text: SECTION 1. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS.
  
      Title VI of the Public Utility Regulatory Policies Act of 1978 is 
  amended by adding after section 604 the following new section:
  
  ``SEC. 605. NATIONAL ELECTRIC SYSTEM PUBLIC BENEFITS FUND.
  
      ``(a) Purpose.--The purpose of this section is to provide for a 
  National Electric System Public Benefits Fund, administered by the 
  National Electric System Public Benefits Board, to provide matching 
  funds to States for the support of eligible public purpose programs.
      ``(b) Definitions.--For purposes of this section:
              ``(1) The term `Board' means the National Electric System 
          Public Benefits Board established under this section.
              ``(2) The term `eligible public purpose program' means a 
          program that supports--
                      ``(A) conservation and energy efficiency and 
                  renewable energy,
                      ``(B) universal and affordable service, or
                      ``(C) research and development that supports such 
                  purposes,
           and that is designated by the Board as eligible to receive 
          funding under this section.
              ``(3) The term `matching funds' means an equal distribution 
          of State funds and funds made available as provided in this 
          section.
              ``(4) The `Secretary' means the Secretary of Energy.
              ``(5) The terms `State commission' and `transmitting 
          utility' have the meanings provided for such terms by the 
          Federal Power Act.
              ``(6) The term `renewable energy' means electricity 
          generated from nontoxic organic waste, biomass, dedicated 
          energy crops, landfill gas, geothermal, solar, tidal or wind 
          resources, except that such term does not include electricity 
          generated from the incineration of municipal solid waste.
              ``(7) The term `energy efficiency' means programs and 
          measures designed to cost-effectively improve the efficiency of 
          end-use electricity consumption, considering all costs of 
          electricity generation, transmission, distribution, and 
          consumption on a life-cycle basis. For purposes of this 
          section, eligible energy efficiency programs and measures shall 
          include efforts to transform markets in end-use equipment, to 
          develop and implement codes and standards, to provide technical 
          support and information to consumers, and to provide financing 
          and financial support for the acquisition of efficient end use 
          equipment.
              ``(9) A program that supports `universal and affordable 
          service' is any program that promotes high quality and reliable 
          electric service at just, reasonable, and affordable rates for 
          low income consumers and those in rural, insular, or high cost 
          areas.
      ``(c) National Electric System Public Benefits Board.--(1) A 
  National Electric System Public Benefits Board shall be established to 
  carry out the functions and responsibilities specified in this section.
      ``(2) The Board shall be composed of 3 persons who are officers or 
  employees of the United States, and 4 State commissioners nominated by 
  the national organization of the State commissions and appointed by the 
  Secretary. The Secretary shall appoint one member of the Board to serve 
  as Chairman.
      ``(3) Within 180 days after the enactment of this Act, the 
  Secretary shall promulgate a final rule containing the rules and 
  procedures of the Board, including the rules and procedures for 
  selecting a non-Federal fiscal agent under subsection (e). The 
  Secretary shall have oversight responsibilities over the Board.
      ``(d) Contributions.--Each owner or operator of an electric power 
  generation facility shall, as a condition of transmitting power to any 
  transmitting utility, contribute funds (based on the kilowatt hours 
  transmitted) in such amounts as shall be determined by the Board to be 
  necessary to generate revenues in each calendar year equal to \1/2\ of 
  the aggregate cost of carrying out the eligible public purpose programs 
  that meet the criteria established by the Board under subsection (e) 
  for receipt of funding for that calendar year. Such contributions shall 
  not exceed 2 mills per kilowatt hour. Each transmitting utility 
  receiving electricity from a generator shall collect such contributions 
  and transfer the contributions to the fiscal agent designated under 
  subsection (e) at the end of each month in which contributions are 
  made.
      ``(e) Public Benefits Program.--(1) Within 90 days after the 
  promulgation of the Secretary's rules under subsection (c)(3), the 
  Board shall institute a proceeding to establish regulations governing 
  creation and administration of a Public Benefits Program. Such 
  regulations shall include criteria for the eligibility of the State 
  public service programs for support under the Program. The Board shall 
  enter into arrangements with a non-Federal fiscal agent who shall be 
  authorized to receive the contributions made under subsection (d) and 
  to disburse such contributions as provided in subsection (f). The Board 
  shall prepare a recommended decision for prompt review and approval by 
  the Secretary.
      ``(2) Any State may establish one or more public purpose programs 
  and apply for matching funding for such program or programs under the 
  Public Benefits Program. A participating State may use matching funds 
  received under this section only to support one or more eligible public 
  purpose programs. The Board shall regularly audit the expenditures of 
  matching funds received by a participating State under this section.
      ``(3) At no time is a State required, pursuant to this section, to 
  participate in the Public Benefits program, nor may a State be required 
  by the Board to fund a particular eligible public purpose program.
      ``(f) National Electric System Public Benefits.--(1) The fiscal 
  agent shall distribute contributions received by the fiscal agent under 
  subsection (d) to States (or entities designated by the States) under 
  this subsection in accordance with the criteria established by the 
  Board under subsection (e) to carry out eligible public purpose 
  programs established by the States. A State seeking matching funds to 
  carry out eligible public purpose programs shall apply for such funds 
  no later than 3 months prior to the start of the calendar year. In its 
  application, the State must certify that the moneys will be used for 
  one or more eligible public purpose programs and must specify the 
  amount of State support which is projected for the coming calendar year 
  for the programs concerned.
      ``(2) Upon receipt of all State requests for matching funds 
  submitted pursuant to paragraph (1) within the 3-month time period 
  specified in paragraph (1), the Board shall calculate the funds 
  necessary to match the level of projected States funds for eligible 
  public purpose programs for the coming calendar year.
      ``(3) Following the calculation of the amount of matching funds 
  required under paragraph (2) for all States for any calendar year, the 
  Board shall communicate that amount to the fiscal agent. To the extent 
  the matching funds requested by all States for a calendar year exceed 
  the maximum projected revenues from the contributions under this 
  section, the matching funds distributed to each State shall be reduced 
  pro rata so that the percentage of State funds matched by funds 
  provided under this section is the same for all States.
      ``(4) The fiscal agent shall distribute matching funds to the 
  States (or to an entity or entities designated by the State to receive 
  payments) in monthly payments to be used for eligible public purpose 
  programs designated under subsection (f). All funds received shall be 
  used only for the eligible public purpose programs designated by the 
  State.
      ``(g) Existing Programs.--It is the sense of the Congress that the 
  program established under this section shall not replace or supersede 
  any other existing programs that support or encourage conservation and 
  energy efficiency, renewable energy, universal and affordable service, 
  or research and development.''.
target: Amends the Public Utility Regulatory Policies Act of 1978 to establish a National Electric System Public Benefits Fund, administered by the National Electric System Public Benefits Board to provide matching funds to States for the support of eligible public purpose programs. 
  Confers oversight responsibility over the Board upon the Secretary of Energy. 
  Requires each electric power generation facility owner or operator, as a condition of transmitting power to any transmitting utility, to contribute funds determined by the Board to be necessary to generate revenues in each calendar year equal to one-half of the aggregate cost of implementing certain public purpose programs. 
  Requires the Board to institute a rulemaking proceeding governing creation and administration of a Public Benefits Program. 
  Authorizes any State to establish one or more public purpose programs and apply for matching funds under the Public Benefits Program.  Emphasizes State discretion to elect participation in such Program. 
  Expresses the sense of the Congress that such Program shall not replace or supersede any other existing programs that support or encourage conservation and energy efficiency, renewable energy, universal and affordable service, or research and development.
feat_title: To amend the Public Utility Regulatory Policies Act of 1978 to establish a means to support programs for electric energy conservation and energy efficiency, renewable energy, and universal and affordable service for electric consumers.