IIB 
114TH CONGRESS 
1ST SESSION 
H. R. 8 
IN THE SENATE OF THE UNITED STATES 
DECEMBER 7, 2015 
Received; read twice and referred to the Committee on Energy and Natural 
Resources 
AN ACT 
To modernize energy infrastructure, build a 21st century 
energy and manufacturing workforce, bolster America’s 
energy security and diplomacy, and promote energy effi-
ciency and government accountability, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘North American Energy Security and Infrastructure Act 
of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—MODERNIZING AND PROTECTING INFRASTRUCTURE 
Subtitle A—Energy Delivery, Reliability, and Security 
Sec. 1101. FERC process coordination. 
Sec. 1102. Resolving environmental and grid reliability conflicts. 
Sec. 1103. Emergency preparedness for energy supply disruptions. 
Sec. 1104. Critical electric infrastructure security. 
Sec. 1105. Strategic Transformer Reserve. 
Sec. 1106. Cyber Sense. 
Sec. 1107. State coverage and consideration of PURPA standards for electric 
utilities. 
Sec. 1108. Reliability analysis for certain rules that affect electric generating 
facilities. 
Sec. 1109. Increased accountability with respect to carbon capture, utilization, 
and sequestration projects. 
Sec. 1110. Reliability and performance assurance in Regional Transmission Or-
ganizations. 
Sec. 1111. Ethane storage study. 
Sec. 1112. Statement of policy on grid modernization. 
Sec. 1113. Grid resilience report. 
Sec. 1114. GAO report on improving National Response Center. 
Sec. 1115. Designation of National Energy Security Corridors on Federal 
lands. 
Sec. 1116. Vegetation management, facility inspection, and operation and main-
tenance on Federal lands containing electric transmission and 
distribution facilities. 
Subtitle B—Hydropower Regulatory Modernization 
Sec. 1201. Protection of private property rights in hydropower licensing. 
Sec. 1202. Extension of time for FERC project involving W. Kerr Scott Dam. 
Sec. 1203. Hydropower licensing and process improvements. 
Sec. 1204. Judicial review of delayed Federal authorizations. 
Sec. 1205. Licensing study improvements. 
Sec. 1206. Closed-loop pumped storage projects. 
Sec. 1207. License amendment improvements. 
Sec. 1208. Promoting hydropower development at existing nonpowered dams. 
TITLE II—ENERGY SECURITY AND DIPLOMACY 
Sec. 2001. Sense of Congress. 
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Sec. 2002. Energy security valuation. 
Sec. 2003. North American energy security plan. 
Sec. 2004. Collective energy security. 
Sec. 2005. Authorization to export natural gas. 
Sec. 2006. Environmental review for energy export facilities. 
Sec. 2007. Authorization of cross-border infrastructure projects. 
Sec. 2008. Report on smart meter security concerns. 
TITLE III—ENERGY EFFICIENCY AND ACCOUNTABILITY 
Subtitle A—Energy Efficiency 
CHAPTER 1—FEDERAL AGENCY ENERGY EFFICIENCY 
Sec. 3111. Energy-efficient and energy-saving information technologies. 
Sec. 3112. Energy efficient data centers. 
Sec. 3113. Report on energy and water savings potential from thermal insula-
tion. 
Sec. 3114. Battery storage report. 
Sec. 3115. Federal purchase requirement. 
Sec. 3116. Energy performance requirement for Federal buildings. 
Sec. 3117. Federal building energy efficiency performance standards; certifi-
cation system and level for Federal buildings. 
Sec. 3118. Operation of battery recharging stations in parking areas used by 
Federal employees. 
Sec. 3119. Report on Energy Savings and Greenhouse Gas Emissions Reduc-
tion from Conversion of Captured Methane to Energy. 
CHAPTER 2—ENERGY EFFICIENT TECHNOLOGY AND MANUFACTURING 
Sec. 3121. Inclusion of Smart Grid capability on Energy Guide labels. 
Sec. 3122. Voluntary verification programs for air conditioning, furnace, boiler, 
heat pump, and water heater products. 
Sec. 3123. Facilitating consensus furnace standards. 
Sec. 3124. No warranty for certain certified Energy Star products. 
Sec. 3125. Clarification to effective date for regional standards. 
Sec. 3126. Internet of Things report. 
Sec. 3127. Energy savings from lubricating oil. 
Sec. 3128. Definition of external power supply. 
Sec. 3129. Standards for power supply circuits connected to LEDS or OLEDS. 
CHAPTER 3—SCHOOL BUILDINGS 
Sec. 3131. Coordination of energy retrofitting assistance for schools. 
CHAPTER 4—BUILDING ENERGY CODES 
Sec. 3141. Greater energy efficiency in building codes. 
Sec. 3142. Voluntary nature of building asset rating program. 
CHAPTER 5—EPCA TECHNICAL CORRECTIONS AND CLARIFICATIONS 
Sec. 3151. Modifying product definitions. 
Sec. 3152. Clarifying rulemaking procedures. 
CHAPTER 6—ENERGY AND WATER EFFICIENCY 
Sec. 3161. Smart energy and water efficiency pilot program. 
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Sec. 3162. WaterSense. 
Subtitle B—Accountability 
CHAPTER 1—MARKET MANIPULATION, ENFORCEMENT, AND COMPLIANCE 
Sec. 3211. FERC Office of Compliance Assistance and Public Participation. 
CHAPTER 2—MARKET REFORMS 
Sec. 3221. GAO study on wholesale electricity markets. 
Sec. 3222. Clarification of facility merger authorization. 
CHAPTER 3—CODE MAINTENANCE 
Sec. 3231. Repeal of off-highway motor vehicles study. 
Sec. 3232. Repeal of methanol study. 
Sec. 3233. Repeal of residential energy efficiency standards study. 
Sec. 3234. Repeal of weatherization study. 
Sec. 3235. Repeal of report to Congress. 
Sec. 3236. Repeal of report by General Services Administration. 
Sec. 3237. Repeal of intergovernmental energy management planning and co-
ordination workshops. 
Sec. 3238. Repeal of Inspector General audit survey and President’s Council on 
Integrity and Efficiency report to Congress. 
Sec. 3239. Repeal of procurement and identification of energy efficient prod-
ucts program. 
Sec. 3240. Repeal of national action plan for demand response. 
Sec. 3241. Repeal of national coal policy study. 
Sec. 3242. Repeal of study on compliance problem of small electric utility sys-
tems. 
Sec. 3243. Repeal of study of socioeconomic impacts of increased coal produc-
tion and other energy development. 
Sec. 3244. Repeal of study of the use of petroleum and natural gas in combus-
tors. 
Sec. 3245. Repeal of submission of reports. 
Sec. 3246. Repeal of electric utility conservation plan. 
Sec. 3247. Technical amendment to Powerplant and Industrial Fuel Use Act of 
1978. 
Sec. 3248. Emergency energy conservation repeals. 
Sec. 3249. Repeal of State utility regulatory assistance. 
Sec. 3250. Repeal of survey of energy saving potential. 
Sec. 3251. Repeal of photovoltaic energy program. 
Sec. 3252. Repeal of energy auditor training and certification. 
CHAPTER 4—AUTHORIZATION 
Sec. 3261 Authorization. 
TITLE IV—CHANGING CRUDE OIL MARKET CONDITIONS 
Sec. 4001. Findings. 
Sec. 4002. Repeal. 
Sec. 4003. National policy on oil export restrictions. 
Sec. 4004. Studies. 
Sec. 4005. Savings clause. 
Sec. 4006. Partnerships with minority serving institutions. 
Sec. 4007. Report. 
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Sec. 4008. Report to Congress. 
Sec. 4009. Prohibition on exports of crude oil, refined petroleum products, and 
petrochemical products to the Islamic Republic of Iran. 
TITLE V—OTHER MATTERS 
Sec. 5001. Assessment of regulatory requirements. 
Sec. 5002. Definitions. 
Sec. 5003. Exclusive venue for certain civil actions relating to covered energy 
projects. 
Sec. 5004. Timely filing. 
Sec. 5005. Expedition in hearing and determining the action. 
Sec. 5006. Limitation on injunction and prospective relief. 
Sec. 5007. Legal standing. 
Sec. 5008. Study to identify legal and regulatory barriers that delay, prohibit, 
or impede the export of natural energy resources. 
Sec. 5009. Study of volatility of crude oil. 
Sec. 5010. Smart meter privacy rights. 
Sec. 5011. Youth energy enterprise competition. 
Sec. 5012. Modernization of terms relating to minorities. 
Sec. 5013. Voluntary vegetation management outside rights-of-way. 
Sec. 5014. Repeal of rule for new residential wood heaters. 
TITLE VI—PROMOTING RENEWABLE ENERGY WITH SHARED 
SOLAR 
Sec. 6001. Short title. 
Sec. 6002. Provision of interconnection service and net billing service for com-
munity solar facilities. 
TITLE VII—MARINE HYDROKINETIC 
Sec. 7001. Definition of marine and hydrokinetic renewable energy. 
Sec. 7002. Marine and hydrokinetic renewable energy research and develop-
ment. 
Sec. 7003. National Marine Renewable Energy Research, Development, and 
Demonstration Centers. 
Sec. 7004. Authorization of appropriations. 
TITLE I—MODERNIZING AND 
PROTECTING INFRASTRUCTURE 
Subtitle A—Energy Delivery, 
Reliability, and Security 
SEC. 1101. FERC PROCESS COORDINATION. 
Section 15 of the Natural Gas Act (15 U.S.C. 717n) 
is amended— 
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(1) by amending subsection (b)(2) to read as 
follows: 
‘‘(2) OTHER AGENCIES.— 
‘‘(A) IN
GENERAL.—Each Federal and 
State agency considering an aspect of an appli-
cation for Federal authorization shall cooperate 
with the Commission and comply with the dead-
lines established by the Commission. 
‘‘(B) IDENTIFICATION.—The Commission 
shall identify, as early as practicable after it is 
notified by a prospective applicant of a potential 
project requiring Commission authorization, 
any Federal or State agency, local government, 
or Indian tribe that may consider an aspect of 
an application for that Federal authorization. 
‘‘(C) NOTIFICATION.— 
‘‘(i) IN GENERAL.—The Commission 
shall notify any agency identified under 
subparagraph (B) of the opportunity to co-
operate or participate in the review proc-
ess. 
‘‘(ii) 
DEADLINE.—A 
notification 
issued under clause (i) shall establish a 
deadline by which a response to the notifi-
cation shall be submitted, which may be 
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extended by the Commission for good 
cause.’’; 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) by striking ‘‘and’’ at the end of 
subparagraph (A); 
(ii) by redesignating subparagraph 
(B) as subparagraph (C); and 
(iii) by inserting after subparagraph 
(A) the following new subparagraph: 
‘‘(B) set deadlines for all such Federal au-
thorizations; and’’; 
(B) by striking paragraph (2); and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(2) DEADLINE
FOR
FEDERAL
AUTHORIZA-
TIONS.—A final decision on a Federal authorization 
is due no later than 90 days after the Commission 
issues its final environmental document, unless a 
schedule is otherwise established by Federal law. 
‘‘(3) CONCURRENT
REVIEWS.—Each Federal 
and State agency considering an aspect of an appli-
cation for a Federal authorization shall— 
‘‘(A) carry out the obligations of that 
agency under applicable law concurrently, and 
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in conjunction, with the review required by the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), unless doing so would im-
pair the ability of the agency to conduct needed 
analysis or otherwise carry out those obliga-
tions; 
‘‘(B) formulate and implement administra-
tive, policy, and procedural mechanisms to en-
able the agency to ensure completion of re-
quired Federal authorizations no later than 90 
days after the Commission issues its final envi-
ronmental document; and 
‘‘(C) transmit to the Commission a state-
ment— 
‘‘(i) acknowledging receipt of the 
schedule established under paragraph (1); 
and 
‘‘(ii) setting forth the plan formulated 
under subparagraph (B) of this paragraph. 
‘‘(4) ISSUE
IDENTIFICATION
AND
RESOLU-
TION.— 
‘‘(A) IDENTIFICATION.—Federal and State 
agencies that may consider an aspect of an ap-
plication for Federal authorization shall iden-
tify, as early as possible, any issues of concern 
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that may delay or prevent an agency from 
working with the Commission to resolve such 
issues and granting such authorization. 
‘‘(B) ISSUE
RESOLUTION.—The Commis-
sion may forward any issue of concern identi-
fied under subparagraph (A) to the heads of 
the relevant agencies (including, in the case of 
a failure by the State agency, the Federal agen-
cy overseeing the delegated authority) for reso-
lution. 
‘‘(5) FAILURE TO MEET SCHEDULE.—If a Fed-
eral or State agency does not complete a proceeding 
for an approval that is required for a Federal au-
thorization in accordance with the schedule estab-
lished by the Commission under paragraph (1)— 
‘‘(A) the applicant may pursue remedies 
under section 19(d); and 
‘‘(B) the head of the relevant Federal 
agency (including, in the case of a failure by a 
State agency, the Federal agency overseeing the 
delegated authority) shall notify Congress and 
the Commission of such failure and set forth a 
recommended implementation plan to ensure 
completion of the proceeding for an approval.’’; 
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(3) by redesignating subsections (d) through (f) 
as subsections (g) through (i), respectively; and 
(4) by inserting after subsection (c) the fol-
lowing new subsections: 
‘‘(d) REMOTE SURVEYS.—If a Federal or State agen-
cy considering an aspect of an application for Federal au-
thorization requires the applicant to submit environmental 
data, the agency shall consider any such data gathered 
by aerial or other remote means that the applicant sub-
mits. The agency may grant a conditional approval for 
Federal authorization, conditioned on the verification of 
such data by subsequent onsite inspection. 
‘‘(e) APPLICATION PROCESSING.—The Commission, 
and Federal and State agencies, may allow an applicant 
seeking Federal authorization to fund a third-party con-
tractor to assist in reviewing the application. 
‘‘(f) 
ACCOUNTABILITY, 
TRANSPARENCY, 
EFFI-
CIENCY.—For applications requiring multiple Federal au-
thorizations, the Commission, with input from any Federal 
or State agency considering an aspect of an application, 
shall track and make available to the public on the Com-
mission’s website information related to the actions re-
quired to complete permitting, reviews, and other actions 
required. Such information shall include the following: 
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‘‘(1) The schedule established by the Commis-
sion under subsection (c)(1). 
‘‘(2) A list of all the actions required by each 
applicable agency to complete permitting, reviews, 
and other actions necessary to obtain a final decision 
on the Federal authorization. 
‘‘(3) The expected completion date for each 
such action. 
‘‘(4) A point of contact at the agency account-
able for each such action. 
‘‘(5) In the event that an action is still pending 
as of the expected date of completion, a brief expla-
nation of the reasons for the delay.’’. 
SEC. 1102. RESOLVING ENVIRONMENTAL AND GRID RELI-
ABILITY CONFLICTS. 
(a) COMPLIANCE WITH OR VIOLATION OF ENVIRON-
MENTAL LAWS WHILE UNDER EMERGENCY ORDER.— 
Section 202(c) of the Federal Power Act (16 U.S.C. 
824a(c)) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 
(2) by adding at the end the following: 
‘‘(2) With respect to an order issued under this sub-
section that may result in a conflict with a requirement 
of any Federal, State, or local environmental law or regu-
lation, the Commission shall ensure that such order re-
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quires generation, delivery, interchange, or transmission 
of electric energy only during hours necessary to meet the 
emergency and serve the public interest, and, to the max-
imum extent practicable, is consistent with any applicable 
Federal, State, or local environmental law or regulation 
and minimizes any adverse environmental impacts. 
‘‘(3) To the extent any omission or action taken by 
a party, that is necessary to comply with an order issued 
under this subsection, including any omission or action 
taken to voluntarily comply with such order, results in 
noncompliance with, or causes such party to not comply 
with, any Federal, State, or local environmental law or 
regulation, such omission or action shall not be considered 
a violation of such environmental law or regulation, or 
subject such party to any requirement, civil or criminal 
liability, or a citizen suit under such environmental law 
or regulation. 
‘‘(4)(A) An order issued under this subsection that 
may result in a conflict with a requirement of any Federal, 
State, or local environmental law or regulation shall expire 
not later than 90 days after it is issued. The Commission 
may renew or reissue such order pursuant to paragraphs 
(1) and (2) for subsequent periods, not to exceed 90 days 
for each period, as the Commission determines necessary 
to meet the emergency and serve the public interest. 
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‘‘(B) In renewing or reissuing an order under sub-
paragraph (A), the Commission shall consult with the pri-
mary Federal agency with expertise in the environmental 
interest protected by such law or regulation, and shall in-
clude in any such renewed or reissued order such condi-
tions as such Federal agency determines necessary to min-
imize any adverse environmental impacts to the extent 
practicable. The conditions, if any, submitted by such Fed-
eral agency shall be made available to the public. The 
Commission may exclude such a condition from the re-
newed or reissued order if it determines that such condi-
tion would prevent the order from adequately addressing 
the emergency necessitating such order and provides in 
the order, or otherwise makes publicly available, an expla-
nation of such determination. 
‘‘(5) If an order issued under this subsection is subse-
quently stayed, modified, or set aside by a court pursuant 
to section 313 or any other provision of law, any omission 
or action previously taken by a party that was necessary 
to comply with the order while the order was in effect, 
including any omission or action taken to voluntarily com-
ply with the order, shall remain subject to paragraph 
(3).’’. 
(b) TEMPORARY CONNECTION OR CONSTRUCTION BY 
MUNICIPALITIES.—Section 202(d) of the Federal Power 
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Act (16 U.S.C. 824a(d)) is amended by inserting ‘‘or mu-
nicipality’’ before ‘‘engaged in the transmission or sale of 
electric energy’’. 
SEC. 1103. EMERGENCY PREPAREDNESS FOR ENERGY SUP-
PLY DISRUPTIONS. 
(a) FINDING.—Congress finds that recent natural 
disasters have underscored the importance of having resil-
ient oil and natural gas infrastructure and energy storage 
and effective ways for industry and government to commu-
nicate to address energy supply disruptions. 
(b) AUTHORIZATION FOR ACTIVITIES TO ENHANCE 
EMERGENCY
PREPAREDNESS
FOR
NATURAL
DISAS-
TERS.—The Secretary of Energy shall develop and adopt 
procedures to— 
(1) improve communication and coordination 
between the Department of Energy’s energy re-
sponse team, Federal partners, and industry; 
(2) leverage the Energy Information Adminis-
tration’s subject matter expertise within the Depart-
ment’s energy response team to improve supply 
chain situation assessments; 
(3) establish company liaisons and direct com-
munication with the Department’s energy response 
team to improve situation assessments; 
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(4) streamline and enhance processes for ob-
taining temporary regulatory relief to speed up 
emergency response and recovery; 
(5) facilitate and increase engagement among 
States, the oil and natural gas industry, the energy 
storage industry, and the Department in developing 
State and local energy assurance plans; 
(6) establish routine education and training 
programs for key government emergency response 
positions with the Department and States; and 
(7) involve States, the energy storage industry, 
and the oil and natural gas industry in comprehen-
sive drill and exercise programs. 
(c) COOPERATION.—The activities carried out under 
subsection (b) shall include collaborative efforts with State 
and local government officials and the private sector. 
(d) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary of Energy shall 
submit to Congress a report describing the effectiveness 
of the activities authorized under this section. 
SEC. 1104. CRITICAL ELECTRIC INFRASTRUCTURE SECU-
RITY. 
(a) CRITICAL ELECTRIC INFRASTRUCTURE SECU-
RITY.—Part II of the Federal Power Act (16 U.S.C. 824 
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et seq.) is amended by adding after section 215 the fol-
lowing new section: 
‘‘SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECU-
RITY. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) BULK-POWER
SYSTEM; ELECTRIC
RELI-
ABILITY
ORGANIZATION; REGIONAL
ENTITY.—The 
terms ‘bulk-power system’, ‘Electric Reliability Or-
ganization’, and ‘regional entity’ have the meanings 
given such terms in paragraphs (1), (2), and (7) of 
section 215(a), respectively. 
‘‘(2) CRITICAL ELECTRIC INFRASTRUCTURE.— 
The term ‘critical electric infrastructure’ means a 
system or asset of the bulk-power system, whether 
physical or virtual, the incapacity or destruction of 
which would negatively affect national security, eco-
nomic security, public health or safety, or any com-
bination of such matters. 
‘‘(3) CRITICAL ELECTRIC INFRASTRUCTURE IN-
FORMATION.—The term ‘critical electric infrastruc-
ture information’ means information related to crit-
ical electric infrastructure, or proposed critical elec-
trical infrastructure, generated by or provided to the 
Commission or other Federal agency, other than 
classified national security information, that is des-
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ignated as critical electric infrastructure information 
by the Commission under subsection (d)(2). Such 
term includes information that qualifies as critical 
energy infrastructure information under the Com-
mission’s regulations. 
‘‘(4) DEFENSE
CRITICAL
ELECTRIC
INFRA-
STRUCTURE.—The term ‘defense critical electric in-
frastructure’ means any electric infrastructure lo-
cated in the United States (including the territories) 
that serves a facility designated by the Secretary 
pursuant to subsection (c), but is not owned or oper-
ated by the owner or operator of such facility. 
‘‘(5) ELECTROMAGNETIC
PULSE.—The term 
‘electromagnetic pulse’ means 1 or more pulses of 
electromagnetic energy emitted by a device capable 
of disabling or disrupting operation of, or destroy-
ing, electronic devices or communications networks, 
including hardware, software, and data, by means of 
such a pulse. 
‘‘(6) GEOMAGNETIC
STORM.—The term ‘geo-
magnetic storm’ means a temporary disturbance of 
the Earth’s magnetic field resulting from solar activ-
ity. 
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‘‘(7) GRID SECURITY EMERGENCY.—The term 
‘grid security emergency’ means the occurrence or 
imminent danger of— 
‘‘(A)(i) a malicious act using electronic 
communication or an electromagnetic pulse, or 
a geomagnetic storm event, that could disrupt 
the operation of those electronic devices or com-
munications networks, including hardware, soft-
ware, and data, that are essential to the reli-
ability of critical electric infrastructure or of de-
fense critical electric infrastructure; and 
‘‘(ii) disruption of the operation of such 
devices or networks, with significant adverse ef-
fects on the reliability of critical electric infra-
structure or of defense critical electric infra-
structure, as a result of such act or event; or 
‘‘(B)(i) a direct physical attack on critical 
electric infrastructure or on defense critical 
electric infrastructure; and 
‘‘(ii) significant adverse effects on the reli-
ability of critical electric infrastructure or of de-
fense critical electric infrastructure as a result 
of such physical attack. 
‘‘(8) GRID
SECURITY
VULNERABILITY.—The 
term ‘grid security vulnerability’ means a weakness 
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that, in the event of a malicious act using an electro-
magnetic pulse, would pose a substantial risk of dis-
ruption to the operation of those electrical or elec-
tronic devices or communications networks, includ-
ing hardware, software, and data, that are essential 
to the reliability of the bulk-power system. 
‘‘(9) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Energy. 
‘‘(b) AUTHORITY TO ADDRESS GRID SECURITY 
EMERGENCY.— 
‘‘(1) AUTHORITY.—Whenever the President 
issues and provides to the Secretary a written direc-
tive or determination identifying a grid security 
emergency, the Secretary may, with or without no-
tice, hearing, or report, issue such orders for emer-
gency measures as are necessary in the judgment of 
the Secretary to protect or restore the reliability of 
critical electric infrastructure or of defense critical 
electric infrastructure during such emergency. As 
soon as practicable but not later than 180 days after 
the date of enactment of this section, the Secretary 
shall, after notice and opportunity for comment, es-
tablish rules of procedure that ensure that such au-
thority can be exercised expeditiously. 
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‘‘(2) NOTIFICATION OF CONGRESS.—Whenever 
the President issues and provides to the Secretary a 
written directive or determination under paragraph 
(1), the President shall promptly notify congres-
sional committees of relevant jurisdiction, including 
the Committee on Energy and Commerce of the 
House of Representatives and the Committee on En-
ergy and Natural Resources of the Senate, of the 
contents of, and justification for, such directive or 
determination. 
‘‘(3) CONSULTATION.—Before issuing an order 
for emergency measures under paragraph (1), the 
Secretary shall, to the extent practicable in light of 
the nature of the grid security emergency and the 
urgency of the need for action, consult with appro-
priate governmental authorities in Canada and Mex-
ico, entities described in paragraph (4), the Elec-
tricity Sub-sector Coordinating Council, the Commis-
sion, and other appropriate Federal agencies regard-
ing implementation of such emergency measures. 
‘‘(4) APPLICATION.—An order for emergency 
measures under this subsection may apply to— 
‘‘(A) the Electric Reliability Organization; 
‘‘(B) a regional entity; or 
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‘‘(C) any owner, user, or operator of crit-
ical electric infrastructure or of defense critical 
electric infrastructure within the United States. 
‘‘(5) EXPIRATION AND REISSUANCE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), an order for emergency 
measures issued under paragraph (1) shall ex-
pire no later than 15 days after its issuance. 
‘‘(B) EXTENSIONS.—The Secretary may 
reissue an order for emergency measures issued 
under paragraph (1) for subsequent periods, 
not to exceed 15 days for each such period, pro-
vided that the President, for each such period, 
issues and provides to the Secretary a written 
directive or determination that the grid security 
emergency identified under paragraph (1) con-
tinues to exist or that the emergency measure 
continues to be required. 
‘‘(6) COST RECOVERY.— 
‘‘(A) CRITICAL
ELECTRIC
INFRASTRUC-
TURE.—If the Commission determines that 
owners, operators, or users of critical electric 
infrastructure have incurred substantial costs to 
comply with an order for emergency measures 
issued under this subsection and that such costs 
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were prudently incurred and cannot reasonably 
be recovered through regulated rates or market 
prices for the electric energy or services sold by 
such owners, operators, or users, the Commis-
sion shall, consistent with the requirements of 
section 205, after notice and an opportunity for 
comment, establish a mechanism that permits 
such owners, operators, or users to recover such 
costs. 
‘‘(B) DEFENSE CRITICAL ELECTRIC INFRA-
STRUCTURE.—To the extent the owner or oper-
ator of defense critical electric infrastructure is 
required to take emergency measures pursuant 
to an order issued under this subsection, the 
owners or operators of a critical defense facility 
or facilities designated by the Secretary pursu-
ant to subsection (c) that rely upon such infra-
structure shall bear the full incremental costs of 
the measures. 
‘‘(7) TEMPORARY ACCESS TO CLASSIFIED IN-
FORMATION.—The Secretary, and other appropriate 
Federal agencies, shall, to the extent practicable and 
consistent with their obligations to protect classified 
information, provide temporary access to classified 
information related to a grid security emergency for 
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which emergency measures are issued under para-
graph (1) to key personnel of any entity subject to 
such emergency measures to enable optimum com-
munication between the entity and the Secretary and 
other appropriate Federal agencies regarding the 
grid security emergency. 
‘‘(c) DESIGNATION OF CRITICAL DEFENSE FACILI-
TIES.—Not later than 180 days after the date of enact-
ment of this section, the Secretary, in consultation with 
other appropriate Federal agencies and appropriate own-
ers, users, or operators of infrastructure that may be de-
fense critical electric infrastructure, shall identify and des-
ignate facilities located in the United States (including the 
territories) that are— 
‘‘(1) critical to the defense of the United States; 
and 
‘‘(2) vulnerable to a disruption of the supply of 
electric energy provided to such facility by an exter-
nal provider. 
The Secretary may, in consultation with appropriate Fed-
eral agencies and appropriate owners, users, or operators 
of defense critical electric infrastructure, periodically re-
vise the list of designated facilities as necessary. 
‘‘(d) PROTECTION AND SHARING OF CRITICAL ELEC-
TRIC INFRASTRUCTURE INFORMATION.— 
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‘‘(1) PROTECTION OF CRITICAL ELECTRIC IN-
FRASTRUCTURE INFORMATION.—Critical electric in-
frastructure information— 
‘‘(A) shall be exempt from disclosure under 
section 552(b)(3) of title 5, United States Code; 
and 
‘‘(B) shall not be made available by any 
Federal, State, political subdivision or tribal au-
thority pursuant to any Federal, State, political 
subdivision or tribal law requiring public disclo-
sure of information or records. 
‘‘(2) DESIGNATION AND SHARING OF CRITICAL 
ELECTRIC
INFRASTRUCTURE
INFORMATION.—Not 
later than one year after the date of enactment of 
this section, the Commission, in consultation with 
the Secretary of Energy, shall promulgate such reg-
ulations and issue such orders as necessary to— 
‘‘(A) designate information as critical elec-
tric infrastructure information; 
‘‘(B) prohibit the unauthorized disclosure 
of critical electric infrastructure information; 
‘‘(C) ensure there are appropriate sanc-
tions in place for Commissioners, officers, em-
ployees, or agents of the Commission who 
knowingly and willfully disclose critical electric 
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infrastructure information in a manner that is 
not authorized under this section; and 
‘‘(D) taking into account standards of the 
Electric Reliability Organization, facilitate vol-
untary sharing of critical electric infrastructure 
information with, between, and by— 
‘‘(i) Federal, State, political subdivi-
sion, and tribal authorities; 
‘‘(ii) the Electric Reliability Organiza-
tion; 
‘‘(iii) regional entities; 
‘‘(iv) information sharing and analysis 
centers established pursuant to Presi-
dential Decision Directive 63; 
‘‘(v) owners, operators, and users of 
critical electric infrastructure in the United 
States; and 
‘‘(vi) other entities determined appro-
priate by the Commission. 
‘‘(3) CONSIDERATIONS.—In promulgating regu-
lations and issuing orders under paragraph (2), the 
Commission shall take into consideration the role of 
State commissions in reviewing the prudence and 
cost of investments, determining the rates and terms 
of conditions for electric services, and ensuring the 
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safety and reliability of the bulk-power system and 
distribution facilities within their respective jurisdic-
tions. 
‘‘(4) PROTOCOLS.—The Commission shall, in 
consultation with Canadian and Mexican authorities, 
develop protocols for the voluntary sharing of critical 
electric infrastructure information with Canadian 
and Mexican authorities and owners, operators, and 
users of the bulk-power system outside the United 
States. 
‘‘(5) NO
REQUIRED
SHARING
OF
INFORMA-
TION.—Nothing in this section shall require a person 
or entity in possession of critical electric infrastruc-
ture information to share such information with 
Federal, State, political subdivision, or tribal au-
thorities, or any other person or entity. 
‘‘(6) SUBMISSION
OF
INFORMATION
TO
CON-
GRESS.—Nothing in this section shall permit or au-
thorize the withholding of information from Con-
gress, any committee or subcommittee thereof, or 
the Comptroller General. 
‘‘(7) DISCLOSURE
OF
PROTECTED
INFORMA-
TION.—In implementing this section, the Commis-
sion shall segregate critical electric infrastructure in-
formation or information that reasonably could be 
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expected to lead to the disclosure of the critical elec-
tric infrastructure information within documents and 
electronic communications, wherever feasible, to fa-
cilitate disclosure of information that is not des-
ignated as critical electric infrastructure informa-
tion. 
‘‘(8) DURATION
OF
DESIGNATION.—Informa-
tion may not be designated as critical electric infra-
structure information for longer than 5 years, unless 
specifically re-designated by the Commission. 
‘‘(9) REMOVAL OF DESIGNATION.—The Com-
mission shall remove the designation of critical elec-
tric infrastructure information, in whole or in part, 
from a document or electronic communication if the 
Commission determines that the unauthorized disclo-
sure of such information could no longer be used to 
impair the security or reliability of the bulk-power 
system or distribution facilities. 
‘‘(10) JUDICIAL REVIEW OF DESIGNATIONS.— 
Notwithstanding section 313(b), any determination 
by the Commission concerning the designation of 
critical electric infrastructure information under this 
subsection shall be subject to review under chapter 
7 of title 5, United States Code, except that such re-
view shall be brought in the district court of the 
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United States in the district in which the complain-
ant resides, or has his principal place of business, or 
in the District of Columbia. In such a case the court 
shall examine in camera the contents of documents 
or electronic communications that are the subject of 
the determination under review to determine wheth-
er such documents or any part thereof were improp-
erly designated or not designated as critical electric 
infrastructure information. 
‘‘(e) MEASURES
TO
ADDRESS
GRID
SECURITY 
VULNERABILITIES.— 
‘‘(1) COMMISSION AUTHORITY.— 
‘‘(A) RELIABILITY
STANDARDS.—If the 
Commission, in consultation with appropriate 
Federal agencies, identifies a grid security vul-
nerability that the Commission determines has 
not adequately been addressed through a reli-
ability standard developed and approved under 
section 215, the Commission shall, after notice 
and opportunity for comment and after con-
sultation with the Secretary, other appropriate 
Federal agencies, and appropriate governmental 
authorities in Canada and Mexico, issue an 
order directing the Electric Reliability Organi-
zation to submit to the Commission for ap-
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proval under section 215, not later than 30 
days after the issuance of such order, a reli-
ability standard requiring implementation, by 
any owner, operator, or user of the bulk-power 
system in the United States, of measures to 
protect the bulk-power system against such vul-
nerability. Any such standard shall include a 
protection plan, including automated hardware- 
based solutions. The Commission shall approve 
a reliability standard submitted pursuant to 
this subparagraph, unless the Commission de-
termines that such reliability standard does not 
adequately protect against such vulnerability or 
otherwise does not satisfy the requirements of 
section 215. 
‘‘(B) MEASURES TO ADDRESS GRID SECU-
RITY
VULNERABILITIES.—If the Commission, 
after notice and opportunity for comment and 
after consultation with the Secretary, other ap-
propriate Federal agencies, and appropriate 
governmental authorities in Canada and Mex-
ico, determines that the reliability standard 
submitted by the Electric Reliability Organiza-
tion to address a grid security vulnerability 
identified under subparagraph (A) does not 
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adequately protect the bulk-power system 
against such vulnerability, the Commission shall 
promulgate a rule or issue an order requiring 
implementation, by any owner, operator, or user 
of the bulk-power system in the United States, 
of measures to protect the bulk-power system 
against such vulnerability. Any such rule or 
order shall include a protection plan, including 
automated hardware-based solutions. Before 
promulgating a rule or issuing an order under 
this subparagraph, the Commission shall, to the 
extent practicable in light of the urgency of the 
need for action to address the grid security vul-
nerability, request and consider recommenda-
tions from the Electric Reliability Organization 
regarding such rule or order. The Commission 
may establish an appropriate deadline for the 
submission of such recommendations. 
‘‘(2) RESCISSION.—The Commission shall ap-
prove a reliability standard developed under section 
215 that addresses a grid security vulnerability that 
is the subject of a rule or order under paragraph 
(1)(B), unless the Commission determines that such 
reliability standard does not adequately protect 
against such vulnerability or otherwise does not sat-
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isfy the requirements of section 215. Upon such ap-
proval, the Commission shall rescind the rule pro-
mulgated or order issued under paragraph (1)(B) 
addressing such vulnerability, effective upon the ef-
fective date of the newly approved reliability stand-
ard. 
‘‘(3) GEOMAGNETIC
STORMS
AND
ELECTRO-
MAGNETIC PULSE.—Not later than 6 months after 
the date of enactment of this section, the Commis-
sion shall, after notice and an opportunity for com-
ment and after consultation with the Secretary and 
other appropriate Federal agencies, issue an order 
directing the Electric Reliability Organization to 
submit to the Commission for approval under section 
215, not later than 6 months after the issuance of 
such order, reliability standards adequate to protect 
the bulk-power system from any reasonably foresee-
able geomagnetic storm or electromagnetic pulse 
event. The Commission’s order shall specify the na-
ture and magnitude of the reasonably foreseeable 
events against which such standards must protect. 
Such standards shall appropriately balance the risks 
to the bulk-power system associated with such 
events, including any regional variation in such 
risks, the costs of mitigating such risks, and the pri-
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orities and timing associated with implementation. If 
the Commission determines that the reliability 
standards submitted by the Electric Reliability Or-
ganization pursuant to this paragraph are inad-
equate, the Commission shall promulgate a rule or 
issue an order adequate to protect the bulk-power 
system from geomagnetic storms or electromagnetic 
pulse as required under paragraph (1)(B). 
‘‘(4) LARGE
TRANSFORMER
AVAILABILITY.— 
Not later than 1 year after the date of enactment 
of this section, the Commission shall, after notice 
and an opportunity for comment and after consulta-
tion with the Secretary and other appropriate Fed-
eral agencies, issue an order directing the Electric 
Reliability Organization to submit to the Commis-
sion for approval under section 215, not later than 
1 year after the issuance of such order, reliability 
standards addressing availability of large trans-
formers. Such standards shall require entities that 
own or operate large transformers to ensure, individ-
ually or jointly, adequate availability of large trans-
formers to promptly restore the reliable operation of 
the bulk-power system in the event that any such 
transformer is destroyed or disabled as a result of 
a geomagnetic storm event or electromagnetic pulse 
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event. The Commission’s order shall specify the na-
ture and magnitude of the reasonably foreseeable 
events that shall provide the basis for such stand-
ards. Such standards shall— 
‘‘(A) provide entities subject to the stand-
ards with the option of meeting such standards 
individually or jointly; and 
‘‘(B) appropriately balance the risks asso-
ciated with a reasonably foreseeable event, in-
cluding any regional variation in such risks, and 
the costs of ensuring adequate availability of 
spare transformers. 
‘‘(5) CERTAIN
FEDERAL
ENTITIES.—For the 
11-year period commencing on the date of enact-
ment of this section, the Tennessee Valley Authority 
and the Bonneville Power Administration shall be 
exempt from any requirement under this subsection. 
‘‘(f) SECURITY CLEARANCES.—The Secretary shall 
facilitate and, to the extent practicable, expedite the acqui-
sition of adequate security clearances by key personnel of 
any entity subject to the requirements of this section, to 
enable optimum communication with Federal agencies re-
garding threats to the security of the critical electric infra-
structure. The Secretary, the Commission, and other ap-
propriate Federal agencies shall, to the extent practicable 
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and consistent with their obligations to protect classified 
and critical electric infrastructure information, share time-
ly actionable information regarding grid security with ap-
propriate key personnel of owners, operators, and users 
of the critical electric infrastructure. 
‘‘(g) CLARIFICATIONS OF LIABILITY.— 
‘‘(1) COMPLIANCE WITH OR VIOLATION OF THIS 
ACT.—Except as provided in paragraph (4), to the 
extent any action or omission taken by an entity 
that is necessary to comply with an order for emer-
gency measures issued under subsection (b)(1), in-
cluding any action or omission taken to voluntarily 
comply with such order, results in noncompliance 
with, or causes such entity not to comply with any 
rule, order, regulation, or provision of this Act, in-
cluding any reliability standard approved by the 
Commission pursuant to section 215, such action or 
omission shall not be considered a violation of such 
rule, order, regulation, or provision. 
‘‘(2) RELATION TO SECTION 202(c).—Except as 
provided in paragraph (4), an action or omission 
taken by an owner, operator, or user of critical elec-
tric infrastructure or of defense critical electric in-
frastructure to comply with an order for emergency 
measures issued under subsection (b)(1) shall be 
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treated as an action or omission taken to comply 
with an order issued under section 202(c) for pur-
poses of such section. 
‘‘(3) SHARING OR RECEIPT OF INFORMATION.— 
No cause of action shall lie or be maintained in any 
Federal or State court for the sharing or receipt of 
information under, and that is conducted in accord-
ance with, subsection (d). 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to require dis-
missal of a cause of action against an entity that, 
in the course of complying with an order for emer-
gency measures issued under subsection (b)(1) by 
taking an action or omission for which they would 
be liable but for paragraph (1) or (2), takes such ac-
tion or omission in a grossly negligent manner.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) JURISDICTION.—Section 201(b)(2) of the 
Federal Power Act (16 U.S.C. 824(b)(2)) is amend-
ed by inserting ‘‘215A,’’ after ‘‘215,’’ each place it 
appears. 
(2) PUBLIC
UTILITY.—Section 201(e) of the 
Federal Power Act (16 U.S.C. 824(e)) is amended 
by inserting ‘‘215A,’’ after ‘‘215,’’. 
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SEC. 1105. STRATEGIC TRANSFORMER RESERVE. 
(a) FINDING.—Congress finds that the storage of 
strategically located spare large power transformers and 
emergency mobile substations will reduce the vulnerability 
of the United States to multiple risks facing electric grid 
reliability, including physical attack, cyber attack, electro-
magnetic pulse, geomagnetic disturbances, severe weather, 
and seismic events. 
(b) DEFINITIONS.—In this section: 
(1) BULK-POWER
SYSTEM.—The term ‘‘bulk- 
power system’’ has the meaning given such term in 
section 215(a) of the Federal Power Act (16 U.S.C. 
824o(a)). 
(2) CRITICALLY
DAMAGED
LARGE
POWER 
TRANSFORMER.—The term ‘‘critically damaged large 
power transformer’’ means a large power trans-
former that— 
(A) has sustained extensive damage such 
that— 
(i) repair or refurbishment is not eco-
nomically viable; or 
(ii) the extensive time to repair or re-
furbish the large power transformer would 
create an extended period of instability in 
the bulk-power system; and 
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(B) prior to sustaining such damage, was 
part of the bulk-power system. 
(3) CRITICAL
ELECTRIC
INFRASTRUCTURE.— 
The term ‘‘critical electric infrastructure’’ has the 
meaning given that term in section 215A of the Fed-
eral Power Act. 
(4) ELECTRIC
RELIABILITY
ORGANIZATION.— 
The term ‘‘Electric Reliability Organization’’ has the 
meaning given such term in section 215(a) of the 
Federal Power Act (16 U.S.C. 824o(a)). 
(5) EMERGENCY
MOBILE
SUBSTATION.—The 
term ‘‘emergency mobile substation’’ means a mobile 
substation or mobile transformer that is— 
(A) assembled and permanently mounted 
on a trailer that is capable of highway travel 
and meets relevant Department of Transpor-
tation regulations; and 
(B) intended for express deployment and 
capable of being rapidly placed into service. 
(6) LARGE POWER TRANSFORMER.—The term 
‘‘large power transformer’’ means a power trans-
former with a maximum nameplate rating of 100 
megavolt-amperes or higher, including related crit-
ical equipment, that is, or is intended to be, a part 
of the bulk-power system. 
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(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(8) SPARE LARGE POWER TRANSFORMER.—The 
term ‘‘spare large power transformer’’ means a large 
power transformer that is stored within the Stra-
tegic Transformer Reserve to be available to tempo-
rarily replace a critically damaged large power trans-
former. 
(c) STRATEGIC TRANSFORMER RESERVE PLAN.— 
(1) PLAN.—Not later than 1 year after the date 
of enactment of this Act, the Secretary, acting 
through the Office of Electricity Delivery and En-
ergy Reliability, shall, in consultation with the Fed-
eral Energy Regulatory Commission, the Electricity 
Sub-sector Coordinating Council, the Electric Reli-
ability Organization, and owners and operators of 
critical electric infrastructure and defense and mili-
tary installations, prepare and submit to Congress a 
plan to establish a Strategic Transformer Reserve 
for the storage, in strategically located facilities, of 
spare large power transformers and emergency mo-
bile substations in sufficient numbers to temporarily 
replace critically damaged large power transformers 
and substations that are critical electric infrastruc-
ture or serve defense and military installations. 
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(2) INCLUSIONS.—The Strategic Transformer 
Reserve plan shall include a description of— 
(A) the appropriate number and type of 
spare large power transformers necessary to 
provide or restore sufficient resiliency to the 
bulk-power system, critical electric infrastruc-
ture, and defense and military installations to 
mitigate significant impacts to the electric grid 
resulting from— 
(i) physical attack; 
(ii) cyber attack; 
(iii) electromagnetic pulse attack; 
(iv) geomagnetic disturbances; 
(v) severe weather; or 
(vi) seismic events; 
(B) other critical electric grid equipment 
for which an inventory of spare equipment, in-
cluding emergency mobile substations, is nec-
essary to provide or restore sufficient resiliency 
to the bulk-power system, critical electric infra-
structure, and defense and military installa-
tions; 
(C) the degree to which utility sector ac-
tions or initiatives, including individual utility 
ownership of spare equipment, joint ownership 
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of spare equipment inventory, sharing agree-
ments, or other spare equipment reserves or ar-
rangements, satisfy the needs identified under 
subparagraphs (A) and (B); 
(D) the potential locations for, and feasi-
bility and appropriate number of, strategic stor-
age locations for reserve equipment, including 
consideration of— 
(i) the physical security of such loca-
tions; 
(ii) the protection of the confiden-
tiality of such locations; and 
(iii) the proximity of such locations to 
sites of potentially critically damaged large 
power transformers and substations that 
are critical electric infrastructure or serve 
defense and military installations, so as to 
enable efficient delivery of equipment to 
such sites; 
(E) the necessary degree of flexibility of 
spare large power transformers to be included 
in the Strategic Transformer Reserve to con-
form to different substation configurations, in-
cluding consideration of transformer— 
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(i) power and voltage rating for each 
winding; 
(ii) overload requirements; 
(iii) impedance between windings; 
(iv) configuration of windings; and 
(v) tap requirements; 
(F) an estimate of the direct cost of the 
Strategic Transformer Reserve, as proposed, in-
cluding— 
(i) the cost of storage facilities; 
(ii) the cost of the equipment; and 
(iii) management, maintenance, and 
operation costs; 
(G) the funding options available to estab-
lish, stock, manage, and maintain the Strategic 
Transformer Reserve, including consideration of 
fees on owners and operators of bulk-power sys-
tem facilities, critical electric infrastructure, 
and defense and military installations relying on 
the Strategic Transformer Reserve, use of Fed-
eral appropriations, and public-private cost- 
sharing options; 
(H) the ease and speed of transportation, 
installation, and energization of spare large 
power transformers to be included in the Stra-
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tegic Transformer Reserve, including consider-
ation of factors such as— 
(i) transformer transportation weight; 
(ii) transformer size; 
(iii) topology of critical substations; 
(iv) availability of appropriate trans-
former mounting pads; 
(v) flexibility of the spare large power 
transformers as described in subparagraph 
(E); and 
(vi) ability to rapidly transition a 
spare large power transformer from stor-
age to energization; 
(I) eligibility criteria for withdrawal of 
equipment from the Strategic Transformer Re-
serve; 
(J) the process by which owners or opera-
tors of critically damaged large power trans-
formers or substations that are critical electric 
infrastructure or serve defense and military in-
stallations may apply for a withdrawal from the 
Strategic Transformer Reserve; 
(K) the process by which equipment with-
drawn from the Strategic Transformer Reserve 
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is returned to the Strategic Transformer Re-
serve or is replaced; 
(L) possible fees to be paid by users of 
equipment withdrawn from the Strategic Trans-
former Reserve; 
(M) possible fees to be paid by owners and 
operators of large power transformers and sub-
stations that are critical electric infrastructure 
or serve defense and military installations to 
cover operating costs of the Strategic Trans-
former Reserve; 
(N) the domestic and international large 
power transformer supply chain; 
(O) the potential reliability, cost, and oper-
ational benefits of including emergency mobile 
substations in any Strategic Transformer Re-
serve established under this section; and 
(P) other considerations for designing, con-
structing, stocking, funding, and managing the 
Strategic Transformer Reserve. 
(d) ESTABLISHMENT.—The Secretary may establish 
a Strategic Transformer Reserve in accordance with the 
plan prepared pursuant to subsection (c) after the date 
that is 6 months after the date on which such plan is sub-
mitted to Congress. 
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(e) DISCLOSURE OF INFORMATION.—Any informa-
tion included in the Strategic Transformer Reserve plan, 
or shared in the preparation and development of such 
plan, the disclosure of which the agency reasonably fore-
sees would cause harm to critical electric infrastructure, 
shall be deemed to be critical electric infrastructure infor-
mation for purposes of section 215A(d) of the Federal 
Power Act. 
SEC. 1106. CYBER SENSE. 
(a) IN GENERAL.—The Secretary of Energy shall es-
tablish a voluntary Cyber Sense program to identify and 
promote cyber-secure products intended for use in the 
bulk-power system, as defined in section 215(a) of the 
Federal Power Act (16 U.S.C. 824o(a)). 
(b) PROGRAM REQUIREMENTS.—In carrying out sub-
section (a), the Secretary of Energy shall— 
(1) establish a Cyber Sense testing process to 
identify products and technologies intended for use 
in the bulk-power system, including products relat-
ing to industrial control systems, such as supervisory 
control and data acquisition systems; 
(2) for products tested and identified under the 
Cyber Sense program, establish and maintain cyber-
security vulnerability reporting processes and a re-
lated database; 
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(3) promulgate regulations regarding vulner-
ability reporting processes for products tested and 
identified under the Cyber Sense program; 
(4) provide technical assistance to utilities, 
product manufacturers, and other electric sector 
stakeholders to develop solutions to mitigate identi-
fied vulnerabilities in products tested and identified 
under the Cyber Sense program; 
(5) biennially review products tested and identi-
fied 
under 
the 
Cyber 
Sense 
program 
for 
vulnerabilities and provide analysis with respect to 
how such products respond to and mitigate cyber 
threats; 
(6) develop procurement guidance for utilities 
for products tested and identified under the Cyber 
Sense program; 
(7) provide reasonable notice to the public, and 
solicit comments from the public, prior to estab-
lishing or revising the Cyber Sense testing process; 
(8) oversee Cyber Sense testing carried out by 
third parties; and 
(9) consider incentives to encourage the use in 
the bulk-power system of products tested and identi-
fied under the Cyber Sense program. 
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(c) DISCLOSURE
OF INFORMATION.—Any vulner-
ability reported pursuant to regulations promulgated 
under subsection (b)(3), the disclosure of which the agency 
reasonably foresees would cause harm to critical electric 
infrastructure (as defined in section 215A of the Federal 
Power Act), shall be deemed to be critical electric infra-
structure information for purposes of section 215A(d) of 
the Federal Power Act. 
(d) FEDERAL GOVERNMENT LIABILITY.—Consistent 
with other voluntary Federal Government certification 
programs, nothing in this section shall be construed to au-
thorize the commencement of an action against the United 
States Government with respect to the testing and identi-
fication of a product under the Cyber Sense program. 
SEC. 1107. STATE COVERAGE AND CONSIDERATION OF 
PURPA STANDARDS FOR ELECTRIC UTILI-
TIES. 
(a) STATE CONSIDERATION OF RESILIENCY AND AD-
VANCED ENERGY ANALYTICS TECHNOLOGIES AND RELI-
ABLE GENERATION.— 
(1) CONSIDERATION.—Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2621(d)) is amended by adding the following 
at the end: 
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‘‘(20) IMPROVING THE RESILIENCE OF ELEC-
TRIC INFRASTRUCTURE.— 
‘‘(A) IN
GENERAL.—Each electric utility 
shall develop a plan to use resiliency-related 
technologies, upgrades, measures, and other ap-
proaches designed to improve the resilience of 
electric infrastructure, mitigate power outages, 
continue delivery of vital services, and maintain 
the flow of power to facilities critical to public 
health, safety, and welfare, to the extent prac-
ticable using the most current data, metrics, 
and frameworks related to current and future 
threats, including physical and cyber attacks, 
electromagnetic pulse attacks, geomagnetic dis-
turbances, seismic events, and severe weather 
and other environmental stressors. 
‘‘(B) 
RESILIENCY-RELATED
TECH-
NOLOGIES.—For purposes of this paragraph, 
examples of resiliency-related technologies, up-
grades, measures, and other approaches in-
clude— 
‘‘(i) hardening, or other enhanced pro-
tection, of utility poles, wiring, cabling, 
and other distribution components, facili-
ties, or structures; 
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‘‘(ii) advanced grid technologies capa-
ble of isolating or repairing problems re-
motely, such as advanced metering infra-
structure, high-tech sensors, grid moni-
toring and control systems, and remote re-
configuration and redundancy systems; 
‘‘(iii) cybersecurity products and com-
ponents; 
‘‘(iv) distributed generation, including 
back-up generation to power critical facili-
ties and essential services, and related inte-
gration components, such as advanced in-
verter technology; 
‘‘(v) microgrid systems, including hy-
brid microgrid systems for isolated commu-
nities; 
‘‘(vi) combined heat and power; 
‘‘(vii) waste heat resources; 
‘‘(viii) non-grid-scale energy storage 
technologies; 
‘‘(ix) wiring, cabling, and other dis-
tribution components, including submers-
ible distribution components, and enclo-
sures; 
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‘‘(x) electronically controlled reclosers 
and similar technologies for power restora-
tion, including emergency mobile sub-
stations, as defined in section 1105 of the 
North American Energy Security and In-
frastructure Act of 2015; 
‘‘(xi) advanced energy analytics tech-
nology, such as Internet-based and cloud- 
based computing solutions and subscription 
licensing models; 
‘‘(xii) measures that enhance resil-
ience through planning, preparation, re-
sponse, and recovery activities; 
‘‘(xiii) operational capabilities to en-
hance resilience through rapid response re-
covery; and 
‘‘(xiv) measures to ensure availability 
of key critical components through con-
tracts, cooperative agreements, stockpiling 
and prepositioning, or other measures. 
‘‘(C) RATE RECOVERY.—Each State regu-
latory authority (with respect to each electric 
utility for which it has ratemaking authority) 
shall consider authorizing each such electric 
utility to recover any capital, operating expendi-
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ture, or other costs of the electric utility related 
to the procurement, deployment, or use of resil-
iency-related technologies, including a reason-
able rate of return on the capital expenditures 
of the electric utility for the procurement, de-
ployment, or use of resiliency-related tech-
nologies. 
‘‘(21) PROMOTING INVESTMENTS IN ADVANCED 
ENERGY ANALYTICS TECHNOLOGY.— 
‘‘(A) IN
GENERAL.—Each electric utility 
shall develop and implement a plan for deploy-
ing advanced energy analytics technology. 
‘‘(B) RATE RECOVERY.—Each State regu-
latory authority (with respect to each electric 
utility for which it has ratemaking authority) 
shall consider confirming and clarifying, if nec-
essary, that each such electric utility is author-
ized to recover the costs of the electric utility 
relating to the procurement, deployment, or use 
of advanced energy analytics technology, includ-
ing a reasonable rate of return on all such costs 
incurred by the electric utility for the procure-
ment, deployment, or use of advanced energy 
analytics technology, provided such technology 
is used by the electric utility for purposes of re-
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alizing operational efficiencies, cost savings, en-
hanced energy management and customer en-
gagement, improvements in system reliability, 
safety, and cybersecurity, or other benefits to 
ratepayers. 
‘‘(C) 
ADVANCED
ENERGY
ANALYTICS 
TECHNOLOGY.—For purposes of this para-
graph, examples of advanced energy analytics 
technology include Internet-based and cloud- 
based computing solutions and subscription li-
censing models, including software as a service 
that uses cyber-physical systems to allow the 
correlation of data aggregated from appropriate 
data sources and smart grid sensor networks, 
employs analytics and machine learning, or em-
ploys other advanced computing solutions and 
models. 
‘‘(22) ASSURING ELECTRIC RELIABILITY WITH 
RELIABLE GENERATION.— 
‘‘(A) ASSURANCE
OF
ELECTRIC
RELI-
ABILITY.—Each electric utility shall adopt or 
modify policies to ensure that such electric util-
ity incorporates reliable generation into its inte-
grated resource plan to assure the availability 
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of electric energy over a 10-year planning pe-
riod. 
‘‘(B) RELIABLE
GENERATION.—For pur-
poses of this paragraph, ‘reliable generation’ 
means electric generation facilities with reli-
ability attributes that include— 
‘‘(i)(I) possession of adequate fuel on- 
site to enable operation for an extended pe-
riod of time; 
‘‘(II) the operational ability to gen-
erate electric energy from more than one 
source; or 
‘‘(III) fuel certainty, through firm 
contractual obligations (which may not be 
required to be for a period longer than one 
year), that ensures adequate fuel supply to 
enable operation, for an extended period of 
time, for the duration of an emergency or 
severe weather conditions; 
‘‘(ii) operational characteristics that 
enable the generation of electric energy for 
the duration of an emergency or severe 
weather conditions; and 
‘‘(iii) unless procured through other 
procurement mechanisms, essential reli-
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ability services, including frequency sup-
port and regulation services. 
‘‘(23) 
SUBSIDIZATION
OF
CUSTOMER-SIDE 
TECHNOLOGY.— 
‘‘(A) CONSIDERATION.—To the extent that 
a State regulatory authority may require or 
allow rates charged by any electric utility for 
which it has ratemaking authority to electric 
consumers that do not use a customer-side 
technology to include any cost, fee, or charge 
that directly or indirectly cross-subsidizes the 
deployment, construction, maintenance, or oper-
ation of that customer-side technology, such au-
thority shall evaluate whether subsidizing the 
deployment, construction, maintenance, or oper-
ation of a customer-side technology would— 
‘‘(i) result in benefits predominately 
enjoyed by only the users of that customer- 
side technology; 
‘‘(ii) shift costs of a customer-side 
technology to electricity consumers that do 
not use that customer-side technology, par-
ticularly where disparate economic or re-
source conditions exist among the elec-
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tricity consumers cross-subsidizing the cos-
tumer-side technology; 
‘‘(iii) negatively affect resource utiliza-
tion, fuel diversity, or grid security; 
‘‘(iv) provide any unfair competitive 
advantage to market the customer-side 
technology; and 
‘‘(v) be necessary to fulfill an obliga-
tion to serve electric consumers. 
‘‘(B) PUBLIC NOTICE.—Each State regu-
latory authority shall make available to the pub-
lic the evaluation completed under subpara-
graph (A) at least 90 days prior to any pro-
ceedings in which such authority considers the 
cross-subsidization of a customer-side tech-
nology. 
‘‘(C) CUSTOMER-SIDE TECHNOLOGY.—For 
purposes of this paragraph, the term ‘customer- 
side technology’ means a device connected to 
the electricity distribution system— 
‘‘(i) at, or on the customer side of, the 
meter; or 
‘‘(ii) that, if owned or operated by or 
on behalf of an electric utility, would other-
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wise be at, or on the customer side of, the 
meter.’’. 
(2) COMPLIANCE.— 
(A) TIME
LIMITATIONS.—Section 112(b) 
of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2622(b)) is amended by add-
ing at the end the following: 
‘‘(7)(A) Not later than 1 year after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
which it has ratemaking authority) and each non-
regulated electric utility, as applicable, shall com-
mence the consideration referred to in section 111, 
or set a hearing date for consideration, with respect 
to the standards established by paragraphs (20), 
(22), and (23) of section 111(d). 
‘‘(B) Not later than 2 years after the date of 
the enactment of this paragraph, each State regu-
latory authority (with respect to each electric utility 
for which it has ratemaking authority) and each 
nonregulated electric utility, as applicable, shall com-
plete the consideration, and shall make the deter-
mination, referred to in section 111 with respect to 
each standard established by paragraphs (20), (22), 
and (23) of section 111(d). 
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‘‘(8)(A) Not later than 6 months after the date 
of enactment of 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 commence the con-
sideration referred to in section 111, or set a hear-
ing date for consideration, with respect to the stand-
ard established by paragraph (21) of section 111(d). 
‘‘(B) Not later than 1 year after the date of en-
actment of this paragraph, each State regulatory au-
thority (with respect to each electric utility for which 
it has ratemaking authority) and each nonregulated 
electric utility shall complete the consideration, and 
shall make the determination, referred to in section 
111 with respect to the standard established by 
paragraph (21) of section 111(d).’’. 
(B) FAILURE TO COMPLY.—Section 112(c) 
of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2622(c)) is amended by add-
ing the following at the end: ‘‘In the case of the 
standards established by paragraphs (20) 
through (23) of section 111(d), the reference 
contained in this subsection to the date of en-
actment of this Act shall be deemed to be a ref-
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erence to the date of enactment of such para-
graphs.’’. 
(C) PRIOR STATE ACTIONS.—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 new subsection: 
‘‘(g) PRIOR STATE ACTIONS.—Subsections (b) and 
(c) of this section shall not apply to a standard established 
by paragraph (20), (21), (22), or (23) of section 111(d) 
in the case of any electric utility in a State if— 
‘‘(1) before the date of enactment of this sub-
section, 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 during the 3-year period ending 
on the date of enactment of this subsection; or 
‘‘(3) the State legislature has voted on the im-
plementation of the standard concerned (or a com-
parable standard) for such utility during the 3-year 
period ending on the date of enactment of this sub-
section.’’. 
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(b) COVERAGE FOR COMPETITIVE MARKETS.—Sec-
tion 102 of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2612) is amended by adding at the end 
the following: 
‘‘(d) COVERAGE FOR COMPETITIVE MARKETS.—The 
requirements of this title do not apply to the operations 
of an electric utility, or to proceedings respecting such op-
erations, to the extent that such operations or proceedings, 
or any portion thereof, relate to the competitive sale of 
retail electric energy that is unbundled or separated from 
the regulated provision or sale of distribution service.’’. 
SEC. 1108. RELIABILITY ANALYSIS FOR CERTAIN RULES 
THAT AFFECT ELECTRIC GENERATING FA-
CILITIES. 
(a) APPLICABILITY.—This section shall apply with 
respect to any proposed or final covered rule issued by 
a Federal agency for which compliance with the rule may 
impact an electric utility generating unit or units, includ-
ing by resulting in closure or interruption to operations 
of such a unit or units. 
(b) RELIABILITY ANALYSIS.— 
(1) ANALYSIS OF RULES.—The Federal Energy 
Regulatory Commission, in consultation with the 
Electric Reliability Organization, shall conduct an 
independent reliability analysis of a proposed or final 
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covered rule under this section to evaluate the antici-
pated effects of implementation and enforcement of 
the rule on— 
(A) electric reliability and resource ade-
quacy; 
(B) the electricity generation portfolio of 
the United States; 
(C) the operation of wholesale electricity 
markets; and 
(D) energy delivery and infrastructure, in-
cluding electric transmission facilities and nat-
ural gas pipelines. 
(2) RELEVANT INFORMATION.— 
(A) MATERIALS
FROM
FEDERAL
AGEN-
CIES.—A Federal agency shall provide to the 
Commission materials and information relevant 
to the analysis required under paragraph (1) 
for a rule, including relevant data, modeling, 
and resource adequacy and reliability assess-
ments, prepared or relied upon by such agency 
in developing the rule. 
(B) ANALYSES FROM OTHER ENTITIES.— 
The Electric Reliability Organization, regional 
entities, regional transmission organizations, 
independent system operators, and other reli-
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ability coordinators and planning authorities 
shall timely conduct analyses and provide such 
information as may be reasonably requested by 
the Commission. 
(3) NOTICE.—A Federal agency shall provide to 
the Commission notice of the issuance of any pro-
posed or final covered rule not later than 15 days 
after the date of such issuance. 
(c) PROPOSED RULES.—Not later than 150 days 
after the date of publication in the Federal Register of 
a proposed rule described in subsection (a), the Federal 
Energy Regulatory Commission shall make available to 
the public an analysis of the proposed rule conducted in 
accordance with subsection (b), and any relevant special 
assessment or seasonal or long-term reliability assessment 
completed by the Electric Reliability Organization. 
(d) FINAL RULES.— 
(1) INCLUSION.—A final rule described in sub-
section (a) shall include, if available at the time of 
issuance, a copy of the analysis conducted pursuant 
to subsection (c) of the rule as proposed. 
(2) ANALYSIS.—Not later than 120 days after 
the date of publication in the Federal Register of a 
final rule described in subsection (a), the Federal 
Energy Regulatory Commission shall make available 
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to the public an analysis of the final rule conducted 
in accordance with subsection (b), and any relevant 
special assessment or seasonal or long-term reli-
ability assessment completed by the Electric Reli-
ability Organization. 
(e) DEFINITIONS.—In this section: 
(1) ELECTRIC
RELIABILITY
ORGANIZATION.— 
The term ‘‘Electric Reliability Organization’’ has the 
meaning given to such term in section 215(a) of the 
Federal Power Act (16 U.S.C. 824o(a)). 
(2) FEDERAL
AGENCY.—The term ‘‘Federal 
agency’’ means an agency, as that term is defined 
in section 551 of title 5, United States Code. 
(3) COVERED RULE.—The term ‘‘covered rule’’ 
means a proposed or final rule that is estimated by 
the Federal agency issuing the rule, or the Director 
of the Office of Management and Budget, to result 
in 
an 
annual 
effect 
on 
the 
economy 
of 
$1,000,000,000 or more. 
SEC. 1109. INCREASED ACCOUNTABILITY WITH RESPECT 
TO CARBON CAPTURE, UTILIZATION, AND SE-
QUESTRATION PROJECTS. 
(a) DOE EVALUATION.— 
(1) IN GENERAL.—The Secretary of Energy (in 
this section referred to as the ‘‘Secretary’’) shall, in 
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accordance with this section, annually conduct an 
evaluation, and make recommendations, with respect 
to each project conducted by the Secretary for re-
search, development, demonstration, or deployment 
of carbon capture, utilization, and sequestration 
technologies (also known as carbon capture and stor-
age and utilization technologies). 
(2) SCOPE.—For purposes of this section, a 
project includes any contract, lease, cooperative 
agreement, or other similar transaction with a public 
agency or private organization or person, entered 
into or performed, or any payment made, by the 
Secretary for research, development, demonstration, 
or deployment of carbon capture, utilization, and se-
questration technologies. 
(b) REQUIREMENTS
FOR
EVALUATION.—In con-
ducting an evaluation of a project under this section, the 
Secretary shall— 
(1) examine if the project has made advance-
ments toward achieving any specific goal of the 
project with respect to a carbon capture, utilization, 
and sequestration technology; and 
(2) evaluate and determine if the project has 
made significant progress in advancing a carbon 
capture, utilization, and sequestration technology. 
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(A) issue a report on the evaluations con-
ducted and recommendations made during the 
previous year pursuant to this section; and 
(B) make each such report available on the 
Internet website of the Department of Energy. 
(2) REPORT.—Not later than 2 years after the 
date of enactment of this Act, and every 3 years 
thereafter, the Secretary shall submit to the Sub-
committee on Energy and Power of the Committee 
on Energy and Commerce and the Committee on 
Science, Space, and Technology of the House of 
Representatives and the Committee on Energy and 
Natural Resources and the Committee on Com-
merce, Science, and Transportation of the Senate a 
report on— 
(A) the evaluations conducted and rec-
ommendations made during the previous 3 
years pursuant to this section; and 
(B) the progress of the Department of En-
ergy in advancing carbon capture, utilization, 
and 
sequestration 
technologies, 
including 
progress in achieving the Department of Ener-
gy’s goal of having an array of advanced carbon 
capture and sequestration technologies ready by 
2020 for large-scale demonstration. 
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SEC. 1110. RELIABILITY AND PERFORMANCE ASSURANCE 
IN 
REGIONAL 
TRANSMISSION 
ORGANIZA-
TIONS. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.), as amended by section 1104, is further amended by 
adding after section 215A the following new section: 
‘‘SEC. 215B. RELIABILITY AND PERFORMANCE ASSURANCE 
IN 
REGIONAL 
TRANSMISSION 
ORGANIZA-
TIONS. 
‘‘(a) EXISTING CAPACITY MARKETS.— 
‘‘(1) ANALYSIS CONCERNING CAPACITY MARKET 
DESIGN.—Not later than 180 days after the date of 
enactment of this section, each Regional Trans-
mission Organization, and each Independent System 
Operator, that operates a capacity market, or a com-
parable market intended to ensure the procurement 
and availability of sufficient future electric energy 
resources, that is subject to the jurisdiction of the 
Commission, shall provide to the Commission an 
analysis of how the structure of such market meets 
the following criteria: 
‘‘(A) The structure of such market utilizes 
competitive market forces to the extent prac-
ticable in procuring capacity resources. 
‘‘(B) Consistent with subparagraph (A), 
the structure of such market includes resource- 
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neutral performance criteria that ensure the 
procurement of sufficient capacity from physical 
generation facilities that have reliability at-
tributes that include— 
‘‘(i)(I) possession of adequate fuel on- 
site to enable operation for an extended pe-
riod of time; 
‘‘(II) the operational ability to gen-
erate electric energy from more than one 
fuel source; or 
‘‘(III) fuel certainty, through firm 
contractual obligations, that ensures ade-
quate fuel supply to enable operation, for 
an extended period of time, for the dura-
tion of an emergency or severe weather 
conditions; 
‘‘(ii) operational characteristics that 
enable the generation of electric energy for 
the duration of an emergency or severe 
weather conditions; and 
‘‘(iii) unless procured through other 
markets or procurement mechanisms, es-
sential reliability services, including fre-
quency support and regulation services. 
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‘‘(2) COMMISSION EVALUATION AND REPORT.— 
Not later than 1 year after the date of enactment 
of this section, the Commission shall make publicly 
available, and submit to the Committee on Energy 
and Commerce in the House of Representatives and 
the Committee on Energy and Natural Resources in 
the Senate, a report containing— 
‘‘(A) evaluation of whether the structure of 
each market addressed in an analysis submitted 
pursuant to paragraph (1) meets the criteria 
under such paragraph, based on the analysis; 
and 
‘‘(B) to the extent a market so addressed 
does not meet such criteria, any recommenda-
tions with respect to the procurement of suffi-
cient capacity, as described in paragraph 
(1)(B). 
‘‘(b) COMMISSION EVALUATION AND REPORT FOR 
NEW SCHEDULES.— 
‘‘(1) INCLUSION OF ANALYSIS IN FILING.—Ex-
cept as provided in subsection (a)(2), whenever a 
Regional Transmission Organization or Independent 
System Operator files a new schedule under section 
205 to establish a market described in subsection 
(a)(1), or that substantially modifies the capacity 
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market design of a market described in subsection 
(a)(1), the Regional Transmission Organization or 
Independent System Operator shall include in any 
such filing the analysis required by subsection 
(a)(1). 
‘‘(2) EVALUATION
AND
REPORT.—Not later 
than 180 days of receiving an analysis under para-
graph (1), the Commission shall make publicly avail-
able, and submit to the Committee on Energy and 
Commerce in the House of Representatives and the 
Committee on Energy and Natural Resources in the 
Senate, a report containing— 
‘‘(A) an evaluation of whether the struc-
ture of the market addressed in the analysis 
meets the criteria under subsection (a)(1), 
based on the analysis; and 
‘‘(B) to the extent the market does not 
meet such criteria, any recommendations with 
respect to the procurement of sufficient capac-
ity, as described in subsection (a)(1)(B). 
‘‘(c) EFFECT ON EXISTING APPROVALS.—Nothing in 
this section shall be considered to— 
‘‘(1) require a modification of the Commission’s 
approval of the capacity market design approved 
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pursuant to docket numbers ER15–623–000, EL15– 
29–000, EL14–52–000, and ER14–2419–000; or 
‘‘(2) provide grounds for the Commission to 
grant rehearing or otherwise modify orders issued in 
those dockets.’’. 
SEC. 1111. ETHANE STORAGE STUDY. 
(a) IN GENERAL.—The Secretary of Energy and the 
Secretary of Commerce, in consultation with other rel-
evant agencies and stakeholders, shall conduct a study on 
the feasibility of establishing an ethane storage and dis-
tribution hub in the United States. 
(b) CONTENTS.—The study conducted under sub-
section (a) shall include— 
(1) an examination of— 
(A) potential locations; 
(B) economic feasibility; 
(C) economic benefits; 
(D) geological storage capacity capabilities; 
(E) above ground storage capabilities; 
(F) infrastructure needs; and 
(G) other markets and trading hubs, par-
ticularly related to ethane; and 
(2) identification of potential additional benefits 
to energy security. 
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(c) PUBLICATION OF RESULTS.—Not later than 2 
years after the date of enactment of this Act, the Secre-
taries of Energy and Commerce shall publish the results 
of the study conducted under subsection (a) on the 
websites of the Departments of Energy and Commerce, 
respectively, and shall submit such results to the Com-
mittee on Energy and Commerce of the House of Rep-
resentatives and the Committees on Energy and Natural 
Resources and Commerce, Science, and Transportation of 
the Senate. 
SEC. 1112. STATEMENT OF POLICY ON GRID MODERNIZA-
TION. 
It is the policy of the United States to promote and 
advance— 
(1) the modernization of the energy delivery in-
frastructure of the United States, and bolster the re-
liability, affordability, diversity, efficiency, security, 
and resiliency of domestic energy supplies, through 
advanced grid technologies; 
(2) the modernization of the electric grid to en-
able a robust multi-directional power flow that 
leverages centralized energy resources and distrib-
uted energy resources, enables robust retail trans-
actions, and facilitates the alignment of business and 
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regulatory models to achieve a grid that optimizes 
the entire electric delivery system; 
(3) relevant research and development in ad-
vanced grid technologies, including— 
(A) energy storage; 
(B) predictive tools and requisite real-time 
data to enable the dynamic optimization of grid 
operations; 
(C) power electronics, including smart in-
verters, that ease the challenge of intermittent 
renewable resources and distributed generation; 
(D) real-time data and situational aware-
ness tools and systems; and 
(E) tools to increase data security, physical 
security, and cybersecurity awareness and pro-
tection; 
(4) the leadership of the United States in basic 
and applied sciences to develop a systems approach 
to innovation and development of cyber-secure ad-
vanced grid technologies, architectures, and control 
paradigms capable of managing diverse supplies and 
loads; 
(5) the safeguarding of the critical energy deliv-
ery infrastructure of the United States and the en-
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hanced resilience of the infrastructure to all hazards, 
including— 
(A) severe weather events; 
(B) cyber and physical threats; and 
(C) other factors that affect energy deliv-
ery; 
(6) the coordination of goals, investments to op-
timize the grid, and other measures for energy effi-
ciency, advanced grid technologies, interoperability, 
and demand response-side management resources; 
(7) partnerships with States and the private 
sector— 
(A) to facilitate advanced grid capabilities 
and strategies; and 
(B) to provide technical assistance, tools, 
or other related information necessary to en-
hance grid integration, particularly in connec-
tion with the development at the State and local 
levels of strategic energy, energy surety and as-
surance, and emergency preparedness, response, 
and restoration planning; 
(8) the deployment of information and commu-
nications technologies at all levels of the electric sys-
tem; 
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(9) opportunities to provide consumers with 
timely information and advanced control options; 
(10) sophisticated or advanced control options 
to integrate distributed energy resources and associ-
ated ancillary services; 
(11) open-source communications, database ar-
chitectures, and common information model stand-
ards, guidelines, and protocols that enable interoper-
ability to maximize efficiency gains and associated 
benefits among— 
(A) the grid; 
(B) energy and building management sys-
tems; and 
(C) residential, commercial, and industrial 
equipment; 
(12) private sector investment in the energy de-
livery infrastructure of the United States through 
targeted demonstration and validation of advanced 
grid technologies; and 
(13) establishment of common valuation meth-
ods and tools for cost-benefit analysis of grid inte-
gration paradigms. 
SEC. 1113. GRID RESILIENCE REPORT. 
Not later than 120 days after the date of enactment 
of this Act, the Secretary of Energy shall submit to the 
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Congress a report on methods to increase electric grid re-
silience with respect to all threats, including cyber attacks, 
vandalism, terrorism, and severe weather. 
SEC. 1114. GAO REPORT ON IMPROVING NATIONAL RE-
SPONSE CENTER. 
The Comptroller General of the United States shall 
conduct a study of ways in which the capabilities of the 
National Response Center could be improved. 
SEC. 1115. DESIGNATION OF NATIONAL ENERGY SECURITY 
CORRIDORS ON FEDERAL LANDS. 
(a) IN GENERAL.—Section 28 of the Mineral Leasing 
Act (30 U.S.C. 185) is amended as follows: 
(1) In subsection (b)— 
(A) by striking ‘‘(b)(1) For the purposes of 
this section ‘Federal lands’ means’’ and insert-
ing the following: 
‘‘(b)(1) For the purposes of this section ‘Federal 
lands’— 
‘‘(A) except as provided in subparagraph (B), 
means’’; 
(B) by striking the period at the end of 
paragraph (1) and inserting ‘‘; and’’ and by 
adding at the end of paragraph (1) the fol-
lowing: 
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‘‘(B) for purposes of granting an application for 
a natural gas pipeline right-of-way, means all lands 
owned by the United States except— 
‘‘(i) such lands held in trust for an Indian 
or Indian tribe; and 
‘‘(ii) lands on the Outer Continental 
Shelf.’’. 
(2) By redesignating subsection (b), as so 
amended, as subsection (z), and transferring such 
subsection to appear after subsection (y) of that sec-
tion. 
(3) By inserting after subsection (a) the fol-
lowing: 
‘‘(b) NATIONAL ENERGY SECURITY CORRIDORS.— 
‘‘(1) DESIGNATION.—In addition to other au-
thorities under this section, the Secretary shall— 
‘‘(A) identify and designate suitable Fed-
eral lands as National Energy Security Cor-
ridors (in this subsection referred to as a ‘Cor-
ridor’), which shall be used for construction, op-
eration, and maintenance of natural gas trans-
mission facilities; and 
‘‘(B) incorporate such Corridors upon des-
ignation into the relevant agency land use and 
resource management plans or equivalent plans. 
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‘‘(2) CONSIDERATIONS.—In evaluating Federal 
lands for designation as a National Energy Security 
Corridor, the Secretary shall— 
‘‘(A) employ the principle of multiple use 
to ensure route decisions balance national en-
ergy security needs with existing land use prin-
ciples; 
‘‘(B) seek input from other Federal coun-
terparts, State, local, and tribal governments, 
and affected utility and pipeline industries to 
determine the best suitable, most cost-effective, 
and commercially viable acreage for natural gas 
transmission facilities; 
‘‘(C) focus on transmission routes that im-
prove domestic energy security through increas-
ing reliability, relieving congestion, reducing 
natural gas prices, and meeting growing de-
mand for natural gas; and 
‘‘(D) take into account technological inno-
vations that reduce the need for surface dis-
turbance. 
‘‘(3) PROCEDURES.—The Secretary shall estab-
lish procedures to expedite and approve applications 
for rights-of-way for natural gas pipelines across 
National Energy Security Corridors, that— 
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‘‘(A) ensure a transparent process for re-
view of applications for rights-of-way on such 
corridors; 
‘‘(B) require an approval time of not more 
than 1 year after the date of receipt of an ap-
plication for a right-of-way; and 
‘‘(C) require, upon receipt of such an ap-
plication, notice to the applicant of a predict-
able timeline for consideration of the applica-
tion, that clearly delineates important mile-
stones in the process of such consideration. 
‘‘(4) STATE INPUT.— 
‘‘(A) REQUESTS AUTHORIZED.—The Gov-
ernor of a State may submit requests to the 
Secretary of the Interior to designate Corridors 
on Federal land in that State. 
‘‘(B) CONSIDERATION
OF
REQUESTS.— 
After receiving such a request, the Secretary 
shall respond in writing, within 30 days— 
‘‘(i) acknowledging receipt of the re-
quest; and 
‘‘(ii) setting forth a timeline in which 
the Secretary shall grant, deny, or modify 
such request and state the reasons for 
doing so. 
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‘‘(5) SPATIAL DISTRIBUTION OF CORRIDORS.— 
In implementing this subsection, the Secretary shall 
coordinate with other Federal Departments to— 
‘‘(A) minimize the proliferation of duplica-
tive natural gas pipeline rights-of-way on Fed-
eral lands where feasible; 
‘‘(B) ensure Corridors can connect effec-
tively across Federal lands; and 
‘‘(C) utilize input from utility and pipeline 
industries submitting applications for rights-of- 
way to site corridors in economically feasible 
areas that reduce impacts, to the extent prac-
ticable, on local communities. 
‘‘(6) NOT
A
MAJOR
FEDERAL
ACTION.—Des-
ignation of a Corridor under this subsection, and in-
corporation of Corridors into agency plans under 
paragraph (1)(B), shall not be treated as a major 
Federal action for purpose of section 102 of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4332). 
‘‘(7) NO LIMIT ON NUMBER OR LENGTH OF 
CORRIDORS.—Nothing in this subsection limits the 
number or physical dimensions of Corridors that the 
Secretary may designate under this subsection. 
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‘‘(8) OTHER
AUTHORITY
NOT
AFFECTED.— 
Nothing in this subsection affects the authority of 
the Secretary to issue rights-of-way on Federal land 
that is not located in a Corridor designated under 
this subsection. 
‘‘(9) NEPA CLARIFICATION.—All applications 
for rights-of-way for natural gas transmission facili-
ties across Corridors designated under this sub-
section shall be subject to the environmental protec-
tions outlined in subsection (h).’’. 
(b) APPLICATIONS RECEIVED BEFORE DESIGNATION 
OF CORRIDORS.—Any application for a right-of-way under 
section 28 of the Mineral Leasing Act (30 U.S.C. 185) 
that is received by the Secretary of the Interior before des-
ignation of National Energy Security Corridors under the 
amendment made by subsection (a) of this section shall 
be reviewed and acted upon independently by the Sec-
retary without regard to the process for such designation. 
(c) DEADLINE.—Within 2 years after the date of the 
enactment of this Act, the Secretary of the Interior shall 
designate at least 10 National Energy Security Corridors 
under the amendment made by subsection (a) in States 
referred to in section 368(b) of the Energy Policy Act of 
2005 (42 U.S.C. 15926(b)). 
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SEC. 1116. VEGETATION MANAGEMENT, FACILITY INSPEC-
TION, AND OPERATION AND MAINTENANCE 
ON FEDERAL LANDS CONTAINING ELECTRIC 
TRANSMISSION AND DISTRIBUTION FACILI-
TIES. 
(a) IN GENERAL.—Title V of the Federal Land Pol-
icy and Management Act of 1976 (43 U.S.C. 1761 et seq.) 
is amended by adding at the end the following new section: 
‘‘SEC. 512. VEGETATION MANAGEMENT, FACILITY INSPEC-
TION, AND OPERATION AND MAINTENANCE 
RELATING TO ELECTRIC TRANSMISSION AND 
DISTRIBUTION FACILITY RIGHTS-OF-WAY. 
‘‘(a) GENERAL DIRECTION.—In order to enhance the 
reliability of the electric grid and reduce the threat of 
wildfires to and from electric transmission and distribu-
tion rights-of-way and related facilities and adjacent prop-
erty, the Secretary, with respect to public lands and other 
lands under the jurisdiction of the Secretary, and the Sec-
retary of Agriculture, with respect to National Forest Sys-
tem lands, shall provide direction to ensure that all exist-
ing and future rights-of-way, however established (includ-
ing by grant, special use authorization, and easement), for 
electric transmission and distribution facilities on such 
lands include provisions for utility vegetation manage-
ment, facility inspection, and operation and maintenance 
activities that, while consistent with applicable law— 
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‘‘(1) are developed in consultation with the 
holder of the right-of-way; 
‘‘(2) enable the owner or operator of an electric 
transmission and distribution facility to operate and 
maintain the facility in good working order and to 
comply with Federal, State, and local electric system 
reliability and fire safety requirements, including re-
liability standards established by the North Amer-
ican Electric Reliability Corporation and plans to 
meet such reliability standards; 
‘‘(3) minimize the need for case-by-case or an-
nual approvals for— 
‘‘(A) routine vegetation management, facil-
ity inspection, and operation and maintenance 
activities within existing electric transmission 
and distribution rights-of-way; and 
‘‘(B) utility vegetation management activi-
ties that are necessary to control hazard trees 
within or adjacent to electric transmission and 
distribution rights-of-way; and 
‘‘(4) when review is required, provide for expe-
dited review and approval of utility vegetation man-
agement, facility inspection, and operation and 
maintenance activities, especially activities requiring 
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prompt action to avoid an adverse impact on human 
safety or electric reliability to avoid fire hazards. 
‘‘(b) VEGETATION MANAGEMENT, FACILITY INSPEC-
TION, AND OPERATION AND MAINTENANCE PLANS.— 
‘‘(1) DEVELOPMENT
AND
SUBMISSION.—Con-
sistent with subsection (a), the Secretary and the 
Secretary of Agriculture shall provide owners and 
operators of electric transmission and distribution 
facilities located on lands described in such sub-
section with the option to develop and submit a 
vegetation management, facility inspection, and op-
eration and maintenance plan, that at each owner or 
operator’s discretion may cover some or all of the 
owner or operator’s electric transmission and dis-
tribution rights-of-way on Federal lands, for ap-
proval to the Secretary with jurisdiction over the 
lands. A plan under this paragraph shall enable the 
owner or operator of an electric transmission and 
distribution facility, at a minimum, to comply with 
applicable Federal, State, and local electric system 
reliability and fire safety requirements, as provided 
in subsection (a)(2). The Secretaries shall not have 
the authority to modify those requirements. 
‘‘(2) REVIEW AND APPROVAL PROCESS.—The 
Secretary and the Secretary of Agriculture shall 
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jointly develop a consolidated and coordinated proc-
ess for review and approval of— 
‘‘(A) vegetation management, facility in-
spection, and operation and maintenance plans 
submitted under paragraph (1) that— 
‘‘(i) assures prompt review and ap-
proval not to exceed 90 days; 
‘‘(ii) includes timelines and bench-
marks for agency comments on submitted 
plans and final approval of such plans; 
‘‘(iii) is consistent with applicable law; 
and 
‘‘(iv) minimizes the costs of the proc-
ess to the reviewing agency and the entity 
submitting the plans; and 
‘‘(B) amendments to the plans in a prompt 
manner if changed conditions necessitate a 
modification to a plan. 
‘‘(3) NOTIFICATION.—The review and approval 
process under paragraph (2) shall— 
‘‘(A) include notification by the agency of 
any changed conditions that warrant a modi-
fication to a plan; 
‘‘(B) provide an opportunity for the owner 
or operator to submit a proposed plan amend-
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ment to address directly the changed condition; 
and 
‘‘(C) allow the owner or operator to con-
tinue to implement those elements of the ap-
proved plan that do not directly and adversely 
affect the condition precipitating the need for 
modification. 
‘‘(4) CATEGORICAL EXCLUSION PROCESS.—The 
Secretary and the Secretary of Agriculture shall 
apply his or her categorical exclusion process under 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) to plans developed under this 
subsection on existing electric transmission and dis-
tribution rights-of-way under this subsection. 
‘‘(5) 
IMPLEMENTATION.—A 
plan 
approved 
under this subsection shall become part of the au-
thorization governing the covered right-of-way and 
hazard trees adjacent to the right-of-way. If a vege-
tation management plan is proposed for an existing 
electric transmission and distribution facility concur-
rent with the siting of a new electric transmission or 
distribution facility, necessary reviews shall be com-
pleted as part of the siting process or sooner. Once 
the plan is approved, the owner or operator shall 
provide the agency with only a notification of activi-
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ties anticipated to be undertaken in the coming year, 
a description of those activities, and certification 
that the activities are in accordance with the plan. 
‘‘(c) RESPONSE
TO EMERGENCY CONDITIONS.—If 
vegetation on Federal lands within, or hazard trees on 
Federal lands adjacent to, an electric transmission or dis-
tribution right-of-way granted by the Secretary or the Sec-
retary of Agriculture has contacted or is in imminent dan-
ger of contacting one or more electric transmission or dis-
tribution lines, the owner or operator of the electric trans-
mission or distribution lines— 
‘‘(1) may prune or remove the vegetation to 
avoid the disruption of electric service and risk of 
fire; and 
‘‘(2) shall notify the appropriate local agent of 
the relevant Secretary not later than 24 hours after 
such removal. 
‘‘(d) COMPLIANCE WITH APPLICABLE RELIABILITY 
AND SAFETY STANDARDS.—If vegetation on Federal 
lands within or adjacent to an electric transmission or dis-
tribution right-of-way under the jurisdiction of each Sec-
retary does not meet clearance requirements under stand-
ards established by the North American Electric Reli-
ability Corporation, or by State and local authorities, and 
the Secretary having jurisdiction over the lands has failed 
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to act to allow an electric transmission or distribution fa-
cility owner or operator to conduct vegetation manage-
ment activities within 3 business days after receiving a 
request to allow such activities, the owner or operator 
may, after notifying the Secretary, conduct such vegeta-
tion management activities to meet those clearance re-
quirements. 
‘‘(e) REPORTING REQUIREMENT.—The Secretary or 
Secretary of Agriculture shall report requests and actions 
made under subsections (c) and (d) annually on each Sec-
retary’s website. 
‘‘(f) LIABILITY.—An owner or operator of an electric 
transmission or distribution facility shall not be held liable 
for wildfire damage, loss, or injury, including the cost of 
fire suppression, if— 
‘‘(1) the Secretary or the Secretary of Agri-
culture fails to allow the owner or operator to oper-
ate consistently with an approved vegetation man-
agement, facility inspection, and operation and 
maintenance plan on Federal lands under the rel-
evant Secretary’s jurisdiction within or adjacent to 
a right-of-way to comply with Federal, State, or 
local electric system reliability and fire safety stand-
ards, including standards established by the North 
American Electric Reliability Corporation; or 
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‘‘(2) the Secretary or the Secretary of Agri-
culture fails to allow the owner or operator of the 
electric transmission or distribution facility to per-
form appropriate vegetation management activities 
in response to an identified hazard tree, or a tree in 
imminent danger of contacting the owner’s or opera-
tor’s electric transmission or distribution facility. 
‘‘(g) TRAINING
AND GUIDANCE.—In consultation 
with the electric utility industry, the Secretary and the 
Secretary of Agriculture are encouraged to develop a pro-
gram to train personnel of the Department of the Interior 
and the Forest Service involved in vegetation management 
decisions relating to electric transmission and distribution 
facilities to ensure that such personnel— 
‘‘(1) understand electric system reliability and 
fire safety requirements, including reliability stand-
ards established by the North American Electric Re-
liability Corporation; 
‘‘(2) assist owners and operators of electric 
transmission and distribution facilities to comply 
with applicable electric reliability and fire safety re-
quirements; and 
‘‘(3) encourage and assist willing owners and 
operators of electric transmission and distribution 
facilities to incorporate on a voluntary basis vegeta-
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tion management practices to enhance habitats and 
forage for pollinators and for other wildlife so long 
as the practices are compatible with the integrated 
vegetation management practices necessary for reli-
ability and safety. 
‘‘(h) IMPLEMENTATION.—The Secretary and the Sec-
retary of Agriculture shall— 
‘‘(1) not later than one year after the date of 
the enactment of this section, propose regulations, or 
amended existing regulations, to implement this sec-
tion; and 
‘‘(2) not later than two years after the date of 
the enactment of this section, finalize regulations, or 
amended existing regulations, to implement this sec-
tion. 
‘‘(i) EXISTING VEGETATION MANAGEMENT, FACIL-
ITY INSPECTION, AND OPERATION AND MAINTENANCE 
PLANS.—Nothing in this section requires an owner or op-
erator to develop and submit a vegetation management, 
facility inspection, and operation and maintenance plan if 
one has already been approved by the Secretary or Sec-
retary of Agriculture before the date of the enactment of 
this section. 
‘‘(j) DEFINITIONS.—In this section: 
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‘‘(1) HAZARD TREE.—The term ‘hazard tree’ 
means any tree inside the right-of-way or located 
outside the right-of-way that has been found by the 
either the owner or operator of an electric trans-
mission or distribution facility, or the Secretary or 
the Secretary of Agriculture, to be likely to fail and 
cause a high risk of injury, damage, or disruption 
within 10 feet of an electric power line or related 
structure if it fell. 
‘‘(2) 
OWNER
OR
OPERATOR.—The 
terms 
‘owner’ and ‘operator’ include contractors or other 
agents engaged by the owner or operator of an elec-
tric transmission and distribution facility. 
‘‘(3) VEGETATION MANAGEMENT, FACILITY IN-
SPECTION, 
AND
OPERATION
AND
MAINTENANCE 
PLAN.—The term ‘vegetation management, facility 
inspection, and operation and maintenance plan’ 
means a plan that— 
‘‘(A) is prepared by the owner or operator 
of one or more electric transmission or distribu-
tion facilities to cover one or more electric 
transmission and distribution rights-of-way; and 
‘‘(B) provides for the long-term, cost-effec-
tive, efficient, and timely management of facili-
ties and vegetation within the width of the 
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right-of-way and adjacent Federal lands to en-
hance electric reliability, promote public safety, 
and avoid fire hazards.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for the Federal Land Policy and Management Act of 1976 
(43 U.S.C. 1761 et seq.), is amended by inserting after 
the item relating to section 511 the following new item: 
‘‘Sec. 512. Vegetation management, facility inspection, and operation and main-
tenance relating to electric transmission and distribution facil-
ity rights-of-way.’’. 
Subtitle B—Hydropower 
Regulatory Modernization 
SEC. 1201. PROTECTION OF PRIVATE PROPERTY RIGHTS IN 
HYDROPOWER LICENSING. 
(a) LICENCES.—Section 4(e) of the Federal Power 
Act (16 U.S.C. 797(e)) is amended— 
(1) by striking ‘‘and’’ after ‘‘recreational oppor-
tunities,’’; and 
(2) by inserting ‘‘, and minimizing infringement 
on the useful exercise and enjoyment of property 
rights held by nonlicensees’’ after ‘‘aspects of envi-
ronmental quality’’. 
(b) PRIVATE LANDOWNERSHIP.—Section 10 of the 
Federal Power Act (16 U.S.C. 803) is amended— 
(1) in subsection (a)(1), by inserting ‘‘, includ-
ing minimizing infringement on the useful exercise 
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and enjoyment of property rights held by non-
licensees’’ after ‘‘section 4(e)’’; and 
(2) by adding at the end the following: 
‘‘(k) PRIVATE LANDOWNERSHIP.—In developing any 
recreational resource within the project boundary, the li-
censee shall consider private landownership as a means to 
encourage and facilitate— 
‘‘(1) private investment; and 
‘‘(2) increased tourism and recreational use.’’. 
SEC. 1202. EXTENSION OF TIME FOR FERC PROJECT IN-
VOLVING W. KERR SCOTT DAM. 
(a) IN GENERAL.—Notwithstanding the time period 
specified in section 13 of the Federal Power Act (16 
U.S.C. 806) that would otherwise apply to the Federal En-
ergy Regulatory Commission project numbered 12642, the 
Commission may, at the request of the licensee for the 
project, and after reasonable notice, in accordance with 
the good faith, due diligence, and public interest require-
ments of that section and the Commission’s procedures 
under that section, extend the time period during which 
the licensee is required to commence the construction of 
the project for up to 3 consecutive 2-year periods from 
the date of the expiration of the extension originally issued 
by the Commission. 
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(b) REINSTATEMENT OF EXPIRED LICENSE.—If the 
period required for commencement of construction of the 
project described in subsection (a) has expired prior to the 
date of the enactment of this Act, the Commission may 
reinstate the license effective as of the date of its expira-
tion and the first extension authorized under subsection 
(a) shall take effect on the date of such expiration. 
SEC. 1203. HYDROPOWER LICENSING AND PROCESS IM-
PROVEMENTS. 
Part I of the Federal Power Act (16 U.S.C. 792 et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 34. HYDROPOWER LICENSING AND PROCESS IM-
PROVEMENTS. 
‘‘(a) DEFINITION.—In this section, the term ‘Federal 
authorization’— 
‘‘(1) means any authorization required under 
Federal law with respect to an application for a li-
cense, license amendment, or exemption under this 
part; and 
‘‘(2) includes any permits, special use author-
izations, certifications, opinions, or other approvals 
as may be required under Federal law to approve or 
implement the license, license amendment, or exemp-
tion under this part. 
‘‘(b) DESIGNATION AS LEAD AGENCY.— 
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‘‘(1) IN GENERAL.—The Commission shall act 
as the lead agency for the purposes of coordinating 
all applicable Federal authorizations and for the 
purposes of complying with the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
‘‘(2) OTHER AGENCIES AND INDIAN TRIBES.— 
‘‘(A) IN GENERAL.—Each Federal, State, 
and local government agency and Indian tribe 
considering an aspect of an application for Fed-
eral authorization shall coordinate with the 
Commission and comply with the deadline es-
tablished in the schedule developed for the 
project in accordance with the rule issued by 
the Commission under subsection (c). 
‘‘(B) IDENTIFICATION.—The Commission 
shall identify, as early as practicable after it is 
notified by the applicant of a project or facility 
requiring Commission action under this part, 
any Federal or State agency, local government, 
or Indian tribe that may consider an aspect of 
an application for a Federal authorization. 
‘‘(C) NOTIFICATION.— 
‘‘(i) IN GENERAL.—The Commission 
shall notify any agency and Indian tribe 
identified under subparagraph (B) of the 
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opportunity to participate in the process of 
reviewing an aspect of an application for a 
Federal authorization. 
‘‘(ii) DEADLINE.—Each agency and 
Indian tribe receiving a notice under clause 
(i) shall submit a response acknowledging 
receipt of the notice to the Commission 
within 30 days of receipt of such notice 
and request. 
‘‘(D) ISSUE IDENTIFICATION AND RESOLU-
TION.— 
‘‘(i) IDENTIFICATION
OF
ISSUES.— 
Federal, State, and local government agen-
cies and Indian tribes that may consider 
an aspect of an application for Federal au-
thorization shall identify, as early as pos-
sible, and share with the Commission and 
the applicant, any issues of concern identi-
fied during the pendency of the Commis-
sion’s action under this part relating to 
any Federal authorization that may delay 
or prevent the granting of such authoriza-
tion, including any issues that may prevent 
the agency or Indian tribe from meeting 
the schedule established for the project in 
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accordance with the rule issued by the 
Commission under subsection (c). 
‘‘(ii) ISSUE RESOLUTION.—The Com-
mission may forward any issue of concern 
identified under clause (i) to the heads of 
the relevant State and Federal agencies 
(including, in the case of scheduling con-
cerns identified by a State or local govern-
ment agency or Indian tribe, the Federal 
agency overseeing the delegated authority, 
or the Secretary of the Interior with re-
gard to scheduling concerns identified by 
an Indian tribe) for resolution. The Com-
mission and any relevant agency shall 
enter into a memorandum of under-
standing to facilitate interagency coordina-
tion and resolution of such issues of con-
cern, as appropriate. 
‘‘(c) SCHEDULE.— 
‘‘(1) COMMISSION RULEMAKING TO ESTABLISH 
PROCESS TO SET SCHEDULE.—Within 180 days of 
the date of enactment of this section the Commis-
sion shall, in consultation with the appropriate Fed-
eral agencies, issue a rule, after providing for notice 
and public comment, establishing a process for set-
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ting a schedule following the filing of an application 
under this part for the review and disposition of 
each Federal authorization. 
‘‘(2) ELEMENTS
OF
SCHEDULING
RULE.—In 
issuing a rule under this subsection, the Commission 
shall ensure that the schedule for each Federal au-
thorization— 
‘‘(A) includes deadlines for actions by— 
‘‘(i) any Federal or State agency, local 
government, or Indian tribe that may con-
sider an aspect of an application for the 
Federal authorization; 
‘‘(ii) the applicant; 
‘‘(iii) the Commission; and 
‘‘(iv) other participants in a pro-
ceeding; 
‘‘(B) is developed in consultation with the 
applicant and any agency and Indian tribe that 
submits 
a 
response 
under 
subsection 
(b)(2)(C)(ii); 
‘‘(C) provides an opportunity for any Fed-
eral or State agency, local government, or In-
dian tribe that may consider an aspect of an 
application for the applicable Federal authoriza-
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tion to identify and resolve issues of concern, as 
provided in subsection (b)(2)(D); 
‘‘(D) complies with applicable schedules es-
tablished under Federal and State law; 
‘‘(E) ensures expeditious completion of all 
proceedings required under Federal and State 
law, to the extent practicable; and 
‘‘(F) facilitates completion of Federal and 
State agency studies, reviews, and any other 
procedures required prior to, or concurrent 
with, the preparation of the Commission’s envi-
ronmental document required under the Na-
tional Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
‘‘(d) TRANSMISSION OF FINAL SCHEDULE.— 
‘‘(1) IN GENERAL.—For each application for a 
license, license amendment, or exemption under this 
part, the Commission shall establish a schedule in 
accordance with the rule issued by the Commission 
under subsection (c). The Commission shall publicly 
notice and transmit the final schedule to the appli-
cant and each agency and Indian tribe identified 
under subsection (b)(2)(B). 
‘‘(2) RESPONSE.—Each agency and Indian 
tribe receiving a schedule under this subsection shall 
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acknowledge receipt of such schedule in writing to 
the Commission within 30 days. 
‘‘(e) ADHERENCE
TO SCHEDULE.—All applicants, 
other licensing participants, and agencies and tribes con-
sidering an aspect of an application for a Federal author-
ization shall meet the deadlines set forth in the schedule 
established pursuant to subsection (d)(1). 
‘‘(f) APPLICATION PROCESSING.—The Commission, 
Federal, State, and local government agencies, and Indian 
tribes may allow an applicant seeking a Federal authoriza-
tion to fund a third-party contractor selected by such 
agency or tribe to assist in reviewing the application. All 
costs of an agency or tribe incurred pursuant to direct 
funding by the applicant, including all costs associated 
with the third party contractor, shall not be considered 
costs of the United States for the administration of this 
part under section 10(e). 
‘‘(g) COMMISSION RECOMMENDATION ON SCOPE OF 
ENVIRONMENTAL REVIEW.—For the purposes of coordi-
nating Federal authorizations for each project, the Com-
mission shall consult with and make a recommendation 
to agencies and Indian tribes receiving a schedule under 
subsection (d) on the scope of the environmental review 
for all Federal authorizations for such project. Each Fed-
eral and State agency and Indian tribe shall give due con-
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sideration and may give deference to the Commission’s 
recommendations, to the extent appropriate under Federal 
law. 
‘‘(h) FAILURE TO MEET SCHEDULE.—A Federal, 
State, or local government agency or Indian tribe that an-
ticipates that it will be unable to complete its disposition 
of a Federal authorization by the deadline set forth in the 
schedule established under subsection (d)(1) may file for 
an extension as provided under section 313(b)(2). 
‘‘(i) CONSOLIDATED
RECORD.—The Commission 
shall, with the cooperation of Federal, State, and local 
government agencies and Indian tribes, maintain a com-
plete consolidated record of all decisions made or actions 
taken by the Commission or by a Federal administrative 
agency or officer (or State or local government agency or 
officer or Indian tribe acting under delegated Federal au-
thority) with respect to any Federal authorization. Such 
record shall constitute the record for judicial review under 
section 313(b).’’. 
SEC. 1204. JUDICIAL REVIEW OF DELAYED FEDERAL AU-
THORIZATIONS. 
Section 313(b) of the Federal Power Act (16 U.S.C. 
825l(b)) is amended— 
(1) by striking ‘‘(b) Any party’’ and inserting 
the following: 
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‘‘(b) JUDICIAL REVIEW.— 
‘‘(1) IN GENERAL.—Any party’’; and 
(2) by adding at the end the following: 
‘‘(2) DELAY OF A FEDERAL AUTHORIZATION.— 
Any Federal, State, or local government agency or 
Indian tribe that will not complete its disposition of 
a Federal authorization by the deadline set forth in 
the schedule by the Commission under section 34 
may file for an extension in the United States court 
of appeals for any circuit wherein the project or pro-
posed project is located, or in the United States 
Court of Appeals for the District of Columbia. Such 
petition shall be filed not later than 30 days prior 
to such deadline. The court shall only grant an ex-
tension if the agency or tribe demonstrates, based on 
the record maintained under section 34, that it oth-
erwise complied with the requirements of section 34 
and that complying with the schedule set by the 
Commission would have prevented the agency or 
tribe from complying with applicable Federal or 
State law. If the court grants the extension, the 
court shall set a reasonable schedule and deadline, 
not to exceed 90 days, for the agency to act on re-
mand. If the court denies the extension, or if an 
agency or tribe does not file for an extension as pro-
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vided in this subsection and does not complete its 
disposition of a Federal authorization by the applica-
ble deadline, the Commission and applicant may 
move forward with the proposed action.’’. 
SEC. 1205. LICENSING STUDY IMPROVEMENTS. 
Part I of the Federal Power Act (16 U.S.C. 792 et 
seq.), as amended by section 1203, is further amended by 
adding at the end the following: 
‘‘SEC. 35. LICENSING STUDY IMPROVEMENTS. 
‘‘(a) IN GENERAL.—To facilitate the timely and effi-
cient completion of the license proceedings under this part, 
the Commission shall, in consultation with applicable Fed-
eral and State agencies and interested members of the 
public— 
‘‘(1) compile current and accepted best prac-
tices in performing studies required in such license 
proceedings, including methodologies and the design 
of studies to assess the full range of environmental 
impacts of a project that reflect the most recent 
peer-reviewed science; 
‘‘(2) compile a comprehensive collection of stud-
ies and data accessible to the public that could be 
used to inform license proceedings under this part; 
and 
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‘‘(3) encourage license applicants, agencies, and 
Indian tribes to develop and use, for the purpose of 
fostering timely and efficient consideration of license 
applications, a limited number of open-source meth-
odologies and tools applicable across a wide array of 
projects, including water balance models and 
streamflow analyses. 
‘‘(b) USE OF STUDIES.—To the extent practicable, 
the Commission and other Federal, State, and local gov-
ernment agencies and Indian tribes considering an aspect 
of an application for Federal authorization shall use cur-
rent, accepted science toward studies and data in support 
of their actions. Any participant in a proceeding with re-
spect to a Federal authorization shall demonstrate a study 
requested by the party is not duplicative of current, exist-
ing studies that are applicable to the project. 
‘‘(c) BASIN-WIDE
OR
REGIONAL
REVIEW.—The 
Commission shall establish a program to develop com-
prehensive plans, at the request of project applicants, on 
a regional or basin-wide scale, in consultation with the ap-
plicants, appropriate Federal agencies, and affected 
States, local governments, and Indian tribes, in basins or 
regions with respect to which there are more than one 
project or application for a project. Upon such a request, 
the Commission, in consultation with the applicants, such 
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Federal agencies, and affected States, local governments, 
and Indian tribes, may conduct or commission regional or 
basin-wide environmental studies, with the participation of 
at least 2 applicants. Any study conducted under this sub-
section shall apply only to a project with respect to which 
the applicant participates.’’. 
SEC. 1206. CLOSED-LOOP PUMPED STORAGE PROJECTS. 
Part I of the Federal Power Act (16 U.S.C. 792 et 
seq.), as amended by section 1205, is further amended by 
adding at the end the following: 
‘‘SEC. 36. CLOSED-LOOP PUMPED STORAGE PROJECTS. 
‘‘(a) DEFINITION.—For purposes of this section, a 
closed-loop pumped storage project is a project— 
‘‘(1) in which the upper and lower reservoirs do 
not impound or directly withdraw water from navi-
gable waters; or 
‘‘(2) that is not continuously connected to a 
naturally flowing water feature. 
‘‘(b) IN GENERAL.—As provided in this section, the 
Commission may issue and amend licenses and prelimi-
nary permits, as appropriate, for closed-loop pumped stor-
age projects. 
‘‘(c) DAM SAFETY.—Before issuing any license for a 
closed-loop pumped storage project, the Commission shall 
assess the safety of existing dams and other structures 
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related to the project (including possible consequences as-
sociated with failure of such structures). 
‘‘(d) LICENSE
CONDITIONS.—With respect to a 
closed-loop pumped storage project, the authority of the 
Commission to impose conditions on a license under sec-
tions 4(e), 10(a), 10(g), and 10(j) shall not apply, and 
any condition included in or applicable to a closed-loop 
pumped storage project licensed under this section, includ-
ing any condition or other requirement of a Federal au-
thorization, shall be limited to those that are— 
‘‘(1) necessary to protect public safety; or 
‘‘(2) reasonable, economically feasible, and es-
sential to prevent loss of or damage to, or to miti-
gate adverse effects on, fish and wildlife resources 
directly caused by the construction and operation of 
the project, as compared to the environmental base-
line existing at the time the Commission completes 
its environmental review. 
‘‘(e) TRANSFERS.—Notwithstanding section 5, and 
regardless of whether the holder of a preliminary permit 
for a closed-loop pumped storage project claimed munic-
ipal preference under section 7(a) when obtaining the per-
mit, the Commission may, to facilitate development of a 
closed-loop pumped storage project— 
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‘‘(1) add entities as joint permittees following 
issuance of a preliminary permit; and 
‘‘(2) transfer a license in part to one or more 
nonmunicipal entities as co-licensees with a munici-
pality.’’. 
SEC. 1207. LICENSE AMENDMENT IMPROVEMENTS. 
Part I of the Federal Power Act (16 U.S.C. 792 et 
seq.), as amended by section 1206, is further amended by 
adding at the end the following: 
‘‘SEC. 37. LICENSE AMENDMENT IMPROVEMENTS. 
‘‘(a) QUALIFYING PROJECT UPGRADES.— 
‘‘(1) IN GENERAL.—As provided in this section, 
the Commission may approve an application for an 
amendment to a license issued under this part for a 
qualifying project upgrade. 
‘‘(2) APPLICATION.—A licensee filing an appli-
cation for an amendment to a project license under 
this section shall include in such application infor-
mation sufficient to demonstrate that the proposed 
change to the project described in the application is 
a qualifying project upgrade. 
‘‘(3) INITIAL DETERMINATION.—Not later than 
15 days after receipt of an application under para-
graph (2), the Commission shall make an initial de-
termination as to whether the proposed change to 
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the project described in the application for a license 
amendment is a qualifying project upgrade. The 
Commission shall publish its initial determination 
and issue notice of the application filed under para-
graph (2). Such notice shall solicit public comment 
on the initial determination within 45 days. 
‘‘(4) PUBLIC
COMMENT
ON
QUALIFYING
CRI-
TERIA.—The Commission shall accept public com-
ment regarding whether a proposed license amend-
ment is for a qualifying project upgrade for a period 
of 45 days beginning on the date of publication of 
a public notice described in paragraph (3), and 
shall— 
‘‘(A) if no entity contests whether the pro-
posed license amendment is for a qualifying 
project upgrade during such comment period, 
immediately publish a notice stating that the 
initial determination has not been contested; or 
‘‘(B) if an entity contests whether the pro-
posed license amendment is for a qualifying 
project upgrade during the comment period, 
issue a written determination in accordance 
with paragraph (5). 
‘‘(5) WRITTEN DETERMINATION.—If an entity 
contests whether the proposed license amendment is 
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for a qualifying project upgrade during the comment 
period under paragraph (4), the Commission shall, 
not later than 30 days after the date of publication 
of the public notice of the initial determination 
under paragraph (3), issue a written determination 
as to whether the proposed license amendment is for 
a qualifying project upgrade. 
‘‘(6) PUBLIC COMMENT ON AMENDMENT APPLI-
CATION.—If no entity contests whether the proposed 
license amendment is for a qualifying project up-
grade during the comment period under paragraph 
(4) or the Commission issues a written determina-
tion under paragraph (5) that a proposed license 
amendment is a qualifying project upgrade, the 
Commission shall— 
‘‘(A) during the 60-day period beginning 
on the date of publication of a notice under 
paragraph (4)(A) or the date on which the 
Commission issues the written determination 
under paragraph (5), as applicable, solicit com-
ments from each Federal, State, and local gov-
ernment agency and Indian tribe considering an 
aspect of an application for Federal authoriza-
tion (as defined in section 34) with respect to 
the proposed license amendment, as well as 
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other interested agencies, Indian tribes, and 
members of the public; and 
‘‘(B) during the 90-day period beginning 
on the date of publication of a notice under 
paragraph (4)(A) or the date on which the 
Commission issues the written determination 
under paragraph (5), as applicable, consult 
with— 
‘‘(i) appropriate Federal agencies and 
the State agency exercising administrative 
control over the fish and wildlife resources, 
and water quality and supply, of the State 
in which the qualifying project upgrade is 
located; 
‘‘(ii) any Federal department super-
vising any public lands or reservations oc-
cupied by the qualifying project upgrade; 
and 
‘‘(iii) any Indian tribe affected by the 
qualifying project upgrade. 
‘‘(7) FEDERAL AUTHORIZATIONS.—The sched-
ule established by the Commission under section 34 
for any project upgrade under this subsection shall 
require final disposition on all necessary Federal au-
thorizations (as defined in section 34), other than 
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final action by the Commission, by not later than 
120 days after the date on which the Commission 
issues a notice under paragraph (4)(A) or a written 
determination under paragraph (5), as applicable. 
‘‘(8) COMMISSION ACTION.—Not later than 150 
days after the date on which the Commission issues 
a notice under paragraph (4)(A) or a written deter-
mination under paragraph (5), as applicable, the 
Commission shall take final action on the license 
amendment application. 
‘‘(9) LICENSE AMENDMENT CONDITIONS.—Any 
condition included in or applicable to a license 
amendment approved under this subsection, includ-
ing any condition or other requirement of a Federal 
authorization, shall be limited to those that are— 
‘‘(A) necessary to protect public safety; or 
‘‘(B) reasonable, economically feasible, and 
essential to prevent loss of or damage to, or to 
mitigate adverse effects on, fish and wildlife re-
sources, water supply, and water quality that 
are directly caused by the construction and op-
eration of the qualifying project upgrade, as 
compared to the environmental baseline existing 
at the time the Commission approves the appli-
cation for the license amendment. 
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‘‘(10) PROPOSED LICENSE AMENDMENTS THAT 
ARE NOT QUALIFYING PROJECT UPGRADES.—If the 
Commission determines under paragraph (3) or (5) 
that a proposed license amendment is not for a 
qualifying project upgrade, the procedures under 
paragraphs (6) through (9) shall not apply to the 
application. 
‘‘(11) RULEMAKING.—Not later than 180 days 
after the date of enactment of this section, the Com-
mission shall, after notice and opportunity for public 
comment, issue a rule to implement this subsection. 
‘‘(12) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) QUALIFYING
PROJECT
UPGRADE.— 
The term ‘qualifying project upgrade’ means a 
change to a project licensed under this part 
that meets the qualifying criteria, as deter-
mined by the Commission. 
‘‘(B) QUALIFYING
CRITERIA.—The term 
‘qualifying criteria’ means, with respect to a 
project license under this part, a change to the 
project that— 
‘‘(i) if carried out, would be unlikely 
to adversely affect any species listed as 
threatened or endangered under the En-
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dangered Species Act of 1973 or result in 
the destruction or adverse modification of 
critical habitat, as determined in consulta-
tion with the Secretary of the Interior or 
Secretary of Commerce, as appropriate, in 
accordance with section 7 of the Endan-
gered Species Act of 1973; 
‘‘(ii) is consistent with any applicable 
comprehensive plan under section 10(a)(2); 
‘‘(iii) includes only changes to project 
lands, waters, or operations that, in the 
judgment of the Commission, would result 
in only insignificant or minimal cumulative 
adverse environmental effects; 
‘‘(iv) would be unlikely to adversely 
affect water quality and water supply; and 
‘‘(v) proposes to implement— 
‘‘(I) capacity increases, efficiency 
improvements, or other enhancements 
to hydropower generation at the li-
censed project; 
‘‘(II) environmental protection, 
mitigation, or enhancement measures 
to benefit fish and wildlife resources 
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or other natural and cultural re-
sources; or 
‘‘(III) improvements to public 
recreation at the licensed project. 
‘‘(b) AMENDMENT APPROVAL PROCESSES.— 
‘‘(1) RULE.—Not later than 1 year after the 
date of enactment of this section, the Commission 
shall, after notice and opportunity for public com-
ment, issue a rule establishing new standards and 
procedures for license amendment applications under 
this part. In issuing such rule, the Commission shall 
seek to develop the most efficient and expedient 
process, consultation, and review requirements, com-
mensurate with the scope of different categories of 
proposed license amendments. Such rule shall ac-
count for differences in environmental effects across 
a wide range of categories of license amendment ap-
plications. 
‘‘(2) CAPACITY.—In issuing a rule under this 
subsection, the Commission shall take into consider-
ation that a change in generating or hydraulic ca-
pacity may indicate the potential environmental ef-
fects of a proposed amendment but is not determina-
tive of such effects. 
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‘‘(3) PROCESS
OPTIONS.—In issuing a rule 
under this subsection, the Commission shall take 
into consideration the range of process options avail-
able under the Commission’s regulations for new 
and original license applications and adapt such op-
tions to amendment applications, where appro-
priate.’’. 
SEC. 1208. PROMOTING HYDROPOWER DEVELOPMENT AT 
EXISTING NONPOWERED DAMS. 
Part I of the Federal Power Act (16 U.S.C. 792 et 
seq.), as amended by section 1207, is further amended by 
adding at the end the following: 
‘‘SEC. 38. PROMOTING HYDROPOWER DEVELOPMENT AT 
EXISTING NONPOWERED DAMS. 
‘‘(a) EXEMPTIONS FOR QUALIFYING FACILITIES.— 
‘‘(1) EXEMPTION QUALIFICATIONS.—Subject to 
the requirements of this subsection, the Commission 
may grant an exemption in whole or in part from 
the requirements of this part, including any license 
requirements contained in this part, to any facility 
the Commission determines is a qualifying facility. 
‘‘(2) CONSULTATION
WITH
FEDERAL
AND 
STATE AGENCIES.—In granting any exemption under 
this subsection, the Commission shall consult with— 
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‘‘(A) the United States Fish and Wildlife 
Service, the National Marine Fisheries Service, 
and the State agency exercising administrative 
control over the fish and wildlife resources of 
the State in which the facility will be located, 
in the manner provided by the Fish and Wild-
life Coordination Act; 
‘‘(B) any Federal department supervising 
any public lands or reservations occupied by the 
project; and 
‘‘(C) any Indian tribe affected by the 
project. 
‘‘(3) EXEMPTION CONDITIONS.— 
‘‘(A) IN GENERAL.—The Commission shall 
include in any exemption granted under this 
subsection only such terms and conditions that 
the Commission determines are— 
‘‘(i) necessary to protect public safety; 
or 
‘‘(ii) reasonable, economically feasible, 
and essential to prevent loss of or damage 
to, or to mitigate adverse effects on, fish 
and wildlife resources directly caused by 
the construction and operation of the 
qualifying facility, as compared to the envi-
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ronmental baseline existing at the time the 
Commission grants the exemption. 
‘‘(B) NO
CHANGES
TO
RELEASE
RE-
GIME.—No Federal authorization required with 
respect to a qualifying facility described in 
paragraph (1), including an exemption granted 
by the Commission under this subsection, may 
include any condition or other requirement that 
results in any material change to the storage, 
control, withdrawal, diversion, release, or flow 
operations of the associated qualifying nonpow-
ered dam. 
‘‘(4) ENVIRONMENTAL REVIEW.—The Commis-
sion’s environmental review under the National En-
vironmental Policy Act of 1969 of a proposed ex-
emption under this subsection shall consist only of 
an environmental assessment, unless the Commis-
sion determines, by rule or order, that the Commis-
sion’s obligations under such Act for granting ex-
emptions under this subsection can be met through 
a categorical exclusion. 
‘‘(5) VIOLATION OF TERMS OF EXEMPTION.— 
Any violation of a term or condition of any exemp-
tion granted under this subsection shall be treated 
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as a violation of a rule or order of the Commission 
under this Act. 
‘‘(6) ANNUAL
CHARGES
FOR
ENHANCEMENT 
ACTIVITIES.—Exemptees under this subsection for 
any facility located at a non-Federal dam shall pay 
to the United States reasonable annual charges in 
an amount to be fixed by the Commission for the 
purpose of funding environmental enhancement 
projects in watersheds in which facilities exempted 
under this subsection are located. Such annual 
charges shall be equivalent to the annual charges for 
use of a Government dam under section 10(e), un-
less the Commission determines, by rule, that a 
lower charge is appropriate to protect exemptees’ in-
vestment in the project or avoid increasing the price 
to consumers of power due to such charges. The pro-
ceeds of charges made by the Commission under this 
paragraph shall be paid into the Treasury of the 
United States and credited to miscellaneous receipts. 
Subject to annual appropriation Acts, such proceeds 
shall be available to Federal and State fish and wild-
life agencies for purposes of carrying out specific en-
vironmental enhancement projects in watersheds in 
which one or more facilities exempted under this 
subsection are located. Not later than 180 days after 
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the date of enactment of this section, the Commis-
sion shall establish rules, after notice and oppor-
tunity for public comment, for the collection and ad-
ministration of annual charges under this para-
graph. 
‘‘(7) EFFECT OF JURISDICTION.—The jurisdic-
tion of the Commission over any qualifying facility 
exempted under this subsection shall extend only to 
the qualifying facility exempted and any associated 
primary transmission line, and shall not extend to 
any conduit, dam, impoundment, shoreline or other 
land, or any other project work associated with the 
qualifying facility exempted under this subsection. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) FEDERAL
AUTHORIZATION.—The term 
‘Federal authorization’ has the same meaning as 
provided in section 34. 
‘‘(2) QUALIFYING CRITERIA.—The term ‘quali-
fying criteria’ means, with respect to a facility— 
‘‘(A) as of the date of enactment of this 
section, the facility is not licensed under, or ex-
empted from the license requirements contained 
in, this part; 
‘‘(B) the facility will be associated with a 
qualifying nonpowered dam; 
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‘‘(C) the facility will be constructed, oper-
ated, and maintained for the generation of elec-
tric power; 
‘‘(D) the facility will use for such genera-
tion any withdrawals, diversions, releases, or 
flows from the associated qualifying nonpow-
ered dam, including its associated impoundment 
or other infrastructure; and 
‘‘(E) the operation of the facility will not 
result in any material change to the storage, 
control, withdrawal, diversion, release, or flow 
operations of the associated qualifying nonpow-
ered dam. 
‘‘(3) QUALIFYING FACILITY.—The term ‘quali-
fying facility’ means a facility that is determined 
under this section to meet the qualifying criteria. 
‘‘(4) QUALIFYING
NONPOWERED
DAM.—The 
term ‘qualifying nonpowered dam’ means any dam, 
dike, embankment, or other barrier— 
‘‘(A) the construction of which was com-
pleted on or before the date of enactment of 
this section; 
‘‘(B) that is operated for the control, re-
lease, or distribution of water for agricultural, 
municipal, navigational, industrial, commercial, 
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environmental, recreational, aesthetic, or flood 
control purposes; 
‘‘(C) that, as of the date of enactment of 
this section, is not equipped with hydropower 
generating works that are licensed under, or ex-
empted from the license requirements contained 
in, this part; and 
‘‘(D) that, in the case of a non-Federal 
dam, has been certified by an independent con-
sultant approved by the Commission as com-
plying with the Commission’s dam safety re-
quirements.’’. 
TITLE II—ENERGY SECURITY 
AND DIPLOMACY 
SEC. 2001. SENSE OF CONGRESS. 
Congress finds the following: 
(1) North America’s energy revolution has sig-
nificantly enhanced energy security in the United 
States, and fundamentally changed the Nation’s en-
ergy future from that of scarcity to abundance. 
(2) North America’s energy abundance has in-
creased global energy supplies and reduced the price 
of energy for consumers in the United States and 
abroad. 
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(3) Allies and trading partners of the United 
States, including in Europe and Asia, are seeking 
stable and affordable energy supplies from North 
America to enhance their energy security. 
(4) The United States has an opportunity to 
improve its energy security and promote greater sta-
bility and affordability of energy supplies for its al-
lies and trading partners through a more integrated, 
secure, and competitive North American energy sys-
tem. 
(5) The United States also has an opportunity 
to promote such objectives by supporting the free 
flow of energy commodities and more open, trans-
parent, and competitive global energy markets, and 
through greater Federal agency coordination relating 
to regulations or agency actions that significantly af-
fect the supply, distribution, or use of energy. 
SEC. 2002. ENERGY SECURITY VALUATION. 
(a) ESTABLISHMENT OF ENERGY SECURITY VALU-
ATION METHODS.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of Energy, in col-
laboration with the Secretary of State, shall develop and 
transmit, after public notice and comment, to the Com-
mittee on Energy and Commerce, the Committee on 
Science, Space, and Technology, and the Committee on 
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Foreign Affairs of the House of Representatives and the 
Committee on Energy and Natural Resources, the Com-
mittee on Commerce, Science, and Transportation, and 
the Committee on Foreign Relations of the Senate a re-
port that develops recommended United States energy se-
curity valuation methods. In developing the report, the 
Secretaries may consider the recommendations of the Ad-
ministration’s Quadrennial Energy Review released on 
April 21, 2015. The report shall— 
(1) evaluate and define United States energy 
security to reflect modern domestic and global en-
ergy markets and the collective needs of the United 
States and its allies and partners; 
(2) identify transparent and uniform or coordi-
nated procedures and criteria to ensure that energy- 
related actions that significantly affect the supply, 
distribution, transportation, or use of energy are 
evaluated with respect to their potential impact on 
energy security, including their impact on— 
(A) consumers and the economy; 
(B) energy supply diversity and resiliency; 
(C) well-functioning and competitive en-
ergy markets; 
(D) United States trade balance; and 
(E) national security objectives; and 
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(3) include a recommended implementation 
strategy that identifies and aims to ensure that the 
procedures and criteria referred to in paragraph (2) 
are— 
(A) evaluated consistently across the Fed-
eral Government; and 
(B) weighed appropriately and balanced 
with environmental considerations required by 
Federal law. 
(b) PARTICIPATION.—In developing the report re-
ferred to in subsection (a), the Secretaries may consult 
with relevant Federal, State, private sector, and inter-
national participants, as appropriate and consistent with 
applicable law. 
SEC. 2003. NORTH AMERICAN ENERGY SECURITY PLAN. 
(a) REQUIREMENT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of Energy, 
in collaboration with the Secretary of State, shall develop 
and transmit to the Committee on Energy and Commerce 
and the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Energy and Nat-
ural Resources and the Committee on Foreign Relations 
of the Senate the plan described in subsection (b). 
(b) PURPOSE.—The plan referred to in subsection (a) 
shall include— 
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(1) a recommended framework and implementa-
tion strategy to— 
(A) improve planning and coordination 
with Canada and Mexico to enhance energy in-
tegration, strengthen North American energy 
security, and promote efficiencies in the explo-
ration, production, storage, supply, distribution, 
marketing, pricing, and regulation of North 
American energy resources; and 
(B) address— 
(i) North American energy public 
data, statistics, and mapping collaboration; 
(ii) responsible and sustainable best 
practices for the development of unconven-
tional oil and natural gas; and 
(iii) modern, resilient energy infra-
structure for North America, including 
physical infrastructure as well as institu-
tional infrastructure such as policies, regu-
lations, and practices relating to energy de-
velopment; and 
(2) a recommended framework and implementa-
tion strategy to improve collaboration with Carib-
bean and Central American partners on energy secu-
rity, including actions to support— 
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(A) more open, transparent, and competi-
tive energy markets; 
(B) regulatory capacity building; 
(C) improvements to energy transmission 
and storage; and 
(D) improvements to the performance of 
energy infrastructure and efficiency. 
(c) PARTICIPATION.—In developing the plan referred 
to in subsection (a), the Secretaries may consult with 
other Federal, State, private sector, and international par-
ticipants, as appropriate and consistent with applicable 
law. 
SEC. 2004. COLLECTIVE ENERGY SECURITY. 
(a) IN GENERAL.—The Secretary of Energy and the 
Secretary of State shall collaborate to strengthen domestic 
energy security and the energy security of the allies and 
trading partners of the United States, including through 
actions that support or facilitate— 
(1) energy diplomacy; 
(2) the delivery of United States assistance, in-
cluding energy resources and technologies, to pre-
vent or mitigate an energy security crisis; 
(3) the development of environmentally and 
commercially sustainable energy resources; 
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(4) open, transparent, and competitive energy 
markets; and 
(5) regulatory capacity building. 
(b) ENERGY SECURITY FORUMS.—Not later than 1 
year after the date of enactment of this Act, the Secretary 
of Energy, in collaboration with the Secretary of State, 
shall convene not less than 2 forums to promote the collec-
tive energy security of the United States and its allies and 
trading partners. The forums shall include participation 
by the Secretary of Energy and the Secretary of State. 
In addition, an invitation shall be extended to— 
(1) appropriate representatives of foreign gov-
ernments that are allies or trading partners of the 
United States; and 
(2) independent experts and industry represent-
atives. 
(c) REQUIREMENTS.—The forums shall— 
(1) consist of at least 1 Trans-Atlantic and 1 
Trans-Pacific energy security forum; 
(2) be designed to foster dialogue among gov-
ernment officials, independent experts, and industry 
representatives regarding— 
(A) the current state of global energy mar-
kets; 
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(B) trade and investment issues relevant to 
energy; and 
(C) barriers to more open, competitive, and 
transparent energy markets; and 
(3) be recorded and made publicly available on 
the Department of Energy’s website, including, not 
later than 30 days after each forum, publication on 
the website any significant outcomes. 
(d) NOTIFICATION.—At least 30 days before each of 
the forums referred to in subsection (b), the Secretary of 
Energy shall send a notification regarding the forum to— 
(1) the chair and the ranking minority member 
of the Committee on Energy and Commerce and the 
Committee on Foreign Affairs of the House of Rep-
resentatives; and 
(2) the chair and ranking minority member of 
the Committee on Energy and Natural Resources 
and the Committee on Foreign Relations of the Sen-
ate. 
SEC. 2005. AUTHORIZATION TO EXPORT NATURAL GAS. 
(a) DECISION DEADLINE.—For proposals that must 
also obtain authorization from the Federal Energy Regu-
latory Commission or the United States Maritime Admin-
istration to site, construct, expand, or operate LNG export 
facilities, the Department of Energy shall issue a final de-
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cision on any application for the authorization to export 
natural gas under section 3 of the Natural Gas Act (15 
U.S.C. 717b) not later than 30 days after the later of— 
(1) the conclusion of the review to site, con-
struct, expand, or operate the LNG facilities re-
quired by the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.); or 
(2) the date of enactment of this Act. 
(b) CONCLUSION OF REVIEW.—For purposes of sub-
section (a), review required by the National Environ-
mental Policy Act of 1969 shall be considered concluded— 
(1) for a project requiring an Environmental 
Impact Statement, 30 days after publication of a 
Final Environmental Impact Statement; 
(2) for a project for which an Environmental 
Assessment has been prepared, 30 days after publi-
cation by the Department of Energy of a Finding of 
No Significant Impact; and 
(3) upon a determination by the lead agency 
that an application is eligible for a categorical exclu-
sion pursuant to National Environmental Policy Act 
of 1969 implementing regulations. 
(c) PUBLIC DISCLOSURE
OF EXPORT DESTINA-
TIONS.—Section 3 of the Natural Gas Act (15 U.S.C. 
717b) is amended by adding at the end the following: 
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‘‘(g) PUBLIC DISCLOSURE OF LNG EXPORT DES-
TINATIONS.—As a condition for approval of any authoriza-
tion to export LNG, the Secretary of Energy shall require 
the applicant to publicly disclose the specific destination 
or destinations of any such authorized LNG exports.’’. 
SEC. 2006. ENVIRONMENTAL REVIEW FOR ENERGY EXPORT 
FACILITIES. 
Notwithstanding any other provision of law, including 
any other provision of this Act and any amendment made 
by this Act, to the extent that the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) applies to 
the issuance of a permit for the construction, operation, 
or maintenance of a facility for the export of bulk com-
modities, no such permit may be denied until each applica-
ble Federal agency has completed all reviews required for 
the facility under such Act. 
SEC. 2007. AUTHORIZATION OF CROSS-BORDER INFRA-
STRUCTURE PROJECTS. 
(a) FINDING.—Congress finds that the United States 
should establish a more uniform, transparent, and modern 
process for the construction, connection, operation, and 
maintenance of pipelines and electric transmission facili-
ties for the import and export of liquid products, including 
water and petroleum, and natural gas and the trans-
mission of electricity to and from Canada and Mexico. 
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(b) AUTHORIZATION OF CERTAIN INFRASTRUCTURE 
PROJECTS
AT
THE
NATIONAL
BOUNDARY
OF
THE 
UNITED STATES.— 
(1) REQUIREMENT.—No person may construct, 
connect, operate, or maintain a cross-border segment 
of a pipeline or electric transmission facility for the 
import or export of liquid products or natural gas, 
or the transmission of electricity, to or from Canada 
or Mexico without obtaining a certificate of crossing 
for such construction, connection, operation, or 
maintenance under this subsection. 
(2) CERTIFICATE OF CROSSING.— 
(A) ISSUANCE.— 
(i) IN GENERAL.—Not later than 120 
days after final action is taken under the 
National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) with respect 
to a cross-border segment described in 
paragraph (1), the relevant official identi-
fied under subparagraph (B), in consulta-
tion with appropriate Federal agencies, 
shall issue a certificate of crossing for the 
cross-border segment unless the relevant 
official finds that the construction, connec-
tion, operation, or maintenance of the 
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cross-border segment is not in the public 
interest of the United States. 
(ii) NATURAL GAS.—For the purposes 
of natural gas pipelines, a finding with re-
spect to the public interest under section 
3(a) of the Natural Gas Act (15 U.S.C. 
717b(a)) shall serve as a finding under 
clause (i) of this subparagraph. 
(B) RELEVANT
OFFICIAL.—The relevant 
official referred to in subparagraph (A) is— 
(i) the Secretary of State with respect 
to liquid pipelines; 
(ii) the Federal Energy Regulatory 
Commission with respect to natural gas 
pipelines; and 
(iii) the Secretary of Energy with re-
spect to electric transmission facilities. 
(C) 
ADDITIONAL
REQUIREMENT
FOR 
ELECTRIC
TRANSMISSION
FACILITIES.—The 
Secretary of Energy shall require, as a condi-
tion of issuing a certificate of crossing for an 
electric transmission facility, that the cross-bor-
der segment be constructed, connected, oper-
ated, or maintained consistent with all applica-
ble policies and standards of— 
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(i) the Electric Reliability Organiza-
tion and the applicable regional entity; and 
(ii) any Regional Transmission Orga-
nization or Independent System Operator 
with operational or functional control over 
the cross-border segment of the electric 
transmission facility. 
(3) MODIFICATIONS TO EXISTING PROJECTS.— 
No certificate of crossing shall be required under 
this subsection for a change in ownership, volume 
expansion, downstream or upstream interconnection, 
or adjustment to maintain flow (such as a reduction 
or increase in the number of pump or compressor 
stations) with respect to a liquid or natural gas pipe-
line or electric transmission facility unless such 
modification would result in a significant impact at 
the national boundary. 
(4) EFFECT OF OTHER LAWS.—Nothing in this 
subsection shall affect the application of any other 
Federal statute (including the Natural Gas Act and 
the Energy Policy and Conservation Act) to a 
project for which a certificate of crossing is sought 
under this subsection. 
(c) IMPORTATION OR EXPORTATION OF NATURAL 
GAS TO CANADA AND MEXICO.—Section 3(c) of the Nat-
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ural Gas Act (15 U.S.C. 717b(c)) is amended by adding 
at the end the following: ‘‘In the case of an application 
for the importation or exportation of natural gas to or 
from Canada or Mexico, the Commission shall grant the 
application not later than 30 days after the date of receipt 
of the complete application.’’. 
(d) TRANSMISSION OF ELECTRIC ENERGY TO CAN-
ADA AND MEXICO.— 
(1) REPEAL
OF
REQUIREMENT
TO
SECURE 
ORDER.—Section 202(e) of the Federal Power Act 
(16 U.S.C. 824a(e)) is repealed. 
(2) CONFORMING AMENDMENTS.— 
(A) STATE REGULATIONS.—Section 202(f) 
of the Federal Power Act (16 U.S.C. 824a(f)) 
is amended by striking ‘‘insofar as such State 
regulation does not conflict with the exercise of 
the Commission’s powers under or relating to 
subsection 202(e)’’. 
(B) SEASONAL
DIVERSITY
ELECTRICITY 
EXCHANGE.—Section 602(b) of the Public Util-
ity Regulatory Policies Act of 1978 (16 U.S.C. 
824a–4(b)) is amended by striking ‘‘the Com-
mission has conducted hearings and made the 
findings required under section 202(e) of the 
Federal Power Act’’ and all that follows 
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through the period at the end and inserting 
‘‘the Secretary has conducted hearings and 
finds that the proposed transmission facilities 
would not impair the sufficiency of electric sup-
ply within the United States or would not im-
pede or tend to impede the coordination in the 
public interest of facilities subject to the juris-
diction of the Secretary’’. 
(e) EFFECTIVE DATE; RULEMAKING DEADLINES.— 
(1) 
EFFECTIVE
DATE.—Subsections 
(b) 
through (d), and the amendments made by such 
subsections, shall take effect on January 20, 2017. 
(2) RULEMAKING DEADLINES.—Each relevant 
official described in subsection (b)(2)(B) shall— 
(A) not later than 180 days after the date 
of enactment of this Act, publish in the Federal 
Register notice of a proposed rulemaking to 
carry out the applicable requirements of sub-
section (b); and 
(B) not later than 1 year after the date of 
enactment of this Act, publish in the Federal 
Register a final rule to carry out the applicable 
requirements of subsection (b). 
(f) DEFINITIONS.—In this section— 
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(1) the term ‘‘cross-border segment’’ means the 
portion of a liquid or natural gas pipeline or electric 
transmission facility that is located at the national 
boundary of the United States with either Canada or 
Mexico; 
(2) the terms ‘‘Electric Reliability Organiza-
tion’’ and ‘‘regional entity’’ have the meanings given 
those terms in section 215 of the Federal Power Act 
(16 U.S.C. 824o); 
(3) the terms ‘‘Independent System Operator’’ 
and ‘‘Regional Transmission Organization’’ have the 
meanings given those terms in section 3 of the Fed-
eral Power Act (16 U.S.C. 796); 
(4) the term ‘‘liquid’’ includes water, petroleum, 
petroleum product, and any other substance that 
flows through a pipeline other than natural gas; and 
(5) the term ‘‘natural gas’’ has the meaning 
given that term in section 2 of the Natural Gas Act 
(15 U.S.C. 717a). 
SEC. 2008. REPORT ON SMART METER SECURITY CON-
CERNS. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary of Energy shall transmit to Con-
gress a report on the weaknesses in currently available 
smart meters’ security architecture and features, including 
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an absence of event logging, as described in the Govern-
ment Accountability Office testimony entitled ‘‘Critical In-
frastructure Protection: Cybersecurity of the Nation’s 
Electricity Grid Requires Continued Attention’’ on Octo-
ber 21, 2015. 
TITLE III—ENERGY EFFICIENCY 
AND ACCOUNTABILITY 
Subtitle A—Energy Efficiency 
CHAPTER 1—FEDERAL AGENCY ENERGY 
EFFICIENCY 
SEC. 3111. ENERGY-EFFICIENT AND ENERGY-SAVING IN-
FORMATION TECHNOLOGIES. 
(a) AMENDMENT.—Subtitle C of title V of the En-
ergy Independence and Security Act of 2007 (Public Law 
110–140; 121 Stat. 1661) is amended by adding at the 
end the following: 
‘‘SEC. 530. ENERGY-EFFICIENT AND ENERGY-SAVING INFOR-
MATION TECHNOLOGIES. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) DIRECTOR.—The term ‘Director’ means 
the Director of the Office of Management and Budg-
et. 
‘‘(2) INFORMATION
TECHNOLOGY.—The term 
‘information technology’ has the meaning given that 
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term in section 11101 of title 40, United States 
Code. 
‘‘(b) DEVELOPMENT OF IMPLEMENTATION STRAT-
EGY.—Not later than 1 year after the date of enactment 
of this section, each Federal agency shall coordinate with 
the Director, the Secretary, and the Administrator of the 
Environmental Protection Agency to develop an implemen-
tation strategy (that includes best practices and measure-
ment and verification techniques) for the maintenance, 
purchase, and use by the Federal agency of energy-effi-
cient and energy-saving information technologies, taking 
into consideration the performance goals established under 
subsection (d). 
‘‘(c) ADMINISTRATION.—In developing an implemen-
tation strategy under subsection (b), each Federal agency 
shall consider— 
‘‘(1) advanced metering infrastructure; 
‘‘(2) energy-efficient data center strategies and 
methods of increasing asset and infrastructure utili-
zation; 
‘‘(3) advanced power management tools; 
‘‘(4) building information modeling, including 
building energy management; 
‘‘(5) secure telework and travel substitution 
tools; and 
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‘‘(6) mechanisms to ensure that the agency re-
alizes the energy cost savings brought about through 
increased efficiency and utilization. 
‘‘(d) PERFORMANCE GOALS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of this section, the Di-
rector, in consultation with the Secretary, shall es-
tablish performance goals for evaluating the efforts 
of Federal agencies in improving the maintenance, 
purchase, and use of energy-efficient and energy-sav-
ing information technology. 
‘‘(2) BEST PRACTICES.—The Chief Information 
Officers Council established under section 3603 of 
title 44, United States Code, shall recommend best 
practices for the attainment of the performance 
goals, which shall include Federal agency consider-
ation of, to the extent applicable by law, the use 
of— 
‘‘(A) energy savings performance con-
tracting; and 
‘‘(B) utility energy services contracting. 
‘‘(e) REPORTS.— 
‘‘(1) AGENCY REPORTS.—Each Federal agency 
shall include in the report of the agency under sec-
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tion 527 a description of the efforts and results of 
the agency under this section. 
‘‘(2) OMB GOVERNMENT EFFICIENCY REPORTS 
AND
SCORECARDS.—Effective beginning not later 
than October 1, 2017, the Director shall include in 
the annual report and scorecard of the Director re-
quired under section 528 a description of the efforts 
and results of Federal agencies under this section.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents for the Energy Independence and Security Act of 
2007 is amended by adding after the item relating to sec-
tion 529 the following: 
‘‘Sec. 530. Energy-efficient and energy-saving information technologies.’’. 
SEC. 3112. ENERGY EFFICIENT DATA CENTERS. 
Section 453 of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17112) is amended— 
(1) in subsection (b)(2)(D)(iv), by striking ‘‘de-
termined by the organization’’ and inserting ‘‘pro-
posed by the stakeholders’’; 
(2) by striking subsection (b)(3); and 
(3) by striking subsections (c) through (g) and 
inserting the following: 
‘‘(c) STAKEHOLDER INVOLVEMENT.—The Secretary 
and the Administrator shall carry out subsection (b) in 
collaboration with the information technology industry and 
other key stakeholders, with the goal of producing results 
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that accurately reflect the most relevant and useful infor-
mation available. In such collaboration, the Secretary and 
the Administrator shall pay particular attention to organi-
zations that— 
‘‘(1) have members with expertise in energy ef-
ficiency and in the development, operation, and 
functionality of data centers, information technology 
equipment, and software, such as representatives of 
hardware manufacturers, data center operators, and 
facility managers; 
‘‘(2) obtain and address input from Department 
of Energy National Laboratories or any college, uni-
versity, research institution, industry association, 
company, or public interest group with applicable ex-
pertise; 
‘‘(3) follow— 
‘‘(A) commonly accepted procedures for 
the development of specifications; and 
‘‘(B) accredited standards development 
processes; and 
‘‘(4) have a mission to promote energy effi-
ciency for data centers and information technology. 
‘‘(d) MEASUREMENTS
AND SPECIFICATIONS.—The 
Secretary and the Administrator shall consider and assess 
the adequacy of the specifications, measurements, best 
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practices, and benchmarks described in subsection (b) for 
use by the Federal Energy Management Program, the En-
ergy Star Program, and other efficiency programs of the 
Department of Energy or the Environmental Protection 
Agency. 
‘‘(e) STUDY.—The Secretary, in collaboration with 
the Administrator, shall, not later than 18 months after 
the date of enactment of the North American Energy Se-
curity and Infrastructure Act of 2015, make available to 
the public an update to the Report to Congress on Server 
and Data Center Energy Efficiency published on August 
2, 2007, under section 1 of Public Law 109–431 (120 
Stat. 2920), that provides— 
‘‘(1) a comparison and gap analysis of the esti-
mates and projections contained in the original re-
port with new data regarding the period from 2008 
through 2015; 
‘‘(2) an analysis considering the impact of in-
formation technologies, including virtualization and 
cloud computing, in the public and private sectors; 
‘‘(3) an evaluation of the impact of the com-
bination of cloud platforms, mobile devices, social 
media, and big data on data center energy usage; 
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‘‘(4) an evaluation of water usage in data cen-
ters and recommendations for reductions in such 
water usage; and 
‘‘(5) updated projections and recommendations 
for best practices through fiscal year 2020. 
‘‘(f) DATA CENTER ENERGY PRACTITIONER PRO-
GRAM.—The Secretary, in collaboration with key stake-
holders and the Director of the Office of Management and 
Budget, shall maintain a data center energy practitioner 
program that leads to the certification of energy practi-
tioners qualified to evaluate the energy usage and effi-
ciency opportunities in Federal data centers. Each Federal 
agency shall consider having the data centers of the agen-
cy evaluated every 4 years, in accordance with section 
543(f) of the National Energy Conservation Policy Act (42 
U.S.C. 8253), by energy practitioners certified pursuant 
to such program. 
‘‘(g) OPEN DATA INITIATIVE.—The Secretary, in col-
laboration with key stakeholders and the Director of the 
Office of Management and Budget, shall establish an open 
data initiative for Federal data center energy usage data, 
with the purpose of making such data available and acces-
sible in a manner that encourages further data center in-
novation, optimization, and consolidation. In establishing 
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the initiative, the Secretary shall consider the use of the 
online Data Center Maturity Model. 
‘‘(h) 
INTERNATIONAL
SPECIFICATIONS
AND 
METRICS.—The Secretary, in collaboration with key 
stakeholders, shall actively participate in efforts to har-
monize global specifications and metrics for data center 
energy and water efficiency. 
‘‘(i) DATA CENTER UTILIZATION METRIC.—The Sec-
retary, in collaboration with key stakeholders, shall facili-
tate the development of an efficiency metric that measures 
the energy efficiency of a data center (including equipment 
and facilities). 
‘‘(j) PROTECTION OF PROPRIETARY INFORMATION.— 
The Secretary and the Administrator shall not disclose 
any proprietary information or trade secrets provided by 
any individual or company for the purposes of carrying 
out this section or the programs and initiatives established 
under this section.’’. 
SEC. 3113. REPORT ON ENERGY AND WATER SAVINGS PO-
TENTIAL FROM THERMAL INSULATION. 
(a) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of Energy, in con-
sultation with appropriate Federal agencies and relevant 
stakeholders, shall submit to the Committee on Energy 
and Natural Resources of the Senate and the Committee 
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on Energy and Commerce of the House of Representatives 
a report on the impact of thermal insulation on both en-
ergy and water use systems for potable hot and chilled 
water in Federal buildings, and the return on investment 
of installing such insulation. 
(b) CONTENTS.—The report shall include— 
(1) an analysis based on the cost of municipal 
or regional water for delivered water and the avoided 
cost of new water; and 
(2) a summary of energy and water savings, in-
cluding short-term and long-term (20 years) projec-
tions of such savings. 
SEC. 3114. BATTERY STORAGE REPORT. 
Not later than 1 year after the date of enactment 
of this Act, the Comptroller General shall transmit to Con-
gress a report on the potential of battery energy storage 
that answers the following questions: 
(1) How do existing Federal standards impact 
the development and deployment of battery storage 
systems? 
(2) What are the benefits of using existing bat-
tery storage technology, and what challenges exist to 
their widespread use? What are some examples of 
existing battery storage projects providing these ben-
efits? 
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(3) What potential impact could large-scale bat-
tery storage and behind-the-meter battery storage 
have on renewable energy utilization? 
(4) What is the potential of battery technology 
for grid-scale use nationwide? What is the potential 
impact of battery technology on the national grid ca-
pabilities? 
(5) How much economic activity associated with 
large-scale and behind-the-meter battery storage 
technology is located in the United States? How 
many jobs do these industries account for? 
(6) What policies other than the Renewable En-
ergy Investment Tax Credit have research and avail-
able data shown to promote renewable energy use 
and storage technology deployment by State and 
local governments or private end-users? 
SEC. 3115. FEDERAL PURCHASE REQUIREMENT. 
(a) DEFINITIONS.—Section 203(b) of the Energy 
Policy Act of 2005 (42 U.S.C. 15852(b)) is amended by 
striking paragraph (2) and inserting the following: 
‘‘(2) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electric energy, or thermal en-
ergy if resulting from a thermal energy project 
placed in service after December 31, 2014, gen-
erated from, or avoided by, solar, wind, biomass, 
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landfill gas, ocean (including tidal, wave, current, 
and thermal), geothermal, municipal solid waste (in 
accordance with subsection (e)), qualified waste heat 
resource, or new hydroelectric generation capacity 
achieved from increased efficiency or additions of 
new capacity at an existing hydroelectric project. 
‘‘(3) QUALIFIED WASTE HEAT RESOURCE.—The 
term ‘qualified waste heat resource’ means— 
‘‘(A) exhaust heat or flared gas from any 
industrial process; 
‘‘(B) waste gas or industrial tail gas that 
would otherwise be flared, incinerated, or vent-
ed; 
‘‘(C) a pressure drop in any gas for an in-
dustrial or commercial process; or 
‘‘(D) such other forms of waste heat as the 
Secretary determines appropriate.’’. 
(b) PAPER RECYCLING.—Section 203 of the Energy 
Policy Act of 2005 (42 U.S.C. 15852) is amended by add-
ing at the end the following: 
‘‘(e) PAPER RECYCLING.— 
‘‘(1) SEPARATE COLLECTION.—For purposes of 
this section, any Federal agency may consider elec-
tric energy generation purchased from a facility to 
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be renewable energy if the municipal solid waste 
used by the facility to generate the electricity is— 
‘‘(A) separately collected (within the mean-
ing of section 246.101(z) of title 40, Code of 
Federal Regulations, as in effect on the date of 
enactment of the North American Energy Secu-
rity and Infrastructure Act of 2015) from 
paper that is commonly recycled; and 
‘‘(B) processed in a way that keeps paper 
that is commonly recycled segregated from non- 
recyclable solid waste. 
‘‘(2) INCIDENTAL INCLUSION.—Municipal solid 
waste used to generate electric energy that meets the 
conditions described in paragraph (1) shall be con-
sidered renewable energy even if the municipal solid 
waste contains incidental commonly recycled paper. 
‘‘(3) NO EFFECT ON EXISTING PROCESSES.— 
Nothing in paragraph (1) shall be interpreted to re-
quire a State or political subdivision of a State, di-
rectly or indirectly, to change the systems, processes, 
or equipment it uses to collect, treat, dispose of, or 
otherwise use municipal solid waste, within the 
meaning of the Solid Waste Disposal Act (42 U.S.C. 
6901 et seq.), nor require a change to the regula-
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tions that implement subtitle D of such Act (42 
U.S.C. 6941 et seq.).’’. 
SEC. 3116. ENERGY PERFORMANCE REQUIREMENT FOR 
FEDERAL BUILDINGS. 
Section 543 of the National Energy Conservation 
Policy Act (42 U.S.C. 8253) is amended— 
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) ENERGY PERFORMANCE REQUIREMENT
FOR 
FEDERAL BUILDINGS.— 
‘‘(1) REQUIREMENT.—Subject to paragraph 
(2), each agency shall apply energy conservation 
measures to, and shall improve the design for the 
construction of, the Federal buildings of the agency 
(including each industrial or laboratory facility) so 
that the energy consumption per gross square foot 
of the Federal buildings of the agency in fiscal years 
2006 through 2017 is reduced, as compared with the 
energy consumption per gross square foot of the 
Federal buildings of the agency in fiscal year 2003, 
by the percentage specified in the following table: 
Percentage 
‘‘Fiscal Year 
Reduction 
2006 .............................................................................................
2007 .............................................................................................
2008 .............................................................................................
2009 .............................................................................................
2010 .............................................................................................
2011 .............................................................................................
2012 .............................................................................................
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Percentage 
‘‘Fiscal Year 
Reduction 
2013 .............................................................................................
2014 .............................................................................................
2015 .............................................................................................
2016 .............................................................................................
2017 .............................................................................................
36. 
‘‘(2) EXCLUSION FOR BUILDINGS WITH ENERGY 
INTENSIVE ACTIVITIES.— 
‘‘(A) IN
GENERAL.—An agency may ex-
clude from the requirements of paragraph (1) 
any building (including the associated energy 
consumption and gross square footage) in which 
energy intensive activities are carried out. 
‘‘(B) REPORTS.—Each agency shall iden-
tify and list in each report made under section 
548(a) the buildings designated by the agency 
for exclusion under subparagraph (A). 
‘‘(3) REVIEW.—Not later than December 31, 
2017, the Secretary shall— 
‘‘(A) review the results of the implementa-
tion of the energy performance requirements es-
tablished under paragraph (1); and 
‘‘(B) based on the review conducted under 
subparagraph (A), submit to Congress a report 
that addresses the feasibility of requiring each 
agency to apply energy conservation measures 
to, and improve the design for the construction 
of, the Federal buildings of the agency (includ-
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ing each industrial or laboratory facility) so 
that the energy consumption per gross square 
foot of the Federal buildings of the agency in 
each of fiscal years 2018 through 2030 is re-
duced, as compared with the energy consump-
tion per gross square foot of the Federal build-
ings of the agency in the prior fiscal year, by 
3 percent.’’; and 
(2) in subsection (f)— 
(A) in paragraph (1)— 
(i) by redesignating subparagraphs 
(E), (F), and (G) as subparagraphs (F), 
(G), and (H), respectively; and 
(ii) by inserting after subparagraph 
(D) the following: 
‘‘(E) 
ONGOING
COMMISSIONING.—The 
term ‘ongoing commissioning’ means an ongo-
ing process of commissioning using monitored 
data, the primary goal of which is to ensure 
continuous optimum performance of a facility, 
in accordance with design or operating needs, 
over the useful life of the facility, while meeting 
facility occupancy requirements.’’; 
(B) in paragraph (2), by adding at the end 
the following: 
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‘‘(C) ENERGY MANAGEMENT SYSTEM.—An 
energy manager designated under subparagraph 
(A) shall consider use of a system to manage 
energy use at the facility and certification of 
the facility in accordance with the International 
Organization 
for 
Standardization 
standard 
numbered 50001 and entitled ‘Energy Manage-
ment Systems’.’’; 
(C) by striking paragraphs (3) and (4) and 
inserting the following: 
‘‘(3) ENERGY AND WATER EVALUATIONS AND 
COMMISSIONING.— 
‘‘(A) EVALUATIONS.—Except as provided 
in subparagraph (B), effective beginning on the 
date that is 180 days after the date of enact-
ment of the North American Energy Security 
and Infrastructure Act of 2015, and annually 
thereafter, each energy manager shall complete, 
for each calendar year, a comprehensive energy 
and water evaluation and recommissioning or 
retrocommissioning for approximately 25 per-
cent of the facilities of that energy manager’s 
agency that meet the criteria under paragraph 
(2)(B) in a manner that ensures that an eval-
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uation of each facility is completed at least once 
every 4 years. 
‘‘(B) EXCEPTIONS.—An evaluation and re-
commissioning or recommissioning shall not be 
required under subparagraph (A) with respect 
to a facility that— 
‘‘(i) has had a comprehensive energy 
and water evaluation during the 8-year pe-
riod preceding the date of the evaluation; 
‘‘(ii)(I) has been commissioned, re-
commissioned, or retrocommissioned dur-
ing the 10-year period preceding the date 
of the evaluation; or 
‘‘(II) is under ongoing commissioning, 
recommissioning, or retrocommissioning; 
‘‘(iii) has not had a major change in 
function or use since the previous evalua-
tion and commissioning, recommissioning, 
or retrocommissioning; 
‘‘(iv) has been benchmarked with pub-
lic disclosure under paragraph (8) within 
the year preceding the evaluation; and 
‘‘(v)(I) based on the benchmarking, 
has achieved at a facility level the most re-
cent cumulative energy savings target 
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under subsection (a) compared to the ear-
lier of— 
‘‘(aa) the date of the most recent 
evaluation; or 
‘‘(bb) the date— 
‘‘(AA) of the most recent 
commissioning, recommissioning, 
or retrocommissioning; or 
‘‘(BB) on which ongoing 
commissioning, recommissioning, 
or retrocommissioning began; or 
‘‘(II) has a long-term contract in 
place guaranteeing energy savings at least 
as great as the energy savings target under 
subclause (I). 
‘‘(4) IMPLEMENTATION OF IDENTIFIED ENERGY 
AND WATER EFFICIENCY MEASURES.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the date of completion of each evaluation 
under paragraph (3), each energy manager 
may— 
‘‘(i) implement any energy- or water- 
saving measure that the Federal agency 
identified in the evaluation conducted 
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under paragraph (3) that is life-cycle cost 
effective; and 
‘‘(ii) bundle individual measures of 
varying paybacks together into combined 
projects. 
‘‘(B) MEASURES
NOT
IMPLEMENTED.— 
Each energy manager, as part of the certifi-
cation system under paragraph (7) and using 
guidelines developed by the Secretary, shall pro-
vide an explanation regarding any life-cycle 
cost-effective measures described in subpara-
graph (A)(i) that have not been implemented.’’; 
and 
(D) in paragraph (7)(C), by adding at the 
end the following: 
‘‘(iii) SUMMARY
REPORT.—The Sec-
retary shall make publicly available a re-
port that summarizes the information 
tracked under subparagraph (B)(i) by each 
agency and, as applicable, by each type of 
measure.’’. 
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SEC. 3117. FEDERAL BUILDING ENERGY EFFICIENCY PER-
FORMANCE 
STANDARDS; 
CERTIFICATION 
SYSTEM AND LEVEL FOR FEDERAL BUILD-
INGS. 
(a) DEFINITIONS.—Section 303 of the Energy Con-
servation and Production Act (42 U.S.C. 6832) is amend-
ed— 
(1) in paragraph (6), by striking ‘‘to be con-
structed’’ and inserting ‘‘constructed or altered’’; 
and 
(2) by adding at the end the following: 
‘‘(17) MAJOR RENOVATION.—The term ‘major 
renovation’ means a modification of building energy 
systems sufficiently extensive that the whole building 
can meet energy standards for new buildings, based 
on criteria to be established by the Secretary 
through notice and comment rulemaking.’’. 
(b) FEDERAL BUILDING EFFICIENCY STANDARDS.— 
Section 305 of the Energy Conservation and Production 
Act (42 U.S.C. 6834) is amended— 
(1) in subsection (a)(3)— 
(A) by striking ‘‘(3)(A) Not later than’’ 
and all that follows through the end of subpara-
graph (B) and inserting the following: 
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‘‘(3) REVISED FEDERAL BUILDING ENERGY EF-
FICIENCY
PERFORMANCE
STANDARDS; 
CERTIFI-
CATION FOR GREEN BUILDINGS.— 
‘‘(A) REVISED
FEDERAL
BUILDING
EN-
ERGY
EFFICIENCY
PERFORMANCE
STAND-
ARDS.— 
‘‘(i) IN GENERAL.—Not later than 1 
year after the date of enactment of the 
North American Energy Security and In-
frastructure Act of 2015, the Secretary 
shall establish, by rule, revised Federal 
building energy efficiency performance 
standards that require that— 
‘‘(I) new Federal buildings and 
alterations and additions to existing 
Federal buildings— 
‘‘(aa) meet or exceed the 
most recent revision of the IECC 
(in the case of residential build-
ings) or ASHRAE Standard 90.1 
(in the case of commercial build-
ings) as of the date of enactment 
of the North American Energy 
Security and Infrastructure Act 
of 2015; and 
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‘‘(bb) meet or exceed the en-
ergy provisions of State and local 
building codes applicable to the 
building, if the codes are more 
stringent than the IECC or 
ASHRAE Standard 90.1, as ap-
plicable; 
‘‘(II) unless demonstrated not to 
be life-cycle cost effective for new 
Federal buildings and Federal build-
ings with major renovations— 
‘‘(aa) the buildings be de-
signed to achieve energy con-
sumption levels that are at least 
30 percent below the levels estab-
lished in the version of the 
ASHRAE Standard or the IECC, 
as appropriate, that is applied 
under subclause (I)(aa), includ-
ing updates under subparagraph 
(B); and 
‘‘(bb) 
sustainable 
design 
principles are applied to the loca-
tion, siting, design, and construc-
tion of all new Federal buildings 
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and replacement Federal build-
ings; 
‘‘(III) if water is used to achieve 
energy efficiency, water conservation 
technologies shall be applied to the ex-
tent that the technologies are life- 
cycle cost effective; and 
‘‘(IV) if life-cycle cost effective, 
as compared to other reasonably avail-
able technologies, not less than 30 
percent of the hot water demand for 
each new Federal building or Federal 
building undergoing a major renova-
tion be met through the installation 
and use of solar hot water heaters. 
‘‘(ii) LIMITATION.—Clause (i)(I) shall 
not apply to unaltered portions of existing 
Federal buildings and systems that have 
been added to or altered. 
‘‘(B) UPDATES.—Not later than 1 year 
after the date of approval of each subsequent 
revision of ASHRAE Standard 90.1 or the 
IECC, as appropriate, the Secretary shall deter-
mine whether the revised standards established 
under subparagraph (A) should be updated to 
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