[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 672 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 672

 To amend the Natural Gas Act, the Natural Gas Policy Act of 1978, and 
the Federal Power Act to modify provisions relating to enforcement and 
 judicial review and to modify the procedures for proposing changes in 
                           natural gas rates.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 24, 2009

 Ms. Cantwell introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the Natural Gas Act, the Natural Gas Policy Act of 1978, and 
the Federal Power Act to modify provisions relating to enforcement and 
 judicial review and to modify the procedures for proposing changes in 
                           natural gas rates.

    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 ``Natural Gas and Electricity Review 
and Enforcement Act''.

SEC. 2. NATURAL GAS ACT.

    (a) In General.--Section 20 of the Natural Gas Act (15 U.S.C. 717s) 
is amended by adding at the end the following:
    ``(e) Cease-and-Desist Proceedings.--
            ``(1) In general.--If the Commission determines that any 
        entity may be violating, may have violated, or may be about to 
        violate any provision of this Act, or any regulation 
        promulgated by, or any restriction, condition, or order made or 
        imposed by, the Commission under this Act, and if the 
        Commission finds that the alleged violation or threatened 
        violation, or the continuation of the violation, is likely to 
        result in significant harm to natural gas consumers or 
        significant harm to the public interest, the Commission may 
        issue a temporary order requiring the respondent--
                    ``(A) to cease and desist from the violation or 
                threatened violation;
                    ``(B) to take such action as is necessary to 
                prevent the violation or threatened violation; and
                    ``(C) to prevent, as the Commission determines to 
                be appropriate--
                            ``(i) significant harm to natural gas 
                        consumers;
                            ``(ii) significant harm to the public 
                        interest; and
                            ``(iii) frustration of the ability of the 
                        Commission to conduct the proceedings or to 
                        redress the violation at the conclusion of the 
                        proceedings.
            ``(2) Timing of entry.--An order issued under this 
        subsection shall be entered only after notice and opportunity 
        for a hearing, unless the Commission determines that notice and 
        hearing prior to entry would be impracticable or contrary to 
        the public interest.
            ``(3) Effective date.--A temporary order issued under this 
        subsection shall--
                    ``(A) become effective upon service upon the 
                respondent; and
                    ``(B) unless set aside, limited, or suspended by 
                the Commission or a court of competent jurisdiction, 
                remain effective and enforceable pending the completion 
                of the proceedings.
    ``(f) Proceedings Regarding Dissipation or Conversion of Assets.--
            ``(1) In general.--In a proceeding involving an alleged 
        violation of a regulation or order promulgated or issued by the 
        Commission in accordance with section 4A, if the Commission 
        determines that the alleged violation or related circumstances 
        are likely to result in significant dissipation or conversion 
        of assets, the Commission may issue a temporary order requiring 
        the respondent to take such action as is necessary to prevent 
        the dissipation or conversion of assets.
            ``(2) Timing of entry.--An order issued under this 
        subsection shall be entered only after notice and opportunity 
        for a hearing, unless the Commission determines that notice and 
        hearing prior to entry would be impracticable or contrary to 
        the public interest.
            ``(3) Effective date.--A temporary order issued under this 
        subsection shall--
                    ``(A) become effective upon service upon the 
                respondent; and
                    ``(B) unless set aside, limited, or suspended by 
                the Commission or a court of competent jurisdiction, 
                remain effective and enforceable pending the completion 
                of the proceedings.
    ``(g) Review of Temporary Orders.--
            ``(1) Application for review.--At any time after a 
        respondent has been served with a temporary cease-and-desist 
        order pursuant to subsection (e) or order regarding the 
        dissipation or conversion of assets pursuant to subsection (f), 
        the respondent may apply to the Commission to have the order 
        set aside, limited, or suspended.
            ``(2) No prior hearing.--If a respondent has been served 
        with a temporary order entered without a prior hearing of the 
        Commission--
                    ``(A) the respondent may, not later than 10 days 
                after the date on which the order was served, request a 
                hearing on the application; and
                    ``(B) the Commission shall hold a hearing and 
                render a decision on the application at the earliest 
                practicable time.
            ``(3) Judicial review.--
                    ``(A) In general.--An entity shall not be required 
                to submit a request for rehearing of a temporary order 
                prior to seeking judicial review in accordance with 
                section 19(a).
                    ``(B) Timing of review.--Not later than 10 days 
                after the date on which a respondent was served with a 
                temporary cease-and-desist order entered with a prior 
                hearing of the Commission, or 10 days after the date on 
                which the Commission renders a decision on an 
                application and hearing under paragraph (1) with 
                respect to any temporary order entered without a prior 
                hearing of the Commission--
                            ``(i) a respondent may obtain a review of 
                        the order in a United States circuit court 
                        having jurisdiction over the circuit in which 
                        the respondent resides or has a principal place 
                        of business, or in the United States Court of 
                        Appeals for the District of Columbia Circuit, 
                        for an order setting aside, limiting, or 
                        suspending the effectiveness or enforcement of 
                        the order; and
                            ``(ii) the court shall have jurisdiction to 
                        enter such an order.
                    ``(C) No prior hearing.--A respondent served with a 
                temporary order entered without a prior hearing of the 
                Commission may not apply to the applicable court 
                described in subparagraph (B) except after a hearing 
                and decision by the Commission on the application of 
                the respondent under paragraphs (1) and (2).
            ``(4) Procedures.--Section 19(b) shall apply to--
                    ``(A) an application for review of an order under 
                paragraph (1); and
                    ``(B) an order subject to review under paragraph 
                (3).
            ``(5) No automatic stay of temporary order.--The 
        commencement of proceedings under paragraph (3) shall not, 
        unless specifically ordered by the court, operate as a stay of 
        the order of the Commission.
    ``(h) Regulations and Orders.--The Commission may promulgate such 
regulations and issue such orders as the Commission determines to be 
necessary to carry out this section.''.
    (b) Procedure for Proposing Changes in Natural Gas Rates.--Section 
5(a) of the Natural Gas Act (15 U.S.C. 717d(a)) is amended--
            (1) in the first sentence--
                    (A) by striking ``Whenever'' and inserting the 
                following:
            ``(1) In general.--If'';
                    (B) by striking ``had'' and inserting ``held'';
                    (C) by striking the colon and inserting a period; 
                and
                    (D) by striking ``Provided, however, That the'' and 
                inserting the following:
            ``(2) Limitation.--Notwithstanding paragraph (1), the''; 
        and
            (2) by adding at the end the following:
            ``(3) Procedures.--
                    ``(A) Complaints; motions.--Any complaint or motion 
                of the Commission to initiate a proceeding under this 
                subsection shall identify--
                            ``(i) any proposed changes to the rate, 
                        charge, classification, rule, regulation, 
                        practice, or contract; and
                            ``(ii) the reasons for the proposed 
                        changes.
                    ``(B) Hearings.--If, after review of a motion or 
                complaint and answer under this subsection, the 
                Commission decides to hold a hearing, the Commission 
                shall--
                            ``(i) by order, establish the time and 
                        place of the hearing; and
                            ``(ii) specify the issues to be adjudicated 
                        in the hearing.
            ``(4) Refund effective date.--
                    ``(A) In general.--In accordance with subparagraphs 
                (B) and (C), the Commission shall establish a refund 
                effective date for any proceeding initiated under this 
                subsection.
                    ``(B) Complaints.--In the case of a proceeding 
                initiated by a complaint, the refund effective date 
                shall be--
                            ``(i) not earlier than the date on which 
                        the complaint is submitted to the Commission; 
                        and
                            ``(ii) not later than 150 days after the 
                        date on which the complaint was submitted to 
                        the Commission.
                    ``(C) Commission motion.--In the case of a 
                proceeding initiated on motion of the Commission, the 
                refund effective date shall be--
                            ``(i) not earlier than the date on which 
                        the Commission publishes notice of the 
                        intention of the Commission to initiate the 
                        proceeding; and
                            ``(ii) not later than 150 days after the 
                        date on which the notice under clause (i) is 
                        published.
            ``(5) Preferential proceedings.--On initiation of a 
        proceeding under this subsection, the Commission shall--
                    ``(A) give the proceeding the same preference 
                provided under section 4(e); and
                    ``(B) act on the complaint or motion as soon as 
                practicable after the complaint or motion is initiated.
            ``(6) Failure to issue decision.--If no final decision is 
        issued by the date that is 180 days after the date on which a 
        proceeding is initiated under this subsection, the Commission 
        shall state in writing--
                    ``(A) the reasons why the Commission has failed to 
                issue a decision; and
                    ``(B) the best estimate of the Commission for the 
                date by which the Commission expects to issue a 
                decision.
            ``(7) Burden of proof.--In any hearing under this 
        subsection, the burden of proof to show that any rate, charge, 
        classification, rule, regulation, practice, or contract is 
        unjust, unreasonable, unduly discriminatory, or preferential 
        shall be on--
                    ``(A) if the proceeding is initiated by the 
                Commission, the Commission; or
                    ``(B) if the proceeding is initiated by a 
                complaint, the complainant.
            ``(8) Issuance of refunds.--
                    ``(A) In general.--At the conclusion of any hearing 
                under this section, the Commission may order, for the 
                period beginning on the refund effective date and 
                ending on a date 15 months after the refund effective 
                date, refunds of any amounts paid in excess of the 
                amounts that would have been paid under the just and 
                reasonable rate, charge, classification, rule, 
                regulation, practice, or contract that the Commission 
                orders that would be in effect after the hearing.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                the Commission may order refunds of any or all amounts 
                paid for the period beginning on the refund effective 
                date and ending on the date on which the hearing 
                concludes--
                            ``(i) if the proceeding is not concluded by 
                        the date that is 15 months after the refund 
                        effective date; and
                            ``(ii) if the Commission determines at the 
                        conclusion of the proceeding that the 
                        proceeding was not resolved within the 15-month 
                        period primarily because of dilatory behavior 
                        by the natural gas company.
                    ``(C) Interest.--Refunds under this subsection 
                shall be issued in an amount determined by the 
                proceeding, plus interest, to the persons that paid the 
                rates or charges.''.

SEC. 3. NATURAL GAS POLICY ACT OF 1978.

    Section 504 of the Natural Gas Policy Act of 1978 (15 U.S.C. 3414) 
is amended by adding at the end the following:
    ``(d) Cease-and-Desist Proceedings.--
            ``(1) In general.--If the Commission determines that any 
        entity may be violating, may have violated, or may be about to 
        violate any provision of this Act, or any regulation 
        promulgated by, or any restriction, condition, or order made or 
        imposed by, the Commission under this Act, and if the 
        Commission finds that the alleged violation or threatened 
        violation, or the continuation of the violation, is likely to 
        result in significant harm to natural gas consumers or 
        significant harm to the public interest, the Commission may 
        issue a temporary order requiring the respondent--
                    ``(A) to cease and desist from the violation or 
                threatened violation;
                    ``(B) to take such action as is necessary to 
                prevent the violation or threatened violation; and
                    ``(C) to prevent, as the Commission determines to 
                be appropriate--
                            ``(i) significant harm to natural gas 
                        consumers;
                            ``(ii) significant harm to the public 
                        interest; and
                            ``(iii) frustration of the ability of the 
                        Commission to conduct the proceedings or to 
                        redress the violation at the conclusion of the 
                        proceedings.
            ``(2) Timing of entry.--An order issued under this 
        subsection shall be entered only after notice and opportunity 
        for a hearing, unless the Commission determines that notice and 
        hearing prior to entry would be impracticable or contrary to 
        the public interest.
            ``(3) Effective date.--A temporary order issued under this 
        subsection shall--
                    ``(A) become effective upon service upon the 
                respondent; and
                    ``(B) unless set aside, limited, or suspended by 
                the Commission or a court of competent jurisdiction, 
                remain effective and enforceable pending the completion 
                of the proceedings.
    ``(e) Proceedings Regarding Dissipation or Conversion of Assets.--
            ``(1) In general.--In a proceeding involving an alleged 
        violation of a regulation or order promulgated or issued by the 
        Commission in accordance with section 4A of the Natural Gas Act 
        (15 U.S.C. 717c), if the Commission determines that the alleged 
        violation or related circumstances are likely to result in 
        significant dissipation or conversion of assets, the Commission 
        may issue a temporary order requiring the respondent to take 
        such action as is necessary to prevent the dissipation or 
        conversion of assets.
            ``(2) Timing of entry.--An order issued under this 
        subsection shall be entered only after notice and opportunity 
        for a hearing, unless the Commission determines that notice and 
        hearing prior to entry would be impracticable or contrary to 
        the public interest.
            ``(3) Effective date.--A temporary order issued under this 
        subsection shall--
                    ``(A) become effective upon service upon the 
                respondent; and
                    ``(B) unless set aside, limited, or suspended by 
                the Commission or a court of competent jurisdiction, 
                remain effective and enforceable pending the completion 
                of the proceedings.
    ``(f) Review of Temporary Orders.--
            ``(1) Application for review.--At any time after a 
        respondent has been served with a temporary cease-and-desist 
        order pursuant to subsection (d) or order regarding the 
        dissipation or conversion of assets pursuant to subsection (e), 
        the respondent may apply to the Commission to have the order 
        set aside, limited, or suspended.
            ``(2) No prior hearing.--If a respondent has been served 
        with a temporary order entered without a prior hearing of the 
        Commission--
                    ``(A) the respondent may, not later than 10 days 
                after the date on which the order was served, request a 
                hearing on the application; and
                    ``(B) the Commission shall hold a hearing and 
                render a decision on the application at the earliest 
                practicable time.
            ``(3) Judicial review.--
                    ``(A) In general.--An entity shall not be required 
                to submit a request for rehearing of a temporary order 
                prior to seeking judicial review in accordance with 
                section 506(a)(2).
                    ``(B) Timing of review.--Not later than 10 days 
                after the date on which a respondent was served with a 
                temporary cease-and-desist order entered with a prior 
                hearing of the Commission, or 10 days after the date on 
                which the Commission renders a decision on an 
                application and hearing under paragraph (1) with 
                respect to any temporary order entered without a prior 
                hearing of the Commission--
                            ``(i) a respondent may obtain a review of 
                        the order in a United States circuit court 
                        having jurisdiction over the circuit in which 
                        the respondent resides or has a principal place 
                        of business, or in the United States Court of 
                        Appeals for the District of Columbia Circuit, 
                        for an order setting aside, limiting, or 
                        suspending the effectiveness or enforcement of 
                        the order; and
                            ``(ii) the court shall have jurisdiction to 
                        enter such an order.
                    ``(C) No prior hearing.--A respondent served with a 
                temporary order entered without a prior hearing of the 
                Commission may not apply to the applicable court 
                described in subparagraph (B) except after a hearing 
                and decision by the Commission on the application of 
                the respondent under paragraphs (1) and (2).
            ``(4) Procedures.--Section 506(a)(4) shall apply to--
                    ``(A) an application for review of an order under 
                paragraph (1); and
                    ``(B) an order subject to review under paragraph 
                (3).
            ``(5) No automatic stay of temporary order.--The 
        commencement of proceedings under paragraph (3) shall not, 
        unless specifically ordered by the court, operate as a stay of 
        the order of the Commission.
    ``(g) Regulations and Orders.--The Commission may promulgate such 
regulations and issue such orders as the Commission determines to be 
necessary to carry out this section.''.

SEC. 4. FEDERAL POWER ACT.

    (a) Regulation of Electric Utility Companies Engaged in Interstate 
Commerce.--Section 202 of the Federal Power Act (16 U.S.C. 824a) is 
amended by adding at the end the following:
    ``(h) Emergency Authority.--
            ``(1) In general.--Subject to paragraphs (2) and (3), if 
        necessary in the case of an emergency to ensure continued 
        reliability of service to electric consumers or to protect 
        electric customers from potential abuse of market power or 
        market manipulation in wholesale markets regulated by the 
        Commission, the Commission, upon petition or upon a motion of 
        the Commission, and before providing public notice and an 
        opportunity for comment, shall have emergency authority to 
        change or suspend temporarily the rates, terms, or conditions 
        of service on file with the Commission pursuant to this Act.
            ``(2) Duration.--A temporary change or suspension under 
        paragraph (1) may remain in effect for a period of not more 
        than 30 days unless the Commission, during that period--
                    ``(A) provides formal public notice and an 
                opportunity for comment in accordance with section 206; 
                and
                    ``(B) determines that the a change or suspension 
                shall remain in effect pursuant to that section.
            ``(3) Effective date.--Any temporary change or suspension 
        of a filed rate, term, or condition of service under paragraph 
        (1) shall take effect only upon the date of issuance by the 
        Commission of written public notice stating the findings of the 
        Commission in support of the temporary change or suspension.''.
    (b) Licensees and Public Utilities; Procedural and Administrative 
Provisions.--Section 314 of the Federal Power Act (16 U.S.C. 825m) is 
amended by adding at the end the following:
    ``(e) Cease-and-Desist Proceedings.--
            ``(1) In general.--If the Commission determines that any 
        entity may be violating, may have violated, or may be about to 
        violate any provision of this Act, or any regulation 
        promulgated by, or any restriction, condition, or order made or 
        imposed by, the Commission under this Act, and if the 
        Commission finds that the alleged violation or threatened 
        violation, or the continuation of the violation, is likely to 
        result in significant harm to electricity consumers or 
        significant harm to the public interest, the Commission may 
        issue a temporary order requiring the respondent--
                    ``(A) to cease and desist from the violation or 
                threatened violation;
                    ``(B) to take such action as is necessary to 
                prevent the violation or threatened violation; and
                    ``(C) to prevent, as the Commission determines to 
                be appropriate--
                            ``(i) significant harm to electricity 
                        consumers;
                            ``(ii) significant harm to the public 
                        interest; and
                            ``(iii) frustration of the ability of the 
                        Commission to conduct the proceedings or to 
                        redress the violation at the conclusion of the 
                        proceedings.
            ``(2) Timing of entry.--An order issued under this 
        subsection shall be entered only after notice and opportunity 
        for a hearing, unless the Commission determines that notice and 
        hearing prior to entry would be impracticable or contrary to 
        the public interest.
            ``(3) Effective date.--A temporary order issued under this 
        subsection shall--
                    ``(A) become effective upon service upon the 
                respondent; and
                    ``(B) unless set aside, limited, or suspended by 
                the Commission or a court of competent jurisdiction, 
                remain effective and enforceable pending the completion 
                of the proceedings.
    ``(f) Proceedings Regarding Dissipation or Conversion of Assets.--
            ``(1) In general.--In a proceeding involving an alleged 
        violation of a regulation or order promulgated or issued by the 
        Commission in accordance with section 222, if the Commission 
        determines that the alleged violation or related circumstances 
        are likely to result in significant dissipation or conversion 
        of assets, the Commission may issue a temporary order requiring 
        the respondent to take such action as is necessary to prevent 
        the dissipation or conversion of assets.
            ``(2) Timing of entry.--An order issued under this 
        subsection shall be entered only after notice and opportunity 
        for a hearing, unless the Commission determines that notice and 
        hearing prior to entry would be impracticable or contrary to 
        the public interest.
            ``(3) Effective date.--A temporary order issued under this 
        subsection shall--
                    ``(A) become effective upon service upon the 
                respondent; and
                    ``(B) unless set aside, limited, or suspended by 
                the Commission or a court of competent jurisdiction, 
                remain effective and enforceable pending the completion 
                of the proceedings.
    ``(g) Review of Temporary Orders.--
            ``(1) Application for review.--At any time after a 
        respondent has been served with a temporary cease-and-desist 
        order pursuant to subsection (e) or order regarding the 
        dissipation or conversion of assets pursuant to subsection (f), 
        the respondent may apply to the Commission to have the order 
        set aside, limited, or suspended.
            ``(2) No prior hearing.--If a respondent has been served 
        with a temporary order entered without a prior hearing of the 
        Commission--
                    ``(A) the respondent may, not later than 10 days 
                after the date on which the order was served, request a 
                hearing on the application; and
                    ``(B) the Commission shall hold a hearing and 
                render a decision on the application at the earliest 
                practicable time.
            ``(3) Judicial review.--
                    ``(A) In general.--An entity shall not be required 
                to submit a request for rehearing of a temporary order 
                prior to seeking judicial review in accordance with 
                section 313(a).
                    ``(B) Timing of review.--Not later than 10 days 
                after the date on which a respondent was served with a 
                temporary cease-and-desist order entered with a prior 
                hearing of the Commission, or 10 days after the date on 
                which the Commission renders a decision on an 
                application and hearing under paragraph (1) with 
                respect to any temporary order entered without a prior 
                hearing of the Commission--
                            ``(i) a respondent may obtain a review of 
                        the order in a United States circuit court 
                        having jurisdiction over the circuit in which 
                        the respondent resides or has a principal place 
                        of business, or in the United States Court of 
                        Appeals for the District of Columbia Circuit, 
                        for an order setting aside, limiting, or 
                        suspending the effectiveness or enforcement of 
                        the order; and
                            ``(ii) the court shall have jurisdiction to 
                        enter such an order.
                    ``(C) No prior hearing.--A respondent served with a 
                temporary order entered without a prior hearing of the 
                Commission may not apply to the applicable court 
                described in subparagraph (B) except after a hearing 
                and decision by the Commission on the application of 
                the respondent under paragraphs (1) and (2).
            ``(4) Procedures.--Section 313(a) shall apply to--
                    ``(A) an application for review of an order under 
                paragraph (1); and
                    ``(B) an order subject to review under paragraph 
                (3).
            ``(5) No automatic stay of temporary order.--The 
        commencement of proceedings under paragraph (3) shall not, 
        unless specifically ordered by the court, operate as a stay of 
        the order of the Commission.
    ``(h) Regulations and Orders.--The Commission may promulgate such 
regulations and issue such orders as the Commission determines to be 
necessary to carry out this section.''.
                                 <all>