[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 933 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 933
To amend the Federal Power Act to encourage the development and
deployment of innovative and efficient energy technologies.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 22, 2001
Mr. Jeffords (for himself, Mrs. Clinton, Mr. Leahy, Mr. Lieberman, and
Mr. Schumer) introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To amend the Federal Power Act to encourage the development and
deployment of innovative and efficient energy technologies.
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 ``Combined Heat and Power Advancement
Act of 2001''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the removal of barriers to the development and
deployment of combined heat and power technologies and systems,
an example of an array of innovative energy-supply and energy-
efficient technologies and systems, would--
(A) encourage technological innovation;
(B) reduce energy prices;
(C) spur economic development;
(D) enhance productivity;
(E) increase employment; and
(F) improve environmental quality and energy self-
sufficiency;
(2) the level of efficiency of the United States
electricity-generating system has been stagnant over the past
several decades;
(3) technologies and systems available as of the date of
enactment of this Act, including a host of innovative onsite,
distributed generation technologies, could--
(A) dramatically increase productivity;
(B) double the efficiency of the United States
electricity-generating system; and
(C) reduce emissions of regulated pollutants and
greenhouse gases;
(4) innovative electric technologies emit a much lower
level of pollutants as compared to the average quantity of
pollutants generated by United States electric generating
plants as of the date of enactment of this Act;
(5) a significant proportion of the United States energy
infrastructure will need to be replaced by 2010;
(6) the public interest would best be served if that
infrastructure were replaced by innovative technologies that
dramatically increase productivity, improve efficiency, and
reduce pollution;
(7) financing and regulatory practices in effect as of the
date of enactment of this Act do not recognize the
environmental and economic benefits to be obtained from the
avoidance of transmission and distribution losses, and the
reduced load on the electricity-generating system, provided by
onsite, combined heat and power production;
(8) many legal, regulatory, informational, and perceptual
barriers block the development and dissemination of combined
heat and power and other innovative energy technologies; and
(9) because of those barriers, United States taxpayers are
not receiving the benefits of the substantial research and
development investment in innovative energy technologies made
by the Federal Government.
SEC. 3. PURPOSE.
The purpose of this Act is to encourage energy productivity and
efficiency increases by removing barriers to the development and
deployment of combined heat and power technologies and systems.
SEC. 4. INTERCONNECTION.
(a) Definitions.--Section 3 of the Federal Power Act (16 U.S.C.
796) is amended--
(1) by striking paragraph (23) and inserting the following:
``(23) Transmitting utility.--The term `transmitting
utility' means any entity (notwithstanding section 201(f)) that
owns, controls, or operates an electric power transmission
facility that is used for the sale of electric energy.''; and
(2) by adding at the end the following:
``(26) Appropriate regulatory authority.--The term
`appropriate regulatory authority' means--
``(A) the Commission;
``(B) a State commission;
``(C) a municipality; or
``(D) a cooperative that is self-regulating under
State law and is not a public utility.
``(27) Generating facility.--The term `generating facility'
means a facility that generates electric energy.
``(28) Local distribution utility.--The term `local
distribution utility' means an entity that owns, controls, or
operates an electric power distribution facility that is used
for the sale of electric energy.
``(29) Non-federal regulatory authority.--The term `non-
Federal regulatory authority' means an appropriate regulatory
authority other than the Commission.''.
(b) Interconnection to Distribution Facilities.--Section 210 of the
Federal Power Act (16 U.S.C. 824i) is amended--
(1) by redesignating subsection (e) as subsection (g); and
(2) by inserting after subsection (d) the following:
``(e) Interconnection to Distribution Facilities.--
``(1) Interconnection.--
``(A) In general.--A local distribution utility
shall interconnect a generating facility with the
distribution facilities of the local distribution
utility if the owner of the generating facility--
``(i) complies with the final rule
promulgated under paragraph (2); and
``(ii) pays the costs of the
interconnection.
``(B) Costs.--The costs of the interconnection--
``(i) shall be just and reasonable, and not
unduly discriminatory, as determined by the
appropriate regulatory authority; and
``(ii) shall be comparable to the costs
charged by the local distribution utility for
interconnection by any similarly situated
generating facility to the distribution
facilities of the local distribution utility.
``(C) Applicable requirements.--The right of a
generating facility to interconnect under subparagraph
(A) does not--
``(i) relieve the generating facility or
the local distribution utility of other
Federal, State, or local requirements; or
``(ii) provide the generating facility with
transmission or distribution service.
``(2) Rule.--
``(A) In general.--Not later than 1 year after the
date of enactment of this subparagraph, the Commission
shall promulgate a final rule to establish reasonable
and appropriate technical standards for the
interconnection of a generating facility with the
distribution facilities of a local distribution
utility.
``(B) Process.--To the extent feasible, the
Commission shall develop the standards through a
process involving interested parties.
``(C) Advisory committee.--The Commission shall
establish an advisory committee composed of qualified
experts to make recommendations to the Commission
concerning development of the standards.
``(D) Administration.--
``(i) By a non-federal regulatory
authority.--Except where subject to the
jurisdiction of the Commission pursuant to
provisions other than clause (ii), a non-
Federal regulatory authority may administer and
enforce the rule promulgated under subparagraph
(A).
``(ii) By the commission.--To the extent
that a non-Federal regulatory authority does
not administer and enforce the rule, the
Commission shall administer and enforce the
rule with respect to interconnection in that
jurisdiction.
``(3) Right to backup power.--
``(A) In general.--In accordance with subparagraph
(B), a local distribution utility shall offer to sell
backup power to a generating facility that has
interconnected with the local distribution utility to
the extent that the local distribution utility--
``(i) is not subject to an order of a non-
Federal regulatory authority to provide open
access to the distribution facilities of the
local distribution utility;
``(ii) has not offered to provide open
access to the distribution facilities of the
local distribution utility; or
``(iii) does not allow a generating
facility to purchase backup power from another
entity using the distribution facilities of the
local distribution utility.
``(B) Rates, terms, and conditions.--A sale of
backup power under subparagraph (A) shall be at such a
rate, and under such terms and conditions, as are just
and reasonable and not unduly discriminatory or
preferential, taking into account the actual
incremental cost, whenever incurred by the local
distribution utility, to supply such backup power
service during the period in which the backup power
service is provided, as determined by the appropriate
regulatory authority.
``(C) No requirement for certain sales.--A local
distribution utility shall not be required to offer
backup power for resale to any entity other than the
entity for which the backup power is purchased.
``(D) New or expanded loads.--To the extent backup
power is used to serve a new or expanded load on the
distribution system, the generating facility shall pay
any reasonable costs associated with any transmission,
distribution, or generation upgrade required to provide
such service.''.
(c) Interconnection to Transmission Facilities.--Section 210 of the
Federal Power Act (16 U.S.C. 824i) is amended by inserting after
subsection (e) (as added by subsection (b)) the following:
``(f) Interconnection to Transmission Facilities.--
``(1) Interconnection.--
``(A) In general.--Notwithstanding subsections (a)
and (c), a transmitting utility shall interconnect a
generating facility with the transmission facilities of
the transmitting utility if the owner of the generating
facility--
``(i) complies with the final rule
promulgated under paragraph (2); and
``(ii) pays the costs of the
interconnection.
``(B) Costs.--
``(i) In general.--Subject to clause (ii),
the costs of the interconnection--
``(I) shall be just and reasonable
and not unduly discriminatory; and
``(II) shall be comparable to the
costs charged by the transmitting
utility for interconnection by any
similarly situated generating facility
to the transmitting facilities of the
transmitting utility.
``(ii) Effect of ferc lite.--A non-Federal
regulatory authority that, under any provision
of Federal law enacted before, on, or after the
date of enactment of this subparagraph, is
authorized to determine the rates for
transmission service shall be authorized to
determine the costs of any interconnection
under this subparagraph in accordance with that
provision of Federal law.
``(C) Applicable requirements.--The right of a
generating facility to interconnect under subparagraph
(A) does not--
``(i) relieve the generating facility or
the transmitting utility of other Federal,
State, or local requirements; or
``(ii) provide the generating facility with
transmission or distribution service.
``(2) Rule.--
``(A) In general.--Not later than 1 year after the
date of enactment of this subparagraph, the Commission
shall promulgate a final rule to establish reasonable
and appropriate technical standards for the
interconnection of a generating facility with the
transmission facilities of a transmitting utility.
``(B) Process.--To the extent feasible, the
Commission shall develop the standards through a
process involving interested parties.
``(C) Advisory committee.--The Commission shall
establish an advisory committee composed of qualified
experts to make recommendations to the Commission
concerning development of the standards.
``(3) Right to backup power.--
``(A) In general.--In accordance with subparagraph
(B), a transmitting utility shall offer to sell backup
power to a generating facility that has interconnected
with the transmitting utility unless--
``(i) Federal or State law (including
regulations) allows a generating facility to
purchase backup power from an entity other than
the transmitting utility; or
``(ii) a transmitting utility allows a
generating facility to purchase backup power
from an entity other than the transmitting
utility using--
``(I) the transmission facilities
of the transmitting utility; and
``(II) the transmission facilities
of any other transmitting utility.
``(B) Rates, terms, and conditions.--A sale of
backup power under subparagraph (A) shall be at such a
rate, and under such terms and conditions, as are just
and reasonable and not unduly discriminatory or
preferential, taking into account the actual
incremental cost, whenever incurred by the local
distribution utility, to supply such backup power
service during the period in which the backup power
service is provided, as determined by the appropriate
regulatory authority.
``(C) No requirement for certain sales.--A
transmitting utility shall not be required to offer
backup power for resale to any entity other than the
entity for which the backup power is purchased.
``(D) New or expanded loads.--To the extent backup
power is used to serve a new or expanded load on the
transmission system, the generating facility shall pay
any reasonable costs associated with any transmission,
distribution, or generation upgrade required to provide
such service.''.
(d) Conforming Amendments.--Section 210 of the Federal Power Act
(16 U.S.C. 824i) is amended--
(1) in subsection (a)(1)--
(A) by inserting ``transmitting utility, local
distribution utility,'' after ``electric utility,'';
and
(B) in subparagraph (A), by inserting ``any
transmitting utility,'' after ``small power production
facility,'';
(2) in subsection (b)(2), by striking ``an evidentiary
hearing'' and inserting ``a hearing'';
(3) in subsection (c)(2)--
(A) in subparagraph (B), by striking ``or'' at the
end;
(B) in subparagraph (C), by striking ``and'' at the
end and inserting ``or''; and
(C) by adding at the end the following:
``(D) promote competition in electricity markets, and'';
and
(4) in subsection (d), by striking the last sentence.
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