Energy Justice Network

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DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND TRANSMISSION

TITLE I--REGIONAL COORDINATION

      Sec. 101. Policy on regional coordination.

      Sec. 102. Federal support for regional coordination.

TITLE II--ELECTRICITY

Subtitle A--Amendments to the Federal Power Act

Subtitle B--Amendments to the Public Utility Holding Company Act

Subtitle C--Amendments to the Public Utility Regulatory Policies Act of 1978

      Sec. 241. Real-time pricing and time-of-use metering standards.

      Sec. 242. Adoption of additional standards.

      Sec. 243. Technical assistance.

      Sec. 244. Cogeneration and small power production purchase and sale requirements.

      Sec. 245. Net metering.

Subtitle D--Consumer Protections

Subtitle E--Renewable Energy and Rural Construction Grants

Subtitle F--General Provisions

TITLE III--HYDROELECTRIC RELICENSING

      Sec. 301. Alternative conditions and fishways.

TITLE IV--INDIAN ENERGY

      Sec. 401. Comprehensive Indian energy program.

      Sec. 402. Office of Indian Energy Policy and Programs.

      Sec. 403. Conforming amendments.

      Sec. 404. Siting energy facilities on tribal lands.

      Sec. 405. Indian Mineral Development Act review.

      Sec. 406. Renewable energy study.

      Sec. 407. Federal Power Marketing Administrations.

      Sec. 408. Feasibility study of combined wind and hydropower demonstration project.

TITLE V--NUCLEAR POWER

Subtitle A--Price-Anderson Act Reauthorization

Subtitle B--Miscellaneous Provisions

Subtitle C--Growth of Nuclear Energy

Subtitle D--NRC Regulatory Reform

Subtitle E--NRC Personnel Crisis

DIVISION B--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION

TITLE VI--OIL AND GAS PRODUCTION

      Sec. 601. Permanent authority to operate the Strategic Petroleum Reserve.

      Sec. 602. Federal onshore leasing programs for oil and gas.

      Sec. 603. Oil and gas lease acreage limitations.

      Sec. 604. Orphaned and abandoned wells on Federal land.

      Sec. 605. Orphaned and abandoned oil and gas well program.

      Sec. 606. Offshore development.

      Sec. 607. Coalbed methane study.

      Sec. 608. Fiscal policies to maximize recovery of domestic oil and gas resources.

      Sec. 609. Strategic Petroleum Reserve.

      Sec. 610. Hydraulic fracturing.

      Sec. 611. Authorization of appropriations.

      Sec. 612. Preservation of oil and gas resource data.

      Sec. 613. Resolution of Federal resource development conflicts in the Powder River Basin.

TITLE VII--NATURAL GAS PIPELINES

Subtitle A--Alaska Natural Gas Pipeline

Subtitle B--Operating Pipelines

      Sec. 721. Environmental review and permitting of natural gas pipeline projects.

Subtitle C--Pipeline Safety

Part I--Short Title; Amendment of Title 49

      Sec. 741. Short title; amendment of title 49, United States Code.

Part II--Pipeline Safety Improvement Act of 2002

      Sec. 761. Implementation of Inspector General recommendations.

      Sec. 762. NTSB safety recommendations.

      Sec. 763. Qualifications of pipeline personnel.

      Sec. 764. Pipeline integrity inspection program.

      Sec. 765. Enforcement.

      Sec. 766. Public education, emergency preparedness, and community right-to-know.

      Sec. 767. Penalties.

      Sec. 768. State oversight role.

      Sec. 769. Improved data and data availability.

      Sec. 770. Research and development.

      Sec. 771. Pipeline integrity technical advisory committee.

      Sec. 772. Authorization of appropriations.

      Sec. 773. Operator assistance in investigations.

      Sec. 774. Protection of employees providing pipeline safety information.

      Sec. 775. State pipeline safety advisory committees.

      Sec. 776. Fines and penalties.

      Sec. 777. Study of rights-of-way.

      Sec. 778. Study of natural gas reserve.

      Sec. 779. Study and report on natural gas pipeline and storage facilities in New England.

Part III--Pipeline Security Sensitive Information

      Sec. 781. Meeting community right-to-know without security risks.

      Sec. 782. Technical assistance for security of pipeline facilities.

      Sec. 783. Criminal penalties for damaging or destroying a facility.


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DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND TRANSMISSION

TITLE I--REGIONAL COORDINATION

SEC. 101. POLICY ON REGIONAL COORDINATION.

    (a) STATEMENT OF POLICY- It is the policy of the Federal Government to encourage States to coordinate, on a regional basis, State energy policies to provide reliable and affordable energy services to the public while minimizing the impact of providing energy services on communities and the environment.

    (b) DEFINITION OF ENERGY SERVICES- For purposes of this section, the term `energy services' means--

      (1) the generation or transmission of electric energy,

      (2) the transportation, storage, and distribution of crude oil, residual fuel oil, refined petroleum product, or natural gas, or

      (3) the reduction in load through increased efficiency, conservation, or load control measures.

SEC. 102. FEDERAL SUPPORT FOR REGIONAL COORDINATION.

    (a) TECHNICAL ASSISTANCE- The Secretary of Energy shall provide technical assistance to States and regional organizations formed by two or more States to assist them in coordinating their energy policies on a regional basis. Such technical assistance may include assistance in--

      (1) identifying the areas with the greatest energy resource potential, and assessing future supply availability and demand requirements,

      (2) planning, coordinating, and siting additional energy infrastructure, including generating facilities, electric transmission facilities, pipelines, refineries, and distributed generation facilities to maximize the efficiency of energy resources and infrastructure and meet regional needs with the minimum adverse impacts on the environment,

      (3) identifying and resolving problems in distribution networks,

      (4) developing plans to respond to surge demand or emergency needs, and

      (5) developing renewable energy, energy efficiency, conservation, and load control programs.

    (b) Annual Conference on Regional Energy Coordination-

      (1) ANNUAL CONFERENCE- The Secretary of Energy shall convene an annual conference to promote regional coordination on energy policy and infrastructure issues.

      (2) PARTICIPATION- The Secretary of Energy shall invite appropriate representatives of Federal, State, and regional energy organizations, and other interested parties.

      (3) STATE AND FEDERAL AGENCY COOPERATION- The Secretary of Energy shall consult and cooperate with State and regional energy organizations, the Secretary of the Interior, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of the Treasury, the Chairman of the Federal Energy Regulatory Commission, the Administrator of the Environmental Protection Agency, and the Chairman of the Council on Environmental Quality in the planning and conduct of the conference.

      (4) AGENDA- The Secretary of Energy, in consultation with the officials identified in paragraph (3) and participants identified in paragraph (2), shall establish an agenda for each conference that promotes regional coordination on energy policy and infrastructure issues.

      (5) RECOMMENDATIONS- Not later than 60 days after the conclusion of each annual conference, the Secretary of Energy shall report to the President and the Congress recommendations arising out of the conference that may improve--

        (A) regional coordination on energy policy and infrastructure issues, and

        (B) Federal support for regional coordination.

TITLE II--ELECTRICITY

Subtitle A--Amendments to the Federal Power Act

SEC. 201. DEFINITIONS.

    (a) DEFINITION OF ELECTRIC UTILITY- Section 3(22) of the Federal Power Act (16 U.S.C. 796(22)) is amended to read as follows:

      `(22) `electric utility' means any person or Federal or State agency (including any municipality) that sells electric energy; such term includes the Tennessee Valley Authority and each Federal power marketing agency.'.

    (b) DEFINITION OF TRANSMITTING UTILITY- Section 3(23) of the Federal Power Act (16 U.S.C. 796(23)) is amended to read as follows:

      `(23) TRANSMITTING UTILITY- The term `transmitting utility' means an entity (including any entity described in section 201(f)) that owns or operates facilities used for the transmission of electric energy in--

        `(A) interstate commerce; or

        `(B) for the sale of electric energy at wholesale.'.

SEC. 202. ELECTRIC UTILITY MERGERS.

    Section 203(a) of the Federal Power Act (16 U.S.C. 824b) is amended to read as follows:

    `(a)(1) No public utility shall, without first having secured an order of the Commission authorizing it to do so--

      `(A) sell, lease, or otherwise dispose of the whole of its facilities subject to the jurisdiction of the Commission, or any part thereof of a value in excess of $10,000,000,

      `(B) merge or consolidate, directly or indirectly, such facilities or any part thereof with the facilities of any other person, by any means whatsoever,

      `(C) purchase, acquire, or take any security of any other public utility, or

      `(D) purchase, lease, or otherwise acquire existing facilities for the generation of electric energy unless such facilities will be used exclusively for the sale of electric energy at retail.

    `(2) No holding company in a holding company system that includes a transmitting utility or an electric utility company shall purchase, acquire, or take any security of, or, by any means whatsoever, directly or indirectly, merge or consolidate with a transmitting utility, an electric utility company, a gas utility company, or a holding company in a holding company system that includes a transmitting utility, an electric utility company, or a gas utility company, without first having secured an order of the Commission authorizing it to do so.

    `(3) Upon application for such approval the Commission shall give reasonable notice in writing to the Governor and State commission of each of the States in which the physical property affected, or any part thereof, is situated, and to such other persons as it may deem advisable.

    `(4) After notice and opportunity for hearing, the Commission shall approve the proposed disposition, consolidation, acquisition, or control, if it finds that the proposed transaction--

      `(A) will be consistent with the public interest;

      `(B) will not adversely affect the interests of consumers of electric energy of any public utility that is a party to the transaction or is an associate company of any party to the transaction;

      `(C) will not impair the ability of the Commission or any State commission having jurisdiction over any public utility that is a party to the transaction or an associate company of any party to the transaction to protect the interests of consumers or the public; and

      `(D) will not lead to cross-subsidization of associate companies or encumber any utility assets for the benefit of an associate company.

    `(5) The Commission shall, by rule, adopt procedures for the expeditious consideration of applications for the approval of dispositions, consolidations, or acquisitions under this section. Such rules shall identify classes of transactions, or specify criteria for transactions, that normally meet the standards established in paragraph (4), and shall require the Commission to grant or deny an application for approval of a transaction of such type within 90 days after the conclusion of the hearing or opportunity to comment under paragraph (4). If the Commission does not act within 90 days, such application shall be deemed granted unless the Commission finds that further consideration is required to determine whether the proposed transaction meets the standards of paragraph (4) and issues one or more orders tolling the time for acting on the application for an additional 90 days.

    `(6) For purposes of this subsection, the terms `associate company', `electric utility company', `gas utility company', `holding company', and `holding company system' have the meaning given those terms in the Public Utility Holding Company Act of 2002.'.

SEC. 203. MARKET-BASED RATES.

    (a) APPROVAL OF MARKET-BASED RATES- Section 205 of the Federal Power Act (16 U.S.C. 824d) is amended by adding at the end the following:

    `(h) The Commission may determine whether a market-based rate for the sale of electric energy subject to the jurisdiction of the Commission is just and reasonable and not unduly discriminatory or preferential. In making such determination, the Commission shall consider such factors as the Commission may deem to be appropriate and in the public interest, including to the extent the Commission considers relevant to the wholesale power market--

      `(1) market power;

      `(2) the nature of the market and its response mechanisms; and

      `(3) reserve margins.'.

    (b) REVOCATION OF MARKET-BASED RATES- Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended by adding at the end the following:

    `(f) Whenever the Commission, after a hearing had upon its own motion or upon complaint, finds that a rate charged by a public utility authorized to charge a market-based rate under section 205 is unjust, unreasonable, unduly discriminatory or preferential, the Commission shall determine the just and reasonable rate and fix the same by order.'.

SEC. 204. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is amended by--

      (1) striking `the date 60 days after the filing of such complaint nor later than 5 months after the expiration of such 60-day period' in the second sentence and inserting `the date of the filing of such complaint nor later than 5 months after the filing of such complaint';

      (2) striking `60 days after' in the third sentence and inserting `of'; and

      (3) striking `expiration of such 60-day period' in the third sentence and inserting `publication date'.

SEC. 205. OPEN ACCESS TRANSMISSION BY CERTAIN UTILITIES.

    Part II of the Federal Power Act is further amended by inserting after section 211 the following:

`OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES

    `SEC. 211A. (a) Subject to section 212(h), the Commission may, by rule or order, require an unregulated transmitting utility to provide transmission services--

      `(1) at rates that are comparable to those that the unregulated transmitting utility charges itself, and

      `(2) on terms and conditions (not relating to rates) that are comparable to those under Commission rules that require public utilities to offer open access transmission services and that are not unduly discriminatory or preferential.

    `(b) The Commission shall exempt from any rule or order under this subsection any unregulated transmitting utility that--

      `(1) sells no more than 4,000,000 megawatt hours of electricity per year;

      `(2) does not own or operate any transmission facilities that are necessary for operating an interconnected transmission system (or any portion thereof); or

      `(3) meets other criteria the Commission determines to be in the public interest.

    `(c) The rate changing procedures applicable to public utilities under subsections (c) and (d) of section 205 are applicable to unregulated transmitting utilities for purposes of this section.

    `(d) In exercising its authority under paragraph (1), the Commission may remand transmission rates to an unregulated transmitting utility for review and revision where necessary to meet the requirements of subsection (a).

    `(e) The provision of transmission services under subsection (a) does not preclude a request for transmission services under section 211.

    `(f) The Commission may not require a State or municipality to take action under this section that constitutes a private business use for purposes of section 141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).

    `(g) For purposes of this subsection, the term `unregulated transmitting utility' means an entity that--

      `(1) owns or operates facilities used for the transmission of electric energy in interstate commerce, and

      `(2) is either an entity described in section 201(f) or a rural electric cooperative.'.

SEC. 206. ELECTRIC RELIABILITY STANDARDS.

    Part II of the Federal Power Act (16 U.S.C 824 et seq.) is amended by inserting the following after section 215 as added by this Act:

`SEC. 216. ELECTRIC RELIABILITY.

    `(a) DEFINITIONS- For purposes of this section--

      `(1) `bulk-power system' means the network of interconnected transmission facilities and generating facilities;

      `(2) `electric reliability organization' means a self-regulating organization certified by the Commission under subsection (c) whose purpose is to promote the reliability of the bulk-power system; and

      `(3) `reliability standard' means a requirement to provide for reliable operation of the bulk-power system approved by the Commission under this section.

    `(b) JURISIDICTION AND APPLICABILITY- The Commission shall have jurisdiction, within the United States, over an electric reliability organization, any regional entities, and all users, owners and operators of the bulk-power system, including but not limited to the entities described in section 201(f), for purposes of approving reliability standards and enforcing compliance with this section. All users, owners and operators of the bulk-power system shall comply with reliability standards that take effect under this section.

    `(c) CERTIFICATION- (1) The Commission shall issue a final rule to implement the requirements of this section not later than 180 days after the date of enactment of this section.

    `(2) Following the issuance of a Commission rule under paragraph (1), any person may submit an application to the Commission for certification as an electric reliability organization. The Commission may certify an applicant if the Commission determines that the applicant--

      `(A) has the ability to develop, and enforce reliability standards that provide for an adequate level of reliability of the bulk-power system;

      `(B) has established rules that--

        `(i) assure its independence of the users and owners and operators of the bulk-power system; while assuring fair stakeholder representation in the selection of its directors and balanced decisionmaking in any committee or subordinate organizational structure;

        `(ii) allocate equitably dues, fees, and other charges among end users for all activities under this section;

        `(iii) provide fair and impartial procedures for enforcement of reliability standards through imposition of penalties (including limitations on activities, functions, or operations, or other appropriate sanctions); and

        `(iv) provide for reasonable notice and opportunity for public comment, due process, openness, and balance of interests in developing reliability standards and otherwise exercising its duties.

    `(3) 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.

    `(d) RELIABILITY STANDARDS- (1) An electric reliability organization shall file a proposed reliability standard or modification to a reliability standard with the Commission.

    `(2) The Commission may approve a proposed reliability standard or modification to a reliability standard if it determines that the standard is just, reasonable, not unduly discriminatory or preferential, and in the public interest. The Commission shall give due weight to the technical expertise of the electric reliability organization with respect to the content of a proposed standard or modification to a reliability standard, but shall not defer with respect to its effect on competition.

    `(3) The electric reliability organization and the Commission shall rebuttably presume that a proposal from a regional entity organized on an interconnection-wide basis for a reliability standard or modification to a reliability standard to be applicable on an interconnection-wide basis is just, reasonable, and not unduly discriminatory or preferential, and in the public interest.

    `(4) The Commission shall remand to the electric reliability organization for further consideration a proposed reliability standard or a modification to a reliability standard that the Commission disapproves in whole or in part.

    `(5) The Commission, upon its own motion or upon complaint, may order an electric reliability organization to submit to the Commission a proposed reliability standard or a modification to a reliability standard that addresses a specific matter if the Commission considers such a new or modified reliability standard appropriate to carry out this section.

    `(e) ENFORCEMENT- (1) An electric reliability organization may impose a penalty on a user or owner or operator of the bulk-power system if the electric reliability organization, after notice and an opportunity for a hearing--

      `(A) finds that the user or owner or operator of the bulk-power system has violated a reliability standard approved by the Commission under subsection (d); and

      `(B) files notice with the Commission, which shall affirm, set aside or modify the action.

    `(2) On its own motion or upon complaint, the Commission may order compliance with a reliability standard and may impose a penalty against a user or owner or operator of the bulk-power system, if the Commission finds, after notice and opportunity for a hearing, that the user or owner or operator of the bulk-power system has violated or threatens to violate a reliability standard.

    `(3) The Commission shall establish regulations authorizing the electric reliability organization to enter into an agreement to delegate authority to a regional entity for the purpose of proposing and enforcing reliability standards (including related activities) if the regional entity satisfies the provisions of subsection (c)(2) (A) and (B) and the agreement promotes effective and efficient administration of bulk-power system reliability, and may modify such delegation. The electric reliability organization and the Commission shall rebuttably presume that a proposal for delegation to a regional entity organized on an interconnection-wide basis promotes effective and efficient administration of bulk-power system reliability and should be approved. Such regulation may provide that the Commission may assign the electric reliability organization's authority to enforce reliability standards directly to a regional entity consistent with the requirements of this paragraph.

    `(4) The Commission may take such action as is necessary or appropriate against the electric reliability organization or a regional entity to ensure compliance with a reliability standard or any Commission order affecting the electric reliability organization or a regional entity.

    `(f) CHANGES IN ELECTRICITY RELIALB1LITY ORGANIZATION RULES- An electric reliability organization shall file with the Commission for approval any proposed rule or proposed rule change, accompanied by an explanation of its basis and purpose. The Commission, upon its own motion or complaint, may propose a change to the rules of the electric reliability organization. A proposed rule or proposed rule change shall take effect upon a finding by the Commission, after notice and opportunity for comment, that the change is just, reasonable, not unduly discriminatory or preferential, is in the public interest, and satisfies the requirements of subsection (c)(2).

    `(g) COORDINATION WITH CANADA AND MEXICO- (1) The electric reliability organization shall take all appropriate steps to gain recognition in Canada and Mexico.

    `(2) The President shall use his best efforts to enter into international agreements with the governments of Canada and Mexico to provide for effective compliance with reliability standards and the effectiveness of the electric reliability organization in the United States and Canada or Mexico.

    `(h) RELIABILITY REPORTS- The electric reliability organization shall conduct periodic assessments of the reliability and adequacy of the interconnected bulk-power system in North America.

    `(i) SAVINGS PROVISIONS- (1) The electric reliability organization shall have authority to develop and enforce compliance with standards for the reliable operation of only the bulk-power system.

    `(2) This section does not provide the electric reliability organization or the Commission with the authority to order the construction of additional generation or transmission capacity or to set and enforce compliance with standards for adequacy or safety of electric facilities or services.

    `(3) Nothing in this section shall be construed to preempt any authority of any State to take action to ensure the safety, adequacy, and reliability of electric service within that State, as long as such action is not inconsistent with any reliability standard.

    `(4) Within 90 days of the application of the electric reliability organization or other affected party, and after notice and opportunity for comment, the Commission shall issue a final order determining whether a State action is inconsistent with a reliability standard, taking into consideration any recommendation of the electric reliability organization.

    `(5) The Commission, after consultation with the electric reliability organization, may stay the effectiveness of any State action, pending the Commission's issuance of a final order.

    `(j) APPLICATION OF ANTITRUST LAWS-

      `(1) IN GENERAL- To the extent undertaken to develop, implement, or enforce a reliability standard, each of the following activities shall not, in any action under the antitrust laws, be deemed illegal per se--

        `(A) activities undertaken by an electric reliability organization under this section, and

        `(B) activities of a user or owner or operator of the bulk-power system undertaken in good faith under the rules of an electric reliability organization.

      `(2) RULE OF REASON- In any action under the antitrust laws, an activity described in paragraph (1) shall be judged on the basis of its reasonableness, taking into account all relevant factors affecting competition and reliability.

      `(3) DEFINITION- For purposes of this subsection, `antitrust laws' has the meaning given the term 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.

    `(k) REGIONAL ADVISORY BODIES- The Commission shall establish a regional advisory body on the petition of at least two-thirds of the States within a region that have more than one-half of their electric load served within the region. A regional advisory body shall be composed of one member from each participating State in the region, appointed by the Governor of each State, and may include representatives of agencies, States, and provinces outside the United States. A regional advisory body may provide advice to the electric reliability organization, a regional reliability entity, or the Commission regarding the governance of an existing or proposed regional reliability entity within the same region, whether a standard proposed to apply within the region is just, reasonable, not unduly discriminatory or preferential, and in the public interest, whether fees proposed to be assessed within the region are just, reasonable, not unduly discriminatory or preferential, and in the public interest and any other responsibilities requested by the Commission. The Commission may give deference to the advice of any such regional advisory body if that body is organized on an interconnection-wide basis.

    `(l) APPLICATION TO ALASKA AND HAWAII- The provisions of this section do not apply to Alaska or Hawaii.'.

SEC. 207. MARKET TRANSPARENCY RULES.

    Part II of the Federal Power Act is further amended by adding at the end the following:

`SEC. 216. MARKET TRANSPARENCY RULES.

    `(a) COMMISSION RULES- Not later than 180 days after the date of enactment of this section, the Commission shall issue rules establishing an electronic information system to provide information about the availability and price of wholesale electric energy and transmission services to the Commission, State commissions, buyers and sellers of wholesale electric energy, users of transmission services, and the public on a timely basis.

    `(b) INFORMATION REQUIRED- The Commission shall require--

      `(1) each regional transmission organization to provide statistical information about the available capacity and capacity constraints of transmission facilities operated by the organization; and

      `(2) each broker, exchange, or other market-making entity that matches offers to sell and offers to buy wholesale electric energy in interstate commerce to provide statistical information about the amount and sale price of sales of electric energy at wholesale in interstate commerce it transacts.

    `(c) TIMELY BASIS- The Commission shall require the information required under subsection (b) to be posted on the Internet as soon as practicable and updated as frequently as practicable.

    `(d) PROTECTION OF SENSITIVE INFORMATION- The Commission shall exempt from disclosure commercial or financial information that the Commission, by rule or order, determines to be privileged, confidential, or otherwise sensitive.'.

SEC. 208. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.

    Part II of the Federal Power Act is further amended by adding at the end the following:

`SEC. 217. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.

    `(a) FAIR TREATMENT OF INTERMITTENT GENERATORS- The Commission shall ensure that all transmitting utilities provide transmission service to intermittent generators in a manner that does not unduly prejudice or disadvantage such generators for characteristics that are--

      `(1) inherent to intermittent energy resources; and

      `(2) are beyond the control of such generators.

    `(b) POLICIES- The Commission shall ensure that the requirement in subsection (a) is met by adopting such policies as it deems appropriate which shall include the following:

      `(1) Subject to the sole exception set forth in paragraph (2), the Commission shall ensure that the rates transmitting utilities charge intermittent generator customers for transmission services do not unduly prejudice or disadvantage intermittent generator customers for scheduling deviations.

      `(2) The Commission may exempt a transmitting utility from the requirement set forth in paragraph (1) if the transmitting utility demonstrates that scheduling deviations by its intermittent generator customers are likely to have an adverse impact on the reliability of the transmitting utility's system.

      `(3) The Commission shall ensure that to the extent any transmission charges recovering the transmitting utility's embedded costs are assessed to such intermittent generators, they are assessed to such generators on the basis of kilowatt-hours generated or some other method to ensure that they are fully recovered by the transmitting utility.

      `(4) The Commission shall require transmitting utilities to offer to intermittent generators, and may require transmitting utilities to offer to all transmission customers, access to nonfirm transmission service.

    `(c) DEFINITIONS- As used in this section:

      `(1) The term `intermittent generator' means a facility that generates electricity using wind or solar energy and no other energy source.

      `(2) The term `nonfirm transmission service' means transmission service provided on an `as available' basis.

      `(3) The term `scheduling deviation' means delivery of more or less energy than has previously been forecast in a schedule submitted by an intermittent generator to a control area operator or transmitting utility.'.

SEC. 209. ENFORCEMENT.

    (a) COMPLAINTS- Section 306 of the Federal Power Act (16 U.S.C. 825e) is amended by--

      (1) inserting `electric utility,' after `Any person,'; and

      (2) inserting `transmitting utility,' after `licensee' each place it appears.

    (b) INVESTIGATIONS- Section 307(a) of the Federal Power Act (16 U.S.C. 825f(a)) is amended by inserting `or transmitting utility' after `any person' in the first sentence.

    (c) REVIEW OF COMMISSION ORDERS- Section 313(a) of the Federal Power Act (16 U.S.C. 8251) is amended by inserting `electric utility,' after `Any person,' in the first sentence.

    (d) CRIMINAL PENALTIES- Section 316(c) of the Federal Power Act (16 U.S.C. 825o(c)) is repealed.

    (e) CIVIL PENALTIES- Section 316A of the Federal Power Act (16 U.S.C. 825o-1) is amended by striking `section 211, 212, 213, or 214' each place it appears and inserting `Part II'.

SEC. 210. ELECTRIC POWER TRANSMISSION SYSTEMS.

    The Federal Government should be attentive to electric power transmission issues, including issues that can be addressed through policies that facilitate investment in, the enhancement of, and the efficiency of electric power transmission systems.

Subtitle B--Amendments to the Public Utility Holding Company Act

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the `Public Utility Holding Company Act of 2002'.

SEC. 222. DEFINITIONS.

    For purposes of this subtitle:

      (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 utility company' have the same meanings as in sections 32 and 33, respectively, of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as those sections existed on the day before the effective date of this subtitle.

      (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 subtitle 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 in interstate commerce, 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.

      (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 in interstate commerce 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 or 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 subtitle upon subsidiary companies of holding companies.

      (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. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

    The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et seq.) is repealed.

SEC. 224. 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, 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.

    (b) AFFILIATE COMPANIES- Each affiliate of a holding company or of any subsidiary company of a holding company shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records with respect to any transaction with another affiliate, 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.

    (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 to be 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. 225. 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 books, accounts, memoranda, and other records that--

      (1) have been identified in reasonable detail by 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 (16 U.S.C. 2601 et seq.).

    (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, accounts, memoranda, and other records, or in any way limit the rights of any State to obtain books, accounts, memoranda, and other records 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. 226. EXEMPTION AUTHORITY.

    (a) RULEMAKING- Not later than 90 days after the effective date of this subtitle, the Commission shall promulgate a final rule to exempt from the requirements of section 224 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 (16 U.S.C. 2601 et seq.);

      (2) exempt wholesale generators; or

      (3) foreign utility companies.

    (b) OTHER AUTHORITY- The Commission shall exempt a person or transaction from the requirements of section 224, if, upon application or upon the motion of the Commission--

      (1) the Commission finds that the books, accounts, memoranda, and other records of any person are not relevant to the jurisdictional rates of a public utility or natural gas company; or

      (2) the Commission finds that any class of transactions is not relevant to the jurisdictional rates of a public utility or natural gas company.

SEC. 227. AFFILIATE TRANSACTIONS.

    (a) COMMISSION AUTHORITY UNAFFECTED- Nothing in this subtitle shall limit the authority of the Commission under the Federal Power Act (16 U.S.C. 791a et seq.) to require that jurisdictional rates are just and reasonable, including the ability to deny or approve the pass through of costs, the prevention of cross-subsidization, and the promulgation of such rules and regulations as are necessary or appropriate for the protection of utility consumers.

    (b) RECOVERY OF COSTS- Nothing in this subtitle 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. 228. APPLICABILITY.

    Except as otherwise specifically provided in this subtitle, no provision of this subtitle 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 his or her official duty.

SEC. 229. EFFECT ON OTHER REGULATIONS.

    Nothing in this subtitle precludes the Commission or a State commission from exercising its jurisdiction under otherwise applicable law to protect utility customers.

SEC. 230. 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. 825e-825p) to enforce the provisions of this subtitle.

SEC. 231. SAVINGS PROVISIONS.

    (a) IN GENERAL- Nothing in this subtitle 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 subtitle.

    (b) EFFECT ON OTHER COMMISSION AUTHORITY- Nothing in this subtitle 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. 232. IMPLEMENTATION.

    Not later than 18 months after the date of enactment of this subtitle, the Commission shall--

      (1) promulgate such regulations as may be necessary or appropriate to implement this subtitle (other than section 225); and

      (2) submit to the Congress detailed recommendations on technical and conforming amendments to Federal law necessary to carry out this subtitle and the amendments made by this subtitle.

SEC. 233. TRANSFER OF RESOURCES.

    All books and records that relate primarily to the functions transferred to the Commission under this subtitle shall be transferred from the Securities and Exchange Commission to the Commission.

SEC. 234. INTER-AGENCY REVIEW OF COMPETITION IN THE WHOLESALE AND RETAIL MARKETS FOR ELECTRIC ENERGY.

    (a) TASK FORCE- There is established an inter-agency task force, to be known as the `Electric Energy Market Competition Task Force' (referred to in this section as the `task force'), which shall consist of--

      (1) one member each from--

        (A) the Department of Justice, to be appointed by the Attorney General of the United States;

        (B) the Federal Energy Regulatory Commission, to be appointed by the chairman of that Commission; and

        (C) the Federal Trade Commission, to be appointed by the chairman of that Commission; and

      (2) two advisory members (who shall not vote), of whom--

        (A) one shall be appointed by the Secretary of Agriculture to represent the Rural Utility Service; and

        (B) one shall be appointed by the Chairman of the Securities and Exchange Commission to represent that Commission.

    (b) Study and Report-

      (1) STUDY- The task force shall perform a study and analysis of the protection and promotion of competition within the wholesale and retail market for electric energy in the United States.

      (2) REPORT-

        (A) FINAL REPORT- Not later than 1 year after the effective date of this subtitle, the task force shall submit a final report of its findings under paragraph (1) to the Congress.

        (B) PUBLIC COMMENT- At least 60 days before submission of a final report to the Congress under subparagraph (A), the task force shall publish a draft report in the Federal Register to provide for public comment.

    (c) FOCUS- The study required by this section shall examine--

      (1) the best means of protecting competition within the wholesale and retail electric market;

      (2) activities within the wholesale and retail electric market that may allow unfair and unjustified discriminatory and deceptive practices;

      (3) activities within the wholesale and retail electric market, including mergers and acquisitions, that deny market access or suppress competition;

      (4) cross-subsidization that may occur between regulated and nonregulated activities; and

      (5) the role of State public utility commissions in regulating competition in the wholesale and retail electric market.

    (d) CONSULTATION- In performing the study required by this section, the task force shall consult with and solicit comments from its advisory members, the States, representatives of the electric power industry, and the public.

SEC. 235. GAO STUDY ON IMPLEMENTATION.

    (a) STUDY- The Comptroller General shall conduct a study of the success of the Federal Government and the States during the 18-month period following the effective date of this subtitle in--

      (1) the prevention of anticompetitive practices and other abuses by public utility holding companies, including cross-subsidization and other market power abuses; and

      (2) the promotion of competition and efficient energy markets to the benefit of consumers.

    (b) REPORT TO CONGRESS- Not earlier than 18 months after the effective date of this subtitle or later than 24 months after that effective date, the Comptroller General shall submit a report to the Congress on the results of the study conducted under subsection (a), including probable causes of its findings and recommendations to the Congress and the States for any necessary legislative changes.

SEC. 236. EFFECTIVE DATE.

    This subtitle shall take effect 18 months after the date of enactment of this subtitle.

SEC. 237. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such funds as may be necessary to carry out this subtitle.

SEC. 238. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

    (a) CONFLICT OF JURISDICTION- Section 318 of the Federal Power Act (16 U.S.C. 825q) is repealed.

    (b) DEFINITIONS- (1) Section 201(g) of the Federal Power Act (16 U.S.C. 824(g)) is amended by striking `1935' and inserting `2002'.

    (2) Section 214 of the Federal Power Act (16 U.S.C. 824m) is amended by striking `1935' and inserting `2002'.

Subtitle C--Amendments to the Public Utility Regulatory Policies Act of 1978

SEC. 241. REAL-TIME PRICING AND TIME-OF-USE METERING STANDARDS.

    (a) ADOPTION OF STANDARDS- Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:

      `(11) REAL-TIME PRICING- (A) Each electric utility shall, at the request of an electric consumer, provide electric service under a real-time rate schedule, under which the rate charged by the electric utility varies by the hour (or smaller time interval) according to changes in the electric utility's wholesale power cost. The real-time pricing service shall enable the electric consumer to manage energy use and cost through real-time metering and communications technology.

      `(B) For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.

      `(C) Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall consider and make a determination concerning whether it is appropriate to implement the standard set out in subparagraph (A) not later than 1 year after the date of enactment of this paragraph.

      `(12) TIME-OF-USE METERING- (A) Each electric utility shall, at the request of an electric consumer, provide electric service under a time-of-use rate schedule which enables the electric consumer to manage energy use and cost through time-of-use metering and technology.

      `(B) For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.

      `(C) Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall consider and make a determination concerning whether it is appropriate to implement the standards set out in subparagraph (A) not later than 1 year after the date of enactment of this paragraph.'.

    (b) SPECIAL RULES- Section 115 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the following:

    `(i) REAL-TIME PRICING- In a State that permits third-party marketers to sell electric energy to retail electric consumers, the electric consumer shall be entitled to receive the same real-time metering and communication service as a direct retail electric consumer of the electric utility.

    `(j) TIME-OF-USE METERING- In a State that permits third-party marketers to sell electric energy to retail electric consumers, the electric consumer shall be entitled to receive the same time-of-use metering and communication service as a direct retail electric consumer of the electric utility.'.

SEC. 242. ADOPTION OF ADDITIONAL STANDARDS.

    (a) ADOPTION OF STANDARDS- Section 113(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by adding at the end the following:

      `(6) DISTRIBUTED GENERATION- Each electric utility shall provide distributed generation, combined heat and power, and district heating and cooling systems competitive access to the local distribution grid and competitive pricing of service, and shall use simplified standard contracts for the interconnection of generating facilities that have a power production capacity of 250 kilowatts or less.

      `(7) DISTRIBUTION INTERCONNECTIONS- No electric utility may refuse to interconnect a generating facility with the distribution facilities of the electric utility if the owner or operator of the generating facility complies with technical standards adopted by the State regulatory authority and agrees to pay the costs established by such State regulatory authority.

      `(8) MINIMUM FUEL AND TECHNOLOGY DIVERSITY STANDARD- Each electric utility shall develop a plan to minimize dependence on one fuel source and to ensure that the electric energy it sells to consumers is generated using a diverse range of fuels and technologies, including renewable technologies.

      `(9) FOSSIL FUEL EFFICIENCY- Each electric utility shall develop and implement a ten-year plan to increase the efficiency of its fossil fuel generation and shall monitor and report to its State regulatory authority excessive greenhouse gas emissions resulting from the inefficient operation of its fossil fuel generating plants.'.

    (b) TIME FOR ADOPTING STANDARDS- Section 113 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by adding at the end the following:

    `(d) SPECIAL RULE- For purposes of implementing paragraphs (6), (7), (8), and (9) of subsection (b), any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this subsection.'.

SEC. 243. TECHNICAL ASSISTANCE.

    Section 132(c) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642(c)) is amended to read as follows:

    `(c) TECHNICAL ASSISTANCE FOR CERTAIN RESPONSIBILITIES- The Secretary may provide such technical assistance as he determines appropriate to assist State regulatory authorities and electric utilities in carrying out their responsibilities under section 111(d)(11) and paragraphs (6), (7), (8), and (9) of section 113(b).'.

SEC. 244. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE REQUIREMENTS.

    (a) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS- Section 210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a-3) is amended by adding at the end the following:

    `(m) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS-

      `(1) OBLIGATION TO PURCHASE- After the date of enactment of this subsection, no electric utility shall be required to enter into a new contract or obligation to purchase electric energy from a qualifying cogeneration facility or a qualifying small power production facility under this section if the Commission finds that the qualifying cogeneration facility or qualifying small power production facility has access to independently administered, auction-based day ahead and real time wholesale markets for the sale of electric energy.

      `(2) OBLIGATION TO SELL- After the date of enactment of this subsection, no electric utility shall be required to enter into a new contract or obligation to sell electric energy to a qualifying cogeneration facility or a qualifying small power production facility under this section if competing retail electric suppliers are able to provide electric energy to the qualifying cogeneration facility or qualifying small power production facility.

      `(3) NO EFFECT ON EXISTING RIGHTS AND REMEDIES- Nothing in this subsection affects the rights or remedies of any party under any contract or obligation, in effect on the date of enactment of this subsection, to purchase electric energy or capacity from or to sell electric energy or capacity to a facility under this Act (including the right to recover costs of purchasing electric energy or capacity).

      `(4) RECOVERY OF COSTS-

        `(A) REGULATION- To ensure recovery by an electric utility that purchases electric energy or capacity from a qualifying facility pursuant to any legally enforceable obligation entered into or imposed under this section before the date of enactment of this subsection, of all prudently incurred costs associated with the purchases, the Commission shall issue and enforce such regulations as may be required to ensure that the electric utility shall collect the prudently incurred costs associated with such purchases.

        `(B) ENFORCEMENT- A regulation under subparagraph (A) shall be enforceable in accordance with the provisions of law applicable to enforcement of regulations under the Federal Power Act (16 U.S.C. 791a et seq.).'.

    (b) ELIMINATION OF OWNERSHIP LIMITATIONS-

      (1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C)) is amended to read as follows:

        `(C) `qualifying small power production facility' means a small power production facility that the Commission determines, by rule, meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the Commission may, by rule, prescribe.'.

      (2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 796(18)(B)) is amended to read as follows:

    `(B) `qualifying cogeneration facility' means a cogeneration facility that the Commission determines, by rule, meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the Commission may, by rule, prescribe.'.

SEC. 245. NET METERING.

    (a) ADOPTION OF STANDARD- Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is further amended by adding at the end the following:

      `(13) NET METERING- (A) Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves.

      `(B) For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.

      `(C) Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall consider and make a determination concerning whether it is appropriate to implement the standard set out in subparagraph (A) not later than 1 year after the date of enactment of this paragraph.'.

    (b) SPECIAL RULES FOR NET METERING- Section 115 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is further amended by adding at the end the following:

    `(k) NET METERING-

      `(1) RATES AND CHARGES- An electric utility--

        `(A) shall charge the owner or operator of an on-site generating facility rates and charges that are identical to those that would be charged other electric consumers of the electric utility in the same rate class; and

        `(B) shall not charge the owner or operator of an on-site generating facility any additional standby, capacity, interconnection, or other rate or charge.

      `(2) MEASUREMENT- An electric utility that sells electric energy to the owner or operator of an on-site generating facility shall measure the quantity of electric energy produced by the on-site facility and the quantity of electric energy consumed by the owner or operator of an on-site generating facility during a billing period in accordance with normal metering practices.

      `(3) ELECTRIC ENERGY SUPPLIED EXCEEDING ELECTRIC ENERGY GENERATED- If the quantity of electric energy sold by the electric utility to an on-site generating facility exceeds the quantity of electric energy supplied by the on-site generating facility to the electric utility during the billing period, the electric utility may bill the owner or operator for the net quantity of electric energy sold, in accordance with normal metering practices.

      `(4) ELECTRIC ENERGY GENERATED EXCEEDING ELECTRIC ENERGY SUPPLIED- If the quantity of electric energy supplied by the on-site generating facility to the electric utility exceeds the quantity of electric energy sold by the electric utility to the on-site generating facility during the billing period--

        `(A) the electric utility may bill the owner or operator of the on-site generating facility for the appropriate charges for the billing period in accordance with paragraph (2); and

        `(B) the owner or operator of the on-site generating facility shall be credited for the excess kilowatt-hours generated during the billing period, with the kilowatt-hour credit appearing on the bill for the following billing period.

      `(5) SAFETY AND PERFORMANCE STANDARDS- An eligible on-site generating facility and net metering system used by an electric consumer shall meet all applicable safety, performance, reliability, and interconnection standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories.

      `(6) ADDITIONAL CONTROL AND TESTING REQUIREMENTS- The Commission, after consultation with State regulatory authorities and nonregulated electric utilities and after notice and opportunity for comment, may adopt, by rule, additional control and testing requirements for on-site generating facilities and net metering systems that the Commission determines are necessary to protect public safety and system reliability.

      `(7) DEFINITIONS- For purposes of this subsection:

        `(A) The term `eligible on-site generating facility' means--

          `(i) a facility on the site of a residential electric consumer with a maximum generating capacity of 10 kilowatts or less that is fueled by solar energy, wind energy, or fuel cells; or

          `(ii) a facility on the site of a commercial electric consumer with a maximum generating capacity of 500 kilowatts or less that is fueled solely by a renewable energy resource, landfill gas, or a high efficiency system.

        `(B) The term `renewable energy resource' means solar, wind, biomass, or geothermal energy.

        `(C) The term `high efficiency system' means fuel cells or combined heat and power.

        `(D) The term `net metering service' means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.'.

Subtitle D--Consumer Protections

SEC. 251. INFORMATION DISCLOSURE.

    (a) OFFERS AND SOLICITATIONS- The Federal Trade Commission shall issue rules requiring each electric utility that makes an offer to sell electric energy, or solicits electric consumers to purchase electric energy to provide the electric consumer a statement containing the following information--

      (1) the nature of the service being offered, including information about interruptibility 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 access charges, exit charges, back-up service charges, stranded cost recovery charges, and customer service charges; and

      (4) information the Federal Trade Commission determines is technologically and economically feasible to provide, is of assistance to electric consumers in making purchasing decisions, and concerns--

        (A) the product or its price;

        (B) the share of electric energy that is generated by each fuel type; and

        (C) the environmental emissions produced in generating the electric energy.

    (b) PERIODIC BILLINGS- The Federal Trade Commission shall issue rules requiring any electric utility that sells electric energy to transmit to each of its electric consumers, in addition to the information transmitted pursuant to section 115(f) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625(f)), a clear and concise statement containing the information described in subsection (a)(4) for each billing period (unless such information is not reasonably ascertainable by the electric utility).

SEC. 252. CONSUMER PRIVACY.

    (a) PROHIBITION- The Federal Trade Commission shall issue rules prohibiting any electric utility that obtains consumer information in connection with the sale or delivery of electric energy to an electric consumer from using, disclosing, or permitting access to such information unless the electric consumer to whom such information relates provides prior written approval.

    (b) PERMITTED USE- The rules issued under this section shall not prohibit any electric utility from using, disclosing, or permitting access to consumer information referred to in subsection (a) for any of the following purposes--

      (1) to facilitate an electric consumer's change in selection of an electric utility under procedures approved by the State or State regulatory authority;

      (2) to initiate, render, bill, or collect for the sale or delivery of electric energy to electric consumers or for related services;

      (3) to protect the rights or property of the person obtaining such information;

      (4) to protect retail electric consumers from fraud, abuse, and unlawful subscription in the sale or delivery of electric energy to such consumers;

      (5) for law enforcement purposes; or

      (6) for purposes of compliance with any Federal, State, or local law or regulation authorizing disclosure of information to a Federal, State, or local agency.

    (c) AGGREGATE CONSUMER INFORMATION- The rules issued under this subsection may permit a person to use, disclose, and permit access to aggregate consumer information and may require an electric utility to make such information available to other electric utilities upon request and payment of a reasonable fee.

    (d) DEFINITIONS- As used in this section:

      (1) The term `aggregate consumer information' means collective data that relates to a group or category of retail electric consumers, from which individual consumer identities and characteristics have been removed.

      (2) The term `consumer information' means information that relates to the quantity, technical configuration, type, destination, or amount of use of electric energy delivered to any retail electric consumer.

SEC. 253. OFFICE OF CONSUMER ADVOCACY.

    (a) DEFINITIONS- In this section:

      (1) COMMISSION- The term `Commission' means the Federal Energy Regulatory Commission.

      (2) ENERGY CUSTOMER- The term `energy customer' means a residential customer or a small commercial customer that receives products or services from a public utility or natural gas company under the jurisdiction of the Commission.

      (3) NATURAL GAS COMPANY- The term `natural gas company' has the meaning given the term in section 2 of the Natural Gas Act (15 U.S.C. 717a), as modified by section 601(a) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3431(a)).

      (4) OFFICE- The term `Office' means the Office of Consumer Advocacy established by subsection (b)(1).

      (5) PUBLIC UTILITY- The term `public utility' has the meaning given the term in section 201(e) of the Federal Power Act (16 U.S.C. 824(e)).

      (6) SMALL COMMERCIAL CUSTOMER- The term `small commercial customer' means a commercial customer that has a peak demand of not more than 1,000 kilowatts per hour.

    (b) OFFICE-

      (1) ESTABLISHMENT- There is established within the Department of Justice the Office of Consumer Advocacy.

      (2) DIRECTOR- The Office shall be headed by a Director to be appointed by the President, by and with the advice and consent of the Senate.

      (3) DUTIES- The Office may represent the interests of energy customers on matters concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission--

        (A) at hearings of the Commission;

        (B) in judicial proceedings in the courts of the United States;

        (C) at hearings or proceedings of other Federal regulatory agencies and commissions.

SEC. 254. UNFAIR TRADE PRACTICES.

    (a) SLAMMING- The Federal Trade Commission shall issue rules prohibiting the change of selection of an electric utility except with the informed consent of the electric consumer.

    (b) CRAMMING- The Federal Trade Commission shall issue rules prohibiting the sale of goods and services to an electric consumer unless expressly authorized by law or the electric consumer.

SEC. 255. APPLICABLE PROCEDURES.

    The Federal Trade Commission shall proceed in accordance with section 553 of title 5, United States Code, when prescribing a rule required by this subtitle.

SEC. 256. FEDERAL TRADE COMMISSION ENFORCEMENT.

    Violation of a rule issued under this subtitle shall be treated as a violation of a rule under section 18 of the Federal Trade Commission Act (15 U.S.C. 57a) respecting unfair or deceptive acts or practices. All functions and powers of the Federal Trade Commission under such Act are available to the Federal Trade Commission to enforce compliance with this subtitle notwithstanding any jurisdictional limits in such Act.

SEC. 257. STATE AUTHORITY.

    Nothing in this subtitle shall be construed to preclude a State or State regulatory authority from prescribing and enforcing laws, rules, or procedures regarding the practices which are the subject of this section.

SEC. 258. APPLICATION OF SUBTITLE.

    The provisions of this subtitle apply to each electric utility if the total sales of electric energy by such utility for purposes other than resale exceed 500 million kilowatt-hours per calendar year. The provisions of this subtitle do not apply to the operations of an electric utility to the extent that such operations relate to sales of electric energy for purposes of resale.

SEC. 259. DEFINITIONS.

    As used in this subtitle:

      (1) The term `aggregate consumer information' means collective data that relates to a group or category of electric consumers, from which individual consumer identities and identifying characteristics have been removed.

      (2) The term `consumer information' means information that relates to the quantity, technical configuration, type, destination, or amount of use of electric energy delivered to an electric consumer.

      (3) The terms `electric consumer', `electric utility', and `State regulatory authority' have the meanings given such terms in section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).

Subtitle E--Renewable Energy and Rural Construction Grants

SEC. 261. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) INCENTIVE PAYMENTS- Section 1212(a) of the Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is amended by striking `and which satisfies' and all that follows through `Secretary shall establish.' and inserting the following: `. The Secretary shall establish other procedures necessary for efficient administration of the program. The Secretary shall not establish any criteria or procedures that have the effect of assigning to proposals a higher or lower priority for eligibility or allocation of appropriated funds on the basis of the energy source proposed.'.

    (b) QUALIFIED RENEWABLE ENERGY FACILITY- Section 1212(b) of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--

      (1) by striking `a State or any political' and all that follows through `nonprofit electrical cooperative' and inserting the following: `a nonprofit electrical cooperative, a public utility described in section 115 of such Code, a State, Commonwealth, territory, or possession of the United States or the District of Columbia, or a political subdivision thereof, or an Indian tribal government or subdivision thereof,'; and

      (2) by inserting `landfill gas, incremental hydropower, ocean' after `wind, biomass,'.

    (c) ELIGIBILITY WINDOW- Section 1212(c) of the Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by striking `during the 10-fiscal year period beginning with the first full fiscal year occurring after the enactment of this section' and inserting `before October 1, 2013'.

    (d) PAYMENT PERIOD- Section 1212(d) of the Energy Policy Act of 1992 (42 U.S.C. 13317(d)) is amended by inserting `or in which the Secretary finds that all necessary Federal and State authorizations have been obtained to begin construction of the facility' after `eligible for such payments'.

    (e) AMOUNT OF PAYMENT- Section 1212(e)(1) of the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended by inserting `landfill gas, incremental hydropower, ocean' after `wind, biomass,'.

    (f) SUNSET- Section 1212(f) of the Energy Policy Act of 1992 (42 U.S.C. 13317(f)) is amended by striking `the expiration of' and all that follows through `of this section' and inserting `September 30, 2023'.

    (g) INCREMENTAL HYDROPOWER; AUTHORIZATION OF APPROPRIATIONS- Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is further amended by striking subsection (g) and inserting the following:

    `(g) Incremental Hydropower-

      `(1) PROGRAMS- Subject to subsection (h)(2), if an incremental hydropower program meets the requirements of this section, as determined by the Secretary, the incremental hydropower program shall be eligible to receive incentive payments under this section.

      `(2) DEFINITION OF INCREMENTAL HYDROPOWER- In this subsection, the term `incremental hydropower' means additional generating capacity achieved from increased efficiency or additions of new capacity at a hydroelectric facility in existence on the date of enactment of this paragraph.

    `(h) AUTHORIZATION OF APPROPRIATIONS-

      `(1) IN GENERAL- Subject to paragraph (2), there are authorized to be appropriated such sums as may be necessary to carry out this section for fiscal years 2003 through 2023.

      `(2) LIMITATION ON FUNDS USED FOR INCREMENTAL HYDROPOWER PROGRAMS- Not more than 30 percent of the amounts made available under paragraph (1) shall be used to carry out programs described in subsection (g)(2).

      `(3) AVAILABILITY OF FUNDS- Funds made available under paragraph (1) shall remain available until expended.'.

SEC. 262. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) RESOURCE ASSESSMENT- Not later than 3 months after the date of enactment of this title, and each year thereafter, the Secretary of Energy shall review the available assessments of renewable energy resources available within the United States, including solar, wind, biomass, ocean, geothermal, and hydroelectric energy resources, and undertake new assessments as necessary, taking into account changes in market conditions, available technologies and other relevant factors.

    (b) CONTENTS OF REPORTS- Not later than 1 year after the date of enactment of this title, and each year thereafter, the Secretary shall publish a report based on the assessment under subsection (a). The report shall contain--

      (1) a detailed inventory describing the available amount and characteristics of the renewable energy resources, and

      (2) such other information as the Secretary of Energy believes would be useful in developing such renewable energy resources, including descriptions of surrounding terrain, population and load centers, nearby energy infrastructure, location of energy and water resources, and available estimates of the costs needed to develop each resource, together with an identification of any barriers to providing adequate transmission for remote sources of renewable energy resources to current and emerging markets, recommendations for removing or addressing such barriers, and ways to provide access to the grid that do not unfairly disadvantage renewable or other energy producers.

SEC. 263. FEDERAL PURCHASE REQUIREMENT.

    (a) REQUIREMENT- The President shall seek to ensure that, to the extent economically feasible and technically practicable, of the total amount of electric energy the Federal Government consumes during any fiscal year--

      (1) not less than 3 percent in fiscal years 2003 through 2004,

      (2) not less than 5 percent in fiscal years 2005 through 2009, and

      (3) not less than 7.5 percent in fiscal year 2010 and each fiscal year thereafter,

    shall be renewable energy. The President shall encourage the use of innovative purchasing practices by Federal agencies.

    (b) DEFINITION- For purposes of this section, the term `renewable energy' means electric energy generated from solar, wind, biomass, geothermal, fuel cells, municipal solid waste, or additional hydroelectric generation capacity achieved from increased efficiency or additions of new capacity.

    (c) TRIBAL POWER GENERATION- The President shall seek to ensure that, to the extent economically feasible and technically practicable, not less than one-tenth of the amount specified in subsection (a) shall be renewable energy that is generated by an Indian tribe or by a corporation, partnership, or business association which is wholly or majority owned, directly or indirectly, by an Indian tribe. For purposes of this subsection, the term `Indian tribe' means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

    (d) BIENNIAL REPORT- In 2004 and every 2 years thereafter, the Secretary of Energy shall report to the Committee on Energy and Natural Resources of the Senate and the appropriate committees of the House of Representatives on the progress of the Federal Government in meeting the goals established by this section.

SEC. 264. RENEWABLE PORTFOLIO STANDARD.

    Title VI of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end the following:

`SEC. 606. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    `(a) MINIMUM RENEWABLE GENERATION REQUIREMENT- For each calendar year beginning in calendar year 2005, each retail electric supplier shall submit to the Secretary, not later than April 1 of the following calendar year, renewable energy credits in an amount equal to the required annual percentage specified in subsection (b).

    `(b) REQUIRED ANNUAL PERCENTAGE- (1) For calendar years 2005 through 2020, the required annual percentage of the retail electric supplier's base amount that shall be generated from renewable energy resources shall be the percentage specified in the following table:

Required annual

`Calendar Years

percentage

          2005 through 2006

--1.0

          2007 through 2008

--2.2

          2009 through 2010

--3.4

          2011 through 2012

--4.6

          2013 through 2014

--5.8

          2015 through 2016

--7.0

          2017 through 2018

--8.5

          2019 through 2020

--10.0.

    `(2) Not later than January 1, 2015, the Secretary may, by rule, establish required annual percentages in amounts not less than 10.0 for calendar years 2020 through 2030.

    `(c) SUBMISSION OF CREDITS- (1) A retail electric supplier may satisfy the requirements of subsection (a) through the submission of renewable energy credits--

      `(A) issued to the retail electric supplier under subsection (d);

      `(B) obtained by purchase or exchange under subsection (e); or

      `(C) borrowed under subsection (f).

    `(2) A credit may be counted toward compliance with subsection (a) only once.

    `(d) ISSUANCE OF CREDITS- (1) The Secretary shall establish, not later than 1 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 location where the electric energy was produced, and

      `(C) any other information the Secretary determines appropriate.

    `(3)(A) Except as provided in paragraphs (B), (C), and (D), the Secretary shall issue to an entity one renewable energy credit for each kilowatt-hour of electric energy the entity generates from the date of enactment of this section and in each subsequent calendar year through the use of a renewable energy resource at an eligible facility.

    `(B) For incremental hydropower the credits shall be calculated based on the expected increase in average annual generation resulting from the efficiency improvements or capacity additions. The number of credits shall be calculated using the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility and certified by the Secretary or the Federal Energy Regulatory Commission. The calculation of the credits for incremental hydropower shall not be based on any operational changes at the hydroelectric facility not directly associated with the efficiency improvements or capacity additions.

    `(C) The Secretary shall issue two renewable energy credits for each kilowatt-hour of electric energy generated and supplied to the grid in that calendar year through the use of a renewable energy resource at an eligible facility 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.

    `(D) For renewable energy resources produced from a generation offset, the Secretary shall issue two renewable energy credits for each kilowatt-hour generated.

    `(E) To be eligible for a renewable energy credit, the unit of electric energy generated through the use of a renewable energy resource may be sold or may be used by the generator. If both a renewable energy resource and a nonrenewable energy resource are used to generate the electric energy, the Secretary shall issue credits based on the proportion of the renewable energy resource used. The Secretary shall identify renewable energy credits by type and date of generation.

    `(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 may issue credits for existing facility offsets to be applied against a retail electric supplier's own required annual percentage. The credits are not tradeable and may only be used in the calendar year generation actually occurs.

    `(e) CREDIT TRADING- 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 within the next 4 years.

    `(f) CREDIT BORROWING- At any time before the end of calendar year 2005, a retail electric supplier that has reason to believe it will not have sufficient renewable energy credits to comply with subsection (a) may--

      `(1) submit a plan to the Secretary demonstrating that the retail electric supplier will earn sufficient credits within the next 3 calendar years which, when taken into account, will enable the retail electric supplier's to meet the requirements of subsection (a) for calendar year 2005 and the subsequent calendar years involved; and

      `(2) upon the approval of the plan by the Secretary, apply credits that the plan demonstrates will be earned within the next 3 calendar years to meet the requirements of subsection (a) for each calendar year involved.

    `(g) CREDIT COST CAP- The Secretary shall offer renewable energy credits for sale at the lesser of 3 cents per kilowatt-hour or 200 percent of the average market value of credits for the applicable compliance period. On January 1 of each year following calendar year 2005, the Secretary shall adjust for inflation the price charged per credit for such calendar year, based on the Gross Domestic Product Implicit Price Deflator.

    `(h) ENFORCEMENT- The Secretary may bring an action in the appropriate United States district court to impose a civil penalty on a retail electric supplier that does not comply with subsection (a), unless the retail electric supplier was unable to comply with subsection (a) for reasons outside of the supplier's reasonable control (including weather-related damage, mechanical failure, lack of transmission capacity or availability, strikes, lockouts, actions of a governmental authority). A retail electric supplier who does not submit the required number of renewable energy credits under subsection (a) shall be subject to a civil penalty of not more than the greater of 3 cents or 200 percent of the average market value of credits for the compliance period for each renewable energy credit not submitted.

    `(i) INFORMATION COLLECTION- The Secretary may collect the information necessary to verify and audit--

      `(1) the annual electric energy generation and renewable energy generation of any entity applying for renewable energy credits under this section,

      `(2) the validity of renewable energy credits submitted by a retail electric supplier to the Secretary, and

      `(3) the quantity of electricity sales of all retail electric suppliers.

    `(j) ENVIRONMENTAL SAVINGS CLAUSE- Incremental hydropower shall be subject to all applicable environmental laws and licensing and regulatory requirements.

    `(k) STATE SAVINGS CLAUSE- This section does not preclude a State from requiring additional renewable energy generation in that State, or from specifying technology mix.

    `(l) DEFINITIONS- For purposes of this section:

      `(1) BIOMASS- The term `biomass' means any organic material that is available on a renewable or recurring basis, including dedicated energy crops, trees grown for energy production, wood waste and wood residues, plants (including aquatic plants, grasses, and agricultural crops), residues, fibers, animal wastes and other organic waste materials, and fats and oils, except that with respect to material removed from National Forest System lands the term includes only organic material from--

        `(A) thinnings from trees that are less than 12 inches in diameter;

        `(B) slash;

        `(C) brush; and

        `(D) mill residues.

      `(2) ELIGIBLE FACILITY- The term `eligible facility' means--

        `(A) a facility for the generation of electric energy from a renewable energy resource that is placed in service on or after the date of enactment of this section; or

        `(B) a repowering or cofiring increment that is placed in service on or after the date of enactment of this section at a facility for the generation of electric energy from a renewable energy resource that was placed in service before that date.

      `(3) ELIGIBLE RENEWABLE ENERGY RESOURCE- The term `renewable energy resource' means solar, wind, ocean, or geothermal energy, biomass (excluding solid waste and paper that is commonly recycled), landfill gas, a generation offset, or incremental hydropower.

      `(4) GENERATION OFFSET- The term `generation offset' means reduced electricity usage metered at a site where a customer consumes energy from a renewable energy technology.

      `(5) EXISTING FACILITY OFFSET- The term `existing facility offset' means renewable energy generated from an existing facility, not classified as an eligible facility, that is owned or under contract to a retail electric supplier on the date of enactment of this section.

      `(6) INCREMENTAL HYDROPOWER- The term `incremental hydropower' means additional generation that is achieved from increased efficiency or additions of capacity after the date of enactment of this section at a hydroelectric dam that was placed in service before that date.

      `(7) INDIAN LAND- 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 enactment of this paragraph 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.

      `(8) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

      `(9) RENEWABLE ENERGY- The term `renewable energy' means electric energy generated by a renewable energy resource.

      `(10) RENEWABLE ENERGY RESOURCE- The term `renewable energy resource' means solar, wind, ocean, or geothermal energy, biomass (including municipal solid waste), landfill gas, a generation offset, or incremental hydropower.

      `(11) REPOWERING OR COFIRING INCREMENT- The term `repowering or cofiring increment' means the additional generation from a modification that is placed in service on or after the date of enactment of this section to expand electricity production at a facility used to generate electric energy from a renewable energy resource or to cofire biomass that was placed in service before the date of enactment of this section, or the additional generation above the average generation in the 3 years preceding the date of enactment of this section, to expand electricity production at a facility used to generate electric energy from a renewable energy resource or to cofire biomass that was placed in service before the date of enactment of this section.

      `(12) RETAIL ELECTRIC SUPPLIER- The term `retail electric supplier' means a person that sells electric energy to electric consumers and sold not less than 1,000,000 megawatt-hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year; except that such term does not include the United States, a State or any political subdivision of a State, or any agency, authority, or instrumentality of any one or more of the foregoing, or a rural electric cooperative.

      `(13) RETAIL ELECTRIC SUPPLIER'S BASE AMOUNT- The term `retail electric supplier's base amount' means the total amount of electric energy sold by the retail electric supplier to electric customers during the most recent calendar year for which information is available, excluding electric energy generated by--

        `(A) an eligible renewable energy resource;

        `(B) municipal solid waste; or

        `(C) a hydroelectric facility.

    `(m) SUNSET- This section expires December 31, 2030.'.

SEC. 265. RENEWABLE ENERGY ON FEDERAL LAND.

    (a) COST-SHARE DEMONSTRATION PROGRAM- Within 12 months after the date of enactment of this section, the Secretaries of the Interior, Agriculture, and Energy shall develop guidelines for a cost-share demonstration program for the development of wind and solar energy facilities on Federal land.

    (b) DEFINITION OF FEDERAL LAND- As used in this section, the term `Federal land' means land owned by the United States that is subject to the operation of the mineral leasing laws; and is either--

      (1) public land as defined in section 103(e) of the Federal Land Policy and Management Act of 1976 (42 U.S.C. 1702(e)); or

      (2) a unit of the National Forest System as that term is used in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a)).

    (c) RIGHTS-OF-WAY- The demonstration program shall provide for the issuance of rights-of-way pursuant to the provisions of title V of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761 et seq.) by the Secretary of the Interior with respect to Federal land under the jurisdiction of the Department of the Interior, and by the Secretary of Agriculture with respect to Federal lands under the jurisdiction of the Department of Agriculture.

    (d) AVAILABLE SITES- For purposes of this demonstration program, the issuance of rights-of-way shall be limited to areas--

      (1) of high energy potential for wind or solar development;

      (2) that have been identified by the wind or solar energy industry, through a process of nomination, application, or otherwise, as being of particular interest to one or both industries;

      (3) that are not located within roadless areas;

      (4) where operation of wind or solar facilities would be compatible with the scenic, recreational, environmental, cultural, or historic values of the Federal land, and would not require the construction of new roads for the siting of lines or other transmission facilities; and

      (5) where issuance of the right-of-way is consistent with the land and resource management plans of the relevant land management agencies.

    (e) COST-SHARE PAYMENTS BY DOE- The Secretary of Energy, in cooperation with the Secretary of the Interior with respect to Federal land under the jurisdiction of the Department of the Interior, and the Secretary of Agriculture with respect to Federal land under the jurisdiction of the Department of Agriculture, shall determine if the portion of a project on Federal land is eligible for financial assistance pursuant to this section. Only those projects that are consistent with the requirements of this section and further the purposes of this section shall be eligible. In the event a project is selected for financial assistance, the Secretary of Energy shall provide no more than 15 percent of the costs of the project on the Federal land, and the remainder of the costs shall be paid by non-Federal sources.

    (f) REVISION OF LAND USE PLANS- The Secretary of the Interior shall consider development of wind and solar energy, as appropriate, in revisions of land use plans under section 202 of the Federal Land Policy and Management Act of 1976 (42 U.S.C. 1712); and the Secretary of Agriculture shall consider development of wind and solar energy, as appropriate, in revisions of land and resource management plans under section 5 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604). Nothing in this subsection shall preclude the issuance of a right-of-way for the development of a wind or solar energy project prior to the revision of a land use plan by the appropriate land management agency.

    (g) REPORT TO CONGRESS- Within 24 months after the date of enactment of this section, the Secretary of the Interior shall develop and report to Congress recommendations on any statutory or regulatory changes the Secretary believes would assist in the development of renewable energy on Federal land. The report shall include--

      (1) a five-year plan developed by the Secretary of the Interior, in cooperation with the Secretary of Agriculture, for encouraging the development of wind and solar energy on Federal land in an environmentally sound manner; and

      (2) an analysis of--

        (A) whether the use of rights-of-ways is the best means of authorizing use of Federal land for the development of wind and solar energy, or whether such resources could be better developed through a leasing system, or other method;

        (B) the desirability of grants, loans, tax credits or other provisions to promote wind and solar energy development on Federal land; and

        (C) any problems, including environmental concerns, which the Secretary of the Interior or the Secretary of Agriculture have encountered in managing wind or solar energy projects on Federal land, or believe are likely to arise in relation to the development of wind or solar energy on Federal land;

      (3) a list, developed in consultation with the Secretaries of Energy and Defense, of lands under the jurisdiction of the Departments of Energy and Defense that would be suitable for development for wind or solar energy, and recommended statutory and regulatory mechanisms for such development.

    (h) NATIONAL ACADEMY OF SCIENCES STUDY- Within 90 days after the enactment of this Act, the Secretary of the Interior shall contract with the National Academy of Sciences to study the potential for the development of wind, solar, and ocean energy on the Outer Continental Shelf; assess existing Federal authorities for the development of such resources; and recommend statutory and regulatory mechanisms for such development. The results of the study shall be transmitted to Congress within 24 months after the enactment of this Act.

Subtitle F--General Provisions

SEC. 271. CHANGE 3 CENTS TO 1.5 CENTS.

    Not withstanding any other provision in this Act, `3 cents' shall be considered by law to be `1.5 cents' in any place `3 cents' appears in title II of this Act.

SEC. 272. BONNEVILLE POWER ADMINISTRATION BONDS.

    Section 13 of the Federal Columbia River Transmission System Act (16 U.S.C. 838k) is amended--

      (1) by striking the section heading and all that follows through `(a) The Administrator' and inserting the following:

`SEC. 13. BONNEVILLE POWER ADMINISTRATION BONDS.

    `(a) BONDS-

      `(1) IN GENERAL- The Administrator'; and

      (2) by adding at the end the following:

      `(2) ADDITIONAL BORROWING AUTHORITY- In addition to the borrowing authority of the Administrator authorized under paragraph (1) or any other provision of law, an additional $1,300,000,000 is made available, to remain outstanding at any one time--

        `(A) to provide funds to assist in financing the construction, acquisition, and replacement of the transmission system of the Bonneville Power Administration; and

        `(B) to implement the authorities of the Administrator under the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839 et seq.).'.

TITLE III--HYDROELECTRIC RELICENSING

SEC. 301. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) ALTERNATIVE MANDATORY CONDITIONS- Section 4 of the Federal Power Act (16 U.S.C. 797) is amended by adding at the end the following:

    `(h)(1) Whenever any person applies for a license for any project works within any reservation of the United States under subsection (e), and the Secretary of the department under whose supervision such reservation falls (in this subsection referred to as the `Secretary') shall deem a condition to such license to be necessary under the first proviso of such section, the license applicant may propose an alternative condition.

    `(2) Notwithstanding the first proviso of subsection (e), the Secretary of the department under whose supervision the reservation falls shall accept the proposed alternative condition referred to in paragraph (1), and the Commission shall include in the license such alternative condition, if the Secretary of the appropriate department determines, based on substantial evidence provided by the license applicant, that the alternative condition--

      `(A) provides for the adequate protection and utilization of the reservation; and

      `(B) will either--

        `(i) cost less to implement, or

        `(ii) result in improved operation of the project works for electricity production as compared to the condition initially deemed necessary by the Secretary.

    `(3) The Secretary shall submit into the public record of the Commission proceeding with any condition under subsection (e) or alternative condition it accepts under this subsection a written statement explaining the basis for such condition, and reason for not accepting any alternative condition under this subsection, including the effects of the condition accepted and alternatives not accepted on energy supply, distribution, cost, and use, air quality, flood control, navigation, and drinking, irrigation, and recreation water supply, based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others.

    `(4) Nothing in this subsection shall prohibit other interested parties from proposing alternative conditions.'.

    (b) ALTERNATIVE FISHWAYS- Section 18 of the Federal Power Act (16 U.S.C. 811) is amended by--

      (1) inserting `(a)' before the first sentence; and

      (2) adding at the end the following:

    `(b)(1) Whenever the Secretary of the Interior or the Secretary of Commerce prescribes a fishway under this section, the license applicant or the licensee may propose an alternative to such prescription to construct, maintain, or operate a fishway.

    `(2) Notwithstanding subsection (a), the Secretary of the Interior or the Secretary of Commerce, as appropriate, shall accept and prescribe, and the Commission shall require, the proposed alternative referred to in paragraph (1), if the Secretary of the appropriate department determines, based on substantial evidence provided by the licensee, that the alternative--

      `(A) will be no less protective of the fish resources than the fishway initially prescribed by the Secretary; and

      `(B) will either--

        `(i) cost less to implement, or

        `(ii) result in improved operation of the project works for electricity production as compared to the fishway initially prescribed by the Secretary.

    `(3) The Secretary shall submit into the public record of the Commission proceeding with any prescription under subsection (a) or alternative prescription it accepts under this subsection a written statement explaining the basis for such prescription, and reason for not accepting any alternative prescription under this subsection, including the effects of the prescription accepted or alternative not accepted on energy supply, distribution, cost, and use, air quality, flood control, navigation, and drinking, irrigation, and recreation water supply, based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others.

    `(4) Nothing in this subsection shall prohibit other interested parties from proposing alternative prescriptions.'.

    (c) TIME OF FILING APPLICATION- Section 15(c)(1) of the Federal Power Act (16 U.S.C. 808(c)(1)) is amended by striking the first sentence and inserting the following:

      `(1) Each application for a new license pursuant to this section shall be filed with the Commission--

        `(A) at least 24 months before the expiration of the term of the existing license in the case of licenses that expire prior to 2008; and

        `(B) at least 36 months before the expiration of the term of the existing license in the case of licenses that expire in 2008 or any year thereafter.'.

TITLE IV--INDIAN ENERGY

SEC. 401. COMPREHENSIVE INDIAN ENERGY PROGRAM.

    Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501-3506) is amended by adding after section 2606 the following:

`SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.

    `(a) DEFINITIONS- For purposes of this section--

      `(1) the term `Director' means the Director of the Office of Indian Energy Policy and Programs established by section 217 of the Department of Energy Organization Act, and

      `(2) the term `Indian land' means--

        `(A) any land within the limits of an Indian reservation, pueblo, or rancheria;

        `(B) any land not within the limits of an Indian reservation, pueblo, or rancheria whose title is held--

          `(i) in trust by the United States for the benefit of an Indian tribe,

          `(ii) by an Indian tribe subject to restriction by the United States against alienation, or

          `(iii) by a dependent Indian community; and

        `(C) land conveyed to an Alaska Native Corporation under the Alaska Native Claims Settlement Act.

    `(b) INDIAN ENERGY EDUCATION PLANNING AND MANAGEMENT ASSISTANCE- (1) The Director shall establish programs within the Office of Indian Energy Policy and Programs to assist Indian tribes in meeting their energy education, research and development, planning, and management needs.

    `(2) The Director may make grants, on a competitive basis, to an Indian tribe for--

      `(A) renewable energy, energy efficiency, and conservation programs;

      `(B) studies and other activities supporting tribal acquisition of energy supplies, services, and facilities;

      `(C) planning, constructing, developing, operating, maintaining, and improving tribal electrical generation, transmission, and distribution facilities; and

      `(D) developing, constructing, and interconnecting electric power transmission facilities with transmission facilities owned and operated by a Federal power marketing agency or an electric utility that provides open access transmission service.

    `(3) The Director may develop, in consultation with Indian tribes, a formula for making grants under this section. The formula may take into account the following--

      `(A) the total number of acres of Indian land owned by an Indian tribe;

      `(B) the total number of households on the Indian tribe's Indian land;

      `(C) the total number of households on the Indian tribe's Indian land that have no electricity service or are under-served; and

      `(D) financial or other assets available to the Indian tribe from any source.

    `(4) In making a grant under paragraph (2), the Director shall give priority to an application received from an Indian tribe that is not served or is served inadequately by an electric utility, as that term is defined in section 3(4) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(4)), or by 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.

    `(5) There are authorized to be appropriated to the Department of Energy such sums as may be necessary to carry out the purposes of this section.

    `(6) The Secretary is authorized to promulgate such regulations as the Secretary determines to be necessary to carry out the provisions of this subsection.

    `(c) LOAN GUARANTEE PROGRAM-

      `(1) AUTHORITY- The Secretary may guarantee not more than 90 percent of the unpaid principal and interest due on any loan made to any Indian tribe for energy development, including the planning, development, construction, and maintenance of electrical generation plants, and for transmission and delivery mechanisms for electricity produced on Indian land. A loan guaranteed under this subsection shall be made by--

        `(A) a financial institution subject to the examination of the Secretary; or

        `(B) an Indian tribe, from funds of the Indian tribe, to another Indian tribe.

      `(2) AVAILABILITY OF APPROPRIATIONS- Amounts appropriated to cover the cost of loan guarantees shall be available without fiscal year limitation to the Secretary to fulfill obligations arising under this subsection.

      `(3) AUTHORIZATION OF APPROPRIATIONS- (A) There are authorized to be appropriated to the Secretary such sums as may be necessary to cover the cost of loan guarantees, as defined by section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)).

      `(B) There are authorized to be appropriated to the Secretary such sums as may be necessary to cover the administrative expenses related to carrying out the loan guarantee program established by this subsection.

      `(4) LIMITATION ON AMOUNT- The aggregate outstanding amount guaranteed by the Secretary of Energy at any one time under this subsection shall not exceed $2,000,000,000.

      `(5) REGULATIONS- The Secretary is authorized to promulgate such regulations as the Secretary determines to be necessary to carry out the provisions of this subsection.

    `(d) INDIAN ENERGY PREFERENCE- (1) An agency or department of the United States Government may give, in the purchase of electricity, oil, gas, coal, or other energy product or by-product, preference in such purchase to an energy and resource production enterprise, partnership, corporation, or other type of business organization majority or wholly owned and controlled by a tribal government.

    `(2) In implementing this subsection, an agency or department shall pay no more than the prevailing market price for the energy product or by-product and shall obtain no less than existing market terms and conditions.

    `(e) EFFECT ON OTHER LAWS- This section does not--

      `(1) limit the discretion vested in an Administrator of a Federal power marketing agency to market and allocate Federal power, or

      `(2) alter Federal laws under which a Federal power marketing agency markets, allocates, or purchases power.'.

SEC. 402. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

    Title II of the Department of Energy Organization Act is amended by adding at the end the following:

`OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

    `SEC. 217. (a) There is established within the Department an Office of Indian Energy Policy and Programs. This Office shall be headed by a Director, who shall be appointed by the Secretary and compensated at the rate equal to that of level IV of the Executive Schedule under section 5315 of title 5, United States Code.

    `(b) The Director shall provide, direct, foster, coordinate, and implement energy planning, education, management, conservation, and delivery programs of the Department that--

      `(1) promote tribal energy efficiency and utilization;

      `(2) modernize and develop, for the benefit of Indian tribes, tribal energy and economic infrastructure related to natural resource development and electrification;

      `(3) preserve and promote tribal sovereignty and self determination related to energy matters and energy deregulation;

      `(4) lower or stabilize energy costs; and

      `(5) electrify tribal members' homes and tribal lands.

    `(c) The Director shall carry out the duties assigned the Secretary or the Director under title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.).'.

SEC. 403. CONFORMING AMENDMENTS.

    (a) AUTHORIZATION OF APPROPRIATIONS- Section 2603(c) of the Energy Policy Act of 1992 (25 U.S.C. 3503(c)) is amended to read as follows:

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

    (b) TABLE OF CONTENTS- The table of contents of the Department of Energy Act is amended by inserting after the item relating to section 216 the following new item:

      `Sec. 217. Office of Indian Energy Policy and Programs.'.

    (c) EXECUTIVE SCHEDULE- Section 5315 of title 5, United States Code, is amended by inserting `Director, Office of Indian Energy Policy and Programs, Department of Energy.' after `Inspector General, Department of Energy.'.

SEC. 404. SITING ENERGY FACILITIES ON TRIBAL LANDS.

    (a) DEFINITIONS- For purposes of this section:

      (1) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe, band, nation, or other organized group or community, which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians, except that such term does not include any Regional Corporation as defined in section 3(g) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(g)).

      (2) INTERESTED PARTY- The term `interested party' means a person whose interests could be adversely affected by the decision of an Indian tribe to grant a lease or right-of-way pursuant to this section.

      (3) PETITION- The term `petition' means a written request submitted to the Secretary for the review of an action (or inaction) of the Indian tribe that is claimed to be in violation of the approved tribal regulations.

      (4) RESERVATION- The term `reservation' means--

        (A) with respect to a reservation in a State other than Oklahoma, all land that has been set aside or that has been acknowledged as having been set aside by the United States for the use of an Indian tribe, the exterior boundaries of which are more particularly defined in a final tribal treaty, agreement, executive order, Federal statute, secretarial order, or judicial determination;

        (B) with respect to a reservation in the State of Oklahoma, all land that is--

          (i) within the jurisdictional area of an Indian tribe, and

          (ii) within the boundaries of the last reservation of such tribe that was established by treaty, executive order, or secretarial order.

      (5) SECRETARY- The term `Secretary' means the Secretary of the Interior.

      (6) TRIBAL LANDS- The term `tribal lands' means any tribal trust lands, or other lands owned by an Indian tribe that are within such tribe's reservation.

    (b) LEASES INVOLVING GENERATION, TRANSMISSION, DISTRIBUTION OR ENERGY PROCESSING FACILITIES- An Indian tribe may grant a lease of tribal land for electric generation, transmission, or distribution facilities, or facilities to process or refine renewable or nonrenewable energy resources developed on tribal lands, and such leases shall not require the approval of the Secretary if the lease is executed under tribal regulations approved by the Secretary under this subsection and the term of the lease does not exceed 30 years.

    (c) RIGHTS-OF-WAY FOR ELECTRIC GENERATION, TRANSMISSION, DISTRIBUTION OR ENERGY PROCESSING FACILITIES- An Indian tribe may grant a right-of-way over tribal lands for a pipeline or an electric transmission or distribution line without separate approval by the Secretary, if--

      (1) the right-of-way is executed under and complies with tribal regulations approved by the Secretary and the term of the right-of-way does not exceed 30 years; and

      (2) the pipeline or electric transmission or distribution line serves--

        (A) an electric generation, transmission or distribution facility located on tribal land, or

        (B) a facility located on tribal land that processes or refines renewable or nonrenewable energy resources developed on tribal lands.

    (d) RENEWALS- Leases or rights-of-way entered into under this subsection may be renewed at the discretion of the Indian tribe in accordance with the requirements of this section.

    (e) TRIBAL REGULATION REQUIREMENTS- (1) The Secretary shall have the authority to approve or disapprove tribal regulations required under this subsection. The Secretary shall approve such tribal regulations if they are comprehensive in nature, including provisions that address--

      (A) securing necessary information from the lessee or right-of-way applicant;

      (B) term of the conveyance;

      (C) amendments and renewals;

      (D) consideration for the lease or right-of-way;

      (E) technical or other relevant requirements;

      (F) requirements for environmental review as set forth in paragraph (3);

      (G) requirements for complying with all applicable environmental laws; and

      (H) final approval authority.

    (2) No lease or right-of-way shall be valid unless authorized in compliance with the approved tribal regulations.

    (3) An Indian tribe, as a condition of securing Secretarial approval as contemplated in paragraph (1), must establish an environmental review process that includes the following--

      (A) an identification and evaluation of all significant environmental impacts of the proposed action as compared to a no action alternative;

      (B) identification of proposed mitigation;

      (C) a process for ensuring that the public is informed of and has an opportunity to comment on the proposed action prior to tribal approval of the lease or right-of-way; and

      (D) sufficient administrative support and technical capability to carry out the environmental review process.

    (4) The Secretary shall review and approve or disapprove the regulations of the Indian tribe within 180 days of the submission of such regulations to the Secretary. Any disapproval of such regulations by the Secretary shall be accompanied by written documentation that sets forth the basis for the disapproval. The 180-day period may be extended by the Secretary after consultation with the Indian tribe.

    (5) If the Indian tribe executes a lease or right-of-way pursuant to tribal regulations required under this subsection, the Indian tribe shall provide the Secretary with--

      (A) a copy of the lease or right-of-way document and all amendments and renewals thereto; and

      (B) in the case of regulations or a lease or right-of-way that permits payment to be made directly to the Indian tribe, documentation of the payments sufficient to enable the Secretary to discharge the trust responsibility of the United States as appropriate under existing law.

    (6) The United States shall not be liable for losses sustained by any party to a lease executed pursuant to tribal regulations under this subsection, including the Indian tribe.

    (7)(A) An interested party may, after exhaustion of tribal remedies, submit, in a timely manner, a petition to the Secretary to review the compliance of the Indian tribe with any tribal regulations approved under this