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• Paragraph 9 (1 comments)

HR 889 IHCommentsClose CommentsPermalink

To amend title VI of the Public Utility Regulatory Policies Act of 1978 to establish a Federal energy efficiency resource standard for retail electricity and natural gas distributors, and for other purposes.CommentsClose CommentsPermalink

February 4, 2009CommentsClose CommentsPermalink

Mr. MARKEY of Massachusetts introduced the following bill; which was referred to the Committee on Energy and CommerceCommentsClose CommentsPermalink

To amend title VI of the Public Utility Regulatory Policies Act of 1978 to establish a Federal energy efficiency resource standard for retail electricity and natural gas distributors, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Save American Energy Act’.CommentsClose CommentsPermalink

SEC. 2. ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL ELECTRICITY AND NATURAL GAS DISTRIBUTORS.

(a) In General- Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by adding at the end the following:CommentsClose CommentsPermalink

‘SEC. 610. FEDERAL ENERGY EFFICIENCY RESOURCE STANDARD FOR RETAIL ELECTRICITY AND NATURAL GAS DISTRIBUTORS.

‘(a) Statement of Federal Policy- The Federal energy efficiency resource standard established by this section sets nationwide minimum levels of electricity and natural gas savings to be achieved through utility efficiency programs, building energy codes, appliance standards, and related efficiency measures. In light of the cost-effective energy efficiency opportunities that exist across the country in every sector of the economy, retail electricity distributors, retail natural gas distributors, and States should additionally consider energy efficiency as a resource in utility planning and procurement activities and should seek to achieve all energy efficiency that is available at lower cost than energy supply options.CommentsClose CommentsPermalink





‘(b) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) AFFILIATE- The term ‘affiliate’ when used in relation to a person, means another person which owns or controls, is owned or controlled by, or is under common ownership control with, such person, as determined under regulations promulgated by the Secretary.CommentsClose CommentsPermalink





‘(2) ASHRAE, ANSI, AND IESNA- The terms ‘ASHRAE’, ‘ANSI’, and ‘IESNA’ mean the American Society of Heating, Refrigerating and Air Conditioning Engineers, the American National Standards Institute, and the Illuminating Engineering Society of North America, respectively.CommentsClose CommentsPermalink





‘(3) BASE QUANTITY- The term ‘base quantity’, with respect to a retail electricity distributor or retail natural gas distributor, means, for each year for which a performance standard is established under subsection (d), the average annual quantity of electricity or natural gas delivered by the retail electricity distributor or retail natural gas distributor to retail customers during the 2 calendar years immediately preceding such year. In determining the base quantity of a retail natural gas distributor, natural gas delivered for purposes of electricity generation shall be excluded.CommentsClose CommentsPermalink





‘(4) CHP SAVINGS- The term ‘CHP savings’ means--CommentsClose CommentsPermalink





‘(A) CHP system savings from a combined heat and power system that commences operation after the date of enactment of this section; andCommentsClose CommentsPermalink





‘(B) the increase in CHP system savings from upgrading or replacing, after the date of enactment of this section, a combined heat and power system that commenced operation on or before the date of enactment of this section.CommentsClose CommentsPermalink





‘(5) CHP SYSTEM SAVINGS- The term ‘CHP system savings’ means the electric output, and the electricity saved due to the mechanical output, of a combined heat and power system, adjusted to reflect any increase in fuel consumption by that system as compared to the fuel that would have been required to produce an equivalent useful thermal energy output in a separate thermal-only system, as determined in accordance with regulations promulgated by the Secretary.CommentsClose CommentsPermalink





‘(6) CODES AND STANDARDS SAVINGS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘codes and standards savings’ means a reduction in end-use electricity or natural gas consumption in a retail electricity distributor or a retail natural gas distributor’s service territory as a result of the adoption and implementation, after the date of enactment of this section, of new or revised appliance and equipment efficiency standards or building energy codes.CommentsClose CommentsPermalink





‘(B) BASELINES- In calculating codes and standards savings--CommentsClose CommentsPermalink





‘(i) the baseline for calculating savings from building codes shall be the 2006 International Energy Conservation Code for residential buildings and the ASHRAE/ANSI/IESNA Standard 90.1-2004 for commercial buildings, or the relevant State building code in effect on date of enactment of this section, whichever is more stringent; andCommentsClose CommentsPermalink





‘(ii) the baseline for calculating savings from appliance standards shall be the average efficiency of new appliances in the relevant category or categories prior to adoption and implementation of the new standard.CommentsClose CommentsPermalink





‘(7) COMBINED HEAT AND POWER SYSTEM- The term ‘combined heat and power system’ means a system that uses the same energy source both for the generation of electrical or mechanical power and the production of steam or another form of useful thermal energy, provided that--CommentsClose CommentsPermalink





‘(A) the system meets such requirements relating to efficiency and other operating characteristics as the Secretary may promulgate by regulation; andCommentsClose CommentsPermalink





‘(B) the net wholesale sales of electricity by the facility will not exceed 50 percent of total annual electric generation by the facility.CommentsClose CommentsPermalink





‘(8) COST-EFFECTIVE- The term ‘cost-effective’, with respect to an energy efficiency measure, means that the measure achieves a net present value of economic benefits over the life of the measure, both directly to the energy consumer and to the economy, that is greater than the net present value of the cost of the measure over the life of the measure, both directly to the energy consumer and to the economy.CommentsClose CommentsPermalink





‘(9) CUSTOMER FACILITY SAVINGS- The term ‘customer facility savings’ means a reduction in end-use electricity or natural gas consumption (including recycled energy savings) at a facility of an end-use consumer of electricity or natural gas served by a retail electricity distributor or natural gas distributor, as compared to--CommentsClose CommentsPermalink





‘(A) in the case of a new facility, consumption at a reference facility of average efficiency;CommentsClose CommentsPermalink





‘(B) in the case of an existing facility, consumption at such facility during a base period (which shall not be less than 1 year); orCommentsClose CommentsPermalink





‘(C) in the case of new equipment, regardless of whether the new equipment replaces existing equipment at the end of the useful life of the existing equipment, consumption by new equipment of average efficiency of the same equipment type, provided that customer savings under this subparagraph shall not be counted towards customer savings under subparagraph (A) or (B).CommentsClose CommentsPermalink





‘(10) ELECTRICITY SAVINGS- The term ‘electricity savings’ means reductions in electricity consumption achieved through measures implemented after the date of enactment of this section, as determined in accordance with regulations promulgated by the Secretary, limited to--CommentsClose CommentsPermalink





‘(A) customer facility savings of electricity, adjusted to reflect any associated increase in fuel consumption at the facility;CommentsClose CommentsPermalink





‘(B) reductions in distribution system losses of electricity achieved by a retail electricity distributor, as compared to losses attributable to new or replacement distribution system equipment of average efficiency (as defined in regulations to be promulgated by the Secretary);CommentsClose CommentsPermalink





‘(C) CHP savings; andCommentsClose CommentsPermalink





‘(D) codes and standards savings of electricity.CommentsClose CommentsPermalink





‘(11) NATURAL GAS SAVINGS- The term ‘natural gas savings’ means reductions in natural gas consumption from measures implemented after the date of enactment of this section, as determined in accordance with regulations promulgated by the Secretary, limited to--CommentsClose CommentsPermalink





‘(A) customer facility savings of natural gas, adjusted to reflect any associated increase in electricity consumption or consumption of other fuels at the facility;CommentsClose CommentsPermalink





‘(B) reductions in leakage, operational losses, and consumption of natural gas fuel to operate a gas distribution system, achieved by a retail natural gas distributor, as compared to similar leakage, losses, and consumption during a base period (which shall not be less than 1 year); andCommentsClose CommentsPermalink





‘(C) codes and standards savings of natural gas.CommentsClose CommentsPermalink





‘(12) POWER POOL- The term ‘power pool’ means an association of 2 or more interconnected electric systems that is recognized by the Commission as having an agreement to coordinate operations and planning for improved reliability and efficiencies, including a Regional Transmission Organization or an Independent System Operator.CommentsClose CommentsPermalink





‘(13) RECYCLED ENERGY SAVINGS- The term ‘recycled energy savings’ means a reduction in electricity or natural gas consumption that results from a modification of an industrial or commercial system that commenced operation before the date of enactment of this section, in order to recapture electrical, mechanical, or thermal energy that would otherwise be wasted, as determined in accordance with regulations promulgated by the Secretary.CommentsClose CommentsPermalink





‘(14) REPORTING PERIOD- The term ‘reporting period’ means--CommentsClose CommentsPermalink





‘(A) calendar year 2012; andCommentsClose CommentsPermalink





‘(B) each successive 2-calendar-year period thereafter.CommentsClose CommentsPermalink





‘(15) RETAIL ELECTRICITY DISTRIBUTOR-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘retail electricity distributor’ means, for any given calendar year, an electric utility that owns or operates an electric distribution facility and, using the facility, delivered not less than 1,500,000 megawatt-hours of electric energy to electric consumers for purposes other than resale during the most recent 2-calendar-year period for which data are available.CommentsClose CommentsPermalink





‘(B) INCLUSIONS AND LIMITATIONS- For purposes of determining whether an electric utility qualifies as a retail electricity distributor under subparagraph (A)--CommentsClose CommentsPermalink





‘(i) deliveries by any affiliate of an electric utility to electric consumers for purposes other than resale shall be considered to be deliveries by such electric utility; andCommentsClose CommentsPermalink





‘(ii) deliveries by any electric utility to a lessee, tenant, or affiliate of such electric utility shall not be treated as deliveries to electric consumers.CommentsClose CommentsPermalink





‘(16) RETAIL NATURAL GAS DISTRIBUTOR-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘retail natural gas distributor’ means, for any given calendar year, a local distribution company, as that term is defined in section 2(17) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3301(17)), that delivered to natural gas consumers more than 5,000,000,000 cubic feet of natural gas during the most recent 2-calendar-year period for which data are available.CommentsClose CommentsPermalink





‘(B) INCLUSIONS AND LIMITATIONS- For purposes of determining whether a person qualifies as a retail natural gas distributor under subparagraph (A)--CommentsClose CommentsPermalink





‘(i) deliveries of natural gas by any affiliate of a local distribution company to consumers for purposes other than resale shall be considered to be deliveries by such local distribution company; andCommentsClose CommentsPermalink





‘(ii) deliveries of natural gas to a lessee, tenant, or affiliate of a local distribution company shall not be treated as deliveries to natural gas consumers.CommentsClose CommentsPermalink





‘(17) THIRD-PARTY EFFICIENCY PROVIDER- The term ‘third-party efficiency provider’ means any retailer, building owner, energy service company, financial institution or other commercial, industrial or non-profit entity that is capable of providing electricity savings or natural gas savings in accordance with the requirements of subsections (e) and (f).CommentsClose CommentsPermalink





‘(c) Establishment of Program-CommentsClose CommentsPermalink





‘(1) REGULATIONS- Not later than 1 year after the date of enactment of this section, the Secretary shall, by regulation, establish a program to implement and enforce the requirements of this section, including--CommentsClose CommentsPermalink





‘(A) measurement and verification procedures and standards under subsection (f);CommentsClose CommentsPermalink





‘(B) requirements by which retail electricity distributors and retail natural gas distributors shall demonstrate, document, and report their compliance with the performance standards specified in subsection (d) and estimate the impact of the standards on current and future electricity and natural gas use in such distributors’ service territories; andCommentsClose CommentsPermalink





‘(C) requirements governing applications for, and implementation of, delegated State administration under subsection (h).CommentsClose CommentsPermalink





‘(2) COORDINATION WITH STATE PROGRAMS- In establishing and implementing this program, the Secretary shall, to the extent practicable, preserve the integrity, and incorporate best practices, of existing State energy efficiency programs.CommentsClose CommentsPermalink





‘(d) Performance Standards-CommentsClose CommentsPermalink





‘(1) COMPLIANCE OBLIGATION- Not later than April 1 of the calendar year immediately following each reporting period--CommentsClose CommentsPermalink





‘(A) each retail electricity distributor shall submit to the Secretary a report, in accordance with regulations issued by the Secretary, demonstrating that it has achieved cumulative electricity savings (adjusted to account for any attrition of savings measures implemented in prior years) in each calendar year that are equal to the applicable percentage, established under paragraph (2), (3), or (4) of this subsection, of the base quantity of such retail electricity distributor; andCommentsClose CommentsPermalink





‘(B) each retail natural gas distributor shall submit to the Secretary a report, in accordance with regulations issued by the Secretary, demonstrating that it has achieved cumulative natural gas savings (adjusted to account for any attrition of savings measures implemented in prior years) in each calendar year that are equal to the applicable percentage, established under paragraph (2), (3), or (4) of this subsection, of the base quantity of such retail natural gas distributor.CommentsClose CommentsPermalink





‘(2) STANDARDS FOR 2012 THROUGH 2020- For calendar years 2012 through 2020, the applicable percentages are as follows:CommentsClose CommentsPermalink

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‘Calendar Year Cumulative Electricity Savings Percentage Cumulative Natural Gas Savings Percentage CommentsClose CommentsPermalink

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          2012                                      1.00                                      0.75 CommentsClose CommentsPermalink

          2013                                      2.00                                      1.50 CommentsClose CommentsPermalink

          2014                                      3.25                                      2.50 CommentsClose CommentsPermalink

          2015                                      4.50                                      3.50 CommentsClose CommentsPermalink

          2016                                      6.00                                      4.75 CommentsClose CommentsPermalink

          2017                                      7.50                                      6.00 CommentsClose CommentsPermalink

          2018                                     10.00                                      7.25 CommentsClose CommentsPermalink

          2019                                     12.50                                      8.50 CommentsClose CommentsPermalink

          2020                                     15.00                                     10.00 CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

‘(3) SUBSEQUENT YEARS-CommentsClose CommentsPermalink





‘(A) CALENDAR YEARS 2021 THROUGH 2030- Not later than December 31, 2018, the Secretary shall promulgate regulations establishing performance standards (expressed as applicable percentages of base quantity for both cumulative electricity savings and cumulative natural gas savings) for calendar years 2021 through 2030.CommentsClose CommentsPermalink





‘(B) SUBSEQUENT EXTENSIONS- Except as provided in subparagraph (A), not later than December 31 of the penultimate reporting period for which performance standards have been set under this paragraph, the Secretary shall promulgate regulations establishing performance standards (expressed as applicable percentages of base quantity for both cumulative electricity savings and cumulative natural gas savings) for the 10-calendar-year period following the last calendar year for which performance standards previously were set.CommentsClose CommentsPermalink





‘(C) REQUIREMENTS- The Secretary shall set standards under this paragraph at levels reflecting the maximum achievable level of cost-effective energy efficiency potential, taking into account cost-effective energy savings achieved by leading retail electricity distributors and retail natural gas distributors, opportunities for new codes and standard savings, technology improvements, and other indicators of cost-effective energy efficiency potential. In no case shall the applicable percentages for any calendar year be lower than those for calendar year 2020 (including any increase in the standard for calendar year 2020 pursuant to paragraph (4)).CommentsClose CommentsPermalink





‘(4) MIDCOURSE REVIEW AND ADJUSTMENT OF STANDARDS- Not later than December 31, 2014, and at 10-year intervals thereafter, the Secretary shall review the most recent standards established under paragraph (2) or (3) and shall, by regulation, increase the standards if the Secretary determines that additional cost-effective energy efficiency potential is achievable, taking into account the factors identified in paragraph (3)(C). If the Secretary revises standards pursuant to this paragraph, the regulations shall provide adequate lead time to ensure that compliance with the increased standards is feasible.CommentsClose CommentsPermalink





‘(5) DELAY OF SUBMISSION FOR FIRST REPORTING PERIOD- Notwithstanding paragraphs (1) and (2), for the 2012 reporting period, the Secretary may accept a request from a retail electricity distributor or a retail natural gas distributor to delay the required submission of documentation of some or all of the required savings for up to 2 years. The request for delay shall include a plan for coming into full compliance by the end of the 2013-2014 reporting period.CommentsClose CommentsPermalink





‘(e) Transfers of Electricity or Natural Gas Savings-CommentsClose CommentsPermalink





‘(1) BILATERAL CONTRACTS FOR SAVINGS TRANSFERS- Subject to the limitations of this paragraph, a retail electricity distributor or retail natural gas distributor may use electricity savings or natural gas savings purchased, pursuant to a bilateral contract, from another retail electricity distributor or retail natural gas distributor, a State, or a third-party efficiency provider to meet the applicable performance standard under subsection (d).CommentsClose CommentsPermalink





‘(2) REQUIREMENTS- Electricity or natural gas savings purchased and used for compliance pursuant to this paragraph shall be--CommentsClose CommentsPermalink





‘(A) measured and verified in accordance with the procedures specified under subsection (f);CommentsClose CommentsPermalink





‘(B) reported in accordance with subsection (d); andCommentsClose CommentsPermalink





‘(C) achieved within the same State as is served by the retail electricity distributor or retail natural gas distributor.CommentsClose CommentsPermalink





‘(3) EXCEPTION- Notwithstanding paragraph (2)(C), a State regulatory authority may authorize a retail electricity distributor or a retail natural gas distributor regulated by such State regulatory authority to purchase savings achieved in a different State, provided that--CommentsClose CommentsPermalink





‘(A) such savings are achieved within the same power pool; andCommentsClose CommentsPermalink





‘(B) the State regulatory authority that regulates the purchaser oversees the measurement and verification of the savings pursuant to the procedures and standards applicable in the purchaser’s State.CommentsClose CommentsPermalink





‘(4) REGULATORY APPROVAL- Nothing in this paragraph shall limit or affect the authority of a State regulatory authority to require a retail electricity distributor or retail natural gas distributor that is regulated by such State regulatory authority to obtain such State regulatory authority’s authorization or approval of a contract for transfer of savings under this paragraph.CommentsClose CommentsPermalink





‘(5) LIMITATIONS- In the interest of optimizing achievement of cost-effective efficiency potential, the Secretary may prescribe such limitations as the Secretary determines appropriate with respect to the proportion of a retail electricity or natural gas distributor’s compliance obligation, under the applicable performance standards under subsection (d), that may be met using electricity or natural gas savings that are purchased under this paragraph.CommentsClose CommentsPermalink





‘(f) Measurement and Verification of Savings- The regulations promulgated pursuant to subsection (b) shall include--CommentsClose CommentsPermalink





‘(1) procedures and standards for defining and measuring electricity savings and natural gas savings that can be counted towards the performance standards set forth in subsection (d), which shall--CommentsClose CommentsPermalink





‘(A) specify the types of energy efficiency and energy conservation measures that can be counted;CommentsClose CommentsPermalink





‘(B) require that energy consumption estimates for customer facilities or portions of facilities in the applicable base and current years be adjusted, as appropriate, to account for changes in weather, level of production, and building area;CommentsClose CommentsPermalink





‘(C) account for the useful life of measures;CommentsClose CommentsPermalink





‘(D) include deemed savings values for specific, commonly-used measures;CommentsClose CommentsPermalink





‘(E) allow for savings from a program to be estimated based on extrapolation from a representative sample of participating customers;CommentsClose CommentsPermalink





‘(F) include procedures for counting CHP savings and recycled energy savings;CommentsClose CommentsPermalink





‘(G) establish methods for calculating codes and standards energy savings, including the use of verified compliance rates;CommentsClose CommentsPermalink





‘(H) count only measures and savings that are additional to business-as-usual practices;CommentsClose CommentsPermalink





‘(I) except in the case of codes and standards savings, ensure that the retail electricity distributor or retail natural gas distributor claiming the savings played a significant role in achieving the savings (including through the activities of a designated agent of the distributor or through the purchase of transferred savings);CommentsClose CommentsPermalink





‘(J) avoid double-counting of savings used for compliance with this section, including transferred savings; andCommentsClose CommentsPermalink





‘(K) include savings from programs administered by the retail electric or natural gas distributor that are funded by State, Federal, or other sources; andCommentsClose CommentsPermalink





‘(2) procedures and standards for third-party verification of reported electricity savings or natural gas savings.CommentsClose CommentsPermalink





‘(g) Enforcement and Judicial Review-CommentsClose CommentsPermalink





‘(1) REVIEW OF RETAIL DISTRIBUTOR REPORTS- The Secretary shall review each report submitted to the Secretary by a retail electricity distributor or retail natural gas distributor under subsection (d) to verify that the applicable performance standards under subsection (d) have been met. In determining compliance with the applicable performance standards, the Secretary shall exclude reported electricity savings or natural gas savings that are not adequately demonstrated and documented, in accordance with the regulations issued under subsections (d), (e), and (f).CommentsClose CommentsPermalink





‘(2) PENALTY FOR FAILURE TO DOCUMENT ADEQUATE SAVINGS- If a retail electricity distributor or a retail natural gas distributor fails to demonstrate compliance with an applicable performance standard under subsection (d), or to pay to the State an applicable alternative compliance payment under subsection (h)(4), the Secretary shall assess against the retail electricity distributor or retail natural gas distributor a civil penalty for each such failure in an amount equal to, as adjusted for inflation in accordance with such regulations as the Secretary may promulgate--CommentsClose CommentsPermalink





‘(A) $100 per megawatt-hour of electricity savings or alternative compliance payment that the retail electricity distributor failed to achieve or make, respectively; orCommentsClose CommentsPermalink





‘(B) $10 per million Btu of natural gas savings or alternative compliance payment that the retail natural gas distributor failed to achieve or make, respectively.CommentsClose CommentsPermalink





‘(3) OFFSETTING STATE PENALTIES- The Secretary shall reduce the amount of any penalty under paragraph (2) by the amount paid by the relevant retail electricity distributor or retail natural gas distributor to a State for failure to comply with the requirements of a State energy efficiency resource standard during the same compliance period, provided that the State standard is comparable in type to the Federal standard established under this section and is more stringent than the applicable performance standards under subsection (d).CommentsClose CommentsPermalink





‘(4) ENFORCEMENT PROCEDURES- The Secretary shall assess a civil penalty, as provided under paragraph (1), in accordance with the procedures described in section 333(d) of the Energy Policy and Conservation Act of 1954 (42 U.S.C. 6303).CommentsClose CommentsPermalink





‘(5) JUDICIAL REVIEW- Any person who will be adversely affected by a final action taken by the Secretary under this section, other than the assessment of a civil penalty, may use the procedures for review described in section 336(b) of the Energy Policy and Conservation Act (42 U.S.C. 6306). For purposes of this paragraph, references to a rule in section 336(b) of the Energy Policy and Conservation Act shall be deemed to refer also to all other final actions of the Secretary under this section other than the assessment of a civil penalty.CommentsClose CommentsPermalink





‘(h) State Administration-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Upon receipt of an application from the Governor of a State (including, for purposes of this subsection, the Mayor of the District of Columbia), the Secretary may delegate to the State the administration of this section within the State’s territory if the Secretary determines that the State will implement an energy efficiency program that meets or exceeds the requirements of this section, including--CommentsClose CommentsPermalink





‘(A) achieving electricity savings and natural gas savings at least as great as those required under the applicable performance standards established under subsection (d);CommentsClose CommentsPermalink





‘(B) reviewing reports and verifying electricity savings and natural gas savings achieved in the State (including savings transferred from outside the State); andCommentsClose CommentsPermalink





‘(C) collecting any alternative compliance payments under paragraph (4) of this subsection and using such payments to implement cost-effective efficiency programs.CommentsClose CommentsPermalink





‘(2) SECRETARIAL DETERMINATION- The Secretary shall make a substantive determination approving or disapproving a State application, after public notice and comment, within 180 days of receipt of a complete application.CommentsClose CommentsPermalink





‘(3) ALTERNATIVE MEASUREMENT AND VERIFICATION PROCEDURES AND STANDARDS- As part of an application submitted under paragraph (1), a State may request to use alternative measurement and verification procedures and standards to those specified in subsection (f), provided the State demonstrates that such alternative procedures and standards provide a level of accuracy of measurement and verification at least equivalent to the Federal procedures and standards promulgated under subsection (f).CommentsClose CommentsPermalink





‘(4) ALTERNATIVE COMPLIANCE PAYMENTS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- As part of an application submitted under paragraph (1), a State may permit retail electricity distributors or retail natural gas distributors to pay to the State, by not later than April 1 of the calendar year immediately following the relevant reporting period, an alternative compliance payment in an amount equal to, as adjusted for inflation in accordance with such regulations as the Secretary may promulgate, not less than--CommentsClose CommentsPermalink





‘(i) $50 per megawatt-hour of electricity savings needed to make up any deficit with regard to a compliance obligation under the applicable performance standard; orCommentsClose CommentsPermalink





‘(ii) $5 per million Btu of natural gas savings needed to make up any deficit with regard to a compliance obligation under the applicable performance standard.CommentsClose CommentsPermalink





‘(B) USE OF PAYMENTS- Alternative compliance payments collected by a State pursuant to paragraph (4) shall be used by the State to administer its delegated authority under this section and to implement cost-effective energy efficiency programs. Such programs shall--CommentsClose CommentsPermalink





‘(i) to the extent feasible, achieve electricity savings and natural gas savings in the State sufficient to make up the deficit associated with the alternative compliance payments; andCommentsClose CommentsPermalink





‘(ii) be measured and verified in accordance with the applicable procedures and standards under subsection (f) or paragraph (3) of this subsection, as the case may be.CommentsClose CommentsPermalink





‘(5) REVIEW OF STATE IMPLEMENTATION-CommentsClose CommentsPermalink





‘(A) PERIODIC REVIEW- Every 2 years, the Secretary shall review State implementation of this section for conformance with the requirements of this section in approximately one-half of the States that have received approval under this subsection to administer the program, such that each State shall be reviewed at least every 4 years. To facilitate such review, the Secretary may require the State to submit a report demonstrating its conformance with the requirements of this section, including--CommentsClose CommentsPermalink





‘(i) reports submitted by retail electricity distributors and retail natural gas distributors to the State demonstrating compliance with applicable performance standards;CommentsClose CommentsPermalink





‘(ii) the impact of such standards on projected electricity and natural gas demand within the State;CommentsClose CommentsPermalink





‘(iii) an accounting of the State’s use of alternative compliance payments and the resulting electricity savings and natural gas savings achieved; andCommentsClose CommentsPermalink





‘(iv) such other information as the Secretary determines appropriate.CommentsClose CommentsPermalink





‘(B) REVIEW UPON PETITION- Notwithstanding subparagraph (A), upon receipt of a public petition containing credible allegation of substantial deficiencies, the Secretary shall promptly review a State’s implementation of delegated authority under this section.CommentsClose CommentsPermalink





‘(C) DEFICIENCIES- If deficiencies are found in a review under this paragraph, the Secretary shall notify the State and direct it to correct such deficiencies and to report to the Secretary on progress within 180 days of the receipt of review results. If the deficiencies are substantial, the Secretary shall--CommentsClose CommentsPermalink





‘(i) disallow such reported savings as the Secretary determines are not credible due to deficiencies;CommentsClose CommentsPermalink





‘(ii) re-review the State not later than 2 years after the original review; andCommentsClose CommentsPermalink





‘(iii) if substantial deficiencies remain uncorrected after the review provided for under clause (ii), revoke the authority of such State to administer the program established under this section.CommentsClose CommentsPermalink





‘(6) CALLS FOR REVISION OF STATE APPLICATIONS- As a condition of maintaining its delegated authority to administer this section, the Secretary may require a State to submit a revised application under paragraph (1) if the Secretary has--CommentsClose CommentsPermalink





‘(A) promulgated new or revised performance standards under subsection (d);CommentsClose CommentsPermalink





‘(B) promulgated new or substantially revised measurement and verification procedures and standards under subsection (f); orCommentsClose CommentsPermalink





‘(C) otherwise substantially revised the program established under this section.CommentsClose CommentsPermalink





‘(i) Information and Reports- In accordance with section 13 of the Federal Energy Administration Act of 1974 (15 U.S.C. 772), the Secretary may require any retail electricity distributor, any retail natural gas distributor, any third-party efficiency provider, or such other entities as the Secretary deems appropriate, to provide any information the Secretary determines appropriate to carry out this section.CommentsClose CommentsPermalink





‘(j) State Law- Nothing in this section shall diminish or qualify any authority of a State or political subdivision of a State to adopt or enforce any law or regulation respecting electricity savings or natural gas savings, including any law or regulation establishing energy efficiency requirements more stringent than those under this section, provided that no such law or regulation may relieve any person of any requirement otherwise applicable under this section.CommentsClose CommentsPermalink





‘(k) Program Review-CommentsClose CommentsPermalink





‘(1) NATIONAL ACADEMY OF SCIENCES REVIEW- The Secretary shall enter into a contract with the National Academy of Sciences under which the Academy shall, not later than July 1, 2017, and every 10 years thereafter, submit to the Secretary and to Congress a comprehensive evaluation of all aspects of the program established under this section, including--CommentsClose CommentsPermalink





‘(A) an evaluation of the effectiveness of the program, including its specific design elements, in increasing the efficiency of retail natural gas and electricity distribution and consumption;CommentsClose CommentsPermalink





‘(B) the opportunities for additional technologies and sources of efficiency that have emerged since enactment of this section;CommentsClose CommentsPermalink





‘(C) the program’s impact on the reliability of electricity and natural gas supply;CommentsClose CommentsPermalink





‘(D) the net benefits or costs of the program to the national and State economies, including effects on electricity and natural gas demand and prices, economic development benefits of investment, environmental benefits, and avoided costs related to environmental and congestion mitigation investments that otherwise would have been required;CommentsClose CommentsPermalink





‘(E) an assessment of the benefits and costs of increasing the performance standards established under subsection (d) of this section;CommentsClose CommentsPermalink





‘(F) the feasibility, advantages, and disadvantages of alternative models for demonstrating compliance with a Federal energy efficiency resource standard, including establishing a national trading system for energy efficiency credits or demonstrating compliance through actual reductions in delivery or sales of electricity and natural gas, rather than on program savings; andCommentsClose CommentsPermalink





‘(G) recommendations regarding potential changes to this section, to regulations and procedures for implementing this section, or to related public policies.CommentsClose CommentsPermalink





‘(2) RECOMMENDATIONS TO CONGRESS- Not later than January 1, 2018, and every 10 years thereafter, the Secretary shall transmit to the Committee on Energy and Commerce of the United States House of Representatives and the Committee on Energy and Natural Resources of the United States Senate a report making recommendations for modifications and improvements to the program established under this section and any related programs, including an explanation of the inconsistencies, if any, between the Secretary’s recommendations and those included in the National Academy of Sciences evaluation under paragraph (1).’.CommentsClose CommentsPermalink





(b) Table of Contents Amendment- The table of contents of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by adding at the end of the items relating to title VI the following:CommentsClose CommentsPermalink





‘Sec. 610. Federal energy efficiency resource standard.’.CommentsClose CommentsPermalink