HR 9332 — Load Forecasting Enhancement Act

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978

 * * * * * * * 
 
 TITLE I--RETAIL REGULATORY POLICIES FOR 
 ELECTRIC UTILITIES 

 * * * * * * *

 Subtitle B--Standards For Electric Utilities

SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CERTAIN 
 RATEMAKING STANDARDS.

 (a) Consideration and Determination.--Each State regulatory 
authority (with respect to each electric utility for which it 
has ratemaking authority) and each nonregulated electric 
utility shall consider each standard established by subsection 
(d) and make a determination concerning whether or not it is 
appropriate to implement such standard to carry out the 
purposes of this title. For purposes of such consideration and 
determination in accordance with subsections (b) and (c), and 
for purposes of any review of such consideration and 
determination in any court in accordance with section 123, the 
purposes of this title supplement otherwise applicable State 
law. Nothing in this subsection prohibits any State regulatory 
authority or nonregulated electric utility from making any 
determination that it is not appropriate to implement any such 
standard, pursuant to its authority under otherwise applicable 
State law.
 (b) Procedural Requirements for Consideration and 
Determination.--(1) The consideration referred to in subsection 
(a) shall be made after public notice and hearing. The 
determination referred to in subsection (a) shall be--
 (A) in writing,
 (B) based upon findings included in such 
 determination and upon the evidence presented at the 
 hearing, and
 (C) available to the public.
 (2) Except as otherwise provided in paragraph (1), in the 
second sentence of section 112(a), and in sections 121 and 122, 
the procedures for the consideration and determination referred 
to in subsection (a) shall be those established by the State 
regulatory authority or the nonregulated electric utility.
 (c) Implementation.--(1) The State regulatory authority (with 
respect to each electric utility for which it has ratemaking 
authority) or nonregulated electric utility may, to the extent 
consistent with otherwise applicable State law--
 (A) implement any such standard determined under 
 subsection (a) to be appropriate to carry out the 
 purposes of this title, or
 (B) decline to implement any such standard.
 (2) If a State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) or 
nonregulated electric utility declines to implement any 
standard established by subsection (d) which is determined 
under subsection (a) to be appropriate to carry out the 
purposes of this title, such authority or nonregulated electric 
utility shall state in writing the reasons therefor. Such 
statement of reasons shall be available to the public.
 (3) If a State regulatory authority implements a 
 standard established by subsection (d)(7) or (8), such 
 authority shall--
 (A) consider the impact that implementation 
 of such standard would have on small businesses 
 engaged in the design, sale, supply, 
 installation or servicing of energy 
 conservation, energy efficiency or other demand 
 side management measures, and
 (B) implement such standard so as to assure 
 that utility actions would not provide such 
 utilities with unfair competitive advantages 
 over such small businesses.
 (d) Establishment.--The following Federal standards are 
hereby established:
 (1) Cost of service.--Rates charged by any electric 
 utility for providing electric service to each class of 
 electric consumers shall be designed, to the maximum 
 extent practicable, to reflect the cost of providing 
 electric service to such class, as determined under 
 section 115(a).
 (2) Declining block rates.--The energy component of a 
 rate, or the amount attributable to the energy 
 component in a rate, charged by any electric utility 
 for providing electric service during any period to any 
 class of electric consumers may not decrease as 
 kilowatt-hour consumption by such class increases 
 during such period except to the extent that such 
 utility demonstrates that the costs to such utility of 
 providing electric service to such class, which costs 
 are attributable to such energy component, decrease as 
 such consumption increases during such period.
 (3) Time-of-day rates.--The rates charged by any 
 electric utility for providing electric service to such 
 class of electric consumers shall be on a time-of-day 
 basis which reflects the costs of providing electric 
 service to such class of electric consumers at 
 different times of the day unless such rates are not 
 cost-effective with respect to such class, as 
 determined under section 115(b).
 (4) Seasonal rates.--The rates charged by an electric 
 utility for providing electric service to each class of 
 electric consumers shall be on a seasonal basis which 
 reflects the costs of providing service to each class 
 of consumers at different seasons of the year to the 
 extent that such costs vary seasonally for such 
 utility.
 (5) Interruptible rates.--Each electric utility shall 
 offer each industrial and commercial electric consumer 
 an interruptible rate which reflects the cost of 
 providing interruptible service to the class of which 
 such consumer is a member.
 (6) Load management techniques.--Each electric 
 utility shall offer to its electric consumers such load 
 management techniques as the State regulatory authority 
 (or the nonregulated electric utility) has determined 
 will--
 (A) be practicable and cost-effective, as 
 determined under section 115(c),
 (B) be reliable, and
 (C) provide useful energy or capacity 
 management advantages to the electric utility.
 (7) Integrated resource planning.--Each electric 
 utility shall employ integrated resource planning. All 
 plans or filings before a State regulatory authority to 
 meet the requirements of this paragraph must be updated 
 on a regular basis, must provide the opportunity for 
 public participation and comment, and contain a 
 requirement that the plan be implemented.
 (8) Investments in conservation and demand 
 management.--The rates allowed to be charged by a State 
 regulated electric utility shall be such that the 
 utility's investment in and expenditures for energy 
 conservation, energy efficiency resources, and other 
 demand side management measures are at least as 
 profitable, giving appropriate consideration to income 
 lost from reduced sales due to investments in and 
 expenditures for conservation and efficiency, as its 
 investments in and expenditures for the construction of 
 new generation, transmission, and distribution 
 equipment. Such energy conservation, energy efficiency 
 resources and other demand side management measures 
 shall be appropriately monitored and evaluated.
 (9) Energy efficiency investments in power generation 
 and supply.--The rates charged by any electric utility 
 shall be such that the utility is encouraged to make 
 investments in, and expenditures for, all cost-
 effective improvements in the energy efficiency of 
 power generation, transmission and distribution. In 
 considering regulatory changes to achieve the 
 objectives of this paragraph, State regulatory 
 authorities and nonregulated electric utilities shall 
 consider the disincentives caused by existing 
 ratemaking policies, and practices, and consider 
 incentives that would encourage better maintenance, and 
 investment in more efficient power generation, 
 transmission and distribution equipment.
 (10) Consideration of the effects of wholesale power 
 purchases on utility cost of capital; effects of 
 leveraged capital structures on the reliability of 
 wholesale power sellers; and assurance of adequate fuel 
 supplies.--(A) To the extent that a State regulatory 
 authority requires or allows electric utilities for 
 which it has ratemaking authority to consider the 
 purchase of long-term wholesale power supplies as a 
 means of meeting electric demand, such authority shall 
 perform a general evaluation of:
 (i) the potential for increases or decreases 
 in the costs of capital for such utilities, and 
 any resulting increases or decreases in the 
 retail rates paid by electric consumers, that 
 may result from purchases of long-term 
 wholesale power supplies in lieu of the 
 construction of new generation facilities by 
 such utilities;
 (ii) whether the use by exempt wholesale 
 generators (as defined in section 32 of the 
 Public Utility Holding Company Act of 1935) of 
 capital structures which employ proportionally 
 greater amounts of debt than the capital 
 structures of such utilities threatens 
 reliability or provides an unfair advantage for 
 exempt wholesale generators over such 
 utilities;
 (iii) whether to implement procedures for the 
 advance approval or disapproval of the purchase 
 of a particular long-term wholesale power 
 supply; and
 (iv) whether to require as a condition for 
 the approval of the purchase of power that 
 there be reasonable assurances of fuel supply 
 adequacy.
 (B) For purposes of implementing the provisions of 
 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 any other provision of Federal 
 law, nothing in this paragraph shall prevent a State 
 regulatory authority from taking such action, including 
 action with respect to the allowable capital structure 
 of exempt wholesale generators, as such State 
 regulatory authority may determine to be in the public 
 interest as a result of performing evaluations under 
 the standards of subparagraph (A).
 (D) Notwithstanding section 124 and paragraphs (1) 
 and (2) of section 112(a), each State regulatory 
 authority shall consider and make a determination 
 concerning the standards of subparagraph (A) in 
 accordance with the requirements of subsections (a) and 
 (b) of this section, without regard to any proceedings 
 commenced prior to the enactment of this paragraph.
 (E) Notwithstanding subsections (b) and (c) of 
 section 112, each State regulatory authority shall 
 consider and make a determination concerning whether it 
 is appropriate to implement the standards set out in 
 subparagraph (A) not later than one year after the date 
 of enactment of this paragraph.
 (11) Net metering.--Each electric utility shall make 
 available upon request net metering service to any 
 electric consumer that the electric utility serves. For 
 purposes of this paragraph, 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.
 (12) Fuel sources.--Each electric utility shall 
 develop a plan to minimize dependence on 1 fuel source 
 and to ensure that the electric energy it sells to 
 consumers is generated using a diverse range of fuels 
 and technologies, including renewable technologies.
 (13) Fossil fuel generation efficiency.--Each 
 electric utility shall develop and implement a 10-year 
 plan to increase the efficiency of its fossil fuel 
 generation.
 (14) Time-based metering and communications.--(A) Not 
 later than 18 months after the date of enactment of 
 this paragraph, each electric utility shall offer each 
 of its customer classes, and provide individual 
 customers upon customer request, a time-based rate 
 schedule under which the rate charged by the electric 
 utility varies during different time periods and 
 reflects the variance, if any, in the utility's costs 
 of generating and purchasing electricity at the 
 wholesale level. The time-based rate schedule shall 
 enable the electric consumer to manage energy use and 
 cost through advanced metering and communications 
 technology.
 (B) The types of time-based rate schedules that may 
 be offered under the schedule referred to in 
 subparagraph (A) include, among others--
 (i) time-of-use pricing whereby electricity 
 prices are set for a specific time period on an 
 advance or forward basis, typically not 
 changing more often than twice a year, based on 
 the utility's cost of generating and/or 
 purchasing such electricity at the wholesale 
 level for the benefit of the consumer. Prices 
 paid for energy consumed during these periods 
 shall be pre-established and known to consumers 
 in advance of such consumption, allowing them 
 to vary their demand and usage in response to 
 such prices and manage their energy costs by 
 shifting usage to a lower cost period or 
 reducing their consumption overall;
 (ii) critical peak pricing whereby time-of-
 use prices are in effect except for certain 
 peak days, when prices may reflect the costs of 
 generating and/or purchasing electricity at the 
 wholesale level and when consumers may receive 
 additional discounts for reducing peak period 
 energy consumption;
 (iii) real-time pricing whereby electricity 
 prices are set for a specific time period on an 
 advanced or forward basis, reflecting the 
 utility's cost of generating and/or purchasing 
 electricity at the wholesale level, and may 
 change as often as hourly; and
 (iv) credits for consumers with large loads 
 who enter into pre-established peak load 
 reduction agreements that reduce a utility's 
 planned capacity obligations.
 (C) Each electric utility subject to subparagraph (A) 
 shall provide each customer requesting a time-based 
 rate with a time-based meter capable of enabling the 
 utility and customer to offer and receive such rate, 
 respectively.
 (D) 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.
 (E) In a State that permits third-party marketers to 
 sell electric energy to retail electric consumers, such 
 consumers shall be entitled to receive the same time-
 based metering and communications device and service as 
 a retail electric consumer of the electric utility.
 (F) Notwithstanding subsections (b) and (c) of 
 section 112, each State regulatory authority shall, not 
 later than 18 months after the date of enactment of 
 this paragraph conduct an investigation in accordance 
 with section 115(i) and issue a decision whether it is 
 appropriate to implement the standards set out in 
 subparagraphs (A) and (C).
 (15) Interconnection.--Each electric utility shall 
 make available, upon request, interconnection service 
 to any electric consumer that the electric utility 
 serves. For purposes of this paragraph, the term 
 ``interconnection service'' means service to an 
 electric consumer under which an on-site generating 
 facility on the consumer's premises shall be connected 
 to the local distribution facilities. Interconnection 
 services shall be offered based upon the standards 
 developed by the Institute of Electrical and 
 Electronics Engineers: IEEE Standard 1547 for 
 Interconnecting Distributed Resources with Electric 
 Power Systems, as they may be amended from time to 
 time. In addition, agreements and procedures shall be 
 established whereby the services are offered shall 
 promote current best practices of interconnection for 
 distributed generation, including but not limited to 
 practices stipulated in model codes adopted by 
 associations of state regulatory agencies. All such 
 agreements and procedures shall be just and reasonable, 
 and not unduly discriminatory or preferential.
 (16) Integrated resource planning.--Each electric 
 utility shall--
 (A) integrate energy efficiency resources 
 into utility, State, and regional plans; and
 (B) adopt policies establishing cost-
 effective energy efficiency as a priority 
 resource.
 (17) Rate design modifications to promote energy 
 efficiency investments.--
 (A) In general.--The rates allowed to be 
 charged by any electric utility shall--
 (i) align utility incentives with the 
 delivery of cost-effective energy 
 efficiency; and
 (ii) promote energy efficiency 
 investments.
 (B) Policy options.--In complying with 
 subparagraph (A), each State regulatory 
 authority and each nonregulated utility shall 
 consider--
 (i) removing the throughput incentive 
 and other regulatory and management 
 disincentives to energy efficiency;
 (ii) providing utility incentives for 
 the successful management of energy 
 efficiency programs;
 (iii) including the impact on 
 adoption of energy efficiency as 1 of 
 the goals of retail rate design, 
 recognizing that energy efficiency must 
 be balanced with other objectives;
 (iv) adopting rate designs that 
 encourage energy efficiency for each 
 customer class;
 (v) allowing timely recovery of 
 energy efficiency-related costs; and
 (vi) offering home energy audits, 
 offering demand response programs, 
 publicizing the financial and 
 environmental benefits associated with 
 making home energy efficiency 
 improvements, and educating homeowners 
 about all existing Federal and State 
 incentives, including the availability 
 of low-cost loans, that make energy 
 efficiency improvements more 
 affordable.
 (18) Consideration of smart grid investments.--
 (A) In general.--Each State shall consider 
 requiring that, prior to undertaking 
 investments in nonadvanced grid technologies, 
 an electric utility of the State demonstrate to 
 the State that the electric utility considered 
 an investment in a qualified smart grid system 
 based on appropriate factors, including--
 (i) total costs;
 (ii) cost-effectiveness;
 (iii) improved reliability;
 (iv) security;
 (v) system performance; and
 (vi) societal benefit.
 (B) Rate recovery.--Each State shall consider 
 authorizing each electric utility of the State 
 to recover from ratepayers any capital, 
 operating expenditure, or other costs of the 
 electric utility relating to the deployment of 
 a qualified smart grid system, including a 
 reasonable rate of return on the capital 
 expenditures of the electric utility for the 
 deployment of the qualified smart grid system.
 (C) Obsolete equipment.--Each State shall 
 consider authorizing any electric utility or 
 other party of the State to deploy a qualified 
 smart grid system to recover in a timely manner 
 the remaining book-value costs of any equipment 
 rendered obsolete by the deployment of the 
 qualified smart grid system, based on the 
 remaining depreciable life of the obsolete 
 equipment.
 (19) Smart grid information.--
 (A) Standard.--All electricity purchasers 
 shall be provided direct access, in written or 
 electronic machine-readable form as 
 appropriate, to information from their 
 electricity provider as provided in 
 subparagraph (B).
 (B) Information.--Information provided under 
 this section, to the extent practicable, shall 
 include:
 (i) Prices.--Purchasers and other 
 interested persons shall be provided 
 with information on--
 (I) time-based electricity 
 prices in the wholesale 
 electricity market; and
 (II) time-based electricity 
 retail prices or rates that are 
 available to the purchasers.
 (ii) Usage.--Purchasers shall be 
 provided with the number of electricity 
 units, expressed in kwh, purchased by 
 them.
 (iii) Intervals and projections.--
 Updates of information on prices and 
 usage shall be offered on not less than 
 a daily basis, shall include hourly 
 price and use information, where 
 available, and shall include a day-
 ahead projection of such price 
 information to the extent available.
 (iv) Sources.--Purchasers and other 
 interested persons shall be provided 
 annually with written information on 
 the sources of the power provided by 
 the utility, to the extent it can be 
 determined, by type of generation, 
 including greenhouse gas emissions 
 associated with each type of 
 generation, for intervals during which 
 such information is available on a 
 cost-effective basis.
 (C) Access.--Purchasers shall be able to 
 access their own information at any time 
 through the Internet and on other means of 
 communication elected by that utility for Smart 
 Grid applications. Other interested persons 
 shall be able to access information not 
 specific to any purchaser through the Internet. 
 Information specific to any purchaser shall be 
 provided solely to that purchaser.
 (20) Demand-response practices.--
 (A) In general.--Each electric utility shall 
 promote the use of demand-response and demand 
 flexibility practices by commercial, 
 residential, and industrial consumers to reduce 
 electricity consumption during periods of 
 unusually high demand.
 (B) Rate recovery.--
 (i) In general.--Each State 
 regulatory authority shall consider 
 establishing rate mechanisms allowing 
 an electric utility with respect to 
 which the State regulatory authority 
 has ratemaking authority to timely 
 recover the costs of promoting demand-
 response and demand flexibility 
 practices in accordance with 
 subparagraph (A).
 (ii) Nonregulated electric 
 utilities.--A nonregulated electric 
 utility may establish rate mechanisms 
 for the timely recovery of the costs of 
 promoting demand-response and demand 
 flexibility practices in accordance 
 with subparagraph (A).
 (21) Electric vehicle charging programs.--Each State 
 shall consider measures to promote greater 
 electrification of the transportation sector, including 
 the establishment of rates that--
 (A) promote affordable and equitable electric 
 vehicle charging options for residential, 
 commercial, and public electric vehicle 
 charging infrastructure;
 (B) improve the customer experience 
 associated with electric vehicle charging, 
 including by reducing charging times for light-
 , medium-, and heavy-duty vehicles;
 (C) accelerate third-party investment in 
 electric vehicle charging for light-, medium-, 
 and heavy-duty vehicles; and
 (D) appropriately recover the marginal costs 
 of delivering electricity to electric vehicles 
 and electric vehicle charging infrastructure.
 (22) Electric load forecasting.--The procedures used 
 to forecast electric loads shall incorporate the 
 recommendations published in the report of the Federal 
 Energy Regulatory Commission pursuant to the Load 
 Forecasting Enhancement Act.
 (e) Consideration and Determination by Nonregulated Electric 
Utilities.--The requirement for consideration and determination 
referred to in the first sentence of subsection (a) shall not 
apply to a nonregulated electric utility with respect to the 
standard established by paragraph (22) of subsection (d).

SEC. 112. OBLIGATIONS TO CONSIDER AND DETERMINE.

 (a) Request for Consideration and Determination.--Each State 
regulatory authority (with respect to each electric utility for 
which it has ratemaking authority) and each nonregulated 
electric utility may undertake the consideration and make the 
determination referred to in section 111 with respect to any 
standard established by section 111(d) in any proceeding 
respecting the rates of the electric utility. Any participant 
or intervenor (including an intervenor referred to in section 
121) in such a proceeding may request, and shall obtain, such 
consideration and determination in such proceeding. In 
undertaking such consideration and making such determination in 
any such proceeding with respect to the application to any 
electric utility of any standard established by section 111(d), 
a State regulatory authority (with respect to an electric 
utility for which it has ratemaking authority) or nonregulated 
electric utility may take into account in such proceeding--
 (1) any appropriate prior determination with respect 
 to such standard--
 (A) which is made in a proceeding which takes 
 place after the date of the enactment of this 
 Act, or
 (B) which was made before such date (or is 
 made in a proceeding pending on such date) and 
 complies, as provided in section 124, with the 
 requirements of this title; and
 (2) the evidence upon which such prior determination 
 was based (if such evidence is referenced in such 
 proceeding).
 (b) Time Limitations.--(1) Not later than 2 years after the 
date of the enactment of this Act (or after the enactment of 
the Comprehensive National Energy Policy Act in the case of 
standards under paragraphs (7), (8), and (9) of section 
111(d)), each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) and 
each nonregulated electric utility shall commence the 
consideration referred to in section 111, or set a hearing date 
for such consideration, with respect to each standard 
established by section 111(d).
 (2) Not later than three years after the date of the 
enactment of this Act (or after the enactment of the 
Comprehensive National Energy Policy Act in the case of 
standards under paragraphs (7), (8), and (9) of section 
111(d)), each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority), and 
each nonregulated electric utility, shall complete the 
consideration, and shall make the determination, referred to in 
section 111 with respect to each standard established by 
section 111(d).
 (3)(A) Not later than 2 years after the enactment of this 
paragraph, each State regulatory authority (with respect to 
each electric utility for which it has ratemaking authority) 
and each nonregulated electric utility shall commence the 
consideration referred to in section 111, or set a hearing date 
for such consideration, with respect to each standard 
established by paragraphs (11) through (13) of section 111(d).
 (B) Not later than 3 years after the date of the enactment of 
this paragraph, each State regulatory authority (with respect 
to each electric utility for which it has ratemaking 
authority), and each nonregulated electric utility, shall 
complete the consideration, and shall make the determination, 
referred to in section 111 with respect to each standard 
established by paragraphs (11) through (13) of section 111(d).
 (4)(A) Not later than 1 year after the enactment of 
 this paragraph, each State regulatory authority (with 
 respect to each electric utility for which it has 
 ratemaking authority) and each nonregulated electric 
 utility shall commence the consideration referred to in 
 section 111, or set a hearing date for such 
 consideration, with respect to the standard established 
 by paragraph (14) of section 111(d).
 (B) Not later than 2 years after the date of the 
 enactment of this paragraph, each State regulatory 
 authority (with respect to each electric utility for 
 which it has ratemaking authority), and each 
 nonregulated electric utility, shall complete the 
 consideration, and shall make the determination, 
 referred to in section 111 with respect to the standard 
 established by paragraph (14) of section 111(d).
 (5)(A) Not later than 1 year after the enactment of 
 this paragraph, each State regulatory authority (with 
 respect to each electric utility for which it has 
 ratemaking authority) and each nonregulated utility 
 shall commence the consideration referred to in section 
 111, or set a hearing date for consideration, with 
 respect to the standard established by paragraph (15) 
 of section 111(d).
 (B) Not later than two years after the date of the 
 enactment of the this paragraph, each State regulatory 
 authority (with respect to each electric utility for 
 which it has ratemaking authority), and each 
 nonregulated electric utility, shall complete the 
 consideration, and shall make the determination, 
 referred to in section 111 with respect to each 
 standard established by paragraph (15) of section 
 111(d).
 (6)(A) Not later than 1 year after the enactment of 
 this paragraph, each State regulatory authority (with 
 respect to each electric utility for which it has 
 ratemaking authority) and each nonregulated utility 
 shall commence the consideration referred to in section 
 111, or set a hearing date for consideration, with 
 respect to the standards established by paragraphs (16) 
 through (19) of section 111(d).
 (B) Not later than 2 years after the date of the 
 enactment of this paragraph, each State regulatory 
 authority (with respect to each electric utility for 
 which it has ratemaking authority), and each 
 nonregulated electric utility, shall complete the 
 consideration, and shall make the determination, 
 referred to in section 111 with respect to each 
 standard established by paragraphs (16) through (19) of 
 section 111(d).
 (7)(A) Not later than 1 year after the date of 
 enactment of this paragraph, each State regulatory 
 authority (with respect to each electric utility for 
 which the State has ratemaking authority) and each 
 nonregulated electric utility shall commence 
 consideration under section 111, or set a hearing date 
 for consideration, with respect to the standard 
 established by paragraph (20) of section 111(d).
 (B) Not later than 2 years after the date of 
 enactment of this paragraph, each State regulatory 
 authority (with respect to each electric utility for 
 which the State has ratemaking authority), and each 
 nonregulated electric utility shall complete the 
 consideration and make the determination under section 
 111 with respect to the standard established by 
 paragraph (20) of section 111(d).
 (8)(A) Not later than 1 year after the date of 
 enactment of this paragraph, each State regulatory 
 authority (with respect to each electric utility for 
 which the State has ratemaking authority) and each 
 nonregulated utility shall commence consideration under 
 section 111, or set a hearing date for consideration, 
 with respect to the standard established by paragraph 
 (21) of section 111(d).
 (B) Not later than 2 years after the date of 
 enactment of this paragraph, each State 
 regulatory authority (with respect to each 
 electric utility for which the State has 
 ratemaking authority), and each nonregulated 
 electric utility shall complete the 
 consideration and make the determination under 
 section 111 with respect to the standard 
 established by paragraph (21) of section 
 111(d).
 (9)(A) Not later than 1 year after the date of 
 enactment of this paragraph, each State regulatory 
 authority (with respect to each electric utility for 
 which the State has ratemaking authority) shall 
 commence consideration under section 111, or set a 
 hearing date for consideration, with respect to the 
 standard established by paragraph (22) of section 
 111(d).
 (B) Not later than 2 years after the date of 
 enactment of this paragraph, each State regulatory 
 authority (with respect to each electric utility for 
 which the State has ratemaking authority) shall 
 complete the consideration and make the determination 
 under section 111 with respect to the standard 
 established by paragraph (22) of section 111(d).
 (c) Failure To Comply.--Each State regulatory authority (with 
respect to each electric utility for which it has ratemaking 
authority) and each nonregulated electric utility shall 
undertake the consideration, and make the determination, 
referred to in section 111 with respect to each standard 
established by section 111(d) in the first rate proceeding 
commenced after the date three years after the date of 
enactment of this Act respecting the rates of such utility if 
such State regulatory authority or nonregulated electric 
utility has not, before such date, complied with [subsection 
(b)(2)] subsection (b) with respect to such standard. In the 
case of each standard established by paragraphs (11) through 
(13) of section 111(d), the reference contained in this 
subsection to the date of enactment of this Act shall be deemed 
to be a reference to the date of enactment of such paragraphs 
(11) through (13). In the case of the standard established by 
paragraph (14) of section 111(d), the reference contained in 
this subsection to the date of enactment of this Act shall be 
deemed to be a reference to the date of enactment of such 
paragraph (14). In the case of the standard established by 
paragraph (15) of section 111(d), the reference contained in 
this subsection to the date of enactment of this Act shall be 
deemed to be a reference to the date of enactment of that 
paragraph (15). In the case of the standards established by 
paragraphs (16) through (19) of section 111(d), the reference 
contained in this subsection to the date of enactment of this 
Act shall be deemed to be a reference to the date of enactment 
of such paragraphs. In the case of the standard established by 
paragraph (20) of section 111(d), the reference contained in 
this subsection to the date of enactment of this Act shall be 
deemed to be a reference to the date of enactment of that 
paragraph (20). In the case of the standard established by 
paragraph (21) of section 111(d), the reference contained in 
this subsection to the date of enactment of this Act shall be 
deemed to be a reference to the date of enactment of that 
paragraph (21). In the case of the standard established by 
paragraph (22) of section 111(d), the reference contained in 
this subsection to the date of enactment of this Act shall be 
deemed to be a reference to the date of enactment of that 
paragraph (22).
 (d) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standards established by 
paragraphs (11) through (13) and paragraphs (16) through (19) 
of section 111(d) in the case of any electric utility in a 
State if, before the enactment of this subsection--
 (1) the State has implemented for such utility the 
 standard concerned (or a comparable standard);
 (2) the State regulatory authority for such State or 
 relevant nonregulated electric utility has conducted a 
 proceeding to consider implementation of the standard 
 concerned (or a comparable standard) for such utility; 
 or
 (3) the State legislature has voted on the 
 implementation of such standard (or a comparable 
 standard) for such utility.
 (e) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standard established by 
paragraph (14) of section 111(d) in the case of any electric 
utility in a State if, before the enactment of this 
subsection--
 (1) the State has implemented for such utility the 
 standard concerned (or a comparable standard);
 (2) the State regulatory authority for such State or 
 relevant nonregulated electric utility has conducted a 
 proceeding to consider implementation of the standard 
 concerned (or a comparable standard) for such utility 
 within the previous 3 years; or
 (3) the State legislature has voted on the 
 implementation of such standard (or a comparable 
 standard) for such utility within the previous 3 years.
 (f) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standard established by 
paragraph (15) of section 111(d) in the case of any electric 
utility in a State if, before the enactment of this 
subsection--
 (1) the State has implemented for such utility the 
 standard concerned (or a comparable standard);
 (2) the State regulatory authority for such State or 
 relevant nonregulated electric utility has conducted a 
 proceeding to consider implementation of the standard 
 concerned (or a comparable standard) for such utility; 
 or
 (3) the State legislature has voted on the 
 implementation of such standard (or a comparable 
 standard) for such utility.
 (g) Prior State Actions.--Subsections (b) and (c) shall not 
apply to the standard established by paragraph (20) of section 
111(d) in the case of any electric utility in a State if, 
before the date of enactment of this subsection--
 (1) the State has implemented for the electric 
 utility the standard (or a comparable standard);
 (2) the State regulatory authority for the State or 
 the relevant nonregulated electric utility has 
 conducted a proceeding to consider implementation of 
 the standard (or a comparable standard) for the 
 electric utility; or
 (3) the State legislature has voted on the 
 implementation of the standard (or a comparable 
 standard) for the electric utility.
 (h) Other Prior State Actions.--Subsections (b) and (c) shall 
not apply to the standard established by paragraph (21) of 
section 111(d) in the case of any electric utility in a State 
if, before the date of enactment of this subsection--
 (1) the State has implemented for the electric 
 utility the standard (or a comparable standard);
 (2) the State regulatory authority for the State or 
 the relevant nonregulated electric utility has 
 conducted a proceeding to consider implementation of 
 the standard (or a comparable standard) for the 
 electric utility; or
 (3) the State legislature has voted on the 
 implementation of the standard (or a comparable 
 standard) for the electric utility during the 3-year 
 period ending on that date of enactment.
 (i) Other Prior State Actions.--Subsections (b) and (c) shall 
not apply to the standard established by paragraph (22) of 
section 111(d) in the case of any electric utility in a State 
if, before the date of enactment of this subsection--
 (1) the State has implemented for the electric 
 utility the standard (or a comparable standard);
 (2) the State regulatory authority for the State has 
 conducted a proceeding to consider implementation of 
 the standard (or a comparable standard) for the 
 electric utility; or
 (3) the State legislature has voted on the 
 implementation of the standard (or a comparable 
 standard) for the electric utility during the 3-year 
 period ending on that date of enactment.

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 Subtitle C--Intervention and Judicial Review

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SEC. 124. PRIOR AND PENDING PROCEEDINGS.

 For purposes of subtitle A and B, and this subtitle, 
proceedings commenced by State regulatory authorities (with 
respect to electric utilities for which it has ratemaking 
authority) and nonregulated electric utilities before the date 
of the enactment of this Act and actions taken before such date 
in such proceedings shall be treated as complying with the 
requirements of subtitles A and B, and this subtitle if such 
proceedings and actions, substantially conform to such 
requirements. For purposes of subtitles A and B, and this 
subtitle, any such proceeding or action commenced before the 
date of enactment of this Act, but not completed before such 
date, shall comply with the requirements of subtitles A and B, 
and this subtitle, to the maximum extent practicable, with 
respect to so much of such proceeding or action as takes place 
after such date, except as otherwise provided in section 
121(c). In the case of each standard established by paragraphs 
(11) through (13) of section 111(d), the reference contained in 
this section to the date of enactment of this Act shall be 
deemed to be a reference to the date of enactment of such 
paragraphs (11) through (13). In the case of the standard 
established by paragraph (14) of section 111(d), the reference 
contained in this section to the date of enactment of this Act 
shall be deemed to be a reference to the date of enactment of 
such paragraph (14). In the case of each standard established 
by paragraph (15) of section 111(d), the reference contained in 
this section to the date of enactment of the Act shall be 
deemed to be a reference to the date of enactment of paragraph 
(15). In the case of the standard established by paragraph (20) 
of section 111(d), the reference contained in this section to 
the date of enactment of this Act shall be deemed to be a 
reference to the date of enactment of that paragraph (20).In 
the case of the standard established by paragraph (21) of 
section 111(d), the reference contained in this section to the 
date of enactment of this Act shall be deemed to be a reference 
to the date of enactment of that paragraph (21). In the case of 
the standard established by paragraph (22) of section 111(d), 
the reference contained in this section to the date of 
enactment of this Act shall be deemed to be a reference to the 
date of enactment of paragraph (22).

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 ---------- 

 ENERGY POLICY AND CONSERVATION ACT

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 TITLE III--IMPROVING ENERGY EFFICIENCY

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 Part D--State Energy Conservation Plans

 * * * * * * *

 state energy conservation plans

 Sec. 362. (a) The Secretary shall, by rule, within 60 days 
after the date of enactment of this Act, prescribe guidelines 
for the preparation of a State energy conservation feasibility 
report. The Secretary shall invite the Governor of each State 
to submit, within 3 months after the effective date of such 
guidelines, such a report. Such report shall include--
 (1) an assessment of the feasibility of establishing 
 a State energy conservation goal, which goal shall 
 consist of a reduction, as a result of the 
 implementation of the State energy conservation plan 
 described in this section, of 5 percent or more in the 
 total amount of energy consumed in such State in the 
 year 1980 from the projected energy consumption for 
 such State in the year 1980, and
 (2) a proposal by such State for the development of a 
 State energy conservation plan to achieve such goal.
 (b) The Secretary shall, by rule, within 6 months after the 
date of enactment of this Act, prescribe guidelines with 
respect to measures required to be included in, and guidelines 
for the development, modification, and funding of, State energy 
conservation plans. The Secretary shall invite the Governor of 
each State to submit, within 5 months after the effective date 
of such guidelines, a report. Such report shall include--
 (1) a proposed State energy conservation plan 
 designed to result in scheduled progress toward, and 
 achievement of, the State energy conservation goal of 
 such State; and
 (2) a detailed description of the requirements, 
 including the estimated cost of implementation and the 
 estimated energy savings, associated with each 
 functional category of energy conservation included in 
 the State energy conservation plan.
 (c) Each proposed State energy conservation plan to be 
eligible for Federal assistance under this part shall include--
 (1) mandatory lighting efficiency standards for 
 public buildings (except public buildings owned or 
 leased by the United States);
 (2) programs to promote the availability and use of 
 carpools, vanpools, and public transportation (except 
 that no Federal funds provided under this part shall be 
 used for subsidizing fares for public transportation);
 (3) mandatory standards and policies relating to 
 energy efficiency to govern the procurement practices 
 of such State and its political subdivisions;
 (4) mandatory thermal efficiency standards and 
 insulation requirements for new and renovated buildings 
 (except buildings owned or leased by the United 
 States);
 (5) a traffic law or regulation which, to the maximum 
 extent practicable consistent with safety, permits the 
 operator of a motor vehicle to turn such vehicle right 
 at a red stop light after stopping and to turn such 
 vehicle left from a one-way street onto a one-way 
 street at a red light after stopping;
 (6) procedures for ensuring effective coordination 
 among various local, State, and Federal energy 
 conservation programs within the State, including any 
 program administered within the Office of Technical and 
 Financial Assistance of the Department of Energy and 
 the Low Income Home Energy Assistance Program 
 administered by the Department of Health and Human 
 Services; [and]
 (7) the mandatory conduct of activities to support 
 transmission and distribution planning, including--
 (A) support for local governments and Indian 
 Tribes;
 (B) feasibility studies for transmission line 
 routes and alternatives;
 (C) preparation of necessary project design 
 and permits; and
 (D) outreach to affected stakeholders[.]; and
 (8) procedures and programs to improve the accuracy, 
 oversight, and transparency to stakeholders of the 
 forecasting of electric loads by electric utilities (as 
 such term is defined in section 3 of the Federal Power 
 Act (16 U.S.C. 796)).
 (d) Each proposed State energy conservation plan may 
include--
 (1) restrictions governing the hours and conditions 
 of operations of public buildings (except buildings 
 owned or leased by the United States);
 (2) restrictions on the use of decorative or 
 nonessential lighting;
 (3) programs to increase transportation energy 
 efficiency, including programs to help reduce carbon 
 emissions in the transportation sector by 2050 and 
 accelerate the use of alternative transportation fuels 
 for, and the electrification of, State government 
 vehicles, fleet vehicles, taxis and ridesharing 
 services, mass transit, school buses, ferries, and 
 privately owned passenger and medium- and heavy-duty 
 vehicles;
 (4) programs of public education to promote energy 
 conservation;
 (5) programs for financing energy efficiency and 
 renewable energy capital investments, projects, and 
 programs--
 (A) which may include loan programs and 
 performance contracting programs for leveraging 
 of additional public and private sector funds, 
 and programs which allow rebates, grants, or 
 other incentives for the purchase and 
 installation of energy efficiency and renewable 
 energy measures; or
 (B) in addition to or in lieu of programs 
 described in subparagraph (A), which may be 
 used in connection with public or nonprofit 
 buildings owned and operated by a State, a 
 political subdivision of a State or an agency 
 or instrumentality of a State, or an 
 organization exempt from taxation under section 
 501(c)(3) of the Internal Revenue Code of 1986;
 (6) programs for encouraging and for carrying out 
 energy audits with respect to buildings and industrial 
 facilities (including industrial processes) within the 
 State;
 (7) programs to promote the adoption of integrated 
 energy plans which provide for--
 (A) periodic evaluation of a State's energy 
 needs, available energy resources (including 
 greater energy efficiency), and energy costs; 
 and
 (B) utilization of adequate and reliable 
 energy supplies, including greater energy 
 efficiency, that meet applicable safety, 
 environmental, and policy requirements at the 
 lowest cost;
 (8) programs to promote energy efficiency in 
 residential housing, such as--
 (A) programs for development and promotion of 
 energy efficiency rating systems for newly 
 constructed housing and existing housing so 
 that consumers can compare the energy 
 efficiency of different housing; and
 (B) programs for the adoption of incentives 
 for builders, utilities, and mortgage lenders 
 to build, service, or finance energy efficient 
 housing;
 (9) programs to identify unfair or deceptive acts or 
 practices which relate to the implementation of energy 
 efficiency measures and renewable resource energy 
 measures and to educate consumers concerning such acts 
 or practices;
 (10) programs to modify patterns of energy 
 consumption so as to reduce peak demands for energy and 
 improve the efficiency of energy supply systems, 
 including electricity supply systems;
 (11) programs to promote energy efficiency as an 
 integral component of economic development planning 
 conducted by State, local, or other governmental 
 entities or by energy utilities;
 (12) in accordance with subsection (f)(2), programs 
 to implement the Energy Technology Commercialization 
 Services Program;
 (13) programs (enlisting appropriate trade and 
 professional organizations in the development and 
 financing of such programs) to provide training and 
 education (including, if appropriate, training 
 workshops, practice manuals, and testing for each area 
 of energy efficiency technology) to building designers 
 and contractors involved in building design and 
 construction or in the sale, installation, and 
 maintenance of energy systems and equipment to promote 
 building energy efficiency improvements;
 (14) programs for the development of building 
 retrofit standards and regulations, including retrofit 
 ordinances enforced at the time of the sale of a 
 building;
 (15) support for prefeasibility and feasibility 
 studies for projects that utilize renewable energy and 
 energy efficiency resource technologies in order to 
 facilitate access to capital and credit for such 
 projects;
 (16) programs to facilitate and encourage the 
 voluntary use of renewable energy technologies for 
 eligible participants in Federal agency programs, 
 including the Rural Electrification Administration and 
 the Farmers Home Administration;
 (17) programs that promote the installation and use 
 of demand-response technology and demand-response 
 practices; and
 (18) any other appropriate method or programs to 
 conserve and to promote efficiency in the use of 
 energy.
 (e) The Governor of any State may submit to the Secretary a 
State energy conservation plan which is a standby energy 
conservation plan to significantly reduce energy demand by 
regulating the public and private consumption of energy during 
a severe energy supply interruption, which plan may be 
separately eligible for Federal assistance under this part 
without regard to subsections (c) and (d) of this section.
 (f)(1) The purposes of this subsection are to--
 (A) strengthen State outreach programs to aid small 
 and start-up businesses;
 (B) foster a broader application of engineering 
 principles and techniques to energy technology 
 products, manufacturing, and commercial production by 
 small and start-up businesses; and
 (C) foster greater assistance to small and start-up 
 businesses in dealing with the Federal Government on 
 energy technology related matters.
 (2) The programs to implement the functions of the Energy 
Technology Commercialization Services Program, as provided for 
by subsection (d)(12), shall--
 (A) aid small and start-up businesses in discovering 
 useful and practical information relating to 
 manufacturing and commercial production techniques and 
 costs associated with new energy technologies;
 (B) encourage the application of such information in 
 order to solve energy technology product development 
 and manufacturing problems;
 (C) establish an Energy Technology Commercialization 
 Services Program affiliated with an existing entity in 
 each State;
 (D) coordinate engineers and manufacturers to aid 
 small and start-up businesses in solving specific 
 technical problems and improving the cost effectiveness 
 of methods for manufacturing new energy technologies;
 (E) assist small and start-up businesses in preparing 
 the technical portions of proposals seeking financial 
 assistance for new energy technology commercialization; 
 and
 (F) facilitate contract research between university 
 faculty and students and small start-up businesses, in 
 order to improve energy technology product development 
 and independent quality control testing.
 (3) Each State energy technology commercialization services 
program shall develop and maintain a data base of engineering 
and scientific experts in energy technologies and product 
commercialization interested in participating in the service. 
Such data base shall, at a minimum, include faculty of 
institutions of higher education, retired manufacturing 
experts, and national laboratory personnel.
 (4) The services provided by the energy technology 
commercialization services programs established under this 
subsection shall be available to any small or start-up 
business. Such service programs shall charge fees which are 
affordable to a party eligible for assistance, which shall be 
determined by examining factors, including the following: (A) 
the costs of the services received; (B) the need of the 
recipient for the services; and (C) the ability of the 
recipient to pay for the services.
 (5) For the purposes of this subsection, the term--
 (A) ``institution of higher education'' has the same 
 meaning as such term is defined in section 101 of the 
 Higher Education Act of 1965;
 (B) ``small business'' means a private firm that does 
 not exceed the numerical size standard promulgated by 
 the Small Business Administration under section 3(a) of 
 the Small Business Act (15 U.S.C. 632) for the Standard 
 Industrial Classification (SIC) codes designated by the 
 Secretary of Energy; and
 (C) ``start-up business'' means a small business 
 which has been in existence for 5 years or less.
 (g) The Secretary shall, at least once every 3 years, invite 
the Governor of each State to review and, if necessary, revise 
the energy conservation plan of such State submitted under 
subsection (b) or (e). Such reviews should consider the energy 
conservation plans of other States within the region, and 
identify opportunities and actions carried out in pursuit of 
common energy conservation goals.

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