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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2098 Introduced in Senate (IS)]

106th CONGRESS
  2d Session
                                S. 2098

To facilitate the transition to more competitive and efficient electric 
           power markets, and to ensure electric reliability.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 24, 2000

 Mr. Murkowski (for himself and Ms. Landrieu) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL

 
To facilitate the transition to more competitive and efficient electric 
           power markets, and to ensure electric reliability.

    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 ``Electric Power Market Competition 
and Reliability Act''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
              TITLE I--AMENDMENTS TO THE FEDERAL POWER ACT

Sec. 101. Clarification of state-federal jurisdiction.
Sec. 102. Interstate transmission or support state retail competition.
Sec. 103. State authority to protect the public interest.
Sec. 104. Regional transmission organizations.
Sec. 105. State reciprocity authority.
Sec. 106. Application to state utility laws to retail sales to federal 
                            facilities.
Sec. 107. Stranded cost recovery.
Sec. 108. Savings clauses.
        TITLE II--REPEAL OF PURPA MANDATORY PURCHASE REQUIREMENT

Sec. 201. Prospective repeal of PURPA mandatory purchase requirement.
Sec. 202. Recovery of PURPA costs.
Sec. 203. Definitions.
                    TITLE III--ELECTRIC RELIABILITY

Sec. 301. Electric reliability organization and oversight.
Sec. 302. Application of antitrust laws.
Sec. 303. Savings clause.
Sec. 304. Regional advisory role.
Sec. 305. Application.
TITLE IV--REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 AND 
      ENACTMENT OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1999

Sec. 401. Short title.
Sec. 402. Findings and purposes.
Sec. 403. Definitions.
Sec. 404. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 405. Federal access to books and records.
Sec. 406. State access to books and records.
Sec. 407. Exemption authority.
Sec. 408. Affiliate transactions.
Sec. 409. Applicability.
Sec. 410. Effect on other regulations.
Sec. 411. Enforcement.
Sec. 412. Savings provisions.
Sec. 413. Implementation.
Sec. 414. Transfer of resources.
Sec. 415. Authorization of appropriations.
Sec. 416. Conforming amendment to the Federal Power Act.
                    TITLE V--NUCLEAR DECOMMISSIONING

Sec. 501. Short Title.
Sec. 502. Definitions.
Sec. 503. Nuclear Decommissioning Assurance Determination by the 
                            Nuclear Regulatory Commission.
Sec. 504. Amendments to the Federal Power Act.

              TITLE I--AMENDMENTS TO THE FEDERAL POWER ACT

SEC. 101. CLARIFICATION OF STATE-FEDERAL JURISDICTION.

    (a) Declaration.--Section 201(a) of the Federal Power Act is 
amended by--
            (1) inserting after ``transmission of electric energy in 
        interstate commerce'' the following: ``, including the 
        unbundled interstate transmission of electric energy sold at 
        retail''; and
            (2) adding at the end thereof: ``The bundled retail sale of 
        electric energy, unbundled local distribution service, 
        unbundled retail sale of electric energy, and facilities in 
        such State related to each of the foregoing, are subject to the 
        jurisdiction of the State in which the energy is consumed.''.
    (b) Application.--Section 201(b) of the Federal Power Act is 
amended by--
            (1) inserting after ``transmission of electric energy in 
        interstate commerce'' the following: ``, including the 
        unbundled interstate transmission of electric energy'';
            (2) striking ``sentence.'' and inserting ``sentence, except 
        with respect to determining, fixing, and otherwise regulating 
        the rates, terms, and conditions for the transmission of 
        electric energy in interstate commerce under this Part pursuant 
        to subsection (e)(2)''; and
            (3) adding at the end thereof:
            ``(3) The bundled retail sale of electric energy, unbundled 
        local distribution service, unbundled retail sale of electric 
        energy, and facilities in such State related to each of the 
        foregoing, are subject to the jurisdiction of the State in 
        which the energy is consumed. The Commission, after consulting 
        with and giving deference to the views of the appropriate State 
        regulatory authorities, shall determine, by rule or order, 
        which facilities used for the transmission and delivery of 
        electric energy are used for transmission in interstate 
        commerce subject to the jurisdiction of the Commission under 
        this Part, and which are used for local distribution subject to 
        State jurisdiction under this Part.''.
    (c) Definition of Interstate Commerce.--Section 201(c) of the 
Federal Power Act is amended by inserting after ``outside thereof'' the 
following: ``(including consumption in a foreign country)''.
    (d) Definitions of Types of Sales.--Section 201(d) of the Federal 
Power Act is amended by--
            (1) inserting ``(1)'' after the subsection designation;
            (2) adding at the end the following:
            ``(2) The term `bundled retail sale of electric energy' 
        means the sale of electric energy to an ultimate consumer in 
        which the generation and transmission service are not sold 
        separately.
            ``(3) The term `unbundled local distribution service' means 
        the delivery of electric energy to an ultimate consumer if--
                    ``(A) the electric energy and the service of 
                delivering it are sold separately, and
                    ``(B) the delivery uses facilities for local 
                distribution.
            ``(4) The term `unbundled transmission of electric energy 
        sold at retail' means the transmission of electric energy to an 
        ultimate consumer if--
                    ``(A) the electric energy and the service of 
                delivering it are sold separately, and
                    ``(B) the transmission uses facilities for 
                transmission in interstate commerce.
            ``(5) The term `unbundled retail sale of electric energy' 
        means the sale of electric energy to an ultimate consumer if--
                    ``(A) the electric energy and the service of 
                delivering it are sold separately, and
                    ``(B) the electric energy is delivered through 
                transmission or local distribution facilities.''.
    (e) Definition of Public Utility.--Section 201 of the Federal Power 
Act is amended by striking subsection (e) and inserting the following:
    ``(e) The term `public utility' means--
            ``(1) any person who owns or operates facilities subject to 
        the jurisdiction of the Commission under this Part (other than 
        facilities subject to such jurisdiction solely by reason of 
        section 210, 211, or 212); and
            ``(2) any electric utility or other entity that owns or 
        operates transmission facilities that provide transmission 
        services in interstate commerce not otherwise subject to the 
        jurisdiction of the Commission under this Part (other than a 
        utility to which section 212(k) applies) including, but not 
        limited to--
                    ``(A) the Tennessee Valley Authority,
                    ``(B) a Federal power marketing administration,
                    ``(C) a State or any political subdivision of a 
                State, or any agency, authority, or instrumentality of 
                a State or political subdivision thereof,
                    ``(D) a person who has ever received a loan for the 
                purpose of providing electric service from the 
                Administrator of the Rural Electrification 
                Administration or the Rural Utilities Service under the 
                Rural Electrification Act of 1936, or
                    ``(E) any corporation or other entity that is 
                wholly owned directly or indirectly, by any one or more 
                of the foregoing or by the Federal government--
        but only with respect to the determining, fixing, and otherwise 
        regulating the rates, terms, and conditions for the 
        transmission of electric energy in interstate commerce under 
        this Part.''.
    (f) Application of Part to Government Utilities.--Section 201(f) of 
the Federal Power Act is amended by striking ``No provision'' and 
inserting ``Except as provided in subsection (e)(2) and section 3(23) 
no provision''.
    (g) Definition of Transmitting Utility.--Section 3 of the Federal 
Power Act is amended by striking paragraph (23) and inserting the 
following:
            ``(23) Transmitting utility.--The term `transmitting 
        utility' means any public utility, as defined in section 
        201(e), that owns or operates electric power transmission 
facilities that provide transmission services in interstate commerce 
and are used for the sale of electric energy, and any utility to which 
section 212(k) applies.''.

SEC. 102. INTERSTATE TRANSMISSION TO SUPPORT STATE RETAIL COMPETITION.

    (a) FERC Authority.--
            (1) Section 211(a) of the Federal Power Act amended by 
        striking ``for resale''.
            (2) Section 212(a) of the Federal Power Act is amended by 
        striking ``wholesale transmission services'' each place is 
        appears and inserting ``transmission services'' in lieu 
        thereof.
    (b) Limitation on FERC Authority.--Section 212 of the Federal Power 
Act is amended by striking subsection (h) and inserting in lieu thereof 
the following:
    ``(h) Limitation on Commission Authority.--No rule or order issued 
under this Act shall require or be conditioned upon the transmission of 
electric energy:
            ``(1) directly to an ultimate consumer in connection with a 
        sale of electric energy to such consumer unless the seller of 
        such energy is permitted or required under applicable State law 
        to make such sale to such consumer, or
            ``(2) to, or for the benefit of, an electric utility or 
        other entity if such electric energy would be sold by such 
        utility or entity directly to an ultimate consumer, unless the 
        utility or entity is permitted or required under applicable 
        State law to sell electric energy to such ultimate consumer.''.
    (c) Conforming Amendment.--Section 3 of the Federal Power Act is 
amended by striking paragraph (24) and inserting the following:
            ``(24) Transmission services.--The term `transmission 
        services' means the transmission of electric energy in 
        interstate commerce.''.

SEC. 103. STATE AUTHORITY TO PROTECT THE PUBLIC INTEREST.

    The Federal Power Act is amended by adding the following:

``SEC. 215. STATE AUTHORITY TO PROTECT CONSUMERS.

    ``(a) Nothing in this Act precludes a State, in accordance with 
State law, from imposing a public interest requirement, on matters 
subject to State jurisdiction, the purposes of which may include but 
are not limited to--
            ``(1) distribution system reliability;
            ``(2) safety;
            ``(3) obligation to serve;
            ``(4) universal service;
            ``(5) assured service to low-income, rural and remote 
        consumers;
            ``(6) seller performance standards;
            ``(7) protection of retail consumers from unfair business 
        practices; and
            ``(8) any other matter affecting an ultimate consumer in 
        that State as may be in the public interest pursuant to State 
        law.
    ``(b) Nothing in this Act precludes a State, in accordance with 
State law, from imposing a public interest charge, on matters subject 
to State jurisdiction, the purpose of which may include but is not 
limited to--
            ``(1) assisting low-income consumers of electricity;
            ``(2) ensuring universal electric service, particularly 
        those consumers located in rural and remote areas;
            ``(3) funding for environmental programs, renewable-energy 
        programs, energy efficiency programs, and energy conservation 
        programs;
            ``(4) providing recovery of industry transition costs, 
        including, but not limited to, stranded costs resulting from 
        any action by any unit of Federal, State or local government;
            ``(5) providing transition costs of electricity workers 
        adversely affected by restructuring;
            ``(6) funding of research and development on electric 
        technologies; or
            ``(7) assisting any other program affecting ultimate 
        consumers in that State as may be authorized pursuant to State 
        law.''.

SEC. 104. REGIONAL TRANSMISSION ORGANIZATIONS.

    The Federal Power Act is amended by adding the following:

``SEC. 216. REGIONAL TRANSMISSION ORGANIZATIONS.

    ``(a) RTO Formation.--One or more transmitting utilities may file 
with the Commission an application to form, implement or participate in 
a regional transmission organization. After notice and an opportunity 
for a hearing, the Commission shall approve an application by one or 
more transmitting utilities to form, implement, or participate in a 
regional transmission organization when the Commission finds that the 
regional transmission organization complies with the standards listed 
in subsection (b). The Commission shall apply the standards set forth 
in subsection (b) without regard to the specific structure type or form 
of proposed regional transmission organization. If a transmitting 
utility forms, or voluntarily agrees to participate in, a regional 
transmission organization that complies with the standards in 
subsection (b), the Commission shall have no authority to compel the 
transmitting utility to participate in a different regional 
transmission organization directly or as a condition of the receipt of 
any other approval from the Commission; nor shall the Commission have 
the authority to add to or change the terms or conditions of such 
application without affording a transmitting utility the opportunity to 
withdraw from the regional transmission organization if it finds such 
terms and conditions to be unacceptable. The Commission may also 
approve a regional transmission organization that does not satisfy all 
such standards if the Commission determines that the regional 
transmission organization contains features that are consistent with or 
superior to the standards listed in subsection (b).
    ``(b) RTO Standards.--The standards for a regional transmission 
organization are:
            ``(1) Independence: The regional transmission organization 
        must be independent of all market participants. No market 
        participant shall exercise control over the operation of the 
        regional transmission organization. For purposes of determining 
        whether a regional transmission organization is independent of 
        all market participants, ownership of passive, non-voting 
        interests in a regional transmission organization, or ownership 
        of five (5) percent or less of the voting interests in the 
        regional transmission organization, shall be deemed not to 
        confer control over the regional transmission organization for 
        purposes of this subsection. For purposes of this subsection, 
        the term `voting interest' shall not include the right to 
        participate in major organic corporate changes to the regional 
        transmission organization that affect the ownership status of 
        the nonvoting interests.
            ``(2) Scope and Configuration: The regional transmission 
        organization must operate transmission facilities that comprise 
        an appropriate scope and regional configuration. In determining 
        whether a regional transmission organization contains an 
        appropriate scope and configuration, the Commission shall 
        employ a rebuttable presumption that the configuration selected 
        by the regional transmission organization is in the public 
        interest. This presumption can be rebutted upon a 
        demonstration, based on the preponderance of the evidence, that 
        the proposed configuration is not in the public interest.
            ``(3) Operational Authority: The regional transmission 
        organization must possess sufficient operational authority for 
        all transmission facilities under its control to maintain the 
        security and stability of the synchronous transmission grid.
            ``(4) Reliability: The regional transmission organization 
        must have the responsibility for facilitating the commercial 
        use of the transmission system in a manner consistent with 
        maintaining reliability (adequacy and security) to end-use 
        customers. The regional transmission organization shall have 
        the authority to review and approve interconnections to the 
        transmission system to ensure that such interconnections do not 
        threaten the reliability of the transmission system under the 
        operational control of the regional transmission organization.
            ``(5) Transmission Tariff: The regional transmission 
        organization must administer a tariff that will promote 
        efficient use and expansion of transmission facilities, and 
        operate a single Open Access Same Time Information System (as 
        defined by the Commission) for all transmission facilities 
        under its control, provided that nothing in this section shall 
        preclude a transmitting utility from filing with the 
        Commission's original or amended rates concerning transmission 
        service on such utility's facilities.
            ``(6) Ancillary Services: The regional transmission 
        organization must serve as a supplier of last resort for the 
        following ancillary services: (a) Scheduling, System Control 
        and Dispatching Service; and (b) Reactive Supply and Voltage 
        Control from Generation Services. For purposes of this section, 
        `Scheduling, System Control and Dispatching Service' and 1 
        `Reactive Supply and Voltage Control from Generation Services' 
        shall be defined by the Commission.
            ``(7) Market Monitoring: The regional transmission 
        organization must monitor transmission-related markets, 
        including ancillary services and congestion management markets, 
        to identify market design flaws. The market monitoring feature 
        may provide for its automatic expiration within a fixed period 
        of time, provided that the fixed period of time shall be no 
        shorter than five years and that the Commission may approve an 
        extension of the monitoring feature provided that, absent the 
        consent of the regional transmission organization, such 
        extension shall be for a period no longer than five years; and
            ``(8) Expansion: The regional transmission organization 
        must plan and coordinate necessary transmission additions and 
        upgrades in accordance with the provisions of section 217.
    ``(c) Government Transmitting Utility Participation.--The Tennessee 
Valley Authority, the Bonneville Power Administration, the Southwestern 
Power Administration, or the Western Area Power Administration are each 
authorized to participate in a regional transmission organization after 
conducting a public process in the relevant region to receive comments. 
Notwithstanding any other law, participation may include delegation of 
operation and control of the transmission system concerned to a 
regional transmission organization or other method of participation, 
under terms and conditions the Tennessee Valley Authority or the power 
marketing administration concerned determines necessary or appropriate, 
including being bound by operational and other orders of the regional 
transmission organization and by the results of arbitration of disputes 
with the organization or with other participants.

``SEC. 217. ELECTRIC TRANSMISSION CONSTRUCTION AND EXPANSION.

    ``(a) Transmission Expansion Planning Process.--A regional 
transmission organization, a member of a regional transmission 
organization, or any other applicant (provided that the application is 
consistent with a planning process approved by a regional transmission 
organization or comparable regional transmission planning entity), may 
develop and submit for review and approval by the Commission a 
transmission expansion planning process for the construction and 
expansion of the transmission facilities it operates or proposes to 
operate. The Commission shall approve the transmission expansion 
planning process if the planning process--
            ``(1) permits the input of all market participants and 
        other persons in the region and other interconnected regions;
            ``(2) is designed to determine efficient solutions to 
        relieve constraints in the transmission system without 
        preference for either transmission or generation solutions; and
            ``(3) provides for aggrieved market participants or other 
        persons to contest the plans through an alternative dispute 
        resolution process or through review by the Commission.
    ``(b) Construction Certificates.--The Commission shall, after 
notice and opportunity for hearing, approve a request of a regional 
transmission organization (or such member or other applicant) for a 
certificate of public convenience and necessity to construct any 
proposed transmission facilities developed through a transmission 
expansion plan resulting from a transmission expansion planning process 
approved by the Commission under subsection (a), if it finds:
            ``(1)(A) a State in which the transmission facilities are 
        to be constructed or modified is without authority to approve 
        the siting of the facilities, or
            ``(B) any State commission or body in a State in which the 
        transmission facilities are to be constructed or modified has 
        authority to approve the siting of the facilities but has 
        withheld approval, modified or conditioned its approval in a 
        manner that materially alters the transmission expansion plan, 
        or delayed the final determination of its approval for more 
        than one year after the filing of an application seeking 
        approval; and
            ``(2) the facilities to be authorized by the certificate 
        are or will be required by the present or future public 
        convenience and necessity.
The Commission shall have the power to attach to the issuance of such 
certificate and to the exercise of the rights granted thereunder such 
reasonable terms and conditions related to the construction of such 
facility as the public convenience and necessity may require; provided 
that the Commission shall have no authority to compel the construction 
or enlargement of transmission facilities directly or indirectly, 
including as a condition of the receipt of any other approval from the 
Commission. The Commission shall issue its final decision in the 
certificate proceeding within 180 days after the filing of the request 
for a certificate.
    ``(c) Applications for Certificates.--Applications for certificates 
under subsection (b) shall be made in writing to the Commission, be 
verified under oath, and shall be in such form, contain such 
information, and notice thereof shall be served upon such interested 
parties and in such manner as the Commission shall, by regulation, 
require.
    ``(d) Comments.--In any proceeding before the Commission initiated 
under subsection (b), the Commission shall afford each State in which 
transmission facilities covered by the certificate is or will be 
located and other interested parties a reasonable opportunity to 
present their views and recommendations with respect to the need for 
and impact of any facilities covered by the certificate.
    ``(e) Right of Eminent Domain.--When any holder of a certificate of 
public convenience and necessity for electric transmission facilities 
issued by the Commission pursuant to subsection (b) cannot acquire by 
contract, or is unable to agree with the owner of the property to the 
compensation to be paid for the necessary rights-of-way to construct, 
operate and maintain such transmission facility, it may acquire the 
same by the exercise of the right of eminent domain in the district 
court of the United States for the district in which such property may 
be located, or in the State courts. The practice and procedure in any 
action or proceeding for that purpose in the district court of the 
United States shall conform as nearly as may be with the practice and 
procedure in similar action or proceeding in the courts of the State 
where the property is situated.
    ``(f) Cost Recovery.--All reasonable costs for the construction, 
operation and maintenance of transmission facilities developed through 
a transmission expansion planning process approved by the Commission 
under subsection (a) shall be recoverable in the transmission rates 
charged by the regional transmission organization or other such 
applicant.
    ``(g) State Law.--Nothing in this section shall preclude any person 
from constructing any transmission facilities pursuant to State law.

``SEC. 218. PRICING POLICIES FOR REGIONAL TRANSMISSION ORGANIZATIONS.

    ``(a) Innovative Transmission Pricing Policies.--The Commission 
shall encourage innovative transmission pricing policies for a regional 
transmission organization approved under section 216, a comparable 
transmission organization approved by the Commission before the 
enactment of this Act, or a transmitting utility whose facilities are 
controlled but not owned by either such entity. Such transmission 
pricing policies shall:
            ``(1) Incentives for Voluntary Regional Transmission 
        Organizations: Provide incentives to transmitting utilities to 
        promote the voluntary participation and formation of regional 
        transmission organizations, without having the effect of 
        forcing transmitting utilities to join regional transmission 
        organizations and extend such incentives to transmitting 
        utilities that already have formed a regional transmission 
        organization;
            ``(2) Limits on Certain Charges: Limit separate, additive 
        access charges for transmission service over the transmission 
        facilities operated by the regional transmission organization, 
        provided, however, that a reasonable transition mechanism or 
        period may be used before eliminating such separate, additive 
        access charges;
            ``(3) Limits on Cost Shifting: Minimize the shifting of 
        costs among existing customers of the transmitting utilities 
within the regional transmission organization, including permitting the 
use of transmission rates based on a single transmitting utility's 
costs for transmission service provided within the regional 
transmission organization;
            ``(4) Innovative Management and Rates: Encourage the 
        efficient and reliable operation of the transmission grid and 
        supply of transmission services through congestion management, 
        performance-based or incentive ratemaking, and other measures; 
        and
            ``(5) Efficient Transmission Investment: Encourage 
        efficient and adequate investment in and expansion of the 
        transmission facilities owned and/or controlled by the regional 
        transmission organization.
    ``(b) Negotiated Rates.--The Commission may permit the charging of 
negotiated rates for transmission services under this section without 
regard to costs whenever an individual company or companies are willing 
to pay such negotiated rates, provided, however, that costs associated 
with such negotiated rates shall not be recovered from other 
transmission customers.
    ``(c) Commission Rules.--Within 180 days of the enactment of this 
section, the Commission shall establish by rule definitions and 
standards to govern its approval of performance-based or incentive 
pricing policies under subsection (a) and negotiated rates under 
subsection (b). With respect to performance-based or incentive rates, 
the definitions and standards shall include, but not be limited to, (1) 
a method for calculating initial transmission rates (including price 
caps that would include discounting); (2) an index mechanism for 
adjusting initial rates; (3) time periods for redetermining initial 
rates; and (4) costs to be excluded from performance-based rates.''.

SEC. 105. STATE RECIPROCITY AUTHORITY.

    The Federal Power Act is amended by adding the following:

``SEC. 219. STATE AUTHORITY TO IMPOSE RECIPROCITY REQUIREMENTS.

    ``A State or State commission may prohibit an electric utility from 
selling electric energy to an ultimate consumer in such State if such 
electric utility or any of its affiliates owns or controls transmission 
or local distribution facilities and is not itself providing unbundled 
local distribution service in a State in which such electric utility 
owns or operates a facility used for the generation of electric 
energy.''.

SEC. 106. APPLICATION OF STATE UTILITY LAWS TO RETAIL SALES TO FEDERAL 
              FACILITIES.

    The Federal Power Act is amended by adding the following:

``SEC. 220. APPLICATION OF STATE UTILITY LAWS TO FEDERAL FACILITIES.

    ``Neither this Act nor any other Act preempts the application of 
State utility laws with respect to the retail sale of electric energy 
to or the provision of local distribution service to a facility of a 
department, agency or instrumentality of the United States.''.

SEC. 107. STRANDED COST RECOVERY.

    It is the sense of the Congress that public utilities are entitled 
to fully recover all prudently incurred wholesale and retail costs that 
become stranded as a result of changes in public policy with respect to 
competition and industry structure.

SEC. 108. SAVINGS CLAUSES.

    (a) State Authority To Order Retail Access.--Neither silence on the 
part of Congress nor any Act of Congress shall be construed to preclude 
a State or State commission, acting under authority of State law, from 
requiring an electric utility subject to its jurisdiction to provide 
unbundled local distribution service to any electric consumers within 
such state.
    (b) Existing State Programs.--Nothing in this Act nor any amendment 
to the Federal Power Act made by this Act preempts, overrides or 
requires any change in the terms of any State retail access plan 
enacted, adopted, approved or promulgated prior to the enactment of 
this Act.
    (c) Existing Contracts and Agreements.--Nothing in this Act nor any 
amendment to the Federal Power Act made by this Act expressly or 
impliedly preempts the continuing applicability, according to its 
terms, of any contract, tariff, rate schedule, certificate, license, 
settlement, intra-corporate transfer or sale of electricity or other 
services or products, or any other valid agreement for any wholesale or 
retail sale or purchase of electricity in effect on the date of 
enactment of this Act.
    (d) Prior Prudence Determinations.--Nothing in this Act nor any 
amendment to the Federal Power Act made by this Act affects, reopens, 
modifies, reverses, or invalidates any determination, finding, order, 
or ruling made by, or any agreement entered into or approved by, the 
Federal Energy Regulatory Commission or any State regulatory authority, 
made prior to the date of enactment of such amendments regarding--
            (1) the prudence of any cost incurred by an electric 
        utility to provide service to any consumer;
            (2) any cost allowed to be recovered, or to be recovered, 
        or deferred in the rates of an electric utility whether under 
        rule, regulation or order of the Commission or a State 
        regulatory authority; or
            (3) the allocation of any cost among two or more associate 
        companies of a public utility holding company system.

        TITLE II--REPEAL OF PURPA MANDATORY PURCHASE REQUIREMENT

SEC. 201. PROSPECTIVE REPEAL OF PURPA MANDATORY PURCHASE REQUIREMENT.

    (a) New Contracts.--No electric utility shall be required to 
enter into a new contract or obligation to purchase or to sell 
electricity or capacity under section 210 of the Public Utility 
Regulatory Policies Act of 1978.
    (b) Existing Rights and Remedies.--Nothing in this Title affects 
the rights or remedies of any party with respect to the purchase or 
sale of electricity or capacity from or to a facility determined to be 
a qualifying small power production facility or a qualifying 
congeneration facility under section 210 of the Public Utility 
Regulatory Policies Act of 1978, under any contract or obligation to 
purchase or to sell electricity or capacity in effect on the date of 
enactment of this Act, including the right to recover the costs of 
purchasing the electricity of capacity.
    (c) Interpretations and Actions Taken.--Nothing in this Title 
implies Congressional ratification of any interpretation of, or any 
action taken under, the Public Utility Regulatory Policies Act of 1978.

SEC. 202. RECOVERY OF PURPA COSTS.

    (a) Regulation.--To ensure recovery by any electric utility that 
purchases electricity or capacity from a qualifying facility pursuant 
to any legally enforceable obligation entered into or imposed under 
section 210 of the Public Utility Regulatory Policies Act of 1978 
before the date of enactment of this Act of all costs associated with 
such purchases, the Federal Regulatory Commission shall promulgate and 
enforce such regulations, pursuant to its authority under the Federal 
Power Act, as are required to ensure that no electric utility shall be 
required directly or indirectly to absorb the costs associated with 
such purchases.
    (b) Treatment.--A regulation under subsection (a) shall be treated 
as a rule enforceable under the Federal Power Act.

SEC. 203. DEFINITIONS.

    For the purposes of this Title--
            (1) The term ``electric utility'' has the same meaning 
        given the term in section 3(4) of the Public Utility Regulatory 
        Policies Act of 1978.
            (2) The term ``qualifying cogeneration facility'' has the 
        meaning given the term in section 3 of the Federal Power Act.
            (3) The term ``qualifying small power production facility'' 
        has the meaning given the term in section 3 of the Federal 
        Power Act.
            (4) The term ``qualifying facility'' means--
                    (A) a qualifying cogeneration facility; or
                    (B) a qualifying small power production facility.

                    TITLE III--ELECTRIC RELIABILITY

SEC. 301. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.

    (a) The Federal Power Act is amended by adding the following:

``SEC. 221. ELECTRIC RELIABILITY ORGANIZATION.

    ``(a) Definitions.--As used in this section:
            ``(1) The term `Affiliated Regional Reliability Entity' 
        means an entity delegated authority under the provisions of 
        subsection (h).
            ``(2) The term `Bulk-Power System' means all facilities and 
        control systems necessary for operating an interconnected 
        transmission grid (or any portion thereof), including high-
        voltage transmission lines, substations, control centers, 
        communications, data, and operations planning facilities, and 
        the output of generating units necessary to maintain 
        transmissions system reliability.
            ``(3) The term `Electric Reliability Organization' or 
        `Organization' means the organization approved by the 
        Commission under subsection (d)(4).
            ``(4) The term `Entity Rule' means a rule adopted by an 
        Affiliated Regional Reliability Entity for a specific region 
        and designed to implement or enforce one or more Organization 
        Standards. An Entity Rule shall be subject to approval by the 
        Organization and once approved, shall be treated as an 
        Organization Standard.
            ``(5) The term `Industry Sector' means a group of Users of 
        the Bulk Power System with substantially similar commercial 
        interests, as determined by the board of the Electric 
        Reliability Organization.
            ``(6) The term `Interconnection' means a geographic area in 
        which the operation of Bulk-Power System components is 
        synchronized such that the failure of one or more of such 
        components may adversely affect the ability of the operators of 
        other components within the Interconnection to maintain safe 
        and reliable operation of the facilities within their control.
            ``(7) The term `Organization Standard' means a policy or 
        standard duly adopted by the Electric Reliability Organization 
        to provide for the reliable operation of a Bulk-Power System.
            ``(8) The term `Public Interest Group' means any non-profit 
        private or public organization that has an interest in the 
        activities of the Electric Reliability Organization, including, 
        but not limited to, ratepayer advocates, environmental groups, 
        and State and local government organizations that regulate 
        market participants and promulgate government policy.
            ``(9) The term `Variance' means an exception or variance 
        from the requirements of an Organization Standard (including a 
        proposal for an Organization standard where there is no 
        Organization standard) that is adopted by an Affiliated 
        Regional Reliability Entity and applicable to all or a part of 
        the region for which the Affiliated Regional Reliability Entity 
        is responsible. A Variance shall be subject to approval by the 
        Organization and once approved, shall be treated as an 
        Organization Standard.
          ``(10) The term `System Operator' means any entity that 
        operates or is responsible for the operation of a Bulk-Power 
        System, including but not limited to a control area operator, 
        an independent system operator, a transmission company, a 
        transmission system operator, or a regional security 
        coordinator.
            ``(11) The term `User of the Bulk-Power System' means 
any entity that sells, purchases, or transmits electric energy over a 
Bulk-Power System, or that owns, operates or maintains facilities or 
control systems that are part of a Bulk-Power System, or that is a 
System Operator.
    ``(b) Commission Authority.--
            ``(1) Within the United States, the Commission shall have 
        jurisdiction over the Electric Reliability Organization, all 
        Affiliated Regional Reliability Entities, all System Operators, 
        and all Users of the Bulk-Power System, for purposes of 
        approving and enforcing compliance with the requirements of 
        this section, notwithstanding section 201(f).
            ``(2) The Commission may, by rule, define any other term 
        used in this section, provided such definition is consistent 
        with the definitions in, and the purpose and intent of, this 
        Act.
    ``(c) Existing Reliability Standards.--Following enactment of this 
section, and prior to the approval of an Organization under subsection 
(d), any person, including the North American Electric Reliability 
Council and its member Regional Reliability Councils, shall file with 
the Commission any reliability standard, guidance, practice or 
amendment thereto that is proposed to be made mandatory and 
enforceable. The Commission, after allowing interested persons an 
opportunity to submit comments, may approve any such proposed mandatory 
standard, guidance or practice, or any amendment thereto, if it finds 
that the standard, guidance, or practice, or amendment is just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. The Commission may, without further proceeding or 
finding, grant its approval to any standard, guidance or practice for 
which no substantive objections are filed in the comment period. Filed 
standards, guidances, or practices, including any amendments thereto, 
shall be mandatory and applicable according to their terms following 
approval by the Commission and shall remain in effect until (i) 
withdrawn, disapproved or superseded by an Organization Standard, 
issued or approved by the Electric Reliability Organization and made 
effective by the Commission under section (e); or (ii) disapproved or 
suspended by the Commission if, upon complaint or upon its own motion 
and after notice and an opportunity for comment, the Commission finds 
the standard, guidance or practice unjust, unreasonable, unduly 
discriminatory, or preferential or not in the public interest. 
Standards, guidances or practices in effect pursuant to the provisions 
of this subsection shall be enforceable by the Commission.
    ``(d) Organization Approval.--
            ``(1) Not later than 90 days after the date of enactment of 
        this section, the Commission shall issue proposed rules 
        specifying procedures and requirements for an entity to apply 
        for approval as the Electric Reliability Organization. The 
        Commission shall provide notice and opportunity for comment on 
        the proposed rules. The Commission shall issue a final rule 
        under this subsection within 180 days after the date of 
        enactment of this section.
            ``(2) Following the issuance of a final Commission rule 
        under paragraph (1), an entity may submit an application to the 
        Commission for approval as the Electric Reliability 
        Organization. The applicant shall specify in its application 
        its governance and procedures, as well as its funding mechanism 
        and initial funding requirements.
            ``(3) The Commission shall provide public notice of the 
        application and afford interested parties an opportunity to 
        comment.
            ``(4) The Commission shall approve the application if the 
        Commission determines that the applicant--
                    ``(A) has the ability to develop, implement and 
                enforce standards that provide for an adequate level of 
                reliability of the Bulk-Power System;
                    ``(B) permits voluntary membership to any User of 
                the Bulk-Power System or Public Interest Group;
                    ``(C) assures fair representation of its members in 
                the selection of its directors and fair management of 
                its affairs, taking into account the need for 
                efficiency and effectiveness in decisionmaking and 
                operations and the requirements for technical 
                competency in the development of Organization Standards 
                and the exercise of oversight of Bulk-Power System 
                reliability;
                    ``(D) assures that no two Industry Sectors have the 
                ability to control, and no one Industry Sector has the 
                ability to veto, the Electric Reliability 
                Organization's discharge of its responsibilities 
                (including actions by committees recommending standards 
                to the board or other board actions to implement and 
                enforce standards);
                    ``(E) provides for governance by a board wholly 
                comprised of independent directors;
                    ``(F) provides a funding mechanism and requirements 
                that are just, reasonable and not unduly discriminatory 
                or preferential and are in the public interest, and 
                which satisfy the requirements of subsection (l);
                    ``(G) establishes procedures for development of 
                Organization Standards that provide reasonable notice 
                and opportunity for public comment, taking into account 
                the need for efficiency and effectiveness in 
                decisionmaking and operations and the requirements for 
                technical competency in the development of Organization 
                Standards, and which standards development process has 
                the following attributes: (i) openness, (ii) balance of 
                interests, and (iii) due process, except that the 
                procedures may include alternative procedures 
for emergencies;
                    ``(H) establishes fair and impartial procedures for 
                implementation and enforcement of Organization 
                Standards, either directly or through delegation to an 
                Affiliated Regional Reliability Entity, including the 
                imposition of penalties, limitations on activities, 
                functions, or operations, or other appropriate 
                sanctions;
                    ``(I) establishes procedures for notice and 
                opportunity for public observation of all meetings, 
                except that the procedures for public observation may 
                include alternative procedures for emergencies or for 
                the discussion of information the directors determine 
                should take place in closed session, such as 
                litigation, personnel actions, or commercially 
                sensitive information;
                    ``(J) provides for the consideration of 
                recommendations of States and State commissions, and
                    ``(K) addresses other matters that the Commission 
                may deem necessary or appropriate to ensure that the 
                procedures, governance, and funding of the Electric 
                Reliability Organization are just, reasonable, not 
                unduly discriminatory or preferential, and are in the 
                public interest.
            ``(5) The Commission shall approve only one Electric 
        Reliability Organization. If the Commission receives two or 
        more timely applications that satisfy the requirements of this 
        subsection, the Commission shall approve only the application 
        it concludes will best implement the provisions of this 
        section.
    ``(e) Establishment of and Modifications to Organization 
Standards.--
            ``(1) The Electric Reliability Organization shall file with 
        the Commission any new or modified Organization Standards, 
        including any Variances or Entity Rules, and the Commission 
        shall follow the procedures under paragraph (2) for review of 
        that filing.
            ``(2) Submissions under paragraph (1) shall include: (i) a 
        concise statement of the purpose of the proposal, and (ii) a 
        record of any proceedings conducted with respect to such 
        proposal. The Commission shall provide notice of the filing of 
        such proposal and afford interested persons 30 days to submit 
        comments. The Commission, after taking into consideration any 
        submitted comments, shall approve or disapprove such proposal 
        not later than 60 day after the deadline for the submission of 
        comments, except that the Commission may extend the 60 day 
        period for an additional 90 days for good cause, and except 
        further that if the Commission does not act to approve or 
        disapprove a proposal within the foregoing periods the proposal 
        shall go into effect subject to its terms, without prejudice to 
        the authority of the Commission thereafter to suspend or modify 
        the proposal in accordance with the standards and requirements 
        of this section. Proposals approved by the Commission shall 
        take effect according to their terms but not earlier than 30 
        days after the effective date of the Commission's order, except 
        as provided in paragraph (3) of this subsection.
            ``(3)(A) In the exercise of its review responsibilities 
        under this subsection, the Commission shall give due weight to 
        the technical expertise of the Electric Reliability 
        Organization with respect to the content of a new or modified 
        Organization Standard, but shall not defer to the Organization 
        with respect to the effect of the standard on competition. The 
        Commission shall approve a proposed new or modified 
        Organization Standard if it determines the proposal to be just, 
        reasonable, not unduly discriminatory or preferential, and in 
        the public interest. The Commission, either upon complaint or 
        upon its own motion, may suspend an existing Organization 
        Standard, if it determines the standard to be unjust, 
        unreasonable, unduly discriminatory or preferential or not in 
        the public interest.
            ``(B) An existing or proposed Organization Standard which 
        is disapproved or suspended in whole or in part by the 
        Commission shall be remanded to the Electric Reliability 
        Organization for further consideration.
            ``(C) The Commission, on its own motion or upon complaint, 
        may direct the Electric Reliability Organization to develop an 
        Organization Standard, including modification to an existing 
        Organization Standard, addressing a specific matter by a date 
        certain if the Commission considers such new or modified 
        Organization Standard necessary or appropriate to further the 
        purposes of this section. The Electric Reliability Organization 
        shall file any such new or modified Organization Standard in 
        accordance with this subsection.
            ``(D) An Affiliated Regional Reliability Entity may propose 
        a Variance or Entity Rule to the Electric Reliability 
        Organization. The Affiliated Regional Reliability Entity may 
        request that the Electric Reliability Organization expedite 
        consideration of the proposal, and shall file a notice of such 
        request with the Commission, if expedited consideration is 
        necessary to provide for Bulk-power System reliability. If the 
        Electric Reliability Organization fails to adopt the Variance 
        or Entity Rule, either in whole or in part, the Affiliated 
        Regional Reliability Entity may request that the Commission 
        review such action. If the Commission determines, after its 
        review of such a request, that the action of the Electric 
        Reliability Organization did not conform to the applicable 
        standards and procedures approved by the Commission, or if the 
        Commission determines that the Variance of Entity Rule is just, 
        reasonable, not unduly discriminatory or preferential, and in 
        the public interest, and that the Electric Reliability 
Organization has unreasonably rejected the proposed Variance or Entity 
Rule, then the Commission may remand the proposed Variance or Entity 
Rule for further consideration by the Electric Reliability Organization 
or may direct the Electric Reliability Organization or the Affiliated 
Regional Reliability Entity to develop a Variance or Entity Rule 
consistent with that requested by the Affiliated Regional Reliability 
Entity. Any such Variance or Entity Rule proposed by an Affiliated 
Regional Reliability Entity shall be submitted to the Electric 
Reliability Organization for review and filing with the Commission in 
accordance with the procedures specified in this subsection.
            ``(E) Notwithstanding any other provision of this 
        subsection, a proposed Organization Standard or amendment shall 
        take effect according to its terms if the Electric Reliability 
        Organization determines that an emergency exists requiring that 
        such proposed Organization Standard or amendment take effect 
        without notice or comment. The Electric Reliability 
        Organization shall notify the Commission immediately following 
        such determination and shall file such emergency Organization 
        Standard or amendment with the Commission not later than five 
        days following such determination and shall include in such 
        filing an explanation of the need for such emergency standard. 
        Subsequently, the Commission shall provide notice of the 
        Organization Standard or amendment for comment, and shall 
        follow the procedures set out in paragraphs (2) and (3) for 
        review of the new or modified Organization Standard. Any such 
        emergency Organization Standard that has gone into effect shall 
        remain in effect unless and until suspended or disapproved by 
        the Commission. If the Commission determines at any time that 
        the emergency Organization Standard or amendment is not 
        necessary, the Commission may suspend such emergency 
        Organization Standard or amendment.
            ``(4) All Users of the Bulk-Power System shall comply with 
        any Organization Standard that takes effect under this section.
    ``(f) Coordination With Canada and Mexico.--The Electric 
Reliability Organization shall take all appropriate steps to gain 
recognition in Canada and Mexico. The United States shall use its best 
efforts to enter into international agreements with the appropriate 
governments of Canada and Mexico to provide for effective compliance 
with Organization Standards and to provide for the effectiveness of the 
Electric Reliability Organization in carrying out its mission and 
responsibilities. All actions taken by the Electric Reliability 
Organization, any Affiliated Regional Reliability Entity, and the 
Commission shall be consistent with the provisions of such 
international agreements.
    ``(g) Changes in Procedures, Governance, or Funding.--
            ``(1) The Electric Reliability Organization shall file with 
        the Commission any proposed change in its procedures, 
        governance, or funding, or any changes in the Affiliated 
        Regional Reliability Entity's procedures, governance or funding 
        relating to delegated functions, and shall include with the 
        filing an explanation of the basis and purpose for the change.
            ``(2) A proposed procedural change shall take effect 90 
        days after filing with the Commission if the change constitutes 
        a statement of policy, practice, or interpretation with respect 
        to the meaning or enforcement of an existing procedure. Any 
        other proposed procedural change shall take effect only upon a 
        finding by the Commission, after notice and opportunity for 
        comments, that the change is just, reasonable, not unduly 
        discriminatory or preferential, is in the public interest, and 
        satisfies the requirements of subsection (d)(4).
            ``(3) A proposed change in governance or funding shall not 
        take effect unless the Commission finds that the change is 
        just, reasonable, not unduly discriminatory or preferential, 
        and is in the public interest, and satisfies the requirements 
        of subsection (d)(4).
            ``(4) The Commission, either upon complaint or upon its own 
        motion, may suspend a procedure or governance or funding 
        provision if it determines the procedure or provision does not 
        meet the requirements of subsection (d)(4) or is unjust, 
        unreasonable, unduly discriminatory or preferential, or 
        otherwise not in the public interest.
            ``(5) The Commission, upon complaint or upon its own 
        motion, may require the Electric Reliability Organization to 
        amend the procedures, governance or funding if the Commission 
        determines that the amendment is necessary to meet the 
        requirements of this section. The Electric Reliability 
        Organization shall file the amendment in accordance with 
        paragraph (1) of this subsection.
    ``(h) Delegations of Authority.--
            ``(1) The Electric Reliability Organization shall, upon 
        request by an entity, enter into an agreement with such entity 
        for the delegation of authority to implement and enforce 
        compliance with Organization Standards in a specified 
        geographic area if the Organization finds that the entity 
        requesting the delegation satisfies the requirements of 
        subsection (d)(4) (A), (B), (C), (D), (F), (J), and (K), and if 
        the delegation promotes the effective and efficient 
        implementation and administration of Bulk-Power System 
        reliability. The Electric Reliability Organization may enter 
        into an agreement to delegate to the entity any other 
        authority, except that the Electric Reliability Organization 
        shall reserve the right to set and approve standards for Bulk-
        Power System reliability.
            ``(2) The Electric Reliability Organization shall file with 
        the Commission any agreement entered into under this subsection 
and any information the Commission requires with respect to the 
Affiliated Regional Reliability Entity to which authority is to be 
delegated. The Commission shall approve the agreement, following public 
notice and an opportunity for comment, if it finds that the agreement 
meets the requirements of subsection (1) above, and is just, 
reasonable, not unduly discriminatory or preferential, and is in the 
public interest. A proposed delegation agreement with an Affiliated 
Regional Reliability Entity organized on an Interconnection-wide basis 
shall be rebuttably presumed by the Commission to promote the effective 
and efficient implementation and administration of Bulk-Power System 
reliability. No delegation by the Electric Reliability Organization 
shall be valid unless approved by the Commission.
            ``(3) A delegation agreement entered into under this 
        subsection shall specify the procedures for an Affiliated 
        Regional Reliability Entity to propose Entity Rules or 
        Variances for review by the Electric Reliability Organization. 
        With respect to any such proposal that would apply on an 
        Interconnection-wide basis, the Electric Reliability 
        Organization shall presume such proposal valid if made by an 
        Interconnection-wide Affiliated Regional Reliability Entity 
        unless the Electric Reliability Organization makes a written 
        finding that the proposal: (i) was not developed in a fair and 
        open process that provided an opportunity for all interested 
        parties to participate; (ii) has a significant adverse impact 
        on reliability or commerce in other Interconnections; (iii) 
        fails to provide a level of reliability of the Bulk-Power 
        System within the Interconnection such that it would constitute 
        a serious and substantial threat to public health, safety, 
        welfare, or national security; or (iv) creates a serious and 
        substantial burden on competitive markets within the 
        Interconnection that it not necessary for reliability. With 
        respect to any such proposal that would apply only to part of 
        an Interconnection, the Electric Reliability Organization shall 
        find such proposal valid if the Affiliated Regional Reliability 
        Entity or Entities making the proposal demonstrate that it: (i) 
        was developed in a fair and open process that provided an 
        opportunity for all interested parties to participate; (ii) 
        would not have an adverse impact on commerce that it not 
        necessary for reliability; (iii) provides a level of Bulk-Power 
        System reliability adequate to protect public health, safety, 
        welfare, and national security and would not have a significant 
        adverse impact on reliability; and (iv) in the case of a 
        Variance, is based on legitimate differences between regions or 
        between subregions within the Affiliated Regional Reliability 
        Entity's geographic area. The Electric Reliability Organization 
        shall approve or disapprove such proposal within 120 days, or 
        the proposal shall be deemed approved. Following approval of 
        any such proposal under this paragraph, the Electric 
        Reliability Organization shall seek Commission approval 
        pursuant to the procedures prescribed under subsection (e)(3). 
        Affiliated Regional Reliability Entities may not make requests 
        for approval directly to the Commission except pursuant to 
        subsection (e)(3)(D).
            ``(4) If an Affiliated Regional Reliability Entity 
        requests, consistent with paragraph (1) of this subsection, 
        that the Electric Reliability Organization delegate authority 
        to it, but is unable within 180 days to reach agreement with 
        the Electric Reliability Organization with respect to such 
        requested delegation, such entity may seek relief from the 
        Commission. If, following notice and opportunity for comment, 
        the Commission determines that a delegation to the entity would 
        meet the requirements of subsection (1) above, and that the 
        delegation would be just, reasonable, not unduly discriminatory 
        or preferential, and in the public interest, and that the 
        Electric Reliability Organization has unreasonably withheld 
        such delegation, the Commission may, by order, direct the 
        Electric Reliability Organization to make such delegation.
            ``(5) The Commission may, upon its own motion or upon 
        complaint, and with notice to the appropriate Affiliated 
        Regional Reliability Entity or Entities, direct the Electric 
        Reliability Organization to propose a modification to an 
        agreement entered into under this subsection if the Commission 
        determines that:
                    ``(A) the Affiliated Regional Reliability Entity no 
                longer has the capacity to carry out effectively or 
                efficiently its implementation or enforcement 
                responsibilities under that agreement, has failed to 
                meet its obligations under that agreement, or has 
                violated any provision of this section,
                    ``(B) the rules, practices, or procedures of the 
                Affiliated Regional Reliability Entity no longer 
                provide for fair and impartial discharge of its 
                implementation or enforcement responsibilities under 
                the agreement,
                    ``(C) the geographic boundary of a transmission 
                entity approved by the Commission is not wholly within 
                the boundary of an Affiliated Regional Reliability 
                Entity and such difference is inconsistent with the 
                effective and efficient implementation and 
                administration of Bulk-Power System reliability, or
                    ``(D) the agreement is inconsistent with another 
                delegation agreement as a result of actions taken under 
                paragraph (4) of this subsection.
            ``(6) Following an order of the Commission issued under 
        paragraph (5) of this subsection, the Commission may suspend 
        the affected agreement if the Electric Reliability Organization 
        or the Affiliated Regional Reliability Entity does not propose 
        an appropriate and timely modification. If the agreement is 
        suspended, the Electric Reliability Organization shall assume 
the previously delegated responsibilities. The Commission shall allow 
the Electric Reliability Organization and the Affiliated Regional 
Reliability Entity an opportunity to appeal the suspension.
    ``(i) Organization Membership.--Every System Operator shall be 
required to be a member of the Electric Reliability Organization and 
shall be required also to be a member of any Affiliated Regional 
Reliability Entity operating under an agreement effective pursuant to 
subsection (h) applicable to the region in which the System Operator 
operates or is responsible for the operation of Bulk-Power System 
facilities.
    ``(j) Injunctions and Disciplinary Action.--
            ``(1) Consistent with the range of actions approved by the 
        Commission under subsection (d)(4)(H), the Electric Reliability 
        Organization may impose a penalty, limitation of activities, 
        functions, or operations, or other disciplinary action the 
        Electric Reliability Organization finds appropriate against a 
        User of the Bulk-Power System if the Electric Reliability 
        Organization, after notice and an opportunity for interested 
        parties to be heard, issues a finding in writing that the User 
        of the Bulk-Power System has violated an Organization Standard. 
        The Electric Reliability Organization shall immediately notify 
        the Commission of any disciplinary action imposed with respect 
        to an act or failure to act of a User of the Bulk-Power System 
        that affected or threatened to affect Bulk-Power System 
        facilities located in the United States. The sanctioned party 
        shall have the right to seek modification or rescission of such 
        disciplinary action by the Commission. If the Organization 
        finds it necessary to prevent a serious threat to reliability, 
        the Organization may seek injunctive relief in the United 
        States district court for the district in which the affected 
        facilities are located.
            ``(2) A disciplinary action taken under subparagraph (1) 
        may take effect not earlier than the 30th day after the 
        Electric Reliability Organization files with the Commission its 
        written finding and record of proceedings before the Electric 
        Reliability Organization and the Commission posts the 
        Organization's written finding, unless the Commission, on its 
        own motion or upon petition by the User of the Bulk-Power 
        System which is the subject of the action, suspends the action. 
        The action shall remain in effect or remain suspended until the 
        Commission, after notice and opportunity for hearing, affirms, 
        sets aside, modifies, or reinstates the action, but the 
        Commission shall conduct such hearing under procedures 
        established to ensure expedited consideration of the action 
        taken.
            ``(3) The Commission, on its own motion, or upon complaint 
        of any person, may order compliance with an Organization 
        Standard and may impose a penalty, limitation of activities, 
        functions, or operations, or take such other disciplinary 
        actions as the Commission finds appropriate, against a User of 
        the Bulk-Power System with respect to actions affecting or 
        threatening to affect Bulk-Power System facilities located in 
        the United States if the Commission finds, after notice and 
        opportunity for a hearing, that the User of the Bulk-Power 
        System has violated or threatens to violate an Organization 
        Standard.
            ``(4) The Commission may take such action as is necessary 
        against the Electric Reliability Organization or an Affiliated 
        Regional Reliability Entity to assure compliance with an 
        Organization Standard, or any Commission order affecting the 
        Electric Reliability Organization or an Affiliated Regional 
        Reliability Entity.
    ``(k) Reliability Reports.--The Electric Reliability Organization 
shall conduct periodic assessments of the reliability and adequacy of 
the interconnected Bulk-Power System in North America and shall report 
annually to the Secretary of Energy and the Commission its findings and 
recommendations for monitoring or improving system reliability and 
adequacy.
    ``(l) Assessment and Recovery of Certain Costs.--The reasonable 
costs of the Electric Reliability Organization, and the reasonable 
costs of each Affiliated Regional Reliability Entity are related to 
implementation and enforcement of Organization Standards or other 
requirements contained in a delegation agreement approved under 
subsection (h), shall be assessed by the Electric Reliability 
Organization and each Affiliated Regional Reliability Entity, 
respectively, taking into account the relationship of costs to each 
region and based on an allocation that reflects an equitable sharing of 
the costs among all end-users. The Commission shall provide by rule for 
the review of such costs and allocations, pursuant to the standards in 
this subsection and subsection (d)(4)(F).''.
    (b) Enforcement.--Sections 316 and 316A of the Federal Power Act 
are amended by striking ``or 214'' each place it appears and inserting 
``214, or 221''.

SEC. 302. APPLICATION OF ANTITRUST LAWS.

    Notwithstanding any other provision of law, the following 
activities are rebuttably presumed to be in compliance with the 
antitrust laws of the United States.
            (1) Activities undertaken by the Electric Reliability 
        Organization under section 221 of the Federal Power Act or 
        Affiliated Regional Reliability Entity operating under an 
        agreement in effect under section 221(h) of the Federal Power 
        Act.
            (2) Activities of a member of the Electric Reliability 
        Organization or Affiliated Regional Reliability Entity in 
        pursuit of organization objectives under section 221 of the 
        Federal Power Act undertaken in good faith under the rules of 
        the organization. Primary jurisdiction, and immunities and 
        other affirmative defenses, shall be available to the extent 
        otherwise applicable.

SEC. 303. SAVINGS CLAUSE.

    Nothing in this title shall be construed to preempt the authority 
of a State to take action to ensure the reliability, adequacy or safety 
of electric facilities within the State, except where the exercise of 
such authority has a material adverse impact on the reliable operation 
of the bulk power system.

SEC. 304. REGIONAL ADVISORY ROLE.

    (a) Establishment.--The Secretary of Energy shall establish a 
regional advisory body on the petition of the Governors of at least 
two-thirds of the States within a region that have more than one-half 
of their electrical loads served within the region.
    (b) Membership.--A regional advisory body--
            (1) shall be composed of one member from each State in the 
        region, appointed by the Governor of each State in the region; 
        and
            (2) may include representatives of agencies, States, and 
        provinces outside the United States, upon execution of an 
        appropriate international agreement described in Section 221(f) 
        of the Federal Power Act.
    (c) Functions.--A regional advisory body may provide advice to an 
affiliated regional reliability entity, the electric reliability 
organization, or the Commission regarding--
            (1) the governance of an affiliated regional reliability 
        entity existing or proposed within a region;
            (2) whether a standard proposed to apply within the region 
        is just, reasonable, not unduly discriminatory or preferential 
        and in the public interest; and
            (3) whether fees proposed to be assessed within the region 
        are--
                    (A) just, reasonable, not unduly discriminatory or 
                preferential, and in the public interest; and
                    (B) consistent with the requirements of Section 
                221(l) of the Federal Power Act.
    (d) Deference.--In a case in which a regional advisory body 
encompasses an entire Interconnection, the Commission may give 
deference to the recommendations of the regional advisory body that are 
provided for in subsection (c).

SEC. 305. APPLICATION.

    The provisions of this Title do not apply to Alaska or Hawaii.

TITLE IV--REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 AND 
      ENACTMENT OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1999

SEC. 401. SHORT TITLE.

    This Title may be cited as the ``Public Utility Holding Company Act 
of 1999''.

SEC. 402. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) the Public Utility Holding Company Act of 1935 was 
        intended to facilitate the work of Federal and State regulators 
        by placing certain constraints on the activities of holding 
        company systems;
            (2) developments since 1935, including changes in other 
        regulation and in the electric and gas industries, have called 
        into question the continued relevance of the model of 
        regulation established by that Act;
            (3) there is a continuing need for State regulation in 
        order to ensure the rate protection of utility customers; and
            (4) limited Federal regulation is necessary to supplement 
        the work of State commissions for the continued rate protection 
        of electric and gas utility customers.
    (b) Purposes.--The purposes of this Title are--
            (1) to eliminate unnecessary regulation, yet continue to 
        provide for consumer protection by facilitating existing rate 
        regulatory authority through improved Federal and State 
        commission access to books and records of all companies in a 
        holding company system, to the extent that such information is 
        relevant to rates paid by utility customers, while affording 
        companies the flexibility required to compete in the energy 
        markets; and
            (2) to address protection of electric and gas utility 
        customers by providing for Federal and State access to books 
        and records of all companies in a holding company system that 
        are relevant to utility rates.

SEC. 403. DEFINITIONS.

    For the purposes of this Title--
            (1) the term ``affiliate'' of a company means any company 5 
        percent of more of the outstanding voting securities of which 
        are owned, controlled, or held with power to vote, directly or 
        undirectly, by such company;
            (2) the term ``associated company'' of a company means any 
        company in the same holding company system with such company;
            (3) the term ``Commission'' means the Federal Energy 
        Regulatory Commission;
            (4) the term ``company'' means a corporation, partnership, 
        association, joint stock company, business trust, or any 
        organized group of persons, whether incorporated or not, or a 
        receiver, trustee, or other liquidating agent of any of the 
        foregoing;
            (5) the term ``electric utility company'' means any company 
        that owns or operates facilities used for the generation, 
        transmission, or distribution of electric energy for sale;
            (6) the terms ``exempt wholesale generator''' and ``foreign 
        utility company'' have the same meanings as in sections 32 and 
        33, respectively, of the Public Utility Holding Company Act of 
        1935, as those sections existed on the day before the effective 
        date of this Act;
            (7) the term ``gas utility company'' means any company that 
        owns or operates facilities used for distribution at retail 
        (other than the distribution only in enclosed portable 
containers or distribution to tenants or employees of the company 
operating such facilities for their own use and not for resale) of 
natural or manufactured gas for heat, light, or power;
            (8) the term ``holding company'' means--
                    (A) any company that directly or indirectly owns, 
                controls, or holds with power to vote, 10 percent or 
                more of the outstanding voting securities of a public 
                utility company or of a holding company of any public 
                utility company; and
                    (B) any person, determined by the Commission, after 
                notice and opportunity for hearing, to exercise 
                directly or indirectly (either alone or pursuant to an 
                arrangement or understanding with one or more persons) 
                such a controlling influence over the management or 
                policies of any public utility company or holding 
                company as to make it necessary or appropriate for the 
                rate protection of utility customers with respect to 
                rates that such person be subject to the obligations, 
                duties, and liabilities imposed by this Title upon 
                holding companies;
            (9) the term ``holding company system'' means a holding 
        company, together with its subsidiary companies;
            (10) the term ``jurisdictional rates'' means rates 
        established by the Commission for the transmission of electric 
        energy in interstate commerce, the sale of electric energy at 
        wholesale in interstate commerce, the transportation of natural 
        gas in interstate commerce, and the sale in interstate commerce 
        of natural gas for resale for ultimate public consumption for 
        domestic, commercial, industrial, or any other use;
            (11) the term ``natural gas company'' means a person 
        engaged in the transportation of natural gas in interstate 
        commerce or the sale of such gas in interstate commerce for 
        resale;
            (12) the term ``person'' means an individual or company;
            (13) the term ``public utility'' means any person who owns 
        or operates facilities used for transmission of electric energy 
        in interstate commerce or sales of electric energy at wholesale 
        in interstate commerce;
            (14) the term ``public utility company'' means an electric 
        utility company or a gas utility company;
            (15) the term ``State commission'' means any commission, 
        board, agency, or officer, by whatever name designated, of a 
        State, municipality, or other political subdivision of a State 
        that, under the laws of such State, has jurisdiction to 
        regulate public utility companies;
            (16) the term ``subsidiary company'' of a holding company 
        means--
                    (A) any company, 10 percent or more of the 
                outstanding voting securities of which are directly or 
                indirectly owned, controlled, or held with power to 
                vote, by such holding company; and
                    (B) any person, the management or policies of which 
                the Commission, after notice and opportunity for 
                hearing, determines to be subject to a controlling 
                influence, directly or indirectly, by such holding 
                company (either alone or pursuant to an arrangement or 
                understanding with one or more other persons) so as to 
                make it necessary for the rate protection of utility 
                customers with respect to rates that such person be 
                subject to the obligations, duties, and liabilities 
                imposed by this Title upon subsidiary companies of 
                holding companies; and
            (17) the term ``voting security'' means any security 
        presently entitling the owner or holder thereof to vote in the 
        direction or management of the affairs of a company.

SEC. 404. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

    The Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et 
seq.) is repealed, effective one year after the date of enactment of 
this Title.

SEC. 405. FEDERAL ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Each holding company and each associate company 
thereof shall maintain, and shall make available to the Commission, 
such books, accounts, memoranda, and other records as the Commission 
deems to be relevant to costs incurred by a public utility or natural 
gas company that is an associate company of such holding company and 
necessary or appropriate for the protection of utility customers with 
respect to jurisdictional rates for the transmission of electric energy 
in interstate commerce, the sale of electric energy at wholesale in 
interstate commerce, the transportation of natural gas in interstate 
commerce, and the sale in interstate commerce of natural gas for resale 
for ultimate public consumption for domestic, commercial, industrial, 
or any other use.
    (b) Affiliate Companies.--Each affiliate of a holding company or of 
any subsidiary company of a holding company shall maintain, and make 
available to the Commission, such books, accounts, memoranda, and other 
records with respect to any transaction with another affiliate, as the 
Commission deems to be relevant to costs incurred by a public utility 
or natural gas company that is an associate company of such holding 
company and necessary or appropriate for the protection of utility 
customers with respect to jurisdictional rates.
    (c) Holding Company Systems.--The Commission may examine the books, 
accounts, memoranda, and other records of any company in a holding 
company system, or any affiliate thereof, as the Commission deems to be 
relevant to costs incurred by a public utility or natural gas company 
within such holding company system and necessary or appropriate for the 
protection of utility customers with respect to jurisdictional rates.
    (d) Confidentiality.--No member, officer, or employee of the 
Commission shall divulge any fact or information that may come to his 
or her knowledge during the course of examination of books, accounts, 
memoranda, or other records as provided in this section, except as may 
be directed by the Commission or by a court of competent jurisdiction.

SEC. 406. STATE ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Upon the written request of a State commission 
having jurisdiction to regulate a public utility company in a holding 
company system, the holding company or any associate company or 
affiliate thereof, other than such public utility company, wherever 
located, shall produce for inspection books, accounts, memoranda, and 
other records that--
            (1) have been identified in reasonable detail in a 
        proceeding before the State commission;
            (2) the State commission deems are relevant to costs 
        incurred by such public utility company; and
            (3) are necessary for the effective discharge of the 
        responsibilities of the State commission with respect to such 
        proceedings.
    (b) Limitation.--Subsection (a) does not apply to any person that 
is a holding company solely by reason of ownership of one or more 
qualifying facilities under the Public Utility Regulatory Policies Act.
    (c) Confidentiality of Information.--The production of books, 
accounts, memoranda, and other records under subsection (a) shall be 
subject to such terms and conditions as may be necessary and 
appropriate to safeguard against unwarranted disclosure to the public 
of any trade secrets or sensitive commercial information.
    (d) Effect on State Law.--Nothing in this section shall preempt 
applicable State law concerning the provision of books, records, or any 
other information, or in any way limit the rights of any State to 
obtain books, records, or any other information under any other Federal 
law, contract, or otherwise.
    (e) Court Jurisdiction.--Any United States district court located 
in the State in which the State commission referred to in subsection 
(a) is located shall have jurisdiction to enforce compliance with this 
section.

SEC. 407. EXEMPTION AUTHORITY.

    (a) Rulemaking.--Not later than 90 days after the effective date of 
this Title, the Commission shall promulgate a final rule to exempt from 
the requirements of section 405 any person that is a holding company, 
solely with respect to one or more--
            (1) qualifying facilities under the Public Utility 
        Regulatory Policies Act of 1978;
            (2) exempt wholesale generators; or
            (3) foreign utility companies.
    (b) Other Authority.--If, upon application or upon its own motion, 
the Commission finds that the books, records, accounts, memoranda, and 
other records of any person are not relevant to the jurisdictional 
rates of a public utility or natural gas company, or if the Commission 
finds that any class of transactions is not relevant to the 
jurisdictional rates of a public utility or natural gas company, the 
Commission's shall exempt such person or transaction from the 
requirements of section 405.

SEC. 408. AFFILIATE TRANSACTIONS.

    Nothing in this Title shall preclude the Commission or a State 
commission from exercising its jurisdiction under otherwise applicable 
law to determine whether a public utility company, public utility, or 
natural gas company may recover in rates any costs of an activity 
performed by an associate company, or any costs of goods or services 
acquired by such public utility company from an associate company.

SEC. 409. APPLICABILITY.

    No provision of this Title shall apply to, or be deemed to 
include--
            (1) the United States;
            (2) a State or any political subdivision of a State;
            (3) any foreign governmental authority not operating in the 
        United States;
            (4) any agency, authority, or instrumentality of any entity 
        referred to in paragraph (1), (2), or (3); or
            (5) any officer, agent, or employee of any entity referred 
        to in paragraph (1), (2), or (3) acting as such in the course 
        of his or her official duty.

SEC. 410. EFFECT ON OTHER REGULATIONS.

    Nothing in this Title precludes the Commission or a State 
commission from exercising its jurisdiction under otherwise applicable 
law to protect utility customers.

SEC. 411. ENFORCEMENT.

    The Commission shall have the same powers as set forth in sections 
306 through 317 of the Federal Power Act (16 U.S.C. 825d-825p) to 
enforce the provisions of this Title.

SEC. 412. SAVINGS PROVISIONS.

    (a) In General.--Nothing in this Title prohibits a person from 
engaging in or continuing to engage in activities or transactions in 
which it is legally engaged or authorized to engage on the effective 
date of this Title.
    (b) Effect on Other Commission Authority.--Nothing in this Title 
limits the authority of the Commission under the Federal Power Act (16 
U.S.C. 791a et seq.) (including section 301 of that Act) or the Natural 
Gas Act (15 U.S.C. 717 et seq.) (including section 8 of that Act).

SEC. 413. IMPLEMENTATION.

    Not later than 6 months after the date of enactment of this Title, 
the Commission shall--
            (1) promulgate such regulations as may be necessary or 
        appropriate to implement this Title (other than section 6); and
            (2) submit to Congress detailed recommendations on 
        technical and conforming amendments to Federal law necessary to 
        carry out this Title and the amendments made by this Title.

SEC. 414. TRANSFER OF RESOURCES.

    All books and records that relate primarily to the functions 
transferred to the Commission under this Title shall be transferred 
from the Securities and Exchange Commission to the Commission.

SEC. 415. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such funds as may be 
necessary to carry out this Title.

SEC. 416. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.

    Section 318 of the Federal Power Act (16 U.S.C. 825q) is repealed.

                    TITLE V--NUCLEAR DECOMMISSIONING

SEC. 501. SHORT TITLE.

    This Title may be cited as the ``Nuclear Decommissioning Assurance 
Act''.

SEC. 502. DEFINITIONS.

    In this Act:
            (1) Decommission.--The term ``decommission'' has the 
        meaning given the term in section 50.2 of title 10, Code of 
        Federal Regulations (or any successor regulation).
            (2) Decommissioning obligation.--The term ``decommissioning 
        obligation'' means the obligation to pay costs associated with 
        the measures necessary to ensure the continued protection of 
        the public from the dangers of any residual radioactivity or 
        other hazards present at a facility when a nuclear unit is 
        decommissioned, as defined in 10 CFR Sec. 50.2, including, but 
        not limited to, all costs of entombing, decontaminating, 
        dismantling, removing and disposing of a nuclear power plant, 
        including all decommissioning and associated preparation, 
        security, and radiation monitoring expenses and post-shutdown 
        spent nuclear fuel storage.
            (3) Nuclear decommissioning trust fund.--The term ``nuclear 
        decommissioning trust fund'' has the meaning given the term 
        ``external sinking fund'' in section 50.75(e)(1)(ii) of title 
        10, Code of Federal Regulations (or any successor regulation).
            (4) State commission.--The term ``State commission'' has 
        the meaning given the term in section 3 of the Federal Power 
        Act.

SEC. 503. NRC DECOMMISSIONING DETERMINATION.

    (a) Petition.--
            (1) In general.--A licensee under part 50 of title 10, Code 
        of Federal Regulations may petition the Nuclear Regulatory 
        Commission for a determination of whether--
                    (A) adequate amounts have been deposited or are 
                being deposited in the nuclear decommissioning trust 
                fund of the licensee; and
                    (B) the future funding for any nuclear power plant 
                owned in whole or in part by the licensee is assured.
            (2) Contents.--A petition under paragraph (1) shall 
        disclose--
                    (A) the licensee's current minimum amount 
                established by the Nuclear Regulatory Commission under 
                section 50.75 of title 10, Code of Federal Regulations 
                for each facility for which the licensee holds a 
                license;
                    (B) the currently effective rates to recover costs 
                for decommissioning obligations as established by the 
                Commission or State commissions, as appropriate;
                    (C) the amount that has been accumulated in the 
                nuclear decommissioning trust fund;
                    (D) the planned rate and timing of collection of 
                the costs of the decommissioning obligations through 
                the projected useful life of the facility; and
                    (E) any other information pertinent to evaluating 
                the assurance of funding of the nuclear decommissioning 
                trust fund.
    (b) Determination.--Not later than 180 days of receipt of a 
petition under paragraph (1), the Nuclear Regulatory Commission shall 
issue a determination regarding whether the nuclear decommissioning 
trust fund and the currently approved level of rates to recover the 
costs of the decommissioning obligation are adequate to ensure full and 
safe decommissioning of the facility. If the Commission determines that 
there is not currently adequate recovery, it shall specify the amounts 
needed to make the recovery adequate.
    (c) Considerations.--In making a determination under subsection 
(b), the Nuclear Regulatory Commission shall consider--
            (1) the current level of funds in the nuclear 
        decommissioning trust fund;
            (2) the adequacy of the currently approved rates to recover 
        the costs of the decommissioning obligation;
            (3) the assurance of continuing recovery of such costs 
        through rates;
            (4) the timing of the recovery of such costs relative to 
        the projected useful life of the plant; and
            (5) any other information that the Nuclear Regulatory 
        Commission considers pertinent to determination of the 
        necessary assurance of adequate funding.
    (d) Adequacy of Minimum Amounts.--Nothing in this Act precludes the 
Nuclear Regulatory Commission from revising or reconsidering the 
adequacy of the minimum amounts established under section 50.75(c) of 
title 10, Code of Federal Regulations.
    (e) Notice.--The Nuclear Regulatory Commission shall issue notice 
of its finding to the licensee, the Federal Regulatory Commission, and 
any other party of record.

SEC. 504. AMENDMENTS TO THE FEDERAL POWER ACT.

    (a) Declaration.--Section 201 of the Federal Power Act is amended 
by adding at the end the following:
    ``(h) Declaration Regarding Decommissioning.--The decommissioning 
of nuclear power plants licensed by the Nuclear Regulatory Commission 
is affected with a public interest, and the Federal regulation of 
matters relating to decommissioning of nuclear power plants, to the 
extent provided in this part, is necessary in the public interest.''.
    (b) Nuclear Decommissioning Assurance.--The Federal Power Act is 
amended by adding the following:

``SEC. 222. NUCLEAR DECOMMISSIONING ASSURANCE.

    ``(a) Recovery of Adequate Decommissioning Revenues in Transmission 
or Wholesale Rates.--Any entity, including a public power entity, 
responsible for decommissioning a nuclear power plant in whole or in 
part, and which has obtained a finding from the Nuclear Regulatory 
Commission pursuant to section 503(b) of the Nuclear Decommissioning 
Assurance Act, may apply to the Commission for an order under this 
subsection, pursuant to sections 205 and 206 of this Part, approving 
rates and charges in connection with the transmission or wholesale sale 
of electric energy subject to the Commission's jurisdiction, to collect 
all or part of the revenues necessary to meet the revenue requirement 
determined by the NRC to be necessary to assure adequate funding of the 
entity's nuclear decommissioning obligations. In issuing an order under 
this subsection, the Commission shall find to be just and reasonable, 
prudently incurred, the recoverable in transaction or wholesale rates 
the decommissioning costs and revenue requirements determined to be 
necessary by the NRC pursuant to 10 C.F.R. Sec. 50.75 and Section 503 
of the Nuclear Decommissioning Assurance Act.
    ``(b) Recovery of Adequate Decommissioning Revenues.--In issuing an 
order under subsection (a), approving rates and charges in connection 
with the transmission or wholesale sale of electricity, the Commission 
shall find to be just and reasonable, prudently incurred, and 
recoverable through a nonbypassable charge or rate the remainder of the 
decommissioning costs and revenue requirements (determined to be 
necessary by the NRC pursuant to 10 C.F.R. Sec. 50.75 and section 503 
of the Nuclear Decommissioning Assurance Act) and not recovered under 
subsection(a). The Commission is authorized to enforce and shall 
enforce any rule or order issued pursuant to this subsection in order 
to ensure collection of adequate decommissioning revenues.''.
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