[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''.
                                 <all>