,,ii #aadth ,,congress #ast ,session ,s4 #ajfc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #bb1 #bjae,mr4 ,franken introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to amend title ,,vi of the ,public ,utility ,regulatory ,policies ,act of #aigh to establish a ,federal energy efficiency resource standard for electricity and natural gas suppliers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,american ,energy ,efficiency ,act4 #b4 ,energy efficiency resource standard for retail electricity and natural gas suppliers 7a7 ,in general ,title ,,vi of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfja et seq47 is amended by adding at the end the following3 #faj4 ,federal energy efficiency resource standard for retail electricity and natural gas suppliers 7a7 ,definitions ,in this section3 7#a7 ,base quantity 7,a7 ,in general ,the term base quantity1 with respect to a retail electricity supplier or retail natural gas supplier1 means1 for each calendar year for which a performance standard is established under subsection 7c71 the average annual quantity of electricity or natural gas delivered by the retail electricity supplier or retail natural gas supplier to retail customers during the #c calendar years immediately preceding the first year that compliance is required under subsection 7c77#a74 7,b7 ,exclusion ,the term base quantity1 with respect to a retail natural gas supplier1 does not include natural gas delivered for purposes of electricity generation4 7#b7 ,customer facility savings ,the term customer facility savings means a reduction in end-use electricity or natural gas consumption 7including waste heat energy savings7 at a facility of an end-use consumer of electricity or natural gas served by a retail electricity supplier or natural gas supplier1 as compared to-- 7,a7 in the case of a new facility1 consumption at a reference facility of average efficiency2 7,b7 in the case of an existing facility1 consumption at the facility during a base period of not less than #a year2 7,c7 in the case of new equipment that replaces existing equipment at the end of the useful life of the existing equipment1 consumption by new equipment of average efficiency of the same equipment type1 except that customer savings under this subparagraph shall not be counted towards customer savings under subparagraph 7,a7 or 7,b72 and 7,d7 in the case of new equipment that replaces existing equipment with remaining useful life-- 7i7 consumption of the existing equipment for the remaining useful life of the equipment2 and 7ii7 thereafter1 consumption of new equipment of average efficiency4 7#c7 ,electricity savings ,the term electricity savings means reductions in electricity consumption achieved through measures implemented after the date of enactment of this section1 as determined in accordance with regulations promulgated by the ,secretary1 that are limited to-- 7,a7 customer facility savings of electricity1 adjusted to reflect any associated increase in fuel consumption at the facility2 7,b7 reductions in distribution system losses of electricity achieved by a retail electricity supplier1 as compared to losses attributable to new or replacement distribution system equipment of average efficiency1 as defined in regulations promulgated by the ,secretary2 7,c7 ,,chp savings2 7,d7 codes and standards savings of electricity2 and 7,e7 fuel switching energy savings that results in net savings of electricity4 7#d7 ,natural gas savings ,the term natural gas savings means reductions in natural gas consumption from measures implemented after the date of enactment of this section1 as determined in accordance with regulations promulgated by the ,secretary1 that are limited to-- 7,a7 customer facility savings of natural gas1 adjusted to reflect any associated increase in electricity consumption or consumption of other fuels at the facility2 7,b7 reductions in leakage1 operational losses1 and consumption of natural gas fuel to operate a gas distribution system1 achieved by a retail natural gas supplier1 as compared to similar leakage1 losses1 and consumption during a base period of not less than #a year2 7,c7 codes and standards savings of natural gas2 and 7,d7 fuel switching energy savings that results in net savings of natural gas4 7#e7 ,retail electricity supplier 7,a7 ,in general ,the term retail electricity supplier means1 for any given calendar year1 an electric utility that sells not less than #a1jjj1jjj megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year4 7,b7 ,inclusions and limitations ,for purposes of determining whether an electric utility qualifies as a retail electricity supplier under subparagraph 7,a7-- 7i7 deliveries by any affiliate of an electric utility to electric consumers for purposes other than resale shall be considered to be deliveries by the electric utility2 and 7ii7 deliveries by any electric utility to a lessee1 tenant1 or affiliate of the electric utility shall not be considered to be deliveries to electric consumers4 7#f7 ,retail natural gas supplier 7,a7 ,in general ,the term retail natural gas supplier means1 for any given calendar year1 a local distribution company 7as defined in section #b of the ,natural ,gas ,policy ,act of #aigh 7#ae ,u4,s4,c4 #ccja771 that delivered to natural gas consumers more than #e1jjj1jjj1jjj cubic feet of natural gas for purposes other than resale during the preceding calendar year4 7,b7 ,inclusions and limitations ,for purposes of determining whether a person qualifies as a retail natural gas supplier under subparagraph 7,a7-- 7i7 deliveries of natural gas by any affiliate of a local distribution company to consumers for purposes other than resale shall be considered to be deliveries by the local distribution company2 and 7ii7 deliveries of natural gas to a lessee1 tenant1 or affiliate of a local distribution company shall not be considered to be deliveries to natural gas consumers4 7b7 ,establishment of program 7#a7 ,regulations ,not later than #a year after the date of enactment of this section1 the ,secretary shall1 by regulation1 establish a program to implement and enforce the requirements of this section1 including by-- 7,a7 defining the terms ,,chp savings1 code and standards savings1 combined heat and power system1 cost-effective1 fuel switching energy savings1 reporting period1 third-party efficiency provider1 and waste heat energy savings2 7,b7 establishing measurement and verification procedures and standards that count only measures and savings that are additional to business-as-usual customer purchase practices2 7,c7 establishing requirements under which retail electricity suppliers and retail natural gas suppliers shall-- 7i7 demonstrate1 document1 and report the compliance of the retail electricity suppliers and retail natural gas suppliers with the performance standards under subsection 7c72 and 7ii7 estimate the impact of the standards on current and future electricity and natural gas use in the service territories of the suppliers2 7,d7 establishing requirements governing applications for1 and implementation of1 delegated ,state administration under subsection 7e72 and 7,e7 establishing rules to govern transfers of electricity or natural gas savings between suppliers and third-party efficiency providers serving the same ,state and between suppliers and third-party efficiency providers serving different ,states4 7#b7 ,coordination with ,state programs ,in establishing and implementing this section1 the ,secretary shall1 to the maximum extent practicable1 preserve the integrity and incorporate best practices of existing ,state energy efficiency programs4 7c7 ,performance standards 7#a7 ,compliance obligation ,not later than ,may #a of the calendar year immediately following each reporting period-- 7,a7 each retail electricity supplier shall submit to the ,secretary a report1 in accordance with regulations promulgated by the ,secretary1 demonstrating that the retail electricity supplier has achieved cumulative electricity savings 7adjusted to account for any attrition of savings measures implemented in prior years7 in each calendar year that are equal to the applicable percentage of the base quantity of the retail electricity supplier2 and 7,b7 each retail natural gas supplier shall submit to the ,secretary a report1 in accordance with regulations promulgated by the ,secretary1 demonstrating that it has achieved cumulative natural gas savings 7adjusted to account for any attrition of savings measures implemented in prior years7 in each calendar year that are equal to the applicable percentage of the base quantity of such retail natural gas supplier4 7#b7 ,standards for #bjag through #bjcj ,for each of calendar years #bjag through #bjcj1 the applicable percentages are as follows3 ,calendar ,year,cumulative ,electricity ,savings ,percentage,cumulative ,natural ,gas ,savings ,percentage#bjag #a4jj #j4ejbjah #b4jj #a4bebjai #c4jj #b4jjbjbj #d4be #c4jjbjba #e4ej #d4jjbjbb #g4jj #e4jjbjbc #h4ej #f4jjbjbdaj4jj #g4jjbjbeaa4ej #h4jjbjbfac4jj #i4jjbjbgad4geaj4jjbjbhaf4ejaa4jjbjbiah4 beab4jjbjcjbj4jjac4jj4 7#c7 ,subsequent years 7,a7 ,calendar years #bjca through #bjdj ,not later than ,december #ca1 #bjbh1 the ,secretary shall promulgate regulations establishing performance standards 7expressed as applicable percentages of base quantity for both cumulative electricity savings and cumulative natural gas savings7 for each of calendar years #bjca through #bjdj4 7,b7 ,requirements ,the ,secretary shall establish standards under this paragraph at levels reflecting the maximum achievable level of cost-effective energy efficiency potential1 taking into account-- 7i7 cost-effective energy savings achieved by leading retail electricity suppliers and retail natural gas suppliers2 7ii7 opportunities for new codes and standard savings2 7iii7 technology improvements2 and 7iv7 other indicators of cost-effective energy efficiency potential including differences between ,states4 7,c7 ,minimum percentage ,in no case shall the applicable percentages for any calendar year be less than the applicable percentages for calendar year #bjcj4 7#d7 ,delay of submission for first reporting period 7,a7 ,in general ,notwithstanding paragraphs 7#a7 and 7#b71 for the #bjag reporting period1 the ,secretary may accept a request from a retail electricity supplier or a retail natural gas supplier to delay the required submission of documentation of all or part of the required savings for up to #b years4 7,b7 ,plan for compliance ,the request for delay under subparagraph 7,a7 shall include a plan for coming into full compliance by the end of the #bjah-bjai reporting period4 7#e7 ,applying unused savings to future years ,if savings achieved in a year exceed the performance standards specified in this subsection1 any savings in excess of the performance standards may be applied toward performance standards specified for future years4 7d7 ,enforcement and judicial review 7#a7 ,review of retail supplier reports 7,a7 ,in general ,the ,secretary shall review each report submitted to the ,secretary by a retail electricity supplier or retail natural gas supplier under subsection 7c7 to verify that the applicable performance standards under subsection 7c7 have been met4 7,b7 ,exclusion ,in determining compliance with the applicable performance standards under subsection 7c71 the ,secretary shall exclude reported electricity savings or natural gas savings that are not adequately demonstrated and documented1 in accordance with the regulations promulgated under subsections 7b7 and 7c74 7#b7 ,penalty for failure to document adequate savings ,if a retail electricity supplier or a retail natural gas supplier fails to demonstrate compliance with an applicable performance standard under subsection 7c71 or to pay to the ,state an applicable alternative compliance payment under subsection 7e77#c71 the ,secretary shall assess against the retail electricity supplier or retail natural gas supplier a civil penalty for each failure in an amount equal to1 as adjusted for inflation in accordance with such regulations as the ,secretary may promulgate-- 7,a7 #ajj per megawatt hour of electricity savings or alternative compliance payment that the retail electricity supplier failed to achieve or make1 respectively2 or 7,b7 #aj per million ,btu of natural gas savings or alternative compliance payment that the retail natural gas supplier failed to achieve or make1 respectively4 7#c7 ,offsetting state penalties ,the ,secretary shall reduce the amount of any penalty under paragraph 7#b7 by the amount paid by the relevant retail electricity supplier or retail natural gas supplier to a ,state for failure to comply with the requirements of a ,state energy efficiency resource standard during the same compliance period4 7#d7 ,enforcement procedures ,the ,secretary shall assess a civil penalty1 as provided under paragraph 7#b71 in accordance with the procedures described in section #ccc7;d7 of the ,energy ,policy and ,conservation ,act of #aied 7#db ,u4,s4,c4 #fcjc74 7e7 ,state administration 7#a7 ,in general ,upon receipt of an application from the ,governor of a ,state 7including the ,mayor of the ,district of ,columbia71 the ,secretary may delegate to the ,state responsibility for administering this section within the territory of the ,state if the ,secretary determines that the ,state will implement an energy efficiency program that meets or exceeds the requirements of this section4 7#b7 ,secretarial determination ,not later than #ahj days after the date on which a complete application is received by the ,secretary1 the ,secretary shall make a substantive determination approving or disapproving a ,state application1 after public notice and comment4 7#c7 ,alternative compliance payments 7,a7 ,in general ,as part of an application submitted under paragraph 7#a71 a ,state may permit retail electricity suppliers or retail natural gas suppliers to pay to the ,state1 by not later than ,may #a of the calendar year immediately following the applicable reporting period1 an alternative compliance payment in an amount equal to1 as adjusted for inflation in accordance with such regulations as the ,secretary may promulgate1 not less than-- 7i7 #ej per megawatt hour of electricity savings needed to make up any deficit with regard to a compliance obligation under the applicable performance standard2 or 7ii7 #e per million ,btu of natural gas savings needed to make up any deficit with regard to a compliance obligation under the applicable performance standard4 7,b7 ,use of payments ,alternative compliance payments collected by a ,state under subparagraph 7,a7 shall be used by the ,state to administer the delegated authority of the ,state under this section and to implement cost-effective energy efficiency programs that-- 7i7 to the maximum extent practicable1 achieve electricity savings and natural gas savings in the ,state sufficient to make up the deficit associated with the alternative compliance payments2 and 7ii7 can be measured and verified in accordance with the applicable procedures and standards under subsection 7b77#a77;,b74 7#d7 ,review of state implementation 7,a7 ,periodic review ,every #b years1 the ,secretary shall review ,state implementation of this section for conformance with the requirements of this section in approximately #a_/b of the ,states that have received approval under this subsection to administer the program1 so that each ,state shall be reviewed at least every #d years4 7,b7 ,report ,to facilitate the review under subparagraph 7,a71 the ,secretary may require the ,state to submit a report demonstrating the conformance of the ,state with the requirements of this section4 7,c7 ,deficiencies 7i7 ,in general ,in completing a review under this paragraph1 if the ,secretary finds deficiencies1 the ,secretary shall-- 7,i7 notify the ,state of the deficiencies2 7,,ii7 direct the ,state to correct the deficiencies2 and 7,,iii7 require the ,state to report to the ,secretary on progress made by not later than #ahj days after the date on which the ,state receives notice under subclause 7,i74 7ii7 ,substantial deficiencies ,if the deficiencies are substantial1 the ,secretary shall-- 7,i7 disallow the reported electricity savings or natural gas savings that the ,secretary determines are not credible due to deficiencies2 7,,ii7 re-review the ,state not later than #b years after the date on which the original review was completed2 and 7,,iii7 if substantial deficiencies remain uncorrected after the review provided for under subclause 7,,ii71 revoke the authority of the ,state to administer the program established under this section4 7f7 ,information and reports ,in accordance with section #ac of the ,federal ,energy ,administration ,act of #aigd 7#ae ,u4,s4,c4 #ggb71 the ,secretary may require any retail electricity supplier1 retail natural gas supplier1 third-party efficiency provider1 or any other entity that the ,secretary determines appropriate1 to provide any information the ,secretary determines appropriate to carry out this section4 7g7 ,state law ,nothing in this section diminishes or qualifies any authority of a ,state or political subdivision of a ,state to adopt or enforce any law or regulation respecting electricity savings or natural gas savings1 including any law or regulation establishing energy efficiency requirements that are more stringent than those under this section1 except that no ,state law or regulation shall relieve any person of any requirement otherwise applicable under this section4 4 7b7 ,conforming amendment ,the table of contents of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 prec4 #bfja7 is amended by adding at the end of the items relating to title ,,vi the following3 ,sec4 #fji4 ,rural and remote communities electrification grants4,sec4 #faj4 ,federal energy efficiency resource standard for retail electricity and natural gas suppliers4 4