545
(A) feasibility analysis, planning, research,
and design to construct demonstrations of
superconducting links in high power, direct cur-
rent and controllable alternating current trans-
mission systems;
(B) public-private partnerships to dem-
onstrate deployment of high temperature super-
conducting cable into testbeds simulating a re-
alistic transmission grid and under varying
transmission conditions, including actual grid
insertions; and
(C) testbeds developed in cooperation with
national laboratories, industries, and univer-
sities to demonstrate these technologies, pre-
pare the technologies for commercial introduc-
tion, and address cost or performance road-
blocks to successful commercial use.
(4) AUTHORIZATION OF APPROPRIATIONS.—For
purposes of carrying out this subsection, there are
authorized to be appropriated—
(A) for fiscal year 2006, $15,000,000;
(B) for fiscal year 2007, $20,000,000;
(C) for fiscal year 2008, $30,000,000;
(D) for fiscal year 2009, $35,000,000; and
(E) for fiscal year 2010, $40,000,000.
546
SEC. 1226. ADVANCED POWER SYSTEM TECHNOLOGY IN-
CENTIVE PROGRAM.
(a) PROGRAM.—The Secretary of Energy is author-
ized to establish an Advanced Power System Technology
Incentive Program to support the deployment of certain
advanced power system technologies and to improve and
protect certain critical governmental, industrial, and com-
mercial processes. Funds provided under this section shall
be used by the Secretary to make incentive payments to
eligible owners or operators of advanced power system
technologies to increase power generation through en-
hanced operational, economic, and environmental perform-
ance. Payments under this section may only be made upon
receipt by the Secretary of an incentive payment applica-
tion establishing an applicant as either—
(1) a qualifying advanced power system tech-
nology facility; or
(2) a qualifying security and assured power fa-
cility.
(b) INCENTIVES.—Subject to availability of funds, a
payment of 1.8 cents per kilowatt-hour shall be paid to
the owner or operator of a qualifying advanced power sys-
tem technology facility under this section for electricity
generated at such facility. An additional 0.7 cents per kilo-
watt-hour shall be paid to the owner or operator of a quali-
fying security and assured power facility for electricity
547
generated at such facility. Any facility qualifying under
this section shall be eligible for an incentive payment for
up to, but not more than, the first 10,000,000 kilowatt-
hours produced in any fiscal year.
(c) ELIGIBILITY.—For purposes of this section:
(1) QUALIFYING
ADVANCED
POWER
SYSTEM
TECHNOLOGY FACILITY.—The term ‘‘qualifying ad-
vanced power system technology facility’’ means a
facility using an advanced fuel cell, turbine, or hy-
brid power system or power storage system to gen-
erate or store electric energy.
(2) QUALIFYING
SECURITY
AND
ASSURED
POWER
FACILITY.—The term ‘‘qualifying security
and assured power facility’’ means a qualifying ad-
vanced power system technology facility determined
by the Secretary of Energy, in consultation with the
Secretary of Homeland Security, to be in critical
need of secure, reliable, rapidly available, high-qual-
ity power for critical governmental, industrial, or
commercial applications.
(d) AUTHORIZATION.—There are authorized to be ap-
propriated to the Secretary of Energy for the purposes
of this section, $10,000,000 for each of the fiscal years
2006 through 2012.
548
SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION AND DIS-
TRIBUTION.
(a) CREATION OF AN OFFICE OF ELECTRIC TRANS-
MISSION AND DISTRIBUTION.—Title II of the Department
of Energy Organization Act (42 U.S.C. 7131 et seq.) (as
amended by section 502(a) of this Act) is amended by in-
serting the following after section 217, as added by title
V of this Act:
‘‘SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DIS-
TRIBUTION.
‘‘(a) ESTABLISHMENT.—There is established within
the Department an Office of Electric Transmission and
Distribution. This Office shall be headed by a Director,
subject to the authority of the Secretary. The Director
shall be appointed by the Secretary. The Director shall
be compensated at the annual rate prescribed for level IV
of the Executive Schedule under section 5315 of title 5,
United States Code.
‘‘(b) DIRECTOR.—The Director shall—
‘‘(1) coordinate and develop a comprehensive,
multi-year strategy to improve the Nation’s elec-
tricity transmission and distribution;
‘‘(2) implement or, where appropriate, coordi-
nate the implementation of, the recommendations
made in the Secretary’s May 2002 National Trans-
mission Grid Study;
549
‘‘(3) oversee research, development, and dem-
onstration to support Federal energy policy related
to electricity transmission and distribution;
‘‘(4) grant authorizations for electricity import
and export pursuant to section 202(c), (d), (e), and
(f) of the Federal Power Act (16 U.S.C. 824a);
‘‘(5) perform other functions, assigned by the
Secretary, related to electricity transmission and dis-
tribution; and
‘‘(6) develop programs for workforce training in
power and transmission engineering.’’.
(b) CONFORMING AMENDMENTS.—(1) The table of
contents of the Department of Energy Organization Act
(42 U.S.C. 7101 note) is amended by inserting after the
item relating to section 217 the following new item:
‘‘Sec. 218. Office of Electric Transmission and Distribution.’’.
(2) Section 5315 of title 5, United States Code, is
amended by inserting after the item relating to ‘‘Inspector
General, Department of Energy.’’ the following:
‘‘Director, Office of Electric Transmission and
Distribution, Department of Energy.’’.
550
Subtitle C—Transmission
Operation Improvements
SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.
Part II of the Federal Power Act (16 U.S.C. 824 et
seq.) is amended by inserting after section 211 the fol-
lowing new section:
‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMIT-
TING UTILITIES.
‘‘(a) TRANSMISSION SERVICES.—Subject to section
212(h), the Commission may, by rule or order, require an
unregulated transmitting utility to provide transmission
services—
‘‘(1) at rates that are comparable to those that
the unregulated transmitting utility charges itself;
and
‘‘(2) on terms and conditions (not relating to
rates) that are comparable to those under which
such unregulated transmitting utility provides trans-
mission services to itself and that are not unduly
discriminatory or preferential.
‘‘(b) EXEMPTION.—The Commission shall exempt
from any rule or order under this section any unregulated
transmitting utility that—
‘‘(1) sells no more than 4,000,000 megawatt
hours of electricity per year; or
551
‘‘(2) does not own or operate any transmission
facilities that are necessary for operating an inter-
connected transmission system (or any portion
thereof); or
‘‘(3) meets other criteria the Commission deter-
mines to be in the public interest.
‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The re-
quirements of subsection (a) shall not apply to facilities
used in local distribution.
‘‘(d) EXEMPTION
TERMINATION.—Whenever the
Commission, after an evidentiary hearing held upon a
complaint and after giving consideration to reliability
standards established under section 215, finds on the
basis of a preponderance of the evidence that any exemp-
tion granted pursuant to subsection (b) unreasonably im-
pairs the continued reliability of an interconnected trans-
mission system, it shall revoke the exemption granted to
that transmitting utility.
‘‘(e) APPLICATION
TO UNREGULATED TRANSMIT-
TING UTILITIES.—The rate changing procedures applica-
ble to public utilities under subsections (c) and (d) of sec-
tion 205 are applicable to unregulated transmitting utili-
ties for purposes of this section.
‘‘(f) REMAND.—In exercising its authority under
paragraph (1) of subsection (a), the Commission may re-
552
mand transmission rates to an unregulated transmitting
utility for review and revision where necessary to meet the
requirements of subsection (a).
‘‘(g) OTHER REQUESTS.—The provision of trans-
mission services under subsection (a) does not preclude a
request for transmission services under section 211.
‘‘(h) LIMITATION.—The Commission may not require
a State or municipality to take action under this section
that would violate a private activity bond rule for purposes
of section 141 of the Internal Revenue Code of 1986 (26
U.S.C. 141).
‘‘(i) TRANSFER OF CONTROL OF TRANSMITTING FA-
CILITIES.—Nothing in this section authorizes the Commis-
sion to require an unregulated transmitting utility to
transfer control or operational control of its transmitting
facilities to an RTO or any other Commission-approved
independent transmission organization designated to pro-
vide nondiscriminatory transmission access.
‘‘(j) DEFINITION.—For purposes of this section, the
term ‘unregulated transmitting utility’ means an entity
that—
‘‘(1) owns or operates facilities used for the
transmission of electric energy in interstate com-
merce; and
‘‘(2) is an entity described in section 201(f).’’.