[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1047 Introduced in Senate (IS)]
106th CONGRESS
1st Session
S. 1047
To provide for a more competitive electric power industry, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 13, 1999
Mr. Murkowski (for himself and Mr. Bingaman) (by request) introduced
the following bill; which was read twice and referred to the Committee
on Energy and Natural Resources
_______________________________________________________________________
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. 1. Short title.
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. 403. Net metering.
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. 801. Definition.
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. 811. Definitions.
Sec. 812. Application of Federal Power Act.
Sec. 813. Surcharge on transmission rates to recover otherwise non-
recoverable costs.
Sec. 814. Complaints.
Sec. 815. Review of commission orders.
Sec. 816. Conforming amendments.
Subtitle C--Western Area Power Administration and Southwestern Power
Administration
Sec. 821. Definitions.
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 the 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--
``(A) a fuel cell,
``(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 sections 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 REQUIREMEMENTS.
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 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).
``(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 civil 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 Home 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,
``(C) consumer education,
``(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.
``(2) The Board shall--
``(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.
``(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 facility 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 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 purpose 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 to the maximum aggregate revenues
eligible to be collected under subsection (e) and deposited as payment
for Renewable Energy Credits under section 611, the fiscal agency 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 electric 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 Credits.--(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
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 or 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 paragraph (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 exceed 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 Credit 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 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 New 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 purposes 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
``(2) an Indian tribe
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--
(1) 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 the 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 stabilized 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 is 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
utilities 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 of 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--
``(1) the United States;
``(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(a) 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, without 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, disapproved 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 operations and the 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 satisfy
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,
governance, 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 to 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 the 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
subsection (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
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 of failure to act 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 of 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
NO<INF>X</INF>.
(b) Definitions.--For purposes of this section--
(1) the term ``Administrator'' means the Administrator of
the Environmental Protection Agency.
(2) the term ``NO<INF>X</INF>'' means oxides of nitrogen,
(3) term ``NO<INF>X</INF> allowance'' means an
authorization to emit a specified amount of NO<INF>X</INF> into
the atmosphere, and
(4) the term ``NO<INF>X</INF> 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 NO<INF>X</INF> allowances
that may be allocated for specified control periods, allocates
or authorizes a State to allocate NO<INF>X</INF> allowances,
allows the transfer of NO<INF>X</INF> allowances for use in
States subject to such a program, requires monitoring and
reporting of NO<INF>X</INF> emissions that meet the
requirements of section 412 of the Clean Air Act, and
prohibits, and requires penalties and offsets for, any
emissions of NO<INF>X</INF> in excess of the number of
NO<INF>X</INF> 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 NO<INF>X</INF> 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 NO<INF>X</INF> allowance cap and
trade program in all States in which such a source or other type of
emissions activity is located.
(2) Any NO<INF>X</INF> 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--
``(A) the remaining term;
``(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--
``(1) 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;
``(2) any changes in assumptions since the previous report
that may have a material effect on TVA's long-range financial
plans;
``(3) the source of funds used for any capacity additions;
``(4) the use of other disposition of amounts recovered by
TVA under this section;
``(5) the amount by which TVA's publicly-held debt was
reduced; and
``(6) 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 limit 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 provisos 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 shifts 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 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) minimized 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 allowed 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 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.''.
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 104b. 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 (l) 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 104b. This Act shall not affect the Commission's authority to
enforce antitrust conditions included in licenses issued under sections
103 or 104b. 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.''.
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