Congressional Record, Volume 144 Issue 91 (Friday, July 10, 1998)

[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.

____________________