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able within the United States, including solar, wind, bio-
mass, ocean, geothermal, and hydroelectric energy resources, 
and undertake new assessments as necessary, taking into 
account changes in market conditions, available tech-
nologies, and other relevant factors. 
(b) CONTENTS OF REPORTS.—Not later than 1 year 
after the date of enactment of this Act, and each year there-
after, the Secretary shall publish a report based on the as-
sessment under subsection (a). The report shall contain—
(1) a detailed inventory describing the available 
amount and characteristics of the renewable energy 
resources; and 
(2) such other information as the Secretary be-
lieves would be useful in developing such renewable 
energy resources, including descriptions of sur-
rounding terrain, population and load centers, near-
by energy infrastructure, location of energy and water 
resources, and available estimates of the costs needed 
to develop each resource, together with an identifica-
tion of any barriers to providing adequate trans-
mission for remote sources of renewable energy re-
sources to current and emerging markets, rec-
ommendations for removing or addressing such bar-
riers, and ways to provide access to the grid that do
327
not unfairly disadvantage renewable or other energy 
producers. 
Subtitle G—Market Transparency, 
Round Trip Trading Prohibi-
tion, and Enforcement 
SEC. 7081. MARKET TRANSPARENCY RULES. 
Part II of the Federal Power Act is amended by adding 
the following new section at the end thereof: 
‘‘SEC. 219. MARKET TRANSPARENCY RULES. 
‘‘(a) COMMISSION RULES.—Not later than 180 days 
after the date of enactment of this section, the Commission 
shall issue rules establishing an electronic information sys-
tem to provide the Commission and the public with access 
to such information as is necessary or appropriate to facili-
tate price transparency and participation in markets sub-
ject to the Commission’s jurisdiction. Such systems shall 
provide information about the availability and market 
price of sales of electric energy at wholesale in interstate 
commerce and transmission of electric energy in interstate 
commerce to the Commission, State commissions, buyers 
and sellers of wholesale electric energy, users of trans-
mission services, and the public on a timely basis. The Com-
mission shall have authority to obtain such information 
from any person, and any entity described in section 201(f),
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who sells electric energy at wholesale in interstate commerce 
or provides transmission services in interstate commerce. 
‘‘(b) EXEMPTIONS.—The Commission shall exempt 
from disclosure information it determines would, if dis-
closed, (1) be detrimental to the operation of an effective 
market; or (2) jeopardize system security. This section shall 
not apply to an entity described in section 212(k)(2)(B) 
with respect to transactions for the purchase or sale of 
wholesale electric energy and transmission services within 
the area described in section 212(k)(2)(A).’’. 
SEC. 7082. PROHIBITION ON ROUND-TRIP TRADING. 
Part II of the Federal Power Act is amended by adding 
the following new section at the end thereof: 
‘‘SEC. 220. PROHIBITION ON ROUND-TRIP TRADING. 
‘‘(a) PROHIBITION.—It shall be a violation of this Act 
for any person, and any entity described in section 201(f), 
willfully and knowingly to enter into any contract or other 
arrangement to execute a round-trip trade for the purchase 
or sale of electric energy at wholesale. 
‘‘(b) DEFINITION OF ROUND-TRIP TRADE.—For the 
purposes of this section, the term ‘round-trip trade’ means 
a transaction, or combination of transactions, in which a 
person or other entity—
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‘‘(1) enters into a contract or other arrangement 
to purchase from, or sell to, any other person or other 
entity electric energy at wholesale; 
‘‘(2) simultaneously with entering into the con-
tract described in paragraph (1), arranges a finan-
cially offsetting trade with such other person or entity 
for the same quantity of electric energy so that, collec-
tively, the purchase and sale transactions in them-
selves result in no financial gain or loss; and 
‘‘(3) has a specific intent to distort reported reve-
nues, trading volumes, or prices.’’. 
SEC. 7083. CONFORMING CHANGES. 
Section 201(e) of the Federal Power Act is amended 
by striking ‘‘or 212’’ and inserting ‘‘212, 215, 216, 217, 
218, 219, or 220’’. Section 201(b)(2) of such Act is amended 
by striking ‘‘and 212’’ and inserting ‘‘212, 215, 216, 217, 
218, 219, and 220’’. 
SEC. 7084. ENFORCEMENT. 
(a) COMPLAINTS.—Section 306 of the Federal Power 
Act (16 U.S.C. 825e) is amended by—
(1) inserting ‘‘electric utility,’’ after ‘‘Any per-
son,’’; and 
(2) inserting ‘‘, transmitting utility,’’ after ‘‘li-
censee’’ each place it appears.
330
(b) REVIEW OF COMMISSION ORDERS.—Section 313(a) 
of the Federal Power Act (16 U.S.C. 8251) is amended by 
inserting ‘‘electric utility,’’ after ‘‘person,’’ in the first place 
it appears and by striking ‘‘any person unless such person’’ 
and inserting ‘‘any entity unless such entity’’. 
(c) CRIMINAL PENALTIES.—Section 316 of the Federal 
Power Act (16 U.S.C. 825o) is amended—
(1) in subsection (a), by striking ‘‘$5,000’’ and 
inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’ 
and inserting ‘‘five years’’; 
(2) in subsection (b), by striking ‘‘$500’’ and in-
serting ‘‘$25,000’’; and 
(3) by striking subsection (c). 
(d) CIVIL PENALTIES.—Section 316A of the Federal 
Power Act (16 U.S.C. 825–1) is amended—
(1) in subsections (a) and (b), by striking ‘‘sec-
tion 211, 212, 213, or 214’’ each place it appears and 
inserting ‘‘Part II’’; and 
(2) in subsection (b), by striking ‘‘$10,000’’ and 
inserting ‘‘$1,000,000’’. 
Subtitle H—Consumer Protections 
SEC. 7091. REFUND EFFECTIVE DATE. 
Section 206(b) of the Federal Power Act (16 U.S.C. 
824e(b)) is amended by—
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(1) striking ‘‘the date 60 days after the filing of 
such complaint nor later than 5 months after the ex-
piration of such 60-day period’’ in the second sen-
tence and inserting ‘‘the date of the filing of such 
complaint nor later than 5 months after the filing of 
such complaint’’; 
(2) striking ‘‘60 days after’’ in the third sentence 
and inserting ‘‘of’’; 
(3) striking ‘‘expiration of such 60-day period’’ 
in the third sentence and inserting ‘‘publication 
date’’; and 
(4) in the fifth sentence after ‘‘rendered by the’’ 
insert ‘‘date 60 days after the’’. 
SEC. 7092. JURISDICTION OVER INTERSTATE SALES. 
(a) SCOPE OF AUTHORITY.—Section 206 of the Federal 
Power Act (16 U.S.C. 824e) is amended by adding the fol-
lowing new subsection at the end thereof: 
‘‘(e)(1) If an entity that is not a public utility (includ-
ing an entity referred to in section 201(f)) voluntarily 
makes a spot market sale of electric energy and such sale 
violates Commission rules in effect at the time of such sale, 
such entity shall be subject to the Commission’s refund au-
thority under this section with respect to such violation. 
‘‘(2) This section shall not apply to any entity that 
is either—
333
(c) UNIFORM INVESTIGATION AUTHORITY.—Section 
307(a) of the Federal Power Act (16 U.S.C. 825f(a)) is 
amended as follows: 
(1) By inserting ‘‘, electric utility, transmitting 
utility, or other entity’’ after ‘‘person’’ each time it 
appears. 
(2) By striking the period at the end of the first 
sentence and inserting the following: ‘‘or in obtaining 
information about the sale of electric energy at whole-
sale in interstate commerce and the transmission of 
electric energy in interstate commerce.’’. 
(d) SANCTITY OF CONTRACT.—(1) The Federal Energy 
Regulatory Commission shall have no authority to abrogate 
or modify any provision of a contract, except upon a find-
ing, after notice and opportunity for a hearing, that such 
action is necessary to protect the public interest, unless such 
contract expressly provides for a different standard of re-
view. 
(2) For purposes of this subsection, a contract is any 
agreement, in effect and subject to the jurisdiction of the 
Commission—
(A) under section 4 of the Natural Gas Act or 
section 205 of the Federal Power Act; and 
(B) that is not for sales in an organized ex-
change or auction spot market.
334
(3) This subsection shall not apply to any contract exe-
cuted before the date of enactment of this section unless such 
contract is an interconnection agreement, nor shall this sub-
section affect the outcome in any proceeding regarding any 
contract for sales of electric power executed before the date 
of enactment of this section. 
SEC. 7093. CONSUMER PRIVACY. 
(a) IN GENERAL.—The Federal Trade Commission 
shall issue rules protecting the privacy of electric consumers 
from the disclosure of consumer information obtained in 
connection with the sale or delivery of electric energy to elec-
tric consumers. The Federal Trade Commission shall pro-
ceed in accordance with section 553 of title 5, United States 
Code, when prescribing a rule under this section. 
(b) STATE AUTHORITY.—If the Federal Trade Com-
mission determines that a State’s regulations provide equiv-
alent or greater protection than the provisions of this sec-
tion, such State regulations shall apply in that State in 
lieu of the regulations issued by the Commission under this 
section. 
SEC. 7094. UNFAIR TRADE PRACTICES. 
(a) SLAMMING.—The Federal Trade Commission shall 
issue rules prohibiting the change of selection of an electric 
utility except with the informed consent of the electric con-
335
sumer or if approved by the appropriate State regulatory 
authority. 
(b) CRAMMING.—The Federal Trade Commission shall 
issue rules prohibiting the sale of goods and services to an 
electric consumer unless expressly authorized by law or the 
electric consumer. 
(c) RULEMAKING.—The Federal Trade Commission 
shall proceed in accordance with section 553 of title 5, 
United States Code, when prescribing a rule under this sec-
tion. 
(d) STATE AUTHORITY.—If the Federal Trade Com-
mission determines that a State’s regulations provide equiv-
alent or greater protection than the provisions of this sec-
tion, such State regulations shall apply in that State in 
lieu of the regulations issued by the Commission under this 
section. 
Subtitle I—Merger Review Reform 
and Accountability 
SEC. 7101. MERGER REVIEW REFORM AND ACCOUNT-
ABILITY. 
(a) MERGER REVIEW REFORM.—Within 180 days 
after the date of enactment of this Act, the Secretary of En-
ergy, in consultation with the Federal Energy Regulatory 
Commission and the Department of Justice, shall prepare, 
and transmit to the Committee on Energy and Commerce
336
of the House of Representatives and the Committee on En-
ergy and Natural Resources of the Senate each of the fol-
lowing: 
(1) A study of the extent to which the authorities 
vested in the Federal Energy Regulatory Commission 
under section 203 of the Federal Power Act are dupli-
cative of authorities vested in—
(A) other agencies of Federal and State gov-
ernment; and 
(B) the Federal Energy Regulatory Com-
mission, including under sections 205 and 206 of 
the Federal Power Act. 
(2) Recommendations on reforms to the Federal 
Power Act that would eliminate any unnecessary du-
plication in the exercise of regulatory authority or 
unnecessary delays in the approval (or disapproval) 
of applications for the sale, lease, or other disposition 
of public utility facilities. 
(b) MERGER REVIEW ACCOUNTABILITY.—Not later 
than 1 year after the date of enactment of this Act and 
annually thereafter, with respect to all orders issued within 
the preceding year that impose a condition on a sale, lease, 
or other disposition of public utility facilities under section 
203(b) of the Federal Power Act, the Federal Energy Regu-
latory Commission shall transmit a report to the Committee
337
on Energy and Commerce of the House of Representatives 
and the Committee on Energy and Natural Resources of 
the Senate explaining each of the following: 
(1) The condition imposed. 
(2) Whether the Commission could have imposed 
such condition by exercising its authority under any 
provision of the Federal Power Act other than under 
section 203(b). 
(3) If the Commission could not have imposed 
such condition other than under section 203(b), why 
the Commission determined that such condition was 
consistent with the public interest.
Subtitle J—Study of Economic 
Dispatch 
SEC. 7111. STUDY ON THE BENEFITS OF ECONOMIC DIS-
PATCH. 
(a) STUDY.—The Secretary of Energy, in coordination 
and consultation with the States, shall conduct a study 
on—
(1) the procedures currently used by electric util-
ities to perform economic dispatch, 
(2) identifying possible revisions to those proce-
dures to improve the ability of nonutility generation 
resources to offer their output for sale for the purpose 
of inclusion in economic dispatch; and
338
(3) the potential benefits to residential, commer-
cial, and industrial electricity consumers nationally 
and in each state if economic dispatch procedures 
were revised to improve the ability of nonutility gen-
eration resources to offer their output for inclusion in 
economic dispatch. 
(b) DEFINITION.—The term ‘‘economic dispatch’’ when 
used in this section means the operation of generation fa-
cilities to produce energy at the lowest cost to reliably serve 
consumers, recognizing any operational limits of generation 
and transmission facilities. 
(c) REPORT TO CONGRESS AND THE STATES.—Not 
later than 90 days after the date of enactment of this Act, 
and on a yearly basis following, the Secretary of Energy 
shall submit a report to the Congress and the States on the 
results of the study conducted under subsection (a), includ-
ing recommendations to the Congress and the States for any 
suggested legislative or regulatory changes.
TITLE VIII—COAL
SEC. 8001. AUTHORIZATION OF APPROPRIATIONS. 
(a) CLEAN COAL POWER INITIATIVE.—Except as pro-
vided in subsection (b), there are authorized to be appro-
priated to the Secretary to carry out the activities author-
ized by this title $200,000,000 for each of the fiscal years 
2005 through 2013, to remain available until expended.
339
(b) LIMIT ON USE OF FUNDS.—The Secretary shall 
transmit to the Congress the report required by this sub-
section not later than September 30, 2004. Notwithstanding 
subsection (a), no funds may be used to carry out the activi-
ties authorized by this title after September 30, 2004, unless 
the report has been transmitted. The report shall include, 
with respect to subsection (a), a 10-year plan containing—
(1) a detailed assessment of whether the aggre-
gate funding levels provided under subsection (a) are 
the appropriate funding levels for that program; 
(2) a detailed description of how proposals will 
be solicited and evaluated, including a list of all ac-
tivities expected to be undertaken; 
(3) a detailed list of technical milestones for each 
coal and related technology that will be pursued; and 
(4) a detailed description of how the program 
will avoid problems enumerated in General Account-
ing Office reports on the Clean Coal Technology Pro-
gram, including problems that have resulted in 
unspent funds and projects that failed either finan-
cially or scientifically. 
(c) APPLICABILITY.—Subsection (b) shall not apply to 
any project begun before September 30, 2004.
340
SEC. 8002. PROJECT CRITERIA. 
(a) IN GENERAL.—The Secretary shall not provide 
funding under this title for any project that does not ad-
vance efficiency, environmental performance, and cost com-
petitiveness well beyond the level of technologies that on a 
full scale are in operation or have been demonstrated as 
of the date of the enactment of this Act. 
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER 
INITIATIVE.—
(1) GASIFICATION.—(A) In allocating the funds 
made available under section 8001(a), the Secretary 
shall ensure that up to 80 percent of the funds are 
used only for coal-based gasification technologies, in-
cluding gasification combined cycle, gasification fuel 
cells, gasification coproduction and hybrid gasifi-
cation/combustion. 
(B) The Secretary shall set technical milestones 
specifying emissions levels for projects funded under 
this paragraph. The milestones shall be designed to 
increasingly restrict emission levels through the life of 
the program. The milestones shall be designed to 
achieve by 2020 coal gasification projects able—
(i) to remove 99 percent of sulfur dioxide; 
(ii) to emit no more than .05 lbs of NOx per 
million BTU;
341
(iii) to achieve substantial reductions in 
mercury emissions; and 
(iv) to achieve a thermal efficiency of— 
(I) 60 percent for coal of more than 
9,000 Btu; 
(II) 59 percent for coal of 7,000 to 
9,000 Btu; and 
(III) 50 percent for coal of less than 
7,000 Btu. 
(2) OTHER
PROJECTS.—For projects not de-
scribed in paragraph (1), the Secretary shall set tech-
nical milestones specifying emissions levels. The mile-
stones shall be designed to increasingly restrict emis-
sion levels through the life of the program. The mile-
stones shall be designed to achieve by 2010 projects 
able—
(A) to remove 97 percent of sulfur dioxide; 
(B) to emit no more than .08 lbs of NOx per 
million BTU; 
(C) to achieve substantial reductions in 
mercury emissions; and 
(D) except as provided in paragraph (4), to 
achieve a thermal efficiency of—
(i) 45 percent for coal of more than 
9,000 Btu;
342
(ii) 44 percent for coal of 7,000 to 
9,000 Btu; and 
(iii) 42 percent for coal of less than 
7,000 Btu. 
(3) CONSULTATION.—Before setting the technical 
milestones under paragraphs (1)(B) and (2), the Sec-
retary shall consult with the Administrator of the En-
vironmental Protection Agency and interested enti-
ties, including coal producers, industries using coal, 
organizations to promote coal or advanced coal tech-
nologies, environmental organizations, and organiza-
tions representing workers. 
(4) EXISTING UNITS.—In the case of projects at 
existing units, in lieu of the thermal efficiency re-
quirements set forth in paragraph (1)(B)(iv) and 
(2)(D), the projects shall be designed to achieve an 
overall thermal design efficiency improvement com-
pared to the efficiency of the unit as operated, of not 
less than— 
(A) 7 percent for coal of more than 9,000 
Btu; 
(B) 6 percent for coal of 7,000 to 9,000 Btu; 
or 
(C) 4 percent for coal of less than 7,000 
Btu.
343
(5) PERMITTED
USES.—In allocating funds 
made available under section 8001, the Secretary may 
fund projects that include, as part of the project, the 
separation and capture of carbon dioxide. 
(c) FINANCIAL CRITERIA.—The Secretary shall not 
provide a funding award under this title unless the recipi-
ent has documented to the satisfaction of the Secretary 
that—
(1) the award recipient is financially viable 
without the receipt of additional Federal funding; 
(2) the recipient will provide sufficient informa-
tion to the Secretary for the Secretary to ensure that 
the award funds are spent efficiently and effectively; 
and 
(3) a market exists for the technology being dem-
onstrated or applied, as evidenced by statements of 
interest in writing from potential purchasers of the 
technology. 
(d) FINANCIAL ASSISTANCE.—The Secretary shall pro-
vide financial assistance to projects that meet the require-
ments of subsections (a), (b), and (c) and are likely to—
(1) achieve overall cost reductions in the utiliza-
tion of coal to generate useful forms of energy; 
(2) improve the competitiveness of coal among 
various forms of energy in order to maintain a diver-