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aggregate customer peak demand for that calendar 
year. 
‘‘(2) ONE PERCENT LIMITATION.—A retail elec-
tric supplier shall not be required to comply with 
subsection (b) with respect to additional customer-
generators using a single type of qualified energy 
generation system after the date during any cal-
endar year on which the total generating capacity of 
all customer-generators with qualified generation fa-
cilities of that type and net metering systems served 
by that supplier is equal to or in excess of 1 percent 
of the capacity necessary to meet the supplier’s aver-
age forecasted aggregate customer peak demand for 
that calendar year. 
‘‘(3) RECORDS AND NOTICE.—Each retail elec-
tric supplier shall maintain, and make available to 
the public, records of the total generating capacity 
of customer-generators of such supplier that are 
using net metering, the type of generating systems 
and energy source used by the electric generating 
systems used by such customer-generators. Each 
such supplier shall notify the Commission when the 
total generating capacity of such customer-genera-
tors is equal to or in excess of 2 percent of the ca-
pacity necessary to meet the supplier’s aggregate
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customer peak demand during the previous calendar 
year and when the total generating capacity of such 
customer-generators using a single type of qualified 
generation is equal to or in excess of 1 percent of 
such capacity. 
‘‘(e) SAFETY AND PERFORMANCE STANDARDS.—(1) 
A qualified generation unit and net metering system used 
by a customer-generator shall meet all applicable safety 
and performance and reliability standards established by 
the national electrical code, the Institute of Electrical and 
Electronics Engineers, Underwriters Laboratories, or the 
American National Standards Institute. 
‘‘(2) The Commission, after consultation with State 
regulatory authorities and nonregulated local distribution 
systems and after notice and opportunity for comment, 
may adopt by regulation additional control and testing re-
quirements for customer-generators that the Commission 
determines are necessary to protect public safety and sys-
tem reliability. 
‘‘(3) The Commission shall, after consultation with 
State regulatory authorities and nonregulated local dis-
tribution systems and after notice and opportunity for 
comment, prohibit by regulation the imposition of addi-
tional charges by electric suppliers and local distribution 
systems for equipment or services for safety or perform-
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ance that are additional to those necessary to meet the 
standards and requirements referred to in paragraphs (2) 
and (3). 
‘‘(f) ADDITIONAL METERS.—Any retail electric sup-
plier or local distribution company may, at its own ex-
pense, install one or more additional electric energy meters 
to monitor the flow of electricity in either direction to and 
from customer-generators, to identify the time of genera-
tion by customer- generators, or both. 
‘‘(g) FEDERAL CREDITS.—Whenever a customer-gen-
erator with a net metering system uses any energy genera-
tion system entitled to credits under a Federal minimum 
renewable energy generation requirement, the total 
amount of energy generated by that system shall be treat-
ed as generated by the retail electric supplier for purposes 
of such requirement. 
‘‘(h) STATE AUTHORITY.—Nothing in this section 
shall preclude a State from establishing or imposing addi-
tional incentives or requirements to encourage qualified 
generation and net metering additional to that required 
under this section. 
‘‘(i) INTERCONNECTION STANDARDS.—(1) Within 
one year after the enactment of this section the Commis-
sion shall publish model standards for the physical connec-
tion between local distribution systems and qualified gen-
302
eration units and electric generation units that would be 
qualified generation units but for the fact that the unit 
has a generating capacity of more than 100 kilowatts (but 
not more than 250 kilowatts). Such model standards shall 
be designed to encourage the use of qualified generation 
units and to insure the safety and reliability of such units 
and the local distribution systems interconnected with 
such units. Within 2 years after the enactment of this sec-
tion, each State shall adopt such model standards, with 
or without modification, and submit such standards to the 
Commission for approval. The Commission shall approve 
a modification of the model standards only if the Commis-
sion determines that such modification is consistent with 
the purpose of such standards and is required by reason 
of local conditions. If standards have not been approved 
under this paragraph by the Commission for any State 
within 2 years after the enactment of this section, the 
Commission shall, by rule or order, enforce the Commis-
sion’s model standards in such State until such time as 
State standards are approved by the Commission. 
‘‘(2) The standards under this section shall establish 
such measures for the safety and reliability of the affected 
equipment and local distribution systems as may be appro-
priate. Such standards shall be consistent with all applica-
ble safety and performance standards established by the
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national electrical code, the Institute of Electrical and 
Electronics Engineers, Underwriters Laboratories, or the 
American National Standards Institute and with such ad-
ditional safety and reliability standards as the Commission 
shall, by rule, prescribe. Such standards shall ensure that 
generation units will automatically isolate themselves from 
the electrical system in the event of an electrical power 
outage. Such standards shall permit the owner or operator 
of the local distribution system to interrupt or reduce de-
liveries of available energy from the generation unit to the 
system when necessary in order to construct, install, main-
tain, repair, replace, remove, investigate, or inspect any 
of its equipment or part of its system; or if it determines 
that curtailment, interruption, or reduction is necessary 
because of emergencies, forced outages, force majeure, or 
compliance with prudent electrical practices. 
‘‘(3) The model standards under this subsection pro-
hibit the imposition of additional charges by local distribu-
tion systems for equipment or services for interconnection 
that are additional to those necessary to meet such stand-
ards. 
‘‘(j) INTERCONNECTION.—At the election of the 
owner or operator of the generation unit concerned, con-
nections meeting the standards applicable under sub-
section (g) may be made—
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‘‘(1) by such owner or operator at such owner’s 
or operator’s expense, or 
‘‘(2) by the owner or operator of the local dis-
tribution system upon the request of the owner or 
operator of the generating unit and pursuant to an 
offer by the owner or operator of the generating unit 
to reimburse the local distribution system in an 
amount equal to the minimum cost of such connec-
tion, consistent with the procurement procedures of 
the State in which the unit is located, except that 
the work on all such connections shall be performed 
by qualified electrical personnel certified by a re-
sponsible body or licensed by a State or local govern-
ment authority. 
‘‘(k) CONSUMER FRIENDLY CONTRACTS.—The Com-
mission shall promulgate regulations insuring that sim-
plified contracts will be used for the interconnection of 
electric energy by electric energy transmission or distribu-
tion systems and generating facilities that have a power 
production capacity not greater than 250 kilowatts.’’. 
(b) CONFORMING AMENDMENTS.—Section 316A of 
the Federal Power Act is amended by striking out ‘‘or 
214’’ in both places it appears and inserting ‘‘214, or title 
IV’’.
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SEC. 506. APPLIANCE STANDARDS. 
(a) STANDARDS FOR HOUSEHOLD APPLIANCES IN 
STANDBY MODE.—Section 325 of the Energy Policy and 
Conservation Act (42 U.S.C. 6295) is amended by adding 
at the end the following: 
‘‘(u) STANDBY MODE ELECTRIC ENERGY CONSUMP-
TION BY HOUSEHOLD APPLIANCES.—
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) HOUSEHOLD APPLIANCE.—The term 
‘household appliance’ means any device that 
uses household electric current and operates in 
a standby mode except digital televisions, digital 
set top boxes, and digital video recorders. 
‘‘(B) STANDBY MODE.—The term ‘standby 
mode’ means a mode in which a household ap-
pliance uses household electric current but is 
not in the active or primary operating mode. 
For products with more than one operating 
mode, the term ‘standby mode’ means the mode 
in which the appliance consumes the least 
amount of electric energy that the household 
appliance is capable of consuming without being 
completely switched off. 
‘‘(2) STANDARD.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a household appliance that