[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1213 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1213
To authorize a short-term program of grants to certain electric
utilities to be passed through, in the form of credits toward electric
bills, to consumers that reduce electric energy consumption and to
establish an Electric Energy Conservation Fund to provide loans to
utilities and nonprofit organizations to fund energy productivity
projects.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 20, 2001
Ms. Cantwell introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To authorize a short-term program of grants to certain electric
utilities to be passed through, in the form of credits toward electric
bills, to consumers that reduce electric energy consumption and to
establish an Electric Energy Conservation Fund to provide loans to
utilities and nonprofit organizations to fund energy productivity
projects.
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 ``Savings Through Energy Productivity
Act'' or the ``STEP Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Eligible utility.--The term ``eligible utility'' means
an electric utility that, during any 12-month period beginning
on or after January 1, 2000, increased or increases the rates
charged to all categories of its customers by a weighted
average of 20 percent or more in order to cover increases in
the cost of generating or acquiring electricity.
(2) Energy productivity project.--The term ``energy
productivity project'' means a project to--
(A) construct a facility or install equipment that
uses energy-efficient technology in the generation or
use of electric energy; or
(B) conduct a program, not conducted by the
applicant for a grant under section 4 before the date
of application for the grant, to increase the
productivity of a utility.
(3) Fund.--The term ``Fund'' means the STEP Fund
established by section 4.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(5) Utility.--The term ``utility'' means an electric
utility (as defined in section 3 of the Federal Power Act (16
U.S.C. 796)) that is subject to regulation by a State
commission (as defined in that section).
SEC. 3. IMMEDIATE ELECTRIC ENERGY COST RELIEF FOR CONSUMERS THAT REDUCE
ENERGY CONSUMPTION.
(a) In General.--The Secretary shall establish a program, to be
known as the ``STEP Emergency Rebate Program'', under which the
Secretary makes grants to eligible utilities to pay the costs of
providing rebates or credits against the amounts of electric bills of
customers that reduce the amount of electric energy consumed by the
customer.
(b) Credits for Reduction of Electric Energy Consumption.--
(1) In general.--To receive a grant under subsection (a),
an eligible utility shall agree to provide its customers
rebates and credits as provided in this subsection.
(2) First period of qualification.--During the first 12-
month period in which a utility customer qualifies for rebates
or credits under this section, the customer shall be entitled
to a rebate of a portion of the amount of an electric bill
paid, or a credit against the amount of an electric bill, for
each billing period, in an amount that is proportionate to the
percentage by which the amount of electric energy consumed by
the customer during the billing period is less than the amount
consumed during the equivalent billing period in the preceding
year (referred to in this section as the ``base billing
period'').
(3) Second period of qualification.--During the second 12-
month period in which a utility customer qualifies for rebates
or credits under this section, the customer shall be entitled
to a rebate of a portion of the amount of an electric bill
paid, or a credit against the amount of an electric bill, for
each billing period, in an amount that is proportionate to the
percentage by which the amount of electric energy consumed by
the customer during the billing period is less than the amount
consumed during the base billing period.
(4) New customers.--In the case of a customer to which an
eligible utility has sold electric energy for less than a year,
the proportion by which the customer shall be considered to
have reduced electric energy consumption during a month shall
be determined by comparing the amount of electric energy
consumed by the customer during the month against a local area
baseline determined in accordance with regulations promulgated
by the Secretary.
(5) Percentage reduction.--
(A) Limitation.--A utility customer shall be
entitled to a rebate or credit only to the extent that
the percentage described in paragraph (3) or (4) is
between 5.0 percent and 20.0 percent, inclusive.
(B) Rounding.--For the purposes of determining the
amount of a rebate or credit, a described in paragraph
(3) or (4) shall be rounded to the nearest tenth of a
percent.
(c) Action by the Secretary.--
(1) Expeditious relief.--In order to provide energy cost
relief to consumers as expeditiously as possible, the Secretary
shall act on an application for a grant under subsection (a)
within 30 days after receiving the application.
(2) Failure to act.--If the Secretary fails to act on an
application for a grant within 30 days after receiving the
application, the application shall be deemed to be granted.
(3) Denial of application.--If the Secretary denies an
application, the Secretary shall include in the denial--
(A) a detailed statement of the reasons for the
denial; and
(B) a description any action that the applicant may
make to obtain approval of the application.
(d) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
such sums as are necessary to carry out this section for fiscal
years 2002 and 2003.
(2) Administrative expenses.--The Secretary shall use not
more than 5 percent of the amount made available to carry out
this section for a fiscal year to pay administrative expenses.
(e) Cessation of Effectiveness.--
(1) In general.--This section ceases to be in effect on
October 1, 2003.
(2) Transfer to the fund.--Any balance of the amounts made
available to carry out this section that remain unexpended on
September 30, 2003, shall be transferred to the Fund.
SEC. 4. STEP FUND.
(a) Establishment.--There is established in the Treasury of the
United States a revolving fund to be known as the ``STEP Fund'',
consisting of--
(1) amounts appropriated to the Fund under subsection (f);
(2) amounts of loans repaid to the Fund under subsection
(b)(2)(B);
(3) amounts of interest earned on investment of amounts in
the Fund under subsection (c); and
(4) amounts transferred to the Fund under section 3(e)(2).
(b) Loan program.--
(1) In general.--The Secretary shall establish a program
under which the Secretary, using amounts in the Fund, makes
loans to utilities and nonprofit organizations, at no interest,
to pay up to 100 percent of the cost of an energy productivity
project.
(2) Repayment.--
(A) Schedule.--The Secretary shall require
repayment of a loan on a schedule that takes into
account the length of time that will be required for
the amount of savings that is expected to be realized
from an energy productivity project to equal the cost
of the energy productivity project.
(B) Deposit in fund.--The Secretary shall deposit
amounts received in repayment of a loan in the Fund.
(c) Investment of Amounts.--
(1) In general.--The Secretary of the Treasury shall invest
such portion of the Fund as is not, in the judgment of the
Secretary of the Treasury, required to meet current
withdrawals. Investments may be made only in interest-bearing
obligations of the United States.
(2) Acquisition of obligations.--For the purpose of
investments under paragraph (1), obligations may be acquired--
(A) on original issue at the issue price; or
(B) by purchase of outstanding obligations at the
market price.
(3) Sale of obligations.--Any obligation acquired by the
Fund may be sold by the Secretary of the Treasury at the market
price.
(4) Credits to fund.--The interest on, and the proceeds
from the sale or redemption of, any obligations held in the
Fund shall be credited to and form a part of the Fund.
(d) Availability.--Amounts in the Fund shall be available to the
Secretary, without further appropriation, to make loans under
subsection (b).
(e) Reports.--Not later than 1 year after the date on which a
utility or nonprofit organization receives a loan under this section,
and annually thereafter until such date as the loan is repaid in full,
the loan recipient shall submit to the Secretary of Energy a report
that describes--
(1) any electricity savings or peak demand reductions
resulting from the implementation of activities carried out
using loan funds; and
(2) an estimate of the annual cost-effectiveness of all
programs carried out by the loan recipient in the year for
which the report is submitted.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Fund such sums as are necessary to carry out this
section.
(g) Cessation of Effectiveness.--This section ceases to be in
effect on the date that is 10 years after the date of enactment of this
Act.
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