Sec. 5. Supplemental, backup, and standby power fees or rates
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Section 111(d) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2621(d) ) (as amended by section 4(a)) is amended by adding at the end the following: Not later than 1 year after the date of enactment of this paragraph, the Secretary, in consultation with the Commission and other appropriate agencies, shall establish model rules and procedures for determining fees or rates for supplementary power, backup or standby power, maintenance power, and interruptible power supplied to facilities that operate combined heat and power technology and waste heat to power technology that appropriately allow for adequate cost recovery by an electric utility but are not excessive.
In establishing model rules and procedures for determining fees or rates described in subparagraph (A), the Secretary shall consider— the best practices that are used to model outage assumptions and contingencies to determine the fees or rates; the appropriate duration, magnitude, or usage of demand charge ratchets; the benefits to the utility and ratepayers, such as increased reliability, fuel diversification, enhanced power quality, and reduced electric losses from the use of combined heat and power technology and waste heat to power technology by a qualifying facility; and alternative arrangements to the purchase of supplementary, backup, or standby power by the owner of combined heat and power technology and waste heat to power technology generating units if the alternative arrangements— do not compromise system reliability; and are nondiscretionary and nonpreferential. .
Section 112(b) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2622(b) ) (as amended by section 4(b)(1)) is amended by adding at the end the following: Not later than 90 days after the date on which the Secretary completes the standards required under section 111(d)(21), each State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority) shall commence the consideration referred to in that section, or set a hearing date for such consideration, with respect to each standard.
Not later than 2 years after the date on which the Secretary completes the standards required under section 111(d)(21), each State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority) shall— complete the consideration under subparagraph (A); make the determination referred to in section 111 with respect to each standard established under section 111(d)(21); and submit to the Secretary and the Commission a report detailing the updated plans of the State regulatory authority for supplemental, backup, and standby power fees that reflect best practices to encourage the use of distributed generation. .
Section 112(c) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2622(c) ) (as amended by section 4(b)(2)) is amended by adding at the end the following: In the case of each standard established under 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. . Section 112 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2622 ) (as amended by section 4(b)(3)(A)) is amended by adding at the end the following: Subsections
(b)and
(c)shall not apply to a standard established under 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— the State has implemented for the electric utility the standard (or a comparable standard); the State regulatory authority for the State has conducted a proceeding after December 31, 2016, to consider implementation of the standard (or a comparable standard) for the electric utility; or the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility. . Section 124 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2634 ) (as amended by section 4(b)(3)(B)) is amended by adding at the end the following: In the case of each standard established under 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. .
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