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SEC. 109. PROHIBITION OF POWER PLANT BAILOUTS.

(a) PROHIBITION- It shall be unlawful for any Federal or State authority to require consumers to subsidize, directly or indirectly, the costs of owning or operating any power plant owned by an investor-owned company.

(b) EXEMPTION- Subsection (a) shall not apply to any facility or power plant that qualifies for support from the National Electric Public Benefit Fund or that produces renewable energy credits.

(c) SAVINGS CLAUSE- Nothing in this section affects the rights and remedies of any party with respect to the purchase of electricity or capacity from or to a facility determined to be a qualifying small power production facility or a qualifying cogeneration facility under section 210 of the Public Utility Regulatory Policies Act of 1978 pursuant to any contract or obligation to purchase or to sell electricity or capacity, including the right to recover the costs of purchasing such electricity or capacity.

(d) ESCROW- On the effective date of this Act, every investor-owned company that holds a license to operate a nuclear reactor shall place in escrow $1,000,000,000 per reactor to cover costs for nuclear reactor decommissioning, $500,000,000 per reactor for low-level radioactive waste disposal, and $500,000,000 per reactor for high-level radioactive waste disposal.

SEC. 110. PROHIBITION OF AFFILIATE ABUSES AND CROSS-SUBSIDIES.

It shall be unlawful for any State-regulated investor-owned electric utility company, or associated holding company or any subsidiary thereof, to own directly or indirectly any voting security of any company that provides a nonregulated service, or that provides any type of service outside the United States, or to provide any nonregulated service.

SEC. 111. MERGERS.

(a) IN GENERAL- No transactions subject to section 203 of the Federal Power Act shall be deemed to be consistent with the public interest within the meaning of section 203 if the Commission finds that the transaction may create or maintain a situation inconsistent with the antitrust laws in any product and geographic market in which electricity or capacity is offered for sale to wholesale or retail customers in the form of--

(1) generation capacity;

(2) transmission capacity; or

(3) electricity.

(b) PROBABLE EFFICIENCIES- Probable efficiencies, including savings and benefits resulting from a merger, will not be weighed against the effects of a merger that may substantially lessen competition in any geographic market for electricity if such efficiencies could be achieved by means other than the merger.

(c) PLAN- Any claim by applicants that a merger will produce probable efficiencies, including benefits and savings, must be supported by a plan accounting for such efficiencies, and explaining how they will be allocated among the merging utilities wholesale, retail, and transmission customers.

(d) OPEN ACCESS- No merger of transmission-owning public utilities or disposition of transmission facilities shall be deemed to be consistent with the public interest within the meaning of section 203 of the Federal Power Act, unless the applicants agree to offer comparable open access transmission with single system pricing.

(e) REDUCTION OF TRANSMISSION CAPACITY- No transaction subject to section 203 of the Federal Power Act shall be deemed to be consistent with the public interest within the meaning of section 203 if it would result in a reduction of transmission capacity presently available for use by transmission customers.

(f) AUTHORIZATION- Section 203(a) of the Federal Power Act is amended by inserting after the first sentence the following: `It shall be unlawful for a holding company in a holding company system that includes an electric utility company to directly or indirectly purchase, acquire, or take any security of any electric utility company or of a holding company in a holding company system that includes an electric utility company, without first having secured an order of the Commission authorizing it to do so.'

SEC. 112. POLLUTION STANDARDS.

(a) DEFINITIONS- For purposes of this section:

(1) COVERED GENERATION FACILITY- The term `covered generation facility' means an electric generation facility with a nameplate capacity of 15 megawatts or greater that uses a combustion device or nuclear reactor to generate electricity for sale.

(2) COGENERATION- The term `cogeneration' means a process of simultaneously generating electricity and thermal energy in which a portion of the energy value of fuel consumed is recovered as heat that is used to meet heating or cooling loads outside the generation facility.

(3) POLLUTANT- The term `pollutant' means--

(A) nitrogen oxides;

(B) sulfur dioxide;

(C) carbon dioxide;

(D) mercury;

(E) high-level nuclear waste;

(F) low-level nuclear waste; or

(G) any other substance that the Administrator may identify by regulation as a substance the emission of which from a combustion device or nuclear reactor used in the generation of electricity endangers public health or welfare.

(b) NATIONWIDE POLLUTION STANDARDS-

(1) SCHEDULE- Not later than July 1, 2001, the Administrator shall promulgate a final regulation that establishes a schedule of limits on the amount of each pollutant that all covered generation facilities in the aggregate nationwide shall be permitted to pollute in each calendar year beginning in calendar year 2002.

(2) LIMIT- The nationwide pollution standard for calendar year 2005 and each year thereafter, unless otherwise specified, established under paragraph (1) shall be not greater than the following:

(A) For nitrogen oxides, 1,660,000 tons (which represents a 79 percent decrease from 1990 emissions of 7,500,000 tons, and is intended to result in an emission rate of 0.15 pounds of nitrogen oxides per million British thermal units of primary energy consumed to produce electricity).

(B) For sulfur dioxide, 3,580,000 tons (which represents a 77 percent decrease from 1990 emissions of 15,800,000 tons, and is intended to result in an emission rate of 0.30 pounds of sulfur dioxide per million British thermal units of primary energy consumed to produce electricity).

(C) For carbon dioxide, 1,710,000,000 tons (which represents a 10 percent decrease from 1990 emissions of 1,920,000,000 tons), decreasing each year after 2005 in equal increments to 1,425,000 tons by 2010 (which represents a 25 percent decrease from 1990 emissions), decreasing each year after 2010 in equal increments to 380,000,000 tons by 2030 (which represents an 80 percent decrease from 1990 emissions).

(D) For mercury, the Administrator shall determine a standard that allows for the elimination of mercury emissions by 2010.

(E) For high-level waste, the Administrator shall determine a standard that allows for the reduction of the production of radiation (in curies) by 5 percent from levels in 2000, and 2 percent for each year after 2005.

(F) For low-level nuclear waste, the Administrator shall determine a standard that allows for the reduction of the production of radiation (in curies) by 25 percent from levels in 2000, and 5 percent for each year after 2005.

(3) ADJUSTMENT- The Administrator may adjust the schedule established under paragraph (1), within the limits established by paragraph (2), if the Administrator determines that an adjustment would be in the best interests of the public health and welfare.

(c) GENERATION POLLUTION STANDARD-

(1) ANNUAL DETERMINATION-

(A) IN GENERAL- Not later than October 1 of each year, the Administrator, in consultation with the Commission, shall determine the generation pollution standard for nitrogen oxides, sulfur dioxide, carbon dioxide, and mercury pollution in pounds per kilowatt-hour of electric production by covered generation facilities for the next calendar year; and high-level nuclear waste in pounds per kilowatt-hour and curies per kilowatt-hour and low-level nuclear waste in cubic feet per kilowatt-hour and curies per kilowatt-hour of electric production by covered generation facilities for the next calendar year.

(B) METHOD- The Administrator shall determine by regulation the method to be used in determining an estimate under subparagraph (A).

(2) FORMULA- The generation pollution standard shall be determined by dividing the annual nationwide pollution standard as established under subsection (b) by the Administrator's estimate of the nationwide kilowatt-hour production for the next calendar year by all covered generation facilities.

(d) GENERATING PLANTS-

(1) IN GENERAL- The average rate of pollutants at any covered generation facility over any 30-day period shall not exceed the generation performance standard established under subsection (c).

(2) PENALTY- The owner or operator of a covered generation facility that emits in excess of the maximum emission rate established under this section shall be subject to a penalty of $100,000 per day for each day in which the average emission rate over any 30-day period exceeds the maximum emission rate.

(e) MONITORING-

(1) ESTABLISHMENT OF SYSTEM- The Administrator shall establish a system for the accurate monitoring of the amount of each pollutant that a covered generation facility emits during a year.

(2) REQUIREMENTS- The monitoring system under paragraph (1) shall require--

(A) installation on each covered generation facility of a continuous monitoring system for each pollutant; or

(B) use of an alternative mechanism that the Administrator determines will provide data with precision, reliability, accessibility, and timeliness that are equal to or greater than those that would be achieved by a continuous emissions monitoring system.

(f) POWERS- The Administrator may promulgate such regulations, conduct such investigations, and take such other actions as are necessary to appropriate to implement and obtain compliance with this section and regulations promulgated under this section.

SEC. 113. NATIONAL ELECTRIC PUBLIC BENEFIT BOARD.

(a) ESTABLISHMENT- The Secretary shall establish a National Electric Public Benefit Board to carry out the functions and responsibilities described in this section and in section 114.

(b) MEMBERSHIP- The Board shall be composed of--

(1) 1 representative of the Commission appointed by the Commission;

(2) 1 representative of the Secretary appointed by the Secretary;

(3) 1 representative appointed by the Secretary of the Department of Health and Human Services;

(4) 1 representative appointed by the Administrator of the Rural Utilities Service of the Department of Agriculture;

(5) 1 representative appointed by the Secretary of the Department of Housing and Urban Development;

(6) 1 representative appointed by the Secretary of the Department of Labor.

(7) 1 person nominated by the national organization representing State regulatory commissioners and appointed by the Secretary;

(8) 1 person nominated by the national organization representing State utility consumer advocates and appointed by the Secretary;

(9) 1 person nominated by the national organization representing State energy offices and appointed by the Secretary;

(10) 1 person nominated by the national organization representing energy assistance directors and appointed by the Secretary; and

(11) 1 representative of the Environmental Protection Agency appointed by the Administrator.

(c) CHAIRPERSON- The Secretary shall select a member of the Board to serve as Chairperson of the Board.

(d) MANAGER-

(1) APPOINTMENT- The Board shall by contract appoint a public benefits manager for a term of not more than 3 years, which term may be renewed by the Board.

(2) COMPENSATION- The compensation and other terms and conditions of employment of the manager shall be determined by a contract between the Board and the individual or the other entity appointed as manager.

(3) FUNCTIONS- The manager shall--

(A) monitor the amounts in the Fund;

(B) receive, review, and make recommendations to the Board regarding applications from States under subsection 5(b); and

(C) perform such other functions as the Board may require to assist the Board in carrying out its duties under this Act.

SEC. 114. NATIONAL ELECTRIC PUBLIC BENEFIT FUND.

(a) ESTABLISHMENT-

(1) IN GENERAL- The Board shall establish an account or accounts at 1 or more financial institutions, which account or accounts shall be known as the `National Electric Public Benefit Fund', consisting of amounts deposited in the fund under subsection (c).

(2) STATUS OF FUND- The wires charges collected under subsection (c) and deposited in the Fund--

(A) shall constitute electric system revenues and shall not constitute funds of the United States;

(B) shall be held in trust by the manager of the Fund solely for the purposes stated in subsection (b); and

(C) shall not be available to meet any obligations of the United States.

(b) USE OF FUND-

(1) FUNDING OF UNIVERSAL ELECTRIC SERVICE- One-third of the amount in the Fund shall be used by the Board to provide funds to States for the support of affordable electric service for low and moderate income residential customers.

(2) FUNDING OF OTHER PUBLIC PURPOSE PROGRAMS- The balance of the amounts in the Fund shall be used by the Board to provide matching funds to States for the support of State public purpose programs relating to--

(A) the impacts on employees and their communities of any necessary reductions in the utility workforce directly caused by electricity

deregulation. These impacts shall be mitigated to the extent practicable through such means as offers of voluntary severance, job retraining, early retirement, continued health care, outplacement and related benefits;

(B) renewable energy sources;

(C) energy conservation and efficiency; or

(D) research and development in areas described in subparagraphs (B) and (C).

(3) DISTRIBUTION-

(A) IN GENERAL- Except for amounts needed to pay costs of the Board in carrying out its duties under this section, the Board shall instruct the manager of the Fund to distribute all amounts in the Fund to States to fund public purpose programs under paragraphs (1) and (2).

(B) FUND SHARE; UNIVERSAL ELECTRIC SERVICE PROGRAMS- Funds for public purpose programs funded under paragraph (1) shall be distributed to the States in proportion to the State's relative share of the Nation's aggregate annual consumption of electricity by low- and moderate-income households.

(C) FUND SHARE; OTHER PUBLIC PURPOSE PROGRAMS-

(i) IN GENERAL- Subject to clause (iii), the Fund share of a public purpose program funded under paragraph (2) shall be 50 percent.

(ii) PROPORTIONATE REDUCTION- To the extent that the amount of matching funds requested by States for public purpose programs funded under paragraph (2) exceeds two-thirds of the maximum projected revenues of the Fund, the matching funds distributed to the States shall be reduced by an amount that is proportionate to each State's annual consumption of electricity compared to the Nation's aggregate annual consumption of electricity.

(iii) ADDITIONAL STATE FUNDING- A State may apply funds to public purpose programs funded under paragraph (2) in addition to the amount of funds applied for the purpose of matching the Fund share.

(4) PROGRAM CRITERIA; UNIVERSAL ELECTRIC SERVICE PROGRAMS-

(A) ADVANCE FUNDING FOR CERTIFIED PROGRAMS- States that implement programs conforming to the standards set forth in this section shall be eligible for advance funding of such programs. The Board shall annually certify to the Secretary the compliance of State programs with this section. The Secretary shall provide a mechanism to ensure that universal electric service is provided to qualifying low-income consumers in States that do not have a State program or whose State program does not qualify for funds under this section.

(B) UNIVERSAL ELECTRIC SERVICE PROGRAM CRITERIA- To be certified under this section, State programs must contain the following provisions:

(i) Be designed and implemented to reduce the basic electricity cost burden of a State's low-income households to no more than twice the burden of a national average of non-low-income households.

(ii) Target benefits to the most vulnerable households.

(iii) Be available to all households with annual incomes at or below 150 percent of the Federal poverty guidelines, or 60 percent of the median State income, but States may determine a higher income level as the cutoff for eligibility.

(iv) Set aside up to 30 percent of annual program funding for energy conservation and education programs providing direct efficiency services to qualifying low-income households.

(v) Reach the maximum eligible population, using the most cost-effective outreach and intake techniques.

(vi) Encourage, rather than discourage, energy conservation, and the prompt payment of bills.

(vii) Spend no more than 10 percent of program funds on administration of the program.

(viii) The program shall be coordinated with the delivery of low-income energy assistance and weatherization programs administered and/or funded by Federal, State, and local agencies, making use, to the fullest extent practicable, of existing community-based organizations who administer one or more fuel assistance and energy efficiency programs.

(ix) On an annual basis hold a public hearing on the design and implementation of such Universal Electric Service program.

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