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matic commercial icemaker in which the icemaking 
mechanism and condensing unit are in separate sec-
tions. 
‘‘(43) TRAFFIC
SIGNAL
MODULE.—The term 
‘traffic signal module’ means a standard 8-inch 
(200mm) or 12-inch (300mm) traffic signal indica-
tion, consisting of a light source, a lens, and all 
other parts necessary for operation, that commu-
nicates movement messages to drivers through red, 
amber, and green colors. 
‘‘(44) 
TORCHIERE
FIXTURE.—The 
term 
‘torchiere fixture’ means a portable electric lighting 
fixture with a reflector bowl that directs light up-
ward so as to give indirect illumination. 
‘‘(45) UNIT HEATER.—The term ‘unit heater’ 
means a self-contained fan-type heater designed to 
be installed within the heated space. Unit heaters in-
clude an apparatus or appliance to supply heat, and 
a fan for circulating air over a heat exchange sur-
face, all enclosed in a common casing. Unit heaters 
do not include furnaces as defined in this Act.’’. 
(2) TESTING REQUIREMENTS.—Section 323 of 
the Energy Policy and Conservation Act (42 U.S.C. 
6293) is amended by adding the following at the end 
thereof:
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‘‘(f) ADDITIONAL CONSUMER PRODUCTS.—The Sec-
retary shall within 18 months after the date of enactment 
of this subsection prescribe testing requirements for the 
consumer and commercial products referred to in para-
graphs (36) though (45) of section 321. Such testing re-
quirements shall be based on existing test procedures used 
in industry to the extent practical and reasonable. In the 
case of residential furnace fans, residential central air con-
ditioner fans or heat pump circulation fans, and sus-
pended ceiling fans unit heaters, such test procedures shall 
include efficiency at both maximum output and at an out-
put no more than 50 percent of the maximum output.’’. 
(3) STANDARDS
FOR
ADDITIONAL
CONSUMER 
PRODUCTS.—Section 325 of the Energy Policy and 
Conservation Act (42 U.S.C. 6295), as amended by 
subsection (a) of this section, is amended by adding 
the following at the end thereof: 
‘‘(w) RESIDENTIAL, OTHER CONSUMER, AND COM-
MERCIAL PRODUCTS.—(1) The Secretary shall, within 18 
months after the date of enactment of this subsection, as-
sess the current and projected future market for the con-
sumer, and commercial products referred to in paragraphs 
(36) through (45) of section 321, furnace fans, residential 
central air conditioner fans and heat pump circulation 
fans, suspended ceiling fans, and refrigerated bottled or
318
canned beverage vending machines. This assessment shall 
include an examination of the types of these products sold, 
the number of these products in use, annual sales of these 
products, energy used by these products sold, estimates 
of the potential energy savings from specific technical im-
provements to these products, and an examination of the 
cost-effectiveness of these improvements. Prior to the end 
of this time period, the Secretary shall hold an initial 
scoping workshop to discuss and receive input to plans for 
developing minimum efficiency standards for these prod-
ucts. 
‘‘(2) The Secretary shall within 24 months after the 
date on which testing requirements are prescribed by the 
Secretary pursuant to section 323(f), prescribe, by rule, 
energy conservation standards for residential furnace fans, 
residential central air conditioner fans and heat pump cir-
culation fans, suspended ceiling fans, and refrigerated bot-
tled or canned beverage vending machines. In establishing 
these standards, the Secretary shall use the criteria and 
procedures contained in this section. Any standard pre-
scribed under this section shall apply to products manu-
factured 36 months after the date such rule is published.’’. 
(4) LABELING.—Section 324(a) of the Energy 
Policy and Conservation Act (42 U.S.C. 6294(a)) is 
amended by adding the following at the end thereof:
319
‘‘(5) The Secretary shall within 6 months after 
the date on which energy conservation standards are 
prescribed by the Secretary, prescribe, by rule, label-
ing requirements for the consumer and commercial 
products referred to in paragraphs (33) though (45) 
of section 321. These requirements shall take effect 
on the same date as the standards prescribed pursu-
ant to section 325(w).’’. 
(5) COVERED
PRODUCTS.—Section 322(a) of 
the Energy Policy and Conservation Act (42 U.S.C. 
6292(a)) is amended by redesignating paragraph 
(19) as (20) and by inserting the following after 
paragraph (18): 
‘‘(19) Beginning on the effective date for stand-
ards established pursuant to subsection (w) of sec-
tion 325, each product referred to in such subsection 
(w).’’. 
(e) 
AIR
CONDITIONER
ENERGY
EFFICIENCY 
RULES.—Section 325(o)(1) of the Energy Policy and Con-
servation Act is amended by adding the following at the 
end thereof: ‘‘Any rule relating to the energy efficiency 
of air conditioners that violates the preceding sentence 
shall have no force and effect after the date of the enact-
ment of this sentence.’’.
320
SEC. 507. ENERGY STAR CERTIFICATION FOR SOLAR 
WATER HEATERS. 
Not later than January 1, 2007, the Secretary, in 
consultation with the Administrator of the Environmental 
Protection Agency, shall adopt regulations establishing 
Energy Star Program requirements and an Energy Star 
rating program for commercial and residential solar water 
heating devices. 
SEC. 508. ELECTRIC RELIABILITY STANDARDS. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 215. ELECTRIC RELIABILITY. 
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) ‘bulk power system’ means the network of 
interconnected transmission facilities and generating 
facilities; 
‘‘(2) ‘electric reliability organization’ means a 
self-regulating organization certified by the Commis-
sion under subsection (c) whose purpose is to pro-
mote the reliability of the bulk power system; and 
‘‘(3) ‘reliability standard’ means a requirement 
to provide for reliable operation of the bulk power 
system approved by the Commission under this sec-
tion. 
‘‘(b) JURISDICTION AND APPLICABILITY.—The Com-
mission shall have jurisdiction, within the United States,
321
over an electric reliability organization, any regional enti-
ties, and all users, owners and operators of the bulk power 
system, including but not limited to the entities described 
in section 201(f), for purposes of approving reliability 
standards and enforcing compliance with this section. All 
users, owners and operators of the bulk power system shall 
comply with reliability standards that take effect under 
this section. 
‘‘(c) CERTIFICATION.—
‘‘(1) The Commission shall issue a final rule to 
implement the requirements of this section not later 
than 180 days after the date of enactment of this 
section. 
‘‘(2) Following the issuance of a Commission 
rule under paragraph (1), any person may submit an 
application to the Commission for certification as an 
electric reliability organization. The Commission 
may certify an applicant if the Commission deter-
mines that the applicant—
‘‘(A) has the ability to develop, and enforce 
reliability standards that provide for an ade-
quate level of reliability of the bulk power sys-
tem; and 
‘‘(B) has established rules that—
322
‘‘(i) assure the independence of the 
applicant from the users and owners and 
operators of the bulk power system while 
assuring fair stakeholder representation in 
the selection of its directors and balanced 
decision making in any committee or sub-
ordinate organizational structure; 
‘‘(ii) allocate equitably dues, fees, and 
other charges among users for all activities 
under this section; 
‘‘(iii) provide fair and impartial proce-
dures for enforcement of reliability stand-
ards through imposition of penalties (in-
cluding limitations on activities, functions, 
or operations, or other appropriate sanc-
tions) and 
‘‘(iv) provide for reasonable notice and 
opportunity for public comment, due proc-
ess, openness, and balance of interests in 
developing reliability standards and other-
wise exercising its duties. 
‘‘(3) If the Commission receives 2 or more time-
ly applications that satisfy the requirements of this 
subsection, the Commission shall approve only the
323
application the Commission concludes will best im-
plement the provisions of this section. 
‘‘(d) RELIABILITY STANDARDS.—
‘‘(1) An electric reliability organization shall file 
a proposed reliability standard or modification to a 
reliability standard with the Commission. 
‘‘(2) The Commission may approve a proposed 
reliability standard or modification to a reliability 
standard if it determines that the standard is just, 
reasonable, not unduly discriminatory or pref-
erential, and in the public interest. The Commission 
shall give due weight to the technical expertise of the 
electric reliability organization with respect to the 
content of a proposed standard or modification to a 
reliability standard, but shall not defer with respect 
to its effect on competition. 
‘‘(3) The electric reliability organization and the 
Commission shall rebuttably presume that a pro-
posal from a regional entity organized on an inter-
connection-wide basis for a reliability standard or 
modification to a reliability standard to be applicable 
on an interconnection-wide basis is just, reasonable, 
and not unduly discriminatory or preferential, and in 
the public interests.
324
‘‘(4) The Commission shall remand to the elec-
tric reliability organization for further consideration 
a proposed reliability standard or a modification to 
a reliability standard that the Commission dis-
approves in whole or in part. 
‘‘(5) The Commission, upon its own motion or 
upon complaint, may order an electric reliability or-
ganization to submit to the Commission a proposed 
reliability standard or a modification to a reliability 
standard that addresses a specific matter if the 
Commission considers such a new or modified reli-
ability standard appropriate to carry out this sec-
tion. 
‘‘(e) ENFORCEMENT.—
‘‘(1) An electric reliability organization may im-
pose a penalty on a user or owner or operator of the 
bulk power system if the electric reliability organiza-
tion, after notice and an opportunity for a hearing—
‘‘(A) finds that the user or owner or oper-
ator of the bulk power system has violated a re-
liability standard approved by the Commission 
under subsection (d); and 
‘‘(B) files notice with the Commission, 
which shall affirm, set aside, or modify the ac-
tion.
325
‘‘(2) On its own motion or upon complaint, the 
Commission may order compliance with a reliability 
standard and may impose a penalty against a user 
or owner or operator of the bulk power system if the 
Commission finds, after notice and opportunity for 
a hearing, that the user or owner or operator of the 
bulk power system has violated or threatens to vio-
late a reliability standard. 
‘‘(3) The Commission shall establish regulations 
authorizing the electric reliability organization to 
enter into an agreement to delegate authority to a 
regional entity for the purpose of proposing and en-
forcing reliability standards (including related activi-
ties) if the regional entity satisfies the provisions of 
subparagraphs (A) and (B) of subsection (c)(2) and 
the agreement promotes effective and efficient ad-
ministration of bulk power system reliability. The 
Commission may modify such delegation. The elec-
tric reliability organization and the Commission shall 
rebuttably presume that a proposal for delegation to 
a regional entity organized on a interconnection-wide 
basis promotes effective and efficient administration 
of bulk power system reliability and should be ap-
proved. Such regulation may provide that the Com-
mission may assign the electric reliability organiza-
326
tion’s authority to enforce reliability standards di-
rectly to a regional entity consistent with the re-
quirements of this paragraph. 
‘‘(4) The Commission may take such action as 
is necessary or appropriate against the electric reli-
ability organization or a regional entity to ensure 
compliance with a reliability standard or any Com-
mission order affecting the electric reliability organi-
zation or a regional entity. 
‘‘(f) CHANGES IN ELECTRICITY RELIABILITY ORGA-
NIZATION RULES.—An electric reliability organization 
shall file with the Commission for approval any proposed 
rule or proposed rule change, accompanied by an expla-
nation of its basis and purpose. The Commission, upon 
its own motion or complaint, may propose a change to the 
rules of the electric reliability organization. A proposed 
rule or proposed rule change shall take effect upon a find-
ing by the Commission, after notice and opportunity for 
comment, that the change is just, reasonable, not unduly 
discriminatory or preferential, is in the public interest, and 
satisfies the requirements of subsection (c)(2). 
‘‘(g) COORDINATION WITH CANADA AND MEXICO.—
‘‘(1) The electric reliability organization shall 
take all appropriate steps to gain recognition in 
Canada and Mexico.
327
‘‘(2) The President shall use his best efforts to 
enter into international agreements with the govern-
ments of Canada and Mexico to provide for effective 
compliance with reliability standards and the effec-
tiveness of the electric reliability organization in the 
United States and Canada or Mexico. 
‘‘(h) RELIABILITY REPORTS.—The electric reliability 
organization shall conduct periodic assessments of the reli-
ability and adequacy of the interconnected bulk power sys-
tem in North America. 
‘‘(i) SAVINGS PROVISIONS.—
‘‘(1) The electric reliability organization shall 
have authority to develop and enforce compliance 
with standards for the reliable operation of only the 
bulk power system. 
‘‘(2) This section does not provide the electric 
reliability organization or the Commission with au-
thority to order the construction of additional gen-
eration or transmission capacity or to set and en-
force compliance with standards for adequacy or 
safety of electric facilities or services. 
‘‘(3) Nothing in this section shall be construed 
to preempt any authority of any State to take action 
to ensure the safety, adequacy, and reliability of 
electric service within that State, as long as such ac-
328
tion is not inconsistent with any reliability standard 
established under this section. 
‘‘(4) Not later than 90 days after the date of 
the application of the electric reliability organization 
or other affected party, and after notice and oppor-
tunity for comment, the Commission shall issue a 
final order determining whether a State action is in-
consistent with a reliability standard, taking into 
consideration any recommendation of the electric re-
liability organization. 
‘‘(5) The Commission, after consultation with 
the electric reliability organization, may stay the ef-
fectiveness of any State action, pending the Commis-
sion’s issuance of a final order. 
‘‘(j) APPLICATION OF ANTITRUST LAWS.—
‘‘(1) To the extent undertaken to develop, im-
plement, or enforce a reliability standard, each of 
the following activities shall not, in any action under 
the antitrust laws, be deemed illegal per se: 
‘‘(A) Activities undertaken by an electric 
reliability organization under this section. 
‘‘(B) Activities of a user or owner or oper-
ator of the bulk power system undertaken in 
good faith under the rules of an electric reli-
ability organization.