```

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4861 Introduced in House (IH)]

106th CONGRESS
  2d Session
                                H. R. 4861

To address the acid rain and greenhouse gas impacts of electric utility 
  restructuring and to encourage the development of renewable energy 
                   resources, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2000

Mr. Lazio (for himself and Mr. Boehlert) introduced the following bill; 
            which was referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL

 
To address the acid rain and greenhouse gas impacts of electric utility 
  restructuring and to encourage the development of renewable energy 
                   resources, 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 Power Act''.

SEC. 2. NITROGEN OXIDE AND CARBON DIOXIDE ALLOWANCE TRADING PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Affected facility.--The term ``affected facility'' 
        means--
                    (A) a combustion unit in the 48 contiguous States 
                and the District of Columbia that serves at least one 
                electric generator with a nameplate capacity of 25 
                megawatts or greater to generate electricity and that 
                combusts any fuel, including biomass, or
                    (B) a facility in the 48 contiguous States and the 
                District of Columbia generating 5 kilowatts of 
                electricity or greater using wind, geothermal, solar 
                thermal, or photovoltaic energy.
            (3) NO<INF>X</INF> allowance.--The term ``NO<INF>X</INF> 
        allowance'' means a limited authorization under subsection 
        (b)(3) to emit quantities of nitrogen oxide.
            (4) CO<INF>2</INF> allowance.--The term ``CO<INF>2</INF> 
        Allowance'' means a limited authorization under subsection 
        (b)(4) to emit quantities of carbon dioxide.
            (5) Program.--The term ``Program'' means the Nitrogen Oxide 
        or a Carbon Dioxide Allowance Program established under 
        subsection (b).
            (6) Total output production.--The term ``total output 
        production'' means the sum of electricity and steam generated 
        by all affected facilities in the 48 contiguous States and the 
        District of Columbia.
    (b) In General.--(1) Not later than 1 year after the date of 
enactment of this Act, the Administrator shall promulgate a final 
regulation to address interstate transport of nitrogen oxide and carbon 
dioxide pollution. Under such program, the Administrator shall 
establish a program to issue, record the sale or exchange of, and track 
NO<INF>X</INF> and CO<INF>2</INF> allowances and to monitor and track 
emissions of nitrogen oxide.
    (2) After January 1, 2005, the total number of NO<INF>X</INF> 
allowances distributed each year under such Program shall not be 
greater than 2,750,000 and the total number of CO<INF>2</INF> 
allowances distributed each year shall not be greater than 
1,914,000,000.
    (3) Each NO<INF>X</INF> allowance issued under such Program shall 
authorize an affected facility to emit--
            (A) \1/2\ ton of nitrogen oxide during the ozone period of 
        May 1 through September 30 of any year, or
            (B) 1 ton of nitrogen oxide for any period of any year not 
        covered in subparagraph (A).
    (4) Each CO<INF>2</INF> allowance issued under such program shall 
authorize an affected facility to emit 1 ton of carbon dioxide.
    (5) The regulations under this section shall require affected 
facilities to report electric generation and other data the 
Administrator deems necessary to determine allocations and to ensure 
compliance with the Program. The owner or operator of an affected 
facility shall be required to install and operate continuous emissions 
monitoring systems at the facility or an alternative monitoring system 
approved by the Administrator.
    (6) The regulation under this section shall establish a tracking 
system for NO<INF>X</INF> and CO<INF>2</INF> allowances. A 
NO<INF>X</INF> or CO<INF>2</INF> allowance allocation or transfer 
shall, on recordation by the Administrator, be considered to be a part 
of any operating permit requirements of each affected facility involved 
in the allocation or transfer, without a requirement for any further 
permit review or revision.
    (7) The use of any NO<INF>X</INF> or CO<INF>2</INF> allowance 
before the calendar year for which the NO<INF>X</INF> or CO<INF>2</INF> 
allowance is allocated shall be prohibited.
    (c) Allocations.--The Administrator shall promulgate regulations 
that shall--
            (1) place 5 percent of the total quantity of NO<INF>X</INF> 
        allowances and 5 percent of the total quantity of 
        CO<INF>2</INF> allowances available each year into a new source 
        reserve,
            (2) distribute to each affected facility the remaining 
        NO<INF>X</INF> and CO<INF>2</INF> allowances for each calendar 
        year,
            (3) distribute the allocations to each affected facility in 
        proportion to each affected facility's share of total output 
        production,
            (4) distribute 2 years of allowances to each affected 
        facility every 2 years, at least 6 months prior to the 
        beginning of the relevant 2-year period,
            (5) distribute to each new affected facility from the new 
        source reserve prior to the relevant control period, and
            (6) redistribute any allowances remaining in the new source 
        reserve after the relevant control period to--
                    (A) affected sources in proportion to each 
                facility's share of total output production, or
                    (B) the following year's new source reserve, if the 
                Administrator determines that the reserve will be 
                insufficient to meet expected need.
    (d) Insufficient Allowances.--If the Administrator determines that 
the quantity of allowances in the new source reserve in subsection (c) 
is insufficient to accommodate the operations of new facilities, the 
Administrator shall promulgate a regulation to set a new percentage of 
the total annual quantity of NO<INF>X</INF> or CO<INF>2</INF> 
allowances to place into the new source reserve, no later than 6 months 
prior to the beginning of the next 2-year allocation period.
    (e) Enforcement.--(1) An affected facility may not emit nitrogen 
oxides and carbon dioxide in excess of the amount permitted by the 
quantity of NO<INF>X</INF> or CO<INF>2</INF> allowances held by the 
designated representative of the affected facility in the 
NO<INF>X</INF> allowance tracking system starting in the calendar year 
2005.
    (2) If an affected facility emits nitrogen oxides in excess of the 
amount permitted, the Administrator shall calculate the deficit of 
additional NO<INF>X</INF> allowances the affected facility would 
require to authorize the emitted quantity of nitrogen oxides. The 
affected facility shall--
            (A) pay $6,000 for each additional NO<INF>X</INF> allowance 
        calculated, and
            (B) offset in the following calendar year a quantity of 
        NO<INF>X</INF> allowances equal to the number of NO<INF>X</INF> 
        allowances calculated.
    (3) If an affected facility emits carbon dioxide in excess of the 
amount permitted, the Administrator shall calculate the deficit of 
additional CO<INF>2</INF> allowances the affected facility would 
require to authorize the emitted quantity of carbon dioxide. The 
affected facility shall--
            (A) pay $100 for each additional CO<INF>2</INF> allowance 
        calculated, and
            (B) offset in the following year a quantity of 
        CO<INF>2</INF> allowances equal to the number of CO<INF>2</INF> 
        allowances calculated.
    (4) For every year after 2005, the Administrator shall annually 
adjust the amount of the penalty in paragraphs (2)(A) and (3)(A) to 
reflect changes in the Consumer Price Index.
    (f) Repeal of Other NO<INF>X</INF> Limitations.--Section 407 of the 
Clean Air Act (42 U.S.C. 7651f) is repealed as of the date the 
provisions of this section related to NO<INF>X</INF> are implemented.
    (g) Construction.--Neither a NO<INF>X</INF> allowance nor a 
CO<INF>2</INF> allowance shall be considered to be a property right. 
Notwithstanding any other provision of law, the Administrator may 
terminate or limit a NO<INF>X</INF> or CO<INF>2</INF> allowance.
    (h) Savings Provisions.--Nothing in this section affects the 
application of, or compliance with, the Clean Air Act for an affected 
facility, including the provisions related to applicable national 
ambient air quality standards and State implementation plans or 
requires a change in, affects, or limits any State law regulating 
electric utility rates or charges, including prudency review under 
State law, affects the application of the Federal Power Act (16 U.S.C. 
791a et seq.) or the authority of the Commission under that Act, or 
interferes with or impairs any program for competitive bidding for 
power supply in any State.

SEC. 3. SULFUR DIOXIDE ALLOWANCE PROGRAM REVISIONS.

    Section 402 of the Clean Air Act (42 U.S.C. 7651) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Allowance.--The term `allowance' means an 
        authorization, allocated to an affected unit by the 
        Administrator under this title, to emit, during or after a 
        specified calendar year--
                    ``(A) in the case of allowances allocated for 
                calendars years 1997 through 2004, one ton of sulfur 
                dioxide, and
                    ``(B) in the case of allowances allocated for 
                calendar year 2005 and each calendar year thereafter, 
                \1/4\ ton of sulfur dioxide.''.

SEC. 4. MERCURY EMISSION CONTROL.

    (a) Emission Controls.--The Administrator shall promulgate 
regulations based on the protection of human health and the environment 
controlling electric utility emissions of mercury in accordance with 
this section.
    (b) Nationwide Standard.--The nationwide standard under this 
section for calendar year 2005 and each year thereafter for electric 
utility emissions of mercury shall be not greater than 5 tons.
    (c) Factors.--The regulations under this section shall take into 
account technological feasibility, cost, and the projected reduction in 
levels of mercury emissions that will result from implementation of 
this Act. Such regulations shall prevent localized adverse effects on 
public health and the environment and shall prohibit emission trading 
in mercury.

SEC. 5. RENEWABLE PORTFOLIO STANDARD.

    (a) Standard.--Title II of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 and following) is amended by adding after 
section 214 the following new section:

``SEC. 215. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Effective Date.--The Administrator of the Energy Information 
Administration in the Department of Energy shall publish a notice on or 
before January 1, 2005, specifying the percentage of total electric 
energy generation in the United States that the Administrator estimates 
to be supplied by renewable energy during the calendar year 2004. If 
such percentage is less than 3 percent, this section shall take effect 
on January 1, 2005.
    ``(b) Minimum Renewable Generation Requirement.--(1) For each 
calendar year beginning after the effective date of this section, and 
ending January 1, 2010, a retail electric supplier shall submit to the 
Secretary of Energy (referred to in this section as the `Secretary') 
Renewable Energy Credits in an amount equal to 3 percent of the total 
electric energy sold by the retail electric supplier to electric 
consumers in the calendar year. For each calendar year beginning 
January 1, 2010, a retail electric supplier shall submit to the 
Secretary Renewable Energy Credits in an amount equal to 6 percent of 
the total electric energy sold by the retail electric supplier to 
electric consumers in the calendar year. The retail electric supplier 
shall make this submission before April 1 of the following calendar 
year.
    ``(2) For purposes of this section, a `renewable energy' resource 
means solar energy, wind, geothermal, or biomass.
    ``(3) This section does not preclude a State from requiring 
additional renewable energy generation in that State.
    ``(c) Submission of Credits.--A retail electric supplier may 
satisfy the requirements of subsection (a) through the submission of--
            ``(1) Renewable Energy Credits issued under subsection (d) 
        for renewable energy generated by the retail electric supplier 
        in the calendar year for which credits are being submitted or 
        any previous calendar year,
            ``(2) Renewable Energy Credits issued under subsection (d) 
        to any renewable energy generator for renewable energy 
        generated in the calendar year for which credits are being 
        submitted or a previous calendar year and acquired by the 
        retail electric supplier, or
            ``(3) any combination of credits under paragraphs (1) and 
        (2).
    ``(d) Issuance of Credits.--(1) The Secretary shall establish a 
program to issue, monitor the sale or exchange of, and track Renewable 
Energy Credits.
    ``(2) Under the program, an entity that generates electric energy 
through the use of a renewable energy resource may apply to the 
Secretary for the issuance of Renewable Energy Credits. The application 
shall indicate--
            ``(A) the type of renewable energy resource used to produce 
        the electricity,
            ``(B) the State in which the electric energy was produced, 
        and
            ``(C) any other information the Secretary determines 
        appropriate.
    ``(3)(A) Except as provided in subparagraph (B), the Secretary 
shall issue to an entity 1 Renewable Energy Credit for each kilowatt-
hour of electric energy the entity generates through the use of a 
renewable energy resource in any State in 2005 and any succeeding year.
    ``(B) To be eligible for a Renewable Energy Credit, the unit of 
electricity generated through the use of a renewable energy resource 
may be sold or may be used by the generator. If both a renewable energy 
resource and a nonrenewable energy resource are used to generate the 
electric energy, the Secretary shall issue credits based on the 
proportion of the renewable energy resource used. The Secretary shall 
identify Renewable Energy Credits by type of generation and by the 
State in which the generating facility is located.
    ``(4) In order to receive a Renewable Energy Credit, the recipient 
of a Renewable Energy Credit shall pay a fee, calculated by the 
Secretary, in an amount that is equal to the administrative costs of 
issuing, recording, monitoring the sale or exchange of, and tracking 
the credit, or does not exceed 5 percent of the dollar value of the 
credit, whichever is lower. The Secretary shall retain the fee and use 
it to pay these administrative costs.
    ``(5) When a generator sells electric energy generated through the 
use of a renewable energy resource to a retail electric supplier under 
a contract subject to section 210 of this Act, the retail electric 
supplier is treated as the generator of the electric energy for the 
purposes of this section for the duration of the contract.
    ``(6) The Secretary shall disqualify an otherwise eligible 
renewable energy generator from receiving a Renewable Energy Credit if 
the generator has elected to participate in net metering under section 
216.
    ``(e) Sale or Exchange.--A Renewable Energy Credit may be sold or 
exchanged by the entity to which it was issued or by any other entity 
that acquires the credit. A Renewable Energy Credit for any year that 
is not used to satisfy the minimum renewable generation requirement of 
subsection (a) for that year may be carried forward for use in another 
year.
    ``(f) Renewable Energy Credit Cost Cap.--Beginning on the effective 
date of this section, the Secretary shall offer Renewable Energy 
Credits for sale. The Secretary shall charge 1.5 cents for each 
Renewable Energy Credit sold during calendar year 2005, and on January 
1 of each following year, the Secretary shall adjust for inflation, 
based on the Consumer Price Index, the price charged per credit for 
that calendar year.
    ``(g) Renewable Energy and Energy Efficiency Fund.--The Secretary 
shall deposit in a separate account the amount received from a sale 
under subsection (f). Amounts in the separate account shall be 
available, without further appropriation, to the Secretary to be used 
for purposes of providing assistance for research and development of 
cleaner burning fuels, renewable energy, and energy efficiency.
    ``(h) Enforcement.--The Secretary may bring an action in the 
appropriate United States district court to impose a civil penalty on a 
retail electric supplier that does not comply with subsection (b). A 
retail electric supplier that does not submit the required number of 
Renewable Energy Credits under subsection (b) is subject to a civil 
penalty of not more than 3 times the value of the Renewable Energy 
Credits not submitted. For purposes of this subsection, the value of a 
Renewable Energy Credit is the price of a credit determined under 
subsection (f) for the year the credits were not submitted.
    ``(i) Information Collection.--The Secretary may collect the 
information necessary to verify and audit--
            ``(1) the annual electric energy generation and renewable 
        energy generation of any entity applying for Renewable Energy 
        Credits under this section,
            ``(2) the validity of Renewable Energy Credits submitted by 
        a retail electric supplier to the Secretary, and
            ``(3) the quantity of electricity sales of all retail 
        electric suppliers.
    ``(j) Sunset.--This section expires December 31, 2015.''.
    (b) Definitions.--Section 3 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2602) is amended by adding after 
paragraph (24) the following new paragraph:
            ``(25) The term `retail electric supplier' means a person, 
        State agency, or Federal agency that sells electric energy to 
        an electric consumer.''.
    (c) Table of Contents.--The table of contents for title II of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and 
following) is amended by adding the following at the end thereof:

``Sec. 215. Federal renewable portfolio standard.''.

SEC. 6. NET METERING.

    (a) Amendment of PURPA.--The Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2601 and following) is amended by adding the 
following new section after section 215, as added by section 5 of this 
Act:

``SEC. 216. NET METERING FOR RENEWABLE ENERGY.

    ``(a) Definitions.--For purposes of this section--
            ``(1) The term `eligible on-site generating facility' means 
        a facility on the site of an electric consumer with a peak 
        generating capacity of 100 kilowatts or less that is fueled 
        solely by a renewable energy resource.
            ``(2) The term `renewable energy resource' means solar 
        energy, wind, geothermal, or biomass.
            ``(3) The term `net metering service' means service to an 
        electric consumer under which electricity generated by that 
        consumer from an eligible on-site generating facility and 
        delivered to the distribution system through the same meter 
        through which purchased electricity is received may be used to 
        offset electricity provided by the retail electric supplier to 
        the electric consumer during the applicable billing period so 
        that an electric consumer is billed only for the net 
        electricity consumer during the billing period, but in no event 
        shall the net be less than zero during the applicable billing 
        period.
    ``(b) Requirement To Provide Net Metering Service.--Each retail 
electric supplier shall make available upon request net metering 
service to any retail electric consumer that the supplier currently 
serves or solicits for service.
    ``(c) State Authority.--This section does not preclude a State from 
imposing additional requirements consistent with the requirements in 
this section, including the imposition of a cap limiting the amount of 
net metering available in the State. Nothing in this Act or any other 
Federal law preempts or otherwise affects authority under State law to 
require a retail electric supplier to make available net metering 
service to a retail electric consumer which the supplier serves or 
offers to serve.''.
    (c) Table of Contents.--The table of contents for title II of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and 
following) is amended by adding the following at the end thereof:

``Sec. 216. Net metering for renewable energy.''.
                                 <all>
```