I 
111TH CONGRESS 
2D SESSION 
H. R. 5883 
To spur rapid and sustainable growth in renewable electricity generation 
in the United States through priority interconnection and renewable 
energy payments, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2010 
Mr. INSLEE (for himself, Mr. DELAHUNT, Mr. HONDA, Ms. MCCOLLUM, and 
Mr. GRIJALVA) introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees 
on Science and Technology and Ways and Means, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To spur rapid and sustainable growth in renewable electricity 
generation in the United States through priority inter-
connection and renewable energy payments, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Renewable Energy 
Jobs and Security Act’’. 
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SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Electric energy produced from renewable re-
sources helps to reduce greenhouse gas emissions, 
limits emissions of other pollutants regulated pursu-
ant to the Clean Air Act, enhances national energy 
security, and provides substantial economic benefits. 
(2) The need exists for the rapid expansion of 
low and zero carbon-emitting electric energy genera-
tion at a far greater pace than current levels. 
(3) Distributed electric energy generation is en-
ergy efficient, promotes electric grid stability, and 
reduces transmission system congestion during peri-
ods of peak demand. 
(4) A transition toward electric energy genera-
tion from renewable energy sources brings economic 
benefit to consumers by reducing their exposure to 
increasingly volatile fossil fuel markets. 
(5) Renewable energy payments, also known as 
‘‘feed-in tariffs’’, are a proven mechanism for accel-
erating the development of renewable energy in grid- 
connected areas. Feed-in-tariff programs are also 
complementary to Renewable Energy Standards. A 
renewable energy payment policy is intended to 
make it easier for a State to meet its applicable Re-
newable Energy Standard. 
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(6) By guaranteeing access to the electric grid 
and setting a favorable price per unit of power, feed- 
in tariffs ensure that renewable energy is a sound 
long-term investment for companies, for industry, 
and for individuals, and thereby creates a strong 
economic incentive for investing in renewable energy 
technologies. 
(7) The International Energy Agency, the Eu-
ropean Commission, and the United Kingdom’s 
Stern Review have determined that feed-in tariff 
policies in Germany, Spain, France, and other Euro-
pean Union countries have achieved larger renewable 
energy deployment compared to policies in other Eu-
ropean Union countries. 
(8) A renewable energy payment may capture 
cost reduction due to technology efficiencies and in-
novation (degression). 
SEC. 3. PURPOSES. 
The purposes of this Act are to— 
(1) enable the rapid and sustainable develop-
ment of distributed renewable electric energy genera-
tion in the United States, where the quality of a re-
newable energy resource may be naturally variable; 
(2) stimulate the development of new jobs and 
industry in the United States; 
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(3) create a stable and secure market for cap-
ital investments in renewable energy technologies; 
(4) reduce air and water pollution and related 
health problems and health-care expenditures; 
(5) help prevent greenhouse gas concentrations 
in the atmosphere from reaching levels that would 
cause dangerous global temperature increases of 
more than 2 degrees Celsius above pre-industrial lev-
els; 
(6) protect natural resources in the United 
States; 
(7) allow all citizens to participate in renewable 
electric energy generation; 
(8) reduce the price volatility and long-term 
costs of electric energy; 
(9) place the United States at the forefront of 
the global renewable energy revolution; 
(10) reduce the dependence of the United 
States on foreign sources of energy; 
(11) achieve these purposes using a financing 
mechanism that protects consumers from excessive 
or volatile electric bills; and 
(12) develop renewable energy sources to sup-
port new electric transportation options. 
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SEC. 4. DEFINITIONS. 
Section 3 of the Federal Power Act (16 U.S.C. 796) 
is amended by adding the following new paragraphs at the 
end: 
‘‘(30) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means energy generated from— 
‘‘(A) solar thermal, solar photovoltaic, 
wind, geothermal or marine and hydrokinetic 
renewable energy; 
‘‘(B) renewable biomass (as defined in sec-
tion 9001 of the Farm Security and Rural In-
vestment Act of 2002); 
‘‘(C) landfill gas; 
‘‘(D) biogas derived from farm waste; or 
‘‘(E) qualified hydropower. 
‘‘(31) SOLAR THERMAL.—The term ‘solar ther-
mal’ means energy derived by concentrating solar 
energy onto a collector which then transfers that en-
ergy to a working fluid to use, directly or indirectly, 
to operate a steam turbine system or Stirling engine 
that generates electric energy. 
‘‘(32) GEOTHERMAL ENERGY.—The term ‘geo-
thermal energy’ means energy derived from a geo-
thermal deposit (within the meaning of section 
613(e)(2) of the Internal Revenue Code of 1986). 
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‘‘(33) MARINE
AND
HYDROKINETIC
RENEW-
ABLE ENERGY.—The term ‘marine and hydrokinetic 
renewable energy’ means energy derived from— 
‘‘(A) waves, tides, and currents in oceans, 
estuaries, and tidal areas; 
‘‘(B) free flowing water in rivers, lakes, 
and streams; 
‘‘(C) free flowing water in an irrigation 
system, canal, or other man-made channel, in-
cluding projects that utilize nonmechanical 
structures to accelerate the flow of water for 
electric power production purposes; or 
‘‘(D) differentials in ocean temperature 
(ocean thermal energy conversion). 
‘‘(34) RENEWABLE
ENERGY
FACILITY.—The 
term ‘renewable energy facility’ means an electric 
energy generation unit owned and operated by any 
person (including a utility) that— 
‘‘(A) is placed in service after December 
31, 2008; 
‘‘(B) provides electric energy directly to 
the electric power grid; 
‘‘(C) uses renewable energy as its primary 
energy source; and 
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‘‘(D) has a nameplate capacity of not more 
than 20 megawatts. 
‘‘(35) NETWORK
UPGRADES.—The term ‘net-
work upgrades’ means additions or modifications to 
any system for the transmission or distribution of 
electric energy to accommodate renewable energy 
generated by a renewable energy facility and deliv-
ered to the system. 
‘‘(36) QUALIFIED
HYDROPOWER.—(A) The 
term ‘qualified hydropower’ means— 
‘‘(i) incremental hydropower genera-
tion that is achieved from increased effi-
ciency or additions of capacity made on or 
after January 1, 2009, at a hydroelectric 
facility that was placed in service before 
that date; or 
‘‘(ii) additions of capacity made on or 
after January 1, 2009, at an existing non-
hydroelectric dam, if— 
‘‘(I) the hydroelectric project in-
stalled on the nonhydroelectric dam is 
licensed by the Commission and meets 
all other applicable environmental, li-
censing, and regulatory requirements, 
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including applicable fish passage re-
quirements; 
‘‘(II) the nonhydroelectric dam 
was placed in service before the date 
of the enactment of this paragraph 
and operated for flood control, naviga-
tion, or water supply purposes and did 
not produce hydroelectric power be-
fore the date of the enactment of this 
paragraph; and 
‘‘(III) the hydroelectric project is 
operated so that the water surface ele-
vation at any given location and time 
that would have occurred in the ab-
sence of the hydroelectric project is 
maintained, subject to any license re-
quirements imposed under applicable 
law that change the water surface ele-
vation for the purpose of improving 
the environmental quality of the af-
fected waterway. 
‘‘(B) The Commission shall certify if a hydro-
electric project licensed at a nonhydroelectric dam 
meets the criteria described in subparagraph 
(A)(ii)(III). 
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‘‘(C) Nothing in this paragraph shall affect the 
standards under which the Commission issues li-
censes for and regulates hydropower projects under 
this Part. 
‘‘(37) ELECTRIC
ENERGY
INTENSIVE
FACIL-
ITY.—The term ‘electric energy intensive facility’ 
means— 
‘‘(A) any entity that has a annual electric 
energy usage greater than 10 gigawatt-hours; 
and 
‘‘(B) has an electric energy intensity great-
er than 8 percent. 
‘‘(38) ELECTRIC
ENERGY
INTENSITY.—The 
term ‘electric energy intensity’ means the ratio of 
the total costs associated with purchasing electric 
energy from a utility to the total value of shipments. 
‘‘(39) TOTAL
VALUE
OF
SHIPMENTS.—The 
term ‘total value of shipments’ has the meaning 
given such term by the United States Census Bu-
reau in its Annual Survey of Manufacturers.’’. 
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TITLE I—INTERCONNECTION 
SEC. 101. FEDERAL INTERCONNECTION STANDARDS FOR 
RENEWABLE ENERGY FACILITIES. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding the following new section after 
section 210: 
‘‘SEC. 
210A. 
EXPEDITED 
FEDERAL 
INTERCONNECTION 
STANDARDS FOR RENEWABLE ENERGY FA-
CILITIES. 
‘‘(a) FEDERAL STANDARDS.—In order to encourage 
the use of renewable energy facilities and to ensure the 
safety and reliability of renewable energy facilities and 
transmission systems interconnected with such facilities, 
not later than one year after the date of enactment of this 
section, the Commission shall propose rules establishing 
standards for the physical connection between— 
‘‘(1) renewable energy facilities; and 
‘‘(2) transmission facilities of transmitting utili-
ties subject to the jurisdiction of the Commission 
under this Part. 
‘‘(b) EXPEDITED
PROCEDURES.—The standards 
under this section shall include a separate expedited proce-
dure, consisting of an interconnection request, simplified 
procedures, and applicable terms and conditions, for re-
newable energy facilities up to 10 kilowatts that use an 
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inverter to interconnect to transmission facilities. The 
standards under this section shall also include a separate 
procedure that expedites interconnection for renewable en-
ergy facilities up to 2000 kilowatts. The Commission shall 
review its current Small Generator Interconnection Proce-
dure with an objective of further expediting and simpli-
fying the procedures. In designing such expedited proce-
dures, the Commission shall use best available Federal, 
State, and local standards. 
‘‘(c) FINAL RULE.—Not later than 90 days after the 
date of enactment of this section, and after notice and op-
portunity for comment, the Commission shall promulgate, 
and from time-to-time thereafter revise, final standards 
under this section. Such revisions shall take into account 
changes in the underlying standards and technologies. 
Such revisions shall be made available to State regulatory 
authorities to consider prior to final promulgation. 
‘‘(d) SAFETY, RELIABILITY, PERFORMANCE, AND 
COST.—The standards under this section shall establish 
measures for the safety and reliability of affected equip-
ment and transmission systems as may be appropriate. 
Such standards shall be consistent with the reliability 
standards under section 215 and all applicable safety and 
performance standards established by the national elec-
trical code, the Institute of Electrical and Electronics En-
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gineers, Underwriters Laboratories, or the American Na-
tional Standards Institute, and the North American Elec-
tric Reliability Council, yet constitute the minimum cost 
and technical burdens to the interconnecting renewable en-
ergy facility as the Commission shall, by rule, prescribe. 
Standards for the purchase of electric energy from a re-
newable energy facility shall also ensure that such pur-
chases do not affect the reliability of any person pur-
chasing electric energy from the renewable energy facility. 
‘‘(e) ADDITIONAL CHARGES.—The standards under 
this section shall prohibit the imposition of additional 
charges by the owners or operators of transmission sys-
tems for equipment or services for interconnection that are 
additional to those necessary to achieve the safety and per-
formance standards under subsection (d). 
‘‘(f) GRID INTERCONNECTION-RELATED NETWORK 
UPGRADES.—The standards under this section shall pro-
vide the following: 
‘‘(1) The obligation to provide priority inter-
connection for renewable energy facilities (as re-
quired under subsection (g)) shall apply to: 
‘‘(A) Any transmitting utility providing 
transmission service subject to the jurisdiction 
of the Commission to electric utilities in a retail 
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service territory that includes the renewable en-
ergy facility if— 
‘‘(i) such transmitting utility is in 
possession of transmission facilities tech-
nically suitable to receive electric energy 
from the renewable energy facility; and 
‘‘(ii) there is no other transmission or 
distribution facility with a technically and 
economically 
more 
suitable 
connection 
point. 
‘‘(B) 
Transmission 
facilities 
shall 
be 
deemed to be technically suitable under sub-
paragraph (A) even if feeding in the electric en-
ergy requires the transmitting utility to up-
grade its transmission facilities at a reasonable 
economic expense and without risk to grid sta-
bility, as determined by the Commission. In 
such a case, the transmitting utility shall up-
grade its transmission facilities without undue 
delay, if so requested by the owner or operator 
of an interconnecting renewable energy facility. 
‘‘(C) The obligation to upgrade the trans-
mission facilities shall apply to all technical fa-
cilities required for operating the transmission 
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system and to all connecting installations which 
are owned by the transmitting utility. 
‘‘(2) EXCEPTIONS.—The standards under this 
section shall not require any transmitting utility to 
interconnect with renewable energy facilities or to 
provide priority access to available transfer capa-
bility on the transmission system if the transmitting 
utility is already committed through long-term con-
tracts to full capacity of its load and such utility has 
no ability to transmit any new generation from re-
newable energy facilities to any other electric utility. 
‘‘(3) COSTS
OF
NETWORK
UPGRADES.—The 
standards under this section shall provide that all 
prudently incurred costs associated with network up-
grades to accommodate new renewable energy facili-
ties for the purchase and transmission of electric en-
ergy produced from renewable energy facilities shall 
be initially borne by the electric utility or transmit-
ting utility. The electric utility or transmitting util-
ity shall be reimbursed for such costs through the 
regional cost sharing mechanism under section 224. 
‘‘(g) PRIORITY OF ORDERS.—Any renewable energy 
facility may apply to the Commission for an order requir-
ing the interconnection of such facility with the trans-
mission system of any transmitting utility in accordance 
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with the standards under this section, and the Commission 
shall issue such an order after notice and opportunity for 
hearing in accordance with section 210(b). The Commis-
sion shall give priority to the consideration of applications 
from renewable energy facilities under this section over ap-
plications for orders under section 210 and shall ensure 
that applications by renewable energy facilities are given 
priority interconnection and priority access to available 
transfer capability on the transmission system over appli-
cations from facilities that are not renewable energy facili-
ties. 
‘‘(h) INTERCONNECTION CLUSTERING.—To facilitate 
the objectives of subsection (g) relating to interconnection 
and to reduce backlogs in the interconnection queue, the 
Commission may consider a clustering approach to the 
interconnection of electric generation facilities with a 
nameplate capacity greater than 2 megawatts. Under such 
interconnection clustering procedures, requests for inter-
connection that are placed within a 6-month period may 
be eligible for concurrent review and interconnection. 
‘‘(i) RELATIONSHIP TO EXISTING LAW REGARDING 
INTERCONNECTION.—Except as otherwise provided in this 
section, nothing in this section affects the application of 
section 210 of this Part or section 111(d)(15) (relating 
to interconnection) of the Public Utility Regulatory Poli-
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cies Act of 1978. Nothing in this section shall be inter-
preted as an expansion of the jurisdiction of the Commis-
sion with respect to the facilities subject to the jurisdiction 
of the Commission. 
‘‘(j) EFFECTIVE DATE.—This section shall take ef-
fect with respect to applications submitted to the Commis-
sion under subsection (g) after the effective date of regula-
tions promulgated under this section.’’. 
SEC. 102. ADOPTION OF CERTAIN STANDARDS. 
(a) INTERCONNECTION NOT SUBJECT TO FEDERAL 
POWER ACT JURISDICTION.—Section 113(b) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2623(b)) is amended by adding the following at the end 
thereof: 
‘‘(6) INTERCONNECTION
STANDARDS.—Each 
electric utility shall adopt such standards for the 
interconnection with renewable energy facilities as 
are necessary as to ensure that renewable energy fa-
cilities are given priority interconnection and priority 
access to available capacity on the transmission and 
distribution system of such utility over electric en-
ergy from facilities that do not generate electric en-
ergy from renewable energy and permit any renew-
able energy facility to apply to the State regulatory 
authority for an order requiring the interconnection 
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of such facility with the system of the electric utility. 
Such standards shall be based on the standards pro-
mulgated by the Commission under section 210A of 
the Federal Power Act. Such standards shall not af-
fect the application of section 111(d)(15).’’. 
(b) CONFORMING AMENDMENTS.—Section 113 of 
such Act is amended by adding the following at the end 
of subsection (a): 
‘‘For purposes of applying this section with respect to the 
standard under paragraph (6) of subsection (b), in lieu 
of the 2-year period referred to in this subsection there 
shall be substituted a period of one year after the date 
on which a rule is prescribed or revised by the Commission 
under section 210A of the Federal Power Act.’’. 
TITLE II—RENEWABLE ENERGY 
PAYMENTS 
SEC. 201. RENEWABLE ENERGY PAYMENT STUDY AND RE-
PORT. 
(a) DEFINITIONS.— 
(1) The term ‘‘renewable energy facility’’ has 
the meaning given such term in section 3 of the 
Federal Power Act, as amended by section 4 of this 
Act. 
(2) The term ‘‘Commission’’ means the Federal 
Energy Regulatory Commission. 
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(b) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, and every 2 years there-
after, the Secretary of Energy, acting through the Na-
tional Renewable Energy Laboratory, shall transmit to 
Congress and to the Commission a report that outlines 
details of the investment market, as it relates to renewable 
energy project financing, including identification of re-
maining barriers to investment and potential policy solu-
tions to address such barriers. Additionally, such a report 
shall include maps of national renewable energy resources 
and cost assessments for renewable energy facility devel-
opment with respect to all available technologies. Such a 
report may draw from reviews and assessments conducted 
pursuant to section 201 of the Energy Policy Act of 2005 
(42 U.S.C. 15851). Such a report shall include each of 
the following: 
(1) Maps of renewable energy resource avail-
ability based on the best available data and at the 
highest spatial resolution necessary to help identify 
the best sites for the development of renewable en-
ergy facilities. 
(2) Recommendations for minimum tariff rates 
that should be paid during each of the following 2 
years to renewable energy facility operators to pro-
vide for reasonable profits for renewable energy fa-
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cility owners (with consideration to development 
costs, including costs of manufacturing, installation, 
operation, maintenance, taxes, financing, and legal 
expenses) adjusted by an appropriate annual tariff 
degression, with consideration of the following: 
(A) The maps described in paragraph (1). 
(B) The goal to provide for the profitable 
development of renewable energy facilities that 
use available commercialized technologies and 
operate within regions that, on average, experi-
ence the top 30th percentile of renewable en-
ergy resource potential in the United States. 
(C) The best available scientific and elec-
tric energy market data, including data made 
available in the development of the reports 
under this section. 
(D) The renewable energy technology mar-
ket, including advancements in research, devel-
opment, deployment, and innovation. 
(E) The percentage of renewable power 
generation for each technology that can be reli-
ably accommodated on the electric grid. 
(3) A description of the system benefits (includ-
ing distributed generation risk, avoidance benefits, 
and reduced distribution and transmission costs) ex-
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perienced by utilities as a result of entering into a 
standard contract pursuant to section 210B(e) of 
the Federal Power Act (as added by section 202 of 
this Act) or 113(b)(7) of the Public Utilities Regu-
latory Policies Act of 1978 (as added by section 202 
of this Act). 
(4) Recommendations to the Commission re-
garding new renewable energy technologies that may 
be considered eligible for future power purchase 
agreements under the rules under section 210B of 
the Federal Power Act, as added by section 202 of 
this Act. 
(5) Other recommendations to the Commission 
and to State regulatory authorities regarding electric 
energy reliability, supporting infrastructure (includ-
ing smart grid technologies and electric energy stor-
age options) technical, economic, legal, or safety con-
siderations that may be acted upon in order to bet-
ter achieve the purposes of this Act. 
(6) Any other information that renewable en-
ergy facility operators shall, upon request, provide to 
the Commission, the State regulatory authorities, 
and the Secretary of Energy (acting through the 
National Renewable Energy Laboratory) that may 
be relevant in performing duties under this Act. 
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(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy such sums as may be necessary to carry out this sec-
tion. 
SEC. 202. GUARANTEED POWER PURCHASE AGREEMENTS. 
(a) PUBLIC UTILITIES REGULATED UNDER
THE 
FEDERAL POWER ACT.—Part II of the Federal Power Act 
is amended by adding the following new section after sec-
tion 210A (as added by this Act): 
‘‘SEC. 210B. RENEWABLE ENERGY PAYMENTS. 
‘‘(a) RENEWABLE ENERGY PAYMENT RULES.—Not 
later than 2 years after the date of enactment of the Re-
newable Energy Jobs and Security Act, the Commission 
shall prescribe, and from time-to-time thereafter revise, 
such rules as it determines necessary to encourage the 
purchase of electric energy by public utilities from renew-
able energy facilities. The rules shall require public utili-
ties to offer to purchase electric energy from renewable 
energy facilities in accordance with this section at uniform 
national rates established pursuant to this section. Each 
such public utility shall purchase electric energy from re-
newable energy facilities on a priority basis, and each 
transmitting utility shall transmit such energy to the ex-
tent practicable on a priority basis. Such rules shall be 
prescribed, after consideration of recommendations made 
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in reports under section 201 of the Renewable Energy 
Jobs and Security Act, after consultation with representa-
tives of State regulatory agencies having ratemaking au-
thority for electric utilities, and after public notice and a 
reasonable opportunity for interested persons (and State 
agencies) to submit data, views, and arguments. Such 
rules may not authorize a renewable energy facility to 
make any sale for purposes other than resale. 
‘‘(b) EFFECTIVE DATE.—The rules under this sec-
tion shall apply only to contracts for the purchase and sale 
of electric energy from renewable energy facilities entered 
into after the effective date of such rules and before the 
date that is 20 years after such effective date. 
‘‘(c) RENEWABLE ENERGY PAYMENT RATES
FOR 
PURCHASE OF POWER.— 
‘‘(1) PURPOSES.—The purposes of this sub-
section are to— 
‘‘(A) provide for the development of renew-
able energy facilities that use available commer-
cialized technologies; and 
‘‘(B) set rates at a level that will— 
‘‘(i) provide reasonable rates of return 
to the owners or operators of renewable en-
ergy facilities sited within regions that, on 
average, experience the top 30th percentile 
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of a renewable energy resource potential in 
the United States; 
‘‘(ii) prevent excessive profits for re-
newable energy facility owners and opera-
tors; 
‘‘(iii) minimize upward pressure on re-
newable energy market prices; and 
‘‘(iv) prevent unnecessary costs to 
ratepayers. 
‘‘(2) UNIFORM
NATIONAL
RATES.—Except as 
otherwise specified in this section, the rates paid for 
the purchase of electric energy from renewable en-
ergy facilities under contracts entered into under 
this section shall be established on a uniform na-
tional basis by the Commission by rule. Such rates 
shall be— 
‘‘(A) fixed throughout the duration of a 
contract extending for a period of at least 20 
years; 
‘‘(B) no less than the amount needed for 
development plus a reasonable profit, with con-
sideration to— 
‘‘(i) the renewable energy technology 
used; 
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‘‘(ii) the year the installation is placed 
into service; and 
‘‘(iii) the size of the renewable energy 
facility. 
‘‘(3) REASONABLE RATES OF RETURN.—Such 
rates shall be set to provide a nominal, post-tax 
project internal rate of return of not less than 8 per-
cent after recovery of all operating and maintenance 
costs consistent with the purposes of this subsection. 
‘‘(4) BONUS
TARIFFS.—Bonus rates may be 
paid to provide additional incentives for each of the 
following purposes: 
‘‘(A) Renewable energy facility develop-
ment in areas where distributed generation re-
duces grid congestion and improves overall grid 
efficiency. 
‘‘(B) For energy delivered from renewable 
energy facilities on peak. 
‘‘(C) To renewable energy facilities with 
onsite energy storage capability that signifi-
cantly increases the capacity factor or avail-
ability. 
‘‘(D) To renewable energy facilities that 
deliver electric energy combined with usable 
heating, cooling, or a combination of both. 
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‘‘(E) To renewable energy facilities owned 
and operated by American Indian, Alaskan Na-
tive, or other tribal communities. 
‘‘(5) PERIODIC
ADJUSTMENT.—The Commis-
sion shall review the rates under this subsection 
every 2 years and adjust such rates applicable to 
prospective contracts in accordance with paragraph 
(2) and in a manner that is consistent with the pur-
poses of this subsection. Such rates shall be pub-
lished not later than 8 months prior to the date at 
which they become applicable. 
‘‘(6) DEGRESSION RATES.—For new facilities 
commencing construction in each year after the first 
year for which tariffs under this section applied to 
any facility, the tariffs rates paid under the rules 
under this subsection may be reduced relative to the 
previous year in accordance with annual tariff de-
gression rates. Such degression rate shall be specific 
to each technology. Degression rates shall be pre-
determined and shall not apply with respect to facili-
ties already subject to a contract for a renewable en-
ergy payment. 
‘‘(7) PRIORITY.—The rules under this section 
shall require each public utility to purchase and each 
transmitting utility to transmit renewable energy 
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from renewable energy facilities to the extent prac-
ticable on a priority basis. Such requirement shall 
not apply if the public utility or transmitting utility 
is already committed through long-term contracts to 
full capacity of its load and such utility has no abil-
ity to transmit any new generation from renewable 
energy facilities to a neighboring utility. A public 
utility shall not place priority on the purchase of 
electric energy from renewable energy facilities that 
are owned and operated by such utility over electric 
energy from renewable energy facilities owned and 
operated by customers. 
‘‘(d) RELIABILITY.—The rules under this section 
shall include provisions respecting minimum reliability of 
renewable energy facilities (including reliability of such fa-
cilities during emergencies) and rules respecting reliability 
of electric energy service to be available to such facilities 
from public utilities during emergencies. The rules shall 
also insure that such purchases do not affect the reliability 
of the purchasing public utility. 
‘‘(e) STANDARD CONTRACTS.—The Commission shall 
approve a standard contract to be used in all power pur-
chase agreements under this section. Such contract shall 
include the prices paid for each kilowatt-hour generated, 
including bonus tariffs, and the duration of the contract. 
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In creating such contract, the Commission shall consider 
the expedited procedures outlined in section 210A(b) in 
order to design a contract that minimizes administrative 
burdens. The Commission shall provide public utilities 
subject to the jurisdiction of the Commission with stand-
ard contract not later than 18 months after the date of 
enactment of this subsection. 
‘‘(f) RELATIONSHIP TO OTHER FEDERAL AND STATE 
STANDARDS, REQUIREMENTS, TAXES, AND BENEFITS.— 
Except for accelerated tax depreciation, no person who 
elects to sell power under a contract under this section 
shall be entitled to any tax credits or deductions associated 
with renewable energy production under Federal tax laws 
or to any other incentives or benefits under any Federal 
law associated with renewable energy. Any State or utility 
may provide additional incentives to promote the deploy-
ment of renewable energy facilities and, except as provided 
in subsection (g) with respect to net metering, any renew-
able energy facility may utilize such benefits. No public 
utility making purchases of electric energy under a con-
tract under this section shall be exempt from any State 
law requiring minimum purchase percentages of renewable 
energy. Any credit or allowance for renewable energy gen-
eration needed to meet any State or Federal law requiring 
minimum purchases of renewable energy shall belong to 
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the public utility that purchases electric energy under a 
contract under this section unless otherwise specified in 
State or Federal law. 
‘‘(g) NET METERING.—If electric energy generated 
by any renewable energy facility is eligible for net meter-
ing treatment under State law, all electric energy gen-
erated by such facility shall be subject to such State law 
in lieu of this section unless the owner or operator of the 
facility makes an election for such electric generation to 
be subject to this section. For renewable energy facilities 
interconnecting to public utilities within the jurisdiction 
of the Commission, the election shall be submitted to the 
Commission in such form and at such time as the Com-
mission shall prescribe by rule. The election shall include 
notice to the appropriate State agency administering the 
State net metering program. 
‘‘(h) PUBLIC REPORTING REQUIREMENTS.—By Sep-
tember 30 of each calendar year after 2010, each public 
utility shall publicly report to the Energy Information Ad-
ministration without undue delay the following informa-
tion recorded during the previous calendar year: 
‘‘(1) The network upgrade costs associated with 
compliance with the standards under section 210A 
of this Act. 
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‘‘(2) The total quantity of electric energy gen-
erated by a specific renewable energy facility and the 
total amount paid to each such renewable energy fa-
cility operator in accordance with the rules under 
this section. 
‘‘(3) The total quantity of electric energy gen-
erated by each renewable energy technology and the 
total amounts paid to renewable energy facility oper-
ators that use each such renewable energy tech-
nology in accordance with the rules under this sec-
tion. 
‘‘(4) The total number of renewable energy fa-
cilities of each technology in the area in which the 
public utility supplies electric energy. 
‘‘(5) For each technology, the amount of growth 
in capacity installed relative to the number of new 
interconnections in the area in which the public util-
ity supplies electric energy. 
‘‘(6) The total amount of electric energy gen-
erated by renewable energy facilities and from other 
renewable energy sources in the area in which the 
public utility supplies electric energy. 
‘‘(7) The location of new renewable energy facil-
ity development relative to population density in the 
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area in which the public utility supplies electric en-
ergy. 
‘‘(i) REPORTS BY THE ENERGY INFORMATION AD-
MINISTRATION.—In each of the first 2 years and every 2 
years thereafter after the date of enactment of this sec-
tion, the Secretary of Energy, acting through the Energy 
Information Administration, shall make public and submit 
to Congress a report that shall include the number of new 
renewable energy facilities in each State and the environ-
mental benefits and effects of the addition of such facili-
ties. There are authorized to be appropriated to the Sec-
retary of Energy such sums as may be necessary to carry 
out this subsection. 
‘‘(j) EXEMPTIONS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), sales of electric energy by renewable en-
ergy facilities under this section are exempt from 
regulation under other provisions of this Part and 
from State laws and regulations respecting the rates, 
or respecting the financial or organizational regula-
tion, of electric utilities, or from any combination of 
the foregoing. 
‘‘(2) EXCEPTIONS.—No renewable energy facil-
ity shall be exempt under this subsection from— 
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‘‘(A) the provisions of section 210, 211, or 
212 of this Act or the necessary authorities for 
enforcement of any such provision under this 
Act; or 
‘‘(B) any license or permit requirement 
under part I of this Act, any provision under 
this Act related to such a license or permit re-
quirement, or the necessary authorities for en-
forcement of any such requirement. 
‘‘(k) FEDERAL CONTRACTS.—No contract between a 
Federal agency and any electric utility for the sale of elec-
tric energy by such Federal agency for resale which is en-
tered into after the date of the enactment of this sub-
section may contain any provision that will have the effect 
of preventing the implementation of any rule under this 
section with respect to such utility. Any provision in any 
such contract which has such effect shall be null and 
void.’’. 
(b) ELECTRIC
UTILITIES
NOT
REGULATED
BY 
FERC.—Section 113 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2623), as amended, is 
further amended as follows: 
(1) By adding the following new paragraph at 
the end of subsection (b): 
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‘‘(7) STANDARD CONTRACTS FOR POWER PUR-
CHASES FROM RENEWABLE ENERGY FACILITIES.— 
Each electric utility shall purchase electric energy 
from renewable energy facilities (as defined in the 
Federal Power Act) under standard contracts for a 
20-year period with rates that are the same as in 
the case of purchases of electric energy under con-
tracts under section 210B of the Federal Power Act 
by public utilities subject to the jurisdiction of the 
Commission under that Act.’’. 
(2) By adding the following at the end of sub-
section (a): 
‘‘For purposes of applying this section in the case of the 
standard under paragraph (7) of subsection (b), in lieu 
of the 2-year period referred to in this section there shall 
be substituted a period of one year after the date on which 
renewable energy payment rules are prescribed or revised 
by the Commission under section 210B of the Federal 
Power Act.’’. 
(c) FEDERAL CONTRACTS
FOR RENEWABLE EN-
ERGY.—Notwithstanding section 501(b)(1)(B) of title 40, 
United States Code, a contract for the acquisition of elec-
tric energy generated from a renewable energy resource 
for the Federal Government may be made for a period 
of not more than 20 years. 
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SEC. 203. REGIONAL COST SHARING MECHANISM. 
Part II of the Federal Power Act is amended by add-
ing the following new section at the end thereof: 
‘‘SEC. 224. REGIONAL COST SHARING MECHANISM. 
‘‘(a) PURPOSE.—The purpose of this section is to fi-
nance the power purchase agreements under the rules 
under section 210B (and under the corresponding stand-
ard required by section 113(b)(7) of the Public Utility 
Regulatory Policies Act of 1978) and interconnection and 
network upgrades referred to in section 210A (and under 
the corresponding standard under section 113(b)(6) of the 
Public Utility Regulatory Policies Act of 1978) by creating 
a cost sharing mechanism that equally distributes addi-
tional costs of compliance with the Renewable Energy 
Jobs and Security Act to electric energy customers on a 
regional basis. 
‘‘(b) COST SHARING.—Not later than 1 year after the 
date of enactment of this section, the Commission shall, 
in consultation with State regulatory authorities and non-
regulated utilities, design a regional cost redistribution 
mechanism that shall consist of a nonbypassable system 
benefits charge payable by every end-use consumer of an 
electric utility to the electric utility. Revenue from such 
charge shall be transferred to a national renewable energy 
corporation to be referred to as the ‘RenewCorps’ to be 
established by such utilities and approved by the Commis-
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sion for purposes of this section. The Commission shall 
design a system benefits charge, determine the amount of 
such charge, and establish a cost distribution mechanism 
so as to achieve each of the following: 
‘‘(1) Full reimbursement to electric utilities and 
transmitting utilities for the costs associated with 
network upgrades and interconnection (including the 
carrying costs of capital while awaiting reimburse-
ment) carried out in accordance with the standards 
under section 210A of this Act and section 
113(b)(6) of the Public Utility Regulatory Policies 
Act of 1978 and for the additional costs of the 
power purchase requirements of section 210B of this 
Act and section 113(b)(7) of the Public Utility Reg-
ulatory Policies Act of 1978. 
‘‘(2) Ensure that systems benefits charges are 
based on energy usage. 
‘‘(3) Ensure that monthly charges shall apply 
to customers according to projected program costs. 
‘‘(4) Ensure that monthly charges to individual 
households is no greater than $3 per month. 
‘‘(5) Ensure relief, but not exemption, for elec-
tric energy intensive facilities, by including a provi-
sion requiring such facilities to submit an applica-
tion for relief, including proof of electric energy 
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usage (such as contracts for the supply of electric 
energy and electric energy bills for the previous fis-
cal year) and proof of the value of shipments (by 
supplying financial data from the previous fiscal 
year compiled by a certified accountant). 
‘‘(c) COMPLIANCE WITH ACCOUNTING RULES.— 
RenewCorps shall comply with such accounting rules and 
other rules as may be established by the Commission. 
‘‘(d) REGIONAL DISBURSEMENT OF FUNDS.— 
‘‘(1) REIMBURSEMENT.—Funds received by 
RenewCorps from the systems benefits charge under 
this section shall be disbursed to electric utilities and 
transmitting utilities to provide reimbursement for— 
‘‘(A) the costs associated with network up-
grades and interconnection carried out in ac-
cordance with the standards under section 
210A and section 113(b)(6) of the Public Util-
ity Regulatory Policies Act of 1978; and 
‘‘(B) the additional costs of the power pur-
chase requirements of section 210B and section 
113(b)(7) of the Public Utility Regulatory Poli-
cies Act of 1978 to reimburse such utilities for 
the full additional cost of such power purchase 
agreements (as adjusted under paragraph (3)). 
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‘‘(2) QUARTERLY DISBURSEMENT.—Funds re-
ceived by RenewCorps from the systems benefits 
charge under this section shall be disbursed on a 
quarterly basis. The Renew Corps shall distribute 
such revenue to electric utilities within each region 
of the North American Electric Reliability Corpora-
tion (NERC) in the United States in proportion to 
the revenue raised within each such region. 
‘‘(3) AVOID DOUBLE COST RECOVERY.—Reim-
bursements from RenewCorps to electric utilities and 
transmitting utilities for costs associated with com-
pliance with the Renewable Energy Jobs and Secu-
rity Act may not also be eligible for recovery by any 
other means.’’. 
SEC. 204. CONSISTENCY WITH ENVIRONMENTAL LAWS. 
Nothing in this Act (including the amendments made 
by this Act) shall be deemed to waive any existing Federal 
or State environmental protection provision, including the 
requirements of any of the following: 
(1) The National Forest Management Act of 
1976 (16 U.S.C. 472a et seq.). 
(2) The Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.). 
(3) The National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.). 
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(4) The Federal Water Pollution Control Act 
(33 U.S.C. 1251 et seq.). 
(5) The Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1701 et seq.). 
Æ 
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