‘‘(A) integrate energy efficiency resources 
into the plans and planning processes of the 
natural gas utility; and 
‘‘(B) adopt policies that establish energy 
efficiency as a priority resource in the plans 
and planning processes of the natural gas util-
ity. 
‘‘(6) RATE
DESIGN
MODIFICATIONS
TO
PRO-
MOTE ENERGY EFFICIENCY.—The rates allowed to 
be charged by a natural gas utility shall align utility 
incentives with the deployment of cost-effective en-
ergy efficiency. In complying with the standard 
under this paragraph, each State regulatory author-
ity and each nonregulated utility shall consider— 
‘‘(A) separating fixed-cost revenue recovery 
from the volume of transportation or sales serv-
ice provided to the customer; 
‘‘(B) providing to utilities incentives for 
the successful management of energy efficiency 
programs, such as allowing utilities to retain a 
portion of the cost-reducing benefits accruing 
from the programs; 
‘‘(C) promoting the impact on adoption of 
energy efficiency as 1 of the goals of retail rate 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
design, recognizing that energy efficiency must 
be balanced with other objectives; and 
‘‘(D) adopting rate designs that encourage 
energy efficiency for each customer class.’’. 
(c) COMPLIANCE.— 
(1) TIME LIMITATIONS.—Section 112(b) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2622(b)) is amended by adding at the end 
the following: 
‘‘(6)(A) Not later than 1 year after the enact-
ment of this paragraph, each State regulatory au-
thority (with respect to each electric utility for which 
it has ratemaking authority) and each nonregulated 
utility shall commence the consideration referred to 
in section 111, or set a hearing date for consider-
ation, with respect to the standard established by 
paragraph (16) of section 111(d). 
‘‘(B) Not later than two years after the date of 
the enactment of the this paragraph, each State reg-
ulatory authority (with respect to each electric utility 
for which it has ratemaking authority), and each 
nonregulated electric utility, shall complete the con-
sideration, and shall make the determination, re-
ferred to in section 111 with respect to each stand-
ard established by paragraph (1) of section 111(d)’’. 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
(2) FAILURE TO COMPLY.—Section 112(d) of 
the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622(c)) is amended by adding at the 
end the following: ‘‘In the case of the standard es-
tablished by paragraph (15), the reference contained 
in this subsection to the date of enactment of this 
Act shall be deemed to be a reference to the date of 
enactment of paragraph (16).’’. 
(3) PRIOR STATE ACTION.— 
(A) IN
GENERAL.—Section 112 of the 
Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622) is amended by adding at the 
end the following: 
‘‘(f) PRIOR STATE ACTIONS.—Subsections (b) and 
(c) of this section shall not apply to the standard estab-
lished by paragraph (15) of section 111(d) in the case of 
any electric utility in a State if, before the enactment of 
this subsection— 
‘‘(1) the State has implemented for such utility 
the standard concerned (or a comparable standard); 
‘‘(2) the State regulatory authority for such 
State or relevant nonregulated electric utility has 
conducted a proceeding to consider implementation 
of the standard concerned (or a comparable stand-
ard) for such utility; or 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
‘‘(3) the State legislature has voted on the im-
plementation of such standard (or a comparable 
standard) for such utility.’’. 
(B) CROSS REFERENCE.—Section 124 of 
such Act (16 U.S.C. 2634) is amended by add-
ing the following at the end thereof: ‘‘In the 
case of each standard established by paragraph 
(16) of section 111(d), the reference contained 
in this subsection to the date of enactment of 
the Act shall be deemed to be a reference to the 
date of enactment of paragraph (16).’’. 
(d) COMPLIANCE DATE.—Section 303 of the Public 
Utility Regulatory Policies Act of 1978 is amended by 
striking ‘‘Not later than 2 years after the date of the en-
actment of this Act (or after the enactment of the Energy 
Policy Act of 1992 in the case of standards under para-
graphs (3) and (4) of subsection (b))’’ and inserting ‘‘Not 
later than 2 years after the date of the enactment of the 
standard concerned’’. 
(e) PRIOR STATE ACTIONS.—Section 310 of the Pub-
lic Utility Regulatory Policies Act of 1978 is amended by 
striking ‘‘of this Act’’ in each place it appears and insert-
ing ‘‘the standard under section 303(b)’’. 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
100 
SEC. 412. FEED-IN TARIFF SYSTEM STUDY. 
(a) STUDY AND REPORT.—Not later than 1 year 
after the date of enactment of this Act, the Lawrence 
Berkeley National Laboratory shall transmit to Congress 
a report on the results of a study on feed-in tariff systems, 
which shall include recommendations for an appropriate 
pricing structure to best ensure that investors in renew-
able energy technologies can receive a reasonable return 
on their investment. 
(b) DEFINITION.—In this section: 
(1) The term ‘‘feed-in tariff system’’ means a 
system under which— 
(A) renewable energy technologies have 
priority access to the electricity market; and 
(B) for a fixed period of time, electric utili-
ties are required to pay predetermined amounts 
for electric power sold to the utility by pro-
ducers using renewable energy sources. 
(2) The term ‘‘renewable energy’’ has the 
meaning given to such term in section 203 of the 
Energy Policy Act of 2005. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this report. 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
101 
Subtitle C—National Renewable 
Energy Zones 
SEC. 421. NEW ELECTRICITY TRANSMISSION LINES DE-
SIGNED PRIMARILY TO CARRY ELECTRICITY 
FROM RENEWABLE ENERGY RESOURCES. 
The Secretary of the Treasury, in consultation with 
the Secretary of Energy, the Secretary of Commerce, and 
the Administrator of the Environmental Protection Agen-
cy, shall establish an appropriate investment tax credit for 
the construction of new electricity transmission lines de-
signed primarily to carry electricity from renewable energy 
resources. Such credit shall be sufficient to encourage the 
development of promising rural renewable energy domestic 
resources that otherwise would likely not be developed. 
SEC. 422. SHORT TITLE. 
This title may be cited as the ‘‘Rural Clean Energy 
Superhighways Act’’. 
SEC. 423. FINDINGS. 
The Congress finds that— 
(1) electricity produced from renewable re-
sources helps to reduce greenhouse gas emissions, 
and limits emissions of other pollutants regulated 
pursuant to the Clean Air Act, enhances national en-
ergy security, and provides substantial economic 
benefits; 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
102 
(2) the potential exists for a far greater per-
centage of electric production in the United States 
to be generated through the use of renewable re-
sources than current levels; 
(3) many of the best potential renewable energy 
resources are located in rural areas far from popu-
lation centers; 
(4) the lack of adequate electric transmission 
capacity is one of the primary obstacles to the devel-
opment of electric generation facilities fueled by re-
newable energy resources; 
(5) the economies of many rural areas would 
substantially benefit from the increased development 
of electric generation facilities fueled by renewable 
energy resources; and 
(6) it is in the national interest for the Federal 
government to implement policies that will enhance 
the amount of electric transmission capacity avail-
able to take full advantage of renewable energy re-
sources to generate electricity. 
SEC. 424. NATIONAL RENEWABLE ENERGY ZONES. 
(a) IN GENERAL.—Title II of the Federal Power Act 
(16 U.S.C. 824 et seq.) is amended— 
(1) by inserting before the section heading of 
section 201 (16 U.S.C. 824 et seq.) the following: 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
103 
‘‘SUBTITLE A—REGULATION OF ELECTRIC UTILITY COMPANIES’’; AND 
(2) by adding at the end the following: 
‘‘Subtitle B—National Renewable 
Energy Zones 
‘‘SEC. 231. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) The term ‘Commission’ means the Federal 
Energy Regulatory Commission. 
‘‘(2) The term ‘electricity from renewable 
energy’means electric energy generated froml 
‘‘(A) solar, wind, geothermal or ocean en-
ergy; 
‘‘(B) biomass (as defined in section 203(a) 
of the Energy Policy Act of 2005); 
‘‘(C) landfill gas; or 
‘‘(D) incremental hydropower. 
‘‘(3) The term ‘Federal Power Marketing Ad-
ministration’ means any agency or instrumentality 
of the United States (other than the Tennessee Val-
ley Authority) which sells electric energy. 
‘‘(4) The term ‘Federal Transmitting Utility’ 
means a Federal Power Marketing Administration 
that owns or operates electric transmission facilities 
or the Tennessee Valley Authority. 
‘‘(5) The term ‘geothermal energy’ means en-
ergy derived from a geothermal deposit (within the 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
104 
meaning of section 613(e)(2) of the Internal Rev-
enue Code of 1986). 
‘‘(6) The term ‘renewable energy trunkline’ 
shall mean a radial transmission line at a voltage of 
115 kV or above, including all associated trans-
mission facilities and equipment within a National 
Renewable Energy Zone that is used to deliver elec-
tricity from renewable energy to the point where the 
trunkline connects to a high-voltage electric trans-
mission facility, including any modifications, addi-
tions or upgrades to such facilities and equipment. 
A renewable energy trunkline shall not include net-
work upgrades. 
‘‘(7) The term ‘high-voltage electric trans-
mission facility’ means those electric facilities with a 
capability in excess of 200 kilovolts. 
‘‘(8) The term ‘network upgrades’ shall mean 
the additions or modifications to the transmission 
provider’s high-voltage transmission system other 
than renewable energy trunkline facilities. 
‘‘(9) The term ‘President’ means the President 
of the United States. 
‘‘(10) The term ‘Indian lands’ means— 
‘‘(A) any land within the limits of any In-
dian reservation, pueblo or Rancheria, 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00104
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
105 
‘‘(B) any land not within the limits of any 
Indian reservation, pueblo or Rancheria title to 
which was on the date of passage of this Act ei-
ther held in trust by the United States for the 
benefit of any Indian tribe or individual or held 
by any Indian tribe or individual subject to re-
striction by the United States against alien-
ation, 
‘‘(C) any dependent Indian community, 
and 
‘‘(D) any land conveyed to any Alaska Na-
tive corporation under the Alaska Native 
Claims Settlement Act. 
‘‘(11) The term ‘electricity consuming area’ 
means the area within which electricity from renew-
able energy would be consumed if new high-voltage 
electric transmission facilities were to be constructed 
to deliver electricity from renewable energy gen-
erated in a National Renewable Energy Zone. 
‘‘SEC. 232. DESIGNATION OF NATIONAL RENEWABLE EN-
ERGY ZONES. 
‘‘(a) DESIGNATION.—Within six months after the 
date of enactment of this Act, the President or the Presi-
dent’s designee shall designate as a National Renewable 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
106 
Energy Zone each area that meets each of the following 
conditions: 
‘‘(1) The potential to generate in excess of one 
gigawatt of electricity from renewable energy with-
out having a material detrimental impact on reli-
ability. 
‘‘(2) An insufficient level of electric trans-
mission capacity to achieve the potential identified 
pursuant to paragraph (1). 
‘‘(3) Access, for renewable energy to be gen-
erated in the National Renewable Energy Zone, to 
one or more electricity consuming areas if there were 
a sufficient level of transmission capacity. 
‘‘(b) FACTORS.—In making the designations required 
by subsection (a), the Secretary take into account the fol-
lowing: 
‘‘(1) State and Federal requirements for utili-
ties to incorporate renewable energy as part of serv-
ing load; and 
‘‘(2) The impact of electric transmission facility 
development on the aesthetic and environmental val-
ues of land contained in an area eligible for National 
Renewable Energy Zone designation. 
‘‘(c) ADDITIONAL FACILITIES.—Within six months of 
the designation of a National Renewable Energy Zone, the 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS