I

104TH CONGRESS

2D SESSION H. R. 3172

To establish a Commission to develop strategies and policies to mitigate

the environmental impacts associated with electric utility restructuring.

IN THE HOUSE OF REPRESENTATIVES

MARCH 27, 1996

Mr. KENNEDY of Rhode Island (for himself, Mr. BOEHLERT, Mr. MARKEY,

Mr. BLUTE, Mr. PALLONE, Mr. QUINN, Mr. TORKILDSEN, Mr. HINCHEY,

and Mr. GEJDENSON) introduced the following bill; which was referred

to the Committee on Commerce

A BILL

To establish a Commission to develop strategies and policies

to mitigate the environmental impacts associated with

electric utility restructuring.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Clean Power Produc5 tion Act’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) electric power utilities are a source of air

9 pollutant emissions such as nitrogen oxides (NOx),
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1 sulfur dioxide (SO2), and anthropogenic emissions of

2 carbon dioxide (CO2), a greenhouse gas;

3 (2) the electric utility industry is entering a pe4 riod of restructuring and deregulation in numerous

5 States, regions, and Federal administrative bodies;

6 (3) the opportunities for increased competition

7 offers potentially significant economic benefits to all

8 classes of consumers; however there remains a sub9 stantial risk of increased emissions and environ10 mental damages due to changed operating proce11 dures and market characteristics among electric util12 ity generators;

13 (4) studies have raised concerns regarding the

14 likely impacts of electric utility restructuring on the

15 environment, in particular, proposed restructuring

16 actions which may be taken by the Federal Energy

17 Regulatory Commission;

18 (5) there have been a number of proposals

19 among States for mitigating the environmental im20 pacts of electric utility restructuring, but no regional

21 or national mitigating strategies and policies have

22 been developed or implemented;

23 (6) it is in the national interest to further ex24 amine the entire range of environmental impacts as25 sociated with electric utility restructuring and to de-
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1 velop additional, more comprehensive strategies and

2 policy recommendations for addressing such impacts;

3 and

4 (7) it is in the national interest for Federal and

5 State utility regulators, Federal and State environ6 mental authorities, and all other affected parties, to

7 cooperate in the formulation of new policies and pro8 cedures that will result in no significant diminution

9 in the quality of the national and global environment

10 as a consequence of electric utility restructuring.

11 SEC. 3. ASSESSMENT OF ENVIRONMENTAL IMPACTS.

12 (a) IN GENERAL.—The Administrator of the Envi13 ronmental Protection Agency (hereinafter in this Act re14 ferred to as the ‘‘Administrator’’) shall undertake an as15 sessment of the reasonable range of environmental im16 pacts associated with the likely outcomes of electric utility

17 restructuring within and among regions. The assessment

18 shall consider significant proposed State and Federal al19 terations of public utility regulatory laws and the probable

20 results of these alterations upon emissions or on the envi21 ronment, including emissions of air pollutants, including

22 pollutants for which standards are in effect under section

23 109 of the Clean Air Act, carbon dioxide and other green24 house gases, carbon; and significant land and water im25 pacts.
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1 (b) CONSULTATION.—In performing the assessment

2 under this section the Administrator shall consult with the

3 Secretary of Energy, the Chair of the Federal Energy

4 Regulatory Commission, the Chair of the Council on Envi5 ronmental Quality, and other Federal and State agency

6 officials as appropriate.

7 (c) REPORT.—The Administrator shall submit a re8 port to Congress within 6 months after the enactment of

9 this Act containing the results of the assessment under

10 this section.

11 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

12 authorized to be appropriated to the Administration for

13 the fiscal year 1997 not more than $1,000,000 to be used

14 to carry out the assessment under this section.

15 SEC. 4. COMMISSION.

16 (a) ESTABLISHMENT.—The Administrator and the

17 Secretary of Energy shall establish and co-chair a commis18 sion to be known as the Commission for Environmental

19 Mitigation of Electric Utility Restructuring (hereinafter in

20 this section referred to as ‘‘the Commission’’). The Com21 mission shall include a representative from the Council on

22 Environmental Quality, the Federal Energy Regulatory

23 Commission, and the Council of Economic Advisors.

24 (b) PURPOSE.—The purpose of the Commission shall

25 be to develop strategies and policies, using the assessment
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1 prepared under section 3, to mitigate the environmental

2 impacts associated with electric utility restructuring. The

3 strategies and policies shall—

4 (1) not reduce the benefits of electric utility re5 structuring;

6 (2) preserve or enhance the quality of competi7 tion in the restructured industry, as well as preserv8 ing robust and fair competition between other fuels

9 and electricity;

10 (3) give due consideration to the impacts upon

11 companies or investors in companies that provide

12 service in the existing or restructured industry;

13 (4) rely to the maximum extent possible on vol14 untary measures, economic incentives, and market

15 based policies;

16 (5) be flexible and performance-based;

17 (6) fully mitigate all probable incremental envi18 ronmental impacts associated with electric utility re19 structuring;

20 (7) be consistent with the intent of existing

21 State and Federal environmental and siting statutes,

22 policies, and commitments; and

23 (8) assist the Nation in meeting its environ24 mental, economic, employment, and energy policy ob-
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1 jectives, including the efficient use of natural re2 sources.

3 (c) REPORT.—Within 12 months after the enactment

4 of this Act, the Commission shall submit a report to Con5 gress containing the recommendations for strategies and

6 policies developed under subsection (b). The report shall

7 include, at a minimum—

8 (1) recommendations for the alteration of exist9 ing Federal environmental or regulatory statutes;

10 (2) recommendations concerning rules and pro11 cedures for the operation of power pools, trans12 mission groups, or other coordinated power systems;

13 (3) recommendations concerning the need for

14 regional and interregional mechanisms or institu15 tions; and

16 (4) options for Federal, regional, or model

17 State policies to fully or adequately mitigate the ad18 verse environmental impacts of restructuring.

19 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

20 authorized to be appropriated for the fiscal years 1997

21 and 1998, $1,000,000 to the Environmental Protection

22 Agency and $1,000,000 to the Department of Energy to

23 carry out the duties of the Commission.
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1 SEC. 5. EXISTING AUTHORITIES OF FERC AND STATES.

2 Nothing in this Act shall be construed to limit or oth3 erwise adversely affect the authority of the Federal En4 ergy Regulatory Commission to address the mitigation of

5 adverse environmental impacts in any rulemaking relating

6 to the restructuring of the electric utility industry, com7 petition in wholesale energy markets, open transmission

8 access or any related matter. Nothing in this Act shall

9 be construed to limit or affect in any way the authority

10 of States to examine or address electric utility restructur11 ing concerns and related environmental issues that are

12 within the jurisdiction of State government authorities.

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