473 
‘‘(B) For the purposes of this paragraph, the 
term ‘existing qualifying cogeneration facility’ means 
a facility that— 
‘‘(i) was a qualifying cogeneration facility 
on the date of enactment of subsection (m); or 
‘‘(ii) had filed with the Commission a no-
tice of self-certification, self recertification or an 
application for Commission certification under 
18 C.F.R. 292.207 prior to the date on which the 
Commission issues the final rule required by sub-
section (n). 
‘‘(3) COMMISSION REVIEW.—Any electric utility 
may file an application with the Commission for re-
lief from the mandatory purchase obligation pursuant 
to this subsection on a service territory-wide basis. 
Such application shall set forth the factual basis upon 
which relief is requested and describe why the condi-
tions set forth in subparagraphs (A), (B) or (C) of 
paragraph (1) of this subsection have been met. After 
notice, including sufficient notice to potentially af-
fected qualifying cogeneration facilities and quali-
fying small power production facilities, and an op-
portunity for comment, the Commission shall make a 
final determination within 90 days of such applica-
tion regarding whether the conditions set forth in sub-
474 
paragraphs (A), (B) or (C) of paragraph (1) have 
been met. 
‘‘(4) REINSTATEMENT OF OBLIGATION TO PUR-
CHASE.—At any time after the Commission makes a 
finding under paragraph (3) relieving an electric 
utility of its obligation to purchase electric energy, a 
qualifying cogeneration facility, a qualifying small 
power production facility, a State agency, or any 
other affected person may apply to the Commission 
for an order reinstating the electric utility’s obliga-
tion to purchase electric energy under this section. 
Such application shall set forth the factual basis upon 
which the application is based and describe why the 
conditions set forth in subparagraphs (A), (B) or (C) 
of paragraph (1) of this subsection are no longer met. 
After notice, including sufficient notice to potentially 
affected utilities, and opportunity for comment, the 
Commission shall issue an order within 90 days of 
such application reinstating the electric utility’s obli-
gation to purchase electric energy under this section 
if the Commission finds that the conditions set forth 
in subparagraphs (A), (B) or (C) of paragraph (1) 
which relieved the obligation to purchase, are no 
longer met.
475 
‘‘(5) OBLIGATION TO SELL.—After the date of en-
actment of this subsection, no electric utility shall be 
required to enter into a new contract or obligation to 
sell electric energy to a qualifying cogeneration facil-
ity or a qualifying small power production facility 
under this section if the Commission finds that— 
‘‘(A) competing retail electric suppliers are 
willing and able to sell and deliver electric en-
ergy to the qualifying cogeneration facility or 
qualifying small power production facility; and 
‘‘(B) the electric utility is not required by 
State law to sell electric energy in its service ter-
ritory. 
‘‘(6) NO EFFECT ON EXISTING RIGHTS AND REM-
EDIES.—Nothing in this subsection affects the rights 
or remedies of any party under any contract or obli-
gation, in effect or pending approval before the ap-
propriate State regulatory authority or non-regulated 
electric utility on the date of enactment of this sub-
section, to purchase electric energy or capacity from 
or to sell electric energy or capacity to a qualifying 
cogeneration facility or qualifying small power pro-
duction facility under this Act (including the right to 
recover costs of purchasing electric energy or capac-
ity).
476 
‘‘(7) RECOVERY OF COSTS.—(A) The Commission 
shall issue and enforce such regulations as are nec-
essary to ensure that an electric utility that purchases 
electric energy or capacity from a qualifying cogen-
eration facility or qualifying small power production 
facility in accordance with any legally enforceable ob-
ligation entered into or imposed under this section re-
covers all prudently incurred costs associated with the 
purchase. 
‘‘(B) A regulation under subparagraph (A) shall 
be enforceable in accordance with the provisions of 
law applicable to enforcement of regulations under the 
Federal Power Act (16 U.S.C. 791a et seq.). 
‘‘(n) RULEMAKING
FOR NEW QUALIFYING FACILI-
TIES.—(1)(A) Not later than 180 days after the date of en-
actment of this section, the Commission shall issue a rule 
revising the criteria in 18 C.F.R. 292.205 for new quali-
fying cogeneration facilities seeking to sell electric energy 
pursuant to section 210 of this Act to ensure— 
‘‘(i) that the thermal energy output of a new 
qualifying cogeneration facility is used in a produc-
tive and beneficial manner; 
‘‘(ii) the electrical, thermal, and chemical output 
of the cogeneration facility is used fundamentally for 
industrial, commercial, or institutional purposes and
477 
is not intended fundamentally for sale to an electric 
utility, taking into account technological, efficiency, 
economic, and variable thermal energy requirements, 
as well as State laws applicable to sales of electric en-
ergy from a qualifying facility to its host facility; 
and 
‘‘(iii) continuing progress in the development of 
efficient electric energy generating technology. 
‘‘(B) The rule issued pursuant to paragraph (1)(A) of 
this subsecvtion shall be applicable only to facilities that 
seek to sell electric energy pursuant to section 210 of this 
Act. For all other purposes, except as specifically provided 
in subsection (m)(2)(A), qualifying facility status shall be 
determined in accordance with the rules and regulations of 
this Act. 
‘‘(2) Notwithstanding rule revisions under paragraph 
(1), the Commission’s criteria for qualifying cogeneration 
facilities in effect prior to the date on which the Commis-
sion issues the final rule required by paragraph (1) shall 
continue to apply to any cogeneration facility that— 
‘‘(A) was a qualifying cogeneration facility on 
the date of enactment of subsection (m), or 
‘‘(B) had filed with the Commission a notice of 
self-certification, self-recertification or an application 
for Commission certification under 18 C.F.R. 292.207
478 
prior to the date on which the Commission issues the 
final rule required by paragraph (1).’’. 
(b) ELIMINATION OF OWNERSHIP LIMITATIONS.— 
(1) QUALIFYING SMALL POWER PRODUCTION FA-
CILITY.—Section 3(17)(C) of the Federal Power Act 
(16 U.S.C. 796(17)(C)) is amended to read as follows: 
‘‘(C) ‘qualifying small power production fa-
cility’ means a small power production facility 
that the Commission determines, by rule, meets 
such requirements (including requirements re-
specting fuel use, fuel efficiency, and reliability) 
as the Commission may, by rule, prescribe;’’. 
(2) QUALIFYING COGENERATION FACILITY.—Sec-
tion 3(18)(B) of the Federal Power Act (16 U.S.C. 
796(18)(B)) is amended to read as follows: 
‘‘(B) 
‘qualifying 
cogeneration 
facility’ 
means a cogeneration facility that the Commis-
sion determines, by rule, meets such requirements 
(including requirements respecting minimum 
size, fuel use, and fuel efficiency) as the Commis-
sion may, by rule, prescribe;’’. 
SEC. 1254. INTERCONNECTION. 
(a) ADOPTION OF STANDARDS.—Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2621 (d) ) is amended by adding at the end the following:
479 
‘‘(16) INTERCONNECTION.—Each electric utility 
shall make available, upon request, interconnection 
service to any electric consumer that the electric util-
ity serves. For purposes of this paragraph, the term 
‘interconnection service’ means service to an electric 
consumer under which an on-site generating facility 
on the consumer’s premises shall be connected to the 
local distribution facilities. Interconnection services 
shall be offered based upon the standards developed by 
the Institute of Electrical and Electronics Engineers: 
IEEE Standard 1547 for Interconnecting Distributed 
Resources with Electric Power Systems, as they may 
be amended from time to time. In addition, agree-
ments and procedures shall be established whereby the 
services are offered shall promote current best prac-
tices of interconnection for distributed generation, in-
cluding but not limited to practices stipulated in 
model codes adopted by associations of state regu-
latory agencies. All such agreements and procedures 
shall be just and reasonable, and not unduly dis-
criminatory or preferential.’’. 
(b) COMPLIANCE.— 
(1) TIME LIMITATIONS.—Section 112(b) of the 
Public Utility Regulatory Policies Act of 1978 (16
480 
U.S.C. 2622(b)) is amended by adding at the end the 
following: 
‘‘(5)(A) Not later than one year after the enact-
ment of this paragraph, each State regulatory author-
ity (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 consideration, 
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 regu-
latory 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, referred 
to in section 111 with respect to each standard estab-
lished by paragraph (16) of section 111(d).’’. 
(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 established by 
paragraph (16), the reference contained in this sub-
section to the date of enactment of this Act shall be
481 
deemed to be a reference to the date of enactment of 
paragraph (16).’’. 
(3) PRIOR STATE ACTIONS.— 
(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 standards established 
by paragraph (16) of section 111(d) in the case of any elec-
tric utility in a State if, before the enactment of this sub-
section— 
‘‘(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 con-
ducted a proceeding to consider implementation of the 
standard concerned (or a comparable standard) for 
such utility; or 
‘‘(3) the State legislature has voted on the imple-
mentation of such standard (or a comparable stand-
ard) for such utility.’’. 
(B) CROSS
REFERENCE.—Section 124 of 
such Act (16 U.S.C. 2634) is amended by adding 
the following at the end thereof: ‘‘In the case of
482 
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).’’. 
Subtitle F—Repeal of PUHCA 
SEC. 1261. SHORT TITLE. 
This subtitle may be cited as the ‘‘Public Utility Hold-
ing Company Act of 2005’’. 
SEC. 1262. DEFINITIONS. 
For purposes of this subtitle: 
(1) AFFILIATE.—The term ‘‘affiliate’’ of a com-
pany means any company, 5 percent or more of the 
outstanding voting securities of which are owned, con-
trolled, or held with power to vote, directly or indi-
rectly, by such company. 
(2) ASSOCIATE COMPANY.—The term ‘‘associate 
company’’ of a company means any company in the 
same holding company system with such company. 
(3) 
COMMISSION.—The 
term 
‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(4) COMPANY.—The term ‘‘company’’ means a 
corporation, partnership, association, joint stock com-
pany, business trust, or any organized group of per-
483 
sons, whether incorporated or not, or a receiver, trust-
ee, or other liquidating agent of any of the foregoing. 
(5) ELECTRIC
UTILITY
COMPANY.—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) EXEMPT WHOLESALE GENERATOR AND FOR-
EIGN UTILITY COMPANY.—The terms ‘‘exempt whole-
sale generator’’ and ‘‘foreign utility company’’ have 
the same meanings as in sections 32 and 33, respec-
tively, of the Public Utility Holding Company Act of 
1935 (15 U.S.C. 79z–5a, 79z–5b), as those sections ex-
isted on the day before the effective date of this sub-
title. 
(7) GAS UTILITY COMPANY.—The term ‘‘gas util-
ity company’’ means any company that owns or op-
erates facilities used for distribution at retail (other 
than the distribution only in enclosed portable con-
tainers 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) HOLDING
COMPANY.—The term ‘‘holding 
company’’ means—
484 
(A) any company that directly or indirectly 
owns, controls, or holds, with power to vote, 10 
percent or more of the outstanding voting securi-
ties of a public-utility company or of a holding 
company of any public-utility company; and 
(B) any person, determined by the Commis-
sion, after notice and opportunity for hearing, to 
exercise directly or indirectly (either alone or 
pursuant to an arrangement or understanding 
with 1 or more persons) such a controlling influ-
ence 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 obliga-
tions, duties, and liabilities imposed by this sub-
title upon holding companies. 
(9) HOLDING
COMPANY
SYSTEM.—The term 
‘‘holding company system’’ means a holding com-
pany, together with its subsidiary companies. 
(10) JURISDICTIONAL RATES.—The term ‘‘juris-
dictional rates’’ means rates accepted or established 
by the Commission for the transmission of electric en-
ergy in interstate commerce, the sale of electric energy 
at wholesale in interstate commerce, the transpor-
485 
tation of natural gas in interstate commerce, and the 
sale in interstate commerce of natural gas for resale 
for ultimate public consumption for domestic, com-
mercial, industrial, or any other use. 
(11) NATURAL GAS COMPANY.—The term ‘‘nat-
ural 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 re-
sale. 
(12) PERSON.—The term ‘‘person’’ means an in-
dividual or company. 
(13) PUBLIC UTILITY.—The term ‘‘public util-
ity’’ 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) PUBLIC-UTILITY COMPANY.—The term ‘‘pub-
lic-utility company’’ means an electric utility com-
pany or a gas utility company. 
(15) STATE COMMISSION.—The term ‘‘State com-
mission’’ means any commission, board, agency, or 
officer, by whatever name designated, of a State, mu-
nicipality, or other political subdivision of a State 
that, under the laws of such State, has jurisdiction to 
regulate public utility companies.