Clean Power Production Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Power Production Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) electric power utilities are a source of air pollutant 
        emissions such as nitrogen oxides (NO&lt;INF&gt;x), sulfur dioxide 
        (SO&lt;INF&gt;2), and anthropogenic emissions of carbon dioxide 
        (CO&lt;INF&gt;2), a greenhouse gas;
            (2) the electric utility industry is entering a period of 
        restructuring and deregulation in numerous States, regions, and 
        Federal administrative bodies;
            (3) the opportunities for increased competition offers 
        potentially significant economic benefits to all classes of 
        consumers; however there remains a substantial risk of 
        increased emissions and environmental damages due to changed 
        operating procedures and market characteristics among electric 
        utility generators;
            (4) studies have raised concerns regarding the likely 
        impacts of electric utility restructuring on the environment, 
        in particular, proposed restructuring actions which may be 
        taken by the Federal Energy Regulatory Commission;
            (5) there have been a number of proposals among States for 
        mitigating the environmental impacts of electric utility 
        restructuring, but no regional or national mitigating 
        strategies and policies have been developed or implemented;
            (6) it is in the national interest to further examine the 
        entire range of environmental impacts associated with electric 
        utility restructuring and to develop additional, more 
        comprehensive strategies and policy recommendations for 
        addressing such impacts; and
            (7) it is in the national interest for Federal and State 
        utility regulators, Federal and State environmental 
        authorities, and all other affected parties, to cooperate in 
        the formulation of new policies and procedures that will result 
        in no significant diminution in the quality of the national and 
        global environment as a consequence of electric utility 
        restructuring.

SEC. 3. ASSESSMENT OF ENVIRONMENTAL IMPACTS.

    (a) In General.--The Administrator of the Environmental Protection 
Agency (hereinafter in this Act referred to as the ``Administrator'') 
shall undertake an assessment of the reasonable range of environmental 
impacts associated with the likely outcomes of electric utility 
restructuring within and among regions. The assessment shall consider 
significant proposed State and Federal alterations of public utility 
regulatory laws and the probable results of these alterations upon 
emissions or on the environment, including emissions of air pollutants, 
including pollutants for which standards are in effect under section 
109 of the Clean Air Act, carbon dioxide and other greenhouse gases, 
carbon; and significant land and water impacts.
    (b) Consultation.--In performing the assessment under this section 
the Administrator shall consult with the Secretary of Energy, the Chair 
of the Federal Energy Regulatory Commission, the Chair of the Council 
on Environmental Quality, and other Federal and State agency officials 
as appropriate.
    (c) Report.--The Administrator shall submit a report to Congress 
within 6 months after the enactment of this Act containing the results 
of the assessment under this section.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administration for the fiscal year 1997 not more 
than $1,000,000 to be used to carry out the assessment under this 
section.

SEC. 4. COMMISSION.

    (a) Establishment.--The Administrator and the Secretary of Energy 
shall establish and co-chair a commission to be known as the Commission 
for Environmental Mitigation of Electric Utility Restructuring 
(hereinafter in this section referred to as ``the Commission''). The 
Commission shall include a representative from the Council on 
Environmental Quality, the Federal Energy Regulatory Commission, and 
the Council of Economic Advisors.
    (b) Purpose.--The purpose of the Commission shall be to develop 
strategies and policies, using the assessment prepared under section 3, 
to mitigate the environmental impacts associated with electric utility 
restructuring. The strategies and policies shall--
            (1) not reduce the benefits of electric utility 
        restructuring;
            (2) preserve or enhance the quality of competition in the 
        restructured industry, as well as preserving robust and fair 
        competition between other fuels and electricity;
            (3) give due consideration to the impacts upon companies or 
        investors in companies that provide service in the existing or 
        restructured industry;
            (4) rely to the maximum extent possible on voluntary 
        measures, economic incentives, and market based policies;
            (5) be flexible and performance-based;
            (6) fully mitigate all probable incremental environmental 
        impacts associated with electric utility restructuring;
            (7) be consistent with the intent of existing State and 
        Federal environmental and siting statutes, policies, and 
        commitments; and
            (8) assist the Nation in meeting its environmental, 
        economic, employment, and energy policy objectives, including 
        the efficient use of natural resources.
    (c) Report.--Within 12 months after the enactment of this Act, the 
Commission shall submit a report to Congress containing the 
recommendations for strategies and policies developed under subsection 
(b). The report shall include, at a minimum--
            (1) recommendations for the alteration of existing Federal 
        environmental or regulatory statutes;
            (2) recommendations concerning rules and procedures for the 
        operation of power pools, transmission groups, or other 
        coordinated power systems;
            (3) recommendations concerning the need for regional and 
        interregional mechanisms or institutions; and
            (4) options for Federal, regional, or model State policies 
        to fully or adequately mitigate the adverse environmental 
        impacts of restructuring.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated for the fiscal years 1997 and 1998, $1,000,000 to the 
Environmental Protection Agency and $1,000,000 to the Department of 
Energy to carry out the duties of the Commission.

SEC. 5. EXISTING AUTHORITIES OF FERC AND STATES.

    Nothing in this Act shall be construed to limit or otherwise 
adversely affect the authority of the Federal Energy Regulatory 
Commission to address the mitigation of adverse environmental impacts 
in any rulemaking relating to the restructuring of the electric utility 
industry, competition in wholesale energy markets, open transmission 
access or any related matter. Nothing in this Act shall be construed to 
limit or affect in any way the authority of States to examine or 
address electric utility restructuring concerns and related 
environmental issues that are within the jurisdiction of State 
government authorities.

Summary: Clean Power Production Act - Instructs the Administrator of the Environmental Protection Agency to assess and report to the Congress on the reasonable range of environmental impacts associated with electric utility restructuring, including significant proposed State and Federal changes in public utility regulations and the probable results of such changes upon specified air pollutants and the environment. Directs the Administrator and the Secretary of Energy to: (1) establish and co-chair the Commission for Environmental Mitigation of Electric Utility Restructuring to develop strategies and policies using such assessment to mitigate environmental impacts associated with such restructuring. And (2) report to the Congress on such strategies and policies. Authorizes appropriations.