Amendments to the Federal Power Act

Section 219 of the Federal Power Act (16 U.S.C. 824s) is amended— (1) in subsection (a)— (A) by striking Not later than 1 year after the date of enactment of this section, the Commission shall establish, by rule, and inserting The Commission shall issue such rules as may be necessary to establish; and (B) by inserting, improving efficiency, after ensuring reliability; (2) in subsection (b)— (A) in the matter preceding paragraph (1), by striking The rule shall and inserting The rules issued under this section shall; (B) in paragraph (1), by inserting, and operational improvements for, after capital investment in; (C) in paragraph (2)— (i) by inserting or other incentive mechanism after return on equity; and (ii) by inserting or incentivizes improvements that increase the efficiency of the transmission of electric energy and reduce costs for consumers after (including related transmission technologies); (D) in paragraph (3), by inserting, including performance-based measures, after other measures; and (E) in paragraph (4)— (i) in subparagraph (A), by striking; and and inserting a semicolon; (ii) in subparagraph (B), by striking the period and inserting; and; and (iii) by adding at the end the following new subparagraph: (C) amounts determined pursuant to shared savings frameworks or other incentive mechanisms prescribed in such rules.; and (3) in subsection (c), by striking In the rule and inserting In a rule.