SEC. 202. SINGLE SITING AUTHORITY AND INDEPENDENT
SYSTEM OPERATOR SITING AUTHORITY.
(a) DEFINITIONS.—In this section:
(1) The term ‘‘Single Siting Authority’’ means
a State governmental agency that has the authority,
staffing and funding to issue, on a timely basis, all
permits, licenses, and authorizations required under
any State, county, municipal, or local law or regula-
tion or pursuant to any federally delegated or ap-
proved permit program for the construction and op-
eration of facilities used for the generation of elec-
tric energy (other than hydroelectric projects and
nuclear generating facilities) or transmission of elec-
tric energy (including facilities used to increase or
reduce voltage between the local distribution level
and the transmission level).
(2) The term ‘‘Independent System Operators’’
means an entity established for the purpose of inde-
pendent operation and control of interconnected
transmission facilities pursuant to section 202(h) of
the Federal Power Act, as added by section 201(a)
of this Act.
(3) The term ‘‘State’’ means each of the several
States and the District of Columbia.
(b) AUTHORITY TO ESTABLISH SINGLE SITING AU-
THORITY.—Each State may elect to establish a Single
Siting Authority. The Governor of any State that elects
to establish a Single Siting Authority or that has already
created a Single Siting Authority shall notify each Inde-
pendent System Operator that has been established to op-
erate the transmission facilities of any transmitting utility
the transmission facilities of which are located in such
State.
(c) AUTHORITY OF INDEPENDENT SYSTEM OPERA-
TORS.—An Independent System Operator shall have the
authority, with respect to any State in which transmission
facilities that it has designated to operate are located, to
issue certificates of public convenience and necessity for
the construction and operation of facilities used for the
generation or transmission of electric energy in such State
until such time the Governor of such State submits the
notification under subsection (b). A certificate shall be
issued to any qualified applicant therefor, authorizing the
whole or any part of the construction or operation covered
by the application, if it is found that the applicant is able
and willing properly to do the acts and to perform the
activities proposed, and that the proposed construction or
operation, to the extent authorized by the certificate, is
or will be required by the present or future public conven-
ience and necessity; otherwise such application shall be de-
nied. The Independent System Operator shall have the
power to attach to the issuance of the certificate and to
the exercise rights granted thereunder such reasonable
terms and conditions as the public convenience and neces-
sity may require. Within 60 days of the issuance of a cer-
tificate, the Governor of the affected State may submit
to the Independent System Operator a written statement
expressing concurrence, rejection, or concurrence with
conditions regarding the certificate. If such a written
statement is submitted to the Independent System Opera-
tor within this time period, the Independent System Oper-
ator shall issue an order within 60 days of the submission
of such statement, which order shall conform with the con-
currence, rejection, or concurrence with conditions ex-
pressed in the written statement of such Governor.
SEC. 203. EMINENT DOMAIN.
(a) AUTHORITY TO EXERCISE.—When any holder of
a certificate of public convenience and necessity cannot ac-
quire by contract, or is unable to agree with the owner
of property to the compensation to be paid for, the nec-
essary site or right-of-way for the construction of genera-
tion, transmission, or associated equipment necessary to
the proper operation of such generation or transmission
facilities, it may acquire the same by the exercise of the
right of eminent domain in the district court of the United
States for the district in which such property may be lo-
cated, or in the State courts. The practice and procedure
in any action or proceeding for that purpose in the district
court of the United States shall conform as nearly as may
be with the practice and procedure in similar action or
proceeding in the courts of the State where the property
is situated.
(b) LIMITATION
ON JURISDICTION.—The United
States district courts shall only have jurisdiction of cases
arising under subsection (a) when the amount claimed by
the owner of the property to be condemned exceeds
$3,000.
TITLE III—INTERCONNECTION
SEC. 301. INTERCONNECTION.
The Federal Power Act is amended as follows:
(1) By striking section 3(23) (16 U.S.C.
796(23)) and inserting the following:
‘‘(23) 
TRANSMITTING
UTILITY.—The 
term
‘transmitting utility’ means any electric utility,
qualifying cogeneration facility, qualifying small
power production facility, or Federal power market-
ing agency which owns or operates, or proposes to
own or operate, electric power transmission or dis-
tribution facilities, including facilities used for the
transformation of electric energy between the trans-
mission and distribution level or to enhance the ca-
pability of transmission or distribution facilities to
operate efficiently.
(2) 
In 
section 
210(a)(1) 
(16 
U.S.C.
824i(a)(1))—
(A) by inserting ‘‘transmitting utility,’’
after ‘‘electric utility,’’ ;
(B) by inserting ‘‘any transmitting utility,’’
after ‘‘small power production facility,’’ in sub-
paragraph (A); and
(C) by inserting ‘‘or distribution’’ after
‘‘transmission’’ in subparagraph (D).
(3) In section 210(b)(2) (16 U.S.C. 824i(b)(2))
by striking ‘‘an evidentiary hearing’’ and inserting
‘‘a hearing’’.
TITLE IV—EXEMPT
TRANSMITTING UTILITIES
SEC. 401. EXEMPT TRANSMITTING UTILITIES.
(a) DEFINITIONS.—Subsection (a) of section 32 of
the Public Utility Holding Company Act of 1935 (15
U.S.C. 79z–5a) is amended by adding at the end the fol-
lowing new paragraphs:
‘‘(5) EXEMPT
TRANSMITTING
UTILITY.—The
term ‘exempt transmitting utility’ means any person
determined by the Federal Energy Regulatory Com-
mission to be engaged directly, or indirectly through
one or more affiliates as defined in section
2(a)(11)(B), and exclusively in the business of own-
ing or operating, or both owning and operating, all
or part of one or more eligible transmission facili-
ties. No person shall be deemed to be an exempt
transmitting utility unless such person has applied
to the Federal Energy Regulatory Commission for a
determination under this paragraph. A person apply-
ing in good faith for such a determination shall be
deemed an exempt transmitting utility under this
section, until the Federal Energy Regulatory Com-
mission makes such determination. The Federal En-
ergy Regulatory Commission shall make such deter-
mination within 60 days of its receipt of such appli-
cation and shall notify the Securities and Exchange
Commission whenever a determination is made
under this paragraph that any person is an exempt
transmitting utility. Not later than 12 months after
the date of enactment of this section, the Federal
Energy Regulatory Commission shall promulgate
rules implementing the provisions of this paragraph.
Applications for determination filed after the effec-
tive date of such rules shall be subject thereto.
‘‘(6) ELIGIBLE TRANSMISSION FACILITY.—The
term ‘eligible transmission facility’ means a facility,
wherever located—
‘‘(A) which is used for the transmission or
distribution of electric energy, and
‘‘(B) construction of which commenced on
or after the date of enactment of this para-
graph.’’.
(b) USE
OF
DEFINED
TERM.—Subsections (d)
through (l) of such section are amended—
(1) by striking ‘‘exempt wholesale generator’’
each place it appears and inserting ‘‘exempt whole-
sale generator or exempt transmitting utility’’; and
(2) by striking ‘‘exempt wholesale generators’’
each place it appears and inserting ‘‘exempt whole-
sale generators or exempt transmitting utilities’’.
Æ