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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8968 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 8968

To amend the Federal Power Act to require annual reports on generation 
     and load capacity by Regional Transmission Organizations and 
Independent System Operators, to establish reliability markets, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              July 9, 2024

 Mrs. Lesko (for herself and Mr. Latta) introduced the following bill; 
       which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
To amend the Federal Power Act to require annual reports on generation 
     and load capacity by Regional Transmission Organizations and 
Independent System Operators, to establish reliability markets, 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 ``Keeping the Lights On Act''.

SEC. 2. ESTABLISHMENT OF RELIABILITY MARKETS FOR THE BULK-POWER SYSTEM.

    The Federal Power Act (16 U.S.C. 791a et seq.) is amended by 
inserting after section 215A the following:

``SEC. 215B. RELIABILITY MARKETS.

    ``(a) Purpose.--The purpose of this section is to ensure the 
reliability of the bulk-power system.
    ``(b) Reports on Generation and Load.--The Commission shall 
require, by rule or order, each RTO and ISO to submit to the 
Commission, not less frequently than once a year, a report that 
identifies, with respect to the public utilities that are part of the 
RTO or ISO--
            ``(1) the ten-year historical and ten-year projected gross 
        peak load and net peak load for every fifteen minutes of each 
        day of the year;
            ``(2) the impact of extreme weather on electric demand and 
        generation resource availability;
            ``(3) reserve margins of generation resource capacity based 
        on the generation resource types needed to meet demand for 
        every fifteen minutes of each day;
            ``(4) each generation resource (and the net capacity factor 
        of each generation resource), including each generation 
        resource that is a dispatchable on demand continuous resource, 
        a dispatchable on demand short-term resource, an intermittent 
        generation resource, or an inverter based generation resource;
            ``(5) the energy source, such as coal, nuclear, natural 
        gas, hydro, wind, or solar, of each generation resource 
        identified under paragraph (4);
            ``(6) whether a generation resource identified under 
        paragraph (4) relies on--
                    ``(A) fuel deliveries, including the method by 
                which such fuel is delivered (such as pipeline, rail, 
                or barge); and
                    ``(B) on-site fuel supplies (including how long the 
                generation resource can operate on such fuel supplies);
            ``(7) whether each generation resource identified under 
        paragraph (4) that is operated using natural gas is supplied by 
        firm transportation on natural gas pipelines;
            ``(8) whether the energy source of a generation resources 
        identified under paragraph (4) is dependant on the time of day 
        and weather;
            ``(9) projected shortfalls in generation needed to meet 
        system needs for every fifteen minutes of the day each year and 
        during extreme weather; and
            ``(10) other factors identified by the Commission as 
        important for the reliability of the bulk-power system.
    ``(c) Reliability Markets.--
            ``(1) New schedules.--Each RTO and ISO shall file under 
        section 205 a new schedule which shall ensure that dispatchable 
        on demand continuous resources are available when intermittent 
        generation resources are not available to meet net peak load 
        for every 15 minutes of each day of the year. A schedule filed 
        under section 205 pursuant to this paragraph that 
        differentiates between the operating characteristics of 
        generation resources for purposes of supporting the reliability 
        of the bulk-power system shall not be considered unjust, 
        unreasonable, or unduly preferential under section 205.
            ``(2) Establishment.--
                    ``(A) In general.--In approving a schedule filed 
                pursuant to paragraph (1), the Commission shall 
                consider one of the following:
                            ``(i) Establishing at least one reliability 
                        market where only dispatchable on demand 
                        continuous resources and dispatchable on demand 
                        short-term resources may participate, which may 
                        be established separately or combined for such 
                        dispatchable on demand continuous resources and 
                        dispatchable on demand short-term resources.
                            ``(ii) Establishing a reliability market or 
                        modifying existing capacity markets to require 
                        intermittent resources to purchase electricity 
                        generated by a dispatchable on demand 
                        continuous resource when the intermittent 
                        resource is not available to generate 
                        electricity.
                            ``(iii) Establishing another mechanism that 
                        will support the availability of dispatchable 
                        on demand continuous resources and dispatchable 
                        on demand short-term resources to support the 
                        reliability of the bulk-power systems at all 
                        times through the year (measured every 15 
                        minutes of each day).
                    ``(B) Charge for delivery failure.--The Commission 
                shall establish penalties for each generation resource 
                that fails to generate electricity in accordance with 
                the requirements of a market or mechanism established 
                under subparagraph (A).
                    ``(C) Forward procurement auction.--No public 
                utility may accept an offer at a forward procurement 
                auction for a price that is less than the marginal 
                costs to operate the public utility.
    ``(d) Commission Approval of Rates and Charges.--For the purposes 
of cost allocation of transmission services (including costs associated 
with interconnection, network upgrades, and the construction and 
expansion of new transmission lines), no rate or charge shall be 
considered just and reasonable under section 205--
            ``(1) if such rate or charge--
                    ``(A) socializes costs of transmission service to 
                electric consuming customers who do not receive direct 
                and quantifiable all-in costs of delivered electric 
                service or to meet reliability standards from the 
                transmission service; or
                    ``(B) allocates costs of transmission service to 
                the electric customers of one State for transmission 
                service that will primarily serve electric customers of 
                another State or region; and
            ``(2) direct benefits may include the energy and 
        transmission cost benefits (but must consider the cost of 
        generation, transmission reliability combined); direct benefits 
        shall not include environmental or health benefits; reduction 
        of greenhouse gas emissions; or environmental leakage between 
        States or regions; however the generating resource that causes 
        the need for transmission service may be permitted or required 
        to pay directly for the costs of transmission such service.
    ``(e) Expansion to Other States.--The Commission may not require 
any public utility or generation resource within a State or region to 
join an RTO or ISO unless the applicable State or State regulatory 
authority agrees to join the RTO or ISO.
    ``(f) No Environmental Requirements.--The Commission and each RTO 
and ISO may not impose environmental requirements, adjust rates to 
account for State environmental policies (including environmental 
leakage adjustments), or mandate environmental performance standards of 
any kind.
    ``(g) Prohibition on Confiscating Energy.--
            ``(1) Requirement.--Each RTO and ISO shall honor its 
        contractual commitments to wheel power outside its service area 
        and may not divert such power deliveries to serve its own load.
            ``(2) Penalties; damages.--If an RTO or ISO diverts power 
        from a utility to serve its own load, the RTO or ISO--
                    ``(A) shall be subject to penalties determined by 
                the Commission; and
                    ``(B) may be liable for damages pursuant to a 
                proceeding brought in a Federal district court.
    ``(h) Definitions.--In this section:
            ``(1) Bulk-power system; reliability standard.--The terms 
        `bulk-power system' and `reliability standard' have the 
        meanings given such terms in section 215(a).
            ``(2) Dispatchable on demand continuous resource.--The term 
        `dispatchable on demand continuous resource' means an 
        electricity generating resource--
                    ``(A) that can generate electricity as needed as 
                directed by the operator and not be dependent on the 
                time of day or the weather;
                    ``(B) that can maintain the requested generation 
                capacity for a minimum of 72 hours continuously; and
                    ``(C) the power output of which can be adjusted 
                according to the needs of the power grid.
            ``(3) Dispatchable on demand short-term resource.--The term 
        `dispatchable on demand short-term resource' means an 
        electricity generating resource--
                    ``(A) that can generate electricity as needed as 
                directed by the operator and not be dependent on the 
                time of day or the weather;
                    ``(B) that can be operational within three hours or 
                less of being called on to generate electricity;
                    ``(C) that has the capability to continually 
                operate for a minimum of 72 hours; and
                    ``(D) the power output of which can be adjusted 
                according to the needs of the power grid.
            ``(4) Environmental leakage.--The term `environmental 
        leakage' means where one State or region imposes certain 
        environmental limits or goals on electric generation and 
        another State or region does not and such differences allow a 
        generating resource without such environmental restrictions or 
        goals to generate and sell power cheaper than a generation 
        resource from another State or region.
            ``(5) Extreme weather.--The term `extreme weather'--
                    ``(A) means a weather event that is at the extremes 
                of the historical distribution; and
                    ``(B) includes unexpected, unusual, severe, or 
                unseasonal weather.
            ``(6) Firm.--The term `firm' means the electric generator 
        has priority transportation rights to a fuel supply. Storage 
        batteries that have three days of continuous discharge may be 
        considered firm.
            ``(7) Gross peak load.--The term `gross peak load' means 
        the total energy required to serve demand at its highest level 
        for each 15 minutes of every day of the year.
            ``(8) Intermittent resource.--The term `intermittent 
        resource' means an electric generation resource that depends on 
        the weather or time of day for its fuel source, such as wind or 
        solar.
            ``(9) Net capacity factor.--The net capacity factor of an 
        electric generator is the ratio of its actual output over two 
        consecutive calendar years, to its potential output if it were 
        possible for it to operate at full nameplate capacity during 
        the same two consecutive calendar years. To calculate the 
        capacity factor, take the total amount of energy the plant 
        produced during a period of time and divide by the amount of 
        energy the plant would have produced at full capacity.
            ``(10) Net peak load.--The term `net peak load' means the 
        difference of--
                    ``(A) gross peak load, minus
                    ``(B) intermittent generation resources used to 
                serve load for each 15 minutes of each day of the 
                year.''.

SEC. 3. COGENERATION AND SMALL, POWER PRODUCTION UNDER THE PUBLIC 
              UTILITY REGULATORY POLICIES ACT OF 1978.

    (a) Repeal.--Section 210 of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 824a-3) is repealed.
    (b) Existing Contracts.--The repeal of section 210 by subsection 
(a) shall not affect any contract or obligation in effect before the 
date of enactment of this Act.

SEC. 4. REBUTTABLE PRESUMPTION FOR CERTAIN CERTIFICATES ISSUED UNDER 
              THE NATURAL GAS ACT.

    Section 7(e) of the Natural Gas Act (15 U.S.C. 717f(e)) is amended 
by inserting the following at the end: ``When considering an 
application for a certificate of public convenience and necessity under 
this subsection for a facility that will serve in whole or in part an 
electric generation facility, it shall be a rebuttable presumption that 
the certificate is in the public interest and is or will be required by 
the present or future public convenience and necessity.''.
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