,i #aafth ,,congress #b;d ,session ,h4 ,r4 #egdb ,,in ,,the ,,house ,,of ,,representatives ,february #c1 #bjbj,mr4 ,casten of ,illinois 7for himself1 ,mr4 ,levin of ,california1 ,mr4 ,huffman1 and ,mr4 ,kennedy7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce ,a ,,bill ,to direct the ,federal ,energy ,regulatory ,commission to find that certain rates for electricity are inherently unjust and unreasonable1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,energy ,prices ,require ,including ,climate ,externalities ,act or as the ,energy ,,price ,act4 #b4 ,purpose ,the purpose of this ,act is to clarify the intent of ,congress when passing the ,federal ,power ,act and to provide direction to the ,federal ,energy ,regulatory ,commission with respect to wholesale electricity rates4 #c4 ,findings ,congress makes the following findings3 7#a7 ,when passing the ,federal ,power ,act1 ,congress required the ,federal ,energy ,regulatory ,commission 7the ,commission7 to ensure that the rates charged by electric utilities for1 or in connection with1 wholesale electricity rates are just and reasonable1 a process which necessarily includes the evaluation of all factors affecting wholesale market rates1 including environmental externalities4 7#b7 ,the ,federal ,power ,act requires the ,commission to ensure that public utilities do not grant undue preference or advantage to1 or discriminate against1 any person when making wholesale electricity sales4 7#c7 ,section #bjf7;a7 of the ,federal ,power ,act authorizes the ,commission to change any rates that the ,commission determines to be unjust1 unreasonable1 unduly discriminatory or preferential4 7#d7 ,in its final rule titled ,endangerment and ,cause or ,contribute ,findings for ,greenhouse ,gases ,under ,section #bjb7;a7 of the ,clean ,air ,act published on ,december #ae1 #bjji 7#gd ,fed4 ,reg4 #ffdif71 the ,environmental ,protection ,agency found that the emissions of greenhouse gases endanger both the public health and the public welfare of current and future generations4 7#e7 ,the failure of markets to internalize the costs of greenhouse gas pollution into the cost of products1 including electricity1 led to a misallocation of capital1 and therefore to the emission of a greater volume of these pollutants4 7#f7 ,in #aief1 the ,supreme ,court held in ,federal ,power ,commission v4 ,sierra ,pacific ,power ,company1 #cej ,u4,s4 #cdh 7#aief71 that the ,commission must ensure protection of the public interest when exercising its authority to set just and reasonable rates4 7#g7 ,the restructuring of the electricity industry in the ,federal ,power ,act was intended to promote competition among electricity providers1 resulting in lower electricity rates to consumers1 higher quality services1 and a more robust national economy4 7#h7 ,prior to restructuring1 utility commissions were frequently asked to consider other societal benefits when setting rates1 including access to energy1 rate equity between different classes of customers1 and environmental concerns4 7#i7 ,according to the ,environmental ,protection ,agency1 in #bjag1 emissions from the power sector contributed the second highest share of greenhouse gas emissions by economic sector4 7#aj7 ,the benefits of competition will not be achieved if some competitors enjoy an advantage resulting from externalization of environmental costs1 permitting them to charge prices for electricity that do not reflect the full economic and environmental cost of production4 7#aa7 ,despite the ,environmental ,protection ,agency's finding of endangerment1 emissions of greenhouse gases into the air1 which endanger public health and threaten the quality of the air1 land1 and water of the ,united ,states1 are externalities that are not frequently or uniformly reflected in the price charged for products such as electricity across the ,united ,states4 7#ab7 ,the disparity in regulatory treatment between electric generating units with above-average greenhouse gas emissions and those with little to no greenhouse gas emissions provides a significant competitive advantage for high greenhouse gas emitting energy generating units over their competitors4 7#ac7 ,states and ,state commissions should be encouraged to incorporate the cost of greenhouse gas emissions into wholesale rates for electricity4 #d4 ,certain rates unjust1 unreasonable1 unduly discriminatory1 or preferential 7a7 ,in general ,for the purposes of section #bje and section #bjf of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbd;d1 #hbd;e71 if the ,federal ,energy ,regulatory ,commission determines that a rate for the wholesale sale of electricity does not incorporate the cost of externalized greenhouse gas emissions to public health1 safety1 or welfare1 then the ,federal ,energy ,regulatory ,commission shall find that such rate is unjust1 unreasonable1 unduly discriminatory1 or preferential4 7b7 ,greenhouse gas defined ,in this subsection1 the term greenhouse gas includes-- 7#a7 any gas identified by the ,environmental ,protection ,agency in the final rule titled ,endangerment and ,cause or ,contribute ,findings for ,greenhouse ,gases ,under ,section #bjb7;a7 of the ,clean ,air ,act published on ,december #ae1 #bjji 7#gd ,fed4 ,reg4 #ffdif71 including carbon dioxide1 hydrofluorocarbons1 methane1 nitrous oxide1 perfluorocarbons1 and sulfur hexafluoride2 and 7#b7 nitrogen trifluoride4 7c7 ,rule of construction ,nothing in this section may be construed to affect or modify the existing authorities of the ,federal ,energy ,regulatory ,commission4