[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4059 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4059

   To promote electric transmission construction in rural areas with 
    significant renewable energy potential, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 1, 2007

 Mr. Inslee (for himself and Mr. Blumenauer) introduced the following 
 bill; which was referred to the Committee on Energy and Commerce, and 
 in addition to the Committees on Natural Resources and 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 promote electric transmission construction in rural areas with 
    significant renewable energy potential, 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 ``Rural Clean Energy Superhighways 
Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) electricity produced from renewable resources helps to 
        reduce greenhouse gas emissions, and limits emissions of other 
        pollutants regulated pursuant to the Clean Air Act, enhances 
        national energy security, and provides substantial economic 
        benefits;
            (2) the potential exists for a far greater percentage of 
        electric production in the United States to be generated 
        through the use of renewable resources than current levels;
            (3) many of the best potential renewable energy resources 
        are located in rural areas far from population centers;
            (4) the lack of adequate electric transmission capacity is 
        one of the primary obstacles to the development of electric 
        generation facilities fueled by renewable energy resources;
            (5) the economies of many rural areas would substantially 
        benefit from the increased development of electric generation 
        facilities fueled by renewable energy resources; and
            (6) it is in the national interest for the Federal 
        Government to implement policies that will enhance the amount 
        of electric transmission capacity available to take full 
        advantage of renewable energy resources to generate 
        electricity.

SEC. 3. NATIONAL RENEWABLE ENERGY ZONES.

    (a) In General.--Title II of the Federal Power Act (16 U.S.C. 824 
et seq.) is amended--
            (1) by inserting before the section heading of section 201 
        (16 U.S.C. 824 et seq.) the following:

       ``Subtitle A--Regulation of Electric Utility Companies'';

        and
            (2) by adding at the end the following:

             ``Subtitle B--National Renewable Energy Zones

``SEC. 231. DEFINITIONS.

    ``In this subtitle:
            ``(1) The term `Commission' means the Federal Energy 
        Regulatory Commission.
            ``(2) The term `electricity from renewable energy' means 
        electric energy generated from--
                    ``(A) solar, wind, geothermal or marine and 
                hydrokinetic renewable energy;
                    ``(B) biomass (as defined in section 203(b) of the 
                Energy Policy Act of 2005);
                    ``(C) landfill gas; or
                    ``(D) incremental hydropower.
            ``(3) The term `marine and hydrokinetic renewable energy' 
        means energy derived from--
                    ``(A) waves, tides, and currents in oceans, 
                estuaries, and tidal areas;
                    ``(B) free flowing water in rivers, lakes, and 
                streams;
                    ``(C) free flowing water in an irrigation system, 
                canal, or other man-made channel, including projects 
                that utilize nonmechanical structures to accelerate the 
                flow of water for electric power production purposes; 
                or
                    ``(D) differentials in ocean temperature (ocean 
                thermal energy conversion).
            ``(4) The term `Federal Transmitting Utility' means a 
        Federal Power Marketing Administration that owns or operates 
        electric transmission facilities. Such term includes the 
        Tennessee Valley Authority.
            ``(5) The term `geothermal energy' means energy derived 
        from a geothermal deposit (within the meaning of section 
        613(e)(2) of the Internal Revenue Code of 1986).
            ``(6) The term `renewable energy trunkline' means a radial 
        transmission line, including all associated transmission 
        facilities and equipment within a National Renewable Energy 
        Zone, that is used to deliver electricity from renewable energy 
        generators to the point where it connects to a high-voltage 
        electric transmission system, including any modifications, 
        additions or upgrades to such facilities and equipment. A 
        renewable energy trunkline shall not include network upgrades.
            ``(7) The term `network upgrades' means the additions or 
        modifications to the transmission system of the transmission 
        provider required at or beyond the point at which the 
        generators or renewable energy trunklines interconnect to the 
        transmission system of the transmission provider to accommodate 
        the transmission of renewable energy generated in a National 
        Renewable Energy Zone.
            ``(8) The term `Indian lands' means--
                    ``(A) any land within the limits of any Indian 
                reservation, pueblo or Rancheria,
                    ``(B) any land not within the limits of any Indian 
                reservation, pueblo or Rancheria title to which was on 
                the date of enactment of this Act either held in trust 
                by the United States for the benefit of any Indian 
                tribe or individual or held by any Indian tribe or 
                individual subject to restriction by the United States 
                against alienation,
                    ``(C) any dependent Indian community, and
                    ``(D) any land conveyed to any Alaska Native 
                corporation under the Alaska Native Claims Settlement 
                Act.
            ``(9) The term `electricity consuming area' means the area 
        within which electricity from renewable energy would be 
        consumed if a renewable energy trunkline or network upgrades 
        were to be constructed to deliver electricity from renewable 
        energy generated in a National Renewable Energy Zone.
            ``(10) The term `incremental hydropower' means additional 
        hydroelectric power generation that is achieved from increased 
        efficiency or additions of capacity made on or after January 1, 
        2001, at a hydroelectric facility that was placed in service 
        before that date.

``SEC. 232. DESIGNATION OF NATIONAL RENEWABLE ENERGY ZONES.

    ``(a) Designation.--Within 6 months after the date of enactment of 
this subtitle, the President shall designate as a National Renewable 
Energy Zone each area that meets each of the following conditions:
            ``(1) The potential to contain in excess of one gigawatt of 
        electricity generation capacity from renewable energy if there 
        were a sufficient level of electric transmission capacity 
        without having a material detrimental impact on reliability.
            ``(2) An insufficient level of electric transmission 
        capacity to enable one or more electricity consuming areas to 
        access the potential renewable energy generation capacity 
        identified pursuant to paragraph (1).
            ``(3) Substantial demand in one or more electricity 
        consuming areas for renewable energy that would be generated in 
        the National Renewable Energy Zone if there were a sufficient 
        level of transmission capacity.
    ``(b) Factors.--In making the designations required by subsection 
(a), the President shall take into account each of the following:
            ``(1) State and Federal requirements for utilities to 
        incorporate renewable energy as part of serving load.
            ``(2) The impact of the development of renewable energy 
        trunkline facilities and network upgrades on the aesthetic and 
        environmental values of land contained in an area eligible for 
        National Renewable Energy Zone designation.
            ``(3) Compatibility with regional transmission plans.
    ``(c) Additional Facilities.--Within 1 year after the designation 
of a National Renewable Energy Zone, the President, after consulting 
with the Federal Transmitting Utilities, shall identify, and provide 
public notice of, specific additional renewable energy trunkline 
facilities and network upgrades required to substantially increase the 
generation of electricity from renewable energy within each National 
Renewable Energy Zone. The President shall, when identifying 
transmission facilities pursuant to this subsection, take into account 
existing transmission plans for the areas included in a National 
Renewable Energy Zone.
    ``(d) Public Views.--Before designating an area as a National 
Renewable Energy Zone, the President shall, after notice and public 
comment, consider the views of affected States, Indian Tribe and other 
interested persons.
    ``(e) Expansion.--The President shall every 3 years after the date 
of enactment of this subtitle consider whether to expand an existing 
National Renewable Energy Zone or designate a new National Renewable 
Energy Zone pursuant to the criteria set forth in subsection (a).
    ``(f) Delisting.--The President, after opportunity for public 
comment, shall every 9 years review the National Renewable Energy Zones 
designated pursuant to subsection (a) and delist those Zones that no 
longer meet the criteria specified in that subsection.

``SEC. 233. ENCOURAGING CLEAN ENERGY SUPERHIGHWAY DEVELOPMENT IN 
              NATIONAL RENEWABLE ENERGY ZONES.

    ``(a) Cost Recovery.--(1) Consistent with sections 205 and 206, the 
Commission shall issue and enforce such regulations as are necessary to 
ensure that a public utility that finances transmission capacity to 
transmit electricity from renewable energy from a National Renewable 
Energy Zone to an electricity consuming area after the date of 
enactment of this subtitle recovers through its rates for transmission 
service all prudently incurred costs and a reasonable return on equity 
associated with the construction and operation of such new transmission 
capacity. In making such regulations, the Commission shall take into 
account the current and future beneficiaries of the new transmission 
capacity.
    ``(2) A regulation under paragraph (1) shall be enforceable in 
accordance with the provisions of law applicable to enforcement of 
regulations under this Act.
    ``(b) Renewable Energy Trunkline Transmission Financing 
Mechanism.--The Commission shall permit a renewable energy trunkline 
built by a public utility referred to in this section in a National 
Renewable Energy Zone to, in advance of significant generation 
interconnection requests, be initially funded through a transmission 
charge imposed upon all transmission customers of the public utility 
or, if the renewable energy trunkline is built in an area served by a 
Regional Transmission Organization or independent system operator, all 
of the transmission customers of such Regional Transmission 
Organization or independent systems operator, if the Commission makes 
each of the following findings:
            ``(1) The renewable energy resources that would utilize the 
        renewable energy trunkline are remote from the grid and load 
        centers.
            ``(2) The renewable energy trunkline will likely result in 
        multiple individual renewable energy electric generation 
        projects being developed by multiple competing developers.
            ``(3) The renewable energy trunkline has at least one 
        project subscribed through an executed generation 
        interconnection agreement with the transmission provider and 
        has tangible demonstration of additional interest.
    ``(c) New Projects.--As new electric generation projects are 
constructed and interconnected to the renewable energy trunkline, the 
Commission shall require the transmission services contract holder for 
such generation project to, on a going forward basis, pay a pro-rata 
share of the renewable energy trunkline facility's costs to the 
transmission provider in order to reduce the otherwise applicable rates 
of customers of the public utility or Regional Transmission 
Organization, unless the public utility proposes to the Commission, and 
the Commission accepts, an alternative whereby generation projects 
would pay a lesser amount.
    ``(d) Network Upgrades Cost Allocation.--
            ``(1) Within 6 months after the date the President 
        designates an area as a National Renewable Energy Zone, the 
        State utility commissions or other appropriate bodies having 
        jurisdiction over the public utilities providing electric 
        service in the National Renewable Energy Zone or the related 
        electricity consuming area may jointly propose to the 
        Commission a cost allocation plan for network upgrades built by 
        a public utility that would serve the electricity consuming 
        area.
            ``(2) The Commission may approve the plan proposed by the 
        States pursuant to paragraph (1) if, taking into account the 
        users of the transmission facilities, the plan will result in 
        rates that are just and reasonable and not unduly 
        discriminatory or preferential and the plan would not unduly 
        inhibit the development of renewable energy electric generation 
        projects.
            ``(3) Unless a plan has been approved by the Commission 
        pursuant to paragraph (2), the Commission shall fairly allocate 
        the costs of new network upgrades built in the area by one or 
        more public utility transmission providers (recognizing the 
        national and regional benefits associated with increased access 
        to electricity from renewable energy) pursuant to a rolled-in 
        transmission charge in the rates of all public utility 
        transmission providers in the National Renewable Energy zone 
        and in the related electricity consuming area. Nothing in 
        subsection (b) or in the Rural Clean Energy Superhighways Act 
        shall expand, directly or indirectly, the jurisdiction of the 
        Commission with respect to any Federal Transmitting Utility.
            ``(4) A cost allocation identified in paragraph (3) shall 
        be deemed consistent with sections 205 and 206.
    ``(e) Regulations.--The Commission shall issue and enforce such 
regulations as are necessary to ensure that electric generation 
produced from renewable sources are interconnected expeditiously to the 
grid.''.
    (b) Federal Transmitting Utilities.--(1) If no privately or 
publicly funded entity commits within 3 years of the identification 
required in section 232(c) of the Federal Power Act to finance (either 
on its own or through a third party financing arrangement with a 
Federal Transmitting Utility) a network upgrade or a renewable energy 
trunkline facility identified in such notice, a Federal Transmitting 
Utility shall finance such facilities if the Federal Transmitting 
Utility determines that--
            (A) the facilities would be, partially or wholly, located 
        within the area in which the Federal Transmitting Utility is 
        statutorily authorized to construct transmission facilities;
            (B) the facilities may be constructed and operated without 
        having a material detrimental impact on reliability;
            (C) equally effective, least cost, nontransmission options 
        are unavailable;
            (D) a substantial likelihood exists that the facility will 
        be sufficiently subscribed once constructed and will be 
        financially viable;
            (E) there are sufficient funds in the Transmission Fund 
        established by paragraph (5) to finance such facilities; and
            (F) the facilities are not in conflict with existing 
        transmission plans for the areas included in a National 
        Renewable Energy Zone.
    (2) The Federal Transmitting Utility may also study, construct, 
operate, and maintain facilities financed under paragraph (1), or may 
cooperate with others in performing these functions, as arranged at the 
discretion of the Federal Transmitting Utility.
    (3) Notwithstanding paragraphs (1) and (2), a Federal Transmitting 
Utility shall not finance and construct a network upgrade associated 
with transmission facilities owned by another party without the consent 
of such party.
    (4) A Federal Transmitting Utility that makes the determination to 
finance facilities pursuant to paragraph (1) shall coordinate with any 
regional planning organizations and Federal and non-Federal 
transmission-owning utilities, consistent with generally acceptable 
regional coordination practices, to identify the best plans of service 
for those facilities.
    (5)(A) Not more than $10,000,000,000 is authorized, to be deposited 
in a Transmission Fund in the United States Treasury. Amounts in such 
Fund shall be available for expenditure by the Secretary of Energy, 
subject to annual appropriation, as provided in this paragraph.
    (B) Subject to the availability of funds in the Transmission Fund, 
the Secretary of Energy is authorized to issue and sell bonds, notes, 
and other evidence of indebtedness to the Secretary of the Treasury 
from time to time to finance the activities of the Federal Transmitting 
Utilities authorized by paragraph (1). Except as specified in 
subparagraph (C), amounts used for the purposes of this Act shall be 
recovered by the Federal Transmitting Utility and repaid to the 
Transmission Fund over the life of the facilities.
    (C) The Federal Transmitting Utility shall establish rate and 
accounting policies and procedures to ensure that capital expenditures 
incurred under this section are scheduled to be recovered by the 
Federal Transmitting Utility and repaid to the Transmission Fund over 
the life of the facilities. Operation and maintenance costs shall be 
recovered and repaid to the Transmission Fund in the year incurred. 
These policies and procedures shall categorize costs as nonreimbursable 
to the degree necessary so as not to impact the rates paid by existing 
power and transmission customers of the Federal Transmitting Utility, 
who shall not be liable for the costs of any associated renewable 
energy trunklines or network upgrades except for the costs associated 
with any transmission capacity financed pursuant to this section that 
these customers utilize as determined by each Federal Transmitting 
Utility. Any amounts that cannot be recovered as provided in this 
subparagraph shall not be required to be repaid by the Federal 
Transmitting Utility to the Transmission Fund in the United States 
Treasury.
    (6) The regulations promulgated pursuant to this Act shall, to the 
maximum extent practicable, ensure that not less than 75 percent of the 
capacity of any radial network upgrade and renewable energy trunkline 
facilities financed by a Federal Transmitting Utility pursuant to this 
section shall be available for reservation on a priority basis for 
electricity from renewable energy.
    (c) Commission Jurisdiction.--Nothing in this subsection shall 
expand, directly or indirectly, the jurisdiction of the Commission with 
respect to any Federal Transmitting Utility.

SEC. 4. FEDERAL POWER MARKETING ADMINISTRATION AND TVA.

    (a) Promotion of Renewable Energy and Energy Efficiency.--The 
Western Area Power Administration, the Southeastern Area Power 
Administration, the Southwestern Area Power Administration and the 
Tennessee Valley Authority shall each identify and, to the extent 
economically feasible and not inconsistent with other statutory 
obligations, take steps to promote energy conservation and renewable 
energy electric resource development in the regions served by such 
utility.
    (b) Acquisition of Renewable Energy and Renewable Energy Credits.--
Each Federal Power Marketing Administration and the Tennessee Valley 
Authority may, subject to advance payment arrangements by the Federal 
Government being in place that assure the Federal Power Marketing 
Administration is held financially harmless for its actions pursuant to 
this section, use its purchasing power to acquire on behalf of the 
Federal Government electricity from renewable energy and renewable 
energy credits in sufficient amounts to meet the requirements of 
section 203 of the Energy Policy Act of 2005. The Federal agencies on 
behalf of which a Federal Power Marketing Administration or the 
Tennessee Valley Authority acquires renewable energy or renewable 
energy credits shall fully reimburse the Federal Power Marketing 
Administration or the Tennessee Valley Authority for such transactions.
    (c) Tribal Renewable Energy.--Each Federal Power Marketing 
Administration and the Tennessee Valley Authority shall identify 
opportunities for promoting the development of facilities generating 
electricity from renewable energy on Indian lands.
    (d) Nonreimbursable Funds.--The amounts expended by a Federal Power 
Marketing Administration or the Tennessee Valley Authority pursuant to 
this section shall not be subject to reimbursement by the customers of 
such utility.

SEC. 5. CONSISTENCY WITH ENVIRONMENTAL LAWS.

    Nothing in this Act shall be deemed to waive any existing Federal 
or State environmental protection provision, including the requirements 
of--
            (1) the National Forest Management Act of 1976 (16 U.S.C. 
        472a et seq.);
            (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.);
            (3) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4231 et seq.);
            (4) the Federal Water Pollution Control Act of 1969 (33 
        U.S.C. 1251 et seq.); or
            (5) the Federal Land Policy and Management Act of 1976 (43 
        U.S.C. 1701 et seq.).
                                 <all>