[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 416 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 416
To establish a Fund for Environmental Priorities to be funded by a
portion of the consumer savings resulting from retail electricity
choice, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2001
Mr. Andrews introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on
Transportation and Infrastructure, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a Fund for Environmental Priorities to be funded by a
portion of the consumer savings resulting from retail electricity
choice, 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 ``Environmental Priorities Act of
2001''.
SEC. 2. RECAPTURE OF SAVINGS FROM RETAIL ELECTRICITY COMPETITION.
(a) Effective Date.--This Act shall take effect for a consumer
sector in any State on January 1 of the first year after all State
regulated electric utilities and all nonregulated electric utilities in
that State have been determined by the Secretary of Energy to have
established retail electric service choice for customers in that
sector, but not earlier than January 1, 2002. The Secretary shall
annually review the laws and regulations of each State relating to
retail electric service regulation and make such determinations on
January 1, 2002, and January 1 of each year thereafter.
(b) 10 Percent of Consumer Savings.--For each State, on December 31
of the first full calendar year following the effective date of this
Act for any consumer sector in the State, and on December 31 of each
subsequent calendar year, each provider of retail electric services in
the State shall contribute to the fiscal agent for the Environmental
Priorities Board established under section 2 an amount equal to 10
percent of the total consumer savings for that sector for that calendar
year.
(c) Definitions.--For purposes of this section:
(1) Consumer savings.--For any provider of retail electric
services in a State, for any consumer sector in the State, the
term ``consumer savings'' means, for any calendar year, the
amount (if any) by which the potential rate for electric energy
provided by that provider to that sector exceeds the current
rate for that sector, multiplied by that sector's total
consumption (in kilowatt-hours) during that calendar year.
(2) Current rate.--For any provider of retail electric
services in a State, for any consumer sector in the State, the
term ``current rate'' means, for the 12 months following the
effective date of this Act for that sector in that State, the
average kilowatt-hour rate paid by customers of the provider in
that consumer sector in that State, as calculated by the
provider and recalculated annually.
(3) Potential rate.--
(A) General rule.--For any provider of retail
electric services in a State, for any consumer sector
in the State, the term ``potential rate'' means, for
each calendar year following the effective date of this
Act for that sector in that State, the average
kilowatt-hour rate paid by the provider's customers in
that sector during the 12-month period preceding the
date on which retail electric service choice for
customers in that sector was established, adjusted for
inflation. The adjustment for inflation shall be made
using a methodology to be determined by the Secretary
of Energy. The Secretary of Energy shall recalculate
the potential rate annually to adjust it for inflation.
(B) Special rules.--For all sectors not serviced by
the provider during any period, the average kilowatt-
hour rate for that sector shall be estimated or
measured by the Secretary of Energy. In any case where
retail choice in a State or sector did not all occur on
one effective date but was phased-in over time, the
Secretary of Energy shall establish regulations to
fairly establish the potential rate. In any cases
where, for the 12-month period preceding the date on
which retail electric service choice for customers in
that sector was established, a provider served a sector
in the State but did not serve it for the full period,
the Secretary of Energy shall establish regulations to
fairly establish the potential rate.
SEC. 3. USE OF CONTRIBUTIONS FOR ENVIRONMENTAL PRIORITIES.
(a) National Environmental Priorities Board.--The Administrator of
the Environmental Protection Agency (hereinafter in this section
referred to as the ``Administrator'') shall establish a National
Environmental Priorities Board to carry out the functions and
responsibilities specified in this section. The Board shall be composed
of 3 persons who are officers or employees of the United States, and 4
State commissioners nominated by the national organization of the State
commissions and appointed by the Administrator. The Administrator shall
appoint one member of the Board to serve as Chairman.
(b) Rules.--Within 180 days after the enactment of this Act, the
Administrator shall promulgate a final rule containing the rules and
procedures of the Board, including the rules and procedures for
selecting a non-Federal fiscal agent under subsection (e). The
Administrator shall have oversight responsibilities over the Board.
(c) Environmental Priorities Program.--(1) Within 90 days after the
promulgation of the Administrator's rules under subsection (b), the
Board shall institute a proceeding to establish regulations governing
creation and administration of a Environmental Priorities Program. Such
regulations shall include criteria and methods of selecting State
projects to receive support under the Program. Such support may include
direct loans, loan guarantees, grants, capitalization grants for State
revolving funds, and other assistance. The State projects may include--
(A) lowering borrowing costs for municipal and regional
governments constructing wastewater treatment plants;
(B) increasing the use of filter strips and riparian
buffers in protecting rivers and streams;
(C) mitigating the deleterious effect of electricity
production on air quality;
(D) supporting the preservation of open space for resource
conservation, wildlife protection, or recreation; and
(E) such other projects furthering national environmental
priorities as may be established by the Board.
(2) The Board shall enter into arrangements with a non-Federal
fiscal agent who shall be authorized to receive the contributions made
under section 2(b) and to disburse such contributions as provided in
subsection (d).
(3) Any State in which retail electric service choice has been
established for any consumer sector may establish one or more public
purpose programs and apply for matching funding under this section for
projects to be funded under such program. A participating State may use
matching funds received under this section only to support one or more
eligible environmental priorities programs meeting the selection
criteria established under paragraph (1). The Board shall regularly
audit the expenditures of matching funds received by a participating
State under this section.
(4) At no time shall a State be required, pursuant to this section,
to participate in the Environmental Priorities Program, nor may a State
be required by the Board to fund a particular project.
(d) Fund for Environmental Priorities.--(1) The fiscal agent shall
distribute contributions received by the fiscal agent under section
2(b) to States (or entities designated by the States) under this
subsection in accordance with the criteria established by the Board
under subsection (c) to carry out eligible projects under environmental
priorities programs established by the States. For each calendar year
after the year 2002, the Board shall solicit applications from States
for matching funds to carry out eligible environmental priorities
programs. The applications for assistance during any calendar year must
be received by the Board before the commencement of such year. In its
application, the State shall certify that the moneys will be used for
one or more eligible public purpose programs and shall specify the
amount of State support which is projected for the coming calendar year
for the programs concerned.
(2) Upon receipt of all State requests for matching funds submitted
pursuant to paragraph (1) for any calendar year, the Board shall
calculate the funds necessary to match the level of projected States
funds for eligible environmental priorities programs for that calendar
year.
(3) Following the calculation of the amount of matching funds
required under paragraph (2) for all States requesting funds for any
calendar year, the Board shall communicate that amount to the fiscal
agent. Expenditures by the fiscal agent for any calendar year may not
exceed the total balance. To the extent the matching funds requested by
all such States for a calendar year exceed the total amount received by
the fiscal agent during the prior calendar year and available to the
fiscal agent at the commencement of the calendar year concerned, the
matching funds distributed to each such State shall be reduced pro rata
so that the percentage of State funds matched by funds provided under
this section is the same for all States requesting funds.
(4) The fiscal agent shall distribute matching funds to the States
(or to an entity or entities designated by the State to receive
payments) to be used for eligible environmental priorities programs
designated under subsection (c). All funds received shall be used only
for the eligible environmental priorities programs designated by the
State.
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