,,ii #aafth ,,congress #ast ,session ,s4 #agfj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #aj1 #bjai,mr4 ,barrasso 7for himself1 ,mr4 ,risch1 ,mr4 ,cramer1 and ,mr4 ,daines7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to modernize the ,public ,utility ,regulatory ,policies ,act of #aigh1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,updating ,purchase ,obligations to ,deploy ,affordable ,resources to ,energy ,markets ,under ,,purpa ,act or the ,,update ,,purpa ,act4 #b4 ,amendments to ,,purpa 7a7 ,cogeneration and small power production rules ,section #baj of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #hbd;a-#c7 is amended by striking subsection 7a7 and inserting the following3 7a7 ,cogeneration and small power production rules 7#a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,commission shall prescribe1 and from time to time thereafter revise1 rules as the ,commission determines necessary to encourage cogeneration and small power production1 and to encourage geothermal small power production facilities of not more than #hj megawatts capacity4 7#b7 ,requirements ,the rules under paragraph 7#a7-- 7,a7 shall require electric utilities to offer-- 7i7 to sell electric energy to qualifying cogeneration facilities and qualifying small power production facilities2 and 7ii7 to purchase electric energy from facilities described in clause 7i72 7,b7 shall be prescribed after consultation with representatives of ,federal and ,state regulatory agencies having ratemaking authority for electric utilities1 and after public notice and a reasonable opportunity for interested persons 7including ,federal and ,state agencies7 to submit oral as well as written data1 views1 and arguments2 7,c7 shall include provisions requiring-- 7i7 minimum reliability of qualifying cogeneration facilities and qualifying small power production facilities 7including reliability of those facilities during emergencies72 7ii7 qualifying facilities to be responsible for any costs needed to hold electric utility customers financially indifferent to the cost of enabling the firm delivery capability of the qualifying facility1 including the cost of any facilities or network upgrades associated with the interconnection service of the qualifying facility and transmission service arrangements of the qualifying facility to deliver the power of the qualifying facility to electric utility customers2 7iii7 curtailment of qualifying facilities as the ,commission determines necessary to ensure resource adequacy2 and 7iv7 reliability of electric energy service to be available to facilities described in clause 7i7 from electric utilities during emergencies2 and 7,d7 may not authorize a qualifying cogeneration facility or qualifying small power production facility to make any sale for purposes other than resale4 4 7b7 ,rates for purchases by electric utilities ,section #baj7;b7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #hbd;a-#c7;b77 is amended-- 7#a7 in paragraph 7#a71 by striking 1 and and inserting 2 and2 7#b7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and indenting the subparagraphs appropriately2 7#c7 in the matter preceding subparagraph 7,a7 7as so redesignated71 by striking ,the rules prescribed under subsection 7a7 shall insure and inserting the following3 7#a7 ,in general ,subject to paragraph 7#b71 the rules prescribed under subsection 7a7 shall ensure 2 and 7#d7 in the undesignated matter following subparagraph 7,b7 of paragraph 7#a7 7as so redesignated71 by striking ,no such rule and inserting the following3 7#b7 ,limitation ,no rule 4 7c7 ,termination of mandatory purchase requirements ,section #baj7m77#a7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #hbd;a-#c7m77#a77 is amended-- 7#a7 in subparagraph 7,b77ii71 by striking or at the end2 and 7#b7 by striking subparagraph 7,c7 and inserting the following3 7,c7 any independently administered1 voluntary1 auction-based energy market 7including an energy imbalance market71 regardless of whether-- 7i7 an applicable electric utility participating in such a market is a member of a regional transmission organization or an independent system operator2 or 7ii7 such a market has a governance structure and operation that is wholly separate and autonomous from a regional transmission organization or an independent system operator2 or 7,d7 wholesale markets that are of comparable competitive quality to markets described in subparagraph 7,a71 7,b71 or 7,c74 4 7d7 ,nondiscriminatory access ,section #baj7m7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #hbd;a-#c7m77 is amended by adding at the end the following3 7#h7 ,nondiscriminatory access 7,a7 ,in general ,for purposes of this subsection1 a qualifying small power production facility with an installed generation capacity of #b4e megawatts or greater is presumed to have nondiscriminatory access to the transmission and interconnection services and wholesale markets described in subparagraphs 7,a71 7,b71 7,c71 and 7,d7 of paragraph 7#a74 7,b7 ,exception ,subparagraph 7,a7 shall not apply with respect to a qualifying small power production facility that1 as of the date of enactment of this paragraph-- 7i7 produces both electric energy and useful thermal energy2 and 7ii7 on a million-,british-thermal-unit basis1 uses not less than #hj percent of the total annual aggregate net output of electric energy and useful thermal energy of the qualifying small power production facility for onsite industrial1 commercial1 or institutional purposes1 rather than for sale4 4 7e7 ,recognition of ,state or local determinations ,section #baj7m7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #hbd;a-#c7m77 7as amended by subsection 7d77 is amended by adding at the end the following3 7#i7 ,state or local determination ,effective beginning on the date of enactment of this paragraph1 no electric utility shall be required to enter into a new contract or obligation to purchase electric energy under this section from a qualifying small power production facility that is not a qualifying small power production facility described in paragraph 7#h77;,b71 if the appropriate ,state regulatory agency or non-regulated electric utility determines that-- 7,a7 the electric utility has no need to purchase electric energy from the qualifying small power production facility in the quantities offered within the timeframe proposed by the qualifying small power production facility to meet any obligation to serve a customer1 consistent with the needs for electric energy and the timeframe for those needs1 as specified in the integrated resource plan of1 or other applicable demonstration of need by1 the electric utility2 or 7,b7 the electric utility employs integrated resource planning or another applicable demonstration of need and conducts a competitive resource procurement process for long-term energy resources that provides an opportunity for qualifying small power production facilities to supply electric energy to the electric utility in accordance with the integrated resource plan of1 or other applicable demonstration of need by1 the electric utility4 4 7f7 ,technical corrections ,section #baj of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #hbd;a-#c7 is amended-- 7#a7 in subsection 7h77#b77;,a77i71 by striking subsection 7f7 or and inserting subsection 7f72 or2 and 7#b7 in subsection 7k71 by adding a period at the end4 #c4 ,federal ,energy ,regulatory ,commission regulations 7a7 ,required amendments relating to location of small power production facilities 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,federal ,energy ,regulatory ,commission 7referred to in this section as the ,commission7 shall publish in the ,federal ,register a final rule to amend1 in accordance with this section1 the regulations of the ,commission promulgated to carry out section #c7ag77;,a77ii7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif7ag77;,a77ii77 relating to the method used by the ,commission to determine whether a facility is considered to be located at the same site as a facility for which qualification is sought for the purpose of calculating power production capacity4 7#b7 ,rebuttable presumption 7,a7 ,in general ,the amendments to regulations required by paragraph 7#a7 shall establish a rebuttable presumption that-- 7i7 facilities separated by a distance of #a mile or more shall not be considered to be located at the same site2 and 7ii7 facilities separated by a distance of less than #a mile shall be considered to be located at the same site4 7,b7 ,rebutting presumption ,the ,commission shall allow any person 7as defined in section #che4ajb of title #ah1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act77 to rebut the presumption described in subparagraph 7,a74 7#c7 ,factors for consideration 7,a7 ,in general ,the amendments to regulations required by paragraph 7#a7 shall require that1 in determining whether a facility is considered to be located at the same site as a facility for which qualification is sought1 the ,commission shall take into consideration1 to the maximum extent practicable1 the following factors3 7i7 ,the extent to which the owners or operators of the facilities are-- 7,i7 affiliates or associate companies 7as those terms are defined in section #abfb of the ,public ,utility ,holding ,company ,act of #bjje 7#db ,u4,s4,c4 #afdea772 or 7,,ii7 under the control of the same person1 subject to subparagraph 7,b74 7ii7 ,the extent to which the facilities have been treated as a single project for purposes of other regulatory filings or applications4 7iii7 ,whether the facilities use the same energy resource4 7iv7 ,whether the facilities-- 7,i7 have a common generator lead line2 or 7,,ii7 connect at the same or nearby interconnection points or substations4 7v7 ,the extent to which the owners or operators of the facilities have a common land lease or land rights with respect to land on which the facilities are located4 7vi7 ,the extent to which there is common financing with respect to the facilities4 7vii7 ,the extent to which the facilities are part of a common development plan or permitting effort1 regardless of whether the interconnection of the facilities occurs at separate points4 7,b7 ,control ,for purposes of subparagraph 7,a77i77,,ii71 the ,commission shall consider the owner or operator of a facility to be under the control of a person if-- 7i7 the person directly or indirectly owns1 controls1 or holds1 with power to vote1 #aj percent or more of the outstanding voting securities of the owner or operator2 or 7ii7 the ,commission determines1 after notice and opportunity for hearing1 that the person exercises1 directly or indirectly 7alone or pursuant to an arrangement or understanding with #a or more persons71 a controlling influence over the management of the owner or operator4 7#d7 ,exception ,paragraphs 7#b7 and 7#c7 shall not apply with respect to a facility that1 as of the date of enactment of this ,act-- 7,a7 produces both electric energy and useful thermal energy2 and 7,b7 on a million-,british-thermal-unit basis1 uses not less than #hj percent of the total annual aggregate net output of electric energy and useful thermal energy of the facility for onsite industrial1 commercial1 or institutional purposes1 rather than for sale4 7b7 ,prohibition on requiring minimum term for certain contracts ,the ,commission shall not issue any regulation1 guidance1 or order that requires a minimum contract term for any power purchase contract between-- 7#a7 an electric utility 7as defined in section #c of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfjb772 and 7#b7 a qualifying small power production facility 7as defined in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif774 7c7 ,required amendment relating to legally enforceable obligations ,not later than #ahj days after the date of enactment of this ,act1 the ,commission shall publish in the ,federal ,register a final rule to amend the regulation contained in section #bib4cjd7;d77#b7 of title #ah1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act71 to provide that a legally enforceable obligation for the delivery of electric energy or capacity from a qualifying small power production facility to an electric utility shall not require any electric utility to purchase electric energy or capacity from a qualifying small power production facility at a rate that exceeds the incremental cost to the electric utility of alternative electric energy or capacity1 as calculated at the time of delivery of the electric energy or capacity4