1.This Act may be cited as the
Renewable Energy Jobs and Security
Act
.
2.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).
3.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.
4.Section 3 of the Federal Power Act (16
U.S.C. 796) is amended by adding the following new paragraphs at the
end:
(30)The term renewable energy means energy
generated from—
(A)solar thermal,
solar photovoltaic, wind, geothermal or marine and hydrokinetic renewable
energy;
(B)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)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)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 energyThe 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 facilityThe 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)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)(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 facilityThe 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
intensityThe 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)The term total value of shipments has the
meaning given such term by the United States Census Bureau in its Annual Survey
of
Manufacturers.
.
<enum>I</enum><header>INTERCONNECTION</header>
<section id="H8D6278CB5812421E8CFEA82ADF4FAFF8"><enum>101.</enum><header>Federal
interconnection standards for renewable energy facilities</header><text display-inline="no-display-inline">Part II of the Federal Power Act (16 U.S.C.
824 et seq.) is amended by adding the following new section after section
210:</text>
<quoted-block id="H2582BDD610B04A3BB4DEB33F4BD426F3" style="OLC">
<section id="HCA86027D80CD4C7CB5A111A00F3CE7F8"><enum>210A.</enum><header>Expedited
Federal interconnection standards for renewable energy facilities</header>
<subsection id="H2BD75546DA17496FBD27FF1C79A358AA"><enum>(a)</enum><header>Federal
Standards</header><text>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—</text>
<paragraph id="H7371B65D488D4F819A4080E25D13D910"><enum>(1)</enum><text>renewable energy
facilities; and</text>
</paragraph><paragraph id="H2650AC4C001B4E42B2187552430D3E61"><enum>(2)</enum><text>transmission
facilities of transmitting utilities subject to the jurisdiction of the
Commission under this Part.</text>
</paragraph></subsection><subsection commented="no" id="H3B7AAC392F3744FAA54852896145EF43"><enum>(b)</enum><header>Expedited
Procedures</header><text>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.</text>
</subsection><subsection id="H92F097435F5C4F8ABAF5BDD5E4E2D8B6"><enum>(c)</enum><header>Final
Rule</header><text>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.</text>
</subsection><subsection id="H2BBCF90AEB2A4E589B3DF2E82422A9A2"><enum>(d)</enum><header>Safety,
Reliability, Performance, and Cost</header><text>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.</text>
</subsection><subsection id="HB4795B93CAB64D31A96405307C0B2472"><enum>(e)</enum><header>Additional
Charges</header><text>The standards under this section shall prohibit the
imposition of additional charges by the owners or operators of transmission
systems for equipment or services for interconnection that are additional to
those necessary to achieve the safety and performance standards under
subsection (d).</text>
</subsection><subsection commented="no" id="H8F948CEBF3C84037AB53B14DCB35C4FF"><enum>(f)</enum><header>Grid
Interconnection-Related Network Upgrades</header><text>The standards under this
section shall provide the following:</text>
<paragraph commented="no" id="H54FDC3A66E9344CDA85353299D68B924"><enum>(1)</enum><text>The obligation to
provide priority interconnection for renewable energy facilities (as required
under subsection (g)) shall apply to:</text>
<subparagraph commented="no" id="H3884DF16F97647A0B432718C451C282C"><enum>(A)</enum><text>Any transmitting
utility providing transmission service subject to the jurisdiction of the
Commission to electric utilities in a retail service territory that includes
the renewable energy facility if—</text>
<clause commented="no" id="HDE3EF4C1490F45359556153DC1D74D22"><enum>(i)</enum><text>such transmitting
utility is in possession of transmission facilities technically suitable to
receive electric energy from the renewable energy facility; and</text>
</clause><clause commented="no" id="HABB111CBABF14DAD9F6D2BDB2E80CE20"><enum>(ii)</enum><text>there is no other
transmission or distribution facility with a technically and economically more
suitable connection point.</text>
</clause></subparagraph><subparagraph commented="no" id="HD87E69FE02E04676B9F3BB10E53BC991"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" id="HE0EB8200A5394B27BC670269869F2CCF"><enum>(C)</enum><text>The obligation to
upgrade the transmission facilities shall apply to all technical facilities
required for operating the transmission system and to all connecting
installations which are owned by the transmitting utility.</text>
</subparagraph></paragraph><paragraph commented="no" id="H38C1376B13CD40FEB4B5DCB6E1D4D88C"><enum>(2)</enum><header>Exceptions</header><text>The
standards under this section shall not require any transmitting utility to
interconnect with renewable energy facilities or to provide priority access to
available transfer capability on the transmission system if the transmitting
utility is already committed through long-term contracts to full capacity of
its load and such utility has no ability to transmit any new generation from
renewable energy facilities to any other electric utility.</text>
</paragraph><paragraph commented="no" id="HEF3AB7CD6AC74B349B8E52F80FE848E1"><enum>(3)</enum><header>Costs of network
upgrades</header><text>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.</text>
</paragraph></subsection><subsection id="H3C6F9D277F4C49D29FA9B6FDDFCEF6C8"><enum>(g)</enum><header>Priority of
Orders</header><text>Any renewable energy facility may apply to the Commission
for an order requiring the interconnection of such facility with the
transmission system of any transmitting utility in accordance with the
standards under this section, and the Commission shall issue such an order
after notice and opportunity for hearing in accordance with section 210(b). The
Commission shall give priority to the consideration of applications from
renewable energy facilities under this section over applications for orders
under section 210 and shall ensure that applications by renewable energy
facilities are given priority interconnection and priority access to available
transfer capability on the transmission system over applications from
facilities that are not renewable energy facilities.</text>
</subsection><subsection id="H6482A3A87BAF4920AB2C506E7101B0B9"><enum>(h)</enum><header>Interconnection
Clustering</header><text>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.</text>
</subsection><subsection id="HD161BA826EC1473BA67422251331F4EE"><enum>(i)</enum><header>Relationship to
Existing Law Regarding Interconnection</header><text>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.</text>
</subsection><subsection id="H4855FE27E7FA4112AD7D01D027D1942A"><enum>(j)</enum><header>Effective
Date</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HE05D432A01414BACA98FA3F627A010A7"><enum>102.</enum><header>Adoption of
certain standards</header>
<subsection id="HCA4FD6990A0F41BE906C0613974D1AED"><enum>(a)</enum><header>Interconnection
Not Subject to Federal Power Act Jurisdiction</header><text>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:</text>
<quoted-block id="HC8CC1D60A86941DABBD4C2976AA7DB9E" style="OLC">
<paragraph id="HC38987CC98BD4A6494CAEFD37E1DCF35"><enum>(6)</enum><header>Interconnection
standards</header><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9E924331898E4FAFA8B2FD8F800D960C"><enum>(b)</enum><header>Conforming
Amendments</header><text>Section 113 of such Act is amended by adding the
following at the end of subsection (a):</text>
<quoted-block display-inline="no-display-inline" id="H3F7D327D18284B4F9E1A05ACB5B0EE76" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>II</enum><header>RENEWABLE ENERGY
PAYMENTS</header>
<section id="H220635F0A4C94A128AA948883524F4BF"><enum>201.</enum><header>Renewable
energy payment study and report</header>
<subsection id="HD81D9E71AB5F43A7ABAA57FC3ACB779A"><enum>(a)</enum><header>Definitions</header>
<paragraph id="HC49A542F9B334F258CEAED2BB0DD019F"><enum>(1)</enum><text>The term
<term>renewable energy facility</term> has the meaning given such term in
section 3 of the Federal Power Act, as amended by section 4 of this Act.</text>
</paragraph><paragraph id="HC1A3AEF12D4C4EFAA35F1494B8CB10D0"><enum>(2)</enum><text>The term
<term>Commission</term> means the Federal Energy Regulatory Commission.</text>
</paragraph></subsection><subsection commented="no" id="HCA71FE9A4DC04ADD861F17EEACB3CCBE"><enum>(b)</enum><header>In
General</header><text>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:</text>
<paragraph commented="no" id="H5745C487478746C9A03365FC74E6CAA1"><enum>(1)</enum><text>Maps of renewable
energy resource availability based on the best available data and at the
highest spatial resolution necessary to help identify the best sites for the
development of renewable energy facilities.</text>
</paragraph><paragraph commented="no" id="H57D51EC4AC8944DAAF7A3B7E35DC0944"><enum>(2)</enum><text>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:</text>
<subparagraph commented="no" id="HD1FF007049464650BB1AE431788BF157"><enum>(A)</enum><text>The maps described
in paragraph (1).</text>
</subparagraph><subparagraph commented="no" id="H5AC5601924D14E57859619593E7146F3"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" id="H99E67D0C496B41EBB98383D3EEB7119F"><enum>(C)</enum><text>The best available
scientific and electric energy market data, including data made available in
the development of the reports under this section.</text>
</subparagraph><subparagraph commented="no" id="H4B83B422102846C49422E33913FD07D3"><enum>(D)</enum><text>The renewable
energy technology market, including advancements in research, development,
deployment, and innovation.</text>
</subparagraph><subparagraph commented="no" id="HFB713E83FFAF4CA58D7600AE4C98C918"><enum>(E)</enum><text>The percentage of
renewable power generation for each technology that can be reliably
accommodated on the electric grid.</text>
</subparagraph></paragraph><paragraph commented="no" id="HBC98BFED0E344939A058B6BDCC34F11C"><enum>(3)</enum><text>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).</text>
</paragraph><paragraph commented="no" id="HC92A7017E4BD42DEB1BDA8619D90D8FB"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph commented="no" id="H2BDDA9E1B0E54C22B7EC6EBE0E5F78F4"><enum>(5)</enum><text>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.</text>
</paragraph><paragraph commented="no" id="HC9E4604DCB434A4F84DB577F3C7638E2"><enum>(6)</enum><text>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.</text>
</paragraph></subsection><subsection id="HFB3E5D0EC1874F0B942FBEE1AEB3C5B7"><enum>(c)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated to the
Secretary of Energy such sums as may be necessary to carry out this
section.</text>
</subsection></section><section id="H2F92871183C3449D8A286042D07AE8D0"><enum>202.</enum><header>Guaranteed
power purchase agreements</header>
<subsection id="H1F7383DBF78E40279E2FF20BACAC5DBD"><enum>(a)</enum><header>Public Utilities
Regulated Under the Federal Power Act</header><text>Part II of the Federal
Power Act is amended by adding the following new section after section 210A (as
added by this Act):</text>
<quoted-block id="HF78118656AC64A22960760E5CA127B0B" style="OLC">
<section id="H9CAA0286C0FE476297C09D97368BE2BF"><enum>210B.</enum><header>Renewable
energy payments</header>
<subsection id="HA287AFB3EC96409AACB4F65EB76F2FF6"><enum>(a)</enum><header>Renewable Energy
Payment Rules</header><text>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.</text>
</subsection><subsection id="H98799717EC5A49F68F24ABCFEA959F6D"><enum>(b)</enum><header>Effective
Date</header><text>The rules under this section shall apply only to contracts
for the purchase and sale of electric energy from renewable energy facilities
entered into after the effective date of such rules and before the date that is
20 years after such effective date.</text>
</subsection><subsection id="HB90FEC413A1B4FE7A6403F0D2B9D351C"><enum>(c)</enum><header>Renewable Energy
Payment Rates for Purchase of Power</header>
<paragraph id="H6F9264EDF3C0401EB1E29E4D8D30B7F2"><enum>(1)</enum><header>Purposes</header><text>The
purposes of this subsection are to—</text>
<subparagraph id="H6D2E5ACFA8DE4E769D57AD805FFD3205"><enum>(A)</enum><text>provide for the
development of renewable energy facilities that use available commercialized
technologies; and</text>
</subparagraph><subparagraph id="HDB24320873EC4958BE0A2A68621ED458"><enum>(B)</enum><text>set rates at a
level that will—</text>
<clause id="H65ABCA62C6324BBA953BA7CAFDB1B7AF"><enum>(i)</enum><text>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;</text>
</clause><clause id="H9C04E96AE0FF4632AD4A9BDC46A82906"><enum>(ii)</enum><text>prevent excessive
profits for renewable energy facility owners and operators;</text>
</clause><clause id="H75E12622DF824E3199AC0EB6DD97566A"><enum>(iii)</enum><text>minimize upward
pressure on renewable energy market prices; and</text>
</clause><clause id="HECB1D45CCBB94BACA1E925BE8D707B8F"><enum>(iv)</enum><text>prevent
unnecessary costs to ratepayers.</text>
</clause></subparagraph></paragraph><paragraph id="H73E2FFFD53F54682BEBB851AACA7E1CC"><enum>(2)</enum><header>Uniform national
rates</header><text>Except as otherwise specified in this section, the rates
paid for the purchase of electric energy from renewable energy facilities under
contracts entered into under this section shall be established on a uniform
national basis by the Commission by rule. Such rates shall be—</text>
<subparagraph id="HAE9DA5191BFE4D768607143945D99250"><enum>(A)</enum><text>fixed throughout
the duration of a contract extending for a period of at least 20 years;</text>
</subparagraph><subparagraph id="H75AA0CC5755244148C4A517F566B36D0"><enum>(B)</enum><text>no less than the
amount needed for development plus a reasonable profit, with consideration
to—</text>
<clause id="HA3A69F93AC764DF6AE0A673FC974DD4F"><enum>(i)</enum><text>the renewable
energy technology used;</text>
</clause><clause id="H316994AEC21F4D38A8AAB650B5DE9DBB"><enum>(ii)</enum><text>the year the
installation is placed into service; and</text>
</clause><clause id="H72A45832E28A4DC88CD1A82927673642"><enum>(iii)</enum><text>the size of the
renewable energy facility.</text>
</clause></subparagraph></paragraph><paragraph id="H40C2005C221E40F08F8DA118BA86F9B2"><enum>(3)</enum><header>Reasonable rates
of return</header><text>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.</text>
</paragraph><paragraph id="HF8FB035BAF7F4B61B66136EAE75E02B1"><enum>(4)</enum><header>Bonus
tariffs</header><text>Bonus rates may be paid to provide additional incentives
for each of the following purposes:</text>
<subparagraph id="H20A9DEE29F224098877149E737E45AA2"><enum>(A)</enum><text>Renewable energy
facility development in areas where distributed generation reduces grid
congestion and improves overall grid efficiency.</text>
</subparagraph><subparagraph id="HAFA629308F294869A86704174628BE99"><enum>(B)</enum><text>For energy
delivered from renewable energy facilities on peak.</text>
</subparagraph><subparagraph id="HA3A9733805A0460DB8E54F56ED389D0D"><enum>(C)</enum><text>To renewable
energy facilities with onsite energy storage capability that significantly
increases the capacity factor or availability.</text>
</subparagraph><subparagraph commented="no" id="HA61621664E554A51AEE14D04DBEFB903"><enum>(D)</enum><text>To renewable
energy facilities that deliver electric energy combined with usable heating,
cooling, or a combination of both.</text>
</subparagraph><subparagraph commented="no" id="H313E3E7DB8414B079DACBADAB4DE66E2"><enum>(E)</enum><text>To renewable
energy facilities owned and operated by American Indian, Alaskan Native, or
other tribal communities.</text>
</subparagraph></paragraph><paragraph id="H2BADDD69EF654A96AAC59F7CCC42A5B5"><enum>(5)</enum><header>Periodic
adjustment</header><text>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.</text>
</paragraph><paragraph id="HACFD2AE53DA34E8A933A89A0A8BC86D9"><enum>(6)</enum><header>Degression
rates</header><text display-inline="yes-display-inline">For new facilities
commencing construction in each year after the first year for which tariffs
under this section applied to any facility, the tariffs rates paid under 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.</text>
</paragraph><paragraph commented="no" id="H31140E570E9C47E2BB02E67369BEFCCA"><enum>(7)</enum><header>Priority</header><text>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.</text>
</paragraph></subsection><subsection id="H9BAFE26049FF44A58AF6E2A8DE2D85FB"><enum>(d)</enum><header>Reliability</header><text>The
rules under this section shall include provisions respecting minimum
reliability of renewable energy facilities (including reliability of such
facilities during emergencies) and rules respecting reliability of electric
energy service to be available to such facilities from public utilities during
emergencies. The rules shall also insure that such purchases do not affect the
reliability of the purchasing public utility.</text>
</subsection><subsection commented="no" id="HF5514FC2374D4D678BC1479CAEBD7FF5"><enum>(e)</enum><header>Standard
Contracts</header><text>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.</text>
</subsection><subsection id="HCDA8B94F72E443E5B292782A550E4EC1"><enum>(f)</enum><header>Relationship to
Other Federal and State Standards, Requirements, Taxes, and
Benefits</header><text>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.</text>
</subsection><subsection id="HE06D63D2DF5D4E6C87D52ECBDC73A401"><enum>(g)</enum><header>Net
Metering</header><text>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.</text>
</subsection><subsection id="H04C62F4370E7420F87CC84D5C1940ADA"><enum>(h)</enum><header>Public Reporting
Requirements</header><text>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:</text>
<paragraph id="HEA5DB32DDD8D469BBF145BE99E3A6C04"><enum>(1)</enum><text>The network
upgrade costs associated with compliance with the standards under section 210A
of this Act.</text>
</paragraph><paragraph id="H850118E4FC1F4253B6F1F775DD288137"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H55DE6A73CB9B4D60A5D2984741FAD74F"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="HE865B4EAEA4B4347AD4883BDE6E28A2B"><enum>(4)</enum><text>The total number
of renewable energy facilities of each technology in the area in which the
public utility supplies electric energy.</text>
</paragraph><paragraph id="HFCA9CCFCE2F94B3FA4E82BEFB4B7E3B5"><enum>(5)</enum><text>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.</text>
</paragraph><paragraph id="HDED413B9B06742469EA6CEB72D4D6357"><enum>(6)</enum><text>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.</text>
</paragraph><paragraph id="H6F7D77DA21FD4C3A906794B98D70029B"><enum>(7)</enum><text>The location of
new renewable energy facility development relative to population density in the
area in which the public utility supplies electric energy.</text>
</paragraph></subsection><subsection id="H28D5830844FA4AD885C556CF6B32486C"><enum>(i)</enum><header>Reports by the
Energy Information Administration</header><text>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.</text>
</subsection><subsection id="H10822637F9514B02B4850C9EB116E9B3"><enum>(j)</enum><header>Exemptions</header>
<paragraph id="HA08E01F13E2847088E909D1F41F0611D"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H5D66A1BAAD5F4DF18AEE315619D7513B"><enum>(2)</enum><header>Exceptions</header><text>No
renewable energy facility shall be exempt under this subsection from—</text>
<subparagraph id="HA375000B60E6405EBF13468EA796A259"><enum>(A)</enum><text>the provisions of
section 210, 211, or 212 of this Act or the necessary authorities for
enforcement of any such provision under this Act; or</text>
</subparagraph><subparagraph id="HEBA9F98D6E2941CB8D80CC954E730C88"><enum>(B)</enum><text>any license or
permit requirement under part I of this Act, any provision under this Act
related to such a license or permit requirement, or the necessary authorities
for enforcement of any such requirement.</text>
</subparagraph></paragraph></subsection><subsection id="H827B0955EFC94861A1A64455329BE2E4"><enum>(k)</enum><header>Federal
Contracts</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H28A3717E56DB4D0987C7F1A9A8394AAD"><enum>(b)</enum><header>Electric
Utilities Not Regulated by FERC</header><text display-inline="yes-display-inline">Section 113 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623), as amended, is further
amended as follows:</text>
<paragraph id="HADD9AB7D79C34D6EA04F485C9DB8AFEB"><enum>(1)</enum><text>By adding the
following new paragraph at the end of subsection (b):</text>
<quoted-block id="H910698FAD69E45AC92309DA8BEDF2304" style="OLC">
<paragraph id="H85B68DEF367149A99A304B50BFBDCF97"><enum>(7)</enum><header>Standard
contracts for power purchases from renewable energy
facilities</header><text>Each electric utility shall purchase electric energy
from renewable energy facilities (as defined in the Federal Power Act) under
standard contracts for a 20-year period with rates that are the same as in the
case of purchases of electric energy under contracts under section 210B of the
Federal Power Act by public utilities subject to the jurisdiction of the
Commission under that Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1BC58DEAB65042F483D59AA88DE9457A"><enum>(2)</enum><text>By adding the
following at the end of subsection (a):</text>
<quoted-block display-inline="no-display-inline" id="H920D4ECE637F4C258FB0B1A405BB9080" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2C768DFBF1264D9DA46E95ED1E3C83B9"><enum>(c)</enum><header>Federal
contracts for renewable energy</header><text>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.</text>
</subsection></section><section id="H83E25FC5B6C049EFB4F8AC553EC21A57"><enum>203.</enum><header>Regional cost
sharing mechanism</header><text display-inline="no-display-inline">Part II of
the Federal Power Act is amended by adding the following new section at the end
thereof:</text>
<quoted-block id="HC224484A5DFF4117875B0E097EF7AC7D" style="OLC">
<section id="H0B7D91222A1E4288A698EF96C084F557"><enum>224.</enum><header>Regional cost
sharing mechanism</header>
<subsection id="H8C78A7953BE14CA595DB61352E06CE02"><enum>(a)</enum><header>Purpose</header><text>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.</text>
</subsection><subsection id="H0A356CDE8F074E698CC2CF4418735B8E"><enum>(b)</enum><header>Cost
Sharing</header><text>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 <quote>RenewCorps</quote> to be
established by such utilities and approved by the Commission for purposes of
this section. The Commission shall design a system benefits charge, determine
the amount of such charge, and establish a cost distribution mechanism so as to
achieve each of the following:</text>
<paragraph id="H9F158D76CFD34E729AFEC9112726D13C"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H45FB524B4EDF4FBEA2F2F66A7D66D9BD"><enum>(2)</enum><text>Ensure that
systems benefits charges are based on energy usage.</text>
</paragraph><paragraph id="H153B035F8052402E9643F97EDA9BD233"><enum>(3)</enum><text>Ensure that
monthly charges shall apply to customers according to projected program
costs.</text>
</paragraph><paragraph id="H46DFB09CE9C84FBEBF7CBD72BF999225"><enum>(4)</enum><text>Ensure that
monthly charges to individual households is no greater than $3 per
month.</text>
</paragraph><paragraph commented="no" id="HD62DC208EBE544598D49248F0E88E018"><enum>(5)</enum><text>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).</text>
</paragraph></subsection><subsection id="H66136B2131C94644AD52367082B9E6F0"><enum>(c)</enum><header>Compliance With
Accounting Rules</header><text>RenewCorps shall comply with such accounting
rules and other rules as may be established by the Commission.</text>
</subsection><subsection id="H35B7C8F692764AE2997AA8FBC382116A"><enum>(d)</enum><header>Regional
Disbursement of Funds</header>
<paragraph id="HCF6019E27F8541C3B6F243E7813C388F"><enum>(1)</enum><header>Reimbursement</header><text>Funds
received by RenewCorps from the systems benefits charge under this section
shall be disbursed to electric utilities and transmitting utilities to provide
reimbursement for—</text>
<subparagraph id="H42D29AF9BAB545548149E4F98649103D"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HE52DD435227948C4ACF1FBC160F5DE94"><enum>(B)</enum><text>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)).</text>
</subparagraph></paragraph><paragraph id="H7285D32D42E64D0995F71D13DA013114"><enum>(2)</enum><header>Quarterly
disbursement</header><text>Funds received by RenewCorps from the systems
benefits charge under this section shall be disbursed on a quarterly basis. The
Renew Corps shall distribute such revenue to electric utilities within each
region of the North American Electric Reliability Corporation (NERC) in the
United States in proportion to the revenue raised within each such
region.</text>
</paragraph><paragraph id="HE72A4CB1F1C84C57BA8190FDCC63695B"><enum>(3)</enum><header>Avoid double
cost recovery</header><text>Reimbursements from RenewCorps to electric
utilities and transmitting utilities for costs associated with compliance with
the Renewable Energy Jobs and Security Act may not also be eligible for
recovery by any other
means.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8533DE428A49404A8B87B322F6E0B1E8"><enum>204.</enum><header>Consistency
with environmental laws</header><text display-inline="no-display-inline">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:</text>
<paragraph id="HACE535991C0E4CF6875BC9D5CD17D953"><enum>(1)</enum><text>The National
Forest Management Act of 1976 (16 U.S.C. 472a et seq.).</text>
</paragraph><paragraph id="HE070C1BDFE8242CF9F0BC6F7ACD568D1"><enum>(2)</enum><text>The Endangered
Species Act of 1973 (16 U.S.C. 1531 et seq.).</text>
</paragraph><paragraph id="H020A2942CEA34D638A539CF420597389"><enum>(3)</enum><text>The National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).</text>
</paragraph><paragraph id="H22DB30464D4D4630827A28652F9FEF3A"><enum>(4)</enum><text>The Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.).</text>
</paragraph><paragraph id="HAC1DD07D945C4C5F90398F602B44BF0E"><enum>(5)</enum><text>The Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.).</text>
</paragraph></section>