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<td width="33%"><p align="center"><a href="ceca.htm"><small>The Bill</small></a></td>
<td width="33%"><p align="center"><a href="cecasum.htm"><small>Supporting Analysis</small></a></td>
<td><a href="appndixa.htm"><small>Appendix</small></a></td>
<td width="34%"><p align="center"><a href="http://www.retailenergy.com/pmamag.htm"><small>Home</small></a></td>
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<p ALIGN="CENTER"> </p>
<p ALIGN="CENTER"><strong>A BILL</strong></p>
<p>To provide for a more competitive electric power industry, and for other purposes.</p>
<u>
<p>Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled</u>,</p>
<p><strong>SECTION 1. SHORT TITLE.</strong></p>
<p>This Act may be cited as the "Comprehensive Electricity Competition Act".</p>
<p><strong><a NAME="TOC">SEC. 2. TABLE OF CONTENTS.</a></strong></font><font FACE="Arial"
SIZE="3"></p>
<p>Sec. 1. Short title. <br>
Sec. 2. Table of contents.</p>
<p ALIGN="left"><strong><a href="#title1">TITLE I -- RETAIL ELECTRIC SERVICE</a><br>
</strong><a href="#Sec101">Sec. 101. Retail competition. </a><br>
<a href="#Sec102">Sec. 102. Authority to impose reciprocity requirements. </a><br>
<a href="#Sec103">Sec. 103. Consumer information.</a></p>
<p ALIGN="left"><strong><a href="#title2">TITLE II -- FACILITATING STATE AND REGIONAL
REGULATION</a><br>
</strong><a href="#Sec201">Sec. 201. Clarification of State and Federal authority over
retail transmission services.</a> <br>
<a href="#Sec202">Sec. 202. Interstate compacts on regional transmission planning. </a><br>
<a href="#Sec203">Sec. 203. Backup authority to impose a charge on an ultimate consumer's
receipt of electric energy.</a><br>
<a href="#Sec204">Sec. 204. Authority to establish and require independent system
operation.</a></p>
<p ALIGN="left"><a href="#title3"><strong>TITLE III -- PUBLIC BENEFITS</strong></a><br>
<a href="#Sec301">Sec. 301. Public benefits fund. </a><br>
<a href="#Sec302">Sec. 302. Federal renewable portfolio standard. </a><br>
<a href="#Sec303">Sec. 303. Net metering. </a><br>
<a href="#Sec304">Sec. 304. Reform of section 210 of PURPA.</a></p>
<p ALIGN="left"><strong><a href="#title4">TITLE IV -- REGULATION OF MERGERS AND CORPORATE
STRUCTURE</a><br>
</strong><a href="#Sec401">Sec. 401. Reform of holding company regulation under PUHCA. </a><br>
<a href="#Sec402">Sec. 402. Electric company mergers. </a><br>
<a href="#Sec403">Sec. 403. Remedial measures for market power.</a></p>
<p ALIGN="left"><strong><a href="#title5">TITLE V -- ELECTRIC RELIABILITY</a><br>
</strong><a href="#Sec501">Sec. 501. Electric reliability organization and oversight. </a><br>
<a href="#Sec502">Sec. 502. Statutory presumption.</a></p>
<p ALIGN="left"><strong><a href="#title6">TITLE VI -- ENVIRONMENTAL PROTECTION</a><br>
</strong><a href="#Sec601">Sec. 601. Nitrogen oxides cap and trade program.</a></p>
<p ALIGN="left"><strong><a href="#title7">TITLE VII -- OTHER REGULATORY PROVISIONS</a><br>
</strong><a href="#Sec701">Sec. 701. Treatment of nuclear decommissioning costs in
bankruptcy. </a><br>
<a href="#Sec702">Sec. 702. Study of impacts of competition in electricity markets by the
Energy Information Administration. </a><br>
<a href="#Sec703">Sec. 703. Antitrust savings clause. </a><br>
<a href="#Sec704">Sec. 704. Elimination of antitrust review by the Nuclear Regulatory
Commission. </a><br>
<a href="#Sec705">Sec. 705. Environmental laws savings clause.</a></p>
</font><font FACE="Arial">
<p ALIGN="left"><strong><a NAME="TITLE1">TITLE I. RETAIL ELECTRIC SERVICE</a></strong></p>
<p ALIGN="left"><strong><a NAME="Sec101">SEC.101. RETAIL COMPETITION</a></strong></p>
<p>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:"</p>
<p>SEC. 609. RETAIL COMPETITION.</p>
<p>"(a) Definitions.--For purposes of this section—</p>
<p>"(1) ‘distribution utility' means a person, State agency, or any other entity
that owns or operates a local distribution facility used for the sale of electric energy
to an electric consumer;</p>
<p>"(2) 'nonregulated distribution utility' means a distribution utility not subject
to the ratemaking authority of a State regulatory authority; and</p>
<p>"(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—</p>
<p>"(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</p>
<p>"(B) cannot be recovered because of implementation of retail competition under
subsection (b).</p>
<p>"(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.</p>
<p>"(c) Opt Out.--(1) A State regulatory authority (with respect to a distribution
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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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 subsection (b) makes a
notice of retail competition ineffective for purposes of section 118 of this Act and
sections212(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.".</p>
<p>(b) Definition.--Section 3 of PURPA is amended by adding after paragraph (21)the
following new paragraph:</p>
<p>"(22) The term 'notice of retail competition' means a notice filed under section
609(d).". </p>
<p><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p><strong><a NAME="Sec102">SEC. 102. AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.</a></strong></p>
<p>PURPA is amended by adding the following new section after section 117:</p>
<p>"SEC. 118. AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.</p>
<p>"(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
of1998) 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.</p>
<p>"(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.</p>
<p>"(c) Definitions.--For purposes of this section, 'distribution utility' and
‘nonregulated distribution utility' have the meaning given them in section
609(a).".</p>
<p><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p><strong><a NAME="Sec103">SEC. 103. CONSUMER INFORMATION.</a></strong></p>
<p>PURPA is amended by adding the following new section after section 118 as added by
section 102 of this Act:</p>
<p>"SEC. 119. CONSUMER INFORMATION DISCLOSURE</p>
<p>"(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 (c) of
this section. The rules shall be prescribed in accordance with section553 of title 5,
United States Code (the Administrative Procedure Act).</p>
<p>"(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:</p>
<p>"(1) the nature of the service being offered, including information about
interruptibility or curtailment of service;</p>
<p>"(2) the price of the electric energy, including a description of any variable
charges;</p>
<p>"(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;</p>
<p>"(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</p>
<p>"(5) any other information the Secretary determines can be provided feasibly and
would be useful to consumers in making purchasing decisions.</p>
<p>"(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).</p>
<p>"(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.</p>
<p>"(e) Authority to Obtain Information.--Authority to obtain information under
section 11 of the Energy Supply and Environmental Coordination Act of 1974 (15U.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 under 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.</p>
<p>"(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 to—</p>
<p>"(A) enjoin the violation;</p>
<p>"(B) enforce compliance with the rule of the Secretary;</p>
<p>"(C) obtain damages, restitution, or other compensation on behalf of its
residents; or</p>
<p>"(D) obtain other relief the court considers appropriate.</p>
<p>"(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—</p>
<p>"(A) intervene in the action, and</p>
<p>"(B) upon so intervening, be heard on all matters arising in the action and file
petition for appeal.</p>
<p>"(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.</p>
<p>"(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."</p>
<p>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 where ever revenue 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.</p>
<p>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.".</p>
<p><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p><strong><a NAME="TITLE2">TITLE II. FACILITATING STATE AND REGIONAL REGULATION</a></strong></p>
<p><strong><a NAME="Sec201">SEC. 201. CLARIFICATION OF STATE AND FEDERAL AUTHORITY OVER
RETAILTRANSMISSION SERVICES.</a></strong></p>
<p>Non preemption 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):</p>
<p>"(3) This Act does not preempt or otherwise affect any authority under the law of
a State or municipality to—</p>
<p>"(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</p>
<p>"(B) impose a delivery charge on an ultimate consumer’s receipt of electric
energy.".</p>
<p>Open Access Transmission Authority; Retail Wheeling in Retail Competition States.</p>
<p>Applicability of Open Access Transmission Rules.--Section 206 of the FPA is amended by
adding the following new subsection after subsection (d):</p>
<p>"(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 for many 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.".</p>
<p>(2) Authority to Order Retail Wheeling.--Section 212(h) of the FPA is amended—</p>
<p>(A) by inserting "(1)" before "No";</p>
<p>(B) by striking "(1)", "(2)", "(A)", and "(B)"
and inserting in their places "(A)", "(B)", "(i)", and
"(ii)" respectively;</p>
<p>(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</p>
<p>(D) by adding at the end a new paragraph as follows:</p>
<p>"(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.".</p>
<p>(3) Conforming Amendments.—</p>
<p>(A) Section 3(23) of the FPA is amended to read as follows:</p>
<p>"(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.".</p>
<p>(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.".</p>
<p>(C) Section 211(a) of the FPA is amended by striking "for resale".</p>
<p>(D) Section 212(a) of the FPA is amended by striking "wholesale" each time it
appears, except the last time.</p>
<p>(c) Applicability of Commission Jurisdiction to Transmitting Utilities.--Section206(e)
of the FPA as added by subsection (b)(1) of this section is amended by adding the
following new paragraphs after paragraph (1):</p>
<p>"(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).</p>
<p>"(B) In exercising its authority under this paragraph, the Commission—</p>
<p>"(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;</p>
<p>"(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</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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 these entities, if the Commission finds that the entity will
not be able to recover stranded costs.</p>
<p>"(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.".</p>
<p><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p><a NAME="Sec202"><strong>SEC. 202. INTERSTATE COMPACTS ON REGIONAL TRANSMISSION
PLANNING.</strong></a></p>
<p>The FPA is amended by adding after section 214 the following new section:</p>
<p>"INTERSTATE COMPACTS ON REGIONAL TRANSMISSION PLANNING</p>
<p>"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—</p>
<p>"(1) facilitate coordination among the States within a particular region with
regard to the planning of future transmission, generation, and distribution facilities,</p>
<p>"(2) carry out State electric facility siting responsibilities more effectively,</p>
<p>"(3) meet the other requirements of this section and rules prescribed by the
Commission under this section, and</p>
<p>"(4) otherwise be consistent with the public interest.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(c)(1) The Commission shall prescribe—</p>
<p>"(A) criteria for determining whether a regional transmission planning agreement
meets subsection (a), and</p>
<p>"(B) standards for the administration of a regional transmission planning agency
established under the agreement.</p>
<p>"(2) The criteria shall provide that, in order to meet subsection (a)—</p>
<p>"(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,</p>
<p>"(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,</p>
<p>"(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</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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".".</p>
<p><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p><a NAME="Sec203"><strong>SEC. 203. BACKUP AUTHORITY TO IMPOSE A CHARGE ON AN ULTIMATE
CONSUMER’S RECEIPT OF ELECTRIC ENERGY</strong></a></p>
<p>The FPA is amended by adding the following new section after section 215 as added by
section 202 of this Act:</p>
<p>"BACKUP AUTHORITY FOR CHARGE ON RECEIPT OF ELECTRIC ENERGY"</p>
<p>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.</p>
<p>"(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.".</p>
<p><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p><a NAME="Sec204"><strong>SEC. 204. AUTHORITY TO ESTABLISH AND REQUIRE INDEPENDENT
SYSTEM OPERATION</strong></a></p>
<p>Section 202 of the FPA is amended by adding the following new subsection after
subsection (g)</p>
<p>:"(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—</p>
<p>"(1) this action is appropriate to promote competitive electricity markets and
efficient, economical, and reliable operation of the interstate transmission grid;</p>
<p>"(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</p>
<p>"(3) any transmitting utility ordered to transfer control of its transmission
facilities will receive just and reasonable compensation for the use of its
facilities.".</p>
<p ALIGN="left"><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p ALIGN="left"><a NAME="TITLE3"><strong>TITLE III. PUBLIC BENEFITS</strong></a></p>
<p><strong><a NAME="Sec301">SEC. 301. PUBLIC BENEFITS FUND</a></strong></p>
<p>PURPA is amended by adding after section 609, as added by section 101 of this Act, the
following new section:</p>
<p>"SEC. 610. PUBLIC BENEFITS FUND.</p>
<p>"(a) Definitions.--For purposes of this section—</p>
<p>"(1) the term 'Board' means the Federal-State Joint Board established under
subsection (b)(1);</p>
<p>"(2) the term 'eligible public purpose program' means a program that supports one
or more of the following—</p>
<p>"(A) availability of affordable electricity service to low-income customers,</p>
<p>"(B) implementation of energy conservation and energy efficiency measures and
energy management practices,</p>
<p>"(C) consumer education,</p>
<p>"(D) the development and demonstration of an electricity generation technology
that the Secretary determines is emerging from research and development, provides
environmental benefits, and—</p>
<p>"(i) has significant national commercial potential, or</p>
<p>"(ii) provides energy security or generation resource diversity benefits, or</p>
<p>"(E) rural assistance subsequent to a determination made under subsection (d)(4);</p>
<p>"(3) the term 'fiscal agent' means the entity designated under
subsection(b)(2)(B);</p>
<p>"(4) the term 'Fund' means the Public Benefits Fund established under subsection
(b)(2)(A); and</p>
<p>"(5) the term 'State' means each of the contiguous States and the District of
Columbia.</p>
<p>"(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.</p>
<p>"(2) The Board shall—</p>
<p>"(A) establish a Public Benefits Fund upon petition of States and tribal
governments wishing to participate in the program under this section,</p>
<p>"(B) appoint a fiscal agent, from persons nominated by the States and tribal
governments petitioning to establish the Fund, and</p>
<p>"(C) administer the Fund as set forth in this section.</p>
<p>"(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.</p>
<p>"(d) Secretary.--The Secretary shall prescribe rules for—</p>
<p>"(1) the determination of charges under subsection (e);</p>
<p>"(2) the collection of amounts for the Fund, including provisions for
overcollection or undercollection;</p>
<p>"(3) distribution of amounts from the Fund; and"</p>
<p>"(4) the criteria under which the Board determines whether a State or tribal
government's program is an eligible public purpose 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 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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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 section611, 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
environmental goals of this section and section 611 of this Act.</p>
<p>"(C) If a finding is made under subsection (d)(4) in relation to rural customers,
the public benefit charge shall be increased as indicated under subsection (d)(4).</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(3) Notwithstanding subsection (a)(5)—</p>
<p>"(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</p>
<p>"(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.</p>
<p>"(g) Disbursal from the Fund.--(1) 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.</p>
<p>"(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).</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.".</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec302"><strong>SEC. 302. FEDERAL RENEWABLE PORTFOLIO STANDARD.</strong></a></p>
<p>(a) Standard.--PURPA is amended by adding after section 610, as added by section 301 of
this Act, the following new section:</p>
<p>"SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD.</p>
<p>"(a) Minimum Renewable Generation Requirement.--(1) 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.</p>
<p>"(2) For purposes of this section 'renewable energy' means energy produced by
solar, wind, geothermal, or biomass.</p>
<p>"(3) This section does not preclude a State from requiring additional renewable
energy generation in that State.</p>
<p>"(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.</p>
<p>"(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).</p>
<p>"(3) for calendar years 2010-2015, 5.5 percent.</p>
<p>"(c) Submission of Credits.--A retail electric supplier may satisfy the
requirements of subsection (a) through the submission of—</p>
<p>"(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,</p>
<p>"(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 </p>
<p>"(3) any combination of Credits under paragraphs (1) and (2).</p>
<p>"(d) Issuance of Credits.--(1) 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.</p>
<p>"(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—</p>
<p>"(A) the type of energy used to produce the electricity,</p>
<p>"(B) the State in which the electric energy was produced, and</p>
<p>"(C) any other information the Secretary determines appropriate.</p>
<p>"(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 non-renewable energy are
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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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).</p>
<p>"(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.</p>
<p>"(f) Renewable Energy Credit Cost Cap.--Beginning January 1, 2000, the Secretary
shall offer Renewable Energy Credits for sale. The Secretary shall charge1.5 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 purposes as other amounts in
the Public Benefits Fund.</p>
<p>"(g) Enforcement.--The Secretary may bring 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.</p>
<p>"(h) Information Collection.--The Secretary may collect the information necessary
to verify and audit—</p>
<p>"(1) the annual electric energy generation and renewable energy generation of any
entity applying for Renewable Energy Credits under this section,</p>
<p>"(2) the validity of Renewable Energy Credits submitted by a retail electric
supplier to the Secretary, and</p>
<p>"(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:</p>
<p>"(23) The term 'retail electric supplier' means a person, State agency, or Federal
agency that sells electric energy to an electric consumer.".</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec303"><strong>SEC. 303. NET METERING</strong></a></p>
<p>PURPA is amended by adding the following new section after section 611 as added by
section 302 of this Act:</p>
<p>"SEC. 612. NET METERING FOR RENEWABLE ENERGY</p>
<p>"(a) Definitions.--For purposes of this section—</p>
<p>"(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.</p>
<p>"(2) The term 'renewable energy resource' means solar energy, wind, geothermal, or
biomass.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.".</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec304"><strong>SEC. 304. REFORM OF SECTION 210 OF PURPA</strong></a></p>
<p>Section 210 of PURPA is amended by adding the following new subsection after subsection
(l):</p>
<p>"(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.".</p>
<p><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p><a NAME="TITLE4"><strong>TITLE IV. REGULATION OF MERGERS AND CORPORATE STRUCTURE</strong></a></p>
<p><strong><a NAME="Sec401">SEC. 401. REFORM OF HOLDING COMPANY REGULATION UNDER PUHCA.</a></strong></p>
<p>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.</p>
<p>"SECTION 1. SHORT TITLE.</p>
<p>"This Act may be cited as the 'Public Utility Holding Company Act of 1998'.</p>
<p>"SEC. 2. DEFINITIONS.</p>
<p>"For purposes of this Act –</p>
<p>"(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;</p>
<p>"(2) the term 'associate company' of a company means any company in the same
holding company system with such company;</p>
<p>"(3) the term 'Commission' means the Federal Energy Regulatory Commission;</p>
<p>"(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;</p>
<p>"(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;</p>
<p>"(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;</p>
<p>"(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;</p>
<p>"(8) the term 'holding company' means—</p>
<p>"(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</p>
<p>"(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;</p>
<p>"(9) the term 'holding company system' means a holding company, together with its
subsidiary companies;</p>
<p>"(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;</p>
<p>"(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;</p>
<p>"(12) the term 'person' means an individual or company;</p>
<p>"(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;</p>
<p>"(14) the term 'public utility company' means an electric utility company or a gas
utility company;</p>
<p>"(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
companies;</p>
<p>"(16) the term 'subsidiary company' of a holding company means—</p>
<p>"(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</p>
<p>"(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</p>
<p>"(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.</p>
<p>"SEC. 3. FEDERAL ACCESS TO BOOKS AND RECORDS</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"SEC. 4. STATE ACCESS TO BOOKS AND RECORDS</p>
<p>"(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—</p>
<p>"(1) have been identified in reasonable detail in a proceeding before the State
commission;</p>
<p>"(2) the State commission deems are relevant to costs incurred by such public
utility company; and</p>
<p>"(3) are necessary for the effective discharge of the responsibilities of the
State commission with respect to such proceeding.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"SEC. 5. EXEMPTION AUTHORITY</p>
<p>"(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 3any
person that is a holding company, solely with respect to one or more –</p>
<p>"(1) qualifying facilities under the Public Utility Regulatory Policies Act
of1978;</p>
<p>"(2) exempt wholesale generators; or</p>
<p>"(3) foreign utility companies.</p>
<p>"(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.</p>
<p>"SEC. 6. AFFILIATE TRANSACTIONS.</p>
<p>"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.</p>
<p>"SEC. 7. APPLICABILITY.</p>
<p>"No provision of this Act shall apply to, or be deemed to include—</p>
<p>"(1) the United States;</p>
<p>"(2) a State or any political subdivision of a State;</p>
<p>"(3) any foreign governmental authority not operating in the United States;</p>
<p>"(4) any agency, authority, or instrumentality of any entity referred to in
paragraph (1), (2), or (3); or</p>
<p>"(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.</p>
<p>"SEC 8. EFFECT ON OTHER REGULATIONS.</p>
<p>"Nothing in this Act precludes the Commission or a State commission from
exercising its jurisdiction under otherwise applicable law to protect utility customers.</p>
<p>"SEC. 9. ENFORCEMENT.</p>
<p>"The Commission shall have the same powers as set forth in sections 306through 317
of the Federal Power Act (16 U.S.C. 825d-825p) to enforce the provisions of this Act.</p>
<p>"SEC. 10. SAVINGS PROVISIONS.</p>
<p>"(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.</p>
<p>"(b) EFFECT ON OTHER COMMISSION AUTHORITY.--Nothing in this Act limits</p>
<p>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).</p>
<p>"SEC. 11. IMPLEMENTATION.</p>
<p>"Not later that 18 months after the date of enactment of the Comprehensive
Electricity Competition Act, the Commission shall—</p>
<p>"(1) promulgate such regulations as may be necessary or appropriate to implement
this Act (other than section 4); and</p>
<p>"(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.</p>
<p>"SEC. 12. TRANSFER OF RESOURCES.</p>
<p>"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
to the Commission.</p>
<p>"SEC. 13. AUTHORIZATION OF APPROPRIATIONS.</p>
<p>"There are authorized to be appropriate such funds as may be necessary to carry
out this Act.</p>
<p>"SEC. 14. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.</p>
<p>"Section 318 of the Federal Power Act (16 U.S.C. 825q) is repealed.".</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec402"><strong>SEC. 402. ELECTRIC COMPANY MERGERS.</strong></a></p>
<p>Section 203(a) of the FPA is amended by—</p>
<p>(1) striking "public utility" each time it appears and inserting in its place
"person or electric utility company";</p>
<p>(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.";</p>
<p>(3) striking "hearing" in the last sentence and inserting "oral or
written presentation of views"; and</p>
<p>(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 Commission for purposes of this section, except as the Commission otherwise may
provide.".</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec403"><strong>SEC. 403. REMEDIAL MEASURES FOR MARKET POWER.</strong></a></p>
<p>The FPA is amended by adding the following new section after section 216 as added by
section 203 of this Act:</p>
<p>"REMEDIAL MEASURES FOR MARKET POWER"</p>
<p>"SEC. 217. (a) Definitions.--As used in this section—</p>
<p>"(1) 'market power' means the ability of an electric utility profitably to
maintain prices above competitive levels for a significant period of time, and</p>
<p>"(2) 'notice of retail competition' has the meaning provided under section3(22) of
the Public Utility Regulatory Policies Act of 1978.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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. The
sections 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.</p>
<p>"(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.".</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="TITLE5"><strong>TITLE V--ELECTRIC RELIABILITY</strong></a></p>
<p><strong><a NAME="Sec501">SEC. 501. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT</a></strong></p>
<p>(a) The FPA is amended by adding the following new section after section 217as added by
section 403 of this Act:</p>
<p>"ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT</p>
<p>"Sec. 218. (a) Definition.--As used in this section:</p>
<p>"(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.</p>
<p>"(2) The term 'electric reliability organization' or 'organization' means the
organization registered by the Commission under subsection (d)(4).</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(b) Commission Authority.--(1) The Commission has jurisdiction over the electric
reliability organization, all system operators, and all users of the bulk-power system for
purposes of approving and enforcing compliance with standards in the United States.</p>
<p>"(2) The Commission may register an electric reliability organization and approve
and oversee the activities in the United States of that electric reliability organization.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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).</p>
<p>"(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.</p>
<p>"(4) The Commission shall register the organization if the Commission determines
that the organization –</p>
<p>"(A) has the ability to provide for an adequate level of reliability of the
bulk-power system;</p>
<p>"(B) permits voluntary membership to any users of the bulk-power system or
interested customer class or public interest group;</p>
<p>"(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 decision making 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;</p>
<p>"(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;</p>
<p>"(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 decision making and operations and the requirements for technical
competency in the development of standards;</p>
<p>"(F) establishes fair and impartial procedures for enforcement of standards,
including penalties; limitation of activity, function, or operations; or other appropriate
sanctions;</p>
<p>"(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</p>
<p>"(H) addresses other matters that the Commission considers necessary or
appropriate.</p>
<p>"(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.</p>
<p>"(e) Review and Changes or 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.</p>
<p>"(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.</p>
<p>"(3)(A) The electric reliability organization shall file with the Commission any
how 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).</p>
<p>"(B) Any standard or modification that does not become effective under this
paragraph shall be referred to the electric reliability organization for development of
anew or modified standard under the organization’s procedures as approved by the
Commission.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(4) A user of the bulk power system shall comply with any new or modified
standard that takes effect under paragraph (1) or (3).</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(2)(A) A proposed procedural change may take effect 90 days after filing with the
Commission if the change –</p>
<p>"(i) constitutes a statement of policy, practice, or interpretation with respect
to the meaning, administration, or enforcement of an existing procedure; or</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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).</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(3) (A) The Commission may direct a modification to or suspend an agreement
entered into under this subsection if it determines that—</p>
<p>"(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</p>
<p>"(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.</p>
<p>"(B) If the agreement is suspended, the electric reliability organization shall
assume the previously delegated responsibilities .</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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).</p>
<p>"(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.</p>
<p>"(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.</p>
<p>"(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 standard of the electric
reliability organization.</p>
<p>"(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.".</p>
<p>(b) Sections 316 and 316A of the FPA are amended by striking "or 214" each
place it appears and inserting "214, or 218".</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec502"><strong>SEC. 502. STATUTORY PRESUMPTION.</strong></a></p>
<p>(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.</p>
<p>(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:</p>
<p>(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</p>
<p>(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.</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="TITLE6"><strong>TITLE VI -- ENVIRONMENTAL PROTECTION</strong></a></p>
<p><strong><a NAME="Sec601">SEC. 601. NITROGEN OXIDES CAP AND TRADE PROGRAM.</a></strong></p>
<p>(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.</p>
<p>(b) Definitions.--For purposes of this section—</p>
<p>(1) the term "Administrator" means the Administrator of the Environmental
Protection Agency,</p>
<p>(2) the term "NOx" means oxides of nitrogen,</p>
<p>(3) the term "NOx allowance" means an authorization to emit a specified
amount of NOx into the atmosphere, and</p>
<p>(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 NOx
in excess of the number of NOx allowances held.</p>
<p>(c) Program Implementation.--(1) If the Administrator determines under
section110(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 12months 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.</p>
<p>(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 determining compliance with section 110(a)(2)(D) of
the Clean Air Act.</p>
<p>(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 under 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.</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="TITLE7"><strong>TITLE VII -- OTHER REGULATORY PROVISIONS</strong></a></p>
<p><strong><a Name="Sec701">Sec. 701. TREATMENT OF NUCLEAR DECOMMISSIONING COSTS IN
BANKRUPTCY.</a></strong></p>
<p>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):</p>
<p>"(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 104 b. 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.".</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec702"><strong>SEC. 702. STUDY OF IMPACTS OF COMPETITION IN ELECTRICITY
MARKETS BY THE ENERGY INFORMATION ADMINISTRATION.</strong></a></p>
<p>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:</p>
<p>"(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 –</p>
<p>"(A) the ownership and control of electric generation, transmission, distribution,
and related facilities;</p>
<p>"(B) electricity consumption and demand;</p>
<p>"(C) the transmission, distribution, and delivery of electric services;</p>
<p>"(D) the price of competitive electric services;</p>
<p>"(E) the costs, revenues, and rates of regulated electric services;</p>
<p>"(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;</p>
<p>"(G) electric energy efficiency programs and services and their impacts on energy
consumption;</p>
<p>"(H) the development and use of renewable electric energy resources; and</p>
<p>"(I) research, development and demonstration activities to improve the
nation’s electric system.</p>
<p>"(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.".</p>
<p><a href="#TOC"><strong><small>Return to Table of Contents</small></strong></a></p>
<p><a NAME="Sec703"><strong>SEC. 703. ANTITRUST SAVINGS CLAUSE.</strong></a></p>
<p>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.</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec704"><strong>SEC. 704. ELIMINATION OF ANTITRUST REVIEW BY THE NUCLEAR
REGULATORY COMMISSION.</strong></a></p>
<p>Section 105 of the Atomic Energy Act of 1954 (42 U.S.C. 2135) is amended by adding the
following after subsection c.:</p>
<p>"d. Subsection 105 c. does not apply to an application for a license to
constructor operate a utilization or production facility under sections 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 sections 103or 104 b. before the date of enactment of this subsection.</p>
<p><a href="#TOC"><small><strong>Return to Table of Contents</strong></small></a></p>
<p><a NAME="Sec705"><strong>SEC. 705. ENVIRONMENTAL LAWS SAVINGS CLAUSE.</strong></a></p>
<p>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.).</font></p>
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