,i #aahth ,,congress #b;d ,session ,h4 ,r4 #hifh ,,in ,,the ,,house ,,of ,,representatives ,july #i1 #bjbd,mrs4 ,lesko 7for herself and ,mr4 ,latta7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce ,a ,,bill ,to amend the ,federal ,power ,act to require annual reports on generation and load capacity by ,regional ,transmission ,organizations and ,independent ,system ,operators1 to establish reliability markets1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,keeping the ,lights ,on ,act4 #b4 ,establishment of reliability markets for the bulk-power system ,the ,federal ,power ,act 7#af ,u4,s4,c4 #gia;a et seq47 is amended by inserting after section #bae;,a the following3 #bae;,b4 ,reliability markets 7a7 ,purpose ,the purpose of this section is to ensure the reliability of the bulk-power system4 7b7 ,reports on generation and load ,the ,commission shall require1 by rule or order1 each ,,rto and ,,iso to submit to the ,commission1 not less frequently than once a year1 a report that identifies1 with respect to the public utilities that are part of the ,,rto or ,,iso-- 7#a7 the ten-year historical and ten-year projected gross peak load and net peak load for every fifteen minutes of each day of the year2 7#b7 the impact of extreme weather on electric demand and generation resource availability2 7#c7 reserve margins of generation resource capacity based on the generation resource types needed to meet demand for every fifteen minutes of each day2 7#d7 each generation resource 7and the net capacity factor of each generation resource71 including each generation resource that is a dispatchable on demand continuous resource1 a dispatchable on demand short-term resource1 an intermittent generation resource1 or an inverter based generation resource2 7#e7 the energy source1 such as coal1 nuclear1 natural gas1 hydro1 wind1 or solar1 of each generation resource identified under paragraph 7#d72 7#f7 whether a generation resource identified under paragraph 7#d7 relies on-- 7,a7 fuel deliveries1 including the method by which such fuel is delivered 7such as pipeline1 rail1 or barge72 and 7,b7 on-site fuel supplies 7including how long the generation resource can operate on such fuel supplies72 7#g7 whether each generation resource identified under paragraph 7#d7 that is operated using natural gas is supplied by firm transportation on natural gas pipelines2 7#h7 whether the energy source of a generation resources identified under paragraph 7#d7 is dependant on the time of day and weather2 7#i7 projected shortfalls in generation needed to meet system needs for every fifteen minutes of the day each year and during extreme weather2 and 7#aj7 other factors identified by the ,commission as important for the reliability of the bulk-power system4 7c7 ,reliability markets 7#a7 ,new schedules ,each ,,rto and ,,iso shall file under section #bje a new schedule which shall ensure that dispatchable on demand continuous resources are available when intermittent generation resources are not available to meet net peak load for every #ae minutes of each day of the year4 ,a schedule filed under section #bje pursuant to this paragraph that differentiates between the operating characteristics of generation resources for purposes of supporting the reliability of the bulk-power system shall not be considered unjust1 unreasonable1 or unduly preferential under section #bje4 7#b7 ,establishment 7,a7 ,in general ,in approving a schedule filed pursuant to paragraph 7#a71 the ,commission shall consider one of the following3 7i7 ,establishing at least one reliability market where only dispatchable on demand continuous resources and dispatchable on demand short-term resources may participate1 which may be established separately or combined for such dispatchable on demand continuous resources and dispatchable on demand short-term resources4 7ii7 ,establishing a reliability market or modifying existing capacity markets to require intermittent resources to purchase electricity generated by a dispatchable on demand continuous resource when the intermittent resource is not available to generate electricity4 7iii7 ,establishing another mechanism that will support the availability of dispatchable on demand continuous resources and dispatchable on demand short-term resources to support the reliability of the bulk-power systems at all times through the year 7measured every #ae minutes of each day74 7,b7 ,charge for delivery failure ,the ,commission shall establish penalties for each generation resource that fails to generate electricity in accordance with the requirements of a market or mechanism established under subparagraph 7,a74 7,c7 ,forward procurement auction ,no public utility may accept an offer at a forward procurement auction for a price that is less than the marginal costs to operate the public utility4 7d7 ,commission approval of rates and charges ,for the purposes of cost allocation of transmission services 7including costs associated with interconnection1 network upgrades1 and the construction and expansion of new transmission lines71 no rate or charge shall be considered just and reasonable under section #bje-- 7#a7 if such rate or charge-- 7,a7 socializes costs of transmission service to electric consuming customers who do not receive direct and quantifiable all-in costs of delivered electric service or to meet reliability standards from the transmission service2 or 7,b7 allocates costs of transmission service to the electric customers of one ,state for transmission service that will primarily serve electric customers of another ,state or region2 and 7#b7 direct benefits may include the energy and transmission cost benefits 7but must consider the cost of generation1 transmission reliability combined72 direct benefits shall not include environmental or health benefits2 reduction of greenhouse gas emissions2 or environmental leakage between ,states or regions2 however the generating resource that causes the need for transmission service may be permitted or required to pay directly for the costs of transmission such service4 7e7 ,expansion to other ,states ,the ,commission may not require any public utility or generation resource within a ,state or region to join an ,,rto or ,,iso unless the applicable ,state or ,state regulatory authority agrees to join the ,,rto or ,,iso4 7f7 ,no environmental requirements ,the ,commission and each ,,rto and ,,iso may not impose environmental requirements1 adjust rates to account for ,state environmental policies 7including environmental leakage adjustments71 or mandate environmental performance standards of any kind4 7g7 ,prohibition on confiscating energy 7#a7 ,requirement ,each ,,rto and ,,iso shall honor its contractual commitments to wheel power outside its service area and may not divert such power deliveries to serve its own load4 7#b7 ,penalties2 damages ,if an ,,rto or ,,iso diverts power from a utility to serve its own load1 the ,,rto or ,,iso-- 7,a7 shall be subject to penalties determined by the ,commission2 and 7,b7 may be liable for damages pursuant to a proceeding brought in a ,federal district court4 7h7 ,definitions ,in this section3 7#a7 ,bulk-power system2 reliability standard ,the terms bulk-power system and reliability standard have the meanings given such terms in section #bae7;a74 7#b7 ,dispatchable on demand continuous resource ,the term dispatchable on demand continuous resource means an electricity generating resource-- 7,a7 that can generate electricity as needed as directed by the operator and not be dependent on the time of day or the weather2 7,b7 that can maintain the requested generation capacity for a minimum of #gb hours continuously2 and 7,c7 the power output of which can be adjusted according to the needs of the power grid4 7#c7 ,dispatchable on demand short-term resource ,the term dispatchable on demand short-term resource means an electricity generating resource-- 7,a7 that can generate electricity as needed as directed by the operator and not be dependent on the time of day or the weather2 7,b7 that can be operational within three hours or less of being called on to generate electricity2 7,c7 that has the capability to continually operate for a minimum of #gb hours2 and 7,d7 the power output of which can be adjusted according to the needs of the power grid4 7#d7 ,environmental leakage ,the term environmental leakage means where one ,state or region imposes certain environmental limits or goals on electric generation and another ,state or region does not and such differences allow a generating resource without such environmental restrictions or goals to generate and sell power cheaper than a generation resource from another ,state or region4 7#e7 ,extreme weather ,the term extreme weather-- 7,a7 means a weather event that is at the extremes of the historical distribution2 and 7,b7 includes unexpected1 unusual1 severe1 or unseasonal weather4 7#f7 ,firm ,the term firm means the electric generator has priority transportation rights to a fuel supply4 ,storage batteries that have three days of continuous discharge may be considered firm4 7#g7 ,gross peak load ,the term gross peak load means the total energy required to serve demand at its highest level for each #ae minutes of every day of the year4 7#h7 ,intermittent resource ,the term intermittent resource means an electric generation resource that depends on the weather or time of day for its fuel source1 such as wind or solar4 7#i7 ,net capacity factor ,the net capacity factor of an electric generator is the ratio of its actual output over two consecutive calendar years1 to its potential output if it were possible for it to operate at full nameplate capacity during the same two consecutive calendar years4 ,to calculate the capacity factor1 take the total amount of energy the plant produced during a period of time and divide by the amount of energy the plant would have produced at full capacity4 7#aj7 ,net peak load ,the term net peak load means the difference of-- 7,a7 gross peak load1 minus 7,b7 intermittent generation resources used to serve load for each #ae minutes of each day of the year4 4 #c4 ,cogeneration and small1 power production under the ,public ,utility ,regulatory ,policies ,act of #aigh 7a7 ,repeal ,section #baj of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #hbd;a-#c7 is repealed4 7b7 ,existing contracts ,the repeal of section #baj by subsection 7a7 shall not affect any contract or obligation in effect before the date of enactment of this ,act4 #d4 ,rebuttable presumption for certain certificates issued under the ,natural ,gas ,act ,section #g7;e7 of the ,natural ,gas ,act 7#ae ,u4,s4,c4 #gag;f7e77 is amended by inserting the following at the end3 ,when considering an application for a certificate of public convenience and necessity under this subsection for a facility that will serve in whole or in part an electric generation facility1 it shall be a rebuttable presumption that the certificate is in the public interest and is or will be required by the present or future public convenience and necessity44