[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2569 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2569

To enhance the benefits of the national electric system by encouraging 
 and supporting State programs for renewable energy sources, universal 
electric service, affordable electric service, and energy conservation 
                and efficiency, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 1999

 Mr. Pallone introduced the following bill; which was referred to the 
                         Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
To enhance the benefits of the national electric system by encouraging 
 and supporting State programs for renewable energy sources, universal 
electric service, affordable electric service, and energy conservation 
                and efficiency, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fair Energy 
Competition Act of 1999''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Allowance program for certain air pollutants.
Sec. 5. National Electric System Public Benefits Board.
Sec. 6. National Electric System Public Benefits Fund.
Sec. 7. Renewable energy portfolio standards.
Sec. 8. Net metering.
Sec. 9. Disclosure requirements.
Sec. 10. State and local law.
Sec. 11. PURPA repeal.
Sec. 12. Illegal changes in retail customer selections.
Sec. 13. Privacy of consumer proprietary information.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) Restructuring the electricity industry is intended to 
        promote competition among electricity providers, resulting in 
        lower electricity rates to consumers, higher quality services, 
        and a more robust national economy.
            (2) Emissions from electric power generating facilities are 
        today the largest industrial source responsible for persistent 
        public health and environmental problems.
            (3) The generation of electricity is unique in its combined 
        influence on the Nation's security, environmental quality, and 
        economic efficiency.
            (4) The generation and sale of electricity has a direct and 
        profound impact on interstate commerce.
            (5) The Federal Government and the States have a joint 
        responsibility for the maintenance of public purpose programs 
        affected by the national electric system.
            (6) Notwithstanding the public's interest in and enthusiasm 
        for programs that enhance the environment, encourage the 
        efficient use of resources, and provide for affordable and 
        universal service, the investments in those public purposes by 
        existing means continues to decline.
            (7) The full benefits of competition will not be realized 
        if some competitors enjoy an advantage resulting from 
        externalizing environmental and other costs associated with air 
        emissions produced by their electric generating facilities, 
        permitting them to charge prices for electricity that do not 
        reflect the full economic and environmental costs of 
        production.
            (8) Emission control requirements on electric generating 
        units are substantially different depending on their age and 
        location, allowing older generating units to emit pollutants at 
        excessive rates. Older generating units have been exempt from 
        emissions limitations applicable to new units based on the 
        expectation that, over time, these older units would be 
        retired. However, such units continue to operate and emit at 
        high rates.
            (9) Consumers have a right to certain information in order 
        to make objective choices on their electric service providers.
            (10) The availability in a competitive market of products 
        produced by renewable resources and sources that minimize 
        emissions of harmful air pollutants could produce meaningful 
        envionmental, economic and public health benefits.
            (11) Net metering of small systems for self-generation of 
        electricity is in the public interest in order to encourage 
        private investment in renewable energy resources, stimulate 
        economic growth, and enhance the continued diversification of 
        the energy resources used in the United States.
    (b) Purposes.--The purposes of this Act are to--
            (1) ensure an economically efficient market in electricity, 
        in order to assure lower electricity rates to consumers, higher 
        quality services, and a more robust national economy;
            (2) assure fair competition among participants in the free 
        market in electric power that will result from restructuring 
        the electric industry;
            (3) internalize and protect the values of public health, 
        air, land, and water quality in the context of a competitive 
        market in electricity;
            (4) encourage energy conservation and efficiency and 
        promote the use of renewable energy resources.
            (5) provide consumers with pertinent information about the 
        price, source, and air quality impact of electric energy 
        products;
            (6) establish clear and uniform rules and procedures for 
        disclosing electric energy product information to customers; 
        and
            (7) protect consumers against fair or fraudulent business 
        practices.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Board.--The term ``Board'' means the National Electric 
        System Public Benefits Board established under section 5.
            (3) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (4) Cogeneration.--The term ``cogeneration'' means a 
        process of simultaneously generating electricity and thermal 
        energy in which a portion of the energy value of fuel consumed 
        is recovered as heat that is used to meet heating or cooling 
        loads outside the generation facility.
            (5) Covered electric generation facility.--The term 
        ``covered electric generation facility'' means an electric 
        generation facility (other than a nuclear facility) with a 
        nameplate capacity of 15 megawatts or greater that uses a 
        combustion device to generate electricity for sale.
            (6) Fund.--The term ``Fund'' means the National Electric 
        System Public Benefits Fund established by section 6.
            (7) Renewable energy.--The term ``renewable energy'' means 
        electricity generated from wind, organic waste (excluding 
        incinerated municipal solid waste), or biomass (including 
        anaerobic digestion from farm systems and landfill gas 
        recovery) or a geothermal, solar thermal, or photovoltaic 
        source. For purposes of this paragraph, a farm system is an 
        electric generating facility that generates electric energy 
        from the anaerobic digestion of agricultural waste produced by 
        farming that is located on the farm where substantially all of 
        the waste used is produced.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 4. ALLOWANCE PROGRAM FOR CERTAIN AIR POLLUTANTS.

    (a) In General.--Part III of the Federal Power Act is amended by 
redesignating sections 320 and 321 as sections 323 and 324 respectively 
and by inserting the following new sections after section 319:

``SEC. 320. GENERATION PERFORMANCE STANDARDS AND TONNAGE CAPS.

    ``(a) Oxides of Nitrogen.--
            ``(1) Generation performance standard.--For each covered 
        period, the Commission shall calculate a generation performance 
        standard for oxides of nitrogen from covered electric 
        generating units in the applicable region. The standard shall 
        be equal to the statutory tonnage cap for the covered period, 
        as set forth in paragraph (2), divided by the Commission's 
        estimate (under section 322(a)) of total electric generation 
        from such units in the applicable region. The Commission shall 
        publish such standard (expressed in pounds per megawatt hour) 
        at least 30 days prior to the beginning of the covered period 
        concerned.
            ``(2) Statutory tonnage cap.--The statutory tonnage cap 
        (expressed in millions of tons) for emissions of oxides of 
        nitrogen from covered electric generating units in the 
        applicable region for each covered period shall be as follows:
      

------------------------------------------------------------------------
                                                       Statutory tonnage
       Covered periods              Applicable region     cap (million
                                                             tons)
------------------------------------------------------------------------
  May 1-September 30, 2003........  22 Eastern States         0.54
  May 1-September 30, 2004........  22 Eastern States         0.54
  Jan. 1-December 31, 2005 and        Continental US          1.66
   each year thereafter...........
------------------------------------------------------------------------

            ``(3) Ozone episodes.--During each period coinciding with 
        exceedances of the National Ambient Air Quality Standard for 
        ozone, promulgated by the Administrator of the Environmental 
        Protection Agency under the Clean Air Act (and during the 8 
        hours preceding such exceedances), each covered unit with an 
        actual emission rate greater than the generation performance 
        standard shall be required to adjust its reported actual 
        emissions under section 321(b) by a factor of up to 3, 
        depending on the unit's distance from the exceedance. Units 
        affected by this subsection may meet their obligations under 
        section 321 either by emissions reductions at the affected 
        unit, or by surrendering allowances equal to the difference 
        between actual emissions and the emission limitation provided 
        in this subsection.
    ``(b) Fine Particulate Matter.--
            ``(1) Generation performance standard.--In order to reduce 
        concentrations of sulfate fine particulate matter, for each 
        calendar year in a covered period, the Commission shall 
        calculate a generation performance standard for sulfur oxides 
        from covered electric generating units. The standard shall be 
        equal to the statutory tonnage cap for the covered calendar 
        year, as set forth in paragraph (2), divided by the 
        Commission's estimate (under section 322(a)) of total electric 
        generation from such units in the applicable region. The 
        Commission shall publish such standard (expressed in pounds per 
        megawatt hour) at least 30 days prior to the beginning of the 
        covered year concerned.
            ``(2) Statutory tonnage cap.--The statutory tonnage cap 
        (expressed in millions of tons) for fine particulate matter as 
        measured by emissions of sulfur oxides from covered electric 
        generating units in the continental United States for a covered 
        period shall be as follows:
      

------------------------------------------------------------------------
                                                       Statutory tonnage
                         Covered period                   cap (million
                                                             tons)
------------------------------------------------------------------------
  2004 and thereafter................................         4.0
------------------------------------------------------------------------

    ``(c) Carbon Dioxide.--
            ``(1) Generation performance standard.--In order to reduce 
        concentrations of carbon dioxide, for each covered calendar 
        year, the Commission shall calculate a generation performance 
        standard for carbon dioxide from covered electric generating 
        units. The standard shall be equal to the statutory tonnage cap 
for the covered period, as set forth in paragraph (2) divided by the 
Commission's estimate (under section 322(a)) of total electric 
generation from such units in the applicable region. The Commission 
shall publish such standard (expressed in pounds per megawatt hour) at 
least 30 days prior to the beginning of the covered period concerned.
            ``(2) Statutory tonnage cap.--The statutory tonnage cap for 
        carbon dioxide shall be 1.914 billion tons for the calendar 
        year 2005 and each calendar year thereafter.
    ``(d) Mercury Emission Reductions.--In order to reduce 
concentrations of mercury, for each covered calendar year, the 
Commission shall determine the emission levels for mercury from covered 
electric generating units during calendar year 1990 and promulgate 
regulations requiring phased reductions from such level during calendar 
years 2000 through 2004 such that by calendar year 2005 (and 
thereafter) no such unit will emit more than 50 percent of the amount 
of mercury emitted by that unit during calendar year 1990, and by 
calendar year 2010 (and thereafter) no such unit will emit more than 10 
percent of the amount of mercury emitted by that unit during calendar 
year 1990, with periodic review and study of technical and cost 
feasibility, based on progress in improving mercury control technology 
and the ability of energy efficiency and alternative energy sources to 
assist in meeting the 90 percent reduction target.

``SEC. 321. ALLOCATION AND TRADING OF ALLOWANCES; COMPLIANCE.

    ``(a) Allocation and Trading of Allowances.--
            ``(1) In general.--For each covered period, the Commission 
        shall allocate allowances for each pollutant for which a 
        tonnage cap has been established pursuant to section 320, among 
        covered units in the applicable region by multiplying the 
        generation performance standard for that covered period for 
        each such air pollutant by such unit's electric generation 
        during the covered period.
            ``(2) Energy conservation.--The Commission shall also 
        allocate allowances for such air pollutants to each person in 
        the applicable region who demonstrates to the Commission (in 
        accordance with the measurement and verification protocol 
        specified in paragraph (4)) that such person has achieved a 
        reduction in gross electric energy demand during a covered 
        period, as certified by an independent body approved by the 
        Commission. The allowances allocated to any such person shall 
        be determined by multiplying the generation performance 
        standard for the air pollutant concerned for the covered period 
        by such reduction in electric energy demand. Only one person 
        may apply for allowances for any particular energy conservation 
        action.
            ``(3) Carryover and trading of allowances.--Allowances 
        allocated to any person for any air pollutant for any covered 
        period that are not used to demonstrate compliance with 
        subsection (b) for that pollutant during any covered period may 
        be retained and used to demonstrate compliance with such 
        requirements by any person in a subsequent covered period. Such 
        allowances may be transferred by the person to whom allocated 
        to any other person. Any person to whom such allowances have 
        been transferred may use the allowances in the covered period 
        or in a subsequent covered period to demonstrate compliance 
        with subsection (b) or may transfer such allowances to any 
        other person for such purposes.
            ``(4) Measurement and verification protocol.--The 
        Environmental Protection Agency, in consultation with the 
        Department of Energy, shall develop a measurement and 
        verification protocol that provides for a reliable measure of 
        energy savings and that provides the necessary format for 
        converting measured and verified energy savings into a reliable 
        measure of reductions in power generation related emissions of 
        air pollutants as specified in subsection (a)(1). Such 
        measurement and verification protocol may be derived from or 
        based on the International Measurement and Verification 
        Protocol or the New Jersey Measurement and Verification 
        Protocol, as appropriate.
    ``(b) Compliance With Allowance Limits.--For each covered period, 
the owner or operator of each covered unit in the applicable region 
shall surrender to the Commission a number of allowances for oxides of 
nitrogen, sulfur oxides, and the pollutants for which a statutory 
tonnage cap has been established pursuant to section 320, equal to the 
total tonnage of each such air pollutant emitted during the covered 
period. Emissions shall be determined based on continuous monitoring 
approved by the Administrator. The Administrator may permit the average 
rate of emissions from a covered unit over any covered period to exceed 
the generation performance standard if the generating plant has a 
sufficient quantity of emissions credits.
    ``(c) Excess Emissions.--The owner or operator of any covered unit 
that emits any pollutant for which a statutory tonnage cap has been 
established pursuant to section 320, for a covered period in any 
calendar year in excess of the allowances for such air pollutant that 
the owner or operator holds for use for the unit for the covered period 
shall be liable for the payment of an excess emissions penalty, and 
shall be liable to offset the excess emissions by an equal tonnage 
amount of such air pollutant in the following covered period or such 
other period as the Commission shall prescribe. The excess emissions 
penalty shall be calculated on the basis of the number of tons emitted 
in excess of the total number of allowances held, multiplied by the 
applicable penalty baseline, indexed by inflation under rules 
promulgated by the Commission. The penalty baseline shall be $5,000 per 
ton for oxides of nitrogen and sulfur oxides, and $100 per ton for 
carbon dioxide. The Commission shall, by rule in consultation with the 
Administrator, establish penalties of equal effectiveness for other 
pollutants for which a statutory tonnage cap has been established 
pursuant to section 320. In the case of mercury, the owner or operator 
of any covered unit that emits mercury in excess of the emissions limit 
established for that unit under section 320(d) shall be liable for an 
excess emissions penalty in the amount of $2,500 for each ton emitted 
in excess of the limit established under section 320(d). Any such 
penalty shall be due and payable without demand to the Commission. 
Excess emissions penalties and offsets shall be determined and 
administered in accordance with regulations to be promulgated by the 
Commission within 6 months after the enactment of this section.

``SEC. 322. GENERAL PROVISIONS RELATING TO SECTIONS 320 THROUGH 321.

    ``(a) Estimate of Electric Generation.--For each covered period, 
the Commission shall publish the Commission's estimate of the total 
electric generation by covered electric generating units in the 
applicable region. Such estimate shall be computed based on total 
electric energy generation from all covered units during the current 
year or covered period plus the projected growth (as determined by the 
Secretary of Energy) in electric energy generation and expected 
verifiable electric energy conservation for the covered period. The 
Commission shall publish such estimate at least 30 days prior to the 
beginning of the applicable period for which the estimate is made.
    ``(b) Transfer.--If the President finds that any functions and 
duties vested in the Commission under sections 320 or 321 or any 
combination thereof can be more efficiently carried out by another 
department, agency, or instrumentality of the United States, the 
President shall transfer such functions and duties in accordance with 
such finding. In any such case, such other department, agency, or 
instrumentality shall be substituted for the Commission for purposes of 
suits under subsection (c).
    ``(c) Citizen Suit.--Except as provided in paragraph (4) of this 
subsection, any person may commence a civil action on his own behalf--
            ``(1) against any person (including (i) the United States, 
        and (ii) any other governmental instrumentality or agency to 
        the extent permitted by the Eleventh Amendment to the 
        Constitution) who is alleged to have violated (if there is 
        evidence that the alleged violation has been repeated) or to be 
        in violation of (A) any requirement of section 320 or 321 or 
        (B) an order issued by the Commission or a State with respect 
        to such requirements, and
            ``(2) against the Commission where there is alleged a 
        failure of the Commission to perform any act or duty under 
        section 320, 321, or 322 which is not discretionary with the 
        Commission.
The district courts shall have jurisdiction, without regard to the 
amount in controversy or the citizenship of the parties, to enforce 
compliance with the requirements of sections 320 and 321 or to order 
the Commission to perform such act or duty, as the case may be, and to 
apply any appropriate civil penalties (except for actions under 
paragraph (2)). The district courts of the United States shall have 
jurisdiction to compel (consistent with paragraph (2) of this 
subsection) agency action unreasonably delayed. In any such action for 
unreasonable delay, notice to the Commission shall be provided 180 days 
before commencing such action.
            ``(3) No action may be commenced--
                    ``(A) under paragraph (1)--
                            ``(i) prior to 60 days after the plaintiff 
                        has given notice of the violation (I) to the 
                        Commission, (II) to the State in which the 
                        violation occurs, and (III) to any alleged 
                        violator of the standard, limitation, or order, 
                        or
                            ``(ii) if the Commission or State has 
                        commenced and is diligently prosecuting a civil 
                        action in a court of the United States or a 
                        State to require compliance with the standard, 
                        limitation, or order, but in any such action in 
                        a court of the United States any person may 
                        intervene as a matter of right.
                    ``(B) under paragraph (2) prior to 60 days after 
                the plaintiff has given notice of such action to the 
                Commission.
            ``(4) The court in issuing any final order in any action 
        brought pursuant to paragraph (1), may award costs of 
        litigation (including reasonable attorney and expert witness 
        fees) to any party, whenever the court determines such award is 
        appropriate.''.
    (b) Definitions.--Section 3 of the Federal Power Act is amended by 
adding the following after paragraph (24):
            ``(25) For oxides of nitrogen, the terms `applicable 
        region' and `covered period' refer to the applicable regions 
        and each of the covered periods specified in the chart in 
        section 320(a)(2). For fine particulate matter and any other 
        pollutant for which a tonnage cap has been established pursuant 
        to section 320, the term `applicable region' means the 
        continental United States. For fine particulate matter, the 
        term `covered period' means each of the periods specified as 
        covered periods in the chart in section 320(b)(2).
            ``(26) The term `covered electric generating unit' means an 
        electric generating unit in the applicable region with a 
        nameplate capacity of 15 MWe or greater.''.

SEC. 5. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS BOARD.

    (a) Establishment.--The Secretary shall establish a National 
Electric System Public Benefits Board to carry out the functions and 
responsibilities described in this section.
    (b) Membership.--The Board shall be composed of--
            (1) 1 representative of the Commission appointed by the 
        Commission;
            (2) 2 representatives of the Secretary appointed by the 
        Secretary;
            (3) 2 persons nominated by the national organization 
        representing State regulatory commissioners and appointed by 
        the Secretary;
            (4) 1 person nominated by the national organization 
        representing State utility consumer advocates and appointed by 
        the Secretary;
            (5) 1 person nominated by the national organization 
        representing State energy offices and appointed by the 
        Secretary;
            (6) 1 person nominated by the national organization 
        representing energy assistance directors and appointed by the 
        Secretary; and
            (7) 1 representative of the Environmental Protection Agency 
        appointed by the Administrator.
    (c) Chairperson.--The Secretary shall select a member of the Board 
to serve as Chairperson of the Board.
    (d) Manager.--
            (1) Appointment.--The Board shall by contract appoint an 
        electric systems public benefits manager for a term of not more 
        than 3 years, which term may be renewed by the Board.
            (2) Compensation.--The compensation and other terms and 
        conditions of employment of the manager shall be determined by 
        a contract between the Board and the individual or the other 
        entity appointed as manager.
            (3) Functions.--The manager shall--
                    (A) monitor the amounts in the Fund;
                    (B) receive, review, and make recommendations to 
                the Board regarding applications from States under 
                section 6(b); and
                    (C) perform such other functions as the Board may 
                require to assist the Board in carrying out its duties 
                under this Act.

SEC. 6. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS FUND.

    (a) Establishment.--
            (1) In general.--The Board shall establish an account or 
        accounts at one or more financial institutions, which account 
        or accounts shall be known as the ``National Electric System 
        Public Benefits Fund'', consisting of amounts deposited in the 
        fund under subsection (c).
            (2) Status of fund.--The wires charges collected under 
        subsection (c) and deposited in the Fund--
                    (A) shall constitute electric system revenues and 
                shall not constitute funds of the United States;
                    (B) shall be held in trust by the manager of the 
                Fund solely for the purposes stated in subsection (b); 
                and
                    (C) shall not be available to meet any obligations 
                of the United States.
    (b) Use of Fund.--
            (1) Funding of public purpose programs.--Amounts in the 
        Fund shall be used by the Board to provide matching funds to 
        States for the support of State public purpose programs 
        relating to--
                    (A) renewable energy sources;
                    (B) universal electric service;
                    (C) affordable electric service;
                    (D) energy conservation and efficiency;
                    (E) research and development in areas described in 
                subparagraphs (A) through (D), or
                    (F) disconnections during periods of extreme cold 
                or heat.
            (2) Distribution.--
                    (A) In general.--Except for amounts needed to pay 
                costs of the Board in carrying out its duties under 
                this section, the Board shall instruct the manager of 
                the Fund to distribute all amounts in the Fund to 
                States to fund public purpose programs under paragraph 
                (1).
                    (B) Fund share.--
                            (i) In general.--Subject to clause (iii), 
                        the Fund share of a public purpose program 
                        funded under paragraph (1) shall be 50 percent.
                            (ii) Proportionate reduction.--To the 
                        extent that the amount of matching funds 
                        requested by States exceeds the maximum 
                        projected revenues of the Fund, the matching 
                        funds distributed to the States shall be 
                        reduced by an amount that is proportionate to 
                        each State's annual consumption of electricity 
                        compared to the Nation's aggregate annual 
                        consumption of electricity.
                            (iii) Additional state funding.--A State 
                        may apply funds to public purpose programs in 
                        addition to the amount of funds applied for the 
                        purpose of matching the Fund share.
            (3) Program criteria.--The Board shall recommend 
        eligibility criteria for public benefits programs funded under 
        this section for approval by the Secretary.
            (4) Application.--Not later than August 1 of each year 
        beginning in 2000, a State seeking matching funds for the 
        following year shall file with the Board, in such form as the 
        Board may require, an application--
                    (A) certifying that the funds will be used for an 
                eligible public purpose program; and
                    (B) stating the amount of State funds earmarked for 
                the program.
    (c) Wires Charge.--
            (1) Determination of needed funding.--Not later than August 
        1 of each year, the Board shall determine and inform the 
        Commission of the aggregate amount of wires charges that will 
        be necessary to be paid into the Fund to pay matching funds to 
        States and pay the operating costs of the Board in the 
        following year.
            (2) Imposition of wires charge.--
                    (A) In general.--Not later than December 15 of each 
                year, the Commission shall impose a nonbypassable, 
                competitively neutral wires charge to be paid directly 
                into the Fund by the operator of the wire on 
                electricity carried through the wire (measured as it 
                exits the busbar at a generation facility) that affects 
                interstate commerce.
                    (B) Amount.--The wires charge shall be set at a 
                rate equal to the lesser of--
                            (i) 2.0 mills per kilowatt-hour; or
                            (ii) a rate that is estimated to result in 
                        the collection of an amount of wires charges 
                        that is as nearly as possible equal to the 
                        amount of needed funding determined under 
                        paragraph (1),
        reduced by 50 percent of the amount of any wire charge imposed 
        on such electricity under State law that is used by a State for 
        State public purpose program described in subsection (b)(1).
            (3) Deposit in the fund.--The wires charge shall be paid by 
        the operator of the wire directly into the Fund at the end of 
        each month during the calendar year for distribution by the 
        electric systems public benefits manager under section 5.
            (4) Penalties.--The Commission may assess against a wire 
        operator that fails to pay a wires charge as required by this 
        subsection a civil penalty in an amount equal to not more than 
        the amount of the unpaid wires charge.
    (d) Auditing.--
            (1) In general.--The Fund shall be audited annually by a 
        firm of independent certified public accountants in accordance 
        with generally accepted auditing standards.
            (2) Access to records.--Representatives of the Secretary 
        and the Commission shall have access to all books, accounts, 
        reports, files, and other records pertaining to the Fund as 
        necessary to facilitate and verify the audit.
            (3) Reports.--
                    (A) In general.--A report on each audit shall be 
                submitted to the Secretary, the Commission, and the 
                Secretary of the Treasury, who shall submit the report 
                to the President and Congress not later than 180 days 
                after the close of the fiscal year.
                    (B) Requirements.--An audit report shall--
                            (i) set forth the scope of the audit; and
                            (ii) include--
                                    (I) a statement of assets and 
                                liabilities, capital; and surplus or 
                                deficit;
                                    (II) a statement of surplus or 
                                deficit analysis;
                                    (III) a statement of income and 
                                expenses;
                                    (IV) any other information that may 
                                be considered necessary to keep the 
                                President and Congress informed of the 
                                operations and financial condition of 
                                the Fund; and
                                    (V) any recommendations with 
                                respect to the Fund that the Secretary 
                                or the Commission may have.

SEC. 7. RENEWABLE ENERGY PORTFOLIO STANDARDS.

    (a) Definition of Generation Facility.--In this section, the term 
``covered electric generation facility'' means a nonhydroelectric 
facility that generates electric energy for sale.
    (b) Required Renewable Energy.--Of the total amount of electricity 
sold by covered electric generation facilities during a calendar year, 
the amount generated by emerging renewable energy sources shall be not 
less than--
            (1) 2.5 percent in 2000;
            (2) 2.75 percent in 2001;
            (3) 3 percent in 2002;
            (4) 3.25 percent in 2003;
            (5) 3.5 percent in 2004;
            (6) 4.0 percent in 2005;
            (7) 4.5 percent in 2006;
            (8) 5 percent in 2007;
            (9) 5.5 percent in 2008;
            (10) 6.5 percent in 2009; and
            (11) 7.5 percent in 2010 and each year thereafter.
    (c) Renewable Energy Credits.--
            (1) Identification of energy sources.--The Commission shall 
        establish standards and procedures under which a covered 
        electric generation facility shall certify to a purchaser of 
        electricity--
                    (A) the amount of the electricity that is generated 
                by a renewable energy source; and
                    (B) the amount of the electricity that is generated 
                by a source other than a renewable energy source.
            (2) Issuance of renewable energy credits.--Not later than 
        April 1 of each year, beginning in the year 2001, the 
        Commission shall issue to a covered electric generation 
        facility 1 renewable energy credit for each megawatt-hour of 
        electricity sold by the covered electric generation facility in 
        the preceding calendar year that was generated by a renewable 
        source.
            (3) Submission of renewable energy credits.--Not later than 
        July 1 of each year, a covered electric generation facility 
        shall submit credits to the Commission in an amount equal to 
        the total number of megawatt-hours of electricity sold by the 
        covered electric generation facility in the preceding year 
        multiplied by the applicable renewable energy source 
        requirement under subsection (a).
            (4) Use of renewable energy credits.--
                    (A) Time for use.--A renewable energy credit shall 
                be used for the calendar year for the renewable energy 
                credit is issued.
                    (B) Permitted uses.--Until July 1 of the year in 
                which a renewable energy credit was issued, a covered 
                electric generation facility may--
                            (i) use the renewable energy credit to make 
                        a submission to the Commission under paragraph 
                        (3); or
                            (ii) on notice to the Commission, sell or 
                        otherwise transfer a renewable energy credit to 
                        another covered electric generation facility.
    (d) Recordkeeping.--The Commission shall maintain records of all 
renewable energy credits issued and all credits sold or exchanged.
    (e) Renewable Energy Credit Cost Cap.--Beginning with the year 
2000, the Commission shall offer renewable energy credits for sale. The 
Commission shall charge 2.5 cents for each Renewable Energy Credit sold 
during calendar year 2000. On January 1 of each following year, the 
Commission shall adjust for inflation, based on the Consumer Price 
Index, the price charged per credit for that calendar year. The 
Commission shall deposit in a separate account the amount received from 
a sale under this subsection. Amounts in the separate account shall be 
available, without further appropriation, to the Secretary of Energy to 
be used for purposes of providing assistance for research and 
development of cleaner burning fuels and renewable energy.
    (f) Penalties.--The Commission may bring an action in United States 
district court to impose a civil penalty on any person that fails to 
comply with subsection (a). A person that fails to comply with a 
requirement to submit renewable energy credits under subsection (b)(3) 
shall be subject to a civil penalty of not more than 3 times the 
estimated national average market value (as determined by the 
Commission) for the calendar year concerned of that quantity of 
renewable energy credits.
    (g) Powers.--The Commission may promulgate such regulations, 
conduct such investigations, and take such other actions as are 
necessary or appropriate to implement and obtain compliance with this 
section and regulations promulgated under this section.

SEC. 8. NET METERING.

    (a) Amendment of PURPA.--The Public Utility Regulatory Polices Act 
of 1978 is amended by adding the following new section after section 
214:

``SEC. 215. NET METERING.

    ``(a) Definitions.--For purposes of this section--
            ``(1) The term `eligible on-site generating facility' means 
        a facility on the site of a residential electric consumer with 
        a maximum generating capacity of 100 kilowatts or less that is 
        fueled by solar or wind energy or a facility on the site of a 
        commercial electric consumer with a maximum generating capacity 
        of 250 kilowatts or less that is fueled solely by a renewable 
        energy resource.
            ``(2) The term `renewable energy resource' means solar 
        energy, wind energy, biomass, and fuel cells.
            ``(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 any calendar year.
    ``(b) Requirement To Provide Net Metering Service.--Each retail 
electric supplier shall make available upon request net metering 
service to any retail electric consumer that the supplier currently 
serves or solicits for service.
    ``(c) Rates and Charges.--
            ``(1) Identical charges.--A retail electric supplier--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other retail 
                electric customers of the electric company in the same 
                rate class; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(2) Measurement.--A retail electric supplier that 
        supplies electricity to the owner or operator of an on-site 
        generating facility shall measure the quantity of electricity 
        produced by the on-site facility and the quantity of 
        electricity consumed by the owner or operator of an on-site 
        generating facility during a billing period in accordance with 
        normal metering practices.
            ``(3) Electricity supplied exceeding electricity 
        generated.--If the quantity of electricity supplied by a retail 
        electric supplier during a billing period exceeds the quantity 
        of electricity generated by an on-site generating facility and 
        fed back to the electric distribution system during the billing 
        period, the supplier may bill the owner or operator for the net 
        quantity of electricity supplied by the retail electric 
        supplier, in accordance with normal metering practices.
            ``(4) Electricity generated exceeding electricity 
        supplied.--If the quantity of electricity generated by an on-
        site generating facility during a billing period exceeds the 
        quantity of electricity supplied by the retail electric 
        supplier during the billing period--
                    ``(A) the retail electric supplier may bill the 
                owner or operator of the on-site generating facility 
                for the appropriate charges for the billing period in 
                accordance with paragraph (2); and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period, 
                with the kilowatt-hour credit appearing on the bill for 
                the following billing period.
            ``(5) Unused credits.--At the beginning of each calendar 
        year, any unused kilowatt-hour credits accumulated by an owner 
        or operator of an on-site generating facility during the 
        previous calendar year shall expire without compensation to the 
        owner or operator of an on-site generating facility.
    ``(d) Safety and Performance Standards.--(1) An eligible on-site 
generating facility and net metering system used by a retail electric 
consumer shall meet all applicable safety, performance, reliability, 
and interconnection standards established by the National Electrical 
Code, the Institute of Electrical and Electronics Engineers, and 
Underwriters Laboratories.
    ``(2) The Commission, after consultation with State regulatory 
authorities and nonregulated local distribution systems and after 
notice and opportunity for comment, may adopt, by rule, additional 
control and testing requirements for on-site generating facilities and 
net metering systems that the Commission determines are necessary to 
protect public safety and system reliability.
    ``(e) Interconnection Standards.--(1) The Commission shall 
promulgate regulations requiring that the owners or operators of 
eligible on-site generating facilities and net metering systems comply 
with uniform national standards, consistent with this section, for the 
physical connection between such facilities and systems and local 
distribution systems. At the election of the owner or operator of the 
generation facility concerned connections meeting such standards may be 
made--
            ``(A) by such owner or operator at such owner's or 
        operator's expense, or
            ``(B) by the owner or operator of the local distribution 
        system upon the request of the owner or operator of the 
        generating facility and pursuant to an offer by the owner or 
        operator of the generating facility to reimburse the local 
        distribution system in an amount equal to the minimum cost of 
        such connection, consistent with the procurement procedures of 
        the State in which the facility is located.
Such standards shall be consistent with all applicable safety and 
performance standards established by the national electrical code, the 
Institute of Electrical and Electronics Engineers, or Underwriters 
Laboratories and with such additional safety and reliability standards 
as the Commission shall, by rule, prescribe.
    ``(2) The regulations under this section shall establish such 
measures for the safety and reliability of the affected equipment and 
local distribution systems as may be appropriate.
    ``(f) State Authority.--This section does not preclude a State from 
imposing additional requirements consistent with the requirements in 
this section, including the imposition of a cap limiting the amount of 
net metering available in the State. Nothing in this Act or any other 
Federal law preempts or otherwise affects authority under State law to 
require a retail electric supplier to make available net metering 
service to a retail electric consumer which the supplier serves or 
offers to serve.''.
    (c) Table of Contents.--The table of contents for title II of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and 
following) is amended by adding the following at the end thereof:

        ``Sec. 215. Net metering.''.

SEC. 9. DISCLOSURE REQUIREMENTS.

    Title II of the Public Utility Regulatory Policies Act of 1978 is 
amended by adding the following new section at the end thereof:

``SEC. 214. DISCLOSURE REQUIREMENTS.

    ``(a) Definitions.--In this section:
            ``(1) Emissions data.--The term `emissions data' means the 
        type and amount of each pollutant emitted by a generation 
        facility in generating electricity.
            ``(2) Generation data.--The term `generation data' means 
        the type of fuel (such as coal, oil, nuclear energy, or solar 
        power) used by a generation facility to generate electricity.
    ``(b) Disclosure System.--Not later than January 1, 2001, the 
Secretary, in consultation with the Commission, the Federal Trade 
Commission, the Administrator of the Environmental Protection Agency, 
the Administrator of the Food and Drug Administration, and the 
Administrator of the Energy Information Administration shall prescribe 
a rule establishing a system of disclosure that--
            ``(1) enables retail consumers to knowledgeably compare, 
        prior to purchase, retail electric service offerings, including 
        comparisons based on generation source portfolios, emissions 
        data, and price terms; and
            ``(2) considers such factors as--
                    ``(A) cost of implementation;
                    ``(B) confidentiality of information; and
                    ``(C) flexibility.
The rule under this section shall set forth the form, content, timing, 
and frequency of the disclosure required. Such rule shall also require 
such disclosures in connection with wholesale sales of electric energy, 
and such systems of tracking sales of electric energy, as may be 
necessary to carry out the requirements of this section.
    ``(c) Regulation.--In accordance with the system established under 
subsection (b), each person selling electric energy shall disclose to 
its customers emissions and generation data for the electric energy 
sold and information about whether the service is firm or 
interruptible. When a seller has obtained electricity from more than 1 
source that comprises 2 percent or more of the seller's energy 
portfolio, the disclosure shall include the percentage (accurate to 
within 1 percent) breakdown of the various sources of generation relied 
upon by the seller. When a seller has obtained electricity from a power 
pool, this fact shall be disclosed, and the seller shall disclose the 
generic categories (with percentages where applicable) of power 
dispatched by the pool during the previous billing cycle.
    ``(d) Timeliness of Disclosure.--Each electric utility shall 
include the disclosures required under this section in all written 
communications describing an energy product sent directly to consumers, 
including written offers and direct mail advertisements, and in 
materials appearing at internet sites. Each electric utility shall 
ensure that the required disclosures are sent directly to a consumer 
(1) prior to the consumer's acceptance of an offer of an energy 
product, or (2) in a post-sale mailing that begins a period during 
which the consumer may withdraw that acceptance. On a quarterly basis, 
such utility shall include the disclosures required under subsection 
(c) in each of its customer's bills or in a separate mailing.
    ``(e) Format of Disclosure.--In promulgating the rules required 
under this section, the Secretary shall develop standard formats for 
disclosure of energy product information required under this section. 
Such formats shall include a graphic representation of the 
characteristics of the energy product being offered or the supplier's 
total energy portfolio, as appropriate, and a comparison with regional 
averages. The Secretary, in consultation with the Administrator of the 
Environmental Protection Agency, shall determine, and address in rules 
to be issued under this section, whether and how default generation 
source and emissions values may be used in disclosure statements as a 
proxy for that portion of the supplier's energy portfolio that cannot 
be identified from the information provided under subsection (f).
    ``(f) Disclosure to Wholesale Customers.--In every sale of 
electricity for resale, the seller shall provide to the purchaser such 
information respecting generation source and emissions characteristics 
as the Secretary may require by rules under this section. This 
information may include, but shall not be limited to, information from 
regional system operators and administrators on wholesale transactions, 
transactions in regional spot markets and energy imported from other 
control areas; information from wholesale and retail power marketing 
companies on transactions with other sellers; and information from 
generating companies on the amount of energy generated at each plant, 
the environmental characteristics of that energy and the amount of 
energy sold. The Secretary shall have the authority to require all 
sellers to participate in a tracking system designed to provide 
customers with comprehensive environmental information. Notwithstanding 
the provisions of the Energy Supply and Environmental Coordination Act 
of 1974, the Secretary shall determine what information shall be kept 
confidential and what information shall be made available to the 
public.
    ``(g) Energy Information Administration.--The Administrator of the 
Energy Information Administration shall make available to the general 
public, on the same basis as he now reports such data from public 
utilities, electric power, fuel use and environmental data, including 
respondent-level data, from all survey respondents in the electric 
generation industry.
    ``(h) Authority To Obtain Books and Records.--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. The Secretary shall take appropriate action to 
protect the confidentiality of competitively sensitive information.
    ``(i) Prohibited Acts and Enforcement.--It is an unfair or 
deceptive act or practice in or affecting commerce (within the meaning 
of section 5(a)(1) of the Federal Trade Commission Act (15 U.S.C. 
45(a)(1)) for any person to fail to provide information required under 
the rules issued under this section or to provide false or misleading 
information with respect to disclosures required by this section or the 
rules issued under this section.
    ``(j) State Authority.--Nothing in this section shall preclude or 
deny the right of any State or political subdivision thereof to adopt 
or enforce any law or rule prescribing the form, content, or timing of 
supplier disclosure in addition to the requirements of this section.
    ``(k) Regulations.--The Secretary may promulgate such regulations, 
conduct such investigations, and take such other actions as are 
necessary or appropriate to implement and obtain compliance with this 
section and regulations promulgated under this section.''.

SEC. 10. STATE AND LOCAL LAW.

    Nothing in this Act precludes a State or political subdivision of a 
State from adopting and enforcing--
            (1) any standard or limitation respecting emissions of air 
        pollutants; or
            (2) any requirement respecting control or abatement of air 
        pollution;
except that a State or political subdivision may not adopt or enforce 
any emission standard or limitation that is less stringent than the 
requirements imposed under this Act.

SEC. 11. PURPA REPEAL.

    (a) New Contracts.--After the date of enactment of this Act, no 
electric utility shall be required to enter into a new contract or 
obligation to purchase or to sell electric energy or capacity pursuant 
to section 210 of the Public Utility Regulatory Policies Act of 1978.
    (b) Existing Rights and Remedies Not Affected.--Nothing in this 
section affects the rights or remedies of any party with respect to the 
purchase or sale of electric energy or capacity from or to a facility 
determined to be a qualifying small power production facility or a 
qualifying cogeneration facility under section 210 of the Public 
Utility Regulatory Policies Act of 1978 pursuant to any contract or 
obligation to purchase or to sell electric energy or capacity in effect 
on the date of enactment of this Act, including the right to recover 
the costs of purchasing such electric energy or capacity.
    (c) Interpretations and Actions Taken.--Nothing in this Act may be 
deemed or construed as implying congressional ratification of any 
interpretation of, or any action taken pursuant to, the Public Utility 
Regulatory Policies Act of 1978.
    (d) Recovery of Costs.--In order to assure the sanctity of existing 
contracts and recovery by electric utilities purchasing electric energy 
or capacity from a qualifying facility pursuant to any legally 
enforceable obligation entered into or imposed pursuant to section 210 
of the Public Utility Regulatory Policies Act of 1978 prior to the date 
of enactment of this Act of all costs associated with such purchases, 
the Commission shall promulgate and enforce such regulations as may be 
required to assure that an electric utility shall collect the costs 
associated with such purchases from a qualifying facility upon honoring 
its obligations under such contracts. Such regulations shall be treated 
as a rule enforceable under the Federal Power Act (16 U.S.C. 791a-
825r).
    (e) Definitions.--For purposes of this section:
            (1) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
            (2) The term ``electric utility'' means any person, State 
        agency, or Federal agency, which sells electric energy.
            (3) The term ``qualifying small power production facility'' 
        has the same meaning as provided in section 3(17)(C) of the 
        Federal Power Act.
            (4) The term ``qualifying cogeneration facility'' has the 
        same meaning as provided in section 3(18)(A) of the Federal 
        Power Act.
            (5) The term ``qualifying facility'' means either a small 
        power production facility or a qualifying cogeneration 
        facility.

SEC. 12. ILLEGAL CHANGES IN RETAIL CUSTOMER SELECTIONS.

    Title II of the Public Utility Regulatory Policies Act of 1978 is 
amended by adding the following new section at the end thereof:

``SEC. 216. ILLEGAL CHANGES IN RETAIL CUSTOMER SELECTIONS (SLAMMING 
              PROHIBITION); CRAMMING PROHIBITION.

    ``(a) Prohibition.--No person shall submit or execute (1) a change 
in the selection made by a retail electric supply customer, or (2) a 
change to the number of products or services offered, except in 
accordance with such verification procedures as the State regulatory 
authority shall prescribe. Such authority may also prescribe such 
additional procedures regarding changes in retail electric supply 
customer selection and changes in the number of producs or services 
offered.
    ``(b) Liability for Charges.--Any person who violates the 
verification procedures described in subsection (a) and who collects 
charges from a customer shall be liable--
            ``(1) to the customer in an amount equal to all charges 
        paid by such customer after violation; and
            ``(2) in the case of a change referred to in subsection 
        (a)(1), to the retail electric supplier previously selected by 
        the customer in an amount equal to all charges paid by such 
        customer after violation.
Such authority may prescribe procedures for the recovery of the amounts 
referred to in paragraphs (1) and (2) of this subsection. The remedies 
provided by this section are in addition to any other remedies 
available by law.''

SEC. 13. PRIVACY OF CONSUMER PROPRIETARY INFORMATION.

    Title II of the Public Utility Regulatory Policies Act of 1978 is 
amended by adding the following new section at the end thereof:

``SEC. 218. PRIVACY OF CONSUMER PROPRIETARY INFORMATION.

    ``(a) Privacy Requirements.--Except as required by law or with the 
prior written affirmative approval of the consumer, any person that 
receives or obtains customer information by virtue of its provision of 
a retail electric service or metering and billing service shall only 
use, disclose, or permit access to individually identifiable consumer 
information in its provision of (1) a retail electric service or 
metering and billing service from which such information is derived, or 
(2) services necessary to, or used in, the provision of such service.
    ``(b) Disclosure on Request by Consumers.--An electric utility or 
metering and billing service provider shall disclose consumer 
information, upon affirmative written request by the consumer, to any 
person designated by the consumer.
    ``(c) Aggregate Consumer Information.--Any person that receives or 
obtains consumer information by virtue of its provision of retail 
electric service or metering and billing services may use, disclose, or 
permit access to aggregate consumer information other than for the 
purposes described in subsection (a). An electric utility or metering 
or billing service provider may use, disclose, or permit access to 
aggregate consumer information other than for purposes described in 
subsection (a) only if it provides such aggregate information to other 
retail electric service providers on reasonable and nondiscriminatory 
terms and conditions upon reasonable request for such information.
    ``(d) Exceptions.--Nothing in this section prohibits an electric 
utility or metering and billing service provider from using, 
disclosing, or permitting access to consumer information obtained from 
its consumers, either directly or indirectly through its agents--
            ``(1) to initiate, render, bill, and collect for retail 
        electric services or metering and billing services;
            ``(2) to protect the rights or property of the electric 
        utility or metering and billing service provider, or to protect 
        consumers of those services and other service providers from 
        fraudulent, abusive, unlawful use of, or subscription to such 
        services; or
            ``(3) for purposes of compliance with any other Federal or 
        State law or regulation authorizing disclosure of information 
        to a Federal or State agency.
    ``(e) Definitions.--As used in this section:
            ``(1) Consumer information.--The term `consumer 
        information' means--
                    ``(A) information that relates to the quantity, 
                technical configuration, type, destination, and amount 
                of use of a retail electric service subscribed to by 
                any consumer, and that is made available to an electric 
                utility or metering and billing service provider solely 
                by virtue of its business relationship; and
                    ``(B) information contained in the bills pertaining 
                to retail electric service received by a consumer.
            ``(2) Aggregate consumer information.--The term `aggregate 
        consumer information' means collective data that relates to a 
        group or category of services or consumers, from which 
        individual consumer identities and characteristics have been 
        removed.''.
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