those that would be achieved by a continuous
emissions monitoring system.
(f) POWERS.—The Administrator may promulgate
such regulations, conduct such investigations, and take
such other actions as are necessary to appropriate to im-
plement and obtain compliance with this section and regu-
lations promulgated under this section.
SEC. 113. NATIONAL ELECTRIC PUBLIC BENEFIT BOARD.
(a) ESTABLISHMENT.—The Secretary shall establish
a National Electric Public Benefit Board to carry out the
functions and responsibilities described in this section and
in section 114.
(b) MEMBERSHIP.—The Board shall be composed
of—
(1) 1 representative of the Commission ap-
pointed by the Commission;
(2) 1 representative of the Secretary appointed
by the Secretary;
(3) 1 representative appointed by the Secretary
of the Department of Health and Human Services;
(4) 1 representative appointed by the Adminis-
trator of the Rural Utilities Service of the Depart-
ment of Agriculture;
(5) 1 representative appointed by the Secretary
of the Department of Housing and Urban Develop-
ment;
(6) 1 representative appointed by the Secretary
of the Department of Labor.
(7) 1 person nominated by the national organi-
zation representing State regulatory commissioners
and appointed by the Secretary;
(8) 1 person nominated by the national organi-
zation representing State utility consumer advocates
and appointed by the Secretary;
(9) 1 person nominated by the national organi-
zation representing State energy offices and ap-
pointed by the Secretary;
(10) 1 person nominated by the national orga-
nization representing energy assistance directors and
appointed by the Secretary; and
(11) 1 representative of the Environmental Pro-
tection Agency appointed by the Administrator.
(c) CHAIRPERSON.—The Secretary shall select a
member of the Board to serve as Chairperson of the
Board.
(d) MANAGER.—
(1) APPOINTMENT.—The Board shall by con-
tract appoint a public benefits manager for a term
of not more than 3 years, which term may be re-
newed by the Board.
(2) COMPENSATION.—The compensation and
other terms and conditions of employment of the
manager shall be determined by a contract between
the Board and the individual or the other entity ap-
pointed as manager.
(3) FUNCTIONS.—The manager shall—
(A) monitor the amounts in the Fund;
(B) 
receive, 
review, 
and 
make 
rec-
ommendations to the Board regarding applica-
tions from States under subsection 5(b); and
(C) perform such other functions as the
Board may require to assist the Board in car-
rying out its duties under this Act.
SEC. 114. NATIONAL ELECTRIC PUBLIC BENEFIT FUND.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Board shall establish an
account or accounts at 1 or more financial institu-
tions, which account or accounts shall be known as
the ‘‘National Electric Public Benefit Fund’’, con-
sisting of amounts deposited in the fund under sub-
section (c).
(2) STATUS OF FUND.—The wires charges col-
lected under subsection (c) and deposited in the
Fund—
(A) shall constitute electric system reve-
nues and shall not constitute funds of the
United States;
(B) shall be held in trust by the manager
of the Fund solely for the purposes stated in
subsection (b); and
(C) shall not be available to meet any obli-
gations of the United States.
(b) USE OF FUND.—
(1) FUNDING OF UNIVERSAL ELECTRIC SERV-
ICE.—One-third of the amount in the Fund shall be
used by the Board to provide funds to States for the
support of affordable electric service for low and
moderate income residential customers.
(2) FUNDING OF OTHER PUBLIC PURPOSE PRO-
GRAMS.—The balance of the amounts in the Fund
shall be used by the Board to provide matching
funds to States for the support of State public pur-
pose programs relating to—
(A) the impacts on employees and their
communities of any necessary reductions in the
utility workforce directly caused by electricity
deregulation. These impacts shall be mitigated
to the extent practicable through such means
as offers of voluntary severance, job retraining,
early retirement, continued health care, out-
placement and related benefits;
(B) renewable energy sources;
(C) energy conservation and efficiency; or
(D) research and development in areas de-
scribed in subparagraphs (B) and (C).
(3) DISTRIBUTION.—
(A) IN
GENERAL.—Except for amounts
needed to pay costs of the Board in carrying
out its duties under this section, the Board
shall instruct the manager of the Fund to dis-
tribute all amounts in the Fund to States to
fund public purpose programs under para-
graphs (1) and (2).
(B) FUND SHARE; UNIVERSAL ELECTRIC
SERVICE PROGRAMS.—Funds for public purpose
programs funded under paragraph (1) shall be
distributed to the States in proportion to the
State’s relative share of the Nation’s aggregate
annual consumption of electricity by low- and
moderate-income households.
(C) FUND
SHARE; OTHER
PUBLIC
PUR-
POSE PROGRAMS.—
(i) IN
GENERAL.—Subject to clause
(iii), the Fund share of a public purpose
program funded under paragraph (2) shall
be 50 percent.
(ii) PROPORTIONATE
REDUCTION.—
To the extent that the amount of matching
funds requested by States for public pur-
pose programs funded under paragraph (2)
exceeds two-thirds of the maximum pro-
jected revenues of the Fund, the matching
funds distributed to the States shall be re-
duced by an amount that is proportionate
to each State’s annual consumption of elec-
tricity compared to the Nation’s aggregate
annual consumption of electricity.
(iii) ADDITIONAL STATE FUNDING.—
A State may apply funds to public purpose
programs funded under paragraph (2) in
addition to the amount of funds applied for
the purpose of matching the Fund share.
(4) PROGRAM CRITERIA; UNIVERSAL ELECTRIC
SERVICE PROGRAMS.—
(A) ADVANCE
FUNDING
FOR
CERTIFIED
PROGRAMS.—States that implement programs
conforming to the standards set forth in this
section shall be eligible for advance funding of
such programs. The Board shall annually cer-
tify to the Secretary the compliance of State
programs with this section. The Secretary shall
provide a mechanism to ensure that universal
electric service is provided to qualifying low-in-
come consumers in States that do not have a
State program or whose State program does not
qualify for funds under this section.
(B) UNIVERSAL ELECTRIC SERVICE PRO-
GRAM
CRITERIA.—To be certified under this
section, State programs must contain the fol-
lowing provisions:
(i) Be designed and implemented to
reduce the basic electricity cost burden of
a State’s low-income households to no
more than twice the burden of a national
average of non-low-income households.
(ii) Target benefits to the most vul-
nerable households.
(iii) Be available to all households
with annual incomes at or below 150 per-
cent of the Federal poverty guidelines, or
60 percent of the median State income,
but States may determine a higher income
level as the cutoff for eligibility.
(iv) Set aside up to 30 percent of an-
nual program funding for energy conserva-
tion and education programs providing di-
rect efficiency services to qualifying low-in-
come households.
(v) Reach the maximum eligible popu-
lation, using the most cost-effective out-
reach and intake techniques.
(vi) Encourage, rather than discour-
age, energy conservation, and the prompt
payment of bills.
(vii) Spend no more than 10 percent
of program funds on administration of the
program.
(viii) The program shall be coordi-
nated with the delivery of low-income en-
ergy assistance and weatherization pro-
grams administered and/or funded by Fed-
eral, State, and local agencies, making use,
to the fullest extent practicable, of existing
community-based organizations who ad-
minister one or more fuel assistance and
energy efficiency programs.
(ix) On an annual basis hold a public
hearing on the design and implementation
of such Universal Electric Service pro-
gram.
(x) Provide intervenor funding to
allow low-income consumers the oppor-
tunity to participate in State or Federal
administrative 
proceedings 
establishing,
monitoring, and overseeing the State re-
structuring plan.
(5) PROGRAM CRITERIA; OTHER PUBLIC PUR-
POSE PROGRAMS.—The Board shall recommend eli-
gibility criteria for public benefit programs funded
under paragraph (2) for approval by the Secretary.
(6) APPLICATION.—Not later than August 1 of
each year, a State seeking funds under paragraph
(1) or matching funds under paragraph (2) for the
following year shall file with the Board, in such form
as the Board may require, an application—
(A) certifying that the funds will be used
for an eligible public purpose program; and
specifying what funds are requested and for
programs under which paragraph; and
(B) stating the amount of State funds ear-
marked for the programs, and to be used for
any required matching.
(c) WIRES CHARGE.—
(1) DETERMINATION OF NEEDED FUNDING.—
Not later than August 1 of each year, the Board
shall determine and inform the Commission of the
aggregate amount of wires charges that it will be
necessary to have paid into the Fund to pay match-
ing funds to States and pay the operating costs of
the Board in the following year.
(2) IMPOSITION OF WIRES CHARGE.—
(A) IN GENERAL.—Not later than Decem-
ber 15 of each year, the Commission shall im-
pose a nonbypassable wires charge to be paid
directly into the Fund by the operator of the
wire on electricity carried through the wire, this
electricity to be measured as it exits the busbar
at a generation facility, and which impacts on
interstate commerce.
(B) AMOUNT.—The wires charge shall be
set at a rate equal to the greater of—
(i) 7 mills per kilowatt-hour; or
(ii) a rate that is estimated to result
in the collection of an amount of wires
charges that is as nearly as possible equal
to the amount of needed funding deter-
mined under paragraph (1).
(3) DEPOSIT IN THE FUND.—The wires charge
shall be paid by the operator of the wire directly into
the Fund at the end of each month during the cal-
endar year for distribution by the public benefit
manager.
(4) PENALTIES.—The Commission shall assess
against a wire operator that fails to pay a wires
charge as required by this subsection a civil penalty
in an amount equal to triple the amount of the un-
paid wires charge.
(d) AUDITING.—
(1) IN GENERAL.—The Fund shall be audited
annually by a firm of independent certified public
accountants in accordance with generally accepted
auditing standards.
(2) ACCESS TO RECORDS.—Representatives of
the Secretary and the Commission shall have access
to all books, accounts, reports, files, and other
records pertaining to the Fund as necessary to fa-
cilitate and verify the audit.
(3) REPORTS.—
(A) IN GENERAL.—A report on each audit
shall be submitted to the Secretary, the Com-
mission, and the Secretary of the Treasury, who
shall submit the report to the President and
Congress not later than 180 days after the
close of the fiscal year.
(B) REQUIREMENTS.—An audit report
shall—
(i) set forth the scope of the audit;
and
(ii) include—
(I) a statement of assets and li-
abilities, capital, and surplus or def-
icit;
(II) a statement of surplus or
deficit analysis;
(III) a statement of income and
expenses;
(IV) any other information that
may be considered necessary to keep
the President and Congress informed
of the operations and financial condi-
tion of the Fund; and
(V) any recommendations with
respect to the Fund that the Sec-
retary or the Commission may have.
SEC. 115. RENEWABLE ENERGY PORTFOLIO STANDARDS.
(a) MINIMUM RENEWABLE GENERATION REQUIRE-
MENT.—(1) By March 22 of each calendar year after
2000, each retail electricity supplier shall submit to the
Secretary renewable energy credits in an amount equal to
the required annual percentage of the supplier’s total kilo-
watt-hour sales to end-use customers in the preceding cal-
endar year.
(2) Nothing in this section shall be construed to pro-
hibit any State from requiring additional renewable energy
generation in that State under any program adopted by
the State. A State may limit the benefits of any State re-
newable energy program to renewable energy generators
located within the State’s boundaries.
(b) REQUIRED ANNUAL PERCENTAGE.—For end-use
customer sales in calendar year 2000, the required annual
percentage for each retail electricity supplier shall be set
equal to the amount of renewable energy in the United
States as of December 1997, and shall be known as the
‘‘baseline.’’ The Secretary shall establish this baseline by
rule based on an advance registration process for renew-
able energy credits or by conducting a survey of renewable
energy generation plants. Such baseline shall be estab-
lished after notice and opportunity for hearing but not
later than 180 days after the enactment of this Act.
Thereafter the required annual percentage for each such
supplier shall increase as set forth in the following table:
Calendar year:
Minimum Percentage Increase
(cumulative):
2001 ......................................................................................... baseline plus
0.50%
2002 ......................................................................................... baseline plus
1.00%
2003 ......................................................................................... baseline plus
1.50%
2004 ......................................................................................... baseline plus
2.00%
2005 ......................................................................................... baseline plus
3.00%
2006 ......................................................................................... baseline plus
4.00%
2007 ......................................................................................... baseline plus
5.00%
2008 ......................................................................................... baseline plus
6.00%
2009 ......................................................................................... baseline plus
7.00%
2010 ......................................................................................... baseline plus
8.00%
2011 and beyond ......................................................................
1.00%
additional to
the previous
year
(c) SUBMISSION OF CREDITS.—An electric generator
may satisfy the requirements of subsection (a) through the
submission, by March 22 of the year following each cal-
endar year, of renewable energy credits issued by the Sec-
retary under this section for renewable energy generated
in such calendar year or the previous calendar year. A re-
newable energy credit that is submitted to the Secretary
may not be used for any other purposes thereafter.
(d) ISSUANCE OF RENEWABLE ENERGY CREDITS.—
(1) IN GENERAL.—The Secretary shall estab-
lish, by rule after notice and opportunity for hearing
but not later than 120 days after the enactment of
this Act, a program to issue renewable energy cred-
its to renewable energy electric generators that sell
electricity to any other person. Renewable energy
credits shall be identified by type of generation and
State where the generator is located. Under such
program, the Secretary shall issue one renewable en-
ergy credit to any person who generates and sells to
any other person one kilowatt-hour of renewable en-
ergy net of any on-site consumption.
(2) FEES.—The Secretary shall impose and col-
lect a fee on electric generators awarded renewable
energy credits in an amount equal to the reasonable
costs of administering the Renewables Portfolio
Standard program established under this section
which shall be due at the time such credits are
issued.
(3) PURPA CONTRACTS.—In the case of re-
newable energy sold by the renewable energy electric
generator at above-market rates to a State regulated
electric utility under a contract entered into before
the date of enactment of this Act that is subject to
section 210 of the Public Utility Regulatory Policies
Act of 1978, for the duration of such contract, the
utility shall be treated for purposes of the other pro-
visions of this section as the generator of such en-
ergy unless such generator and utility agree to ter-
minate such contract prior to the expiration date set
forth in the contract. The Secretary shall settle any
disputes regarding the calculation of above-market
rates as it pertains to this section.
(e) SALE OR EXCHANGE.—Renewable energy credits
may be sold or exchanged by the person to whom issued
or by any other person who acquires the credit. A renew-
able energy credit generated in any year that is not used
to satisfy the minimum renewable generation requirement
of subsection (a) for that year may be carried forward for
use in the following year, but may not be carried forward
for use in any subsequent year.
(f) RULES AND REGULATIONS.—(1) The Secretary
shall promulgate such rules and regulations as may be
necessary to carry out this section, including but not lim-
ited to such rules and regulations requiring the submission
of such information as may be necessary to verify renew-
able energy generation by persons applying for renewable
energy credits under subsection (d), total end-use cus-
tomer sales of any person submitting renewable energy
credits for compliance under subsection (a), and to vali-
date the renewable energy credits submitted by any person
to the Secretary.
(2) At the request of any State, the Secretary shall
develop administrative procedures and promulgate addi-
tional rules and regulations as necessary to facilitate joint
implementation of the national renewables portfolio stand-
ard and any renewables portfolio standard adopted by any
State pursuant to subsection (a)(2).
(g) ANNUAL REPORTS.—The Secretary shall gather
available data and devise measures to gauge compliance
with the requirements of this section and the success of
the Renewables Portfolio Standard program established
under this section. On an annual basis not later than May
31 of each year, the Secretary shall publish a report for
the previous year that includes compliance data, program
results, and steps taken to improve the program results.
(h) SUNSET.—The requirements of this section shall
cease to apply 90 days after the Secretary certifies in the
annual report under subsection (g) that for the preceding
year the market value of renewable energy credits or the
number of credits traded or both has declined to such
nominal levels that the administrative cost to implement
the program is no longer justified.
(i) ENFORCEMENT.—(1) The failure or refusal of any
person to submit any required quantity of renewable en-
ergy credits shall be subject to a civil penalty of 3 times
the estimated national average market value (as deter-
mined by the Secretary) for the calendar year concerned
of such quantity of renewable energy credits. Any such
penalty shall be due and payable without demand to the
Secretary as provided in regulations to be issued by the
Secretary pursuant to subsection (f). Any such payment
shall be deposited in the United States Treasury pursuant
to the Miscellaneous Receipts Act. Any penalty due and
payable under this section shall not diminish the liability
of the unit’s owner or operator for any fine, penalty or
assessment against the unit for the same violation under
any other section of this Act.
(2) The Secretary shall bring an action in the appro-
priate United States district court to impose a civil penalty
on any person who fails or refuses to comply with sub-
section (a) or who fails to pay such penalty.
SEC. 116. NET-METERING AND INTERCONNECTION STAND-
ARDS.
The Public Utility Regulatory Policies Act of 1978
is amended by adding the following new section after sec-
tion 604:
‘‘SEC. 605. NET-METERING FOR RENEWABLE ENERGY.
‘‘(a) DEFINITIONS.—For purposes of this section:
‘‘(1) The term ‘eligible on-site generating facil-
ity’ means a facility on the site of an electric con-
sumer with a peak generating capacity of 2
megawatts or less that is fueled solely by a renew-
able energy resource.
‘‘(2) The term ‘renewable energy resource’
means organic waste biomass (not including munic-
ipal solid waste of black liquor), dedicated biomass
energy crops, landfill gas, geothermal, solar, or wind
resources.
‘‘(3) The term ‘net-metering service’ means a
service to an electricity consumer under which elec-
tricity generated by that consumer from an eligible
on-site generating facility and delivered to the dis-
tribution system through the same meter through
which purchased electricity is received may be used
to offset electricity provided by the retail electricity
supplier to the consumer during the applicable bill-
ing period so that a consumer is billed only for the
net electricity consumed during the billing period. If
the net electricity consumed is less than zero, then
the consumer shall be paid during the next billing
period the average spot market price for the elec-
tricity generated.
‘‘(b) REQUIREMENT TO PROVIDE NET METERING
SERVICE.—Each retail electricity supplier shall make
available upon request net metering service to any retail
consumer whom the supplier currently serves or solicits
for service.
‘‘(c) REQUIREMENT TO PROVIDE INTERCONNEC-
TION.—A retail electricity distributor shall permit the
interconnection to its distribution system of an on-site
generating facility if the facility meets the safety and
power quality standards established by the Commission.
‘‘(d) RULES.—The Commission shall prescribe safety
and power quality standards and rules necessary to carry
out this section. These standards and rules apply to any
interconnections of an on-site generating facility with a
distribution system, regardless of the size of the facility
or the type of fuel used by the facility.’’.
SEC. 117. CIVIL LIABILITY.
(a) LIABILITY.—A person who fails to abide by the
requirements of this Act with respect to any person is lia-
ble to such person in the amount of—
(1) any actual damage sustained by such person
as a result of such failure;
(2) an amount not less than $100 nor more
than $1,000 per violation; and
(3) in the case of any action to enforce this sec-
tion, the costs of the action, together with reason-
able attorneys fees as determined by the court.
(b) COURT ACTION.—Any action under this section
may be brought in any United States District Court, or
in any other court of competent jurisdiction, within three
years from the date of violation.
(c) ACTIONS TO ENFORCE.—An action to enforce
this Act may also be brought by any State Attorney Gen-
eral of any other agency responsible for its enforcement.
TITLE II—STATE STANDARDS
FOR ELECTRICITY SERVICE
SEC. 201. RETAIL DEREGULATION.
(a) PRIOR DEREGULATION.—If a State has enacted
laws or regulations to deregulate retail sales of electricity
prior to the effective date of this Act, a State shall meet
the requirements of this title within 2 years after the effec-
tive date of this Act.
(b) FUTURE DEREGULATION.—For States that con-
tinue to regulate retail sales of electricity for some or all
retail customers after the effective date of this Act, a State
shall meet the requirements of this title before enacting
laws or regulations that deregulate retail sales of elec-
tricity for all retail customers.
SEC. 202. PROHIBITION OF COST SHIFTING.
(a) RATES.—No class of consumers in a State shall
be charged rates for transmission or distribution service
(or other regulated services) in excess of the class’s pro-
portional responsibility for the costs of providing these
services.
(b) RATE DIFFERENTIAL.—On an annual basis, each
State regulatory authority shall compute the rate differen-
tial for retail electric service between residential and in-
dustrial customers by comparing the total average residen-
tial rate and the total average industrial rate, based on
monthly reports by suppliers to the State regulatory au-
thority and the Energy Information Administration. As
used in this subsection, ‘‘total average residential rate’’
means the total residential revenues divided by the total
residential kilowatt-hour sales; ‘‘total average industrial
rate’’ means the total industrial revenues divided by total
industrial kilowatt-hour sales; and ‘‘rate differential’’
means the difference between the total average residential
rate and the total average industrial rate, divided by the
total average residential rate.
(c) THREE PERCENT DIFFERENTIAL.—If the State
regulatory authority determines that the rate differential
for electric service between residential and industrial cus-
tomers has increased by three percentage points or more
from the rate differential that existed on the day before
the State enacted laws or regulations to deregulate retail
sales of electricity, the State regulatory authority shall
order each distributor to increase the access charge per
kilowatt-hour to all industrial customers, and to reduce
the access charge per kilowatt-hour to all residential cus-
tomers, so that the rate differential remains within three
percentage points or less of the rate differential that ex-
isted on the day before the State enacted laws or regula-
tions to deregulate retail sales of electricity.
SEC. 203. PROHIBITION OF AFFILIATE ABUSES AND CROSS-
SUBSIDIES.
(a) TRANSFER
OF ASSETS.—A State’s investor-
owned utilities shall—
(1) transfer transmission assets to a regulated
transmission company; and
(2) transfer the distribution assets to a regu-
lated distribution company.
(b) DEFINITIONS.—For the purposes of this section,
the terms ‘‘transmission company’’ and ‘‘distribution com-
pany’’ mean transmission companies and distribution com-
panies created to comply with subsection (a).
(c) PROHIBITION.—It shall be unlawful for any per-
son who owns directly or indirectly any voting security of
any company that owns, operates, or leases generation fa-
cilities, or for any person who owns directly or indirectly
any voting security of any company that sells electricity
in wholesale or retail markets, to own directly or indirectly
any portion of a transmission company or a distribution
company.
(d) OFFICERS, DIRECTORS, EMPLOYEES.—It shall be
unlawful for any officer, director, or employee of a trans-
mission company or a distribution company to have any
affiliation with, or to own any security of any company,
or any associated company thereof, that owns, operates,
or leases generation facilities, or that sells electricity in
wholesale or retail markets.
(e) OWNERSHIP OF SECURITIES.—It shall be unlaw-
ful for any transmission company or any distribution com-
pany to own directly or indirectly any security of any other
company.
(f) LOANS.—It shall be unlawful for any transmission
company or any distribution company to borrow from any
company, or any associated or affiliated company thereof,
that owns, operates, or leases generation facilities, or that
sells electricity in wholesale or retail markets.
(g) LOANS FROM TRANSMISSION OR DISTRIBUTION
COMPANIES.—It shall be unlawful for any person to bor-
row from any transmission company or any distribution
company.
(h) SERVICE, SALES, OR
CONSTRUCTION
CON-
TRACTS.—It shall be unlawful for any transmission com-
pany or any distribution company to enter into any serv-
ice, sales, or construction contract with any company, or
any associated or affiliated company thereof, that owns,
operates, or leases generation facilities, except for the pro-
vision of generation services that allow for the safe, reli-
able, and economical operation of a transmission system
or a distribution system as determined through the use
of the principles of distributed resources.
(i) USE OF NAMES, ETC.—It shall be unlawful for
any transmission company or any distribution company to
use, or to resemble in anyway, the name, logo, service
mark, trademark, or trade name of any company, or any
associated company thereof, that owns, operates, or leases
generation facilities, or that sells electricity in wholesale
or retail markets.
(j) ADDITIONAL PROHIBITIONS.—An investor-owned
electric utility, a transmission company, and a distribution
company—
(1) may not discriminate against any other per-
son or company in the provision of goods, services,
facilities, and information, or in the establishment of
standards;