[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1063 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1063
To amend title VI of the Public Utility Regulatory Policies Act of 1978
to establish a Federal energy efficiency resource standard for
electricity and natural gas suppliers, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 22, 2015
Mr. Franken introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To amend title VI of the Public Utility Regulatory Policies Act of 1978
to establish a Federal energy efficiency resource standard for
electricity and natural gas suppliers, 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 ``American Energy Efficiency Act''.
SEC. 2. ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL ELECTRICITY AND
NATURAL GAS SUPPLIERS.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end
the following:
``SEC. 610. FEDERAL ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL
ELECTRICITY AND NATURAL GAS SUPPLIERS.
``(a) Definitions.--In this section:
``(1) Base quantity.--
``(A) In general.--The term `base quantity', with
respect to a retail electricity supplier or retail
natural gas supplier, means, for each calendar year for
which a performance standard is established under
subsection (c), the average annual quantity of
electricity or natural gas delivered by the retail
electricity supplier or retail natural gas supplier to
retail customers during the 3 calendar years
immediately preceding the first year that compliance is
required under subsection (c)(1).
``(B) Exclusion.--The term `base quantity', with
respect to a retail natural gas supplier, does not
include natural gas delivered for purposes of
electricity generation.
``(2) Customer facility savings.--The term `customer
facility savings' means a reduction in end-use electricity or
natural gas consumption (including waste heat energy savings)
at a facility of an end-use consumer of electricity or natural
gas served by a retail electricity supplier or natural gas
supplier, as compared to--
``(A) in the case of a new facility, consumption at
a reference facility of average efficiency;
``(B) in the case of an existing facility,
consumption at the facility during a base period of not
less than 1 year;
``(C) in the case of new equipment that replaces
existing equipment at the end of the useful life of the
existing equipment, consumption by new equipment of
average efficiency of the same equipment type, except
that customer savings under this subparagraph shall not
be counted towards customer savings under subparagraph
(A) or (B); and
``(D) in the case of new equipment that replaces
existing equipment with remaining useful life--
``(i) consumption of the existing equipment
for the remaining useful life of the equipment;
and
``(ii) thereafter, consumption of new
equipment of average efficiency.
``(3) Electricity savings.--The term `electricity savings'
means reductions in electricity consumption achieved through
measures implemented after the date of enactment of this
section, as determined in accordance with regulations
promulgated by the Secretary, that are limited to--
``(A) customer facility savings of electricity,
adjusted to reflect any associated increase in fuel
consumption at the facility;
``(B) reductions in distribution system losses of
electricity achieved by a retail electricity supplier,
as compared to losses attributable to new or
replacement distribution system equipment of average
efficiency, as defined in regulations promulgated by
the Secretary;
``(C) CHP savings;
``(D) codes and standards savings of electricity;
and
``(E) fuel switching energy savings that results in
net savings of electricity.
``(4) Natural gas savings.--The term `natural gas savings'
means reductions in natural gas consumption from measures
implemented after the date of enactment of this section, as
determined in accordance with regulations promulgated by the
Secretary, that are limited to--
``(A) customer facility savings of natural gas,
adjusted to reflect any associated increase in
electricity consumption or consumption of other fuels
at the facility;
``(B) reductions in leakage, operational losses,
and consumption of natural gas fuel to operate a gas
distribution system, achieved by a retail natural gas
supplier, as compared to similar leakage, losses, and
consumption during a base period of not less than 1
year;
``(C) codes and standards savings of natural gas;
and
``(D) fuel switching energy savings that results in
net savings of natural gas.
``(5) Retail electricity supplier.--
``(A) In general.--The term `retail electricity
supplier' means, for any given calendar year, an
electric utility that sells not less than 1,000,000
megawatt hours of electric energy to electric consumers
for purposes other than resale during the preceding
calendar year.
``(B) Inclusions and limitations.--For purposes of
determining whether an electric utility qualifies as a
retail electricity supplier under subparagraph (A)--
``(i) deliveries by any affiliate of an
electric utility to electric consumers for
purposes other than resale shall be considered
to be deliveries by the electric utility; and
``(ii) deliveries by any electric utility
to a lessee, tenant, or affiliate of the
electric utility shall not be considered to be
deliveries to electric consumers.
``(6) Retail natural gas supplier.--
``(A) In general.--The term `retail natural gas
supplier' means, for any given calendar year, a local
distribution company (as defined in section 2 of the
Natural Gas Policy Act of 1978 (15 U.S.C. 3301)), that
delivered to natural gas consumers more than
5,000,000,000 cubic feet of natural gas for purposes
other than resale during the preceding calendar year.
``(B) Inclusions and limitations.--For purposes of
determining whether a person qualifies as a retail
natural gas supplier under subparagraph (A)--
``(i) deliveries of natural gas by any
affiliate of a local distribution company to
consumers for purposes other than resale shall
be considered to be deliveries by the local
distribution company; and
``(ii) deliveries of natural gas to a
lessee, tenant, or affiliate of a local
distribution company shall not be considered to
be deliveries to natural gas consumers.
``(b) Establishment of Program.--
``(1) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall, by regulation,
establish a program to implement and enforce the requirements
of this section, including by--
``(A) defining the terms `CHP savings', `code and
standards savings', `combined heat and power system',
`cost-effective', `fuel switching energy savings',
`reporting period', `third-party efficiency provider',
and `waste heat energy savings';
``(B) establishing measurement and verification
procedures and standards that count only measures and
savings that are additional to business-as-usual
customer purchase practices;
``(C) establishing requirements under which retail
electricity suppliers and retail natural gas suppliers
shall--
``(i) demonstrate, document, and report the
compliance of the retail electricity suppliers
and retail natural gas suppliers with the
performance standards under subsection (c); and
``(ii) estimate the impact of the standards
on current and future electricity and natural
gas use in the service territories of the
suppliers;
``(D) establishing requirements governing
applications for, and implementation of, delegated
State administration under subsection (e); and
``(E) establishing rules to govern transfers of
electricity or natural gas savings between suppliers
and third-party efficiency providers serving the same
State and between suppliers and third-party efficiency
providers serving different States.
``(2) Coordination with state programs.--In establishing
and implementing this section, the Secretary shall, to the
maximum extent practicable, preserve the integrity and
incorporate best practices of existing State energy efficiency
programs.
``(c) Performance Standards.--
``(1) Compliance obligation.--Not later than May 1 of the
calendar year immediately following each reporting period--
``(A) each retail electricity supplier shall submit
to the Secretary a report, in accordance with
regulations promulgated by the Secretary, demonstrating
that the retail electricity supplier has achieved
cumulative electricity savings (adjusted to account for
any attrition of savings measures implemented in prior
years) in each calendar year that are equal to the
applicable percentage of the base quantity of the
retail electricity supplier; and
``(B) each retail natural gas supplier shall submit
to the Secretary a report, in accordance with
regulations promulgated by the Secretary, demonstrating
that it has achieved cumulative natural gas savings
(adjusted to account for any attrition of savings
measures implemented in prior years) in each calendar
year that are equal to the applicable percentage of the
base quantity of such retail natural gas supplier.
``(2) Standards for 2017 through 2030.--For each of
calendar years 2017 through 2030, the applicable percentages
are as follows:
------------------------------------------------------------------------
Cumulative Electricity Cumulative Natural Gas
``Calendar Year Savings Percentage Savings Percentage
------------------------------------------------------------------------
2017 1.00 0.50
------------------------------------------------------------------------
2018 2.00 1.25
------------------------------------------------------------------------
2019 3.00 2.00
------------------------------------------------------------------------
2020 4.25 3.00
------------------------------------------------------------------------
2021 5.50 4.00
------------------------------------------------------------------------
2022 7.00 5.00
------------------------------------------------------------------------
2023 8.50 6.00
------------------------------------------------------------------------
2024 10.00 7.00
------------------------------------------------------------------------
2025 11.50 8.00
------------------------------------------------------------------------
2026 13.00 9.00
------------------------------------------------------------------------
2027 14.75 10.00
------------------------------------------------------------------------
2028 16.50 11.00
------------------------------------------------------------------------
2029 18.25 12.00
------------------------------------------------------------------------
2030 20.00 13.00.
------------------------------------------------------------------------
``(3) Subsequent years.--
``(A) Calendar years 2031 through 2040.--Not later
than December 31, 2028, the Secretary shall promulgate
regulations establishing performance standards
(expressed as applicable percentages of base quantity
for both cumulative electricity savings and cumulative
natural gas savings) for each of calendar years 2031
through 2040.
``(B) Requirements.--The Secretary shall establish
standards under this paragraph at levels reflecting the
maximum achievable level of cost-effective energy
efficiency potential, taking into account--
``(i) cost-effective energy savings
achieved by leading retail electricity
suppliers and retail natural gas suppliers;
``(ii) opportunities for new codes and
standard savings;
``(iii) technology improvements; and
``(iv) other indicators of cost-effective
energy efficiency potential including
differences between States.
``(C) Minimum percentage.--In no case shall the
applicable percentages for any calendar year be less
than the applicable percentages for calendar year 2030.
``(4) Delay of submission for first reporting period.--
``(A) In general.--Notwithstanding paragraphs (1)
and (2), for the 2017 reporting period, the Secretary
may accept a request from a retail electricity supplier
or a retail natural gas supplier to delay the required
submission of documentation of all or part of the
required savings for up to 2 years.
``(B) Plan for compliance.--The request for delay
under subparagraph (A) shall include a plan for coming
into full compliance by the end of the 2018-2019
reporting period.
``(5) Applying unused savings to future years.--If savings
achieved in a year exceed the performance standards specified
in this subsection, any savings in excess of the performance
standards may be applied toward performance standards specified
for future years.
``(d) Enforcement and Judicial Review.--
``(1) Review of retail supplier reports.--
``(A) In general.--The Secretary shall review each
report submitted to the Secretary by a retail
electricity supplier or retail natural gas supplier
under subsection (c) to verify that the applicable
performance standards under subsection (c) have been
met.
``(B) Exclusion.--In determining compliance with
the applicable performance standards under subsection
(c), the Secretary shall exclude reported electricity
savings or natural gas savings that are not adequately
demonstrated and documented, in accordance with the
regulations promulgated under subsections (b) and (c).
``(2) Penalty for failure to document adequate savings.--If
a retail electricity supplier or a retail natural gas supplier
fails to demonstrate compliance with an applicable performance
standard under subsection (c), or to pay to the State an
applicable alternative compliance payment under subsection
(e)(3), the Secretary shall assess against the retail
electricity supplier or retail natural gas supplier a civil
penalty for each failure in an amount equal to, as adjusted for
inflation in accordance with such regulations as the Secretary
may promulgate--
``(A) $100 per megawatt hour of electricity savings
or alternative compliance payment that the retail
electricity supplier failed to achieve or make,
respectively; or
``(B) $10 per million Btu of natural gas savings or
alternative compliance payment that the retail natural
gas supplier failed to achieve or make, respectively.
``(3) Offsetting state penalties.--The Secretary shall
reduce the amount of any penalty under paragraph (2) by the
amount paid by the relevant retail electricity supplier or
retail natural gas supplier to a State for failure to comply
with the requirements of a State energy efficiency resource
standard during the same compliance period.
``(4) Enforcement procedures.--The Secretary shall assess a
civil penalty, as provided under paragraph (2), in accordance
with the procedures described in section 333(d) of the Energy
Policy and Conservation Act of 1954 (42 U.S.C. 6303).
``(e) State Administration.--
``(1) In general.--Upon receipt of an application from the
Governor of a State (including the Mayor of the District of
Columbia), the Secretary may delegate to the State
responsibility for administering this section within the
territory of the State if the Secretary determines that the
State will implement an energy efficiency program that meets or
exceeds the requirements of this section.
``(2) Secretarial determination.--Not later than 180 days
after the date on which a complete application is received by
the Secretary, the Secretary shall make a substantive
determination approving or disapproving a State application,
after public notice and comment.
``(3) Alternative compliance payments.--
``(A) In general.--As part of an application
submitted under paragraph (1), a State may permit
retail electricity suppliers or retail natural gas
suppliers to pay to the State, by not later than May 1
of the calendar year immediately following the
applicable reporting period, an alternative compliance
payment in an amount equal to, as adjusted for
inflation in accordance with such regulations as the
Secretary may promulgate, not less than--
``(i) $50 per megawatt hour of electricity
savings needed to make up any deficit with
regard to a compliance obligation under the
applicable performance standard; or
``(ii) $5 per million Btu of natural gas
savings needed to make up any deficit with
regard to a compliance obligation under the
applicable performance standard.
``(B) Use of payments.--Alternative compliance
payments collected by a State under subparagraph (A)
shall be used by the State to administer the delegated
authority of the State under this section and to
implement cost-effective energy efficiency programs
that--
``(i) to the maximum extent practicable,
achieve electricity savings and natural gas
savings in the State sufficient to make up the
deficit associated with the alternative
compliance payments; and
``(ii) can be measured and verified in
accordance with the applicable procedures and
standards under subsection (b)(1)(B).
``(4) Review of state implementation.--
``(A) Periodic review.--Every 2 years, the
Secretary shall review State implementation of this
section for conformance with the requirements of this
section in approximately \1/2\ of the States that have
received approval under this subsection to administer
the program, so that each State shall be reviewed at
least every 4 years.
``(B) Report.--To facilitate the review under
subparagraph (A), the Secretary may require the State
to submit a report demonstrating the conformance of the
State with the requirements of this section.
``(C) Deficiencies.--
``(i) In general.--In completing a review
under this paragraph, if the Secretary finds
deficiencies, the Secretary shall--
``(I) notify the State of the
deficiencies;
``(II) direct the State to correct
the deficiencies; and
``(III) require the State to report
to the Secretary on progress made by
not later than 180 days after the date
on which the State receives notice
under subclause (I).
``(ii) Substantial deficiencies.--If the
deficiencies are substantial, the Secretary
shall--
``(I) disallow the reported
electricity savings or natural gas
savings that the Secretary determines
are not credible due to deficiencies;
``(II) re-review the State not
later than 2 years after the date on
which the original review was
completed; and
``(III) if substantial deficiencies
remain uncorrected after the review
provided for under subclause (II),
revoke the authority of the State to
administer the program established
under this section.
``(f) Information and Reports.--In accordance with section 13 of
the Federal Energy Administration Act of 1974 (15 U.S.C. 772), the
Secretary may require any retail electricity supplier, retail natural
gas supplier, third-party efficiency provider, or any other entity that
the Secretary determines appropriate, to provide any information the
Secretary determines appropriate to carry out this section.
``(g) State Law.--Nothing in this section diminishes or qualifies
any authority of a State or political subdivision of a State to adopt
or enforce any law or regulation respecting electricity savings or
natural gas savings, including any law or regulation establishing
energy efficiency requirements that are more stringent than those under
this section, except that no State law or regulation shall relieve any
person of any requirement otherwise applicable under this section.''.
(b) Conforming Amendment.--The table of contents of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) is
amended by adding at the end of the items relating to title VI the
following:
``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Federal energy efficiency resource standard for retail
electricity and natural gas suppliers.''.
<all>