110 HR 6401 IH: Renewable Energy Jobs and Security
U.S. House of Representatives
2008-06-26
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
Renewable Energy Jobs and Security
Act
.
2.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 need exists for the rapid expansion of
low and zero carbon-emitting electric generation at a far greater pace than
current levels.
(3)Distributed
electric generation is energy efficient, promotes grid stability and reduces
transmission system congestion during periods of peak demand.
(4)A
transition toward renewable energy sources brings economic benefit to consumers
by reducing their exposure to increasingly volatile fossil fuel markets.
(5)Renewable energy payments, also known as
feed-in tariffs
, are a proven mechanism for accelerating the
development of renewable energy in grid-connected areas.
(6)By guaranteeing
access to the grid and setting a favorable price per unit of power, feed-in
tariffs ensure that renewable energy is a sound long-term investment for
companies, for industry, and for individuals and thereby creates a strong
economic incentive for investing in renewable energy technologies.
(7)The
International Energy Agency, the European Commission and the United Kingdom’s
Stern Review have determined that feed-in tariff policies in Germany, Spain,
France and other European Union countries have achieved larger renewable energy
deployment at lower costs, compared with policies in other European Union
countries.
3.The purpose of this Act is to—
(1)enable the rapid
and sustainable development of distributed renewable electricity generation in
the United States;
(2)stimulate the development of new jobs and
industry in the United States;
(3)create a stable and
secure market for capital investments in renewable energy technologies;
(4)reduce air and
water pollution, related health problems and health-care expenditures;
(5)help prevent greenhouse gas concentrations
in the atmosphere from reaching levels that would cause dangerous global
temperature increases of more than 2 degrees Celsius above pre-industrial
levels;
(6)protect natural
resources in the United States;
(7)allow all citizens
to participate in renewable electricity generation;
(8)reduce the price
volatility and long term costs of electricity;
(9)place the United
States at the forefront of the global renewable energy revolution; and
(10)reduce the
dependence of the United States on foreign sources of energy.
4.Section 3 of the Federal Power Act (16
U.S.C. 794) is amended by adding the following new paragraphs at the
end:
(30)The term
renewable energy means energy generated from—
(A)solar thermal, solar photovoltaic, wind,
geothermal or marine and hydrokinetic renewable energy;
(B)biomass (as
defined in section 9001 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8101));
(C)landfill
gas;
(D)biogas derived
from farm waste; or
(E)qualified hydropower.
(31)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).
(32)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).
(33)The term
renewable energy facility means an electric energy generation unit
owned and operated by any person (including a utility) that—
(A)is placed in
service after December 31, 2008;
(B)provides
electricity directly to the electric power grid;
(C)uses renewable
energy as its sole energy source; and
(D)has a nameplate
capacity of not more than 20 megawatts.
(34)The term network upgrades
means additions or modifications to any system for the transmission or
distribution of electric energy at or beyond the point at which a generator
interconnects to the system to accommodate renewable energy generated by a
renewable energy facility and delivered to the system.
(35)(A)The term qualified
hydropower means—
(i)incremental hydropower generation that is
achieved from increased efficiency or additions of capacity made on or after
January 1, 2009, at a hydroelectric facility that was placed in service before
that date; or
(ii)additions of capacity made on or
after January 1, 2009, at an existing nonhydroelectric dam, if—
(I)the hydroelectric project installed on
the nonhydroelectric dam is licensed by the Federal Energy Regulatory
Commission and meets all other applicable environmental, licensing, and
regulatory requirements, including applicable fish passage requirements;
(II)the nonhydroelectric dam was placed in
service before the date of the enactment of this paragraph and operated for
flood control, navigation, or water supply purposes and did not produce
hydroelectric power on the date of the enactment of this paragraph; and
(III)the hydroelectric project is operated
so that the water surface elevation at any given location and time that would
have occurred in the absence of the hydroelectric project is maintained,
subject to any license requirements imposed under applicable law that change
the water surface elevation for the purpose of improving the environmental
quality of the affected waterway.
(B)The Federal Energy Regulatory
Commission shall certify if a hydroelectric project licensed at a
nonhydroelectric dam meets the criteria described in subparagraph
(A)(ii)(III).
(C)Nothing in this paragraph shall affect
the standards under which the Federal Energy Regulatory Commission issues
licenses for and regulates hydropower projects under part I of the Federal
Power
Act.
.
<enum>I</enum><header>Interconnection</header>
<section id="HF53CC1B081C24283BB259DFF5BFAC530"><enum>101.</enum><header>Federal
interconnection standards for renewable energy facilities</header><text display-inline="no-display-inline">Part II of the Federal Power Act is amended
by adding the following new section after section 210:</text>
<quoted-block display-inline="no-display-inline" id="H2DD01A9EE662463293E2F2D2034E9BE" style="OLC">
<section id="H41B5B13577194ADEA412C816CED9A798"><enum>210A.</enum><header>Expedited
Federal interconnection standards for renewable energy facilities</header>
<subsection id="H967285EA1B484AFF00BB89129EA3EA65"><enum>(a)</enum><header>Federal
standards</header><text display-inline="yes-display-inline">In order to
encourage the use of renewable energy facilities and to ensure the safety and
reliability of renewable energy facilities and transmission systems
interconnected with those facilities, within one year after the enactment of
this section, the Commission shall propose rules establishing standards for the
physical connection between—</text>
<paragraph id="H510F7259EDEA41F2ABB0FE7F848C10F7"><enum>(1)</enum><text>renewable energy
facilities; and</text>
</paragraph><paragraph id="H5E569CCD298D4DE1AA00B7232EF1AD30"><enum>(2)</enum><text>transmission
facilities of transmitting utilities subject to the jurisdiction of the
Commission under this part.</text>
</paragraph></subsection><subsection id="H0437C34ED0BB4489B1DC00687B0949F0"><enum>(b)</enum><header>Expedited
procedures</header><text display-inline="yes-display-inline">The standards
under this section shall include separate expedited procedures for
interconnecting renewable energy facilities up to 10 kilowatts and a separate
standard that expedites interconnection for renewable energy facilities up to
2000 kilowatts. In designing such expedited procedures, the Commission shall
consider model rules published by the Interstate Renewable Energy
Council.</text>
</subsection><subsection id="H0C8359EEF709472094A46B3476FD6FEC"><enum>(c)</enum><header>Final
rule</header><text>Within 2 years after the enactment of this section, and
after notice and opportunity for comment, the Commission shall promulgate, and
from time-to-time thereafter revise, final standards under this section. Such
revisions shall take into account changes in the underlying standards and
technologies. Such revisions shall be made available to State regulatory
authorities for their consideration prior to final promulgation.</text>
</subsection><subsection id="H71499179D9E24C92A100C19C5F339322"><enum>(d)</enum><header>Safety,
reliability, performance, and cost</header><text display-inline="yes-display-inline">The standards under this section shall
establish those measures for the safety and reliability of the affected
equipment and transmission systems as may be appropriate. Such standards shall
be consistent with the reliability standards under section 215 and all
applicable safety and performance standards established by the national
electrical code, the Institute of Electrical and Electronics Engineers,
Underwriters Laboratories, or the American National Standards Institute, and
the North American Electric Reliability Council, yet constitute the minimum
cost and technical burdens to the interconnecting renewable energy facility as
the Commission shall, by rule, prescribe.</text>
</subsection><subsection id="H795F8383C53E44C18CE075E3803DB3D2"><enum>(e)</enum><header>Additional
charges</header><text>The standards under this section shall prohibit the
imposition of additional charges by the owners or operators of transmission
systems for equipment or services for interconnection that are additional to
those necessary to achieve the objectives of subsection (d).</text>
</subsection><subsection id="H747577F1693248C985E6E540CABF7708"><enum>(f)</enum><header>Reliability</header><text display-inline="yes-display-inline">The rules under this section shall include
provisions respecting minimum reliability of renewable energy facilities
(including reliability of such facilities during emergencies) and rules
respecting reliability of electric energy service to be available to such
facilities from transmitting utilities and public utilities during emergencies.
Consistent with standards approved by the Commission under section 215, rules
for the purchase of electric energy from a renewable energy facility shall also
ensure that such purchases do not affect the reliability of any person
purchasing electric energy from the renewable energy facility.</text>
</subsection><subsection id="H7695688748264356A3663D8FD114EA43"><enum>(g)</enum><header>Grid
interconnection-related network upgrades</header><text>The standards under this
subsection shall provide the following:</text>
<paragraph id="H9FEB8E7CC4834905BC9FC8CD31CFCFBD"><enum>(1)</enum><text display-inline="yes-display-inline">The obligation to provide priority
interconnection for renewable energy facilities (as required under subsection
(h)) shall apply to:</text>
<subparagraph id="HC71D96A24F3041D50057D8FBC6776196"><enum>(A)</enum><text display-inline="yes-display-inline">Any transmitting utility providing
transmission service subject to the jurisdiction of the Commission to electric
utilities in a retail service territory that includes the renewable energy
facility if—</text>
<clause id="H4FD8BC09340D4FC8919CABDA00111599"><enum>(i)</enum><text>such transmitting
utility is in possession of transmission facilities technically suitable to
receive electricity from the renewable energy facility; and</text>
</clause><clause id="HFE04FA885C6747BD89002C92FCE62725"><enum>(ii)</enum><text>there is no other
transmission or distribution facility with a technically and economically more
suitable connection point.</text>
</clause></subparagraph><subparagraph id="H6D44E586FBD64F89A9B873A499D41774"><enum>(B)</enum><text display-inline="yes-display-inline">Transmission facilities shall be deemed to
be technically suitable under subparagraph (A) even if feeding in the
electricity requires the transmitting utility to upgrade its transmission
facilities at a reasonable economic expense, as determined by the Commission.
In this case, the transmitting utility shall upgrade its transmission
facilities without undue delay, if so requested by an interconnecting renewable
energy facility.</text>
</subparagraph><subparagraph id="HBA135B8E4452478AB31959F5D3BAF037"><enum>(C)</enum><text>The obligation to
upgrade the transmission facilities shall apply to all technical facilities
required for operating the transmission system and to all connecting
installations which are owned by or passed into the ownership of the
transmitting utility.</text>
</subparagraph></paragraph><paragraph id="HEC0E651DE0E34DE08E1BACFA4A3507C"><enum>(2)</enum><header>Exceptions</header><text display-inline="yes-display-inline">The standards under this section shall not
require any transmitting utility to interconnect with renewable energy
facilities or to provide priority access to available transfer capability on
the transmission system if the transmitting utility is already committed
through long-term contracts to full capacity of its load and such utility has
no ability to transmit any new generation from renewable energy facilities to
any other electric utility.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H94749B94103E4EB58FCDFAFAA0FE09E"><enum>(3)</enum><header>Costs of network
upgrades</header><text display-inline="yes-display-inline">The standards under
this section shall provide that all prudently incurred costs associated with
network upgrades to accommodate new renewable energy facilities for the
purchase and transmission of electricity produced from renewable energy
facilities shall be initially borne by the electric utility or transmitting
utility. The electric utility or transmitting utility shall be reimbursed for
such costs through the regional cost sharing mechanism under section
225.</text>
</paragraph></subsection><subsection id="H71C0BB93527348BBB32FE1AC46172331"><enum>(h)</enum><header>Priority of
orders</header><text display-inline="yes-display-inline">Any renewable energy
facility may apply to the Commission for an order requiring the interconnection
of such facility with the transmission system of any transmitting utility in
accordance with the standards under this section, and the Commission shall
issue such an order after notice and opportunity for hearing in accordance with
section 210(b). The Commission shall give priority to the consideration of
applications from renewable energy facilities under this section over
applications for orders under section 210 and shall ensure that applications by
renewable energy facilities are given priority interconnection and priority
access to available transfer capability on the transmission system over
applications from facilities that are not renewable energy facilities.</text>
</subsection><subsection id="H9B437F01792A4C7BB0B889D7C09C8778"><enum>(i)</enum><header>Interconnection
clustering</header><text display-inline="yes-display-inline">To facilitate the
objectives of subsection (h) relating to interconnection and to reduce backlogs
in the interconnection queue, the Commission may consider a clustering approach
to the interconnection of electric generation facilities with a nameplate
capacity greater than 2 megawatts. Under such interconnection clustering
procedures, requests for interconnection that are placed within succeeding
6-month periods may be eligible to be interconnected concurrently.</text>
</subsection><subsection id="H4A599366242645E8BC67C3FD041D9CEC"><enum>(j)</enum><header>Relationship to
existing law regarding interconnection</header><text display-inline="yes-display-inline">Except as otherwise provided in this
section, nothing in this section affects the application of section 210 of this
Act or section 111(d)(16) (relating to interconnection) of the Public Utility
Regulatory Policies Act of 1978. Nothing in this section shall be interpreted
as an expansion of the jurisdiction of the Commission with respect to the
facilities subject to the jurisdiction of the Commission.</text>
</subsection><subsection id="HE9926712BFFD4FCD95197074A9D4AC87"><enum>(k)</enum><header>Effective
date</header><text>This section shall take effect with respect to applications
submitted to the Commission under subsection (h) after the effective date of
regulations promulgated under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H0D9E3ED60EF543D9A016002433C2BF00"><enum>102.</enum><header>Adoption of
certain standards</header>
<subsection id="H4C952C0FC485484386068EFFFF63D3D5"><enum>(a)</enum><header>Interconnection
not subject to Federal Power Act jurisdiction</header><text display-inline="yes-display-inline">Section 113(b) of the Public Utility
Regulatory Policy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2623">16 U.S.C. 2623</external-xref>) is amended by adding the
following at the end thereof:</text>
<quoted-block display-inline="no-display-inline" id="H5A1E9A99B347487093C867E4902D5798" style="OLC">
<paragraph id="H84BDF6C5C3A342D8AF4D1CD2E247C29F"><enum>(6)</enum><header>Interconnection
standards</header><text display-inline="yes-display-inline">Each electric
utility shall adopt such standards for the interconnection with renewable
energy facilities as are necessary as to ensure that renewable energy
facilities are given priority interconnection and priority access to available
capacity on the transmission and distribution system of such utility over
electricity from facilities that do not generate electricity from renewable
energy facilities and permit any renewable energy facility to apply to the
State regulatory authority for an order requiring the interconnection of such
facility with the system of the electric utility. Such standards shall be based
on the standards promulgated by the Commission under section 210A of the
Federal Power Act. Such standards shall not affect the application of section
111(d)(15).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8E0C162B06264D0D841D99C79C031016"><enum>(b)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Section 113(a) of
such Act is amended by adding the following at the end of subsection (a):
<quote>For purposes of applying this section in the case of the standard under
paragraph (6) of subsection (b), in lieu of the two-year period referred to in
this section there shall be substituted a period of one year after the date on
which a rule is prescribed or revised by the Commission under section 210A.
</quote> .</text>
</subsection></section><enum>II</enum><header>RENEWABLE ENERGY
PAYMENTS </header>
<section id="H7BA8D60AE02E4620B4C207E5581DD027"><enum>201.</enum><header>Renewable
energy payment study and report</header>
<subsection id="H4F02B34AD1984C4A9900AEBC7529F2ED"><enum>(a)</enum><header>Definitions</header>
<paragraph id="H0FE7988E6FE146A796A6F656D51852EF"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>renewable energy
facility</term> has the meaning provided by section 3 of the Federal Power
Act.</text>
</paragraph><paragraph id="H5501C934F97A472BB145D867E0E6500"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>Commission</term> refers to
the Federal Energy Regulatory Commission.</text>
</paragraph></subsection><subsection id="H3C80ADF218F94422943D16DCC1E16CDF"><enum>(b)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 1 year
after the date of enactment of this Act, and every 2 years thereafter, the
Secretary of Energy, acting through the Lawrence Berkeley National Laboratory
and the National Renewable Energy Laboratory, shall jointly transmit to
Congress and to the Commission a report that spatially maps national renewable
energy resources and conducts cost assessments for renewable energy facility
development with respect to all available technologies. Such reports may draw
from reviews and assessments conducted pursuant to section 201 of the Energy
Policy Act of 2005. Such reports shall each include each of the
following:</text>
<paragraph id="H97F97E1CB627480BB9A5AE2BACBF11C3"><enum>(1)</enum><text>Maps of renewable
energy resource availability based on the best available data and at the
highest spatial resolution necessary to help identify the best sites for the
development of renewable energy facilities.</text>
</paragraph><paragraph id="HFC255EE4C4B947B5882B95DECCCABB70"><enum>(2)</enum><text display-inline="yes-display-inline">Recommendations for minimum tariff rates
that should be paid during each of the following 2 years to renewable energy
facility operators to provide for reasonable profits for renewable energy
facility owners (with consideration to development costs, including costs of
manufacturing, installation, operation and maintenance) pursuant to the
standard under section 215 of the Public Utility Regulatory Policies Act of
1978 (as amended by section 202 of this Act), adjusted by an appropriate annual
tariff degression, with consideration to the following:</text>
<subparagraph id="H66EC1E857335459383F780CF90665D26"><enum>(A)</enum><text>The maps described
in paragraph (1).</text>
</subparagraph><subparagraph id="HF27BEE7DC54D469EB493B7287D6B7A6"><enum>(B)</enum><text display-inline="yes-display-inline">The goal is to provide for the profitable
development of renewable energy facilities that use available commercialized
technologies and operate within regions that, on average, experience the top
30th percentile of renewable energy resource potential in the United
States.</text>
</subparagraph><subparagraph id="H61BF5C6C6B664128BC00B6AFD83CEA"><enum>(C)</enum><text display-inline="yes-display-inline">The best available scientific and
electricity market data, including data made available through reports from
amendments made by section 202 of this Act.</text>
</subparagraph><subparagraph id="H1BE929B5791D4D4880A92ED051CAE638"><enum>(D)</enum><text>The renewable
energy technology market, including advancements in research, development,
deployment and innovation.</text>
</subparagraph><subparagraph id="H95881D5ED27B4603AC751B9BFA78C28"><enum>(E)</enum><text display-inline="yes-display-inline">The percentage of renewable power
generation for each technology that can be reliably accommodated on the
electric grid.</text>
</subparagraph></paragraph><paragraph id="HE41D4C6DB91241B09BDD2004A36E6380"><enum>(3)</enum><text>Recommendations to
the Commission regarding new renewable energy technologies that may be
considered eligible for future power purchase agreements under the standard
under section 210B of the Federal Power Act, as added by section 202 of this
Act.</text>
</paragraph><paragraph id="H99AF0EA304CD409BB961256EF8100092"><enum>(4)</enum><text>Other
recommendations to the Commission and to State regulatory authorities regarding
electricity reliability, technical, economic, legal or safety considerations
that could be acted upon in order to better achieve the purposes of this
Act.</text>
</paragraph><paragraph id="H8FBD1E0796E846C99EEEEFF77C54C08"><enum>(5)</enum><text>Renewable energy
facility operators shall upon request, provide the Commission, the State
regulatory authorities, the Secretary of Energy (acting through the Lawrence
Berkeley National Laboratory and the National Renewable Energy Laboratory) any
information that may be relevant to performing their duties under this
Act.</text>
</paragraph></subsection><subsection id="HFA9030421CAD43A291653B3886ABCF6B"><enum>(c)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary of Energy such sums as may be
necessary to carry out this section.</text>
</subsection></section><section display-inline="no-display-inline" id="HEAFC19CEE57E45A6842BA540629DD955" section-type="subsequent-section"><enum>202.</enum><header>Guaranteed power
purchase agreements</header>
<subsection id="HB225BD127920447D984285623F9F771B"><enum>(a)</enum><header>Public utilities
regulated under the Federal Power Act</header><text display-inline="yes-display-inline">Part II of the Federal Power Act is amended
by adding the following new section after section 210A (as added by this
Act):</text>
<quoted-block display-inline="no-display-inline" id="HFF82A4935AA6446F949379B456EEEAE2" style="OLC">
<section id="H88D6D9C50D65409698B9131F999CD4DC"><enum>210B.</enum><header>Renewable
energy payments</header>
<subsection id="H2C5CE5FC0C3842B4ACC01ECB89372063"><enum>(a)</enum><header>Renewable energy
payment rules</header><text display-inline="yes-display-inline">Not later than
2 years after the date of enactment of the Renewable Energy Jobs and Security
Act, the Commission shall prescribe, and from time-to-time thereafter revise,
such rules as it determines necessary to encourage the purchase of electric
energy by public utilities from renewable energy facilities. The rules shall
require public utilities to offer to purchase electric energy from renewable
energy facilities in accordance with this section at uniform national rates
established pursuant to this section. Each such public utility shall purchase
electricity from renewable energy facilities on a priority basis, and each
transmitting utility (as defined in the Federal Power Act) shall transmit such
energy on a priority basis. Such rules shall be prescribed, after consideration
of recommendations made in reports under section 201 of the Renewable Energy
Jobs and Security Act, after consultation with representatives of State
regulatory agencies having ratemaking authority for electric utilities, and
after public notice and a reasonable opportunity for interested persons (and
State agencies) to submit data, views, and arguments. Such rules may not
authorize a renewable energy facility to make any sale for purposes other than
resale.</text>
</subsection><subsection id="H2DC837843BE24474007265731B00D141"><enum>(b)</enum><header>Effective
date</header><text>The rules under this section shall apply only to contracts
for the purchase and sale of electric energy from renewable energy facilities
entered into after the effective date of such rules and before the date 20
years after such effective date.</text>
</subsection><subsection id="HDA317272437947038101482700B58B4B"><enum>(c)</enum><header>Renewable energy
payment rates for purchase of power</header>
<paragraph id="HE475C7023BF94E1F9D087627FA8DCA46"><enum>(1)</enum><header>Purposes</header><text display-inline="yes-display-inline">The purposes of this subsection are
to—</text>
<subparagraph id="HE3BCB016F95749279F00E5724F5B635F"><enum>(A)</enum><text display-inline="yes-display-inline">provide for the profitable development of
renewable energy facilities that use available commercialized technologies and
operate within regions that, on average, experience the top 30th percentile of
renewable energy resource potential in the United States;</text>
</subparagraph><subparagraph id="HA08D3278A1254AA1B061EAC6AB96F0C9"><enum>(B)</enum><text>prevent excessive
profits for renewable energy facility operators;</text>
</subparagraph><subparagraph id="H4CDD39985F2647BA93F01C38549D6494"><enum>(C)</enum><text>minimize upward
pressure on renewable energy market prices; and</text>
</subparagraph><subparagraph id="HBC1F0AEAB80D48B780660026F29315F7"><enum>(D)</enum><text>prevent
unnecessary costs to ratepayers.</text>
</subparagraph></paragraph><paragraph id="HCB10B187105E4B159E8FD75C5128E8E7"><enum>(2)</enum><header>Uniform national
rates</header><text>Except as otherwise specified in this section, the rates
paid for the purchase of electric energy from renewable energy facilities under
contracts entered into under this section shall be established on a uniform
national basis by the Commission by rule. Such rates shall be—</text>
<subparagraph id="H0E28C86C648E42A49486E2D9AC009C2D"><enum>(A)</enum><text>fixed throughout
the duration of a contract extending for a period of at least 20 years;</text>
</subparagraph><subparagraph id="H4BA50A906BC8461AA8C503CA79B6B200"><enum>(B)</enum><text>no less than the
amount needed for development plus a reasonable profit, with consideration
to—</text>
<clause id="H69B10F0A5D3147D389AE270030BE8047"><enum>(i)</enum><text>the technology
used;</text>
</clause><clause id="HD96298F358D54C6800CF00A172C7B58F"><enum>(ii)</enum><text>the year the
installation is placed into service; and</text>
</clause><clause id="HC086EBCBD76D4D0200A0E7AC67505120"><enum>(iii)</enum><text>the size of the
renewable energy facility.</text>
</clause></subparagraph></paragraph><paragraph id="H1DA0BA45C7334C4E83CBC9D1736E7C77"><enum>(3)</enum><header>Rates of
return</header><text display-inline="yes-display-inline">Such rates shall be
set to provide a nominal, post-tax project internal rate of return of not less
than 10 percent after recovery of all operating and maintenance costs for
projects sited in locations with favorable renewable energy resource potential,
consistent with the purposes of this subsection.</text>
</paragraph><paragraph id="H67E12FC87778435CAD5F9E0011A55DDC"><enum>(4)</enum><header>Bonus
tariffs</header><text display-inline="yes-display-inline">Bonus rates may be
paid to provide additional incentives for each of the following
purposes:</text>
<subparagraph id="HB5CECA0C366946BB00CABF4119003BDE"><enum>(A)</enum><text>Biogas-powered
renewable energy facilities to promote electric generation from biogas derived
from farm waste.</text>
</subparagraph><subparagraph id="H3A5587E84D1B47ECAF4DA4C83DDACD1D"><enum>(B)</enum><text>Renewable energy
facility development in areas where distributed generation reduces grid
congestion and improves overall grid efficiency.</text>
</subparagraph><subparagraph id="HFC0A231970974396A4FC806DDB2100A5"><enum>(C)</enum><text display-inline="yes-display-inline">For power delivered from renewable energy
facilities on peak.</text>
</subparagraph><subparagraph id="H98E9FD30A56A4994AFFBB9745FCE9B6B"><enum>(D)</enum><text display-inline="yes-display-inline">To renewable energy facilities with onsite
energy storage capability that significantly increases the capacity factor or
availability.</text>
</subparagraph></paragraph><paragraph id="HF483C2C2003F42138CF4316161440052"><enum>(5)</enum><header>Periodic
adjustment</header><text display-inline="yes-display-inline">The Commission
shall review the rates under this subsection every 2 years and adjust those
rates applicable to prospective contracts in accordance with paragraph (2) and
in a manner that is consistent with the purposes of this subsection.</text>
</paragraph><paragraph id="H692CFEC8C7924E4F93B1E44A76CCCE1"><enum>(6)</enum><header>Degression
rates</header><text display-inline="yes-display-inline">For new facilities
commencing construction in each year after the first year for which tariffs
under this section applied to any facility, the tariffs rates paid under this
standard under this section may be reduced relative to the previous year in
accordance with annual tariff degression rates. Such degression rate shall be
specific to each technology.</text>
</paragraph><paragraph id="HE1DC4547A3004A71B7B5A9FDC7F8D98C"><enum>(7)</enum><header>Priority</header><text display-inline="yes-display-inline">The rules under the standard under this
subsection shall require each public utility to purchase and each transmitting
utility to transmit renewable energy from renewable energy facilities on a
priority basis. Such requirement shall not apply if the public utility or
transmitting utility is already committed through long-term contracts to full
capacity of its load and such utility has no ability to transmit any new
generation from renewable energy facilities to a neighboring utility.</text>
</paragraph></subsection><subsection id="H4E5EF18D6D3148788DEB1590A9008B8"><enum>(d)</enum><header>Reliability</header><text display-inline="yes-display-inline">The rules under this section shall include
provisions respecting minimum reliability of renewable energy facilities
(including reliability of such facilities during emergencies) and rules
respecting reliability of electric energy service to be available to such
facilities from public utilities during emergencies. The rules shall also
insure that such purchases do not affect the reliability of the purchasing
public utility.</text>
</subsection><subsection id="H48B878B07F96404BB5548F0144569F5B"><enum>(e)</enum><header>Standard
contracts</header><text display-inline="yes-display-inline">The Commission
shall approve a standard contract to be used in all power purchase agreements
under this section that are subject to the jurisdiction of the Commission under
this part. The contract shall include the prices paid for each kilowatt hour
generated, the duration of the contract. The Commission shall provide public
utilities subject to the jurisdiction of the Commission with standard contracts
within 18 months of the date of enactment of this subsection.</text>
</subsection><subsection id="H7BC4B30C147F42C886AF00B72E944B20"><enum>(f)</enum><header> Relationship to
other Federal and State standards, requirements, taxes, and
benefits</header><text display-inline="yes-display-inline">Except for
accelerated tax depreciation, no person who elects to sell power under a
contract under this section shall be entitled to any tax credits or deductions
associated with renewable energy production under Federal tax laws or to any
other incentives or benefits under any Federal law associated with renewable
energy. Any State or utility may provide additional incentives to promote the
deployment of renewable energy facilities and, except as provided in subsection
(g) with respect to net metering, any renewable energy facility may utilize
such benefits. No public utility making purchases of electric energy under a
contract under this section shall be exempt from any State law requiring
minimum purchase percentages of renewable energy. No renewable energy facility
making sales of renewable energy to a public utility under this section shall
be entitled to any credit or allowance for renewable energy generation under
any such State or Federal law. Any credit or allowance for renewable energy
generation needed to meet any State or Federal law requiring minimum purchases
of renewable energy shall belong to the public utility that purchases electric
energy under a contract under this section unless otherwise specified in State
or Federal law.</text>
</subsection><subsection id="HA9582E4A2F7348F6A6724F102FAE8C47"><enum>(g)</enum><header>Net
metering</header><text display-inline="yes-display-inline">If energy generated
by any renewable energy facility is eligible for net metering treatment under
State law, all energy generated by such facility shall be subject to such State
law in lieu of this section unless the owner or operator of the facility makes
an election for such electric generation to be subject to this section. For
renewable energy facilities interconnecting to public utilities within the
jurisdiction of the Commission, the election shall be submitted to the
Commission in such form and at such time as the Commission shall prescribe by
rule. The election shall include notice to the appropriate State agency
administering the State net metering program.</text>
</subsection><subsection id="HA1EBEDEC6BBD4E21944F6C002447C3C0"><enum>(h)</enum><header>Public reporting
requirements</header><text display-inline="yes-display-inline">By September 30
of each calendar year after 2009, each public utility shall publicly report to
the Energy Information Administration without undue delay the following
information recorded during the previous calendar year:</text>
<paragraph id="H8BD7E4985BEC4A05B0E0C842C8655603"><enum>(1)</enum><text display-inline="yes-display-inline">The network upgrade costs associated with
compliance with the standards under section 210A of this Act.</text>
</paragraph><paragraph id="H1793FAABC42840599FCE10BB211BFF78"><enum>(2)</enum><text>The total quantity
of electricity and the total amounts paid to renewable energy facility
operators in accordance with compliance with the rules under this
section.</text>
</paragraph><paragraph id="H2746C2AF3D4A414982ECAB4500217E"><enum>(3)</enum><text display-inline="yes-display-inline">The total quantity of electricity delivered
to by the public utility.</text>
</paragraph><paragraph id="H2049CF1AC29D4BE3A3B6D2B863C9D3D"><enum>(4)</enum><text display-inline="yes-display-inline">The total number of renewable energy
facilities of each technology and application in the area in which the public
utility supplies electric energy.</text>
</paragraph><paragraph id="HC105ADF185604F388FB9249209C571A0"><enum>(5)</enum><text display-inline="yes-display-inline">For each technology and application, the
amount of growth in capacity installed relative to the number of new
interconnections in the area in which the public utility supplies electric
energy.</text>
</paragraph><paragraph id="H08BF18F023274EBCAE6F1EC201FB9F70"><enum>(6)</enum><text display-inline="yes-display-inline">The total amount of electricity (in kWh)
generated by renewable energy facilities and from other renewable energy
sources in the area in which the public utility supplies electric
energy.</text>
</paragraph><paragraph id="HD891673411614CFBA221B2CED9BCA5"><enum>(7)</enum><text display-inline="yes-display-inline">The proportion of wind development that is
owned and operated by and for communities in the area in which the public
utility supplies electric energy.</text>
</paragraph><paragraph id="H9AA7DFA66D10484A9778CDC8223E74E8"><enum>(8)</enum><text display-inline="yes-display-inline">The proportion of solar development that is
owned and operated by customers in the area in which the public utility
supplies electric energy.</text>
</paragraph><paragraph id="H838B4183E20A40AEAC76FF568F27CC00"><enum>(9)</enum><text display-inline="yes-display-inline">The location of new renewable energy
facility development relative to population density in the area in which the
public utility supplies electric energy.</text>
</paragraph></subsection><subsection id="HE661486F7B7A42DCAA596493664B8C00"><enum>(i)</enum><header>Reports by the
Energy Information Administration</header><text display-inline="yes-display-inline">In each of the first 2 years and every 2
years thereafter after the enactment of this section, the Secretary of Energy,
acting through the Energy Information Administration, shall make public and
submit to Congress a report that shall include the number of new renewable
energy facilities in each State and the environmental benefits and effects of
the addition of those generators. There are authorized to be appropriated to
the Secretary of Energy such sums as may be necessary to carry out this
subsection.</text>
</subsection><subsection id="H102B0C0397B9491F91ACC5A929BD8BDE"><enum>(j)</enum><header>Safety and
performance standards</header><paragraph commented="no" display-inline="yes-display-inline" id="HED8CCF56FD54442FB2D22355B692CBC9"><enum>(1)</enum><text>All renewable energy
facilities entering into contract under this section shall meet all applicable
safety and performance and reliability standards established under section 215
or by the national electrical code, the Institute of Electrical and Electronics
Engineers, Underwriters Laboratories, the North American Electric Reliability
Corporation or the American National Standards Institute.</text>
</paragraph><paragraph id="HBE932A930854434DA68878FD2810D2BF" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Commission shall, after consultation
with State regulatory authorities and nonregulated utilities and after notice
and opportunity for comment, limit by regulation the imposition of additional
charges by electric suppliers and local distribution system operators for
equipment or services for safety or performance that are additional to those
necessary to meet the standards and requirements referred to in paragraph (1)
of this subsection and subsection (g)(3) of section 210A of the Federal Power
Act (relating to network upgrades).</text>
</paragraph></subsection><subsection id="H8497358112D24BFFB109B36454FCCB1"><enum>(k)</enum><header>Exemptions</header>
<paragraph id="HD8A488728EDF4D1C9300F16078A44552"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Sales of electric
energy by renewable energy facilities under this section are exempt from
regulation under other provisions of this part and from State laws and
regulations respecting the rates, or respecting the financial or organizational
regulation, of electric utilities, or from any combination of the
foregoing.</text>
</paragraph><paragraph id="H627D0AB045A94503B6F7618D48CF21DB"><enum>(2)</enum><header>Exceptions</header><text>No
renewable energy facility shall be exempt under this subsection from—</text>
<subparagraph id="H6D95DD17FE794446B4DC4027457DF92"><enum>(A)</enum><text>the provisions of
section 210, 211, or 212 of this Act or the necessary authorities for
enforcement of any such provision under this Act; or</text>
</subparagraph><subparagraph id="H6586675FC4CF42FF89D5F94673AE2BBC"><enum>(B)</enum><text>any license or
permit requirement under part I of this Act, any provision under this Act
related to such a license or permit requirement, or the necessary authorities
for enforcement of any such requirement.</text>
</subparagraph></paragraph></subsection><subsection id="H73BB6C0668E14BEA00FB17B8C0B81D3F"><enum>(l)</enum><header>Federal
contracts</header><text display-inline="yes-display-inline">No contract between
a Federal agency and any electric utility for the sale of electric energy by
such Federal agency for resale which is entered into after the date of the
enactment of this Act may contain any provision which will have the effect of
preventing the implementation of any rule under this section with respect to
such utility. Any provision in any such contract which has such effect shall be
null and
void.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1FAF3714A9334A038465DCF326339FE"><enum>(b)</enum><header>Electric
utilities not regulated by FERC</header><text>Section 113 of the Public Utility
Regulatory Policies Act of 1978 is amended as follows:</text>
<paragraph id="HFD91DE15374D4A7BB454CDEECB3EA25"><enum>(1)</enum><text>By
adding the following new paragraph at the end of subsection (b):</text>
<quoted-block display-inline="no-display-inline" id="H69FDC29A3FB1408F8B278E1F803428E3" style="OLC">
<paragraph id="H88ED2466D1FA41BC8D666C2B414BCAEB"><enum>(7)</enum><header>Standard
contracts for power purchases from renewable energy facilities</header><text display-inline="yes-display-inline">Each electric utility shall purchase
electric energy from renewable energy facilities (as defined in the Federal
Power Act) under standard contracts for a 20-year period with rates that are
the same as in the case of purchases of electric energy under contracts under
section 210B of the Federal Power Act by public utilities subject to the
jurisdiction of the Commission under that
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8C40CB317E4142C100A07828EC8C59FC"><enum>(2)</enum><text>By adding the
following at the end of subsection (a): <quote>For purposes of applying this
section in the case of the standard under paragraph (7) of subsection (b), in
lieu of the two-year period referred to in this section there shall be
substituted a period of one year after the date on which a rule is prescribed
or revised by the Commission under section 210B of the Federal Power Act.
</quote> .</text>
</paragraph></subsection></section><section id="H48896D565869413885EBD67048105B2E"><enum>203.</enum><header>Regional cost
sharing mechanism</header><text display-inline="no-display-inline">Part II of
the Federal Power Act is amended by adding the following new section at the end
thereof:</text>
<quoted-block display-inline="no-display-inline" id="H7157454D90124F56B9037F274B521C1C" style="OLC">
<section id="H6541DC4C7DB44F558C96B6EB3EBAA12D"><enum>225.</enum><header>Regional cost
sharing mechanism</header>
<subsection id="H23BC09C8C3E040EC8831BCD99EC64D3D"><enum>(a)</enum><header>Purpose</header><text display-inline="yes-display-inline">The purpose of this section is to finance
the power purchase agreements under the regulations under section 210B (and
under the corresponding standard required by section 113(b)(7) of the Public
Utility Regulatory Policies Act of 1978) and interconnection and network
upgrades referred to in section 210A (and under the corresponding standard
under section 113(b)(6) of the Public Utility Regulatory Policies Act of 1978)
by creating a cost sharing mechanism that equally distributes additional costs
of compliance with the Renewable Energy Jobs and Security Act to electricity
customers on a regional basis.</text>
</subsection><subsection id="HC8A06B1F8B60485900FF1B648903C923"><enum>(b)</enum><header>Cost
sharing</header><text display-inline="yes-display-inline">Not later than 1 year
after the date of enactment of this Act, the Commission shall, in consultation
with State regulatory authorities and nonregulated utilities, design a regional
cost redistribution mechanism that shall consist of a nonbypassable system
benefits charge payable by every end-use consumer of an electric utility to the
electric utility. Revenue from such charge shall be transferred to a national
renewable energy corporation to be referred to as the <term>RenewCorps</term>
to be established by such utilities and approved by the Commission for purposes
of this section. The Commission shall design a system benefits charge,
determine the amount of such charge, and establish a cost distribution
mechanism so as to achieve each of the following:</text>
<paragraph id="H560DCA26BEF44687967E982129C0EB2E"><enum>(1)</enum><text display-inline="yes-display-inline">Full reimbursement to electric utilities
and transmitting utilities for the costs associated with network upgrades and
interconnection (including the carrying costs of capital while awaiting
reimbursement) carried out in accordance with the standards under section 210A
and section 113(b)(6) of the Public Utility Regulatory Policies Act of 1978 and
for the additional costs of the power purchase requirements of section 210B and
section 113(b)(7) of the Public Utility Regulatory Policies Act of 1978.</text>
</paragraph><paragraph id="H99502B4A9CAE417F00F28EAA7B75FB94"><enum>(2)</enum><text display-inline="yes-display-inline">Ensure that systems benefits charges are
based on energy usage.</text>
</paragraph><paragraph id="HF4477CCE560A44590054A5091E5FC101"><enum>(3)</enum><text>Ensure that
monthly charges shall apply to customers according to projected program
costs.</text>
</paragraph></subsection><subsection id="H4B82D7577DFE4F73A96DEE29FB12F861"><enum>(c)</enum><header>Compliance with
accounting rules</header><text>RenewCorps shall comply with such accounting
rules and other rules as may be established by the Commission.</text>
</subsection><subsection id="HD684AD291D1848AE9FBD41F09E04E039"><enum>(d)</enum><header>Regional
disbursement of funds</header>
<paragraph id="H572A8212BA9B48408DA67917D04DBDC"><enum>(1)</enum><header>Reimbursement</header><text display-inline="yes-display-inline">Funds received by RenewCorps from the
systems benefits charge under this section shall be disbursed to electric
utilities and transmitting utilities to provide reimbursement for—</text>
<subparagraph id="H1149CDBC9B73486C97DA6135CC175EE3"><enum>(A)</enum><text>the costs
associated with network upgrades interconnection carried out in accordance with
the standards under section 210A and section 113(b)(6) of the Public Utility
Regulatory Policies Act of 1978;</text>
</subparagraph><subparagraph id="H168F4E447D734F8286F3BC5FDB666728"><enum>(B)</enum><text>the additional
costs of the power purchase requirements of section 210 B and section 113(b)(7)
of the Public Utility Regulatory Policies Act of 1978 to reimburse such
utilities for the full additional cost of such power purchase agreements (as
adjusted under paragraph (3)).</text>
</subparagraph></paragraph><paragraph id="HF6D810ABDD1345A49821A69DC975C957"><enum>(2)</enum><header>Quarterly
disbursement</header><text>Funds received by RenewCorps from the systems
benefits charge under this section shall be disbursed on a quarterly basis. The
Renew Corps shall distribute such revenue to electric utilities within each
region of the North American Electric Reliability Corporation (NERC) in the
United States in proportion to the revenue raised within each such
region.</text>
</paragraph><paragraph id="HAEB63ED562F04A16BBCDE608E400775D"><enum>(3)</enum><header>Avoid double
cost recovery</header><text>Reimbursements from RenewCorps to electric
utilities and transmitting utilities for costs associated with compliance with
the Renewable Energy Jobs and Security Act may not also be eligible for
recovery by any other
means.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H85A3AC25355F4A1D86626EBEB38FECBD"><enum>204.</enum><header>Consistency
with environmental laws</header><text display-inline="no-display-inline">Nothing in this Act shall be deemed to waive
any existing Federal or State environmental protection provision, including the
requirements of any of the following:</text>
<paragraph id="HFBAD47F75367449395FEC6C97CBBF8E1"><enum>(1)</enum><text>The National
Forest Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/16/472a">16 U.S.C. 472a et seq.</external-xref>).</text>
</paragraph><paragraph id="HA9B6CE3D565D4120B8D9E32294C31806"><enum>(2)</enum><text>The Endangered
Species Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/16/1531">16 U.S.C. 1531 et seq.</external-xref>).</text>
</paragraph><paragraph id="H50849E68245340D3BC46A03116C161C5"><enum>(3)</enum><text>The National
Environmental Policy Act of 1969 (<external-xref legal-doc="usc" parsable-cite="usc/42/4231">42 U.S.C. 4231 et seq.</external-xref>).</text>
</paragraph><paragraph id="H633F4B1DE1CF4470BCF0BBEF601688D1"><enum>(4)</enum><text>The Federal Water
Pollution Control Act of 1969 (<external-xref legal-doc="usc" parsable-cite="usc/33/1251">33 U.S.C. 1251 et seq.</external-xref>).</text>
</paragraph><paragraph id="H2A5E79914CFB4D8F8FB9E5FD2F5EC27"><enum>(5)</enum><text>The Federal Land
Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1701">43 U.S.C. 1701 et seq.</external-xref>).</text>
</paragraph></section>