[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2076 Introduced in Senate (IS)]
110th CONGRESS
1st Session
S. 2076
To amend the Federal Power Act to require the President to designate
certain geographical areas as national renewable energy zones, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 20, 2007
Mr. Reid 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 require the President to designate
certain geographical areas as national renewable energy zones, 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 ``Clean Renewable Energy and Economic
Development Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) electricity produced from renewable resources--
(A) helps to reduce emissions of greenhouse gases
and other air pollutants;
(B) enhances national energy security;
(C) conserves water and finite resources; and
(D) provides substantial economic benefits,
including job creation and technology development;
(2) the potential exists for a far greater percentage of
electricity generation in the United States to be achieved
through the use of renewable resources, as compared to the
percentage of electricity generation using renewable resources
in existence as of the date of enactment of this Act;
(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
a primary obstacle 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 water-efficient
electric generation facilities fueled by renewable energy
resources;
(6) more efficient use of existing transmission capacity,
better integration of resources, and greater investments in
distributed generation and off-grid solutions may increase the
availability of transmission and distribution capacity for
adding renewable resources and help keep ratepayer costs low;
(7) the Federal Government has not adequately invested in
or implemented an integrated approach to accelerating the
development, commercialization, and deployment of renewable
energy technologies and renewable electricity generation,
including through enhancing distributed generation or through
vehicle- and transportation-sector use; and
(8) it is in the national interest for the Federal
Government to implement policies that would enhance the
quantity of electric transmission capacity available to take
full advantage of the renewable energy resources available to
generate electricity, and to more fully integrate renewable
energy into the energy policies of the United States, and to
address the tremendous national security and global warming
challenges of the United States.
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:
``Subpart A--Regulation of Electric Utility Companies'';
and
(2) by adding at the end the following:
``Subpart B--National Renewable Energy Zones
``SEC. 231. DEFINITIONS.
``In this subpart:
``(1) Biomass.--
``(A) In general.--The term `biomass' means--
``(i) any lignin waste material that is
segregated from other waste materials and is
determined to be nonhazardous by the
Administrator of the Environmental Protection
Agency; and
``(ii) any solid, nonhazardous, cellulosic
material that is derived from--
``(I) mill residue, precommercial
thinnings, slash, brush, or
nonmerchantable material;
``(II) solid wood waste materials,
including a waste pallet, a crate,
dunnage, manufacturing and construction
wood wastes, and landscape or right-of-
way tree trimmings;
``(III) agriculture waste,
including an orchard tree crop, a
vineyard, a grain, a legume, sugar,
other crop byproducts or residues, and
livestock waste nutrients; or
``(IV) a plant that is grown
exclusively as a fuel for the
production of electricity.
``(B) Inclusions.--The term `biomass' includes
animal waste that is converted to a fuel rather than
directly combusted, the residue of which is converted
to a biological fertilizer, oil, or activated carbon.
``(C) Exclusions.--The term `biomass' does not
include--
``(i) municipal solid waste;
``(ii) paper that is commonly recycled; or
``(iii) pressure-treated, chemically-
treated, or painted wood waste.
``(2) Commission.--The term `Commission' means the Federal
Energy Regulatory Commission.
``(3) Distributed generation.--The term `distributed
generation' means--
``(A) reduced electricity consumption from the
electric grid because of use by a customer of renewable
energy generated at a customer site; and
``(B) electricity or thermal energy production from
a renewable energy resource for a customer that is not
connected to an electric grid or thermal energy source
pipeline.
``(4) Electricity consuming area.--The term `electricity
consuming area' means the area within which electric energy
would be consumed if new high-voltage electric transmission
facilities were to be constructed to access renewable
electricity in a national renewable energy zone.
``(5) Electricity from renewable energy.--The term
`electricity from renewable energy' means--
``(A) electric energy generated from solar energy,
wind, biomass, landfill gas, the ocean (including
tidal, wave, current, and thermal energy), geothermal
energy, or municipal solid waste; or
``(B) new hydroelectric generation capacity
achieved from increased efficiency, or an addition of
new capacity, at an existing hydroelectric project.
``(6) Federal transmitting utility.--The term `Federal
transmitting utility' means--
``(A) a Federal power marketing agency that owns or
operates an electric transmission facility; and
``(B) the Tennessee Valley Authority.
``(7) Fuel cell vehicle.--The term `fuel cell vehicle'
means an onroad vehicle or nonroad vehicle that uses a fuel
cell (as defined in section 803 of the Spark M. Matsunaga
Hydrogen Act of 2005 (42 U.S.C. 16152)).
``(8) Grid-enabled vehicle.--The term `grid-enabled
vehicle' means an electric drive vehicle or fuel cell vehicle
that has the ability to communicate electronically with an
electric power provider or with a localized energy storage
system with respect to charging and discharging an onboard
energy storage device, such as a battery.
``(9) High-voltage electric transmission facility.--The
term `high-voltage electric transmission facility' means an
electric transmission facility that--
``(A) is necessary for the transmission of electric
power from a national renewable energy zone to an
electricity-consuming area in interstate commerce; and
``(B) has a capacity in excess of 200 kilovolts.
``(10) Indian land.--The term `Indian land' 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 subpart--
``(i) held in trust by the United States
for the benefit of any Indian tribe or
individual; or
``(ii) 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 (42 U.S.C. 1601 et seq.).
``(11) Network upgrade.--The term `network upgrade' means
an addition, modification, or upgrade to the transmission
system of a transmission provider required at or beyond the
point at which the generator interconnects to the transmission
system of the transmission provider to accommodate the
interconnection of 1 or more generation facilities to the
transmission system of the transmission provider.
``(12) Renewable electricity connection facility.--
``(A) In general.--The term `renewable electricity
connection facility' means an electricity generation or
transmission facility that uses renewable energy
sources.
``(B) Inclusions.--The term `renewable electricity
connection facility' includes inverters, substations,
transformers, switching units, storage units and
related facilities, and other electrical equipment
necessary for the development, siting, transmission,
storage, and interconnection of electricity generated
from renewable energy sources.
``(13) Renewable energy credit.--The term `renewable energy
credit' means a unique instrument representing 1 or more units
of electricity generated from renewable energy that is
designated by a widely-recognized certification organization
approved by the Commission or the Secretary of Energy.
``(14) Renewable energy trunkline.--
``(A) In general.--The term `renewable energy
trunkline' means all transmission facilities and
equipment within a national renewable energy zone
owned, controlled, or operated by a transmission
provider that is used to deliver electricity from
renewable energy to the point at which the facility
connects to a high-voltage transmission facility,
including any modifications, additions or upgrades to
the facilities and equipment, at a voltage of 115
kilovolts or more.
``(B) Exclusion.--The term `renewable energy
trunkline' does not include a network upgrade.
``SEC. 232. DESIGNATION OF NATIONAL RENEWABLE ENERGY ZONES.
``(a) Designations.--
``(1) In general.--Except as provided in paragraph (2), not
later than 1 year after the date of enactment of this subpart,
the President shall designate as a national renewable energy
zone each geographical area that, as determined by the
President--
``(A) has the potential to generate in excess of 1
gigawatt of electricity from renewable energy, a
significant portion of which could be generated in a
rural area or on Federal land within the geographical
area;
``(B) has an insufficient level of electric
transmission capacity to achieve the potential
described in subparagraph (A); and
``(C) has the capability to contain additional
renewable energy electric generating facilities that
would generate electricity consumed in 1 or more
electricity consuming areas if there were a sufficient
level of transmission capacity.
``(2) Exclusions.--The President shall not include in any
national renewable energy zone designated under paragraph (1)
any Federal land that (as of the date of enactment of this
subpart) is designated as a wilderness study area, national
park, national monument, national wildlife refuge, or area of
critical environmental concern, if the Federal land is subject
to protective management policies that are inconsistent with
energy development.
``(b) Renewable Energy Requirements.--In making the designations
required by subsection (a), the President shall take into account
Federal and State requirements for utilities to incorporate renewable
energy as part of the load of electric generating facilities.
``(c) Consultation.--Before making any designation under subsection
(a), the President shall consult with--
``(1) the Governors of affected States;
``(2) the public;
``(3) public and private electricity and transmission
utilities and cooperatives;
``(4) public utilities commissions and regional electricity
planning organizations;
``(5) Federal and State land management and energy and
environmental agencies;
``(6) renewable energy companies;
``(7) local government officials;
``(8) renewable energy and energy efficiency interest
groups;
``(9) Indian tribes; and
``(10) environmental protection and land, water, and
wildlife conservation groups.
``(d) Recommendations.--Not sooner than 3 years after the date of
enactment of this subpart, and triennially thereafter, the Secretary of
Energy and the Federal transmitting utilities, in cooperation with the
Director of the Bureau of Land Management, the Director of the United
States Geological Survey, the Commissioner of Reclamation, the Director
of the Forest Service, the Director of the United States Fish and
Wildlife Service, and the Secretary of Defense, and after consultation
with the Governors of the States, shall recommend to the President and
Congress--
``(1) specific areas with the greatest potential for
environmentally acceptable renewable energy resource
development; and
``(2) any modifications of laws (including regulations) and
resource management plans necessary to fully achieve that
potential, including identifying improvements to permit
application processes involving military and civilian agencies.
``(e) Revision of Designations.--Based on the recommendations
received under subsection (d), the President may revise the
designations made under subsection (a), as appropriate.
``SEC. 233. ENCOURAGING CLEAN ENERGY DEVELOPMENT IN NATIONAL RENEWABLE
ENERGY ZONES.
``(a) Cost Recovery.--The Commission shall promulgate such
regulations as are necessary to ensure that a public utility
transmission provider that finances a high-voltage electric
transmission facility or other renewable electricity connection
facility located in 2 or more States and added in a national renewable
energy zone after the date of enactment of this subpart recovers all
prudently incurred costs, and a reasonable return on equity, associated
with the new transmission capacity.
``(b) Alternative Transmission Financing Mechanism.--
``(1) In general.--The Commission shall permit a renewable
energy trunkline built by a public utility transmission
provider in a national renewable energy zone to be initially
funded through a transmission charge imposed on all
transmission customers of the transmission provider 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 the transmission
operator, if the Commission finds that--
``(A) the renewable energy resources that would use
the renewable energy trunkline are remote from the grid
and load centers;
``(B) the renewable energy trunkline will likely
result in multiple individual renewable energy electric
generation projects being developed by multiple
competing developers; and
``(C) the renewable energy trunkline has at least 1
project subscribed through an executed generation
interconnection agreement with the transmission
provider and has tangible demonstration of additional
interest.
``(2) New electric generation projects.--As new electric
generation projects are constructed and interconnected to the
renewable energy trunkline, the transmission services contract
holder for the generation project shall, on a prospective
basis, pay a pro rata share of the facility costs of the
renewable energy trunkline, thus reducing the effect on the
rates of customers of the public utility transmission provider.
``(c) Federal Transmitting Utilities.--
``(1) In general.--Not later than 1 year after the
designation of a national renewable energy zone, a Federal
transmitting utility that owns or operates 1 or more electric
transmission facilities in a State with a national renewable
energy zone shall identify specific additional high-voltage or
other renewable electricity connection facilities required to
substantially increase the generation of electricity from
renewable energy in the national renewable energy zone.
``(2) Lack of private funds.--If, by the date that is 3
years after the date of enactment of this subpart, no
privately-funded entity has committed to financing (through
self-financing or through a third-party financing arrangement
with a Federal transmitting utility) to ensure the construction
and operation of a high-voltage or other renewable electricity
connection facility identified pursuant to paragraph (1) by a
specified date, the Federal transmitting utility responsible
for the identification shall finance such a transmission
facility if the Federal transmitting utility has sufficient
bonding authority under paragraph (3).
``(3) Bonding authority.--
``(A) In general.--In addition to any other
authority to issue and sell bonds, notes, and other
evidence of indebtedness, a Federal transmitting
utility may issue and sell bonds, notes, and other
evidence of indebtedness in an amount not to exceed, at
any 1 time, an aggregate outstanding balance of
$10,000,000,000, to finance the construction of
transmission facilities identified pursuant to
paragraph (1) for the principal purposes of--
``(i) increasing the generation of
electricity from renewable energy; and
``(ii) conveying that electricity to an
electricity consuming area.
``(B) Recovery of costs.--A Federal transmitting
utility shall recover the costs of renewable
electricity connection facilities financed pursuant to
paragraph (2) from entities using the transmission
facilities over a period of 50 years.
``(C) Nonliability of certain customers.--
Individuals and entities that, as of the date of
enactment of this subpart, are customers of a Federal
transmitting utility shall not be liable for the costs,
in the form of increased rates charged for electricity
or transmission, of renewable electricity connection
facilities constructed pursuant to this section, except
to the extent the customers are treated in a manner
similar to all other users of the renewable electricity
connection facilities.
``(d) Operation of High-Voltage Transmission Lines Using Renewable
Energy Resources.--
``(1) Public utilities financing limitation.--The
regulations promulgated pursuant to this section shall, to the
maximum extent practicable, ensure that not less than 75
percent of the capacity of any high-voltage transmission lines
financed pursuant to subsection (c) is used for electricity
from renewable energy.
``(2) Non-public utilities access limitation.--
Notwithstanding section 368 of the Energy Policy Act of 2005
(42 U.S.C. 15926), the Commission shall promulgate regulations
to ensure, to the maximum extent practicable, that not less
than 75 percent of the capacity of high-voltage transmission
facilities sited primarily or partially on Federal land and
constructed after the date of enactment of this subpart is used
for electricity from renewable energy.
``SEC. 234. FEDERAL POWER MARKETING AGENCIES.
``(a) Promotion of Renewable Energy and Energy Efficiency.--Each
Federal transmitting utility shall--
``(1) identify and take steps to promote energy
conservation and renewable energy electric resource development
in the regions served by the Federal transmitting utility;
``(2) use the purchasing power of the Federal transmitting
utility to acquire, on behalf of the Federal Government,
electricity from renewable energy and renewable energy credits
in sufficient quantities to meet the requirements of section
203 of the Energy Policy Act of 2005 (42 U.S.C. 15852); and
``(3) identify opportunities to promote the development of
facilities generating electricity from renewable energy on
Indian land.
``(b) Wind Integration Programs.--The Bonneville Power
Administration and the Western Area Power Administration shall each
establish a program focusing on the improvement of the integration of
wind energy into the transmission grids of those Administrations
through the development of transmission products, including through the
use of Federal hydropower resources, that--
``(1) take into account the intermittent nature of wind
electric generation; and
``(2) do not impair electric reliability.
``(c) Solar Integration Program.--Each of the Federal Power
Administrations and the Tennessee Valley Authority shall establish a
program to carry out projects focusing on the integration of solar
energy, through photovoltaic concentrating solar systems and other
forms and systems, into the respective transmission grids and into
remote and distributed applications in the respective service
territories of the Federal Power Administrations and Tennessee Valley
Authority, that--
``(1) take into account the solar energy cycle;
``(2) maximize the use of Federal land for generation or
energy storage, where appropriate; and
``(3) do not impair electric reliability.
``(d) Geothermal Integration Program.--The Bonneville Power
Administration and the Western Area Power Administration shall
establish a joint program to carry out projects focusing on the
development and integration of geothermal energy resources into the
respective transmission grids of the Bonneville Power Administration
and the Western Area Power Administration, as well as non-grid,
distributed applications in those service territories, including
projects combining geothermal energy resources with biofuels production
or other industrial or commercial uses requiring process heat inputs,
that--
``(1) maximize the use of Federal land for the projects and
activities;
``(2) displace fossil fuel baseload generation or petroleum
imports; and
``(3) improve electric reliability.
``(e) Renewable Electricity and Energy Security Projects.--
``(1) In general.--The Federal transmitting utilities,
shall, in consultation with the Commission, the Secretary, the
National Association of Regulatory Utility Commissioners, and
such other individuals and entities as are necessary, undertake
geographically diverse projects within the respective service
territories of the utilities to acquire and demonstrate grid-
enabled and nongrid-enabled plug-in electric and hybrid
electric vehicles and related technologies as part of their
fleets of vehicles.
``(2) Increase in renewable energy use.--To the maximum
extent practicable, each project conducted pursuant to any of
subsections (b) through (d) shall include a component to
develop vehicle technology, utility systems, batteries, power
electronics, or such other related devices as are able to
substitute, as the main fuel source for vehicles,
transportation-sector petroleum consumption with electricity
from renewable energy sources.
``SEC. 235. RELATIONSHIP TO OTHER LAWS.
``Nothing in this subpart supersedes or affects any Federal
environmental, public health or public land protection, or historic
preservation law, including--
``(1) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
``(2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.); and
``(3) the National Historic Preservation Act (16 U.S.C. 470
et seq.).''.
(b) Transmission Cost Allocation.--Section 206 of the Federal Power
Act (16 U.S.C. 824e) is amended by adding at the end the following:
``(f) Transmission Cost Allocation.--
``(1) In general.--Not later than 180 days after the date
on which the President designates an area as a national
renewable energy zone under section 232, the State utility
commissions or other appropriate bodies having jurisdiction
over the public utilities providing service in the national
renewable energy zone or an adjacent electricity consuming area
may jointly propose to the Commission a cost allocation plan
for high-voltage electric transmission facilities built by a
public utility transmission provider that would serve the
electricity consuming area.
``(2) Approval.--The Commission may approve a plan proposed
under paragraph (1) if the Commission determines that--
``(A) 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
``(B) the plan would not unduly inhibit the
development of renewable energy electric generation
projects.
``(3) Cost allocation.--Unless a plan is approved by the
Commission under paragraph (2), the Commission shall fairly
allocate the costs of new high-voltage electric transmission
facilities built in the area by 1 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.
``(4) Federal transmitting utility.--Nothing in this
subsection expands, directly or indirectly, the jurisdiction of
the Commission with respect to any Federal transmitting
utility.''.
(c) Conforming Amendments.--
(1) Section 3 of the Federal Power Act (42 U.S.C. 796) is
amended by adding at the end the following:
``(30) Electric drive vehicle.--
``(A) In general.--The term `electric drive
vehicle' means a vehicle that uses--
``(i) an electric motor for all or part of
the motive power of the vehicle; and
``(ii) off-board electricity wherever
practicable.
``(B) Inclusions.--The term `electric drive
vehicle' includes--
``(i) a battery electric vehicle;
``(ii) a plug-in hybrid electric vehicle;
and
``(iii) a plug-in hybrid fuel cell
vehicle.''.
(2) Subpart A of part II of the Federal Power Act (as
redesignated by subsection (a)) is amended--
(A) in the heading of section 201, by striking
``part'' and inserting ``subpart''; and
(B) by striking ``this Part'' each place it appears
and inserting ``this subpart''.
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