aries of such political subdivision are offered the op-
portunity to participate in the aggregation of pur-
chases and any such consumer choosing not to par-
ticipate is permitted to opt out and purchase electric
energy from another agent acting as an aggregator
or directly from any supplier or other person.
‘‘(3) STATE REGULATORY AUTHORITIES.—Each
State regulatory authority for a State that permits
any group of retail electric consumers to choose
among competing suppliers of electric energy shall
cooperate with local governments for the purpose of
compliance with this subsection. Each such State
regulatory authority shall establish guidelines for
local governments acting as community choice elec-
tricity aggregators. No State regulatory authority
may interfere with a local government’s existing
powers to procure competitive energy services under
existing Federal and State law, city charter provi-
sions, or local procurement practices.
‘‘(4) FUNDS FOR RENEWABLE ENERGY OR EN-
ERGY
EFFICIENCY.—Each State that permits any
group of retail electric consumers to choose among
competing suppliers and that also authorizes or
mandates the collection of funds for renewable en-
ergy or energy efficiency programs shall permit local
governments that serve as community choice
aggregators of electric energy purchases to collect
and expend such funds in the case of consumers
within the aggregated jurisdiction if the local gov-
ernment has prepared and approved a plan for such
collection and expenditure at the local level and
State regulators have reviewed and approved said
plan as consistent with State energy goals and as
providing an appropriate contribution to any state-
wide or regional renewable energy or energy effi-
ciency fund that benefits the aggregated jurisdiction.
‘‘(c) FEDERAL POWER ACT JURISDICTION.—No local
government that aggregates electric load as described in
subsection (a) shall be considered a utility engaging in the
wholesale purchase and resale of electricity for purposes
of the Federal Power Act. Providing electricity to aggre-
gated customers within the boundaries of a local govern-
ment as described in subsection (a) shall not be considered
a wholesale transaction subject to the jurisdiction of the
Federal Energy Regulatory Commission under the Fed-
eral Power Act.
‘‘(d) ENFORCEMENT.—The Federal Energy Regu-
latory Commission may bring an action in the appropriate
United States District Court against any State to require
compliance with the provisions of subsection (a).
‘‘(e) SAVINGS PROVISION.—Nothing in this section
shall be construed to prohibit the aggregation of electric
load by local government units in a different manner
under other authority of law.’’.
SEC. 6. FRANCHISES.
Any State that has deregulated retail sales of elec-
tricity shall permit local governments to exercise local
franchise powers. A local government that has granted a
franchise to a utility at a prior time may offer such fran-
chise for competitive bidding and contract award, provided
such measures are authorized by consumers in a public
process.
SEC. 7. EXCLUSIONS.
(a) UTILITIES NOT PARTICIPATING.—For municipal
electric utilities and rural electric cooperatives that are not
participating in retail electric competition, sections 4, 5,
and 6 of this Act shall not apply.
(b) AGGREGATION.—For States that have adopted
retail competition by law or regulation prior to the date
of enactment of this Act, sections 4, 5, and 6 of this Act
shall not apply to the provisions of a State law or regula-
tion, and any subsequent regulation implementing such
State law or regulation as such law or regulation may per-
tain to an opt-out aggregation plan as it may be under-
taken by any general purpose local government unit for
any political subdivision of the State including a municipal
corporation, county government or township.
SEC. 8. SEPARABILITY.
If any provision of this Act (or the application of that
provision to particular persons or circumstances) is held
invalid, the remainder of this Act (or the application of
that provision to other persons or circumstances) shall not
be affected.
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