[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5883 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5883

     To spur rapid and sustainable growth in renewable electricity 
 generation in the United States through priority interconnection and 
           renewable energy payments, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2010

Mr. Inslee (for himself, Mr. Delahunt, Mr. Honda, Ms. McCollum, and Mr. 
  Grijalva) introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
     Science and Technology and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
     To spur rapid and sustainable growth in renewable electricity 
 generation in the United States through priority interconnection and 
           renewable energy payments, 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 ``Renewable Energy Jobs and Security 
Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Electric energy produced from renewable resources helps 
        to reduce greenhouse gas emissions, 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 energy generation at a far greater 
        pace than current levels.
            (3) Distributed electric energy generation is energy 
        efficient, promotes electric grid stability, and reduces 
        transmission system congestion during periods of peak demand.
            (4) A transition toward electric energy generation from 
        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. Feed-
        in-tariff programs are also complementary to Renewable Energy 
        Standards. A renewable energy payment policy is intended to 
        make it easier for a State to meet its applicable Renewable 
        Energy Standard.
            (6) By guaranteeing access to the electric 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 compared to policies in other 
        European Union countries.
            (8) A renewable energy payment may capture cost reduction 
        due to technology efficiencies and innovation (degression).

SEC. 3. PURPOSES.

    The purposes of this Act are to--
            (1) enable the rapid and sustainable development of 
        distributed renewable electric energy generation in the United 
        States, where the quality of a renewable energy resource may be 
        naturally variable;
            (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 and 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 electric 
        energy generation;
            (8) reduce the price volatility and long-term costs of 
        electric energy;
            (9) place the United States at the forefront of the global 
        renewable energy revolution;
            (10) reduce the dependence of the United States on foreign 
        sources of energy;
            (11) achieve these purposes using a financing mechanism 
        that protects consumers from excessive or volatile electric 
        bills; and
            (12) develop renewable energy sources to support new 
        electric transportation options.

SEC. 4. DEFINITIONS.

    Section 3 of the Federal Power Act (16 U.S.C. 796) is amended by 
adding the following new paragraphs at the end:
            ``(30) Renewable energy.--The term `renewable energy' means 
        energy generated from--
                    ``(A) solar thermal, solar photovoltaic, wind, 
                geothermal or marine and hydrokinetic renewable energy;
                    ``(B) renewable biomass (as defined in section 9001 
                of the Farm Security and Rural Investment Act of 2002);
                    ``(C) landfill gas;
                    ``(D) biogas derived from farm waste; or
                    ``(E) qualified hydropower.
            ``(31) Solar thermal.--The term `solar thermal' means 
        energy derived by concentrating solar energy onto a collector 
        which then transfers that energy to a working fluid to use, 
        directly or indirectly, to operate a steam turbine system or 
        Stirling engine that generates electric energy.
            ``(32) Geothermal energy.--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).
            ``(33) Marine and hydrokinetic renewable energy.--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).
            ``(34) Renewable energy facility.--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 electric energy directly to the 
                electric power grid;
                    ``(C) uses renewable energy as its primary energy 
                source; and
                    ``(D) has a nameplate capacity of not more than 20 
                megawatts.
            ``(35) Network upgrades.--The term `network upgrades' means 
        additions or modifications to any system for the transmission 
        or distribution of electric energy to accommodate renewable 
        energy generated by a renewable energy facility and delivered 
        to the system.
            ``(36) Qualified hydropower.--(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 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 before 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 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 Commission issues licenses for and regulates 
        hydropower projects under this Part.
            ``(37) Electric energy intensive facility.--The term 
        `electric energy intensive facility' means--
                    ``(A) any entity that has a annual electric energy 
                usage greater than 10 gigawatt-hours; and
                    ``(B) has an electric energy intensity greater than 
                8 percent.
            ``(38) Electric energy intensity.--The term `electric 
        energy intensity' means the ratio of the total costs associated 
        with purchasing electric energy from a utility to the total 
        value of shipments.
            ``(39) Total value of shipments.--The term `total value of 
        shipments' has the meaning given such term by the United States 
        Census Bureau in its Annual Survey of Manufacturers.''.

                        TITLE I--INTERCONNECTION

SEC. 101. FEDERAL INTERCONNECTION STANDARDS FOR RENEWABLE ENERGY 
              FACILITIES.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding the following new section after section 210:

``SEC. 210A. EXPEDITED FEDERAL INTERCONNECTION STANDARDS FOR RENEWABLE 
              ENERGY FACILITIES.

    ``(a) Federal Standards.--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 such facilities, not later than one year after the date of 
enactment of this section, the Commission shall propose rules 
establishing standards for the physical connection between--
            ``(1) renewable energy facilities; and
            ``(2) transmission facilities of transmitting utilities 
        subject to the jurisdiction of the Commission under this Part.
    ``(b) Expedited Procedures.--The standards under this section shall 
include a separate expedited procedure, consisting of an 
interconnection request, simplified procedures, and applicable terms 
and conditions, for renewable energy facilities up to 10 kilowatts that 
use an inverter to interconnect to transmission facilities. The 
standards under this section shall also include a separate procedure 
that expedites interconnection for renewable energy facilities up to 
2000 kilowatts. The Commission shall review its current Small Generator 
Interconnection Procedure with an objective of further expediting and 
simplifying the procedures. In designing such expedited procedures, the 
Commission shall use best available Federal, State, and local 
standards.
    ``(c) Final Rule.--Not later than 90 days after the date of 
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 to consider prior to final promulgation.
    ``(d) Safety, Reliability, Performance, and Cost.--The standards 
under this section shall establish measures for the safety and 
reliability of 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. Standards 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.
    ``(e) Additional Charges.--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 
safety and performance standards under subsection (d).
    ``(f) Grid Interconnection-Related Network Upgrades.--The standards 
under this section shall provide the following:
            ``(1) The obligation to provide priority interconnection 
        for renewable energy facilities (as required under subsection 
        (g)) shall apply to:
                    ``(A) 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--
                            ``(i) such transmitting utility is in 
                        possession of transmission facilities 
                        technically suitable to receive electric energy 
                        from the renewable energy facility; and
                            ``(ii) there is no other transmission or 
                        distribution facility with a technically and 
                        economically more suitable connection point.
                    ``(B) Transmission facilities shall be deemed to be 
                technically suitable under subparagraph (A) even if 
                feeding in the electric energy requires the 
                transmitting utility to upgrade its transmission 
                facilities at a reasonable economic expense and without 
                risk to grid stability, as determined by the 
                Commission. In such a case, the transmitting utility 
                shall upgrade its transmission facilities without undue 
                delay, if so requested by the owner or operator of an 
                interconnecting renewable energy facility.
                    ``(C) 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 the 
                transmitting utility.
            ``(2) Exceptions.--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.
            ``(3) Costs of network upgrades.--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 electric 
        energy 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 224.
    ``(g) Priority of Orders.--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.
    ``(h) Interconnection Clustering.--To facilitate the objectives of 
subsection (g) 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 a 6-month period may be eligible for concurrent 
review and interconnection.
    ``(i) Relationship to Existing Law Regarding Interconnection.--
Except as otherwise provided in this section, nothing in this section 
affects the application of section 210 of this Part or section 
111(d)(15) (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.
    ``(j) Effective Date.--This section shall take effect with respect 
to applications submitted to the Commission under subsection (g) after 
the effective date of regulations promulgated under this section.''.

SEC. 102. ADOPTION OF CERTAIN STANDARDS.

    (a) Interconnection Not Subject to Federal Power Act 
Jurisdiction.--Section 113(b) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2623(b)) is amended by adding the following at 
the end thereof:
            ``(6) Interconnection standards.--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 electric energy 
        from facilities that do not generate electric energy from 
        renewable energy 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).''.
    (b) Conforming Amendments.--Section 113 of such Act is amended by 
adding the following at the end of subsection (a):
``For purposes of applying this section with respect to the standard 
under paragraph (6) of subsection (b), in lieu of the 2-year period 
referred to in this subsection 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 of the Federal Power Act.''.

                  TITLE II--RENEWABLE ENERGY PAYMENTS

SEC. 201. RENEWABLE ENERGY PAYMENT STUDY AND REPORT.

    (a) Definitions.--
            (1) The term ``renewable energy facility'' has the meaning 
        given such term in section 3 of the Federal Power Act, as 
        amended by section 4 of this Act.
            (2) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
    (b) In General.--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 National Renewable Energy Laboratory, shall transmit 
to Congress and to the Commission a report that outlines details of the 
investment market, as it relates to renewable energy project financing, 
including identification of remaining barriers to investment and 
potential policy solutions to address such barriers. Additionally, such 
a report shall include maps of national renewable energy resources and 
cost assessments for renewable energy facility development with respect 
to all available technologies. Such a report may draw from reviews and 
assessments conducted pursuant to section 201 of the Energy Policy Act 
of 2005 (42 U.S.C. 15851). Such a report shall include each of the 
following:
            (1) 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.
            (2) 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, maintenance, taxes, financing, and 
        legal expenses) adjusted by an appropriate annual tariff 
        degression, with consideration of the following:
                    (A) The maps described in paragraph (1).
                    (B) The goal 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.
                    (C) The best available scientific and electric 
                energy market data, including data made available in 
                the development of the reports under this section.
                    (D) The renewable energy technology market, 
                including advancements in research, development, 
                deployment, and innovation.
                    (E) The percentage of renewable power generation 
                for each technology that can be reliably accommodated 
                on the electric grid.
            (3) A description of the system benefits (including 
        distributed generation risk, avoidance benefits, and reduced 
        distribution and transmission costs) experienced by utilities 
        as a result of entering into a standard contract pursuant to 
        section 210B(e) of the Federal Power Act (as added by section 
        202 of this Act) or 113(b)(7) of the Public Utilities 
        Regulatory Policies Act of 1978 (as added by section 202 of 
        this Act).
            (4) Recommendations to the Commission regarding new 
        renewable energy technologies that may be considered eligible 
        for future power purchase agreements under the rules under 
        section 210B of the Federal Power Act, as added by section 202 
        of this Act.
            (5) Other recommendations to the Commission and to State 
        regulatory authorities regarding electric energy reliability, 
        supporting infrastructure (including smart grid technologies 
        and electric energy storage options) technical, economic, 
        legal, or safety considerations that may be acted upon in order 
        to better achieve the purposes of this Act.
            (6) Any other information that renewable energy facility 
        operators shall, upon request, provide to the Commission, the 
        State regulatory authorities, and the Secretary of Energy 
        (acting through the National Renewable Energy Laboratory) that 
        may be relevant in performing duties under this Act.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy such sums as may be necessary 
to carry out this section.

SEC. 202. GUARANTEED POWER PURCHASE AGREEMENTS.

    (a) Public Utilities Regulated Under the Federal Power Act.--Part 
II of the Federal Power Act is amended by adding the following new 
section after section 210A (as added by this Act):

``SEC. 210B. RENEWABLE ENERGY PAYMENTS.

    ``(a) Renewable Energy Payment Rules.--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 electric energy 
from renewable energy facilities on a priority basis, and each 
transmitting utility shall transmit such energy to the extent 
practicable 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.
    ``(b) Effective Date.--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 that is 20 years after such effective 
date.
    ``(c) Renewable Energy Payment Rates for Purchase of Power.--
            ``(1) Purposes.--The purposes of this subsection are to--
                    ``(A) provide for the development of renewable 
                energy facilities that use available commercialized 
                technologies; and
                    ``(B) set rates at a level that will--
                            ``(i) provide reasonable rates of return to 
                        the owners or operators of renewable energy 
                        facilities sited within regions that, on 
                        average, experience the top 30th percentile of 
                        a renewable energy resource potential in the 
                        United States;
                            ``(ii) prevent excessive profits for 
                        renewable energy facility owners and operators;
                            ``(iii) minimize upward pressure on 
                        renewable energy market prices; and
                            ``(iv) prevent unnecessary costs to 
                        ratepayers.
            ``(2) Uniform national rates.--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--
                    ``(A) fixed throughout the duration of a contract 
                extending for a period of at least 20 years;
                    ``(B) no less than the amount needed for 
                development plus a reasonable profit, with 
                consideration to--
                            ``(i) the renewable energy technology used;
                            ``(ii) the year the installation is placed 
                        into service; and
                            ``(iii) the size of the renewable energy 
                        facility.
            ``(3) Reasonable rates of return.--Such rates shall be set 
        to provide a nominal, post-tax project internal rate of return 
        of not less than 8 percent after recovery of all operating and 
        maintenance costs consistent with the purposes of this 
        subsection.
            ``(4) Bonus tariffs.--Bonus rates may be paid to provide 
        additional incentives for each of the following purposes:
                    ``(A) Renewable energy facility development in 
                areas where distributed generation reduces grid 
                congestion and improves overall grid efficiency.
                    ``(B) For energy delivered from renewable energy 
                facilities on peak.
                    ``(C) To renewable energy facilities with onsite 
                energy storage capability that significantly increases 
                the capacity factor or availability.
                    ``(D) To renewable energy facilities that deliver 
                electric energy combined with usable heating, cooling, 
                or a combination of both.
                    ``(E) To renewable energy facilities owned and 
                operated by American Indian, Alaskan Native, or other 
                tribal communities.
            ``(5) Periodic adjustment.--The Commission shall review the 
        rates under this subsection every 2 years and adjust such rates 
        applicable to prospective contracts in accordance with 
        paragraph (2) and in a manner that is consistent with the 
        purposes of this subsection. Such rates shall be published not 
        later than 8 months prior to the date at which they become 
        applicable.
            ``(6) Degression rates.--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 the rules under this subsection may be reduced 
        relative to the previous year in accordance with annual tariff 
        degression rates. Such degression rate shall be specific to 
        each technology. Degression rates shall be predetermined and 
        shall not apply with respect to facilities already subject to a 
        contract for a renewable energy payment.
            ``(7) Priority.--The rules under this section shall require 
        each public utility to purchase and each transmitting utility 
        to transmit renewable energy from renewable energy facilities 
        to the extent practicable 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. A public utility shall not place 
        priority on the purchase of electric energy from renewable 
        energy facilities that are owned and operated by such utility 
        over electric energy from renewable energy facilities owned and 
        operated by customers.
    ``(d) Reliability.--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.
    ``(e) Standard Contracts.--The Commission shall approve a standard 
contract to be used in all power purchase agreements under this 
section. Such contract shall include the prices paid for each kilowatt-
hour generated, including bonus tariffs, and the duration of the 
contract. In creating such contract, the Commission shall consider the 
expedited procedures outlined in section 210A(b) in order to design a 
contract that minimizes administrative burdens. The Commission shall 
provide public utilities subject to the jurisdiction of the Commission 
with standard contract not later than 18 months after the date of 
enactment of this subsection.
    ``(f) Relationship to Other Federal and State Standards, 
Requirements, Taxes, and Benefits.--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. 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.
    ``(g) Net Metering.--If electric energy generated by any renewable 
energy facility is eligible for net metering treatment under State law, 
all electric 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.
    ``(h) Public Reporting Requirements.--By September 30 of each 
calendar year after 2010, each public utility shall publicly report to 
the Energy Information Administration without undue delay the following 
information recorded during the previous calendar year:
            ``(1) The network upgrade costs associated with compliance 
        with the standards under section 210A of this Act.
            ``(2) The total quantity of electric energy generated by a 
        specific renewable energy facility and the total amount paid to 
        each such renewable energy facility operator in accordance with 
        the rules under this section.
            ``(3) The total quantity of electric energy generated by 
        each renewable energy technology and the total amounts paid to 
        renewable energy facility operators that use each such 
        renewable energy technology in accordance with the rules under 
        this section.
            ``(4) The total number of renewable energy facilities of 
        each technology in the area in which the public utility 
        supplies electric energy.
            ``(5) For each technology, 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.
            ``(6) The total amount of electric energy generated by 
        renewable energy facilities and from other renewable energy 
        sources in the area in which the public utility supplies 
        electric energy.
            ``(7) The location of new renewable energy facility 
        development relative to population density in the area in which 
        the public utility supplies electric energy.
    ``(i) Reports by the Energy Information Administration.--In each of 
the first 2 years and every 2 years thereafter after the date of 
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 such facilities. There are authorized to be 
appropriated to the Secretary of Energy such sums as may be necessary 
to carry out this subsection.
    ``(j) Exemptions.--
            ``(1) In general.--Except as provided in paragraph (2), 
        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.
            ``(2) Exceptions.--No renewable energy facility shall be 
        exempt under this subsection from--
                    ``(A) 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
                    ``(B) 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.
    ``(k) Federal Contracts.--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 subsection may contain any provision that 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.''.
    (b) Electric Utilities Not Regulated by FERC.--Section 113 of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623), as 
amended, is further amended as follows:
            (1) By adding the following new paragraph at the end of 
        subsection (b):
            ``(7) Standard contracts for power purchases from renewable 
        energy facilities.--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.''.
            (2) By adding the following at the end of subsection (a):
``For purposes of applying this section in the case of the standard 
under paragraph (7) of subsection (b), in lieu of the 2-year period 
referred to in this section there shall be substituted a period of one 
year after the date on which renewable energy payment rules are 
prescribed or revised by the Commission under section 210B of the 
Federal Power Act.''.
    (c) Federal Contracts for Renewable Energy.--Notwithstanding 
section 501(b)(1)(B) of title 40, United States Code, a contract for 
the acquisition of electric energy generated from a renewable energy 
resource for the Federal Government may be made for a period of not 
more than 20 years.

SEC. 203. REGIONAL COST SHARING MECHANISM.

    Part II of the Federal Power Act is amended by adding the following 
new section at the end thereof:

``SEC. 224. REGIONAL COST SHARING MECHANISM.

    ``(a) Purpose.--The purpose of this section is to finance the power 
purchase agreements under the rules 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 electric energy customers on 
a regional basis.
    ``(b) Cost Sharing.--Not later than 1 year after the date of 
enactment of this section, 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 `RenewCorps' 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:
            ``(1) 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 of this Act 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 of this Act and section 113(b)(7) of the Public 
        Utility Regulatory Policies Act of 1978.
            ``(2) Ensure that systems benefits charges are based on 
        energy usage.
            ``(3) Ensure that monthly charges shall apply to customers 
        according to projected program costs.
            ``(4) Ensure that monthly charges to individual households 
        is no greater than $3 per month.
            ``(5) Ensure relief, but not exemption, for electric energy 
        intensive facilities, by including a provision requiring such 
        facilities to submit an application for relief, including proof 
        of electric energy usage (such as contracts for the supply of 
        electric energy and electric energy bills for the previous 
        fiscal year) and proof of the value of shipments (by supplying 
        financial data from the previous fiscal year compiled by a 
        certified accountant).
    ``(c) Compliance With Accounting Rules.--RenewCorps shall comply 
with such accounting rules and other rules as may be established by the 
Commission.
    ``(d) Regional Disbursement of Funds.--
            ``(1) Reimbursement.--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--
                    ``(A) the costs associated with network upgrades 
                and 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; and
                    ``(B) 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 to 
                reimburse such utilities for the full additional cost 
                of such power purchase agreements (as adjusted under 
                paragraph (3)).
            ``(2) Quarterly disbursement.--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.
            ``(3) Avoid double cost recovery.--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.''.

SEC. 204. CONSISTENCY WITH ENVIRONMENTAL LAWS.

    Nothing in this Act (including the amendments made by this Act) 
shall be deemed to waive any existing Federal or State environmental 
protection provision, including the requirements of any of the 
following:
            (1) The National Forest Management Act of 1976 (16 U.S.C. 
        472a et seq.).
            (2) The Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).
            (3) The National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.).
            (4) The Federal Water Pollution Control Act (33 U.S.C. 1251 
        et seq.).
            (5) The Federal Land Policy and Management Act of 1976 (43 
        U.S.C. 1701 et seq.).
                                 <all>