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111TH CONGRESS 1ST SESSION H. R. 2454 AN ACT To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2

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  • 111TH CONGRESS 1ST SESSION H. R. 2454

    AN ACT To create clean energy jobs, achieve energy independence,

    reduce global warming pollution and transition to a clean energy economy.

    Be it enacted by the Senate and House of Representa-1

    tives of the United States of America in Congress assembled, 2

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    •HR 2454 EH

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1

    (a) SHORT TITLE.—This Act may be cited as the 2

    ‘‘American Clean Energy and Security Act of 2009’’. 3

    (b) TABLE OF CONTENTS.—The table of contents for 4

    this Act is as follows: 5

    Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. International participation.

    TITLE I—CLEAN ENERGY

    Subtitle A—Combined Efficiency and Renewable Electricity Standard

    Sec. 101. Combined efficiency and renewable electricity standard. ‘‘Sec. 610. Combined efficiency and renewable electricity standard.

    Sec. 102. Clarifying State authority to adopt renewable energy incentives. Sec. 103. Federal renewable energy purchases.

    Subtitle B—Carbon Capture and Sequestration

    Sec. 111. National strategy. Sec. 112. Regulations for geologic sequestration sites.

    ‘‘Sec. 813. Geologic sequestration sites. Sec. 113. Studies and reports. Sec. 114. Carbon capture and sequestration demonstration and early deploy-

    ment program. Sec. 115. Commercial deployment of carbon capture and sequestration tech-

    nologies. ‘‘Sec. 786. Commercial deployment of carbon capture and sequestration

    technologies. Sec. 116. Performance standards for coal-fueled power plants.

    ‘‘Sec. 812. Performance standards for new coal-fired power plants.

    Subtitle C—Clean Transportation

    Sec. 121. Electric vehicle infrastructure. Sec. 122. Large-scale vehicle electrification program. Sec. 123. Plug-in electric drive vehicle manufacturing. Sec. 124. Investment in clean vehicles. Sec. 125. Advanced technology vehicle manufacturing incentive loans. Sec. 126. Definition of renewable biomass. Sec. 127. Open fuel standard.

    ‘‘Sec. 32920. Open fuel standard for transportation. Sec. 128. Diesel emissions reduction. Sec. 129. Loan guarantees for projects to construct renewable fuel pipelines. Sec. 130. Fleet vehicles. Sec. 130A. Report on natural gas vehicle emissions reductions.

    Subtitle D—State Energy and Environment Development Accounts

    Sec. 131. Establishment of SEED Accounts. Sec. 132. Support of State renewable energy and energy efficiency programs.

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    •HR 2454 EH

    Sec. 133. Support of Indian renewable energy and energy efficiency programs.

    Subtitle E—Smart Grid Advancement

    Sec. 141. Definitions. Sec. 142. Assessment of Smart Grid cost effectiveness in products. Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE

    labels. Sec. 144. Smart Grid peak demand reduction goals. Sec. 145. Reauthorization of energy efficiency public information program to

    include Smart Grid information. Sec. 146. Inclusion of Smart Grid features in appliance rebate program.

    Subtitle F—Transmission Planning

    Sec. 151. Transmission planning and siting. ‘‘Sec. 216A Transmission planning. ‘‘Sec. 216B. Siting and construction in the Western Interconnection.

    Sec. 152. Net metering for Federal agencies. Sec. 153. Support for qualified advanced electric transmission manufacturing

    plants, qualified high efficiency transmission property, and qualified advanced electric transmission property.

    Subtitle G—Technical Corrections to Energy Laws

    Sec. 161. Technical corrections to Energy Independence and Security Act of 2007.

    Sec. 162. Technical corrections to Energy Policy Act of 2005.

    Subtitle H—Energy and Efficiency Centers and Research

    Sec. 171. Energy Innovation Hubs. Sec. 172. Advanced energy research. Sec. 173. Building Assessment Centers. Sec. 174. Centers for Energy and Environmental Knowledge and Outreach. Sec. 175. High efficiency gas turbine research, development, and demonstra-

    tion.

    Subtitle I—Nuclear and Advanced Technologies

    Sec. 181. Revisions to loan guarantee program authority. Sec. 182. Purpose. Sec. 183. Definitions. Sec. 184. Clean energy investment fund. Sec. 185. Energy technology deployment goals. Sec. 186. Clean energy deployment administration. Sec. 187. Direct support. Sec. 188. Indirect support. Sec. 189. Federal credit authority. Sec. 190. General provisions. Sec. 191. Conforming amendments.

    Subtitle J—Miscellaneous

    Sec. 195. Increased hydroelectric generation at existing Federal facilities. Sec. 196. Clean technology business competition grant program. Sec. 197. National Bioenergy Partnership. Sec. 198. Office of Consumer Advocacy.

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    •HR 2454 EH

    ‘‘Sec. 319. Office of Consumer Advocacy. Sec. 199. Development corporation for renewable power borrowing authority. Sec. 199A. Study.

    TITLE II—ENERGY EFFICIENCY

    Subtitle A—Building Energy Efficiency Programs

    Sec. 201. Greater energy efficiency in building codes. ‘‘Sec. 304. Greater energy efficiency in building codes.

    Sec. 202. Building retrofit program. Sec. 203. Energy efficient manufactured homes. Sec. 204. Building energy performance labeling program. Sec. 205. Tree planting programs. Sec. 206. Energy efficiency for data center buildings. Sec. 207. Community building code administration grants. Sec. 208. Solar energy systems building permit requirements for receipt of com-

    munity development block grant funds. Sec. 209. Prohibition of restrictions on residential installation of solar energy

    system.

    Subtitle B—Lighting and Appliance Energy Efficiency Programs

    Sec. 211. Lighting efficiency standards. Sec. 212. Other appliance efficiency standards. Sec. 213. Appliance efficiency determinations and procedures.

    ‘‘Sec. 334. Jurisdiction and venue. Sec. 214. Best-in-Class Appliances Deployment Program. Sec. 215. WaterSense. Sec. 216. Federal procurement of water efficient products. Sec. 217. Early adopter water efficient product incentive programs. Sec. 218. Certified stoves program. Sec. 219. Energy Star standards.

    Subtitle C—Transportation Efficiency

    Sec. 221. Emissions standards.

    ‘‘PART B—MOBILE SOURCES

    ‘‘Sec. 821. Greenhouse gas emission standards for mobile sources. Sec. 222. Greenhouse gas emissions reductions through transportation effi-

    ciency.

    ‘‘PART D—TRANSPORTATION EMISSIONS

    ‘‘Sec. 841. Greenhouse gas emissions reductions through transportation ef-ficiency.

    Sec. 223. SmartWay transportation efficiency program. ‘‘Sec. 822. SmartWay transportation efficiency program.

    Sec. 224. State vehicle fleets.

    Subtitle D—Industrial Energy Efficiency Programs

    Sec. 241. Industrial plant energy efficiency standards. Sec. 242. Electric and thermal waste energy recovery award program. Sec. 243. Clarifying election of waste heat recovery financial incentives. Sec. 244. Motor market assessment and commercial awareness program.

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    •HR 2454 EH

    Sec. 245. Motor efficiency rebate program. ‘‘Sec. 347. Motor efficiency rebate program.

    Sec. 246. Clean energy manufacturing revolving loan fund program. ‘‘Sec. 27. Clean energy manufacturing revolving loan fund program.

    Sec. 247. Clean energy and efficiency manufacturing partnerships. Sec. 248. Technical amendments.

    Subtitle E—Improvements in Energy Savings Performance Contracting

    Sec. 251. Energy savings performance contracts.

    Subtitle F—Public Institutions

    Sec. 261. Public institutions. Sec. 262. Community energy efficiency flexibility. Sec. 263. Small community joint participation. Sec. 264. Low income community energy efficiency program. Sec. 265. Consumer behavior research.

    Subtitle G—Miscellaneous

    Sec. 271. Energy efficient information and communications technologies. ‘‘Sec. 543. Energy efficient information and communications technologies.

    Sec. 272. National energy efficiency goals. Sec. 273. Affiliated island energy independence team. Sec. 274. Product carbon disclosure program. Sec. 275. Industrial energy efficiency education and training initiative. Sec. 276. Sense of Congress.

    Subtitle H—Green Resources for Energy Efficient Neighborhoods

    Sec. 281. Short title. Sec. 282. Definitions. Sec. 283. Implementation of energy efficiency participation incentives for HUD

    programs. Sec. 284. Basic HUD energy efficiency standards and standards for additional

    credit. Sec. 285. Energy efficiency and conservation demonstration program for multi-

    family housing projects assisted with project-based rental as-sistance.

    Sec. 286. Additional credit for Fannie Mae and Freddie Mac housing goals for energy-efficient and location-efficient mortgages.

    Sec. 287. Duty to serve underserved markets for energy-efficient and location- efficient mortgages.

    Sec. 288. Consideration of energy efficiency under FHA mortgage insurance programs and Native American and Native Hawaiian loan guarantee programs.

    ‘‘Sec. 543. Consideration of energy efficiency. Sec. 289. Energy-efficient mortgages and location-efficient mortgages education

    and outreach campaign. Sec. 290. Collection of information on energy-efficient and location-efficient

    mortgages through Home Mortgage Disclosure Act. Sec. 291. Ensuring availability of homeowners insurance for homes not con-

    nected to electricity grid. Sec. 292. Mortgage incentives for energy-efficient multifamily housing. Sec. 293. Energy-efficient certifications for manufactured housing with mort-

    gages.

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    •HR 2454 EH

    Sec. 294. Assisted housing energy loan pilot program. Sec. 295. Making it green. Sec. 296. Residential energy efficiency block grant program.

    ‘‘Sec. 123. Residential energy efficiency block grant program. Sec. 297. Including sustainable development and transportation strategies in

    comprehensive housing affordability strategies. Sec. 298. Grant program to increase sustainable low-income community devel-

    opment capacity. Sec. 299. HOPE VI green developments requirement. Sec. 299A. Consideration of energy efficiency improvements in appraisals. Sec. 299B. Housing Assistance Council. Sec. 299C. Rural housing and economic development assistance. Sec. 299D. Loans to States and Indian tribes to carry out renewable energy

    sources activities. Sec. 299E. Green banking centers. Sec. 299F. GAO reports on availability of affordable mortgages. Sec. 299G. Public housing energy cost report. Sec. 299H. Secondary market for residential renewable energy lease instru-

    ments. Sec. 299I. Green guarantees.

    TITLE III—REDUCING GLOBAL WARMING POLLUTION

    Sec. 301. Short title.

    Subtitle A—Reducing Global Warming Pollution

    Sec. 311. Reducing global warming pollution.

    ‘‘TITLE VII—GLOBAL WARMING POLLUTION REDUCTION PROGRAM

    ‘‘PART A—GLOBAL WARMING POLLUTION REDUCTION GOALS AND TARGETS

    ‘‘Sec. 701. Findings and purpose. ‘‘Sec. 702. Economy-wide reduction goals. ‘‘Sec. 703. Reduction targets for specified sources. ‘‘Sec. 704. Supplemental pollution reductions. ‘‘Sec. 705. Review and program recommendations. ‘‘Sec. 706. National Academy review. ‘‘Sec. 707. Presidential response and recommendations.

    ‘‘PART B—DESIGNATION AND REGISTRATION OF GREENHOUSE GASES

    ‘‘Sec. 711. Designation of greenhouse gases. ‘‘Sec. 712. Carbon dioxide equivalent value of greenhouse gases. ‘‘Sec. 713. Greenhouse gas registry.

    ‘‘PART C—PROGRAM RULES

    ‘‘Sec. 721. Emission allowances. ‘‘Sec. 722. Prohibition of excess emissions. ‘‘Sec. 723. Penalty for noncompliance. ‘‘Sec. 724. Trading. ‘‘Sec. 725. Banking and borrowing. ‘‘Sec. 726. Strategic reserve. ‘‘Sec. 727. Permits. ‘‘Sec. 728. International emission allowances.

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    ‘‘PART D—OFFSETS

    ‘‘Sec. 731. Offsets Integrity Advisory Board. ‘‘Sec. 732. Establishment of offsets program. ‘‘Sec. 733. Eligible project types. ‘‘Sec. 734. Requirements for offset projects. ‘‘Sec. 735. Approval of offset projects. ‘‘Sec. 736. Verification of offset projects. ‘‘Sec. 737. Issuance of offset credits. ‘‘Sec. 738. Audits. ‘‘Sec. 739. Program review and revision. ‘‘Sec. 740. Early offset supply. ‘‘Sec. 741. Environmental considerations. ‘‘Sec. 742. Trading. ‘‘Sec. 743. International offset credits.

    ‘‘PART E—SUPPLEMENTAL EMISSIONS REDUCTIONS FROM REDUCED DEFORESTATION

    ‘‘Sec. 751. Definitions. ‘‘Sec. 752. Findings. ‘‘Sec. 753. Supplemental emissions reductions through reduced deforest-

    ation. ‘‘Sec. 754. Requirements for international deforestation reduction pro-

    gram. ‘‘Sec. 755. Reports and reviews. ‘‘Sec. 756. Legal effect of part.

    Sec. 312. Definitions. ‘‘Sec. 700. Definitions.

    Subtitle B—Disposition of Allowances

    Sec. 321. Disposition of allowances for global warming pollution reduction pro-gram.

    ‘‘PART H—DISPOSITION OF ALLOWANCES

    ‘‘Sec. 781. Allocation of allowances for supplemental reductions. ‘‘Sec. 782. Allocation of emission allowances. ‘‘Sec. 783. Electricity consumers. ‘‘Sec. 784. Natural gas consumers. ‘‘Sec. 785. Home heating oil, propane, and kerosene consumers. ‘‘Sec. 787. Allocations to refineries. ‘‘Sec. 788. Supplemental agriculture and renewable energy incentives pro-

    grams. ‘‘Sec. 789. Climate change consumer refunds. ‘‘Sec. 790. Exchange for State-issued allowances. ‘‘Sec. 791. Auction procedures. ‘‘Sec. 792. Auctioning allowances for other entities. ‘‘Sec. 793. Establishment of funds. ‘‘Sec. 794. Oversight of allocations. ‘‘Sec. 795. Exchange for early action offset credits.

    Subtitle C—Additional Greenhouse Gas Standards

    Sec. 331. Greenhouse gas standards.

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    •HR 2454 EH

    ‘‘TITLE VIII—ADDITIONAL GREENHOUSE GAS STANDARDS

    ‘‘Sec. 801. Definitions.

    ‘‘PART A—STATIONARY SOURCE STANDARDS

    ‘‘Sec. 811. Standards of performance.

    ‘‘PART C—EXEMPTIONS FROM OTHER PROGRAMS

    ‘‘Sec. 831. Criteria pollutants. ‘‘Sec. 832. International air pollution. ‘‘Sec. 833. Hazardous air pollutants. ‘‘Sec. 834. New source review. ‘‘Sec. 835. Title V permits.

    Sec. 332. HFC Regulation. ‘‘Sec. 619. Hydrofluorocarbons (HFCs).

    Sec. 333. Black carbon.

    ‘‘PART E—BLACK CARBON

    ‘‘Sec. 851. Black carbon. Sec. 334. States. Sec. 335. State programs.

    ‘‘PART F—MISCELLANEOUS

    ‘‘Sec. 861. State programs. ‘‘Sec. 862. Grants for support of air pollution control programs.

    Sec. 336. Enforcement. Sec. 337. Conforming amendments. Sec. 338. Davis-Bacon compliance. Sec. 339. National strategy for domestic biological carbon sequestration. Sec. 340. Reducing acid rain and mercury pollution.

    Subtitle D—Carbon Market Assurance

    Sec. 341. Carbon market assurance.

    ‘‘PART IV—CARBON MARKET ASSURANCE

    ‘‘Sec. 401. Oversight and assurance of carbon markets. ‘‘Sec. 402. Applicability of Part III provisions. ‘‘Sec. 1041. Fraud and false statements in connection with regulated al-

    lowances. Sec. 342. Carbon derivative markets.

    Subtitle E—Additional Market Assurance

    Sec. 351. Regulation of certain transactions in derivatives involving energy commodities.

    Sec. 352. No effect on authority of the Federal Energy Regulatory Commission. Sec. 353. Inspector General of the Commodity Futures Trading Commission. Sec. 354. Settlement and clearing through registered derivatives clearing orga-

    nizations. Sec. 355. Limitation on eligibility to purchase a credit default swap. Sec. 356. Transaction fees. Sec. 357. No effect on antitrust law or authority of the Federal Trade Commis-

    sion.

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    Sec. 358. Effect of derivatives regulatory reform legislation. Sec. 359. Cease-and-desist authority. Sec. 360. Presidential review of regulations.

    TITLE IV—TRANSITIONING TO A CLEAN ENERGY ECONOMY

    Subtitle A—Ensuring Real Reductions in Industrial Emissions

    Sec. 401. Ensuring real reductions in industrial emissions.

    ‘‘PART F—ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS

    ‘‘Sec. 761. Purposes. ‘‘Sec. 762. Definitions.

    ‘‘SUBPART 1—EMISSION ALLOWANCE REBATE PROGRAM

    ‘‘Sec. 763. Eligible industrial sectors. ‘‘Sec. 764. Distribution of emission allowance rebates.

    ‘‘SUBPART 2—PROMOTING INTERNATIONAL REDUCTIONS IN INDUSTRIAL EMISSIONS

    ‘‘Sec. 765. International negotiations. ‘‘Sec. 766. United States negotiating objectives with respect to multilateral

    environmental negotiations. ‘‘Sec. 767. Presidential reports and determinations. ‘‘Sec. 768. International reserve allowance program. ‘‘Sec. 769. Iron and steel sector.

    Subtitle B—Green Jobs and Worker Transition

    PART 1—GREEN JOBS

    Sec. 421. Clean energy curriculum development grants. Sec. 422. Increased funding for energy worker training program. Sec. 423. Development of Information and Resources clearinghouse for voca-

    tional education and job training in renewable energy sectors. Sec. 424. Monitoring program effectiveness. Sec. 424A. Green construction careers demonstration project.

    PART 2—CLIMATE CHANGE WORKER ADJUSTMENT ASSISTANCE

    Sec. 425. Petitions, eligibility requirements, and determinations. Sec. 426. Program benefits. Sec. 427. General provisions.

    Subtitle C—Consumer Assistance

    Sec. 431. Energy refund program.

    ‘‘TITLE XXII—ENERGY REFUND PROGRAM

    ‘‘Sec. 2201. Energy refund program. Sec. 432. Modification of earned income credit amount for individuals with no

    qualifying children. Sec. 433. Protection of Social Security and Medicare trust funds.

    Subtitle D—Exporting Clean Technology

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    Sec. 441. Findings and purposes. Sec. 442. Definitions. Sec. 443. Governance. Sec. 444. Determination of eligible countries. Sec. 445. Qualifying activities. Sec. 446. Assistance.

    Subtitle E—Adapting to Climate Change

    PART 1—DOMESTIC ADAPTATION

    SUBPART A—NATIONAL CLIMATE CHANGE ADAPTATION PROGRAM

    Sec. 451. Global change research and data management. Sec. 452. National Climate Service. Sec. 453. State programs to build resilience to climate change impacts.

    SUBPART B—PUBLIC HEALTH AND CLIMATE CHANGE

    Sec. 461. Sense of Congress on public health and climate change. Sec. 462. Relationship to other laws. Sec. 463. National strategic action plan. Sec. 464. Advisory board. Sec. 465. Reports. Sec. 466. Definitions. Sec. 467. Climate Change Health Protection and Promotion Fund.

    SUBPART C—NATURAL RESOURCE ADAPTATION

    Sec. 471. Purposes. Sec. 472. Natural resources climate change adaptation policy. Sec. 473. Definitions. Sec. 474. Council on Environmental Quality. Sec. 475. Natural Resources Climate Change Adaptation Panel. Sec. 476. Natural Resources Climate Change Adaptation Strategy. Sec. 477. Natural resources adaptation science and information. Sec. 478. Federal natural resource agency adaptation plans. Sec. 479. State natural resources adaptation plans. Sec. 480. Natural Resources Climate Change Adaptation Fund. Sec. 481. National Wildlife Habitat and Corridors Information Program. Sec. 482. Additional provisions regarding Indian tribes.

    PART 2—INTERNATIONAL CLIMATE CHANGE ADAPTATION PROGRAM

    Sec. 491. Findings and purposes. Sec. 492. Definitions. Sec. 493. International Climate Change Adaptation Program. Sec. 494. Distribution of allowances. Sec. 495. Bilateral assistance.

    TITLE V—AGRICULTURAL AND FORESTRY RELATED OFFSETS

    Subtitle A—Offset Credit Program From Domestic Agricultural and Forestry Sources

    Sec. 501. Definitions. Sec. 502. Establishment of offset credit program from domestic agricultural

    and forestry sources.

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    Sec. 503. List of eligible domestic agricultural and forestry offset practice types.

    Sec. 504. Requirements for domestic agricultural and forestry practices. Sec. 505. Project plan submission and approval. Sec. 506. Verification of offset practices. Sec. 507. Certification of offset credits. Sec. 508. Ownership and transfer of offset credits. Sec. 509. Program review and revision. Sec. 510. Environmental considerations. Sec. 511. Audits.

    Subtitle B—USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee

    Sec. 531. Establishment of USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee.

    Subtitle C—Miscellaneous

    Sec. 551. International indirect land use changes. Sec. 552. Biomass-based diesel. Sec. 553. Modification of definition of renewable biomass.

    SEC. 2. DEFINITIONS. 1

    For purposes of this Act: 2

    (1) ADMINISTRATOR.—The term ‘‘Adminis-3

    trator’’ means the Administrator of the Environ-4

    mental Protection Agency. 5

    (2) STATE.—The term ‘‘State’’ has the mean-6

    ing given that term in section 302 of the Clean Air 7

    Act. 8

    SEC. 3. INTERNATIONAL PARTICIPATION. 9

    The Administrator, in consultation with the Depart-10

    ment of State and the United States Trade Representa-11

    tive, shall annually prepare and certify a report to the 12

    Congress regarding whether China and India have adopted 13

    greenhouse gas emissions standards at least as strict as 14

    those standards required under this Act. If the Adminis-15

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    •HR 2454 EH

    trator determines that China and India have not adopted 1

    greenhouse gas emissions standards at least as stringent 2

    as those set forth in this Act, the Administrator shall no-3

    tify each Member of Congress of his determination, and 4

    shall release his determination to the media. 5

    TITLE I—CLEAN ENERGY 6Subtitle A—Combined Efficiency 7

    and Renewable Electricity 8Standard 9

    SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELEC-10

    TRICITY STANDARD. 11

    (a) IN GENERAL.—Title VI of the Public Utility Reg-12

    ulatory Policies Act of 1978 (16 U.S.C. 2601 and fol-13

    lowing) is amended by adding at the end the following: 14

    ‘‘SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELEC-15

    TRICITY STANDARD. 16

    ‘‘(a) DEFINITIONS.—For purposes of this section: 17

    ‘‘(1) CHP SAVINGS.—The term ‘CHP savings’ 18

    means— 19

    ‘‘(A) CHP system savings from a combined 20

    heat and power system that commences oper-21

    ation after the date of enactment of this sec-22

    tion; and 23

    ‘‘(B) the increase in CHP system savings 24

    from, at any time after the date of the enact-25

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    •HR 2454 EH

    ment of this section, upgrading, replacing, ex-1

    panding, or increasing the utilization of a com-2

    bined heat and power system that commenced 3

    operation on or before the date of enactment of 4

    this section. 5

    ‘‘(2) CHP SYSTEM SAVINGS.—The term ‘CHP 6

    system savings’ means the increment of electric out-7

    put of a combined heat and power system that is at-8

    tributable to the higher efficiency of the combined 9

    system (as compared to the efficiency of separate 10

    production of the electric and thermal outputs). 11

    ‘‘(3) COMBINED HEAT AND POWER SYSTEM.— 12

    The term ‘combined heat and power system’ means 13

    a system that uses the same energy source both for 14

    the generation of electrical or mechanical power and 15

    the production of steam or another form of useful 16

    thermal energy, provided that— 17

    ‘‘(A) the system meets such requirements 18

    relating to efficiency and other operating char-19

    acteristics as the Commission may promulgate 20

    by regulation; and 21

    ‘‘(B) the net sales of electricity by the fa-22

    cility to customers not consuming the thermal 23

    output from that facility will not exceed 50 per-24

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    •HR 2454 EH

    cent of total annual electric generation by the 1

    facility. 2

    ‘‘(4) CUSTOMER FACILITY SAVINGS.—The term 3

    ‘customer facility savings’ means a reduction in end- 4

    use electricity consumption (including recycled en-5

    ergy savings) at a facility of an end-use consumer of 6

    electricity served by a retail electric supplier, as 7

    compared to— 8

    ‘‘(A) in the case of a new facility, con-9

    sumption at a reference facility of average effi-10

    ciency; 11

    ‘‘(B) in the case of an existing facility, 12

    consumption at such facility during a base pe-13

    riod, except as provided in subparagraphs (C) 14

    and (D); 15

    ‘‘(C) in the case of new equipment that re-16

    places existing equipment with remaining useful 17

    life, the projected consumption of the existing 18

    equipment for the remaining useful life of such 19

    equipment, and thereafter, consumption of new 20

    equipment of average efficiency of the same 21

    equipment type; and 22

    ‘‘(D) in the case of new equipment that re-23

    places existing equipment at the end of the use-24

    ful life of the existing equipment, consumption 25

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    •HR 2454 EH

    by new equipment of average efficiency of the 1

    same equipment type. 2

    ‘‘(5) DISTRIBUTED RENEWABLE GENERATION 3

    FACILITY.—The term ‘distributed renewable genera-4

    tion facility’ means a facility that— 5

    ‘‘(A) generates renewable electricity; 6

    ‘‘(B) primarily serves 1 or more electricity 7

    consumers at or near the facility site; and 8

    ‘‘(C) is no greater than— 9

    ‘‘(i) 2 megawatts in capacity; or 10

    ‘‘(ii) 4 megawatts in capacity, in the 11

    case of a facility that is placed in service 12

    after the date of enactment of this section 13

    and generates electricity from a renewable 14

    energy resource other than by means of 15

    combustion. 16

    ‘‘(6) ELECTRICITY SAVINGS.—The term ‘elec-17

    tricity savings’ means reductions in electricity con-18

    sumption, relative to business-as-usual projections, 19

    achieved through measures implemented after the 20

    date of enactment of this section, limited to— 21

    ‘‘(A) customer facility savings of elec-22

    tricity, adjusted to reflect any associated in-23

    crease in fuel consumption at the facility; 24

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    •HR 2454 EH

    ‘‘(B) reductions in distribution system 1

    losses of electricity achieved by a retail elec-2

    tricity distributor, as compared to losses attrib-3

    utable to new or replacement distribution sys-4

    tem equipment of average efficiency; 5

    ‘‘(C) CHP savings; and 6

    ‘‘(D) fuel cell savings. 7

    ‘‘(7) CENTRAL PROCUREMENT STATE.—The 8

    term ‘central procurement State’ means a State 9

    that, as of January 1, 2009, had adopted and imple-10

    mented a legally enforceable mandate that, in lieu of 11

    requiring utilities to submit credits or certificates 12

    issued based on generation of electricity from (or to 13

    purchase or generate electricity from) resources de-14

    fined by the State as renewable, requires retail elec-15

    tric suppliers to collect payments from electricity 16

    ratepayers within the State that are used for central 17

    procurement, by a State agency or a public benefit 18

    corporation established pursuant to State law, of 19

    credits or certificates issued based on generation of 20

    electricity from resources defined by the State as re-21

    newable. 22

    ‘‘(8) FEDERAL RENEWABLE ELECTRICITY 23

    CREDIT.—The term ‘Federal renewable electricity 24

    credit’ means a credit, representing one megawatt 25

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    •HR 2454 EH

    hour of renewable electricity, issued pursuant to sub-1

    section (e). 2

    ‘‘(9) FUEL CELL.—The term ‘fuel cell’ means a 3

    device that directly converts the chemical energy of 4

    a fuel and an oxidant into electricity by electro-5

    chemical processes occurring at separate electrodes 6

    in the device. 7

    ‘‘(10) FUEL CELL SAVINGS.—The term ‘fuel 8

    cell savings’ means the electricity saved by a fuel cell 9

    that is installed after the date of enactment of this 10

    section, or by upgrading a fuel cell that commenced 11

    operation on or before the date of enactment of this 12

    section, as a result of the greater efficiency with 13

    which the fuel cell transforms fuel into electricity as 14

    compared with sources of electricity delivered 15

    through the grid, provided that— 16

    ‘‘(A) the fuel cell meets such requirements 17

    relating to efficiency and other operating char-18

    acteristics as the Commission may promulgate 19

    by regulation; and 20

    ‘‘(B) the net sales of electricity from the 21

    fuel cell to customers not consuming the ther-22

    mal output from the fuel cell, if any, do not ex-23

    ceed 50 percent of the total annual electricity 24

    generation by the fuel cell. 25

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    •HR 2454 EH

    ‘‘(11) OTHER QUALIFYING ENERGY RE-1

    SOURCE.—The term ‘other qualifying energy re-2

    source’ means any of the following: 3

    ‘‘(A) Landfill gas. 4

    ‘‘(B) Wastewater treatment gas. 5

    ‘‘(C) Coal mine methane used to generate 6

    electricity at or near the mine mouth. 7

    ‘‘(D) Qualified waste-to-energy. 8

    ‘‘(12) QUALIFIED HYDROPOWER.—The term 9

    ‘qualified hydropower’ means— 10

    ‘‘(A) energy produced from increased effi-11

    ciency achieved, or additions of capacity made, 12

    on or after January 1, 1988, at a hydroelectric 13

    facility that was placed in service before that 14

    date and does not include additional energy 15

    generated as a result of operational changes not 16

    directly associated with efficiency improvements 17

    or capacity additions; or 18

    ‘‘(B) energy produced from generating ca-19

    pacity added to a dam on or after January 1, 20

    1988, provided that the Commission certifies 21

    that— 22

    ‘‘(i) the dam was placed in service be-23

    fore the date of the enactment of this sec-24

    tion and was operated for flood control, 25

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    •HR 2454 EH

    navigation, or water supply purposes and 1

    was not producing hydroelectric power 2

    prior to the addition of such capacity; 3

    ‘‘(ii) the hydroelectric project installed 4

    on the dam is licensed (or is exempt from 5

    licensing) by the Commission and is in 6

    compliance with the terms and conditions 7

    of the license or exemption, and with other 8

    applicable legal requirements for the pro-9

    tection of environmental quality, including 10

    applicable fish passage requirements; and 11

    ‘‘(iii) the hydroelectric project in-12

    stalled on the dam is operated so that the 13

    water surface elevation at any given loca-14

    tion and time that would have occurred in 15

    the absence of the hydroelectric project is 16

    maintained, subject to any license or ex-17

    emption requirements that require changes 18

    in water surface elevation for the purpose 19

    of improving the environmental quality of 20

    the affected waterway. 21

    ‘‘(13) QUALIFIED WASTE-TO-ENERGY.—The 22

    term ‘qualified waste-to-energy’ means energy from 23

    the combustion of municipal solid waste or construc-24

    tion, demolition, or disaster debris, or from the gas-25

  • 20

    •HR 2454 EH

    ification or pyrolization of such waste or debris and 1

    the combustion of the resulting gas at the same fa-2

    cility, provided that— 3

    ‘‘(A) such term shall include only the en-4

    ergy derived from the non-fossil biogenic por-5

    tion of such waste or debris; 6

    ‘‘(B) the Commission determines, with the 7

    concurrence of the Administrator of the Envi-8

    ronmental Protection Agency, that the total 9

    lifecycle greenhouse gas emissions attributable 10

    to the generation of electricity from such waste 11

    or debris are lower than those attributable to 12

    the likely alternative method of disposing of 13

    such waste or debris; and 14

    ‘‘(C) the owner or operator of the facility 15

    generating electricity from such energy provides 16

    to the Commission, on an annual basis— 17

    ‘‘(i) a certification that the facility is 18

    in compliance with all applicable State, 19

    tribal, and Federal environmental permits; 20

    ‘‘(ii) in the case of a facility that com-21

    menced operation before the date of enact-22

    ment of this section, a certification that 23

    the facility meets emissions standards pro-24

    mulgated under section 112 or 129 of the 25

  • 21

    •HR 2454 EH

    Clean Air Act (42 U.S.C. 7412 or 7429) 1

    that apply as of the date of enactment of 2

    this section to new facilities within the rel-3

    evant source category; and 4

    ‘‘(iii) in the case of the combustion, 5

    pyrolization, or gasification of municipal 6

    solid waste, a certification that each local 7

    government unit from which such waste 8

    originates operates, participates in the op-9

    eration of, contracts for, or otherwise pro-10

    vides for, recycling services for its resi-11

    dents. 12

    ‘‘(14) RECYCLED ENERGY SAVINGS.—The term 13

    ‘recycled energy savings’ means a reduction in elec-14

    tricity consumption that results from a modification 15

    of an industrial or commercial system that com-16

    menced operation before the date of enactment of 17

    this section, in order to recapture electrical, mechan-18

    ical, or thermal energy that would otherwise be 19

    wasted. 20

    ‘‘(15) RENEWABLE BIOMASS.—The term ‘re-21

    newable biomass’ means any of the following: 22

    ‘‘(A) Materials, pre-commercial thinnings, 23

    or removed invasive species from National For-24

    est System land and public lands (as defined in 25

  • 22

    •HR 2454 EH

    section 103 of the Federal Land Policy and 1

    Management Act of 1976 (43 U.S.C. 1702)), 2

    including those that are byproducts of preven-3

    tive treatments (such as trees, wood, brush, 4

    thinnings, chips, and slash), that are removed 5

    as part of a federally recognized timber sale, or 6

    that are removed to reduce hazardous fuels, to 7

    reduce or contain disease or insect infestation, 8

    or to restore ecosystem health, and that are— 9

    ‘‘(i) not from components of the Na-10

    tional Wilderness Preservation System, 11

    Wilderness Study Areas, Inventoried 12

    Roadless Areas, old growth stands, late- 13

    successional stands (except for dead, se-14

    verely damaged, or badly infested trees), 15

    components of the National Landscape 16

    Conservation System, National Monu-17

    ments, National Conservation Areas, Des-18

    ignated Primitive Areas, or Wild and Sce-19

    nic Rivers corridors; 20

    ‘‘(ii) harvested in environmentally sus-21

    tainable quantities, as determined by the 22

    appropriate Federal land manager; and 23

  • 23

    •HR 2454 EH

    ‘‘(iii) harvested in accordance with 1

    Federal and State law, and applicable land 2

    management plans. 3

    ‘‘(B) Any organic matter that is available 4

    on a renewable or recurring basis from non- 5

    Federal land or land belonging to an Indian or 6

    Indian tribe that is held in trust by the United 7

    States or subject to a restriction against alien-8

    ation imposed by the United States, including— 9

    ‘‘(i) renewable plant material, includ-10

    ing— 11

    ‘‘(I) feed grains; 12

    ‘‘(II) other agricultural commod-13

    ities; 14

    ‘‘(III) other plants and trees; and 15

    ‘‘(IV) algae; and 16

    ‘‘(ii) waste material, including— 17

    ‘‘(I) crop residue; 18

    ‘‘(II) other vegetative waste ma-19

    terial (including wood waste and wood 20

    residues); 21

    ‘‘(III) animal waste and byprod-22

    ucts (including fats, oils, greases, and 23

    manure); 24

    ‘‘(IV) construction waste; and 25

  • 24

    •HR 2454 EH

    ‘‘(V) food waste and yard waste. 1

    ‘‘(C) Residues and byproducts from wood, 2

    pulp, or paper products facilities. 3

    ‘‘(16) RENEWABLE ELECTRICITY.—The term 4

    ‘renewable electricity’ means electricity generated 5

    (including by means of a fuel cell) from a renewable 6

    energy resource or other qualifying energy resources. 7

    ‘‘(17) RENEWABLE ENERGY RESOURCE.—The 8

    term ‘renewable energy resource’ means each of the 9

    following: 10

    ‘‘(A) Wind energy. 11

    ‘‘(B) Solar energy. 12

    ‘‘(C) Geothermal energy. 13

    ‘‘(D) Renewable biomass. 14

    ‘‘(E) Biogas derived exclusively from re-15

    newable biomass. 16

    ‘‘(F) Biofuels derived exclusively from re-17

    newable biomass. 18

    ‘‘(G) Qualified hydropower. 19

    ‘‘(H) Marine and hydrokinetic renewable 20

    energy, as that term is defined in section 632 21

    of the Energy Independence and Security Act 22

    of 2007 (42 U.S.C. 17211). 23

    ‘‘(18) RETAIL ELECTRIC SUPPLIER.— 24

  • 25

    •HR 2454 EH

    ‘‘(A) IN GENERAL.—The term ‘retail elec-1

    tric supplier’ means, for any given year, an 2

    electric utility that sold not less than 4,000,000 3

    megawatt hours of electric energy to electric 4

    consumers for purposes other than resale dur-5

    ing the preceding calendar year. 6

    ‘‘(B) INCLUSIONS AND LIMITATIONS.—For 7

    purposes of determining whether an electric 8

    utility qualifies as a retail electric supplier 9

    under subparagraph (A)— 10

    ‘‘(i) the sales of any affiliate of an 11

    electric utility to electric consumers, other 12

    than sales to the affiliate’s lessees or ten-13

    ants, for purposes other than resale shall 14

    be considered to be sales of such electric 15

    utility; and 16

    ‘‘(ii) sales by any electric utility to an 17

    affiliate, lessee, or tenant of such electric 18

    utility shall not be treated as sales to elec-19

    tric consumers. 20

    ‘‘(C) AFFILIATE.—For purposes of this 21

    paragraph, the term ‘affiliate’ when used in re-22

    lation to a person, means another person that 23

    directly or indirectly owns or controls, is owned 24

    or controlled by, or is under common ownership 25

  • 26

    •HR 2454 EH

    or control with, such person, as determined 1

    under regulations promulgated by the Commis-2

    sion. 3

    ‘‘(19) RETAIL ELECTRIC SUPPLIER’S BASE 4

    AMOUNT.—The term ‘retail electric supplier’s base 5

    amount’ means the total amount of electric energy 6

    sold by the retail electric supplier, expressed in 7

    megawatt hours, to electric customers for purposes 8

    other than resale during the relevant calendar year, 9

    excluding— 10

    ‘‘(A) electricity generated by a hydro-11

    electric facility that is not qualified hydropower; 12

    ‘‘(B) electricity generated by a nuclear 13

    generating unit placed in service after the date 14

    of enactment of this section; and 15

    ‘‘(C) the proportion of electricity generated 16

    by a fossil-fueled generating unit that is equal 17

    to the proportion of greenhouse gases produced 18

    by such unit that are captured and geologically 19

    sequestered. 20

    ‘‘(20) RETIRE AND RETIREMENT.—The terms 21

    ‘retire’ and ‘retirement’ with respect to a Federal re-22

    newable electricity credit, means to disqualify such 23

    credit for any subsequent use under this section, re-24

    gardless of whether the use is a sale, transfer, ex-25

  • 27

    •HR 2454 EH

    change, or submission in satisfaction of a compliance 1

    obligation. 2

    ‘‘(21) THIRD-PARTY EFFICIENCY PROVIDER.— 3

    The term ‘third-party efficiency provider’ means any 4

    retailer, building owner, energy service company, fi-5

    nancial institution or other commercial, industrial or 6

    nonprofit entity that is capable of providing elec-7

    tricity savings in accordance with the requirements 8

    of this section. 9

    ‘‘(22) TOTAL ANNUAL ELECTRICITY SAVINGS.— 10

    The term ‘total annual electricity savings’ means 11

    electricity savings during a specified calendar year 12

    from measures implemented since the date of the en-13

    actment of this section, taking into account verified 14

    measure lifetimes or verified annual savings attrition 15

    rates, as determined in accordance with such regula-16

    tions as the Commission may promulgate and meas-17

    ured in megawatt hours. 18

    ‘‘(b) ANNUAL COMPLIANCE OBLIGATION.— 19

    ‘‘(1) IN GENERAL.—For each of calendar years 20

    2012 through 2039, not later than March 31 of the 21

    following calendar year, each retail electric supplier 22

    shall submit to the Commission an amount of Fed-23

    eral renewable electricity credits and demonstrated 24

    total annual electricity savings that, in the aggre-25

  • 28

    •HR 2454 EH

    gate, is equal to such retail electric supplier’s annual 1

    combined target as set forth in subsection (d), ex-2

    cept as otherwise provided in subsection (h). 3

    ‘‘(2) DEMONSTRATION OF SAVINGS.—For pur-4

    poses of this subsection, submission of demonstrated 5

    total annual electricity savings means submission of 6

    a report that demonstrates, in accordance with the 7

    requirements of subsection (f), the total annual elec-8

    tricity savings achieved by the retail electric supplier 9

    within the relevant compliance year. 10

    ‘‘(3) RENEWABLE ELECTRICITY CREDITS POR-11

    TION.—Except as provided in paragraph (4), each 12

    retail electric supplier must submit Federal renew-13

    able electricity credits equal to at least three quar-14

    ters of the retail electric supplier’s annual combined 15

    target. 16

    ‘‘(4) STATE PETITION.— 17

    ‘‘(A) IN GENERAL.—Upon written request 18

    from the Governor of any State (including, for 19

    purposes of this paragraph, the Mayor of the 20

    District of Columbia), the Commission shall in-21

    crease, to not more than two fifths, the propor-22

    tion of the annual combined targets of retail 23

    electric suppliers located within such State that 24

    may be met through submission of dem-25

  • 29

    •HR 2454 EH

    onstrated total annual electricity savings, pro-1

    vided that such increase shall be effective only 2

    with regard to the portion of a retail electric 3

    supplier’s annual combined target that is attrib-4

    utable to electricity sales within such State. 5

    ‘‘(B) CONTENTS.—A Governor’s request 6

    under this paragraph shall include an expla-7

    nation of the Governor’s rationale for deter-8

    mining, after consultation with the relevant 9

    State regulatory authority and other retail elec-10

    tricity ratemaking authorities within the State, 11

    to make such request. The request shall specify 12

    the maximum proportion of annual combined 13

    targets (not more than two fifths) that can be 14

    met through demonstrated total annual elec-15

    tricity savings, and the period for which such 16

    proportion shall be effective. 17

    ‘‘(C) REVISION.—The Governor of any 18

    State may, after consultation with the relevant 19

    State regulatory authority and other retail elec-20

    tricity ratemaking authorities within the State, 21

    submit a written request for revocation or revi-22

    sion of a previous request submitted under this 23

    paragraph. The Commission shall grant such 24

    request, provided that— 25

  • 30

    •HR 2454 EH

    ‘‘(i) any revocation or revision shall 1

    not apply to the combined annual target 2

    for any year that is any earlier than 2 cal-3

    endar years after the calendar year in 4

    which such request is submitted, so as to 5

    provide retail electric suppliers with ade-6

    quate notice of such change; and 7

    ‘‘(ii) any revision shall meet the re-8

    quirements of subparagraph (A). 9

    ‘‘(c) ESTABLISHMENT OF PROGRAM.—Not later than 10

    1 year after the date of enactment of this section, the 11

    Commission shall promulgate regulations to implement 12

    and enforce the requirements of this section. In promul-13

    gating such regulations, the Commission shall, to the ex-14

    tent practicable— 15

    ‘‘(1) preserve the integrity, and incorporate best 16

    practices, of existing State and tribal renewable elec-17

    tricity and energy efficiency programs; 18

    ‘‘(2) rely upon existing and emerging State, 19

    tribal, or regional tracking systems that issue and 20

    track non-Federal renewable electricity credits; and 21

    ‘‘(3) cooperate with the States and Indian 22

    tribes to facilitate coordination between State, tribal, 23

    and Federal renewable electricity and energy effi-24

  • 31

    •HR 2454 EH

    ciency programs and to minimize administrative bur-1

    dens and costs to retail electric suppliers. 2

    ‘‘(d) ANNUAL COMPLIANCE REQUIREMENT.— 3

    ‘‘(1) ANNUAL COMBINED TARGETS.—For each 4

    of calendar years 2012 through 2039, a retail elec-5

    tric supplier’s annual combined target shall be the 6

    product of— 7

    ‘‘(A) the required annual percentage for 8

    such year, as set forth in paragraph (2); and 9

    ‘‘(B) the retail electric supplier’s base 10

    amount for such year. 11

    ‘‘(2) REQUIRED ANNUAL PERCENTAGE.—For 12

    each of calendar years 2012 through 2039, the re-13

    quired annual percentage shall be as follows: 14

    ‘‘Calendar year Required annual percentage

    2012 ............................................................................... 6.0 2013 ............................................................................... 6.0 2014 ............................................................................... 9.5 2015 ............................................................................... 9.5 2016 ............................................................................... 13.0 2017 ............................................................................... 13.0 2018 ............................................................................... 16.5 2019 ............................................................................... 16.5 2020 ............................................................................... 20.0 2021 through 2039 ........................................................ 20.0

    ‘‘(e) FEDERAL RENEWABLE ELECTRICITY CRED-15

    ITS.— 16

    ‘‘(1) IN GENERAL.—The regulations promul-17

    gated under this section shall include provisions gov-18

    erning the issuance, tracking, and verification of 19

  • 32

    •HR 2454 EH

    Federal renewable electricity credits. Except as pro-1

    vided in paragraphs (2), (3), and (4) of this sub-2

    section, the Commission shall issue to each gener-3

    ator of renewable electricity, 1 Federal renewable 4

    electricity credit for each megawatt hour of renew-5

    able electricity generated by such generator after 6

    December 31, 2011. The Commission shall assign a 7

    unique serial number to each Federal renewable 8

    electricity credit. 9

    ‘‘(2) GENERATION FROM CERTAIN STATE RE-10

    NEWABLE ELECTRICITY PROGRAMS.—(A) Except as 11

    provided in subparagraph (B), where renewable elec-12

    tricity is generated with the support of payments 13

    from a retail electric supplier pursuant to a State re-14

    newable electricity program (whether through State 15

    alternative compliance payments or through pay-16

    ments to a State renewable electricity procurement 17

    fund or entity), the Commission shall issue Federal 18

    renewable electricity credits to such retail electric 19

    supplier for the proportion of the relevant renewable 20

    electricity generation that is attributable to the retail 21

    electric supplier’s payments, as determined pursuant 22

    to regulations issued by the Commission. For any 23

    remaining portion of the relevant renewable elec-24

    tricity generation, the Commission shall issue Fed-25

  • 33

    •HR 2454 EH

    eral renewable electricity credits to the generator, as 1

    provided in paragraph (1), except that in no event 2

    shall more than 1 Federal renewable electricity cred-3

    it be issued for the same megawatt hour of elec-4

    tricity. In determining how Federal renewable elec-5

    tricity credits will be apportioned among retail elec-6

    tric suppliers and generators in such circumstances, 7

    the Commission shall consider information and guid-8

    ance furnished by the relevant State or States. 9

    ‘‘(B) In the case of a central procurement State 10

    that pursuant to subsection (g) has assumed respon-11

    sibility for compliance with the requirements of sub-12

    section (b), the Commission shall issue directly to 13

    the State Federal renewable electricity credits for 14

    any renewable electricity for which the State, pursu-15

    ant to a mandate described in subsection (a)(7), has 16

    centrally procured credits or certificates issued based 17

    on generation of such renewable electricity. 18

    ‘‘(3) CERTAIN POWER SALES CONTRACTS.—Ex-19

    cept as otherwise provided in paragraph (2), when a 20

    generator has sold renewable electricity to a retail 21

    electric supplier under a contract for power from a 22

    facility placed in service before the date of enact-23

    ment of this section, and the contract does not pro-24

    vide for the determination of ownership of the Fed-25

  • 34

    •HR 2454 EH

    eral renewable electricity credits associated with 1

    such generation, the Commission shall issue such 2

    Federal renewable electricity credits to the retail 3

    electric supplier for the duration of the contract. 4

    ‘‘(4) CREDIT MULTIPLIER FOR DISTRIBUTED 5

    RENEWABLE GENERATION.— 6

    ‘‘(A) IN GENERAL.—Except as provided in 7

    subparagraph (B), the Commission shall issue 3 8

    Federal renewable electricity credits for each 9

    megawatt hour of renewable electricity gen-10

    erated by a distributed renewable generation fa-11

    cility. 12

    ‘‘(B) ADJUSTMENT.—Except as provided 13

    in subparagraph (C), not later than January 1, 14

    2014, and not less frequently than every 4 15

    years thereafter, the Commission shall review 16

    the effect of this paragraph and shall, as nec-17

    essary, reduce the number of Federal renewable 18

    electricity credits per megawatt hour issued 19

    under this paragraph for any given energy 20

    source or technology, but not below 1, to ensure 21

    that such number is no higher than the Com-22

    mission determines is necessary to make dis-23

    tributed renewable generation facilities using 24

    such source or technology cost competitive with 25

  • 35

    •HR 2454 EH

    other sources of renewable electricity genera-1

    tion. 2

    ‘‘(C) FACILITIES PLACED IN SERVICE 3

    AFTER ENACTMENT.—For any distributed re-4

    newable generation facility placed in service 5

    after the date of enactment of this section, sub-6

    paragraph (B) shall not apply for the first 10 7

    years after the date on which the facility is 8

    placed in service. For each year during such 10- 9

    year period, the Commission shall issue to the 10

    facility the same number of Federal renewable 11

    electricity credits per megawatt hour as are 12

    issued to that facility in the year in which such 13

    facility is placed in service. After such 10-year 14

    period, the Commission shall issue Federal re-15

    newable electricity credits to the facility in ac-16

    cordance with the current multiplier as deter-17

    mined pursuant to subparagraph (B). 18

    ‘‘(5) CREDITS BASED ON QUALIFIED HYDRO-19

    POWER.—For purposes of this subsection, the num-20

    ber of Federal renewable electricity credits issued for 21

    qualified hydropower shall be calculated— 22

    ‘‘(A) based solely on the increase in aver-23

    age annual generation directly resulting from 24

  • 36

    •HR 2454 EH

    the efficiency improvements or capacity addi-1

    tions described in subsection (a)(13)(A); and 2

    ‘‘(B) using the same water flow informa-3

    tion used to determine a historic average an-4

    nual generation baseline for the hydroelectric 5

    facility, as certified by the Commission. 6

    ‘‘(6) GENERATION FROM QUALIFIED WASTE-TO- 7

    ENERGY.—In the case of electricity generated from 8

    the combustion of any municipal solid waste or con-9

    struction, demolition, or disaster debris that is in-10

    cluded in the definition of renewable biomass, or 11

    from the gasification or pyrolization of such waste or 12

    debris and the combustion of the resulting gas at 13

    the same facility, the Commission shall issue Federal 14

    renewable electricity credits only for electricity gen-15

    erated from qualified waste-to-energy. 16

    ‘‘(7) GENERATION FROM MIXED RENEWABLE 17

    AND NONRENEWABLE RESOURCES.—If electricity is 18

    generated using both a renewable energy resource or 19

    other qualifying energy resource and an energy 20

    source that is not a renewable energy resource or 21

    other qualifying energy resource (as, for example, in 22

    the case of co-firing of renewable biomass and fossil 23

    fuel), the Commission shall issue Federal renewable 24

    electricity credits based on the proportion of the 25

  • 37

    •HR 2454 EH

    electricity that is attributable to the renewable en-1

    ergy resource or other qualifying energy resource. 2

    ‘‘(8) PROHIBITION AGAINST DOUBLE-COUNT-3

    ING.—Except as provided in paragraph (4) of this 4

    subsection, the Commission shall ensure that no 5

    more than 1 Federal renewable electricity credit will 6

    be issued for any megawatt hour of renewable elec-7

    tricity and that no Federal renewable electricity 8

    credit will be used more than once for compliance 9

    with this section. 10

    ‘‘(9) TRADING.—The lawful holder of a Federal 11

    renewable electricity credit may sell, exchange, 12

    transfer, submit for compliance in accordance with 13

    subsection (b), or submit such credit for retirement 14

    by the Commission. 15

    ‘‘(10) BANKING.—A Federal renewable elec-16

    tricity credit may be submitted in satisfaction of the 17

    compliance obligation set forth in subsection (b) for 18

    the compliance year in which the credit was issued 19

    or for any of the 3 immediately subsequent compli-20

    ance years. The Commission shall retire any Federal 21

    renewable electricity credit that has not been retired 22

    by April 2 of the calendar year that is 3 years after 23

    the calendar year in which the credit was issued. 24

  • 38

    •HR 2454 EH

    ‘‘(11) RETIREMENT.—The Commission shall re-1

    tire a Federal renewable electricity credit imme-2

    diately upon submission by the lawful holder of such 3

    credit, whether in satisfaction of a compliance obli-4

    gation under subsection (b) or on some other basis. 5

    ‘‘(f) ELECTRICITY SAVINGS.— 6

    ‘‘(1) STANDARDS FOR MEASUREMENT OF SAV-7

    INGS.—As part of the regulations promulgated 8

    under this section, the Commission shall prescribe 9

    standards and protocols for defining and measuring 10

    electricity savings and total annual electricity sav-11

    ings that can be counted towards the compliance ob-12

    ligation set forth in subsection (b). Such protocols 13

    and standards shall, at minimum— 14

    ‘‘(A) specify the types of energy efficiency 15

    and energy conservation measures that can be 16

    counted; 17

    ‘‘(B) require that energy consumption esti-18

    mates for customer facilities or portions of fa-19

    cilities in the applicable base and current years 20

    be adjusted, as appropriate, to account for 21

    changes in weather, level of production, and 22

    building area; 23

    ‘‘(C) account for the useful life of meas-24

    ures; 25

  • 39

    •HR 2454 EH

    ‘‘(D) include deemed savings values for 1

    specific, commonly used measures; 2

    ‘‘(E) allow for savings from a program to 3

    be estimated based on extrapolation from a rep-4

    resentative sample of participating customers; 5

    ‘‘(F) include procedures for counting CHP 6

    savings, recycled energy savings, and fuel cell 7

    savings; 8

    ‘‘(G) include procedures for documenting 9

    measurable and verifiable electricity savings 10

    achieved as a result of market transformation 11

    efforts; 12

    ‘‘(H) include procedures for counting elec-13

    tricity savings achieved by solar water heating 14

    and solar light pipe technology that has the ca-15

    pability to provide measurable data on the 16

    amount of megawatt-hours displaced; 17

    ‘‘(I) avoid double-counting of savings used 18

    for compliance with this section, including sav-19

    ings that are transferred pursuant to paragraph 20

    (3); 21

    ‘‘(J) ensure that, except as provided in 22

    subparagraph (L), the retail electric supplier 23

    claiming the savings played a significant role in 24

    achieving the savings (including through the ac-25

  • 40

    •HR 2454 EH

    tivities of a designated agent of the supplier or 1

    through the purchase of transferred savings); 2

    ‘‘(K) include savings from programs ad-3

    ministered by a retail electric supplier (or a re-4

    tail electricity distributor that is not a retail 5

    electric supplier) that are funded by State, Fed-6

    eral, or other sources; 7

    ‘‘(L) in any State in which the State regu-8

    latory authority has designated 1 or more enti-9

    ties to administer electric ratepayer-funded effi-10

    ciency programs approved by such State regu-11

    latory authority, provide that electricity savings 12

    achieved through such programs shall be dis-13

    tributed equitably among retail electric sup-14

    pliers in accordance with the direction of the 15

    relevant State regulatory authority; and 16

    ‘‘(M) exclude savings achieved as a result 17

    of compliance with mandatory appliance and 18

    equipment efficiency standards or building 19

    codes. 20

    ‘‘(2) STANDARDS FOR THIRD-PARTY 21

    VERIFICATION OF SAVINGS.—The regulations pro-22

    mulgated under this section shall establish proce-23

    dures and standards requiring third-party 24

    verification of all reported electricity savings, includ-25

  • 41

    •HR 2454 EH

    ing requirements for accreditation of third-party 1

    verifiers to ensure that such verifiers are profes-2

    sionally qualified and have no conflicts of interest. 3

    ‘‘(3) TRANSFERS OF SAVINGS.— 4

    ‘‘(A) BILATERAL CONTRACTS FOR SAVINGS 5

    TRANSFERS.—Subject to the limitations of this 6

    paragraph, a retail electric supplier may use 7

    electricity savings transferred, pursuant to a bi-8

    lateral contract, from another retail electric 9

    supplier, an owner of an electric distribution fa-10

    cility that is not a retail electric supplier, a 11

    State, or a third-party efficiency provider to 12

    meet the applicable compliance obligation under 13

    subsection (b). 14

    ‘‘(B) REQUIREMENTS.—Electricity savings 15

    transferred and used for compliance pursuant 16

    to this paragraph shall be— 17

    ‘‘(i) measured and verified in accord-18

    ance with the procedures specified under 19

    this subsection; 20

    ‘‘(ii) reported in accordance with 21

    paragraph (4) of this subsection; and 22

    ‘‘(iii) achieved within the same State 23

    as is served by the retail electric supplier. 24

  • 42

    •HR 2454 EH

    ‘‘(C) REGULATORY APPROVAL.—Nothing 1

    in this paragraph shall limit or affect the au-2

    thority of a State regulatory authority to re-3

    quire a retail electric supplier that is regulated 4

    by such authority to obtain such authority’s au-5

    thorization or approval of a contract for trans-6

    fer of savings under this paragraph. 7

    ‘‘(4) REPORTING SAVINGS.— 8

    ‘‘(A) REQUIREMENTS.—The regulations 9

    promulgated under this section shall establish 10

    requirements governing the submission of re-11

    ports to demonstrate, in accordance with the 12

    protocols and standards for measurement and 13

    third-party verification established under this 14

    subsection, the total annual electricity savings 15

    achieved by a retail electric supplier within the 16

    relevant year. 17

    ‘‘(B) REVIEW AND APPROVAL.—The Com-18

    mission shall review each report submitted to 19

    the Commission by a retail electric supplier and 20

    shall exclude any electricity savings that have 21

    not been adequately demonstrated in accord-22

    ance with the requirements of this subsection. 23

    ‘‘(5) STATE ADMINISTRATION.— 24

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    ‘‘(A) DELEGATION OF AUTHORITY.—Upon 1

    receipt of an application from the Governor of 2

    a State (including, for purposes of this sub-3

    section, the Mayor of the District of Columbia), 4

    the Commission may delegate to the State the 5

    authority to review and verify reported elec-6

    tricity savings for purposes of determining dem-7

    onstrated total annual electricity savings that 8

    may be counted towards a retail electric sup-9

    plier’s compliance obligation under subsection 10

    (b). The Commission shall make a substantive 11

    determination approving or disapproving a 12

    State application under this subparagraph, 13

    after notice and comment, within 180 days of 14

    receipt of a complete application. 15

    ‘‘(B) ALTERNATIVE MEASUREMENT AND 16

    VERIFICATION PROCEDURES AND STAND-17

    ARDS.—As part of an application submitted 18

    under subparagraph (A), a State may request 19

    to use alternative measurement and verification 20

    procedures and standards to those specified in 21

    paragraphs (1) and (2), provided the State 22

    demonstrates that such alternative procedures 23

    and standards provide a level of accuracy of 24

    measurement and verification at least equiva-25

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    •HR 2454 EH

    lent to the Federal procedures and standards 1

    promulgated under paragraphs (1) and (2). 2

    ‘‘(C) REVIEW OF STATE IMPLEMENTA-3

    TION.—The Commission shall, not less fre-4

    quently than once every 4 years, review each 5

    State’s implementation of delegated authority 6

    under this paragraph to ensure conformance 7

    with the requirements of this section. The Com-8

    mission may, at any time, revoke the delegation 9

    of authority under this section upon a finding 10

    that the State is not implementing its delegated 11

    responsibilities in conformity with this para-12

    graph. As a condition of maintaining its dele-13

    gated authority under this paragraph, the Com-14

    mission may require a State to submit a revised 15

    application under subparagraph (A) if the Com-16

    mission has— 17

    ‘‘(i) promulgated new or substantially 18

    revised measurement and verification pro-19

    cedures and standards under this sub-20

    section; or 21

    ‘‘(ii) otherwise substantially revised 22

    the program established under this section. 23

    ‘‘(g) ALTERNATIVE COMPLIANCE PAYMENTS.— 24

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    •HR 2454 EH

    ‘‘(1) IN GENERAL.—A retail electric supplier, or 1

    a central procurement State that, pursuant to sub-2

    section (g), has assumed responsibility for compli-3

    ance with the requirements of subsection (b), may 4

    satisfy the requirements of subsection (b) in whole 5

    or in part by submitting in accordance with this sub-6

    section, in lieu of each Federal renewable electricity 7

    credit or megawatt hour of demonstrated total an-8

    nual electricity savings that would otherwise be due, 9

    a payment equal to $25, adjusted for inflation on 10

    January 1 of each year following calendar year 11

    2009, in accordance with such regulations as the 12

    Commission may promulgate. 13

    ‘‘(2) PAYMENT TO STATE FUNDS.—Except as 14

    otherwise provided in this paragraph and paragraph 15

    (4), payments made under this subsection shall be 16

    made directly to the State or States in which the re-17

    tail electric supplier is located, in proportion to the 18

    portion of the retail electric supplier’s base amount 19

    that is sold within each relevant State, provided that 20

    such payments are deposited directly into a fund in 21

    the State treasury established for this purpose and 22

    that the State uses such funds in accordance with 23

    paragraphs (3) and (5) and with paragraph (4), 24

    where applicable. If the Commission determines at 25

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    •HR 2454 EH

    any time that a State is in substantial noncompli-1

    ance with paragraph (3) or (5), or with paragraph 2

    (4), where applicable, the Commission shall direct 3

    that any future alternative compliance payments 4

    that would otherwise be paid to such State under 5

    this subsection shall instead be paid to the Commis-6

    sion and deposited in the United States Treasury. 7

    ‘‘(3) STATE USE OF FUNDS.—As a condition of 8

    continued receipt of alternative compliance payments 9

    pursuant to this subsection, a State shall use such 10

    payments exclusively for the purposes of— 11

    ‘‘(A) deploying technologies that generate 12

    electricity from renewable energy resources; or 13

    ‘‘(B) implementing cost-effective energy ef-14

    ficiency programs to achieve electricity savings. 15

    ‘‘(4) CENTRAL PROCUREMENT STATES.— 16

    ‘‘(A) IN GENERAL.—A central procurement 17

    State that, pursuant to subsection (g), has as-18

    sumed responsibility for compliance with the re-19

    quirements of subsection (b) shall deposit any 20

    alternative compliance payments under this 21

    subsection in a unique fund in the State treas-22

    ury created and used solely for this purpose. 23

    ‘‘(B) REQUIREMENTS.—As a precondition 24

    of making alternative compliance payments 25

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    •HR 2454 EH

    under this subsection, a central procurement 1

    State shall certify to the Commission, in ac-2

    cordance with such requirements as the Com-3

    mission may prescribe, that— 4

    ‘‘(i) making such payments is the low-5

    est cost alternative to meet the require-6

    ments of subsection (b); and 7

    ‘‘(ii) moneys used by the State to 8

    make such payments are in addition to any 9

    spending that the State, and any separate 10

    entity charged with administering the 11

    State central procurement requirement 12

    identified under subsection (a)(7), other-13

    wise collectively would direct to the pur-14

    poses identified in paragraph (3). 15

    ‘‘(C) USES.—A central procurement State 16

    that makes alternative compliance payments 17

    under this subsection shall certify to the Com-18

    mission that, in using such payments in accord-19

    ance with paragraph (3), it has, to the extent 20

    practicable, maximized the level of deployment 21

    of renewable electricity generation (measured in 22

    megawatt hours) and electricity savings per dol-23

    lar that are achieved through such expendi-24

    tures. 25

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    •HR 2454 EH

    ‘‘(5) REPORTING.—As a condition of continued 1

    receipt of alternative compliance payments pursuant 2

    to this subsection, a State shall, within 12 months 3

    of receipt of any such payments and at 12-month in-4

    tervals thereafter until such payments are expended, 5

    provide a report to the Commission, in accordance 6

    with such regulations as the Commission may pre-7

    scribe, giving a full accounting of the use of such 8

    payments, including a detailed description of the ac-9

    tivities funded thereby and demonstrating compli-10

    ance with the requirements of this subsection. 11

    ‘‘(g) CENTRAL PROCUREMENT STATES.— 12

    ‘‘(1) IN GENERAL.—A central procurement 13

    State may, upon submission of a written request by 14

    the Governor of such State to the Commission, as-15

    sume responsibility for compliance with the require-16

    ments of subsection (b) on behalf of retail electric 17

    suppliers located in such State, exclusively with re-18

    gard to the portion of such retail electric suppliers’ 19

    base amount that is sold within the State. 20

    ‘‘(2) DEMONSTRATION OF ELECTRICITY SAV-21

    INGS.—If a central procurement State opts to meet 22

    any part of the requirements of subsection (b) based 23

    on the achievement of demonstrated total annual 24

    electricity savings, regardless of whether such State 25

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    •HR 2454 EH

    has received delegated authority pursuant to sub-1

    section (f)(5), such State shall submit such dem-2

    onstrated total annual electricity savings to the 3

    Commission through an annual report in accordance 4

    with requirements prescribed by the Commission by 5

    regulation, which shall be of equivalent stringency to 6

    those applicable to retail electric suppliers under 7

    subsection (f). 8

    ‘‘(3) NONCOMPLIANCE.—If a central procure-9

    ment State that pursuant to this subsection has as-10

    sumed responsibility for compliance with the require-11

    ments of subsection (b), fails to satisfy the require-12

    ments of subsection (b) or (h) for any year, the 13

    State’s assumption of responsibility under this sub-14

    section shall be discontinued immediately, and retail 15

    electric suppliers located in such State henceforth 16

    shall be directly subject to the requirements of this 17

    section. 18

    ‘‘(h) INFORMATION COLLECTION.—The Commission 19

    may require any retail electric supplier, renewable elec-20

    tricity generator, or such other entities as the Commission 21

    deems appropriate, to provide any information the Com-22

    mission determines appropriate to carry out this section. 23

    Failure to submit such information or submission of false 24

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    •HR 2454 EH

    or misleading information under this subsection shall be 1

    a violation of this section. 2

    ‘‘(i) ENFORCEMENT AND JUDICIAL REVIEW.— 3

    ‘‘(1) FAILURE TO SUBMIT CREDITS OR DEM-4

    ONSTRATE SAVINGS.—If any person, other than any 5

    central procurement State that pursuant to sub-6

    section (g) has assumed responsibility for compliance 7

    with the requirements of subsection (b), fails to com-8

    ply with the requirements of subsection (b) or (h), 9

    such person shall be liable to pay to the Commission 10

    a civil penalty equal to the product of— 11

    ‘‘(A) double the alternative compliance 12

    payment calculated under subsection (h)(1), 13

    and 14

    ‘‘(B) the aggregate quantity of Federal re-15

    newable electricity credits, total annual elec-16

    tricity savings, or equivalent alternative compli-17

    ance payments that the person failed to submit 18

    in violation of the requirements of subsections 19

    (b) and (h). 20

    ‘‘(2) ENFORCEMENT.—The Commission shall 21

    assess a civil penalty under paragraph (1) in accord-22

    ance with the procedures described in section 31(d) 23

    of the Federal Power Act (16 U.S.C. 823b(d)). 24

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    •HR 2454 EH

    ‘‘(3) VIOLATION OF REQUIREMENT OF REGULA-1

    TIONS OR ORDERS.—Any person, other than any 2

    central procurement State that pursuant to sub-3

    section (g) has assumed responsibility for compliance 4

    with the requirements of subsection (b), who vio-5

    lates, or fails or refuses to comply with, any require-6

    ment of a regulation promulgated or order issued 7

    under this section shall be subject to a civil penalty 8

    under section 316A(b) of the Federal Power Act (16 9

    U.S.C. 825o–1). Such penalty shall be assessed by 10

    the Commission in the same manner as in the case 11

    of a violation referred to in section 316A(b) of such 12

    Act. 13

    ‘‘(j) JUDICIAL REVIEW.—Any person aggrieved by a 14

    final action taken by the Commission under this section, 15

    other than the assessment of a civil penalty under sub-16

    section (j), may use the procedures for review described 17

    in section 313 of the Federal Power Act (16 U.S.C. 825l). 18

    For purposes of this paragraph, references to an order in 19

    section 313 of such Act shall be deemed to refer also to 20

    all other final actions of the Commission under this section 21

    other than the assessment of a civil penalty under sub-22

    section (i). 23

    ‘‘(k) SAVINGS PROVISIONS.—Nothing in this section 24

    shall— 25

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    •HR 2454 EH

    ‘‘(1) diminish or qualify any authority of a 1

    State, a political subdivision of a State, or an Indian 2

    tribe to— 3

    ‘‘(A) adopt or enforce any law or regula-4

    tion respecting renewable electricity or energy 5

    efficiency, including any law or regulation es-6

    tablishing requirements more stringent than 7

    those established by this section, provided that 8

    no such law or regulation may relieve any per-9

    son of any requirement otherwise applicable 10

    under this section; or 11

    ‘‘(B) regulate the acquisition and disposi-12

    tion of Federal renewable electricity credits by 13

    retail electric suppliers within the jurisdiction of 14

    such State, political subdivision, or Indian tribe, 15

    including the authority to require such retail 16

    electric supplier to acquire and submit to the 17

    Secretary for retirement Federal renewable 18

    electricity credits in excess of those submitted 19

    under this section; or 20

    ‘‘(2) affect the application of, or the responsi-21

    bility for compliance with, any other provision of law 22

    or regulation, including environmental and licensing 23

    requirements. 24

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    •HR 2454 EH

    ‘‘(l) SUNSET.—This section expires on December 31, 1

    2040.’’. 2

    (b) CONFORMING AMENDMENT.—The table of con-3

    tents set forth in section 1(b) of the Public Utility Regu-4

    latory Policies Act of 1978 (16 U.S.C. 2601 and following) 5

    is amended by inserting after the item relating to section 6

    609 the following: 7

    ‘‘Sec. 610. Combined efficiency and renewable electricity standard.’’.

    SEC. 102. CLARIFYING STATE AUTHORITY TO ADOPT RE-8

    NEWABLE ENERGY INCENTIVES. 9

    Section 210 of the Public Utility Regulatory Policies 10

    Act of 1978 is amended by adding at the end thereof: 11

    ‘‘(o) CLARIFICATION OF STATE AUTHORITY TO 12

    ADOPT RENEWABLE ENERGY INCENTIVES.—Notwith-13

    standing any other provision of this Act or the Federal 14

    Power Act, a State legislature or regulatory authority may 15

    set the rates for a sale of electric energy by a facility gen-16

    erating electric energy from renewable energy sources pur-17

    suant to a State-approved production incentive program 18

    under which the facility voluntarily sells electric energy. 19

    For purposes of this subsection, ‘State-approved produc-20

    tion incentive program’ means a requirement imposed pur-21

    suant to State law, or by a State regulatory authority act-22

    ing within its authority under State law, that an electric 23

    utility purchase renewable energy (as defined in section 24

    609 of this Act) at a specified rate.’’. 25

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    •HR 2454 EH

    SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES. 1

    (a) REQUIREMENT.—For each of calendar years 2

    2012 through 2039, the President shall ensure that, of 3

    the total amount of electricity Federal agencies consume 4

    in the United States during each calendar year, the fol-5

    lowing percentage shall be renewable electricity: 6

    Calendar year Required annual percentage

    2012 ............................................................................... 6.0 2013 ............................................................................... 6.0 2014 ............................................................................... 9.5 2015 ............................................................................... 9.5 2016 ............................................................................... 13.0 2017 ............................................................................... 13.0 2018 ............................................................................... 16.5 2019 ............................................................................... 16.5 2020 ............................................................................... 20.0 2021 through 2039 ........................................................ 20.0

    (b) DEFINITIONS.—For purposes of this section: 7

    (1) RENEWABLE ELECTRICITY.—The term ‘‘re-8

    newable electricity’’ shall have the meaning given in 9

    section 610 of the Public Utility Regulatory Policies 10

    Act of 1978 (16 U.S.C. 2601 and following). 11

    (2) RENEWABLE ENERGY RESOURCE.—The 12

    term ‘‘renewable energy resource’’ shall have the 13

    meaning given in section 610 of the Public Utility 14

    Regulatory Policies Act of 1978 (16 U.S.C. 2601 15

    and following). 16

    (c) MODIFICATION OF REQUIREMENT.—If the Presi-17

    dent determines that the Federal Government cannot fea-18

    sibly meet the requirement established in subsection (a) 19

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    •HR 2454 EH

    in a specific calendar year, the President may, by written 1

    order, reduce such requirement for such calendar year to 2

    a percentage the President determines the Federal Gov-3

    ernment can feasibly meet. 4

    (d) REPORTS.—Not later than April 1, 2013, and 5

    each year thereafter, the Secretary of Energy shall provide 6

    a report to Congress on the percentage of each Federal 7

    agency’s electricity consumption in the United States that 8

    was renewable electricity in the previous calendar year. 9

    (e) CONTRACTS FOR RENEWABLE ENERGY.—(1) 10

    Notwithstanding section 501(b)(1)(B) of title 40, United 11

    States Code, a contract for the acquisition of electricity 12

    generated from a renewable energy resource for the Fed-13

    eral Government may be made for a period of not more 14

    than 20 years. 15

    (2) Not later than 90 days after the date of enact-16

    ment of this subsection, the Secretary of Energy, through 17

    the Federal Energy Management Program, shall publish 18

    a standardized renewable energy purchase agreement, set-19

    ting forth commercial terms and conditions, that Federal 20

    agencies may use to acquire electricity generated from a 21

    renewable energy resource. 22

    (3) The Secretary of Energy shall provide technical 23

    assistance to assist Federal agencies in implementing this 24

    subsection. 25

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    •HR 2454 EH

    Subtitle B—Carbon Capture and 1Sequestration 2

    SEC. 111. NATIONAL STRATEGY. 3

    (a) IN GENERAL.—Not later than 1 year after the 4

    date of enactment of this Act, the Administrator, in con-5

    sultation with the Secretary of Energy, the Secretary of 6

    the Interior, and the heads of such other relevant Federal 7

    agencies as the President may designate, shall submit to 8

    Congress a report setting forth a unified and comprehen-9

    sive strategy to address the key legal, regulatory and other 10

    barriers to the commercial-scale deployment of carbon 11

    capture and sequestration. 12

    (b) BARRIERS.— The report under this section 13

    shall— 14

    (1) identify those regulatory, legal, and other 15

    gaps and barriers that could be addressed by a Fed-16

    eral agency using existing statutory authority, those, 17

    if any, that require Federal legislation, and those 18

    that would be best addressed at the State, tribal, or 19

    regional level; 20

    (2) identify regulatory implementation chal-21

    lenges, including those related to approval of State 22

    and tribal programs and delegation of authority for 23

    permitting; and 24

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    •HR 2454 EH

    (3) recommend rulemakings, Federal legisla-1

    tion, or other actions that should be taken to further 2

    evaluate and address such barriers. 3

    SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION 4

    SITES. 5

    (a) COORDINATED CERTIFICATION AND PERMITTING 6

    PROCESS.—Title VIII of the Clean Air Act, as added by 7

    section 331 of this Act, is amended by adding after section 8

    812 (as added by section 116 of this Act) the following: 9

    ‘‘SEC. 813. GEOLOGIC SEQUESTRATION SITES. 10

    ‘‘(a) COORDINATED PROCESS.—The Administrator 11

    shall establish a coordinated approach to certifying and 12

    permitting geologic sequestration, taking into consider-13

    ation all relevant statutory authorities. In establishing 14

    such approach, the Administrator shall— 15

    ‘‘(1) take into account, and reduce redundancy 16

    with, the requirements of section 1421 of the Safe 17

    Drinking Water Act (42 U.S.C. 300h), as amended 18

    by section 112(b) of the American Clean Energy and 19

    Security Act of 2009, including the rulemaking for 20

    geologic sequestration wells described at 73 Fed. 21

    Reg. 43491–541 (July 25, 2008); and 22

    ‘‘(2) to the extent practicable, reduce the bur-23

    den on certified entities and implementing authori-24

    ties. 25

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    •HR 2454 EH

    ‘‘(b) REGULATIONS.—Not later than 2 years after 1

    the date of enactment of this title, the Administrator shall 2

    promulgate regulations to protect human health and the 3

    environment by minimizing the risk of escape to the at-4

    mosphere of carbon dioxide injected for purposes of geo-5

    logic sequestration. 6

    ‘‘(c) REQUIREMENTS.—The regulations under sub-7

    section (b) shall include— 8

    ‘‘(1) a process to obtain certification for geo-9

    logic sequestration under this section; and 10

    ‘‘(2) requirements for— 11

    ‘‘(A) monitoring, record keeping, and re-12

    porting for emissions associated with injection 13

    into, and escape from, geologic sequestration 14

    sites, taking into account any requirements or 15

    protocols developed under section 713; 16

    ‘‘(B) public participation in the certifi-17

    cation process that maximizes transparency; 18

    ‘‘(C) the sharing of data between States, 19

    Indian tribes, and the Environmental Protec-20

    tion Agency; and 21

    ‘‘(D) other elements or safeguards nec-22

    essary to achieve the purpose set forth in sub-23

    section (b). 24

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    •HR 2454 EH

    ‘‘(d) REPORT.—Not later than 2 years after the pro-1

    mulgation of regulations under subsection (b), and at 3- 2

    year intervals thereafter, the Administrator shall deliver 3

    to the Committee on Energy and Commerce of the House 4

    of Representatives and the Committee on Environment 5

    and Public Works of the Senate a report on geologic se-6

    questration in the United States, and, to the extent rel-7

    evant, other countries in North America. Such report shall 8

    include— 9

    ‘‘(1) data regarding injection, emissions to the 10

    atmosphere, if any, and performance of active and 11

    closed geologic sequestration sites, including those 12

    where enhanced hydrocarbon recovery operations 13

    occur; 14

    ‘‘(2) an evaluation of the performance of rel-15

    evant Federal environmental regulations and pro-16

    grams in ensuring environmentally protective geo-17

    logic sequestration practices; 18

    ‘‘(3) recommendations on how such programs 19

    and regulations should be improved or made more 20

    effective; and 21

    ‘‘(4) other relevant information.’’. 22

    (b) SAFE DRINKING WATER ACT STANDARDS.—Sec-23

    tion 1421 of the Safe Drinking Water Act (42 U.S.C. 24

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    •HR 2454 EH

    300h) is amended by inserting after subsection (d) the fol-1

    lowing: 2

    ‘‘(e) CARBON DIOXIDE GEOLOGIC SEQUESTRATION 3

    WELLS.— 4

    ‘‘(1) IN GENERAL.—Not later than 1 year after 5

    the date of enactment of this subsection, the Admin-6

    istrator shall promulgate regulations under sub-7

    section (a) for carbon dioxide geologic sequestration 8

    wells. 9

    ‘‘(2) FINANCIAL RESPONSIBILITY.—The regula-10

    tions referred to in paragraph (1) shall include re-11

    quirements for maintaining evidence of financial re-12

    sponsibility, including financial responsibility for 13

    emergency and remedial response, well plugging, site 14

    closure, and post-injection site care. Financial re-15