I 
108TH CONGRESS 
1ST SESSION H. R. 1423
To amend the Internal Revenue Code of 1986 to expand the energy credit 
to include investment in property which produces energy from certain 
renewable sources and expenditures for cool roofing, and for other pur-
poses. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 25, 2003
Mr. ENGEL (for himself and Mr. TERRY) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committee on Energy and Commerce, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
the energy credit to include investment in property which 
produces energy from certain renewable sources and ex-
penditures for cool roofing, 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. 
This Act may be cited as the ‘‘Preserving Our 
World’s Energy and Resources Act of 2003’’.
SEC. 2. ENERGY CREDIT FOR INVESTMENTS IN CERTAIN 
RENEWABLE 
RESOURCE 
PROPERTY 
AND 
COOL ROOF PROPERTY. 
(a) ENERGY PROPERTY USED IN BUSINESS.—
(1) IN GENERAL.—Subparagraph (A) of section 
48(a)(3) of the Internal Revenue Code of 1986 (de-
fining energy property) is amended by striking ‘‘or’’ 
at the end of clause (i) and by inserting after clause 
(ii) the following new clauses: 
‘‘(iii) equipment which uses wind to 
generate electricity, or 
‘‘(iv) cool roof property,’’. 
(2) ENERGY PERCENTAGE.—Paragraph (2) of 
section 48(a) of such Code (relating to energy per-
centage) is amended—
(A) in subparagraph (A) by striking ‘‘The’’ 
and inserting ‘‘Except as provided in subpara-
graph (B), the’’, and 
(B) by redesignating subparagraph (B) as 
subparagraph (C) and by inserting after sub-
paragraph (A) the following new subparagraph: 
‘‘(B) EXCEPTION.—The energy percentage 
for the following properties is— 
‘‘(i) 25 percent for equipment which 
uses solar energy to generate electricity,
‘‘(ii) 25 percent for equipment which 
uses wind to generate electricity, 
‘‘(iii) 25 percent for equipment which 
uses energy derived from geothermal de-
posits and which is described in paragraph 
(3)(A)(ii), and 
‘‘(iv) 30 percent for cool roof prop-
erty.’’. 
(3) COOL
ROOF
PROPERTY
DEFINED.—Sub-
section (a) of section 48 of such Code (relating to 
energy credit) is amended by redesignating para-
graphs (4) and (5) as paragraphs (5) and (6), re-
spectively, and by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) COOL ROOF PROPERTY.—For purposes of 
this subsection, the term ‘cool roof property’ means 
property which is used as a roof or roof coating and 
which has a solar reflectance index (as determined 
by the Lawrence Berkeley National Laboratory) of 
65 percent or greater.’’. 
(4) CREDIT
ALLOWABLE
AGAINST
REGULAR 
AND MINIMUM TAX.—
(A) IN GENERAL.—Section 38(c) of such 
Code (relating to limitation based on amount of 
tax) is amended by redesignating paragraph (3)
as paragraph (4) and inserting after paragraph 
(2) the following: 
‘‘(3) SPECIAL RULES FOR ENERGY CREDIT RE-
LATING TO EQUIPMENT WHICH USES WIND TO GEN-
ERATE ELECTRICITY AND COOL ROOF PROPERTY.—
‘‘(A) IN GENERAL.—In the case of the por-
tion of the energy credit relating to equipment 
which uses wind to generate electricity and cool 
roof property—
‘‘(i) this section and section 39 shall 
be applied separately with respect to such 
portion of the credit, and 
‘‘(ii) in applying paragraph (1) to 
such portion of the credit—
‘‘(I) subparagraphs (A) and (B) 
thereof shall not apply, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the 
taxable year (other than such por-
tion). 
‘‘(B) PORTION OF ENERGY CREDIT RELAT-
ING TO EQUIPMENT WHICH USES WIND TO GEN-
ERATE
ELECTRICITY
AND
COOL
ROOF
PROP-
ERTY.—For purposes of this subsection, the 
portion of energy credit relating to equipment 
which uses wind to generate electricity and cool 
roof property means the credit allowable under 
subsection (a) by reason of clauses (iii) and (iv) 
of section 48(a)(3)(A).’’. 
(B) 
CONFORMING
AMENDMENT.—Sub-
clause (II) of section 38(c)(2)(A)(ii) of such 
Code is amended by inserting ‘‘or the portion of 
energy credit relating to equipment which uses 
wind to generate electricity and cool roof prop-
erty’’ after ‘‘employment credit’’. 
(b) RENEWABLE RESOURCE AND COOL ROOF PROP-
ERTY.—
(1) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of such Code (relating to 
nonrefundable personal credits) is amended by in-
serting after section 25B the following new section: 
‘‘SEC. 25C. CERTAIN RENEWABLE RESOURCE AND COOL 
ROOF PROPERTY. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the amount paid or incurred by the taxpayer for
qualified renewable resource property and qualified cool 
roof property installed during such taxable year.
‘‘(b) LIMITATION.—
‘‘(1) LIMITATION
BASED
ON
AMOUNT
OF 
TAX.—The credit allowed under subsection (a) for 
any taxable year shall not exceed the excess of—
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this subpart (other than this section) and 
section 27 for the taxable year. 
‘‘(2) CARRYFORWARD OF UNUSED CREDIT.—If 
the credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED RENEWABLE RESOURCE PROP-
ERTY.—The term ‘qualified renewable resource prop-
erty’ means—
‘‘(A) equipment which uses solar energy to 
generate electricity,
‘‘(B) equipment which uses wind to gen-
erate electricity, and 
‘‘(C) equipment which uses energy derived 
from geothermal deposits to generate electricity 
and 
which 
is 
described 
in 
section 
48(a)(3)(A)(ii). 
‘‘(2) COOL ROOF PROPERTY.—The term ‘cool 
roof property’ means property which is used as a 
roof or roof coating and which has a solar reflec-
tance index (as determined by the Lawrence Berke-
ley National Laboratory) of 65 percent or greater. 
‘‘(3) LABOR
COSTS.—Expenditures for labor 
costs properly allocable to the onsite preparation, as-
sembly, or original installation of the property de-
scribed in paragraph (1) or (2) and for wiring to 
interconnect such property to the dwelling unit shall 
be taken into account for purposes of this section. 
‘‘(4) ENERGY
STORAGE
MEDIUM.—Expendi-
tures which are properly allocable to a swimming 
pool, hot tub, or any other energy storage medium 
which has a function other than the function of such 
storage shall not be taken into account for purposes 
of this section. 
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion—
‘‘(1) PROPERTY MUST BE INSTALLED ON PRIN-
CIPAL RESIDENCE.—Property shall not be treated as 
described in subsection (c) unless—
‘‘(A) such property is installed in or on a 
dwelling—
‘‘(i) located in the United States, and 
‘‘(ii) owned and used by the taxpayer 
as the taxpayer’s principal residence (with-
in the meaning of section 121), 
‘‘(B) the original use of such property 
commences with the taxpayer, and 
‘‘(C) such property reasonably can be ex-
pected to remain in use for at least 5 years. 
‘‘(2) DOLLAR AMOUNTS IN CASE OF JOINT OC-
CUPANCY.—In the case of any dwelling unit which is 
jointly occupied and used during any calendar year 
as a residence by 2 or more individuals the following 
shall apply: 
‘‘(A) The amount of the credit allowable 
under subsection (a) by reason of expenditures 
for qualified renewable resource property and 
qualified cool roof property made during such 
calendar year by any of such individuals with 
respect to such dwelling unit shall be deter-
mined by treating all of such individuals as 1
taxpayer whose taxable year is such calendar 
year. 
‘‘(B) There shall be allowable with respect 
to such expenditures to each of such individ-
uals, a credit under subsection (a) for the tax-
able year in which such calendar year ends in 
an amount which bears the same ratio to the 
amount determined under subparagraph (A) as 
the amount of such expenditures made by such 
individual during such calendar year bears to 
the aggregate of such expenditures made by all 
of such individuals during such calendar year. 
‘‘(3) TENANT-STOCKHOLDER IN COOPERATIVE 
HOUSING CORPORATION.—In the case of an indi-
vidual who is a tenant-stockholder (as defined in sec-
tion 216) in a cooperative housing corporation (as 
defined in such section), such individual shall be 
treated as having paid his tenant-stockholder’s pro-
portionate share (as defined in section 216(b)(3)) of 
the cost of qualified renewable resource property and 
qualified cool roof property made by such corpora-
tion. 
‘‘(4) CONDOMINIUMS.—
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who is a member of a condominium man-
agement association with respect to a condo-
minium which he owns, such individual shall be 
treated as having paid his proportionate share 
of the cost of qualified renewable resource prop-
erty and qualified cool roof property made by 
such association. 
‘‘(B) CONDOMINIUM
MANAGEMENT
ASSO-
CIATION.—For purposes of this paragraph, the 
term ‘condominium management association’ 
means an organization which meets the require-
ments of paragraph (1) of section 528(c) (other 
than subparagraph (E) thereof) with respect to 
a condominium project substantially all of the 
units of which are used as residences. 
‘‘(5) MANUFACTURED HOMES INCLUDED.—For 
purposes of this section, the term ‘dwelling’ includes 
a manufactured home which conforms to Federal 
Manufactured Home Construction and Safety Stand-
ards (24 C.F.R. 3280). 
‘‘(6) JOINT OWNERSHIP OF ITEMS OF SOLAR OR 
WIND ENERGY PROPERTY.—
‘‘(A) IN GENERAL.—Any expenditure oth-
erwise qualifying as an expenditure described in 
paragraph (1) or (2) of subsection (c) shall not 
be treated as failing to so qualify merely be-
cause such expenditure was made with respect 
to 2 or more dwelling units. 
‘‘(B) LIMITS
APPLIED
SEPARATELY.—In 
the case of any expenditure described in sub-
paragraph (A), the amount of the credit allow-
able under subsection (a) shall (subject to para-
graph (1)) be computed separately with respect 
to the amount of the expenditure made for each 
dwelling unit. 
‘‘(7) ALLOCATION IN CERTAIN CASES.—If less 
than 80 percent of the use of an item is for nonbusi-
ness residential purposes, only that portion of the 
expenditures for such item which is properly allo-
cable to use for nonbusiness residential purposes 
shall be taken into account. For purposes of this 
paragraph, use for a swimming pool shall be treated 
as use which is not for residential purposes. 
‘‘(8) WHEN EXPENDITURE MADE; AMOUNT OF 
EXPENDITURE.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), an expenditure with respect 
to an item shall be treated as made when the 
original installation of the item is completed. 
‘‘(B) EXPENDITURES PART OF BUILDING 
CONSTRUCTION.—In the case of an expenditure
in connection with the construction or recon-
struction of a structure, such expenditure shall 
be treated as made when the original use of the 
constructed or reconstructed structure by the 
taxpayer begins. 
‘‘(C) AMOUNT.—The amount of any ex-
penditure shall be the cost thereof. 
‘‘(9) REDUCTION OF CREDIT FOR GRANTS, TAX-
EXEMPT BONDS, AND SUBSIDIZED ENERGY FINANC-
ING.—The rules of section 29(b)(3) shall apply for 
purposes of this section. 
‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure with respect to any property, the increase in the 
basis of such property which would (but for this sub-
section) result from such expenditure shall be reduced by 
the amount of the credit so allowed.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Subsection (c) of section 23 of such Code 
is amended by striking ‘‘sections 24’’ and inserting 
‘‘sections 24, 25C,’’. 
(2) Subparagraph (C) of section 25(e)(1) of 
such Code is amended by inserting ‘‘25C’’ after 
‘‘25B,’’.
(3) Paragraph (1) of section 26(a) of such Code 
is amended by striking ‘‘and 25B’’ and inserting 
‘‘25B, and 25C’’. 
(4) Section 904(h) of such Code is amended by 
striking ‘‘and 25B’’ and inserting ‘‘25B, and 25C’’. 
(5) Subsection (d) of section 1400C of such 
Code is amended by striking ‘‘and 25B’’ and insert-
ing ‘‘25B, and 25C’’. 
(6) Subsection (a) of section 1016 of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (27), by striking the period at the end of 
paragraph (28) and inserting ‘‘; and’’, and by add-
ing at the end the following: 
‘‘(29) to the extent provided in section 25C(e), 
in the case of amounts with respect to which a credit 
has been allowed under section 25C.’’. 
(7) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 25B the following new item:
‘‘Sec. 25C. Certain renewable resource and cool roof property.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending on or after 
the date of the enactment of this Act.
SEC. 3. NET METERING. 
Part II of the Federal Power Act is amended by add-
ing the following new section at the end thereof: 
‘‘SEC. 215. NET METERING. 
‘‘(a) DEFINITIONS.—As used in this section: 
‘‘(1) The term ‘customer-generator’ means the 
owner or operator of an electric generation unit 
qualified for net metering under this section. 
‘‘(2) The term ‘net metering’ means measuring 
the difference between the electricity supplied to a 
customer-generator and the electricity generated by 
a customer-generator that is delivered to a local dis-
tribution section system at the same point of inter-
connection during an applicable billing period. 
‘‘(3) The terms ‘electric generation unit quali-
fied for net metering’ and ‘qualified generation unit’ 
mean an electric energy generation unit that meets 
the requirements of paragraph (5) and each of the 
following requirements: 
‘‘(A) The unit is a fuel cell or uses as its 
energy source either solar, wind, or biomass. 
‘‘(B) The unit has a generating capacity of 
not more than 100 kilowatts. 
‘‘(C) The unit is located on premises that 
are owned, operated, leased, or otherwise con-
trolled by the customer-generator.
‘‘(D) The unit operates in parallel with the 
retail electric supplier. 
‘‘(E) The unit is intended primarily to off-
set part or all of the customer-generator’s re-
quirements for electric energy. 
‘‘(4) The term ‘retail electric supplier’ means 
any person that sells electric energy to the ultimate 
consumer thereof. 
‘‘(5) The term ‘local distribution system’ means 
any system for the distribution section of electric en-
ergy to the ultimate consumer thereof, whether or 
not the owner or operator of such system is also a 
retail electric supplier. 
‘‘(b) ADOPTION.—Not later than one year after the 
enactment of this section, each retail electric supplier shall 
comply with each of the following requirements and notify 
all of its retail customers of such requirements not less 
frequently than quarterly: 
‘‘(1) The supplier shall offer to arrange (either 
directly or through a local distribution company or 
other third party) to make available, on a first-come-
first-served basis, to each of its retail customers that 
has installed an energy generation unit that is in-
tended for net metering and that notifies the sup-
plier of its generating capacity an electric energy
meter that is capable of net metering if the cus-
tomer-generator’s existing electrical meter cannot 
perform that function. 
‘‘(2) Rates and charges and contract terms and 
conditions for the sale of electric energy to cus-
tomer-generators shall be the same as the rates and 
charges and contract terms and conditions that 
would be applicable if the customer-generator did 
not own or operate a qualified generation unit and 
use a net metering system. 
Any retail electric supplier or local distribution company 
may, at its own expense, install one or more additional 
electric energy meters to monitor the flow of electricity 
in either direction or to reflect the time of generation or 
both. Whenever a customer-generator with a net metering 
system uses any energy generation system entitled to cred-
its under a Federal minimum renewable energy generation 
requirement, the total amount of energy generated by that 
system shall be treated as generated by the retail electric 
supplier for purposes of such requirement. 
‘‘(c) NET ENERGY MEASUREMENT AND BILLING.—
Each retail electric supplier subject to subsection (b) shall 
calculate the net energy measurement for a customer 
using a net metering system in the following manner:
‘‘(1) The retail electric supplier shall measure 
the net electricity produced or consumed during the 
billing period using the metering referred to in para-
graph (1) or (2) of subsection (b). 
‘‘(2) If the electricity supplied by the retail elec-
tric supplier exceeds the electricity generated by the 
customer-generator during the billing period, the 
customer-generator shall be billed for the net elec-
tricity supplied by the retail electric supplier in ac-
cordance with normal metering practices.
‘‘(3) If electricity generated by the customer-
generator exceeds the electricity supplied by the re-
tail electric supplier, the customer-generator—
‘‘(A) shall be billed for the appropriate 
customer charges for that billing period; 
‘‘(B) shall be credited for the excess elec-
tric energy generated during the billing period, 
with this credit appearing on the bill for the fol-
lowing billing period (except for a billing period 
that ends in the next calendar year); and 
‘‘(C) shall not be charged for transmission 
losses. 
If the customer-generator is using a meter that re-
flects the time of generation (a ‘real time meter’), 
the credit shall be based on the retail rates for sale
by the retail electric supplier at the time of such 
generation. At the beginning of each calendar year, 
any remaining unused kilowatt-hour credit accumu-
lated by a customer-generator during the previous 
year may be sold by the customer-generator to any 
electric supplier that agrees to purchase such credit. 
In the absence of any such purchase, the credit shall 
be assigned (at no cost) to the retail electric supplier 
that supplied electric energy to such customer-gener-
ator at the end of the previous year. 
‘‘(d) PERCENT LIMITATIONS.—
‘‘(1) TWO PERCENT LIMITATION.—A local dis-
tribution company retail electric supplier shall not be 
required to provide local distribution service with re-
spect to additional customer-generators after the 
date during any calendar year on which the total 
generating capacity of all customer-generators with 
qualified generation facilities and net metering sys-
tems served by that local distribution company is 
equal to or in excess of 2 percent of the capacity 
necessary to meet the company’s average forecasted 
aggregate customer peak demand for that calendar 
year. 
‘‘(2) ONE PERCENT LIMITATION.—A local dis-
tribution company retail electric supplier shall not be
required to provide local distribution service with re-
spect to additional customer-generators using a sin-
gle type of qualified energy generation system after 
the date during any calendar year on which the total 
generating capacity of all customer-generators with 
qualified generation facilities of that type and net 
metering systems served by that local distribution 
company is equal to or in excess of 1 percent of the 
capacity necessary to meet the company’s average 
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 system 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 retail electric supplier shall notify the Commis-
sion when the total generating capacity of such cus-
tomer-generators is equal to or in excess of 2 per-
cent of the capacity necessary to meet the supplier’s 
aggregate customer peak demand during the pre-
vious 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-
ance that are additional to those necessary to meet the 
standards referred to in subparagraphs (A) and (B).
‘‘(f) 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.’’. 
‘‘(g) 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-
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 
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. 
‘‘(h) 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—
‘‘(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. 
‘‘(i) 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.’’
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