AMENDMENT OF HOOVER POWER PLANT ACT.

SEC. 114. AMENDMENT OF HOOVER POWER PLANT ACT. Title II of the Hoover Power Plant Act of 1984 (42 U.S.C. 7275–7276, Public Law 98–7381) is amended to read as follows: “TITLE II— INTEGRATED RESOURCE PLANNING “Sec. 201. Definitions. “Sec. 202. Regulations to require integrated resource planning. “Sec. 203. Technical assistance. “Sec. 204. Integrated resource plane. “Sec. 206. Miscellaneous provisions. “SEC. 201. DEFINITIONS. “As used in this title: “(1) The term ‘Administrator’ means the Administrator of the Western Area Power Administration. “(2) The term ‘integrated resource planning’ means a planning process for new energy resources that evaluates the full range of alternatives, including new generating capacity, power purchases, energy conservation and efficiency, cogeneration and district heating and cooling applications, and renewable energy resources, in order to provide adequate and reliable service to its electric customers at the lowest system cost. The process shall take into account necessary features for system operation, such as diversity, reliability, dispatchability, and other factors of risk; shall take into account the ability to verify energy savings achieved through energy conservation and efficiency and the projected durability of such savings measured over time; and shall treat demand and supply resources on a consistent and integrated basis. “(3) The term ‘least cost option’ means an option for providing reliable electric services to electric customers which will, to the extent practicable, minimize life-cycle system costs, including adverse environmental effects, of providing such service. To the extent practicable, energy efficiency and renewable resources may be given priority in any least-cost option. “(4) The term ‘long-term firm power service contract’ means any contract for the sale by Western Area Power Administration of firm capacity, with or without energy, which is to be delivered over a period of more than one year. “(5) The terms ‘customer’ or ‘customers’ means any entity or entities purchasing firm capacity with or without energy, from the Western Area Power Administration under a long-term firm power service contract. Such terms include parent type entities and their distribution or user members. “(6) For any customer, the term ‘applicable integrated resource plan’ means the integrated resource plan approved by the Administrator under this title for that customer. 106 STAT. 2800 “SEC. 202. REGULATIONS TO REQUIRE INTEGRATED RESOURCE PLANNING. “(a) Regulations.— Within 1 year after the enactment of this section, the Administrator shall, by regulation, revise the Final Amended Guidelines and Acceptance Criteria for Customer Conservation and Renewable Energy Programs published in the Federal Register on August 21, 1985 (50 F.R. 33892), or any subsequent amendments thereto, to require each customer purchasing electric energy under a long-term firm power service contract with the Western Area Power Administration to implement, within 3 years after the enactment of this section, integrated resource planning in accordance with the requirements of this title. “(b) Certain Small Customers.— Notwithstanding subsection (a), for customers with total annual energy sales or usage of 25 Gigawatt Hours or less which are not members of a joint action agency or a generation and transmission cooperative with power supply responsibility, the Administrator may establish different regulations and apply such regulations to customers that the Administrator finds have limited economic, managerial, and resource capability to conduct integrated resource planning. The regulations under this subsection shall require such customers to consider all reasonable opportunities to meet their future energy service requirements using demand-side techniques, new renewable resources and other programs that will provide retail customers with electricity at the lowest possible cost, and minimize, to the extent practicable, adverse environmental effects. “SEC. 203. TECHNICAL ASSISTANCE. “The Administrator may provide technical assistance to customers to, among other things, conduct integrated resource planning, implement applicable integrated resource plans, and otherwise comply with the requirements of this title. Technical assistance may include publications, workshops, conferences, one-to-one assistance, equipment loans, technology and resource assessment studies, marketing studies, and other mechanisms to transfer information on energy efficiency and renewable energy options and programs to customers. The Administrator shall give priority to providing technical assistance to customers that have limited capability to conduct integrated resource planning. “SEC. 204. INTEGRATED RESOURCE PLANS. “(a) Review by Western Area Power Administration.— Within 1 year after the enactment of this section, the Administrator shall, by regulation, revise the Final Amended Guidelines and Acceptance Criteria for Customer Conservation and Renewable Energy Programs published in the Federal Register on August 21, 1985 (50 F.R. 33892), or any subsequent amendments thereto, to require each customer to submit an integrated resource plan to the Administrator within 12 months after such regulations are amended. The regulation shall require a revision of such plan to be submitted every 5 years after the initial submission. The Administrator shall review the initial plan in accordance with a schedule established by the Administrator (which schedule will provide for the review of all initial plans within 24 months after such regulations are amended), and each revision thereof within 120 days after his receipt of the plan or revision and determine whether the customer has in the development of the plan or revi-106 STAT. 2801sion, complied with this title. Plan amendments may be submitted to the Administrator at any time and the Administrator shall review each such amendment within 120 days after receipt thereof to determine whether the customer in amending its plan has complied with this title. If the Administrator determines that the customer, in developing its plan, revision, or amendment, has not complied with the requirements of this title, the customer shall resubmit the plan at any time thereafter. Whenever a plan or revision or amendment is resubmitted the Administrator shall review the plan or revision or amendment within 120 days after his receipt thereof to determine whether the customer has complied with this title. “(b) Criteria for Approval of Integrated Resource Plans.— The Administrator shall approve an integrated resource plan submitted as required under subsection (a) if, in developing the plan, the customer has: “(1) Identified and accurately compared all practicable energy efficiency and energy supply resource options available to the customer. “(2) Included a 2–year action plan and a 5-year action plan which describe specific actions the customer will take to implement its integrated resource plan. “(3) Designated ‘least-cost options’ to be utilized by the customer for the purpose of providing reliable electric service to its retail consumers and explained the reasons why such options were selected. “(4) To the extent practicable, minimized adverse environmental effects of new resource acquisitions. “(5) In preparation and development of the plan (and each revision or amendment of the plan) has provided for full public participation, including participation by governing boards. “(6) Included load forecasting. “(7) Provided methods of validating predicted performance in order to determine whether objectives in the plan are being met. “(8) Met such other criteria as the Administrator shall require. “(c) Use of Other Integrated Resource Plans.— Where a customer or group of customers are implementing integrated resource planning under a program responding to Federal, State, or other initiatives, including integrated resource planning considered and implemented pursuant to section 111(d) of the Public Utility Regulatory Policies Act of 1978, in evaluating that customer’s integrated resource plan under this title, the Administrator shall accept such plan as fulfillment of the requirements of this title to the extent such plan substantially complies with the requirements of this title. “(d) Compliance With Integrated Resource Plans.— Within 1 year after the enactment of this section, the Administrator shall, by regulation, revise the Final Amended Guidelines and Acceptance Criteria for Customer Conservation and Renewable Energy Programs published in the Federal Register on August 21, 1985 (50 F.R. 33892), or any subsequent amendments thereto, to require each customer to fully comply with the applicable integrated resource plan and submit an annual report to the Administrator (in such form and containing such information as the Administrator may require) describing the customer’s progress to the goals established in such plan. After the initial review under subsection (a) 106 STAT. 2802the Administrator shall periodically conduct reviews of a representative sample of applicable integrated resource plans and the customer’s implementation of the applicable integrated resource plan to determine if the customers are in compliance with their plans. If the Administrator finds a customer out-of-compliance, the Administrator shall impose a surcharge under this section on all electric energy purchased by the customer from the Western Area Power Administration or reduce such customer’s power allocation by 10 percent, unless the Administrator finds that a good faith effort has been made to comply with the approved plan. “(e) Enforcement.— “(1) No approved plan.— If an integrated resource plan for any customer is not submitted before the date 12 months after the guidelines are amended as required under this section or if the plan is disapproved by the Administrator and a revised plan is not resubmitted by the date 9 months after the date of such disapproval, the Administrator shall impose a surcharge of 10 percent of the purchase price on all power obtained by that customer from the Western Area Power Administration after such date. The surcharge shall remain in effect until an integrated resource plan is approved for that customer. If the plan is not submitted for more than one year after the required date, the surcharge shall increase to 20 percent for the second year (or any portion thereof prior to approval of the plan) and to 30 percent thereafter until the plan is submitted or the contract for the purchase of power by such customer from the Western Area Power Administration terminates. “(2) Failure to comply with approved plan.— After approval by the Administrator of an applicable integrated resource plan for any customer, the Administrator shall impose a 10 percent surcharge on all power purchased by such customer from the Western Area Power Administration whenever the Administrator determines that such customer’s activities are not consistent with the applicable integrated resource plan. The surcharge shall remain in effect until the Administrator determines that the customer’s activities are consistent with the applicable integrated resource plan. The surcharge shall be increased to 20 percent if the customer’s activities are out of compliance for more than one year and to 30 percent after more than 2 years, except that no surcharge shall be imposed if the customer demonstrates, to the satisfaction of the Administrator, that a good faith effort has been made to comply with the approved plan. “(3) Reduction in power allocation.— In the case of any customer subject to a surcharge under paragraph (1) or (2), in lieu of imposing such surcharge the Administrator may reduce such customer’s power allocation from the Western Area Power Administration by 10 percent. The Administrator shall provide by regulation the terms and conditions under which a power allocation terminated under this subsection may be reinstated. “(f) Integrated Resource Planning Cooperatives.— With the approval of the Administrator, customers within any State or region may form integrated resource planning cooperatives for the purposes of complying with this title, and such customers shall be 106 STAT. 2803allowed an additional 6 months to submit an initial integrated resource plan to the Administrator. “(g) Customers With More Than 1 Contract.— If more than one long-term firm power service contract exists between the Administrator and a customer, only one integrated resource plan shall be required for that customer under this title. “(h) Program Review.— Within 1 year after January 1, 1999, and at appropriate intervals thereafter, the Administrator shall initiate a public process to review the program established by this section. The Administrator is authorized at that time to revise the criteria set forth in section 204(b) to reflect changes, if any, in technology, needs, or other developments. “SEC. 205. MISCELLANEOUS PROVISIONS. “(a) Environmental Impact Statement.— The provisions of the National Environmental Policy Act of 1969 shall apply to actions of the Administrator implementing this title in the same manner and to the same extent as such provisions apply to other major Federal actions significantly affecting the quality of the human environment. “(b) Annual Reports.— The Administrator shall include in the annual report submitted by the Western Area Power Administration (1) a description of the activities undertaken by the Administrator and by customers under this title and (2) an estimate of the energy savings and renewable resource benefits achieved as a result of such activities. “(c) State Regulated Investor-Owned Utilities.— Any State regulated electric utility (as defined in section 3(18) of the Public Utility Regulatory Policies Act of 1978) shall be exempt from the provisions of this title. “(d) Rural Electrification Administration Requirements.— Nothing in this title shall require a customer to take any action inconsistent with a requirement imposed by the Rural Electrification Administration”.