[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4861 Introduced in House (IH)]
106th CONGRESS
2d Session
H. R. 4861
To address the acid rain and greenhouse gas impacts of electric utility
restructuring and to encourage the development of renewable energy
resources, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 13, 2000
Mr. Lazio (for himself and Mr. Boehlert) introduced the following bill;
which was referred to the Committee on Commerce
_______________________________________________________________________
A BILL
To address the acid rain and greenhouse gas impacts of electric utility
restructuring and to encourage the development of renewable energy
resources, 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 ``Clean Power Act''.
SEC. 2. NITROGEN OXIDE AND CARBON DIOXIDE ALLOWANCE TRADING PROGRAM.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Affected facility.--The term ``affected facility''
means--
(A) a combustion unit in the 48 contiguous States
and the District of Columbia that serves at least one
electric generator with a nameplate capacity of 25
megawatts or greater to generate electricity and that
combusts any fuel, including biomass, or
(B) a facility in the 48 contiguous States and the
District of Columbia generating 5 kilowatts of
electricity or greater using wind, geothermal, solar
thermal, or photovoltaic energy.
(3) NO<INF>X</INF> allowance.--The term ``NO<INF>X</INF>
allowance'' means a limited authorization under subsection
(b)(3) to emit quantities of nitrogen oxide.
(4) CO<INF>2</INF> allowance.--The term ``CO<INF>2</INF>
Allowance'' means a limited authorization under subsection
(b)(4) to emit quantities of carbon dioxide.
(5) Program.--The term ``Program'' means the Nitrogen Oxide
or a Carbon Dioxide Allowance Program established under
subsection (b).
(6) Total output production.--The term ``total output
production'' means the sum of electricity and steam generated
by all affected facilities in the 48 contiguous States and the
District of Columbia.
(b) In General.--(1) Not later than 1 year after the date of
enactment of this Act, the Administrator shall promulgate a final
regulation to address interstate transport of nitrogen oxide and carbon
dioxide pollution. Under such program, the Administrator shall
establish a program to issue, record the sale or exchange of, and track
NO<INF>X</INF> and CO<INF>2</INF> allowances and to monitor and track
emissions of nitrogen oxide.
(2) After January 1, 2005, the total number of NO<INF>X</INF>
allowances distributed each year under such Program shall not be
greater than 2,750,000 and the total number of CO<INF>2</INF>
allowances distributed each year shall not be greater than
1,914,000,000.
(3) Each NO<INF>X</INF> allowance issued under such Program shall
authorize an affected facility to emit--
(A) \1/2\ ton of nitrogen oxide during the ozone period of
May 1 through September 30 of any year, or
(B) 1 ton of nitrogen oxide for any period of any year not
covered in subparagraph (A).
(4) Each CO<INF>2</INF> allowance issued under such program shall
authorize an affected facility to emit 1 ton of carbon dioxide.
(5) The regulations under this section shall require affected
facilities to report electric generation and other data the
Administrator deems necessary to determine allocations and to ensure
compliance with the Program. The owner or operator of an affected
facility shall be required to install and operate continuous emissions
monitoring systems at the facility or an alternative monitoring system
approved by the Administrator.
(6) The regulation under this section shall establish a tracking
system for NO<INF>X</INF> and CO<INF>2</INF> allowances. A
NO<INF>X</INF> or CO<INF>2</INF> allowance allocation or transfer
shall, on recordation by the Administrator, be considered to be a part
of any operating permit requirements of each affected facility involved
in the allocation or transfer, without a requirement for any further
permit review or revision.
(7) The use of any NO<INF>X</INF> or CO<INF>2</INF> allowance
before the calendar year for which the NO<INF>X</INF> or CO<INF>2</INF>
allowance is allocated shall be prohibited.
(c) Allocations.--The Administrator shall promulgate regulations
that shall--
(1) place 5 percent of the total quantity of NO<INF>X</INF>
allowances and 5 percent of the total quantity of
CO<INF>2</INF> allowances available each year into a new source
reserve,
(2) distribute to each affected facility the remaining
NO<INF>X</INF> and CO<INF>2</INF> allowances for each calendar
year,
(3) distribute the allocations to each affected facility in
proportion to each affected facility's share of total output
production,
(4) distribute 2 years of allowances to each affected
facility every 2 years, at least 6 months prior to the
beginning of the relevant 2-year period,
(5) distribute to each new affected facility from the new
source reserve prior to the relevant control period, and
(6) redistribute any allowances remaining in the new source
reserve after the relevant control period to--
(A) affected sources in proportion to each
facility's share of total output production, or
(B) the following year's new source reserve, if the
Administrator determines that the reserve will be
insufficient to meet expected need.
(d) Insufficient Allowances.--If the Administrator determines that
the quantity of allowances in the new source reserve in subsection (c)
is insufficient to accommodate the operations of new facilities, the
Administrator shall promulgate a regulation to set a new percentage of
the total annual quantity of NO<INF>X</INF> or CO<INF>2</INF>
allowances to place into the new source reserve, no later than 6 months
prior to the beginning of the next 2-year allocation period.
(e) Enforcement.--(1) An affected facility may not emit nitrogen
oxides and carbon dioxide in excess of the amount permitted by the
quantity of NO<INF>X</INF> or CO<INF>2</INF> allowances held by the
designated representative of the affected facility in the
NO<INF>X</INF> allowance tracking system starting in the calendar year
2005.
(2) If an affected facility emits nitrogen oxides in excess of the
amount permitted, the Administrator shall calculate the deficit of
additional NO<INF>X</INF> allowances the affected facility would
require to authorize the emitted quantity of nitrogen oxides. The
affected facility shall--
(A) pay $6,000 for each additional NO<INF>X</INF> allowance
calculated, and
(B) offset in the following calendar year a quantity of
NO<INF>X</INF> allowances equal to the number of NO<INF>X</INF>
allowances calculated.
(3) If an affected facility emits carbon dioxide in excess of the
amount permitted, the Administrator shall calculate the deficit of
additional CO<INF>2</INF> allowances the affected facility would
require to authorize the emitted quantity of carbon dioxide. The
affected facility shall--
(A) pay $100 for each additional CO<INF>2</INF> allowance
calculated, and
(B) offset in the following year a quantity of
CO<INF>2</INF> allowances equal to the number of CO<INF>2</INF>
allowances calculated.
(4) For every year after 2005, the Administrator shall annually
adjust the amount of the penalty in paragraphs (2)(A) and (3)(A) to
reflect changes in the Consumer Price Index.
(f) Repeal of Other NO<INF>X</INF> Limitations.--Section 407 of the
Clean Air Act (42 U.S.C. 7651f) is repealed as of the date the
provisions of this section related to NO<INF>X</INF> are implemented.
(g) Construction.--Neither a NO<INF>X</INF> allowance nor a
CO<INF>2</INF> allowance shall be considered to be a property right.
Notwithstanding any other provision of law, the Administrator may
terminate or limit a NO<INF>X</INF> or CO<INF>2</INF> allowance.
(h) Savings Provisions.--Nothing in this section affects the
application of, or compliance with, the Clean Air Act for an affected
facility, including the provisions related to applicable national
ambient air quality standards and State implementation plans or
requires a change in, affects, or limits any State law regulating
electric utility rates or charges, including prudency review under
State law, affects the application of the Federal Power Act (16 U.S.C.
791a et seq.) or the authority of the Commission under that Act, or
interferes with or impairs any program for competitive bidding for
power supply in any State.
SEC. 3. SULFUR DIOXIDE ALLOWANCE PROGRAM REVISIONS.
Section 402 of the Clean Air Act (42 U.S.C. 7651) is amended by
striking paragraph (3) and inserting the following:
``(3) Allowance.--The term `allowance' means an
authorization, allocated to an affected unit by the
Administrator under this title, to emit, during or after a
specified calendar year--
``(A) in the case of allowances allocated for
calendars years 1997 through 2004, one ton of sulfur
dioxide, and
``(B) in the case of allowances allocated for
calendar year 2005 and each calendar year thereafter,
\1/4\ ton of sulfur dioxide.''.
SEC. 4. MERCURY EMISSION CONTROL.
(a) Emission Controls.--The Administrator shall promulgate
regulations based on the protection of human health and the environment
controlling electric utility emissions of mercury in accordance with
this section.
(b) Nationwide Standard.--The nationwide standard under this
section for calendar year 2005 and each year thereafter for electric
utility emissions of mercury shall be not greater than 5 tons.
(c) Factors.--The regulations under this section shall take into
account technological feasibility, cost, and the projected reduction in
levels of mercury emissions that will result from implementation of
this Act. Such regulations shall prevent localized adverse effects on
public health and the environment and shall prohibit emission trading
in mercury.
SEC. 5. RENEWABLE PORTFOLIO STANDARD.
(a) Standard.--Title II of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 and following) is amended by adding after
section 214 the following new section:
``SEC. 215. FEDERAL RENEWABLE PORTFOLIO STANDARD.
``(a) Effective Date.--The Administrator of the Energy Information
Administration in the Department of Energy shall publish a notice on or
before January 1, 2005, specifying the percentage of total electric
energy generation in the United States that the Administrator estimates
to be supplied by renewable energy during the calendar year 2004. If
such percentage is less than 3 percent, this section shall take effect
on January 1, 2005.
``(b) Minimum Renewable Generation Requirement.--(1) For each
calendar year beginning after the effective date of this section, and
ending January 1, 2010, a retail electric supplier shall submit to the
Secretary of Energy (referred to in this section as the `Secretary')
Renewable Energy Credits in an amount equal to 3 percent of the total
electric energy sold by the retail electric supplier to electric
consumers in the calendar year. For each calendar year beginning
January 1, 2010, a retail electric supplier shall submit to the
Secretary Renewable Energy Credits in an amount equal to 6 percent 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.
``(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 Credits.--(1) The Secretary shall establish 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 subparagraph (B), the Secretary
shall issue to an entity 1 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 2005 and any succeeding year.
``(B) To be eligible for a Renewable Energy Credit, the unit of
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 nonrenewable 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 or exchange of, and tracking
the credit, or does not exceed 5 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
216.
``(e) Sale or Exchange.--A Renewable Energy Credit may be sold or
exchanged by the entity to which it was issued or by any other entity
that 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 on the effective
date of this section, 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 2005, 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.
``(g) Renewable Energy and Energy Efficiency Fund.--The Secretary
shall deposit in a separate account the amount received from a sale
under subsection (f). Amounts in the separate account shall be
available, without further appropriation, to the Secretary to be used
for purposes of providing assistance for research and development of
cleaner burning fuels, renewable energy, and energy efficiency.
``(h) 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 (b). A
retail electric supplier that does not submit the required number of
Renewable Energy Credits under subsection (b) is subject to a civil
penalty of not more than 3 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.
``(i) 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.
``(j) Sunset.--This section expires December 31, 2015.''.
(b) Definitions.--Section 3 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2602) is amended by adding after
paragraph (24) 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.''.
(c) Table of Contents.--The table of contents for title II of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and
following) is amended by adding the following at the end thereof:
``Sec. 215. Federal renewable portfolio standard.''.
SEC. 6. NET METERING.
(a) Amendment of PURPA.--The Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2601 and following) is amended by adding the
following new section after section 215, as added by section 5 of this
Act:
``SEC. 216. 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 100 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 consumer 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 that 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 which the supplier serves or
offers to serve.''.
(c) Table of Contents.--The table of contents for title II of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and
following) is amended by adding the following at the end thereof:
``Sec. 216. Net metering for renewable energy.''.
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