109th CONGRESS
1st Session
H. R. 4384
To improve the energy efficiency of the United States.
IN THE HOUSE OF REPRESENTATIVES
November 17, 2005
Mr. SHAYS (for himself and Mr. HINCHEY) introduced the following bill;
which was referred to the Committee on Energy and Commerce, and in addition
to the Committees on Ways and Means, Resources, and Transportation and Infrastructure,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
A BILL
To improve the energy efficiency of the United States.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Energy For Our Future Act'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--SAVE OIL
Sec. 101. Help consumers buy more fuel efficient cars.
Sec. 102. Energy efficient motor vehicles manufacturing credit.
Sec. 103. Transit-oriented development corridors.
Sec. 104. Automobile Fuel Economy Standards.
Sec. 105. Inclusion of sports utility vehicles in limitation on depreciation
of certain luxury automobiles.
Sec. 106. Fuel efficiency standards for replacement tires.
TITLE II--REDUCE HEAT AND ELECTRIC BILLS
Sec. 201. Weatherization assistance.
Sec. 202. Energy Star programs.
Sec. 203. Renewable electricity production credit.
Sec. 204. Efficiency resource standard.
Sec. 205. Federal renewable portfolio standard.
TITLE III--SAVE TAX PAYERS MONEY
Sec. 301. Repeal of certain provisions of the Energy Policy Act of 2005.
Sec. 302. Repeal of certain tax provisions of the Energy Policy Act of
2005.
TITLE IV--STATE AND LOCAL AUTHORITY
Sec. 401. State consumer product energy efficiency standards.
Sec. 402. Appeals from consistency determinations under Coastal Zone Management
Act of 1972.
Sec. 403. Siting of interstate electric transmission facilities.
Sec. 404. New natural gas storage facilities.
Sec. 405. Process coordination; hearings; rules of procedure.
Sec. 406. Repeal of preemption of State law relating to automobile fuel
economy standards.
TITLE I--SAVE OIL
SEC. 101. HELP CONSUMERS BUY MORE FUEL EFFICIENT CARS.
(a) Repeal of Limit on Number of Cars Eligible for Credit- Section 30B of
the Internal Revenue Code of 1986 (relating to alternative motor vehicle
credit) is amended by striking subsection (f).
(b) Emissions Standards- Clause (iv) of section 30B(c)(3)(A) of such Code
is amended to read as follows:
`(iv) for 2004 and later model vehicles, has received a certificate
that such vehicle meets or exceeds the Bin 5 Tier II emission standard
established in regulations prescribed by the Administrator of the
Environmental Protection Agency under section 202(i) of the Clean
Air Act for that make and model year vehicle,'.
(c) Effective Date- The amendments made by this section shall take effect
as if included in the amendments made by section 1341(a) of the Energy Tax
Incentives Act of 2005.
SEC. 102. ENERGY EFFICIENT MOTOR VEHICLES MANUFACTURING CREDIT.
(a) In General- Subpart B of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to foreign tax credit, etc.) is
amended by adding at the end the following new section:
`SEC. 30D. ENERGY EFFICIENT MOTOR VEHICLES MANUFACTURING CREDIT.
`(a) Credit Allowed- In the case of an eligible taxpayer, subject to a credit
allocation under subsection (e) to such eligible taxpayer, there shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year to an amount equal to the sum of--
`(1) the initial investment credit determined under subsection (b) for
the taxable year,
`(2) the fuel economy achievement credit determined under subsection (c)
for such taxable year, and
`(3) the eligible components R&D credit determined under subsection
(d) for such taxable year.
`(b) Initial Investment Credit- For purposes of this section, the initial
investment credit is equal to 20 percent of the qualified investment of
an eligible taxpayer with respect to energy efficient motor vehicles during
the taxable year beginning in 2006.
`(c) Fuel Economy Achievement Credit- For purposes of this section--
`(1) IN GENERAL- In the case of an eligible taxpayer who meets the requirements
of paragraph (2) for a model year ending in a taxable year specified in
the table contained in paragraph (3), the fuel economy achievement credit
for such taxable year is equal to 30 percent of the sum of--
`(A) at the election of the eligible taxpayer, such qualified investment
for any preceding taxable year beginning after 2005 if such taxable
year has not previously been taken into account under this subsection
by such taxpayer, plus
`(B) at the election of the eligible taxpayer, the qualified investment
with respect to energy efficient motor vehicles of the eligible taxpayer
for the taxable year beginning in 2015.
`(2) DEMONSTRATED COMBINED FLEET ECONOMY IMPROVEMENTS- The requirements
of this paragraph are met for any model year ending in a taxable year
if the eligible taxpayer can demonstrate to the satisfaction of the Secretary
that the percentage by which the taxpayer's overall combined fuel economy
standard for the taxpayer's vehicle fleet for such model year exceeds
such standard for such taxpayer's 2005 model year as reported to the National
Highway Traffic Safety Administration under section 32907 of title 49,
United States Code, is not less than the percentage determined for such
model year under paragraph (3).
`(3) PERCENTAGE INCREASE- The percentage determined under this paragraph
for any taxable year is equal to--
131`
131`Model year ending in
Percentage
taxable year
increase
2008
--5
2009
--10
2010
--15
2011
--20
2012
--27.5
2013
--35
2014
--42.5
2015
--50.
`(d) Eligible Components R&D Credit- For purposes of this section, the
eligible R&D credit for any taxable year is equal to 30 percent of the
research and development costs paid or incurred by an eligible taxpayer
for such taxable year with respect to eligible components used or to be
used in the manufacture of energy efficient motor vehicles.
`(1) INITIAL INVESTMENT CREDIT AND FUEL ECONOMY ACHIEVEMENT CREDIT- Subject
to paragraph (2), the aggregate amount of initial investment credits and
fuel economy achievement credits allowed under subsection (a) for any
taxable year beginning in a calendar year after 2005 shall be allocated
by the Secretary among all eligible taxpayers--
`(A) based on each eligible taxpayer's percentage of the total qualified
investment of all such taxpayers, and
`(B) such that such aggregate amount does not exceed--
`(i) $1,000,000,000, plus
`(ii) any amount of credit unallocated during any preceding calendar
year.
`(2) ELIGIBLE COMPONENTS R&D CREDIT- Of the dollar amount available
for allocation under paragraph (1) for any taxable year, 10 percent of
such amount shall be allocated in the same manner by the Secretary among
all eligible taxpayers with respect to the eligible components R&D
credit.
`(f) Qualified Investment- For purposes of this section--
`(1) IN GENERAL- The qualified investment for any taxable year is equal
to the incremental costs incurred during such taxable year--
`(A) to re-equip or expand any manufacturing facility of the eligible
taxpayer to produce energy efficient motor vehicles or to produce eligible
components, and
`(B) for engineering integration of such vehicles and components as
described in subsection (h).
`(2) ATTRIBUTION RULES- In the event a facility of the eligible taxpayer
produces both energy efficient motor vehicles and conventional motor vehicles,
or eligible and non-eligible components, only the qualified investment
attributable to production of energy efficient motor vehicles and the
research and development costs attributable to eligible components shall
be taken into account.
`(g) Energy Efficient Motor Vehicles and Eligible Components- For purposes
of this section--
`(1) ENERGY EFFICIENT MOTOR VEHICLE- The term `energy efficient motor
vehicle' means--
`(A) any new advanced lean burn technology motor vehicle (as defined
in section 30B(c)(3) determined without regard to subparagraph (A)(iv)(II)
thereof or the weight limitation under subparagraph (A)(iv)(I) thereof),
`(B) any new qualified hybrid motor vehicle (as defined in section 30B(d)(3)(A)
determined without regard to subparagraph (A)(ii)(II) thereof, the weight
limitation under subparagraph (A)(ii)(I) thereof, and subparagraph (A)(iv)
thereof), or
`(C) any other new technology motor vehicle identified by the Secretary
as offering a substantial increase in fuel economy.
`(2) ELIGIBLE COMPONENTS- The term `eligible component' means any component
inherent to any energy efficient motor vehicle, including--
`(A) with respect to any gasoline-electric new qualified hybrid motor
vehicle--
`(i) electric motor or generator,
`(ii) power split device,
`(iii) power control unit,
`(v) integrated starter generator, or
`(B) with respect to any new advanced lean burn technology motor vehicle--
`(iii) fuel injection system, or
`(iv) after-treatment system, such as a particle filter or NOx absorber,
and
`(C) with respect to any energy efficient motor vehicle, any other component
approved by the Secretary.
`(h) Engineering Integration Costs- For purposes of subsection (f)(1)(B),
costs for engineering integration are costs incurred prior to the market
introduction of energy efficient vehicles for engineering tasks related
to--
`(1) incorporating eligible components into the design of energy efficient
motor vehicles, and
`(2) designing new tooling and equipment for production facilities which
produce eligible components or energy efficient motor vehicles.
`(i) Eligible Taxpayer- For purposes of this section, the term `eligible
taxpayer' means, with respect to any taxable year, any taxpayer if more
than 25 percent of the taxpayer's gross receipts for the taxable year is
derived from the manufacture of motor vehicles or any component parts of
such vehicles.
`(j) Limitation Based on Amount of Tax- The credit allowed under subsection
(a) for the taxable year shall not exceed the excess of--
`(A) the regular tax liability (as defined in section 26(b)) for such
taxable year, plus
`(B) the tax imposed by section 55 for such taxable year, over
`(2) the sum of the credits allowable under subpart A and sections 27,
30, 30B, and 30C for the taxable year.
`(k) Reduction in Basis- For purposes of this subtitle, if a credit is allowed
under this section for any expenditure with respect to any property, the
increase in the basis of such property which would (but for this paragraph)
result from such expenditure shall be reduced by the amount of the credit
so allowed.
`(1) COORDINATION WITH OTHER DEDUCTIONS AND CREDITS- The amount of any
deduction or other credit allowable under this chapter for any cost taken
into account in determining the amount of the credit under subsection
(a) shall be reduced by the amount of such credit attributable to such
cost.
`(2) RESEARCH AND DEVELOPMENT COSTS-
`(A) IN GENERAL- Except as provided in subparagraph (B), any amount
described in subsection (d) taken into account in determining the amount
of the credit under subsection (a) for any taxable year shall not be
taken into account for purposes of determining the credit under section
41 for such taxable year.
`(B) COSTS TAKEN INTO ACCOUNT IN DETERMINING BASE PERIOD RESEARCH EXPENSES-
Any amounts described in subsection (d) taken into account in determining
the amount of the credit under subsection (a) for any taxable year which
are qualified research expenses (within the meaning of section 41(b))
shall be taken into account in determining base period research expenses
for purposes of applying section 41 to subsequent taxable years.
`(m) Business Carryovers Allowed- If the credit allowable under subsection
(a) for a taxable year exceeds the limitation under subsection (j) for such
taxable year, such excess (to the extent of the credit allowable with respect
to property subject to the allowance for depreciation) shall be allowed
as a credit carryback and carryforward under rules similar to the rules
of section 39.
`(n) Definitions and Special Rules- For purposes of this section--
`(1) DEFINITIONS- Any term which is used in this section and in chapter
329 of title 49, United States Code, shall have the meaning given such
term by such chapter.
`(2) SPECIAL RULES- Rules similar to the rules of paragraphs (4) and (5)
of section 179A(e) and paragraphs (1) and (2) of section 41(f) shall apply.
`(o) Election not to Take Credit- No credit shall be allowed under subsection
(a) for any property if the taxpayer elects not to have this section apply
to such property.
`(p) Regulations- The Secretary shall prescribe such regulations as necessary
to carry out the provisions of this section.
`(q) Termination- This section shall not apply to any qualified investment
made after December 31, 2015.'.
(b) Conforming Amendments-
(1) Section 1016(a) of such Code is amended by striking `and' at the end
of paragraph (36), by striking the period at the end of paragraph (37)
and inserting `, and', and by adding at the end the following new paragraph:
`(38) to the extent provided in section 30D(k).'.
(2) Section 6501(m) of such Code is amended by inserting `30D(o),' after
`30C(e)(5),'.
(3) The table of sections for subpart B of part IV of subchapter A of
chapter 1 of such Code is amended by inserting after the item relating
to section 30C the following new item:
`Sec. 30D. Energy efficient motor vehicles manufacturing credit.'.
(c) Effective Date- The amendments made by this subsection shall apply to
amounts incurred in taxable years beginning after December 31, 2005.
SEC. 103. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.
(a) Definitions- In this section, the following definitions apply:
(1) DEFINITIONS FROM TITLE 49, UNITED STATES CODE- The terms `capital
project', `local governmental authority', `mass transportation', and `urbanized
area' have the meanings such terms have under section 5302 of title 49,
United States Code.
(2) STATE- The term `State' means a State of the United States, the District
of Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American
Samoa, and the United States Virgin Islands.
(3) TRANSIT-ORIENTED DEVELOPMENT CORRIDOR- The term `transit-oriented
development corridor' means rights-of-way for fixed-guideway mass transportation
facilities, including commercial development that is connected with any
such facility physically and functionally.
(b) In General- In consultation with State transportation departments and
metropolitan planning organizations, the Secretary of Transportation shall
designate, in urbanized areas, at least 20 transit-oriented development
corridors by 2015 and 50 transit-oriented development corridors by 2025.
(c) Transit Grants- The Secretary of Transportation shall award grants to
a State or local governmental authority to construct or improve transit
facilities, bicycle transportation facilities, and pedestrian walkways in
a transit-oriented development corridor, including capital projects.
(d) Research and Development- In order to support effective deployment of
grants and incentives under this section, the Secretary of Transportation
shall establish a transit-oriented development corridors research and development
program for the conduct of research on best practices and performance criteria
for transit-oriented development corridors.
(e) Authorization of Appropriations- There are authorized to be appropriated
to carry out this section $500,000,000 for each of fiscal years 2007 through
2016, of which $2,000,000 per fiscal year is authorized for the research
and development program under subsection (d).
(f) Labor Standards- The Secretary of Transportation shall not provide a
grant under this section unless the Secretary receives reasonable assurances
from a State that laborers and mechanics employed by contractors or subcontractors
in the performance of construction or modernization on the a transit project
will be paid wages not less than those prevailing on similar construction
or modernization in the locality as determined by the Secretary of Labor
under the Act of March 3, 1931 (known as the Davis-Bacon Act) (40 U.S.C.
276a et seq.).
SEC. 104. AUTOMOBILE FUEL ECONOMY STANDARDS.
(a) Phased Increases in Fuel Economy Standards-
(1) PASSENGER AUTOMOBILES-
(A) MINIMUM STANDARDS- Section 32902(b) of title 49, United States Code,
is amended to read as follows:
`(b) Passenger Automobiles- Except as otherwise provided under this section,
the average fuel economy standard for passenger automobiles manufactured
by a manufacturer in a model year--
`(1) after model year 1984 and before model year 2008 shall be 25 miles
per gallon;
`(2) after model year 2007 and before model year 2011 shall be 28 miles
per gallon;
`(3) after model year 2010 and before model year 2014 shall be 32 miles
per gallon;
`(4) after model year 2013 and before model year 2017 shall be 36 miles
per gallon; and
`(5) after model year 2016 shall be 40 miles per gallon.'.
(B) HIGHER STANDARDS SET BY REGULATION- Section 32902(c) of title 49,
United States Code, is amended--
(i) by striking paragraph (2); and
(I) by striking `Subject to paragraph (2) of this subsection, the'
and inserting `The';
(II) by striking `amending the standard' and inserting `increasing
the standard otherwise applicable'; and
(III) by striking `Section 553' and inserting the following: `(2)
Section 553'.
(b) Increased Inclusiveness of Definitions of Automobile and Passenger Automobile-
(A) IN GENERAL- Section 32901(a)(3) of title 49, United States Code,
is amended--
(i) by striking `6,000 pounds' each place it appears and inserting
`12,000 pounds'; and
(ii) in subparagraph (B)--
(I) by striking `10,000 pounds' and inserting `14,000 pounds'; and
(II) in clause (ii), by striking `an average fuel economy standard'
and all that follows through `conservation or'.
(B) SPECIAL RULE- Section 32908(a)(1) of such title is amended by striking
`8,500 pounds' and inserting `14,000 pounds'.
(2) PASSENGER AUTOMOBILE- Section 32901(a)(16) of title 49, United States
Code, is amended to read as follows:
`(16) `passenger automobile' means an automobile having a gross vehicle
weight of 10,000 pounds or less that is designed to be used principally
for the transportation of persons;'.
(3) APPLICABILITY- The amendments made by this section shall apply with
respect to automobiles manufactured for model years beginning after the
date of enactment of this Act.
(1) INCREASED PENALTY FOR VIOLATIONS OF FUEL ECONOMY STANDARDS- Section
32912(b) of title 49, United States Code, is amended--
(A) by inserting `(1)' before `Except as provided';
(B) by striking `$5' and inserting `the dollar amount applicable under
paragraph (2)';
(C) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A),
(B), and (C), respectively; and
(D) by adding at the end the following:
`(2)(A) The dollar amount referred to in paragraph (1) is $10, as increased
from time to time under subparagraph (B);
`(B) Effective on October 1 of each year, the dollar amount applicable
under subparagraph (A) shall be increased by the percentage (rounded to
the nearest 1/10 of 1 percent) by which the price index for July of such
year exceeds the price index for July of the preceding year. The amount
calculated under the preceding sentence shall be rounded to the nearest
$0.10.
`(C) In this paragraph, the term `price index' means the Consumer Price
Index for all-urban consumers published monthly by the Department of Labor.'.
(2) CONFORMING AMENDMENT- Section 32912(c)(1) of title 49, United States
Code, is amended--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraphs (C) and (D) as subparagraphs (B)
and (C), respectively.
(3) APPLICABILITY- The amendments made by subsection (a) shall apply with
respect to automobiles manufactured for model years beginning after the
date of enactment of this Act.
SEC. 105. INCLUSION OF SPORTS UTILITY VEHICLES IN LIMITATION ON DEPRECIATION
OF CERTAIN LUXURY AUTOMOBILES.
(a) In General- Subparagraph (A) of section 280F(d)(5) of the Internal Revenue
Code of 1986 (defining passenger automobile) is amended by striking clause
(ii) and all that follows and inserting the following new clause:
`(ii)(I) except as provided in subclause (II) or (III), which is rated
at 6,000 pounds unloaded gross vehicle weight or less,
`(II) in the case of a truck or van, which is rated at 6,000 pounds
gross vehicle weight or less, or
`(III) in the case of a sports utility vehicle not described in subclause
(I), which is rated at more than 6,000 pounds but not more than 14,000
pounds gross vehicle weight.'.
(b) Definition- Paragraph (5) of section 280F(d) of such Code is amended
by adding at the end the following new subparagraph:
`(C) SPORTS UTILITY VEHICLES- The term `sports utility vehicle' does
not include any vehicle which--
`(i) does not have the primary load carrying device or container attached,
`(ii) has a seating capacity of more than 12 individuals,
`(iii) is designed for more than 9 individuals in seating rearward
of the driver's seat,
`(iv) is equipped with an open cargo area, or a covered box not readily
accessible from the passenger compartment, of at least 72.0 inches
in interior length, or
`(v) has an integral enclosure, fully enclosing the driver compartment
and load carrying device, does not have seating rearward of the driver's
seat, and has no body section protruding more than 30 inches ahead
of the leading edge of the windshield.'.
(c) Conforming Amendment- Section 179(b) of such Code (relating to limitations)
is amended by striking paragraph (6).
(d) Effective Date- The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.
SEC. 106. FUEL EFFICIENCY STANDARDS FOR REPLACEMENT TIRES.
(a) Standards for Tires Manufactured for Interstate Commerce- Section 30123
of title 49, United States Code, is amended--
(1) in subsection (b), by inserting after the first sentence the following:
`The grading system shall include standards for rating the fuel efficiency
of tires designed for use on passenger cars and light trucks.'; and
(2) by adding at the end of the following:
`(d) National Tire Fuel Efficiency Program- (1) The Secretary shall develop
and carry out a national tire efficiency program for tires designed for
use on passenger cars and light trucks.
`(2) The program shall include the following:
`(A) Policies and procedures for testing and labeling tires for fuel economy
to enable tire buyers to make informed purchasing decisions about the
fuel economy of tires.
`(B) Policies and procedures to promote the purchase of energy-efficient
replacement tires, including purchase incentives, website listings on
the Internet, printed fuel economy guide booklets, and mandatory requirements
for tire retailers to provide tire buyers with fuel-efficiency information
on tires.
`(C) Minimum fuel economy standards for tires, promulgated by the Secretary.
`(3) The minimum fuel economy standards for tires shall--
`(A) ensure that, in conjunction with the requirements of paragraph (2)(B),
the average fuel economy of replacement tires is equal to or better than
the average fuel economy of tires sold as original equipment;
`(B) secure the maximum technically feasible and cost-effective fuel savings;
and
`(C) not adversely affect tire safety;
`(D) not adversely affect the average tire life of replacement tires;
`(E) incorporate the results from--
`(i) laboratory testing; and
`(ii) to the extent appropriate and available, on-road fleet testing
programs conducted by manufacturers; and
`(F) not adversely affect efforts to manage scrap tires.
`(4) The policies, procedures, and standards developed under paragraph (2)
shall apply to all tire types an models that are covered by the Uniform
Tire Quality Grading Standards in section 575.104 of title 49, Code of Federal
Regulations (or any successor regulation).
`(5) Not less than every 3 years, the Secretary shall review the minimum
fuel economy standards in effect for tires under this subsection and revise
the standards as necessary to ensure compliance with requirements under
paragraph (3). The Secretary may not reduce the average fuel economy standards
applicable to replacement tires.
`(6) Nothing in this section shall be construed to preempt any provisions
of State law relating to higher fuel economy standards applicable to replacement
tires designed for use on passenger cars and light trucks. Nothing in this
chapter shall apply to--
`(A) a tire or group of tires with the same product identification number,
plant, and year, for which the volume of tires produced or imported is
less than 15,000 annually;
`(B) a deep tread, winter-type snow tire, space-saver tire, or temporary
use spare tire;
`(C) a tire with a normal rim diameter of 12 inches or less;
`(D) a motorcycle tire; or
`(E) a tire manufactured specifically for use in an off-road motorized
recreational vehicle.
`(7) In this subsection, the term `fuel economy', with respect to tires,
means the extent to which the tire contribute to the fuel economy of the
motor vehicles on which the tire are mounted.'.
(b) Conforming Amendment- Section 30103(b)(1) of title 49, United States
Code, is amended by striking `When' and inserting `Except as provided in
section 30123(d) of this title, when'.
(c) Implementation- The Secretary of Transportation shall ensure that the
national tire fuel efficiency program required under subsection (d) of section
30123 of title 49, United States Code, (as added by subsection (a)(2)),
is administered so as to apply the policies, procedures, and standards developed
under paragraph (2) of such subsection beginning not later than March 31,
2008.
TITLE II--REDUCE HEAT AND ELECTRIC BILLS
SEC. 201. WEATHERIZATION ASSISTANCE.
Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872)
is amended--
(1) by striking `$500,000,000' and inserting `$1,000,000,000';
(2) by striking `$600,000,000' and inserting `$1,200,000,000'; and
(3) by striking `$700,000,000' and inserting `$1,400,000,000'.
SEC. 202. ENERGY STAR PROGRAMS.
There are authorized to be appropriated for carrying out the Energy Star
program under section 324A of the Energy Policy and Conservation Act--
(1) to the Administrator of the Environmental Protection Agency $100,000,000
for each fiscal year; and
(2) to the Secretary of Energy $12,000,000 for each fiscal year.
SEC. 203. RENEWABLE ELECTRICITY PRODUCTION CREDIT.
(a) Extension- Section 45(d) of the Internal Revenue Code of 1986 (relating
to qualified facilities) is amended--
(1) by striking `January 1, 2008' each place it appears in paragraphs
(1), (2), (3), (5), (6), and (7) and inserting `January 1, 2012', and
(2) by striking `January 1, 2006' in paragraph (4) and inserting `January
1, 2012 (January 1, 2010, in the case of a facility using solar energy)'.
(b) Repeal of Municipal Solid Waste as Qualified Resource- Paragraph (1)
of section 45(c) of such Code is amended by striking subparagraph (G).
(c) Extension of Credit for Residential Energy Efficient Property- Subsection
(g) of section 25D of such Code (relating to termination) is amended by
striking `December 31, 2007' and inserting `December 31, 2012'.
SEC. 204. EFFICIENCY RESOURCE STANDARD.
(a) Amendment- Title VII of the Public Utility Regulatory Policies Act of
1978 is amended by adding the following new section at the end thereof:
`SEC. 610. EFFICIENCY RESOURCE STANDARD FOR RETAIL ELECTRICITY AND NATURAL
GAS SUPPLIERS.
`(a) Resource Standard- Each retail electricity and natural gas supplier
shall undertake energy savings measures in each calendar year from 2006
through 2015 that produce electricity demand savings and electricity and
natural gas usage savings, as a percentage of the supplier's base amount
as shown in the following table. These targets represent savings realized
from measures installed in the current year, plus cumulative savings realized
from measures installed in all previous years. Each retail electricity and
natural gas supplier subject to this subsection may use any electricity
or natural gas savings measures available to it to achieve compliance with
the performance standard established under this section, so long as the
electricity and natural gas savings achieved by such measures can be calculated
and verified pursuant to the rules promulgated under subsection (b).
----------------------------------------------------------------------------------------------------------
`Year Reductions in peak electricity demand Reductions in electricity and natural gas usage
----------------------------------------------------------------------------------------------------------
2006 0.25% 0.25%
2007 0.75% 0.75%
2008 1.75% 1.5%
2009 2.75% 2.25%
2010 and thereafter 3.75% 3.0%
----------------------------------------------------------------------------------------------------------
`(b) Determination of Compliance- The Secretary shall promulgate rules not
later than one year after the enactment of this section regarding the means
to be used to calculate and verify compliance with the performance standard
established under subsection (a). Each retail electric and natural gas supplier
subject to this section shall calculate its compliance with such standard
in accordance with such rules. The rules shall include each of the following:
`(1) Procedures and standards for defining and measuring electricity savings
achieved or obtained by electricity and natural gas suppliers (hereinafter
in this section referred to as `electricity and natural gas savings')
from customer facility end-uses that occur in a calendar year from all
measures in place in that year (including measures implemented in previous
years that produce electricity and natural gas savings in such calendar
year).
`(2) Procedures and standards for verification of electricity and natural
gas savings reported by the retail electricity and natural gas supplier.
`(3) Requirements for the contents and format of a bi-annual report from
each retail electricity and natural gas supplier demonstrating its compliance
with the requirements of subsection (a). The bi-annual report must include
sufficient detail regarding the calculation of electricity and natural
gas savings to enable the regulatory authority to verify and enforce compliance
with the requirements of this section and the regulations under this section.
`(c) Credit and Trading System- (1) After consultation with the Administrator
of the Environmental Protection Agency, the Secretary shall promulgate rules
establishing a nationwide credit and credit trading system for electricity
and natural gas savings. Under such rules the Secretary may certify as credits
electricity or natural savings achieved by a retail electricity or natural
gas supplier in a given year in excess of the quantity of electricity or
natural gas savings required that calendar year for such supplier to meet
the resource standard, as long as such savings comply with the rules established
under subsection (b). The Secretary shall also certify as credits customer
energy savings created by retail electric or natural gas suppliers or other
entities, as long as such savings comply with the rules established under
subsection (b). An electricity savings credit shall equal one kilowatt hour;
a natural gas savings credit shall constitute one therm.
`(2) The Secretary shall not award credits to any retail electricity or
natural gas supplier subject to State administration and enforcement under
subsection (d) unless the Secretary has determined that such administration
and enforcement are at least equivalent to administration and enforcement
by the Secretary.
`(3) An electricity or natural gas savings credit is not a property right.
Nothing in this or any other provision of law shall be construed to limit
the authority of the United States to terminate or limit such credits.
`(4) A retail electric or natural gas supplier may sell such credit to any
other entity, and other entities may sell such credits to retail electric
or natural gas suppliers, in accordance with the accounting and verification
rules established by the Secretary. Such credit may be used by a purchasing
retail electricity or natural gas supplier for purposes of complying with
the resource standards set forth in subsection (a).
`(5) In order to receive an electricity or natural gas savings credit, the
recipient of an electricity savings credit shall pay a fee, calculated by
the Secretary, in an amount that is equal to the administrative costs of
issuing, recording, monitoring the sale or exchange of, and tracking the
credit or does not exceed five percent of the dollar value of the credit,
whichever is lower. The Secretary shall retain the fee and use it to pay
these administrative costs.
`(6) A credit may be counted toward compliance with subsection (a) only
once. A retail electricity or natural gas supplier may satisfy the requirements
of subsection (a) through the accumulation of
`(A) electricity or natural gas savings credits obtained by purchase or
exchange under paragraph (7);
`(B) electricity or natural gas savings credits borrowed against future
years under paragraph (8); or
`(C) any combination of credits under subparagraphs (A) and (B).
`(7) An electricity or natural gas savings credit may be sold or exchanged
by the entity to whom issued or by any other entity that acquires the credit.
An energy efficiency credit for any year that is not used to satisfy the
minimum energy savings requirement of subsection (a) for that year may be
carried forward for use within the next 4 years.
`(8) During the first year covered by the standards, a retail electricity
or natural gas supplier that has reason to believe that it will not have
sufficient electricity savings credits to comply with subsection (a) may
`(A) submit a plan to the Secretary demonstrating that the retail electricity
or natural gas supplier will earn sufficient credits within the next two
calendar years which, when taken into account, will enable the retail
electricity or natural gas supplier to meet the requirements of subsection
(a) for the calendar year involved; and
`(B) upon the approval of the plan by the Secretary, apply credits that
the plan demonstrates will be earned within the next two calendar years
to meet the requirements of subsection (a) for the calendar year involved.
`(9) Any retail electricity or natural gas supplier may elect to comply
with the requirements of this section in any calendar year by paying a fee
of 3 cents per kilowatt hour, and 30 cents per therm, for any portion of
the electricity or natural gas savings it would be obligated to achieve
in that year by not later than March 31 of the following year. Funds produced
from such fees shall be deposited in an escrow account established by the
Secretary, and shall be distributed to the States for their use in creating
electricity or natural gas savings at customer facilities.
`(d) Enforcement of Compliance- (1) If the State regulatory authority with
ratemaking jurisdiction over a State-regulated retail electricity or natural
gas supplier notifies the Secretary that it will enforce compliance by such
supplier with the performance standards under subsection (a) of this section,
such State regulatory authority shall have the authority to administer and
enforce such standards for such supplier under State law. If the State regulatory
authority does not so notify the Secretary, the Secretary shall exercise
such authority until receiving such notice from the State regulatory authority.
`(2) Not later than July 1 of the calendar years 2007, 2009. 2011, 2013,
and 2015, each retail electricity and natural gas supplier shall submit
the compliance report required under subsection (b) to:
`(A) the appropriate State regulatory authority, if such authority has
notified the Secretary under subsection (d), or
`(B) the Secretary to determine and enforce compliance with the standards.
`(3) In the case of any retail electricity or natural gas supplier for which
the Secretary is enforcing compliance with the standards under this section,
if such supplier fails to comply with such standards for two consecutive
calendar years, the Secretary shall determine the number of kilowatt hours
of electricity savings, or therms of natural gas savings, by which the supplier
has fallen short of the standards, and, by order, require such supplier,
after notice and opportunity for hearing, to deposit in an escrow account
to be designated by the Secretary an amount equal to 3.5 cents per kilowatt
hour for each such kilowatt hour, and 35 cents per therm for each such therm.
The holder of such escrow account shall annually distribute the total amount
of such account to the States to be used by the States for the purpose of
achieving customer electricity and natural gas savings. Any retail electricity
or natural gas supplier required to make such a payment may, within 60 calendar
days after the issuance of such order, bring an action in the United States
Court of Appeals for the District of Columbia for judicial review of such
order. Such court shall have jurisdiction to enter a judgment affirming,
modifying, or setting aside such order or remanding such order in whole
or in part to the Secretary.
`(e) Information Collection- The Secretary may collect the information necessary
to verify and audit--
`(1) the annual electric energy sales, natural gas sales, electricity
savings, and natural gas savings of any entity applying for electricity
or natural gas savings credits under this section,
`(2) the validity of electricity or natural gas savings credits submitted
by a retail electricity or natural gas supplier to the Secretary, and
`(3) the quantity of electricity and natural gas sales of all retail electricity
and natural gas suppliers.
`(f) State Law- Nothing in this section shall supersede or otherwise affect
any State or local law requiring or otherwise relating to reductions in
total annual electricity or natural gas energy consumption by or peak power
consumption by electric consumers to the extent that such State or local
law requires more stringent reductions than those required under this section.
Any retail electricity or natural gas supplier that achieves reductions
referred to in this section in accordance with State requirements shall
be entitled to full credit under this section for such reductions to the
extent that such reductions meet the requirements of this section and the
regulations under this section (including verification and monitoring requirements).
`(g) Definitions- For purposes of this section:
`(1) The term `retail electricity or natural supplier' means a person
that sells electric energy or natural gas to consumers and sold not less
than 1,000,000 megawatt-hours of electric energy or 20,000,000 therms
of natural gas to consumers for purposes other than resale during the
preceding calendar year; except that such term does not include the United
States, a State or any political subdivision of a State, or any agency,
authority, or instrumentality of any one or more of the foregoing, or
a rural electric cooperative.
`(2) The term `retail electricity or natural gas supplier's base amount'
means the total amount of electric energy or natural gas sold by the retail
electricity or natural gas supplier to customers during the most recent
calendar year for which information is available.
`(3) The term `electricity savings' means reductions in end-use electricity
consumption in customer facilities relative to consumption at those same
facilities in a base year as defined in rules issued by the Secretary,
or in the case of new facilities, relative to reference facilities defined
in rules issued by the Secretary, or distributed generation efficiency
measures, including fuel cells and combined heat and power (CHP) technologies,
that provide electricity only for onsite customer use.
`(4) The term `natural gas savings' means reductions in end-use natural
gas consumption in customer facilities relative to consumption at those
same facilities in a base year as defined in rules issued by the Secretary,
or in the case of new facilities, relative to reference facilities defined
in rules issued by the Secretary.'.
(b) Table of Contents- The table of contents for title VII of the Public
Utility Regulatory Policies Act of 1978 is amended by adding the following
new item at the end thereof:
`Sec. 610. Efficiency resource standard for retail electricity and natural
gas suppliers.'.
SEC. 205. FEDERAL RENEWABLE PORTFOLIO STANDARD.
(a) In General- Title VI of the Public Utility Regulatory Policies Act of
1978 is amended by adding at the end the following:
`SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD.
`(a) Minimum Renewable Generation Requirement- For each calendar year beginning
in calendar year 2007, each retail electric supplier shall submit to the
Secretary, not later than April 1 of the following calendar year, renewable
energy credits in an amount equal to the required annual percentage specified
in subsection (b).
`(b) Required Annual Percentage- For calendar years 2007 through 2025, the
required annual percentage of the retail electric supplier's base amount
that shall be generated from renewable energy resources, or otherwise credited
towards such percentage requirement pursuant to subsection (c), shall be
the percentage specified in the following table:
Required annual
131`
131`Calendar Years
percentage
--1
--2.2
--3.4
--4.6
--5.8
--7.0
--8.5
--10.0
--12.0
--14.0
--16.0
--18.0
--20.0.
`(c) Submission of Credits- (1) A retail electric supplier may satisfy the
requirements of subsection (a) through the submission of renewable energy
credits--
`(A) issued to the retail electric supplier under subsection (d);
`(B) obtained by purchase or exchange under subsection (e); or
`(C) borrowed under subsection (f).
`(2) A renewable energy credit may be counted toward compliance with subsection
(a) only once.
`(d) Issuance of Credits- (1) The Secretary shall establish by rule, not
later than 1 year after the date of enactment of this section, a program
to issue and monitor the sale or exchange of, and track, renewable energy
credits.
`(2) Under the program established by the Secretary, an entity that generates
electric energy through the use of a renewable energy resource may apply
to the Secretary for the issuance of renewable energy credits. The application
shall indicate--
`(A) the type of renewable energy resource used to produce the electricity;
`(B) the location where the electric energy was produced; and
`(C) any other information the Secretary determines appropriate.
`(3)(A) Except as provided in subparagraphs (B), (C), and (D), the Secretary
shall issue to each entity that generates electric energy one renewable
energy credit for each kilowatt hour of electric energy the entity generates
from the date of enactment of this section and in each subsequent calendar
year through the use of a renewable energy resource at an eligible facility.
`(B) For incremental hydropower the renewable energy credits shall be calculated
based on the expected increase in average annual generation resulting from
the efficiency improvements or capacity additions. The number of credits
shall be calculated using 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.
The calculation of the renewable energy credits for incremental hydropower
shall not be based on any operational changes at the hydroelectric facility
not directly associated with the efficiency improvements or capacity additions.
`(C) The Secretary shall issue two renewable energy credits for each kilowatt
hour of electric energy generated and supplied to the grid in that calendar
year through the use of a renewable energy resource at an eligible facility
located on Indian land. For purposes of this paragraph, renewable energy
generated by biomass cofired with other fuels is eligible for two credits
only if the biomass was grown on such land.
`(D) For electric energy resources produced from a generation offset, the
Secretary shall issue two renewable energy credits for each kilowatt hour
generated.
`(F) To be eligible for a renewable energy credit, the unit of electric
energy generated through the use of a renewable energy resource may be sold
or may be used by the generator. If both a renewable energy resource and
a non-renewable energy resource are used to generate the electric energy,
the Secretary shall issue renewable energy credits based on the proportion
of the renewable energy resources used. The Secretary shall identify renewable
energy credits by type and date of generation.
`(4) When a generator sells electric energy generated through the use of
a renewable energy resource to a retail electric supplier under a contract
subject to section 210 of this Act, the retail electric supplier is treated
as the generator of the electric energy for the purposes of this section
or the duration of the contract.
`(5) The Secretary shall issue renewable energy credits for existing facility
offsets to be applied against a retail electric supplier's required annual
percentage. Such credits are not tradeable and may be used only in the calendar
year generation actually occurs.
`(e) Credit Trading- A renewable energy credit, may be sold or exchanged
by the entity to whom issued or by any other entity who acquires the renewable
energy credit. A renewable energy credit for any year that is not used to
satisfy the minimum renewable generation requirement of subsection (a) for
that year may be carried forward for use within the next 4 years.
`(f) Credit Borrowing- At any time before the end of calendar year 2006,
a retail electric supplier that has reason to believe it will not have sufficient
renewable energy credits to comply with subsection (a) may--
`(1) submit a plan to the Secretary demonstrating that the retail electric
supplier will earn sufficient credits within the next 3 calendar years
which, when taken into account, will enable the retail electric supplier
to meet the requirements of subsection (a) for calendar year 2007 and
the subsequent calendar years involved; and
`(2) upon the approval of the plan by the Secretary, apply renewable energy
credits that the plan demonstrates will be earned within the next 3 calendar
years to meet the requirements of subsection (a) for each calendar year
involved.
The retail electric supplier must repay all of the borrowed renewable energy
credits by submitting an equivalent number of renewable energy credits,
in addition to those otherwise required under subsection (a), by calendar
year 2008 or any earlier deadlines specified in the approved plan. Failure
to repay the borrowed renewable energy credits shall subject the retail
electric supplier to civil penalties under subsection (h) for violation
of the requirements of subsection (a) for each calendar year involved.
`(g) Credit Cost Cap- The Secretary shall offer renewable energy credits
for sale at the lesser of 3 cents per kilowatt-hour or 200 percent of the
average market value of renewable credits for the applicable compliance
period. On January 1 of each year following calendar year 2006, the Secretary
shall adjust for inflation the price charged per credit for such calendar
year, based on the Gross Domestic Product Implicit Price Deflator.
`(h) Enforcement- The Secretary may bring an action in the appropriate United
States district court to impose a civil penalty on a retail electric supplier
that does not comply with subsection (a), unless the retail electric supplier
was unable to comply with subsection (a) for reasons outside of the supplier's
reasonable control (including weather-related damage, mechanical failure,
lack of transmission capacity or availability, strikes, lockouts, actions
of a governmental authority). A retail electric supplier who does not submit
the required number of renewable energy credits under subsection (a) shall
be subject to a civil penalty of not more than the greater of 3 cents or
200 percent of the average market value of credits for the compliance period
for each renewable energy credit not submitted..
`(i) Information Collection- The Secretary may collect the information necessary
to verify and audit--
`(1) the annual electric energy generation and renewable energy generation
of any entity applying for renewable energy credits under this section;
`(2) the validity of renewable energy credits submitted by a retail electric
supplier to the Secretary; and
`(3) the quantity of electricity sales of all retail electric suppliers.
`(j) Environmental Savings Clause- Incremental hydropower shall be subject
to all applicable environmental laws and licensing and regulatory requirements.
`(k) Existing Programs- This section does not preclude a State from imposing
additional renewable energy requirements in that State, including specifying
eligible technologies under such State requirements.
`(l) Definitions- For purposes of this section:
`(1) BIOMASS- The term `biomass' means any organic material that is available
on a renewable or recurring basis, including dedicated energy crops, trees
grown for energy production, wood waste and wood residues, plants (including
aquatic plants, grasses, and agricultural crops), residues, fibers, animal
wastes and other organic waste materials (but not including unsegregated
municipal solid waste (garbage)), and fats and oils, except that with
respect to material removed from National Forest System lands the term
includes only organic material from--
`(A) thinnings from trees that are less than 12 inches in diameter;
`(2) ELIGIBLE FACILITY- The term `eligible facility' means--
`(A) a facility for the generation of electric energy from a renewable
energy resource that is placed in service on or after the date of enactment
of this section; or
`(B) a repowering or cofiring increment that is placed in service on
or after the date of enactment of this section at a facility for the
generation of electric energy from a renewable energy resource that
was placed in service before that date.
`(3) ELIGIBLE RENEWABLE ENERGY RESOURCE- The term `renewable energy resource'
means solar, wind, ocean, or geothermal energy, biomass (excluding solid
waste and paper that is commonly recycled), landfill gas, a generation
offset, or incremental hydropower.
`(4) GENERATION OFFSET- The term `generation offset' means reduced electricity
usage metered at a site where a customer consumes energy from a renewable
energy technology.
`(5) EXISTING FACILITY OFFSET- The term `existing facility offset' means
renewable energy generated from an existing facility, not classified as
an eligible facility, that is owned or under contract, directly or indirectly,
to a retail electric supplier on the date of enactment of this section.
`(6) INCREMENTAL HYDROPOWER- The term `incremental hydropower' means additional
generation that is achieved from increased efficiency or additions of
capacity on or after the date of enactment of this section or the effective
date of the applicable State renewable portfolio standard program, at
a hydroelectric facility that was placed in service before that date.
`(7) INDIAN LAND- The term `Indian land' means--
`(A) any land within the limits of any Indian reservation, pueblo, or
rancheria;
`(B) any land not within the limits of any Indian reservation, pueblo,
or rancheria title to which was on the date of enactment of this paragraph
either held by the United States for the benefit of any Indian tribe
or individual or held by any Indian tribe or individual subject to restriction
by the United States against alienation;
`(C) any dependent Indian community; and
`(D) any land conveyed to any Alaska Native corporation under the Alaska
Native Claims Settlement Act.
`(8) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe, band,
nation, or other organized group or community, including any Alaskan Native
village or regional or village corporation as defined in or established
pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special programs and services
provided by the United States to Indians because of their status as Indians.
`(9) RENEWABLE ENERGY- The term `renewable energy' means electric energy
generated by a renewable energy resource.
`(10) RENEWABLE ENERGY RESOURCE- The term `renewable energy resource'
means solar, wind, ocean, geothermal energy, biomass (not inlcuding municipal
solid wate), landfill gas, a generation offset, or incremental hydropower.
`(11) REPOWERING OR COFIRING INCREMENT- The term `repowering or cofiring
increment' means--
`(A) the additional generation from a modification that is placed in
service on or after the date of enactment of this section to expand
electricity production at a facility used to generate electric energy
from a renewable energy resource or to cofire biomass that was placed
in service before the date of enactment of this section, or
`(B) the additional generation above the average generation in the 3
years preceding the date of enactment of this section to expand electricity
production at a facility used to generate electric energy from a renewable
energy resource or to cofire biomass that was placed in service before
the date of enactment of this section.
`(12) RETAIL ELECTRIC SUPPLIER- The term `retail electric supplier' means
a person that sells electric energy to electric consumers and sold not
less than 1,000,000 megawatt-hours of electric energy to electric consumers
for purposes other than resale during the preceding calendar year; except
that such term does not include the United States, a State or any political
subdivision of a State, or any agency, authority, or instrumentality of
any one or more of the foregoing.
`(13) RETAIL ELECTRIC SUPPLIER'S BASE AMOUNT- The term `retail electric
supplier's base amount' means means the total amount of electric energy
sold by the retail electric supplier to electric customers during the
most recent calendar year for which information is available, excluding
electric energy generated by--
`(A) an eligible renewable energy resource; or
`(B) a hydroelectric facility.
`(m) Sunset- This section expires December 31, 2030.'.
(b) Table of Contents- The table of contents for such title is amended by
adding the following new item at the end:
`Sec. 611. Federal renewable portfolio standard.'.
SEC. 206. NET METERING.
(a) Adoption of Standard- Section 111(d)(11) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended to read as follows:
`(11) NET METERING- (A) Each electric utility shall make available upon
request net metering service to any electric consumer that the electric
utility serves.
`(B) For purposes of implementing this paragraph, any reference contained
in this section to the date of enactment of the Public Utility Regulatory
Policies Act of 1978 shall be deemed to be a reference to the date of
enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each State
regulatory authority may consider and make a determination concerning
whether it is appropriate in the public interest to not implement the
standard set out in subparagraph (A) not later than 1 year after the date
of enactment of this paragraph.
`(D) Nothing in this section shall preclude a State from establishing
additional incentives or to encourage on-site generating facilities and
net metering in addition to that required under this section.
`(E) The Department shall report within 11 months of enactment and annually
thereafter on the public benefit provided by adoption of net metering
and interconnection standards, and the status of state adoption of such.'.
(b) Special Rules for Net Metering- Section 115 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the
following:
`(i) Net Metering- In undertaking the consideration and making the determination
under section 111 with respect to the standard concerning net metering established
by section 111(d)(11), the term net metering service shall mean a service
provided in accordance with the following standards:
`(1) An electric utility--
`(A) shall charge the owner or operator of an on-site generating facility
rates and charges that are identical to those that would be charged
other electric consumers of the electric utility in the same rate class;
and
`(B) shall not charge the owner or operator of an on-site generating
facility any additional standby, capacity, interconnection, or other
rate or charge.
`(2) An electric utility that sells electric energy to the owner or operator
of an on-site generating facility shall measure the quantity of electric
energy produced by the on-site facility and the quantity of electric energy
consumed by the owner or operator of an on-site generating facility during
a billing period with a single bi-directional meter or otherwise in accordance
with reasonable metering practices.
`(3) If the quantity of electric energy sold by the electric utility to
an on-site generating facility exceeds the quantity of electric energy
supplied by the on-site generating facility to the electric utility during
the billing period, the electric utility may bill the owner or operator
for the net quantity of electric energy sold, in accordance with reasonable
metering practices.
`(4) If the quantity of electric energy supplied by the on-site generating
facility to the electric utility exceeds the quantity of electric energy
sold by the electric utility to the on-site generating facility during
the billing period--
`(A) the electric utility may bill the owner or operator of the on-site
generating facility for the appropriate charges for the billing period
in accordance with paragraph; and
`(B) the owner or operator of the on-site generating facility shall
be credited for the excess kilowatt-hours generated during the billing
period, with the kilowatt-hour credit appearing on the bill for the
following billing period.
`(5) An eligible on-site generating facility and net metering system used
by an electric consumer shall meet all applicable safety, performance,
reliability, and interconnection standards established by the National
Electrical Code, the Institute of Electrical and Electronics Engineers,
and Underwriters Laboratories.
`(6) The Commission, after consultation with State regulatory authorities
and unregulated electric utilities and after notice and opportunity for
comment, may adopt, by rule, additional control and testing and interconnection
requirements for on-site generating facilities and net metering systems
that the Commission determines are necessary to protect public safety
and system reliability.
`(7) For purposes of this subsection:
`(A) The term `eligible on-site generating facility' means a facility
on the site of a residential electric consumer with a maximum generating
capacity of 10 kilowatts or less that is fueled by solar energy, wind
energy, or fuel cells; or a facility on the site of a commercial electric
consumer with a maximum generating capacity of 500 1000 kilowatts or
less that is fueled solely by a renewable energy resource, landfill
gas, or a high efficiency system.
`(B) The term `renewable energy resource' means solar, wind, biomass,
micro-freeflow hydro, or geothermal energy.
`(C) The term `high efficiency system' means fuel cells or combined
heat and power.
`(D) The term `net metering service' means service to an electric consumer
under which electric energy generated by that electric consumer from
an eligible on-site generating facility and delivered to the local distribution
facilities may be used to offset electric energy provided by the electric
utility to the electric consumer during the applicable billing period.'.
TITLE III--SAVE TAX PAYERS MONEY
SEC. 301. REPEAL OF CERTAIN PROVISIONS OF THE ENERGY POLICY ACT OF 2005.
(a) Repeals- The following provisions of the Energy Policy Act of 2005,
and the items relating thereto in the table of contents of that Act, are
repealed:
(1) Section 342 (relating to program on oil and gas royalties in-kind).
(2) Section 343 (relating to marginal property production incentives).
(3) Section 344 (relating to incentives for natural gas production from
deep wells in the shallow waters of the Gulf of Mexico).
(4) Section 345 (relating to royalty relief for deep water production).
(5) Section 357 (relating to comprehensive inventory of OCS oil and natural
gas resources).
(6) Subtitle J of title IX (relating to ultra-deepwater and unconventional
natural gas and other petroleum resources).
(b) Repeal of Alaska Offshore Royalty Suspension- Section 8(a)(3)(B) of
the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended
by striking `and in the Planning Areas offshore Alaska'.
SEC. 302. REPEAL OF CERTAIN TAX PROVISIONS OF THE ENERGY POLICY ACT OF
2005.
(a) Repeal- The following provisions, and amendments made by such provisions,
of the Energy Policy Act of 2005 are hereby repealed:
(1) Section 1306 (relating to credit for production from advanced nuclear
power facilities).
(2) Section 1307 (relating to credit for investment in clean coal facilities).
(3) Section 1308 (relating to electric transmission property treated as
15-year property).
(4) Section 1309 (relating to expansion of amortization for certain atmospheric
pollution control facilities).
(5) Section 1310 (relating to modifications to special rules for nuclear
decommissioning costs).
(6) Section 1321 (relating to extension of credit for producing fuel from
nonconventional source (coke or coke gas).
(7) Section 1323 (relating to temporary expensing for equipment used in
refining of liquid fuels).
(8) Section 1325 (relating to natural gas distribution lines treated as
15-year property).
(9) Section 1326 (relating to natural gas gathering lines treated as 7-year
property).
(10) Section 1328 (relating to determination of small refiner exception
to oil depletion deduction).
(11) Section 1329 (relating to amortization of geological and geophysical
expenditures).
(b) Administration of Internal Revenue Code of 1986- The Internal Revenue
Code of 1986 shall be applied and administered as if the provisions, and
amendments, specified in subsection (a) had never been enacted.
TITLE IV--STATE AND LOCAL AUTHORITY
SEC. 401. STATE CONSUMER PRODUCT ENERGY EFFICIENCY STANDARDS.
Section 327 of the Energy Policy and Conservation Act (42 U.S.C. 6297) is
amended by adding at the end the following new subsection:
`(h) Limitation on Preemption- Subsections (a), (b), and (c) shall not apply
with respect to State regulation of energy consumption or water use of any
covered product during any period of time--
`(1) after the expiration of 3 years after the required date of issuance
of a final rule determining whether Federal standards for such consumption
or use will be established or revised, if such rule has not been issued;
and
`(2) before the date on which such rule is issued.'.
SEC. 402. APPEALS FROM CONSISTENCY DETERMINATIONS UNDER COASTAL ZONE MANAGEMENT
ACT OF 1972.
Section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1465)
is amended to read as if section 381 of the Energy Policy Act of 2005 (119
Stat. 737) were not enacted.
SEC. 403. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
Section 216 of the Federal Power Act (16 U.S.C. 824p) is repealed.
SEC. 404. NEW NATURAL GAS STORAGE FACILITIES.
Subsection (f) of section 4 of the Natural Gas Act (15 U.S.C. 717c(f)) is
repealed.
SEC. 405. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.
The amendments to the Natural Gas Act made by section 313 of the Energy
Policy Act of 2005 are repealed, and the Natural Gas Act shall be administered
as if those amendments were never enacted.
SEC. 406. REPEAL OF PREEMPTION OF STATE LAW RELATING TO AUTOMOBILE FUEL
ECONOMY STANDARDS.
Section 32919 of title 49, United States Code, is repealed.
END
