[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1359 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1359

    To amend the Public Utility Regulatory Policies Act of 1978 to 
establish a means to support programs for electric energy conservation 
 and energy efficiency, renewable energy, and universal and affordable 
                    service for electric consumers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 17, 1997

    Mr. DeFazio (for himself, Ms. Furse, Ms. Hooley of Oregon, Ms. 
Christian-Green, Mrs. Maloney of New York, Mr. Gutierrez, Mr. Hinchey, 
  and Mr. Lewis of Georgia) introduced the following bill; which was 
                 referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
    To amend the Public Utility Regulatory Policies Act of 1978 to 
establish a means to support programs for electric energy conservation 
 and energy efficiency, renewable energy, and universal and affordable 
                    service for electric consumers.

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

SECTION 1. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS.

    Title VI of the Public Utility Regulatory Policies Act of 1978 is 
amended by adding after section 604 the following new section:

``SEC. 605. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS FUND.

    ``(a) Purpose.--The purpose of this section is to provide for a 
National Electric System Public Benefits Fund, administered by the 
National Electric System Public Benefits Board, to provide matching 
funds to States for the support of eligible public purpose programs.
    ``(b) Definitions.--For purposes of this section:
            ``(1) The term `Board' means the National Electric System 
        Public Benefits Board established under this section.
            ``(2) The term `eligible public purpose program' means a 
        program that supports--
                    ``(A) conservation and energy efficiency and 
                renewable energy,
                    ``(B) universal and affordable service, or
                    ``(C) research and development that supports such 
                purposes,
         and that is designated by the Board as eligible to receive 
        funding under this section.
            ``(3) The term `matching funds' means an equal distribution 
        of State funds and funds made available as provided in this 
        section.
            ``(4) The `Secretary' means the Secretary of Energy.
            ``(5) The terms `State commission' and `transmitting 
        utility' have the meanings provided for such terms by the 
        Federal Power Act.
            ``(6) The term `renewable energy' means electricity 
        generated from nontoxic organic waste, biomass, dedicated 
        energy crops, landfill gas, geothermal, solar, tidal or wind 
        resources, except that such term does not include electricity 
        generated from the incineration of municipal solid waste.
            ``(7) The term `energy efficiency' means programs and 
        measures designed to cost-effectively improve the efficiency of 
        end-use electricity consumption, considering all costs of 
        electricity generation, transmission, distribution, and 
        consumption on a life-cycle basis. For purposes of this 
        section, eligible energy efficiency programs and measures shall 
        include efforts to transform markets in end-use equipment, to 
        develop and implement codes and standards, to provide technical 
        support and information to consumers, and to provide financing 
        and financial support for the acquisition of efficient end use 
        equipment.
            ``(9) A program that supports `universal and affordable 
        service' is any program that promotes high quality and reliable 
        electric service at just, reasonable, and affordable rates for 
        low income consumers and those in rural, insular, or high cost 
        areas.
    ``(c) National Electric System Public Benefits Board.--(1) A 
National Electric System Public Benefits Board shall be established to 
carry out the functions and responsibilities specified in this section.
    ``(2) The Board shall be composed of 3 persons who are officers or 
employees of the United States, and 4 State commissioners nominated by 
the national organization of the State commissions and appointed by the 
Secretary. The Secretary shall appoint one member of the Board to serve 
as Chairman.
    ``(3) Within 180 days after the enactment of this Act, the 
Secretary shall promulgate a final rule containing the rules and 
procedures of the Board, including the rules and procedures for 
selecting a non-Federal fiscal agent under subsection (e). The 
Secretary shall have oversight responsibilities over the Board.
    ``(d) Contributions.--Each owner or operator of an electric power 
generation facility shall, as a condition of transmitting power to any 
transmitting utility, contribute funds (based on the kilowatt hours 
transmitted) in such amounts as shall be determined by the Board to be 
necessary to generate revenues in each calendar year equal to \1/2\ of 
the aggregate cost of carrying out the eligible public purpose programs 
that meet the criteria established by the Board under subsection (e) 
for receipt of funding for that calendar year. Such contributions shall 
not exceed 2 mills per kilowatt hour. Each transmitting utility 
receiving electricity from a generator shall collect such contributions 
and transfer the contributions to the fiscal agent designated under 
subsection (e) at the end of each month in which contributions are 
made.
    ``(e) Public Benefits Program.--(1) Within 90 days after the 
promulgation of the Secretary's rules under subsection (c)(3), the 
Board shall institute a proceeding to establish regulations governing 
creation and administration of a Public Benefits Program. Such 
regulations shall include criteria for the eligibility of the State 
public service programs for support under the Program. The Board shall 
enter into arrangements with a non-Federal fiscal agent who shall be 
authorized to receive the contributions made under subsection (d) and 
to disburse such contributions as provided in subsection (f). The Board 
shall prepare a recommended decision for prompt review and approval by 
the Secretary.
    ``(2) Any State may establish one or more public purpose programs 
and apply for matching funding for such program or programs under the 
Public Benefits Program. A participating State may use matching funds 
received under this section only to support one or more eligible public 
purpose programs. The Board shall regularly audit the expenditures of 
matching funds received by a participating State under this section.
    ``(3) At no time is a State required, pursuant to this section, to 
participate in the Public Benefits program, nor may a State be required 
by the Board to fund a particular eligible public purpose program.
    ``(f) National Electric System Public Benefits.--(1) The fiscal 
agent shall distribute contributions received by the fiscal agent under 
subsection (d) to States (or entities designated by the States) under 
this subsection in accordance with the criteria established by the 
Board under subsection (e) to carry out eligible public purpose 
programs established by the States. A State seeking matching funds to 
carry out eligible public purpose programs shall apply for such funds 
no later than 3 months prior to the start of the calendar year. In its 
application, the State must certify that the moneys will be used for 
one or more eligible public purpose programs and must specify the 
amount of State support which is projected for the coming calendar year 
for the programs concerned.
    ``(2) Upon receipt of all State requests for matching funds 
submitted pursuant to paragraph (1) within the 3-month time period 
specified in paragraph (1), the Board shall calculate the funds 
necessary to match the level of projected States funds for eligible 
public purpose programs for the coming calendar year.
    ``(3) Following the calculation of the amount of matching funds 
required under paragraph (2) for all States for any calendar year, the 
Board shall communicate that amount to the fiscal agent. To the extent 
the matching funds requested by all States for a calendar year exceed 
the maximum projected revenues from the contributions under this 
section, the matching funds distributed to each State shall be reduced 
pro rata so that the percentage of State funds matched by funds 
provided under this section is the same for all States.
    ``(4) The fiscal agent shall distribute matching funds to the 
States (or to an entity or entities designated by the State to receive 
payments) in monthly payments to be used for eligible public purpose 
programs designated under subsection (f). All funds received shall be 
used only for the eligible public purpose programs designated by the 
State.
    ``(g) Existing Programs.--It is the sense of the Congress that the 
program established under this section shall not replace or supersede 
any other existing programs that support or encourage conservation and 
energy efficiency, renewable energy, universal and affordable service, 
or research and development.''.
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