U.S. Congress - Text of S.1462 as Placed on Calendar Senate American Clean Energy Leadership Act of 2009
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Donate NowS.1462 - American Clean Energy Leadership Act of 2009
An original bill to promote clean energy technology development, enhanced energy efficiency, improved energy security, and energy innovation and workforce development, and for other purposes.
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S 1462 PCSCommentsClose CommentsPermalink
Calendar No. 110CommentsClose CommentsPermalink
111th CONGRESSCommentsClose CommentsPermalink
1st SessionCommentsClose CommentsPermalink
S. 1462CommentsClose CommentsPermalink
[Report No. 111-48]CommentsClose CommentsPermalink
To promote clean energy technology development, enhanced energy efficiency, improved energy security, and energy innovation and workforce development, and for other purposes.CommentsClose CommentsPermalink
IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink
July 16, 2009CommentsClose CommentsPermalink
July 16, 2009CommentsClose CommentsPermalink
Mr. BINGAMAN, from the Committee on Energy and Natural Resources, reported the following original bill; which was read twice and placed on the calendarCommentsClose CommentsPermalink
A BILLCommentsClose CommentsPermalink
To promote clean energy technology development, enhanced energy efficiency, improved energy security, and energy innovation and workforce development, 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; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the ‘American Clean Energy Leadership Act of 2009’.CommentsClose CommentsPermalink
(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink
Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink
Sec. 2. Definition of Secretary.CommentsClose CommentsPermalink
TITLE I--CLEAN ENERGY TECHNOLOGY DEPLOYMENT
Subtitle A--Clean Energy Financing
Sec. 101. Purpose.CommentsClose CommentsPermalink
Sec. 102. Definitions.CommentsClose CommentsPermalink
Sec. 103. Improvements to existing programs.CommentsClose CommentsPermalink
Sec. 104. Energy technology deployment goals.CommentsClose CommentsPermalink
Sec. 105. Clean Energy Deployment Administration.CommentsClose CommentsPermalink
Sec. 106. Administration functions.CommentsClose CommentsPermalink
Sec. 107. Federal Credit Authority.CommentsClose CommentsPermalink
Sec. 108. General provisions.CommentsClose CommentsPermalink
Subtitle B--Improved Transmission Siting
Sec. 121. Siting of interstate electric transmission facilities.CommentsClose CommentsPermalink
Subtitle C--Federal Renewable Electricity Standard
Sec. 131. Sense of Congress on renewable energy and energy efficiency.CommentsClose CommentsPermalink
Sec. 132. Federal renewable electricity standard.CommentsClose CommentsPermalink
Sec. 133. Federal purchase requirement amendments.CommentsClose CommentsPermalink
Subtitle D--Energy and Water Integration
Sec. 141. Energy water nexus study.CommentsClose CommentsPermalink
Sec. 142. Power plant water and energy efficiency.CommentsClose CommentsPermalink
Sec. 143. Reclamation water conservation and energy savings study.CommentsClose CommentsPermalink
Sec. 144. Brackish groundwater national desalination research facility.CommentsClose CommentsPermalink
Sec. 145. Enhanced information on water-related energy consumption.CommentsClose CommentsPermalink
Sec. 146. Energy-Water Research and Development Roadmap.CommentsClose CommentsPermalink
Sec. 147. Energy-water clean technology grant program.CommentsClose CommentsPermalink
Sec. 148. Rural water utilities energy and water efficiency program.CommentsClose CommentsPermalink
Sec. 149. Comprehensive water use and energy savings study.CommentsClose CommentsPermalink
Subtitle E--Vehicle Technology Deployment
Sec. 151. Transportation roadmap study.CommentsClose CommentsPermalink
Sec. 152. Vehicle technology and recharging infrastructure.CommentsClose CommentsPermalink
Sec. 153. Electric drive transportation standardization.CommentsClose CommentsPermalink
Sec. 154. Pilot program for plug-in electric drive vehicles for Federal fleet.CommentsClose CommentsPermalink
Sec. 155. Study of end-of-useful life options for motor vehicle batteries.CommentsClose CommentsPermalink
TITLE II--ENHANCED ENERGY EFFICIENCY
Subtitle A--Manufacturing Energy Efficiency
Sec. 201. State partnership industrial energy efficiency revolving loan program.CommentsClose CommentsPermalink
Sec. 202. Coordination of research and development of energy efficient technologies for industry.CommentsClose CommentsPermalink
Sec. 203. Energy efficient technologies assessment.CommentsClose CommentsPermalink
Sec. 204. Future of Industry program.CommentsClose CommentsPermalink
Sec. 205. Sustainable manufacturing initiative.CommentsClose CommentsPermalink
Sec. 206. Innovation in industry grants.CommentsClose CommentsPermalink
Sec. 207. Study of advanced energy technology manufacturing capabilities in the United States.CommentsClose CommentsPermalink
Sec. 208. Industrial Technologies steering committee.CommentsClose CommentsPermalink
Sec. 209. Authorization of appropriations.CommentsClose CommentsPermalink
Subtitle B--Improved Efficiency in Appliances and Equipment
Sec. 221. Test procedure petition process.CommentsClose CommentsPermalink
Sec. 222. Energy Star program.CommentsClose CommentsPermalink
Sec. 223. Petition for amended standards.CommentsClose CommentsPermalink
Sec. 224. Portable light fixtures.CommentsClose CommentsPermalink
Sec. 225. GU-24 base lamps.CommentsClose CommentsPermalink
Sec. 226. Standards for certain incandescent reflector lamps and reflector lamps.CommentsClose CommentsPermalink
Sec. 227. Standards for commercial furnaces.CommentsClose CommentsPermalink
Sec. 228. Motor efficiency rebate program.CommentsClose CommentsPermalink
Sec. 229. Study of compliance with energy standards for appliances.CommentsClose CommentsPermalink
Sec. 230. Study of direct current electricity supply in certain buildings.CommentsClose CommentsPermalink
Sec. 231. Motor market assessment and commercial awareness program.CommentsClose CommentsPermalink
Sec. 232. Study regarding Energy Superstar concept.CommentsClose CommentsPermalink
Sec. 233. Technical amendment.CommentsClose CommentsPermalink
Subtitle C--Building Efficiency
PART I--Building Codes
Sec. 241. Greater energy efficiency in building codes.CommentsClose CommentsPermalink
Sec. 242. Multifamily and Manufactured Housing Energy Efficiency Grant Program.CommentsClose CommentsPermalink
Sec. 243. Building training and assessment centers.CommentsClose CommentsPermalink
PART II--Weatherization Assistance for Low-income Persons
Sec. 251. Weatherization assistance for low-income persons.CommentsClose CommentsPermalink
PART III--State Energy Program
Sec. 255. State Energy Program.CommentsClose CommentsPermalink
PART IV--State Energy Efficiency Grants Program
Sec. 261. Definitions.CommentsClose CommentsPermalink
Sec. 262. State energy efficiency retrofit programs.CommentsClose CommentsPermalink
Sec. 263. Administrative and technical support.CommentsClose CommentsPermalink
Sec. 264. Regulations.CommentsClose CommentsPermalink
Sec. 265. Funding.CommentsClose CommentsPermalink
Sec. 266. Home Energy Retrofit Finance Program.CommentsClose CommentsPermalink
PART V--Federal Efficiency and Renewables
Sec. 271. Federal purchase requirement.CommentsClose CommentsPermalink
Sec. 272. Competition requirements for task or delivery orders under energy savings performance contracts.CommentsClose CommentsPermalink
Sec. 273. Funding flexibility.CommentsClose CommentsPermalink
Sec. 274. Definition of energy savings.CommentsClose CommentsPermalink
Sec. 275. National energy efficiency improvement goals.CommentsClose CommentsPermalink
Sec. 276. Energy sustainability and efficiency grants and loans for institutions.CommentsClose CommentsPermalink
Sec. 277. Federal implementation strategy for energy-efficient information and communications technologies.CommentsClose CommentsPermalink
Sec. 278. Incentives for Federal agencies to participate in energy efficiency programs.CommentsClose CommentsPermalink
PART VI--Energy Efficiency Information on Homes and Buildings
Sec. 281. Building energy performance information program.CommentsClose CommentsPermalink
Sec. 282. Evaluation, measurement, and verification of energy savings.CommentsClose CommentsPermalink
PART VII--Residential High Performance Zero-Net-Energy Buildings Initiative
Sec. 291. Residential High Performance Zero-Net-Energy Buildings Initiative.CommentsClose CommentsPermalink
Subtitle D--Electric Grid
Sec. 295. National electric system efficiency and peak demand reduction goal.CommentsClose CommentsPermalink
Sec. 296. Uniform national standards for interconnection of certain small power production facilities.CommentsClose CommentsPermalink
TITLE III--IMPROVED ENERGY SECURITY
Subtitle A--Cyber Security of the Electric Transmission Grid
Sec. 301. Critical electric infrastructure.CommentsClose CommentsPermalink
Subtitle B--Nuclear Energy
Sec. 311. National Commission on Nuclear Waste.CommentsClose CommentsPermalink
Sec. 312. Sense of Congress regarding the strategic role of nuclear energy.CommentsClose CommentsPermalink
Sec. 313. Advanced fuel recycling process development.CommentsClose CommentsPermalink
Subtitle C--Improving United States Strategic Reserves
Sec. 321. Petroleum product reserve.CommentsClose CommentsPermalink
Sec. 322. Petroleum exchange authority.CommentsClose CommentsPermalink
Subtitle D--Federal Oil and Gas Development
PART I--Oil and Gas Leasing
Sec. 331. Oil and Gas Permit Processing Improvement Fund.CommentsClose CommentsPermalink
Sec. 332. Facilitation of coproduction of geothermal energy on oil and gas leases.CommentsClose CommentsPermalink
PART II--Outer Continental Shelf
Sec. 341. Implementation of inventory of outer Continental Shelf resources.CommentsClose CommentsPermalink
Sec. 342. Alaska OCS permit processing coordination office.CommentsClose CommentsPermalink
Sec. 343. Moratorium of oil and gas leasing in certain areas of the Gulf of Mexico.CommentsClose CommentsPermalink
Sec. 344. Repeal of outer Continental Shelf deep water and deep gas royalty relief.CommentsClose CommentsPermalink
PART III--Miscellaneous
Sec. 351. Minerals Management Service.CommentsClose CommentsPermalink
Sec. 352. Preservation of geological and geophysical data.CommentsClose CommentsPermalink
Sec. 353. Alaska natural gas pipeline.CommentsClose CommentsPermalink
Sec. 354. Denali National Park and Preserve natural gas pipeline.CommentsClose CommentsPermalink
Sec. 355. Exemption of trans-Alaska oil pipeline system from certain requirements.CommentsClose CommentsPermalink
Sec. 356. Procurement and acquisition of alternative fuels.CommentsClose CommentsPermalink
Sec. 357. Geologic Materials Archiving Grant Program.CommentsClose CommentsPermalink
Subtitle E--Public Land Renewable Energy Deployment
Sec. 361. Renewable energy Federal permit coordination.CommentsClose CommentsPermalink
Sec. 362. Extension of funding for implementation of Geothermal Steam Act of 1970.CommentsClose CommentsPermalink
Sec. 363. Programmatic environmental impact statements and land use planning.CommentsClose CommentsPermalink
Sec. 364. Report.CommentsClose CommentsPermalink
Sec. 365. Renewable energy development on brownfield sites.CommentsClose CommentsPermalink
Sec. 366. Development of solar and wind energy on public land.CommentsClose CommentsPermalink
Subtitle F--Carbon Capture
Sec. 371. Large-scale carbon storage program.CommentsClose CommentsPermalink
Sec. 372. Training program for State agencies.CommentsClose CommentsPermalink
Subtitle G--Island Energy
Sec. 381. Affiliated island energy independence team.CommentsClose CommentsPermalink
TITLE IV--ENERGY INNOVATION AND WORKFORCE DEVELOPMENT
Subtitle A--Funding
Sec. 401. Authorization of appropriations for energy research, development, demonstration, and commercial application activities.CommentsClose CommentsPermalink
Subtitle B--Grand Energy Challenges Research Initiative
Sec. 411. Grand Energy Challenges Research Initiative.CommentsClose CommentsPermalink
Subtitle C--Improvements to Existing Energy Research and Development Programs
Sec. 421. Advanced Research Projects Agency--Energy.CommentsClose CommentsPermalink
Sec. 422. Domestic vehicle battery manufacturing research.CommentsClose CommentsPermalink
Sec. 423. Lightweight materials research and development.CommentsClose CommentsPermalink
Sec. 424. Amendments to the Methane Hydrate Research and Development Act of 2000.CommentsClose CommentsPermalink
Sec. 425. Program to exploit low-Btu gas and conserve helium resources.CommentsClose CommentsPermalink
Sec. 426. Office of Arctic Energy.CommentsClose CommentsPermalink
Sec. 427. Ultra-deepwater and unconventional natural gas and other petroleum resources program.CommentsClose CommentsPermalink
Subtitle D--Energy Workforce Development
Sec. 431. Best practices for energy career academies.CommentsClose CommentsPermalink
Sec. 432. Energy career academies.CommentsClose CommentsPermalink
Sec. 433. Energy utility trades program for community colleges.CommentsClose CommentsPermalink
Sec. 434. Student awareness of energy career opportunities.CommentsClose CommentsPermalink
Sec. 435. Coordination of energy workforce training programs.CommentsClose CommentsPermalink
Sec. 436. Direct hire authority.CommentsClose CommentsPermalink
Sec. 437. Critical pay authority.CommentsClose CommentsPermalink
Sec. 438. Reemployment of civilian retirees.CommentsClose CommentsPermalink
Sec. 439. Sustainable energy training program for community colleges.CommentsClose CommentsPermalink
Subtitle E--Strengthening Education and Training in the Subsurface Geosciences and Engineering for Energy Development
Sec. 451. Definitions.CommentsClose CommentsPermalink
Sec. 452. Policy.CommentsClose CommentsPermalink
Sec. 453. Research personnel and programs.CommentsClose CommentsPermalink
Sec. 454. Scholarships and fellowships.CommentsClose CommentsPermalink
Sec. 455. Career technical and community college education.CommentsClose CommentsPermalink
Sec. 456. Use of funds by institutions.CommentsClose CommentsPermalink
Sec. 457. Advisory Committee.CommentsClose CommentsPermalink
Sec. 458. Office; regulations.CommentsClose CommentsPermalink
Sec. 459. Authorization of appropriations.CommentsClose CommentsPermalink
Sec. 460. Study of availability of skilled workers.CommentsClose CommentsPermalink
Subtitle F--Miscellaneous
Sec. 471. Other transactions authority.CommentsClose CommentsPermalink
Sec. 472. Definition of National Laboratory.CommentsClose CommentsPermalink
Sec. 473. Protection of results.CommentsClose CommentsPermalink
Sec. 474. Marine and hydrokinetic renewable energy research and development.CommentsClose CommentsPermalink
TITLE V--ENERGY MARKETS
Sec. 501. Enhanced information on critical energy supplies.CommentsClose CommentsPermalink
Sec. 502. Working Group on Energy Markets.CommentsClose CommentsPermalink
Sec. 503. Study of regulatory framework for energy markets.CommentsClose CommentsPermalink
Sec. 504. Metadata formats for energy prices.CommentsClose CommentsPermalink
Sec. 505. Emergency orders under the Federal Power Act.CommentsClose CommentsPermalink
Sec. 506. Cease-and-desist authority under the Federal Power Act.CommentsClose CommentsPermalink
Sec. 507. Cease-and-desist authority under the Natural Gas Act.CommentsClose CommentsPermalink
Sec. 508. De novo review of civil penalties under the Natural Gas Act.CommentsClose CommentsPermalink
TITLE VI--POLICY STUDIES AND REPORTS
Sec. 601. Helium gas resource assessment.CommentsClose CommentsPermalink
Sec. 602. Potash mineral resource assessment.CommentsClose CommentsPermalink
Sec. 603. Better energy strategy for tomorrow.CommentsClose CommentsPermalink
Sec. 604. Addressing climate change in China and India.CommentsClose CommentsPermalink
Sec. 605. Carbon leakage mitigation study.CommentsClose CommentsPermalink
Sec. 606. Study of foreign fuel subsidies.CommentsClose CommentsPermalink
Sec. 607. Assessment of renewable energy resources.CommentsClose CommentsPermalink
Sec. 608. Efficiency review of electric generation facilities.CommentsClose CommentsPermalink
Sec. 609. Report on emissions of alternative transportation fuels.CommentsClose CommentsPermalink
Sec. 610. Oil savings.CommentsClose CommentsPermalink
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
TITLE I--CLEAN ENERGY TECHNOLOGY DEPLOYMENTCommentsClose CommentsPermalink
TITLE I--CLEAN ENERGY TECHNOLOGY DEPLOYMENTCommentsClose CommentsPermalink
Subtitle A--Clean Energy FinancingCommentsClose CommentsPermalink
Subtitle A--Clean Energy FinancingCommentsClose CommentsPermalink
SEC. 101. PURPOSE.
The purpose of this subtitle is to promote the domestic development and deployment of clean energy technologies required for the 21st century through the improvement of existing programs and the establishment of a self-sustaining Clean Energy Deployment Administration that will provide for an attractive investment environment through partnership with and support of the private capital market in order to promote access to affordable financing for accelerated and widespread deployment of--CommentsClose CommentsPermalink
(1) clean energy technologies;CommentsClose CommentsPermalink
(2) advanced or enabling energy infrastructure technologies;CommentsClose CommentsPermalink
(3) energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings; andCommentsClose CommentsPermalink
(4) manufacturing technologies for any of the technologies or applications described in this section.CommentsClose CommentsPermalink
SEC. 102. DEFINITIONS.
In this subtitle:CommentsClose CommentsPermalink
(1) ADMINISTRATION- The term ‘Administration’ means the Clean Energy Deployment Administration established by section 105.CommentsClose CommentsPermalink
(2) ADMINISTRATOR- The term ‘Administrator’ means the Administrator of the Administration.CommentsClose CommentsPermalink
(3) ADVISORY COUNCIL- The term ‘Advisory Council’ means the Energy Technology Advisory Council of the Administration.CommentsClose CommentsPermalink
(4) BREAKTHROUGH TECHNOLOGY- The term ‘breakthrough technology’ means a clean energy technology that--CommentsClose CommentsPermalink
(A) presents a significant opportunity to advance the goals developed under section 104, as assessed under the methodology established by the Advisory Council; butCommentsClose CommentsPermalink
(B) has generally not been considered a commercially ready technology as a result of high perceived technology risk or other similar factors.CommentsClose CommentsPermalink
(5) CLEAN ENERGY TECHNOLOGY- The term ‘clean energy technology’ means a technology related to the production, use, transmission, storage, control, or conservation of energy that will--CommentsClose CommentsPermalink
(A) reduce the need for additional energy supplies by using existing energy supplies with greater efficiency or by transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States;CommentsClose CommentsPermalink
(B) diversify the sources of energy supply of the United States to strengthen energy security and to increase supplies with a favorable balance of environmental effects if the entire technology system is considered; orCommentsClose CommentsPermalink
(C) contribute to a stabilization of atmospheric greenhouse gas concentrations through reduction, avoidance, or sequestration of energy-related emissions.CommentsClose CommentsPermalink
(6) COST- The term ‘cost’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (
(7) DIRECT LOAN- The term ‘direct loan’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (
(8) FUND- The term ‘Fund’ means the Clean Energy Investment Fund established by section 103(a).CommentsClose CommentsPermalink
(9) LOAN GUARANTEE- The term ‘loan guarantee’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (
(10) NATIONAL LABORATORY- The term ‘National Laboratory’ has the meaning given the term in section 2 of the Energy Policy Act of 2005 (
(11) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
(12) SECURITY- The term ‘security’ has the meaning given the term in section 2 of the Securities Act of 1933 (
(13) STATE- The term ‘State’ means--CommentsClose CommentsPermalink
(A) a State;CommentsClose CommentsPermalink
(B) the District of Columbia;CommentsClose CommentsPermalink
(C) the Commonwealth of Puerto Rico; andCommentsClose CommentsPermalink
(D) any other territory or possession of the United States.CommentsClose CommentsPermalink
(14) TECHNOLOGY RISK- The term ‘technology risk’ means the risks during construction or operation associated with the design, development, and deployment of clean energy technologies (including the cost, schedule, performance, reliability and maintenance, and accounting for the perceived risk), from the perspective of commercial lenders, that may be increased as a result of the absence of adequate historical construction, operating, or performance data from commercial applications of the technology.CommentsClose CommentsPermalink
SEC. 103. IMPROVEMENTS TO EXISTING PROGRAMS.
(a) Clean Energy Investment Fund-CommentsClose CommentsPermalink
(1) ESTABLISHMENT- There is established in the Treasury of the United States a revolving fund, to be known as the ‘Clean Energy Investment Fund’, consisting of--CommentsClose CommentsPermalink
(A) such amounts as have been appropriated for administrative expenses to carry out title XVII of the Energy Policy Act of 2005 (
(B) such amounts as are deposited in the Fund under this subtitle and amendments made by this subtitle; andCommentsClose CommentsPermalink
(C) such sums as may be appropriated to supplement the Fund.CommentsClose CommentsPermalink
(2) EXPENDITURES FROM FUND-CommentsClose CommentsPermalink
(A) IN GENERAL- Notwithstanding section 1705(e) of the Energy Policy Act of 2005 (
(B) ADMINISTRATIVE EXPENSES-CommentsClose CommentsPermalink
(i) FEES- Fees collected for administrative expenses shall be available without limitation to cover applicable expenses.CommentsClose CommentsPermalink
(ii) FUND- To the extent that administrative expenses are not reimbursed through fees, an amount not to exceed 1.5 percent of the amounts in the Fund as of the beginning of each fiscal year shall be available to pay the administrative expenses for the fiscal year necessary to carry out title XVII of the Energy Policy Act of 2005 (
(3) TRANSFERS OF AMOUNTS-CommentsClose CommentsPermalink
(A) IN GENERAL- The amounts required to be transferred to the Fund under this subsection shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.CommentsClose CommentsPermalink
(B) CASH FLOWS- Cash flows associated with costs of the Fund described in section 502(5)(B) of the Federal Credit Reform Act of 1990 (
(C) ADJUSTMENTS- Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.CommentsClose CommentsPermalink
(b) Revisions to Loan Guarantee Program Authority-CommentsClose CommentsPermalink
(1) DEFINITION OF COMMERCIAL TECHNOLOGY- Section 1701(1) of the Energy Policy Act of 2005 (
‘(B) EXCLUSION- The term ‘commercial technology’ does not include a technology if the sole use of the technology is in connection with--CommentsClose CommentsPermalink
‘(i) a demonstration project; orCommentsClose CommentsPermalink
‘(ii) a project for which the Secretary approved a loan guarantee.’.CommentsClose CommentsPermalink
(2) SPECIFIC APPROPRIATION OR CONTRIBUTION- Section 1702 of the Energy Policy Act of 2005 (
‘(b) Specific Appropriation or Contribution-CommentsClose CommentsPermalink
‘(1) IN GENERAL- No guarantee shall be made unless sufficient amounts to account for the cost are available--CommentsClose CommentsPermalink
‘(A) in unobligated balances within the Clean Energy Investment Fund established under section 103(a) of the American Clean Energy Leadership Act of 2009;CommentsClose CommentsPermalink
‘(B) as a payment from the borrower and the payment is deposited in the Clean Energy Investment Fund; orCommentsClose CommentsPermalink
‘(C) in any combination of balances and payments described in subparagraphs (A) and (B), respectively.CommentsClose CommentsPermalink
‘(2) LIMITATION- The source of payments received from a borrower under paragraph (1)(B) shall not be a loan or other debt obligation that is made or guaranteed by the Federal Government.CommentsClose CommentsPermalink
‘(3) RELATION TO OTHER LAWS- Section 504(b) of the Federal Credit Reform Act of 1990 (
2 U.S.C. 661c(b) ) shall not apply to a loan or loan guarantee under this section.’.CommentsClose CommentsPermalink(3) SUBROGATION- Section 1702(g)(2) of the Energy Policy Act of 2005 (
42 U.S.C. 16512(g)(2) ) is amended by striking subparagraphs (B) and (C) and inserting the following:CommentsClose CommentsPermalink
‘(B) SUPERIORITY OF RIGHTS- Except as provided in subparagraph (C), the rights of the Secretary, with respect to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with respect to the property.CommentsClose CommentsPermalink
‘(C) TERMS AND CONDITIONS- A guarantee agreement shall include such detailed terms and conditions as the Secretary determines appropriate to--CommentsClose CommentsPermalink
‘(i) protect the interests of the United States in the case of default;CommentsClose CommentsPermalink
‘(ii) have available all the patents and technology necessary for any person selected, including the Secretary, to complete and operate the project;CommentsClose CommentsPermalink
‘(iii) provide for sharing the proceeds received from the sale of project assets with other creditors or control the disposition of project assets if necessary to protect the interests of the United States in the case of default; andCommentsClose CommentsPermalink
‘(iv) provide such lien priority in project assets as necessary to protect the interests of the United States in the case of a default.’.CommentsClose CommentsPermalink
(4) FEES- Section 1702(h) of the Energy Policy Act of 2005 (
42 U.S.C. 16512(h) ) is amended by striking paragraph (2) and inserting the following:CommentsClose CommentsPermalink‘(2) AVAILABILITY- Fees collected under this subsection shall--CommentsClose CommentsPermalink
‘(A) be deposited by the Secretary in the Clean Energy Investment Fund established under section 103(a) of the American Clean Energy Leadership Act of 2009; andCommentsClose CommentsPermalink
‘(B) remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.CommentsClose CommentsPermalink
‘(3) ADJUSTMENT- The Secretary may adjust the amount or manner of collection of fees under this title as the Secretary determines is necessary to promote, to the maximum extent practicable, eligible projects under this title.CommentsClose CommentsPermalink
‘(4) EXCESS FEES- Of the amount of a fee imposed on an applicant at the conditional commitment stage, 75 percent of the amount shall be refundable to the applicant if there is no financial close on the application, unless the Secretary determines that the administrative costs of the Department have exceeded the amount retained.CommentsClose CommentsPermalink
‘(5) CREDIT REPORT- If, in the opinion of the Secretary, the credit rating of an applicant is not relevant to the determination of whether or not support will be provided and the applicant agrees to accept the credit rating assigned to the applicant by the Secretary, the Secretary may waive any requirement to provide a third-party credit report.’.CommentsClose CommentsPermalink
(5) PROCESSING- Section 1702 of the Energy Policy Act of 2005 (
42 U.S.C. 16512 ) is amended by adding at the end the following:CommentsClose CommentsPermalink‘(k) Accelerated Reviews- To the maximum extent practicable and consistent with sound business practices, the Secretary shall seek to conduct necessary reviews concurrently of an application for a loan guarantee under this title such that decisions as to whether to enter into a commitment on the application can be issued not later than 180 days after the date of submission of a completed application.’.CommentsClose CommentsPermalink
(6) WAGE RATES- Section 1705(c) of the Energy Policy Act of 2005 (
SEC. 104. ENERGY TECHNOLOGY DEPLOYMENT GOALS.
(a) Goals- Not later than 1 year after the date of enactment of this Act, the Secretary, after consultation with the Advisory Council, shall develop and publish for review and comment in the Federal Register near-, medium-, and long-term goals (including numerical performance targets at appropriate intervals to measure progress toward those goals) for the deployment of clean energy technologies through the credit support programs established by this subtitle (including an amendment made by this subtitle) to promote--CommentsClose CommentsPermalink
(1) sufficient electric generating capacity using clean energy technologies to meet the energy needs of the United States;CommentsClose CommentsPermalink
(2) clean energy technologies in vehicles and fuels that will substantially reduce the reliance of the United States on foreign sources of energy and insulate consumers from the volatility of world energy markets;CommentsClose CommentsPermalink
(3) a domestic commercialization and manufacturing capacity that will establish the United States as a world leader in clean energy technologies across multiple sectors;CommentsClose CommentsPermalink
(4) installation of sufficient infrastructure to allow for the cost-effective deployment of clean energy technologies appropriate to each region of the United States;CommentsClose CommentsPermalink
(5) the transformation of the building stock of the United States to zero net energy consumption;CommentsClose CommentsPermalink
(6) the recovery, use, and prevention of waste energy;CommentsClose CommentsPermalink
(7) domestic manufacturing of clean energy technologies on a scale that is sufficient to achieve price parity with conventional energy sources;CommentsClose CommentsPermalink
(8) domestic production of commodities and materials (such as steel, chemicals, polymers, and cement) using clean energy technologies so that the United States will become a world leader in environmentally sustainable production of the commodities and materials;CommentsClose CommentsPermalink
(9) a robust, efficient, and interactive electricity transmission grid that will allow for the incorporation of clean energy technologies, distributed generation, smart grid functions, and demand-response in each regional electric grid;CommentsClose CommentsPermalink
(10) sufficient availability of financial products to allow owners and users of residential, retail, commercial, and industrial buildings to make energy efficiency and distributed generation technology investments with reasonable payback periods; andCommentsClose CommentsPermalink
(11) such other goals as the Secretary, in consultation with the Advisory Council, determines to be consistent with the purposes of this subtitle.CommentsClose CommentsPermalink
(b) Revisions- The Secretary shall revise the goals established under subsection (a), from time to time as appropriate, to account for advances in technology and changes in energy policy.CommentsClose CommentsPermalink
SEC. 105. CLEAN ENERGY DEPLOYMENT ADMINISTRATION.
(a) Establishment-CommentsClose CommentsPermalink
(1) IN GENERAL- There is established in the Department of Energy an administration to be known as the Clean Energy Deployment Administration, under the direction of the Administrator and the Board of Directors.CommentsClose CommentsPermalink
(2) STATUS-CommentsClose CommentsPermalink
(A) IN GENERAL- The Administration (including officers, employees, and agents of the Administration) shall not be responsible to, or subject to the authority, direction, or control of, any other officer, employee, or agent of the Department of Energy other than the Secretary, acting through the Administrator.CommentsClose CommentsPermalink
(B) EXEMPTION FROM REORGANIZATION- The Administration shall be exempt from the reorganization authority provided under section 643 of the Department of Energy Organization Act (
(C) INSPECTOR GENERAL- Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--CommentsClose CommentsPermalink
(i) in paragraph (1), by inserting ‘the Administrator of the Clean Energy Deployment Administration;’ after ‘Export-Import Bank;’; andCommentsClose CommentsPermalink
(ii) in paragraph (2), by inserting ‘the Clean Energy Deployment Administration,’ after ‘Export-Import Bank,’.CommentsClose CommentsPermalink
(3) OFFICES-CommentsClose CommentsPermalink
(A) PRINCIPAL OFFICE- The Administration shall--CommentsClose CommentsPermalink
(i) maintain the principal office of the Administration in the District of Columbia; andCommentsClose CommentsPermalink
(ii) for purposes of venue in civil actions, be considered to be a resident of the District of Columbia.CommentsClose CommentsPermalink
(B) OTHER OFFICES- The Administration may establish other offices in such other places as the Administration considers necessary or appropriate for the conduct of the business of the Administration.CommentsClose CommentsPermalink
(b) Administrator-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator shall be--CommentsClose CommentsPermalink
(A) appointed by the President, with the advice and consent of the Senate, for a 5-year term; andCommentsClose CommentsPermalink
(B) compensated at the annual rate of basic pay prescribed for level II of the Executive Schedule under
(2) DUTIES- The Administrator shall--CommentsClose CommentsPermalink
(A) serve as the Chief Executive Officer of the Administration and Chairman of the Board;CommentsClose CommentsPermalink
(B) ensure that--CommentsClose CommentsPermalink
(i) the Administration operates in a safe and sound manner, including maintenance of adequate capital and internal controls (consistent with section 404 of the Sarbanes-Oxley Act of 2002 (
(ii) the operations and activities of the Administration foster liquid, efficient, competitive, and resilient energy and energy efficiency finance markets;CommentsClose CommentsPermalink
(iii) the Administration carries out the purposes of this subtitle only through activities that are authorized under and consistent with this subtitle; andCommentsClose CommentsPermalink
(iv) the activities of the Administration and the manner in which the Administration is operated are consistent with the public interest;CommentsClose CommentsPermalink
(C) develop policies and procedures for the Administration that will--CommentsClose CommentsPermalink
(i) promote a self-sustaining portfolio of investments that will maximize the value of investments to effectively promote clean energy technologies;CommentsClose CommentsPermalink
(ii) promote transparency and openness in Administration operations;CommentsClose CommentsPermalink
(iii) afford the Administration with sufficient flexibility to meet the purposes of this subtitle;CommentsClose CommentsPermalink
(iv) provide for the efficient processing of applications;CommentsClose CommentsPermalink
(v) promote, consistent with the purposes of this Act, the participation of private financial institutions and other sources of private capital, on commercially reasonable terms, if and to the extent the capital is available; andCommentsClose CommentsPermalink
(vi) promote the availability of financial products to small business through working with entities that have appropriate expertise extending credit or other relevant financial services to small companies developing clean energy technologies; andCommentsClose CommentsPermalink
(D) with the concurrence of the Board, set expected loss reserves for the support provided by the Administration consistent with section 106(a)(1)(C).CommentsClose CommentsPermalink
(c) Board of Directors-CommentsClose CommentsPermalink
(1) IN GENERAL- The Board of Directors of the Administration shall consist of--CommentsClose CommentsPermalink
(A) the Secretary or the designee of the Secretary, who shall serve as an ex-officio voting member of the Board of Directors;CommentsClose CommentsPermalink
(B) the Administrator, who shall serve as the Chairman of the Board of Directors; andCommentsClose CommentsPermalink
(C) 7 additional members who shall--CommentsClose CommentsPermalink
(i) be appointed by the President, with the advice and consent of the Senate, for staggered 5-year terms; andCommentsClose CommentsPermalink
(ii) have experience in banking or financial services relevant to the operations of the Administration, including individuals with substantial experience in the development of energy projects, the electricity generation sector, the transportation sector, the manufacturing sector, and the energy efficiency sector.CommentsClose CommentsPermalink
(2) DUTIES- The Board of Directors shall--CommentsClose CommentsPermalink
(A) oversee the operations of the Administration and ensure industry best practices are followed in all financial transactions involving the Administration;CommentsClose CommentsPermalink
(B) consult with the Administrator on the general policies and procedures of the Administration to ensure the interests of the taxpayers are protected;CommentsClose CommentsPermalink
(C) ensure the portfolio of investments are consistent with purposes of this subtitle and with the long-term financial stability of the Administration;CommentsClose CommentsPermalink
(D) ensure that the operations and activities of the Administration are consistent with the development of a robust private sector that can provide commercial loans or financing products; andCommentsClose CommentsPermalink
(E) not serve on a full-time basis, except that the Board of Directors shall meet at least quarterly to review, as appropriate, applications for credit support and set policies and procedures as necessary.CommentsClose CommentsPermalink
(3) REMOVAL- An appointed member of the Board of Directors may be removed from office by the President for good cause.CommentsClose CommentsPermalink
(4) VACANCIES- An appointed seat on the Board of Directors that becomes vacant shall be filled by appointment by the President, but only for the unexpired portion of the term of the vacating member.CommentsClose CommentsPermalink
(5) COMPENSATION OF MEMBERS- An appointed member of the Board of Directors shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level III of the Executive Schedule under
(d) Energy Technology Advisory Council-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administration shall have an Energy Technology Advisory Council consisting of--CommentsClose CommentsPermalink
(A) 5 members selected by the Secretary; andCommentsClose CommentsPermalink
(B) 3 members selected by the Board of Directors of the Administration.CommentsClose CommentsPermalink
(2) QUALIFICATIONS- The members of the Advisory Council shall--CommentsClose CommentsPermalink
(A) have relevant scientific expertise; andCommentsClose CommentsPermalink
(B) in the case of the members selected by the Secretary under paragraph (1)(A), include representatives of--CommentsClose CommentsPermalink
(i) the academic community;CommentsClose CommentsPermalink
(ii) the private research community;CommentsClose CommentsPermalink
(iii) National Laboratories;CommentsClose CommentsPermalink
(iv) the technology or project development community; andCommentsClose CommentsPermalink
(v) the commercial energy financing and operations sector.CommentsClose CommentsPermalink
(3) DUTIES- The Advisory Council shall--CommentsClose CommentsPermalink
(A) develop and publish for comment in the Federal Register a methodology for assessment of clean energy technologies that will allow the Administration to evaluate projects based on the progress likely to be achieved per-dollar invested in maximizing the attributes of the definition of clean energy technology, taking into account the extent to which support for a clean energy technology is likely to accrue subsequent benefits that are attributable to a commercial scale deployment taking place earlier than that which otherwise would have occurred without the support; andCommentsClose CommentsPermalink
(B) advise on the technological approaches that should be supported by the Administration to meet the technology deployment goals established by the Secretary pursuant to section 104.CommentsClose CommentsPermalink
(4) TERM-CommentsClose CommentsPermalink
(A) IN GENERAL- Members of the Advisory Council shall have 5-year staggered terms, as determined by the Secretary and the Administrator.CommentsClose CommentsPermalink
(B) REAPPOINTMENT- A member of the Advisory Council may be reappointed.CommentsClose CommentsPermalink
(5) COMPENSATION- A member of the Advisory Council, who is not otherwise compensated as a Federal employee, shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under
(e) Staff-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator, in consultation with the Board of Directors, may--CommentsClose CommentsPermalink
(A) appoint and terminate such officers, attorneys, employees, and agents as are necessary to carry out this subtitle; andCommentsClose CommentsPermalink
(B) vest those personnel with such powers and duties as the Administrator may determine.CommentsClose CommentsPermalink
(2) DIRECT HIRE AUTHORITY-CommentsClose CommentsPermalink
(A) IN GENERAL- Notwithstanding section 3304 and sections 3309 through 3318 of title 5, United States Code, the Administrator may, on a determination that there is a severe shortage of candidates or a critical hiring need for particular positions, recruit and directly appoint highly qualified critical personnel with specialized knowledge important to the function of the Administration into the competitive service.CommentsClose CommentsPermalink
(B) EXCEPTION- The authority granted under subparagraph (A) shall not apply to positions in the excepted service or the Senior Executive Service.CommentsClose CommentsPermalink
(C) REQUIREMENTS- In exercising the authority granted under subparagraph (A), the Administrator shall ensure that any action taken by the Administrator--CommentsClose CommentsPermalink
(i) is consistent with the merit principles of
(ii) complies with the public notice requirements of
(D) TERMINATION OF EFFECTIVENESS- The authority provided by this paragraph terminates effective on the date that is 2 years after the date of enactment of this Act.CommentsClose CommentsPermalink
(3) CRITICAL PAY AUTHORITY-CommentsClose CommentsPermalink
(A) IN GENERAL- Notwithstanding
(i) the positions require expertise of an extremely high level in a financial, technical, or scientific field;CommentsClose CommentsPermalink
(ii) the Administration would not successfully accomplish an important mission without such an individual; andCommentsClose CommentsPermalink
(iii) exercise of the authority is necessary to recruit an individual who is exceptionally well qualified for the position.CommentsClose CommentsPermalink
(B) LIMITATIONS- The authority granted under subparagraph (A) shall be subject to the following conditions:CommentsClose CommentsPermalink
(i) The number of critical positions authorized by subparagraph (A) may not exceed 20 at any 1 time in the Administration.CommentsClose CommentsPermalink
(ii) The term of an appointment under subparagraph (A) may not exceed 4 years.CommentsClose CommentsPermalink
(iii) An individual appointed under subparagraph (A) may not have been an Administration employee at any time during the 2-year period preceding the date of appointment.CommentsClose CommentsPermalink
(iv) Total annual compensation for any individual appointed under subparagraph (A) may not exceed the highest total annual compensation payable at the rate determined under
(v) An individual appointed under subparagraph (A) may not be considered to be an employee for purposes of subchapter II of chapter 75 of title 5, United States Code.CommentsClose CommentsPermalink
(C) NOTIFICATION- Each year, the Administrator shall submit to Congress a notification that lists each individual appointed under this paragraph.CommentsClose CommentsPermalink
SEC. 106. ADMINISTRATION FUNCTIONS.
(a) Operational Units-CommentsClose CommentsPermalink
(1) DIRECT SUPPORT-CommentsClose CommentsPermalink
(A) IN GENERAL- The Administration may issue direct loans, letters of credit, loan guarantees, insurance products, or such other credit enhancements (including through participation as a co-lender or a lending member of a syndication) as the Administrator considers appropriate to deploy clean energy technologies if the Administrator has determined that deployment of the technologies would benefit or be accelerated by the support.CommentsClose CommentsPermalink
(B) ELIGIBILITY CRITERIA- In carrying out this paragraph and awarding credit support to projects, the Administrator shall account for--CommentsClose CommentsPermalink
(i) how the technology rates based on an evaluation methodology established by the Advisory Council;CommentsClose CommentsPermalink
(ii) how the project fits with the goals established under section 104; andCommentsClose CommentsPermalink
(iii) the potential for the applicant to successfully complete the project.CommentsClose CommentsPermalink
(C) RISK-CommentsClose CommentsPermalink
(i) EXPECTED LOAN LOSS RESERVE- The Administrator shall establish an expected loan loss reserve to account for estimated losses attributable to activities under this section that is consistent with the purposes of--CommentsClose CommentsPermalink
(I) developing breakthrough technologies to the point at which technology risk is largely mitigated;CommentsClose CommentsPermalink
(II) achieving widespread deployment and advancing the commercial viability of clean energy technologies; andCommentsClose CommentsPermalink
(III) advancing the goals established under section 104.CommentsClose CommentsPermalink
(ii) INITIAL EXPECTED LOAN LOSS RESERVE- Until such time as the Administrator determines sufficient data exist to establish an expected loan loss reserve that is appropriate, the Administrator shall consider establishing an initial rate of 10 percent for the portfolio of investments under this subtitle.CommentsClose CommentsPermalink
(iii) PORTFOLIO INVESTMENT APPROACH- The Administration shall--CommentsClose CommentsPermalink
(I) use a portfolio investment approach to mitigate risk and diversify investments across technologies;CommentsClose CommentsPermalink
(II) to the maximum extent practicable and consistent with long-term self-sufficiency, weigh the portfolio of investments in projects to advance the goals established under section 104; andCommentsClose CommentsPermalink
(III) consistent with the expected loan loss reserve established under this subparagraph, the purposes of this subtitle, and section 105(b)(2)(B), provide the maximum practicable percentage of support to promote breakthrough technologies.CommentsClose CommentsPermalink
(iv) LOSS RATE REVIEW-CommentsClose CommentsPermalink
(I) IN GENERAL- The Board of Directors shall review on an annual basis the loss rates of the portfolio to determine the adequacy of the reserves.CommentsClose CommentsPermalink
(II) REPORT- Not later than 90 days after the date of the initiation of the review, the Administrator shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of the review and any recommended policy changes.CommentsClose CommentsPermalink
(D) APPLICATION REVIEW-CommentsClose CommentsPermalink
(i) IN GENERAL- To the maximum extent practicable and consistent with sound business practices, the Administration shall seek to consolidate reviews of applications for credit support under this subtitle such that final decisions on applications can generally be issued not later than 180 days after the date of submission of a completed application.CommentsClose CommentsPermalink
(ii) ENVIRONMENTAL REVIEW- In carrying out this subtitle, the Administration shall, to the maximum extent practicable--CommentsClose CommentsPermalink
(I) avoid duplicating efforts that have already been undertaken by other agencies (including State agencies acting under Federal programs); andCommentsClose CommentsPermalink
(II) with the advice of the Council on Environmental Quality and any other applicable agencies, use the administrative records of similar reviews conducted throughout the executive branch to develop the most expeditious review process practicable.CommentsClose CommentsPermalink
(E) WAGE RATE REQUIREMENTS-CommentsClose CommentsPermalink
(i) IN GENERAL- No credit support shall be issued under this section unless the borrower has provided to the Administrator reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the Administration will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code.CommentsClose CommentsPermalink
(ii) LABOR STANDARDS- With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
(2) INDIRECT SUPPORT-CommentsClose CommentsPermalink
(A) IN GENERAL- The Administration shall work to develop financial products and arrangements to both promote the widespread deployment of, and mobilize private sector support of credit and investment institutions for, clean energy technologies by facilitating aggregation of small projects and by providing indirect credit support, including credit enhancement.CommentsClose CommentsPermalink
(B) FINANCIAL PRODUCTS- The Administration--CommentsClose CommentsPermalink
(i) in cooperation with Federal, State, local, and private sector entities, shall develop debt instruments that provide for the aggregation of, or directly aggregate, projects for clean energy technology deployments on a scale appropriate for residential or commercial applications; andCommentsClose CommentsPermalink
(ii) may insure, purchase, and make commitments to purchase, any debt instrument associated with the deployment of clean energy technologies (including instruments secured by liens or other collateral related to the funding of clean energy technology) for the purposes of enhancing the availability of private financing for clean energy technology deployments.CommentsClose CommentsPermalink
(C) DISPOSITION OF DEBT OR INTEREST- The Administration may acquire, hold, and sell or otherwise dispose of, pursuant to commitments or otherwise, any debt associated with the deployment of clean energy technologies or interest in the debt.CommentsClose CommentsPermalink
(D) PRICING-CommentsClose CommentsPermalink
(i) IN GENERAL- The Administrator may establish requirements, and impose charges or fees, which may be regarded as elements of pricing, for different classes of sellers, servicers, or services.CommentsClose CommentsPermalink
(ii) CLASSIFICATION OF SELLERS AND SERVICERS- For the purpose of clause (i), the Administrator may classify sellers and servicers as necessary to promote transparency and liquidity and properly characterize the risk of default.CommentsClose CommentsPermalink
(E) ELIGIBILITY- The Administrator shall establish--CommentsClose CommentsPermalink
(i) eligibility criteria for loan originators, sellers, and servicers seeking support for portfolios of financial obligations relating to clean energy technologies so as to ensure the capability of the loan originators, sellers, and servicers to perform the functions required to maintain the expected performance of the portfolios; andCommentsClose CommentsPermalink
(ii) such criteria, standards, guidelines, and mechanisms such that, to the maximum extent practicable, loan originators and sellers will be able to determine the eligibility of loans for resale at the time of initial lending.CommentsClose CommentsPermalink
(F) SECONDARY MARKET SUPPORT-CommentsClose CommentsPermalink
(i) IN GENERAL- The Administration may lend on the security of, and make commitments to lend on the security of, any debt that the Administration has issued or is authorized to purchase under this section.CommentsClose CommentsPermalink
(ii) AUTHORIZED ACTIONS- On such terms and conditions as the Administrator may prescribe, the Administration may, based on the debt and with the concurrence of the Board of Directors--CommentsClose CommentsPermalink
(I) give security or guarantee;CommentsClose CommentsPermalink
(II) pay interest or other return; andCommentsClose CommentsPermalink
(III) issue notes, debentures, bonds, or other obligations or securities.CommentsClose CommentsPermalink
(G) LENDING ACTIVITIES-CommentsClose CommentsPermalink
(i) IN GENERAL- The Administrator shall determine--CommentsClose CommentsPermalink
(I) the volume of the lending activities of the Administration; andCommentsClose CommentsPermalink
(II) the types of loan ratios, risk profiles, interest rates, maturities, and charges or fees in the secondary market operations of the Administration.CommentsClose CommentsPermalink
(ii) OBJECTIVES- Determinations under clause (i) shall be consistent with the objectives of--CommentsClose CommentsPermalink
(I) providing an attractive investment environment for clean energy technologies;CommentsClose CommentsPermalink
(II) making the operations of the Administration self-supporting over the long term; andCommentsClose CommentsPermalink
(III) advancing the goals established under section 104.CommentsClose CommentsPermalink
(H) EXEMPT SECURITIES- All securities issued or guaranteed by the Administration shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to principal or interest by the United States, be considered to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.CommentsClose CommentsPermalink
(b) Other Authorized Programs-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary may delegate to the Administration the provision of financial services and program management for grant, loan, and other credit enhancement programs authorized under any other provision of law.CommentsClose CommentsPermalink
(2) ADMINISTRATION- In administering any other program delegated by the Secretary, the Administration shall, to the maximum extent practicable (as determined by the Administrator)--CommentsClose CommentsPermalink
(A) administer the program in a manner that is consistent with the terms and conditions of this subtitle; andCommentsClose CommentsPermalink
(B) minimize the administrative costs to the Federal Government.CommentsClose CommentsPermalink
SEC. 107. FEDERAL CREDIT AUTHORITY.
(a) Transfer of Functions and Authority-CommentsClose CommentsPermalink
(1) IN GENERAL- Subject to paragraph (2), on a finding by the Secretary and the Administrator that the Administration is sufficiently ready to assume the functions and that applicants to those programs will not be unduly adversely affected but in no case later than 18 months after the date of enactment of this Act, all of the functions and authority of the Secretary under title XVII of the Energy Policy Act of 2005 (
(2) FAILURE TO TRANSFER FUNCTIONS- If the functions and authorities are not transferred to the Administration in accordance with paragraph (1), the Secretary and the Administrator shall submit to Congress a report on the reasons for delay and an expected timetable for transfer of the functions and authorities to the Administration.CommentsClose CommentsPermalink
(3) EFFECT ON EXISTING RIGHTS AND OBLIGATIONS- The transfer of functions and authority under this subsection shall not affect the rights and obligations of any party that arise under a predecessor program or authority prior to the transfer under this subsection.CommentsClose CommentsPermalink
(4) TRANSFER OF FUND AUTHORITY-CommentsClose CommentsPermalink
(A) IN GENERAL- On transfer of functions pursuant to paragraph (1), the Administration shall have all authorities to make use of the Fund reserved for the Secretary before the transfer.CommentsClose CommentsPermalink
(B) ADMINISTRATIVE EXPENSES- Effective beginning on the date of enactment of this Act, the Administrator may make use of up to 1.5 percent of the amounts in the Fund as of the beginning of each fiscal year to pay administrative expenses for that fiscal year to carry out the purposes of this Act.CommentsClose CommentsPermalink
(5) USE-CommentsClose CommentsPermalink
(A) IN GENERAL- Amounts in the Fund shall be available for discharge of liabilities and all other expenses of the Administration, including subsequent transfer to the respective credit accounts.CommentsClose CommentsPermalink
(B) LIABILITY- All activities of the Administration that could result in a liability for the United States shall be transparently accounted for and no obligation or liability may be incurred unless--CommentsClose CommentsPermalink
(i) the appropriate amounts are transferred to credit accounts for activities pursuant to the Federal Credit Reform Act of 1990 (
(ii) sufficient amounts are reserved within the Fund to account for such liabilities.CommentsClose CommentsPermalink
(6) INITIAL INVESTMENT-CommentsClose CommentsPermalink
(A) IN GENERAL- On transfer of functions pursuant to paragraph (1), out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Fund to carry out this subtitle $10,000,000,000, to remain available until expended.CommentsClose CommentsPermalink
(B) RECEIPT AND ACCEPTANCE- The Fund shall be entitled to receive and shall accept, and shall be used to carry out this subtitle, the funds transferred to the Fund under subparagraph (A), without further appropriation.CommentsClose CommentsPermalink
(7) AUTHORIZATION OF APPROPRIATIONS- In addition to funds made available by paragraphs (1) through (6), there are authorized to be appropriated to the Fund such sums as are necessary to carry out this subtitle.CommentsClose CommentsPermalink
(b) Payments of Liabilities-CommentsClose CommentsPermalink
(1) IN GENERAL- Any payment to discharge liabilities arising from agreements under this subtitle shall be made exclusively out of the Fund or the associated credit account, as appropriate.CommentsClose CommentsPermalink
(2) SECURITY- Subject to paragraph (1), the full faith and credit of the United States is pledged to the payment of all obligations entered into by the Administration pursuant to this subtitle.CommentsClose CommentsPermalink
(c) Fees-CommentsClose CommentsPermalink
(1) IN GENERAL- Consistent with achieving the purposes of this subtitle, the Administrator shall charge fees or collect compensation generally in accordance with commercial rates.CommentsClose CommentsPermalink
(2) AVAILABILITY OF FEES- All fees collected by the Administration may be retained by the Administration and placed in the Fund and may remain available to the Administration, without further appropriation or fiscal year limitation, for use in carrying out the purposes of this subtitle.CommentsClose CommentsPermalink
(3) BREAKTHROUGH TECHNOLOGIES- The Administration shall charge the minimum amount in fees or compensation practicable for breakthrough technologies, consistent with the long-term viability of the Administration, unless the Administration first determines that a higher charge will not impede the development of the technology.CommentsClose CommentsPermalink
(4) ALTERNATIVE FEE ARRANGEMENTS- The Administration may use such alternative arrangements (such as profit participation, contingent fees, and other valuable contingent interests) as the Administration considers appropriate to compensate the Administration for the expenses of the Administration and the risk inherent in the support of the Administration.CommentsClose CommentsPermalink
(d) Cost Transfer Authority- Amounts collected by the Administration for the cost of a loan or loan guarantee shall be transferred by the Administration to the respective credit program accounts.CommentsClose CommentsPermalink
(e) Supplemental Borrowing Authority- In order to maintain sufficient liquidity for activities authorized under section 106(a)(2), the Administration may issue notes, debentures, bonds, or other obligations for purchase by the Secretary of the Treasury.CommentsClose CommentsPermalink
(f) Public Debt Transactions- For the purpose of subsection (e)--CommentsClose CommentsPermalink
(1) the Secretary of the Treasury may use as a public debt transaction the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code; andCommentsClose CommentsPermalink
(2) the purposes for which securities may be issued under that chapter are extended to include any purchase under this subsection.CommentsClose CommentsPermalink
(g) Maximum Outstanding Holding- The Secretary of the Treasury shall purchase instruments issued under subsection (e) to the extent that the purchase would not increase the aggregate principal amount of the outstanding holdings of obligations under subsection (e) by the Secretary of the Treasury to an amount that is greater than $2,000,000,000.CommentsClose CommentsPermalink
(h) Rate of Return- Each purchase of obligations by the Secretary of the Treasury under this section shall be on terms and conditions established to yield a rate of return determined by the Secretary of the Treasury to be appropriate, taking into account the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the purchase.CommentsClose CommentsPermalink
(i) Sale of Obligations- The Secretary of the Treasury may at any time sell, on terms and conditions and at prices determined by the Secretary of the Treasury, any of the obligations acquired by the Secretary of the Treasury under this section.CommentsClose CommentsPermalink
(j) Public Debt Transactions- All redemptions, purchases, and sales by the Secretary of the Treasury of obligations under this section shall be treated as public debt transactions of the United States.CommentsClose CommentsPermalink
SEC. 108. GENERAL PROVISIONS.
(a) Immunity From Impairment, Limitation, or Restriction-CommentsClose CommentsPermalink
(1) IN GENERAL- All rights and remedies of the Administration (including any rights and remedies of the Administration on, under, or with respect to any mortgage or any obligation secured by a mortgage) shall be immune from impairment, limitation, or restriction by or under--CommentsClose CommentsPermalink
(A) any law (other than a law enacted by Congress expressly in limitation of this paragraph) that becomes effective after the acquisition by the Administration of the subject or property on, under, or with respect to which the right or remedy arises or exists or would so arise or exist in the absence of the law; orCommentsClose CommentsPermalink
(B) any administrative or other action that becomes effective after the acquisition.CommentsClose CommentsPermalink
(2) STATE LAW- The Administrator may conduct the business of the Administration without regard to any qualification or law of any State relating to incorporation.CommentsClose CommentsPermalink
(b) Use of Other Agencies- With the consent of a department, establishment, or instrumentality (including any field office), the Administration may--CommentsClose CommentsPermalink
(1) use and act through any department, establishment, or instrumentality; orCommentsClose CommentsPermalink
(2) use, and pay compensation for, information, services, facilities, and personnel of the department, establishment, or instrumentality.CommentsClose CommentsPermalink
(c) Procurement- The Administrator shall be the senior procurement officer for the Administration for purposes of section 16(a) of the Office of Federal Procurement Policy Act (
(d) Financial Matters-CommentsClose CommentsPermalink
(1) INVESTMENTS- Funds of the Administration may be invested in such investments as the Board of Directors may prescribe.CommentsClose CommentsPermalink
(2) FISCAL AGENTS- Any Federal Reserve bank or any bank as to which at the time of the designation of the bank by the Administrator there is outstanding a designation by the Secretary of the Treasury as a general or other depository of public money, may be designated by the Administrator as a depositary or custodian or as a fiscal or other agent of the Administration.CommentsClose CommentsPermalink
(e) Jurisdiction- Notwithstanding
(1) the Administration shall be considered a corporation covered by sections 1345 and 1442 of title 28, United States Code;CommentsClose CommentsPermalink
(2) all civil actions to which the Administration is a party shall be considered to arise under the laws of the United States, and the district courts of the United States shall have original jurisdiction of all such actions, without regard to amount or value; andCommentsClose CommentsPermalink
(3) any civil or other action, case or controversy in a court of a State, or in any court other than a district court of the United States, to which the Administration is a party may at any time before trial be removed by the Administration, without the giving of any bond or security and by following any procedure for removal of causes in effect at the time of the removal--CommentsClose CommentsPermalink
(A) to the district court of the United States for the district and division embracing the place in which the same is pending; orCommentsClose CommentsPermalink
(B) if there is no such district court, to the district court of the United States for the district in which the principal office of the Administration is located.CommentsClose CommentsPermalink
(f) Periodic Reports- Not later than 1 year after commencement of operation of the Administration and at least biannually thereafter, the Administrator shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes a description of--CommentsClose CommentsPermalink
(1) the technologies supported by activities of the Administration and how the activities advance the purposes of this subtitle; andCommentsClose CommentsPermalink
(2) the performance of the Administration on meeting the goals established under section 104.CommentsClose CommentsPermalink
(g) Audits by the Comptroller General-CommentsClose CommentsPermalink
(1) IN GENERAL- The programs, activities, receipts, expenditures, and financial transactions of the Administration shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General.CommentsClose CommentsPermalink
(2) ACCESS- The representatives of the Government Accountability Office shall--CommentsClose CommentsPermalink
(A) have access to the personnel and to all books, accounts, documents, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to, under the control of, or in use by the Administration, or any agent, representative, attorney, advisor, or consultant retained by the Administration, and necessary to facilitate the audit;CommentsClose CommentsPermalink
(B) be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;CommentsClose CommentsPermalink
(C) be authorized to obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to the audit without cost to the Comptroller General; andCommentsClose CommentsPermalink
(D) have the right of access of the Comptroller General to such information pursuant to
(3) ASSISTANCE AND COST-CommentsClose CommentsPermalink
(A) IN GENERAL- For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to section 3709 of the Revised Statutes (
(B) REIMBURSEMENT-CommentsClose CommentsPermalink
(i) IN GENERAL- On the request of the Comptroller General, the Administration shall reimburse the General Accountability Office for the full cost of any audit conducted by the Comptroller General under this subsection.CommentsClose CommentsPermalink
(ii) CREDITING- Such reimbursements shall--CommentsClose CommentsPermalink
(I) be credited to the appropriation account entitled ‘Salaries and Expenses, Government Accountability Office’ at the time at which the payment is received; andCommentsClose CommentsPermalink
(II) remain available until expended.CommentsClose CommentsPermalink
(h) Annual Independent Audits-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator shall--CommentsClose CommentsPermalink
(A) have an annual independent audit made of the financial statements of the Administration by an independent public accountant in accordance with generally accepted auditing standards; andCommentsClose CommentsPermalink
(B) submit to the Secretary the results of the audit.CommentsClose CommentsPermalink
(2) CONTENT- In conducting an audit under this subsection, the independent public accountant shall determine and report on whether the financial statements of the Administration--CommentsClose CommentsPermalink
(A) are presented fairly in accordance with generally accepted accounting principles; andCommentsClose CommentsPermalink
(B) comply with any disclosure requirements imposed under this subtitle.CommentsClose CommentsPermalink
(i) Financial Reports-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator shall submit to the Secretary annual and quarterly reports of the financial condition and operations of the Administration, which shall be in such form, contain such information, and be submitted on such dates as the Secretary shall require.CommentsClose CommentsPermalink
(2) CONTENTS OF ANNUAL REPORTS- Each annual report shall include--CommentsClose CommentsPermalink
(A) financial statements prepared in accordance with generally accepted accounting principles;CommentsClose CommentsPermalink
(B) any supplemental information or alternative presentation that the Secretary may require; andCommentsClose CommentsPermalink
(C) an assessment (as of the end of the most recent fiscal year of the Administration), signed by the chief executive officer and chief accounting or financial officer of the Administration, of--CommentsClose CommentsPermalink
(i) the effectiveness of the internal control structure and procedures of the Administration; andCommentsClose CommentsPermalink
(ii) the compliance of the Administration with applicable safety and soundness laws.CommentsClose CommentsPermalink
(3) SPECIAL REPORTS- The Secretary may require the Administrator to submit other reports on the condition (including financial condition), management, activities, or operations of the Administration, as the Secretary considers appropriate.CommentsClose CommentsPermalink
(4) ACCURACY- Each report of financial condition shall contain a declaration by the Administrator or any other officer designated by the Board of Directors of the Administration to make the declaration, that the report is true and correct to the best of the knowledge and belief of the officer.CommentsClose CommentsPermalink
(5) AVAILABILITY OF REPORTS- Reports required under this section shall be published and made publicly available as soon as is practicable after receipt by the Secretary.CommentsClose CommentsPermalink
(j) Scope and Termination of Authority-CommentsClose CommentsPermalink
(1) NEW OBLIGATIONS- The Administrator shall not initiate any new obligations under this subtitle on or after January 1, 2029.CommentsClose CommentsPermalink
(2) REVERSION TO SECRETARY- The authorities and obligations of the Administration shall revert to the Secretary on January 1, 2029.CommentsClose CommentsPermalink
Subtitle B--Improved Transmission SitingCommentsClose CommentsPermalink
Subtitle B--Improved Transmission SitingCommentsClose CommentsPermalink
SEC. 121. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
Section 216 of the Federal Power Act (
‘SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
‘(a) Policy- It is the policy of the United States that the national interstate transmission system should be guided by the goal of maximizing the net benefits of the electricity system, taking into consideration--CommentsClose CommentsPermalink
‘(1) support for the development of new renewable energy generation capacity, including renewable energy generation located distant from load centers and other location-constrained resources;CommentsClose CommentsPermalink
‘(2) opportunities for reduced emissions from regional power production;CommentsClose CommentsPermalink
‘(3) cost savings resulting from--CommentsClose CommentsPermalink
‘(A) reduced transmission congestion;CommentsClose CommentsPermalink
‘(B) enhanced opportunities for intraregional and interregional electricity trades;CommentsClose CommentsPermalink
‘(C) reduced line losses;CommentsClose CommentsPermalink
‘(D) generation resource-sharing; andCommentsClose CommentsPermalink
‘(E) enhanced fuel diversity;CommentsClose CommentsPermalink
‘(4) reliability benefits, including satisfying reliability standards and guidelines for resource adequacy and system security;CommentsClose CommentsPermalink
‘(5) diversification of risk relating to events affecting fuel supply or generating resources in a particular region;CommentsClose CommentsPermalink
‘(6) the enhancement of competition in electricity markets and mitigation of market power;CommentsClose CommentsPermalink
‘(7) the ability to collocate facilities on existing rights-of-way;CommentsClose CommentsPermalink
‘(8) competing land use priorities, including land protected under Federal or State law;CommentsClose CommentsPermalink
‘(9) the requirements of section 217(b)(4); andCommentsClose CommentsPermalink
‘(10) the contribution of demand side management (including energy efficiency and demand response), energy storage, distributed generation resources, and smart grid investments.CommentsClose CommentsPermalink
‘(b) Definitions- In this section:CommentsClose CommentsPermalink
‘(1) HIGH-PRIORITY NATIONAL TRANSMISSION PROJECT- The term ‘high-priority national transmission project’ means an overhead or underground transmission facility, consisting of conductors or cables, towers, manhole duct systems, phase shifting transformers, reactors, capacitors, and any ancillary facilities and equipment necessary for the proper operation of the facility, that--CommentsClose CommentsPermalink
‘(A)(i) operates at or above a voltage of--CommentsClose CommentsPermalink
‘(I) 345 kilovolts alternating current; orCommentsClose CommentsPermalink
‘(II) 300 kilovolts direct current;CommentsClose CommentsPermalink
‘(ii) is a very high current conductor or superconducting cable that operates at or above a power equivalent to the power of a conventional transmission cable operating at or above 345 kilovolts alternating current or 300 kilovolts direct current; orCommentsClose CommentsPermalink
‘(iii) is a renewable feeder line that transmits electricity directly to a transmission facility under clause (i) or (ii); andCommentsClose CommentsPermalink
‘(B) is included in a regional plan pursuant to subsection (c).CommentsClose CommentsPermalink
‘(2) INDIAN LAND- The term ‘Indian land’ means land--CommentsClose CommentsPermalink
‘(A) the title to which is held by the United States in trust for an Indian tribe or individual Indian; orCommentsClose CommentsPermalink
‘(B) that is held by an Indian tribe or individual Indian subject to a restriction by the United States against alienation or encumbrance.CommentsClose CommentsPermalink
‘(3) INDIAN TRIBE- The term ‘Indian tribe’ means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation (as defined in or established pursuant to the Alaska Native Claims Settlement Act (
43 U.S.C. 1601 et seq.)), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.CommentsClose CommentsPermalink‘(4) LOAD-SERVING ENTITY- Except as otherwise provided in this section, the term ‘load-serving entity’ means any person, Federal, State, or local agency or instrumentality, or electric cooperative that delivers electric energy to end-use customers.CommentsClose CommentsPermalink
‘(5) LOCATION-CONSTRAINED RESOURCE-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘location-constrained resource’ means a low-carbon resource used to produce electricity that is geographically constrained such that the resource cannot be relocated to an existing transmission line.CommentsClose CommentsPermalink
‘(B) INCLUSIONS- The term ‘location-constrained resource’ includes the following types of resources described in subparagraph (A):CommentsClose CommentsPermalink
‘(i) Renewable energy, including offshore resources.CommentsClose CommentsPermalink
‘(ii) A fossil fuel electricity plant equipped with carbon capture technology that is located at a site that is appropriate for carbon storage or beneficial reuse.CommentsClose CommentsPermalink
‘(6) RENEWABLE ENERGY- The term ‘renewable energy’ means electric energy generated from--CommentsClose CommentsPermalink
‘(A) solar energy;CommentsClose CommentsPermalink
‘(B) wind energy;CommentsClose CommentsPermalink
‘(C) marine and hydrokinetic renewable energy;CommentsClose CommentsPermalink
‘(D) geothermal energy;CommentsClose CommentsPermalink
‘(E) hydropower;CommentsClose CommentsPermalink
‘(F) biomass; orCommentsClose CommentsPermalink
‘(G) landfill gas.CommentsClose CommentsPermalink
‘(7) RENEWABLE FEEDER LINE- The term ‘renewable feeder line’ means a transmission line that--CommentsClose CommentsPermalink
‘(A) operates at a voltage of 100 kilovolts or greater; andCommentsClose CommentsPermalink
‘(B) is identified in the applicable Interconnection-wide transmission plan or by the Commission as a facility that is to be developed to facilitate collection of electric energy produced by renewable energy.CommentsClose CommentsPermalink
‘(8) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
‘(c) Plans for National Interstate Transmission System-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Commission shall coordinate regional planning to ensure that regional plans are integrated into an Interconnection-wide transmission plan with respect to high-priority national transmission projects, that achieves the policy established under subsection (a).CommentsClose CommentsPermalink
‘(2) PLANNING PRINCIPLES-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Not later than 180 days after the date of enactment of the American Clean Energy Leadership Act of 2009, the Commission shall issue, by rule, after notice and opportunity for comment, national electricity grid planning principles pursuant to the policy established under subsection (a).CommentsClose CommentsPermalink
‘(B) CONTENT- The principles shall--CommentsClose CommentsPermalink
‘(i) address how the utilities should fully incorporate consideration of the need for high-priority national transmission projects into planning efforts;CommentsClose CommentsPermalink
‘(ii) address how the utilities should coordinate with each other, States, Indian tribes, and other planning efforts in the applicable Interconnection to effectively develop an Interconnection-wide analysis to identify needed additions or modifications to high-priority national transmission projects, with particular attention to identifying needs that can be most efficiently and effectively addressed with high-priority national transmission projects that cross multiple utilities, Regional Transmission Organizations, or Independent System Operators;CommentsClose CommentsPermalink
‘(iii)(I) address alternatives to high-priority national transmission projects, based on the factors described in subparagraph (C)(iii); andCommentsClose CommentsPermalink
‘(II) determine whether alternative investments can provide a more expedient means of improving electricity system capacity or reliability or reduced costs for end-users; andCommentsClose CommentsPermalink
‘(iv) include mechanisms for soliciting input from the Secretary, Federal transmitting utilities, the Secretary of the Interior, States, Indian tribes, electric reliability organizations, regional entities, entities described in section 201(f), generators, load-serving entities, other interested parties, and the public.CommentsClose CommentsPermalink
‘(C) FACTORS- Plans for the development and improvement of high-priority national transmission projects into a national high-capacity transmission grid shall take into consideration--CommentsClose CommentsPermalink
‘(i) the location of load centers;CommentsClose CommentsPermalink
‘(ii) the location of generation and potential generation development, including location-constrained resources;CommentsClose CommentsPermalink
‘(iii) existing and potential demand side management (including energy efficiency and demand response), energy storage, distributed generation resources, and smart grid investments;CommentsClose CommentsPermalink
‘(iv) the plans of Regional Transmission Organizations, Independent System Operators, State authorities, Indian tribes, transmission owners, load-serving entities, and others in the region;CommentsClose CommentsPermalink
‘(v) the needs and long-term rights described in section 217(b); andCommentsClose CommentsPermalink
‘(vi) costs to consumers of high priority national transmission projects, including considering the cost of reasonable alternatives.CommentsClose CommentsPermalink
‘(3) SUBMISSION OF PLANS-CommentsClose CommentsPermalink
‘(A) IN GENERAL-CommentsClose CommentsPermalink
‘(i) IN GENERAL- One or more public utilities, transmitting utilities, Regional Transmission Organizations, Independent System Operators, regional entities (as defined in section 215(a)), or other multistate organizations or entities (including entities described in section 201(f)) may develop a regional plan relating to 1 or more high-priority national transmission projects that is consistent with the planning principles established by the Commission.CommentsClose CommentsPermalink
‘(ii) OTHER PLANS-CommentsClose CommentsPermalink
‘(I) IN GENERAL- Any public utility or transmitting utility that does not participate in 1 of the regional plans developed under clause (i) shall develop its own plan relating to any high priority national transmission project planned for the system of the utility.CommentsClose CommentsPermalink
‘(II) PLANNING PRINCIPLES- The plan shall be consistent with the planning principles established by the Commission.CommentsClose CommentsPermalink
‘(iii) TIMING- Any plan developed under clause (i) or (ii) shall be submitted to the Commission--CommentsClose CommentsPermalink
‘(I) as soon as practicable, but not later than 2 years, after the date of enactment of the American Clean Energy Leadership Act of 2009; andCommentsClose CommentsPermalink
‘(II) periodically thereafter as prescribed by the Commission.CommentsClose CommentsPermalink
‘(B) COORDINATION-CommentsClose CommentsPermalink
‘(i) JOINT SUBMISSIONS- The requirements of subparagraph (A) may be satisfied by a joint submission.CommentsClose CommentsPermalink
‘(ii) SINGLE INTERCONNECTION-WIDE PLAN- The Commission shall encourage coordination that would permit submission of a single Interconnection-wide plan for high priority national transmission projects.CommentsClose CommentsPermalink
‘(C) MODIFICATIONS- The Commission may require modification of a submitted plan to the extent that the Commission determines that the modification is necessary--CommentsClose CommentsPermalink
‘(i) to reconcile inconsistencies between plans submitted; orCommentsClose CommentsPermalink
‘(ii) to achieve the policy goals established under subsection (a).CommentsClose CommentsPermalink
‘(4) APPLICABILITY- The transmission planning principles and requirements of this subsection shall apply to each transmission owner and transmission planning entity in the United States portion of the Eastern and Western Interconnections, including an entity described in section 201(f).CommentsClose CommentsPermalink
‘(d) Siting-CommentsClose CommentsPermalink
‘(1) PURPOSES- The purpose of this subsection is to ensure that high-priority national transmission projects are in the public interest and advance the policy established under subsection (a).CommentsClose CommentsPermalink
‘(2) DESIGNATION OF ELIGIBILITY- The Commission may grant an applicant that submits an application for a proposed project a designation of eligibility for consideration under this subsection if the Commission finds that the proposed project is a high-priority national transmission project.CommentsClose CommentsPermalink
‘(3) STATE REVIEW OF PROJECT SITING-CommentsClose CommentsPermalink
‘(A) IN GENERAL- No developer of a high-priority national transmission project may seek a certificate for construction under subsection (e) unless the developer first seeks authorization to construct the high-priority national transmission project under applicable State law concerning authorization and routing of transmission facilities.CommentsClose CommentsPermalink
‘(B) FEDERAL AUTHORITY- The Commission may authorize, in accordance with subsection (e), construction of a high-priority national transmission project that the Commission finds to be in the public interest and in accordance with this section if a State--CommentsClose CommentsPermalink
‘(i) fails to approve construction and authorize routing of a high-priority national transmission project not later than 1 year after the date the applicant submits a completed application for authorization to the State;CommentsClose CommentsPermalink
‘(ii) rejects the application for a high-priority national transmission project; orCommentsClose CommentsPermalink
‘(iii) authorizes the high-priority national transmission project subject to conditions that unreasonably interfere with the development of a high-priority national transmission project contrary to the purposes of this section.CommentsClose CommentsPermalink
‘(e) Construction-CommentsClose CommentsPermalink
‘(1) APPLICATION FOR CERTIFICATE-CommentsClose CommentsPermalink
‘(A) IN GENERAL- An applicant for a high-priority national transmission project may apply to the Commission for a certificate of public convenience and necessity with respect to construction of the high-priority national transmission project within a State affected by the high-priority national transmission project if the State--CommentsClose CommentsPermalink
‘(i) fails to authorize construction of the high-priority national transmission project under State law not later than 1 year after the date the developer submits a completed application for authorization to the State;CommentsClose CommentsPermalink
‘(ii) rejects the application for the high-priority national transmission project; orCommentsClose CommentsPermalink
‘(iii) authorizes the high-priority national transmission project subject to conditions that unreasonably interfere with the development of a high-priority national transmission project contrary to the purposes of this section.CommentsClose CommentsPermalink
‘(B) FORM- The application for a certificate shall be made in writing in such form and containing such information as the Commission may by regulation require.CommentsClose CommentsPermalink
‘(C) HEARING- On receipt of an application under this paragraph, the Commission--CommentsClose CommentsPermalink
‘(i) shall provide notice to interested persons and opportunity for hearing; andCommentsClose CommentsPermalink
‘(ii) may approve (with or without conditions) or disapprove the application, in accordance with paragraph (2).CommentsClose CommentsPermalink
‘(2) GRANT OF CERTIFICATE-CommentsClose CommentsPermalink
‘(A) IN GENERAL- A certificate shall be issued to a qualified applicant for a certificate authorizing the whole or partial operation, construction, acquisition, or modification covered by the application, only if the Commission determines that--CommentsClose CommentsPermalink
‘(i) the applicant is able and willing--CommentsClose CommentsPermalink
‘(I) to do the acts and to perform the service proposed; andCommentsClose CommentsPermalink
‘(II) to comply with this Act (including regulations); andCommentsClose CommentsPermalink
‘(ii) the proposed operation, construction, acquisition, or modification, to the extent authorized by the certificate, is or will be required by the present or future public convenience and necessity.CommentsClose CommentsPermalink
‘(B) TERMS AND CONDITIONS- The Commission shall have the power to attach to the issuance of a certificate under this paragraph and to the exercise of the rights granted under the certificate such reasonable terms and conditions as the public convenience and necessity may require.CommentsClose CommentsPermalink
‘(C) USE OF STATE WORK- If 1 or more States reject or fail to act on a high-priority national transmission project and the Commission has siting authority for the high-priority national transmission project under this section, the Commission shall give due weight to--CommentsClose CommentsPermalink
‘(i) the environmental record and results of the siting process of a State that did complete the siting process of the State under this section; andCommentsClose CommentsPermalink
‘(ii) the information that had been submitted by an applicant to the State under this section.CommentsClose CommentsPermalink
‘(D) EVALUATION OF ABILITIES OF APPLICANT-CommentsClose CommentsPermalink
‘(i) IN GENERAL- In evaluating the ability of an applicant described in subparagraph (A)(i), the Commission shall consider whether the financial and technical capabilities of the applicant are adequate to support construction and operation of the high-priority national transmission project proposed in the application.CommentsClose CommentsPermalink
‘(ii) JOINT OWNERSHIP PROJECTS- In evaluating applications under paragraph (1), the Commission shall consider benefits from the greater diversification of financial risk inherent in the applications involving joint ownership projects by multiple load-serving entities.CommentsClose CommentsPermalink
‘(E) PUBLIC CONVENIENCE AND NECESSITY- In making a determination with respect to public convenience and necessity described in subparagraph (A)(ii), the Commission shall--CommentsClose CommentsPermalink
‘(i) consider whether the facilities covered by an application are included in an Interconnection-wide transmission grid plan for a high-priority national transmission project developed pursuant to subsection (c); andCommentsClose CommentsPermalink
‘(ii) determine whether the facilities covered by the application are in the public interest.CommentsClose CommentsPermalink
‘(3) RIGHT OF EMINENT DOMAIN- If any holder of a certificate issued under paragraph (2) cannot acquire by contract, or is unable to agree with the owner of property on the compensation to be paid for, the necessary right-of-way to construct, operate, and maintain the high-priority national transmission project to which the certificate relates, and the necessary land or other property necessary to the proper operation of the high-priority national transmission project, the holder may acquire the right-of-way by the exercise of the right of eminent domain in--CommentsClose CommentsPermalink
‘(A) the United States district court for the district in which the property is located; orCommentsClose CommentsPermalink
‘(B) a State court.CommentsClose CommentsPermalink
‘(4) STATE AND TRIBAL RECOMMENDATIONS- In granting a certificate under paragraph (2), the Commission shall--CommentsClose CommentsPermalink
‘(A) permit State regulatory agencies and affected Indian tribes to recommend mitigation measures, based on habitat protection, environmental considerations, or cultural site protection; andCommentsClose CommentsPermalink
‘(B)(i) incorporate those identified mitigation measures as conditions on the certificate; orCommentsClose CommentsPermalink
‘(ii) if the Commission determines that a recommended mitigation measure is inconsistent with the purposes of this section, infeasible, or not cost-effective--CommentsClose CommentsPermalink
‘(I) consult with State regulatory agencies and affected Indian tribes to seek to resolve the issue;CommentsClose CommentsPermalink
‘(II) incorporate as conditions on the certificate such recommended mitigation measures as are determined to be appropriate by the Commission, based on consultation by the Commission with State regulatory agencies and affected Indian tribes, the purposes of this section, and the record before the Commission; andCommentsClose CommentsPermalink
‘(III) if, after consultation, the Commission does not adopt in whole or in part a recommendation of an agency or affected Indian tribe, publish a statement of a finding that the adoption of the recommendation is infeasible, not cost-effective, or inconsistent with this section or other applicable provisions of law.CommentsClose CommentsPermalink
‘(5) STATE OR LOCAL AUTHORIZATIONS- An applicant receiving a certificate under this subsection with respect to construction or modification of a high-priority national transmission project in a State shall not require a separate siting authorization from the State or any local authority within the State.CommentsClose CommentsPermalink
‘(6) RIGHTS-OF-WAY OVER INDIAN LAND- Notwithstanding paragraph (3), in the case of siting, construction, operation, and maintenance of a transmission facility to be located on or over Indian land, a certificate holder under this section shall comply with the requirements of Federal law for obtaining rights-of-way on or over Indian land.CommentsClose CommentsPermalink
‘(f) Coordination of Federal Authorizations for Transmission Facilities-CommentsClose CommentsPermalink
‘(1) DEFINITION OF FEDERAL AUTHORIZATION- In this subsection, the term ‘Federal authorization’ means any authorization required under Federal law in order to site a transmission facility on Federal land, including such permits, special use authorizations, certifications, opinions, or other approvals as may be required under Federal law in order to site a transmission facility.CommentsClose CommentsPermalink
‘(2) LEAD AGENCY- If a Federal authorization for a high-priority national transmission project involves land under the jurisdiction of the Department of the Interior and any other Federal agency, the Secretary of the Interior shall act as the lead agency for purposes of coordinating all applicable Federal authorizations and related environmental reviews.CommentsClose CommentsPermalink
‘(3) COORDINATION- To the maximum extent practicable under applicable Federal law, the Secretary of the Interior shall coordinate the Federal authorization and review process under this subsection with the Commission, and with any Indian tribes, multistate entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions.CommentsClose CommentsPermalink
‘(4) MILESTONES AND DEADLINES-CommentsClose CommentsPermalink
‘(A) IN GENERAL- As the lead agency, the Secretary of the Interior, in consultation with the Commission and any other agency responsible for Federal authorizations and, as appropriate, with Indian tribes, multistate entities, and State agencies that are willing to coordinate their own separate permitting and environmental reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and Federal authorization decisions relating to, the proposed high-priority national transmission project.CommentsClose CommentsPermalink
‘(B) DEADLINE- The Secretary of the Interior shall ensure that, once an application has been submitted with such data as the Commission and the Secretaries with jurisdiction over the affected land consider necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed not later than 1 year after the date of submission.CommentsClose CommentsPermalink
‘(C) PREAPPLICATION INFORMATION- The Secretary of the Interior, in consultation with the Commission, shall provide an expeditious preapplication mechanism for prospective applicants to confer with the agencies involved to have each such agency determine and communicate to the prospective applicant not later than 60 days after the prospective applicant submits a request for such information concerning--CommentsClose CommentsPermalink
‘(i) the likelihood of approval for a potential facility; andCommentsClose CommentsPermalink
‘(ii) key issues of concern to the agencies and public.CommentsClose CommentsPermalink
‘(5) ENVIRONMENTAL REVIEW DOCUMENT-CommentsClose CommentsPermalink
‘(A) IN GENERAL- As lead agency, the Secretary of the Interior, in consultation with the Commission and any affected agency, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the proposed high-priority national transmission project under Federal law.CommentsClose CommentsPermalink
‘(B) STREAMLINING- The Secretary of the Interior and the Secretary of Agriculture, in consultation with the Commission, shall streamline the review and permitting of transmission within corridors designated under section 503 of the Federal Land Policy and Management Act of 1976 (
43 U.S.C. 1763 ) or section 368 of the Energy Policy Act of 2005 (42 U.S.C. 15926 ) by fully taking into account prior analyses and decisions relating to the corridors.CommentsClose CommentsPermalink‘(C) COMMENTS- If the high-priority national transmission project includes Federal land that is not under the jurisdiction of the Department of the Interior, the document shall include comments made by the Secretary with jurisdiction over the affected land on matters necessary for the protection of the land or required under applicable law.CommentsClose CommentsPermalink
‘(6) ISSUANCE OR DENIAL OF AUTHORIZATION BY PRESIDENT-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Subject to paragraph (7), if any agency has denied a Federal authorization required for a transmission facility within an energy right-of-way corridor on Federal land designated pursuant to section 368 of the Energy Policy Act of 2005 (
42 U.S.C. 15926 ), or has failed to act by the deadline established by the Secretary of the Interior pursuant to this section for deciding whether to issue the authorization, the applicant or any State in which the facility would be located may file an appeal with the President, who shall, in consultation with the affected agency, review the denial or failure to take action on the pending application.CommentsClose CommentsPermalink‘(B) OPTIONS- Based on the overall record and in consultation with the affected agency, the President may--CommentsClose CommentsPermalink
‘(i) issue the necessary authorization with any appropriate conditions; orCommentsClose CommentsPermalink
‘(ii) deny the application.CommentsClose CommentsPermalink
‘(C) DEADLINE- The President shall issue a decision not later than 90 days after the date of the filing of the appeal.CommentsClose CommentsPermalink
‘(D) FEDERAL REQUIREMENTS- In making a decision under this paragraph, the President shall comply with applicable requirements of Federal law, including any requirements of--CommentsClose CommentsPermalink
‘(i) the National Forest Management Act of 1976 (
16 U.S.C. 1600 et seq.);CommentsClose CommentsPermalink‘(ii) the Endangered Species Act of 1973 (
16 U.S.C. 1531 et seq.);CommentsClose CommentsPermalink‘(iii) the Federal Water Pollution Control Act (
33 U.S.C. 1251 et seq.);CommentsClose CommentsPermalink‘(iv) the National Environmental Policy Act of 1969 (
42 U.S.C. 4321 et seq.); andCommentsClose CommentsPermalink‘(v) the Federal Land Policy and Management Act of 1976 (
43 U.S.C. 1701 et seq.).CommentsClose CommentsPermalink‘(7) ISSUANCE OR DENIAL OF AUTHORIZATION BY PRESIDENT- Paragraph (6) shall not apply to--CommentsClose CommentsPermalink
‘(A) a unit of the National Park System;CommentsClose CommentsPermalink
‘(B) a unit of the National Wildlife Refuge System;CommentsClose CommentsPermalink
‘(C) a component of the National Wild and Scenic Rivers System;CommentsClose CommentsPermalink
‘(D) a component of the National Trails System;CommentsClose CommentsPermalink
‘(E) a component of the National Wilderness Preservation System;CommentsClose CommentsPermalink
‘(F) a National Monument;CommentsClose CommentsPermalink
‘(G) any part of the National Landscape Conservation System;CommentsClose CommentsPermalink
‘(H) a National Preserve;CommentsClose CommentsPermalink
‘(I) a National Scenic Area; orCommentsClose CommentsPermalink
‘(J) a National Recreation Area.CommentsClose CommentsPermalink
‘(8) ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND-CommentsClose CommentsPermalink
‘(A) IN GENERAL- In carrying out this subsection, the Secretary with jurisdiction over the land shall, to the maximum extent practicable, use the energy right-of-way corridors designated in accordance with section 368 of the Energy Policy Act of 2005 (
42 U.S.C. 15926 ).CommentsClose CommentsPermalink‘(B) ADDITIONAL CORRIDORS- If the Secretary is unable to use an energy right-of-way corridor described in subparagraph (A), the Secretary shall establish an additional corridor in accordance with section 368(c) of the Energy Policy Act of 2005 (
42 U.S.C. 15926(c) ).CommentsClose CommentsPermalink‘(9) DURATION-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Each Federal land use authorization for an electricity transmission facility shall be issued--CommentsClose CommentsPermalink
‘(i) for a duration, as determined by the Secretary with jurisdiction over the land, commensurate with the anticipated use of the facility;CommentsClose CommentsPermalink
‘(ii) with appropriate authority to manage the right-of-way for reliability and environmental protection; andCommentsClose CommentsPermalink
‘(iii) consistent with the Federal Land Policy and Management Act of 1976 (
43 U.S.C. 1701 et seq.) and other applicable law.CommentsClose CommentsPermalink‘(B) RENEWAL- On the expiration of the authorization (including an authorization issued before the date of enactment of the American Clean Energy Leadership Act of 2009), the authorization shall be reviewed for renewal--CommentsClose CommentsPermalink
‘(i) taking fully into account reliance on the electricity infrastructure; andCommentsClose CommentsPermalink
‘(ii) recognizing the importance of the authorization for public health, safety, and economic welfare and as a legitimate use of Federal land.CommentsClose CommentsPermalink
‘(10) CONSULTATION- In exercising the responsibilities under this section, the Secretary of the Interior and the Commission shall consult regularly with--CommentsClose CommentsPermalink
‘(A) electric reliability organizations (including related regional entities) approved by the Commission;CommentsClose CommentsPermalink
‘(B) Transmission Organizations approved by the Commission; andCommentsClose CommentsPermalink
‘(C) transmission owners and users and other interested parties.CommentsClose CommentsPermalink
‘(11) IMPLEMENTATION-CommentsClose CommentsPermalink
‘(A) REGULATIONS- Not later than 18 months after the date of enactment of the American Clean Energy Leadership Act of 2009, the Secretary of the Interior and the Commission shall issue any regulations necessary to carry out this subsection.CommentsClose CommentsPermalink
‘(B) FEDERAL STAFF AND RESOURCES- The head of each Federal agency with authority to issue a Federal authorization shall designate a senior official responsible for, and dedicate sufficient other staff and resources to ensure, full implementation of the regulations and memorandum required under this paragraph.CommentsClose CommentsPermalink
‘(g) Evaluation and Recommendations- The Commission shall--CommentsClose CommentsPermalink
‘(1) periodically evaluate whether high-priority national transmission projects are being constructed in accordance with the Interconnection-wide transmission grid plan for high-priority national transmission projects for both the Western and Eastern Interconnection areas;CommentsClose CommentsPermalink
‘(2) take any necessary actions, pursuant to applicable law, to address any identified obstacles to investment, siting, and construction of high-priority national transmission projects identified as needed under an Interconnection-wide plan; andCommentsClose CommentsPermalink
‘(3) not later than 2 years after the date of enactment of the American Clean Energy Leadership Act of 2009, submit to Congress recommendations for any further actions or authority needed to ensure the effective and timely development of--CommentsClose CommentsPermalink
‘(A) high-priority national transmission projects; andCommentsClose CommentsPermalink
‘(B) transmission projects to access regional and offshore renewable energy generation.CommentsClose CommentsPermalink
‘(h) Report of Secretary- Not later than 2 years after the date of enactment of the American Clean Energy Leadership Act of 2009, the Secretary shall submit to Congress recommendations for any further actions or authority needed to ensure the effective and timely development of--CommentsClose CommentsPermalink
‘(1) demand response;CommentsClose CommentsPermalink
‘(2) energy storage;CommentsClose CommentsPermalink
‘(3) distributed generation;CommentsClose CommentsPermalink
‘(4) energy efficiency; andCommentsClose CommentsPermalink
‘(5) other areas necessary to carry out the policy established under subsection (a).CommentsClose CommentsPermalink
‘(i) Cost Allocation-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Not later than 270 days after the date of enactment of the American Clean Energy Leadership Act of 2009, the Commission--CommentsClose CommentsPermalink
‘(A) shall establish by rule an appropriate methodology for allocation of the costs of high-priority national transmission projects, subject to the requirement that any cost allocation methodology, and any rates affected by the cost allocation methodology, shall be just, reasonable, and not unduly discriminatory or preferential;CommentsClose CommentsPermalink
‘(B) may permit allocation of costs for high-priority national transmission projects to load-serving entities within all or a part of a region, except that costs shall not be allocated to a region, or subregion, unless the costs are reasonably proportionate to measurable economic and reliability benefits;CommentsClose CommentsPermalink
‘(C) may permit allocation of costs to generators of electricity connected by a high-priority national transmission project; andCommentsClose CommentsPermalink
‘(D) shall provide for due deference to cost allocation proposals supported by broad agreement among affected States.CommentsClose CommentsPermalink
‘(2) MECHANISM FOR COLLECTION OF COSTS- The Commission shall adopt such rules and require inclusion of such provisions in transmission tariffs as are required to provide for--CommentsClose CommentsPermalink
‘(A) the efficient collection of allocated costs for development and operation of high-priority national transmission projects; andCommentsClose CommentsPermalink
‘(B) the distribution of those revenues to owners of the high-priority national transmission projects.CommentsClose CommentsPermalink
‘(j) Relationship to Other Laws-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Except as specifically provided in this section, nothing in this section affects any requirement of an environmental or historic preservation law of the United States, including--CommentsClose CommentsPermalink
‘(A) the National Environmental Policy Act of 1969 (
42 U.S.C. 4321 et seq.);CommentsClose CommentsPermalink‘(B) the Wilderness Act (
16 U.S.C. 1131 et seq.); orCommentsClose CommentsPermalink‘(C) the National Historic Preservation Act (
16 U.S.C. 470 et seq.).CommentsClose CommentsPermalink‘(2) STATE LAW- Nothing in this section precludes any person from constructing or modifying any transmission facility in accordance with State law.CommentsClose CommentsPermalink
‘(k) Transmission Rights to Support New Generation Development- Subject to section 217(b)(4), it is the policy of the United States that long-term transmission rights of firmness and duration sufficient to support generation investment (or equivalent tradable or financial long-term transmission rights), shall be available under appropriate terms and conditions to load-serving entities (as defined in section 217(a)(2)) for long-term power supply arrangements for new generation facilities using renewable energy.CommentsClose CommentsPermalink
‘(l) Resource Assessments-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Secretary shall conduct nationwide assessments to identify areas with a significant potential for the development of location-constrained resources.CommentsClose CommentsPermalink
‘(2) FORMATS- The resource assessments shall be made available to the public in multiple formats, including in a Geographical Information System compatible format.CommentsClose CommentsPermalink
‘(3) TIMING- The Secretary shall--CommentsClose CommentsPermalink
‘(A) make the initial resource assessment required under this subsection not later than 180 days after the date of enactment of the American Clean Energy Leadership Act of 2009; andCommentsClose CommentsPermalink
‘(B) refine the resource assessment on a regular basis that is consistent with regional planning cycles.CommentsClose CommentsPermalink
‘(4) TECHNICAL ASSISTANCE- The Secretary shall provide technical assistance to regional planning authorities, on request, to assist the authorities in carrying out this subsection.CommentsClose CommentsPermalink
‘(m) Congestion Studies- Not later than 1 year after the date of enactment of the American Clean Energy Leadership Act of 2009 and every 3 years thereafter, the Secretary, in consultation with affected States and Indian tribes, shall--CommentsClose CommentsPermalink
‘(1) conduct a study of electric transmission congestion; andCommentsClose CommentsPermalink
‘(2) submit to the appropriate committees of Congress a report that describes the results of the study.CommentsClose CommentsPermalink
‘(n) Applicability-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Except as otherwise provided in this subsection, the authority of the Commission under this section to approve transmission plans and to allocate costs incurred pursuant to the plans applies to all transmission providers, generators, and users, owners, and operators of the power system within the Eastern and Western Interconnections of the United States, including entities described in section 201(f).CommentsClose CommentsPermalink
‘(2) REGIONAL PLANNING ENTITIES- The Commission shall have authority over regional planning entities to the extent necessary to carry out this section.CommentsClose CommentsPermalink
‘(3) PROJECT DEVELOPERS- Nothing in this section precludes the development, subject to applicable regulatory requirements, of transmission projects that are not included in plans developed under this section.CommentsClose CommentsPermalink
‘(4) COMMISSION-APPROVED PLANNING PROCESSES- Nothing in this section affects the approval, siting, or cost allocation for a project that is authorized pursuant to planning processes that have been approved by the Commission.CommentsClose CommentsPermalink
‘(5) EXCLUSIONS- This section does not apply in the State of Alaska or Hawaii or to the Electric Reliability Council of Texas, unless the State or the Council voluntarily elects to participate in a cost allocation plan under this section.’.CommentsClose CommentsPermalink
Subtitle C--Federal Renewable Electricity StandardCommentsClose CommentsPermalink
Subtitle C--Federal Renewable Electricity StandardCommentsClose CommentsPermalink
SEC. 131. SENSE OF CONGRESS ON RENEWABLE ENERGY AND ENERGY EFFICIENCY.
It is the sense of Congress that the Federal Government should continue to support the use and expansion of renewable energy and energy efficiency in--CommentsClose CommentsPermalink
(1) the production and use of energy;CommentsClose CommentsPermalink
(2) the reduction of greenhouse gas emissions; andCommentsClose CommentsPermalink
(3) the reduction of dependence on foreign oil.CommentsClose CommentsPermalink
SEC. 132. FEDERAL RENEWABLE ELECTRICITY STANDARD.
(a) In General- Title VI of the Public Utility Regulatory Policies Act of 1978 (
‘SEC. 610. FEDERAL RENEWABLE ELECTRICITY STANDARD.
‘(a) Definitions- In this section:CommentsClose CommentsPermalink
‘(1) AFFILIATE- The term ‘affiliate’ when used with respect to a person, means another person that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, such person, as determined under regulations issued by the Secretary.CommentsClose CommentsPermalink
‘(2) BASE QUANTITY OF ELECTRICITY-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘base quantity of electricity’ means the total quantity of electricity sold by an electric utility to electric consumers in a calendar year.CommentsClose CommentsPermalink
‘(B) EXCLUSIONS- The term ‘base quantity of electricity’ does not include--CommentsClose CommentsPermalink
‘(i) electricity generated by a hydroelectric facility (including a pumped storage facility but excluding qualified hydropower) owned by an electric utility or sold under contract or rate order to an electric utility to meet the needs of the retail customers of the utility;CommentsClose CommentsPermalink
‘(ii) electricity generated through the incineration of municipal solid waste owned by an electric utility or sold under contract or rate order to an electric utility to meet the needs of the retail customers of the utility;CommentsClose CommentsPermalink
‘(iii) the quantity of electricity generated by a fossil-fuel facility that is equal to the proportion of greenhouse gases produced by such a unit that are captured and geologically sequestered; orCommentsClose CommentsPermalink
‘(iv)(I) electricity generated by a nuclear generating unit placed in service after the date of enactment of this section; orCommentsClose CommentsPermalink
‘(II) additional energy generated by an existing nuclear facility as a result of efficiency improvements or capacity additions made on or after the date of enactment of this section.CommentsClose CommentsPermalink
‘(3) BIOMASS- The term ‘biomass’ has the meaning given the term in section 203(b) of the Energy Policy Act of 2005 (
42 U.S.C. 15852(b) ).CommentsClose CommentsPermalink‘(4) DISTRIBUTED GENERATION FACILITY- The term ‘distributed generation facility’ means a facility at or near a customer site that provides electric energy to 1 or more customers for purposes other than resale other than to a utility through a net metering arrangement.CommentsClose CommentsPermalink
‘(5) GEOTHERMAL ENERGY- The term ‘geothermal energy’ means energy derived from a geothermal deposit (within the meaning of section 613(e)(2) of the Internal Revenue Code of 1986).CommentsClose CommentsPermalink
‘(6) INCREMENTAL COST OF COMPLIANCE-CommentsClose CommentsPermalink
‘(A) IN GENERAL - The term ‘incremental cost of compliance’ means--CommentsClose CommentsPermalink
‘(i) the costs attributable to all retail sales of electricity incurred in a year by an electric utility to--CommentsClose CommentsPermalink
‘(I) generate renewable energy eligible for Federal renewable energy credits;CommentsClose CommentsPermalink
‘(II) acquire Federal renewable energy credits; orCommentsClose CommentsPermalink
‘(III) make alternative compliance payments in order to comply with the requirements of subsection (b); lessCommentsClose CommentsPermalink
‘(ii)(I) the costs the electric utility would have incurred to serve all of the retail customers of that electric utility in that year to generate or acquire additional electricity not eligible for renewable energy credits if the requirements of subsection (b) did not apply to the electric utility; andCommentsClose CommentsPermalink
‘(II) the costs of compliance with any comparable State renewable requirement.CommentsClose CommentsPermalink
‘(B) COST OF ELECTRICITY- In calculating the incremental cost of compliance of an electric utility under this section, the Secretary shall take into account the reduction, if any, on the cost of electricity generated with fossil fuels associated with increased reliance on renewable electric energy generation.CommentsClose CommentsPermalink
‘(7) INCREMENTAL GEOTHERMAL PRODUCTION-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘incremental geothermal production’ means, for any year, the excess of--CommentsClose CommentsPermalink
‘(i) the total kilowatt hours of electricity produced from a facility (including a distributed generation facility) using geothermal energy; overCommentsClose CommentsPermalink
‘(ii) the average number of kilowatt hours produced annually at the facility for 5 of the previous 7 calendar years before the date of enactment of this section after eliminating the highest and the lowest kilowatt hour production years in that 7-year period.CommentsClose CommentsPermalink
‘(B) SPECIAL RULE- A facility described in subparagraph (A) that was placed in service at least 7 years before the date of enactment of this section shall, commencing with the year in which that date of enactment occurs, reduce the amount calculated under subparagraph (A)(ii) each year, on a cumulative basis, by the average percentage decrease in the annual kilowatt hour production for the 7-year period described in subparagraph (A)(ii) with such cumulative sum, but not to exceed 30 percent.CommentsClose CommentsPermalink
‘(8) INCREMENTAL HYDROPOWER-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘incremental hydropower’ means additional energy generated as a result of efficiency improvements or capacity additions made on or after January 1, 1992.CommentsClose CommentsPermalink
‘(B) EXCLUSION- The term ‘incremental hydropower’ does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions.CommentsClose CommentsPermalink
‘(C) MEASUREMENT AND CERTIFICATION- Efficiency improvements and capacity additions referred to in subparagraph (A) shall be--CommentsClose CommentsPermalink
‘(i) measured on the basis of the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility; andCommentsClose CommentsPermalink
‘(ii) certified by the Secretary or the Federal Energy Regulatory Commission.CommentsClose CommentsPermalink
‘(9) INDIAN LAND- The term ‘Indian land’ has the meaning given the term in section 2601 of the Energy Policy Act of 1992 (
25 U.S.C. 3501 ).CommentsClose CommentsPermalink‘(10) QUALIFIED HYDROPOWER-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘qualified hydropower’ means--CommentsClose CommentsPermalink
‘(i) incremental hydropower;CommentsClose CommentsPermalink
‘(ii) additions of capacity made on or after January 1, 2001, or the effective commencement date of an existing applicable State renewable electricity standard program at an existing nonhydroelectric dam, if--CommentsClose CommentsPermalink
‘(I) the hydroelectric project installed on the nonhydroelectric dam--CommentsClose CommentsPermalink
‘(aa) is licensed by the Federal Energy Regulatory Commission, or is exempt from licensing, and is in compliance with the terms and conditions of the license or exemption; andCommentsClose CommentsPermalink
‘(bb) meets all other applicable environmental, licensing, and regulatory requirements, including applicable fish passage requirements;CommentsClose CommentsPermalink
‘(II) the nonhydroelectric dam--CommentsClose CommentsPermalink
‘(aa) was placed in service before the date of enactment of this section;CommentsClose CommentsPermalink
‘(bb) was operated for flood control, navigation, or water supply purposes; andCommentsClose CommentsPermalink
‘(cc) did not produce hydroelectric power as of the date of enactment of this section; andCommentsClose CommentsPermalink
‘(III) the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving the environmental quality of the affected waterway, as certified by the Federal Energy Regulatory Commission; andCommentsClose CommentsPermalink
‘(iii) in the case of the State of Alaska--CommentsClose CommentsPermalink
‘(I) energy generated by a small hydroelectric facility that produces less than 50 megawatts;CommentsClose CommentsPermalink
‘(II) energy from pumped storage; andCommentsClose CommentsPermalink
‘(III) energy from a lake tap.CommentsClose CommentsPermalink
‘(B) STANDARDS- Nothing in this paragraph or the application of this paragraph shall affect the standards under which the Federal Energy Regulatory Commission issues licenses for and regulates hydropower projects under part I of the Federal Power Act (
16 U.S.C. 791a et seq.).CommentsClose CommentsPermalink‘(11) QUALIFIED WASTE-TO-ENERGY- The term ‘qualified waste-to-energy’ means energy from the combustion of post-recycled municipal solid waste, or from the gasification or pyrolization of such waste and the combustion of the resulting gas at the same facility, if the owner or operator of the facility generating electricity from the energy provides to the Commission, on an annual basis--CommentsClose CommentsPermalink
‘(A) a certification that the facility is in compliance with all applicable Federal and State environmental permits;CommentsClose CommentsPermalink
‘(B) in the case of a facility that commences operation before the date of enactment of this section, a certification that the facility meets emissions standards promulgated under section 112 or 129 of the Clean Air Act (
42 U.S.C. 7412 , 7429) that apply as of the date of enactment of this section to new facilities within the relevant source category; andCommentsClose CommentsPermalink‘(C) in the case of the combustion, pyrolization, or gasification of municipal solid waste, a certification that each local government unit from which such waste originates operates, participates in the operation of, contracts for, or otherwise provides for, recycling services for residents of the local government unit.CommentsClose CommentsPermalink
‘(12) RENEWABLE ENERGY- The term ‘renewable energy’ means electric energy generated at a facility (including a distributed generation facility) from--CommentsClose CommentsPermalink
‘(A) solar, wind, or geothermal energy or ocean energy;CommentsClose CommentsPermalink
‘(B) biomass;CommentsClose CommentsPermalink
‘(C) landfill gas;CommentsClose CommentsPermalink
‘(D) qualified hydropower;CommentsClose CommentsPermalink
‘(E) marine and hydrokinetic renewable energy (as defined in section 632 of the Energy Independence and Security Act of 2007 (
42 U.S.C. 17211 ));CommentsClose CommentsPermalink‘(F) incremental geothermal production;CommentsClose CommentsPermalink
‘(G) coal-mined methane;CommentsClose CommentsPermalink
‘(H) qualified waste-to-energy; orCommentsClose CommentsPermalink
‘(I) another renewable energy source based on innovative technology, as determined by the Secretary through rulemaking.CommentsClose CommentsPermalink
‘(b) Renewable Energy and Energy Efficiency Requirement-CommentsClose CommentsPermalink
‘(1) REQUIREMENT-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Subject to subparagraph (B), each electric utility that sells electricity to electric consumers for a purpose other than resale shall obtain a percentage of the base quantity of electricity the electric utility sells to electric consumers in any calendar year from renewable energy or energy efficiency.CommentsClose CommentsPermalink
‘(B) PERCENTAGE- Except as provided in section 611, the percentage obtained in a calendar year under subparagraph (A) shall not be less than the amount specified in the following table:CommentsClose CommentsPermalink
---------------------------------------------------------CommentsClose CommentsPermalink
---------------------------------------------------------CommentsClose CommentsPermalink
‘Calendar year: Minimum annual percentage: CommentsClose CommentsPermalink
2011 through 2013 3.0 CommentsClose CommentsPermalink
2014 through 2016 6.0 CommentsClose CommentsPermalink
2017 through 2018 9.0 CommentsClose CommentsPermalink
2019 through 2020 12.0 CommentsClose CommentsPermalink
2021 through 2039 15.0 CommentsClose CommentsPermalink
---------------------------------------------------------CommentsClose CommentsPermalink
‘(2) MEANS OF COMPLIANCE- An electric utility shall meet the requirements of paragraph (1) by--CommentsClose CommentsPermalink
‘(A) submitting to the Secretary renewable energy credits issued under subsection (c);CommentsClose CommentsPermalink
‘(B) submitting Federal energy efficiency credits issued under subsection (i), except that those credits may not be used to meet more than 26.67 percent of the requirements under paragraph (1) in any calendar year;CommentsClose CommentsPermalink
‘(C) making alternative compliance payments to the Secretary at the rate of 2.1 cents per kilowatt hour (as adjusted for inflation under subsection (g)) if the electric utility does not elect to petition the Secretary to waive the requirements under subsection (d)(3)(C); orCommentsClose CommentsPermalink
‘(D) a combination of activities described in subparagraphs (A), (B), and (C).CommentsClose CommentsPermalink
‘(3) PHASE-IN- The Secretary shall prescribe, by regulation, a reasonable phase-in of the requirements of paragraph (1) as the requirements apply to an electric utility that becomes subject to this section on or after January 1, 2013.CommentsClose CommentsPermalink
‘(c) Federal Renewable Energy and Energy Efficiency Credit Trading Programs-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Not later than January 1, 2011, the Secretary shall establish a Federal renewable energy credit trading program, and a Federal energy efficiency credit trading program, under which electric utilities shall submit to the Secretary Federal renewable energy credits and Federal energy efficiency credits to certify the compliance of the electric utilities with subsection (b)(1).CommentsClose CommentsPermalink
‘(2) ADMINISTRATION- As part of the program, the Secretary shall--CommentsClose CommentsPermalink
‘(A) issue renewable energy credits to generators of electric energy from renewable energy, regardless of whether the energy is transmitted over the national interstate transmission system;CommentsClose CommentsPermalink
‘(B) to the extent that renewable sources of electricity are used in combination with other sources of energy, issue credits only to the extent that the electricity generated is from renewable resources;CommentsClose CommentsPermalink
‘(C) issue renewable energy credits to electric utilities associated with State renewable electricity standard compliance mechanisms pursuant to subsection (h);CommentsClose CommentsPermalink
‘(D) issue energy efficiency credits pursuant to subsection (i);CommentsClose CommentsPermalink
‘(E) subject to subparagraph (F), ensure that a kilowatt hour, including the associated renewable energy credit or energy efficiency credit, shall be used only once for purposes of compliance with this Act;CommentsClose CommentsPermalink
‘(F) allow double credits for generation from facilities on Indian land, and triple credits for generation from small renewable distributed generators (meaning those no larger than 1 megawatt), except that no distributed renewable generation facilities on Indian land shall receive a greater number of credits than triple credits;CommentsClose CommentsPermalink
‘(G) allow triple credits for generation of energy from algae;CommentsClose CommentsPermalink
‘(H) ensure that, with respect to a purchaser that, as of the date of enactment of this section, has a purchase agreement from a renewable energy facility placed in service before that date, the credit associated with the generation of renewable energy under the contract is issued to the purchaser of the electric energy to the extent that the contract does not already provide for the allocation of the Federal credit; andCommentsClose CommentsPermalink
‘(I) issue tradeable renewable energy credits for the useful electric and thermal output from a facility that produces the output from biomass, using a system under which--CommentsClose CommentsPermalink
‘(i) in the case of efficiency that is less than 50 percent, 1 renewable energy credit is awarded;CommentsClose CommentsPermalink
‘(ii) in the case of efficiency that is 50 percent or more but less than 70 percent, 1.1 renewable energy credits are awarded for the same unit output;CommentsClose CommentsPermalink
‘(iii) in the case of efficiency that is 70 percent or more but less than 90 percent, 1.25 renewable energy credits are awarded for the same unit output; andCommentsClose CommentsPermalink
‘(iv) in the case of efficiency that is 90 percent or more, 1.5 renewable energy credits are awarded for the same unit output.CommentsClose CommentsPermalink
‘(3) DURATION- A credit described in subparagraph (A), (B), (C), or (D) of paragraph (2) may only be used for compliance with this section during the 3-year period beginning on the date of issuance of the credit.CommentsClose CommentsPermalink
‘(4) TRANSFERS- An electric utility that holds credits in excess of the quantity of credits needed to comply with subsection (b) may transfer the credits to another electric utility in the same utility holding company system.CommentsClose CommentsPermalink
‘(5) DELEGATION OF MARKET FUNCTION-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The Secretary may delegate to--CommentsClose CommentsPermalink
‘(i) an appropriate market-making entity the administration of a national renewable energy credit market and a national energy efficiency credit market for purposes of creating a transparent national market for the sale or trade of renewable energy credits and energy efficiency credits; andCommentsClose CommentsPermalink
‘(ii) regional entities the tracking of dispatch of renewable generation.CommentsClose CommentsPermalink
‘(B) ADMINISTRATION- Any delegation under subparagraph (A) shall ensure that the tracking and reporting of information concerning the dispatch of renewable generation is transparent, verifiable, and independent of any generation or load interests with obligations under this section. .CommentsClose CommentsPermalink
‘(d) Enforcement-CommentsClose CommentsPermalink
‘(1) CIVIL PENALTIES- Any electric utility that fails to meet the requirements of subsection (b) shall be subject to a civil penalty.CommentsClose CommentsPermalink
‘(2) AMOUNT OF PENALTY- The amount of the civil penalty shall be equal to the product obtained by multiplying--CommentsClose CommentsPermalink
‘(A) the number of kilowatt-hours of electric energy sold to electric consumers in violation of subsection (b); byCommentsClose CommentsPermalink
‘(B) 200 percent of the value of the alternative compliance payment, as adjusted for inflation under subsection (g).CommentsClose CommentsPermalink
‘(3) MITIGATION OR WAIVER-CommentsClose CommentsPermalink
‘(A) PENALTY-CommentsClose CommentsPermalink
‘(i) IN GENERAL- The Secretary may mitigate or waive a civil penalty under this subsection if the electric utility is unable to comply with subsection (b) due to a reason outside of the reasonable control of the electric utility.CommentsClose CommentsPermalink
‘(ii) AMOUNT- The Secretary shall reduce the amount of any penalty determined under paragraph (2) by the amount paid by the electric utility to a State for failure to comply with the requirement of a State renewable energy program if the State requirement is greater than the applicable requirement of subsection (b).CommentsClose CommentsPermalink
‘(B) REQUIREMENT- The Secretary may waive the requirements of subsection (b) for a period of up to 5 years with respect to an electric utility if the Secretary determines that the electric utility cannot meet the requirements due to a hurricane, tornado, fire, flood, earthquake, ice storm, or other natural disaster or act of God beyond the reasonable control of the utility.CommentsClose CommentsPermalink
‘(C) RATEPAYER PROTECTION- Effective beginning June 1, 2010, and not later than June 1 of each year thereafter, an electric utility may petition the Secretary to waive, for the following compliance year, all or part of the requirements of subsection (b) in order to limit the rate impact of the incremental cost of compliance of the electric utility to not more than 4 percent per retail customer in any year.CommentsClose CommentsPermalink
‘(D) VARIANCE- A State public utility commission or electric utility may submit an application to the Secretary that requests a variance from the requirements of subsection (b) for 1 or more calendar years (including suspension or reduction of the requirements) on the basis of transmission constraints preventing delivery of service.CommentsClose CommentsPermalink
‘(4) PROCEDURE FOR ASSESSING PENALTY- The Secretary shall assess a civil penalty under this subsection in accordance with the procedures prescribed by section 333(d) of the Energy Policy and Conservation Act (
42 U.S.C. 6303(d) ).CommentsClose CommentsPermalink‘(e) Alternative Compliance Payments-CommentsClose CommentsPermalink
‘(1) IN GENERAL- An electric utility may satisfy the requirements of subsection (b), in whole or in part, by submitting in accordance with this subsection, in lieu of each Federal renewable electricity credit or megawatt hour of demonstrated total annual electricity savings that would otherwise be due, a payment equal to the amount required under subsection (b) in accordance with such regulations as the Secretary may promulgate.CommentsClose CommentsPermalink
‘(2) PAYMENT TO STATE FUNDS- Payments made under this subsection shall be made directly to the State in which the electric utility is located, if the payments are deposited directly into a fund within the treasury of the State for use in accordance with paragraph (3).CommentsClose CommentsPermalink
‘(3) USE OF GRANTS- The Governor of any State may expend amounts in a State renewable energy escrow account solely for purposes of--CommentsClose CommentsPermalink
‘(A) increasing the quantity of electric energy produced from a renewable energy source in the State, including nuclear and advanced coal technologies for carbon capture and sequestration;CommentsClose CommentsPermalink
‘(B) promoting the deployment and use of electric drive vehicles in the State, including the development of electric drive vehicles and batteries; andCommentsClose CommentsPermalink
‘(C) offsetting the costs of carrying out this section paid by electric consumers in the State through--CommentsClose CommentsPermalink
‘(i) direct grants to electric consumers; orCommentsClose CommentsPermalink
‘(ii) energy efficiency investments.CommentsClose CommentsPermalink
‘(4) INFORMATION AND REPORTS- As a condition of providing payments to a State under this subsection, the Secretary may require the Governor to keep such accounts or records, and furnish such information and reports, as the Secretary determines are necessary and appropriate for determining compliance with this subsection.CommentsClose CommentsPermalink
‘(f) Exemptions- During any calendar year, this section shall not apply to an electric utility--CommentsClose CommentsPermalink
‘(1) that sold less than 4,000,000 megawatt-hours of electric energy to electric consumers during the preceding calendar year, except that sales to an affiliate, lessee, or tenant of the electric utility shall not be treated as sales to electric consumers under this paragraph; orCommentsClose CommentsPermalink
‘(2) in Hawaii.CommentsClose CommentsPermalink
‘(g) Inflation Adjustment- Not later than December 31 of each year beginning in 2008, the Secretary shall adjust for inflation the rate of the alternative compliance payment under subsection (b)(2)(C).CommentsClose CommentsPermalink
‘(h) State Programs-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Subject to paragraph (2), nothing in this section diminishes any authority of a State or political subdivision of a State to adopt or enforce any law or regulation respecting renewable energy or energy efficiency, or the regulation of electric utilities,.CommentsClose CommentsPermalink
‘(2) COMPLIANCE- Except as provided in subsection (d)(3), no such law or regulation shall relieve any person of any requirement otherwise applicable under this section.CommentsClose CommentsPermalink
‘(3) COORDINATION- The Secretary, in consultation with States having such renewable energy and energy efficiency programs, shall, to the maximum extent practicable, facilitate coordination between the Federal program and State programs.CommentsClose CommentsPermalink
‘(4) REGULATIONS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The Secretary, in consultation with States, shall promulgate regulations to ensure that an electric utility that is subject to the requirements of this section and is subject to a State renewable energy standard receives renewable energy credits if--CommentsClose CommentsPermalink
‘(i) the electric utility complies with the State standard by generating or purchasing renewable electric energy or renewable energy certificates or credits representing renewable electric energy; orCommentsClose CommentsPermalink
‘(ii) the State imposes or allows other mechanisms for achieving the State standard, including the payment of taxes, fees, surcharges, or other financial obligations.CommentsClose CommentsPermalink
‘(B) AMOUNT OF CREDITS- The amount of credits received by an electric utility under this subsection shall equal--CommentsClose CommentsPermalink
‘(i) in the case of subparagraph (A)(i), the quantity of renewable energy resulting from the generation or purchase by the electric utility of renewable energy; andCommentsClose CommentsPermalink
‘(ii) in the case of subparagraph (A)(ii), the pro rata share of the electric utility, based on the contributions to the mechanism made by the electric utility or customers of the electric utility, in the State, of the quantity of renewable energy resulting from those mechanisms.CommentsClose CommentsPermalink
‘(C) PROHIBITION ON DOUBLE COUNTING- The regulations promulgated under this paragraph shall ensure that a kilowatt-hour associated with a renewable energy credit issued pursuant to this subsection shall not be used for compliance with this section more than once.CommentsClose CommentsPermalink
‘(i) Energy Efficiency Credits-CommentsClose CommentsPermalink
‘(1) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink
‘(A) CUSTOMER FACILITY SAVINGS- The term ‘customer facility savings’ means a reduction in the consumption of end-use electricity at a facility of an end-use consumer of electricity served by an electric utility, as compared to--CommentsClose CommentsPermalink
‘(i) consumption at the facility during a base year, taking into account reductions attributable to causes other than energy efficiency investments (such as economic downturns, reductions in customer base, favorable weather conditions, or other such causes); orCommentsClose CommentsPermalink
‘(ii) 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 similar equipment of average efficiency available for purchase at the time that new equipment is acquired.CommentsClose CommentsPermalink
‘(B) ELECTRICITY SAVINGS- The term ‘electricity savings’ means--CommentsClose CommentsPermalink
‘(i) customer facility savings of electricity consumption adjusted to reflect any associated increase in fuel consumption at the facility;CommentsClose CommentsPermalink
‘(ii) 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 by the Secretary by regulation); andCommentsClose CommentsPermalink
‘(iii) the output of new combined heat and power systems, to the extent provided under paragraph (5).CommentsClose CommentsPermalink
‘(C) QUALIFIED ELECTRICITY SAVINGS- The term ‘qualified electricity savings’ means electricity saving that meet the measurement and verification requirements of paragraph (4).CommentsClose CommentsPermalink
‘(2) PETITION- On petition by the Governor of a State or, in the case of the power service area of the Tennessee Valley Authority, the Board of Directors of the Tennessee Valley Authority, the Secretary shall allow up to 26.67 percent of the requirements of an electric utility under subsection (b)(1) associated with the sales of electricity of the utility in the State to be met by submitting Federal energy efficiency credits issued pursuant to this subsection.CommentsClose CommentsPermalink
‘(3) ISSUANCE OF ENERGY EFFICIENCY CREDITS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The Secretary shall issue energy efficiency credits for qualified electricity savings achieved in States described in paragraph (2) in accordance with this subsection.CommentsClose CommentsPermalink
‘(B) QUALIFIED ELECTRICITY SAVINGS- Subject to subparagraph (C), in accordance with regulations promulgated by the Secretary, the Secretary shall issue credits for--CommentsClose CommentsPermalink
‘(i) qualified electricity savings achieved by an electric utility on or after the date of enactment of this section; andCommentsClose CommentsPermalink
‘(ii) qualified electricity savings achieved by other entities (including State agencies) on or after the date of enactment of this section if--CommentsClose CommentsPermalink
‘(I) the measures used to achieve the qualified electricity savings were installed or placed in operation by the entity seeking the credit; andCommentsClose CommentsPermalink
‘(II) an electric utility eligible to receive efficiency did not pay a substantial portion of the cost of achieving the qualified electricity savings (unless the utility has waived any entitlement to the credit).CommentsClose CommentsPermalink
‘(C) STANDARDS- No credits shall be issued for electricity savings achieved as a result of compliance with a national, State, or local building, equipment, or appliance efficiency standard.CommentsClose CommentsPermalink
‘(4) MEASUREMENT AND VERIFICATION OF ELECTRICITY SAVINGS- Not later than January 2010, the Secretary shall promulgate regulations regarding the measurement and verification of electricity savings under this subsection, including regulations covering--CommentsClose CommentsPermalink
‘(A) procedures and standards for defining and measuring electricity savings that will be eligible to receive credits under paragraph (3), which shall--CommentsClose CommentsPermalink
‘(i) specify the types of energy efficiency and energy conservation that will be eligible for the credits;CommentsClose CommentsPermalink
‘(ii) require that energy consumption 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
‘(iii) account for the useful life of electricity savings measures;CommentsClose CommentsPermalink
‘(iv) include specified electricity savings values for specific, commonly-used efficiency measures; andCommentsClose CommentsPermalink
‘(v) exclude electricity savings that--CommentsClose CommentsPermalink
‘(I) are not properly attributable to measures carried out by the entity seeking the credit;CommentsClose CommentsPermalink
‘(II) have already been credited under this section to another entity; orCommentsClose CommentsPermalink
‘(III) do not result from actions not intended to achieve electricity savings;CommentsClose CommentsPermalink
‘(B) procedures and standards for third-party verification of reported electricity savings; andCommentsClose CommentsPermalink
‘(C) such requirements for information, reports, and access to facilities as may be necessary to carry out this subsection.CommentsClose CommentsPermalink
‘(5) COMBINED HEAT AND POWER- Under regulations promulgated by the Secretary, the increment of electricity output of a new combined heat and power system that is attributable to the higher efficiency of the combined system (as compared to the efficiency of separate production of the electric and thermal outputs), shall be considered electricity savings under this subsection.CommentsClose CommentsPermalink
‘(j) Biomass Harvesting and Sustainability- The provisions of this section relating to biomass shall be administered in accordance with section 203(e) of the Energy Policy Act of 2005 (
42 U.S.C. 15852(e) ).CommentsClose CommentsPermalink‘(k) Loans for Projects to Comply With Federal Renewable Electricity Standard-CommentsClose CommentsPermalink
‘(1) PURPOSES- The purposes of this subsection are--CommentsClose CommentsPermalink
‘(A) to reduce the cost incurred by electric utilities in complying with the requirements of this section; andCommentsClose CommentsPermalink
‘(B) to minimize the impact of the requirements on electricity rates for consumers.CommentsClose CommentsPermalink
‘(2) LOANS- The Secretary shall make loans available to electric utilities to carry out qualified projects approved by the Secretary to comply with the requirements of this section.CommentsClose CommentsPermalink
‘(3) QUALIFIED PROJECTS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- A loan may be made under this subsection for a project--CommentsClose CommentsPermalink
‘(i) to construct a renewable energy generation facility;CommentsClose CommentsPermalink
‘(ii) to install an energy efficiency or electricity demand reduction technology; orCommentsClose CommentsPermalink
‘(iii) to carry out any other project approved by the Secretary that the Secretary determines is consistent with the purposes of this subsection.CommentsClose CommentsPermalink
‘(B) DISAPPROVAL- The Secretary may disapprove an application for a loan for a project under this subsection if the Secretary determines that--CommentsClose CommentsPermalink
‘(i) the revenues generated under the project are unlikely to be sufficient to cover the repayment obligations of the proposed loan; orCommentsClose CommentsPermalink
‘(ii) the project is not otherwise consistent with the purposes of this subsection.CommentsClose CommentsPermalink
‘(4) TERMS- A loan made by the Secretary to an electric utility under this subsection shall--CommentsClose CommentsPermalink
‘(A) be for a term of not to exceed 30 years; andCommentsClose CommentsPermalink
‘(B) bear an annual interest rate that is 50 basis points more than the Federal funds rate established by the Board of Governors of the Federal Reserve System.CommentsClose CommentsPermalink
‘(5) PRIORITY- Notwithstanding any other provision of law, the debt to the Federal Government under a loan made to an electric utility under this subsection shall have priority in any case in which the electric utility files for bankruptcy protection under title 11, United States Code.CommentsClose CommentsPermalink
‘(6) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary to carry out this subsection.CommentsClose CommentsPermalink
‘(l) Reconsideration-CommentsClose CommentsPermalink
‘(1) REVIEW-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Not later than January 15, 2017, and every 5 years thereafter, the Secretary shall review and make recommendations to Congress on the program established under this section.CommentsClose CommentsPermalink
‘(B) ANALYSIS- The review shall analyze whether--CommentsClose CommentsPermalink
‘(i) the program established under this section has contributed to an economically harmful increase in electricity rates in regions of the United States;CommentsClose CommentsPermalink
‘(ii) the program has resulted in net economic benefits for the United States; andCommentsClose CommentsPermalink
‘(iii) new technologies and clean, renewable energy sources will advance the purposes of this section.CommentsClose CommentsPermalink
‘(2) RECOMMENDATIONS- The Secretary shall submit to Congress recommendations on whether--CommentsClose CommentsPermalink
‘(A) the percentage of energy efficiency credits eligible to be submitted under subsection (b)(1) should be increased or decreased;CommentsClose CommentsPermalink
‘(B) the percentage of renewable electricity required under subsection (b)(1) should be increased or decreased; andCommentsClose CommentsPermalink
‘(C) the definition of ‘renewable energy’ should be expanded to reflect advances in technology or previously unavailable sources of clean or renewable energy.CommentsClose CommentsPermalink
‘(3) REPORT- Not later than January 15, 2017, the Secretary shall submit to Congress a report that describes any recommendations of the Secretary on changes to the program established under this section.CommentsClose CommentsPermalink
‘(m) Regulations- Not later than 1 year after the date of enactment of this section, the Secretary shall promulgate regulations implementing this section.CommentsClose CommentsPermalink
‘(n) Termination of Authority- This section and the authority provided by this section terminate on December 31, 2039.’.CommentsClose CommentsPermalink
(b) Table of Contents Amendment- The table of contents of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) is amended by adding at the end of the items relating to title VI the following:CommentsClose CommentsPermalink
‘Sec. 610. Federal renewable electricity standard.’.CommentsClose CommentsPermalink
SEC. 133. FEDERAL PURCHASE REQUIREMENT AMENDMENTS.
Section 203 of the Energy Policy Act of 2005 (
(1) by striking subsection (b) and inserting the following:CommentsClose CommentsPermalink
‘(b) Definitions- In this section:CommentsClose CommentsPermalink
‘(1) BIOMASS- The term ‘biomass’ means the following types of nonhazardous organic materials:Comments