TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. CAREERS TO CLASSROOMS.

    Title II of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6601 et seq.) is amended--
            (1) by redesignating part E as part F;
            (2) by redesignating sections 2401 and 2402 as sections 
        2601 and 2602, respectively; and
            (3) by adding at the end the following:

                    ``PART G--CAREERS TO CLASSROOMS

``SEC. 2401. CAREERS TO CLASSROOMS.

    ``(a) Definitions.--In this section:
            ``(1) Alternative certification program.--The term 
        `alternative certification program' means a State-approved 
        program that--
                    ``(A) provides the education and training necessary 
                to enable an individual to be eligible for teacher 
                certification in the State within a reduced period of 
                time, compared to the time typically required to 
                receive such certification; and
                    ``(B) relies upon an individual's experience, 
                expertise, academic qualifications, or other factors in 
                lieu of traditional course work for eligibility to 
                receive a degree in the field of education.
            ``(2) Eligible individual.--The term `eligible individual' 
        means an individual--
                    ``(A) who has submitted an application described in 
                subsection (d) to be a certified teacher through a 
                State-approved alternative certification program in an 
                elementary school or secondary school;
                    ``(B) who has an associate, baccalaureate, or 
                advanced degree from an accredited institution of 
                higher education;
                    ``(C) who--
                            ``(i) has substantial, demonstrable career 
                        experience and competence in mathematics, 
                        natural science, computer science, engineering, 
                        foreign language or another field of expertise 
                        determined by the State to be a field for which 
                        there is a significant shortage of qualified 
                        teachers and teacher applicants in that State; 
                        or
                            ``(ii) within 5 years of the date on which 
                        the individual submits an application described 
                        in subparagraph (A)--
                                    ``(I) has received a baccalaureate 
                                or advanced degree from an accredited 
                                institution of higher education in a 
                                field of expertise described in clause 
                                (i); and
                                    ``(II)(aa) has graduated with at 
                                least a 3.0 grade point average (or 
                                equivalent average on a different 
                                scale) in the major or graduate program 
                                for which the individual obtained the 
                                degree;
                                    ``(bb) has graduated at least in 
                                the top 50 percent of the individual's 
                                undergraduate or graduate class;
                                    ``(cc) can demonstrate a high level 
                                of competence through a high level of 
                                academic performance in core academic 
                                coursework and through successful 
                                passage of academic subject tests 
                                required by the State under its 
                                alternative certification program; and
                                    ``(dd) meets any additional 
                                academic or other standards or 
                                qualifications established by the 
                                State;
                    ``(D) in the case of an individual receiving a 
                stipend under this section, who agrees to, in good 
                faith, seek employment and to consider offers of 
                employment in the individual's subject matter of 
                expertise in a high need elementary or secondary school 
                within that State; and
                    ``(E) who meets any additional teacher 
                certification or other requirements that may be 
                established by the State.
            ``(3) High need elementary or secondary school.--The term 
        `high need elementary or secondary school' means a school--
                    ``(A)(i) in which the percentage of students from 
                families below the Federal poverty level (as determined 
                by the Secretary) is 20 percent or more; and
                    ``(ii) that the State determines has experienced a 
                significant period in which teacher vacancies have 
                remained unfilled due to greater than normal difficulty 
                in recruiting or retaining qualified teachers;
                    ``(B) is within the top quartile of schools 
                statewide with regard to the number of unfilled, 
                available teacher positions; or
                    ``(C) is located in an area, other than a 
                metropolitan statistical area, that the State 
                determines has a high percentage of students from low-
                income families or is one that has experienced greater 
                than normal difficulty in recruiting or retaining 
                teachers.
    ``(b) Program Authorized.--The Secretary may award, on a 
competitive basis, grants to States to enable such States to carry out 
the following activities:
            ``(1) Teacher recruitment, education, training, referral, 
        placement, and retention activities to place eligible 
        individuals as certified teachers in public schools through 
        State-approved alternative certification programs.
            ``(2) To award stipends (in an amount not to exceed the 
        lesser of $5,000 per person or an amount equal to the total 
        costs of the types described in paragraphs (1), (2), (3), (8), 
        and (9) of section 472 of the Higher Education Act of 1965 
        incurred by the eligible individual in obtaining alternative 
        certification under this section) to eligible individuals who--
                    ``(A) are enrolled in a State authorized 
                alternative certification program; and
                    ``(B) agree to--
                            ``(i) seek certification through teacher 
                        certification programs in that State; and
                            ``(ii) teach in a high need school in that 
                        State;
        with a preference being given to individuals who are deemed 
        financially in need of such assistance by the State.
            ``(3) To provide grants, in a manner prescribed by the 
        State, in an amount not to exceed $5,000 per eligible 
        individual, per year, to high need elementary or secondary 
        schools to offset the teacher mentoring, alternative 
        certification, and other direct costs associated with accepting 
        eligible individuals under this section.
            ``(4) To develop, or to award grants to accredited 
        institutions of higher education for the development of, 
        alternative certification programs, with preference given to 
        programs tailored to eligible individuals under this section.
            ``(5) Other activities determined by the State to be 
        reasonably necessary to carry-out the purposes of this section.
    ``(c) Criteria for Awarding of Grants.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section a State shall--
                    ``(A) submit to the Secretary an application that 
                contains--
                            ``(i) a description of the manner in which 
                        the State will carry out activities under this 
                        section; and
                            ``(ii) a description of the alternative 
                        certification program of the State or a 
                        description of the manner in which the State is 
                        attempting to implement an alternative 
                        certification program;
                    ``(B) provide assurances to the Secretary that the 
                State will submit to the Secretary, at the end of the 
                grant period, a report on how the activities carried 
                out with funds made available under the grant were 
                utilized, including a description of--
                            ``(i) the manner in which the funds were 
                        used to increase the number of qualified 
                        teachers hired in the State;
                            ``(ii) the manner in which the funds 
                        improved teacher quality;
                            ``(iii) the number of teachers hired under 
                        the grant;
                            ``(iv) the professional experience and 
                        field of expertise of each teacher hired under 
                        the grant; and
                            ``(v) the manner in which the funds were 
                        used to meet other objectives of this section 
                        or other objectives of the State with regard to 
                        teacher hiring, quality, retention, and student 
                        performance;
                    ``(C) provide assurances that amounts received 
                under the grant will be used to supplement and not 
                supplant other Federal, State, and local funds expended 
                to provide services for individuals and entities 
                eligible to receive funds under this section; and
                    ``(D) provide assurances to the Secretary that 
                amounts received under the grants will be expended 
                within 3 years of the receipt of such funds and agree 
                to return unused funds to the Secretary.
            ``(2) Preference.--The Secretary shall give preference in 
        the awarding of grants under this section to States that have 
        developed, or that are developing, alternative certification 
        programs that--
                    ``(A) rapidly place quality certified teachers into 
                the classroom;
                    ``(B) emphasize subject matter content; and
                    ``(C) lead to the certification and placement of a 
                large number of teachers in relation to the number of 
                public elementary school and secondary school teachers 
                in the State.
            ``(3) Limitations.--A grant under this section may be made 
        for a period of up to 3 years, and may not exceed $10,000,000 
        per year.
            ``(4) Geographic diversity.--To the extent practicable, the 
        Secretary shall award grants under this section to support 
        programs in different geographic regions of the United States.
    ``(d) Application by Eligible Individuals.--To be eligible to 
participate as an eligible individual under this section, an individual 
shall submit an application to the State, or to an entity or individual 
designated by the State to receive such applications. Such application 
shall include--
            ``(1) a description of the academic, professional, and 
        other qualifications of the individual, including the academic 
        or professional subject matter expertise of the individual;
            ``(2) a description of the subject matter area, and, if 
        applicable, the grade level, in which the individual desires to 
        teach;
            ``(3)(A) a description of whether the individual is seeking 
        a stipend under this section (if offered by the State); and
            ``(B) if the individual is seeking such a stipend, a 
        description of the willingness of the individual to teach in a 
        high need elementary or secondary school for at least 2 years 
        under this section; and
            ``(4) any other information or documentation that may be 
        required by the State.
    ``(e) Stipends.--
            ``(1) Counted for eligibility purposes.--A stipend received 
        by an eligible individual under this section shall be taken 
        into account in determining the eligibility of the individual 
        for Federal student-based financial assistance.
            ``(2) Repayment.--The recipient of a stipend under this 
        section shall repay amounts received under such stipend to the 
        State from which the stipend was received if--
                    ``(A) the recipient fails to complete the 
                applicable alternative certification program;
                    ``(B) the recipient rejects a bona fide offer of 
                employment during the 1-year period beginning on the 
                date on which the individual completes the applicable 
                alternative certification program; or
                    ``(C) the recipient fails to teach for at least 2 
                years in a public elementary school or secondary school 
                within that State during the 5-year period beginning on 
                the date on which the individual completes the 
                applicable alternative certification program.
            ``(3) Additional procedures.--A State that receives a grant 
        under this section may establish additional procedures and 
        rules with respect to the reimbursement of the State of any 
        stipend funds under paragraph (2), and shall retain such 
        reimbursed funds to carry out activities under this section.
            ``(4) Exceptions.--Paragraphs (2) and (3) shall not apply 
        during the period of time in which an eligible individual is--
                    ``(A) pursuing a full-time course of study;
                    ``(B) serving on active duty as a member of the 
                Armed Forces;
                    ``(C) temporarily totally disabled for a period of 
                time not to exceed 3 years;
                    ``(D) not able to secure employment for a period of 
                not more than 12 months by reason of the care required 
                by a spouse who is disabled; or
                    ``(E) otherwise exempted from the requirements of 
                such paragraphs as may be provided by the Secretary.
    ``(f) Public Awareness.--The Secretary shall disseminate and 
otherwise make available information concerning the program under this 
section, including--
            ``(1) through the posting of a website on the Internet to 
        enable interested persons to easily find information and 
        application material for participation in activities under this 
        section, that contains a nationwide, publicly searchable data 
        bank of all State programs and all available public elementary 
        and secondary teaching positions the Secretary is able to 
        practicably ascertain, and a means by which individuals may 
        apply to, or inquire of, multiple States' alternative 
        certification programs under this section;
            ``(2) providing information to every State about the 
        program under this section, including the criteria for State 
        and individual eligibility; and
            ``(3) conducting other activities, either directly or 
        through contract with other appropriate entities, to broaden 
        awareness and participation in the program under this section.
    ``(g) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $50,000,000 
in fiscal year 2002, and such sums as may be necessary for each of 
fiscal years 2003 through 2007.''.

SOLUTION: Careers to Classrooms Act of 2001 - Amends the Elementary and Secondary Education Act of 1965 to establish a Careers to Classrooms program. Authorizes the Secretary of Education to award competitive grants to States for: (1) teacher recruitment, education, training, referral, placement, and retention activities to place eligible individuals as certified teachers in public schools through State-approved alternative certification programs; (2) stipends for eligible individuals enrolled in programs who agree to seek certification through teacher certification programs in that State and teach in a high-need school in that State, with preference for those individuals needing such assistance; (3) grants to high-need elementary or secondary schools to offset the teacher mentoring, alternative certification, and other direct costs associated with accepting eligible individuals under this Act; (4) grants to accredited institutions of higher education to develop alternative certification programs, with preference given to programs tailored to eligible individuals; and (5) other activities determined by the State to be reasonably necessary to carry out the purposes of this Act. Requires preference for such grants to be given to States that have developed, or are developing, alternative certification programs that: (1) rapidly place quality certified teachers into the classroom; (2) emphasize subject matter content; and (3) lead to the certification and placement of a large number of teachers in relation to the number of public elementary school and secondary school teachers in the State.

PROBLEM: SECTION 1. RENEWABLE PORTFOLIO STANDARD.

    (a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end 
the following:

``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Renewable Energy Requirement.--
            ``(1) In general.--Each electric utility that sells 
        electricity to electric consumers shall obtain a percentage of 
        the base amount of electricity it sells to electric consumers 
        in any calendar year from new renewable energy or existing 
        renewable energy. The percentage obtained in a calendar year 
        shall not be less than the amount specified in the following 
        table:

 
 
 
``Calendar year:                    Minimum annual percentage:
  2010............................  1
  2011............................  2
  2012............................  4
  2013............................  6
  2014............................  8
  2015............................  10
  2016............................  12
  2017............................  14
  2018............................  16
  2019............................  18
  2020............................  20
  2021............................  21
  2022............................  22
  2023............................  23
  2024............................  24
  2025............................  25.

            ``(2) Means of compliance.--An electric utility shall meet 
        the requirements of paragraph (1) by--
                    ``(A) submitting to the Secretary renewable energy 
                credits issued under subsection (b);
                    ``(B) making alternative compliance payments to the 
                Secretary at the rate of 2 cents per kilowatt hour (as 
                adjusted for inflation under subsection (g)); or
                    ``(C) a combination of activities described in 
                subparagraphs (A) and (B).
    ``(b) Renewable Energy Credit Trading Program.--
            ``(1) In general.--Not later than July 1, 2009, the 
        Secretary shall establish a renewable energy credit trading 
        program under which electric utilities shall submit to the 
        Secretary renewable energy credits to certify the compliance of 
        the electric utilities with respect to obligations under 
        subsection (a)(1).
            ``(2) Administration.--As part of the program, the 
        Secretary shall--
                    ``(A) issue tradeable renewable energy credits to 
                generators of electric energy from new renewable 
                energy;
                    ``(B) issue nontradeable renewable energy credits 
                to generators of electric energy from existing 
                renewable energy;
                    ``(C) issue renewable energy credits to electric 
                utilities associated with State renewable portfolio 
                standard compliance mechanisms pursuant to subsection 
                (h);
                    ``(D) ensure that a kilowatt hour, including the 
                associated renewable energy credit, shall be used only 
                once for purposes of compliance with this Act;
                    ``(E) allow double credits for generation from 
                facilities on Indian land, and triple credits for 
                generation from small renewable distributed generators 
                (meaning those no larger than 1 megawatt); and
                    ``(F) ensure that, with respect to a purchaser 
                that, as of the date of enactment of this section, has 
                a purchase agreement from a renewable energy facility 
                placed in service before that date, the credit 
                associated with the generation of renewable energy 
                under the contract is issued to the purchaser of the 
                electric energy.
            ``(3) Duration.--A credit described in subparagraph (A) or 
        (B) of paragraph (2) may only be used for compliance with this 
        section during the 3-year period beginning on the date of 
        issuance of the credit.
            ``(4) Transfers.--An electric utility that holds credits in 
        excess of the quantity of credits needed to comply with 
        subsection (a) may transfer the credits to another electric 
        utility in the same utility holding company system.
            ``(5) Delegation of market function.--The Secretary may 
        delegate to an appropriate market-making entity the 
        administration of a national tradeable renewable energy credit 
        market for purposes of creating a transparent national market 
        for the sale or trade of renewable energy credits.
    ``(c) Enforcement.--
            ``(1) Civil penalties.--Any electric utility that fails to 
        meet the compliance requirements of subsection (a) shall be 
        subject to a civil penalty.
            ``(2) Amount of penalty.--The amount of the civil penalty 
        shall be determined by multiplying the number of kilowatt-hours 
        of electric energy sold to electric consumers in violation of 
        subsection (a) by the greater of 2 cents (adjusted for 
        inflation under subsection (g)) or 200 percent of the average 
        market value of renewable energy credits during the year in 
        which the violation occurred.
            ``(3) Mitigation or waiver.--The Secretary may mitigate or 
        waive a civil penalty under this subsection if the electric 
        utility was unable to comply with subsection (a) for reasons 
        outside of the reasonable control of the utility. The Secretary 
        shall reduce the amount of any penalty determined under 
        paragraph (2) by an amount paid by the electric utility to a 
        State for failure to comply with the requirement of a State 
        renewable energy program if the State requirement is greater 
        than the applicable requirement of subsection (a).
            ``(4) Procedure for assessing penalty.--The Secretary shall 
        assess a civil penalty under this subsection in accordance with 
        the procedures prescribed by section 333(d) of the Energy 
        Policy and Conservation Act of 1954 (42 U.S.C. 6303).
    ``(d) State Renewable Energy Account Program.--
            ``(1) In general.--The Secretary shall establish, not later 
        than December 31, 2008, a State renewable energy account 
        program.
            ``(2) Deposits.--All money collected by the Secretary from 
        alternative compliance payments and the assessment of civil 
        penalties under this section shall be deposited into the 
        renewable energy account established pursuant to this 
        subsection. The State renewable energy account shall be held by 
        the Secretary and shall not be transferred to the Treasury 
        Department.
            ``(3) Use.--Proceeds deposited in the State renewable 
        energy account shall be used by the Secretary, subject to 
        appropriations, for a program to provide grants to the State 
        agency responsible for developing State energy conservation 
        plans under section 362 of the Energy Policy and Conservation 
        Act (42 U.S.C. 6322) for the purposes of promoting renewable 
        energy production, including programs that promote technologies 
        that reduce the use of electricity at customer sites such as 
        solar water heating.
            ``(4) Administration.--The Secretary may issue guidelines 
        and criteria for grants awarded under this subsection. State 
        energy offices receiving grants under this section shall 
        maintain such records and evidence of compliance as the 
        Secretary may require.
            ``(5) Preference.--In allocating funds under this program, 
        the Secretary shall give preference--
                    ``(A) to States in regions which have a 
                disproportionately small share of economically 
                sustainable renewable energy generation capacity; and
                    ``(B) to State programs to stimulate or enhance 
                innovative renewable energy technologies.
    ``(e) Rules.--The Secretary shall issue rules implementing this 
section not later than 1 year after the date of enactment of this 
section.
    ``(f) Exemptions.--This section shall not apply in any calendar 
year to an electric utility--
            ``(1) that sold less than 4,000,000 megawatt-hours of 
        electric energy to electric consumers during the preceding 
        calendar year; or
            ``(2) in Hawaii.
    ``(g) Inflation Adjustment.--Not later than December 31 of each 
year beginning in 2008, the Secretary shall adjust for inflation the 
price of a renewable energy credit under subsection (b)(2) and the 
amount of the civil penalty per kilowatt-hour under subsection (c)(2).
    ``(h) State Programs.--
            ``(1) In general.--Nothing in this section diminishes any 
        authority of a State or political subdivision of a State to 
        adopt or enforce any law or regulation respecting renewable 
        energy, but, except as provided in subsection (c)(3), no such 
        law or regulation shall relieve any person of any requirement 
        otherwise applicable under this section. The Secretary, in 
        consultation with States having such renewable energy programs, 
        shall, to the maximum extent practicable, facilitate 
        coordination between the Federal program and State programs.
            ``(2) Regulations.--
                    ``(A) In general.--The Secretary, in consultation 
                with States, shall promulgate regulations to ensure 
                that an electric utility subject to the requirements of 
                this section that is also subject to a State renewable 
                energy standard receives renewable energy credits in 
                relation to equivalent quantities of renewable energy 
                associated with compliance mechanisms, other than the 
                generation or purchase of renewable energy by the 
                electric utility, including the acquisition of 
                certificates or credits and the payment of taxes, fees, 
                surcharges, or other financial compliance mechanisms by 
                the electric utility or a customer of the electric 
                utility, directly associated with the generation or 
                purchase of renewable energy.
                    ``(B) Prohibition on double counting.--The 
                regulations promulgated under this paragraph shall 
                ensure that a kilowatt hour associated with a renewable 
                energy credit issued pursuant to this subsection shall 
                not be used for compliance with this section more than 
                once.
    ``(i) Recovery of Costs.--
            ``(1) In general.--The Commission shall issue and enforce 
        such regulations as are necessary to ensure that an electric 
        utility recovers all prudently incurred costs associated with 
        compliance with this section.
            ``(2) Applicable law.--A regulation under paragraph (1) 
        shall be enforceable in accordance with the provisions of law 
        applicable to enforcement of regulations under the Federal 
        Power Act (16 U.S.C. 791a et seq.).
    ``(j) Wind Energy Development Study.--The Secretary, in 
consultation with appropriate Federal and State agencies, shall 
conduct, and submit to Congress a report describing the results of, a 
study on methods to increase transmission line capacity for wind energy 
development.
    ``(k) Definitions.--In this section:
            ``(1) Base amount of electricity.--The term `base amount of 
        electricity' means the total amount of electricity sold by an 
        electric utility to electric consumers in a calendar year, 
        excluding municipal waste and electricity generated by a 
        hydroelectric facility (including a pumped storage facility, 
        but excluding incremental hydropower).
            ``(2) Distributed generation facility.--The term 
        `distributed generation facility' means a facility at a 
        customer site.
            ``(3) Existing renewable energy.--The term `existing 
        renewable energy' means, except as provided in paragraph 
        (7)(B), electric energy generated at a facility (including a 
        distributed generation facility) placed in service prior to 
        January 1, 2001, from solar, wind, or geothermal energy, ocean 
        energy, biomass (as defined in section 203(a) of the Energy 
        Policy Act of 2005), or landfill gas.
            ``(4) Geothermal energy.--The term `geothermal energy' 
        means energy derived from a geothermal deposit (within the 
        meaning of section 613(e)(2) of the Internal Revenue Code of 
        1986).
            ``(5) Incremental geothermal production.--
                    ``(A) In general.--The term `incremental geothermal 
                production' means for any year the excess of--
                            ``(i) the total kilowatt hours of 
                        electricity produced from a facility (including 
                        a distributed generation facility) using 
                        geothermal energy; over
                            ``(ii) the average annual kilowatt hours 
                        produced at such facility for 5 of the previous 
                        7 calendar years before the date of enactment 
                        of this section after eliminating the highest 
                        and the lowest kilowatt hour production years 
                        in such 7-year period.
                    ``(B) Special rule.--A facility described in 
                subparagraph (A) that was placed in service at least 7 
                years before the date of enactment of this section 
                shall, commencing with the year in which such date of 
                enactment occurs, reduce the amount calculated under 
                subparagraph (A)(ii) each year, on a cumulative basis, 
                by the average percentage decrease in the annual 
                kilowatt hour production for the 7-year period 
                described in subparagraph (A)(ii) with such cumulative 
                sum not to exceed 30 percent.
            ``(6) Incremental hydropower.--The term `incremental 
        hydropower' means additional energy generated as a result of 
        efficiency improvements or capacity additions made on or after 
        January 1, 2001, or the effective date of an existing 
        applicable State renewable portfolio standard program at a 
        hydroelectric facility that was placed in service before that 
        date. The term does not include additional energy generated as 
        a result of operational changes not directly associated with 
        efficiency improvements or capacity additions. Efficiency 
        improvements and capacity additions shall be measured on the 
        basis of the same water flow information used to determine a 
        historic average annual generation baseline for the 
        hydroelectric facility and certified by the Secretary or the 
        Federal Energy Regulatory Commission.
            ``(7) New renewable energy.--The term `new renewable 
        energy' means--
                    ``(A) electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service on or after January 1, 2001, from--
                            ``(i) solar, wind, or geothermal energy or 
                        ocean energy;
                            ``(ii) biomass (as defined in section 
                        203(b) of the Energy Policy Act of 2005 (42 
                        U.S.C. 15852(b));
                            ``(iii) landfill gas; or
                            ``(iv) incremental hydropower; and
                    ``(B) for electric energy generated at a facility 
                (including a distributed generation facility) placed in 
                service prior to the date of enactment of this 
                section--
                            ``(i) the additional energy above the 
                        average generation in the 3 years preceding the 
                        date of enactment of this section at the 
                        facility from--
                                    ``(I) solar or wind energy or ocean 
                                energy;
                                    ``(II) biomass (as defined in 
                                section 203(b) of the Energy Policy Act 
                                of 2005 (42 U.S.C. 15852(b));
                                    ``(III) landfill gas; or
                                    ``(IV) incremental hydropower.
                            ``(ii) incremental geothermal production.
            ``(8) Ocean energy.--The term `ocean energy' includes 
        current, wave, tidal, and thermal energy.
    ``(l) Sunset.--This section expires on December 31, 2040.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) 
is amended by adding at the end of the items relating to title VI the 
following:

``Sec. 610. Federal renewable portfolio standard.''.

SOLUTION: Amends the Public Utility Regulatory Policies Act of 1978 to set forth a federal renewable energy portfolio standard applicable to calendar years 2010 to 2025.

Instructs the Secretary of Energy to establish: (1) a renewable energy credit trading program under which electric utilities shall submit to the Secretary renewable energy credits to certify their compliance with such standard; and (2) a state renewable energy account program for grants to state agencies to promote renewable energy production (including programs that promote technologies that reduce the use of electricity at customer sites such as solar water heating).



Requires the Federal Energy Regulatory Commission (FERC) to issue and enforce regulations to ensure that an electric utility recovers all prudently incurred costs associated with compliance with this Act.

Instructs the Secretary to study and report to Congress on methods to increase transmission line capacity for wind energy development.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Webcaster Settlement Act of 
2002''.

SEC. 2. FINDINGS.

    Congress finds the following:
        (1) Some small webcasters who did not participate in the 
    copyright arbitration royalty panel proceeding leading to the July 
    8, 2002 order of the Librarian of Congress establishing rates and 
    terms for certain digital performances and ephemeral reproductions 
    of sound recordings, as provided in part 261 of the Code of Federal 
    Regulations (published in the Federal Register on July 8, 2002) 
    (referred to in this section as ``small webcasters''), have 
    expressed reservations about the fee structure set forth in such 
    order, and have expressed their desire for a fee based on a 
    percentage of revenue.
        (2) Congress has strongly encouraged representatives of 
    copyright owners of sound recordings and representatives of the 
    small webcasters to engage in negotiations to arrive at an 
    agreement that would include a fee based on a percentage of 
    revenue.
        (3) The representatives have arrived at an agreement that they 
    can accept in the extraordinary and unique circumstances here 
    presented, specifically as to the small webcasters, their belief in 
    their inability to pay the fees due pursuant to the July 8 order, 
    and as to the copyright owners of sound recordings and performers, 
    the strong encouragement of Congress to reach an accommodation with 
    the small webcasters on an expedited basis.
        (4) The representatives have indicated that they do not believe 
    the agreement provides for or in any way approximates fair or 
    reasonable royalty rates and terms, or rates and terms that would 
    have been negotiated in the marketplace between a willing buyer and 
    a willing seller.
        (5) Congress has made no determination as to whether the 
    agreement provides for or in any way approximates fair or 
    reasonable fees and terms, or rates and terms that would have been 
    negotiated in the marketplace between a willing buyer and a willing 
    seller.
        (6) Congress likewise has made no determination as to whether 
    the July 8 order is reasonable or arbitrary, and nothing in this 
    Act shall be taken into account by the United States Court of 
    Appeals for the District of Columbia Circuit in its review of such 
    order.
        (7) It is, nevertheless, in the public interest for the parties 
    to be able to enter into such an agreement without fear of 
    liability for deviating from the fees and terms of the July 8 
    order, if it is clear that the agreement will not be admissible as 
    evidence or otherwise taken into account in any government 
    proceeding involving the setting or adjustment of the royalties 
    payable to copyright owners of sound recordings for the public 
    performance or reproduction in ephemeral phonorecords or copies of 
    such works, the determination of terms or conditions related 
    thereto, or the establishment of notice or recordkeeping 
    requirements.

SEC. 3. SUSPENSION OF CERTAIN PAYMENTS.

    (a) Noncommercial Webcasters.--
        (1) In general.--The payments to be made by noncommercial 
    webcasters for the digital performance of sound recordings under 
    section 114 of title 17, United States Code, and the making of 
    ephemeral phonorecords under section 112 of title 17, United States 
    Code, during the period beginning on October 28, 1998, and ending 
    on May 31, 2003, which have not already been paid, shall not be due 
    until June 20, 2003.
        (2) Definition.--In this subsection, the term ``noncommercial 
    webcaster'' has the meaning given that term in section 
    114(f)(5)(E)(i) of title 17, United States Code, as added by 
    section 4 of this Act.
    (b) Small Commercial Webcasters.--
        (1) In general.--The receiving agent may, in a writing signed 
    by an authorized representative thereof, delay the obligation of 
    any 1 or more small commercial webcasters to make payments pursuant 
    to sections 112 and 114 of title 17, United States Code, for a 
    period determined by such entity to allow negotiations as permitted 
    in section 4 of this Act, except that any such period shall end no 
    later than December 15, 2002. The duration and terms of any such 
    delay shall be as set forth in such writing.
        (2) Definitions.--In this subsection--
            (A) the term ``webcaster'' has the meaning given that term 
        in section 114(f)(5)(E)(iii) of title 17, United States Code, 
        as added by section 4 of this Act; and
            (B) the term ``receiving agent'' shall have the meaning 
        given that term in section 261.2 of title 37, Code of Federal 
        Regulations, as published in the Federal Register on July 8, 
        2002.

SEC. 4. AUTHORIZATION FOR SETTLEMENTS.

    Section 114(f) of title 17, United States Code, is amended by 
adding after paragraph (4) the following:
        ``(5)(A) Notwithstanding section 112(e) and the other 
    provisions of this subsection, the receiving agent may enter into 
    agreements for the reproduction and performance of sound recordings 
    under section 112(e) and this section by any 1 or more small 
    commercial webcasters or noncommercial webcasters during the period 
    beginning on October 28, 1998, and ending on December 31, 2004, 
    that, once published in the Federal Register pursuant to 
    subparagraph (B), shall be binding on all copyright owners of sound 
    recordings and other persons entitled to payment under this 
    section, in lieu of any determination by a copyright arbitration 
    royalty panel or decision by the Librarian of Congress. Any such 
    agreement for small commercial webcasters shall include provisions 
    for payment of royalties on the basis of a percentage of revenue or 
    expenses, or both, and include a minimum fee. Any such agreement 
    may include other terms and conditions, including requirements by 
    which copyright owners may receive notice of the use of their sound 
    recordings and under which records of such use shall be kept and 
    made available by small commercial webcasters or noncommercial 
    webcasters. The receiving agent shall be under no obligation to 
    negotiate any such agreement. The receiving agent shall have no 
    obligation to any copyright owner of sound recordings or any other 
    person entitled to payment under this section in negotiating any 
    such agreement, and no liability to any copyright owner of sound 
    recordings or any other person entitled to payment under this 
    section for having entered into such agreement.
        ``(B) The Copyright Office shall cause to be published in the 
    Federal Register any agreement entered into pursuant to 
    subparagraph (A). Such publication shall include a statement 
    containing the substance of subparagraph (C). Such agreements shall 
    not be included in the Code of Federal Regulations. Thereafter, the 
    terms of such agreement shall be available, as an option, to any 
    small commercial webcaster or noncommercial webcaster meeting the 
    eligibility conditions of such agreement.
        ``(C) Neither subparagraph (A) nor any provisions of any 
    agreement entered into pursuant to subparagraph (A), including any 
    rate structure, fees, terms, conditions, or notice and 
    recordkeeping requirements set forth therein, shall be admissible 
    as evidence or otherwise taken into account in any administrative, 
    judicial, or other government proceeding involving the setting or 
    adjustment of the royalties payable for the public performance or 
    reproduction in ephemeral phonorecords or copies of sound 
    recordings, the determination of terms or conditions related 
    thereto, or the establishment of notice or recordkeeping 
    requirements by the Librarian of Congress under paragraph (4) or 
    section 112(e)(4). It is the intent of Congress that any royalty 
    rates, rate structure, definitions, terms, conditions, or notice 
    and recordkeeping requirements, included in such agreements shall 
    be considered as a compromise motivated by the unique business, 
    economic and political circumstances of small webcasters, copyright 
    owners, and performers rather than as matters that would have been 
    negotiated in the marketplace between a willing buyer and a willing 
    seller, or otherwise meet the objectives set forth in section 
    801(b).
        ``(D) Nothing in the Small Webcaster Settlement Act of 2002 or 
    any agreement entered into pursuant to subparagraph (A) shall be 
    taken into account by the United States Court of Appeals for the 
    District of Columbia Circuit in its review of the determination by 
    the Librarian of Congress of July 8, 2002, of rates and terms for 
    the digital performance of sound recordings and ephemeral 
    recordings, pursuant to sections 112 and 114.
        ``(E) As used in this paragraph--
            ``(i) the term `noncommercial webcaster' means a webcaster 
        that--
                ``(I) is exempt from taxation under section 501 of the 
            Internal Revenue Code of 1986 (26 U.S.C. 501);
                ``(II) has applied in good faith to the Internal 
            Revenue Service for exemption from taxation under section 
            501 of the Internal Revenue Code and has a commercially 
            reasonable expectation that such exemption shall be 
            granted; or
                ``(III) is operated by a State or possession or any 
            governmental entity or subordinate thereof, or by the 
            United States or District of Columbia, for exclusively 
            public purposes;
            ``(ii) the term `receiving agent' shall have the meaning 
        given that term in section 261.2 of title 37, Code of Federal 
        Regulations, as published in the Federal Register on July 8, 
        2002; and
            ``(iii) the term `webcaster' means a person or entity that 
        has obtained a compulsory license under section 112 or 114 and 
        the implementing regulations therefor to make eligible 
        nonsubscription transmissions and ephemeral recordings.
        ``(F) The authority to make settlements pursuant to 
    subparagraph (A) shall expire December 15, 2002, except with 
    respect to noncommercial webcasters for whom the authority shall 
    expire May 31, 2003.''.

SEC. 5. DEDUCTIBILITY OF COSTS AND EXPENSES OF AGENTS AND DIRECT 
              PAYMENT TO ARTISTS OF ROYALTIES FOR DIGITAL PERFORMANCES 
              OF SOUND RECORDINGS.

    (a) Findings.--Congress finds that--
        (1) in the case of royalty payments from the licensing of 
    digital transmissions of sound recordings under subsection (f) of 
    section 114 of title 17, United States Code, the parties have 
    voluntarily negotiated arrangements under which payments shall be 
    made directly to featured recording artists and the administrators 
    of the accounts provided in subsection (g)(2) of that section;
        (2) such voluntarily negotiated payment arrangements have been 
    codified in regulations issued by the Librarian of Congress, 
    currently found in section 261.4 of title 37, Code of Federal 
    Regulations, as published in the Federal Register on July 8, 2002;
        (3) other regulations issued by the Librarian of Congress were 
    inconsistent with the voluntarily negotiated arrangements by such 
    parties concerning the deductibility of certain costs incurred for 
    licensing and arbitration, and Congress is therefore restoring 
    those terms as originally negotiated among the parties; and
        (4) in light of the special circumstances described in this 
    subsection, the uncertainty created by the regulations issued by 
    the Librarian of Congress, and the fact that all of the interested 
    parties have reached agreement, the voluntarily negotiated 
    arrangements agreed to among the parties are being codified.
    (b) Deductibility.--Section 114(g) of title 17, United States Code, 
is amended by adding after paragraph (2) the following:
        ``(3) A nonprofit agent designated to distribute receipts from 
    the licensing of transmissions in accordance with subsection (f) 
    may deduct from any of its receipts, prior to the distribution of 
    such receipts to any person or entity entitled thereto other than 
    copyright owners and performers who have elected to receive 
    royalties from another designated agent and have notified such 
    nonprofit agent in writing of such election, the reasonable costs 
    of such agent incurred after November 1, 1995, in--
            ``(A) the administration of the collection, distribution, 
        and calculation of the royalties;
            ``(B) the settlement of disputes relating to the collection 
        and calculation of the royalties; and
            ``(C) the licensing and enforcement of rights with respect 
        to the making of ephemeral recordings and performances subject 
        to licensing under section 112 and this section, including 
        those incurred in participating in negotiations or arbitration 
        proceedings under section 112 and this section, except that all 
        costs incurred relating to the section 112 ephemeral recordings 
        right may only be deducted from the royalties received pursuant 
        to section 112.
        ``(4) Notwithstanding paragraph (3), any designated agent 
    designated to distribute receipts from the licensing of 
    transmissions in accordance with subsection (f) may deduct from any 
    of its receipts, prior to the distribution of such receipts, the 
    reasonable costs identified in paragraph (3) of such agent incurred 
    after November 1, 1995, with respect to such copyright owners and 
    performers who have entered with such agent a contractual 
    relationship that specifies that such costs may be deducted from 
    such royalty receipts.''.
    (c) Direct Payment to Artists.--Section 114(g)(2) of title 17, 
United States Code, is amended to read as follows:
        ``(2) An agent designated to distribute receipts from the 
    licensing of transmissions in accordance with subsection (f) shall 
    distribute such receipts as follows:
            ``(A) 50 percent of the receipts shall be paid to the 
        copyright owner of the exclusive right under section 106(6) of 
        this title to publicly perform a sound recording by means of a 
        digital audio transmission.
            ``(B) 2\1/2\ percent of the receipts shall be deposited in 
        an escrow account managed by an independent administrator 
        jointly appointed by copyright owners of sound recordings and 
        the American Federation of Musicians (or any successor entity) 
        to be distributed to nonfeatured musicians (whether or not 
        members of the American Federation of Musicians) who have 
        performed on sound recordings.
            ``(C) 2\1/2\ percent of the receipts shall be deposited in 
        an escrow account managed by an independent administrator 
        jointly appointed by copyright owners of sound recordings and 
        the American Federation of Television and Radio Artists (or any 
        successor entity) to be distributed to nonfeatured vocalists 
        (whether or not members of the American Federation of 
        Television and Radio Artists) who have performed on sound 
        recordings.
            ``(D) 45 percent of the receipts shall be paid, on a per 
        sound recording basis, to the recording artist or artists 
        featured on such sound recording (or the persons conveying 
        rights in the artists' performance in the sound recordings).''.

SEC. 6. REPORT TO CONGRESS.

    By not later than June 1, 2004, the Comptroller General of the 
United States, in consultation with the Register of Copyrights, shall 
conduct and submit to the Committee on the Judiciary of the House of 
Representatives and the Committee on the Judiciary of the Senate a 
study concerning the economic arrangements among small commercial 
webcasters covered by agreements entered into pursuant to section 
114(f)(5)(A) of title 17, United States Code, as added by section 4 of 
this Act, and third parties, and the effect of those arrangements on 
royalty fees payable on a percentage of revenue or expense basis.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

SOLUTION:
Small Webcaster Settlement Act of 2002 - (Sec. 3) Permits the suspension of certain payments by noncommercial webcasters. Defines webcasters as persons or entities with compulsory licenses under Federal copyright law to make eligible nonsubscription transmissions and ephemeral recordings. Defines noncommercial webcasters as webcasters who: (1) are exempt from taxation; (2) have applied for tax exemption and have a reasonable chance of obtaining it; or (3) are operated by a public body. Declares that all payments to be made by noncommercial webcasters under Federal copyright law for the digital performance of sound recordings and the making of ephemeral phonorecords during the period from October 28, 1998, to May 31, 2003, which have not already been paid, shall not be due until June 20, 2003.Allows a receiving agent (an agent designated by the Librarian of Congress to collect certain royalty payments that ultimately are given to copyright owners and performers) to delay the obligation of any one or more small commercial webcasters to make certain payments relating to sound recordings or ephemeral recordings for a period of time to allow negotiations to occur under this Act, except that any such period shall end no later than December 15, 2002.(Sec. 4) Authorizes a receiving agent to enter into agreements for the reproduction and performance of sound recordings by one or more small commercial webcasters or noncommercial webcasters during the period from October 28, 1998, to December 31, 2004. Declares that, once published in the Federal Register, such an agreement shall be binding on all copyright owners of sound recordings and other persons entitled to payment, in lieu of any determination by a copyright arbitration royalty panel or decision by the Librarian of Congress. Declares that any such agreement shall include provisions for payment of royalties on the basis of a percentage of revenue or expenses, or both, and a minimum fee. Permits other terms and conditions also to be included in such an agreement.Prohibits any such agreement or any of its provisions from being admissible as evidence or otherwise taken into account in any administrative, judicial, or government proceedings involving the setting or adjustment of royalties and related matters, including establishment of notice or recordkeeping requirements.Expresses the intent of Congress that any royalty rates, rate structure, definitions, terms, conditions, or notice and recordkeeping requirements included in such agreements shall be viewed as a unique compromise rather than as matters that would have been negotiated in the marketplace between a willing buyer and a willing seller.States that nothing in this Act or any agreement made under it shall be taken into account by the United States Court of Appeals for the District of Columbia Circuit in its review of the determination by the Librarian of Congress of July 8, 2002, of rates and terms for the digital performance of sound recordings and ephemeral recordings. Declares that the authority to make settlements under this Act shall expire on December 15, 2002, except that such authority for noncommercial webcasters shall expire on May 31, 2003.(Sec. 5) Authorizes a nonprofit agent designated to distribute receipts from the licensing of certain transmissions to deduct from any of its receipts, prior to their distribution to an entitled person, the reasonable costs of such agent incurred after November 1, 1995, for certain duties. Includes among such duties: (1) the administration of the collection, distribution, and calculation of the royalties, as well as settlement of related disputes; and (2) the licensing and enforcement of rights with respect to the making of ephemeral recordings and performances subject to licensing under this Act and other specified Federal law.Allows any agent designated to distribute receipts from the licensing of certain transmissions to deduct the reasonable costs with respect to copyright owners and performers who have entered with such agent a contractual relationship that specifies that such costs may be deducted from such royalty receipts.Modifies requirements for payments to artists. Shifts responsibility for distributing licensing receipts from the copyright owner to the designated agent. Adds the requirement that 50 percent of the licensing receipts be paid to the copyright owner of the exclusive right under Federal law to publicly perform a sound recording by means of a digital audio transmission.(Sec. 6) Directs the Comptroller General to study and report to specified congressional committees on the economic arrangements among small commercial webcasters covered by agreements entered into under this Act, and third parties, and the effect of those arrangements on royalty fees payable on a percentage of revenue or expense basis.