HR 1647 IH

To provide for electricity emergencies.

May 1, 2001

Mr. BARTON of Texas introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Resources, 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

To provide for electricity emergencies.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Electricity Emergency Relief Act'.

(b) TABLE OF CONTENTS-

Sec. 1. Short title and table of contents.

Sec. 2. Definitions.

TITLE I--GENERAL MEASURES FOR ELECTRIC ENERGY

Sec. 101. Demand management agreements clearinghouse.

Sec. 102. Price mitigation in western market through demand management incentives.

Sec. 103. Transmission constraints study.

Sec. 104. Path 15 transmission expansion.

Sec. 105. Tribal energy office.

Sec. 106. Federal transmission corridors.

Sec. 107. Guarantee of payment required for certain emergency power sales.

Sec. 108. Sale of transmission assets to State of California.

TITLE II--FEDERAL ASSISTANCE AVAILABLE IN ELECTRIC EMERGENCIES

Sec. 201. Emergency conservation awareness.

Sec. 202. Preparation for electricity blackouts.

Sec. 203. Conservation at Federal facilities.

Sec. 204. Daylight savings time.

Sec. 205. PURPA contracts.

TITLE III--FEDERAL ASSISTANCE AVAILABLE UPON A GOVERNOR'S REQUEST

Sec. 301. Hydroelectric power license conditions.

Sec. 302. Federal hydropower generation.

Sec. 303. Nox preconstruction requirements for new generation.

Sec. 304. Federal generation during State emergencies.

Sec. 305. Emergency generation.

Sec. 306. Regional transmission organization in western region.

SEC. 2. DEFINITIONS.

The terms used in this Act have the same meanings as when used in the Federal Power Act (16 U.S.C. 791a and following), except as otherwise provided in this Act.

TITLE I--GENERAL MEASURES FOR ELECTRIC ENERGY

SEC. 101. DEMAND MANAGEMENT AGREEMENTS CLEARINGHOUSE.

(a) IN GENERAL- Not later than 30 days after the enactment of this Act, the Federal Energy Regulatory Commission shall establish a clearinghouse system to facilitate agreements between wholesale sellers of electric energy and wholesale purchasers who are willing to forego, for a specified period of time, the purchase of electric energy that they are entitled to purchase from the sellers pursuant to contractual agreements. The specified period of time concerned may include specified times of day or specified times of year.

(b) COMPENSATION DEEMED JUST AND REASONABLE- The clearinghouse system established under this section shall provide for the sale at wholesale to other purchasers of the electric energy referred to in subsection (a). The Commission shall, by rule or order, provide that any reduced rate offered to a buyer as whole or partial compensation for that buyer's willingness to forego purchases shall be treated as just and reasonable for purposes of part II of the Federal Power Act.

(c) COMPENSATION FOR FOREGONE PURCHASES- Compensation for a wholesale purchaser agreeing to forego a purchase as provided in this section, including financial and non-financial compensation, rebates or other types of compensation that meet such requirements as the Commission shall establish, shall not be deemed unlawful (as a rebate or preference or otherwise) under section 205(b) of the Federal Power Act (16 U.S.C. 824d(b)).

(d) DATE OF TERMINATION AND REPORT-

(1) DATE OF TERMINATION; EFFECT ON EXISTING AGREEMENTS- The authority of this section shall terminate on October 1, 2003. Such termination shall not affect any agreement entered into pursuant to this section prior to the date of termination.

(2) REPORT- The Commission shall report to Congress by January 1, 2003, on the effect of this section on the availability of electricity and shall recommend whether the authority of this section should be extended beyond the date of termination.

SEC. 102. PRICE MITIGATION IN WESTERN MARKET THROUGH DEMAND MANAGEMENT INCENTIVES.

(a) REDUCED CONSUMPTION INCENTIVES- Not later than 30 days after the date of enactment of this Act, the Commission shall implement a program that authorizes any electric consumer of any electric utility within the Western Systems Coordinating Council to sell at market prices an amount of electric load the electric consumer is willing to forego equal to a portion of either of the following:

(1) The total amount of electric load which such consumer is entitled to consume under contract or applicable regulation.

(2) Where the amount the consumer is entitled to consume is not specifically limited by contract or regulation, the total amount of electric load the consumer would otherwise reasonably be expected to consume, as determined by the Commission.

Such foregone load may be sold for a period not to exceed the term of the electric consumer's entitlement to the consumption and may be sold to either (A) the electric utility serving the electric consumer, or (B) any other electric utility or Federal Power Marketing Agency as defined in section 3(19) of the Federal Power Act. For any sales referred to in subparagraph (B), the electric utility shall make available to the purchaser of the foregone electric load an amount of electric energy equal to the foregone load. For any sale of foregone load under this section, the electric utility of the consumer shall receive the full amount of the contract price or rate under applicable regulation to which such electric utility would otherwise be entitled for the foregone load. The program authorized by this subsection shall remain in effect until October 2003. Any agreement entered into pursuant to this section before such date shall remain valid thereafter.

(b) EFFECT ON OTHER STATE AND FEDERAL LAWS- No agreement to sell, or sale, of foregone electric load under this section shall be treated as a sale or resale

of electric energy for purposes of the Federal Power Act (16 U.S.C 792 and following) or the the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602). No person shall be treated as an electric utility company for purposes of the Public Utility Holding Company Act (15 U.S.C. 79a and following) solely by reason of any such agreement or sale. Nothing in this section shall be construed to permit a retail consumer of electricity to choose its supplier of electricity.

(c) DEFINITION- As used in this section, the terms `electric consumer' and `electric utility' shall have the meanings provided by section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).

SEC. 103. TRANSMISSION CONSTRAINTS STUDY.

The Secretary of Energy and the Federal Energy Regulatory Commission shall undertake a joint study of electric power transmission congestion and develop a plan to relieve constraints that reduce the efficiency of the transmission of electric power within the various regions of the country and with Canadian and Mexican electric transmission systems. The Secretary and the Commission shall submit a report to Congress within 6 months after the enactment of this Act, containing the findings and recommendations of the joint study.

SEC. 104. PATH 15 TRANSMISSION EXPANSION.

(a) IN GENERAL- The Administrator of the Western Area Power Administration System (hereinafter in this section referred to as `WAPA') is authorized to expand WAPA's transmission system to remove the PATH 15 constraint. All costs of such expansion shall be recovered on behalf of the United States by WAPA from transmission fees imposed by WAPA on transmission of electric energy or from the sale of ownership interests in such transmission facilities. WAPA shall offer to all electric utilities on a not unduly discriminatory or preferential basis the expanded electric power transmission capacity made available as provided in this section.

(b) AUTHORIZATION- There is authorized to be appropriated not more than $220,000,000 to carry out this subsection.

SEC. 105. TRIBAL ENERGY OFFICE.

(a) ESTABLISHMENT- There shall be within the Department of Energy an Office of Tribal Energy to be headed by a Director, who shall be appointed by the Secretary.

(b) DUTIES AND RESPONSIBILITIES- It shall be the duty and responsibility of the Director to--

(1) promote tribal energy efficiency;

(2) advise the Secretary with respect to the development of energy resources on tribal land, including renewable energy, electricity power plants and transmission lines, oil and gas, hydropower, and coal;

(3) assist Indian tribes that support development of energy resources on tribal land, providing energy information and technical assistance to such tribes; and

(4) coordinate with the Department of the Interior and Bureau of Indian Affairs on development on energy resources on tribal lands.

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as may be necessary to carry out this section.

(b) TABLE OF CONTENTS- The table of contents for such Act is amended by adding the following new item at the end of the items relating to title II:

`Sec. 213. Office of Tribal Energy.'.

SEC. 106. FEDERAL TRANSMISSION CORRIDORS.

The Secretary of Energy, in consultation with Federal land managing agencies, is authorized and directed to establish electric power transmission corridors across Federal lands, after conducting a study of the need for transmission expansion and determining that siting of transmission facilities on Federal land is necessary or appropriate to promote transmission of electric energy in interstate commerce. The Department of Energy shall be the lead agency for conducting environmental review of the

establishment of such corridors for purposes of the National Environmental Policy Act of 1969. The Secretary of Energy is authorized to be a party to any proceeding regarding electric power transmission siting on Federal lands. For purposes of this section, the term `Federal land managing agencies' means the Bureau of Land Management, the United States Forest Service, the United States Fish and Wildlife Service, the National Park Service, and the Department of Defense.

SEC. 107. GUARANTEE OF PAYMENT REQUIRED FOR CERTAIN EMERGENCY POWER SALES.

Notwithstanding any other provision of law, neither the Secretary of Energy, the Commission, any other officer or agency in the Executive branch, nor any court may issue an order that requires a seller of electric energy or natural gas to sell, on or after the date of enactment of this Act, electric energy or natural gas to a purchaser unless there is a guarantee that is sufficient, as determined by the Commission, to ensure that the seller will be paid the full purchase price when due.

SEC. 108. SALE OF TRANSMISSION ASSETS TO STATE OF CALIFORNIA.

Notwithstanding section 201(f) of the Federal Power Act (16 U.S.C. 824b(f)), if the State of California, or any entity established by the State, owns or operates transmission facilities acquired from any public utility subject to the jurisdiction of the Commission, the State, or such entity, shall be subject to the jurisdiction of the Commission under part II of such Act with respect to such facilities to the same extent and in the same manner as would be the public utility from which such transmission facilities were acquired.

TITLE II--FEDERAL ASSISTANCE AVAILABLE IN ELECTRIC EMERGENCIES

SEC. 201. EMERGENCY CONSERVATION AWARENESS.

The Secretary of Energy, in consultation and coordination with affected States, is authorized and directed to conduct an emergency awareness campaign to promote conservation in geographic areas where demand for electric energy is expected to exceed available supplies. Such campaign shall use broadcast, print, and other media as appropriate to raise public awareness of the likelihood and consequences of electric energy shortages and to promote specific actions to reduce consumption of electric energy for non-essential purposes during periods of peak demand.

SEC. 202. PREPARATION FOR ELECTRICITY BLACKOUTS.

The Secretary of Energy, in consultation and coordination with the Director of the Federal Emergency Management Agency, is authorized and directed to make preparations to handle emergency situations caused by widespread electric energy blackouts. Such preparations shall include each of the following specific actions:

(1) Establishing an office in States in which electric energy blackouts are expected to occur.

(2) Conducting an educational campaign preparing the public for electric energy blackouts.

(3) Preparing an emergency plan ready to provide immediate assistance during blackouts, including coordination with police, fire and safety agencies to address emergency situations resulting from electric energy blackouts.

SEC. 203. CONSERVATION AT FEDERAL FACILITIES.

(a) REQUIREMENT- If an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, each Federal agency shall apply electricity conservation measures to its Federal buildings in use in a State so that the electricity consumption per gross square foot of its Federal buildings in use in the State during any period for the duration of the electricity emergency is at least 10 percent less than the electricity consumption per gross square foot of its Federal buildings in use in the State during the comparable period of the last year during which that comparable period did not occur during an electricity emergency.

(b) EXPIRATION- This section shall not apply after October 1, 2003.

SEC. 204. DAYLIGHT SAVINGS TIME.

(a) AUTHORITY-

(1) IN GENERAL- Notwithstanding the Act of March 19, 1918 (15 U.S.C. 261-264), if the legislature of any of the States of California, Nevada, Oregon, or Washington makes a finding that adjusting the standard time is necessary to help alleviate an electricity crisis, the legislature of such State may make any adjustments to the standard time, on a statewide basis, as it considers necessary.

(2) SUBSEQUENT STATE AUTHORITY- The legislature of any State referred to in paragraph (1) may make the same adjustment made by any other State that has acted under paragraph (1), without making the finding required by that paragraph.

(b) STANDARD TIME- For the purposes of the Act of March 19, 1918 (15 U.S.C. 261-264), adjusted time implemented pursuant to subsection (a) of this section shall be considered the standard time in those States where it is in effect.

(c) EXPIRATION- The authority to have adjusted time in effect pursuant to subsection (a) shall expire after December 31, 2003.

SEC. 205. PURPA CONTRACTS.

(a) NONPAYMENT FOR POWER- Within 60 days after the enactment of this subsection, the Commission shall revise the rules under section 210 of the Public Utility Regulatory Policies Act of 1978 to provide that if--

(1) the owner or operator of a qualifying small power production facility, or qualifying cogeneration facility, as defined in the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), has sold electric energy pursuant to a contract under this section to an electric utility, and

(2) such owner or operator has not been paid for such energy within the payment period provided in the contract,

such owner or operator may suspend so much of the contract as requires the power and energy from the facility to be sold to such electric utility. During any such suspension, such owner or operator may sell the electric energy covered by such contract to any other person or any other party designated to receive such power or energy.

(b) TERMINATION- A suspension under this subsection shall terminate on the first day of the contract month after which the utility pays for the electric energy received from the qualifying small power production facility or qualifying cogeneration facility concerned except as

otherwise provided in a judicial resolution of the contract dispute or in a negotiated resolution between the parties.

(c) OTHER SERVICES- During any suspension under this subsection, the electric utility shall provide such transmission, interconnection, and distribution services as may be necessary to deliver electric energy from the qualifying small power production facility, or qualifying cogeneration facility, to the purchaser or to another transmission system from which the purchaser may obtain delivery of the electric energy, subject to the requirements of the Federal Power Act relating to transmission services.

(d) INTERCONNECTION- Nothing in this subsection shall affect the obligation of an electric utility to interconnect with a qualifying small power production facility or qualifying cogeneration facility or to provide electric energy to such facility at rates that meet the requirements of section 210(c) of the Public Utility Regulatory Policies Act of 1978 pursuant to the rules of the Commission. Where a qualifying facility exercises its rights under this section, the electric utility party to the power purchase contract shall maintain interconnection services unimpeded and without interruption.

(e) SUNSET- This section shall cease to apply on October 1, 2003.

TITLE III--FEDERAL ASSISTANCE AVAILABLE UPON A GOVERNOR'S REQUEST

SEC. 301. HYDROELECTRIC POWER LICENSE CONDITIONS.

The Commission shall promulgate a standard article under section 10 of the Federal Power Act (16 U.S.C. 803) in order to permit increased generation at licensed hydroelectric facilities to assist in alleviating any electric supply, generating, or system reliability emergency that has been declared by the Governor of the State in which such facilities are located. Any licensee may include such article in a license issued under Part II of such Act, including any license issued before the enactment of this Act. Such standard article shall provide that, if the Governor submits a request for such action to the licensee, upon notice to the Commission and after consultation with the relevant resource agencies, the licensee may operate with a temporary modification or suspension of any minimum flow requirement or other operational requirement of the license during such emergency. Such temporary modification or suspension shall not continue for more than 2 years.

SEC. 302. FEDERAL HYDROPOWER GENERATION.

(a) BONNEVILLE POWER ADMINISTRATION- During any period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, if the governors of each State within the Pacific Northwest (as defined in section 3(14) of the Pacific Northwest Power Planning and Conservation Act) request the Administrator of the Bonneville Power Administration to authorize hydropower facilities providing electric power to the Administration to maximize electric generation at such facilities, the Administrator may authorize such generation.

(b) BUREAU OF RECLAMATION- During any period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, in order to provide electric power generation, if the Governor of such State so requests, the Secretary of the Interior, acting through the Commissioner of the Bureau of Reclamation, may authorize the maximum electric generation at hydroelectric facilities operated by the Bureau.

(c) WAIVER- Whenever the Administrator of the Bonneville Power Administration or the Commissioner of the Bureau of Reclamation authorizes maximum generation pursuant to this subsection at any facility, such authorization shall waive the application of any restriction or constraint under any Federal law, plan, rule, or order (including any court order issued before the date of the enactment of this Act pursuant to any Federal law) that would otherwise apply to the operation of the facility concerned, including any dam, powerplant, or other facility under the administrative jurisdiction of the Administrator or Commissioner, wherever located.

(d) NO JUDICIAL REVIEW- A waiver under this section shall not be subject to judicial review.

SEC. 303. NOX PRECONSTRUCTION REQUIREMENTS FOR NEW GENERATION.

During any period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, if the Governor submits a request for such action to the Administrator of the Environmental Protection Agency, the Administrator may waive, for not more than a one year period, for new electric generation units located in that State, the requirements of section 111 of the Clean Air Act relating to oxides of nitrogen and the preconstruction requirements relating to oxides of nitrogen applicable to such units under applicable implementation plan provisions in effect in that State. At the expiration of such waiver, such units shall be required to meet all such requirements. Whenever the Administrator receives a Governor's request for a waiver under this section, the Administrator shall make a determination regarding such request within 45 days from the date on which such request is received.

SEC. 304. FEDERAL GENERATION DURING STATE EMERGENCIES.

(a) DEFINITION- For purposes of this section, the term `qualified Federal electric generation facility' means any electric generation facility (other than a hydroelectric power generation facility) owned or operated by a department, agency, or instrumentality of the United States and located in a State in which an electricity emergency has been declared as provided in this section. Such term includes backup generators and portable generators.

(b) AUTHORIZATION OF GENERATION- During any period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, if the Governor submits a request for such action to the Secretary of Energy, the Secretary may authorize any department, agency, or instrumentality of the United States that owns or operates a qualified Federal electric generation facility, to generate electric energy for consumption by such department, agency, or instrumentality or for sales to such State for local distribution in the State to assist in relieving emergency electric power shortages if reimbursement is assured by the recipient of such power or by a State government.

SEC. 305. EMERGENCY GENERATION.

(a) DEFINITION- The term `high electricity emergency day' means, for any State, a day on which a State agency determines that rolling electric blackouts are imminent and--

(1) in the case of California, during which a Stage III Emergency has been declared by the California Independent System Operator; or

(2) in the case of any other State, a similar emergency has been declared by an appropriate State agency in such other State.

(b) EXPEDITED APPROVAL FOR EMERGENCY GENERATION PROVISIONS- The Administrator of the Environmental Protection Agency shall expedite the consideration and approval of State implementation plan amendments submitted to the Administrator by a State under the Clean Air Act to provide the emergency generation authority described in subsection (c) or (d) of this section. Whenever the Administrator receives a proposed plan amendment under this section, the Administrator shall make a determination regarding such amendment within 45 days from the date on which such amendment is received.

(c) NOX WAIVER AUTHORITY FOR NATURAL GAS-FIRED GENERATION--Any State in which high electricity emergency days may occur may submit a State implementation plan amendment to the Administrator of the Environmental Protection Agency under the Clean Air Act pursuant to this subsection. Under such amendment, the Governor of the State may temporarily waive all emission limitations in effect under such plan, including any limitations set forth in a permit, regarding emissions of oxides of nitrogen from natural gas fired electric power generation facilities in that State to permit additional generation on any high electricity emergency day or any portion of such a day. Such waiver may be issued only during a period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State. Such temporary waiver shall not authorize any emission source to disconnect or cease using any emission control device used to control emissions of oxides of nitrogen. No such temporary waiver may remain in effect for a period longer than 6 consecutive months.

(d) EMERGENCY GENERATION FOR PRIVATE USE- Any State in which high electricity emergency days may occur may submit a State implementation plan amendment to the Administrator of the Environmental Protection Agency under the Clean Air Act pursuant to this subsection. Under such amendment, if the Governor of the State has declared an electricity emergency in the State, the Governor may issue an order waiving, during any high electricity emergency day or portion thereof, any otherwise applicable requirements of the plan that would have the effect or prohibiting or limiting the operation by any person or entity or class or category thereof in such State of any type of electric energy generation, using any type of fuel available, if such electric energy is consumed only by the person or entity generating it. Such waiver shall not authorize any emission source to disconnect or cease using any emission control device used to control emissions of any air pollutant (within the meaning of the Clean Air Act). Each such order shall expire 6 months after the date of issuance.

(e) EFFECT ON AIR QUALITY- The Administrator of the Environmental Protection Agency may approve a plan amendment described in subsection (c) or (d) of this section only if the Administrator determines that such amendment will not increase the net emissions of any air pollutant in any affected air quality region and that the amendment otherwise meets the requirements of the Clean Air Act.

(f) STAY OR INJUNCTIONS PROHIBITED- No stay or injunction may be issued by any court under section 304 of the Clean Air Act against the Administrator of a State regarding the submission or approval of a plan amendment referred to in this section.

SEC. 306. REGIONAL TRANSMISSION ORGANIZATION IN WESTERN REGION.

(a) IN GENERAL- After notice and an opportunity for a hearing, the Federal Energy Regulatory Commission shall establish a regional transmission organization for the region covered by the Western Systems Coordinating Council if 10 or more of the Governors of the 14 States covered in whole or in part by the Western Systems Coordinating Council sign a petition submitted by one or more of such Governors requesting the Commission to establish such organization.

(b) FEDERAL TRANSMISSION FACILITIES- The Bonneville Power Administration and the Western Area Power Administration are each authorized and required to participate in a regional transmission organization established under this section. Each other entity (including municipally owned entities and cooperatives) owning or operating transmission facilities within the region covered by the Western Systems Coordinating Council shall participate in any such organization. Notwithstanding any other law, participation may include delegation of operation and control of the transmission system concerned to a regional transmission organization or other method of participation, under terms and conditions the power marketing administration concerned determines necessary or appropriate, including being bound by operational and other orders of the regional transmission organization and by the results of arbitration of disputes with the organization or with other participants.

(c) STATE AUTHORITY NOT AFFECTED- Nothing in this section affects the authority of States to regulate transmission facility maintenance, planning, siting, and other utility functions.

(d) SUNSET- No regional transmission authority established under this section shall be required to continue to operate after the date 3 years after the regional transmission organization is established.

END