[Congressional Record Volume 162, Number 17 (Thursday, January 28, 2016)]
[Senate]
[Pages S382-S384]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3115. Mr. FRANKEN (for himself, Mr. Heinrich, Ms. Warren, and Mr.
Sanders) submitted an amendment intended to be proposed to amendment SA
2953 proposed by Ms. Murkowski to the bill S. 2012, to provide for the
modernization of the energy policy of the United States, and for other
purposes; which was ordered to lie on the table; as follows:
Strike subtitle E of title I and insert the following:
Subtitle E--Energy Efficiency Resource Standard
SEC. 1401. ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL
ELECTRICITY AND NATURAL GAS SUPPLIERS.
(a) In General.--Title VI of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by
adding at the end the following:
``SEC. 610. FEDERAL ENERGY EFFICIENCY RESOURCE STANDARD FOR
RETAIL ELECTRICITY AND NATURAL GAS SUPPLIERS.
``(a) Definitions.--In this section:
``(1) Base quantity.--
``(A) In general.--The term `base quantity', with respect
to a retail electricity supplier or retail natural gas
supplier, means, for each calendar year for which a
performance standard is established under subsection (c), the
average annual quantity of electricity or natural gas
delivered by the retail electricity supplier or retail
natural gas supplier to retail customers during the 3
calendar years immediately preceding the first year that
compliance is required under subsection (c)(1).
``(B) Exclusion.--The term `base quantity', with respect to
a retail natural gas supplier, does not include natural gas
delivered for purposes of electricity generation.
``(2) Customer facility savings.--The term `customer
facility savings' means a reduction in end-use electricity or
natural gas consumption (including waste heat energy savings)
at a facility of an end-use consumer of electricity or
natural gas served by a retail electricity supplier or
natural gas supplier, as compared to--
``(A) in the case of a new facility, consumption at a
reference facility of average efficiency;
``(B) in the case of an existing facility, consumption at
the facility during a base period of not less than 1 year;
``(C) in the case of new equipment that replaces existing
equipment at the end of the useful life of the existing
equipment, consumption by new equipment of average efficiency
of the same equipment type, except that customer savings
under this subparagraph shall not be counted towards customer
savings under subparagraph (A) or (B); and
``(D) in the case of new equipment that replaces existing
equipment with remaining useful life--
``(i) consumption of the existing equipment for the
remaining useful life of the equipment; and
``(ii) thereafter, consumption of new equipment of average
efficiency.
``(3) Electricity savings.--The term `electricity savings'
means reductions in electricity consumption achieved through
measures implemented after the date of enactment of this
section, as determined in accordance with regulations
promulgated by the Secretary, that are limited to--
``(A) customer facility savings of electricity, adjusted to
reflect any associated increase in fuel consumption at the
facility;
``(B) reductions in distribution system losses of
electricity achieved by a retail electricity supplier, as
compared to losses attributable to new or replacement
distribution
[[Page S383]]
system equipment of average efficiency, as defined in
regulations promulgated by the Secretary;
``(C) CHP savings;
``(D) codes and standards savings of electricity; and
``(E) fuel switching energy savings that results in net
savings of source energy.
``(4) Natural gas savings.--The term `natural gas savings'
means reductions in natural gas consumption from measures
implemented after the date of enactment of this section, as
determined in accordance with regulations promulgated by the
Secretary, that are limited to--
``(A) customer facility savings of natural gas, adjusted to
reflect any associated increase in electricity consumption or
consumption of other fuels at the facility;
``(B) reductions in leakage, operational losses, and
consumption of natural gas fuel to operate a gas distribution
system, achieved by a retail natural gas supplier, as
compared to similar leakage, losses, and consumption during a
base period of not less than 1 year;
``(C) codes and standards savings of natural gas; and
``(D) fuel switching energy savings that results in net
savings of source energy.
``(5) Retail electricity supplier.--
``(A) In general.--The term `retail electricity supplier'
means, for any given calendar year, an electric utility that
sells not less than 1,000,000 megawatt hours of electric
energy to electric consumers for purposes other than resale
during the preceding calendar year.
``(B) Inclusions and limitations.--For purposes of
determining whether an electric utility qualifies as a retail
electricity supplier under subparagraph (A)--
``(i) deliveries by any affiliate of an electric utility to
electric consumers for purposes other than resale shall be
considered to be deliveries by the electric utility; and
``(ii) deliveries by any electric utility to a lessee,
tenant, or affiliate of the electric utility shall not be
considered to be deliveries to electric consumers.
``(6) Retail natural gas supplier.--
``(A) In general.--The term `retail natural gas supplier'
means, for any given calendar year, a local distribution
company (as defined in section 2 of the Natural Gas Policy
Act of 1978 (15 U.S.C. 3301)), that delivered to natural gas
consumers more than 5,000,000,000 cubic feet of natural gas
for purposes other than resale during the preceding calendar
year.
``(B) Inclusions and limitations.--For purposes of
determining whether a person qualifies as a retail natural
gas supplier under subparagraph (A)--
``(i) deliveries of natural gas by any affiliate of a local
distribution company to consumers for purposes other than
resale shall be considered to be deliveries by the local
distribution company; and
``(ii) deliveries of natural gas to a lessee, tenant, or
affiliate of a local distribution company shall not be
considered to be deliveries to natural gas consumers.
``(b) Establishment of Program.--
``(1) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall, by
regulation, establish a program to implement and enforce the
requirements of this section, including by--
``(A) defining the terms `CHP savings', `code and standards
savings', `combined heat and power system', `cost-effective',
`fuel switching energy savings', `reporting period', `third-
party efficiency provider', and `waste heat energy savings';
``(B) establishing measurement and verification procedures
and standards that count only measures and savings that are
additional to business-as-usual customer purchase practices;
``(C) establishing requirements under which retail
electricity suppliers and retail natural gas suppliers
shall--
``(i) demonstrate, document, and report the compliance of
the retail electricity suppliers and retail natural gas
suppliers with the performance standards under subsection
(c); and
``(ii) estimate the impact of the standards on current and
future electricity and natural gas use in the service
territories of the suppliers;
``(D) establishing requirements governing applications for,
and implementation of, delegated State administration under
subsection (e); and
``(E) establishing rules to govern transfers of electricity
or natural gas savings between suppliers and third-party
efficiency providers serving the same State and between
suppliers and third-party efficiency providers serving
different States.
``(2) Coordination with state programs.--In establishing
and implementing this section, the Secretary shall, to the
maximum extent practicable, preserve the integrity and
incorporate best practices of existing State energy
efficiency programs.
``(c) Performance Standards.--
``(1) Compliance obligation.--Not later than May 1 of the
calendar year immediately following each reporting period--
``(A) each retail electricity supplier shall submit to the
Secretary a report, in accordance with regulations
promulgated by the Secretary, demonstrating that the retail
electricity supplier has achieved cumulative electricity
savings (adjusted to account for any attrition of savings
measures implemented in prior years) in each calendar year
that are equal to the applicable percentage of the base
quantity of the retail electricity supplier; and
``(B) each retail natural gas supplier shall submit to the
Secretary a report, in accordance with regulations
promulgated by the Secretary, demonstrating that it has
achieved cumulative natural gas savings (adjusted to account
for any attrition of savings measures implemented in prior
years) in each calendar year that are equal to the applicable
percentage of the base quantity of such retail natural gas
supplier.
``(2) Standards for 2017 through 2030.--For each of
calendar years 2017 through 2030, the applicable percentages
are as follows:
------------------------------------------------------------------------
Cumulative Electricity Cumulative Natural Gas
``Calendar Year Savings Percentage Savings Percentage
------------------------------------------------------------------------
2017 1.00 0.50
------------------------------------------------------------------------
2018 2.00 1.25
------------------------------------------------------------------------
2019 3.00 2.00
------------------------------------------------------------------------
2020 4.25 3.00
------------------------------------------------------------------------
2021 5.50 4.00
------------------------------------------------------------------------
2022 7.00 5.00
------------------------------------------------------------------------
2023 8.50 6.00
------------------------------------------------------------------------
2024 10.00 7.00
------------------------------------------------------------------------
2025 11.50 8.00
------------------------------------------------------------------------
2026 13.00 9.00
------------------------------------------------------------------------
2027 14.75 10.00
------------------------------------------------------------------------
2028 16.50 11.00
------------------------------------------------------------------------
2029 18.25 12.00
------------------------------------------------------------------------
2030 20.00 13.00.
------------------------------------------------------------------------
``(3) Subsequent years.--
``(A) Calendar years 2031 through 2040.--Not later than
December 31, 2028, the Secretary shall promulgate regulations
establishing performance standards (expressed as applicable
percentages of base quantity for both cumulative electricity
savings and cumulative natural gas savings) for each of
calendar years 2031 through 2040.
``(B) Requirements.--The Secretary shall establish
standards under this paragraph at levels reflecting the
maximum achievable level of cost-effective energy efficiency
potential, taking into account--
``(i) cost-effective energy savings achieved by leading
retail electricity suppliers and retail natural gas
suppliers;
``(ii) opportunities for new codes and standard savings;
``(iii) technology improvements; and
``(iv) other indicators of cost-effective energy efficiency
potential including differences between States.
``(C) Minimum percentage.--In no case shall the applicable
percentages for any calendar year be less than the applicable
percentages for calendar year 2030.
``(4) Delay of submission for first reporting period.--
``(A) In general.--Notwithstanding paragraphs (1) and (2),
for the 2017 reporting period, the Secretary may accept a
request from a retail electricity supplier or a retail
natural gas supplier to delay the required submission of
documentation of all or part of the required savings for up
to 2 years.
``(B) Plan for compliance.--The request for delay under
subparagraph (A) shall include a plan for coming into full
compliance by the end of the 2018-2019 reporting period.
``(5) Applying unused savings to future years.--If savings
achieved in a year exceed the performance standards specified
in this subsection, any savings in excess of the performance
standards may be applied toward performance standards
specified for future years.
``(d) Enforcement and Judicial Review.--
``(1) Review of retail supplier reports.--
``(A) In general.--The Secretary shall review each report
submitted to the Secretary by a retail electricity supplier
or retail natural gas supplier under subsection (c) to verify
that the applicable performance standards under subsection
(c) have been met.
``(B) Exclusion.--In determining compliance with the
applicable performance standards under subsection (c), the
Secretary shall exclude reported electricity savings or
natural gas savings that are not adequately demonstrated and
documented, in accordance with the regulations promulgated
under subsections (b) and (c).
``(2) Penalty for failure to document adequate savings.--If
a retail electricity supplier or a retail natural gas
supplier fails to demonstrate compliance with an applicable
performance standard under subsection (c), or to pay to the
State an applicable alternative compliance payment under
subsection (e)(3), the Secretary shall assess against the
retail electricity supplier or retail natural gas supplier a
civil penalty for each failure in an amount equal to, as
adjusted for inflation in accordance with such regulations as
the Secretary may promulgate--
``(A) $100 per megawatt hour of electricity savings or
alternative compliance payment that the retail electricity
supplier failed to achieve or make, respectively; or
``(B) $10 per million Btu of natural gas savings or
alternative compliance payment that the retail natural gas
supplier failed to achieve or make, respectively.
``(3) Offsetting state penalties.--The Secretary shall
reduce the amount of any penalty under paragraph (2) by the
amount paid by the relevant retail electricity supplier or
retail natural gas supplier to a State
[[Page S384]]
for failure to comply with the requirements of a State energy
efficiency resource standard during the same compliance
period.
``(4) Enforcement procedures.--The Secretary shall assess a
civil penalty, as provided under paragraph (2), in accordance
with the procedures described in section 333(d) of the Energy
Policy and Conservation Act of 1954 (42 U.S.C. 6303).
``(e) State Administration.--
``(1) In general.--Upon receipt of an application from the
Governor of a State (including the Mayor of the District of
Columbia), the Secretary may delegate to the State
responsibility for administering this section within the
territory of the State if the Secretary determines that the
State will implement an energy efficiency program that meets
or exceeds the requirements of this section.
``(2) Secretarial determination.--Not later than 180 days
after the date on which a complete application is received by
the Secretary, the Secretary shall make a substantive
determination approving or disapproving a State application,
after public notice and comment.
``(3) Alternative compliance payments.--
``(A) In general.--As part of an application submitted
under paragraph (1), a State may permit retail electricity
suppliers or retail natural gas suppliers to pay to the
State, by not later than May 1 of the calendar year
immediately following the applicable reporting period, an
alternative compliance payment in an amount equal to, as
adjusted for inflation in accordance with such regulations as
the Secretary may promulgate, not less than--
``(i) $50 per megawatt hour of electricity savings needed
to make up any deficit with regard to a compliance obligation
under the applicable performance standard; or
``(ii) $5 per million Btu of natural gas savings needed to
make up any deficit with regard to a compliance obligation
under the applicable performance standard.
``(B) Use of payments.--Alternative compliance payments
collected by a State under subparagraph (A) shall be used by
the State to administer the delegated authority of the State
under this section and to implement cost-effective energy
efficiency programs that--
``(i) to the maximum extent practicable, achieve
electricity savings and natural gas savings in the State
sufficient to make up the deficit associated with the
alternative compliance payments; and
``(ii) can be measured and verified in accordance with the
applicable procedures and standards under subsection
(b)(1)(B).
``(4) Review of state implementation.--
``(A) Periodic review.--Every 2 years, the Secretary shall
review State implementation of this section for conformance
with the requirements of this section in approximately \1/2\
of the States that have received approval under this
subsection to administer the program, so that each State
shall be reviewed at least every 4 years.
``(B) Report.--To facilitate the review under subparagraph
(A), the Secretary may require the State to submit a report
demonstrating the conformance of the State with the
requirements of this section.
``(C) Deficiencies.--
``(i) In general.--In completing a review under this
paragraph, if the Secretary finds deficiencies, the Secretary
shall--
``(I) notify the State of the deficiencies;
``(II) direct the State to correct the deficiencies; and
``(III) require the State to report to the Secretary on
progress made by not later than 180 days after the date on
which the State receives notice under subclause (I).
``(ii) Substantial deficiencies.--If the deficiencies are
substantial, the Secretary shall--
``(I) disallow the reported electricity savings or natural
gas savings that the Secretary determines are not credible
due to deficiencies;
``(II) re-review the State not later than 2 years after the
date on which the original review was completed; and
``(III) if substantial deficiencies remain uncorrected
after the review provided for under subclause (II), revoke
the authority of the State to administer the program
established under this section.
``(f) Information and Reports.--In accordance with section
13 of the Federal Energy Administration Act of 1974 (15
U.S.C. 772), the Secretary may require any retail electricity
supplier, retail natural gas supplier, third-party efficiency
provider, or any other entity that the Secretary determines
appropriate, to provide any information the Secretary
determines appropriate to carry out this section.
``(g) State Law.--Nothing in this section diminishes or
qualifies any authority of a State or political subdivision
of a State to adopt or enforce any law or regulation
respecting electricity savings or natural gas savings,
including any law or regulation establishing energy
efficiency requirements that are more stringent than those
under this section, except that no State law or regulation
shall relieve any person of any requirement otherwise
applicable under this section.''.
(b) Conforming Amendment.--The table of contents of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
prec. 2601) is amended by adding at the end of the items
relating to title VI the following:
``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Federal energy efficiency resource standard for retail
electricity and natural gas suppliers.''.
Subtitle F--Short Title
SEC. 1501. SHORT TITLE.
This title may be cited as the ``Portman-Shaheen Energy
Efficiency Improvement Act of 2016''.
______