AN ACT H. R. 2454

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

1

(a) S HORT T ITLE .—This Act may be cited as the 2

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

3

(b) T ABLE OF C ONTENTS .—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.

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.

‘‘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.

‘‘P

ART

B—M

OBILE

S

OURCES

‘‘Sec. 821. Greenhouse gas emission standards for mobile sources.

Sec. 222. Greenhouse gas emissions reductions through transportation effi- ciency.

‘‘P

ART

D—T

RANSPORTATION

E

MISSIONS

‘‘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.

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.

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

‘‘P

ART

A—G

LOBAL

W

ARMING

P

OLLUTION

R

EDUCTION

G

OALS AND

T

ARGETS

‘‘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.

‘‘P

ART

B—D

ESIGNATION AND

R

EGISTRATION OF

G

REENHOUSE

G

ASES

‘‘Sec. 711. Designation of greenhouse gases.

‘‘Sec. 712. Carbon dioxide equivalent value of greenhouse gases.

‘‘Sec. 713. Greenhouse gas registry.

‘‘P

ART

C—P

ROGRAM

R

ULES

‘‘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.

‘‘P

ART

D—O

FFSETS

‘‘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.

‘‘P

ART

E—S

UPPLEMENTAL

E

MISSIONS

R

EDUCTIONS

F

ROM

R

EDUCED

D

EFORESTATION

‘‘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.

‘‘P

ART

H—D

ISPOSITION OF

A

LLOWANCES

‘‘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.

‘‘TITLE VIII—ADDITIONAL GREENHOUSE GAS STANDARDS

‘‘Sec. 801. Definitions.

‘‘P

ART

A—S

TATIONARY

S

OURCE

S

TANDARDS

‘‘Sec. 811. Standards of performance.

‘‘P

ART

C—E

XEMPTIONS

F

ROM

O

THER

P

ROGRAMS

‘‘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.

‘‘P

ART

E—B

LACK

C

ARBON

‘‘Sec. 851. Black carbon.

Sec. 334. States.

Sec. 335. State programs.

‘‘P

ART

F—M

ISCELLANEOUS

‘‘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.

‘‘P

ART

IV—C

ARBON

M

ARKET

A

SSURANCE

‘‘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.

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.

‘‘P

ART

F—E

NSURING

R

EAL

R

EDUCTIONS IN

I

NDUSTRIAL

E

MISSIONS

‘‘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 P

ART

1—G

REEN

J

OBS

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.

P

ART

2—C

LIMATE

C

HANGE

W

ORKER

A

DJUSTMENT

A

SSISTANCE

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

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 P

ART

1—D

OMESTIC

A

DAPTATION

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.

P

ART

2—I

NTERNATIONAL

C

LIMATE

C

HANGE

A

DAPTATION

P

ROGRAM

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.

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) A DMINISTRATOR .—The term ‘‘Adminis- 3

trator’’ means the Administrator of the Environ- 4

mental Protection Agency.

5

(2) S TATE .—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

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

6

Subtitle A—Combined Efficiency

7

and Renewable Electricity

8

Standard

9

SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELEC-

10

TRICITY STANDARD.

11

(a) I N G ENERAL .—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) D EFINITIONS .—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

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) C OMBINED 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

cent of total annual electric generation by the 1

facility.

2

‘‘(4) C USTOMER 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

by new equipment of average efficiency of the 1

same equipment type.

2

‘‘(5) D ISTRIBUTED 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) E LECTRICITY 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

‘‘(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) C ENTRAL 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) F EDERAL RENEWABLE ELECTRICITY

23

CREDIT .—The term ‘Federal renewable electricity 24

credit’ means a credit, representing one megawatt

25

hour of renewable electricity, issued pursuant to sub- 1

section (e).

2

‘‘(9) F UEL 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) F UEL 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

‘‘(11) O THER 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) Q UALIFIED 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

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) Q UALIFIED 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

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

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) R ECYCLED 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) R ENEWABLE 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

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

‘‘(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

‘‘(V) food waste and yard waste.

1

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

pulp, or paper products facilities.

3

‘‘(16) R ENEWABLE 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) R ENEWABLE 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) R ETAIL ELECTRIC SUPPLIER .—

24

‘‘(A) I N 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) I NCLUSIONS 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) A FFILIATE .—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

or control with, such person, as determined 1

under regulations promulgated by the Commis- 2

sion.

3

‘‘(19) R ETAIL 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) R ETIRE 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

change, or submission in satisfaction of a compliance 1

obligation.

2

‘‘(21) T HIRD - 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) T OTAL 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) A NNUAL C OMPLIANCE O BLIGATION .—

19

‘‘(1) I N 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

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) D EMONSTRATION 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) R ENEWABLE 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) S TATE PETITION .—

17

‘‘(A) I N 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

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) C ONTENTS .—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) R EVISION .—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

‘‘(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) E STABLISHMENT OF P ROGRAM .—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

ciency programs and to minimize administrative bur- 1

dens and costs to retail electric suppliers.

2

‘‘(d) A NNUAL C OMPLIANCE R EQUIREMENT .—

3

‘‘(1) A NNUAL 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) R EQUIRED 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) F EDERAL R ENEWABLE E LECTRICITY C RED - 15

ITS .—

16

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

gated under this section shall include provisions gov- 18

erning the issuance, tracking, and verification of

19

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) G ENERATION 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

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) C ERTAIN 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

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) C REDIT MULTIPLIER FOR DISTRIBUTED

5

RENEWABLE GENERATION .—

6

‘‘(A) I N 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) A DJUSTMENT .—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

other sources of renewable electricity genera- 1

tion.

2

‘‘(C) F ACILITIES 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) C REDITS 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

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) G ENERATION 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) G ENERATION 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

electricity that is attributable to the renewable en- 1

ergy resource or other qualifying energy resource.

2

‘‘(8) P ROHIBITION 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) T RADING .—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) B ANKING .—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

‘‘(11) R ETIREMENT .—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) E LECTRICITY S AVINGS .—

6

‘‘(1) S TANDARDS 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

‘‘(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