1.This Act may be cited as
the Clean Renewable Energy and
Economic Development Act
.
2.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.
3.National
renewable energy zones
(a)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:
ARegulation of
electric utility
companies
;
and(2)by adding at the
end the following:
BNational
renewable energy zones
231.In this subpart:
(1)
(A)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)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)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)The
term Commission means the Federal Energy Regulatory
Commission.
(3)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 areaThe 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 energyThe 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 utilityThe 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)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)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 facilityThe 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)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)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)The term renewable electricity connection
facility means an electricity generation or transmission facility that
uses renewable energy sources.
(B)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)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)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)The
term renewable energy trunkline does not include a network
upgrade.
232.Designation of
national renewable energy zones
(a)
(1)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)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 requirementsIn 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)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)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)Based on the recommendations received under
subsection (d), the President may revise the designations made under subsection
(a), as appropriate.
233.Encouraging
clean energy development in national renewable energy zones
(a)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)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 projectsAs 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)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)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)
(A)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)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 customersIndividuals 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 limitationThe 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 limitationNotwithstanding 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.
234.Federal power
marketing agencies
(a)Promotion of
renewable energy and energy efficiencyEach 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 programsThe 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 programEach 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 programThe 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)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 useTo 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.
235.Relationship
to other lawsNothing 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 allocationSection 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)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)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)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 utilityNothing in this subsection expands, directly
or indirectly, the jurisdiction of the Commission with respect to any Federal
transmitting
utility.
.
(c)
(1)Section 3 of the
Federal Power Act (42 U.S.C. 796) is amended by adding at the end the
following:
(30)
(A)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)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
.