I
106TH CONGRESS
1ST SESSION
H. R. 2569
To enhance the benefits of the national electric system by encouraging and
supporting State programs for renewable energy sources, universal elec-
tric service, affordable electric service, and energy conservation and effi-
ciency, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 20, 1999
Mr. PALLONE introduced the following bill; which was referred to the
Committee on Commerce
A BILL
To enhance the benefits of the national electric system by
encouraging and supporting State programs for renew-
able energy sources, universal electric service, affordable
electric service, and energy conservation and efficiency,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Fair Energy Competition Act of 1999’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Allowance program for certain air pollutants.
Sec. 5. National Electric System Public Benefits Board.
Sec. 6. National Electric System Public Benefits Fund.
Sec. 7. Renewable energy portfolio standards.
Sec. 8. Net metering.
Sec. 9. Disclosure requirements.
Sec. 10. State and local law.
Sec. 11. PURPA repeal.
Sec. 12. Illegal changes in retail customer selections.
Sec. 13. Privacy of consumer proprietary information.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) Restructuring the electricity industry is in-
tended to promote competition among electricity pro-
viders, resulting in lower electricity rates to con-
sumers, higher quality services, and a more robust
national economy.
(2) Emissions from electric power generating
facilities are today the largest industrial source re-
sponsible for persistent public health and environ-
mental problems.
(3) The generation of electricity is unique in its
combined influence on the Nation’s security, envi-
ronmental quality, and economic efficiency.
(4) The generation and sale of electricity has a
direct and profound impact on interstate commerce.
(5) The Federal Government and the States
have a joint responsibility for the maintenance of
public purpose programs affected by the national
electric system.
(6) Notwithstanding the public’s interest in and
enthusiasm for programs that enhance the environ-
ment, encourage the efficient use of resources, and
provide for affordable and universal service, the in-
vestments in those public purposes by existing
means continues to decline.
(7) The full benefits of competition will not be
realized if some competitors enjoy an advantage re-
sulting from externalizing environmental and other
costs associated with air emissions produced by their
electric generating facilities, permitting them to
charge prices for electricity that do not reflect the
full economic and environmental costs of production.
(8) Emission control requirements on electric
generating units are substantially different depend-
ing on their age and location, allowing older gener-
ating units to emit pollutants at excessive rates.
Older generating units have been exempt from emis-
sions limitations applicable to new units based on
the expectation that, over time, these older units
would be retired. However, such units continue to
operate and emit at high rates.
(9) Consumers have a right to certain informa-
tion in order to make objective choices on their elec-
tric service providers.
(10) The availability in a competitive market of
products produced by renewable resources and
sources that minimize emissions of harmful air pol-
lutants could produce meaningful envionmental, eco-
nomic and public health benefits.
(11) Net metering of small systems for self-gen-
eration of electricity is in the public interest in order
to encourage private investment in renewable energy
resources, stimulate economic growth, and enhance
the continued diversification of the energy resources
used in the United States.
(b) PURPOSES.—The purposes of this Act are to—
(1) ensure an economically efficient market in
electricity, in order to assure lower electricity rates
to consumers, higher quality services, and a more ro-
bust national economy;
(2) assure fair competition among participants
in the free market in electric power that will result
from restructuring the electric industry;
(3) internalize and protect the values of public
health, air, land, and water quality in the context of
a competitive market in electricity;
(4) encourage energy conservation and effi-
ciency and promote the use of renewable energy re-
sources.
(5) provide consumers with pertinent informa-
tion about the price, source, and air quality impact
of electric energy products;
(6) establish clear and uniform rules and proce-
dures for disclosing electric energy product informa-
tion to customers; and
(7) protect consumers against fair or fraudulent
business practices.
SEC. 3. DEFINITIONS.
In this Act:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) BOARD.—The term ‘‘Board’’ means the Na-
tional Electric System Public Benefits Board estab-
lished under section 5.
(3) COMMISSION.—The term ‘‘Commission’’
means the Federal Energy Regulatory Commission.
(4) COGENERATION.—The term ‘‘cogeneration’’
means a process of simultaneously generating elec-
tricity and thermal energy in which a portion of the
energy value of fuel consumed is recovered as heat
that is used to meet heating or cooling loads outside
the generation facility.
(5) COVERED
ELECTRIC
GENERATION
FACIL-
ITY.—The term ‘‘covered electric generation facility’’
means an electric generation facility (other than a
nuclear facility) with a nameplate capacity of 15
megawatts or greater that uses a combustion device
to generate electricity for sale.
(6) FUND.—The term ‘‘Fund’’ means the Na-
tional Electric System Public Benefits Fund estab-
lished by section 6.
(7) RENEWABLE ENERGY.—The term ‘‘renew-
able energy’’ means electricity generated from wind,
organic waste (excluding incinerated municipal solid
waste), or biomass (including anaerobic digestion
from farm systems and landfill gas recovery) or a
geothermal, solar thermal, or photovoltaic source.
For purposes of this paragraph, a farm system is an
electric generating facility that generates electric en-
ergy from the anaerobic digestion of agricultural
waste produced by farming that is located on the
farm where substantially all of the waste used is
produced.
(8) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
SEC. 4. ALLOWANCE PROGRAM FOR CERTAIN AIR POLLUT-
ANTS.
(a) IN GENERAL.—Part III of the Federal Power Act
is amended by redesignating sections 320 and 321 as sec-
tions 323 and 324 respectively and by inserting the fol-
lowing new sections after section 319:
‘‘SEC. 320. GENERATION PERFORMANCE STANDARDS AND
TONNAGE CAPS.
‘‘(a) OXIDES OF NITROGEN.—
‘‘(1) GENERATION PERFORMANCE STANDARD.—
For each covered period, the Commission shall cal-
culate a generation performance standard for oxides
of nitrogen from covered electric generating units in
the applicable region. The standard shall be equal to
the statutory tonnage cap for the covered period, as
set forth in paragraph (2), divided by the Commis-
sion’s estimate (under section 322(a)) of total elec-
tric generation from such units in the applicable re-
gion. The Commission shall publish such standard
(expressed in pounds per megawatt hour) at least 30
days prior to the beginning of the covered period
concerned.
‘‘(2) STATUTORY
TONNAGE
CAP.—The statu-
tory tonnage cap (expressed in millions of tons) for
emissions of oxides of nitrogen from covered electric
generating units in the applicable region for each
covered period shall be as follows:
Covered periods
Applicable region
Statutory tonnage
cap (million tons)
May 1–September 30, 2003 .......
22 Eastern States
0.54
May 1–September 30, 2004 .......
22 Eastern States
0.54
Jan. 1–December 31, 2005 and
each year thereafter ................
Continental US
1.66
‘‘(3) OZONE
EPISODES.—During each period
coinciding with exceedances of the National Ambient
Air Quality Standard for ozone, promulgated by the
Administrator of the Environmental Protection
Agency under the Clean Air Act (and during the 8
hours preceding such exceedances), each covered
unit with an actual emission rate greater than the
generation performance standard shall be required
to adjust its reported actual emissions under section
321(b) by a factor of up to 3, depending on the
unit’s distance from the exceedance. Units affected
by this subsection may meet their obligations under
section 321 either by emissions reductions at the af-
fected unit, or by surrendering allowances equal to
the difference between actual emissions and the
emission limitation provided in this subsection.
‘‘(b) FINE PARTICULATE MATTER.—
‘‘(1) GENERATION PERFORMANCE STANDARD.—
In order to reduce concentrations of sulfate fine par-
ticulate matter, for each calendar year in a covered
period, the Commission shall calculate a generation
performance standard for sulfur oxides from covered
electric generating units. The standard shall be
equal to the statutory tonnage cap for the covered
calendar year, as set forth in paragraph (2), divided
by the Commission’s estimate (under section 322(a))
of total electric generation from such units in the
applicable region. The Commission shall publish
such standard (expressed in pounds per megawatt
hour) at least 30 days prior to the beginning of the
covered year concerned.
‘‘(2) STATUTORY
TONNAGE
CAP.—The statu-
tory tonnage cap (expressed in millions of tons) for
fine particulate matter as measured by emissions of
sulfur oxides from covered electric generating units
in the continental United States for a covered period
shall be as follows:
Covered period
Statutory tonnage
cap (million tons)
2004 and thereafter ......................................................
4.0
‘‘(c) CARBON DIOXIDE.—
‘‘(1) GENERATION PERFORMANCE STANDARD.—
In order to reduce concentrations of carbon dioxide,
for each covered calendar year, the Commission shall
calculate a generation performance standard for car-
bon dioxide from covered electric generating units.
The standard shall be equal to the statutory tonnage
cap for the covered period, as set forth in paragraph
(2) divided by the Commission’s estimate (under sec-
tion 322(a)) of total electric generation from such
units in the applicable region. The Commission shall
publish such standard (expressed in pounds per
megawatt hour) at least 30 days prior to the begin-
ning of the covered period concerned.
‘‘(2) STATUTORY
TONNAGE
CAP.—The statu-
tory tonnage cap for carbon dioxide shall be 1.914
billion tons for the calendar year 2005 and each cal-
endar year thereafter.
‘‘(d) MERCURY EMISSION REDUCTIONS.—In order to
reduce concentrations of mercury, for each covered cal-
endar year, the Commission shall determine the emission
levels for mercury from covered electric generating units
during calendar year 1990 and promulgate regulations re-
quiring phased reductions from such level during calendar
years 2000 through 2004 such that by calendar year 2005
(and thereafter) no such unit will emit more than 50 per-
cent of the amount of mercury emitted by that unit during
calendar year 1990, and by calendar year 2010 (and
thereafter) no such unit will emit more than 10 percent
of the amount of mercury emitted by that unit during cal-
endar year 1990, with periodic review and study of tech-
nical and cost feasibility, based on progress in improving
mercury control technology and the ability of energy effi-
ciency and alternative energy sources to assist in meeting
the 90 percent reduction target.
‘‘SEC. 321. ALLOCATION AND TRADING OF ALLOWANCES;
COMPLIANCE.
‘‘(a) ALLOCATION AND TRADING OF ALLOWANCES.—
‘‘(1) IN GENERAL.—For each covered period,
the Commission shall allocate allowances for each
pollutant for which a tonnage cap has been estab-
lished pursuant to section 320, among covered units
in the applicable region by multiplying the genera-
tion performance standard for that covered period
for each such air pollutant by such unit’s electric
generation during the covered period.
‘‘(2) ENERGY
CONSERVATION.—The Commis-
sion shall also allocate allowances for such air pollut-
ants to each person in the applicable region who
demonstrates to the Commission (in accordance with
the measurement and verification protocol specified
in paragraph (4)) that such person has achieved a
reduction in gross electric energy demand during a
covered period, as certified by an independent body
approved by the Commission. The allowances allo-
cated to any such person shall be determined by
multiplying the generation performance standard for
the air pollutant concerned for the covered period by
such reduction in electric energy demand. Only one
person may apply for allowances for any particular
energy conservation action.
‘‘(3) CARRYOVER
AND
TRADING
OF
ALLOW-
ANCES.—Allowances allocated to any person for any
air pollutant for any covered period that are not
used to demonstrate compliance with subsection (b)
for that pollutant during any covered period may be
retained and used to demonstrate compliance with
such requirements by any person in a subsequent
covered period. Such allowances may be transferred
by the person to whom allocated to any other per-
son. Any person to whom such allowances have been
transferred may use the allowances in the covered
period or in a subsequent covered period to dem-
onstrate compliance with subsection (b) or may
transfer such allowances to any other person for
such purposes.
‘‘(4) MEASUREMENT AND VERIFICATION PRO-
TOCOL.—The Environmental Protection Agency, in
consultation with the Department of Energy, shall
develop a measurement and verification protocol that
provides for a reliable measure of energy savings
and that provides the necessary format for con-
verting measured and verified energy savings into a
reliable measure of reductions in power generation
related emissions of air pollutants as specified in
subsection 
(a)(1). 
Such 
measurement 
and
verification protocol may be derived from or based
on the International Measurement and Verification
Protocol or the New Jersey Measurement and
Verification Protocol, as appropriate.
‘‘(b) COMPLIANCE WITH ALLOWANCE LIMITS.—For
each covered period, the owner or operator of each covered
unit in the applicable region shall surrender to the Com-
mission a number of allowances for oxides of nitrogen, sul-
fur oxides, and the pollutants for which a statutory ton-
nage cap has been established pursuant to section 320,
equal to the total tonnage of each such air pollutant emit-
ted during the covered period. Emissions shall be deter-
mined based on continuous monitoring approved by the
Administrator. The Administrator may permit the average
rate of emissions from a covered unit over any covered
period to exceed the generation performance standard if
the generating plant has a sufficient quantity of emissions
credits.
‘‘(c) EXCESS EMISSIONS.—The owner or operator of
any covered unit that emits any pollutant for which a stat-
utory tonnage cap has been established pursuant to sec-
tion 320, for a covered period in any calendar year in ex-
cess of the allowances for such air pollutant that the owner
or operator holds for use for the unit for the covered pe-
riod shall be liable for the payment of an excess emissions
penalty, and shall be liable to offset the excess emissions
by an equal tonnage amount of such air pollutant in the
following covered period or such other period as the Com-
mission shall prescribe. The excess emissions penalty shall
be calculated on the basis of the number of tons emitted
in excess of the total number of allowances held, multiplied
by the applicable penalty baseline, indexed by inflation
under rules promulgated by the Commission. The penalty
baseline shall be $5,000 per ton for oxides of nitrogen and
sulfur oxides, and $100 per ton for carbon dioxide. The
Commission shall, by rule in consultation with the Admin-
istrator, establish penalties of equal effectiveness for other
pollutants for which a statutory tonnage cap has been es-
tablished pursuant to section 320. In the case of mercury,
the owner or operator of any covered unit that emits mer-
cury in excess of the emissions limit established for that
unit under section 320(d) shall be liable for an excess
emissions penalty in the amount of $2,500 for each ton
emitted in excess of the limit established under section
320(d). Any such penalty shall be due and payable without
transfer such functions and duties in accordance with such
finding. In any such case, such other department, agency,
or instrumentality shall be substituted for the Commission
for purposes of suits under subsection (c).
‘‘(c) CITIZEN SUIT.—Except as provided in para-
graph (4) of this subsection, any person may commence
a civil action on his own behalf—
‘‘(1) against any person (including (i) the
United States, and (ii) any other governmental in-
strumentality or agency to the extent permitted by
the Eleventh Amendment to the Constitution) who is
alleged to have violated (if there is evidence that the
alleged violation has been repeated) or to be in viola-
tion of (A) any requirement of section 320 or 321
or (B) an order issued by the Commission or a State
with respect to such requirements, and
‘‘(2) against the Commission where there is al-
leged a failure of the Commission to perform any act
or duty under section 320, 321, or 322 which is not
discretionary with the Commission.
The district courts shall have jurisdiction, without regard
to the amount in controversy or the citizenship of the par-
ties, to enforce compliance with the requirements of sec-
tions 320 and 321 or to order the Commission to perform
such act or duty, as the case may be, and to apply any
appropriate civil penalties (except for actions under para-
graph (2)). The district courts of the United States shall
have jurisdiction to compel (consistent with paragraph (2)
of this subsection) agency action unreasonably delayed. In
any such action for unreasonable delay, notice to the Com-
mission shall be provided 180 days before commencing
such action.
‘‘(3) No action may be commenced—
‘‘(A) under paragraph (1)—
‘‘(i) prior to 60 days after the plain-
tiff has given notice of the violation (I) to
the Commission, (II) to the State in which
the violation occurs, and (III) to any al-
leged violator of the standard, limitation,
or order, or
‘‘(ii) if the Commission or State has
commenced and is diligently prosecuting a
civil action in a court of the United States
or a State to require compliance with the
standard, limitation, or order, but in any
such action in a court of the United States
any person may intervene as a matter of
right.
‘‘(B) under paragraph (2) prior to 60 days
after the plaintiff has given notice of such ac-
tion to the Commission.
‘‘(4) The court in issuing any final order in any
action brought pursuant to paragraph (1), may
award costs of litigation (including reasonable attor-
ney and expert witness fees) to any party, whenever
the court determines such award is appropriate.’’.
(b) DEFINITIONS.—Section 3 of the Federal Power
Act is amended by adding the following after paragraph
(24):
‘‘(25) For oxides of nitrogen, the terms ‘appli-
cable region’ and ‘covered period’ refer to the appli-
cable regions and each of the covered periods speci-
fied in the chart in section 320(a)(2). For fine par-
ticulate matter and any other pollutant for which a
tonnage cap has been established pursuant to section
320, the term ‘applicable region’ means the conti-
nental United States. For fine particulate matter,
the term ‘covered period’ means each of the periods
specified as covered periods in the chart in section
320(b)(2).
‘‘(26) The term ‘covered electric generating
unit’ means an electric generating unit in the appli-
cable region with a nameplate capacity of 15 MWe
or greater.’’.
SEC. 5. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS
BOARD.
(a) ESTABLISHMENT.—The Secretary shall establish
a National Electric System Public Benefits Board to carry
out the functions and responsibilities described in this sec-
tion.
(b) MEMBERSHIP.—The Board shall be composed
of—
(1) 1 representative of the Commission ap-
pointed by the Commission;
(2) 2 representatives of the Secretary appointed
by the Secretary;
(3) 2 persons nominated by the national organi-
zation representing State regulatory commissioners
and appointed by the Secretary;
(4) 1 person nominated by the national organi-
zation representing State utility consumer advocates
and appointed by the Secretary;
(5) 1 person nominated by the national organi-
zation representing State energy offices and ap-
pointed by the Secretary;
(6) 1 person nominated by the national organi-
zation representing energy assistance directors and
appointed by the Secretary; and
(7) 1 representative of the Environmental Pro-
tection Agency appointed by the Administrator.
(c) CHAIRPERSON.—The Secretary shall select a
member of the Board to serve as Chairperson of the
Board.
(d) MANAGER.—
(1) APPOINTMENT.—The Board shall by con-
tract appoint an electric systems public benefits
manager for a term of not more than 3 years, which
term may be renewed by the Board.
(2) COMPENSATION.—The compensation and
other terms and conditions of employment of the
manager shall be determined by a contract between
the Board and the individual or the other entity ap-
pointed as manager.
(3) FUNCTIONS.—The manager shall—
(A) monitor the amounts in the Fund;
(B) 
receive, 
review, 
and 
make 
rec-
ommendations to the Board regarding applica-
tions from States under section 6(b); and
(C) perform such other functions as the
Board may require to assist the Board in car-
rying out its duties under this Act.
SEC. 6. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS
FUND.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Board shall establish an
account or accounts at one or more financial institu-
tions, which account or accounts shall be known as
the ‘‘National Electric System Public Benefits
Fund’’, consisting of amounts deposited in the fund
under subsection (c).
(2) STATUS OF FUND.—The wires charges col-
lected under subsection (c) and deposited in the
Fund—
(A) shall constitute electric system reve-
nues and shall not constitute funds of the
United States;
(B) shall be held in trust by the manager
of the Fund solely for the purposes stated in
subsection (b); and
(C) shall not be available to meet any obli-
gations of the United States.
(b) USE OF FUND.—
(1) FUNDING
OF
PUBLIC
PURPOSE
PRO-
GRAMS.—Amounts in the Fund shall be used by the
Board to provide matching funds to States for the
support of State public purpose programs relating
to—
(A) renewable energy sources;
(B) universal electric service;
(C) affordable electric service;
(D) energy conservation and efficiency;
(E) research and development in areas de-
scribed in subparagraphs (A) through (D), or
(F) disconnections during periods of ex-
treme cold or heat.
(2) DISTRIBUTION.—
(A) IN
GENERAL.—Except for amounts
needed to pay costs of the Board in carrying
out its duties under this section, the Board
shall instruct the manager of the Fund to dis-
tribute all amounts in the Fund to States to
fund public purpose programs under paragraph
(1).
(B) FUND SHARE.—
(i) IN
GENERAL.—Subject to clause
(iii), the Fund share of a public purpose
program funded under paragraph (1) shall
be 50 percent.
(ii) PROPORTIONATE
REDUCTION.—
To the extent that the amount of matching
funds requested by States exceeds the
maximum projected revenues of the Fund,
the matching funds distributed to the
States shall be reduced by an amount that
is proportionate to each State’s annual
consumption of electricity compared to the
Nation’s aggregate annual consumption of
electricity.
(iii) ADDITIONAL STATE FUNDING.—
A State may apply funds to public purpose
programs in addition to the amount of
funds applied for the purpose of matching
the Fund share.
(3) PROGRAM CRITERIA.—The Board shall rec-
ommend eligibility criteria for public benefits pro-
grams funded under this section for approval by the
Secretary.
(4) APPLICATION.—Not later than August 1 of
each year beginning in 2000, a State seeking match-
ing funds for the following year shall file with the
Board, in such form as the Board may require, an
application—
(A) certifying that the funds will be used
for an eligible public purpose program; and
(B) stating the amount of State funds ear-
marked for the program.
(c) WIRES CHARGE.—
(1) DETERMINATION OF NEEDED FUNDING.—
Not later than August 1 of each year, the Board
shall determine and inform the Commission of the
aggregate amount of wires charges that will be nec-
essary to be paid into the Fund to pay matching
funds to States and pay the operating costs of the
Board in the following year.
(2) IMPOSITION OF WIRES CHARGE.—
(A) IN GENERAL.—Not later than Decem-
ber 15 of each year, the Commission shall im-
pose a nonbypassable, competitively neutral
wires charge to be paid directly into the Fund
by the operator of the wire on electricity carried
through the wire (measured as it exits the
busbar at a generation facility) that affects
interstate commerce.
(B) AMOUNT.—The wires charge shall be
set at a rate equal to the lesser of—
(i) 2.0 mills per kilowatt-hour; or
(ii) a rate that is estimated to result
in the collection of an amount of wires
charges that is as nearly as possible equal
to the amount of needed funding deter-
mined under paragraph (1),
reduced by 50 percent of the amount of any wire
charge imposed on such electricity under State law
that is used by a State for State public purpose pro-
gram described in subsection (b)(1).
(3) DEPOSIT IN THE FUND.—The wires charge
shall be paid by the operator of the wire directly into
the Fund at the end of each month during the cal-
endar year for distribution by the electric systems
public benefits manager under section 5.
(4) PENALTIES.—The Commission may assess
against a wire operator that fails to pay a wires
charge as required by this subsection a civil penalty
in an amount equal to not more than the amount of
the unpaid wires charge.
(d) AUDITING.—
(1) IN GENERAL.—The Fund shall be audited
annually by a firm of independent certified public
accountants in accordance with generally accepted
auditing standards.
(2) ACCESS TO RECORDS.—Representatives of
the Secretary and the Commission shall have access
to all books, accounts, reports, files, and other
records pertaining to the Fund as necessary to fa-
cilitate and verify the audit.
(3) REPORTS.—
(A) IN GENERAL.—A report on each audit
shall be submitted to the Secretary, the Com-
mission, and the Secretary of the Treasury, who
shall submit the report to the President and
Congress not later than 180 days after the
close of the fiscal year.
(B) REQUIREMENTS.—An audit report
shall—
(i) set forth the scope of the audit;
and
(ii) include—
(I) a statement of assets and li-
abilities, capital; and surplus or def-
icit;
(II) a statement of surplus or
deficit analysis;
(III) a statement of income and
expenses;
(IV) any other information that
may be considered necessary to keep
the President and Congress informed
of the operations and financial condi-
tion of the Fund; and
(V) any recommendations with
respect to the Fund that the Sec-
retary or the Commission may have.
SEC. 7. RENEWABLE ENERGY PORTFOLIO STANDARDS.
(a) DEFINITION OF GENERATION FACILITY.—In this
section, the term ‘‘covered electric generation facility’’
means a nonhydroelectric facility that generates electric
energy for sale.
(b) REQUIRED RENEWABLE ENERGY.—Of the total
amount of electricity sold by covered electric generation
facilities during a calendar year, the amount generated by
emerging renewable energy sources shall be not less
than—
(1) 2.5 percent in 2000;
(2) 2.75 percent in 2001;
(3) 3 percent in 2002;
(4) 3.25 percent in 2003;
(5) 3.5 percent in 2004;
(6) 4.0 percent in 2005;
(7) 4.5 percent in 2006;
(8) 5 percent in 2007;
(9) 5.5 percent in 2008;
(10) 6.5 percent in 2009; and
(11) 7.5 percent in 2010 and each year there-
after.
(c) RENEWABLE ENERGY CREDITS.—
(1) IDENTIFICATION
OF
ENERGY
SOURCES.—
The Commission shall establish standards and pro-
cedures under which a covered electric generation fa-
cility shall certify to a purchaser of electricity—
(A) the amount of the electricity that is
generated by a renewable energy source; and
(B) the amount of the electricity that is
generated by a source other than a renewable
energy source.
(2) ISSUANCE OF RENEWABLE ENERGY CRED-
ITS.—Not later than April 1 of each year, beginning
in the year 2001, the Commission shall issue to a
covered electric generation facility 1 renewable en-
ergy credit for each megawatt-hour of electricity sold
by the covered electric generation facility in the pre-
ceding calendar year that was generated by a renew-
able source.
(3) SUBMISSION
OF
RENEWABLE
ENERGY
CREDITS.—Not later than July 1 of each year, a
covered electric generation facility shall submit cred-
its to the Commission in an amount equal to the
total number of megawatt-hours of electricity sold by
the covered electric generation facility in the pre-
ceding year multiplied by the applicable renewable
energy source requirement under subsection (a).
(4) USE OF RENEWABLE ENERGY CREDITS.—
(A) TIME FOR USE.—A renewable energy
credit shall be used for the calendar year for
the renewable energy credit is issued.
(B) PERMITTED USES.—Until July 1 of
the year in which a renewable energy credit was
issued, a covered electric generation facility
may—
(i) use the renewable energy credit to
make a submission to the Commission
under paragraph (3); or
(ii) on notice to the Commission, sell
or otherwise transfer a renewable energy
credit to another covered electric genera-
tion facility.
(d) RECORDKEEPING.—The Commission shall main-
tain records of all renewable energy credits issued and all
credits sold or exchanged.
(e) RENEWABLE ENERGY CREDIT COST CAP.—Be-
ginning with the year 2000, the Commission shall offer
renewable energy credits for sale. The Commission shall
charge 2.5 cents for each Renewable Energy Credit sold
during calendar year 2000. On January 1 of each fol-
lowing year, the Commission shall adjust for inflation,
based on the Consumer Price Index, the price charged per
credit for that calendar year. The Commission shall de-
posit in a separate account the amount received from a
sale under this subsection. Amounts in the separate ac-
count shall be available, without further appropriation, to
the Secretary of Energy to be used for purposes of pro-
viding assistance for research and development of cleaner
burning fuels and renewable energy.
(f) PENALTIES.—The Commission may bring an ac-
tion in United States district court to impose a civil pen-
alty on any person that fails to comply with subsection
(a). A person that fails to comply with a requirement to
submit renewable energy credits under subsection (b)(3)
shall be subject to a civil penalty of not more than 3 times
the estimated national average market value (as deter-
mined by the Commission) for the calendar year concerned
of that quantity of renewable energy credits.
(g) POWERS.—The Commission may promulgate
such regulations, conduct such investigations, and take
such other actions as are necessary or appropriate to im-
plement and obtain compliance with this section and regu-
lations promulgated under this section.
SEC. 8. NET METERING.
(a) AMENDMENT OF PURPA.—The Public Utility
Regulatory Polices Act of 1978 is amended by adding the
following new section after section 214:
‘‘SEC. 215. NET METERING.
‘‘(a) DEFINITIONS.—For purposes of this section—
‘‘(1) The term ‘eligible on-site generating facil-
ity’ means a facility on the site of a residential elec-
tric consumer with a maximum generating capacity
of 100 kilowatts or less that is fueled by solar or
wind energy or a facility on the site of a commercial
electric consumer with a maximum generating ca-
pacity of 250 kilowatts or less that is fueled solely
by a renewable energy resource.
‘‘(2) The term ‘renewable energy resource’
means solar energy, wind energy, biomass, and fuel
cells.
‘‘(3) The term ‘net metering service’ means
service to an electric consumer under which elec-
tricity generated by that consumer from an eligible
on-site generating facility and delivered to the dis-
tribution system through the same meter through
which purchased electricity is received may be used
to offset electricity provided by the retail electric
supplier to the electric consumer during the applica-
ble billing period so that an electric consumer is
billed only for the net electricity consumed during
the billing period, but in no event shall the net be
less than zero during any calendar year.
‘‘(b) REQUIREMENT TO PROVIDE NET METERING
SERVICE.—Each retail electric supplier shall make avail-
able upon request net metering service to any retail elec-
tric consumer that the supplier currently serves or solicits
for service.
‘‘(c) RATES AND CHARGES.—
‘‘(1) IDENTICAL
CHARGES.—A retail electric
supplier—
‘‘(A) shall charge the owner or operator of
an on-site generating facility rates and charges
that are identical to those that would be
charged other retail electric customers of the
electric company in the same rate class; and
‘‘(B) shall not charge the owner or oper-
ator of an on-site generating facility any addi-
tional standby, capacity, interconnection, or
other rate or charge.
‘‘(2) MEASUREMENT.—A retail electric supplier
that supplies electricity to the owner or operator of
an on-site generating facility shall measure the
quantity of electricity produced by the on-site facility
and the quantity of electricity consumed by the
owner or operator of an on-site generating facility
during a billing period in accordance with normal
metering practices.
‘‘(3) ELECTRICITY SUPPLIED EXCEEDING ELEC-
TRICITY GENERATED.—If the quantity of electricity
supplied by a retail electric supplier during a billing
period exceeds the quantity of electricity generated
by an on-site generating facility and fed back to the
electric distribution system during the billing period,
the supplier may bill the owner or operator for the
net quantity of electricity supplied by the retail elec-
tric supplier, in accordance with normal metering
practices.
‘‘(4) ELECTRICITY
GENERATED
EXCEEDING
ELECTRICITY
SUPPLIED.—If the quantity of elec-
tricity generated by an on-site generating facility
during a billing period exceeds the quantity of elec-
tricity supplied by the retail electric supplier during
the billing period—
‘‘(A) the retail electric supplier may bill
the owner or operator of the on-site generating
facility for the appropriate charges for the bill-
ing period in accordance with paragraph (2);
and
‘‘(B) the owner or operator of the on-site
generating facility shall be credited for the ex-
cess kilowatt-hours generated during the billing
period, with the kilowatt-hour credit appearing
on the bill for the following billing period.
‘‘(5) UNUSED CREDITS.—At the beginning of
each calendar year, any unused kilowatt-hour credits
accumulated by an owner or operator of an on-site
generating facility during the previous calendar year
shall expire without compensation to the owner or
operator of an on-site generating facility.
‘‘(d) SAFETY AND PERFORMANCE STANDARDS.—(1)
An eligible on-site generating facility and net metering
system used by a retail electric consumer shall meet all
applicable safety, performance, reliability, and inter-
connection standards established by the National Elec-
trical Code, the Institute of Electrical and Electronics En-
gineers, and Underwriters Laboratories.
‘‘(2) The Commission, after consultation with State
regulatory authorities and nonregulated local distribution
Such standards shall be consistent with all applicable safe-
ty and performance standards established by the national
electrical code, the Institute of Electrical and Electronics
Engineers, or Underwriters Laboratories and with such
additional safety and reliability standards as the Commis-
sion shall, by rule, prescribe.
‘‘(2) The regulations 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.
‘‘(f) STATE AUTHORITY.—This section does not pre-
clude a State from imposing additional requirements con-
sistent with the requirements in this section, including the
imposition of a cap limiting the amount of net metering
available in the State. Nothing in this Act or any other
Federal law preempts or otherwise affects authority under
State law to require a retail electric supplier to make avail-
able net metering service to a retail electric consumer
which the supplier serves or offers to serve.’’.
(c) TABLE OF CONTENTS.—The table of contents for
title II of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2601 and following) is amended by add-
ing the following at the end thereof:
‘‘Sec. 215. Net metering.’’.
SEC. 9. DISCLOSURE REQUIREMENTS.
Title II of the Public Utility Regulatory Policies Act
of 1978 is amended by adding the following new section
at the end thereof:
‘‘SEC. 214. DISCLOSURE REQUIREMENTS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) EMISSIONS
DATA.—The term ‘emissions
data’ means the type and amount of each pollutant
emitted by a generation facility in generating elec-
tricity.
‘‘(2) GENERATION
DATA.—The term ‘genera-
tion data’ means the type of fuel (such as coal, oil,
nuclear energy, or solar power) used by a generation
facility to generate electricity.
‘‘(b) DISCLOSURE SYSTEM.—Not later than January
1, 2001, the Secretary, in consultation with the Commis-
sion, the Federal Trade Commission, the Administrator
of the Environmental Protection Agency, the Adminis-
trator of the Food and Drug Administration, and the Ad-
ministrator of the Energy Information Administration
shall prescribe a rule establishing a system of disclosure
that—
‘‘(1) enables retail consumers to knowledgeably
compare, prior to purchase, retail electric service of-
ferings, including comparisons based on generation
source portfolios, emissions data, and price terms;
and
‘‘(2) considers such factors as—
‘‘(A) cost of implementation;
‘‘(B) confidentiality of information; and
‘‘(C) flexibility.
The rule under this section shall set forth the form, con-
tent, timing, and frequency of the disclosure required.
Such rule shall also require such disclosures in connection
with wholesale sales of electric energy, and such systems
of tracking sales of electric energy, as may be necessary
to carry out the requirements of this section.
‘‘(c) REGULATION.—In accordance with the system
established under subsection (b), each person selling elec-
tric energy shall disclose to its customers emissions and
generation data for the electric energy sold and informa-
tion about whether the service is firm or interruptible.
When a seller has obtained electricity from more than 1
source that comprises 2 percent or more of the seller’s
energy portfolio, the disclosure shall include the percent-
age (accurate to within 1 percent) breakdown of the var-
ious sources of generation relied upon by the seller. When
a seller has obtained electricity from a power pool, this
fact shall be disclosed, and the seller shall disclose the ge-
neric categories (with percentages where applicable) of
power dispatched by the pool during the previous billing
cycle.
‘‘(d) TIMELINESS
OF DISCLOSURE.—Each electric
utility shall include the disclosures required under this sec-
tion in all written communications describing an energy
product sent directly to consumers, including written of-
fers and direct mail advertisements, and in materials ap-
pearing at internet sites. Each electric utility shall ensure
that the required disclosures are sent directly to a con-
sumer (1) prior to the consumer’s acceptance of an offer
of an energy product, or (2) in a post-sale mailing that
begins a period during which the consumer may withdraw
that acceptance. On a quarterly basis, such utility shall
include the disclosures required under subsection (c) in
each of its customer’s bills or in a separate mailing.
‘‘(e) FORMAT OF DISCLOSURE.—In promulgating the
rules required under this section, the Secretary shall de-
velop standard formats for disclosure of energy product
information required under this section. Such formats
shall include a graphic representation of the characteris-
tics of the energy product being offered or the supplier’s
total energy portfolio, as appropriate, and a comparison
with regional averages. The Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall determine, and address in rules to be issued
under this section, whether and how default generation
source and emissions values may be used in disclosure
statements as a proxy for that portion of the supplier’s
energy portfolio that cannot be identified from the infor-
mation provided under subsection (f).
‘‘(f) DISCLOSURE TO WHOLESALE CUSTOMERS.—In
every sale of electricity for resale, the seller shall provide
to the purchaser such information respecting generation
source and emissions characteristics as the Secretary may
require by rules under this section. This information may
include, but shall not be limited to, information from re-
gional system operators and administrators on wholesale
transactions, transactions in regional spot markets and
energy imported from other control areas; information
from wholesale and retail power marketing companies on
transactions with other sellers; and information from gen-
erating companies on the amount of energy generated at
each plant, the environmental characteristics of that en-
ergy and the amount of energy sold. The Secretary shall
have the authority to require all sellers to participate in
a tracking system designed to provide customers with com-
prehensive environmental information. Notwithstanding
the provisions of the Energy Supply and Environmental
Coordination Act of 1974, the Secretary shall determine
what information shall be kept confidential and what in-
formation shall be made available to the public.
‘‘(g) ENERGY INFORMATION ADMINISTRATION.—The
Administrator of the Energy Information Administration
shall make available to the general public, on the same
basis as he now reports such data from public utilities,
electric power, fuel use and environmental data, including
respondent-level data, from all survey respondents in the
electric generation industry.
‘‘(h) 
AUTHORITY
TO
OBTAIN
BOOKS
AND
RECORDS.—Authority to obtain information under section
11 of the Energy Supply and Environmental Coordination
Act of 1974 (15 U.S.C. 796) is available to the Secretary
to administer this section and to the Federal Trade Com-
mission to enforce this section. The Secretary shall take
appropriate action to protect the confidentiality of com-
petitively sensitive information.
‘‘(i) PROHIBITED ACTS AND ENFORCEMENT.—It is
an unfair or deceptive act or practice in or affecting com-
merce (within the meaning of section 5(a)(1) of the Fed-
eral Trade Commission Act (15 U.S.C. 45(a)(1)) for any
person to fail to provide information required under the
rules issued under this section or to provide false or mis-
leading information with respect to disclosures required by
this section or the rules issued under this section.
‘‘(j) STATE AUTHORITY.—Nothing in this section
shall preclude or deny the right of any State or political
subdivision thereof to adopt or enforce any law or rule pre-
scribing the form, content, or timing of supplier disclosure
in addition to the requirements of this section.
‘‘(k) REGULATIONS.—The Secretary may promulgate
such regulations, conduct such investigations, and take
such other actions as are necessary or appropriate to im-
plement and obtain compliance with this section and regu-
lations promulgated under this section.’’.
SEC. 10. STATE AND LOCAL LAW.
Nothing in this Act precludes a State or political sub-
division of a State from adopting and enforcing—
(1) any standard or limitation respecting emis-
sions of air pollutants; or
(2) any requirement respecting control or
abatement of air pollution;
except that a State or political subdivision may not adopt
or enforce any emission standard or limitation that is less
stringent than the requirements imposed under this Act.
SEC. 11. PURPA REPEAL.
(a) NEW CONTRACTS.—After the date of enactment
of this Act, no electric utility shall be required to enter
into a new contract or obligation to purchase or to sell
electric energy or capacity pursuant to section 210 of the
Public Utility Regulatory Policies Act of 1978.
(b) EXISTING RIGHTS
AND REMEDIES NOT AF-
FECTED.—Nothing in this section affects the rights or
remedies of any party with respect to the purchase or sale
of electric energy or capacity from or to a facility deter-
mined to be a qualifying small power production facility
or a qualifying cogeneration facility under section 210 of
the Public Utility Regulatory Policies Act of 1978 pursu-
ant to any contract or obligation to purchase or to sell
electric energy or capacity in effect on the date of enact-
ment of this Act, including the right to recover the costs
of purchasing such electric energy or capacity.
(c) INTERPRETATIONS AND ACTIONS TAKEN.—Noth-
ing in this Act may be deemed or construed as implying
congressional ratification of any interpretation of, or any
action taken pursuant to, the Public Utility Regulatory
Policies Act of 1978.
(d) RECOVERY OF COSTS.—In order to assure the
sanctity of existing contracts and recovery by electric utili-
ties purchasing electric energy or capacity from a quali-
fying facility pursuant to any legally enforceable obligation
entered into or imposed pursuant to section 210 of the
Public Utility Regulatory Policies Act of 1978 prior to the
date of enactment of this Act of all costs associated with
such purchases, the Commission shall promulgate and en-
force such regulations as may be required to assure that
an electric utility shall collect the costs associated with
such purchases from a qualifying facility upon honoring
its obligations under such contracts. Such regulations
shall be treated as a rule enforceable under the Federal
Power Act (16 U.S.C. 791a–825r).
(e) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(2) The term ‘‘electric utility’’ means any per-
son, State agency, or Federal agency, which sells
electric energy.
(3) The term ‘‘qualifying small power produc-
tion facility’’ has the same meaning as provided in
section 3(17)(C) of the Federal Power Act.
(4) The term ‘‘qualifying cogeneration facility’’
has the same meaning as provided in section
3(18)(A) of the Federal Power Act.
(5) The term ‘‘qualifying facility’’ means either
a small power production facility or a qualifying co-
generation facility.
SEC. 12. ILLEGAL CHANGES IN RETAIL CUSTOMER SELEC-
TIONS.
Title II of the Public Utility Regulatory Policies Act
of 1978 is amended by adding the following new section
at the end thereof:
‘‘SEC. 216. ILLEGAL CHANGES IN RETAIL CUSTOMER SE-
LECTIONS (SLAMMING PROHIBITION); CRAM-
MING PROHIBITION.
‘‘(a) PROHIBITION.—No person shall submit or exe-
cute (1) a change in the selection made by a retail electric
supply customer, or (2) a change to the number of prod-
ucts or services offered, except in accordance with such
verification procedures as the State regulatory authority
shall prescribe. Such authority may also prescribe such ad-
ditional procedures regarding changes in retail electric
supply customer selection and changes in the number of
producs or services offered.
‘‘(b) LIABILITY FOR CHARGES.—Any person who vio-
lates the verification procedures described in subsection
(a) and who collects charges from a customer shall be
liable—
‘‘(1) to the customer in an amount equal to all
charges paid by such customer after violation; and
‘‘(2) in the case of a change referred to in sub-
section (a)(1), to the retail electric supplier pre-
viously selected by the customer in an amount equal
to all charges paid by such customer after violation.
Such authority may prescribe procedures for the recovery
of the amounts referred to in paragraphs (1) and (2) of
this subsection. The remedies provided by this section are
in addition to any other remedies available by law.’’
SEC. 13. PRIVACY OF CONSUMER PROPRIETARY INFORMA-
TION.
Title II of the Public Utility Regulatory Policies Act
of 1978 is amended by adding the following new section
at the end thereof:
‘‘SEC. 218. PRIVACY OF CONSUMER PROPRIETARY INFOR-
MATION.
‘‘(a) PRIVACY REQUIREMENTS.—Except as required
by law or with the prior written affirmative approval of
the consumer, any person that receives or obtains cus-
tomer information by virtue of its provision of a retail elec-
tric service or metering and billing service shall only use,
disclose, or permit access to individually identifiable con-
sumer information in its provision of (1) a retail electric
service or metering and billing service from which such
information is derived, or (2) services necessary to, or used
in, the provision of such service.
‘‘(b) DISCLOSURE ON REQUEST BY CONSUMERS.—
An electric utility or metering and billing service provider
shall disclose consumer information, upon affirmative
written request by the consumer, to any person designated
by the consumer.
‘‘(c) AGGREGATE CONSUMER INFORMATION.—Any
person that receives or obtains consumer information by
virtue of its provision of retail electric service or metering
and billing services may use, disclose, or permit access to
aggregate consumer information other than for the pur-
poses described in subsection (a). An electric utility or me-
tering or billing service provider may use, disclose, or per-
mit access to aggregate consumer information other than
for purposes described in subsection (a) only if it provides
such aggregate information to other retail electric service
providers on reasonable and nondiscriminatory terms and
conditions upon reasonable request for such information.
‘‘(d) EXCEPTIONS.—Nothing in this section prohibits
an electric utility or metering and billing service provider
from using, disclosing, or permitting access to consumer
information obtained from its consumers, either directly
or indirectly through its agents—
‘‘(1) to initiate, render, bill, and collect for re-
tail electric services or metering and billing services;
‘‘(2) to protect the rights or property of the
electric utility or metering and billing service pro-
vider, or to protect consumers of those services and
other service providers from fraudulent, abusive, un-
lawful use of, or subscription to such services; or
‘‘(3) for purposes of compliance with any other
Federal or State law or regulation authorizing dis-
closure of information to a Federal or State agency.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) CONSUMER
INFORMATION.—The term
‘consumer information’ means—
‘‘(A) information that relates to the quan-
tity, technical configuration, type, destination,
and amount of use of a retail electric service
subscribed to by any consumer, and that is
made available to an electric utility or metering
and billing service provider solely by virtue of
its business relationship; and
‘‘(B) information contained in the bills per-
taining to retail electric service received by a
consumer.
‘‘(2) AGGREGATE CONSUMER INFORMATION.—
The term ‘aggregate consumer information’ means
collective data that relates to a group or category of
services or consumers, from which individual con-
sumer identities and characteristics have been re-
moved.’’.
Æ