[Congressional Record Volume 144, Number 91 (Friday, July 10, 1998)]
[Senate]
[Pages S7940-S7960]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DODD (for himself, Mr. Stevens, Mr. Kennedy, Mr. Moynihan, 
        Mr. D'Amato, Mr. Torricelli, Mr. Lieberman, Mr. Daschle, Ms. 
        Collins, Ms. Landrieu, Mr. Reid, Mr. DeWine, Ms. Moseley-Braun, 
        Ms. Mikulski, Mrs. Boxer, Ms. Snowe, Mrs. Murray, Mrs. 
        Feinstein, and Mr. Lautenberg):
  S. 2285. A bill to establish a commission, in honor of the 150th 
Anniversary of the Seneca Falls Convention, to further protect sites of 
importance in the historic efforts to secure equal rights for women; to 
the Committee on Energy and Natural Resources.


                   women's progress commemoration act

  Mr. DODD. Mr. President, one hundred and fifty years ago this month, 
a remarkable group of women and men came together and wrote the single 
most important document of the nineteenth-century American women's 
movement and one of the most important writings of American freedom: 
The Seneca Falls Declaration of Sentiments and Resolutions. Modeled 
closely after the Declaration of Independence, this document is a 
declaration of women's independence. Radical at the time, it expounded 
such ideas as allowing women to vote, to become educated, and to 
participate in economic activities.
  I believe we should take the occasion of the 150th anniversary of the 
Seneca falls convention to celebrate and focus on the rich and 
courageous history of American women and their struggle for equality. 
With this in mind, I am introducing the Women's Progress Commemoration 
Act.
  I am very happy to be joined in introducing this legislation by my 
primary cosponsor, Senator Ted Stevens of Alaska, and the bipartisan 
group of 17 other original cosponsors: Senators Moynihan and D'Amato 
from New York, Senator Kennedy, Senator Torricelli, Senator Lieberman, 
Senator Daschle, Senator Collins, Senator Landrieu, Senator Reid, 
Senator DeWine, Senator Moseley-Braun, Senator Mikulski, Senator Boxer, 
Senator Snowe, Senator Murray, Senator Feinstein, and Senator 
Lautenberg.
  This legislation will establish a commission to identify sites that 
have been instrumental in the women's movement and help to ensure their 
historic preservation. The history of American women has barely begun 
to be recorded. Consider these facts: (1) less than 5 percent of our 
Nation's historic landmarks chronicle women's achievements, (2) right 
here in the capitol, of the 197 statues exhibited in statuary hall, 
only seven are of women leaders, (3) according to a recent study, less 
than 2 percent of even our contemporary history textbooks are dedicated 
to women's contributions.
  And yet, despite the virtual infancy of efforts to record women's 
history, we are doing even less to preserve the places where that 
history was made. That is why this bill is so important. If we don't 
preserve our past, we can lose our way into our future and our 
opportunity to teach not only girls and women but all students and 
citizens.
  As I stand here today, numerous buildings and structures of deep 
historical significance to the American women's movement are in a state 
of disrepair--they have peeling paint, flooded basements, and 
structural deficiencies.
  For example, the Sewall-Belmont House, just a block from the Capitol, 
was and still is the headquarters of the National Women's Party, which 
pressed for woman suffrage. This building was also the residency of 
Alice Paul, the legendary founder of this party. This is a prime 
example of a critical site in American women's history that is in need 
of preservation. Unfortunately, this house is plagued with water 
problems, deteriorating electrical wiring, and weather-damaged parts of 
the structure.
  As we can see, I brought these two photographs, Mr. President, to 
indicate the condition of the Sewall Belmont Home, which I said is 
about a block from the Capitol and a house that many of my colleagues 
have visited over the years. This historic house is where some of the 
treasures of the women's suffrage movement are located and, sadly, as 
you can see in these pictures, the house is in desperate need of 
restoration. Even though, I am happy to report that efforts have begun 
by the Senate to save this house, there are many more examples of such 
sites throughout the country that are literally crumbling way.
  Another example of a site in need of repair is the McClintock House 
in the Women's Rights Historical Park in upstate New York. This is 
where the actual Declaration of Sentiments was drafted during the 
Seneca Falls Convention.
  Another site that the commission could choose would be the Rankin 
Ranch in Helena, Montana--the home of the first woman elected to the 
U.S. House of Representatives.
  Or perhaps the Harriet Tubman home in Auburn, New York, which is 
already open to the public but still needs financial support.
  This commission will highlight sites throughout the country, such as 
these, that deserve to be preserved.
  In my home State of Connecticut there are some success stories of 
efforts to preserve women's sites such as the Prudence Crandall home, 
the first school for African-American girls in this country, or the 
home of Harriet Beecher Stowe, the author of ``Uncle Tom's Cabin.''
  Even though my State of Connecticut has been progressive about the 
preservation of women's sites, unfortunately, some of these efforts 
were too late. Sadly, some historic women's sites in Connecticut were 
not preserved and are relegated to a signpost or a plaque rather than a 
museum.
  Hopefully, 150 years after the birth of the women's movement we can 
create more museums and fewer plaques.
  Let me take a moment to explain very briefly the structure and goals 
of the commission. The commission will have 15 members appointed by the 
majority and minority leaders of the Senate and the House and by the 
administration. Members will be selected based on a knowledge of 
women's history and historical preservation. Not later than 1 year 
after the commission's initial meeting it will provide to the Secretary 
of the Interior a list of sites deserving recognition and preservation. 
It will also recommend actions to rehabilitate those sites. Thirty days 
after the submission of this report, the commission will cease to 
exist. The commission will not fund preservation but rather highlight 
the need, and hopefully the publicity will generate funds--whether it 
be private, public, or nonprofit--that would be used to help in the 
preservation of these sites.
  I hope that the sites across this Nation that signify important 
points in women's history or celebrate remarkable women will be 
preserved for the public to come and learn. I hope that school children 
across our Nation will be making field trips to historic women's sites, 
along with their trips to the White House, the Capitol, Monticello, and 
the significant memorials here in this city and across our Nation.
  Let's make women's contributions to our history known to generations 
yet unborn--their accomplishments an inspiration and their homes and 
workplaces opportunities where future generations can come and learn.
  In July of 1848 the Seneca Falls Convention convened to consider the 
social conditions and civil rights of women. As I have said, this 
convention signaled the beginning of an admirable and courageous 
women's movement in this Nation. Today, for the 150th anniversary of 
this historic meeting, let us take the opportunity to preserve and 
teach the contributions of women to our Nation's history to future 
generations of Americans.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2285

       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 ``Women's Progress 
     Commemoration Act''.

[[Page S7941]]

     SEC. 2. DECLARATION.

       Congress declares that--
       (1) the original Seneca Falls Convention, held in upstate 
     New York in July 1848, convened to consider the social 
     conditions and civil rights of women at that time;
       (2) the convention marked the beginning of an admirable and 
     courageous struggle for equal rights for women;
       (3) the 150th Anniversary of the convention provides an 
     excellent opportunity to examine the history of the women's 
     movement; and
       (4) a Federal Commission should be established for the 
     important task of ensuring the historic preservation of sites 
     that have been instrumental in American women's history, 
     creating a living legacy for generations to come.

     SEC. 3. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the ``Women's Progress Commemoration Commission'' 
     (referred to in this Act as the ``Commission'').
       (b) Membership.--
       (1) In general.--The Commission shall be composed of 15 
     members, of whom--
       (A) 3 shall be appointed by the President;
       (B) 3 shall be appointed by the Speaker of the House of 
     Representatives;
       (C) 3 shall be appointed by the minority leader of the 
     House of Representatives;
       (D) 3 shall be appointed by the majority leader of the 
     Senate; and
       (E) 3 shall be appointed by the minority leader of the 
     Senate.
       (2) Persons eligible.--
       (A) In general.--The members of the Commission shall be 
     individuals who have knowledge or expertise, whether by 
     experience or training, in matters to be studied by the 
     Commission. The members may be from the public or private 
     sector, and may include Federal, State, local, or employees, 
     members of academia, nonprofit organizations, or industry, or 
     other interested individuals.
       (B) Diversity.--It is the intent of Congress that persons 
     appointed to the Commission under paragraph (1) be persons 
     who represent diverse economic, professional, and cultural 
     backgrounds.
       (3) Consultation and appointment.--
       (A) In general.--The President, Speaker of the House of 
     Representatives, minority leader of the House of 
     Representatives, majority leader of the Senate, and minority 
     leader of the Senate shall consult among themselves before 
     appointing the members of the Commission in order to 
     achieve, to the maximum extent practicable, fair and 
     equitable representation of various points of view with 
     respect to the matters to be studied by the Commission.
       (B) Completion of appointments; vacancies.--The President, 
     Speaker of the House of Representatives, minority leader of 
     the House of Representatives, majority leader of the Senate 
     and minority leader of the Senate shall conduct the 
     consultation under subparagraph (3) and make their respective 
     appointments not later than 60 days after the date of 
     enactment of this Act.
       (4) Vacancies.--A vacancy in the membership of the 
     Commission shall not affect the powers of the Commission and 
     shall be filled in the same manner as the original 
     appointment not later than 30 days after the vacancy occurs.
       (c) Meetings.--
       (1) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting.
       (2) Subsequent meetings.--After the initial meeting, the 
     Commission shall meet at the call of the Chairperson.
       (d) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum for the transaction of business, 
     but a lesser number of members may hold hearings.
       (e) Chairperson and Vice Chairperson.--The Commission shall 
     select a Chairperson and Vice Chairperson from among its 
     members.

     SEC. 4. DUTIES OF THE COMMISSION.

       Not later than 1 year after the initial meeting of the 
     Commission, the Commission, in cooperation with the Secretary 
     of the Interior and other appropriate Federal, State, and 
     local public and private entities, shall prepare and submit 
     to the Secretary of the Interior a report that--
       (1) identifies sites of historical significance to the 
     women's movement; and
       (2) recommends actions, under the National Historic 
     Preservation Act (16 U.S.C. 470 et seq.) and other law, to 
     rehabilitate and preserve the sites and provide to the public 
     interpretive and educational materials and activities at the 
     sites.

     SEC. 5. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out its duties of this Act.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers necessary to carry 
     out the provisions of this Act. At the request of the 
     Chairperson of the Committee, the head of such department or 
     agency shall furnish such information to the Commission.

     SEC. 6. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--A member of the Commission 
     who is not otherwise an officer or employee of the Federal 
     Government shall be compensated at a rate equal to the daily 
     equivalent of the annual rate of basic pay prescribed for a 
     position at level IV of the Executive Schedule under section 
     5315 of title 5, United States Code, for each day (including 
     travel time) during which the member is engaged in the 
     performance of the duties of the Commission. A member of the 
     Commission who is otherwise an officer or employee of the 
     United States shall serve without compensation in addition to 
     that received for services as an officer or employee of the 
     United States.
       (b) Travel Expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of service for the 
     Commission.
       (c) Staff.--
       (1) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an executive director and 
     such other additional personnel as may be necessary to enable 
     the Commission to perform its duties. The employment and 
     termination of an executive director shall be subject to 
     confirmation by a majority of the members of the Commission.
       (2) Compensation.--The executive director shall be 
     compensated at a rate not to exceed the rate payable for a 
     position at level V of the Executive Schedule under section 
     5316 of title 5, United States Code. The Chairperson may fix 
     the compensation of other personnel without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates, except that the 
     rate of pay for such personnel may not exceed the rate 
     payable for a position at level V of the Executive Schedule 
     under section 5316 of that title.
       (3) Detail of government employees.--Any Federal Government 
     employee, with the approval of the head of the appropriate 
     Federal agency, may be detailed to the Commission without 
     reimbursement, and the detail shall be without interruption 
     or loss of civil service status, benefits, or privilege.
       (d) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals not to exceed 
     the daily equivalent of the annual rate of basic pay 
     prescribed for a position at level V of the Executive 
     Schedule under section 5316 of that title.

     SEC. 7. FUNDING.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Commission such sums as are 
     necessary to carry out this Act.
       (b) Donations.--The Commission may accept donations from 
     non-Federal sources to defray the costs of the operations of 
     the Commission.

     SEC. 8. TERMINATION.

       The Commission shall terminate on the date that is 30 days 
     after the date on which the Commission submits to the 
     Secretary of the Interior the report under section 4(b).

     SEC. 9. REPORTS TO CONGRESS.

       Not later 2 years and not later than 5 years after the date 
     on which the Commission submits to the Secretary of the 
     Interior the report under section 4, the Secretary of the 
     Interior shall submit to Congress a report describing the 
     actions that have been taken to preserve the sites identified 
     in the Commission report as being of historical significance.

  The PRESIDING OFFICER. The Senator from New York.
  Mr. MOYNIHAN. I rise, of course, to support and endorse the proposal 
by the Senator from Connecticut, cosponsored by the senior Senator from 
Alaska, with one small anecdote.
  The Women's Rights National Convention met 150 years ago at the 
Wesleyan Chapel on Fall Street in Seneca Falls. There will be a lot of 
ceremony this week and next. The First Lady will be there.
  I was in Seneca Falls about 1978 and was having a beer with the 
county leader, George Souhan, in the Gould Hotel. Looking down at the 
street, I just happened to say to him, ``Where was that chapel where 
the convention met?'' He said, ``It was just down the street.'' I said, 
``Let's go look.'' Down the street we went. What did we find, but a 
laundromat. The Wesleyan Chapel had become a laundromat on Fall Street 
and a garage behind.
  We had it declared a national park in 1980. We went around the city, 
the village, and found the houses of the ladies of Seneca Falls--the 
Bloomer girls and Elizabeth Cady Stanton and the like. We went to 
Waterloo, where in the McClintock House the declaration was drafted. 
That needs repair; the Park Service should do it.
  It is quite an achievement, but it makes the point that the Senator 
from Connecticut has just made that you better look after these 
important sites. That was the first original American political idea--
that women were equal in civic rights with men. It didn't come

[[Page S7942]]

from Europe. It came right from central New York. It had almost 
vanished as a site until we came along.
  If the Senator wishes to do more, more power to him. I thank my 
friend from Colorado.
  Mr. DODD. If my friend from Colorado will yield once again, we 
realize the benefit of having the presence of our colleague form New 
York in our midst. Once again he was ahead in so many areas, and this 
is not an exception. As he pointed out, it was almost washed out. We 
are grateful that he stopped for a libation in Seneca Falls on that day 
in 1978.
                                 ______
                                 
      By Mr. MURKOWSKI (for himself and Mr. Bumpers) (by request):
  S. 2287. A bill to provide for a more competitive electric power 
industry, and for other purposes; to the Committee on Energy and 
Natural Resources.


               comprehensive electricity competition act

  Mr. MURKOWSKI. Mr. President, at the request of the Administration, I 
am today introducing its proposed electric power industry legislation, 
the ``Comprehensive Electric Competition Act.'' I do so not because I 
agree with all of the provisions of the Administration's legislation: I 
don't. I do so as a courtesy to the Administration and because I 
strongly support competition.
  Mr. President, let me first say that I am a strong proponent of 
increased competition in the electric power industry. For the past 
century our electric utilities--investor-owned, municipally-owned, 
cooperatively-owned--have served this Nation well. Particularly as 
compared to the rest of the world, we have reasonably-priced, extremely 
reliable and nearly universal electric service. But with some well 
thought-out changes, our electric power industry can do even better. We 
have seen in a number of other industries--oil, natural gas, trucking 
and airlines, to name but a few--deregulation has greatly benefitted 
consumers. Market-based competition has reduced prices, increased 
supply and sparked innovation. There is no reason why increased 
competition in the electric power industry would not similarly benefit 
consumers, the economy and our international competitiveness.
  I believe that there is a growing consensus that increased 
competition in the electric power industry is in the public interest. 
This is illustrated by the number of States that have already moved 
forward to promote retail competition. According to the Department of 
Energy, 18 States have already implemented retail competition, either 
through State legislation or by State public utility commission 
regulation. One hundred and twenty-one million people--49 percent of 
the U.S. population--live in these States. Of the remaining States, all 
but two (Florida and South Dakota) are now actively considering 
competition programs. This consensus is also illustrated by the 20 
bills introduced to date in the Senate and the House of Representatives 
relating to this issue. Moreover, it is further illustrated by the 
Administration's decision to propose this legislation.
  Mr. President, as I see it, the issue isn't: Do we want competition 
in the electric power industry? We do. Instead, the issue is: How do we 
bring about competition without jeopardizing price and reliability or 
financially damaging the industry? There is a consensus on the first 
issue; unfortunately, on the latter there is no consensus.
  At the risk of oversimplification, there are two camps of thought on 
how to go about the task of promoting competition. On the one hand, 
there are those who want to see government-managed competition, not 
market-based competition. They believe that government should continue 
to regulate all aspects of the industry--just do it differently. 
Moreover, they prefer the Federal government--FERC--be put in charge 
and the States pushed out of the way. On the other hand, there are 
those who believe that competition should be market-based. They believe 
that the most effective and efficient regulator of business is the 
discipline of the free market--not the discipline of the government 
regulator. I fall into the latter camp. Having seen all too often the 
results of failed government regulation--wage-and-price controls, oil 
price and allocation controls, and natural gas wellhead price controls, 
for example. I believe that for electric competition legislation to 
benefit consumers it must deregulate, streamline and empower States to 
promote retail competition. We don't need different regulation; we 
don't need government-managed competition. We need deregulation; we 
need market-based competition.
  Turning now to the Administration's proposed legislation, let me 
first say that it contains several provisions that are in keeping with 
my philosophy. For example, it proposes to repeal the Public Utility 
Holding Company Act (``PUHCA''). This language is very similar to 
legislation Senator D'Amato introduced, S. 621, which has been reported 
by the Banking Committee and awaits action by the Senate. I am a 
cosponsor of S. 621, along with 22 other Senators. If we did nothing 
else, repeal of PUHCA would significantly promote competition in the 
electric power industry. This depression-era law, enacted in 1935, has 
long outlived its usefulness, and today is actually a significant 
impediment to competition. Repeal would allow both utilities and non-
utilities to fully compete without fear of becoming tangled in PUHCA's 
regulatory spider web. More competitors mean more competition, and that 
would benefit consumers and our economy. Moreover, repeal of PUHCA 
would not diminish Federal and State consumer protections, which would 
remain in full force and effect.
  Another provision of the Administration's bill that I strongly 
support is its prospective repeal of the mandatory purchase requirement 
of the Public Utility Regulatory Policies Act of 1978 (``PURPA''). 
PURPA is one of the few remaining vestiges of President Jimmy Carter's 
ill-fated 1978 ``National Energy Plan'' that we have yet to extinguish. 
PURPA requires electric utilities to purchase electricity from others 
whether or not they need it, and to pay so-called ``full avoided cost'' 
regardless of the actual market value of the power. This law has, and 
will until it is repealed, cost consumers billions of dollars in above-
market prices for PURPA electricity. As just one example of how this is 
hurting consumers, just the other day the FERC refused to rescind the 
PURPA QF status of a powerplant even though the so-called ``useful'' 
thermal output of the facility is to produce distilled water that, at 
times, is just being dumped down the sewer. As a result, electric 
consumers in Brazos, Texas will pay an extra $890 million for 
electricity over the life of the PURPA contract--$148 per year for the 
average family of four living in Brazos. It is also essential that 
PURPA's mandatory purchase requirement be repealed as it is a key 
contributor to the so-called ``stranded cost'' problem that is plaguing 
industry restructuring efforts. Clearly, like PUHCA, it is time to 
repeal this anti-consumer and anti-competitive provision of PURPA.

  While there are provisions such as these in the Administration's 
proposed legislation that I do support, there are many provisions that 
I am very concerned about--some of which raise serious Constitutional 
issues, others of which I just cannot support. For example, the 
Administration's bill imposes a Federal mandate on States; it imposes a 
new $3+ billion per year Federal electricity tax on consumers; and it 
has a 5\1/2\ percent ``renewable set-aside'' mandate (that curiously 
ignores hydroelectric power as a renewable). Moreover, the 
Administration's proposed legislation includes numerous provisions that 
vastly expand FERC jurisdiction, largely at the expense of States.
  I am also troubled by the Administration's proposed legislation 
because of what it does not contain. The Administration's transmittal 
letter acknowledges that its legislation does not address several key 
issues. For example, the Administration's legislation does not resolve 
the competitive status of the Federal utilities--the Tennessee Valley 
Authority and the Federal power marketing administrations. Nor, does it 
address the competitive advantage municipal utilities have from tax-
exempt bonds and access to Federal preference power. Also, it does not 
address key issues necessary to ensure viability of nuclear power. I do 
not see how any bill can be considered ``comprehensive'' if it does not 
address these and other issues.
  Mr. President, although I have serious reservations about many 
provisions of the Administration's proposed

[[Page S7943]]

legislation, I am willing to introduce it in the spirit of moving 
forward and trying to develop a consensus. That will not be an easy or 
a quick task. But, it is one that we must undertake if all consumers--
residential, commercial and industrial--are to enjoy the benefits of 
increased competition in the electric power industry. I ask unanimous 
consent that the Administration's transmittal letter, its section-by-
section analysis and its proposed legislation be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2287

       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 ``Comprehensive Electricity 
     Competition Act''.

     SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.

                    TITLE I--RETAIL ELECTRIC SERVICE

Sec. 101.  Retail competition.
Sec. 102. Authority to impose reciprocity requirements.
Sec. 103.  Consumer information.

          TITLE II--FACILITATING STATE AND REGIONAL REGULATION

Sec. 201.  Clarification of State and Federal authority over retail 
              transmission services.
Sec. 202.  Interstate compacts on regional transmission planning.
Sec. 203.  Backup authority to impose a charge on an ultimate 
              consumer's receipt of electric energy.
Sec. 204.  Authority to establish and require independent system 
              operation.

                       TITLE III--PUBLIC BENEFITS

Sec. 301.  Public benefits fund.
Sec. 302.  Federal renewable portfolio standard.
Sec. 303.  Net metering.
Sec. 304.  Reform of section 210 of PURPA.

        TITLE IV--REGULATION OF MERGERS AND CORPORATE STRUCTURE

Sec. 401.  Reform of holding company regulation under PUHCA.
Sec. 402.  Electric company mergers.
Sec. 403.  Remedial measures for market power.

                     TITLE V--ELECTRIC RELIABILITY

Sec. 501.  Electric reliability organization and oversight.
Sec. 502.  Statutory presumption.

                   TITLE VI--ENVIRONMENTAL PROTECTION

Sec. 601.  Nitrogen oxides cap and trade program.

                 TITLE VII--OTHER REGULATORY PROVISIONS

Sec. 701.  Treatment of nuclear decommissioning costs in bankruptcy.
Sec. 702.  Study of impacts of competition in electricity markets by 
              the Energy Information Administration.
Sec. 703.  Antitrust savings clause.
Sec. 704.  Elimination of antitrust review by the Nuclear Regulatory 
              Commission.
Sec. 705.  Environmental laws savings clause.

                    TITLE I--RETAIL ELECTRIC SERVICE

     SEC. 101. RETAIL COMPETITION.

       (a) The Public Utility Regulatory Policies Act of 1978 
     (referred to in this Act as PURPA) is amended by adding after 
     section 608 the following new section:

     ``SEC. 609. RETAIL COMPETITION.

       ``(a) Definitions.--For purposes of this section--
       ``(1) `distribution utility' means a person, State agency, 
     or any other entity that owns or operates a local 
     distribution facility used or the sale of electric energy to 
     an electric consumer;
       ``(2) `nonregulated distribution utility' means a 
     distribution utility not subject to the ratemaking authority 
     of a State regulatory authority; and
       ``(3) `retail stranded costs' means the amount of net costs 
     incurred or obligations undertaken before the date of 
     enactment of the Comprehensive Electricity Competition Act by 
     a distribution utility that--
       ``(A) were incurred or undertaken by that distribution 
     utility in order to comply with a legal obligation on that 
     utility to provide electricity to electric consumers in its 
     service territory, and
       ``(B) cannot be recovered because of implementation of 
     retail competition under subsection (b).
       ``(b) Retail Competition Requirement.--Except as provided 
     in subsection (c), not later than January 1, 2003, any 
     distribution utility that has the capability to deliver 
     electric energy to an electric consumer over its facilities 
     shall offer open access to those facilities for the sale of 
     electric energy to the consumer and shall do so at rates, 
     terms, and conditions that are not unduly discriminatory or 
     preferential, as determined by the appropriate regulatory 
     authority.
       ``(c) Opt Out.--(1) A State regulatory authority (with 
     respect to a distibution utility for which it has ratemaking 
     authority) may direct a distribution utility not to implement 
     the retail competition requirement described in subsection 
     (b) if the State regulatory authority finds, after notice and 
     opportunity for hearing, that implementation of the retail 
     competition requirement by the distribution utility will have 
     a negative impact on a class of customers of that utility 
     that cannot be mitigated reasonably.
       ``(2) A nonregulated distribution utility may determine not 
     to implement the retail competition requirement described in 
     subsection (b) if it finds, after notice and opportunity for 
     hearing, that implementation of the retail competition 
     requirement by the distribution utility will have a negative 
     impact on a class of customers of that utility that cannot be 
     mitigated reasonably.
       ``(3) The State regulatory authority (with respect to a 
     distribution utility for which it has ratemaking authority) 
     or nonregulated distribution utility shall publish the 
     determination and its basis and shall file a notice with the 
     Commission of its determination by January 1, 2002.
       ``(d) Notice of Retail Competition.--A State regulatory 
     authority (with respect to a distribution utility for which 
     it has ratemaking authority) or nonregulated distribution 
     utility shall file with the Commission a notice that the 
     distribution utility has implemented or will implement retail 
     competition consistent with subsection (b). The notice shall 
     describe the implementation of retail competition. The notice 
     is effective for purposes of section 118 of this Act and 
     sections 212(h), 216, and 217 of the Federal Power Act on the 
     date the notice is filed or the date of implementation of 
     retail competition consistent with subsection (b) whichever 
     is later.
       ``(e) Consideration of Recovery of Retail Stranded Costs.--
     If a State regulatory authority conducts a public proceeding 
     before a distribution utility implements retail competition 
     as required under subsection (b), as part of this proceeding, 
     the State regulatory authority shall consider the appropriate 
     mechanism under State law to address recovery by a 
     distribution utility for which it has ratemaking authority of 
     retail stranded costs that are legitimate, prudent, and 
     verifiable, if the utility has taken all reasonable steps to 
     mitigate the costs. A charge imposed for purposes of 
     recovering retail stranded costs should be imposed in a 
     manner so as to minimize to the fullest extent possible any 
     effect on an electric consumer's choice among competing 
     suppliers or products.
       ``(f) Enforcement.--Any person may bring an action in the 
     appropriate State court against a State regulatory authority, 
     a distribution utility, or a nonregulated distribution 
     utility for failure to comply with this section. Filing an 
     action challenging whether retail competition is being 
     implemented consistent with subsetion (b) makes a notice of 
     retail competition ineffective for purposes of section 118 of 
     this Act and sections 212(h), 216, and 217 of the Federal 
     Power Act until final resolution of the action. 
     Notwithstanding any other law, a court created under Article 
     III of the Constitution does not have jurisdiction over an 
     action arising under this section.''.
       ``(b) Definition.--Section 3 of PURPA is amended by adding 
     after paragraph (21) the following new paragraph:
       ``(22) The term `notice of retail competition' means a 
     notice filed under section 609(d).''.

     SEC. 102. AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.

       PURPA is amended by adding the following new section 117:

     ``SEC. 118. AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.

       ``(a) State Regulatory Authority.--If a State regulatory 
     authority files a notice of retail competition with respect 
     to a distribution utility, beginning on the effective date of 
     the notice, the State regulatory authority may prohibit any 
     other distribution utility located in the United States over 
     which it does not have ratemaking authority (and any 
     affiliate of such a utility, as defined under the Public 
     Utility Holding Company Act of 1998) from selling electric 
     energy to electric consumers of a distribution 
     facility covered by the notice of retail competition, 
     unless a notice of retail competition has been filed with 
     respect to the other distribution utility.
       ``(b) Nonregulated Distribution Utility.--If a nonregulated 
     distribution utility files a notice of retail competition, 
     beginning on the effective date of the notice, it may 
     prohibit any other distribution utility located in the United 
     States (or affiliate of the utility, as defined under the 
     Public Utility Holding Company Act of 1998) from selling 
     electric energy to electric consumers of the nonregulated 
     distribution utility covered by the notice unless a notice of 
     retail competition has been filed with respect to the other 
     distribution utility.
       ``(c) Definitions.--For purposes of this section, 
     `distribution utility' and `nonregulated distribution 
     utility' have the meaning given them in section 609(a).''.

     SEC. 103. CONSUMER INFORMATION.

       PURPA is amended by adding the following new section after 
     section 118 as added by section 102 of this Act:

     ``SEC. 119. CONSUMER INFORMATION DISCLOSURE.

       ``(a) Disclosure Rules.--Not later than January 1, 2000, 
     the Secretary, in consultation with the Commission, the 
     Administrator of the Environmental Protection Agency, and the 
     Federal Trade Commission, shall issue rules prescribing the 
     form, content, placement, and timing of the supplier 
     disclosure required under subsections (b) and

[[Page S7944]]

     (c) of this section. The rules shall be prescribed in 
     accordance with section 553 of title 5, United States Code 
     (the Administrative Procedure Act).
       ``(b) Disclosure to Electric Consumers.--An electric 
     utility that offers to sell electric energy to an electric 
     consumer shall provide the electric consumer, to the extent 
     practicable and in accordance with rules issued under 
     subsection (a), a statement containing the following 
     information:
       ``(1) the nature of the service being offered, including 
     information about interruptibility or curtailment of service;
       ``(2) the price of the electric energy, including a 
     description of any variable charges;
       ``(3) a description of all other charges associated with 
     the service being offered including, but not limited to, 
     access charges, exit charges, back-up service charges, 
     stranded cost recovery charges, and customer service charges;
       ``(4) information concerning the type of energy resource 
     used to generate the electric energy and the environmental 
     attributes of the generation (including air emissions 
     characteristics); and
       ``(5) any other information the Secretary determines can be 
     provided feasibly and would be useful to consumers in making 
     purchasing decisions.
       ``(c) Disclosure to Wholesale Customers.--In every sale of 
     electric energy for resale, the seller shall provide to the 
     purchaser the information respecting the type of energy 
     resource used to generate the electric energy and the 
     environmental attributes of the generation required by rules 
     established under subsection (a).
       ``(d) Federal Trade Commission Enforcement.--A violation of 
     a rule prescribed under this section shall constitute an 
     unfair or deceptive act or practice in violation of section 5 
     of the Federal Trade Commission Act (15 U.S.C. 45) and shall 
     be treated as a violation of a rule under section 18 of the 
     Federal Trade Commission Act (15 U.S.C. 57a). All functions 
     and powers of the Federal Trade Commission under the Federal 
     Trade Commission Act are available to the Federal Trade 
     Commission to enforce compliance with this section 
     notwithstanding jurisdictional limitations in the Federal 
     Trade Commission Act.
       ``(e) Authority to Obtain Information.--Authority to obtain 
     information under section 11 of the Energy Supply and 
     Environmental Coordination Act of 1974 (15 U.S.C. 796) is 
     available to the Secretary to administer this section and to 
     the Federal Trade Commission to enforce this section. In 
     order to carry out its duties this section, the Federal Trade 
     Commission may use any of its powers under sections 3, 6, 9, 
     and 20 of the Federal Trade Commission Act (15 U.S.C. 43, 46, 
     49, and 57b-2) without regard to the limitations contained in 
     section 20(b) of that Act (15 U.S.C. 57b-2(b)) or any 
     jurisdictional limitations contained in that Act.
       ``(f) Enforcement by States.--(1) When a State determines 
     that the interests of its residents have been or are being 
     threatened or adversely affected because any person is 
     violating or has violated a rule of the Secretary under this 
     section, the State may bring a civil action on behalf of its 
     residents in an appropriate district court of the United 
     States--
       ``(A) enjoin the violation;
       ``(B) enforce compliance with the rule of the Secretary;
       ``(C) obtain damages, restitution, or other compensation on 
     behalf of its residents; or
       ``(D) obtain other relief the court considers appropriate.
       ``(2) The State shall serve prior written notice of any 
     civil action under this subsection upon the Federal Trade 
     Commission and provide the Federal Trade Commission with a 
     copy of its complaint, except that if it is not feasible for 
     the State to provide this prior notice, the State shall serve 
     the notice immediately upon instituting the action. Upon 
     receiving a notice respecting a civil action, the Federal 
     Trade Commission may--
       ``(A) intervene in the action, and
       ``(B) upon so intervening, be heard on all matters arising 
     in the action and file petition for appeal.
       ``(3) For purposes of bringing any civil action under this 
     subsection, this section does not prevent a State official 
     from exercising the powers conferred by State law to conduct 
     investigations, administer oaths or affirmations, or compel 
     the attendance of witnesses or the production of documentary 
     and other evidence.
       ``(4) While a civil action instituted by or on behalf of 
     the Federal Trade Commission for violation of any rule 
     prescribed under this subsection is pending, a State may not 
     institute a civil action under this section against a 
     defendant named in the complaint in the pending action for a 
     violation alleged in the complaint.
       ``(5) A civil action brought under this subsection may be 
     brought in the district in which the defendant is found, is 
     an inhabitant, or transacts business or wherever venue is 
     proper under section 1391 of title 28, United States Code. 
     Process in such an action may be served in any district in 
     which the defendant is an inhabitant or in which the 
     defendant may be found.
       ``(6) This section does not prohibit a State from 
     proceeding in State court on the basis of an alleged 
     violation of a State civil or criminal statute.''.

          TITLE II--FACILITATING STATE AND REGIONAL REGULATION

     SEC. 201. CLARIFICATION OF STATE AND FEDERAL AUTHORITY OVER 
                   RETAIL TRANSMISSION SERVICES.

       (a) Nonpreemption of State Authority to Order Retail 
     Wheeling and to Impose Local Delivery Charges.--Section 
     201(b) of the Federal Power Act (referred to in this Act as 
     ``the FPA'') is amended by adding the following new paragraph 
     after paragraph (2):
       ``(3) This Act does not preempt or otherwise affect any 
     authority under the law of a State or municipality to--
       ``(A) require unbundled transmission and local distribution 
     services for the delivery of electric energy directly to an 
     ultimate consumer, but if unbundled transmission is in 
     interstate commerce, the rates, terms, and conditions of the 
     transmission are subject to the exclusive jurisdiction of the 
     Commission under this part, or
       ``(B) impose a delivery charge on an ultimate consumer's 
     receipt of electric energy.''.
       (b) Open Access Transmission Authority; Retail Wheeling in 
     Retail Competition States.--
       (1) Applicability of open access transmission rules.--
     Section 206 of the FPA is amended by adding the following new 
     subsection after subsection (d):
       ``(e) Open Access Transmission Services.--(1) Under section 
     205 and this section, the Commission may require, by rule or 
     order, public utilities and transmitting utilities to provide 
     open access transmission services, subject to section 212(h), 
     and may authorize recovery of stranded costs, as defined by 
     the Commission, arising from any requirement to provide open 
     access transmission services. This section applies to any 
     rule or order issued by the Commission before the date of 
     enactment of the Comprehensive Electricity Competition 
     Act.''.
       (2) Authority to order retail wheeling.--Section 212(h) of 
     the FPA is amended--
       (A) by inserting ``(1)'' before ``No'';
       (B) by striking ``(1)'', ``(2)'', ``(A)'', and ``(B)'' and 
     inserting in their places ``(A)'', ``(B)'', ``(i)'', and 
     ``(ii)'' respectively;
       (C) by striking from redesignated paragraph (1)(B)(ii) 
     ``the date of enactment of this subsection'' and inserting 
     ``October 24, 1992,'' in its place; and
       (D) by adding at the end a new paragraph as follows:
       ``(2) Notwithstanding paragraph (1), the Commission may 
     issue an order that requires the transmission of electric 
     energy directly or indirectly to an ultimate consumer if a 
     notice of retail competition under section 609 of the Public 
     Utility Regulatory Policies Act of 1978 has been filed and is 
     in effect with respect to the ultimate consumer or if a 
     distribution utility offers open access to its delivery 
     facilities to the ultimate consumer.''.
       (3) Conforming amendments.--
       (A) Section 3(23) of the FPA is amended to read as follows:
       ``(23) `transmitting utility' means any entity that owns, 
     controls, or operates electric power transmission facilities 
     that are used for the sale of electric energy, 
     notwithstanding section 201(f) of this Act.''.
       (B) Section 3(24) of the FPA is amended to read as follows:
       ``(24) `transmission services' means the transmission of 
     electric energy sold or to be sold.''.
       (C) Section 211(a) of the FPA is amended by striking ``for 
     resale''.
       (D) Section 212(a) of the FPA is amended by striking 
     ``wholesale'' each time it appears, except the last time.
       (c) Applicability of Commission Jurisdiction to 
     Transmitting Utilities.--Section 206(e) of the FPA as added 
     by subsection (b)(1) of this section is amended by adding the 
     following new paragraphs after paragraph (1):
       ``(2)(A) The Commission has jurisdiction over the rates, 
     terms, and conditions for transmission services provided by a 
     transmitting utility that is not a public utility, subject to 
     section 212(h).
       ``(B) In exercising its authority under this paragraph, the 
     Commission--
       ``(i) shall take into account the different structural and 
     operating characteristics of transmitting utilities, 
     including the multi-tier structure and the not-for-profit 
     operations of cooperatives;
       ``(ii) with respect to any transmitting utility that has 
     outstanding loans made or guaranteed by the Rural Utilities 
     Service, shall take into account the policies of the 
     Department of Agriculture in implementing the Rural 
     Electrification Act of 1936 and shall assure, to the extent 
     practicable, that the utility will be able to meet any loan 
     obligations under that Act; and
       ``(iii) shall not approve rates, terms, or conditions the 
     Commission determines would have the effect of jeopardizing 
     the tax exempt status of nonprofit electric cooperatives 
     under the Internal Revenue Code of 1986.
       ``(C) Notwithstanding any other law, section 205, this 
     section, and part III apply to a transmitting utility that is 
     not a public utility for purposes of this section.
       ``(3) The Commission may suspend or modify for specified 
     periods application of its rules on nondiscriminatory open 
     access to one or more of the following entities: the 
     Tennessee Valley Authority, the Bonneville Power 
     Administration, the Southeastern Power Administration, the 
     Southwestern Power Administration, the Western Area Power 
     Administration, a corporation or association with outstanding 
     debt to the Administrator of the Rural Utility Service 
     relating to electric utility facilities, or a full-
     requirements wholesale customer of any of

[[Page S7945]]

     these entities, if the Commission finds that the entity will 
     not be able to recover stranded costs.
       ``(4) Any electric utility that owns, directly or 
     indirectly, generation facilities financed in whole or in 
     part with outstanding loans made or guaranteed by the Rural 
     Utilities Service may apply to the Commission to impose a 
     charge for the recovery of stranded costs as defined by the 
     Commission. If the Commission determines that the proposed 
     charge is just, reasonable, and not unduly discriminatory 
     or preferential, the Commission may issue an order 
     providing for the imposition of the charge on transmission 
     service by the applicant or by another transmitting 
     utility or on any electric utility or transaction subject 
     to the Commission's jurisdiction.''.

     SEC. 202. INTERSTATE COMPACTS ON REGIONAL TRANSMISSION 
                   PLANNING.

       The FPA is amended by adding after section 214 the 
     following new section:


        ``INTERSTATE COMPACTS ON REGIONAL TRANSMISSION PLANNING

       ``Sec. 215. (a) The consent of Congress is given for an 
     agreement to establish a regional transmission planning 
     agency, if the Commission determines that the agreement 
     would--
       ``(1) facilitate coordination among the States within a 
     particular region with regard to the planning of future 
     transmission, generation, and distribution facilities,
       ``(2) carry out State electric facility siting 
     responsibilities more effectively,
       ``(3) meet the other requirements of this section and rules 
     prescribed by the Commission under this section, and
       ``(4) otherwise be consistent with the public interest.
       ``(b)(1) If the Commission determines that an agreement 
     meets the requirements of subsection (a), the agency 
     established under the agreement has the authority necessary 
     or appropriate to carry out the agreement. This authority 
     includes authority with respect to matters otherwise within 
     the jurisdiction of the Commission, if expressly provided for 
     in the agreement and approved by the Commission.
       ``(2) The Commission's determination under this section may 
     be subject to any terms or conditions the Commission 
     determines are necessary to ensure that the agreement is in 
     the public interest.
       ``(c)(1) The Commission shall prescribe--
       ``(A) criteria for determining whether a regional 
     transmission planning agreement meets subsection (a), and
       `'(B) standards for the administration of a regional 
     transmission planning agency established under the agreement.
       ``(2) The criteria shall provide that, in order to meet 
     subsection (a)--
       ``(A) a regional transmission planning agency must operate 
     within a region that includes all tribal governments and all 
     or part of each State that is a party to the agreement,
       ``(B) a regional transmission planning agency must be 
     composed of one or more members from each State and tribal 
     government that is a party to the agreement,
       ``(C) each participating State and tribal government must 
     vest in the regional transmission planning agency the 
     authority necessary to carry out the agreement and this 
     section, and
       ``(D) the agency must follow workable and fair procedures 
     in making its decisions, in governing itself, and in 
     regulating parties to the agreement with respect to matters 
     covered by the agreement, including a requirement that all 
     decisions of the agency be made by majority vote (or majority 
     of weighted votes) of the members present and voting.
       ``(3) The criteria may include any other requirement for 
     meeting subsection (a) that the Commission determines is 
     necessary to ensure that the regional transmission planning 
     agency's organization, practices, and procedures are 
     sufficient to carry out this section and the rules issued 
     under it.
       ``(d) The Commission, after notice and opportunity for 
     comment, may terminate the approval of an agreement under 
     this section at any time if it determines that the regional 
     transmission planning agency fails to comply with this 
     section or Commission prescriptions under subsection (c) or 
     that the agreement is contrary to the public interest.
       ``(e) Section 313 applies to a rehearing before a regional 
     transmission planning agency and judicial review of any 
     action of a regional transmission planning agency. For this 
     purpose, when section 313 refers to ``Commission'', 
     substitute ``regional transmission planning agency'' and when 
     section 313(b) refers to ``licensee or public utility'', 
     substitute ``entity''. ''.

     SEC. 203. BACKUP AUTHORITY TO IMPOSE A CHARGE ON AN ULTIMATE 
                   CONSUMER'S RECEIPT OF ELECTRIC ENERGY.

       The FPA is amended by adding the following new section 
     after section 215 as added by section 202 of this Act:


      ``BACKUP AUTHORITY FOR CHARGE ON RECEIPT OF ELECTRIC ENERGY

       ``Sec. 216. (a) If a State regulatory authority that has 
     provided notice of retail competition under section 609 of 
     the Public Utility Regulatory Policies Act of 1978 for a 
     distribution utility determines that the utility should be 
     authorized or required to impose a charge on an ultimate 
     consumer's receipt of electric energy but the State 
     regulatory authority lacks authority to authorize or 
     require imposition of such a charge, the State regulatory 
     authority may apply to the Commission for an order 
     providing for the imposition of the charge. If the 
     Commission determines that the imposition of the charge is 
     just, reasonable, and not unduly discriminatory or 
     preferential; is consistent with the State regulatory 
     authority's policy regarding the imposition of the charge; 
     and is not specifically prohibited by State law, the 
     Commission may issue an order providing for the imposition 
     of the charge.
       ``(b) If a utility that has outstanding loans made or 
     guaranteed by the Rural Utilities Service and that has filed 
     a notice of retail competition under section 609 of the 
     Public Utilities Regulatory Policies Act of 1978 determines 
     that it is appropriate to impose a charge on an ultimate 
     consumer's receipt of electric energy, but lacks the 
     authority to impose such a charge under State law, the 
     utility may apply to the Commission for an order providing 
     for the imposition of a charge. If the Commission determines 
     that the proposed charge is just, reasonable, and not unduly 
     discriminatory or preferential, the Commission may issue an 
     order providing for the imposition of the charge.''.

     SEC. 204. AUTHORITY TO ESTABLISH AND REQUIRE INDEPENDENT 
                   SYSTEM OPERATION.

       Section 202 of the FPA is amended by adding the following 
     new subsection after subsection (g):
       ``(h) Upon its own motion or upon application or complaint 
     and after notice and an opportunity for a hearing, the 
     Commission may order the establishment of an entity for the 
     purpose of independent operation and control of 
     interconnected transmission facilities, may order a 
     transmitting utility to relinquish control over operation of 
     its transmission facilities to an entity established for the 
     purpose of independent operation and control of 
     interconnected transmission facilities, or may do both, if 
     the Commission finds that--
       ``(1) this action is appropriate to promote competitive 
     electricity markets and efficient, economical, and reliable 
     operation of the interstate transmission grid;
       ``(2) the entity established for the purpose of independent 
     operation and control of interconnected transmission 
     facilities will operate the transmission facilities in a 
     manner that assures that ownership of transmission facilities 
     provides no advantage in competitive electricity markets; and
       ``(3) any transmitting utility ordered to transfer control 
     of its transmission facilities will receive just and 
     reasonable compensation for the use of its facilities.''.

                       TITLE III--PUBLIC BENEFITS

     SEC. 301. PUBLIC BENEFITS FUND.

       PURPA is amended by adding after section 609, as added by 
     section 101 of this Act, the following new section:

     ``SEC. 610. PUBLIC BENEFITS FUND.

       ``(a) Definitions.--For purposes of this section--
       ``(1) the term `Board' means the Federal-State Joint Board 
     established under subsection (b)(1);
       ``(2) the term `eligible public purpose program' means a 
     program that supports one or more of the following--
       ``(A) availability of affordable electricity service to 
     low-income customers,
       ``(B) implementation of energy conservation and energy 
     efficiency measures and energy management practices,
       ``(C) consumer education,
       ``(D) the development and demonstration of an electricity 
     generation technology that the Secretary determines is 
     emerging from research and development, provides 
     environmental benefits, and--
       ``(i) has significant national commercial potential, or
       ``(ii) provides energy security or generation resource 
     diversity benefits, or
       ``(E) rural assistance subsequent to a determination made 
     under subsection (d)(4);
       ``(3) the term `fiscal agent' means the entity designated 
     under subsection (b)(2)(B);
       ``(4) the term `Fund' means the Public Benefits Fund 
     established under subsection (b)(2)(A); and
       ``(5) the term `State' means each of the contiguous States 
     and the District of Columbia.
       ``(b) Federal-State Joint Board.--(1) A Federal-State Joint 
     Board is established whose membership is composed of two 
     officers or employees of the United States Government 
     appointed by the Secretary and five State commissioners 
     appointed by the national organization of State commissions. 
     The Secretary shall designate the Chair of the Board.
       ``(2) The Board shall--
       ``(A) establish a Public Benefits Fund upon petition of 
     States and tribal governments wishing to participate in the 
     program under this section,
       ``(B) appoint a fiscal agent, from persons nominated by the 
     States and tribal governments petitioning to establish the 
     Fund, and
       ``(C) administer the Fund as set forth in this section.
       ``(c) Fiscal Agent.--The fiscal agent appointed by the 
     Board shall collect and disburse the amounts in the Fund as 
     set forth in this section.
       ``(d) Secretary.--The Secretary shall prescribe rules for--
       ``(1) the determination of charges under subsection (e);
       ``(2) the collection of amounts for the Fund, including 
     provisions for overcollection or undercollection;
       ``(3) distribution of amounts from the Fund; and
       ``(4) the criteria under which the Board determines whether 
     a State or tribal government's program is an eligible public 
     purpose

[[Page S7946]]

     program, including a rural assistance program. A rural 
     assistance program shall be an eligible public purpose 
     program to the extent that the Secretary, in consultation 
     with the Secretary of Agriculture, determines by rule that 
     significant adverse economic effects on rural customers have 
     occurred or will occur as a result of electricity 
     restructuring that meets the retail competition requirements 
     of this Act. After such a determination is made, the 
     Secretary, in consultation with the Secretary of Agriculture, 
     shall specify by rule the mechanism for distribution of funds 
     to rural assistance programs, amounts to be provided, and 
     variances to the overall requirements to the Public Benefits 
     Fund under this section, if any. For the purposes of funding 
     of rural assistance programs, the Secretary shall increase 
     the charge for the Public Benefit Fund as necessary, up to a 
     maximum of .17 mills per kilowatt hour. Funding for rural 
     assistance programs under this section shall be provided 
     exclusively from this increase in the charge.
       ``(e) Public Benefits Charge.--(1) As a condition of 
     existing or future interconnection with facilities of any 
     transmitting utility, each owner of an electric generating 
     facility whose capacity exceeds one megawatt shall pay the 
     transmitting utility a public benefits charge determined 
     under paragraph (2), even if the generation facility and the 
     transmitting facility are under common ownership or are 
     otherwise affiliated. Each importer of electric energy from 
     Canada or Mexico, as a condition of existing or future 
     interconnection with facilities of any transmitting utility 
     in the United States, shall pay this same charge for imported 
     electric energy. The transmitting utility shall pay the 
     amounts collected to the fiscal agent at the close of each 
     month, and the fiscal agent shall deposit the amounts into 
     the Fund.
       ``(2)(A) The Board shall notify the Commission of the sum 
     of the requests of all States and tribal governments under 
     subsection (f) within 30 days after receiving the requests.
       ``(B) The Commission shall calculate the rate for the 
     public benefits charge for each calendar year at an amount, 
     not in excess of 1 mill per kilowatt-hour, equal to the sum 
     of the requests of all States and tribal governments under 
     subsection (f) for programs described in subsection (a)(2)(A) 
     through (a)(2)(D) divided by the estimated kilowatt hours of 
     electric energy to be generated by generators subject to the 
     charge. Every five years the Secretary shall review the 
     charge and shall direct the Commission to revise the charge 
     as appropriate to maintain a total Fund level relatively 
     close to the target level of approximately $3 billion per 
     year nationwide, adjusted for inflation. If there are 
     significant receipts from the sale of Renewable Energy 
     Credits under section 611, the Secretary shall review the 
     rate for this charge on a more frequent basis and may direct 
     the Commission to reduce the charge by some portion of these 
     receipts as long as sufficient funds remain to ensure that 
     the Fund level is appropriate to achieve the environment 
     goals of this section and section 611 of this Act.
       ``(C) If a finding is made under subsection (d)(4) in 
     relation to rural customers, the pubic benefit charge shall 
     be increased as indicated under subsection (d)(4).
       ``(f) State and Tribal Government Participation.--(1) Not 
     later than 90 days before the beginning of each calendar 
     year, each State and tribal government seeking to participate 
     in the Fund shall submit to the Board a request for 
     payments from the Fund for the calendar year in an amount 
     not in excess of 50 percent of the State or tribal 
     government's estimated expenditures for eligible public 
     purpose programs for the year, except as provided under 
     rules issued under subsection (d)(4) for rural assistance 
     programs.
       ``(2) To the extent a State or tribal government generates 
     all or part of its funds for eligible public purpose programs 
     through a wires charge on an ultimate consumer's receipt of 
     electric energy, the State or tribal government shall impose 
     the charge on a non-discriminatory basis on all consumers 
     within the State or tribal government jurisdiction.
       ``(3) Notwithstanding subsection (a)(5)--
       ``(A) Alaska may participate in the Fund as a State if it 
     certifies to the Board that all generators within Alaska with 
     a nameplate capacity exceeding one megawatt shall pay into 
     the Fund at the rate calculated by the Board during the year 
     in which Alaska seeks matching funds, and
       ``(B) Hawaii may participate in the Fund as a State if it 
     certifies to the Board that all generators within Hawaii with 
     a nameplate capacity exceeding one megawatt shall pay into 
     the Fund at the rate calculated by the Board during the year 
     in which Hawaii seeks matching funds.
       ``(g) Disbursal From the Fund.--The Board shall review 
     State and tribal government submissions and determine whether 
     programs designated by the State or tribal government are 
     eligible public purpose programs, using the criteria 
     prescribed under subsection (d), and whether there is 
     reasonable assurance that spending qualifying as State or 
     tribal government matching funds will occur.
       ``(2) The fiscal agent shall disburse amounts in the Fund 
     to participating States and tribal governments to carry out 
     eligible public purpose programs in accordance with this 
     subsection and rules prescribed under subsection (d).
       ``(3) To the extent the aggregate amount of funds requested 
     by the States and tribal governments exceeds the maximum 
     aggregate revenues eligible to be collected under subsection 
     (e) and deposited as payment for Renewable Energy Credits 
     under section 611, the fiscal agent shall reduce each 
     participating State and tribal government's request 
     proportionately.
       ``(4)(A) The fiscal agent shall disburse amounts for a 
     calendar year from the Fund to a State or tribal government 
     in twelve equal monthly payments beginning two months after 
     the beginning of the calendar year. Amounts disbursed may not 
     exceed the lesser of the State or tribal government's request 
     for the fiscal year, after any reduction required under 
     paragraph (3), or 50 percent of the State or tribal 
     government's documented expenditures for eligible public 
     purpose programs for a calendar year, except as provided 
     under rules issued under subsection (d)(4) for rural 
     assistance programs.
       ``(B) The fiscal agent shall make distributions to the 
     State or tribal government or to an entity designated by the 
     State or tribal government to receive payments. The State or 
     tribal government may designate a nonregulated utility as an 
     entity to receive payments under this section.
       ``(C) A State or tribal government may use amounts received 
     only for the eligible public purpose programs the State or 
     tribal government designated in its submission to the Board 
     and the Board determined eligible.
       ``(h) Report.--One year before the date of expiration of 
     this section, the Secretary shall report to Congress, after 
     consultation with the Board, whether a public benefits fund 
     should continue to exist.
       ``(i) Sunset.--This section expires at midnight on December 
     31 of the fifteenth year after the year the Comprehensive 
     Electricity Competition Act is enacted, except with regard to 
     charges and funding for rural assistance programs.''.

     SEC. 302. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       (a) Standard. PURPA is amended by adding after section 610, 
     as added by section 301 of this Act, the following new 
     section:

     ``SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Minimum Renewable Generation Requirement.--For each 
     calendar year beginning with 2000, a retail electric supplier 
     shall submit to the Secretary Renewable Energy Credits in an 
     amount equal to the required annual percentage, specified in 
     subsection (b), of the total electric energy sold by the 
     retail electric supplier to electric consumers in the 
     calendar year. The retail electric supplier shall make this 
     submission before April 1 of the following calendar year.
       ``(2) For purposes of this section `renewable energy' means 
     energy produced by solar, wind, geothermal, or biomass.
       ``(3) This section does not preclude a State from requiring 
     additional renewable energy generation in that State.
       ``(b) Required Annual Percentage.--(1) The Secretary shall 
     determine the required annual percentage that is to be 
     applied to all retail electric suppliers for calendar years 
     2000-2004. This required annual percentage shall be equal to 
     the percent of the total electric energy sold, during the 
     most recent calendar year for which information is available 
     before the calendar year of the enactment of this section, by 
     retail electric suppliers to electric customers in the United 
     States that is renewable energy.
       ``(2) The Secretary shall determine the required annual 
     percentage for all retail electric suppliers for calendar 
     years 2005-2009. This percentage shall be above the 
     percentage in paragraph (1) and below the percentage in 
     paragraph (3) and shall be selected to promote a smooth 
     transition to the level in paragraph (3).
       ``(3) for calendar years 2010-2015, 5.5 percent.
       ``(c) Submission of Credits.--A retail electric supplier 
     may satisfy the requirements of subsection (a) through the 
     submission of--
       ``(1) Renewable Energy Credits issued under subsection (d) 
     for renewable energy generated by the retail electric 
     supplier in the calendar year for which Credits are being 
     submitted or any previous calendar year,
       ``(2) Renewable Energy Credits issued under subsection (d) 
     to any renewable energy generator for renewable energy 
     generated in the calendar year for which Credits are being 
     submitted or a previous calendar year and acquired by the 
     retail electric supplier, or
       ``(3) any combination of Credits under paragraphs (1) and 
     (2).
       ``(d) Issuance of Credits.--The Secretary shall establish, 
     not later than one year after the date of enactment of this 
     section, a program to issue, monitor the sale or exchange of, 
     and track Renewable Energy Credits.
       ``(2) Under the program, an entity that generates electric 
     energy through the use of renewable energy may apply to the 
     Secretary for the issuance of Renewable Energy Credits. The 
     application shall indicate--
       ``(A) the type of energy used to produce the electricity,
       ``(B) the State in which the electric energy was produced, 
     and
       ``(C) any other information the Secretary determines 
     appropriate.
       ``(3) The Secretary shall issue to an entity one Renewable 
     Energy Credit for each kilowatt-hour of electric energy the 
     entity generates through the use of renewable energy in any 
     State in 2000 and any succeeding year. To be eligible for a 
     Renewable Energy Credit, the unit of electricity generated 
     through the use of renewable energy may be sold or may be 
     used by the generator. If both renewable energy and 
     nonrenewable energy are

[[Page S7947]]

     used to generate the electric energy, the Secretary shall 
     issue credits based on the proportion of renewable energy 
     used. The Secretary shall identify Renewable Energy Credits 
     by type of generation and by the State in which the 
     generating facility is located.
       ``(4) In order to receive a Renewable Energy Credit, the 
     recipient of a Renewable Energy Credit shall pay a fee, 
     calculated by the Secretary, in an amount that is equal to 
     the administrative costs of issuing, recording, monitoring 
     the sale or exchange of, and tracking the Credit or does not 
     exceed five percent of the dollar value of the Credit, 
     whichever is lower. The Secretary shall retain the fee and 
     use it to pay these administrative costs.
       ``(5) When a generator sells electric energy generated 
     through the use of renewable energy to a retail electric 
     supplier under a contract subject to section 210 of this Act, 
     the retail electric supplier is treated as the generator of 
     the electric energy for the purposes of this section for the 
     duration of the contract.
       ``(6) The Secretary shall disqualify an otherwise eligible 
     renewable energy generator from receiving a Renewable Energy 
     Credit if the generator has elected to participate in net 
     metering under section 612.
       ``(7) If a generator using renewable energy receives 
     matching funds under section 610, the Secretary shall reduce 
     the number of Renewable Energy Credits the generator receives 
     under paragraph (3) so that the aggregate value of those 
     Credits plus the matching funds received under section 610 
     equals the aggregate value of the Credits the generator would 
     have received absent this paragraph. For purposes of this 
     paragraph, the Secretary shall value a Credit at a price that 
     is representative of the price of a Credit in private 
     transactions. In no event shall the Secretary use a price to 
     establish values for purposes of this paragraph that exceeds 
     the cost cap established under subsection (f).
       ``(e) Sale or Exchange.--A Renewable Energy Credit may be 
     sold or exchanged by the entity to whom issued or by any 
     other entity who acquires the Credit. A Renewable Energy 
     Credit for any year that is not used to satisfy the 
     minimum renewable generation requirement of subsection (a) 
     for that year may be carried forward for use in another 
     year.
       ``(f) Renewable Energy Credit Cost Cap.--Beginning January 
     1, 2000, the Secretary shall offer Renewable Energy Credits 
     for sale. The Secretary shall charge 1.5 cents for each 
     Renewable Energy Credit sold during calendar year 2000, and 
     on January 1 of each following year, the Secretary shall 
     adjust for inflation, based on the Consumer Price Index, the 
     price charged per Credit for that calendar year. The 
     Secretary shall deposit in the Public Benefits Fund 
     established under section 610 the amount received from a sale 
     under this subsection. That amount shall be used for the same 
     purpose as other amounts in the Public Benefits Fund.
       ``(g) Enforcement.--The Secretary may being an action in 
     the appropriate United States district court to impose a 
     civil penalty on a retail electric supplier that does not 
     comply with subsection (a). A retail electric supplier who 
     does not submit the required number of Renewable Energy 
     Credits under subsection (a) is subject to a civil penalty of 
     not more than three times the value of the Renewable Energy 
     Credits not submitted. For purposes of this subsection, the 
     value of a Renewable Energy Credit is the price of a Credit 
     determined under subsection (f) for the year the Credits were 
     not submitted.
       ``(h) Information Collection.--The Secretary may collect 
     the information necessary to verify and audit--
       ``(1) the annual electric energy generation and renewable 
     energy generation of any entity applying for Renewable Energy 
     Credits under this section,
       ``(2) the validity of Renewable Energy Credits submitted by 
     a retail electric supplier to the Secretary, and
       ``(3) the quantity of electricity sales of all retail 
     electric suppliers.
       ``(i) Sunset.--This section expires December 31, 2015.''.
       ``(b) Definition.--Section 3 of PURPA is amended by adding 
     after paragraph (22) as added by section 101 of this Act the 
     following new paragraph:
       ``(23) The term `retail electric supplier' means a person, 
     State agency, or Federal agency that sells electric energy to 
     an electric consumer.''.

     SEC. 303. NET METERING.

       PURPA is amended by adding the following new section after 
     section 611 as added by section 302 of this Act:

     SEC. 612. NET METERING FOR RENEWABLE ENERGY.

       ``(a) Definitions.--For purposes of this section--
       ``(1) The term `eligible on-site generating facility' means 
     a facility on the site of an electric consumer with a peak 
     generating capacity of 20 kilowatts or less that is fueled 
     solely by a renewable energy resource.
       ``(2) The term `renewable energy resource' means solar 
     energy, wind, geothermal, or biomass.
       ``(3) The term `net metering service' means service to an 
     electric consumer under which electricity generated by that 
     consumer from an eligible on-site generating facility and 
     delivered to the distribution system through the same meter 
     through which purchased electricity is received may be used 
     to offset electricity provided by the retail electric 
     supplier to the electric consumer during the applicable 
     billing period so that an electric consumer is billed only 
     for the net electricity consumed during the billing 
     period, but in no event shall the net be less than zero 
     during the applicable billing period.
       ``(b) Requirement to Provide Net Metering Service.--Each 
     retail electric supplier shall make available upon request 
     net metering service to any retail electric consumer whom the 
     supplier currently serves or solicits for service.
       ``(c) Requirement to Provide Interconnection.--A 
     distribution utility, as defined in section 609, shall permit 
     the interconnection to its distribution system of an on-site 
     generating facility if the facility meets the safety and 
     power quality standards established by the Commission.
       ``(d) Rules.--The Commission shall prescribe safety and 
     power quality standards and rules necessary to carry out this 
     section. These standards and rules apply to any 
     interconnections of an on-site generating facility with a 
     distribution system, regardless of the size of the facility 
     or the type of fuel used by the facility.
       ``(e) State Authority.--This section does not preclude a 
     State from imposing additional requirements consistent with 
     the requirements in this section. A State may impose a cap 
     limiting the amount of net metering available in the 
     State.''.

     SEC. 304. REFORM OF SECTION 210 OF PURPA.

       Section 210 of PURPA is amended by adding the following new 
     subsection after subsection (l):
       ``(m) Repeal of Mandatory Purchase Requirement.--After the 
     date of enactment of the Comprehensive Electricity 
     Competition Act, an electric utility shall not be required to 
     enter into a new contract or obligation to purchase electric 
     energy under this section.''.

        TITLE IV--REGULATION OF MERGERS AND CORPORATE STRUCTURE

     SEC. 401. REFORM OF HOLDING COMPANY REGULATION UNDER PUHCA.

       Effective 18 months after the enactment of this Act, the 
     Public Utility Holding Company Act of 1935 is repealed and 
     the following is enacted in its place.

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Public Utility Holding 
     Company Act of 1998'.

     ``SEC. 2. DEFINITIONS.

       ``For purposes of this Act--
       ``(1) the term `affiliate' of a company means any company 5 
     percent or more of the outstanding voting securities of which 
     are owned, controlled, or held with power to vote, directly 
     or indirectly, by such company;
       ``(2) the term `associate company' of a company means any 
     company in the same holding company system with such company;
       ``(3) the term `Commission' means the Federal Energy 
     Regulatory Commission;
       ``(4) the term `company' means a corporation, partnership, 
     association, joint stock company, business trust, or any 
     organized group of persons, whether incorporated or not, or a 
     receiver, trustee, or other liquidating agent of any of the 
     foregoing;
       ``(5) the term `electric utility company' means any company 
     that owns or operates facilities used for the generation, 
     transmission, or distribution of electric energy for sale;
       ``(6) the terms `exempt wholesale generator' and `foreign 
     utility company' have the same meanings as in sections 32 and 
     33, respectively, of the Public Utility Holding Company Act 
     of 1935, as those sections existed on the day before the 
     effective date of this Act;
       ``(7) the term `gas utility company' means any company that 
     owns or operates facilities used for distribution at retail 
     (other than the distribution only in enclosed portable 
     containers, or distribution to tenants or employees of the 
     company operating such facilities for their own use and not 
     for resale) of natural or manufactured gas for heat, light, 
     or power;
       ``(8) the term `holding company' means--
       ``(A) any company that directly or indirectly owns, 
     controls, or holds, with power to vote, 10 percent or more of 
     the outstanding voting securities of a public utility company 
     or of a holding company of any public utility company; and
       ``(B) any person, determined by the Commission, after 
     notice and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with one or more persons) such a controlling 
     influence over the management or policies of any public 
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this Act upon 
     holding companies;
       ``(9) the term `holding company system' means a holding 
     company, together with its subsidiary companies;
       ``(10) the term `jurisdictional rates' means rates 
     established by the Commission for the transmission of 
     electric energy, the sale of electric energy at wholesale in 
     interstate commerce, the transportation of natural gas, and 
     the sale in interstate commerce of natural gas for resale for 
     ultimate public consumption for domestic, commercial, 
     industrial, or any other use;
       ``(11) the term `natural gas company' means a person 
     engaged in the transportation of natural gas in interstate 
     commerce or the sale of such gas in interstate commerce for 
     resale;

[[Page S7948]]

       ``(12) the term `person' means an individual or company;
       ``(13) the term `public utility' means any person who owns 
     or operates facilities used for transmission of electric 
     energy or sales of electric energy at wholesale in interstate 
     commerce;
       ``(14) the term `public utility company' means an electric 
     utility company or a gas utility company;
       ``(15) the term `State commission' means any commission, 
     board, agency, or officer, by whatever name designated, of a 
     State, municipality, or other political subdivision of a 
     State that, under the laws of such State, has jurisdiction to 
     regulate public utility company;
       ``(16) the term `subsidiary company' of a holding company 
     means--
       ``(A) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       ``(B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or indirectly, by such holding company (either alone or 
     pursuant to an arrangement or understanding with one or more 
     other persons) so as to make it necessary for the rate 
     protection of utility customers with respect to rates that 
     such person be subject to the obligations, duties and 
     liabilities imposed by this Act upon subsidiary companies of 
     holding companies; and
       ``(17) the term `voting security' means any security 
     presently entitling the owner or holder thereof to vote in 
     the direction or management of the affairs of a company.

     ``SEC. 3. FEDERAL ACCESS TO BOOKS AND RECORDS.

       ``(a) In General.--Each holding company and each associate 
     company thereof shall maintain, and shall make available to 
     the Commission, such books, accounts, records, memoranda, and 
     other records as the Commission deems to be relevant to costs 
     incurred by a public utility or natural gas company that is 
     an associate company of such holding company and necessary or 
     appropriate for the protection of utility customers with 
     respect to jurisdictional rates for the transmission of 
     electric energy, the sale of electric energy at wholesale 
     in interstate commerce, the transportation of natural gas 
     in interstate commerce, and the sale in interstate 
     commerce of natural gas for resale for ultimate public 
     consumption for domestic, commercial, industrial, or any 
     other use.
       ``(b) Affiliate Companies.--Each affiliate of a holding 
     company or of any subsidiary company of a holding company 
     shall maintain, and make available to the Commission, such 
     books, accounts, memoranda, and other records with respect to 
     any transaction with another affiliate, as the Commission 
     deems relevant to costs incurred by a public utility or 
     natural gas company that is an associate company of such 
     holding company and necessary or appropriate for the 
     protection of utility customers with respect to 
     jurisdictional rates.
       ``(c) Holding Company Systems.--The Commission may examine 
     the books, accounts, memoranda, and other records of any 
     company in a holding company system, or any affiliate 
     thereof, as the Commission deems relevant to costs incurred 
     by a public utility or natural gas company within such 
     holding company system and necessary or appropriate for the 
     protection of utility customers with respect to 
     jurisdictional rates.
       ``(d) Confidentiality.--No member, officer, or employee of 
     the Commission shall divulge any fact or information that may 
     come to his or her knowledge during the course of examination 
     of books, accounts, memoranda, or other records as provided 
     in this section, except as may be directed by the Commission 
     or by a court of competent jurisdiction.

     ``SEC. 4. STATE ACCESS TO BOOKS AND RECORDS.

       ``(a) In General.--Upon the written request of a State 
     commission having jurisdiction to regulate a public utility 
     company in a holding company system, the holding company or 
     any associate company or affiliate thereof, other than such 
     public utility company, wherever located, shall produce for 
     inspection such books, accounts, memoranda, and other records 
     that--
       ``(1) have been identified in reasonable detail in a 
     proceeding before the State commission;
       ``(2) the State commission deems are relevant to costs 
     incurred by such public utility company; and
       ``(3) are necessary for the effective discharge of the 
     responsibilities of the State commission with respect to such 
     proceeding.
       ``(b) Limitation.--Subsection (a) does not apply to any 
     person that is a holding company solely by reason of 
     ownership of one or more qualifying facilities under the 
     Public Utility Regulatory Policies Act of 1978.
       ``(c) Confidentiality of Information.--The production of 
     books, accounts, memoranda, and other records under 
     subsection (a) shall be subject to such terms and conditions 
     as may be necessary and appropriate to safeguard against 
     unwarranted disclosure to the public of any trade secrets or 
     sensitive commercial information.
       ``(d) Effect on State Law.--Nothing in this section shall 
     preempt applicable State law concerning the provision of 
     books, records, or any other information, or in any way limit 
     the rights of any State to obtain books, records, or any 
     other information under any other Federal law, contract, or 
     otherwise.
       ``(e) Court Jurisdiction.--Any United States district court 
     located in the State in which the State commission referred 
     to in subsection (a) is located shall have jurisdiction to 
     enforce compliance with this section.

     ``SEC. 5. EXEMPTION AUTHORITY.

       ``(a) rulemaking.--Not later than 90 days after the 
     effective date of this Act, the Commission shall promulgate a 
     final rule to exempt from the requirements of section 3 any 
     person that is a holding company, solely with respect to one 
     or more--
       ``(1) qualifying facilities under the Public Utility 
     Regulatory Policies Act of 1978;
       ``(2) exempt wholesale generators; or
       ``(3) foreign utility companies.
       ``(b) Other Authority.--If, upon application or upon its 
     own motion, the Commission finds that the books, records, 
     accounts, memoranda, and other records of any person are not 
     relevant to the jurisdictional rates of a public utility or 
     natural gas company, or if the Commission finds that any 
     class of transactions is not relevant to the jurisdictional 
     rates of a public utility or natural gas company, the 
     Commission shall exempt such person or transaction from the 
     requirements of section 3.

     ``SEC. 6. AFFILIATE TRANSACTIONS.

       ``Nothing in this Act shall preclude the Commission or a 
     State commission from exercising its jurisdiction under 
     otherwise applicable law to determine whether a public 
     utility company, public utility, or natural gas company may 
     recover in rates any costs of an activity performed by an 
     associate company, or any costs of goods or services acquired 
     by such public utility company from an associate company.

     ``SEC. 7. APPLICABILITY.

       ``No provision of this Act shall apply to, or be deemed to 
     include--
       ``(1) the United States;
       ``(2) a State or any political subdivision of a State;
       ``(3) any foreign governmental authority not operating in 
     the United States;
       ``(4) any agency, authority, or instrumentality of any 
     entity referred to in paragraph (1), (2), or (3); or
       ``(5) any officer, agent, or employee of any entity 
     referred to in paragraph (1), (2), or (3) acting as such in 
     the course of official duty.

     SEC 8. EFFECT ON OTHER REGULATIONS.

       ``Nothing in this Act precludes the Commission or a State 
     commission from exercising its jurisdiction under otherwise 
     applicable law to protect utility customers.

     ``SEC. 9, ENFORCEMENT.

       ``The Commission shall have the same powers as set forth in 
     sections 306 through 317 of the Federal Power Act (16 U.S.C. 
     825d-825p) to enforce the provisions of this Act.

     ``SEC. 10. SAVINGS PROVISIONS.

       ``(a) In General.--Nothing in this Act prohibits a person 
     from engaging in or continuing to engage in activities or 
     transactions in which it is legally engaged or authorized to 
     engage on the effective date of this Act.
       ``(b) Effect on Other Commission Authority.--Nothing in 
     this Act limits the authority of the Commission under the 
     Federal Power Act (16 U.S.C. 791a et seq.) (including section 
     301 of that Act) or the Natural Gas Act (15 U.S.C. 717 et 
     seq.) (including section 8 of that Act).

     ``SEC. 11. IMPLEMENTATION.

       ``Not later that 18 months after the date of enactment of 
     the Comprehensive Electricity Competition Act, the Commission 
     shall--
       ``(1) promulgate such regulations as may be necessary or 
     appropriate to implement this Act (other than section 4); and
       ``(2) submit to the Congress detailed recommendations on 
     technical and conforming amendments to Federal law necessary 
     to carry out this Act and the amendments made by this Act.

     ``SEC. 12. TRANSFER OF RESOURCES.

       ``All books and records that relate primarily to the 
     functions transferred to the Commission under this Act shall 
     be transferred from the Securities and Exchange Commission of 
     the Commission.

     ``SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such funds as may 
     be necessary to carry out this Act.

     ``SEC. 14. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.

       ``Section 318 of the Federal Power Act (16 U.S.C. 825q) is 
     repealed.''.

     SEC. 402. ELECTRIC COMPANY MERGERS.

       Section 203(a) of the FPA is amended by--
       (1) striking ``public utility'' each time it appears and 
     inserting in its place ``person or electric utility 
     company'';
       (2) inserting after the first sentence the following: 
     ``Except as the Commission otherwise provides, a holding 
     company in a holding company system that includes an electric 
     utility company shall not, directly or indirectly, purchase, 
     acquire, or take any security of an electric utility company 
     or of a holding company in a holding company system that 
     includes an electric utility company, without first securing 
     an order of the Commission authorizing it to do so.'';
       (3) striking ``hearing'' in the last sentence and inserting 
     ``oral or written presentation of views''; and
       (4) adding at the end the following: ``For purposes of this 
     subsection, the terms `electric utility company', `holding 
     company', and `holding company system' have the meaning given 
     them in section 2 of the Public Utility Holding Company Act 
     of 1998. Notwithstanding section 201(b)(1), generation 
     facilities are subject to the jurisdiction of the

[[Page S7949]]

     Commission for purposes of this section, except as the 
     Commission otherwise may provide.''.

     SEC. 403. REMEDIAL MEASURES FOR MARKET POWER.

       The FPA is amended by adding the following new section 
     after section 216 as added by section 203 of this Act:


                  ``remedial measures for market power

       ``Sec. 217. (a) Definitions.--As used in this section--
       ``(1) `market power' means the ability of an electric 
     utility profitably to maintain prices above competitive 
     levels for a significant period of time, and
       ``(2) `notice of retail competition' has the meaning 
     provided under section 3(22) of the Public Utility Regulatory 
     Policies Act of 1978.
       ``(b) Commission Jurisdictional Sales.--(1) If the 
     Commission determines that there are markets in which a 
     public utility that owns or controls generation facilities 
     has market power in sales of electric energy for resale in 
     interstate commerce, the Commission shall order that utility 
     to submit a plan for taking necessary actions to remedy its 
     market power, which may include, but is not limited to, 
     conditions respecting operation or dispatch of generation, 
     independent operation of transmission facilities, or 
     divestiture of ownership of one or more generation 
     facilities.
       ``(2) In consultation with the Attorney General and the 
     Federal Trade Commission, the Commission shall review the 
     plan to determine if its implementation would adequately 
     mitigate the adverse competitive effects of market power. The 
     Commission may approve the plan with or without modification. 
     The plan takes effect upon approval by the Commission. 
     Notwithstanding any State law, regulation, or order to the 
     contrary and notwithstanding any other provision of this Act 
     or any other law, the Commission has jurisdiction to order 
     divestiture or other transfer of control of generation assets 
     pursuant to the plan.
       ``(c) State Jurisdictional Sales.--(1) If a State 
     commission that has filed a notice of retail competition has 
     reason to believe that an electric utility doing business in 
     the State has market power, the State commission may apply 
     for an order under this section.
       ``(2) If, after receipt of such an application and after 
     notice and opportunity for a hearing, the Commission 
     determines that the electric utility has market power in the 
     sales of electric energy sold at retail in the State, this 
     market power would adversely affect competition in the State, 
     and the State commission lacks authority to effectively 
     remedy such market power, the Commission may order the 
     electric utility to submit a plan for taking necessary 
     actions to remedy the electric utility's market power. These 
     actions may include conditions respecting operation or 
     dispatch of generation, competitive procurement of all 
     generation capacity or energy, independent operation of 
     transmission facilities, or divestiture of ownership of one 
     or more generation facilities of the electric utility.
       ``(3) After consultation with the Attorney General and the 
     Federal Trade Commission, the Commission may approve the plan 
     with or without modification. The plan shall take effect upon 
     approval by the Commission.
       ``(4) Notwithstanding any State law, regulation, or order 
     to the contrary and notwithstanding any other provision of 
     this Act or any other law, the Commission has jurisdiction to 
     order divestiture or other transfer of control of generation 
     assets pursuant to the plan.''.

                     TITLE V--ELECTRIC RELIABILITY

     SEC. 501. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.

       (a) The FPA is amended by adding the following new section 
     after section 217 as added by section 403 of this Act:


           ``electric reliability organization and oversight

       ``Sec. 218. (a) Definition.--As used in this section:
       ``(1) The term `bulk-power system' means all facilities and 
     control systems necessary for operating the interconnected 
     transmission grids, including high-voltage transmission 
     lines; substations; control centers; communications, data, 
     and operations planning facilities; and generating units 
     necessary to maintain transmission system reliability.
       ``(2) The term `electric reliability organization' or 
     `organization' means the organization registered by the 
     Commission under subsection (d)(4).
       ``(3) The term `system operator' means any entity that 
     operates or is responsible for the operation of the bulk-
     power system, including control area operators, independent 
     system operators, transmission companies, transmission system 
     operators, and regional security coordinators.
       ``(4) The term `user of the bulk-power system' means any 
     entity that sells, purchases, or transmits electric power 
     over the bulk-power system; owns operates or maintains 
     facilities of the bulk-power system; or is a system operator.
       ``(b) Commission Authority.--(1) The Commission has 
     jurisdiction over the electric reliability organization, all 
     systems operators, and all users of the bulk-power system for 
     purposes of approving and enforcing compliance with standards 
     in the United States.
       ``(2) The Commission may register an electric reliability 
     organization and approve and oversee the activities in the 
     United States of that electric reliability organization.
       ``(c) Compliance With Existing Reliability Standards.--A 
     user of the bulk-power system shall comply with standards 
     established by the North American Electric Reliability 
     Council and the regional reliability councils that exist on 
     the date of enactment of the Comprehensive Electricity 
     Competition Act, consistent with any agreement entered into 
     under subsection (f). Each standard remains in effect unless 
     modified under this subsection or superseded by standards 
     approved under subsection (e). The Commission, upon its own 
     motion or upon request and consistent with any agreements 
     entered into pursuant to subsection (f), may modify or 
     suspend the application of a standard and may enforce a 
     standard exercising the same authority that the electric 
     reliability organization may exercise under subsection (k). 
     The North American Electric Reliability Council and the 
     regional reliability councils may monitor compliance with 
     these standards.
       ``(d) Organization Registration and Establishment of 
     Standards.--(1) Not later than 90 days after the date of 
     enactment of this section, the Commission shall issue 
     proposed rules specifying the procedures and requirements for 
     an organization to apply for registration and file existing 
     reliability standards. The Commission shall provide adequate 
     opportunity for comment on the proposed rules. The Commission 
     shall issue final rules under this subsection within 180 days 
     after the date of enactment of this section.
       ``(2) Following the issuance of final Commission rules 
     under paragraph (1), an electric reliability organization may 
     apply for registration with the Commission. The organization 
     shall include in its application its governance, procedures, 
     and funding mechanism, and shall file the standards in effect 
     under subsection (c).
       ``(3) The Commission shall provide public notice of the 
     application and the standards filed under this subsection and 
     afford interested parties an opportunity to comment on the 
     application and filing.
       ``(4) The Commission shall register the organization if the 
     Commission determines that the organization--
       ``(A) has the ability to provide for an adequate level of 
     reliability of the bulk-power system;
       ``(B) permits voluntary membership to any users of the 
     bulk-power system or interested customer class or public 
     interest group;
       ``(C) assures fair representation of its members in the 
     selection of its directors and fair management of its 
     affairs, taking into account the need for efficiency and 
     effectiveness in decisionmaking and operations and the 
     requirements for technical competency in the development of 
     standards and the exercise of oversight of the reliability 
     system, and assures that no single class of market 
     participants has the ability to control the organization's 
     discharge of its responsibilities;
       ``(D) assesses reasonable dues, fees, or other charges 
     necessary to support the organization and the purposes of 
     this section and has a funding mechanism that is fair and not 
     unduly discriminatory;
       ``(E) establishes procedures for standards development that 
     provide reasonable notice and opportunity for public comment, 
     taking into account the need for efficiency and effectiveness 
     in decisionmaking and operations and the requirements for 
     technical competency in the development of standards;
       ``(F) establishes fair and impartial procedures for 
     enforcement of standards, including penalties; limitation of 
     activity, function, or operations; or other appropriate 
     sanctions;
       ``(G) establishes procedures for notice and opportunity for 
     public observation of all meetings, except that the 
     procedures for public observation may include alternative 
     procedures for emergencies or for the discussion of 
     information the directors determine should take place in 
     closed session, including the discussion of information with 
     respect to proposed enforcement or disciplinary action; and
       ``(H) addresses other matters that the Commission considers 
     necessary or appropriate.
       ``(5) The Commission shall approve only one electric 
     reliability organization. If the Commission receives timely 
     applications from two or more applicants that satisfy the 
     requirements of this subsection, the Commission shall approve 
     only the application it concludes will best ensure a reliable 
     bulk-power system.
       ``(e) Review and Changes of Modifications to Standards.--
     (1) The Commission shall review the standards submitted under 
     subsection (d)(2), concurrent with its review of the 
     application under subsection (d), and each standard 
     remains effective if the Commission determines that it is 
     just, reasonable, and not unduly discriminatory or 
     preferential; is in the public interest; and provides for 
     an adequate level of reliability of the bulk-power system.
       ``(2) With respect to a standard that the Commission 
     determines should not remain effective under paragraph (1), 
     the Commission shall refer that standard to the electric 
     reliability organization for development of a new or modified 
     standard under the organization's procedures as approved by 
     the Commission.
       ``(3)(A) The electric reliability organization shall file 
     with the Commission any new

[[Page S7950]]

     standard developed under paragraph (2) or a new standard or 
     modification of a standard effective under paragraph (1) for 
     review and approval. A new standard or modification does not 
     take effect unless the Commission determines, after notice 
     and opportunity for comment, that the standard or 
     modification is just, reasonable, and not unduly 
     discriminatory or preferential; is in the public interest; 
     and provides for an adequate level of reliability of the 
     bulk-power system, taking into account the purposes of this 
     section to assure reliability of the bulk-power system and 
     giving due weight to the technical competency of the 
     registered electric reliability organization, and is 
     consistent with any agreement entered into pursuant to 
     subsection (f).
       ``(B) Any standard or modification that does not become 
     effective under this paragraph shall be referred to the 
     electric reliability organization for development of a new or 
     modified standard under the organization's procedures as 
     approved by the Commission.
       ``(C) The Commission, on its own motion, may require that 
     the electric reliability organization develop a new or 
     revised standard if the Commission considers a new or revised 
     standard necessary or appropriate to further the purposes of 
     this section. The organization shall file the new or revised 
     standard in accordance with this paragraph.
       ``(D) On its own motion or at the request of the electric 
     reliability organization, the Commission may develop and, 
     consistent with any agreement under subsection (f), require 
     immediate implementation by the organization of a new or 
     modified standard if it determines that immediate 
     implementation is required to avoid a significant disruption 
     of reliability that would affect public safety or welfare. If 
     immediate implementation is required, the Commission shall 
     not delay implementation for notice and comment but shall 
     publish the standard for notice and comment in a timely 
     manner.
       ``(4) A user of the bulk power system shall comply with any 
     new or modified standard that takes effect under paragraph 
     (1) or (3).
       ``(f) Coordination With Canada and Mexico.--The United 
     States may enter into international agreements with the 
     governments of Canada and Mexico to provide for effective 
     compliance with standards and to provide for the 
     effectiveness of the electric reliability organization in 
     carrying out its mission and responsibilities.
       ``(g) Changes in Organization Procedures, Governance, or 
     Funding.--(1) The electric reliability organization shall 
     file with the Commission any proposed change in its 
     procedures, governance, or funding and accompany the filing 
     with an explanation of the basis and purpose for the change.
       ``(2)(A) A proposed procedural change may take effect 90 
     days after filing with the Commission if the change--
       ``(i) constitutes a statement of policy, practice, or 
     interpretation with respect to the meaning, administration, 
     or enforcement of an existing procedure; or
       ``(ii) is concerned solely with administration of the 
     organization.

     A proposed procedural change that does not qualify under 
     clause (i) or (ii) takes effect only upon a finding by the 
     Commission that the change is just, reasonable, not 
     preferential, and in the public interest.
       ``(B) The Commission, by order, either upon complaint or 
     upon its own motion, may suspend an existing procedure or 
     procedural change if its determines the procedure or the 
     proposed change is unjust, unreasonable, unduly 
     discriminatory or preferential, or is otherwise not in the 
     public interest.
       ``(3) A change in the organization's governance or funding 
     does not take effect unless the Commission finds that the 
     change is consistent with any agreement under subsection (f) 
     and is just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest.
       ``(4) The Commission may require that the electric 
     reliability organization amend its procedures, governance, or 
     funding if the Commission considers the amendment necessary 
     or appropriate to ensure the fair administration of the 
     organization, conform the organization to the requirements of 
     this section, or further the purposes of this section, 
     consistent with any agreement entered into under 
     subsection (f). The organization shall file the amendment 
     in accordance with paragraph (1).
       ``(h) Organization Delegations of Authority.--(1) The 
     organization may enter into an agreement under which it may 
     delegate some or all of its authority to any person.
       ``(2) The organization shall file with the Commission any 
     agreement entered into under this subsection and any 
     information the Commission requires with respect to the 
     person to whom authority is to be delegated. The Commission 
     may approve the agreement, following public notice and an 
     opportunity for comment, if it finds that the agreement is 
     consistent with the requirements of this section. The 
     agreement shall not take effect without Commission approval.
       ``(3)(A) The Commission may direct a modification to or 
     suspend an agreement entered into under this subsection if it 
     determines that--
       ``(i) the person to whom authority is delegated no longer 
     has the capacity to carry out effectively or efficiently the 
     person's implementation responsibilities under that 
     agreement, or
       ``(ii) the rules, practices, or procedures of the person to 
     whom authority is delegated no longer provide for fair and 
     impartial discharge of the person's implementation 
     responsibilities under the agreement.
       ``(B) If the agreement is suspended, the electric 
     reliability organization shall assume the previously 
     delegated responsibilities.
       ``(i) Organization Membership.--Every system operator shall 
     be a member of the electric reliability organization. The 
     organization rules shall provide for voluntary membership to 
     other users of the bulk-power system and any interested 
     customer class or public interest group. A person required to 
     become a member of the organization who fails to do so is 
     subject to sections 314 and 316A of this Act upon 
     notification from the organization to the Commission.
       ``(j) Failure To Apply for Registration.--(1) If an 
     organization fails to apply for registration with the 
     Commission within six months after the issuance date of final 
     Commission rules for such a filing, or the Commission does 
     not register an agreement within twelve months after the 
     issuance date of final Commission rules for such a filing, 
     the Commission shall convene a process to register an 
     electric reliability organization.
       ``(2) Until an electric reliability organization is 
     registered, the Commission has the same authority to enforce 
     existing or modified standards that the electric reliability 
     organization has under subsection (k).
       ``(k) Disciplinary Action and Penalties.--(1) Consistent 
     with the range of actions approved by the Commission under 
     subsection (d)(4)(F), the electric reliability organization 
     may impose a penalty, take injunctive action, or impose other 
     disciplinary action the organization finds appropriate 
     against a user of the bulk-power system located in the United 
     States if the organization finds, after notice and 
     opportunity for a hearing, that the user has violated an 
     organization procedure or standard.
       ``(2) An action taken under subparagraph (1) takes effect 
     30 days after the finding unless the Commission, on its own 
     motion or upon application by the user of the bulk-power 
     system who was the subject of the action, suspends the 
     action. The action shall remain in effect or remain suspended 
     until the Commission, after notice and opportunity for 
     comment, sets aside, modifies, or reinstates the action.
       ``(3) The Commission, on its own motion, may impose a 
     penalty, issue an injunction, or impose other disciplinary 
     action the Commission finds appropriate against a user of the 
     bulk power system located in the United States if the 
     Commission finds, after notice and opportunity for a hearing, 
     that the user has violated a procedure or standard of the 
     electric reliability organization.
       ``(l) Adequacy, Reliability, and Reports.--The electric 
     reliability organization shall conduct periodic assessments 
     of the reliability and adequacy of the interconnected bulk-
     power system in North America and shall report annually to 
     the Commission its findings and recommendations for 
     monitoring or improving system reliability or adequacy.''.
       (b) Sections 316 and 316A of the FPA are amended by 
     striking ``or 214'' each place it appears and inserting 
     ``214, or 218''.

     SEC. 502. STATUTORY PRESUMPTION.

       (a) Federal Power Act.--Any reliability standard developed 
     by the reliability organization, and any actions taken in 
     good faith to comply with a reliability standard under 
     section 218 of the FPA, are rebuttably presumed just and 
     reasonable and not unduly discriminatory or preferential for 
     purposes of that Act.
       (b) Antitrust Laws.--Notwithstanding section 703 of this 
     Act, the following activities are rebuttably presumed to be 
     in compliance with the antitrust laws of the United States:
       (1) activities undertaken by the electric reliability 
     organization under section 218 of the FPA or delegated person 
     operating under an agreement in effect under section 
     218(h) of the FPA, and
       (2) activities of a member of the electric reliability 
     organization in pursuit of organization objectives under 
     section 218 of the FPA undertaken in good faith under the 
     rules of the organization.

                   TITLE VI--ENVIRONMENTAL PROTECTION

     SEC. 601. NITROGEN OXIDES CAP AND TRADE PROGRAM.

       (a) Purpose.--The purpose of this section is to facilitate 
     the implementation of a regional strategy for reducing 
     ambient concentrations of ozone through regional reductions 
     in emissions of NOX.
       (b) Definitions.--For purposes of this section--
       (1) the term ``Administrator'' means the Administrator of 
     the Environmental Protection Agency,
       (2) the term ``NOX'' means oxides of nitrogen,
       (3) the term ``NOX allowance'' means an 
     authorization to emit a specified amount of NOX 
     into the atmosphere, and
       (4) the term ``NOX allowance cap and trade 
     program'' means a program under which, in accordance with 
     regulations issued by the Administrator, the Administrator 
     establishes the maximum number of NOX allowances 
     that may be allocated for specified control periods, 
     allocates or authorizes a State to allocate NOX 
     allowances, allows the transfer of NOX allowances 
     for use in States subject to such a program, requires 
     monitoring and reporting of NOX emissions that 
     meet the requirements of section 412 of the Clean Air Act, 
     and prohibits, and requires penalties and offsets for, any 
     emissions of

[[Page S7951]]

     NOX in excess of the number of NOX 
     allowances held.
       (c) Program Implementation.--(1) If the Administrator 
     determines under section 110(a)(2)(D) of the Clean Air Act 
     that any source or other type of emissions activity in a 
     State emits NOX in amounts that will contribute 
     significantly to nonattainment in, or interfere with 
     maintenance by, any other State with respect to any national 
     ambient air quality standard for ozone, the Administrator 
     shall establish by regulation, within 12 months of the 
     determination for primary standards and as expeditiously as 
     practicable for secondary standards, and shall administer a 
     NOX allowance cap and trade program in all States 
     in which such a source or other type of emissions activity is 
     located.
       (2) Any NOX allowance cap and trade program 
     shall contribute to providing for emissions reductions that 
     mitigate adequately the contribution or interference and 
     shall be taken into account by the Administrator in determing 
     compliance with section 110(a)(2)(D) of the Clean Air Act.
       (3) For purposes of sections 113, 114, 304, and 307 of the 
     Clean Air Act, regulations promulgated under this section 
     shall be treated as regulations promulgated under title IV of 
     the Clean Air Act (entitled Acid Deposition Control). A 
     requirement of regulations promulgated uner this section is 
     considered an ``emission standard'' or ``emission 
     limitation'' within the meaning of section 302 of the Clean 
     Air Act and an ``emission standard or limitation under this 
     Act'' within the meaning of section 304 of the Clean Air Act.

                 TITLE VII--OTHER REGULATORY PROVISIONS

     SEC. 701. TREATMENT OF NUCLEAR DECOMMISSIONING COSTS IN 
                   BANKRUPTCY.

       Section 523 of title 11, United States Code (section 523 of 
     the Bankruptcy Code of 1978), is amended by adding the 
     following new subsection after subsection (e):
       ``(f) Obligations to comply with, and claims resulting from 
     compliance with, Nuclear Regulatory Commission regulations or 
     orders governing the decontamination and decommissioning of 
     nuclear power reactors licensed under section 103 or 104b. of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2133 and 2134(b)) 
     shall be given priority and shall not be rejected, avoided, 
     or discharged under title 11 of the United States Code or in 
     any liquidation, reorganization, receivership, or other 
     insolvency proceeding under State or Federal law.''.

     SEC. 702. STUDY OF IMPACTS OF COMPETITION IN ELECTRICITY 
                   MARKETS BY THE ENERGY INFORMATION 
                   ADMINISTRATION.

       Section 205 of the Department of Energy Organization Act 
     (42 U.S.C. 7135) is amended by adding after subsection (l) 
     the following new subsection:
       ``(m)(1) The Administrator shall collect and publish 
     information regarding the impact of wholesale and retail 
     competition on the electric power industry. The Administrator 
     shall prescribe forms for collecting this information. 
     Information to be collected may include, but is not limited 
     to--
       ``(A) the ownership and control of electric generation, 
     transmission, distribution, and related facilities;
       ``(B) electricity consumption and demand;
       ``(C) the transmission, distribution, and delivery of 
     electric services;
       ``(D) the price of competitive electric services;
       ``(E) the costs, revenues, and rates of regulated electric 
     services;
       ``(F) the reliability of the electric generation and 
     transmission system, including the availability of adequate 
     generation and transmission capacity to meet load 
     requirements, generation and transmission capacity additions 
     and retirements, and fuel suppliers and stocks for electric 
     generation;
       ``(G) electric energy efficiency programs and services and 
     their impacts on energy consumption;
       ``(H) the development and use of renewable electric energy 
     resources; and
       ``(I) research, development and demonstration activities to 
     improve the nation's electric system.
       ``(2) In carrying out the purposes of this subsection, the 
     Administrator shall take into account reporting burdens and 
     the protection of proprietary information as required by 
     law.''.

     SEC. 703. ANTITRUST SAVINGS CLAUSE.

       This Act and the amendments made by this Act shall not be 
     construed to modify, impair, or supersede the operation of 
     the antitrust laws. For purposes of this section, ``antitrust 
     laws'' has the meaning given it in subsection (a) of the 
     first section of the Clayton Act (15 U.S.C. 12(a)), except 
     that it includes section 5 of the Federal Trade Commission 
     Act (15 U.S.C. 45), to the extent that section 5 applies to 
     unfair methods of competition.

     SEC. 704. ELIMINATION OF ANTITRUST REVIEW BY THE NUCLEAR 
                   REGULATORY COMMISSION.

       Section 105 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2135) is amended by adding the following after subsection c.:
       ``d. Subsection 105 c. does not apply to an application for 
     a license to construct or operate a utilization or production 
     facility under section 103 or 104 b. following the date of 
     enactment of this subsection. This Act does not affect the 
     Commission's authority to enforce antitrust conditions 
     included in licenses issued under section 103 or 104 b. 
     before the date of enactment of this subsection.

     SEC. 705. ENVIRONMENTAL LAWS SAVINGS CLAUSE.

       Nothing in this Act alters or affects environmental 
     requirements imposed by Federal or State law, including, but 
     not limited to, the Clean Air Act (42 U.S.C. 7401 et seq.); 
     the Federal Water Pollution Control Act (33 U.S.C. 1251 et 
     seq.); the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.); the Federal Power Act (16 U.S.C. 791a et seq.); and 
     the Endangered Species Act (16 U.S.C. 1531 et seq.).
                                  ____


     Section-by-Section Analysis of the Comprehensive Electricity 
                            Competition Act


                    TITLE 1--RETAIL ELECTRIC SERVICE

     Section 101. Retail competition
       This section would amend the Public Utility Regulatory 
     Policies Act of 1978 (PURPA) to provide for customer choice 
     through a flexible mandate. This provision would require each 
     distribution utility to permit all of its retail customers to 
     purchase power from the supplier of their choice by January 
     1, 2003, but would permit a State regulatory authority (with 
     respect to a distribution utility for which it has ratemaking 
     authority) or a non-regulated utility to opt out of this 
     retail competition mandate if it finds, on the basis on a 
     public proceeding, that consumers of the utility would be 
     served better by the current monopoly system or an 
     alternative State-crafted retail competition plan. The 
     section also would establish a Federal policy that utilities 
     should be able to recover prudently incurred, legitimate, and 
     verifiable retail stranded costs that cannot be mitigated 
     reasonably, but States would continue to determine recovery 
     of retail stranded costs under State law. This section does 
     not retrocede to States authority over Federal enclaves.
     Section 102. Authority to impose reciprocity requirements
       This section would amend PURPA to permit a State that has 
     filed a notice indicating it is implementing retail 
     competition to prohibit a distribution utility that is not 
     under the ratemaking authority of the State and that has not 
     implemented retail competition from selling electricity to 
     the consumers covered by the State's notice. This section 
     also would permit a nonregulated utility that has filed a 
     notice of retail competition to prohibit any other utility 
     that has not implemented retail competition from selling 
     electricity to the consumers covered by the nonregulated 
     utility's notice.
     Section 103. Consumer information
       This section would amend PURPA to permit the Secretary of 
     Energy to required all suppliers of electricity to disclose 
     information on price, terms, and conditions of sale; the type 
     of energy resource used to generate the electric energy; and 
     the environmental attributes of the generation, including air 
     emissions characteristics. This requirement would be 
     enforceable by the Federal Trade Commission and by individual 
     States.


          TITLE II--FACILITATING STATE AND REGIONAL REGULATION

     Section 201. Clarification of State and Federal authority 
         over retail transmission services
       Subsection (a) would amend section 201(b) of the Federal 
     Power Act (FPA) to clarify that the FPA does not prevent 
     States from ordering retail competition or imposing 
     conditions, such as a fee, on the receipt of electric energy 
     by an ultimate customer within the State. This section also 
     would clarify that FERC has jurisdiction over rates, terms, 
     and conditions for unbundled retail transmission.
       Subsection (b)(1) would amend section 206 of the FPA to 
     reinforce FERC authority to require public utilities to 
     provide open access transmission services and permit recovery 
     of stranded costs. This section also would provide 
     retroactive effect to Commission Order No. 888.
       Subsection (b)(2) would amend section 212(h) of the FPA to 
     clarify FERC authority to order retail transmission service 
     to complete an authorized retail sale.
       Subsection (b)(3) would make conforming amendments to the 
     FPA.
       Subsection (c) would amend the FPA to extend FERC's 
     jurisdiction over transmision services to municipal and other 
     publicly-owned utilities, cooperatives, the Tennessee Valley 
     Authority, and the Federal Power Marketing Administrations. 
     With this amendment, FERC would assure that the transmission 
     rates, terms, and conditions of these entities are not unjust 
     or unreasonable, taking into consideration the other 
     responsibilities of these entities, but this amendment would 
     not expand FERC's authority over the power business of these 
     entities. However, FERC could suspend or modify application 
     of FERC's open access transmission rules to the Tennessee 
     Valley Authority, the Federal Power Marketing 
     Administrations, and rural electric cooperatives with 
     outstanding loans from the Rural Utilities Service, and their 
     wholesale requirements customers, if FERC finds that adequate 
     stranded cost recovery mechanisms are not yet available for 
     those entities.
       It should be noted that with regard to the Federal Power 
     Marketing Administrations and TVA, the Administration 
     considers this subsection as placeholder language pending 
     development of language that more thoroughly addresses the 
     question of the appropriate role of the Federal power 
     marketing agencies in the new competitive market.

[[Page S7952]]

     Section 202. Interstate compacts on regional transmission 
         planing
       This section would amend the FPA to permit FERC to approve 
     interstate compacts that establish regional transmission 
     planning agencies if the agencies meet certain criteria 
     relating to their governance (e.g., uniform authority from 
     each participating state and a workable governance protocol 
     to avoid regulatory stalemate). This section also would 
     permit FERC to terminate a compact if it is inconsistent with 
     the public interest or if there are other specified reasons.
     Section 203. Backup authority to impose a charge on an 
         ultimate consumer's receipt of electric energy
       This section would amend the FPA to reinforce FERC's 
     authority to provide a back-up for the recovery of retail 
     stranded costs and public benefits program if a State, or a 
     utility that has outstanding loans made or guaranteed by the 
     Rural Utilities Service, has filed a retail competition 
     notice and concludes that such charges are appropriate but 
     lacks authority to impose a charge on the consumer's 
     receipt of electric energy.
     Section 204. Authority to establish and require independent 
         system operation
       This section would amend section 202 of the FPA by 
     permitting FERC to establish an entity for independent 
     operation and control of interconnected transmission 
     facilities and to require a transmitting utility to 
     relinquish control over operation of its transmission 
     facilities to an independent system operator.


                       title iii--public benefits

     Section 301. Public benefits fund
       This section would amend PURPA by establishing a Public 
     Benefits Fund administered by a Federal-State Joint Board 
     that would disburse matching funds to participating States 
     and tribal governments to carry out programs that support 
     affordable electricity service to low-income customers; 
     implement energy conservation and energy efficiency measures 
     and energy management practices; provide consumer education; 
     and develop emerging electricity generation technologies. 
     Funds for the Federal share would be collected from 
     generators, which, as a condition of interconnection with 
     facilities of any transmitting utility, would pay to the 
     transmitting utility a charge, not to exceed one mill per 
     kilowatt-hour. The transmitting utility then would pay the 
     collected amounts to a fiscal agent for the Fund. States and 
     tribal governments would have the flexibility to decide 
     whether to seek funds and how to allocate funds among public 
     purposes. In addition, a rural safety net would be created if 
     the Secretary of Energy determines, in consultation with the 
     Secretary of Agriculture, that significant adverse economic 
     effects on rural areas have occurred or will occur as a 
     result of electric restructuring.
     Section 302. Federal renewable portfolio standard
       This section would amend PURPA to establish a Federal 
     Renewable Portfolio Standard (RPS) to guarantee that a 
     minimum level of renewable generation is developed in the 
     United States. The RPS would require electricity sellers to 
     have renewable credits based on a percentage of their 
     electricity sales. The seller would receive credits by 
     generating power from non-hydroelectric renewable 
     technologies, such as wind, solar, biomass, or geothermal 
     generation; purchasing credits from renewable generators; or 
     a combination of these. The RPS requirement for 2000-2004 
     would be set at the current ratio of RPS-eligible generation 
     to retail electricity sales. Between 2005-2009, the Secretary 
     of Energy would determine the required annual percentage, 
     which would be greater than the baseline percentage but less 
     than 5.5%. In 2010-2015, the percentage would be 5.5%. The 
     RPS credits would be subject to a cost cap of 1.5 cents per 
     kilowatt hour.
     Section 303. Net metering
       This section would amend PURPA by requiring all retail 
     electric suppliers to make available to consumers ``net 
     metering service,'' through which a consumer would offset 
     purchases of electric energy from the supplier with electric 
     energy generated by the consumer at a small, on-site 
     renewable generating facility and delivered to the 
     distribution system.
     Section 304. Reform of section 210 of PURPA
       This section would repeal prospectively the ``must buy'' 
     provision of section 210 of PURPA. Existing contracts would 
     be preserved, and the other provisions of section 210 would 
     continue to apply.


        title iv--regulation of mergers and corporate structure

     Section 401. Reform of holding company regulation under PUHCA
       This section would repeal the Public Utility Holding 
     Company Act of 1935 (PUHCA) and would enact in its place the 
     Public Utility Holding Company Act of 1998. Under this Act, 
     FERC and State commissions would be given greater access to 
     the books and records of holding companies and the affiliates 
     of public utilities within the holding companies.
     Section 402. Electric company mergers
       This section would amend section 203(a) of the FPA by 
     conferring on FERC jurisdiction over the merger or 
     consolidation of electricity utility holding companies and 
     generation-only companies. This section also would streamline 
     FERC's review of mergers.
     Section 403. Remedial measures for market power
       This section would amend the FPA to authorize FERC, on its 
     own motion or upon complaint, to remedy market power in 
     wholesale markets. This section also would authorize FERC, 
     upon petition from a State, to remedy market power in retail 
     markets if retail competition is being implemented, the State 
     finds market power, and the State has insufficient authority 
     to remedy the market power. In these circumstances, FERC 
     could require generators with market power to submit a plan 
     to mitigate market power, which FERC could approve with or 
     without modification. This section would authorize FERC to 
     order divestiture to the extent necessary to mitigate market 
     power.


                     title v--electric reliability

     Section 501. Electric reliability organization and oversight
       This section would amend the FPA to give FERC authority to 
     register and oversee an electric reliability organization to 
     prescribe and enforce mandatory reliability standards. 
     Membership in the organization would be open to all 
     entities that use the bulk-power system and would be 
     required for all entities critical to system reliability. 
     Until the reliability organization is registered, existing 
     standards established by the North American Electric 
     Reliability Council and regional reliability councils 
     would be mandatory and enforced by the Commission.
     Section 502. Statutory presumption
       This section would establish a rebuttable presumption that 
     actions taken to comply with the mandatory reliability 
     standards would be deemed just and reasonable for purposes of 
     the FPA. This section would also establish a rebuttable 
     presumption that the activities of an electric reliability 
     organization and the activities of a member of the 
     organization in pursuit of organization objectives are in 
     compliance with the antitrust laws of the United States.


                   title vi--environmental protection

     Section 601. Nitrogen oxides trading program
       This section would clarify Environmental Protection Agency 
     authority to require a cost-effective interstate trading 
     system for nitrogen oxide pollutant reductions addressing the 
     regional transport contributions needed to attain and 
     maintain the National Ambient Air Quality Standards for 
     ozone.


                 title vii--other regulatory provisions

     Section 701. Treatment of nuclear decommissioning costs in 
         bankruptcy
       This section would amend the Bankruptcy Act to provide that 
     decommissioning costs be a nondischargeable priority claim.
     Section 702. Study of impacts of competition in electricity 
         markets by the Energy Information Administration
       This section would amend the Department of Energy 
     Organization Act to direct the Energy Information 
     Administration to collect and publish information on the 
     impacts of wholesale and retail competition.
     Section 703. Antitrust savings clause
       This section would provide that nothing in this Act would 
     supersede the operation of the antitrust laws.
     Section 704. Elimination of antitrust review by the Nuclear 
         Regulatory Commission
       This section would eliminate Nuclear Regulatory Commission 
     antitrust review of an application for a license to construct 
     or operate a commercial utilization or production facility.
     Section 705. Environmental law savings clause
       This section would provide that nothing in this Act would 
     alter environmental requirements of Federal or State law.
                                  ____



                                      The Secretary of Energy,

                                    Washington, DC, June 26, 1998.
     Hon. Albert Gore,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: Enclosed is legislation to bring 
     competition and consumer choice to the electricity industry, 
     the ``Comprehensive Electricity Competition Act'' (``CECA''). 
     It is based upon the legislative specifications the 
     Administration provided Congress on March 25, 1998, when we 
     released our Comprehensive Electricity Competition Plan.
       The basic Federal regulatory framework for the electric 
     power industry was established with the enactment of the 
     Public Utility Holding Company Act of 1935 and Title II of 
     the Federal Power Act. These statutes are premised upon 
     State-regulated monopolies rather than competition. Now, 
     however, economic forces are beginning to forge a new era in 
     the electricity industry, one in which generation prices will 
     be determined primarily by the market rather than by 
     legislation and regulation. Consequently, federal electricity 
     laws need to be updated so that they stimulate, rather than 
     stifle, competition.
       In this new era of retail competition, consumers will 
     choose their electricity supplier. The Department of Energy 
     estimates that in making these choices, consumers will save 
     at least $20 billion a year on their electricity bills. This 
     translates into direct savings to the typical family of four 
     of $104 per year and additional indirect savings from lower 
     costs of other goods and services of $128 per year. 
     Competition will also spark innovation in the American 
     economy and create new industries, jobs, products, and 
     services, just as

[[Page S7953]]

     telecommunications reform spawned cellular phones and other 
     new technologies.
       Competition will also benefit the environment. Under retail 
     competition, the market rewards a generator who wrings as 
     much energy as possible from every unit of fuel. More 
     efficient fuel use means lower emissions. In addition, 
     competition provides increased opportunities to sell energy 
     efficiency services and green power. Moreover, CECA's 
     renewable portfolio standard and enhanced public benefit 
     funding will lead to substantial environmental benefits. The 
     Department estimates that CECA will reduce greenhouse gas 
     emissions by 25 to 40 million metric tons by 2010.
       The following are key provisions of CECA:
       All electric consumers would be able to choose their 
     electricity supplier by January 1, 2003, but a State may opt 
     out of retail competition if it believes its consumers would 
     be better off under the status quo or an alternative State-
     crafted retail competition plan.
       States would be encouraged to allow the recovery of 
     prudently incurred, legitimate, and verifiable retail 
     stranded costs that cannot be reasonably mitigated.
       All participants in transactions on the transmission grid 
     would comply with mandatory reliability standards. The 
     Federal Energy Regulatory Commission (FERC) would approve and 
     oversee a private, self-regulating organization that would 
     develop and enforce these standards.
       FERC would have the authority to require transmitting 
     utilities to turn over operational control of transmission 
     facilities to an independent system operator.
       The Secretary of Energy would be authorized to require all 
     retail electric suppliers to disclose, in a uniform format, 
     information on prices, terms, and conditions of service; the 
     type of energy resource used to generate the electric energy; 
     and the environmental attributes of the generation (including 
     air emissions characteristics).
       A Renewable Portfolio Standard would be established to 
     ensure that by 2010 at least 5.5 percent of all electricity 
     sales consist of generation from renewable energy sources.
       A Public Benefits Fund would be established to provide 
     matching funds of up to $3 billion to States and Indian 
     tribes for low-income assistance, energy-efficiency programs, 
     consumer information, and the development and demonstration 
     of emerging technologies, particularly renewable 
     technologies. A rural safety net would be created if the 
     Secretary of Energy determines, in consultation with the 
     Secretary of Agriculture, that significant adverse economic 
     effects on rural areas have occurred or will occur as a 
     result of electric restructuring.
       Environmental Protection Agency authority would be 
     clarified to require interstate nitrogen oxides trading to 
     facilitate attainment of the ambient standard for ozone in 
     the United States.
       Federal electricity law would be modernized to achieve the 
     right balance of competition without market abuse, including 
     repealing outdated laws like the Public Utility Holding 
     Company Act of 1935 and the ``must buy'' provision of the 
     Public Utility Regulatory Policies Act of 1978 and giving 
     FERC enhanced authority to address market power.
       CECA promotes healthy changes to the electricity industry. 
     It will result in lower prices, a cleaner environment, and 
     increased innovation.
       The Administration intends to transmit the proposed 
     legislative changes to the tax code described in the March 
     25, 1998 Comprehensive Electricity Competition Plan to the 
     Congress separately at a later date.
       The Omnibus Budget Reconciliation Act (OBRA) requires that 
     all revenue and direct spending legislation meet a pay-as-
     you-go (PAYGO) requirement. That is, no such bill should 
     result in a net budget cost; and if it does, it could 
     contribute to a sequester if it is not fully offset. The net 
     PAYGO effect of this legislative proposal is currently 
     estimated to be zero.
       The Office of Management and Budget advises that there is 
     no objection to the presentation of this legislation to the 
     Congress and that it is in accord with the program of the 
     President.
           Sincerely,
                                                    Federico Pena.
                                 ______
                                 
      By Mr. WARNER:
  S. 2288. A bill to provide for the reform and continuing legislative 
oversight of the production, procurement, dissemination, and permanent 
public access of the Government's publications, and for other purposes; 
to the Committee on Rules and Administration.


          wendell h. ford government publications act of 1998

  Mr. WARNER. Now, Mr. President, it is my distinct pleasure and honor, 
together with the distinguished ranking member of the Rules Committee, 
which I am privileged to chair, to submit legislation to the Senate. In 
my capacity as chairman of the committee, I have taken it upon myself, 
after consultation with colleagues on the committee, to name this bill 
in honor of our distinguished ranking member, Senator Wendell Ford of 
Kentucky, who will be retiring from a very distinguished Senate career 
at the conclusion of this Congress.
  The bill is entitled the ``Wendell H. Ford Government Publications 
Reform Act of 1998.'' If I just might hold this bill up, it is quite 
voluminous. That size reflects the tireless effort of my distinguished 
colleague from Kentucky and many others--over a period in excess of a 
decade--including Senator Stevens, the distinguished chairman of the 
Appropriations Committee, who have worked on this concept. I sort of 
picked it up and continued to work with Senator Ford in the course of 
my privileged service as chairman.

  Senator Ford has served four terms in the U.S. Senate. During that 
time he has dedicated himself to many causes, but this has been one 
very dear to his heart. I think it is a magnificent way of paying a 
respectful tribute to this Senator.
  We want to ensure that our Government produces its publications in 
the most cost-effective manner possible and that to the best of its 
ability the Government makes these publications accessible to the 
American public. They pay for them. But over the course of a number of 
years, like so many institutions' procedures and practices, it has 
gotten sort of tangled up. This prodigious document, hopefully, will be 
accepted by the Senate and accepted by the House and will go a long way 
to put this system back on track.
  Over the past decade there has been a steady and precipitous 
migration of printing, publication service procurement, and publication 
dissemination away from the Government Printing Office, which was 
established for the very purpose of making these documents available.
  In part, this migration occurred because of evolutions in technology. 
In part, this migration occurred because of the identified weakness and 
constant inability of the Joint Committee on Printing to enforce the 
work of the agencies and the departments of the executive branch in 
telling them to procure and disseminate their publications through the 
GPO. In part, this migration occurred because of the open encouragement 
by the current administration--through decisions and through the 
National Performance Review known as the NPR--for agencies to use 
printing and dissemination facilities other than the Government 
Printing Office. And in part, this migration occurred because the GPO 
has been slow to change and be more responsive to the ever-changing 
agency and Congressional needs, demands, and expectations.
  When I make reference to agencies and departments of the Government, 
I am talking about all three branches of the Government. We are not 
singling out any one as being less participatory of the desired result 
in publication and cost effectiveness. We are all in it together. This 
straightens it out.
  Despite the best efforts of Senator Ford and a long line of other 
Senators, successive administrations just have not been able to grapple 
and change the process and these problems are with us today.
  When I became chairman of the Senate Committee on Rules and 
Administration, Senator Ford urged that together we continue the work 
that he and others had started. Indeed, Senator Ford and I became 
partners in resolving these issues. We directed our staffs to work 
together, to analyze the problems and identify the key solutions to 
bringing successful reform to the Government's printing, publishing, 
and dissemination services.
  Senator Ford and I held a series of hearings during which we built a 
record to support the very bill that we introduce today. This bill 
primarily has four goals.
  First, it resolves the conflicts between the branches of Federal 
Government--executive, legislative, and judicial--and brings about cost 
savings in printing and production. It seems to me it eliminates the 
problems with public access. It is in here in great detail.
  Secondly, it guarantees the right of the public to access 
publications paid for by the taxpayers. We have to stress, they paid 
for this, so why shouldn't they have it? It requires that the 
Superintendent of Government Publications Access Programs--what a 
title; I will repeat that--the Superintendent of Government 
Publications Access Programs be notified when an agency creates a new 
publication whether on

[[Page S7954]]

paper or electronically. That major advancement of dissemination in 
electronics has not been an easy one to deal with in this bill.
  Third, it promotes public availability of Government information in 
the electronic age through a Federal publications access program 
requiring no-fee availability, regardless of format, by requiring 
agencies to provide the same notification to the Superintendent for 
electronic publications that they are required to provide for printed 
publications, and by requiring the Superintendent to head a study which 
will recommend to Congress additional legislation which may be needed 
to further safeguard the public's access rights.
  Finally, the fourth goal is to facilitate the production and public 
access to Government publications by promoting the efficient and 
economic production of publications in an effective and equitable 
system of dissemination.
  It was James Madison who established as an essential element of 
America's democracy the principle of an informed citizenry. According 
to scholars, Madison's vision for the success of this Nation rested on 
the ability of an informed citizenry to participate in the democratic 
process and to hold Government accountable for its actions. Democracy 
requires the free flow of information. Access to the Government's 
publications is fundamental to our free society.
  Senator Ford and I and other members of the Committee on Rules and 
Administration, together with our staff, worked diligently and in a 
most nonpartisan manner to craft this legislation. The legislation is a 
culmination of nearly 18 months of discussion and negotiation. We 
consulted with the private sector, the printing industry, the 
information industry, representatives of the administration, the 
judicial branch, various legislative branch organizations, GPO, and, 
most importantly, the unions who really safeguard the future of 
employees throughout the printing system and other systems involved in 
this. My understanding is, and I think Senator Ford will have similar 
comments, that they recognize the need for change and have been a very 
constructive and helpful working partner in achieving this result. This 
bill, we feel, reflects a consensus among these interests and is to my 
mind one of the best examples of bipartisan cooperation in good public 
policy.
  At this time, of course, both Senator Ford and I want to recognize 
the invaluable services of Eric Peterson, staff director of the Joint 
Committee on Printing, Kennie Gill of Senator Ford's staff, Grayson 
Winterling and Ed Edens of my staff, and the many others who have 
worked on this during the past 18 months. We look forward to receiving 
the support of our colleagues in passing and enacting this important 
reform legislation in the concluding days of this Congress.
  I yield the floor.
  The PRESIDING OFFICER. The very distinguished Senator from Kentucky.
  Mr. FORD. I thank the Chair for the description.
  Mr. President, it is a great pleasure for me to join with my 
colleague, the distinguished chairman of the Rules Committee. He is my 
friend. He is a gentleman in the best tradition of Virginia. I 
appreciate the honor that he has proposed for me this morning. It will 
be the first piece of legislation in 24 years that carries my name. I 
hope it doesn't impede the progress, however. I am grateful to the 
Senator from Virginia, Mr. Warner, for his gracious remarks this 
morning. Hopefully, that tenor will continue through the consideration 
of this legislation by all of our colleagues, because our heart is 
right as it relates to the introduction of this legislation.
  I hope our minds have put together a piece of legislation that will 
be lasting. But there is one thing about this institution; once it 
settles in and you find some problems with it, you always have the 
opportunity to correct those problems. Most of the time, we do not 
``throw the baby out with the bath water''; we take the changes and do 
them in an appropriate way.
  So I join my colleague in introducing this legislation today to 
ensure one thing, Mr. President--that the American public continues to 
have access to the Government information. As my friend has said, it 
pays to produce. It is the people's access to Government, Government 
information, that forms the basis of our system of Government and 
ensures that democracy survives.
  A Kentuckian that was born in Virginia--we claim him in Kentucky, 
however--and a statesman, Henry Clay, said:

       Government is a trust, and the officers of the Government 
     are trustees; and both the trust and the trustees are created 
     for the benefit of the people.

  This legislation ensures that the decisions of the trustees of 
Government in all 3 branches will continue to be available for the 
benefit of the people who placed them there.
  Since 1813, Congress has assured that our decisions have been 
available to the public through the depository libraries. In 1857, 
depository libraries began disseminating other Federal information and, 
in 1895, the Superintendent of Public Documents was moved from the 
Department of the Interior to the Government Printing Office.
  Throughout our history, Mr. President, libraries have been the 
permanent repositories of the written history of our development as a 
Nation and the gateways to accessing the decision of its leaders. How 
important libraries are. You can be self-educated if you could read and 
go to the libraries and be able to secure information. Books that will 
do that. For almost 200 years, libraries have been the principal means 
by which citizens have come to learn of the decisions of their 
Government. Armed with that knowledge, the American public expresses 
its will through the democratic election process, which is the bedrock 
of our society.
  For over 100 years, GPO has printed or procured the printing of 
Government information and then automatically--and I underscore 
``automatically''--made that information available, at no charge to the 
American people, through the 1,400 depository libraries located across 
this great land. And that information is maintained permanently by the 
regional depository libraries in order to ensure that future 
generations have access to it.
  What I am trying to do here this afternoon is to say why this bill is 
so important. It has been so important to our past and it will be so 
important to our future. In turn, the depository libraries provide 
numerous access services, at no cost to the Federal Government, to the 
public who uses them to keep informed of their Government's decisions. 
In fact, the depository libraries, and numerous other public and 
private libraries that work in cooperation with the depositories, are 
the trustees of Government information for the people. For all of the 
criticisms of GPO, no one can dispute that a centralized printing and 
dissemination system for Government information has worked to keep the 
American people informed about their Government.
  Mr. President, it was Thomas Jefferson who said, ``To inform the 
minds of people, and to follow their will, is the chief duty of those 
placed at their head.'' That is the purpose of this legislation, the 
very root of the growth of this legislation. We, in a bipartisan 
manner, a friendly manner, desire to be sure that our citizens are 
informed, and that is the reason we are introducing this legislation 
today--to ensure that the American people are informed of the actions 
of their trustees so they can, in turn, inform us of their will.
  This constant exchange of Government information and the people's 
informed will is the cornerstone of our representative democracy, and 
without the free flow of information about the actions of their 
Government, the people's will cannot be ascertained, and democracy is 
jeopardized.
  While the centralized printing and dissemination system provided 
through GPO has served us well over the years, advances in technology, 
and recent Supreme Court rulings regarding separation of powers, have 
taxed the ability of a central agency to ensure that all Government 
information gets into the hands of the American public. So what did we 
do? We sat down, as we are supposed to do, to work out a way to 
continue to strengthen democracy and work the will of the American 
people's representatives. Some have responded that it is time to 
decentralize the dissemination of Government information and disjoin 
the procurement and dissemination functions. I could not disagree more 
strongly.
  Instead, it is time to reform the system and bring it into the 21st 
century

[[Page S7955]]

so that both Government and the American people, through the depository 
library system, can be served for another 100 years through enhanced 
information dissemination and access.
  Title 44 and the Government Printing Office have not undergone a 
major revision in over 30 years. During this time, the Rules Committee 
has held numerous hearings, as my distinguished friend has said, on 
Government printing policies and public access to Government 
information. In the past 2 years, the committee has heard from the 
general public, those in the library community, and at GPO, and from 
officials in the executive and judicial branches, about the challenges 
and also the opportunities facing agencies who must comply with title 
44.
  Mr. President, at the beginning of the 105th Congress--this 
Congress--I outlined what I believed were the 3 principal issues that 
had to be addressed by any reform legislation.
  First, elimination of the constitutional barriers to compliance with 
title 44 created by the administrative oversight functions of the Joint 
Committee on Printing; secondly, the expansion of title 44 to recognize 
the changes in technology, particularly the explosion of electronic 
publishing and the Internet as a means of disseminating Government 
information to the people; third, the need for enforcement--I 
underscore enforcement--of title 44 to ensure that executive agencies 
comply with the centralized printing and dissemination requirements 
that otherwise lead to the creation of fugitive documents. I use that 
word lovingly.
  The legislation Senator Warner and I are introducing today is 
designed to address these 3 issues in a manner that will ensure, in my 
opinion, the continued free flow of information to the public while at 
the same time recognizing the efficiencies and enhanced opportunity for 
dissemination that technology creates. The legislation reaffirms 
congressional intent, and 100 years of experience, that a centralized 
publishing production and procurement agency best ensures that the 
American public gets the greatest efficiencies for its tax dollar and 
the broadest access to Government information. The proposed legislation 
restructures the Government Printing Office to provide increased 
accountability and efficiencies, while affording the Congress the 
maximum oversight of the agency's policies and regulations.
  This legislation removes the disincentives to compliance with title 
44 by eliminating the constitutional problems created by the Joint 
Committee on Printing. The bill would eliminate the Joint Committee on 
Printing and download those authorities to the agency, with enhanced 
legislative oversight--let me underscore that--enhanced legislative 
oversight and authority over congressional printing by the Senate 
Committee on Rules and Administration and the Committee on House 
Oversight.
  Most importantly, the proposed legislation recognizes the changes in 
technology and updates title 44 to ensure that as government 
information moves from printed material to electronically disseminated 
publications, the American public will continue to be able to access 
that information, at no charge, through the depository libraries. The 
role of the depository libraries is ``key'' to the success of 
government's transition from printed material to new technologies. 
America's libraries provide the safety net that guarantees that this 
Nation does not become a country of information ``haves'' and ``have 
nots.''
  Finally, the bill creates enforcement mechanisms that will ensure 
that agencies comply with title 44 so that the American people continue 
to have access to the decisions of their government, regardless of 
whether those decisions are printed, posted on the Internet, or 
transmitted through some yet undiscovered technology.
  I congratulate my colleague, the distinguished Chairman, and his 
capable staff for their dedication and diligence in crafting this 
legislation. No committee is blessed with better staff. We do fuss and 
fume every once in a while, but we always come out at the right place.

  I want to publicly acknowledge the substantial contribution that the 
library community has made to this effort, particularly the American 
Library Association and the Inter-Association Working Group on 
Government Information Policy, chaired by Mr. Dan P. O'Mahony of Brown 
University.
  I look forward to hearings on this measure in the Rules Committee and 
encourage my colleagues to cosponsor this measure and pass it into law. 
We cannot afford to delay; the very survival of democracy rests on our 
actions.
  I want to also say that those who represent the employees, the 
unions, at the Government Printing Office have been thoroughly involved 
in this decision and just this morning assured me of their enthusiastic 
support of this legislation, because they understand that if they don't 
comply with the needs of the advancement of technology and the desires 
and hopes of the 21st century, they will not last.
  Mr. President, I look forward to hearings on this measure in the 
Rules Committee. I encourage my colleagues to cosponsor this measure 
and to very quickly pass it into law, because I feel we cannot delay. 
We cannot afford to delay. The very survival of democracy rests on our 
actions here today.
  I yield the floor.
  Mr. WARNER addressed the Chair.
  The PRESIDING OFFICER. The Senator from Virginia.
  Mr. WARNER. Mr. President, those of us who are privileged to hear the 
remarks of our distinguished colleague from Kentucky might well clearly 
tell in the tenor of his voice and the forcefulness of his remarks the 
sincerity with which he believes in this very important goal.
  It is my fervent hope that the Senate will act quickly on this 
measure.
  He closed with the comment with regard to unions, which have a very 
important role in the past, today, and, indeed, in the future in the 
publication of our documents. It is the credibility which Mr. Ford 
brings to this institution that enables us to cross that last bridge 
and gain their support.
  The bottom line is that the men and women who work in this system, 
union members and all, want to have a more cost-effective, a more 
productive system, one that is compatible with the rapid movement of 
technology all across our land.
  Mr. President, I thank my colleague. I hope that the Senate will turn 
to this legislation at the earliest possible opportunity. The Committee 
on Rules and Administration will have a hearing and will promptly issue 
a report. At that point, it is my expectation that the distinguished 
majority leader, in consultation with the Democratic leader, will make 
the appropriate decisions at the time.
  I yield the floor.
                                 ______
                                 
      By Mr. BUMPERS:
  S. 2289. A bill to amend the Federal Rules of Criminal Procedure, 
relating to grand jury proceedings, and for other purposes; to the 
Committee on the Judiciary.


                     grand jury reform act of 1998

  Mr. BUMPERS. Mr. President, recently I introduced S. 2030, the Grand 
Jury Due Process Act, to provide witnesses who are subpoenaed by 
federal grand juries with a right to the presence of counsel in the 
grand jury room. I am today introducing more comprehensive grand jury 
reform legislation which will remedy several major flaws in the grand 
jury system which today undermine the fairness of America's judicial 
system.
  Criminal justice must provide for more than swift and sure 
punishment. It must ensure fairness and due process to the accused as 
well as to witnesses and victims of crime. In the majority of cases, 
our courts provide a greater measure of justice than any other system 
known to man. Yet our system remains far from perfect.
  Of all aspects of America's criminal justice system, the grand jury 
has become the weakest link in ensuring due process of law. It is 
telling that most States have discarded grand juries entirely. Yet, the 
Federal Government is constrained by the fifth amendment constitutional 
requirement for grand juries, so we have to find ways to make the grand 
jury system work better.
  The legislation I am introducing makes five critical grand jury 
reforms:
  First, it directs the district courts to give basic legal 
instructions to the grand jurors at the time they begin their work. 
These instructions will include basic legal principles--the power to 
call witnesses, the power to investigate, and the power to indict on

[[Page S7956]]

whatever charges the grand jury deems appropriate. No one would 
disagree with these basic instructions, but they are not required in 
the present grand jury system. Instead, grand jurors are told only as 
much about the law as the prosecutor chooses to tell them. My bill will 
change that.
  Second, this bill gives grand jury witnesses the right to be 
accompanied by counsel in the grand jury room. This section is 
virtually identical to S. 2030 which I have already introduced. It also 
requires that a witness subpoenaed to testify before a grand jury be 
advised of his right to be accompanied by counsel, of the privilege 
against self-incrimination and other basic rights when the subpoena is 
issued.
  Third, this bill strengthens enforcement of the existing rule on 
grand jury secrecy, which is a matter of first importance to the 
integrity of the justice system. News reports indicate that grand jury 
secrecy is now being violated on a regular basis.
  Fourth, this bill mandates that prosecutors disclose to the grand 
jury any substantial evidence they possess which indicates that the 
accused is not, or may not be, guilty. While this may seem elementary 
to most Americans, it is contrary to a Supreme Court decision, United 
States v. Williams--a very recent decision--which held that the 
prosecutor has no such constitutional obligation.
  Fifth and finally, this bill entitles a defendant to a transcript of 
the grand jury testimony of all witnesses who are called against him at 
trial. This is a matter of basic fairness. Anyone charged with a crime 
should have a right to know what a witness against him has told the 
grand jury. Knowing the witness's prior testimony is the essence of the 
right of cross-examination enshrined in the confrontation clause of the 
sixth amendment.


                               background

  Grand juries have enormous power and they offer few protections to 
those who are called as witnesses or who are subject to investigation. 
Under the fifth amendment to the Constitution, Federal felony 
prosecutions must include indictment by a grand jury. This provision 
was intended to protect citizens against prosecutions which are without 
merit or which are politically motivated. The Founding Fathers had 
plenty of experience with prosecutorial misconduct by the English 
crown. That is the reason they inserted the grand jury into the 
Constitution. The Grand Jury was to be a bulwark against a tyrannical 
government.
  My own observations of grand juries go back to my years as a small 
town defense lawyer, but they are reinforced by present day cases and 
news reports. Too often, I have seen criminal prosecutions which should 
never have been brought, or witnesses who have been abused by 
prosecutors. Recently, newspapers are filled with stories of secret 
grand jury testimony--often attributed to prosecution sources--and of 
witnesses who have been called back to testify a fourth or fifth or 
sixth time before the same grand jury. Many of these witnesses are 
obviously not criminals, at least in a reasonable person's 
understanding of the word.
  To understand today's grand jury system, you must understand history. 
The grand jury, Mr. President, is one of the common law's most ancient 
institutions. Its roots go back even further than Magna Carta. In 1166, 
King Henry II proclaimed the Assize of Clarendon which required that 12 
``lawful men'' out of every hundred be sworn to tell whether they knew 
of any crimes committed in their towns. In these early days, grand 
juries operated mostly on the personal knowledge of the grand jurors.

  The grand jury then, like today, only had power to accuse. In those 
days, trial was by ordeal. The accused either had his hand placed in 
boiling water or was bound and thrown into a lake. If he survived 
without injury, this was an acquittal. It was not until the 13th 
Century that our English forbearers secured the right to a trial by 
jury.
  Trial by ordeal was supposedly abolished long ago, but I wonder 
whether many of today's grand jury witnesses might dispute this.
  In English and American history up until the time of the 
Constitution, grand juries were a bulwark of freedom which stood 
between oppressive government and the individual. Grand juries often 
disagreed with English and colonial judges who were in service to the 
Crown. These feuds helped define both the power of the grand jury and 
the liberties of free people. For example, grand jurors in colonial 
Massachusetts adamantly refused demands by the Crown to indict the 
colonists who had participated in the Stamp Act riots.
  Unhappily, the grand jury's role as defender of liberty, has changed 
dramatically for the worse over the years. Too often, the grand jury 
has become an arm of the executive branch and a rubber stamp for the 
prosecutor. In modern times, the Supreme Court has held that a grand 
jury may call witnesses to satisfy the mere suspicion that a crime may 
have been committed.
  Grand juries have been judged so superfluous by the states that about 
half of them decided long ago to eliminate grand juries and allow 
criminal charges to be brought directly by prosecutors.
  The chief judge of the State of New York remarked several years ago 
that most grand juries would indict ``a ham sandwich'' if the 
prosecutor so requested. A recent Supreme Court decision, United States 
v. Williams, the Court has held that the District Courts have no 
supervisory power over grand juries, and that grand juries are not even 
part of the judiciary. I disagree strenuously with Justice Scalia's 
conclusions in the Williams case. If grand juries are not accountable 
to the courts, then who are they accountable to?


                          Instructions of Law

  Under present Federal law, grand jurors receive no instructions on 
the law except for whatever the prosecutor may choose to tell them. 
This bill will provide for the District Court which empanels the grand 
jury to give some very basic legal instructions to the jurors before 
they begin their work. Included among these are the grand jury's duty 
to inquire into criminal offenses that have been committed in the 
jurisdiction; the right to call and interrogate witnesses; the right to 
request production of documents, including exculpatory evidence; the 
necessity of finding credible evidence of each element of the crime 
before returning an indictment; the right to ask the prosecutor to 
draft indictments for charges other than those originally presented; 
the obligations of grand jury secrecy; and such other rights and duties 
as the court deems appropriate.
  Mr. President, there is no good reason why these instructions should 
not be given. These rules of law are universally accepted. It makes no 
sense for the grand jury not to be told what its legal powers and 
duties are, and I cannot imagine that this provision would be disputed.


                            Right to Counsel

  Mr. President, as I indicated before, the institution of the grand 
jury goes back more than 800 years in Anglo-American legal history. but 
it was not until 1963 that the Supreme Court held in Gideon v. 
Wainwright that a man may not be sent to prison without having had a 
lawyer at trial. Under Gideon, a person unable to pay for a lawyer must 
have counsel appointed to represent him, or else the requirement of due 
process of law has not been met.
  In 1964, the Court held in Miranda v. Arizona that criminal 
defendants must be advised by the police of their right to counsel and 
of the Fifth Amendment privilege against self-incrimination. These 
rights are basic American freedoms which are the hallmarks of due 
process of law. And nobody today would take us back to the old days 
when those rules were not in effect.
  Our ideas of due process have changed for the better over the 
centuries. One legal tradition which has not changed, however, is the 
lack of counsel before the grand jury. A witness who is not a criminal 
defendant but who is legally summoned to testify by the grand jury may 
not have his lawyer in the room. This rule of law is perverse to say 
the least in that it gives criminals, or accused criminals, more rights 
than innocent people.
  A criminal defendant today has greater rights than an ordinary, 
unaccused witness testifying before a grand jury. The Federal Rule of 
Criminal Procedure which prohibits the presence of counsel for a 
witness is an anachronism, and it will be changed by this bill, as well 
as by S. 2030 which I previously introduced.


                          Exculpatory Evidence

  Even with a lawyer for the witness present, the grand jury will 
always be

[[Page S7957]]

a one-sided affair in which only the prosecutor presents evidence. My 
bill will not change that. The prosecutor will naturally present only 
the evidence most favorable to the government. The Supreme Court has 
held that a prosecutor has no constitutional obligation to present the 
grand jury with any exculpatory evidence. This case, United States v. 
Williams, was a 5-4 decision written by Justice Scalia and as I said, 
in my opinion, it could not be more wrong.
  If due process of law means anything at all, it means that both sides 
of a case must be heard. How can due process permit the government to 
withhold evidence which might prevent the indictment from even being 
issued?
  My bill today reverses United States v. Williams by amending the 
Rules of Criminal Procedure to require that prosecutors present the 
grand jury any substantial evidence which directly negates the guilt of 
the accused.
  This bill will not make the grand jury a ``mini-trial'' since the 
accused will not be able to present evidence or to cross-examine. But 
the Government will be required to tell the grand jury, before it 
decides to indict, of substantial evidence against guilt. Due process 
of law requires no less. those who are not guilty. It is no answer to 
say that evidence of innocence can be considered at trial, and the jury 
will correct mistakes of the grand jury. If the Government has evidence 
which--if it were shown to be the grand jury--would lead the grand jury 
not to indict, the government must share that evidence with those who 
have power to indict. U.S. v. Williams is a gross misreading of due 
process which cries out for correction.


                           grand jury secrecy

  Mr. President, the secrecy of grand jury proceedings is a matter of 
fundamental importance which is already clearly required by Rule 6(e) 
of the Federal Rules. Yet the rule is flouted on almost a regular 
basis. Weekly, if not daily, the newspapers have carried stories about 
the several Independent Counsels' investigations which begin, ``Sources 
close to the investigation report  * * *'' Every time the law regarding 
grand jury secrecy is violated, a fair and impartial trial is 
impossible.
  Grand jury secrecy is as ancient as the institution itself. Without 
it, our judicial system would degenerate into a horrific state. An 
indictment is already tantamount to guilt in the opinion of most 
people. At the same time, the grand jurors must be insulated from 
outside pressure which might influence their decisions to indict or 
not. Grand jury secrecy is necessary for the protection of both 
witnesses and grand jurors.
  The grand jury hears all kinds of testimony--some true, some 
scurrilous. Many things said to the grand jury may be incredibly 
damaging to people if they are revealed. Since the accused and his 
lawyer are not in the room, there is no safeguard of cross-examination. 
False testimony can easily go undiscovered until trial, which is one 
reason grand jury secrecy is so important.
  If the public learns that a witness has made some horrendous 
accusation, it will be cold comfort that the grand jury later decides 
not to believe the testimony and not to indict.
  More than one witness has lost his life when it was learned that he 
had testified against a leader of organized crime or a murderer. Grand 
jury secrecy can literally be a matter of life and death. Its 
importance to law enforcement and the cause of justice cannot be 
overstated.
  At the same time, a witness who has testified before a grand jury is 
perfectly free, if he so chooses, to go on television and tell the 
world what he or she has testified to.
  Present law places responsibility for enforcing grand jury secrecy on 
the prosecutor. If a member of the prosecution staff is leaking to the 
press, this is the clearest conflict of interest. Asking any prosecutor 
to investigate his own conduct is an obvious conflict of interest. Yet 
that is what present law provides.
  Mr. President, the way to resolve this problem is to place authority 
for investigating violations of grand jury secrecy on the District 
Court which empaneled the grand jury in the first place. My bill does 
exactly that by giving the Court power to appoint an investigator or 
counsel if necessary to determine the source of leaks. It should be the 
exceptional case where such action will be necessary.
  The existence of the possibility of an independent investigation 
should be enough to deter any prosecutor from breaching grand jury 
secrecy.
  Mr. President, the public's confidence in law enforcement, in the 
courts, and in the administration of justice for all Americans has 
taken a beating in recent years. Time and again, we have seen 
misconduct by police and prosecutors, as well as jury verdicts and 
court judgments that seem to defy reason and common sense. This 
Congress has an extraordinary opportunity to restore public confidence 
in the judicial system. Almost every point in this bill is long-
standing policy supported by the American Bar Association. I believe 
the public and the bar will widely support these changes, and I hope my 
colleagues will move swiftly to enact this bill into law.
  Mr. President, I yield the floor.
  Mr. WARNER addressed the Chair.
  The PRESIDING OFFICER. The distinguished Senator from Virginia.
  Mr. WARNER. Thank you.
  I listened with great interest to my colleague's presentation of his 
bill, and it is quite interesting. You have never ceased in this 
institution to take on some of the toughest challenges.
  Mr. BUMPERS. Thank you.
  Mr. WARNER. I foresee some tough hills to climb within this 
legislation before it is through. But anyway, you are the man to do it 
if it is to be done. I cannot pass judgment at this time, but having 
been a prosecutor and having spent some time myself in this area, it is 
quite interesting.
  Mr. BUMPERS. Mr. President, I ask unanimous consent that the text of 
the Grand Jury Reform Act, which I am introducing today, be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2289

       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 ``Grand Jury Reform Act of 
     1998''.

     SEC. 2. GRAND JURIES.

       (a) In General.--Rule 6 of the Federal Rules of Criminal 
     Procedure is amended--
       (1) in subdivision (a), by adding at the end the following:
       ``(3) Instruction on rights, responsibilities, and 
     duties.--Upon impaneling a grand jury, the court shall 
     instruct and charge the grand jury on the rights, 
     responsibilities, and duties of the grand jury under this 
     rule, including--
       ``(A) the duty to inquire into criminal offenses that are 
     alleged to have been committed within the jurisdiction;
       ``(B) the right to call and interrogate witnesses;
       ``(C) the right to request production of a book, paper, 
     document, or other object, including exculpatory evidence;
       ``(D) the necessity of finding credible evidence of each 
     material element of the crime charged before returning a true 
     bill;
       ``(E) the right to request that the attorney for the 
     government draft indictments for charges other than those 
     originally requested by that attorney;
       ``(F) the obligation of secrecy under subdivision (e)(2); 
     and
       ``(G) such other rights, responsibilities, and duties as 
     the court determines to be appropriate.'';
       (2) in subdivision (d), by inserting ``and counsel for that 
     witness (as provided in subdivision (i))'' after ``under 
     examination'';
       (3) in subdivision (e)(2), by adding at the end the 
     following: ``The court shall have the authority to 
     investigate any violation of this paragraph, including the 
     authority to appoint counsel to investigate and report to the 
     court regarding any such violation.''; and
       (4) by adding at the end the following:
       ``(h) Notice to Witnesses.--Upon service of any subpoena 
     requiring any witness to testify or produce information at 
     any proceeding before a grand jury impaneled before a 
     district court, the witness shall be given adequate and 
     reasonable notice of--
       ``(1) his or her right to counsel, as provided in 
     subdivision (i);
       ``(2) his or her privilege against self-incrimination;
       ``(3) the subject matter of the grand jury investigation;
       ``(4) whether his or her own conduct is under investigation 
     by the grand jury;
       ``(5) the criminal statute, the violation of which is under 
     consideration by the grand jury, if such statute is known at 
     the time of issuance of the subpoena;
       ``(6) his or her rights regarding immunity; and
       ``(7) any other rights and privileges which the court deems 
     necessary or appropriate.
       ``(i) Counsel for Grand Jury Witnesses.--
       ``(1) In general.--

[[Page S7958]]

       ``(A) Right of assistance.--Each witness subpoenaed to 
     appear and testify before a grand jury in a district court, 
     or to produce books, papers, documents, or other objects 
     before that grand jury, shall be allowed the assistance of 
     counsel during such time as the witness is questioned in the 
     grand jury room.
       ``(B) Retention or appointment.--Counsel for a witness 
     described in subparagraph (A)--
       ``(i) may be retained by the witness; or
       ``(ii) in the case of a witness who is determined by the 
     court to be financially unable to obtain counsel, shall be 
     appointed as provided in section 3006A of title 18, United 
     States Code.
       ``(2) Powers and duties of counsel.--A counsel retained by 
     or appointed for a witness under paragraph (1)--
       ``(A) shall be allowed to be present in the grand jury room 
     only during the questioning of the witness and only to advise 
     the witness; and
       ``(B) shall not be permitted to address any grand juror, or 
     otherwise participate in the proceedings before the grand 
     jury.
       ``(3) Powers of the court.--
       ``(A) In general.--If the court determines that counsel 
     retained by or appointed for a witness under this subdivision 
     has violated paragraph (2), or that such action is necessary 
     to ensure that the activities of the grand jury are not 
     unduly delayed or impeded, the court may remove the counsel 
     and either appoint new counsel or order the witness to obtain 
     new counsel.
       ``(B) No effect on other sanctions.--Nothing in this 
     paragraph shall be construed to affect the contempt powers of 
     the court or the power of the court to impose other 
     appropriate sanctions.
       ``(j) Exculpatory Evidence.--An attorney for the government 
     shall disclose to the grand jury any substantial evidence of 
     which that attorney has knowledge that directly negates the 
     guilt of the accused. Failure to disclose such evidence may 
     be the basis for a motion to dismiss the indictment, if the 
     court determines that the evidence might reasonably be 
     expected to lead the grand jury not to indict.
       ``(k) Availability of Grand Jury Transcripts and Other 
     Statements.--
       ``(1) In general.--Subject to paragraph (2), not later than 
     10 days before trial (unless the court shall for good cause 
     determine otherwise), and after the return of an indictment 
     or the filing of any information, a defendant shall, upon 
     request, and as the court determines to be reasonable, be 
     entitled to examine and duplicate a transcript or electronic 
     recording of--
       ``(A) the grand jury testimony of all witnesses to be 
     called at trial;
       ``(B) all statements relating to the defendant's case made 
     to the grand jury by the court, the attorney for the 
     government, or a special attorney;
       ``(C) all grand jury testimony or evidence which in any 
     manner could be considered exculpatory; and
       ``(D) all other grand jury testimony or evidence that is 
     determined by the court to be material to the defense.
       ``(2) Exception.--The court may refuse to allow a defendant 
     to examine and duplicate a transcript or electronic recording 
     of any testimony, statement, or evidence described in 
     paragraph (1), if the court determines that such examination 
     or duplication would endanger any witness.''.
       (b) Conforming Amendments.--Section 3500(e) of title 18, 
     United States Code, is amended--
       (1) in paragraph (1), by adding ``or'' at the end;
       (2) in paragraph (2), by striking ``, or'' and inserting a 
     period; and
       (3) by striking paragraph (3).
                                 ______
                                 
      By Mr. BREAUX:
  S. 2290. A bill to promote the construction and operation of cruise 
ships in the United States; to the Committee on Commerce, Science, and 
Transportation.


                  u.s. flag cruise vessels legislation

 Mr. BREAUX. Mr. President, today I introduce legislation which 
I believe will help achieve the development of a United States cruise 
vessel industry and generate numerous economic benefits for our country 
through the operation of United States-flag cruise vessels between 
American ports.
  There is little doubt that we should take significant and innovative 
action so that American ports, businesses and workers can share in the 
economic benefits that can be realized through the operation of cruise 
vessels in the United States domestic trade.
  Recently, the Subcommittee on Surface Transportation and Merchant 
Marine held an oversight hearing on the need to generate cruise vessel 
operations between American ports. In fact, as a result of the hearing, 
many of our colleagues, including the Chairman of our Commerce 
Committee Senator McCain, are committed to moving forward on cruise 
vessel legislation this year so our port economies throughout the 
country can begin to benefit through cruise vessel operations.
  As strongly as I am committed to helping ports in my state of 
Louisiana and throughout our country to attract and benefit from 
increased cruise vessel operations, I am equally convinced that we will 
not achieve the full measure of these economic benefits if we simply 
allow foreign flag passenger vessels to operate between America's 
ports. Rather, I believe we should be directing our efforts to develop 
a large, modern and competitive cruise vessel fleet comprised of 
vessels built in the United States, operated under the United States-
flag, and crewed by United States citizens. Otherwise, we would simply 
be allowing foreign companies and foreign workers to receive all the 
privileges and benefits that come with operating in the United States 
domestic trade without any of the associated and resultant obligations 
and responsibilities we impose on American companies and American 
workers.
  The legislation I am introducing today is intended to reflect the 
economic realities facing companies seeking to enter the domestic 
cruise trade and the desire of American ports to attract cruise vessels 
as quickly as possible. It will jumpstart the domestic cruise vessel 
industry by allowing American companies to acquire foreign built cruise 
vessels and operate those ships in the domestic cruise trade under very 
specific and limited circumstances. These vessels will be documented 
under the laws of the United States, run with American citizen crews, 
and operated in compliance with all applicable United States laws, 
regulations and tax obligations.
  My legislation reflects the principles embodied in our Nation's 
cabotage laws while recognizing that a waiver of the Passenger Vessel 
Services Act, under specific terms and conditions, is absolutely 
necessary to attract United States-flag cruise vessels into our 
domestic trades.
  Especially significant is the fact that in order to take advantage of 
the authority to operate such vessels in the domestic trades, the owner 
must agree, and my legislation requires, that they will first enter 
into a contract to build a replacement vessel or vessels in a United 
States shipyard.
  I share the desire of Senator McCain and our colleagues to develop 
legislation that will immediately and dramatically increase domestic 
cruise vessel operations. However, I am convinced that we should not 
let this present opportunity pass by--we have a legitimate opportunity 
to increase the size of the oceangoing United States-flag cruise vessel 
fleet and to greatly increase the opportunity for American ports to 
attract and benefit from cruise vessel activity. I am aware of at least 
one American company ready to take advantage of this legislation, 
acquire two modern, attractive, large cruise vessels and operate them 
under the United States-flag under the terms and conditions set forth 
in my proposal.
  I ask all my colleagues to join with me in support of this proposal 
so we can achieve the operation and construction of United States-flag 
cruise vessels.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2290

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. PURPOSE.

       The purpose of this Act is to allow foreign-constructed 
     vessels to be documented as vessels of the United States with 
     the right to engage in the domestic coastwise cruise trade in 
     connection with the construction of cruise vessels in the 
     United States.

     SEC. 2. COASTWISE TRANSPORTATION OF PASSENGERS.

       (a) Reflagging.--
       (1) In general.--Notwithstanding section 12106(a)(2) of 
     title 46, United States Code, section 27 of the Merchant 
     Marine Act, 1920 (46 U.S.C. App. 883), the Act of June 19, 
     1886 (46 U.S.C. App. 289), or any other provision of law, the 
     Secretary of Transportation may issue a certificate of 
     documentation with a coastwise endorsement for a cruise 
     vessel not constructed in the United States to a person who 
     enters into a binding contract for construction in the United 
     States of a cruise vessel or vessels with a total combined 
     berth or stateroom capacity equal to at least 75 percent of 
     the total combined berth or stateroom capacity of the cruise 
     vessel or vessels for which the certificate is to be issued 
     under this paragraph.
       (2) Certificate sunset.--A certificate of documentation 
     issued to a vessel under paragraph (1) shall terminate 2 
     years after the date on which all vessels constructed under 
     the binding contract have been delivered.

[[Page S7959]]

       (b) Limitations.--
       (1) No competition with u.s.-built vessels.--A vessel 
     issued a certificate of documentation under subsection (a)(1) 
     may not operate in the coastwise cruise trade on a route 
     served by a cruise vessel built in the United States 
     operating under the authority of section 27 of the Merchant 
     Marine Act, 1920 (46 U.S.C. App. 883), the Act of June 19, 
     1886 (46 U.S.C. App. 289), section 12106(a)(2) of title 46, 
     United States Code, or any other authority of law in effect 
     on or before the date of enactment of this Act.
       (2) Hawaiian routes prohibited.--A vessel issued a 
     certificate of documentation under subsection (a)(1), or 
     constructed under a binding contract referred to in that 
     subsection, may not operate between or among the islands of 
     Hawaii.

     SEC. 3. CONSTRUCTION STANDARDS.

       A vessel issued a certificate of documentation under 
     subsection (a)(1) that meets the standards and conditions for 
     the issuance of a control verification certificate for a 
     cruise vessel documented under the laws of a foreign country 
     embarking passengers in the United States is deemed to be in 
     compliance with section 3309 of title 46, United States Code.

     SEC. 4. FOREIGN TRANSFER.

       Notwithstanding section 9(c) of the Shipping Act, 1916 (46 
     U.S.C. App. 808), a cruise vessel issued a certificate of 
     documentation under subsection (a)(1), or constructed under a 
     binding contract referred to in that subsection, may be 
     placed under foreign registry after its documentation under 
     subsection (a) or its initial documentation (in the case of a 
     vessel so constructed), but the Secretary shall revoke the 
     coastwise endorsement issued for any such vessel when it is 
     placed under foreign registry.

     SEC. 5. DEFINITIONS.

       In this Act:
       (1) Coastwise cruise trade.--The term ``coastwise cruise 
     trade'' means the transportation of passengers in coastwise 
     trade between points in the United States, either directly or 
     by way of a foreign point, or originating and terminating at 
     the same point in the United States.
       (2) Cruise vessel.--The term ``cruise vessel'' means a 
     vessel that--
       (A) is at least 10,000 gross tons as measured under chapter 
     142 of title 46, United States Code; and
       (B) has berth or stateroom accommodations for at least 275 
     passengers.
                                 ______
                                 
      By Mr. GRAMS:
  S. 2291. A bill to amend title 17, United States Code, to prevent the 
misappropriation of collections of information; to the Committee on the 
Judiciary.


               collections of information antipiracy act

  Mr. GRAMS. Mr. President, I rise today to introduce the ``Collections 
of Information Antipiracy Act.'' This legislation is similar to H.R. 
2652, legislation already passed unanimously by our colleagues in the 
House of Representatives on May 19 of this year that is currently 
pending before the Judiciary Committee.
  My legislation presents a much-needed Federal, legislative protection 
for databases. It is a fair and balanced bill that recognizes the need 
for database owners to receive adequate legal protection that provides 
them the incentives necessary to continue investing in database 
production.
  The bill also acknowledges that users must continue to have access to 
timely and innovative database products and services.
  America produces and uses some 65 percent of the world's databases.
  Our database industry spans an enormous range of products and 
services--from collection of information about antidotes to poisons, to 
valuable collections of business and financial data, to databases of 
medical procedures and practice guidelines used to assure reliable and 
effective patient care.
  These companies have been pioneers in offering innovative and easily 
accessible databases in any number of formats that meet consumer needs.
  The myriad of databases produced in the United States are used by the 
business community, researchers, educators, government officials, and 
citizens to gain knowledge and make decisions that affect every aspect 
of our lives.
  Yet, despite technological innovations, creating and offering 
databases in the marketplace is neither cheap nor easy.
  Not only must database owners expend substantial resources on the 
collection of data, they must also maintain and distribute these 
information products, while continually updating them and responding to 
the demands of their customers.
  Many American jobs depend on a healthy, vibrant U.S. database 
industry. These companies employ thousands of editors, researchers, and 
others. They invest millions of dollars in hardware and software to 
manage these large masses of information.
  Despite the enormous value of these databases to our economy and 
society, American database owners are under a dual threat.
  On the one hand, after a 1991 Supreme Court decision, it is 
increasingly unclear whether most databases are adequately protected 
from piracy by U.S. copyright law.
  Lower courts since 1991 have handed down several decisions that have 
diminished the number and types of databases that are protected under 
the compilation copyright provisions in the 1976 Copyright Act.
  In addition, these decisions have stated that even if databases as a 
whole may qualify for this limited copyright protection, the facts 
contained in them are freely available for the taking and re-use by 
others--including competing database producers --without authorization 
or compensation.
  Although database producers do have means other than a new Federal 
law to seek protection, none has proven adequate, as is evidenced in 
the study completed by the U.S. Copyright Office last August.
  Contract law, for example, binds only the parties to the contract and 
in any case varies from State to State and it also varies from country 
to country.
  Technological protections are beginning to appear and are slowly 
being implemented in the online world, but they offer no protection to 
databases that are produced in other formats.
  Some States have adopted doctrines of misappropriation; however, 
these legal protections are far from being uniform and offer no solace 
to database producers in States where such legal safeguards are not in 
place.
  The European Union has begun implementing a new directive protecting 
databases in their own countries, but only those produced in the 
European Union or in countries that offer comparable protections. This 
law clearly is designed to disadvantage database owners not located in 
an EU country. Great Britain, Germany, Spain, and most Scandinavian 
nations have already made changes in their own laws to implement the EU 
directive, and also a European official recently predicted that within 
a few years, as many as 35 of our trading partners in Europe and the 
Russian Federation will have similar laws in place.

  Unless the United States passes a law that is comparable to that now 
governing Europe, more and more American database owners may feel the 
need to move some or all of their operations overseas in an effort, to 
thwart potential piracy of their products and services by unscrupulous 
competitors or vendors.
  As I mentioned previously, Mr. President, American database producers 
are anxious to continue producing valuable databases for worldwide use. 
However, the technologies present in today's world that allow for easy 
copying and redistribution of information threaten a producer's ability 
to continue receiving a fair return on the tremendous investments 
required to produce quality databases.
  Coupled with the inadequacy of U.S. law to protect investment in 
databases and the threat posed by the EU directive, it is clear to me 
that Congress--and more importantly, the Senate--must act quickly if we 
are to preserve the American lead in database production and use.
  The ``Collections of Information Antipiracy Act'' offers a solution 
to the threats faced by American database owners by helping to provide 
the right to stop harmful practices that affect the marketplace for 
that database.
  This legislation uses Congress' powers under the Commerce clause of 
the Constitution to protect only those databases used in commerce.
  Protection is limited to those databases whose owners have invested 
substantial monetary or other resources in gathering, organizing, or 
maintaining a collection of information.
  It contains a definition of what constitutes a protected collection 
that is broad enough to offer effective protection to the wide range of 
products and services that would benefit from a new Federal law.
  This legislation also contains numerous and important exceptions to 
the protections granted. For example, it makes clear that databases may 
be

[[Page S7960]]

used for legitimate purposes of verification and news reporting. It 
offers special exceptions to nonprofit users, such as researchers, 
scientists, and educators. The bill also states clearly that no one is 
precluded from gathering the same facts contained on one database 
owner's product and creating another database--but again, as long as 
those facts are not stolen from the original database owner. Finally, 
the bill recognizes the importance of unfettered public access to 
Government databases by specifically denying protection to any database 
created by a governmental entity--whether Federal, State, or local--or 
any database that a Government agency seeks to have created and 
distributed under an exclusive licensing arrangement. Mr. President, 
the concepts that lie behind the Collections of Information Antipiracy 
Act, and many of its specific provisions, have been debated for more 
than 2 years now. The House-passed bill now before the Senate Judiciary 
Committee was the subject of two hearings that included witnesses from 
nearly every affected community--both producers and users of databases. 
Indeed, the bill I introduce today is a much-improved version of the 
legislation first introduced in the House, and many provisions have 
been added that strike a fair balance between the needs of database 
producers for adequate protection and the also requirements that users 
have fair access to these private-sector products and services. There 
should be no fear that database producers will exert extraordinary 
control over their products and services. But, this legislation 
contains not only a special savings clause preserving our antitrust 
laws, but it also specifies low penalties against any nonprofit user 
who may run afoul of this new law. In closing, Mr. President, I am 
convinced it is time for this body to act to protect the interests of 
database owners and users in the United States. The bill I am 
introducing today represents a reasonable and fair means of doing so, 
and I urge my colleagues to join with me in working during these few 
remaining days of the 105th Congress to consider and pass this very 
important piece of legislation.

                          ____________________