[Congressional Record Volume 153, Number 140 (Thursday, September 20, 2007)]
[Senate]
[Pages S11856-S11859]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID:
  S. 2076. A bill to amend the Federal Power Act to require the 
President to

[[Page S11857]]

designate certain geographical areas as national renewable energy 
zones, and for other zones, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2076

       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 ``Clean Renewable Energy and 
     Economic Development Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) electricity produced from renewable resources--
       (A) helps to reduce emissions of greenhouse gases and other 
     air pollutants;
       (B) enhances national energy security;
       (C) conserves water and finite resources; and
       (D) provides substantial economic benefits, including job 
     creation and technology development;
       (2) the potential exists for a far greater percentage of 
     electricity generation in the United States to be achieved 
     through the use of renewable resources, as compared to the 
     percentage of electricity generation using renewable 
     resources in existence as of the date of enactment of this 
     Act;
       (3) many of the best potential renewable energy resources 
     are located in rural areas far from population centers;
       (4) the lack of adequate electric transmission capacity is 
     a primary obstacle to the development of electric generation 
     facilities fueled by renewable energy resources;
       (5) the economies of many rural areas would substantially 
     benefit from the increased development of water-efficient 
     electric generation facilities fueled by renewable energy 
     resources;
       (6) more efficient use of existing transmission capacity, 
     better integration of resources, and greater investments in 
     distributed generation and off-grid solutions may increase 
     the availability of transmission and distribution capacity 
     for adding renewable resources and help keep ratepayer costs 
     low;
       (7) the Federal Government has not adequately invested in 
     or implemented an integrated approach to accelerating the 
     development, commercialization, and deployment of renewable 
     energy technologies and renewable electricity generation, 
     including through enhancing distributed generation or through 
     vehicle- and transportation-sector use; and
       (8) it is in the national interest for the Federal 
     Government to implement policies that would enhance the 
     quantity of electric transmission capacity available to take 
     full advantage of the renewable energy resources available to 
     generate electricity, and to more fully integrate renewable 
     energy into the energy policies of the United States, and to 
     address the tremendous national security and global warming 
     challenges of the United States.

     SEC. 3. NATIONAL RENEWABLE ENERGY ZONES.

       (a) In General.--Title II of the Federal Power Act (16 
     U.S.C. 824 et seq.) is amended--
       (1) by inserting before the section heading of section 201 
     (16 U.S.C. 824 et seq.) the following:

        ``Subpart A--Regulation of Electric Utility Companies'';

     and
       (2) by adding at the end the following:

              ``Subpart B--National Renewable Energy Zones

     ``SEC. 231. DEFINITIONS.

       ``In this subpart:
       ``(1) Biomass.--
       ``(A) In general.--The term `biomass' means--
       ``(i) any lignin waste material that is segregated from 
     other waste materials and is determined to be nonhazardous by 
     the Administrator of the Environmental Protection Agency; and
       ``(ii) any solid, nonhazardous, cellulosic material that is 
     derived from--

       ``(I) mill residue, precommercial thinnings, slash, brush, 
     or nonmerchantable material;
       ``(II) solid wood waste materials, including a waste 
     pallet, a crate, dunnage, manufacturing and construction wood 
     wastes, and landscape or right-of-way tree trimmings;
       ``(III) agriculture waste, including an orchard tree crop, 
     a vineyard, a grain, a legume, sugar, other crop byproducts 
     or residues, and livestock waste nutrients; or
       ``(IV) a plant that is grown exclusively as a fuel for the 
     production of electricity.

       ``(B) Inclusions.--The term `biomass' includes animal waste 
     that is converted to a fuel rather than directly combusted, 
     the residue of which is converted to a biological fertilizer, 
     oil, or activated carbon.
       ``(C) Exclusions.--The term `biomass' does not include--
       ``(i) municipal solid waste;
       ``(ii) paper that is commonly recycled; or
       ``(iii) pressure-treated, chemically-treated, or painted 
     wood waste.
       ``(2) Commission.--The term `Commission' means the Federal 
     Energy Regulatory Commission.
       ``(3) Distributed generation.--The term `distributed 
     generation' means--
       ``(A) reduced electricity consumption from the electric 
     grid because of use by a customer of renewable energy 
     generated at a customer site; and
       ``(B) electricity or thermal energy production from a 
     renewable energy resource for a customer that is not 
     connected to an electric grid or thermal energy source 
     pipeline.
       ``(4) Electricity consuming area.--The term `electricity 
     consuming area' means the area within which electric energy 
     would be consumed if new high-voltage electric transmission 
     facilities were to be constructed to access renewable 
     electricity in a national renewable energy zone.
       ``(5) Electricity from renewable energy.--The term 
     `electricity from renewable energy' means--
       ``(A) electric energy generated from solar energy, wind, 
     biomass, landfill gas, the ocean (including tidal, wave, 
     current, and thermal energy), geothermal energy, or municipal 
     solid waste; or
       ``(B) new hydroelectric generation capacity achieved from 
     increased efficiency, or an addition of new capacity, at an 
     existing hydroelectric project.
       ``(6) Federal transmitting utility.--The term `Federal 
     transmitting utility' means--
       ``(A) a Federal power marketing agency that owns or 
     operates an electric transmission facility; and
       ``(B) the Tennessee Valley Authority.
       ``(7) Fuel cell vehicle.--The term `fuel cell vehicle' 
     means an onroad vehicle or nonroad vehicle that uses a fuel 
     cell (as defined in section 803 of the Spark M. Matsunaga 
     Hydrogen Act of 2005 (42 U.S.C. 16152)).
       ``(8) Grid-enabled vehicle.--The term `grid-enabled 
     vehicle' means an electric drive vehicle or fuel cell vehicle 
     that has the ability to communicate electronically with an 
     electric power provider or with a localized energy storage 
     system with respect to charging and discharging an onboard 
     energy storage device, such as a battery.
       ``(9) High-voltage electric transmission facility.--The 
     term `high-voltage electric transmission facility' means an 
     electric transmission facility that--
       ``(A) is necessary for the transmission of electric power 
     from a national renewable energy zone to an electricity-
     consuming area in interstate commerce; and
       ``(B) has a capacity in excess of 200 kilovolts.
       ``(10) Indian land.--The term `Indian land' means--
       ``(A) any land within the limits of any Indian reservation, 
     pueblo, or rancheria;
       ``(B) any land not within the limits of any Indian 
     reservation, pueblo, or rancheria title to which was, on the 
     date of enactment of this subpart--
       ``(i) held in trust by the United States for the benefit of 
     any Indian tribe or individual; or
       ``(ii) held by any Indian tribe or individual subject to 
     restriction by the United States against alienation;
       ``(C) any dependent Indian community; and
       ``(D) any land conveyed to any Alaska Native corporation 
     under the Alaska Native Claims Settlement Act (42 U.S.C. 1601 
     et seq.).
       ``(11) Network upgrade.--The term `network upgrade' means 
     an addition, modification, or upgrade to the transmission 
     system of a transmission provider required at or beyond the 
     point at which the generator interconnects to the 
     transmission system of the transmission provider to 
     accommodate the interconnection of 1 or more generation 
     facilities to the transmission system of the transmission 
     provider.
       ``(12) Renewable electricity connection facility.--
       ``(A) In general.--The term `renewable electricity 
     connection facility' means an electricity generation or 
     transmission facility that uses renewable energy sources.
       ``(B) Inclusions.--The term `renewable electricity 
     connection facility' includes inverters, substations, 
     transformers, switching units, storage units and related 
     facilities, and other electrical equipment necessary for the 
     development, siting, transmission, storage, and 
     interconnection of electricity generated from renewable 
     energy sources.
       ``(13) Renewable energy credit.--The term `renewable energy 
     credit' means a unique instrument representing 1 or more 
     units of electricity generated from renewable energy that is 
     designated by a widely-recognized certification organization 
     approved by the Commission or the Secretary of Energy.
       ``(14) Renewable energy trunkline.--
       ``(A) In general.--The term `renewable energy trunkline' 
     means all transmission facilities and equipment within a 
     national renewable energy zone owned, controlled, or operated 
     by a transmission provider that is used to deliver 
     electricity from renewable energy to the point at which the 
     facility connects to a high-voltage transmission facility, 
     including any modifications, additions or upgrades to the 
     facilities and equipment, at a voltage of 115 kilovolts or 
     more.
       ``(B) Exclusion.--The term `renewable energy trunkline' 
     does not include a network upgrade.

     ``SEC. 232. DESIGNATION OF NATIONAL RENEWABLE ENERGY ZONES.

       ``(a) Designations.--
       ``(1) In general.--Except as provided in paragraph (2), not 
     later than 1 year after the date of enactment of this 
     subpart, the President shall designate as a national 
     renewable

[[Page S11858]]

     energy zone each geographical area that, as determined by the 
     President--
       ``(A) has the potential to generate in excess of 1 gigawatt 
     of electricity from renewable energy, a significant portion 
     of which could be generated in a rural area or on Federal 
     land within the geographical area;
       ``(B) has an insufficient level of electric transmission 
     capacity to achieve the potential described in subparagraph 
     (A); and
       ``(C) has the capability to contain additional renewable 
     energy electric generating facilities that would generate 
     electricity consumed in 1 or more electricity consuming areas 
     if there were a sufficient level of transmission capacity.
       ``(2) Exclusions.--The President shall not include in any 
     national renewable energy zone designated under paragraph (1) 
     any Federal land that (as of the date of enactment of this 
     subpart) is designated as a wilderness study area, national 
     park, national monument, national wildlife refuge, or area of 
     critical environmental concern, if the Federal land is 
     subject to protective management policies that are 
     inconsistent with energy development.
       ``(b) Renewable Energy Requirements.--In making the 
     designations required by subsection (a), the President shall 
     take into account Federal and State requirements for 
     utilities to incorporate renewable energy as part of the load 
     of electric generating facilities.
       ``(c) Consultation.--Before making any designation under 
     subsection (a), the President shall consult with--
       ``(1) the Governors of affected States;
       ``(2) the public;
       ``(3) public and private electricity and transmission 
     utilities and cooperatives;
       ``(4) public utilities commissions and regional electricity 
     planning organizations;
       ``(5) Federal and State land management and energy and 
     environmental agencies;
       ``(6) renewable energy companies;
       ``(7) local government officials;
       ``(8) renewable energy and energy efficiency interest 
     groups;
       ``(9) Indian tribes; and
       ``(10) environmental protection and land, water, and 
     wildlife conservation groups.
       ``(d) Recommendations.--Not sooner than 3 years after the 
     date of enactment of this subpart, and triennially 
     thereafter, the Secretary of Energy and the Federal 
     transmitting utilities, in cooperation with the Director of 
     the Bureau of Land Management, the Director of the United 
     States Geological Survey, the Commissioner of Reclamation, 
     the Director of the Forest Service, the Director of the 
     United States Fish and Wildlife Service, and the Secretary of 
     Defense, and after consultation with the Governors of the 
     States, shall recommend to the President and Congress--
       ``(1) specific areas with the greatest potential for 
     environmentally acceptable renewable energy resource 
     development; and
       ``(2) any modifications of laws (including regulations) and 
     resource management plans necessary to fully achieve that 
     potential, including identifying improvements to permit 
     application processes involving military and civilian 
     agencies.
       ``(e) Revision of Designations.--Based on the 
     recommendations received under subsection (d), the President 
     may revise the designations made under subsection (a), as 
     appropriate.

     ``SEC. 233. ENCOURAGING CLEAN ENERGY DEVELOPMENT IN NATIONAL 
                   RENEWABLE ENERGY ZONES.

       ``(a) Cost Recovery.--The Commission shall promulgate such 
     regulations as are necessary to ensure that a public utility 
     transmission provider that finances a high-voltage electric 
     transmission facility or other renewable electricity 
     connection facility located in 2 or more States and added in 
     a national renewable energy zone after the date of enactment 
     of this subpart recovers all prudently incurred costs, and a 
     reasonable return on equity, associated with the new 
     transmission capacity.
       ``(b) Alternative Transmission Financing Mechanism.--
       ``(1) In general.--The Commission shall permit a renewable 
     energy trunkline built by a public utility transmission 
     provider in a national renewable energy zone to be initially 
     funded through a transmission charge imposed on all 
     transmission customers of the transmission provider or, if 
     the renewable energy trunkline is built in an area served by 
     a regional transmission organization or independent system 
     operator, all of the transmission customers of the 
     transmission operator, if the Commission finds that--
       ``(A) the renewable energy resources that would use the 
     renewable energy trunkline are remote from the grid and load 
     centers;
       ``(B) the renewable energy trunkline will likely result in 
     multiple individual renewable energy electric generation 
     projects being developed by multiple competing developers; 
     and
       ``(C) the renewable energy trunkline has at least 1 project 
     subscribed through an executed generation interconnection 
     agreement with the transmission provider and has tangible 
     demonstration of additional interest.
       ``(2) New electric generation projects.--As new electric 
     generation projects are constructed and interconnected to the 
     renewable energy trunkline, the transmission services 
     contract holder for the generation project shall, on a 
     prospective basis, pay a pro rata share of the facility costs 
     of the renewable energy trunkline, thus reducing the effect 
     on the rates of customers of the public utility transmission 
     provider.
       ``(c) Federal Transmitting Utilities.--
       ``(1) In general.--Not later than 1 year after the 
     designation of a national renewable energy zone, a Federal 
     transmitting utility that owns or operates 1 or more electric 
     transmission facilities in a State with a national renewable 
     energy zone shall identify specific additional high-voltage 
     or other renewable electricity connection facilities required 
     to substantially increase the generation of electricity from 
     renewable energy in the national renewable energy zone.
       ``(2) Lack of private funds.--If, by the date that is 3 
     years after the date of enactment of this subpart, no 
     privately-funded entity has committed to financing (through 
     self-financing or through a third-party financing arrangement 
     with a Federal transmitting utility) to ensure the 
     construction and operation of a high-voltage or other 
     renewable electricity connection facility identified pursuant 
     to paragraph (1) by a specified date, the Federal 
     transmitting utility responsible for the identification shall 
     finance such a transmission facility if the Federal 
     transmitting utility has sufficient bonding authority under 
     paragraph (3).
       ``(3) Bonding authority.--
       ``(A) In general.--In addition to any other authority to 
     issue and sell bonds, notes, and other evidence of 
     indebtedness, a Federal transmitting utility may issue and 
     sell bonds, notes, and other evidence of indebtedness in an 
     amount not to exceed, at any 1 time, an aggregate outstanding 
     balance of $10,000,000,000, to finance the construction of 
     transmission facilities identified pursuant to paragraph (1) 
     for the principal purposes of--
       ``(i) increasing the generation of electricity from 
     renewable energy; and
       ``(ii) conveying that electricity to an electricity 
     consuming area.
       ``(B) Recovery of costs.--A Federal transmitting utility 
     shall recover the costs of renewable electricity connection 
     facilities financed pursuant to paragraph (2) from entities 
     using the transmission facilities over a period of 50 years.
       ``(C) Nonliability of certain customers.--Individuals and 
     entities that, as of the date of enactment of this subpart, 
     are customers of a Federal transmitting utility shall not be 
     liable for the costs, in the form of increased rates charged 
     for electricity or transmission, of renewable electricity 
     connection facilities constructed pursuant to this section, 
     except to the extent the customers are treated in a manner 
     similar to all other users of the renewable electricity 
     connection facilities.
       ``(d) Operation of High-Voltage Transmission Lines Using 
     Renewable Energy Resources.--
       ``(1) Public utilities financing limitation.--The 
     regulations promulgated pursuant to this section shall, to 
     the maximum extent practicable, ensure that not less than 75 
     percent of the capacity of any high-voltage transmission 
     lines financed pursuant to subsection (c) is used for 
     electricity from renewable energy.
       ``(2) Non-public utilities access limitation.--
     Notwithstanding section 368 of the Energy Policy Act of 2005 
     (42 U.S.C. 15926), the Commission shall promulgate 
     regulations to ensure, to the maximum extent practicable, 
     that not less than 75 percent of the capacity of high-voltage 
     transmission facilities sited primarily or partially on 
     Federal land and constructed after the date of enactment of 
     this subpart is used for electricity from renewable energy.

     ``SEC. 234. FEDERAL POWER MARKETING AGENCIES.

       ``(a) Promotion of Renewable Energy and Energy 
     Efficiency.--Each Federal transmitting utility shall--
       ``(1) identify and take steps to promote energy 
     conservation and renewable energy electric resource 
     development in the regions served by the Federal transmitting 
     utility;
       ``(2) use the purchasing power of the Federal transmitting 
     utility to acquire, on behalf of the Federal Government, 
     electricity from renewable energy and renewable energy 
     credits in sufficient quantities to meet the requirements of 
     section 203 of the Energy Policy Act of 2005 (42 U.S.C. 
     15852); and
       ``(3) identify opportunities to promote the development of 
     facilities generating electricity from renewable energy on 
     Indian land.
       ``(b) Wind Integration Programs.--The Bonneville Power 
     Administration and the Western Area Power Administration 
     shall each establish a program focusing on the improvement of 
     the integration of wind energy into the transmission grids of 
     those Administrations through the development of transmission 
     products, including through the use of Federal hydropower 
     resources, that--
       ``(1) take into account the intermittent nature of wind 
     electric generation; and
       ``(2) do not impair electric reliability.
       ``(c) Solar Integration Program.--Each of the Federal Power 
     Administrations and the Tennessee Valley Authority shall 
     establish a program to carry out projects focusing on the 
     integration of solar energy, through photovoltaic 
     concentrating solar systems and other forms and systems, into 
     the respective transmission grids and into remote and 
     distributed applications in the respective service 
     territories of the Federal Power Administrations and 
     Tennessee Valley Authority, that--
       ``(1) take into account the solar energy cycle;
       ``(2) maximize the use of Federal land for generation or 
     energy storage, where appropriate; and
       ``(3) do not impair electric reliability.

[[Page S11859]]

       ``(d) Geothermal Integration Program.--The Bonneville Power 
     Administration and the Western Area Power Administration 
     shall establish a joint program to carry out projects 
     focusing on the development and integration of geothermal 
     energy resources into the respective transmission grids of 
     the Bonneville Power Administration and the Western Area 
     Power Administration, as well as non-grid, distributed 
     applications in those service territories, including projects 
     combining geothermal energy resources with biofuels 
     production or other industrial or commercial uses requiring 
     process heat inputs, that--
       ``(1) maximize the use of Federal land for the projects and 
     activities;
       ``(2) displace fossil fuel baseload generation or petroleum 
     imports; and
       ``(3) improve electric reliability.
       ``(e) Renewable Electricity and Energy Security Projects.--
       ``(1) In general.--The Federal transmitting utilities, 
     shall, in consultation with the Commission, the Secretary, 
     the National Association of Regulatory Utility Commissioners, 
     and such other individuals and entities as are necessary, 
     undertake geographically diverse projects within the 
     respective service territories of the utilities to acquire 
     and demonstrate grid-enabled and nongrid-enabled plug-in 
     electric and hybrid electric vehicles and related 
     technologies as part of their fleets of vehicles.
       ``(2) Increase in renewable energy use.--To the maximum 
     extent practicable, each project conducted pursuant to any of 
     subsections (b) through (d) shall include a component to 
     develop vehicle technology, utility systems, batteries, power 
     electronics, or such other related devices as are able to 
     substitute, as the main fuel source for vehicles, 
     transportation-sector petroleum consumption with electricity 
     from renewable energy sources.

     ``SEC. 235. RELATIONSHIP TO OTHER LAWS.

       ``Nothing in this subpart supersedes or affects any Federal 
     environmental, public health or public land protection, or 
     historic preservation law, including--
       ``(1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       ``(2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.); and
       ``(3) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.).''.
       (b) Transmission Cost Allocation.--Section 206 of the 
     Federal Power Act (16 U.S.C. 824e) is amended by adding at 
     the end the following:
       ``(f) Transmission Cost Allocation.--
       ``(1) In general.--Not later than 180 days after the date 
     on which the President designates an area as a national 
     renewable energy zone under section 232, the State utility 
     commissions or other appropriate bodies having jurisdiction 
     over the public utilities providing service in the national 
     renewable energy zone or an adjacent electricity consuming 
     area may jointly propose to the Commission a cost allocation 
     plan for high-voltage electric transmission facilities built 
     by a public utility transmission provider that would serve 
     the electricity consuming area.
       ``(2) Approval.--The Commission may approve a plan proposed 
     under paragraph (1) if the Commission determines that--
       ``(A) taking into account the users of the transmission 
     facilities, the plan will result in rates that are just and 
     reasonable and not unduly discriminatory or preferential; and
       ``(B) the plan would not unduly inhibit the development of 
     renewable energy electric generation projects.
       ``(3) Cost allocation.--Unless a plan is approved by the 
     Commission under paragraph (2), the Commission shall fairly 
     allocate the costs of new high-voltage electric transmission 
     facilities built in the area by 1 or more public utility 
     transmission providers (recognizing the national and regional 
     benefits associated with increased access to electricity from 
     renewable energy) pursuant to a rolled-in transmission 
     charge.
       ``(4) Federal transmitting utility.--Nothing in this 
     subsection expands, directly or indirectly, the jurisdiction 
     of the Commission with respect to any Federal transmitting 
     utility.''.
       (c) Conforming Amendments.--
       (1) Section 3 of the Federal Power Act (42 U.S.C. 796) is 
     amended by adding at the end the following:
       ``(30) Electric drive vehicle.--
       ``(A) In general.--The term `electric drive vehicle' means 
     a vehicle that uses--
       ``(i) an electric motor for all or part of the motive power 
     of the vehicle; and
       ``(ii) off-board electricity wherever practicable.
       ``(B) Inclusions.--The term `electric drive vehicle' 
     includes--
       ``(i) a battery electric vehicle;
       ``(ii) a plug-in hybrid electric vehicle; and
       ``(iii) a plug-in hybrid fuel cell vehicle.''.
       (2) Subpart A of part II of the Federal Power Act (as 
     redesignated by subsection (a)) is amended--
       (A) in the heading of section 201, by striking ``part'' and 
     inserting ``subpart''; and
       (B) by striking ``this Part'' each place it appears and 
     inserting ``this subpart''.
                                 ______