish a program to provide, direct, foster, coordinate and implement
energy, energy management, and energy conservation programs to--
`(1) promote tribal energy efficiency;
`(2) modernize tribal electric infrastructure;
`(3) preserve tribal sovereignty and self determination related to
energy matters;
`(4) lower or stabilize energy costs; and
`(5) electrify tribal members' homes.
`(c) There are authorized to be appropriated such sums as may be necessary
to implement this section.'.
SEC. 409. SOUTHEAST ALASKA ELECTRICAL POWER.
There are authorized to be appropriated to the Department of Energy up to
a total sum of $20,000,000 for the purpose of providing financial assistance
to the State of Alaska as necessary to ensure the availability of adequate
electrical power to the greater Ketchikan area in southeast Alaska, including
the construction of an intertie.
TITLE V--REGULATION OF MERGERS AND CORPORATE STRUCTURE
SEC. 501. REFORM OF HOLDING COMPANY REGULATION UNDER PUHCA.
Effective 18 months after the enactment of this Act, the Public Utility
Holding Company Act of 1935 is repealed and the following is enacted in its
place:
`SECTION 1. SHORT TITLE.
`This Act may be cited as the `Public Utility Holding Company Act of
1999'.
`SEC. 2. DEFINITIONS.
`For purposes of this Act--
`(1) the term `affiliate' of a company means any company 5 percent or
more of the outstanding voting securities of which are owned, controlled, or
held with power to vote, directly or indirectly, by such company;
`(2) the term `associate company' of a company means any company in the
same holding company system with such company;
`(3) the term `Commission' means the Federal Energy Regulatory
Commission;
`(4) the term `company' means a corporation, partnership, association,
joint stock company, business trust, or any organized group of persons,
whether incorporated or not, or a receiver, trustee, or other liquidating
agent of any of the foregoing;
`(5) the term `electric utility company' means any company that owns or
operates facilities used for the generation, transmission, or distribution
of electric energy for sale;
`(6) the terms `exempt wholesale generator' and `foreign utility
company' have the same meanings as in sections 32 and 33, respectively, of
the Public Utility Holding Company Act of 1935, as those sections existed on
the day before the effective date of this Act;
`(7) the term `gas utility company' means any company that owns or
operates facilities used for distribution at retail (other than the
distribution only in enclosed portable containers, or distribution to
tenants or employees of the company operating such facilities for their own
use and not for resale) of natural or manufactured gas for heat, light, or
power;
`(8) the term `holding company' means--
`(A) any company that directly or indirectly owns, controls, or holds,
with power to vote, 10 percent or more of the outstanding voting
securities of a public utility company or of a holding company of any
public utility company; and
`(B) any person, determined by the Commission, after notice and
opportunity for hearing, to exercise directly or indirectly (either alone
or pursuant to an arrangement or understanding with one or more persons)
such a controlling influence over the management or policies of any public
utility company or holding company as to make it necessary or appropriate
for the rate protection of utility customers with respect to rates that
such person be subject to the obligations, duties, and liabilities imposed
by this Act upon holding companies;
`(9) the term `holding company system' means a holding company, together
with its subsidiary companies;
`(10) the term `jurisdictional rates' means rates established by the
Commission for the transmission of electric energy, the sale of electric
energy at wholesale in interstate commerce, the transportation of natural
gas, and the sale in interstate commerce of natural gas for resale for
ultimate public consumption for domestic, commercial, industrial, or any
other use;
`(11) the term `natural gas company' means a person engaged in the
transportation of natural gas in interstate commerce or the sale of such gas
in interstate commerce for resale;
`(12) the term `person' means an individual or company;
`(13) the term `public utility' means any person who owns or operates
facilities used for transmission of electric energy or sales of electric
energy at wholesale in
interstate commerce;
`(14) the term `public utility company' means an electric utility
company or a gas utility company;
`(15) the term `State commission' means any commission, board, agency,
or officer, by whatever name designated, of a State, municipality, or other
political subdivision of a State that, under the laws of such State, has
jurisdiction to regulate public utility companies;
`(16) the term `subsidiary company' of a holding company means--
`(A) any company, 10 percent or more of the outstanding voting
securities of which are directly or indirectly owned, controlled, or held
with power to vote, by such holding company; and
`(B) any person, the management or policies of which the Commission,
after notice and opportunity for hearing, determines to be subject to a
controlling influence, directly or indirectly, by such holding company
(either alone or pursuant to an arrangement or understanding with one or
more other persons) so as to make it necessary for the rate protection of
utility customers with respect to rates that such person be subject to the
obligations, duties, and liabilities imposed by this Act upon subsidiary
companies of holding companies; and
`(17) the term `voting security' means any security presently entitling
the owner or holder thereof to vote in the direction or management of the
affairs of a company.
`SEC. 3. FEDERAL ACCESS TO BOOKS AND RECORDS.
`(a) IN GENERAL- Each holding company and each associate company thereof
shall maintain, and shall make available to the Commission, such books,
accounts, records, memoranda, and other records as the Commission deems to be
relevant to costs incurred by a public utility or natural gas company that is
an associate company of such holding company and necessary or appropriate for
the protection of utility customers with respect to jurisdictional rates for
the transmission of electric energy, the sale of electric energy at wholesale
in interstate commerce, the transportation of natural gas in interstate
commerce, and the sale in interstate commerce of natural gas for resale for
ultimate public consumption for domestic, commercial, industrial, or any other
use.
`(b) AFFILIATE COMPANIES- Each affiliate of a holding company or of any
subsidiary company of a holding company shall maintain, and make available to
the Commission, such books, accounts, memoranda, and other records with
respect to any transaction with another affiliate, as the Commission deems
relevant to costs incurred by a public utility or natural gas company that is
an associate company of such holding company and necessary or appropriate for
the protection of utility customers with respect to jurisdictional rates.
`(c) HOLDING COMPANY SYSTEMS- The Commission may examine the books,
accounts, memoranda, and other records of any company in a holding company
system, or any affiliate thereof, as the Commission deems relevant to costs
incurred by a public utility or natural gas company within such holding
company system and necessary or appropriate for the protection of utility
customers with respect to jurisdictional rates.
`(d) CONFIDENTIALITY- No member, officer, or employee of the Commission
shall divulge any fact or information that may come to his or her knowledge
during the course of examination of books, accounts, memoranda, or other
records as provided in this section, except as may be directed by the
Commission or by a court of competent jurisdiction.
`SEC. 4. STATE ACCESS TO BOOKS AND RECORDS.
`(a) IN GENERAL- Upon the written request of a State commission having
jurisdiction to regulate a public utility company in a holding company system,
the holding company or any associate company or affiliate thereof, other than
such public utility company, wherever located, shall produce for inspection
such books, accounts, memoranda, and other records that--
`(1) have been identified in reasonable detail in a proceeding before
the State commission;
`(2) the State commission deems are relevant to costs incurred by such
public utility company; and
`(3) are necessary for the effective discharge of the responsibilities
of the State commission with respect to such proceeding.
`(b) LIMITATION- Subsection (a) does not apply to any person that is a
holding company solely by reason of ownership of one or more qualifying
facilities under the Public Utility Regulatory Policies Act of 1978.
`(c) CONFIDENTIALITY OF INFORMATION- The production of books, accounts,
memoranda, and other records under subsection (a) shall be subject to such
terms and conditions as may be necessary and appropriate to safeguard against
unwarranted disclosure to the public of any trade secrets or sensitive
commercial information.
`(d) EFFECT ON STATE LAW- Nothing in this section shall preempt applicable
State law concerning the provision of books, records, or any other
information, or in any way limit the rights of any State to obtain books,
records, or any other information under any other Federal law, contract, or
otherwise.
`(e) COURT JURISDICTION- Any United States district court located in the
State in which the State commission referred to in subsection (a) is located
shall have jurisdiction to enforce compliance with this section.
`SEC. 5. EXEMPTION AUTHORITY.
`(a) RULEMAKING- Not later than 90 days after the effective date of this
Act, the Commission shall promulgate a final rule to exempt from the
requirements of section 3 any person that is a holding company, solely with
respect to one or more--
`(1) qualifying facilities under the Public Utility Regulatory Policies
Act of 1978;
`(2) exempt wholesale generators; or
`(3) foreign utility companies.
`(b) OTHER AUTHORITY- If, upon application or upon its own motion, the
Commission finds that the books, records, accounts, memoranda, and other
records of any person are not relevant to the jurisdictional rates of a public
utility or natural gas company, or if the Commission finds that any class of
transactions is not relevant to the jurisdictional rates of a public utility
or natural gas company, the Commission shall exempt such person or transaction
from the requirements of section 3.
`SEC. 6. AFFILIATE TRANSACTIONS.
`Nothing in this Act shall preclude the Commission or a State commission
from exercising its jurisdiction under otherwise applicable law to determine
whether a public utility company, public utility, or natural gas company may
recover in rates any costs of an activity performed by an associate company,
or any costs of goods or services acquired by such public utility company from
an associate company.
`SEC. 7. APPLICABILITY.
`No provision of this Act shall apply to, or be deemed to include--
`(2) a State or any political subdivision of a State;
`(3) any foreign governmental authority not operating in the United
States;
`(4) any agency, authority, or instrumentality of any entity referred to
in paragraph (1), (2), or (3); or
`(5) any officer, agent, or employee of any entity referred to in
paragraph (1), (2), or (3) acting as such in the course of official
duty.
`SEC. 8. EFFECT ON OTHER REGULATIONS.
`Nothing in this Act precludes the Commission or a State commission from
exercising its jurisdiction under otherwise applicable law to protect utility
customers.
`SEC. 9. ENFORCEMENT.
`The Commission shall have the same powers as set forth in sections 306
through 317 of the Federal Power Act (16 U.S.C. 825d-825p) to enforce the
provisions of this Act.
`SEC. 10. SAVINGS PROVISIONS.
`(a) IN GENERAL- Nothing in this Act prohibits a person from engaging in
or continuing to engage in activities or transactions in which it is legally
engaged or authorized to engage on the effective date of this Act.
`(b) EFFECT ON OTHER COMMISSION AUTHORITY- Nothing in this Act limits the
authority of the Commission under the Federal Power Act (16 U.S.C. 791a et
seq.) (including section 301 of that Act) or the Natural Gas Act (15 U.S.C.
717 et seq.) (including section 8 of that Act).
`SEC. 11. IMPLEMENTATION.
`Not later than 18 months after the date of enactment of the Comprehensive
Electricity Competition Act, the Commission shall--
`(1) promulgate such regulations as may be necessary or appropriate to
implement this Act (other than section 4); and
`(2) submit to the Congress detailed recommendations on technical and
conforming amendments to Federal law necessary to carry out this Act and the
amendments made by this Act.
`SEC. 12. TRANSFER OF RESOURCES.
`All books and records that relate primarily to the functions transferred
to the Commission under this Act shall be transferred from the Securities and
Exchange Commission to the Commission.
`SEC. 13. AUTHORIZATION OF APPROPRIATIONS.
`There are authorized to be appropriated such funds as may be necessary to
carry out this Act.
`SEC. 14. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.
`Section 318 of the Federal Power Act (16 U.S.C. 825q) is repealed.'.
SEC. 502. ELECTRIC COMPANY MERGERS.
Section 203(c) of the FPA is amended by--
(1) striking `public utility' each time it appears and inserting in its
place `person or electric utility company';
(2) inserting after the first sentence the following: `Except as the
Commission otherwise provides, a holding company in a holding company system
that includes an electric utility company shall not, directly or indirectly,
purchase, acquire, or take any security of an electric utility company or of
a holding company in a holding company system that includes an electric
utility company, with first securing an order of the Commission authorizing
it to do so.';
(3) striking `hearing' in the last sentence and inserting `oral or
written presentation of views';
(4) adding after `public interest' the following: `including
consideration of the effects on competition in wholesale and retail
electricity markets,'; and
(5) adding at the end the following: `For purposes of this subsection,
the terms `electric utility company', `holding company', and `holding
company system' have the meaning given them in the Public Utility Holding
Company Act of 1999.
Notwithstanding section 201(b)(1), generation facilities are subject to
the jurisdiction of the Commission for purposes of this section, except as the
Commission otherwise may provide, provided that an entity that has existing
loans made or guaranteed under the Rural Electrification Act of 1936 (5 U.S.C.
901 et seq.) is not jurisdictional for purposes of this section.'.
SEC. 503. REMEDIAL MEASURES FOR MARKET POWER.
The FPA is amended by adding the following new section after section 216
as added by section 303 of this Act:
`REMEDIAL MEASURES FOR MARKET POWER
`SEC. 217. (a) DEFINITIONS- As used in this section--
`(1) `market power' means the ability of a public utility or electric
utility profitably to maintain prices above competitive levels for a
significant period of time, and
`(2) `notice of retail competition' has the meaning provided under
section 3(22) of the Public Utility Regulatory Policies Act of 1978.
`(b) COMMISSION JURISDICTIONAL SALES- (1) If the Commission determines
that there are markets in which a public utility that owns or controls
generation facilities has market power in sales of electric energy for resale
in interstate commerce, the Commission shall order that utility to submit a
plan for taking necessary actions to remedy its market power, which may
include, but is not limited to, conditions respecting operation or dispatch of
generation, independent operation of transmission facilities, or divestiture
of ownership of one or more generation facilities.
`(2) in consultation with the Attorney General and the Federal Trade
Commission, the Commission shall review the plan to determine if its
implementation would adequately mitigate
the adverse competitive effects of market power. The Commission may approve
the plan with or without modification. The plan takes effect upon approval by
the Commission. Notwithstanding any State law, regulation, or order to the
contrary and notwithstanding any other provision of this Act or any other law,
the Commission has jurisdiction to order divestiture or other transfer of
control of generation assets pursuant to the plan.
`(c) STATE JURISDICTIONAL SALES- (1) If a State commission that has filed
a notice of retail competition has reason to believe that an electric utility
doing business in the State has market power, the State commission may apply
for an order under this section.
`(2) If, after receipt of such an application and after notice and
opportunity for a hearing, the Commission determines that the electric utility
has market power in the sales of electric energy sold at retail in the State,
this market power would adversely affect competition in the State, and the
State commission lacks authority to effectively remedy such market power, the
Commission may order the electric utility to submit a plan for taking
necessary actions to remedy the electric utility's market power. These actions
may include conditions respecting operation or dispatch of generation,
competitive procurement of all generation capacity or energy, independent
operation of transmission facilities, or divestiture of ownership of one or
more generation facilities of the electric utility.
`(3) After consultation with the Attorney General and the Federal Trade
Commission, the Commission may approve the plan with or without modification.
The plan shall take effect upon approval by the Commission.
`(4) Notwithstanding any State law, regulation, or order to the contrary
and notwithstanding any other provision of this Act or any other law, the
Commission has jurisdiction to order divestiture or other transfer of control
of generation assets pursuant to the plan.'.
TITLE VI--ELECTRIC RELIABILITY
SEC. 601. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.
(a) ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT- The Federal Power Act
is amended by adding the following new section after section 217:
`ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT
`SEC. 218. (a) PURPOSE- The purpose of this section is to provide for the
establishment and enforcement of mandatory reliability standards in order to
ensure the reliable operation of the bulk-power system.
`(b) DEFINITIONS- As used in this section:
`(1) The term `Affiliated Regional Reliability Entity' means an entity
delegated authority under the provisions of subsection (i).
`(2) The term `Bulk-Power System' means all facilities and control
systems necessary for operating an interconnected transmission grid (or any
portion thereof), including high-voltage transmission lines, substations,
control centers, communications, data, and operations planning facilities,
and the output of generating units necessary to maintain transmission system
reliability.
`(3) The term `Electric Reliability Organization' or `Organization'
means the organization approved by the Commission under subsection
(e)(4).
`(4) The term `Entity Rule' means a rule adopted by an Affiliated
Regional Reliability Entity for a specific region and designed to implement
or enforce one or more Organization Standards. An Entity Rule shall be
subject to approval by the Organization, and once approved, shall be treated
as an Organization Standard.
`(5) The term `Industry Sector' means a group of Users of the Bulk Power
System with substantially similar commercial interests, as determined by the
board of the Electric Reliability Organization.
`(6) The term `Interconnection' means a geographic area in which the
operation of Bulk-Power System components is synchronized such that the
failure of one or more of such components may adversely affect the ability
of the operators of other components within the Interconnection to maintain
safe and reliable operation of the facilities within their control.
`(7) The term `Organization Standard' means a policy or standard duly
adopted by the Electric Reliability Organization to provide for the reliable
operation of a Bulk-Power System.
`(8) The term `Public Interest Group' means any non-profit private or
public organization that has an interest in the activities of the Electric
Reliability Organization, including, but not limited to, ratepayer
advocates, environmental groups, and State and local government
organizations that regulate market participants and promulgate government
policy.
`(9) The term `Variance' means an exception or variance from the
requirements of an Organization Standard (including a proposal for an
Organization standard where there is no Organization Standard) that is
adopted by an Affiliated Regional Reliability Entity and applicable to all
or a part of the region for which the Affiliated Regional Reliability Entity
is responsible. A Variance shall be subject to approval by the Organization,
and once approved, shall be treated as an Organization Standard.
`(10) The term `System Operator' means any entity that operates or is
responsible for the operation of a Bulk-Power System, including but not
limited to a control area operator, an independent system operator, a
transmission company, a transmission system operator, or a regional security
coordinator.
`(11) The term `User of the Bulk-Power System' means any entity that
sells, purchases, or transmits electric power over a Bulk-Power System, or
that owns, operates or maintains facilities or control systems that are part
of a Bulk-Power System, or that is a System Operator.
`(c) COMMISSION AUTHORITY- Notwithstanding any other provision of the
Federal Power Act, within the United States the Commission has jurisdiction
over the Electric Reliability Organization, all Affiliated Regional
Reliability Entities, all System Operators, and all Users of the Bulk-Power
System, for purposes of approving and enforcing compliance with the
requirements of this section.
`(d) EXISTING RELIABILITY STANDARDS- Following enactment of this section,
and prior to the approval of an Organization under subsection (e), any person,
including the North American Electric Reliability Council and its member
Regional Reliability Councils, may file with the
Commission any reliability standard, guidance, or practice, or any amendment
thereto, that the person would propose to be made mandatory and enforceable. The
Commission, after allowing interested persons an opportunity to submit comments,
may approve the proposed mandatory standard, guidance, or practice, or any
amendment thereto, if it finds that the standard, guidance, or practice, or
amendment is just, reasonable, not unduly discriminatory or preferential, and in
the public interest. Filed standards, guidance, or practices, including any
amendments thereto, shall be mandatory and applicable according to their terms
following approval by the Commission and shall remain in effect until--
`(1) withdrawn, disapproval or superseded by an Organization Standard,
issued or approved by the Electric Reliability Organization and made
effective by the Commission under section (f); or
`(2) disapproved or suspended by the Commission if, upon complaint or
upon its own motion and after notice and an opportunity for comment, the
Commission finds the standard, guidance, or practice unjust, unreasonable,
unduly discriminatory or preferential, or not in the public interest.
Standards, guidance, or practices in effect pursuant to the provisions of
this subsection shall be enforceable by the Commission under Part III of this
Act.
`(e) ORGANIZATION APPROVAL- (1) Not later than 90 days after the date of
enactment of this section, the Commission shall issue proposed rules
specifying procedures and requirements for an entity to apply for approval as
the Electric Reliability Organization. The Commission shall provide notice and
opportunity for comment on the proposed rules. The Commission shall issue a
final rule under this subsection within 180 days after the date of enactment
of this section.
`(2) Following the issuance of a final Commission rule under paragraph
(1), an entity may submit an application to the Commission for approval as the
Electric Reliability Organization. The applicant shall specify in its
application its governance and procedures, as well as its funding mechanism
and initial funding requirements.
`(3) The Commission shall provide public notice of the application and
afford interested parties an opportunity to comment.
`(4) The Commission shall approve the application if the Commission
determines that the applicant--
`(A) has the ability to develop, implement, and enforce standards that
provide for an adequate level of reliability of the Bulk-Power System;
`(B) permits voluntary membership to any User of the Bulk-Power System
or Public Interest Group;
`(C) assures fair representation of its members in the selection of its
directors and fair management of its affairs, taking into account the need
for efficiency and effectiveness in decisionmaking and operation and
requirements for technical competency in the development of Organization
Standards and the exercise of oversight of Bulk-Power System
reliability;
`(D) assures that no two Industry Sectors have the ability to control,
and no one Industry Sector has the ability to veto, the Electric Reliability
Organization's discharge of its responsibilities (including actions by
committees recommending standards to the board or other board actions to
implement and enforce standards);
`(E) provides for governance by a board of no more than eleven members,
one of whom shall be appointed by the Secretary of Energy;
`(F) provides a funding mechanism and requirements that are just,
reasonable, and not unduly discriminatory or preferential and are in the
public interest, and which satisfies the requirements of subsection
(n);
`(G) establishes procedures for development of Organization Standards
that provide reasonable notice and opportunity for public comment, taking
into account the need for efficiency and effectiveness in decisionmaking and
operations and the requirements for technical competency in the development
of Organization Standards, and which standards development process has the
following attributes: (i) openness, (ii) balance of interests, and (iii) due
process, except that the procedures may include alternative procedures for
emergencies;
`(H) establishes fair and impartial procedures for implementation and
enforcement of Organization Standards, either directly or through delegation
to an Affiliated Regional Reliability Entity, including the imposition of
penalties, limitations on activities, functions, or operations, or other
appropriate sanctions;
`(I) establishes procedures for notice and opportunity for public
observation of all meetings, except that the procedures for public
observation may include alternative procedures for emergencies or for the
discussion of information the directors determine should take place in
closed session, such as litigation, personnel actions, or commercially
sensitive information;
`(J) provides for the consideration of recommendations of States and
State commissions; and
`(K) addresses other matters that the Commission may deem necessary or
appropriate to ensure that the procedures, governances, and funding of the
Electric Reliability Organization are just, reasonable, not unduly
discriminatory or preferential, and are in the public interest.
`(5) The Commission shall approve only one Electric Reliability
Organization. If the Commission receives two or more timely applications that
satisfy the requirements of this subsection, the Commission shall approve only
the application it concludes will best implement the provisions of this
section.
`(f) ESTABLISHMENT OF AND MODIFICATIONS OF ORGANIZATION STANDARDS- (1) The
Electric Reliability Organization shall file with the Commission any new or
modified Organization Standards, including any Variances or Entity Rules, and
the Commission shall follow the procedures under paragraph (2) for review of
that filing. Submissions shall include:
`(A) a concise statement of the purpose of the proposal, and
`(B) a record of any proceedings conducted with respect to the
proposal.
`(2) The Commission shall provide notice of the filing of the proposal and
afford interested persons a reasonable time, but not more than 30 days, to
submit comments. The Commission, after taking into consideration any submitted
comments, shall approve or disapprove the proposal not later than 60 days
after the deadline for the submission of comments except that--
`(A) the Commission may extend the 60-day period for an additional 90
days for good cause, and
`(B) if the Commission does not act to approve or disapprove a proposal
within the periods set forth in this paragraph, the proposal shall go into
effect, without prejudice to the authority of the Commission thereafter to
suspend or modify the proposal in accordance with the standards and
requirements of this section.
Proposals approved by the Commission take effect according to their terms
but not earlier than 30 days after the effective date of the Commission's
order, except as provided in paragraph (3).
`(3)(A) In the exercise of its review responsibilities under this
subsection, the Commission shall give due weight to the technical expertise of
the Electric Reliability Organization with respect to the content of a new or
modified Organization Standard, but shall not defer to the Organization with
respect to the effect of the standard on competition. The Commission shall
approve a proposed new or modified Organization Standard if it determines the
proposal to be just, reasonable, not unduly discriminatory or preferential,
and in the public interest.
`(B) The Commission, either upon complaint or upon its own motion, shall
suspend an existing Organization Standard, if it determines the standard to be
unjust, unreasonable, unduly discriminatory or preferential, or not in the
public interest.
`(C) An existing or proposed Organization Standard which is disapproved or
suspended in whole or in part by the Commission shall be remanded to the
Electric Reliability Organization for further consideration.
`(D) The Commission, on its own motion or upon complaint, may direct the
Electric Reliability Organization to develop an Organization Standard,
including modification to an existing Organization Standard, addressing a
specific matter by a date certain if the Commission considers a new or
modified Organization Standard necessary or appropriate to further the
purposes of this section. The Electric Reliability Organization shall file any
new or modified Organization Standard in accordance with this subsection.
`(E) An Affiliated Regional Reliability Entity may propose a Variance or
Entity Rule to the Electric Reliability Organization under subsection (i)(3).
The Affiliated Regional Reliability Entity may request that the Electric
Reliability Organization expedite consideration of the proposal, and may file
a notice of this request with the Commission, if expedited consideration is
necessary to provide for Bulk-Power System reliability. If the Electric
Reliability Organization fails to adopt the Variance or Entity Rule, either in
whole or in part, the Affiliated Regional Reliability Entity may request that
the Commission review such action. If the Commission determines, after its
review of such a request, that the action of the Electric Reliability
Organization did not conform to the applicable standards and procedures
approved by the Commission, or if the Commission determines that the Variance
or Entity Rule is just, reasonable, not unduly discriminatory or preferential,
and in the public interest, and that the Electric Reliability Organization has
unreasonably rejected the proposed Variance or Entity Rule, the Commission may
remand the proposed Variance or Entity Rule for further consideration by the
Electric Reliability Organization or may direct the Electric Reliability
Organization or the Affiliated Regional Reliability Entity to develop a
Variance or Entity Rule consistent with that requested by the Affiliated
Regional Reliability Entity. Such a Variance or Entity Rule proposed by an
Affiliated Regional Reliability Entity shall be submitted to the Electric
Reliability Organization for review and filing with the Commission in
accordance with the procedures specified in this subsection.
`(F) Notwithstanding any other provision of this subsection, a proposed
Organization Standard or amendment shall take effect according to its terms if
the Electric Reliability Organization determines that an emergency exists
requiring that the proposed Organization Standard or amendment take effect
without notice or comment. The Electric Reliability Organization shall notify
the Commission immediately following this determination and shall file the
emergency Organization Standard or amendment with the Commission not later
than five days following the determination and shall include in the filing an
explanation of the need for the emergency standard. Subsequently, the
Commission shall provide notice of the emergency Organization Standard or
amendment for comment, and shall follow the procedures set out in paragraphs
(2) and (3) for review of a new or modified Organization Standard. An
emergency Organization Standard that has gone into effect shall remain in
effect unless and until suspended or disapproved by the Commission. If the
Commission determines at any time that the emergency Organization Standard or
amendment is not necessary, the Commission may suspend the emergency
Organization Standard or amendment.
`(4) All Users of the Bulk-Power System shall comply with any Organization
Standard that takes effect under this section.
`(g) COORDINATION WITH CANADA AND MEXICO- The Electric Reliability
Organization shall take all appropriate steps to gain recognition in Canada
and Mexico. Subject to the President's authority with respect to foreign
policy, the United States shall use its best efforts to enter into
international agreements with the appropriate governments of Canada and Mexico
to provide for effective compliance with Organization Standards and to provide
for the effectiveness of the Electric Reliability Organization in carrying out
its mission and responsibilities. All actions taken by the Electric
Reliability Organization, any Affiliated Regional Reliability Entity, and the
Commission shall be consistent with the provisions of such international
agreements.
`(h) CHANGES IN PROCEDURES, GOVERNANCE, OR FUNDING- (1) The Electric
Reliability Organization shall file with the Commission any proposed change in
its procedures, governance, or funding, or any changes in the Affiliated
Regional Reliability Entity's procedures, governance or funding relating to
delegated functions, and shall include with the filing an explanation of the
basis and purpose for the change.
`(2) A proposed procedural change may take effect 90 days after filing
with Commission if the change constitutes a statement of policy, practice, or
interpretation with respect to the meaning or enforcement of an existing
procedure. Any other proposed procedural change takes effect only upon a
finding by the Commission, after notice and opportunity for comments, that the
change is just, reasonable, not unduly discriminatory or preferential, is in
the public interest, and satisfies the requirements of subsection (e)(4).
`(3) A change in governance or funding does not take effect unless the
Commission finds that the change is just, reasonable, not unduly
discriminatory or preferential, and is in the public
interest, and satisfies the requirements of subsection (e)(4).
`(4)(A) The Commission, either upon complaint or upon its own motion, may
suspend a procedure or governance or funding provision if it determines the
procedure or provision does not meet the requirements of subsection (e)(4) or
is unjust, unreasonable, unduly discriminatory or preferential, or otherwise
not in the public interest.
`(B) The Commission, upon complaint or upon its own motion, may require
the Electric Reliability Organization to amend the procedures, governance or
funding if the Commission determines that the amendment is necessary to meet
the requirements of this section. The Electric Reliability Organization shall
file the amendment in accordance with paragraph (1) of this subsection.
`(i) DELEGATIONS OF AUTHORITY- (1) The Electric Reliability Organization
shall, upon request by an entity, enter into an agreement with the entity for
the delegation of authority to implement and enforce compliance with
Organization Standards approved by the Commission in a specified geographic
area if the Organization finds that the entity requesting the delegation
satisfies the requirements of subsections (e)(4) (A), (B), (C), (D), (F), and
(K), and if the delegation promotes the effective and efficient implementation
and administration of Bulk-Power System reliability The Electric Reliability
Organization may enter into an agreement to delegate to the entity any other
authority, except that the Electric Reliability Organization shall reserve the
right to set and approve standards for the Bulk-Power System reliability.
`(2) The Electric Reliability Organization shall file with the Commission
any agreement entered into under this subsection and any information the
Commission requires with respect to the Affiliated Regional Reliability Entity
to which authority is to be delegated. The Commission shall approve the
agreement, following public notice and an opportunity for comment, if it finds
that the agreement meets the requirements of paragraph (1), and is just,
reasonable, not unduly discriminatory or preferential, and is in the public
interest. A proposed delegation agreement with an Affiliated Regional
Reliability Entity organized on an Interconnection-wide basis shall be
rebuttably presumed by the Commission to promote the effective and efficient
implementation and administration of Bulk-Power System reliability. No
delegation by the Electric Reliability Organization shall be valid unless
approved by the Commission.
`(3)(A) A delegation agreement entered into under this subsection shall
specify the procedures for an Affiliated Regional Reliability Entity to
propose Entity Rules or Variances for review by the Electric Reliability
Organization.
`(B) With respect to any such proposal that would apply on an
Interconnection-wide basis, the Electric Reliability Organization shall
presume the proposal valid if made by an Interconnection-wide Affiliated
Regional Reliability Entity unless the Electric Reliability Organization makes
a written finding that the proposal--
`(i) was not developed in a fair and open process that provided an
opportunity for all interested parties to participate;
`(ii) has a significant adverse impact on reliability or commerce in
other Interconnections;
`(iii) fails to provide a level of reliability of the Bulk-Power System
within the Interconnection such that it would constitute a serious and
substantial threat to public health, safety, welfare, or national security;
or
`(iv) creates a serious and substantial burden on competitive markets
within the Interconnection that is not necessary for reliability.
`(C) With respect to a proposal that would apply only to part of an
Interconnection, the Electric Reliability Organization shall find the proposal
valid if the Affiliated Regional Reliability Entity or Entities making the
proposal demonstrate that it--
`(i) was developed in a fair and open process that provided an
opportunity for all interested parties to participate;
`(ii) would not have an adverse impact on commerce that is not necessary
for reliability;
`(iii) provides a level of Bulk-Power System reliability adequate to
protect public health, safety, welfare, and national security, and would not
have a significant adverse impact on reliability; and
`(iv) in the case of a Variance, is based on legitimate differences
between regions or between subregions within the Affiliated Regional
Reliability Entity's geographic area.
`(D) The Electric Reliability Organization shall approve or disapprove the
proposal within 120 days, or the proposal is deemed approved. Following
approval of a proposal under this paragraph, the Electric Reliability
Organization shall seek Commission approval pursuant to subsection (f).
Affiliated Regional Reliability Entities may not make requests for approval
directly to the Commission except pursuant to subsection (f)(3)(E).
`(4) If an Affiliated Regional Reliability Entity requests, consistent
with paragraph (1) of this subsection, that the Electric Reliability
Organization delegate authority to it, but is unable within 180 days to reach
agreement with the Electric Reliability Organization with respect to the
requested delegation, the entity may seek relief from the Commission. If,
following notice and opportunity for comment, the Commission determines that
the delegation to the entity would meet the requirements of paragraph (1);
that the delegation would be just, reasonable, not unduly discriminatory or
preferential, and in the public interest; and that the Electric Reliability
Organization has unreasonably withheld the delegation, the Commission may, by
order, direct the Electric Reliability Organization to make the delegation.
`(5)(A) The Commission may, upon its own motion or upon complaint, and
with notice to the appropriate Affiliated Regional Reliability Entity or
Entities, direct the Electric Reliability Organization to propose a
modification to an agreement entered into under this subsection if the
Commission determines that--
`(i) the Affiliated Regional Reliability Entity no longer has the
capacity to carry out effectively or efficiently its implementation or
enforcement responsibilities under that agreement, has failed to meet its
obligations under that agreement, or has violated any provision of this
section,
`(ii) the rules, practices, or procedures of the Affiliated Regional
Reliability Entity no longer provide for fair and impartial discharge of its
implementation or enforcement responsibilities under the agreement,
`(iii) the geographic boundary of a transmission entity approved by the
Commission is not wholly within the boundary of an Affiliated Regional
Reliability
Entity and such difference is inconsistent with the effective and efficient
implementation and administration of Bulk-Power System reliability, or
`(iv) the agreement is inconsistent with another delegation agreement as
a result of actions taken under paragraph (4) of this subsection.
`(B) Following an order of the Commission issued under paragraph (5)(A) of
this subsection, the Commission may suspend the affected agreement if the
Electric Reliability Organization or the Affiliated Regional Reliability
Entity does not propose an appropriate and timely modification. If the
agreement is suspended, the Electric Reliability Organization shall assume the
previously delegated responsibilities. The Commission shall allow the Electric
Reliability Organization and the Affiliated Regional Reliability Entity an
opportunity to appeal the suspension.
`(j) ORGANIZATION MEMBERSHIP- Every System Operator shall be a member of
the Electric Reliability Organization and shall be a member of any Affiliated
Regional Reliability Entity operating under an agreement effective pursuant to
subsection (i) applicable to the region in which the System Operator operates
or is responsible for the operation of a Bulk-Power System facility.
`(k) FEDERAL POWER SYSTEMS AND NUCLEAR REGULATORY COMMISSION- Any actions
taken under this section by the Commission, the Electric Reliability
Organization, and any Affiliated Regional Reliability Entity shall be
consistent with any statutory or treaty obligations of a Federal Power
Marketing Administration, the Tennessee Valley Authority, the Bureau of
Reclamation and the Corps of Engineers and any Nuclear Regulatory Commission
requirements.
`(l) INJUNCTIONS AND DISCIPLINARY ACTION- (1) Consistent with the range of
actions approved by the Commission under subsection (e)(4)(H), the Electric
Reliability Organization may impose a penalty; may limit activities,
functions, or operations; or may take other disciplinary action the Electric
Reliability Organization finds appropriate against a User of the Bulk-Power
System if the Electric Reliability Organization, after notice and an
opportunity for interested parties to be heard, issues a finding in writing
that the User of the Bulk-Power System has violated an Organization Standard
approved by the Commission. The Electric Reliability Organization shall
immediately notify the Commission of any disciplinary action imposed with
respect to an act or failure of a User of the Bulk-Power System that affected
or threatened to affect Bulk-Power System facilities located in the United
States, and the sanctioned party shall have the right to seek modification or
rescission by the Commission of such disciplinary action. If the Organization
finds it necessary to prevent a serious threat to reliability, the
Organization may seek injunctive relief in a Federal Court in the district in
which the affected facilities are located.
`(2) A disciplinary action taken under paragraph (1) may take effect not
earlier than the 30th day after the Electric Reliability Organization files
with the Commission its written finding and record of proceedings before the
Electric Reliability Organization and the Commission posts the Organization's
written finding, unless the Commission, on its own motion or upon application
by the User of the Bulk-Power System which is the subject of the action,
suspends the action. The action shall remain in effect or remain suspended
unless and until the Commission, after notice and opportunity for hearing,
affirms, sets aside, modifies, or reinstates the action, but the Commission
shall conduct such a hearing under procedures established to ensure expedited
consideration of the action taken.
`(3) The Commission, on its own motion, may order compliance with an
Organization Standard and may impose a penalty; may limit activities,
functions, or operations; or may take such other disciplinary action as the
Commission finds appropriate, against a User of the Bulk-Power System with
respect to actions affecting or threatening to affect Bulk-Power System
facilities located in the United States if the Commission finds, after notice
and opportunity for a hearing, that the User of the Bulk-Power System has
violated or threatens to violate an Organization Standard.
`(4) The Commission may take such action as is necessary against the
Electric Reliability Organization or an Affiliated Regional Reliability Entity
to assure compliance with an Organization Standard, or any Commission order
affecting the Electric Reliability Organization or an Affiliated Regional
Reliability Entity.
`(m) RELIABILITY REPORTS- The Electric Reliability Organization shall
conduct periodic assessments of the reliability and adequacy of the
interconnected Bulk-Power System in North America and shall report annually to
the Secretary of Energy and the Commission its findings and recommendations
for monitoring or improving system reliability and adequacy.
`(n) ASSESSMENT AND RECOVERY OF CERTAIN COSTS- The reasonable costs of the
Electric Reliability Organization, and the reasonable costs of each Affiliated
Regional Reliability Entity that are related to implementation and enforcement
of Organization Standards or other requirements contained in a delegation
agreement, approved under subsection (i), shall be assessed by the Electric
Reliability Organization and each Affiliated Regional Reliability Entity,
respectively, taking into account the relationship of costs to each region and
based on an allocation that reflects an equitable sharing of the costs among
all end-users. The Commission shall provide by rule for the review of such
costs and allocations, pursuant to the standards in this subsection and
subsection (e)(4)(F).
`(o) RULE OF REASON STANDARD- In any action under the antitrust laws, the
conduct of the Electric Reliability Organization, of an Affiliated Regional
Reliability Entity operating under an agreement in effect under subsection
(i), or a member of the Electric Reliability Organization or an Affiliated
Regional Reliability Entity, to the extent such conduct is undertaken to
develop or implement an Organization Standard which is approved by the
Commission under subsection (f), shall not be deemed illegal per se. Such
conduct shall be judged on the basis of its reasonableness, taking into
account all relevant factors affecting competition. For purposes of this
section, `antitrust laws' has the meaning given it in subsection (a) of the
first section of the Clayton Act, except that such term includes section 5 of
the Federal Trade Commission Act to the extent that such section 5 applies to
unfair methods of competition.'.
(b) CONFORMING AMENDMENTS- (1) Section 316 of the FPA is amended by
striking `or 214' each place it appears and inserting `214, or 218'.
(2) Section 316A of the FPA is amended by striking `section 211, 212, 213,
or 214' each time it appears and inserting `Part II of this Act'.
SEC. 602. ELECTRICITY OUTAGE INVESTIGATION.
Title II of the Department of Energy Organization Act is amended by adding
the
following new section after section 213 as added by section 408:
`SEC. 214. ELECTRICITY OUTAGE INVESTIGATION BOARD.
`(a) ESTABLISHMENT; MEMBERSHIP; TERMS- The Secretary shall establish an
Electricity Outage Investigation Board. The Board shall consist of five
members, appointed by the Secretary. Each member shall serve a term of three
years.
`(b) DUTIES- The Board shall--
`(1) investigate a major bulk-power system failure in the United States
to determine its causes,
`(2) report to the Secretary the results of the investigation, and
`(3) recommend to the Secretary actions to minimize the possibility of a
future bulk-power system failure.
`(c) FEDERAL ADVISORY COMMITTEE ACT- The Board shall not be subject to the
Federal Advisory Committee Act (5 U.S.C. Appx.).'.
SEC. 603. ADDITIONAL TRANSMISSION CAPACITY.
Section 209 of PURPA is amended by adding a new subsection after
subsection (c):
`(d) CONSIDERATION OF ADDITIONAL TRANSMISSION CAPACITY- The Secretary may
call and chair a meeting of representatives of States in a region in order to
discuss provision of additional transmission capacity and related concerns in
such region.'.
TITLE VII--ENVIRONMENTAL PROTECTION
SEC. 701. NITROGEN OXIDES CAP AND TRADE PROGRAM.
(a) PURPOSE- The purpose of this section is to facilitate the
implementation of a regional strategy for reducing ambient concentrations of
ozone through regional reductions in emissions of NOX.
(b) DEFINITIONS- For purposes of this section--
(1) the term `Administrator' means the Administrator of the
Environmental Protection Agency,
(2) the term `NOX' means oxides of nitrogen,
(3) the term `NOX allowance' means an authorization to emit a
specified amount of NOX into the atmosphere, and
(4) the term `NOX allowance cap and trade program' means a
program under which, in accordance with regulations issued by the
Administrator, the Administrator establishes the maximum number of
NOX allowances that may be allocated for specified control periods,
allocates or authorizes a State to allocate NOX allowances, allows
the transfer of NOX allowances for use in States subject to such a
program, requires monitoring and reporting of NOX emissions that meet
the requirements of section 412 of the Clean Air Act, and prohibits, and
requires penalties and offsets for, any emissions of NOX in excess of
the number of NOX allowances held.
(c) PROGRAM IMPLEMENTATION- (1) If the Administrator determines under
section 110(a)(2)(D) of the Clean Air Act that any source or other type of
emissions activity in a State emits NOX in amounts that will contribute
significantly to nonattainment in, or interfere with maintenance by, any other
State with respect to any national ambient air quality standard for ozone, the
Administrator shall establish by regulation, within 12 months of the
determination for primary standards and as expeditiously as practicable for
secondary standards, and shall administer a NOX allowance cap and trade
program in all States in which such a source or other type of emissions
activity is located.
(2) Any NOX allowance cap and trade program shall contribute to
providing for emissions reductions that mitigate adequately the contribution
or interference and shall be taken into account by the Administrator in
determining compliance with section 110(a)(2)(D) of the Clean Air Act.
(3) For purposes of sections 113, 114, 304, and 307 of the Clean Air Act,
regulations promulgated under this section shall be treated as regulations
promulgated under title IV of the Clean Air Act (entitled Acid Deposition
Control). A requirement of regulations promulgated under this section is
considered an `emission standard' or `emission limitation' within the meaning
of section 302 of the Clean Air Act and an `emission standard or limitation
under this Act' within the meaning of section 304 of the Clean Air Act.
TITLE VIII--FEDERAL POWER SYSTEMS
Subtitle A--Tennessee Valley Authority
SEC. 801. DEFINITION.
Section 3 of the Federal Power Act is amended by adding after paragraph
(25) the following new paragraph:
`(26) `TVA' means the Tennessee Valley Authority, an agency and
instrumentality of the United States created by the Tennessee Valley
Authority Act of 1933;'.
SEC. 802. APPLICATION OF FEDERAL POWER ACT.
Part II of the Federal Power Act is amended by adding the following new
section after section 201:
`APPLICATION TO FEDERAL POWER SYSTEMS
`SEC. 201A. (a) After January 1, 2003, sections 202 (h) and (i), 203 (with
respect to dispositions of transmission facilities), 205, 206, 208, and 210
through 213 of this Part and sections 301 through 304, 306, 307 (except the
last sentence of paragraph (c)), 308, 309, 313, and 317 of Part III apply to
TVA's transmission facilities and transmission of electric energy and the
provision of necessary associated services over the TVA Transmission System,
except that any determination made by the Commission under those provisions as
to whether an action or matter is just, reasonable, or not unduly
discriminatory or preferential shall be subject to any other laws applicable
to TVA, including the requirement that TVA recover its costs.'.
SEC. 803. ANTITRUST COVERAGE.
The Tennessee Valley Authority Act of 1933 (16 U.S.C. 831-831ee) is
amended by adding the following after section 21:
`SEC. 21a. ANTITRUST LAWS.
`(a) Subject to subsection (b), effective January 1, 2003, the Tennessee
Valley Authority is subject to the antitrust laws of the United States with
respect to the operation of its electric power system. For purposes of this
section, `antitrust laws,' has the meaning given it in subsection (a) of the
first section of the Clayton Act (15 U.S.C. 12(a)), except that it includes
the Act of June 19, 1936 (15 U.S.C. 13 et seq.), commonly known as the
Robinson-Patman Act, and
section 5 of the Federal Trade Commission Act (15 U.S.C. 45), to the extent
that section 5 applies to unfair methods of competition.
`(b) No damages, interest on damages, costs, or attorney's fees may be
recovered under section 4, 4A, or 4C of the Clayton Act (15 U.S.C. 15, 15a, or
15c) from the Tennessee Valley Authority.'.
SEC. 804. TVA POWER SALES.
The Tennessee Valley Authority Act of 1933 (16 U.S.C. 831-831ee) is
amended by adding the following after section 15d:
`SEC. 15e. SALE OF ELECTRIC POWER AT WHOLESALE AND RETAIL.
`(a) For the purposes of this section:
`(1) `distributor' means an electric power system that--
`(A) is owned by a cooperative organization or by a municipality or
other public body (or any successor in interest), and
`(B) on the date of enactment of this section, purchased electric
power at wholesale from the Tennessee Valley Authority under an
all-requirements power contract; and
`(2) `distributor service area' means the geographic area within which a
distributor is authorized on the date of enactment of this section to
provide electric power at retail to the ultimate consumer.
`(b)(1) Effective January 1, 2003, the Tennessee Valley Authority may sell
electric power at wholesale to any person.
`(2) Beginning January 1, 2003, the Tennessee Valley Authority shall not
sell power at retail, except it may sell power to a retail customer who
consumes that power within a distributor service area, if--
`(A) the customer (or predecessor in interest) purchased electric power
directly from the Tennessee Valley Authority as a retail customer on the
date of enactment of this section, or
`(B) the distributor's firm power purchases from the Tennessee Valley
Authority are 50 percent or less of its total retail sales, or
`(C) the distributor agrees that the Tennessee Valley Authority can sell
power to the customer.
Nothing in this paragraph shall prohibit the Tennessee Valley Authority
from continuing to serve a retail customer which the Tennessee Valley
Authority was serving on the date of enactment of this section that is not
located within a distributor service area.
`(3) Notwithstanding any other provision of law, the rates, terms, and
conditions of retail electric service, and rates for the use of distribution
lines are not subject to regulation by the Tennessee Valley Authority.'.
SEC. 805. RENEGOTIATION OF LONG-TERM POWER CONTRACTS.
Section 15e of the Tennessee Valley Authority Act of 1933 (16 U.S.C.
831-831ee) as added by section 804 of this Act is amended by adding the
following after subsection (b):
`(c)(1) Within one year following the date of enactment of this section,
the Tennessee Valley Authority and the distributors shall renegotiate their
existing long-term contracts with respect to--
`(B) the length of the termination notice;
`(C) the amount of power a distributor may purchase from a supplier
other than the Tennessee Valley Authority beginning January 1, 2003, and
access to the Tennessee Valley Authority transmission system for that power;
and
`(D) stranded cost recovery.
`(2) If the parties are unable to reach agreement with regard to any of
the issues under paragraph (1) within the one-year period set forth in
paragraph (1), they shall submit the issue in dispute to the Federal Energy
Regulatory Commission for final resolution.'.
SEC. 806. STRANDED COST RECOVERY.
(a) Section 206 of the Federal Power Act is amended by adding the
following new subsection after subsection (e) as added by section 301(b) of
this Act:
`(f)(1) Within one year of the date of enactment of this subsection, the
Commission shall promulgate regulations with respect to TVA's recovery of
stranded costs (as defined by the Commission) imposed on TVA resulting from
wholesale or retail competition. These regulations shall provide that--
`(A) a customer that did not cause costs to be stranded is not obligated
to pay those costs on behalf of other customers;
`(B) no stranded investment recovery charge shall have the effect of
unfairly shifting costs among distributors or TVA retail customers;
`(C) for a stranded cost recovery charge TVA assesses on a retail or
wholesale customer, TVA shall unbundle the charge from other retail or
wholesale rates applicable to that customer and state the charge separately
on the customer's bill; and
`(D) TVA shall not impose a stranded cost recovery charge after
September 30, 2007, unless the person against whom the charge is assessed
agrees otherwise.
`(2) After notice and opportunity for comment, TVA shall submit a stranded
cost recovery plan to the Commission for review and approval.
`(3) The Commission shall review the recovery plan and shall approve the
recovery plan if the Commission determines the plan to be just and reasonable
and not unduly discriminatory or preferential and consistent with the
requirements of regulations issued under paragraph (1). TVA may recover
stranded costs only pursuant to a recovery plan approved by the
Commission.'.
(b) Section 15e of the Tennessee Valley Authority Act of 1933 (16 U.S.C.
831-831ee) as added by section 804 of this Act is amended by adding the
following after subsection (c) as added by section 805 of this Act:
`(d) Amounts recovered by the Tennessee Valley Authority as stranded cost
recovery charges under section 206(f) of the Federal Power Act shall be used
to pay down TVA's debt to the extent determined by the TVA Board to be
consistent with the proper financial management of the TVA power system,
provided that TVA may not use amounts recovered to pay for additions to TVA's
generating capacity.'.
(c) Section 9106 of Title 31, United States Code, is amended by adding the
following new subsection after subsection (b):
`(c) Beginning in Fiscal Year 2003, as part of the annual management
report submitted by the Tennessee Valley Authority (TVA) to Congress under
this section, TVA shall also specifically report:
`(A) the status of TVA's long-range financial plans and the progress
toward its goal of competitively priced power, and a general discussion of
TVA's prospects on meeting the objectives of the Ten Year Business Outlook
issued on July 22, 1997;
`(B) any changes in assumptions since the previous report that may have
a material effect on TVA's long-range financial plans;
`(C) the source of funds used for any capacity additions;
`(D) the use or other disposition of amounts recovered by TVA under this
section;
`(E) the amount by which TVA's publicly-held debt was reduced; and
`(F) the projected amount by which TVA's publicly-held debt will be
reduced.'.
SEC. 807. CONFORMING AMENDMENTS.
Effective January 1, 2003--
(1) section 15d(a) of the Tennessee Valley Authority Act of 1933 (16
U.S.C. 831n-4(a)), which limits the sales or delivery of electric power by
TVA or distributors outside a certain geographic area, is repealed;
(2) subsections (f) and (j) of section 212 of the Federal Power Act (16
U.S.C. 824k (f) and (j) are repealed; and
(3) the third proviso of section 10 of the Tennessee Valley Authority
Act of 1933 (16 U.S.C. 831i) and the second and third provisos of section 12
of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831k) do not apply
to a wholesale sale of electric energy by the Tennessee Valley
Authority.
Subtitle B--Bonneville Power Administration
SEC. 811. DEFINITIONS.
Section 3 of the Federal Power Act is amended by adding the following new
paragraphs after paragraph (26) as added by section 801 of this Act:
`(27) `Bonneville Administrator' means the Administrator of the
Bonneville Power Administration;
`(28) `Pacific Northwest' has the meaning given that term in section
3(14) of the Pacific Northwest Electric Power Planning and Conservation Act
(16 U.S.C. 839a(14));
`(29) `Bonneville Transmission System' means transmission facilities
owned or leased by the United States, acting through the Bonneville
Administrator, and operated by the Bonneville Administrator or another
entity under section 202 (h) or (i) of this Act;'.
SEC. 812. APPLICATION OF FEDERAL POWER ACT.
Section 201A of the Federal Power Act as added by section 802 of this Act
is amended by adding the following new subsection after subsection (a):
`(b) BONNEVILLE POWER ADMINISTRATION- After September 30, 2001; sections
202 (h) and (i), 203 (with respect to dispositions of transmission
facilities), 205, 206, 208, and 210 through 213 of this Part and sections 301
through 304, 306, 307 (except the last sentence of paragraph (c)), 308, 309,
313, and 317 of Part III apply to transmission facilities and transmission of
electric energy and the provision of necessary associated services over the
Bonneville Transmission System, provided that--
`(1) any determination made under those sections as to whether an action
or matter is just, reasonable, not unduly discriminatory or preferential
shall be subject to--
`(A) phasing in Commission-ordered changes in transmission rates or
charges that would cause unreasonable cost shift among users of the
Bonneville Transmission System if implemented at once;
`(B) mitigating unreasonable adverse impacts on remote transmission
customers in the Pacific Northwest that would otherwise result from
Commission-ordered changes in the historic treatment of costs to acquire
transmission to serve customers historically served by General Transfer
Agreements entered into between the Bonneville Administrator and other
transmission providers;
`(C) complying with requirements of other laws applicable to the
Bonneville Administrator;
`(D) assuring the Bonneville Administrator's transmission rates and
charges are established sufficient to--
`(i) recover existing and future Federal investment in the
Bonneville Transmission System over a reasonable number of years after
first meeting all the Bonneville Administrator's other transmission
costs and expenses; and
`(ii) produce the revenues necessary to assure timely payment of all
transmission related costs and expenses, including revenues to establish
reserves;
`(E) rules established by the Commission to--
`(i) assure transmission access is provided over the Bonneville
Transmission System for hydroelectric power that must be generated and
transmitted at a particular time in order to reduce spill and levels of
dissolved nitrogen gas harmful to fish, and
`(ii) govern compensation to adversely affected transmission users
when capacity is made available for transmission of hydroelectric power
in those circumstances; and
`(F) subsection 205(g) of this Act; and
`(2) these sections shall not apply to--
`(A) the Bonneville Administrator's activities other than transmission
of electric energy and provision of necessary associated services over the
facilities of the Bonneville Transmission System; or
`(B) a contract in effect on the date of enactment of this Section,
except for rates which are adjustable by the Administrator under the
contract; a Treaty of the United States; or a contract concerning the
physical delivery of energy and capacity entered into by entities
designated pursuant to such a Treaty.'.
SEC. 813. SURCHARGE ON TRANSMISSION RATES TO RECOVER OTHERWISE
NON-RECOVERABLE COSTS.
Section 205 of the Federal Power Act is amended by adding the following
after subsection (f):
`(g)(1) Subject to the requirements of paragraph (2), the Bonneville
Administrator shall propose and the Commission shall establish a mechanism
pursuant to this section that enables the Administrator to place a surcharge
on rates or charges for transmission services over the Bonneville Transmission
System when necessary in order to recover power costs unable to be recovered
through power revenues in time to meet the cost recovery requirements of
section 7(a) of the Pacific Northwest Electric Power Planning and Conservation
Act (16 U.S.C. 839e(a)(1)).
`(2) The transmission surcharge mechanism set forth in paragraph (1)
shall--
`(A) recover not more than $600 million in total and no more than $100
million in any fiscal year;
`(B) be available only between October 1, 2001, and October 1,
2016;
`(C) be implemented by the Bonneville Administrator only when the
Bonneville Administrator projects that available financial reserves
attributable to the power function will be less than $150 million; and
`(D) to the fullest extent possible, be designed and established to
recover the costs from transmission users in a manner that--
`(i) minimizes any effect on transmission users' choices among
competing suppliers or products,
`(ii) does not apply to use of the Bonneville Transmission System for
power sales outside the Pacific Northwest, and
`(iii) minimizes bypass of the Bonneville Transmission System by
transmission users seeking to avoid the surcharge.
`(3) The Bonneville Administrator shall have sole discretion to determine
whether to implement the cost recovery mechanism established by the Commission
under paragraph (1). Before imposing the surcharge, the Bonneville
Administrator shall conduct a public process in the Pacific Northwest to
receive comment on implementation of the surcharge. As a part of that public
process, the Bonneville Administrator shall make available information
concerning the need for and amount of the surcharge. If the Bonneville
Administrator decides to implement a surcharge, it shall take effect on the
Bonneville Administrator's proposed effective date, but no earlier than sixty
days following the Administrator's filing of the proposed surcharge to the
Commission for approval.
`(4)(A) Within 120 days after the effective date of the surcharge, the
Commission shall approve, reject, or modify the surcharge and communicate its
decision to the Bonneville Administrator. In conducting its review, the
Commission shall not consider the appropriateness of the cost recovery
mechanism established by the Commission under paragraph (1).
`(B) If the Commission rejects or modifies the surcharge, the Commission
may order the Bonneville Administrator to refund, with interest, the portion
of the surcharge the Commission found not justified or the Commission may
authorize the Bonneville Administrator to recover amounts from customers who
underpaid or did not pay the surcharge. If the Commission orders modification
of the Bonneville Administrator's surcharge, such modified charge shall be
effective on the date and for the time period specified by the Commission.
`(5) Any payment of power costs through application of transmission
revenues collected by surcharge or otherwise shall be treated as a loan to the
Bonneville Administrator's power function. The Bonneville Administrator shall
repay the loan as soon as possible from power function revenues once the
Bonneville Administrator is able to meet other power cost recovery and
Treasury repayment obligations on an annual basis using power revenues and, to
the extent practicable, refund such revenues to all transmission customers
charged the surcharge. The borrowed revenues shall bear interest at a rate
determined appropriate by the Commission.
`(6) For the recovery of costs relating to any generation or conservation
resources financed by debt issued by a non-Federal party before October 1,
1998, and secured by an obligation of the Bonneville Administrator to make
payments or net bill power and transmission service that cannot be recovered
through power rates and charges and paid in accordance with the application of
revenues and the priority of payments specified by Section 13(b) of the
Federal Columbia River Transmission System Act of 1974 (16 U.S.C. 838k(b)),
the provisions of this section apply, except for the recovery limitations
under paragraph (2)(A) and the time limits under paragraph (2)(B), but only to
the extent such recovery would have been allow under laws applicable to the
Bonneville Administrator as of October 1, 1998. In reviewing this surcharge
request, the Commission shall apply the standard of review applicable as of
October 1, 1998.'.
SEC. 814. COMPLAINTS.
Section 306 of the Federal Power Act is amended by inserting `agency or
instrumentality of the United States,' after `person,' in the first
sentence.
SEC. 815. REVIEW OF COMMISSION ORDERS.
Section 313 of the Federal Power Act is amended by inserting `agency or
instrumentality of the United States,' after `person.' in the first sentence
in subsection (a).'.
SEC. 816. CONFORMING AMENDMENTS.
(a) Section 201(f) of the Federal Power Act is amended by striking `No'
and inserting `(1) Except as provided in sections 201A and 202(h)-(i), no'.
(b) Section 212(i) of the Federal Power Act (16 U.S.C. 824(i)) is
repealed.
(c) Section 6 of the Federal Columbia River Transmission System Act (16
U.S.C. 838d) is repealed.
(d) Section 9 of the Federal Columbia River Transmission System Act (16
U.S.C. 838g) is amended to read as follows:
`RATES AND CHARGES
`SEC. 9. Schedules of rates and charges for the sale, including
dispositions to a Federal agency, of all electric power made available to the
Administrator pursuant to section 8 of this Act or otherwise acquired shall be
established--
`(1) with a view to encouraging the widest possible diversified use of
electric power at the lowest possible rates to consumers consistent with
sound business principles;
`(2) having regard to the recovery (upon the basis of the application of
such rate schedules to the capacity of the electric facilities of the
projects) of the cost of producing such electric power, including the
amortization of the capital investment allocated to power over a reasonable
period of years and payments provided for in section 11(b)(9) of this Act;
and
`(3) at levels to produce such additional power revenues as may be
required, in the aggregate with all other power revenues of the
Administrator, to pay when due the principal of, premiums, discounts, and
expenses in connection with the issuance of and interest on all bonds issued
and outstanding pursuant to this Act for other than the construction,
acquisition, and replacement of the Federal transmission system, and amounts
required to establish and maintain reserve and other funds and accounts
established in connection therewith.
Electric power rates under this section shall be established by the
Administrator in accordance with section 7 of the Pacific Northwest Electric
Power Planning and Conservation Act.'.
(e) Section 10 of the Federal Columbia River Transmission System Act (16
U.S.C. 838h) is repealed.
(f) Section 6 of the Pacific Northwest Regional Preference Act (16 U.S.C.
837e) is amended by striking the `Federal energy or' in the first sentence and
by striking the second sentence.
(g) Section 7(a)(1) of the Pacific Northwest Electric Power Planning and
Conservation Act (16 U.S.C. 839e(a)(1)) is amended to read as follows:
`(a)(1) The Administrator shall establish, and periodically review and
revise, rates for the sale and disposition of electric power and shall
periodically review and, if necessary, propose revisions to rates for the
transmission of electric power. Rates for the sale and disposition of electric
power shall be established and, as appropriate, revised to recover, in
accordance with sound business principles, the costs associated with the
acquisition and conservation of electric power, including the amortization of
the Federal investment allocable to electric power rates in the Federal
Columbia River Power System (including irrigation electric-power-related costs
required to be repaid out of electric power revenues) over a reasonable period
of years and the other costs and expenses incurred by the Administrator
pursuant to this Act and other provisions of law. Rates for the sale and
disposition of electric power shall be established in accordance with section
9 of the Federal Columbia River Transmission System Act (16 U.S.C. 838g),
section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s), and this
Act.'.
(h) Section 7(a)(2) of the Pacific Northwest Electric Power Planning and
Conservation Act (16 U.S.C. 839e(a)(2)) is amended by--
(1) striking `Rates' and inserting `Power rates';
(2) inserting `and' after the comma in subparagraph (A);
(3) striking `, and' and inserting a period at the end of subparagraph
(B); and
(4) striking subparagraph (C).
(i) Section 7(i) of the Pacific Northwest Electric Power Planning and
Conservation Act (16 U.S.C. 839(i)) is amended by inserting `power'
immediately after `establishing' in the first sentence.
(j) Section 9(d) of the Pacific Northwest Electric Power Planning and
Conservation Act (16 U.S.C. 839f(d)) is amended by striking `transmission
access,' and inserting `power' immediately before `services' in the second
sentence.
(k) Section 9(i)(3) of the Pacific Northwest Electric Power Planning and
Conservation Act (16 U.S.C. 839f(i)(3)) is amended by inserting `power'
immediately before `services' each time it appears, and by striking
`transmission,' in the first sentence.
(l) Section 2(e) of the Bonneville Project Act (16 U.S.C. 832a(e)) is
amended by striking the colon and all that follows and inserting a period.
Subtitle C--Western Area Power Administration and Southwestern Area
Power Administration
SEC. 821. DEFINITIONS.
Section 3 of the Federal Power Act is amended by adding the following new
paragraphs after paragraph (29) as added by subsection 811:
`(30) `SWPA Administrator' means the Administrator of the Southwestern
Power Administration;
`(31) `SWPA Transmission System' means transmission facilities owned or
controlled by the United States and operated by the SWPA Administrator or an
entity with authority over these facilities under section 202 (h) or (i) of
this Act;
`(32) `WAPA Administrator' means the Administrator of the Western Area
Power Administration; and
`(33) `WAPA Transmission System' means transmission facilities owned or
controlled by the United States and operated by the WAPA Administrator or an
entity with authority over these facilities under section 202 (h) or (i) of
this Act.'.
SEC. 822. APPLICATION OF FEDERAL POWER ACT.
Section 201A of the Federal Power Act as added by section 802 of this Act
is amended by adding the following new subsection after subsection (b) as
added by section 812 of this Act:
`(c) WESTERN AREA POWER ADMINISTRATION AND SOUTHWESTERN POWER
ADMINISTRATION- After September 30, 2001, sections 202 (h) and (i), 203 (with
respect to dispositions of transmission facilities), 205, 206, 208, and 210
through 213 of this Part and sections 301 through 304, 306, 307 (except the
last sentence of paragraph (c)), 308, 309, 313, and 317 of Part III apply to
transmission facilities and transmission of electric energy over the SWPA and
WAPA Transmission Systems and the provision of necessary associated services
over the SWPA and WAPA Transmission Systems, provided that--
`(1) any determination made under those sections as to whether an action
or matter is just, reasonable, not unduly discriminatory or preferential
shall be subject to--
`(A) phasing in Commission-ordered changes in transmission rates or
charges that would cause unreasonable cost shifts among users of the SWPA
and WAPA Transmission Systems if implemented at once;
`(B) complying with requirements of other laws applicable to the SWPA
and WAPA Administrators;
`(C) assuring the transmission rates and charges of the SWPA and WAPA
Administrators are established sufficient to--
`(i) recover existing and future Federal investment in the
transmission system over a reasonable number of years after first
meeting all other transmission costs and expenses; and
`(ii) produce the revenues necessary to assure timely payment of all
transmission related costs and expenses, including revenues to establish
reserves;
`(D) subsection 205(h) of this Act; and
`(E) permitting the WAPA Administrator to establish more than one rate
for the transmission facilities of its regions or projects; and
`(2) these sections shall not apply to--
`(A) activities of the SWPA and WAPA Administrators other than
transmission of electric energy and provision of necessary associated
services over the facilities of their respective systems; or
`(B) a contract in effect on the date of enactment of this Act, except
for rates which are adjustable by the Administrator under the
contract.'.
SEC. 823. SURCHARGE ON TRANSMISSION RATES TO RECOVER OTHERWISE
NON-RECOVERABLE COSTS.
Section 205 of the Federal Power Act is amended by adding the following
after subsection (g) as added by section 814 of this Act:
`(h)(1) the Commission shall establish rules for Commission approval of a
surcharge on rates or charges for transmission services over the SWPA and WAPA
transmission systems, including a reasonable limitation on amounts to be
recovered under the surcharge and such other rules necessary to ensure that
the surcharge minimizes any effect of transmission users' choice among
competing suppliers or products and reflects cost causation, in order to
recover power costs unable to be recovered through power revenues in time to
meet statutory or regulatory cost recovery requirements.
`(2) The SWPA and WAPA Administrators shall have sole discretion to
determine whether to implement the cost recovery mechanism established by the
Commission under paragraph (1) for their respective transmission systems.
Before imposing the surcharge, the Administrator shall conduct a public
process to receive comment on implementation of the surcharge. As a part of
that public process, the Administrator shall make available information
concerning the need for and amount of the surcharge. If the Administrator
decides to implement a surcharge, it shall take effect on the Administrator's
proposed effective date, but no earlier than sixty days following the
Administrator's filing of the proposed surcharge to the Commission for
approval.
`(3)(A) Within 120 days after the effective date of the surcharge, the
Commission shall approve, reject, or modify the surcharge and communicate its
decision to the Administrator. In conducting its review, the Commission shall
not consider the appropriateness of the cost recovery mechanism established by
the Commission under paragraph (1).
`(B) If the Commission rejects or modifies the surcharge, the Commission
may order the Administrator to refund, with interest, the portion of the
surcharge the Commission found not justified or the Commission may authorize
the Administrator to recover amounts from customers who underpaid or did not
pay the surcharge. If the Commission orders modification of the
Administrator's surcharge, such modified charge shall be effective on the date
and for the time period specified by the Commission.
`(4) Any payment of power costs through application of transmission
revenues collected by surcharge or otherwise shall be treated as a loan to the
Administrator's power function. The Administrator shall repay the loan as soon
as possible from power function revenues once the Administrator is able to
meet the power cost recovery and Treasury repayment obligations on an annual
basis using power revenues, and, to the extent practicable, refund such
revenues to all transmission customers charged the surcharge. The borrowed
revenues shall bear interest at a rate determined appropriate by the
Commission.'.
SEC. 824. CONFORMING AMENDMENTS.
(a) Section 302(a)(1) of the Department of Energy Organization Act (42
U.S.C. 7152) is amended by--
(1) striking `There' and inserting in its place `Except for the
authority addressed in paragraph (G) below, there', and
(2) adding the following new subparagraph after subparagraph (E):
`(F) Authority for the approval, rejection, and modification of
transmission rates for the Southwestern and Western Area Power
Administrations is transferred to the Federal Energy Regulatory
Commission.'.
(b) Section 221 of the Reclamation Reform Act of 1982 (43 U.S.C. 390uu) is
amended by--
(1) striking `executed pursuant to Federal reclamation law', and
(2) inserting `as defined in section 202 of this Act' after
`contract'.
TITLE IX--OTHER PROVISIONS
SEC. 901. TREATMENT OF NUCLEAR DECOMMISSIONING COSTS IN BANKRUPTCY.
Section 523 of title 11, United States Code (section 523 of the Bankruptcy
Code of 1978), is amended by adding the following new subsection after
subsection (e):
`(f) Obligations to comply with, and claims resulting from compliance
with, Nuclear Regulatory Commission regulations or orders governing the
decontamination and decommissioning of nuclear power reactors licensed under
section 103 or 104 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2133 and
2134(b)) shall be given priority and shall not be rejected, avoided, or
discharged under title 11 of the United States Code or in any liquidation,
reorganization, receivership, or other insolvency proceeding under State or
Federal law.'.
SEC. 902. ENERGY INFORMATION ADMINISTRATION STUDY OF IMPACTS OF COMPETITION
IN ELECTRICITY MARKETS.
Section 205 of the Department of Energy Organization Act (42 U.S.C. 7135)
is amended by adding after subsection (1) the following new subsection:
`(m)(1) The Administrator shall collect and publish information regarding
the impact of wholesale and retail competition on the electric power industry
and consumers. The Administrator shall prescribe forms for collecting this
information. Information to be collected may include, but is not limited
to--
`(A) the ownership and control of electric generation, transmission,
distribution, and related facilities;
`(B) electricity consumption and demand;
`(C) the transmission, distribution, and delivery of electric
services;
`(D) the price of competitive electric services;
`(E) the costs, revenues, and rates of regulated electric
services;
`(F) the reliability of the electric generation and transmission system,
including the availability of adequate generation and transmission capacity
to meet load requirements, generation and transmission capacity additions
and retirements, and fuel suppliers and stocks for electric
generation;
`(G) electric energy efficiency programs and services and their impacts
on energy consumption;
`(H) the development and use of renewable electric energy resources;
and
`(I) research, development and demonstration activities to improve the
nation's electric system.
`(2) In carrying out the purposes of this subsection, the Administrator
shall take into account reporting burdens and the protection of proprietary
information as required by law.'.
SEC. 903. ANTITRUST SAVINGS CLAUSE.
This Act and the amendments made by this Act shall not be construed to
modify, impair, or supersede the operation of the antitrust laws. For purposes
of this section, `antitrust laws' has the meaning given it in subsection (a)
of the first section of the Clayton Act (15 U.S.C. 12(a)), except that it
includes section 5 of the Federal Trade Commission Act (15 U.S.C. 45), to the
extent that section 5 applies to unfair methods of competition.
SEC. 904. ELIMINATION OF ANTITRUST REVIEW BY THE NUCLEAR REGULATORY
COMMISSION.
Section 105 of the Atomic Energy Act of 1954 (42 U.S.C. 2135) is amended
by adding the following after subsection c.:
`d. Following the effective date of this subsection, subsection 105 c.
shall not apply to any pending or future application filed for a license to
construct or operate a utilization facility under sections 103 or 104 b. This
Act shall not affect the Commission's authority to enforce antitrust
conditions included in licenses issued under sections 103 or 104 b. before the
date of enactment of this subsection.'.
SEC. 905. ENVIRONMENTAL LAWS SAVINGS CLAUSE.
Nothing in this Act alters or affects environmental requirements imposed
by Federal or State law, including, but not limited to, the Clean Air Act (42
U.S.C. 7401 et seq.); the Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.); the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601 et seq.); the Federal Power Act (16
U.S.C 791a et seq.); and the Endangered Species Act (16 U.S.C. 1531 et
seq.).
SEC. 906. GENERATING PLANT EFFICIENCY STUDY.
Part C of title VI of the Department of Energy Organization Act is amended
by adding after section 662, the following new section:
`GENERATING PLANT EFFICIENCY STUDY
`SEC. 663. Within three years following the date of enactment of this
section, the Secretary shall issue a report comparing the impact of wholesale
and retail competition on the efficiency of new and existing electric
generating facilities.'.
SEC. 907. CONFORMING AMENDMENTS.
(a) The Table of Contents of PURPA is amended by--
(1) inserting after the listing for section 117 under subtitle B of
title I:
`Sec. 118. Authority to impose reciprocity requirements.
`Sec. 119. Aggregation for purchase of retail electric energy.
`Sec. 119A. Consumer information disclosure.
`Sec. 119B. Access to electric service for low-income consumers.
`Sec. 119C. Residential electricity consumer database.
`Sec. 119D. Model code for retail suppliers.
`Sec. 119E. Model code for electric utility workers.', and
(2) inserting after the listing for section 608:
`Sec. 609. Retail competition.
`Sec. 610. Public Benefits Fund.
`Sec. 611. Federal renewable portfolio standard.
`Sec. 612. Net metering for renewable energy.
`Sec. 613. Interconnections for certain facilities.'.
(b) The Table of Contents of the Energy Policy Act of 1992 is amended by
inserting after the listing for section 2606:
`Sec. 2607. Tribal electricity assistance.'.
(c) The Table of Contents of the Department of Energy Organization Act is
amended by--
(1) inserting after the listing for section 212:
`Sec. 213. Office of Indian Energy Policy and Programs.
`Sec. 214. Electricity Outage Investigation Board.', and
(2) inserting after the listing for section 662:
`Sec. 663. Generating plant efficiency study.'.
END