H. R. 6—376
why the conditions set forth in subparagraph (A), (B), or (C) 
of paragraph (1) of this subsection are no longer met. After 
notice, including sufficient notice to potentially affected utilities, 
and opportunity for comment, the Commission shall issue an 
order within 90 days of such application reinstating the electric 
utility’s obligation to purchase electric energy under this section 
if the Commission finds that the conditions set forth in subpara-
graphs (A), (B) or (C) of paragraph (1) which relieved the 
obligation to purchase, are no longer met. 
‘‘(5) OBLIGATION
TO
SELL.—After the date of enactment 
of this subsection, no electric utility shall be required to enter 
into a new contract or obligation to sell electric energy to 
a qualifying cogeneration facility or a qualifying small power 
production facility under this section if the Commission finds 
that— 
‘‘(A) competing retail electric suppliers are willing and 
able to sell and deliver electric energy to the qualifying 
cogeneration facility or qualifying small power production 
facility; and 
‘‘(B) the electric utility is not required by State law 
to sell electric energy in its service territory. 
‘‘(6) NO
EFFECT
ON
EXISTING
RIGHTS
AND
REMEDIES.—
Nothing in this subsection affects the rights or remedies of 
any party under any contract or obligation, in effect or pending 
approval before the appropriate State regulatory authority or 
non-regulated electric utility on the date of enactment of this 
subsection, to purchase electric energy or capacity from or 
to sell electric energy or capacity to a qualifying cogeneration 
facility or qualifying small power production facility under this 
Act (including the right to recover costs of purchasing electric 
energy or capacity). 
‘‘(7) RECOVERY OF COSTS.—(A) The Commission shall issue 
and enforce such regulations as are necessary to ensure that 
an electric utility that purchases electric energy or capacity 
from a qualifying cogeneration facility or qualifying small power 
production facility in accordance with any legally enforceable 
obligation entered into or imposed under this section recovers 
all prudently incurred costs associated with the purchase. 
‘‘(B) A regulation under subparagraph (A) shall be enforce-
able in accordance with the provisions of law applicable to 
enforcement of regulations under the Federal Power Act (16 
U.S.C. 791a et seq.). 
‘‘(n) RULEMAKING FOR NEW QUALIFYING FACILITIES.—(1)(A) Not 
later than 180 days after the date of enactment of this section, 
the Commission shall issue a rule revising the criteria in 18 CFR 
292.205 for new qualifying cogeneration facilities seeking to sell 
electric energy pursuant to section 210 of this Act to ensure— 
‘‘(i) that the thermal energy output of a new qualifying 
cogeneration facility is used in a productive and beneficial 
manner; 
‘‘(ii) the electrical, thermal, and chemical output of the 
cogeneration facility is used fundamentally for industrial, 
commercial, or institutional purposes and is not intended fun-
damentally for sale to an electric utility, taking into account 
technological, efficiency, economic, and variable thermal energy 
requirements, as well as State laws applicable to sales of elec-
tric energy from a qualifying facility to its host facility; and
H. R. 6—377
‘‘(iii) continuing progress in the development of efficient 
electric energy generating technology. 
‘‘(B) The rule issued pursuant to paragraph (1)(A) of this sub-
section shall be applicable only to facilities that seek to sell electric 
energy pursuant to section 210 of this Act. For all other purposes, 
except as specifically provided in subsection (m)(2)(A), qualifying 
facility status shall be determined in accordance with the rules 
and regulations of this Act. 
‘‘(2) Notwithstanding rule revisions under paragraph (1), the 
Commission’s criteria for qualifying cogeneration facilities in effect 
prior to the date on which the Commission issues the final rule 
required by paragraph (1) shall continue to apply to any cogenera-
tion facility that— 
‘‘(A) was a qualifying cogeneration facility on the date 
of enactment of subsection (m), or 
‘‘(B) had filed with the Commission a notice of self-certifi-
cation, self-recertification or an application for Commission cer-
tification under 18 CFR 292.207 prior to the date on which 
the Commission issues the final rule required by paragraph 
(1).’’. 
(b) ELIMINATION OF OWNERSHIP LIMITATIONS.— 
(1) QUALIFYING SMALL POWER PRODUCTION FACILITY.—Sec-
tion 3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C)) 
is amended to read as follows: 
‘‘(C) ‘qualifying small power production facility’ means 
a small power production facility that the Commission 
determines, by rule, meets such requirements (including 
requirements respecting fuel use, fuel efficiency, and reli-
ability) as the Commission may, by rule, prescribe;’’. 
(2) QUALIFYING COGENERATION FACILITY.—Section 3(18)(B) 
of the Federal Power Act (16 U.S.C. 796(18)(B)) is amended 
to read as follows: 
‘‘(B) ‘qualifying cogeneration facility’ means a cogenera-
tion facility that the Commission determines, by rule, meets 
such requirements (including requirements respecting min-
imum size, fuel use, and fuel efficiency) as the Commission 
may, by rule, prescribe;’’. 
SEC. 1254. INTERCONNECTION. 
(a) ADOPTION
OF STANDARDS.—Section 111(d) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is 
amended by adding at the end the following: 
‘‘(15) INTERCONNECTION.—Each electric utility shall make 
available, upon request, interconnection service to any electric 
consumer that the electric utility serves. For purposes of this 
paragraph, the term ‘interconnection service’ means service 
to an electric consumer under which an on-site generating 
facility on the consumer’s premises shall be connected to the 
local distribution facilities. Interconnection services shall be 
offered based upon the standards developed by the Institute 
of Electrical and Electronics Engineers: IEEE Standard 1547 
for Interconnecting Distributed Resources with Electric Power 
Systems, as they may be amended from time to time. In addi-
tion, agreements and procedures shall be established whereby 
the services are offered shall promote current best practices 
of interconnection for distributed generation, including but not 
limited to practices stipulated in model codes adopted by