[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2287 Introduced in Senate (IS)]

  2d Session
                                S. 2287

  To provide for a more competitive electric power industry, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 10, 1998

Mr. Murkowski (for himself and Mr. Bumpers) (by request) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To provide for a more competitive electric power industry, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Comprehensive Electricity 
Competition Act''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
                    TITLE I--RETAIL ELECTRIC SERVICE

Sec. 101. Retail competition.
Sec. 102. Authority to impose reciprocity requirements.
Sec. 103. Consumer information.
          TITLE II--FACILITATING STATE AND REGIONAL REGULATION

Sec. 201. Clarification of State and Federal authority over retail 
                            transmission services.
Sec. 202. Interstate compacts on regional transmission planning.
Sec. 203. Backup authority to impose a charge on an ultimate consumer's 
                            receipt of electric energy.
Sec. 204. Authority to establish and require independent system 
                            operation.
                       TITLE III--PUBLIC BENEFITS

Sec. 301. Public benefits fund.
Sec. 302. Federal renewable portfolio standard.
Sec. 303. Net metering.
Sec. 304. Reform of section 210 of PURPA.
        TITLE IV--REGULATION OF MERGERS AND CORPORATE STRUCTURE

Sec. 401. Reform of holding company regulation under PUHCA.
Sec. 402. Electric company mergers.
Sec. 403. Remedial measures for market power.
                     TITLE V--ELECTRIC RELIABILITY

Sec. 501. Electric reliability organization and oversight.
Sec. 502. Statutory presumption.
                   TITLE VI--ENVIRONMENTAL PROTECTION

Sec. 601. Nitrogen oxides cap and trade program.
                 TITLE VII--OTHER REGULATORY PROVISIONS

Sec. 701. Treatment of nuclear decommissioning costs in bankruptcy.
Sec. 702. Study of impacts of competition in electricity markets by the 
                            Energy Information Administration.
Sec. 703. Antitrust savings clause.
Sec. 704. Elimination of antitrust review by the Nuclear Regulatory 
                            Commission.
Sec. 705. Environmental laws savings clause.

                    TITLE I--RETAIL ELECTRIC SERVICE

SEC. 101. RETAIL COMPETITION.

    (a) The Public Utility Regulatory Policies Act of 1978 (referred to 
in this Act as PURPA) is amended by adding after section 608 the 
following new section:

``SEC. 609. RETAIL COMPETITION.

    ``(a) Definitions.--For purposes of this section--
            ``(1) `distribution utility' means a person, State agency, 
        or any other entity that owns or operates a local distribution 
        facility used for the sale of electric energy to an electric 
        consumer;
            ``(2) `nonregulated distribution utility' means a 
        distribution utility not subject to the ratemaking authority of 
        a State regulatory authority; and
            ``(3) `retail stranded costs' means the amount of net costs 
        incurred or obligations undertaken before the date of enactment 
of the Comprehensive Electricity Competition Act by a distribution 
utility that--
                    ``(A) were incurred or undertaken by that 
                distribution utility in order to comply with a legal 
                obligation on the utility to provide electricity to 
                electric consumers in its service territory, and
                    ``(B) cannot be recovered because of implementation 
                of retail competition under subsection (b).
    ``(b) Retail Competition Requirement.--Except as provided in 
subsection (c), not later than January 1, 2003, any distribution 
utility that has the capability to deliver electric energy to an 
electric consumer over its facilities shall offer open access to those 
facilities for the sale of electric energy to the consumer and shall do 
so at rates, terms, and conditions that are not unduly discriminatory 
or preferential, as determined by the appropriate regulatory authority.
    ``(c) Opt Out.--(1) A State regulatory authority (with respect to a 
distribution utility for which it has ratemaking authority) may direct 
a distribution utility not to implement the retail competition 
requirement described in subsection (b) if the State regulatory 
authority finds, after notice and opportunity for hearing, that 
implementation of the retail competition requirement by the 
distribution utility will have a negative impact on a class of 
customers of that utility that cannot be mitigated reasonably.
    ``(2) A nonregulated distribution utility may determine not to 
implement the retail competition requirement described in subsection 
(b) if it finds, after notice and opportunity for hearing, that 
implementation of the retail competition requirement by the 
distribution utility will have a negative impact on a class of 
customers of that utility that cannot be mitigated reasonably.
    ``(3) The State regulatory authority (with respect to a 
distribution utility for which it has ratemaking authority) or 
nonregulated distribution utility shall publish the determination and 
its basis and shall file a notice with the Commission of its 
determination by January 1, 2002.
    ``(d) Notice of Retail Competition.--A State regulatory authority 
(with respect to a distribution utility for which it has ratemaking 
authority) or nonregulated distribution utility shall file with the 
Commission a notice that the distribution utility has implemented or 
will implement retail competition consistent with subsection (b). The 
notice shall describe the implementation of retail competition. The 
notice is effective for purposes of section 118 of this Act and 
sections 212(h), 216, and 217 of the Federal Power Act on the date the 
notice is filed or the date of implementation of retail competition 
consistent with subsection (b), whichever is later.
    ``(e) Consideration of Recovery of Retail Stranded Costs.--If a 
State regulatory authority conducts a public proceeding before a 
distribution utility implements retail competition as required under 
subsection (b), as part of this proceeding, the State regulatory 
authority shall consider the appropriate mechanism under State law to 
address recovery by a distribution utility for which it has ratemaking 
authority of retail stranded costs that are legitimate, prudent, and 
verifiable, if the utility has taken all reasonable steps to mitigate 
the costs. A charge imposed for purposes of recovering retail stranded 
costs should be imposed in a manner so as to minimize to the fullest 
extent possible any effect on an electric consumer's choice among 
competing suppliers or products.
    ``(f) Enforcement.--Any person may bring an action in the 
appropriate State court against a State regulatory authority, a 
distribution utility, or a nonregulated distribution utility for 
failure to comply with this section. Filing an action challenging 
whether retail competition is being implemented consistent with 
subsection (b) makes a notice of retail competition ineffective for 
purposes of section 118 of this Act and sections 212(h), 216, and 217 
of the Federal Power Act until final resolution of the action. 
Notwithstanding any other law, a court created under Article III of the 
Constitution does not have jurisdiction over an action arising under 
this section.''.
    (b) Definition.--Section 3 of PURPA is amended by adding after 
paragraph (21) the following new paragraph:
            ``(22) The term `notice of retail competition' means a 
        notice filed under section 609(d).''.

SEC. 102. AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.

    PURPA is amended by adding the following new section after section 
117:

``SEC. 118. AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.

    ``(a) State Regulatory Authority.--If a State regulatory authority 
files a notice of retail competition with respect to a distribution 
utility, beginning on the effective date of the notice, the State 
regulatory authority may prohibit any other distribution utility 
located in the United States over which it does not have ratemaking 
authority (and any affiliate of such a utility, as defined under the 
Public Utility Holding Company Act of 1998) from selling electric 
energy to electric consumers of a distribution facility covered by the 
notice of retail competition, unless a notice of retail competition has 
been filed with respect to the other distribution utility.
    ``(b) Nonregulated Distribution Utility.--If a nonregulated 
distribution utility files a notice of retail competition, beginning on 
the effective date of the notice, it may prohibit any other 
distribution utility located in the United States (or affiliate of the 
utility, as defined under the Public Utility Holding Company Act of 
1998) from selling electric energy to electric consumers of the 
nonregulated distribution utility covered by the notice unless a notice 
of retail competition has been filed with respect to the other 
distribution utility.
    ``(c) Definitions.--For purposes of this section, `distribution 
utility' and `nonregulated distribution utility' have the meaning given 
them in section 609(a).''.

SEC. 103. CONSUMER INFORMATION.

    PURPA is amended by adding the following new section after section 
118 as added by section 102 of this Act:

``SEC. 119. CONSUMER INFORMATION DISCLOSURE.

    ``(a) Disclosure Rules.--Not later than January 1, 2000, the 
Secretary, in consultation with the Commission, the Administrator of 
the Environmental Protection Agency, and the Federal Trade Commission, 
shall issue rules prescribing the form, content, placement, and timing 
of the supplier disclosure required under subsections (b) and (c) of 
this section. The rules shall be prescribed in accordance with section 
553 of title 5, United States Code (the Administrative Procedure Act).
    ``(b) Disclosure to Electric Consumers.--An electric utility that 
offers to sell electric energy to an electric consumer shall provide 
the electric consumer, to the extent practicable and in accordance with 
rules issued under subsection (a), a statement containing the following 
information:
            ``(1) the nature of the service being offered, including 
        information about interruptibility or curtailment of service;
            ``(2) the price of the electric energy, including a 
        description of any variable charges;
            ``(3) a description of all other charges associated with 
        the service being offered including, but not limited to, access 
        charges, exit charges, back-up service charges, stranded cost 
        recovery charges, and customer service charges;
            ``(4) information concerning the type of energy resource 
        used to generate the electric energy and the environmental 
        attributes of the generation (including air emissions 
        characteristics); and
            ``(5) any other information the Secretary determines can be 
        provided feasibly and would be useful to consumers in making 
        purchasing decisions.
    ``(c) Disclosure to Wholesale Customers.--In every sale of electric 
energy for resale, the seller shall provide to the purchaser the 
information respecting the type of energy resource used to generate the 
electric energy and the environmental attributes of the generation 
required by rules established under subsection (a).
    ``(d) Federal Trade Commission Enforcement.--A violation of a rule 
prescribed under this section shall constitute an unfair or deceptive 
act or practice in violation of section 5 of the Federal Trade 
Commission Act (15 U.S.C. 45) and shall be treated as a violation of a 
rule under section 18 of the Federal Trade Commission Act (15 U.S.C. 
57a). All functions and powers of the Federal Trade Commission under 
the Federal Trade Commission Act are available to the Federal Trade 
Commission to enforce compliance with this section notwithstanding 
jurisdictional limitations in the Federal Trade Commission Act.
    ``(e) Authority To Obtain Information.--Authority to obtain 
information under section 11 of the Energy Supply and Environmental 
Coordination Act of 1974 (15 U.S.C. 796) is available to the Secretary 
to administer this section and to the Federal Trade Commission to 
enforce this section. In order to carry out its duties under this 
section, the Federal Trade Commission may use any of its powers under 
sections 3, 6, 9, and 20 of the Federal Trade Commission Act (15 U.S.C. 
43, 46, 49, and 58b-2) without regard to the limitations contained in 
section 20(b) of that Act (15 U.S.C. 57b-2(b)) or any jurisdictional 
limitations contained in that Act.
    ``(f) Enforcement by States.--(1) When a State determines that the 
interests of its residents have been or are being threatened or 
adversely affected because any person is violating or has violated a 
rule of the Secretary under this section, the State may bring a civil 
action on behalf of its residents in an appropriate district court of 
the United States to--
            ``(A) enjoin the violation;
            ``(B) enforce compliance with the rule of the Secretary;
            ``(C) obtain damages, restitution, or other compensation on 
        behalf of its residents; or
            ``(D) obtain other relief the court considers appropriate.
    ``(2) The State shall serve prior written notice of any civil 
action under this subsection upon the Federal Trade Commission and 
provide the Federal Trade Commission with a copy of its complaint, 
except that if it is not feasible for the State to provide this prior 
notice, the State shall serve the notice immediately upon instituting 
the action. Upon receiving a notice respecting a civil action, the 
Federal Trade Commission may--
            ``(A) intervene in the action, and
            ``(B) upon so intervening, be heard on all matters arising 
        in the action and file petition for appeal.
    ``(3) For purposes of bringing any civil action under this 
subsection, this section does not prevent a State official from 
exercising the powers conferred by State law to conduct investigations, 
administer oaths or affirmations, or compel the attendance of witnesses 
or the production of documentary and other evidence.
    ``(4) While a civil action instituted by or on behalf of the 
Federal Trade Commission for violation of any rule prescribed under 
this subsection is pending, a State may not institute a civil action 
under this section against a defendant named in the complaint in the 
pending action for a violation alleged in the complaint.
    ``(5) A civil action brought under this subsection may be brought 
in the district in which the defendant is found, is an inhabitant, or 
transacts business or wherever venue is proper under section 1391 of 
title 28, United States Code. Process in such an action may be served 
in any district in which the defendant is an inhabitant or in which the 
defendant may be found.
    ``(6) This section does not prohibit a State from proceeding in 
State court on the basis of an alleged violation of a State civil or 
criminal statute.''.

          TITLE II--FACILITATING STATE AND REGIONAL REGULATION

SEC. 201. CLARIFICATION OF STATE AND FEDERAL AUTHORITY OVER RETAIL 
              TRANSMISSION SERVICES.

    (a) Nonpreemption of State Authority To Order Retail Wheeling and 
To Impose Local Delivery Charges.--Section 201(b) of the Federal Power 
Act (referred to in this Act as ``the FPA'') is amended by adding the 
following new paragraph after paragraph (2):
            ``(3) This Act does not preempt or otherwise affect any 
        authority under the law of a State or municipality to--
                    ``(A) require unbundled transmission and local 
                distribution services for the delivery of electric 
energy directly to an ultimate consumer, but if unbundled transmission 
is in interstate commerce, the rate, terms, and conditions of the 
transmission are subject to the exclusive jurisdiction of the 
Commission under this part, or
                    ``(B) impose a delivery charge on an ultimate 
                consumer's receipt of electric energy.''.
    (b) Open Access Transmission Authority; Retail Wheeling in Retail 
Competition States.--
            (1) Applicability of open access transmission rules.--
        Section 206 of the FPA is amended by adding the following new 
        subsection after subsection (d):
    ``(e) Open Access Transmission Services.--(1) Under section 205 and 
this section, the Commission may require, by rule or order, public 
utilities and transmitting utilities to provide open access 
transmission services, subject to section 212(h), and may authorize 
recovery of stranded costs, as defined by the Commission, arising from 
any requirement to provide open access transmission services. This 
section applies to any rule or order issued by the Commission before 
the date of enactment of the Comprehensive Electricity Competition 
Act.''.
            (2) Authority to order retail wheeling.--Section 212(h) of 
        the FPA is amended--
                    (A) by inserting ``(1)'' before ``No'';
                    (B) by striking ``(1)'', ``(2)'', ``(A)'', and 
                ``(B)'' and inserting in their places ``(A)'', ``(B)'', 
                ``(i)'', and ``(ii)'' respectively;
                    (C) by striking from redesignated paragraph 
                (1)(B)(ii) ``the date of enactment of this subsection'' 
                and inserting ``October 24, 1992,'' in its place; and
                    (D) by adding at the end a new paragraph as 
                follows:
            ``(2) Notwithstanding paragraph (1), the Commission may 
        issue an order that requires the transmission of electric 
        energy directly or indirectly to an ultimate consumer if a 
        notice of retail competition under section 609 of the Public 
        Utility Regulatory Policies Act of 1978 has been filed and is 
        in effect with respect to the ultimate consumer or if a 
        distribution utility offers open access to its delivery 
        facilities to the ultimate consumer.''.
            (3) Conforming amendments--.
            (A) Section 3(23) of the FPA is amended to read as follows:
            ``(23) `transmitting utility' means any entity that owns, 
        controls, or operates electric power transmission facilities 
        that are used for the sale of electric energy, notwithstanding 
        section 201(f) of this Act.''.
            (B) Section 3(24) of the FPA is amended to read as follows:
            ``(24) `transmission services' means the transmission of 
        electric energy sold or to be sold.''.
            (C) Section 211(a) of the FPA is amended by striking ``for 
        resale''.
            (D) Section 212(a) of the FPA is amended by striking 
        ``wholesale'' each time it appears, except the last time.
    (c) Applicability of Commission Jurisdiction to Transmitting 
Utilities.--Section 206(e) of the FPA as added by subsection (b)(1) of 
this section is amended by adding the following new paragraphs after 
paragraph (1):
            ``(2)(A) The Commission has jurisdiction over the rates, 
        terms, and conditions for transmission services provided by a 
        transmitting utility that is not a public utility, subject to 
        section 212(h).
            ``(B) in exercising its authority under this paragraph, the 
        Commission--
                    ``(i) shall take into account the different 
                structural and operating characteristics of 
                transmitting utilities, including the multi-tier 
                structure and the not-for-profit operations of 
                cooperatives;
                    ``(ii) with respect to any transmitting utility 
                that has outstanding loans made or guaranteed by the 
                Rural Utilities Service, shall take into account the 
                policies of the Department of Agriculture in 
                implementing the Rural Electrification Act of 1936 and 
                shall assure, to the extent practicable, that the 
                utility will be able to meet any loan obligations under 
                that Act; and
                    ``(iii) shall not approve rates, terms, or 
                conditions the Commission determines would have the 
                effect of jeopardizing the tax exempt status of 
                nonprofit electric cooperatives under the Internal 
                Revenue Code of 1986.
            ``(C) Notwithstanding any other law, section 205, this 
        section, and part III apply to a transmitting utility that is 
        not a public utility for purposes of this section.
            ``(3) The Commission may suspend or modify for specified 
        periods application of its rules on nondiscriminatory open 
        access to one or more of the following entities: the Tennessee 
        Valley Authority, the Bonneville Power Administration, the 
        Southeastern Power Administration, the Southwestern Power 
        Administration, the Western Area Power Administration, a 
        corporation or association with outstanding debt to the 
        Administrator of the Rural Utility Service relating to electric 
        utility facilities, or a full-requirements wholesale customer 
        of any of these entities, if the Commission finds that the 
        entity will not be able to recover stranded costs.
            ``(4) Any electric utility that owns, directly or 
        indirectly, generation facilities financed in whole or in part 
        with outstanding loans made or guaranteed by the Rural 
        Utilities Service may apply to the Commission to impose a 
        charge for the recovery of stranded costs as defined by the 
        Commission. If the Commission determines that the proposed 
        charge is just, reasonable, and not unduly discriminatory or 
        preferential, the Commission may issue an order providing for 
        the imposition of the charge on transmission service by the 
        applicant or by another transmitting utility or on any electric 
        utility or transaction subject to the Commission's 
        jurisdiction.''.

SEC. 202. INTERSTATE COMPACTS ON REGIONAL TRANSMISSION PLANNING.

    The FPA is amended by adding after section 214 the following new 
section:

``SEC. 215. INTERSTATE COMPACTS ON REGIONAL TRANSMISSION PLANNING.

    ``(a) The consent of Congress is given for an agreement to 
establish a regional transmission planning agency, if the Commission 
determines that the agreement would--
            ``(1) facilitate coordination among the States within a 
        particular region with regard to the planning of future 
        transmission, generation, and distribution facilities,
            ``(2) carry out State electric facility siting 
        responsibilities more effectively,
            ``(3) meet the other requirements of this section and rules 
        prescribed by the Commission under this section, and
            ``(4) otherwise be consistent with the public interest.
    ``(b)(1) If the Commission determines that an agreement meets the 
requirements of subsection (a), the agency established under the 
agreement has the authority necessary or appropriate to carry out the 
agreement. This authority includes authority with respect to matters 
otherwise within the jurisdiction of the Commission, if expressly 
provided for in the agreement and approved by the Commission.
    ``(2) The Commission's determination under this section may be 
subject to any terms or conditions the Commission determines are 
necessary to ensure that the agreement is in the public interest.
    ``(c)(1) The Commission shall prescribe--
            ``(A) criteria for determining whether a regional 
        transmission planning agreement meets subsection (a), and
            ``(B) standards for the administration of a regional 
        transmission planning agency established under the agreement.
    ``(2) The criteria shall provide that, in order to meet subsection 
(a)--
            ``(A) a regional transmission planning agency must operate 
        within a region that includes all tribal governments and all or 
        part of each State that is a party to the agreement,
            ``(B) a regional transmission planning agency must be 
        composed of one or more members from each State and tribal 
        government that is a party to the agreement,
            ``(C) each participating State and tribal government must 
        vest in the regional transmission planning agency the authority 
        necessary to carry out the agreement and this section, and
            ``(D) the agency must follow workable and fair procedures 
        in making its decisions, in governing itself, and in regulating 
        parties to the agreement with respect to matters covered by the 
        agreement, including a requirement that all decisions of the 
        agency be made by majority vote (or majority of weighted votes) 
        of the members present and voting.
    ``(3) The criteria may include any other requirement for meeting 
subsection (a) that the Commission determines is necessary to ensure 
that the regional transmission planning agency's organization, 
practices, and procedures are sufficient to carry out this section and 
the rules issued under it.
    ``(d) The Commission, after notice and opportunity for comment, may 
terminate the approval of an agreement under this section at any time 
if it determines that the regional transmission planning agency fails 
to comply with this section or Commission prescriptions under 
subsection (c) or that the agreement is contrary to the public 
interest.
    ``(e) Section 313 applies to a rehearing before a regional 
transmission planning agency and judicial review of any action of a 
regional transmission planning agency. For this purpose, when section 
313 refers to `Commission', substitute `regional transmission planning 
agency' and when section 313(b) refers to `licensee or public utility', 
substitute `entity'.''.

SEC. 203. BACKUP AUTHORITY TO IMPOSE A CHARGE ON AN ULTIMATE CONSUMER'S 
              RECEIPT OF ELECTRIC ENERGY.

    The FPA is amended by adding the following new section after 
section 215 as added by section 202 of this Act:

``SEC. 216. BACKUP AUTHORITY FOR CHARGE ON RECEIPT OF ELECTRIC ENERGY.

    ``(a) If a State regulatory authority that has provided notice of 
retail competition under section 609 of the Public Utility Regulatory 
Policies Act of 1978 for a distribution utility determines that the 
utility should be authorized or required to impose a charge on an 
ultimate consumer's receipt of electric energy but the State regulatory 
authority lacks authority to authorize or require imposition of such a 
charge, the State regulatory authority may apply to the Commission for 
an order providing for the imposition of the charge. If the Commission 
determines that the imposition of the charge is just, reasonable, and 
not unduly discriminatory or preferential; is consistent with the State 
regulatory authority's policy regarding the imposition of the charge; 
and is not specifically prohibited by State law, the Commission may 
issue an order providing for the imposition of the charge.
    ``(b) If a utility that has outstanding loans made or guaranteed by 
the Rural Utilities Service and that has filed a notice of retail 
competition under section 609 of the Public Utilities Regulatory 
Policies Act of 1978 determines that it is appropriate to impose a 
charge on an ultimate consumer's receipt of electric energy, but lacks 
the authority to impose such a charge under State law, the utility may 
apply to the Commission for an order providing for the imposition of a 
charge. If the Commission determines that the proposed charge is just, 
reasonable, and not unduly discriminatory or preferential, the 
Commission may issue an order providing for the imposition of the 
charge.''.

SEC. 204. AUTHORITY TO ESTABLISH AND REQUIRE INDEPENDENT SYSTEM 
              OPERATION.

    Section 202 of the FPA is amended by adding the following new 
subsection after subsection (g):
    ``(h) Upon its own motion or upon application or complaint and 
after notice and an opportunity for a hearing, the Commission may order 
the establishment of an entity for the purpose of independent operation 
and control of interconnected transmission facilities, may order a 
transmitting utility to relinquish control over operation of its 
transmission facilities to an entity established for the purpose of 
independent operation and control of interconnected transmission 
facilities, or may do both, if the Commission finds that--
            ``(1) this action is appropriate to promote competitive 
        electricity markets and efficient, economical, and reliable 
        operation of the interstate transmission grid;
            ``(2) the entity established for the purpose of independent 
        operation and control of interconnected transmission facilities 
        will operate the transmission facilities in a manner that 
        assures that ownership of transmission facilities provides no 
        advantage in competitive electricity markets; and
            ``(3) any transmitting utility ordered to transfer control 
        of its transmission facilities will receive just and reasonable 
        compensation for the use of its facilities.''.

                       TITLE III--PUBLIC BENEFITS

SEC. 301. PUBLIC BENEFITS FUND.

    PURPA is amended by adding after section 609, as added by section 
101 of this Act, the following new section:

``SEC. 610. PUBLIC BENEFITS FUND.

    ``(a) Definitions.--For purposes of this section--
            ``(1) the term `Board' means the Federal-State Joint Board 
        established under subsection (b)(1);
            ``(2) the term `eligible public purpose program' means a 
        program that supports one or more of the following--
                    ``(A) availability of affordable electricity 
                service to low-income customers;
                    ``(B) implementation of energy conservation and 
                energy efficiency measures and energy management 
                practices,
                    ``(C) consumer education,
                    ``(D) the development and demonstration of an 
                electricity generation technology that the Secretary 
                determines is emerging from research and development, 
                provides environmental benefits, and--
                            ``(i) has significant national commercial 
                        potential, or
                            ``(ii) provides energy security or 
                        generation resource diversity benefits, or
                    ``(E) rural assistance subsequent to a 
                determination made under subsection (d)(4);
            ``(3) the term `fiscal agent' means the entity designated 
        under subsection (b)(2)(B);
            ``(4) the term `Fund' means the Public Benefits Fund 
        established under subsection (b)(2)(A); and
            ``(5) the term `State' means each of the contiguous States 
        and the District of Columbia.
    ``(b) Federal-State Joint Board.--(1) A Federal-State Joint Board 
is established whose membership is composed of two officers or 
employees of the United States Government appointed by the Secretary 
and five State commissioners appointed by the national organization of 
State commissions. The Secretary shall designate the Chair of the 
Board.
    ``(2) The Board shall--
            ``(A) establish a Public Benefits Fund upon petition of 
        States and tribal governments wishing to participate in the 
        program under this section,
            ``(B) appoint a fiscal agent, from persons nominated by the 
        States and tribal governments petitioning to establish the 
        Fund, and
            ``(C) administer the Fund as set forth in this section.
    ``(c) Fiscal Agent.--The fiscal agent appointed by the Board shall 
collect and disburse the amounts in the Fund as set forth in this 
section.
    ``(d) Secretary.--The Secretary shall prescribe rules for--
            ``(1) the determination of charges under subsection (e);
            ``(2) the collection of amounts for the Fund, including 
        provisions for overcollection or undercollection;
            ``(3) distribution of amounts from the Fund; and
            ``(4) the criteria under which the Board determines whether 
        a State or tribal government's program is an eligible public 
        purpose program, including a rural assistance program. A rural 
        assistance program shall be an eligible public purpose program 
        to the extent that the Secretary, in consultation with the 
        Secretary of Agriculture, determines by rule that significant 
        adverse economic effects on rural customers have occurred or 
        will occur as a result of electricity restructuring that meets 
        the retail competition requirements of this Act. After such a 
        demonstration is made, the Secretary, in consultation with the 
        Secretary of Agriculture, shall specify by rule the mechanism 
        for distribution of funds to rural assistance programs, amounts 
        to be provided, and variances to the overall requirements to 
        the Public Benefits Fund under this section, if any. For the 
        purposes of funding rural assistance programs, the Secretary 
        shall increase the charge for the Public Benefit Fund as 
        necessary, up to a maximum of .17 mills per kilowatt hour. 
        Funding for rural assistance programs under this section shall 
        be provided exclusively from this increase in the charge.
    ``(e) Public Benefits Charge.--(1) As a condition of existing or 
future interconnection with facilities of any transmitting utility, 
each owner of an electric generating facility whose capacity exceeds 
one megawatt shall pay the transmitting utility a public benefits 
charge determined under paragraph (2), even if the generation facility 
and the transmitting facility are under common ownership or are 
otherwise affiliated. Each importer of electric energy from Canada or 
Mexico, as a condition of existing or future interconnection with 
facilities of any transmitting utility in the United States, shall pay 
this same charge for imported electric energy. The transmitting utility 
shall pay the amounts collected to the fiscal agent at the close of 
each month, and the fiscal agent shall deposit the amounts into the 
Fund.
    ``(2)(A) The Board shall notify the Commission of the sum of the 
requests of all States and tribal governments under subsection (f) 
within 30 days after receiving the requests.
    ``(B) The Commission shall calculate the rate for the public 
benefits charge for each calendar year at an amount, not in excess of 1 
mill per kilowatt-hour, equal to the sum of the requests of all States 
and tribal governments under subsection (f) for programs described in 
subsection (a)(2)(A) through (a)(2)(D) divided by the estimated 
kilowatt hours of electric energy to be generated by generators subject 
to the charge. Every five years the Secretary shall review the charge 
and shall direct the Commission to revise the charge as appropriate to 
maintain a total Fund level relatively close to the target level of 
approximately $3 billion per year nationwide, adjusted for inflation. 
If there are significant receipts from the sale of Renewable Energy 
Credits under section 611, the Secretary shall review the rate for this 
charge on a more frequent basis and may direct the Commission to reduce 
the charge by some portion of these receipts as long as sufficient 
funds remain to ensure that the Fund level is appropriate to achieve 
the environmental goals of this section and section 611 of this Act.
    ``(C) If a finding is made under subsection (d)(4) in relation to 
rural customers, the public benefit charge shall be increased as 
indicated under subsection (d)(4).
    ``(f) State and Tribal Government Participation.--(1) Not later 
than 90 days before the beginning of each calendar year, each State and 
tribal government seeking to participate in the Fund shall submit to 
the Board a request for payments from the Fund for the calendar year in 
an amount not in excess of 50 percent of the State or tribal 
government's estimated expenditures for eligible public purpose 
programs for the year, except as provided under rules issued under 
subsection (d)(4) for rural assistance programs.
    ``(2) To the extent a State or tribal government generates all or 
part of its funds for eligible public purpose programs through a wires 
charge on an ultimate consumer's receipt of electric energy, the State 
or tribal government shall impose the charge on a non-discriminatory 
basis on all consumers within the State or tribal government 
jurisdiction.
    ``(3) Notwithstanding subsection (a)(5)--
            ``(A) Alaska may participate in the Fund as a State if it 
        certifies to the Board that all generators within Alaska with a 
        nameplate capacity exceeding one megawatt shall pay into the 
        Fund at the rate calculated by the Board during the year in 
        which Alaska seeks matching funds, and
            ``(B) Hawaii may participate in the Fund as a State if it 
        certifies to the Board that all generators within Hawaii with a 
        nameplate capacity exceeding one megawatt shall pay into the 
        Fund at the rate calculated by the Board during the year in 
        which Hawaii seeks matching funds.
    ``(g) Disbursal From the Fund.--(1) The Board shall review State 
and tribal government submissions and determine whether programs 
designated by the State or tribal government are eligible public 
purpose programs, using the criteria prescribed under section (d), and 
whether there is reasonable assurance that spending qualifying as State 
or tribal government matching funds will occur.
    ``(2) The fiscal agent shall disburse amounts in the Fund to 
participating States and tribal governments to carry out eligible 
public purpose programs in accordance with this subsection and rules 
prescribed under subsection (d).
    ``(3) To the extent the aggregate amount of funds requested by the 
States and tribal governments exceeds the maximum aggregate revenues 
eligible to be collected under subsection (e) and deposited as payment 
for Renewable Energy Credits under section 611, the fiscal agent shall 
reduce each participating State and tribal government's request 
proportionately.
    ``(4)(A) The fiscal agent shall disburse amounts for a calendar 
year from the Fund to a State or tribal government in twelve equal 
monthly payments beginning two months after the beginning of the 
calendar year. Amounts disbursed may not exceed the lesser of the State 
or tribal government's request for the fiscal year, after any reduction 
required under paragraph (3), or 50 percent of the State or tribal 
government's documented expenditures for eligible public purpose 
programs for a calendar year, except as provided under rules issued 
under subsection (d)(4) for rural assistance programs.
    ``(B) The fiscal agent shall make distributions to the State or 
tribal government or to an entity designated by the State or tribal 
government to receive payments. The State or tribal government may 
designate a nonregulated utility as an entity to receive payments under 
this section.
    ``(C) A State or tribal government may use amounts received only 
for the eligible public purpose programs the State or tribal government 
designated in its submission to the Board and the Board determined 
eligible.
    ``(h) Report.--One year before the date of expiration of this 
section, the Secretary shall report to Congress, after consultation 
with the Board, whether a public benefits fund should continue to 
exist.
    ``(i) Sunset.--This section expires at midnight on December 31 of 
the fifteenth year after the year the Comprehensive Electricity 
Competition Act is enacted, except with regard to charges and funding 
for rural assistance programs.''.

SEC. 302. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    (a) Standard.--PURPA is amended by adding after section 610, as 
added by section 301 of this Act, the following new section:

``SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Minimum Renewable Generation Requirement.--(1) For each 
calendar year beginning with 2000, a retail electric supplier shall 
submit to the Secretary Renewable Energy Credits in an amount equal to 
the required annual percentage, specified in subsection (b), of the 
total electric energy sold by the retail electric supplier to electric 
consumers in the calendar year. The retail electric supplier shall make 
this submission before April 1 of the following calendar year.
    ``(2) For purposes of this section `renewable energy' means energy 
produced by solar, wind, geothermal, or biomass.
    ``(3) This section does not preclude a State from requiring 
additional renewable energy generation in that State.
    ``(b) Required Annual Percentage.--(1) The Secretary shall 
determine the required annual percentage that is to be applied to all 
retail electric suppliers for calendar years 2000-2004. This required 
annual percentage shall be equal to the percent of the total electric 
energy sold, during the most recent calendar year for which information 
is available before the calendar year of the enactment of this section, 
by retail electric suppliers to electric customers in the United States 
that is renewable energy.
    ``(2) The Secretary shall determine the required annual percentage 
for all retail electric suppliers for calendar years 2005-2009. This 
percentage shall be above the percentage in paragraph (1) and below the 
percentage in paragraph (3) and shall be selected to promote a smooth 
transition to the level in paragraph (3).
    ``(3) For calendar years 2010-2015, 5.5 percent.
    ``(c) Submission of Credits.--A retail electric supplier may 
satisfy the requirements of subsection (a) through the submission of--
            ``(1) Renewable Energy Credits issued under subsection (d) 
        for renewable energy generated by the retail electric supplier 
        in the calendar year for which Credits are being submitted or 
        any previous calendar year,
            ``(2) Renewable Energy Credits issued under subsection (d) 
        to any renewable energy generator for renewable energy 
        generated in the calendar year for which Credits are being 
        submitted or a previous calendar year and acquired by the 
        retail electric supplier, or
            ``(3) any combination of Credits under paragraphs (1) and 
        (2).
    ``(d) Issuance of Credits.--(1) The Secretary shall establish, not 
later than one year after the date of enactment of this section, a 
program to issue, monitor the sale or exchange of, and track Renewable 
Energy Credits.
    ``(2) Under the program, an entity that generates electric energy 
through the use of renewable energy may apply to the Secretary for the 
issuance of Renewable Energy Credits. The application shall indicate--
            ``(A) the type of energy used to produce the electricity,
            ``(B) the State in which the electric energy was produced, 
        and
            ``(C) any other information the Secretary determines 
        appropriate.
    ``(3) The Secretary shall issue to an entity one Renewable Energy 
Credit for each kilowatt-hour of electric energy the entity generates 
through the use of renewable energy in any State in 2000 and any 
succeeding year. To be eligible for a Renewable Energy Credit, the unit 
of electricity generated through the use of renewable energy may be 
sold or may be used by the generator. If both renewable energy and non-
renewable energy are used to generate the electric energy, the 
Secretary shall issue credits based on the proportion of renewable 
energy used. The Secretary shall identify Renewable Energy Credits by 
type of generation and by the State in which the generating facility is 
located.
    ``(4) In order to receive a Renewable Energy Credit, the recipient 
of a Renewable Energy Credit shall pay a fee, calculated by the 
Secretary, in an amount that is equal to the administrative costs of 
issuing, recording, monitoring the sale or exchange of, and tracking 
the Credit or does not exceed five percent of the dollar value of the 
Credit, whichever is lower. The Secretary shall retain the fee and use 
it to pay these administrative costs.
    (5) When a generator sells electric energy generated through the 
use of renewable energy to a retail electric supplier under a contract 
subject to section 210 of this Act, the retail electric supplier is 
treated as the generator of the electric energy for the purposes of 
this section for the duration of the contract.
    (6) The Secretary shall disqualify an otherwise eligible renewable 
energy generator from receiving a Renewable Energy Credit if the 
generator has elected to participate in net metering under section 612.
    (7) If a generator using renewable energy receives matching funds 
under section 610, the Secretary shall reduce the number of Renewable 
Energy Credits the generator receives under paragraph (3) so that the 
aggregate value of those Credits plus the matching funds received under 
section 601 equals the aggregate value of the Credits the generator 
would have received absent this paragraph. For purposes of this 
paragraph, the Secretary shall value a Credit at a price that is 
representative of the price of a Credit in private transactions. In no 
event shall the Secretary use a price to establish values for purposes 
of this paragraph that exceeds the cost cap established under 
subsection (f).
    ``(e) Sale or Exchange.--A Renewable Energy Credit may be sold or 
exchanged by the entity to whom issued or by any other entity who 
acquires the Credit. A Renewable Energy Credit for any year that is not 
used to satisfy the minimum renewable generation requirement of 
subsection (a) for that year may be carried forward for use in another 
year.
    ``(f) Renewable Energy Credit Cost Cap.--Beginning January 1, 2000, 
the Secretary shall offer Renewable Energy Credit for sale. The 
Secretary shall charge 1.5 cents for each Renewable Energy Credit sold 
during calendar year 2000, and on January 1 of each following year, the 
Secretary shall adjust for inflation, based on the Consumer Price 
Index, the price charged per Credit for that calendar year. The 
Secretary shall deposit in the Public Benefits Fund established under 
section 610 the amount received from a sale under this subsection. That 
amount shall be used for the same purposes as other amounts in the 
Public Benefits Fund.
    ``(g) Enforcement.--The Secretary may bring an action in the 
appropriate United States district court to impose a civil penalty on a 
retail electric supplier that does not comply with subsection (a). A 
retail electric supplier who does not submit the required number of 
Renewable Energy Credits under subsection (a) is subject to a civil 
penalty of not more than three times the value of the Renewable Energy 
Credits not submitted. For purposes of this subsection, the value of a 
Renewable Energy Credit is the price of a Credit determined under 
subsection (f) for the year the Credits were not submitted.
    ``(h) Information Collection.--The Secretary may collect the 
information necessary to verify and audit--
            ``(1) the annual electric energy generation and renewable 
        energy generation of any entity applying for Renewable Energy 
        Credits under this section.
            ``(2) the validity of Renewable Energy Credits submitted by 
        a retail electric supplier to the Secretary, and
            ``(3) the quantity of electricity sales of all retail 
        electric suppliers.
    ``(i) Sunset.--This section expires December 31, 2015.''.
    (b) Definition.--Section 3 of PURPA is amended by adding after 
paragraph (22) as added by section 101 of this Act the following new 
paragraph:
            ``(23) The term `retail electric supplier' means a person, 
        State agency, or Federal agency that sells electric energy to 
        an electric consumer.''.

SEC. 303. NET METERING.

    PURPA is amended by adding the following new section after section 
611 as added by section 302 of this Act:

``SEC. 612. NET METERING FOR RENEWABLE ENERGY.

    ``(a) Definitions.--For purposes of this section--
            ``(1) The term `eligible on-site generating facility' means 
        a facility on the site of an electric consumer with a peak 
        generating capacity of 20 kilowatts or less that is fueled 
        solely by a renewable energy resource.
            ``(2) The term `renewable energy resource' means solar 
        energy, wind, geothermal, or biomass.
            ``(3) The term `net metering service' means service to an 
        electric consumer under which electricity generated by that 
        consumer from an eligible on-site generating facility and 
        delivered to the distribution system through the same meter 
        through which purchased electricity is received may be used to 
        offset electricity provided by the retail electric supplier to 
        the electric consumer during the applicable billing period so 
        that an electric consumer is billed only for the net 
        electricity consumed during the billing period, but in no event 
        shall the net be less than zero during the applicable billing 
        period.
    ``(b) Requirment To Provide Net Metering Service.--Each retail 
electric supplier shall make available upon request net metering 
service to any retail electric consumer whom the supplier currently 
serves or solicits for service.
    ``(c) Requirement To Provide Interconnection.--A distribution 
utility, as defined in section 609, shall permit the interconnection to 
its distribution system of an on-site generating facility if the 
facility meets the safety and power quality standards established by 
the Commission.
    ``(d) Rules.--The Commission shall prescribe safety and power 
quality standards and rules necessary to carry out this section. These 
standards and rules apply to any interconnections of an on-site 
generating facility with a distribution system, regardless of the size 
of the facility or the type of fuel used by the facility.
    ``(e) State Authority.--This section does not preclude a State from 
imposing additional requirements consistent with the requirements in 
this section. A State may impose a cap limiting the amount of net 
metering available in the State.''.

SEC. 304. REFORM OF SECTION 210 OF PURPA.

    Section 210 of PURPA is amended by adding the following new 
subsection after subsection (l):
    ``(m) Repeal of Mandatory Purchase Requirement.--After the date of 
enactment of the Comprehensive Electricity Competition Act, an electric 
utility shall not be required to enter into a new contract or 
obligation to purchase electric energy under this section.''.

        TITLE IV--REGULATION OF MERGERS AND CORPORATE STRUCTURE

SEC. 401. REFORM OF HOLDING COMPANY REGULATION UNDER PUHCA.

    Effective 18 months after the enactment of this Act, the Public 
Utility Holding Company Act of 1935 is repealed and the following is 
enacted in its place.

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Public Utility Holding Company Act 
of 1998'.

``SEC. 2. DEFINITIONS.

    ``For purposes of this Act--
            ``(1) the term `affiliate' of a company means any company 5 
        percent or more of the outstanding voting securities of which 
        are owned, controlled, or held with power to vote, directly or 
        indirectly, by such company;
            ``(2) the term `associate company' of a company means any 
        company in the same holding company system with such company;
            ``(3) the term `Commission' means the Federal Energy 
        Regulatory Commission;
            ``(4) the term `company' means a corporation, partnership, 
        association, joint stock company, business trust, or any 
        organized group of persons, whether incorporated or not, or a 
        receiver, trustee, or other liquidating agent of any of the 
        foregoing;
            ``(5) The term `electric utility company' means any company 
        that owns or operates facilities used for the generation, 
        transmission, or distribution of electric energy for sale;
            ``(6) the terms `exempt wholesale generator' and `foreign 
        utility company' have the same meanings as in section 32 and 
        33, respectively, of the Public Utility Holding Company Act of 
        1935, as those sections existed on the day before the effective 
        date of this Act;
            ``(7) the term `gas utility company' means any company that 
        owns or operates facilities used for distribution at retail 
        (other than the distribution only in enclosed portable 
        containers, or distribution to tenants or employees of the 
        company operating such facilities for their own use and not for 
        resale) of natural or manufactured gas for heat, light, or 
power;
            ``(8) the term `holding company' means--
                    ``(A) any company that directly or indirectly owns, 
                controls, or holds, with power to vote, 10 percent or 
                more of the outstanding voting securities of a public 
                utility company or of a holding company of any public 
                utility company; and
                    ``(B) any person, determined by the Commission, 
                after notice and opportunity for hearing, to exercise 
                directly or indirectly (either alone or pursuant to an 
                arrangement or understanding with one or more persons) 
                such a controlling influence over the management or 
                policies of any public utility company or holding 
                company as to make it necessary or appropriate for the 
                rate protection of utility customers with respect to 
                rates that such person be subject to the obligations, 
                duties, and liabilities imposed by this Act upon 
                holding companies;
            ``(9) the term `holding company system' means a holding 
        company, together with its subsidiary companies;
            ``(10) the term `jurisdictional rates' means rates 
        established by the Commission for the transmission of electric 
        energy, the sale of electric energy at wholesale in interstate 
        commerce, the transportation of natural gas, and the sale in 
        interstate commerce of natural gas for resale for ultimate 
        public consumption for domestic, commercial, industrial, or any 
        other use;
            ``(11) the term `natural gas company' means a person 
        engaged in the transportation of natural gas in interstate 
        commerce or the sale of such gas in interstate commerce for 
        resale;
            ``(12) the term `person' means an individual or company;
            ``(13) the term `public utility' means any person who owns 
        or operates facilities used for transmission of electric energy 
        or sales of electric energy at wholesale in interstate 
        commerce;
            ``(14) the term `public utility company' means an electric 
        utility company or a gas utility company;
            ``(15) the term `State commission' means any commission, 
        board, agency, or officer, by whatever name designated, of a 
        State, municipality, or other political subdivision of a State 
        that, under the laws of such State, has jurisdiction to 
        regulate public utility companies;
            ``(16) the term `subsidiary company' of a holding company 
        means--
                    ``(A) any company, 10 percent or more of the 
                outstanding voting securities of which are directly or 
                indirectly owned, controlled, or held with power to 
                vote, by such holding company; and
                    ``(B) any person, the management 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 liability imposed by this Act upon subsidiary companies of 
holding companies; and
            ``(17) the term `voting security' means any security 
        presently entitling the owner or holder thereof to vote in the 
        direction or management of the affairs of a company.

``SEC. 3. FEDERAL ACCESS TO BOOKS AND RECORDS.

    ``(a) In General.--Each holding company and each associate company 
thereof shall maintain, and shall make available to the Commission, 
such books, accounts, records, memoranda, and other records as the 
Commission deems to be relevant to costs incurred by a public utility 
or natural gas company that is an associate company of such holding 
company and necessary or appropriate for the protection of utility 
customers with respect to jurisdictional rates for the transmission of 
electric energy, the sale of electric energy at wholesale in interstate 
commerce, the transportation of natural gas in interstate commerce, and 
the sale in interstate commerce of natural gas for resale for ultimate 
public consumption for domestic, commercial, industrial, or any other 
use.
    ``(b) Affiliate Companies.--Each affiliate of a holding company or 
of any subsidiary company of a holding company shall maintain, and make 
available to the Commission, such books, accounts, memoranda, and other 
records with respect to any transaction with another affiliate, as the 
Commission deems relevant to costs incurred by a public utility or 
natural gas company that is an associate company of such holding 
company and necessary or appropriate for the protection of utility 
customers with respect to jurisdictional rates.
    ``(c) Holding Company Systems.-- The Commission may examine the 
books, accounts, memoranda, and other records of any company in a 
holding company system, or any affiliate thereof, as the Commission 
deems relevant to costs incurred by a public utility or natural gas 
company within such holding company system and necessary or appropriate 
for the protection of utility customers with respect to jurisdictional 
rates.
    ``(d) Confidentiality.--No member, officer, or employee of the 
Commission shall divulge any fact or information that may come to his 
or her knowledge during the course of examination of books, accounts, 
memoranda, or other records as provided in this section, except as may 
be directed by the Commission or by a court of competent jurisdiction.

``SEC. 4. STATE ACCESS TO BOOKS AND RECORDS.

    ``(a) In General.--Upon the written request of a State commission 
having jurisdiction to regulate a public utility company in a holding 
company system, the holding company or any associate company or 
affiliate thereof, other than such public utility company, wherever 
located, shall produce for inspection such books, accounts, memoranda, 
and other records that--
            ``(1) have been identified in reasonable detail in a 
        proceeding before the State commission;
            ``(2) the State commission deems are relevant to costs 
        incurred by such public utility company; and
            ``(3) are necessary for the effective discharge of the 
        responsibilities of the State commission with respect to such 
        proceeding.
    ``(b) Limitation.--Subsection (a) does not apply to any person that 
is a holding company solely by reason of ownership of one or more 
qualifying facilities under the Public Utility Regulatory Policies Act 
of 1978.
    ``(c) Confidentiality of Information.--The production of books, 
accounts, memoranda, and other records under subsection (a) shall be 
subject to such terms and conditions as may be necessary and 
appropriate to safeguard against unwarranted disclosure to the public 
of any trade secrets or sensitive commercial information.
    ``(d) Effect on State Law.--Nothing in this section shall preempt 
applicable State law concerning the provision of books, records, or any 
other information, or in any way limit the rights of any State to 
obtain books, records, or any other information under any other Federal 
law, contract, or otherwise.
    ``(e) Court Jurisdiction.--Any United States district court located 
in the State in which the State commission referred to in subsection 
(a) is located shall have jurisdiction to enforce compliance with this 
section.

``SEC. 5. EXEMPTION AUTHORITY.

    ``(a) Rulemaking.--Not later than 90 days after the effective date 
of this Act, the Commission shall promulgate a final rule to exempt 
from the requirements of section 3 any person that is a holding 
company, solely with respect to one or more--
            ``(1) qualifying facilities under the Public Utility 
        Regulatory Policies Act of 1978;
            ``(2) exempt wholesale generators; or
            ``(3) foreign utility companies.
    ``(b) Other Authority.--If, upon application or upon its own 
motion, the Commission finds that the books, records, accounts, 
memoranda, and other records of any person are not relevant to the 
jurisdictional rates of a public utility or natural gas company, or if 
the Commission finds that any class of transactions is not relevant to 
the jurisdictional rates of a public utility or natural gas company, 
the Commission shall exempt such person or transaction from the 
requirements of section 3.

``SEC. 6. AFFILIATE TRANSACTIONS.

    ``Nothing in this Act shall preclude the Commission or a State 
commission from exercising its jurisdiction under otherwise applicable 
law to determine whether a public utility company, public utility, or 
natural gas company may recover in rates any costs of an activity 
performed by an associate company, or any costs of goods or services 
acquired by such public utility company from an associate company.

``SEC. 7. APPLICABILITY.

    ``No provision of this Act shall apply to, or be deemed to 
include--
            ``(1) the United States;
            ``(2) a State or any political subdivision of a State;
            ``(3) any foreign governmental authority not operating in 
        the United States;
            ``(4) any agency, authority, or instrumentality of any 
        entity referred to in paragraph (1), (2), or (3); or
            ``(5) any officer, agent, or employee of any entity 
        referred to in paragraph (1), (2), or (3) acting as such in the 
        course of official duty.

``SEC. 8. EFFECT ON OTHER REGULATIONS.

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

``SEC. 9. ENFORCEMENT.

    ``The Commission shall have the same powers as set forth in 
sections 306 through 317 of the Federal Power Act (16 U.S.C. 825d-825p) 
to enforce the provisions of this Act.

``SEC. 10. SAVINGS PROVISIONS.

    ``(a) In General.--Nothing in this Act prohibits a person from 
engaging in or continuing to engage in activities or transactions in 
which it is legally engaged or authorized to engage on the effective 
date of this Act.
    ``(b) Effect on Other Commission Authority.--Nothing in this Act 
limits the authority of the Commission under the Federal Power Act (16 
U.S.C. 791a et seq.) (including section 301 of that Act) or the Natural 
Gas Act (15 U.S.C. 717 et seq.) (including section 8 of that Act).

``SEC. 11. IMPLEMENTATION.

    ``Not later than 18 months after the date of enactment of the 
Comprehensive Electricity Competition Act, the Commission shall--
            ``(1) promulgate such regulations as may be necessary or 
        appropriate to implement this Act (other than section 4); and
            ``(2) submit to the Congress detailed recommendations on 
        technical and conforming amendments to Federal law necessary to 
        carry out this Act and the amendments made by this Act.

``SEC. 12. TRANSFER OF RESOURCES.

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

``SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 14. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.

    ``Section 318 of the Federal Power Act (16 U.S.C. 825q) is 
repealed.''.

SEC. 402. ELECTRIC COMPANY MERGERS.

    Section 203(a) of the FPA is amended by--
            (1) striking ``public utility'' each time it appears and 
        inserting in its place ``person or electric utility company'';
            (2) inserting after the first sentence the following: 
        ``Except as the Commission otherwise provides, a holding 
        company in a holding company system that includes an electric 
        utility company shall not, directly or indirectly, purchase, 
        acquire, or take any security of an electric utility company or 
        of a holding company in a holding company system that includes 
        an electric utility company, without first securing an order of 
        the Commission authorizing it to do so.'';
            (3) striking ``hearing'' in the last sentence and inserting 
        ``oral or written presentation of views''; and
            (4) adding at the end the following: ``For purposes of this 
        subsection, the terms `electric utility company,' `holding 
        company', and `holding company system' have the meaning given 
        them in section 2 of the Public Utility Holding Company Act of 
        1998. Notwithstanding section 201(b)(1), generation facilities 
        are subject to the jurisdiction of the Commission for purposes 
        of this section, except as the Commission otherwise may 
        provide.''.

SEC. 403. REMEDIAL MEASURES FOR MARKET POWER.

    The FPA is amended by adding the following new section after 
section 216 as added by section 203 of this Act:

``SEC. 217. REMEDIAL MEASURES FOR MARKET POWER.

    ``(a) Definitions.--As used in this section--
            (1) `market power' means the ability of an electric utility 
        profitably to maintain prices above competitive levels for a 
        significant period of time, and
            ``(2) `notice of retail competition' has the meaning 
        provided under section 3(22) of the Public Utility Regulatory 
        Policies Act of 1978.
    ``(b) Commission Jurisdictional Sales.--(1) If the Commission 
determines that there are markets in which a public utility that owns 
or controls generation facilities has market power in sales of electric 
energy for resale in interstate commerce, the Commission shall order 
that utility to submit a plan for taking necessary actions to remedy 
its market power, which may include, but is not limited to, conditions 
respecting operation or dispatch of generation, independent operation 
of transmission facilities, or divestiture of ownership of one or more 
generation facilities.
    ``(2) In consultation with the Attorney General and the Federal 
Trade Commission, the Commission shall review the plan to determine if 
its implementation would adequately mitigate the adverse competitive 
effects of market power. The Commission may approve the plan with or 
without modification. The plan takes effect upon approval by the 
Commission. Notwithstanding any State law, regulation, or order to the 
contrary and notwithstanding any other provision of this Act or any 
other law, the Commission has jurisdiction to order divestiture or 
other transfer of control of generation assets pursuant to the plan.
    ``(c) State Jurisdictional Sales.--(1) If a State commission that 
has filed a notice of retail competition has reason to believe that an 
electric utility doing business in the State has market power, the 
State commission may apply for an order under this section.
    ``(2) If, after receipt of such an application and after notice and 
opportunity for a hearing, the Commission determines that the electric 
utility has market power in the sales of electric energy sold at retail 
in the State, this market power would adversely affect competition in 
the State, and the State commission lacks authority to effectively 
remedy such market power, the Commission may order the electric utility 
to submit a plan for taking necessary actions to remedy the electric 
utility's market power. These actions may include conditions respecting 
operation or dispatch of generation, competitive procurement of all 
generation capacity or energy, independent operation of transmission 
facilities, or divestiture of ownership of one or more generation 
facilities of the electric utility.
    ``(3) After consultation with the Attorney General and the Federal 
Trade Commission, the Commission may approve the plan with or without 
modification. The plan shall take effect upon approval by the 
Commission.
    ``(4) Notwithstanding any State law, regulation, or order to the 
contrary and notwithstanding any other provision of this act or any 
other law, the Commission has jurisdiction to order divestiture or 
other transfer of control of generation assets pursuant to the plan.''.

                     TITLE V--ELECTRIC RELIABILITY

SEC. 501. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.

    (a) The FPA is amended by adding the following new section after 
section 217 as added by section 403 of this Act:

``SEC. 218. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.

    ``(a) Definition.--As used in this section:
            ``(1) The term `bulk-power system' means all facilities and 
        control systems necessary for operating the interconnected 
        transmission grids, including high-voltage transmission lines; 
        substations; control centers; communications, data, and 
        operations planning facilities; and generating units necessary 
        to maintain transmission system reliability.
            ``(2) The term `electric reliability organization' or 
        `organization' means the organization registered by the 
        Commission under subsection (d)(4).
            ``(3) The term `system operator' means any entity that 
        operates or is responsible for the operation of the bulk-power 
        system, including control area operators, independent system 
        operators, transmission companies, transmission system 
        operators, and regional security coordinators.
            ``(4) The term `user of the bulk-power system' means any 
        entity that sells, purchases, or transmits electric power over 
        the bulk-power system; owns, operates or maintains facilities 
        of the bulk-power system; or is a system operator.
    ``(b) Commission Authority.--(1) The Commission has jurisdiction 
over the electric reliability organization, all system operators, and 
all users of the bulk-power system for purposes of approving and 
enforcing compliance with standards in the United States.
  ``(2) The Commission may register an electric reliability 
organization and approve and oversee the activities in the United 
States of that electric reliability organization.
    ``(c) Compliance With Existing Reliability Standards.--A user of 
the bulk-power system shall comply with standards established by the 
North American Electric Reliability Council and the regional 
reliability councils that exist on the date of enactment of the 
Comprehensive Electricity Competition Act, consistent with any 
agreement entered into under subsection (f). Each standard remains in 
effect unless modified under this subsection or superseded by standards 
approved under subsection (e). The Commission, upon its own motion or 
upon request and consistent with any agreements entered into pursuant 
to subsection (f), may modify or suspend the application of a standard 
and may enforce a standard exercising the same authority that the 
electric reliability organization may exercise under subsection (k). 
The North American Electric Reliability Council and the regional 
reliability councils may monitor compliance with these standards.
    ``(d) Organization Registration and Establishment of Standards.--
(1) Not later than 90 days after the date of enactment of this section, 
the Commission shall issue proposed rules specifying the procedures and 
requirements for an organization to apply for registration and file 
existing reliability standards. The Commission shall provide adequate 
opportunity for comment on the proposed rules. The Commission shall 
issue final rules under this subsection within 180 days after the date 
of enactment of this section.
    ``(2) Following the issuance of final Commission rules under 
paragraph (1), an electric reliability organization may apply for 
registration with the Commission. The organization shall include in its 
application its governance, procedures, and funding mechanism, and 
shall file the standards in effect under subsection (c).
    ``(3) The Commission shall provide public notice of the application 
and the standards filed under this subsection and afford interested 
parties an opportunity to comment on the application and filing.
    ``(4) The Commission shall register the organization if the 
Commission determines that the organization--
            ``(A) has the ability to provide for an adequate level of 
        reliability of the bulk-power system;
            ``(B) permits voluntary membership to any users of the 
        bulk-power system or interested customer class or public 
        interest group;
            ``(C) assures fair representation of its members in the 
        selection of its directors and fair management of its affairs, 
        taking into account the need for efficiency and effectiveness 
        in decisionmaking and operations and the requirements for 
        technical competency in the development of standards and the 
        exercise of oversight of the reliability system, and assures 
        that no single class of market participants has the ability to 
control the organization's discharge of its responsibilities;
            ``(D) assesses reasonable dues, fees, or other charges 
        necessary to support the organization and the purposes of this 
        section and has a funding mechanism that is fair and not unduly 
        discriminatory;
            ``(E) establishes procedures for standards development that 
        provide reasonable notice and opportunity for public comment, 
        taking into account the need for efficiency and effectiveness 
        in decisionmaking and operations and the requirements for 
        technical competency in the development of standards;
            ``(F) establishes fair and impartial procedures for 
        enforcement of standards, including penalties; limitation of 
        activity, function, or operations; or other appropriate 
        sanctions;
            ``(G) establishes procedures for notice and opportunity for 
        public observation of all meetings, except that the procedures 
        for public observation may include alternative procedures for 
        emergencies or for the discussion of information the directors 
        determine should take place in closed session, including the 
        discussion of information with respect to proposed enforcement 
        or disciplinary action; and
            ``(H) addresses other matters that the Commission considers 
        necessary or appropriate.
    ``(5) The Commission shall approve only one electric reliability 
organization. If the Commission receives timely applications from two 
or more applicants that satisfy the requirements of this subsection, 
the Commission shall approve only the application it concludes will 
best ensure a reliable bulk-power system.
    ``(e) Review and Changes or Modifications to Standards.--(1) The 
Commission shall review the standards submitted under subsection 
(d)(2), concurrent with its review of the application under subsection 
(d), and each standard remains effective if the Commission determines 
that it is just, reasonable, and not unduly discriminatory or 
preferential; is in the public interest; and provides for an adequate 
level of reliability of the bulk-power system.
    ``(2) With respect to a standard that the Commission determines 
should not remain effective under paragraph (1), the Commission shall 
refer that standard to the electric reliability organization for 
development of a new or modified standard under the organization's 
procedures as approved by the Commission.
    ``(3)(A) The electric reliability organization shall file with the 
Commission any new standard developed under paragraph (2) or a new 
standard or modification of a standard effective under paragraph (1) 
for review and approval. A new standard or modification does not take 
effect unless the Commission determines, after notice and opportunity 
for comment, that the standard or modification is just, reasonable, and 
not unduly discriminatory or preferential; is in the public interest; 
and provides for an adequate level of reliability of the bulk-power 
system, taking into account the purposes of this section to assure 
reliability of the bulk-power system and giving due weight to 
the technical competency of the registered electric reliability 
organization, and is consistent with any agreement entered into 
pursuant to subsection (f).
    ``(B) Any standard or modification that does not become effective 
under this paragraph shall be referred to the electric reliability 
organization for development of a new or modified standard under the 
organization's procedures as approved by the Commission.
    ``(C) The Commission, on its own motion, may require that the 
electric reliability organization develop a new or revised standard if 
the Commission considers a new or revised standard necessary or 
appropriate to further the purposes of this section. The organization 
shall file the new or revised standard in accordance with this 
paragraph.
    ``(D) On its own motion or at the request of the electric 
reliability organization, the Commission may develop and, consistent 
with any agreement under subsection (f), require immediate 
implementation by the organization of a new or modified standard if it 
determines that immediate implementation is required to avoid a 
significant disruption of reliability that would affect public safety 
or welfare. If immediate implementation is required, the Commission 
shall not delay implementation for notice and comment but shall publish 
the standard for notice and comment in a timely manner.
    ``(4) A user of the bulk power system shall comply with any new or 
modified standard that takes effect under paragraph (1) or (3).
    ``(f) Coordination With Canada and Mexico.--The United States may 
enter into international agreements with the governments of Canada and 
Mexico to provide for effective compliance with standards and to 
provide for the effectiveness of the electric reliability organization 
in carrying out its mission and responsibilities.
    ``(g) Changes in Organization Procedures, Governance, or Funding.--
(1) The electric reliability organization shall file with the 
Commission any proposed change in its procedures, governance, or 
funding and accompanying the filing with an explanation of the basis 
and purpose for the change.
    ``(2)(A) A proposed procedural change may take effect 90 days after 
filing with the Commission if the change--
            ``(i) constitutes a statement of policy, practice, or 
        interpretation with respect to the meaning, administration, or 
        enforcement of an existing procedure; or
            ``(ii) is concerned solely with administration of the 
        organization.
A proposed procedural change that does not qualify under clause (i) or 
(ii) takes effect only upon a finding by the Commission that the change 
is just, reasonable, not preferential, and in the public interest.
    ``(B) The Commission, by order, either upon complaint or upon its 
own motion, may suspend an existing procedure or procedural change if 
its determines the procedure or the proposed change is unjust, 
unreasonable, unduly discriminatory or preferential, or is otherwise 
not in the public interest.
    ``(3) A change in the organization's governance or funding does not 
take effect unless the Commission finds that the change is consistent 
with any agreement under subsection (f) and is just, reasonable, not 
unduly discriminatory or preferential, and in the public interest.
    ``(4) The Commission may require that the electric reliability 
organization amend its procedures, governance, or funding if the 
Commission considers the amendment necessary or appropriate to ensure 
the fair administration of the organization, conform the organization 
to the requirements of this section, or further the purposes of this 
section, consistent with any agreement entered into under subsection 
(f). The organization shall file the amendment in accordance with 
paragraph (1).
    ``(h) Organization Delegations of Authority.--(1) The organization 
may enter into an agreement under which it may delegate some or all of 
its authority to any person.
    ``(2) The organization shall file with the Commission any agreement 
entered into under this subsection and any information the Commission 
requires with respect to the person to whom authority is to be 
delegated. The Commission may approve the agreement, following public 
notice and an opportunity for comment, if it finds that the agreement 
is consistent with the requirements of this section. The agreement 
shall not take effect without Commission approval.
    ``(3)(A) The Commission may direct a modification to or suspend an 
agreement entered into under this subsection if it determines that--
            ``(i) the person to whom authority is delegated no longer 
        has the capacity to carry out effectively or efficiently the 
        person's implementation responsibilities under that agreement, 
        or
            ``(ii) the rules, practices, or procedures of the person to 
        whom authority is delegated no longer provide for fair and 
        impartial discharge of the person's implementation 
        responsibilities under the agreement.
    ``(B) If the agreement is suspended, the electric reliability 
organization shall assume the previously delegated responsibilities.
    ``(i) Organization Membership.--Every system operator shall be a 
member of the electric reliability organization. The organization rules 
shall provide for voluntary membership to other users of the bulk-power 
system and any interested customer class or public interest group. A 
person required to become a member of the organization who fails to do 
so is subject to sections 314 and 316A of this Act upon notification 
from the organization to the Commission.
    ``(j) Failure To Apply for Registration.--(1) If an organization 
fails to apply for registration with the Commission within six months 
after the issuance date of final Commission rules for such a filing, or 
the Commission does not register an agreement within twelve months 
after the issuance date of final Commission rules for such filing, the 
Commission shall convene a process to register an electric reliability 
organization.
    ``(2) Until an electric reliability organization is registered, the 
Commission has the same authority to enforce existing or modified 
standards that the electric reliability organization has under 
subsection (k).
    ``(k) Disciplinary Action and Penalties.--(1) Consistent with the 
range of actions approved by the Commission under subsection (d)(4)(F), 
the electric reliability organization may impose a penalty, take 
injunctive action, or impose other disciplinary action the organization 
finds appropriate against a user of the bulk-power system located in 
the United States if the organization finds, after notice and 
opportunity for a hearing, that the user has violated an organization 
procedure or standard.
    ``(2) An action taken under subparagraph (1) takes effect 30 days 
after the finding unless the Commission, on its own motion or upon 
application by the user of the bulk-power system who was the subject of 
the action, suspends the action. The action shall remain in effect or 
remain suspended until the Commission, after notice and opportunity for 
comment, sets aside, modifies, or reinstates the action.
    ``(3) The Commission, on its own motion, may impose a penalty, 
issue an injunction, or impose other disciplinary action the Commission 
finds appropriate against a user of the bulk power system located in 
the United States if the Commission finds, after notice and opportunity 
for a hearing, that the user has violated a procedure or standard of 
the electric reliability organization.
    ``(l) Adequacy, Reliability, and Reports.--The electric reliability 
organization shall conduct periodic assessments of the reliability and 
adequacy of the interconnected bulk-power system in North America and 
shall report annually to the Commission its findings and 
recommendations for monitoring or improving system reliability or 
adequacy.''.
    (b) Sections 316 and 316A of the FPA are amended by striking ``or 
214'' each place it appears and inserting ``214, or 218''.

SEC. 502. STATUTORY PRESUMPTION.

    (a) Federal Power Act.--Any reliability standard developed by the 
reliability organization, and any actions taken in good faith to comply 
with a reliability standard under section 218 of the FPA, are 
rebuttably presumed just and reasonable and not unduly discriminatory 
or preferential for purposes of that Act.
    (b) Antitrust Laws.--Notwithstanding section 703 of this Act, the 
following activities are rebuttably presumed to be in compliance with 
the antitrust laws of the United States:
            (1) activities undertaken by the electric reliability 
        organization under section 218 of the FPA or delegated person 
        operating under an agreement in effect under section 218(h) of 
        the FPA, and
            (2) activities of a member of the electric reliability 
        organization in pursuit of organization objectives under 
        section 218 of the FPA undertaken in good faith under the rules 
        of the organization.

                   TITLE VI--ENVIRONMENTAL PROTECTION

SEC. 601. NITROGEN OXIDES CAP AND TRADE PROGRAM.

    (a) Purpose.--The purpose of this section is to facilitate the 
implementation of a regional strategy for reducing ambient 
concentrations of ozone through regional reductions in emissions of 
NO<INF>X</INF>.
    (b) Definitions.--For purposes of this section--
            (1) the term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency,
            (2) the term ``NO<INF>X</INF>'' means oxides of nitrogen,
            (3) the term ``NO<INF>X</INF> allowance'' means an 
        authorization to emit a specified amount of NO<INF>X</INF> into 
        the atmosphere, and
            (4) the term ``NO<INF>X</INF> allowance cap and trade 
        program'' means a program under which, in accordance with 
        regulations issued by the Administrator, the Administrator 
        establishes the maximum number of NO<INF>X</INF> allowances 
        that may be allocated for specified control periods, allocates 
        or authorizes a State to allocate NO<INF>X</INF> allowances, 
        allows the transfer of NO<INF>X</INF> allowances for use in 
        States subject to such a program, requires monitoring and 
        reporting of NO<INF>X</INF> emissions that meet the 
        requirements of section 412 of the Clean Air Act, and 
        prohibits, and requires penalties and offsets for, any 
        emissions of NO<INF>X</INF> in excess of the number of 
        NO<INF>X</INF> allowances held.
    (c) Program Implementation.--(1) If the Administrator determines 
under section 110(a)(2)(D) of the Clean Air Act that any source or 
other type of emissions activity in a State emits NO<INF>X</INF> in 
amounts that will contribute significantly to nonattainment in, or 
interfere with maintenance by, any other State with respect to any 
national ambient air quality standard for ozone, the Administrator 
shall establish by regulation, within 12 months of the determination 
for primary standards and as expeditiously as practicable for secondary 
standards, and shall administer a NO<INF>X</INF> allowance cap and 
trade program in all States in which such a source or other type of 
emissions activity is located.
    (2) Any NO<INF>X</INF> allowance cap and trade program shall 
contribute to providing for emissions reductions that mitigate 
adequately the contribution or interference and shall be taken into 
account by the Administrator in determining compliance with section 
110(a)(2)(D) of the Clean Air Act.
    (3) For purposes of sections 113, 114, 304, and 307 of the Clean 
Air Act, regulations promulgated under this section shall be treated as 
regulations promulgated under title IV of the Clean Air Act (entitled 
Acid Deposition Control). A requirement of regulations promulgated 
under this section is considered an ``emission standard'' or ``emission 
limitation'' within the meaning of section 302 of the Clean Air Act and 
an ``emission standard or limitation under this Act'' within the 
meaning of section 304 of the Clean Air Act.

                 TITLE VII--OTHER REGULATORY PROVISIONS

SEC. 701. TREATMENT OF NUCLEAR DECOMMISSIONING COSTS IN BANKRUPTCY

    Section 523 of title 11, United States Code (section 523 of the 
Bankruptcy Code of 1978), is amended by adding the following new 
subsection after subsection (e):
    ``(f) Obligations to comply with, and claims resulting from 
compliance with, Nuclear Regulatory Commission regulations or orders 
governing the decontamination and decommissioning of nuclear power 
reactors licensed under section 103 or 104 b. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2133 and 2134(b)) shall be given priority and shall 
not be rejected, avoided, or discharged under title 11 of the United 
States Code or in any liquidation, reorganization, receivership, or 
other insolvency proceeding under State or Federal law.''.

SEC. 702. STUDY OF IMPACTS OF COMPETITION IN ELECTRICITY MARKETS BY THE 
              ENERGY INFORMATION ADMINISTRATION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 
7135) is amended by adding after subsection (l) the following new 
subsection:
    ``(m)(1) The Administrator shall collect and publish information 
regarding the impact of wholesale and retail competition on the 
electric power industry. The Administrator shall prescribe forms for 
collecting this information. Information to be collected may include, 
but is not limited to--
            ``(A) the ownership and control of electric generation, 
        transmission, distribution, and related facilities;
            ``(B) electricity consumption and demand;
            ``(C) the transmission, distribution, and delivery of 
        electric services;
            ``(D) the price of competitive electric services;
            ``(E) the costs, revenues, and rates of regulated electric 
        services;
            ``(F) the reliability of the electric generation and 
        transmission system, including the availability of adequate 
        generation and transmission capacity to meet load requirements, 
        generation and transmission capacity additions and retirements, 
        and fuel suppliers and stocks for electric generation;
            ``(G) electric energy efficiency programs and services and 
        their impacts on energy consumption;
            ``(H) the development and use of renewable electric energy 
        resources; and
            ``(I) research, development and demonstration activities to 
        improve the nation's electric system.
    ``(2) In carrying out the purposes of this subsection, the 
Administrator shall take into account reporting burdens and the 
protection of proprietary information as required by law.''.

SEC. 703. ANTITRUST SAVINGS CLAUSE.

    This Act and the amendments made by this Act shall not be construed 
to modify, impair, or supersede the operation of the antitrust laws. 
For purposes of this section, ``antitrust laws'' has the meaning given 
it in subsection (a) of the first section of the Clayton Act (15 U.S.C. 
12(a)), except that it includes section 5 of the Federal Trade 
Commission Act (15 U.S.C. 45), to the extent that section 5 applies to 
unfair methods of competition.

SEC. 704. ELIMINATION OF ANTITRUST REVIEW BY THE NUCLEAR REGULATORY 
              COMMISSION.

    Section 105 of the Atomic Energy Act of 1954 (42 U.S.C. 2135) is 
amended by adding the following after subsection c.:
    ``d. Subsection 105 c. does not apply to an application for a 
license to construct or operate a utilization or production facility 
under sections 103 or 104 b. following the date of enactment of this 
subsection. This Act does not affect the Commission's authority to 
enforce antitrust conditions included in licenses issued under sections 
103 or 104 b. before the date of enactment of this subsection.

SEC. 705. ENVIRONMENTAL LAWS SAVINGS CLAUSE.

    Nothing in this Act alters or affects environmental requirements 
imposed by Federal or State law, including, but not limited to, the 
Clean Air Act (42 U.S.C. 7401 et seq.); the Federal Water Pollution 
Control Act (33 U.S.C. 1251 et seq.); the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
seq.); the Federal Power Act (16 U.S.C. 791a et seq.); and the 
Endangered Species Act (16 U.S.C. 1531 et seq.).
                                 <all>