I 

116TH CONGRESS 

1ST SESSION H. R. 2597 

To amend the Public Utility Regulatory Policies Act of 1978 to establish 

a market-oriented standard for clean electric energy generation, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 8, 2019 

Mr. LUJA ́N (for himself, Ms. MATSUI, Mr. CASTEN of Illinois, Ms. BLUNT

ROCHESTER, and Mr. GALLEGO) introduced the following bill; which was 

referred to the Committee on Energy and Commerce, and in addition to 

the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of 

such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Public Utility Regulatory Policies Act of 1978 

to establish a market-oriented standard for clean electric 

energy generation, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clean Energy Stand5 ard Act of 2019’’. 


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1 SEC. 2. FEDERAL CLEAN ENERGY STANDARD. 

2 (a) IN GENERAL.—Title VI of the Public Utility Reg3 ulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is 

4 amended by adding at the end the following: 

5 ‘‘SEC. 610. FEDERAL CLEAN ENERGY STANDARD. 

6 ‘‘(a) PURPOSE.—The purpose of this section is to es7 tablish a technology-neutral, market-oriented standard for 

8 electric energy generation that— 

9 ‘‘(1) stimulates clean energy innovation and al10 lows the United States to achieve a net-zero emis11 sion electric sector at the lowest cost; 

12 ‘‘(2) will guide power sector investment and 

13 provide regulatory certainty, while helping to ensure 

14 that the United States is the leader and dominant 

15 competitor in the global clean energy transition; and 

16 ‘‘(3) will result in— 

17 ‘‘(A) hundreds of billions of dollars in do18 mestic health and environmental benefits by the 

19 mid-21st century; and 

20 ‘‘(B) save tens of thousands of lives in the 

21 United States. 

22 ‘‘(b) DEFINITIONS.—In this section: 

23 ‘‘(1) APPLICABLE CARBON INTENSITY.—The 

24 term ‘applicable carbon intensity’ means 0.4 metric 

25 tons of carbon dioxide equivalent per megawatt-hour. 


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1 ‘‘(2) APPLICABLE CLEAN ENERGY PERCENT2 AGE.—The term ‘applicable clean energy percent3 age’, with respect to a retail electricity supplier, 

4 means the clean energy percentage applicable to the 

5 retail electricity supplier for the relevant calendar 

6 year under subsection (c). 

7 ‘‘(3) BASE QUANTITY.— 

8 ‘‘(A) IN GENERAL.—The term ‘base quan9 tity’, with respect to a retail electricity supplier 

10 for a calendar year, means the total quantity of 

11 electric energy consumed by electric customers 

12 of the retail electricity supplier, expressed in 

13 megawatt-hours, during the calendar year, in14 cluding— 

15 ‘‘(i) the quantity of electric energy 

16 sold by the retail electricity supplier to 

17 electric customers for purposes other than 

18 resale; and 

19 ‘‘(ii) the quantity of behind-the-meter 

20 generation consumed by electric consumers 

21 served by the retail electricity supplier. 

22 ‘‘(B) DETERMINATION.—For purposes of 

23 subparagraph (A), not later than 180 days 

24 after the date of enactment of this section, the 

25 Secretary shall develop appropriate processes 


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1 for determining the quantity of behind-the2 meter generation consumed by electric con3 sumers served by a retail electricity supplier, in4 cluding by requiring from the retail electricity 

5 supplier relevant documentation of behind-the6 meter electric energy consumption, such as 

7 records associated with net-metering. 

8 ‘‘(4) BASELINE PERCENTAGE.—The term ‘base9 line percentage’ means— 

10 ‘‘(A) for a retail electricity supplier in op11 eration on the date of enactment of this section, 

12 the clean energy percentage of the retail elec13 tricity supplier calculated for the calendar year 

14 in which this section is enacted; and 

15 ‘‘(B) for a retail electricity supplier that 

16 commences operation after the date of enact17 ment of this section, such clean energy percent18 age as the Secretary determines to be appro19 priate. 

20 ‘‘(5) BEHIND-THE-METER GENERATION.—The 

21 term ‘behind-the-meter generation’ means the gen22 eration of clean energy using a system that operates 

23 on the customer side of the applicable utility meter, 

24 subject to the condition that the retail electricity 

25 supplier serving the generator shall submit to the 


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1 Secretary, not less frequently than annually, 

2 verification of the quantity of that generation in 

3 such form, in such manner, and containing such in4 formation as the Secretary may require. 

5 ‘‘(6) CARBON DIOXIDE EQUIVALENT.— 

6 ‘‘(A) IN GENERAL.—The term ‘carbon di7 oxide equivalent’ means the number of metric 

8 tons of carbon dioxide emissions with the same 

9 global warming potential over a 100-year period 

10 as 1 metric ton of another greenhouse gas. 

11 ‘‘(B) GLOBAL WARMING POTENTIAL.—For 

12 purposes of subparagraph (A), global warming 

13 potential shall be determined in accordance with 

14 the Fifth Assessment Report of the Intergov15 ernmental Panel on Climate Change. 

16 ‘‘(7) CARBON INTENSITY.—The term ‘carbon 

17 intensity’ means the carbon dioxide equivalent emis18 sions associated with the generation of 1 megawatt19 hour of electric energy by a generator. 

20 ‘‘(8) CLEAN ENERGY.—The term ‘clean energy’ 

21 means electric energy that is— 

22 ‘‘(A) generated at a facility using— 

23 ‘‘(i) renewable energy; 

24 ‘‘(ii) qualified renewable biomass; 

25 ‘‘(iii) hydropower; 


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1 ‘‘(iv) nuclear power; 

2 ‘‘(v) qualified waste-to-energy; 

3 ‘‘(vi) qualified low-carbon fuels; 

4 ‘‘(vii) a qualified combined heat and 

5 power system; or 

6 ‘‘(viii) any other source of energy in a 

7 manner that ensures that the facility does 

8 not exceed the applicable carbon intensity; 

9 ‘‘(B) generated at a facility that— 

10 ‘‘(i) captures the carbon dioxide 

11 from— 

12 ‘‘(I) a waste stream of the facil13 ity; 

14 ‘‘(II) another waste stream; or 

15 ‘‘(III) the atmosphere directly; 

16 and 

17 ‘‘(ii) prevents the release of the cap18 tured carbon dioxide into the atmosphere; 

19 or 

20 ‘‘(C) dispatched from a qualified energy 

21 storage system. 

22 ‘‘(9) CLEAN ENERGY PERCENTAGE.— 

23 ‘‘(A) IN GENERAL.—The term ‘clean en24 ergy percentage’ means the percentage of clean 


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1 energy consumed by all electric consumers of a 

2 retail electricity supplier. 

3 ‘‘(B) CALCULATION.—For purposes of sub4 paragraph (A), the clean energy percentage of 

5 a retail electricity supplier shall be equal to the 

6 quotient obtained by dividing— 

7 ‘‘(i) the sum of— 

8 ‘‘(I) the quantity of clean energy 

9 sold by the retail electricity supplier 

10 to electric consumers; and 

11 ‘‘(II) the quantity of behind-the12 meter generation consumed by electric 

13 consumers served by the retail elec14 tricity supplier; by 

15 ‘‘(ii) the base quantity of the retail 

16 electricity supplier. 

17 ‘‘(C) DETERMINATION.— 

18 ‘‘(i) IN GENERAL.—For purposes of 

19 subparagraph (B), not later than 180 days 

20 after the date of enactment of this section, 

21 the Secretary shall develop a process for 

22 determining the quantities of— 

23 ‘‘(I) clean energy sold by a retail 

24 electricity supplier to electric con25 sumers, taking into account— 


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1 ‘‘(aa) the need to quantify, 

2 without double counting, appro3 priate quantities of clean en4 ergy— 

5 ‘‘(AA) owned by the re6 tail electricity supplier; 

7 ‘‘(BB) obtained by the 

8 retail electricity supplier 

9 through power purchase 

10 agreements; 

11 ‘‘(CC) imported by the 

12 retail electricity supplier; 

13 ‘‘(DD) purchased by 

14 the retail electricity supplier 

15 from wholesale markets; and 

16 ‘‘(EE) purchased by the 

17 retail electricity supplier 

18 through existing renewable 

19 or clean energy credits and 

20 certificates; and 

21 ‘‘(bb) appropriate dif22 ferences between— 

23 ‘‘(AA) retailers oper24 ating in organized wholesale 

25 markets; and 


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1 ‘‘(BB) retailers oper2 ating in vertically integrated 

3 market contexts; and 

4 ‘‘(II) behind-the-meter generation 

5 consumed by electric consumers 

6 served by a retail electricity supplier, 

7 including by requiring from the retail 

8 electricity supplier relevant docu9 mentation of behind-the-meter electric 

10 energy consumption, such as records 

11 associated with net-metering. 

12 ‘‘(ii) QUANTIFYING CLEAN ENERGY.— 

13 For purposes of quantifying clean energy 

14 and behind-the-meter generation under 

15 clause (i), the Secretary shall use the 

16 methods used to assign a quantity of cred17 its to generators under subsection (f). 

18 ‘‘(10) DISPATCHABLE LOW-EMISSION TECH19 NOLOGY.—The term ‘dispatchable low-emission tech20 nology’ means a generator that uses a technology or 

21 combination of technologies that— 

22 ‘‘(A) has a carbon intensity of not more 

23 than 0.05 metric tons of carbon dioxide equiva24 lent per megawatt-hour; 


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1 ‘‘(B) has the ability, at any time, to start, 

2 increase, decrease, and stop energy production 

3 on demand; 

4 ‘‘(C) is placed into service after the date of 

5 enactment of this section; and 

6 ‘‘(D) is not a dispatchable zero-emission 

7 technology. 

8 ‘‘(11) DISPATCHABLE ZERO-EMISSION TECH9 NOLOGY.—The term ‘dispatchable zero-emission 

10 technology’ means a generator that uses a tech11 nology or combination of technologies that— 

12 ‘‘(A) has a carbon intensity of zero; 

13 ‘‘(B) has the ability, at any time, to start, 

14 increase, decrease, and stop energy production 

15 on demand; and 

16 ‘‘(C) is placed into service after the date of 

17 enactment of this section. 

18 ‘‘(12) ENERGY STORAGE SYSTEM.—The term 

19 ‘energy storage system’ means any equipment or fa20 cility relating to the electric grid that— 

21 ‘‘(A) is capable of absorbing energy, stor22 ing the energy for a period of time, and dis23 patching the energy as electric energy; and 

24 ‘‘(B) uses mechanical, electrochemical, bio25 chemical, or thermal processes— 


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1 ‘‘(i) to store energy generated at an 

2 earlier time for use at a later time; or 

3 ‘‘(ii) to store energy generated from a 

4 mechanical process that would otherwise be 

5 wasted for delivery at a later time. 

6 ‘‘(13) FEDERAL CLEAN ENERGY CREDIT.—The 

7 term ‘Federal clean energy credit’ means a credit 

8 issued pursuant to subsection (e). 

9 ‘‘(14) GENERATOR.—The term ‘generator’ 

10 means a unit or system of units that— 

11 ‘‘(A) generates not fewer than 20 mega12 watt-hours of electric energy per calendar year; 

13 ‘‘(B) delivers electric energy to the grid; 

14 and 

15 ‘‘(C) is located in the United States. 

16 ‘‘(15) LIFECYCLE GREENHOUSE GAS EMIS17 SIONS.—The term ‘lifecycle greenhouse gas emis18 sions’ means the aggregate quantity of carbon diox19 ide equivalent emissions relating to the full lifecycle 

20 of electric energy production, including— 

21 ‘‘(A) extraction, production, and distribu22 tion of fuels and materials for physical capital; 

23 ‘‘(B) power generation and transmission; 

24 and 


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1 ‘‘(C) handling and disposal of waste, by2 products, and end-of-life materials. 

3 ‘‘(16) QUALIFIED COMBINED HEAT AND POWER

4 SYSTEM.—The term ‘qualified combined heat and 

5 power system’ means a system that— 

6 ‘‘(A) uses the same energy source for the 

7 simultaneous or sequential generation of elec8 trical energy and thermal energy; 

9 ‘‘(B) produces at least— 

10 ‘‘(i) 20 percent of the useful energy of 

11 the system in the form of electricity; and 

12 ‘‘(ii) 20 percent of the useful energy 

13 in the form of useful thermal energy; 

14 ‘‘(C) to the extent that the system uses 

15 biomass, uses only qualified renewable biomass; 

16 and 

17 ‘‘(D) operates with an energy efficiency 

18 percentage, as determined in accordance with 

19 section 48(c)(3)(C)(i) of the Internal Revenue 

20 Code of 1986, of greater than 50 percent. 

21 ‘‘(17) QUALIFIED DISPATCHABLE.— 

22 ‘‘(A) IN GENERAL.—The term ‘qualified 

23 dispatchable’ means— 


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1 ‘‘(i) with respect to a dispatchable 

2 low-emission technology, a dispatchable 

3 low-emission technology that— 

4 ‘‘(I) is 1 of the first 5 original 

5 demonstrations in the United States 

6 of a particular innovative technology 

7 providing not less than 20 megawatts 

8 of electric energy generation capacity; 

9 ‘‘(II) generates revenue from the 

10 sale of electric energy; and 

11 ‘‘(III) is placed into service be12 fore January 1, 2030; and 

13 ‘‘(ii) with respect to a dispatchable 

14 zero-emission technology, means a dis15 patchable zero-emission technology that— 

16 ‘‘(I) is 1 of the first 5 original 

17 demonstrations in the United States 

18 of a particular innovative technology 

19 providing not less than 20 megawatts 

20 of electric energy generation capacity; 

21 ‘‘(II) generates revenue from the 

22 sale of electric energy; and 

23 ‘‘(III) is placed into service be24 fore January 1, 2040. 


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1 ‘‘(B) DETERMINATION.—For purposes of 

2 determining whether a dispatchable low-emis3 sion technology or dispatchable zero-emission 

4 technology is an original demonstration of an 

5 innovative technology under clause (i)(I) or 

6 (ii)(I), respectively, of subparagraph (A), the 

7 Secretary shall— 

8 ‘‘(i) develop a process that— 

9 ‘‘(I) ensures that each innovative 

10 technology exhibits a significant tech11 nical or economic advancement, as 

12 compared to existing technologies; and 

13 ‘‘(II) includes consideration of an 

14 application submitted to the Secretary 

15 by the owner of the dispatchable low16 emission technology or dispatchable 

17 zero-emission technology; 

18 ‘‘(ii) not later than 90 days after the 

19 date of submission of an application under 

20 clause (i)(II), make a determination re21 garding whether to approve the applica22 tion; and 

23 ‘‘(iii) subject to subparagraph (C), 

24 provide to each owner, the application of 


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1 which is approved under clause (ii), a cer2 tification— 

3 ‘‘(I) that the applicable generator 

4 is a qualified dispatchable low-emis5 sion technology or dispatchable zero6 emission technology; and 

7 ‘‘(II) that shall be surrendered to 

8 earn Federal clean energy credits 

9 under subsection (f)(10). 

10 ‘‘(C) TERMINATION OF CERTIFICATION.— 

11 Except as otherwise provided by the Secretary, 

12 a certification provided under subparagraph 

13 (B)(iii) shall cease to have any force or effect 

14 if the Secretary determines that construction of 

15 the applicable generator— 

16 ‘‘(i) does not commence by the date 

17 that is 2 years after the date of certifi18 cation; or 

19 ‘‘(ii) has been suspended indefinitely. 

20 ‘‘(18) QUALIFIED ENERGY STORAGE SYSTEM.— 

21 The term ‘qualified energy storage system’ means an 

22 energy storage system that stores clean energy— 

23 ‘‘(A) that would otherwise be wasted or 

24 curtailed; 


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1 ‘‘(B) with verifiable carbon intensity that 

2 does not exceed the applicable carbon intensity; 

3 and 

4 ‘‘(C) for which no Federal clean energy 

5 credit is issued. 

6 ‘‘(19) QUALIFIED GENERATION.—The term 

7 ‘qualified generation’ means the number of mega8 watt-hours of electric energy that a generator— 

9 ‘‘(A)(i) generates; or 

10 ‘‘(ii) generates and stores using a con11 nected energy storage system; and 

12 ‘‘(B)(i) sells for resale; 

13 ‘‘(ii) if the generator is owned by a retail 

14 electricity supplier, sells to electric consumers; 

15 or 

16 ‘‘(iii) if the generator is a behind-the-meter 

17 generation system, consumes onsite for a useful 

18 purpose. 

19 ‘‘(20) QUALIFIED LOW-CARBON FUEL.— 

20 ‘‘(A) IN GENERAL.—The term ‘qualified 

21 low-carbon fuel’ means a fuel used to generate 

22 electric energy that— 

23 ‘‘(i) is produced through any process 

24 (but not including any processes that use 

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1 cantly limits or avoids greenhouse gas 

2 emissions; and 

3 ‘‘(ii) does not release greenhouse gas 

4 or other pollutant emissions during com5 bustion. 

6 ‘‘(B) INCLUSION.—The term ‘qualified 

7 low-carbon fuel’ includes— 

8 ‘‘(i) ammonia; and 

9 ‘‘(ii) hydrogen. 

10 ‘‘(21) QUALIFIED RENEWABLE BIOMASS.—The 

11 term ‘qualified renewable biomass’ means— 

12 ‘‘(A) any crop byproduct or crop residue 

13 harvested from actively managed or fallow agri14 cultural land that is cleared before the date of 

15 enactment of this section, if the harvesting of 

16 the residue does not lead to a net decline in soil 

17 organic matter for the applicable land; 

18 ‘‘(B) any planted tree, brush, slash, or res19 idue from an actively managed tree farm dedi20 cated to energy crop production and located on 

21 forest land established for planted tree crop 

22 production before the date of enactment of this 

23 section; 


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1 ‘‘(C) any brush, slash, or residue from an 

2 actively managed forest that is certified to 

3 achieve compliance with applicable— 

4 ‘‘(i) sustainability standards of the 

5 Forest Stewardship Council; or 

6 ‘‘(ii) standards endorsed by the Pro7 gramme for the Endorsement of Forest 

8 Certification, including— 

9 ‘‘(I) the Sustainable Forestry Ini10 tiative; and 

11 ‘‘(II) the American Tree Farm 

12 System; 

13 ‘‘(D) algae; 

14 ‘‘(E) nonhazardous plant matter derived 

15 from landscape right-of-way trimmings; and 

16 ‘‘(F) vegetative matter removed from an 

17 area located not more than 200 yards from a 

18 building, residence, or campground for the pur19 pose of hazardous fuels management. 

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

21 term ‘qualified waste-to-energy’ means energy pro22 duced— 

23 ‘‘(A) from the combustion of— 

24 ‘‘(i) post-recycled municipal solid 

25 waste; 


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1 ‘‘(ii) gas produced from the gasifi2 cation or pyrolization of post-recycled mu3 nicipal solid waste; 

4 ‘‘(iii) biogas; 

5 ‘‘(iv) landfill methane; 

6 ‘‘(v) animal waste or animal byprod7 ucts; 

8 ‘‘(vi) food waste; 

9 ‘‘(vii) wood, paper products that are 

10 not commonly recyclable, and vegetation 

11 (including trees and trimmings, yard 

12 waste, pallets, railroad ties, crates, and 

13 solid-wood manufacturing and construction 

14 debris), if diverted from or separated from 

15 other waste out of a municipal waste 

16 stream; or 

17 ‘‘(viii) any byproduct of a wood or 

18 paper mill operation, including lignin in 

19 spent pulping liquors; and 

20 ‘‘(B) at a facility that the Secretary has 

21 certified, on an annual basis, is in compliance 

22 with all applicable Federal and State environ23 mental permits, including— 

24 ‘‘(i) in the case of a facility that com25 mences operation before the date of enactVerDate Sep 11 2014 22:18 May 15, 2019 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 \\ALPHA3\E\BILLS\H2597.IH H2597

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1 ment of this section, compliance with emis2 sion standards under sections 112 and, as 

3 applicable, 129 of the Clean Air Act (42 

4 U.S.C. 7412, 7429) that apply as of the 

5 date of enactment of this section to new 

6 facilities within the applicable source cat7 egory; and 

8 ‘‘(ii) in the case of a facility that pro9 duces electric or thermal energy from the 

10 combustion, pyrolization, or gasification of 

11 municipal solid waste, certification that 

12 each local government unit from which the 

13 waste originates operates, participates in 

14 the operation of, contracts for, or other15 wise provides for recycling services for resi16 dents of the local government unit. 

17 ‘‘(23) RENEWABLE ENERGY.—The term ‘renew18 able energy’ means solar, wind, ocean, current, wave, 

19 tidal, or geothermal energy. 

20 ‘‘(24) RETAIL ELECTRICITY SUPPLIER.— 

21 ‘‘(A) IN GENERAL.—The term ‘retail elec22 tricity supplier’, as determined for each cal23 endar year, means an entity in the United 

24 States that sold not fewer than 20 megawatt25 hours of electric energy to electric consumers 


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1 for purposes other than resale during the pre2 ceding calendar year. 

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

4 purposes of making a determination under sub5 paragraph (A) with respect to an entity— 

6 ‘‘(i) any sale of electric energy made 

7 by an affiliate of the entity to an electric 

8 consumer (other than to a lessee or tenant 

9 of the affiliate) for purposes other than re10 sale may be considered to be a sale made 

11 by the entity; and 

12 ‘‘(ii) any sale of electric energy made 

13 by the entity to an affiliate, lessee, or ten14 ant of the entity shall not be considered to 

15 be a sale to an electric consumer. 

16 ‘‘(C) AFFILIATE.—For purposes of sub17 paragraph (B), the term ‘affiliate’, with respect 

18 to an entity, means an individual or entity that 

19 directly or indirectly owns or controls, is owned 

20 or controlled by, or is under common ownership 

21 or control with, the entity, as determined in ac22 cordance with applicable regulations of the Sec23 retary. 

24 ‘‘(c) CLEAN ENERGY REQUIREMENT.— 


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1 ‘‘(1) IN GENERAL.—Beginning in the second 

2 full calendar year beginning after the date of enact3 ment of this section, and each calendar year there4 after, each retail electricity supplier shall sell a 

5 quantity of clean energy equal to the product ob6 tained by multiplying— 

7 ‘‘(A) the applicable clean energy percent8 age determined for the retail electricity supplier 

9 for the calendar year under paragraph (2); and 

10 ‘‘(B) the base quantity of the retail elec11 tricity supplier for the applicable calendar year. 

12 ‘‘(2) DETERMINATION OF APPLICABLE CLEAN

13 ENERGY PERCENTAGES.— 

14 ‘‘(A) INITIAL PERCENTAGE.— 

15 ‘‘(i) USE OF BASELINE PERCENT16 AGE.—For purposes of the determinations 

17 required under subparagraphs (B) and 

18 (C), the applicable clean energy percentage 

19 for a retail electricity supplier for the cal20 endar year during which this section is en21 acted shall be the baseline percentage of 

22 the retail electricity supplier. 

23 ‘‘(ii) NEW RETAIL ELECTRICITY SUP24 PLIERS.—For purposes of the determina25 tions required under subparagraphs (B) 


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1 and (C), for a retail electricity supplier 

2 that is established after the date of enact3 ment of this section, the Secretary shall 

4 determine the appropriate applicable clean 

5 energy percentage for the first calendar 

6 year beginning after the date on which the 

7 retail electricity supplier commences oper8 ation. 

9 ‘‘(B) SUBSEQUENT DETERMINATIONS.— 

10 Subject to paragraph (3), for the first calendar 

11 year beginning after the date of enactment of 

12 this section and each calendar year thereafter 

13 until the calendar year for which the applicable 

14 clean energy percentage for a retail electricity 

15 supplier is 90 percent, the applicable clean en16 ergy percentage for the retail electricity supplier 

17 under paragraph (1) shall be— 

18 ‘‘(i) in the case of a retail electricity 

19 supplier with not less than 2,000,000 

20 megawatt-hours of retail electric energy 

21 sales during the calendar year in which 

22 this section is enacted, or a retail elec23 tricity supplier with less than 2,000,000 

24 megawatt-hours of retail electric energy 

25 sales during that calendar year but more 


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1 than 2,000,000 megawatt-hours of retail 

2 electric energy sales during a subsequent 

3 calendar year due to a merger or the ac4 quisition of additional territory, the appli5 cable clean energy percentage for the retail 

6 electricity supplier for the preceding cal7 endar year, as increased— 

8 ‘‘(I) for any calendar year for 

9 which the applicable clean energy per10 centage of the retail electricity sup11 plier is not more than 60 percent, by 

12 the fast growth rate for the calendar 

13 year, as determined under paragraph 

14 (3)(B); and 

15 ‘‘(II) for any calendar year for 

16 which the applicable clean energy per17 centage of the retail electricity sup18 plier is more than 60 percent, by the 

19 slow growth rate for the calendar 

20 year, as determined under paragraph 

21 (3)(C), up to a maximum of 90 per22 cent; and 

23 ‘‘(ii) in the case of a retail electricity 

24 supplier not described in clause (i), the ap25 plicable clean energy percentage for the reVerDate Sep 11 2014 22:18 May 15, 2019 Jkt 089200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 \\ALPHA3\E\BILLS\H2597.IH H2597

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1 tail electricity supplier for the preceding 

2 calendar year, as increased by the small 

3 growth rate for the calendar year, as deter4 mined under paragraph (3)(D), up to a 

5 maximum of 90 percent. 

6 ‘‘(C) FINAL TARGET PERCENTAGE.—Effec7 tive beginning in calendar year 2040, for each 

8 calendar year beginning after the first calendar 

9 year for which the applicable clean energy per10 centage of a retail electricity supplier under 

11 subparagraph (B) is 90 percent, the applicable 

12 clean energy percentage for the retail electricity 

13 supplier under paragraph (1) shall be increased 

14 by 1 percentage point, up to a maximum of 100 

15 percent. 

16 ‘‘(3) RATE INCREASE ADJUSTMENTS.— 

17 ‘‘(A) DEFINITIONS.—In this paragraph: 

18 ‘‘(i) RATE DECREASE-ADJUSTED CAL19 ENDAR YEAR.—The term ‘rate decrease20 adjusted calendar year’ means any cal21 endar year beginning after a calendar year 

22 for which alternative compliance payments 

23 accounted for greater than 10 percent of 

24 total compliance obligations of all retail 


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1 electricity providers under subsection (d) 

2 for that calendar year. 

3 ‘‘(ii) RATE INCREASE-ADJUSTED CAL4 ENDAR YEAR.—The term ‘rate increase-ad5 justed calendar year’ means any calendar 

6 year beginning after a 2-consecutive cal7 endar year period during which, for each of 

8 those 2 consecutive calendar years, the av9 erage price of a Federal clean energy cred10 it for the 3 preceding calendar years was 

11 below the rate-increased floor price. 

12 ‘‘(iii) RATE-INCREASED FLOOR

13 PRICE.—The term ‘rate-increased floor 

14 price’ means the difference between— 

15 ‘‘(I) the alternative compliance 

16 payment for the applicable calendar 

17 year; and 

18 ‘‘(II)(aa) during the period be19 ginning on the date of enactment of 

20 this section and ending on December 

21 31 of the second full calendar year be22 ginning after that date of enactment, 

23 a rate of 1.5 cents per kilowatt-hour; 

24 and 


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1 ‘‘(bb) for each calendar year 

2 thereafter, the rate described in item 

3 (aa) for the preceding calendar year— 

4 ‘‘(AA) increased by 3 per5 cent; and 

6 ‘‘(BB) adjusted for inflation, 

7 as the Secretary determines to be 

8 necessary. 

9 ‘‘(B) FAST GROWTH RATE.—For purposes 

10 of paragraph (2)(B)(i)(I), the fast growth rate 

11 shall be— 

12 ‘‘(i) for the calendar year in which 

13 this section is enacted, 2.75 percentage 

14 points; 

15 ‘‘(ii) for the first calendar year begin16 ning after the date of enactment of this 

17 section and each calendar year thereafter 

18 that is not a rate increase-adjusted cal19 endar year or a rate decrease-adjusted cal20 endar year, the fast growth rate for the 

21 preceding calendar year; 

22 ‘‘(iii) for a rate increase-adjusted cal23 endar year, the fast growth rate for the 

24 preceding calendar year, increased by 0.5 

25 percentage points; and 


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1 ‘‘(iv) for a rate decrease-adjusted cal2 endar year, the fast growth rate for the 

3 preceding calendar year, decreased by 0.25 

4 percentage points, down to a minimum of 

5 2.75 percentage points. 

6 ‘‘(C) SLOW GROWTH RATE.—For purposes 

7 of paragraph (2)(B)(i)(II), the slow growth rate 

8 shall be— 

9 ‘‘(i) for the calendar year in which 

10 this section is enacted, 1.75 percentage 

11 points; 

12 ‘‘(ii) for the first calendar year begin13 ning after the date of enactment of this 

14 section and each calendar year thereafter 

15 that is not a rate increase-adjusted cal16 endar year or a rate decrease-adjusted cal17 endar year, the slow growth rate for the 

18 preceding calendar year; 

19 ‘‘(iii) for a rate increase-adjusted cal20 endar year, the slow growth rate for the 

21 preceding calendar year, increased by 0.5 

22 percentage points; and 

23 ‘‘(iv) for a rate decrease-adjusted cal24 endar year, the slow growth rate for the 

25 preceding calendar year, decreased by 0.25 


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•HR 2597 IH

1 percentage points, down to a minimum of 

2 1.75 percentage points. 

3 ‘‘(D) SMALL GROWTH RATE.—For pur4 poses of paragraph (2)(B)(ii), the small growth 

5 rate shall be— 

6 ‘‘(i) for the calendar year in which 

7 this section is enacted, 1.5 percentage 

8 points; 

9 ‘‘(ii) for the first calendar year begin10 ning after the date of enactment of this 

11 section and each calendar year thereafter 

12 that is not a rate increase-adjusted cal13 endar year or a rate decrease-adjusted cal14 endar year, the small growth rate for the 

15 preceding calendar year; 

16 ‘‘(iii) for a rate increase-adjusted cal17 endar year, the small growth rate for the 

18 preceding calendar year, increased by 0.5 

19 percentage points; and 

20 ‘‘(iv) for a rate decrease-adjusted cal21 endar year, the small growth rate for the 

22 preceding calendar year, decreased by 0.25 

23 percentage points, down to a minimum of 

24 1.5 percentage points. 

25 ‘‘(d) MEANS OF COMPLIANCE.— 


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1 ‘‘(1) IN GENERAL.—A retail electricity supplier 

2 shall annually achieve compliance with subsection (c) 

3 by— 

4 ‘‘(A) submitting to the Secretary Federal 

5 clean energy credits; 

6 ‘‘(B) submitting to the Secretary docu7 mentation of the quantity of behind-the-meter 

8 generation consumed by electric consumers 

9 served by the retail electricity supplier; 

10 ‘‘(C) making alternative compliance pay11 ments of 3 cents per kilowatt-hour in accord12 ance with subsection (i); or 

13 ‘‘(D) taking a combination of actions de14 scribed in subparagraphs (A) through (C). 

15 ‘‘(2) FAILURE TO ESTABLISH FEDERAL CLEAN

16 ENERGY CREDIT TRADING PROGRAM.—If the Sec17 retary does not establish a Federal clean energy 

18 credit trading program under subsection (e), a retail 

19 electricity supplier shall achieve compliance with 

20 subsection (c) by— 

21 ‘‘(A) submitting to the Secretary docu22 mentation of the clean energy percentage of the 

23 retail electricity supplier; 


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1 ‘‘(B) making alternative compliance pay2 ments of 3 cents per kilowatt-hour in accord3 ance with subsection (i); or 

4 ‘‘(C) taking a combination of actions de5 scribed in subparagraphs (A) and (B). 

6 ‘‘(e) FEDERAL CLEAN ENERGY CREDIT TRADING

7 PROGRAM.— 

8 ‘‘(1) ESTABLISHMENT.—Not later than 1 year 

9 after the date of enactment of this section, the Sec10 retary shall establish a Federal clean energy credit 

11 trading program under which— 

12 ‘‘(A) 1 Federal clean energy credit rep13 resents 1 megawatt-hour of clean energy gen14 erated by a generator; 

15 ‘‘(B) retail electricity suppliers may submit 

16 to the Secretary Federal clean energy credits to 

17 certify compliance by the retail electricity sup18 pliers with subsection (c); and 

19 ‘‘(C) those Federal clean energy credits are 

20 issued, recorded, tracked, and transferred. 

21 ‘‘(2) CLEAN ENERGY CREDITS.—Except as pro22 vided in subparagraphs (B) and (C) of paragraph 

23 (3), the Secretary shall issue to each generator and 

24 qualified energy storage system a quantity of FedVerDate Sep 11 2014 22:18 May 15, 2019 Jkt 089200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 \\ALPHA3\E\BILLS\H2597.IH H2597

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1 eral clean energy credits determined in accordance 

2 with subsections (f) and (g). 

3 ‘‘(3) ADMINISTRATION.—In carrying out the 

4 program under this subsection, the Secretary shall 

5 ensure that— 

6 ‘‘(A) a Federal clean energy credit may 

7 be— 

8 ‘‘(i) used only once for purposes of 

9 compliance with this section; and 

10 ‘‘(ii) purchased only by a retail elec11 tricity supplier; 

12 ‘‘(B) a Federal clean energy credit issued 

13 for clean energy generated and sold for resale 

14 under a contract in effect on the date of enact15 ment of this section shall be issued to the pur16 chasing retail electricity supplier, unless other17 wise provided by the contract; and 

18 ‘‘(C) with respect to clean energy gen19 erated in a facility outside of the United States, 

20 a Federal clean energy credit may be issued 

21 only— 

22 ‘‘(i) if the clean energy is sold for re23 sale in the United States; and 

24 ‘‘(ii) to the purchasing retail elec25 tricity supplier. 


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1 ‘‘(4) DELEGATION OF MARKET FUNCTION.— 

2 ‘‘(A) IN GENERAL.—In carrying out the 

3 program under this subsection, the Secretary 

4 may delegate— 

5 ‘‘(i) to 1 or more appropriate entities 

6 (including any Federal entity in existence 

7 on the date of enactment of this section), 

8 the administration of a national Federal 

9 clean energy credit market for purposes of 

10 establishing a transparent national market 

11 for the sale or trade of Federal clean en12 ergy credits; and 

13 ‘‘(ii) to appropriate entities, the track14 ing of dispatch of clean energy generation. 

15 ‘‘(B) ADMINISTRATION.—In making a del16 egation under subparagraph (A)(ii), the Sec17 retary shall ensure that the tracking and re18 porting of information concerning the dispatch 

19 of clean energy generation is transparent, 

20 verifiable, and independent of any generation or 

21 load interests subject to an obligation under 

22 this section. 

23 ‘‘(5) BANKING OF FEDERAL CLEAN ENERGY

24 CREDITS.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), for purposes of achieving compliance 

3 with subsection (c), a Federal clean energy 

4 credit shall be valid for— 

5 ‘‘(i) the calendar year during which 

6 the Federal clean energy credit is issued; 

7 or 

8 ‘‘(ii) either of the 2 subsequent cal9 endar years. 

10 ‘‘(B) ADJUSTMENTS.— 

11 ‘‘(i) CALENDAR YEARS 2040 THROUGH

12 2049.—For each of calendar years 2040 

13 through 2049, a Federal clean energy 

14 credit shall be valid for— 

15 ‘‘(I) the calendar year during 

16 which the Federal clean energy credit 

17 is issued; or 

18 ‘‘(II) the subsequent calendar 

19 year. 

20 ‘‘(ii) CALENDAR YEAR 2050 AND

21 THEREAFTER.—Beginning in calendar year 

22 2050, a Federal clean energy credit shall 

23 be valid only for the calendar year during 

24 which the Federal clean energy credit is 

25 issued. 


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•HR 2597 IH

1 ‘‘(f) DETERMINATION OF QUANTITY OF CREDITS.— 

2 ‘‘(1) IN GENERAL.—Except as otherwise pro3 vided in this subsection, the quantity of Federal 

4 clean energy credits issued to a generator of clean 

5 energy shall be equal to the product obtained by 

6 multiplying— 

7 ‘‘(A) the qualified generation of the gener8 ator; and 

9 ‘‘(B) the difference between— 

10 ‘‘(i) 1.0; and 

11 ‘‘(ii) the quotient obtained by divid12 ing— 

13 ‘‘(I) the carbon intensity of the 

14 generator, as determined in accord15 ance with subsection (g) (expressed in 

16 metric tons per megawatt-hour); by 

17 ‘‘(II) the applicable carbon inten18 sity. 

19 ‘‘(2) QUALIFIED COMBINED HEAT AND POWER

20 SYSTEMS.— 

21 ‘‘(A) IN GENERAL.—The quantity of Fed22 eral clean energy credits issued to a generator 

23 that is a qualified combined heat and power 

24 system shall be equal to the difference be25 tween— 


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•HR 2597 IH

1 ‘‘(i) the product obtained by multi2 plying— 

3 ‘‘(I) the number of megawatt4 hours of electric energy generated by 

5 the qualified combined heat and power 

6 system; and 

7 ‘‘(II) the difference between— 

8 ‘‘(aa) 1.0; and 

9 ‘‘(bb) the quotient obtained 

10 by dividing— 

11 ‘‘(AA) the carbon inten12 sity of the generator, as de13 termined in accordance with 

14 subsection (g) (expressed in 

15 metric tons per megawatt16 hour); by 

17 ‘‘(BB) the applicable 

18 carbon intensity; and 

19 ‘‘(ii) the product obtained by multi20 plying— 

21 ‘‘(I) the number of megawatt22 hours of electric energy generated by 

23 the qualified combined heat and power 

24 system that are consumed onsite; and 


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•HR 2597 IH

1 ‘‘(II) the national weighted aver2 age of the applicable clean energy per3 centage required for the calendar year 

4 under subsection (c), as determined 

5 by the Secretary. 

6 ‘‘(B) ADDITIONAL CREDITS.—In addition 

7 to Federal clean energy credits issued under 

8 subparagraph (A), the Secretary shall issue 

9 Federal clean energy credits to a generator that 

10 is a qualified combined heat and power system 

11 for greenhouse gas emissions avoided as a re12 sult of the use of the qualified combined heat 

13 and power system, rather than a separate ther14 mal source, to meet the onsite thermal needs of 

15 the generator. 

16 ‘‘(3) QUALIFIED RENEWABLE BIOMASS.— 

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B), the quantity of Federal clean energy 

19 credits issued to each generator of clean energy 

20 using qualified renewable biomass shall be equal 

21 to the product obtained by multiplying— 

22 ‘‘(i) the qualified generation of the 

23 generator using qualified renewable bio24 mass; and 


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•HR 2597 IH

1 ‘‘(ii) the qualified renewable biomass 

2 credit value determined under subsection 

3 (g)(4)(B)(iii). 

4 ‘‘(B) EXISTING GENERATORS.—For gen5 erators placed into service before the date of en6 actment of this section, the quantity of Federal 

7 clean energy credits issued to each generator of 

8 energy using qualified renewable biomass shall 

9 be equal to the greater of— 

10 ‘‘(i) the product obtained by multi11 plying— 

12 ‘‘(I) the qualified generation of 

13 the generator, not to exceed the gen14 eration capacity of the generator on 

15 the date of enactment of this section; 

16 and 

17 ‘‘(II) 0.5; and 

18 ‘‘(ii) the quantity of credits deter19 mined under subparagraph (A). 

20 ‘‘(4) QUALIFIED WASTE-TO-ENERGY.— 

21 ‘‘(A) IN GENERAL.—Subject to subpara22 graph (B), the quantity of Federal clean energy 

23 credits issued to a generator that is a qualified 

24 waste-to-energy facility shall be equal to the 

25 product obtained by multiplying— 


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•HR 2597 IH

1 ‘‘(i) the qualified generation of the 

2 generator using qualified waste-to-energy; 

3 and 

4 ‘‘(ii) the qualified waste-to-energy 

5 credit value determined under subsection 

6 (g)(4)(B)(iii). 

7 ‘‘(B) EXISTING GENERATORS.—For gen8 erators placed into service before the date of en9 actment of this section, the quantity of Federal 

10 clean energy credits issued to each generator of 

11 energy that is a qualified waste-to-energy facil12 ity shall be equal to the greater of— 

13 ‘‘(i) the qualified generation of the 

14 generator, not to exceed the generation ca15 pacity of the generator on the date of en16 actment of this section; and 

17 ‘‘(ii) the quantity of credits deter18 mined under subparagraph (A). 

19 ‘‘(5) QUALIFIED LOW-CARBON FUELS.—The 

20 quantity of Federal clean energy credits issued to a 

21 generator using qualified low-carbon fuels shall be 

22 equal to the product obtained by multiplying— 

23 ‘‘(A) the qualified generation of the gener24 ator using qualified low-carbon-fuels; and 


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•HR 2597 IH

1 ‘‘(B) the qualified low-carbon fuel credit 

2 value determined under subsection 

3 (g)(4)(B)(iii). 

4 ‘‘(6) CARBON CAPTURE, STORAGE, AND UTILI5 ZATION.— 

6 ‘‘(A) DEFINITIONS.—In this paragraph, 

7 the terms ‘qualified carbon oxide’, ‘qualified en8 hanced oil or natural gas recovery project’, and 

9 ‘tertiary injectant’ have the meanings given 

10 those terms in section 45Q of the Internal Rev11 enue Code of 1986. 

12 ‘‘(B) QUANTITY OF CREDITS.—Except as 

13 otherwise provided in this subsection, the quan14 tity of Federal clean energy credits issued to 

15 each generator of clean energy through the cap16 ture and storage or utilization of qualified car17 bon oxide from a waste stream of the generator 

18 shall be equal to the product obtained by multi19 plying— 

20 ‘‘(i) the qualified generation of the 

21 generator; and 

22 ‘‘(ii) the difference between— 

23 ‘‘(I) 1.0; and 

24 ‘‘(II) the quotient obtained by di25 viding— 


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•HR 2597 IH

1 ‘‘(aa) the carbon intensity of 

2 the generator, as determined in 

3 accordance with subsection (g) 

4 (expressed in metric tons per 

5 megawatt-hour); by 

6 ‘‘(bb) the applicable carbon 

7 intensity. 

8 ‘‘(C) ADDITIONAL CREDITS.—In addition 

9 to Federal clean energy credits issued under 

10 subparagraph (B), the Secretary shall issue 

11 Federal clean energy credits to each generator 

12 of clean energy through the capture and storage 

13 or utilization of qualified carbon oxide from a 

14 waste stream other than the waste stream of 

15 the generator, or from the atmosphere directly, 

16 in a quantity equal to the quotient obtained by 

17 dividing— 

18 ‘‘(i) the number of metric tons of 

19 qualified carbon oxide captured and stored 

20 or utilized; by 

21 ‘‘(ii) the carbon intensity of the gener22 ator, as determined in accordance with 

23 subsection (g) (expressed in metric tons 

24 per megawatt-hour). 

25 ‘‘(D) SPECIAL RULES.— 


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1 ‘‘(i) REGULATIONS.— 

2 ‘‘(I) IN GENERAL.—Subject to 

3 subclause (III), not later than 1 year 

4 after the date of enactment of this 

5 section, the Secretary, in consultation 

6 with the Administrator of the Envi7 ronmental Protection Agency, shall 

8 promulgate regulations establishing— 

9 ‘‘(aa) the conditions under 

10 which qualified carbon oxide may 

11 be safely and permanently stored 

12 for purposes of issuing Federal 

13 clean energy credits to a gener14 ator under this paragraph; and 

15 ‘‘(bb) in accordance with 

16 subclause (II), the methods and 

17 processes by which qualified car18 bon oxide may be utilized in a 

19 manner that ensures the removal 

20 of the qualified carbon oxide 

21 safely and permanently from the 

22 atmosphere. 

23 ‘‘(II) REQUIREMENTS.—For pur24 poses of subclause (I)(bb)— 


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•HR 2597 IH

1 ‘‘(aa) utilization of qualified 

2 carbon oxide may include the 

3 production of substances, such as 

4 plastics and chemicals; and 

5 ‘‘(bb) the regulations pro6 mulgated pursuant to that sub7 clause shall minimize the escape 

8 or further emission of qualified 

9 carbon oxide into the atmos10 phere. 

11 ‘‘(III) EXISTING REQUIRE12 MENTS.—In promulgating regulations 

13 pursuant to this clause, the Secretary 

14 shall incorporate any existing Federal 

15 requirements for the permanent geo16 logic storage of carbon oxides, includ17 ing any requirements under section 

18 45Q of the Internal Revenue Code of 

19 1986. 

20 ‘‘(ii) ADJUSTED QUANTITY.— 

21 ‘‘(I) IN GENERAL.—Notwith22 standing subparagraphs (B) and (C), 

23 except as provided in subclause (II), 

24 the quantity of Federal clean energy 

25 credits issued under this paragraph to 


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•HR 2597 IH

1 a generator at which qualified carbon 

2 oxide is captured and used as a ter3 tiary injectant in a qualified enhanced 

4 oil or natural gas recovery project 

5 shall be reduced by 50 percent. 

6 ‘‘(II) NO REDUCTION.—If the 

7 qualified carbon oxide captured and 

8 used as a tertiary injectant in a quali9 fied enhanced oil or natural gas recov10 ery project by a generator achieves 

11 compliance with the conditions estab12 lished pursuant to clause (i)(I)(aa), 

13 the quantity of Federal clean energy 

14 credits issued to the generator shall 

15 not be reduced. 

16 ‘‘(7) QUALIFIED ENERGY STORAGE SYSTEMS.— 

17 The quantity of Federal clean energy credits issued 

18 to each qualified energy storage system shall be 

19 equal to the product obtained by multiplying— 

20 ‘‘(A) the electric energy dispatched and 

21 sold by the qualified energy storage system (ex22 pressed in megawatt-hours); and 

23 ‘‘(B) the difference between— 

24 ‘‘(i) 1.0; and 


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•HR 2597 IH

1 ‘‘(ii) the quotient obtained by divid2 ing— 

3 ‘‘(I) the average carbon intensity 

4 of the clean energy stored in the 

5 qualified energy storage system, as 

6 determined in accordance with sub7 section (g) (expressed in metric tons 

8 per megawatt-hour); by 

9 ‘‘(II) the applicable carbon inten10 sity. 

11 ‘‘(8) NEGATIVE CREDITS.—Notwithstanding 

12 any other provision of this subsection, the Secretary 

13 shall not issue a negative quantity of Federal clean 

14 energy credits to any generator. 

15 ‘‘(9) MAXIMUM QUANTITY OF CREDITS.—Not16 withstanding paragraphs (1) through (6), the total 

17 quantity of Federal clean energy credits issued 

18 under those paragraphs to a generator for a cal19 endar year shall not exceed the number of mega20 watt-hours of the applicable annual qualified genera21 tion of the generator. 

22 ‘‘(10) INNOVATION MULTIPLIER.— 

23 ‘‘(A) IN GENERAL.—Notwithstanding 

24 paragraphs (1) through (6), until the applicable 

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1 tity of Federal clean energy credits issued 

2 under this section to— 

3 ‘‘(i) a generator that is a qualified 

4 dispatchable low-emission technology or a 

5 qualified dispatchable zero-emission tech6 nology shall be equal to the product ob7 tained by multiplying— 

8 ‘‘(I) the qualified generation of 

9 that generator; 

10 ‘‘(II) the difference between— 

11 ‘‘(aa) 1.0; and 

12 ‘‘(bb) the quotient obtained 

13 by dividing— 

14 ‘‘(AA) the carbon inten15 sity of the generator, as de16 termined in accordance with 

17 subsection (g) (expressed in 

18 metric tons per megawatt19 hour); by 

20 ‘‘(BB) the applicable 

21 carbon intensity; and 

22 ‘‘(III) 1.5; 

23 ‘‘(ii) a generator that is a dispatch24 able zero-emission technology that is not 

25 issued Federal clean energy credits under 


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•HR 2597 IH

1 clause (i) shall be equal to the product ob2 tained by multiplying— 

3 ‘‘(I) the qualified generation of 

4 that generator; 

5 ‘‘(II) the difference between— 

6 ‘‘(aa) 1.0; and 

7 ‘‘(bb) the quotient obtained 

8 by dividing— 

9 ‘‘(AA) the carbon inten10 sity of the generator, as de11 termined in accordance with 

12 subsection (g) (expressed in 

13 metric tons per megawatt14 hour); by 

15 ‘‘(BB) the applicable 

16 carbon intensity; and 

17 ‘‘(III) the appropriate multiplier, 

18 as determined under subparagraph 

19 (B)(i); and 

20 ‘‘(iii) a generator that is a dispatch21 able low-emission technology that is not 

22 issued Federal clean energy credits under 

23 clause (i) shall be equal to the product ob24 tained by multiplying— 


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1 ‘‘(I) the qualified generation of 

2 that generator; 

3 ‘‘(II) the difference between— 

4 ‘‘(aa) 1.0; and 

5 ‘‘(bb) the quotient obtained 

6 by dividing— 

7 ‘‘(AA) the carbon inten8 sity of the generator, as de9 termined in accordance with 

10 subsection (g) (expressed in 

11 metric tons per megawatt12 hour); by 

13 ‘‘(BB) the applicable 

14 carbon intensity; and 

15 ‘‘(III) the appropriate multiplier, 

16 as determined under subparagraph 

17 (B)(ii). 

18 ‘‘(B) MULTIPLIERS.—The multipliers re19 ferred to in clauses (ii)(III) and (iii)(III) of 

20 subparagraph (A) are— 

21 ‘‘(i) for a dispatchable zero-emission 

22 technology described in subparagraph 

23 (A)(ii)— 

24 ‘‘(I) for the period beginning on 

25 the date of enactment of this section 


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1 and ending on the date on which the 

2 total capacity of dispatchable zero3 emission technologies in the United 

4 States is greater than 5 gigawatts, as 

5 determined by the Secretary, 1.25; 

6 ‘‘(II) for the period beginning on 

7 the day after the date of expiration of 

8 the period described in subclause (I) 

9 and ending on the date on which the 

10 total capacity of dispatchable zero11 emission technologies in the United 

12 States is greater than 10 gigawatts, 

13 as determined by the Secretary, 1.2; 

14 ‘‘(III) for the period beginning on 

15 the day after the date of expiration of 

16 the period described in subclause (II) 

17 and ending on the date on which the 

18 total capacity of dispatchable zero19 emission technologies in the United 

20 States is greater than 15 gigawatts, 

21 as determined by the Secretary, 1.15; 

22 and 

23 ‘‘(IV) for the period beginning on 

24 the day after the date of expiration of 

25 the period described in subclause (III) 


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1 and ending on the date on which the 

2 total capacity of dispatchable zero3 emission technologies in the United 

4 States is greater than 20 gigawatts, 

5 as determined by the Secretary, 1.1; 

6 and 

7 ‘‘(ii) for a dispatchable low-emission 

8 technology described in subparagraph 

9 (A)(iii)— 

10 ‘‘(I) for the period beginning on 

11 the date of enactment of this section 

12 and ending on the date on which the 

13 total capacity of dispatchable low14 emission technologies and 

15 dispatchable zero-emission tech16 nologies in the United States is great17 er than 5 gigawatts, as determined by 

18 the Secretary, 1.25; 

19 ‘‘(II) for the period beginning on 

20 the day after the date of expiration of 

21 the period described in subclause (I) 

22 and ending on the date on which the 

23 total capacity of dispatchable low24 emission technologies and 

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•HR 2597 IH

1 nologies in the United States is great2 er than 10 gigawatts, as determined 

3 by the Secretary, 1.2; 

4 ‘‘(III) for the period beginning on 

5 the day after the date of expiration of 

6 the period described in subclause (II) 

7 and ending on the date on which the 

8 total capacity of dispatchable low9 emission technologies and 

10 dispatchable zero-emission tech11 nologies in the United States is great12 er than 15 gigawatts, as determined 

13 by the Secretary, 1.15; and 

14 ‘‘(IV) for the period beginning on 

15 the day after the date of expiration of 

16 the period described in subclause (III) 

17 and ending on the date on which the 

18 total capacity of dispatchable low19 emission technologies and 

20 dispatchable zero-emission tech21 nologies in the United States is great22 er than 20 gigawatts, as determined 

23 by the Secretary, 1.1. 


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•HR 2597 IH

1 ‘‘(C) PHASE-OUT.—The quantity of Fed2 eral clean energy credits issued under this sec3 tion to— 

4 ‘‘(i) a generator described in subpara5 graph (A)(i) that is— 

6 ‘‘(I) a qualified dispatchable low7 emission technology shall be deter8 mined in accordance with subpara9 graph (A)(iii), effective beginning on 

10 the earlier of— 

11 ‘‘(aa) the date on which the 

12 qualified dispatchable low-emis13 sion technology has been in serv14 ice for 10 years; and 

15 ‘‘(bb) January 1, 2035; and 

16 ‘‘(II) a qualified dispatchable 

17 zero-emission technology shall be de18 termined in accordance with subpara19 graph (A)(ii), effective beginning on 

20 the date on which the qualified 

21 dispatchable zero-emission technology 

22 has been in service for 10 years; 

23 ‘‘(ii) a generator described in subpara24 graph (A)(ii) shall be determined in ac25 cordance with paragraphs (1) through (6), 


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•HR 2597 IH

1 effective beginning on January 1, 2050; 

2 and 

3 ‘‘(iii) a generator described in sub4 paragraph (A)(iii) shall be determined in 

5 accordance with paragraphs (1) through 

6 (6), effective beginning on January 1, 

7 2040. 

8 ‘‘(D) PROHIBITION ON DOUBLE RE9 CEIPTS.—A generator that receives Federal 

10 clean energy credits under subparagraph (A) 

11 may not receive any additional Federal clean 

12 energy credit under any of paragraphs (1) 

13 through (6). 

14 ‘‘(g) DETERMINATION OF CARBON INTENSITY AND

15 CREDIT VALUE.— 

16 ‘‘(1) IN GENERAL.—For purposes of deter17 mining the quantity of Federal clean energy credits 

18 under subsection (f), except as otherwise provided in 

19 this subsection, the Secretary shall determine the 

20 carbon intensity of each generator using data and 

21 methods from the Air Emission Measurement Center 

22 of the Environmental Protection Agency for emission 

23 testing and monitoring, including— 

24 ‘‘(A) Continuous Emission Monitoring Sys25 tems; and 


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•HR 2597 IH

1 ‘‘(B) Predictive Emission Monitoring Sys2 tems. 

3 ‘‘(2) NATURAL GAS ADJUSTMENT.—Except as 

4 provided in paragraph (4), the Secretary shall adjust 

5 the carbon intensity determined under paragraph (1) 

6 for each generator using natural gas by applying the 

7 methane leakage rates assumed in the 9-region 

8 MARKAL Database of the Environmental Protec9 tion Agency (commonly known as the ‘EPAUS9R 

10 database’). 

11 ‘‘(3) NONEMITTING GENERATORS.—Except as 

12 provided in paragraph (4), the Secretary shall assign 

13 a carbon intensity of zero for any generator that 

14 does not produce emissions on electric energy gen15 eration, including any generator that uses renewable 

16 energy, hydropower, or nuclear power. 

17 ‘‘(4) DETERMINATION AND NATIONAL ACADEMY

18 OF SCIENCES STUDY.—The Secretary shall— 

19 ‘‘(A) not later than 180 days after the date 

20 of enactment of this section, enter into an 

21 agreement with the National Academy of 

22 Sciences, under which the Academy shall— 

23 ‘‘(i) evaluate data, models, and meth24 odologies for quantifying lifecycle green25 house gas emissions associated with generVerDate Sep 11 2014 22:18 May 15, 2019 Jkt 089200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 \\ALPHA3\E\BILLS\H2597.IH H2597

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1 ating electric energy from each type of sig2 nificant source of clean energy, including 

3 the sources described in subparagraphs (A) 

4 and (B) of subsection (b)(8); 

5 ‘‘(ii) evaluate data, models, and meth6 odologies for determining the appropriate 

7 credit value for use in the quantification of 

8 Federal clean energy credits under sub9 section (f) for— 

10 ‘‘(I) qualified renewable biomass, 

11 taking into consideration total 

12 lifecycle carbon dynamics, including— 

13 ‘‘(aa) carbon absorbed 

14 through the regrowth of vegeta15 tion; 

16 ‘‘(bb) avoided decomposition 

17 relating to the full fuel lifecycle; 

18 ‘‘(cc) carbon sink value from 

19 land use changes and temporal 

20 changes in forest carbon seques21 tration; and 

22 ‘‘(dd) lifecycle greenhouse 

23 gas emissions, including— 

24 ‘‘(AA) direct green25 house gas emissions; and 


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1 ‘‘(BB) significant indi2 rect greenhouse gas emis3 sions, including all stages of 

4 fuel and feedstock produc5 tion and distribution and 

6 feedstock generation or ex7 traction through the dis8 tribution and delivery of the 

9 finished fuel to electric con10 sumers; 

11 ‘‘(II) qualified waste-to-energy, 

12 taking into consideration total 

13 lifecycle carbon dynamics, including— 

14 ‘‘(aa) avoided decomposition 

15 relating to the feedstock lifecycle; 

16 and 

17 ‘‘(bb) lifecycle greenhouse 

18 gas emissions, including— 

19 ‘‘(AA) direct green20 house gas emissions; and 

21 ‘‘(BB) indirect green22 house gas emissions; and 

23 ‘‘(III) qualified low-carbon fuels, 

24 taking into consideration lifecycle 

25 greenhouse gas emissions, including— 


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1 ‘‘(aa) direct greenhouse gas 

2 emissions; and 

3 ‘‘(bb) significant indirect 

4 greenhouse gas emissions, includ5 ing— 

6 ‘‘(AA) all stages of fuel 

7 and feedstock production 

8 and distribution; and 

9 ‘‘(BB) feedstock gen10 eration or extraction 

11 through the distribution and 

12 delivery of the finished fuel 

13 to electric consumers; 

14 ‘‘(iii) evaluate the appropriateness of 

15 the definitions contained in subsection (b) 

16 of the terms— 

17 ‘‘(I) ‘qualified renewable bio18 mass’, taking into consideration 

19 whether the definition should be ex20 panded or contracted; 

21 ‘‘(II) ‘qualified waste-to-energy’; 

22 and 

23 ‘‘(III) ‘qualified low-carbon fuel’; 

24 ‘‘(iv) if it is determined under clause 

25 (iii)(I) that the definition of the term 


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1 ‘qualified renewable biomass’ should be ex2 panded, evaluate tools for determining the 

3 allowable carbon stock removal levels dur4 ing defined forest management operations; 

5 and 

6 ‘‘(v) not later than 540 days after the 

7 date of enactment of this section, publish 

8 a report that includes— 

9 ‘‘(I) a description of the evalua10 tions under clauses (i) through (iv); 

11 and 

12 ‘‘(II) recommendations for— 

13 ‘‘(aa) determining the car14 bon intensity, accounting for 

15 lifecycle greenhouse gas emis16 sions, of electric energy gen17 erated from each type of signifi18 cant source of clean energy evalu19 ated under clause (i); 

20 ‘‘(bb) determining the credit 

21 value of electric energy generated 

22 from qualified renewable bio23 mass, qualified waste-to-energy, 

24 and qualified low-carbon fuels; 


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1 ‘‘(cc) if applicable, changes 

2 to the definitions of the terms 

3 ‘qualified renewable biomass’, 

4 ‘qualified waste-to-energy’, and 

5 ‘qualified low-carbon fuel’; and 

6 ‘‘(dd) if applicable, deter7 mining the allowable carbon 

8 stock removal levels during de9 fined forest management oper10 ations; 

11 ‘‘(B) not later than 1 year after the date 

12 of publication of the report under subparagraph 

13 (A)(v), after providing notice an opportunity for 

14 public comment, promulgate regulations, taking 

15 into consideration the report, for— 

16 ‘‘(i) calculating lifecycle greenhouse 

17 gas emissions of electric energy generated 

18 from each type of significant source of 

19 clean energy evaluated under subparagraph 

20 (A)(i); 

21 ‘‘(ii) determining the carbon intensity 

22 of electric energy generated from each type 

23 of significant source of clean energy evalu24 ated under subparagraph (A)(i); and 


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1 ‘‘(iii) determining the credit value of 

2 electric energy generated from qualified re3 newable biomass, qualified waste-to-energy, 

4 and qualified low-carbon fuels; and 

5 ‘‘(C) if recommended in the report under 

6 subparagraph (A)(v)(II)(cc), submit to Con7 gress recommendations relating to changes to 

8 the definitions of the terms ‘qualified renewable 

9 biomass’, ‘qualified waste-to-energy’, and ‘quali10 fied low-carbon fuel’ for purposes of this sec11 tion. 

12 ‘‘(5) CONSULTATION.—The Secretary shall con13 sult with— 

14 ‘‘(A) in determining carbon intensities of 

15 generators pursuant to paragraph (1) and mak16 ing adjustments pursuant to paragraph (2), the 

17 Administrator of the Environmental Protection 

18 Agency; 

19 ‘‘(B) in promulgating regulations for calcu20 lating lifecycle greenhouse gas emissions pursu21 ant to paragraph (4)(B)(i) and determining 

22 carbon intensities pursuant to paragraph 

23 (4)(B)(ii), the Administrator of the Environ24 mental Protection Agency; 


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1 ‘‘(C) in promulgating regulations for deter2 mining appropriate credit values pursuant to 

3 paragraph (4)(B)(iii)— 

4 ‘‘(i) the Administrator of the Environ5 mental Protection Agency; 

6 ‘‘(ii) the Secretary of Agriculture; and 

7 ‘‘(iii) the Secretary of the Interior; 

8 and 

9 ‘‘(D) in making recommendations to Con10 gress under paragraph (4)(C), the Adminis11 trator of the Environmental Protection Agency, 

12 acting in consultation with the Scientific Advi13 sory Board of the Environmental Protection 

14 Agency. 

15 ‘‘(h) CIVIL PENALTIES.— 

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

17 retail electricity supplier that fails to meet the re18 quirements of this section shall be subject to a civil 

19 penalty in an amount equal to the product obtained 

20 by multiplying— 

21 ‘‘(A) the number of kilowatt-hours of elec22 tric energy sold by the retail electricity supplier 

23 to electric consumers in violation of subsection 

24 (c); and 


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1 ‘‘(B) 200 percent of the value of the alter2 native compliance payment, as adjusted under 

3 subsection (i)(2). 

4 ‘‘(2) WAIVERS AND MITIGATION.— 

5 ‘‘(A) FORCE MAJEURE.—The Secretary 

6 may mitigate or waive a civil penalty under 

7 paragraph (1) if the applicable retail electricity 

8 supplier was unable to comply with an applica9 ble requirement of this section for reasons out10 side of the reasonable control of the retail elec11 tricity supplier. 

12 ‘‘(B) REDUCTION FOR STATE PEN13 ALTIES.—The Secretary shall reduce the 

14 amount of a penalty determined under para15 graph (1) by the amount paid by the applicable 

16 retail electricity supplier to a State for failure 

17 to comply with the requirement of a State re18 newable energy program, if the State require19 ment is more stringent than the applicable re20 quirement of this section. 

21 ‘‘(3) PROCEDURE FOR ASSESSING PENALTY.— 

22 The Secretary shall assess a civil penalty under this 

23 subsection in accordance with section 333(d) of the 

24 Energy Policy and Conservation Act (42 U.S.C. 

25 6303(d)). 


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1 ‘‘(i) ALTERNATIVE COMPLIANCE PAYMENTS.— 

2 ‘‘(1) IN GENERAL.—A retail electricity supplier 

3 may satisfy the requirements of subsection (c), in 

4 whole or in part, by submitting, in lieu of Federal 

5 clean energy credits issued under this section, a pay6 ment equal to the amount required under subsection 

7 (d)(1)(C), in accordance with such regulations as the 

8 Secretary may promulgate, subject to paragraph (2). 

9 ‘‘(2) ADJUSTMENT.—Not later than December 

10 1 of the second full calendar year beginning after 

11 the date of enactment of this section, and annually 

12 thereafter, the Secretary shall— 

13 ‘‘(A) increase the rate of the alternative 

14 compliance payment under subsection (d)(1)(C) 

15 by— 

16 ‘‘(i) during the period beginning on 

17 the date of enactment of this section and 

18 ending on December 31, 2029, 3 percent; 

19 and 

20 ‘‘(ii) beginning on January 1, 2030, 5 

21 percent; and 

22 ‘‘(B) additionally adjust that rate for infla23 tion, as the Secretary determines to be nec24 essary. 


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1 ‘‘(j) STATE ENERGY EFFICIENCY, CLEAN ENERGY

2 DEPLOYMENT, AND ELECTRIC CONSUMER BILL REDUC3 TION PROGRAM.— 

4 ‘‘(1) ESTABLISHMENT.—Not later than Decem5 ber 1 of the first calendar year beginning after the 

6 date of enactment of this section, the Secretary shall 

7 establish a State energy efficiency, clean energy de8 ployment, and electric consumer bill reduction pro9 gram. 

10 ‘‘(2) FUNDING.—All funds collected by the Sec11 retary as alternative compliance payments under 

12 subsection (i), or as civil penalties under subsection 

13 (h), shall be used solely to carry out the program 

14 under this subsection. 

15 ‘‘(3) DISTRIBUTION TO STATES.— 

16 ‘‘(A) IN GENERAL.—Of the funds de17 scribed in paragraph (2), an amount equal to 

18 75 percent shall be used by the Secretary, with19 out further appropriation or fiscal year limita20 tion, to provide funds to States, in an amount 

21 determined proportionally based on the 

22 amounts collected from each State— 

23 ‘‘(i) for the implementation of State 

24 energy efficiency plans under section 362 


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1 of the Energy Policy and Conservation Act 

2 (42 U.S.C. 6322); 

3 ‘‘(ii) for the conduct of clean energy 

4 programs in the State; and 

5 ‘‘(iii) to carry out activities to reduce 

6 the amount of electricity bills for house7 holds in the State below 300 percent of the 

8 poverty line (as defined in section 673 of 

9 the Community Services Block Grant Act 

10 (42 U.S.C. 9902)). 

11 ‘‘(B) ACTION BY STATES.—A State that 

12 receives funds under this paragraph shall main13 tain such records and evidence of compliance as 

14 the Secretary may require. 

15 ‘‘(4) GUIDELINES AND CRITERIA.— 

16 ‘‘(A) BUY AMERICAN COMPLIANCE.—The 

17 funds made available under the program estab18 lished under this subsection shall not be used 

19 for a project unless the project achieves compli20 ance with all applicable requirements of chapter 

21 83 of title 41, United States Code (formerly 

22 known as the ‘Buy American Act’). 

23 ‘‘(B) DAVIS-BACON COMPLIANCE.— 

24 ‘‘(i) IN GENERAL.—All laborers and 

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1 rectly, or assisted in whole or in part, by 

2 this section shall be paid wages at rates 

3 not less than those prevailing on projects 

4 of a character similar in the locality as de5 termined by the Secretary of Labor in ac6 cordance with subchapter IV of chapter 31 

7 of part A of subtitle II of title 40, United 

8 States Code (commonly referred to as the 

9 ‘Davis-Bacon Act’). 

10 ‘‘(ii) AUTHORITY.—With respect to 

11 the labor standards specified in this sub12 paragraph, the Secretary of Labor shall 

13 have the authority and functions set forth 

14 in Reorganization Plan Numbered 14 of 

15 1950 (64 Stat. 1267; 5 U.S.C. App.) and 

16 section 3145 of title 40, United States 

17 Code. 

18 ‘‘(C) ADDITIONAL GUIDELINES AND CRI19 TERIA.—The Secretary may issue such addi20 tional guidelines and criteria for the program 

21 under this subsection as the Secretary deter22 mines to be appropriate. 

23 ‘‘(k) STATE PROGRAMS.— 

24 ‘‘(1) SAVINGS PROVISION.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), nothing in this section affects the 

3 authority of a State or a political subdivision of 

4 a State to adopt or enforce any law or regula5 tion relating to— 

6 ‘‘(i) clean or renewable energy; or 

7 ‘‘(ii) the regulation of any retail elec8 tricity supplier. 

9 ‘‘(B) FEDERAL LAW.—No law or regula10 tion of a State or a political subdivision of a 

11 State may relieve a retail electricity supplier 

12 from the obligation to comply with an applica13 ble requirement of this section. 

14 ‘‘(2) COORDINATION.—The Secretary, in con15 sultation with States that have clean and renewable 

16 energy programs in effect, shall facilitate, to the 

17 maximum extent practicable, coordination between 

18 the Federal clean energy program under this section 

19 and the relevant State clean and renewable energy 

20 programs. 

21 ‘‘(l) INFORMATION COLLECTION.— 

22 ‘‘(1) IN GENERAL.—The Secretary may require 

23 any retail electricity supplier, generator, or any 

24 other entity that the Secretary determines appro25 priate to submit to the Secretary any information 


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1 the Secretary determines to be appropriate to carry 

2 out this section. 

3 ‘‘(2) FAILURE TO SUBMIT; FALSE OR MIS4 LEADING INFORMATION.—An entity required to sub5 mit information pursuant to paragraph (1) that fails 

6 to submit the information, or submits false or mis7 leading information, shall be in violation of this sec8 tion. 

9 ‘‘(m) REPORT ON CLEAN ENERGY RESOURCES THAT

10 DO NOT GENERATE ELECTRIC ENERGY.— 

11 ‘‘(1) IN GENERAL.—Not later than 3 years 

12 after the date of enactment of this section, the Sec13 retary shall submit to Congress a report examining 

14 mechanisms to supplement the standard under this 

15 section by addressing clean energy resources that do 

16 not generate electric energy but that may substan17 tially reduce overall energy emissions, including en18 ergy efficiency, demand response, flexible load, bene19 ficial electrification, microgrids, biomass converted 

20 to thermal energy, geothermal energy collected using 

21 heat pumps, thermal energy delivered through dis22 trict heating systems, and waste heat used as indus23 trial process heat. 

24 ‘‘(2) POTENTIAL INTEGRATION.—The report 

25 under paragraph (1) shall examine the benefits and 


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1 challenges of integrating the additional clean energy 

2 resources into the standard established by this sec3 tion, including— 

4 ‘‘(A) the extent to which such an integra5 tion would achieve the purposes of this section; 

6 ‘‘(B) the manner in which a baseline de7 scribing the use of the resources could be devel8 oped that would ensure that only incremental 

9 action that increased the use of the resources 

10 received credit; and 

11 ‘‘(C) the challenges of crediting the re12 sources, alone or in combination with other re13 sources, in a comparable manner between orga14 nized markets and vertically integrated markets 

15 to incentivize sufficient deployment of those re16 sources to support efficient integration into the 

17 standard. 

18 ‘‘(3) COMPLEMENTARY POLICIES.—The report 

19 under paragraph (1) shall examine the benefits and 

20 challenges of using complementary policies or stand21 ards, other than the standard established under this 

22 section, to provide effective incentives for using the 

23 additional clean energy resources. 

24 ‘‘(4) LEGISLATIVE RECOMMENDATIONS.—As 

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1 retary shall provide legislative recommendations for 

2 changes to the standard established under this sec3 tion or new complementary policies that would pro4 vide effective incentives for using the additional 

5 clean energy resources. 

6 ‘‘(n) PERIODIC REVIEW AND ADJUSTMENTS.— 

7 ‘‘(1) NATIONAL ACADEMY OF SCIENCES RE8 VIEW.—The Secretary shall enter into an agreement 

9 with the National Academy of Sciences under which 

10 the Academy shall, not later than July 1, 2028, and 

11 every 10 years thereafter, submit to Congress and 

12 the Secretary a comprehensive evaluation of all as13 pects of the standard established under this section, 

14 including— 

15 ‘‘(A) an evaluation of the effectiveness of 

16 the standard in decreasing the aggregate net 

17 carbon dioxide equivalent emissions in the elec18 tric sector, including— 

19 ‘‘(i) a comparison of— 

20 ‘‘(I) the actual carbon dioxide 

21 equivalent emissions associated with 

22 the electric sector for the preceding 

23 calendar year; and 


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1 ‘‘(II)(aa) for the initial review, 

2 900,000,000 metric tons of carbon di3 oxide equivalent; 

4 ‘‘(bb) for the review conducted 

5 with respect to calendar year 2038, 

6 600,000,000 metric tons of carbon di7 oxide equivalent; or 

8 ‘‘(cc) if the Academy determines 

9 that an emissions value described in 

10 item (aa) or (bb) is inappropriate 

11 after taking into consideration 

12 changes in electric energy consump13 tion, and in emissions relating to en14 ergy use outside of the electric sector, 

15 such emissions as the Academy deter16 mines to be appropriate for the appli17 cable review year; and 

18 ‘‘(ii) an evaluation of the methods by 

19 which the quantity of Federal clean energy 

20 credits is determined, including— 

21 ‘‘(I) alternative methods of quan22 tifying credits for clean energy re23 sources eligible to receive Federal 

24 clean energy credits under this section 

25 that may be more effective, such as— 


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1 ‘‘(aa) issuing credits based 

2 on the difference between the 

3 carbon intensity of a generator 

4 and the marginal emissions rate 

5 in a given hour and balancing 

6 area; and 

7 ‘‘(bb) adjusting the innova8 tion multipliers; and 

9 ‘‘(II) potential methods of cred10 iting other clean energy resources not 

11 already addressed in the report under 

12 subsection (m); 

13 ‘‘(B) the impact of the standard on the re14 liability, resilience, security, and safety of elec15 tricity generation, transmission, and distribu16 tion; 

17 ‘‘(C) the impact of the standard on the 

18 function of regulated and deregulated electricity 

19 markets; 

20 ‘‘(D) the net benefits or costs of the stand21 ard to the United States and the States, includ22 ing— 

23 ‘‘(i) the effects on electricity demand 

24 and prices; 


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1 ‘‘(ii) the economic development bene2 fits of investment; 

3 ‘‘(iii) lifecycle environmental and safe4 ty costs and benefits; 

5 ‘‘(iv) the impacts on public health and 

6 health care costs; and 

7 ‘‘(v) avoided costs relating to environ8 mental damages and adaptation invest9 ments that otherwise would have been re10 quired; 

11 ‘‘(E) the impact of the standard on the 

12 emissions of behind-the-meter and off-grid elec13 tricity generation; 

14 ‘‘(F) recommendations regarding potential 

15 changes to the standard, such as— 

16 ‘‘(i) to regulations and procedures for 

17 implementing the standard; 

18 ‘‘(ii) to the structure and specific de19 sign elements of the standard, such as— 

20 ‘‘(I) if the comparison of emis21 sions under paragraph (1)(A)(i) re22 veals that actual emissions for the 

23 electric sector are greater than the re24 quired emissions under paragraph 

25 (1)(A)(i)(II), changes to the values of 


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1 the growth rates, the applicable car2 bon intensity, and alternative compli3 ance payment to eliminate the gap be4 tween actual and required emissions; 

5 ‘‘(II) the quantification of Fed6 eral clean energy credits; and 

7 ‘‘(III) the value of and eligibility 

8 for the innovation multiplier; and 

9 ‘‘(iii) to the structure and administra10 tion of the Federal clean energy credit 

11 trading program; and 

12 ‘‘(G) recommendations regarding potential 

13 changes to related public policies or creation of 

14 new complementary policies. 

15 ‘‘(2) RECOMMENDATIONS TO CONGRESS.—Not 

16 later than January 1, 2029, and not less frequently 

17 than once every 10 years thereafter, the Secretary 

18 shall submit to the Committee on Energy and Nat19 ural Resources of the Senate and the Committee on 

20 Energy and Commerce of the House of Representa21 tives a report including recommendations for modi22 fications and improvements to the standard estab23 lished under this section, including an explanation of 

24 the inconsistencies, if any, between— 


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1 ‘‘(A) the recommendations of the Sec2 retary; and 

3 ‘‘(B) the recommendations included in the 

4 evaluation of the National Academy of Sciences 

5 under paragraph (1). 

6 ‘‘(3) CONGRESSIONAL ACTION.—Not later than 

7 January 1, 2030, and not less frequently than once 

8 every 10 years thereafter, Congress shall enact legis9 lation that amends this section or establishes new 

10 policies based on the recommendations submitted by 

11 the Secretary under paragraph (2). 

12 ‘‘(4) ADJUSTMENTS UPON FAILURE OF CON13 GRESSIONAL ACTION.— 

14 ‘‘(A) IN GENERAL.—If Congress fails to 

15 enact legislation under paragraph (3) by an ap16 plicable deadline, the Secretary— 

17 ‘‘(i) shall, in any case in which the 

18 comparison of emissions under paragraph 

19 (1)(A)(i) reveals that actual emissions for 

20 the electric sector are greater than the re21 quired emissions under paragraph 

22 (1)(A)(i)(II), make such compensatory ad23 justments to the standard established 

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1 sistent with, the findings and recommenda2 tions of the National Academy of Sciences 

3 under paragraph (1)(F)(ii)(I), to eliminate 

4 the gap between actual and required emis5 sions by not later than 3 years after the 

6 date of the applicable deadline by— 

7 ‘‘(I) increasing the fast growth 

8 rate; 

9 ‘‘(II) increasing the slow growth 

10 rate; 

11 ‘‘(III) increasing the small 

12 growth rate; 

13 ‘‘(IV) decreasing the applicable 

14 carbon intensity; 

15 ‘‘(V) increasing the alternative 

16 compliance payment under subsection 

17 (d)(1)(C); or 

18 ‘‘(VI) taking a combination of ac19 tions described in subclauses (I) 

20 through (V); and 

21 ‘‘(ii) if the evaluation of the crediting 

22 system under paragraph (1)(A)(ii) de23 scribes a more-effective method of issuing 

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1 tions and improvements to the standard 

2 based on, and consistent with, the rec3 ommendations under paragraph (1)(F)(ii) 

4 that would have the effect of decreasing 

5 economy-wide emissions. 

6 ‘‘(B) REQUIREMENT.—In making the com7 pensatory adjustments under subparagraph 

8 (A)(i), the Secretary shall ensure that retail 

9 electricity suppliers that have exceeded the pro10 portionate share of the reductions of the retail 

11 electricity suppliers required under paragraph 

12 (1)(A)(i)(II) shall not bear significant addi13 tional costs under this paragraph. 

14 ‘‘(o) REGULATIONS.—Not later than 1 year after the 

15 date of enactment of this section, the Secretary shall pro16 mulgate regulations to implement this section.’’. 

17 (b) CONFORMING AMENDMENT.—The table of con18 tents of the Public Utility Regulatory Policies Act of 1978 

19 (16 U.S.C. prec. 2601) is amended by adding at the end 

20 of the items relating to title VI the following: 

‘‘609. Rural and remote communities electrification grants. 

‘‘610. Federal clean energy standard.’’. 

21 SEC. 3. CLEAN ENERGY RESEARCH, DEVELOPMENT, DEM22 ONSTRATION, AND DEPLOYMENT PROGRAM. 

23 (a) ESTABLISHMENT.—The Secretary of Energy 

24 shall establish a cross-cutting national program within the 


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1 Department of Energy for the research, development, 

2 demonstration, and deployment of clean energy tech3 nologies and portfolios for the purpose of meeting the re4 quirements established under section 610 of the Public 

5 Utility Regulatory Policies Act of 1978 (as added by sec6 tion 2(a)). 

7 (b) REQUIREMENTS.—In establishing the program 

8 under subsection (a), the Secretary of Energy shall— 

9 (1) identify and coordinate, across all relevant 

10 program offices throughout the Department of En11 ergy, key areas of existing and future research with 

12 respect to a portfolio of technologies and approaches; 

13 (2) with respect to dispatchable low-emission 

14 technologies and dispatchable zero-emission tech15 nologies (as defined in sections 610(b) of the Public 

16 Utility Regulatory Policies Act of 1978 (as added by 

17 section 2(a))— 

18 (A) prioritize programs that would accel19 erate the research, development, demonstration, 

20 and deployment of technologies by— 

21 (i) identifying specific applications of 

22 those technologies; 

23 (ii) cataloguing existing Department 

24 of Energy programs and research to ad25 vance the specific applications; and 


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1 (iii) establishing a center within the 

2 Department of Energy to coordinate re3 search priorities and demonstration pro4 grams for the specific applications; 

5 (B) adopt long-term cost, performance, 

6 and deployment targets for the specific applica7 tions identified under subparagraph (A)(i), in8 cluding a goal of conducting not fewer than 5 

9 technology demonstrations in the United States 

10 by December 31, 2030; 

11 (C) identify opportunities to work with 

12 States and the private sector for technology 

13 demonstration; and 

14 (D) identify barriers to the demonstration 

15 and deployment of those technologies; 

16 (3) identify approaches to expedite deployment 

17 of clean energy technologies by evaluating and avoid18 ing or minimizing potential impacts to natural com19 munities, ecological resources, and high-quality 

20 working land; and 

21 (4) recommend to Congress any additional 

22 funding needs or policy changes necessary to imple23 ment the program. 


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1 (c) FUNDING.—Subject to the availability of appro2 priations, the Secretary of Energy may use amounts avail3 able to the Secretary to carry out this section. 

Æ 


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