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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1369 Introduced in Senate (IS)]

106th CONGRESS
  1st Session
                                S. 1369

To enhance the benefits of the national electric system by encouraging 
 and supporting State programs for renewable energy sources, universal 
electric service, affordable electric service, and energy conservation 
                and efficiency, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 14, 1999

 Mr. Jeffords (for himself, Mr. Lieberman, Mr. Moynihan, Mr. Schumer, 
 Mr. Kerry, Mr. Lautenberg, Mr. Dodd, and Mr. Kennedy) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
To enhance the benefits of the national electric system by encouraging 
 and supporting State programs for renewable energy sources, universal 
electric service, affordable electric service, and energy conservation 
                and efficiency, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Energy Act of 1999''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the generation of electricity is unique in its combined 
        influence on the security, environmental quality, and economic 
        efficiency of the United States;
            (2) the generation and sale of electricity has a direct and 
        profound impact on interstate commerce;
            (3) the Federal Government and the States have a joint 
        responsibility for the maintenance of public purpose programs 
        affected by the national electric system;
            (4) notwithstanding the public's interest in and enthusiasm 
        for programs that enhance the environment, encourage the 
        efficient use of resources, and provide for affordable and 
        universal service, the investments in those public purposes by 
        existing means continues to decline;
            (5) the dependence of the United States on foreign sources 
        of fossil fuels is contrary to our national security; 
        alternative, sustainable energy sources must be pursued as the 
        United States moves into the 21st century;
            (6) emissions from electric power generating facilities are 
        today the largest industrial source responsible for persistent 
        public health and environmental problems;
            (7) consumers have a right to certain information in order 
        to make objective choices on their electric service providers; 
        and
            (8) net metering of small systems for self-generation of 
        electricity is in the public interest in order to encourage 
        private investment in renewable energy resources, stimulate 
        economic growth, and enhance the continued diversification of 
        the energy resources used in the United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Board.--The term ``Board'' means the National Electric 
        System Public Benefits Board established under section 5.
            (3) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (4) Fund.--The term ``Fund'' means the National Electric 
        System Public Benefits Fund established by section 6.
            (5) Renewable energy.--The term ``renewable energy'' means 
        electricity generated from a renewable energy technology.
            (6) Renewable energy technology.--The term ``renewable 
        energy technology'' means wind, biomass (including organic 
        waste but excluding incinerated municipal solid waste), or a 
        geothermal, solar thermal, or photovoltaic source.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 4. EMISSIONS STANDARDS AND ALLOCATIONS.

    (a) Definitions.--In this section:
            (1) Covered generation facility.--The term ``covered 
        generation facility'' means an electric generation facility 
        (other than a nuclear facility) with a nameplate capacity of 15 
        megawatts or greater that uses a combustion device to generate 
        electricity for sale.
            (2) Generating plant.--The term ``generating plant'' means 
        1 or more covered generation facilities located at a single 
        site.
            (3) Cogeneration.--The term ``cogeneration'' means a 
        process of simultaneously generating electricity and thermal 
        energy in which a portion of the energy value of fuel consumed 
        is recovered as heat that is used to meet heating or cooling 
        loads outside the generation facility.
            (4) Pollutant.--The term ``pollutant'' means--
                    (A) carbon dioxide;
                    (B) mercury;
                    (C) nitrogen oxide;
                    (D) sulfur dioxide; or
                    (E) any other substance that the Administrator may 
                identify by regulation as a substance the emission of 
                which into the air from a combustion device used in the 
                generation of electricity endangers public health or 
                welfare.
    (b) Nationwide Emissions Standards.--
            (1) Schedule.--Not later than July 1, 2001, the 
        Administrator shall promulgate a final regulation that 
        establishes a schedule of limits on the quantity of each 
        pollutant that all covered generation facilities in the 
        aggregate nationwide shall be permitted to emit in each 
        calendar year beginning in calendar year 2002.
            (2) Limit.--The nationwide emissions standard for calendar 
        year 2005 and each year thereafter established under paragraph 
        (1) shall be not greater than--
                    (A) for carbon dioxide, 1,914,000,000 tons;
                    (B) for mercury, 5 tons;
                    (C) for nitrogen oxide, 1,660,000 tons; and
                    (D) for sulfur dioxide, 3,580,000 tons.
            (3) Adjustment.--The Administrator may adjust the schedule 
        established under paragraph (1), within the limits established 
        by paragraph (2), if the Administrator determines that an 
        adjustment would be in the best interests of the public health 
        and welfare.
    (c) Generation Performance Standard.--
            (1) Annual determination.--
                    (A) In general.--Not later than October 1 of each 
                year, the Administrator, in consultation with the 
                Commission, shall determine the generation performance 
                standard for carbon dioxide, mercury, nitrogen oxide, 
                and sulfur dioxide emissions per megawatt-hour of 
                electric production by covered generation facilities 
                for the next calendar year.
                    (B) Method.--The Administrator shall determine by 
                regulation the method to be used in determining an 
                estimate under subparagraph (A).
            (2) Formula.--The generation performance standard shall be 
        determined by dividing the annual nationwide emissions standard 
        as established under subsection (b) by the Administrator's 
        estimate of the nationwide megawatt-hour production for the 
        next calendar year by all covered generation facilities.
    (d) Individual Emissions Allocation.--The quantity of each 
pollutant that a covered generation facility shall be permitted to emit 
during a calendar year shall be equal to--
            (1) the facility's annual generation of megawatt-hours of 
        electricity multiplied by the generation performance standard 
        as established in subsection (c); plus
            (2) the facility's annual generation of thermal energy used 
        to meet heating and cooling loads resulting from the 
        cogeneration process, which shall be expressed by the 
        Administrator in units of measurement that provide a reasonable 
        comparison between energy generated in the form of electricity 
        and energy generated in the form of thermal energy and then 
        multiplied by the generation performance standard as 
        established under subsection (c).
    (e) Ozone Season.--In determining the individual emissions 
allocation for a covered generation facility under subsection (d), the 
quantity of nitrogen oxide emitted by covered generation facility and 
the number of megawatt-hours of electricity generated by the covered 
generation facility during the period May 1 through September 30 of 
each year shall each be multiplied by 3.
    (f) Monitoring.--
            (1) Establishment of system.--The Administrator shall 
        establish a system for the accurate monitoring of the quantity 
        of each pollutant that a covered generation facility emits 
        during a year.
            (2) Requirements.--The monitoring system under paragraph 
        (1) shall require--
                    (A) installation on each combustion device of a 
                continuous monitoring system for each pollutant; or
                    (B) use of an alternative mechanism that the 
                Administrator determines will provide data with 
                precision, reliability, accessibility, and timeliness 
                that are equal to or greater than those that would be 
                achieved by a continuous emissions monitoring system.
    (g) Emissions Credits.--
            (1) Comparison of actual combustion device outputs with 
        individual emission allocations.--At the end of each year, the 
        Administrator shall compare the quantity of a pollutant emitted 
        by a generation facility during the year with the individual 
        emissions allocation as established under subsection (d) 
        applicable to the covered generation facility for the year.
            (2) Issuance of emissions credits.--Not later than April 1 
        of each year, the Administrator shall issue to a covered 
        generation facility 1 emissions credit for each ton by which 
        the quantity of a pollutant emitted by the covered generation 
        facility during the preceding year was less than the individual 
        emissions allocation as established under subsection (d) 
        applicable to the covered generation facility.
            (3) Submission of emissions credits.--
                    (A) In general.--Not later than July 1 of each 
                year, a covered generation facility that emitted a 
                greater quantity of a pollutant than the individual 
                emissions allocation applicable to the covered 
                generation facility during the preceding year shall 
                submit to the Administrator 1 emissions credit for each 
                ton by which the quantity of the pollutant emitted was 
                greater than the individual emissions allocation as 
                established under subsection (d).
                    (B) Penalty.--The owner or operator of a covered 
                generation facility that is required to submit an 
emissions credit under subparagraph (A) that fails to submit the 
emissions credit shall pay to the Administrator a civil penalty in an 
amount equal to--
                            (i) $100 for each ton of carbon dioxide 
                        emissions in excess of the individual emissions 
                        allocation applicable to the facility under 
                        subsection (d) for which a carbon dioxide 
                        emissions credit has not been submitted under 
                        subparagraph (A);
                            (ii) $2500 for each pound of mercury 
                        emissions in excess of the individual emissions 
                        allocation applicable to the facility under 
                        subsection (D) for which a mercury emissions 
                        credit has not been submitted under 
                        subparagraph (A);
                            (iii) $15,000 for each ton of nitrogen 
                        oxide emissions in excess of the individual 
                        emissions allocation applicable to the facility 
                        under subsection (d) for which a nitrogen oxide 
                        emissions credit has not been submitted under 
                        subparagraph (A); and
                            (iv) $2,500 for each ton of sulfur dioxide 
                        emissions in excess of the individual emissions 
                        allocation applicable to the facility under 
                        subsection (d) for which a sulfur dioxide 
                        emissions credit has not been submitted under 
                        subparagraph (A).
                    (C) Penalty adjustment.--The Administrator shall 
                annually adjust the penalty specified in subparagraph 
                (B) for inflation based on the Consumer Price Index.
            (4) Use of emissions credits.--A covered generation 
        facility may--
                    (A) retain an emissions credit from year to year 
                for future submission to the Administrator under 
                paragraph (3); or
                    (B) on notice to the Administrator, sell or 
                otherwise transfer an emissions credit to another 
                person.
    (h) Generating Plants.--
            (1) In General.--The Administrator may permit the average 
        rate of emissions of nitrogen oxide or sulfur dioxide at a 
        generating plant over any 365-day period to exceed the 
        generation performance standard established under subsection 
        (c) if the generating plant has a sufficient quantity of 
        emissions credits.
            (2) Significant adverse local impacts.--
                    (A) Study.--
                            (i) In general.--If the average rate of 
                        emissions of nitrogen oxide or sulfur dioxide 
                        at a generating plant exceeds 125 percent of 
                        the generation performance standard established 
                        under subsection (c) in any calendar year, the 
                        Administrator shall review the generating plant 
                        to determine whether emissions in excess of 125 
                        percent of the generation performance standard 
                        may reasonably be anticipated to cause or 
                        contribute to any significant adverse local 
                        impacts, including degradation of the 
                        environment or public health, either 
                        independently of or in combination with other 
                        emissions.
                            (ii) Public comment; timing.--A 
                        determination under clause (i)--
                                    (I) shall be made after public 
                                notice and opportunity for public 
                                comment; and
                                    (II) shall be published in final 
                                form not later than 240 days after the 
                                end of the calendar year in which the 
                                average rate of emissions of nitrogen 
                                oxide or sulfur dioxide at a generating 
                                plant exceeds 125 percent of the 
                                standard.
                    (B) Additional review.--If the Administrator 
                determines under subparagraph (A) that excess emissions 
                from a generating plant cannot reasonably be 
                anticipated to cause or contribute to significant 
                adverse local impacts, and the average rate of 
                emissions of nitrogen oxide or sulfur dioxide from the 
                generating plant exceeds 125 percent of the generation 
                performance standard established under subsection (c) 
                in any calendar year, any person may petition the 
                Administrator to conduct an additional study under 
                subparagraph (A).
                    (C) Prohibition.--
                            (i) In general.--If the Administrator 
                        determines that nitrogen oxide or sulfur 
                        dioxide emissions from a generating plant in 
                        excess of 125 percent of the generation 
                        performance standard established under 
                        subsection (c) may reasonably be anticipated to 
                        cause or contribute to significant adverse 
                        local impacts, it shall be unlawful for the 
                        generating plant to emit nitrogen oxide or 
                        sulfur dioxide in excess of 125 percent of the 
                        general performance standard.
                            (ii) Penalty.--The Administrator shall 
                        assess the owner or operator of a generating 
                        plant that violates clause (i) a civil penalty 
                        of $25,000 per day for each day in which the 
                        average emission rate of the generating plant 
                        over any 365-day period exceeds the maximum 
                        emission rate 125 percent of the general 
                        performance standard.
    (i) Powers.--The Administrator may promulgate such regulations, 
conduct such investigations, and take such other actions as are 
appropriate to implement this section.

SEC. 5. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS BOARD.

    (a) Establishment.--The Secretary shall establish a National 
Electric System Public Benefits Board to carry out the functions and 
responsibilities described in this section.
    (b) Membership.--The Board shall be composed of--
            (1) 1 representative of the Commission appointed by the 
        Commission;
            (2) 2 representatives of the Secretary appointed by the 
        Secretary;
            (3) 2 persons nominated by the national organization 
        representing State regulatory commissioners and appointed by 
        the Secretary;
            (4) 1 person nominated by the national organization 
        representing State utility consumer advocates and appointed by 
        the Secretary;
            (5) 1 person nominated by the national organization 
        representing State energy offices and appointed by the 
        Secretary;
            (6) 1 person nominated by the national organization 
        representing energy assistance directors and appointed by the 
        Secretary; and
            (7) 1 representative of the Environmental Protection Agency 
        appointed by the Administrator.
    (c) Chairperson.--The Secretary shall select a member of the Board 
to serve as Chairperson of the Board.
    (d) Manager.--
            (1) Appointment.--The Board shall by contract appoint an 
        electric systems public benefits manager for a term of not more 
        than 3 years, which term may be renewed by the Board.
            (2) Compensation.--The compensation and other terms and 
        conditions of employment of the manager shall be determined by 
        a contract between the Board and the individual or the other 
        entity appointed as manager.
            (3) Functions.--The manager shall--
                    (A) monitor the amounts in the Fund;
                    (B) receive, review, and make recommendations to 
                the Board regarding applications from States under 
                section 6(b); and
                    (C) perform such other functions as the Board may 
                require to assist the Board in carrying out its duties 
                under this Act.

SEC. 6. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS FUND.

    (a) Establishment.--
            (1) In general.--The Board shall establish an account or 
        accounts at 1 or more financial institutions, which account or 
        accounts shall be known as the ``National Electric System 
        Public Benefits Fund'', consisting of amounts deposited in the 
        fund under subsection (c).
            (2) Status of fund.--The wires charges collected under 
        subsection (c) and deposited in the Fund--
                    (A) shall constitute electric system revenues and 
                shall not constitute funds of the United States;
                    (B) shall be held in trust by the manager of the 
                Fund solely for the purposes stated in subsection (b); 
                and
                    (C) shall not be available to meet any obligations 
                of the United States.
    (b) Use of Fund.--
            (1) Funding of public purpose programs.--Amounts in the 
        Fund shall be used by the Board to provide matching funds to 
        States for the support of State public purpose programs 
        relating to--
                    (A) renewable energy sources;
                    (B) universal electric service;
                    (C) affordable electric service;
                    (D) energy conservation and efficiency; or
                    (E) research and development in areas described in 
                subparagraphs (A) through (D).
            (2) Distribution.--
                    (A) In general.--Except for amounts needed to pay 
                costs of the Board in carrying out its duties under 
                this section, the Board shall instruct the manager of 
                the Fund to distribute all amounts in the Fund to 
                States to fund public purpose programs under paragraph 
                (1).
                    (B) Fund share.--
                            (i) In general.--Subject to clause (iii), 
                        the Fund share of a public purpose program 
                        funded under paragraph (1) shall be 50 percent.
                            (ii) Proportionate reduction.--To the 
                        extent that the amount of matching funds 
                        requested by States exceeds the maximum 
                        projected revenues of the Fund, the matching 
                        funds distributed to the States shall be 
                        reduced by an amount that is proportionate to 
                        each State's annual consumption of electricity 
                        compared to the aggregate annual consumption of 
                        electricity in the United States.
                            (iii) Additional state funding.--A State 
                        may apply funds to public purpose programs in 
                        addition to the amount of funds applied for the 
                        purpose of matching the Fund share.
            (3) Program criteria.--The Board shall recommend 
        eligibility criteria for public benefits programs funded under 
        this section for approval by the Secretary.
            (4) Application.--Not later than August 1 of each year 
        beginning in 2000, a State seeking matching funds for the 
        following year shall file with the Board, in such form as the 
        Board may require, an application--
                    (A) certifying that the funds will be used for an 
                eligible public purpose program; and
                    (B) stating the amount of State funds earmarked for 
                the program.
    (c) Wires Charge.--
            (1) Determination of needed funding.--Not later than August 
        1 of each year, the Board shall determine and inform the 
        Commission of the aggregate amount of wires charges that it 
        will be required to be paid into the Fund to pay matching funds 
        to States and the operating costs of the Board in the following 
        year.
            (2) Imposition of wires charge.--
                    (A) In general.--Not later than December 15 of each 
                year, the Commission shall impose a nonbypassable, 
                competitively neutral wires charge to be paid directly 
                into the Fund by the operator of the wire on 
                electricity carried through the wire (measured as it 
exits the busbar at a generation facility) that affects interstate 
commerce.
                    (B) Amount.--The wires charge shall be set at a 
                rate equal to the lesser of--
                            (i) 2 mills per kilowatt-hour; or
                            (ii) a rate that is estimated to result in 
                        the collection of an amount of wires charges 
                        that is as nearly as possible equal to the 
                        amount of needed funding determined under 
                        paragraph (1).
            (3) Deposit in the fund.--The wires charge shall be paid by 
        the operator of the wire directly into the Fund at the end of 
        each month during the calendar year for distribution by the 
        electric systems public benefits manager under section 5.
            (4) Penalties.--The Commission may assess against a wire 
        operator that fails to pay a wires charge as required by this 
        subsection a civil penalty in an amount equal to not more than 
        the amount of the unpaid wires charge.
    (d) Auditing.--
            (1) In general.--The Fund shall be audited annually by a 
        firm of independent certified public accountants in accordance 
        with generally accepted auditing standards.
            (2) Access to records.--Representatives of the Secretary 
        and the Commission shall have access to all books, accounts, 
        reports, files, and other records pertaining to the Fund as 
        necessary to facilitate and verify the audit.
            (3) Reports.--
                    (A) In general.--A report on each audit shall be 
                submitted to the Secretary, the Commission, and the 
                Secretary of the Treasury, who shall submit the report 
                to the President and Congress not later than 180 days 
                after the close of the fiscal year.
                    (B) Requirements.--An audit report shall--
                            (i) set forth the scope of the audit; and
                            (ii) include--
                                    (I) a statement of assets and 
                                liabilities, capital; and surplus or 
                                deficit;
                                    (II) a statement of surplus or 
                                deficit analysis;
                                    (III) a statement of income and 
                                expenses;
                                    (IV) any other information that may 
                                be considered necessary to keep the 
                                President and Congress informed of the 
                                operations and financial condition of 
                                the Fund; and
                                    (V) any recommendations with 
                                respect to the Fund that the Secretary 
                                or the Commission may have.

SEC. 7. RENEWABLE ENERGY PORTFOLIO STANDARDS.

    (a) Definition of Covered Generation Facility.--In this section, 
the term ``covered generation facility'' means a nonhydroelectric 
facility that generates electric energy for sale.
    (b) Required Renewable Energy.--Of the total amount of electricity 
sold by covered generation facilities during a calendar year, the 
amount generated by renewable energy sources shall be not less than--
            (1) 2.5 percent in 2000;
            (2) 3.0 percent in 2001;
            (3) 3.5 percent in 2002;
            (4) 4.0 percent in 2003;
            (5) 4.5 percent in 2004;
            (6) 5.0 percent in 2005;
            (7) 6.0 percent in 2006;
            (8) 7.0 percent in 2007;
            (9) 8.0 percent in 2008;
            (10) 9.0 percent in 2009;
            (11) 10.0 percent in 2010;
            (12) 11.0 percent in 2011;
            (13) 12.0 percent in 2012;
            (14) 13.0 percent in 2013;
            (15) 14.0 percent in 2014;
            (16) 15.0 percent in 2015;
            (17) 16.0 percent in 2016;
            (18) 17.0 percent in 2017;
            (19) 18.0 percent in 2018;
            (20) 19.0 percent in 2019; and
            (21) 20.0 percent in 2020 and each year thereafter.
    (c) Renewable Energy Credits.--
            (1) Identification of energy sources.--The Commission shall 
        establish standards and procedures under which a covered 
        generation facility shall certify to a purchaser of 
        electricity--
                    (A) the amount of the electricity that is generated 
                by a renewable energy source; and
                    (B) the amount of the electricity that is generated 
                by a source other than a renewable energy source.
            (2) Issuance of renewable energy credits.--Not later than 
        April 1 of each year beginning in 2001, the Commission shall 
        issue to a covered generation facility 1 renewable energy 
        credit for each megawatt-hour of electricity sold by the 
        covered generation facility in the preceding calendar year that 
        was generated by a renewable source.
            (3) Submission of renewable energy credits.--Not later than 
        July 1 of each year, a covered generation facility shall submit 
        credits to the Commission in an amount equal to the total 
        number of megawatt-hours of electricity sold by the covered 
        generation facility in the preceding year multiplied by the 
        applicable renewable energy source requirement under subsection 
        (a).
            (4) Use of renewable energy credits.--
                    (A) Time for use.--A renewable energy credit shall 
                be used for the calendar year for the renewable energy 
                credit is issued.
                    (B) Permitted uses.--Until July 1 of the year in 
                which a renewable energy credit was issued, a covered 
                generation facility may--
                            (i) use the renewable energy credit to make 
                        a submission to the Commission under paragraph 
                        (3); or
                            (ii) on notice to the Commission, sell or 
                        otherwise transfer a renewable energy credit to 
                        another covered generation facility.
    (d) Recordkeeping.--The Commission shall maintain records of all 
renewable energy credits issued and all credits sold or exchanged.
    (e) Penalties.--
            (1) In general.--The Commission may bring an action in 
        United States district court to impose a civil penalty on any 
        person that fails to comply with subsection (a).
            (2) Amount of penalty.--A person that fails to comply with 
        a requirement to submit renewable energy credits under 
        subsection (b)(3) shall be subject to a civil penalty of not 
        more than 3 times the estimated national average market value 
        (as determined by the Commission) for the calendar year 
        concerned of that quantity of renewable energy credits.
    (f) Public Utility Regulatory Policies Act of 1978.--
            (1) Repeal of cogeneration and small power production 
        provision.--Effective January 1, 2000, the Public Utility 
        Regulatory Policies Act of 1978 is amended by striking section 
        210 (16 U.S.C. 824a-3).
            (2) Existing contracts.--The amendment made by paragraph 
        (1) shall not affect the continued validity and enforceability 
        of contracts entered into under section 210 of the Public 
        Utility Regulatory Policies Act of 1978 before the date of 
        enactment of this Act.
            (3) Continued jurisdiction.--Notwithstanding the amendment 
        made by paragraph (1), the Commission shall retain jurisdiction 
        to--
                    (A) ensure the continued status of qualifying small 
                power production facilities under section 210 of the 
                Public Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 824a-3); and
                    (B) continue exemptions granted under subsection 
                (e) of that section before the date of enactment of 
                this Act.
    (g) Powers.--The Commission may promulgate such regulations, 
conduct such investigations, and take such other actions as are 
necessary or appropriate to implement and obtain compliance with this 
section and regulations promulgated under this section.

SEC. 8. SELF-GENERATION AND NET METERING.

    (a) Definitions.--In this section:
            (1) Customer-generator.--The term ``customer-generator'' 
        means a retail electric customer that generates electricity 
        measured by a net metering system.
            (2) Electric company.--
                    (A) In general.--The term ``electric company'' 
                means a company that is engaged in the business of 
                distributing electricity to retail electric customers.
                    (B) Inclusions.--The term ``electric company'' 
                includes an investor-owned utility, public utility 
                district, irrigation district, port district, electric 
                cooperative, or municipal electric utility.
            (3) Net metering.--The term ``net metering'' means the 
        measuring of the difference between--
                    (A) the quantity of electricity supplied by an 
                electric company to a customer-generator during a 
                billing period; and
                    (B) the quantity of electricity generated by a 
                customer-generator and fed back to the electric company 
                by a net metering system during the billing period.
            (4) Net metering system.--The term ``net metering system'' 
        means a facility for generation of electricity that--
                    (A) is of not more than 100 kilowatts capacity;
                    (B) is interconnected and operates in parallel with 
                the transmission and distribution system of an electric 
                company;
                    (C) is intended primarily to offset some or all of 
                the electricity requirements of a customer-generator;
                    (D) is located on the premises of a customer-
                generator; and
                    (E) employs a renewable energy source.
    (b) Requirement To Allow Net Metering.--An electric company shall 
allow a retail electric customer to interconnect and employ a net 
metering system using--
            (1) a kilowatt-hour meter capable of registering the flow 
        of electricity in 2 directions; or
            (2) another type of comparably equipped meter that would 
        otherwise be applicable to the customer's usage but for the use 
        of net metering.
    (c) Net Metering Accounting.--
            (1) In general.--Electric energy measurements for a net 
        metering system shall be calculated in accordance with this 
        subsection.
            (2) Rates and charges.--An electric company--
                    (A) shall charge a customer-generator rates and 
                charges that are identical to those that would be 
                charged other retail electric customers of the electric 
                company in the same rate class; and
                    (B) shall not charge a customer-generator any 
                additional standby, capacity, interconnection, or other 
                rate or charge.
            (3) Measurement.--An electric company that supplies 
        electricity to a customer-generator shall measure the quantity 
        of electricity produced by the customer-generator and the 
        quantity of electricity consumed by the customer-generator 
        during a billing period in accordance with normal metering 
        practices.
            (4) Electricity supplied exceeding electricity generated.--
        If the quantity of electricity supplied by an electric company 
        during a billing period exceeds the quantity of electricity 
        generated by the customer-generator and fed back to the 
        electric distribution system during the billing period, 
the electric company may bill the customer-generator for the net 
quantity of electricity supplied by the electric company, in accordance 
with normal metering practices.
            (5) Electricity generated exceeding electricity supplied.--
        If the quantity of electricity generated by a customer-
        generator during a billing period exceeds the quantity of 
        electricity supplied by the electric company during the billing 
        period--
                    (A) the electric company may bill the customer-
                generator for the appropriate charges for the billing 
                period in accordance with paragraph (1); and
                    (B) the customer-generator shall be credited for 
                the excess kilowatt-hours generated during the billing 
                period, with the kilowatt-hour credit appearing on the 
                bill for the following billing period.
            (6) Unused credits.--At the beginning of each calendar 
        year, any unused kilowatt-hour credits accumulated by a 
        customer-generator during the previous calendar year shall 
        expire without compensation to the customer-generator.
    (d) Safety.--
            (1) Requirements.--
                    (A) Interim provision.--A net metering system using 
                photovoltaic generation shall conform to applicable 
                electrical safety, power quality, and interconnection 
                requirements established by the National Electrical 
                Code, the Institute of Electrical and Electronic 
                Engineers, and Underwriters Laboratories.
                    (B) Regulation.--Not later than March 1, 2001, the 
                Commission shall adopt electrical safety, power 
                quality, and interconnection requirements for net 
                metering systems that use generation technology other 
                than photovoltaic technology.
            (2) Testing and inspection.--An electric company may, at 
        its own expense, and upon reasonable written notice to a 
        customer-generator, perform such testing and inspection of a 
        net metering system as is necessary to demonstrate to the 
        satisfaction of the electric company that the system conforms 
        to applicable electric safety, power quality, and 
        interconnection requirements.
            (3) Additional meters.--An electric company may, at its own 
        expense and with the written consent of a customer-generator, 
        install 1 or more additional meters to monitor the flow of 
        electricity in each direction.

SEC. 9. DISCLOSURE REQUIREMENTS.

    (a) Definitions.--In this section:
            (1) Emissions data.--The term ``emissions data'' means the 
        type and amount of each pollutant emitted or released by a 
        generation facility in generating electricity.
            (2) Generation data.--The term ``generation data'' means 
        the type of fuel (such as coal, oil, nuclear energy, or solar 
        power) used by a generation facility to generate electricity.
    (b) Disclosure System.--The Secretary shall establish a system of 
disclosure that--
            (1) enables retail consumers to knowledgeably compare 
        retail electric service offerings, including comparisons based 
        on generation source portfolios, emissions data, and price 
        terms; and
            (2) considers such factors as--
                    (A) cost of implementation;
                    (B) confidentiality of information; and
                    (C) flexibility.
    (c) Regulation.--Not later than March 1, 2001, the Secretary, in 
consultation with the Board, and with the assistance of a Federal 
interagency task force that includes representatives of the Commission, 
the Federal Trade Commission, the Food and Drug Administration, and the 
Environmental Protection Agency, shall promulgate a regulation 
prescribing--
            (1) the form, content, and frequency of disclosure of 
        emissions data and generation data of electricity by generation 
        facilities to electricity wholesalers or retail companies and 
        by wholesalers to retail companies;
            (2) the form, content, and frequency of disclosure of 
        emissions data, generation data, and the price of electricity 
        by retail companies to ultimate consumers; and
            (3) the form, content, and frequency of disclosure of 
        emissions data, generation data, and the price of electricity 
        by generation facilities selling directly to ultimate 
        consumers.
    (d) Access to Records.--The Secretary shall have full access to the 
records of all generation facilities, electricity wholesalers, and 
retail companies to obtain any information necessary to administer and 
enforce this section.
    (e) Failure To Disclose.--The failure of a retail company to 
accurately disclose information as required by this section shall be 
treated as a deceptive act in commerce under section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45).
    (f) Regulations.--The Secretary may promulgate such regulations, 
conduct such investigations, and take such other actions as are 
necessary or appropriate to implement and obtain compliance with this 
section and regulations promulgated under this section.

SEC. 10. STATE AND LOCAL LAW.

    Nothing in this Act precludes a State or political subdivision of a 
State from adopting and enforcing--
            (1) any standard or limitation respecting emissions of air 
        pollutants; or
            (2) any requirement respecting control or abatement of air 
        pollution;
except that a State or political subdivision may not adopt or enforce 
any emission standard or limitation that is less stringent than the 
requirements imposed under this Act.
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