II 

116TH CONGRESS 

1ST SESSION S. 1359 

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 SENATE OF THE UNITED STATES 

MAY 8, 2019 

Ms. SMITH (for herself, Mr. HEINRICH, Mr. KAINE, Mr. WHITEHOUSE, and 

Mr. SCHATZ) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

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’’. 

6 SEC. 2. FEDERAL CLEAN ENERGY STANDARD. 

7 (a) IN GENERAL.—Title VI of the Public Utility Reg8 ulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is 

9 amended by adding at the end the following: 


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

2 ‘‘(a) PURPOSE.—The purpose of this section is to es3 tablish a technology-neutral, market-oriented standard for 

4 electric energy generation that— 

5 ‘‘(1) stimulates clean energy innovation and al6 lows the United States to achieve a net-zero emis7 sion electric sector at the lowest cost; 

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

9 provide regulatory certainty, while helping to ensure 

10 that the United States is the leader and dominant 

11 competitor in the global clean energy transition; and 

12 ‘‘(3) will result in— 

13 ‘‘(A) hundreds of billions of dollars in do14 mestic health and environmental benefits by the 

15 mid-21st century; and 

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

17 United States. 

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

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

20 term ‘applicable carbon intensity’ means 0.4 metric 

21 tons of carbon dioxide equivalent per megawatt-hour. 

22 ‘‘(2) APPLICABLE CLEAN ENERGY PERCENT23 AGE.—The term ‘applicable clean energy percent24 age’, with respect to a retail electricity supplier, 

25 means the clean energy percentage applicable to the 


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1 retail electricity supplier for the relevant calendar 

2 year under subsection (c). 

3 ‘‘(3) BASE QUANTITY.— 

4 ‘‘(A) IN GENERAL.—The term ‘base quan5 tity’, with respect to a retail electricity supplier 

6 for a calendar year, means the total quantity of 

7 electric energy consumed by electric customers 

8 of the retail electricity supplier, expressed in 

9 megawatt-hours, during the calendar year, in10 cluding— 

11 ‘‘(i) the quantity of electric energy 

12 sold by the retail electricity supplier to 

13 electric customers for purposes other than 

14 resale; and 

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

16 generation consumed by electric consumers 

17 served by the retail electricity supplier. 

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

19 subparagraph (A), not later than 180 days 

20 after the date of enactment of this section, the 

21 Secretary shall develop appropriate processes 

22 for determining the quantity of behind-the23 meter generation consumed by electric con24 sumers served by a retail electricity supplier, in25 cluding by requiring from the retail electricity 


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1 supplier relevant documentation of behind-the2 meter electric energy consumption, such as 

3 records associated with net-metering. 

4 ‘‘(4) BASELINE PERCENTAGE.—The term ‘base5 line percentage’ means— 

6 ‘‘(A) for a retail electricity supplier in op7 eration on the date of enactment of this section, 

8 the clean energy percentage of the retail elec9 tricity supplier calculated for the calendar year 

10 in which this section is enacted; and 

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

12 commences operation after the date of enact13 ment of this section, such clean energy percent14 age as the Secretary determines to be appro15 priate. 

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

17 term ‘behind-the-meter generation’ means the gen18 eration of clean energy using a system that operates 

19 on the customer side of the applicable utility meter, 

20 subject to the condition that the retail electricity 

21 supplier serving the generator shall submit to the 

22 Secretary, not less frequently than annually, 

23 verification of the quantity of that generation in 

24 such form, in such manner, and containing such in25 formation as the Secretary may require. 


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1 ‘‘(6) CARBON DIOXIDE EQUIVALENT.— 

2 ‘‘(A) IN GENERAL.—The term ‘carbon di3 oxide equivalent’ means the number of metric 

4 tons of carbon dioxide emissions with the same 

5 global warming potential over a 100-year period 

6 as 1 metric ton of another greenhouse gas. 

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

8 purposes of subparagraph (A), global warming 

9 potential shall be determined in accordance with 

10 the Fifth Assessment Report of the Intergov11 ernmental Panel on Climate Change. 

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

13 intensity’ means the carbon dioxide equivalent emis14 sions associated with the generation of 1 megawatt15 hour of electric energy by a generator. 

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

17 means electric energy that is— 

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

19 ‘‘(i) renewable energy; 

20 ‘‘(ii) qualified renewable biomass; 

21 ‘‘(iii) hydropower; 

22 ‘‘(iv) nuclear power; 

23 ‘‘(v) qualified waste-to-energy; 

24 ‘‘(vi) qualified low-carbon fuels; 


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1 ‘‘(vii) a qualified combined heat and 

2 power system; or 

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

4 manner that ensures that the facility does 

5 not exceed the applicable carbon intensity; 

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

7 ‘‘(i) captures the carbon dioxide 

8 from— 

9 ‘‘(I) a waste stream of the facil10 ity; 

11 ‘‘(II) another waste stream; or 

12 ‘‘(III) the atmosphere directly; 

13 and 

14 ‘‘(ii) prevents the release of the cap15 tured carbon dioxide into the atmosphere; 

16 or 

17 ‘‘(C) dispatched from a qualified energy 

18 storage system. 

19 ‘‘(9) CLEAN ENERGY PERCENTAGE.— 

20 ‘‘(A) IN GENERAL.—The term ‘clean en21 ergy percentage’ means the percentage of clean 

22 energy consumed by all electric consumers of a 

23 retail electricity supplier. 

24 ‘‘(B) CALCULATION.—For purposes of sub25 paragraph (A), the clean energy percentage of 


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1 a retail electricity supplier shall be equal to the 

2 quotient obtained by dividing— 

3 ‘‘(i) the sum of— 

4 ‘‘(I) the quantity of clean energy 

5 sold by the retail electricity supplier 

6 to electric consumers; and 

7 ‘‘(II) the quantity of behind-the8 meter generation consumed by electric 

9 consumers served by the retail elec10 tricity supplier; by 

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

12 electricity supplier. 

13 ‘‘(C) DETERMINATION.— 

14 ‘‘(i) IN GENERAL.—For purposes of 

15 subparagraph (B), not later than 180 days 

16 after the date of enactment of this section, 

17 the Secretary shall develop a process for 

18 determining the quantities of— 

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

20 electricity supplier to electric con21 sumers, taking into account— 

22 ‘‘(aa) the need to quantify, 

23 without double counting, appro24 priate quantities of clean en25 ergy— 


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1 ‘‘(AA) owned by the re2 tail electricity supplier; 

3 ‘‘(BB) obtained by the 

4 retail electricity supplier 

5 through power purchase 

6 agreements; 

7 ‘‘(CC) imported by the 

8 retail electricity supplier; 

9 ‘‘(DD) purchased by 

10 the retail electricity supplier 

11 from wholesale markets; and 

12 ‘‘(EE) purchased by the 

13 retail electricity supplier 

14 through existing renewable 

15 or clean energy credits and 

16 certificates; and 

17 ‘‘(bb) appropriate dif18 ferences between— 

19 ‘‘(AA) retailers oper20 ating in organized wholesale 

21 markets; and 

22 ‘‘(BB) retailers oper23 ating in vertically integrated 

24 market contexts; and 


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1 ‘‘(II) behind-the-meter generation 

2 consumed by electric consumers 

3 served by a retail electricity supplier, 

4 including by requiring from the retail 

5 electricity supplier relevant docu6 mentation of behind-the-meter electric 

7 energy consumption, such as records 

8 associated with net-metering. 

9 ‘‘(ii) QUANTIFYING CLEAN ENERGY.— 

10 For purposes of quantifying clean energy 

11 and behind-the-meter generation under 

12 clause (i), the Secretary shall use the 

13 methods used to assign a quantity of cred14 its to generators under subsection (f). 

15 ‘‘(10) DISPATCHABLE LOW-EMISSION TECH16 NOLOGY.—The term ‘dispatchable low-emission tech17 nology’ means a generator that uses a technology or 

18 combination of technologies that— 

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

20 than 0.05 metric tons of carbon dioxide equiva21 lent per megawatt-hour; 

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

23 increase, decrease, and stop energy production 

24 on demand; 


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

2 enactment of this section; and 

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

4 technology. 

5 ‘‘(11) DISPATCHABLE ZERO-EMISSION TECH6 NOLOGY.—The term ‘dispatchable zero-emission 

7 technology’ means a generator that uses a tech8 nology or combination of technologies that— 

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

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

11 increase, decrease, and stop energy production 

12 on demand; and 

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

14 enactment of this section. 

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

16 ‘energy storage system’ means any equipment or fa17 cility relating to the electric grid that— 

18 ‘‘(A) is capable of absorbing energy, stor19 ing the energy for a period of time, and dis20 patching the energy as electric energy; and 

21 ‘‘(B) uses mechanical, electrochemical, bio22 chemical, or thermal processes— 

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

24 earlier time for use at a later time; or 


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

2 mechanical process that would otherwise be 

3 wasted for delivery at a later time. 

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

5 term ‘Federal clean energy credit’ means a credit 

6 issued pursuant to subsection (e). 

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

8 means a unit or system of units that— 

9 ‘‘(A) generates not fewer than 20 mega10 watt-hours of electric energy per calendar year; 

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

12 and 

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

14 ‘‘(15) LIFECYCLE GREENHOUSE GAS EMIS15 SIONS.—The term ‘lifecycle greenhouse gas emis16 sions’ means the aggregate quantity of carbon diox17 ide equivalent emissions relating to the full lifecycle 

18 of electric energy production, including— 

19 ‘‘(A) extraction, production, and distribu20 tion of fuels and materials for physical capital; 

21 ‘‘(B) power generation and transmission; 

22 and 

23 ‘‘(C) handling and disposal of waste, by24 products, and end-of-life materials. 


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1 ‘‘(16) QUALIFIED COMBINED HEAT AND POWER

2 SYSTEM.—The term ‘qualified combined heat and 

3 power system’ means a system that— 

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

5 simultaneous or sequential generation of elec6 trical energy and thermal energy; 

7 ‘‘(B) produces at least— 

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

9 the system in the form of electricity; and 

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

11 in the form of useful thermal energy; 

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

13 biomass, uses only qualified renewable biomass; 

14 and 

15 ‘‘(D) operates with an energy efficiency 

16 percentage, as determined in accordance with 

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

18 Code of 1986, of greater than 50 percent. 

19 ‘‘(17) QUALIFIED DISPATCHABLE.— 

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

21 dispatchable’ means— 

22 ‘‘(i) with respect to a dispatchable 

23 low-emission technology, a dispatchable 

24 low-emission technology that— 


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1 ‘‘(I) is 1 of the first 5 original 

2 demonstrations in the United States 

3 of a particular innovative technology 

4 providing not less than 20 megawatts 

5 of electric energy generation capacity; 

6 ‘‘(II) generates revenue from the 

7 sale of electric energy; and 

8 ‘‘(III) is placed into service be9 fore January 1, 2030; and 

10 ‘‘(ii) with respect to a dispatchable 

11 zero-emission technology, means a dis12 patchable zero-emission technology that— 

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

14 demonstrations in the United States 

15 of a particular innovative technology 

16 providing not less than 20 megawatts 

17 of electric energy generation capacity; 

18 ‘‘(II) generates revenue from the 

19 sale of electric energy; and 

20 ‘‘(III) is placed into service be21 fore January 1, 2040. 

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

23 determining whether a dispatchable low-emis24 sion technology or dispatchable zero-emission 

25 technology is an original demonstration of an 


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

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

3 Secretary shall— 

4 ‘‘(i) develop a process that— 

5 ‘‘(I) ensures that each innovative 

6 technology exhibits a significant tech7 nical or economic advancement, as 

8 compared to existing technologies; and 

9 ‘‘(II) includes consideration of an 

10 application submitted to the Secretary 

11 by the owner of the dispatchable low12 emission technology or dispatchable 

13 zero-emission technology; 

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

15 date of submission of an application under 

16 clause (i)(II), make a determination re17 garding whether to approve the applica18 tion; and 

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

20 provide to each owner, the application of 

21 which is approved under clause (ii), a cer22 tification— 

23 ‘‘(I) that the applicable generator 

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1 sion technology or dispatchable zero2 emission technology; and 

3 ‘‘(II) that shall be surrendered to 

4 earn Federal clean energy credits 

5 under subsection (f)(10). 

6 ‘‘(C) TERMINATION OF CERTIFICATION.— 

7 Except as otherwise provided by the Secretary, 

8 a certification provided under subparagraph 

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

10 if the Secretary determines that construction of 

11 the applicable generator— 

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

13 that is 2 years after the date of certifi14 cation; or 

15 ‘‘(ii) has been suspended indefinitely. 

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

17 The term ‘qualified energy storage system’ means an 

18 energy storage system that stores clean energy— 

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

20 curtailed; 

21 ‘‘(B) with verifiable carbon intensity that 

22 does not exceed the applicable carbon intensity; 

23 and 

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

25 credit is issued. 


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

2 ‘qualified generation’ means the number of mega3 watt-hours of electric energy that a generator— 

4 ‘‘(A)(i) generates; or 

5 ‘‘(ii) generates and stores using a con6 nected energy storage system; and 

7 ‘‘(B)(i) sells for resale; 

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

9 electricity supplier, sells to electric consumers; 

10 or 

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

12 generation system, consumes onsite for a useful 

13 purpose. 

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

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

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

17 electric energy that— 

18 ‘‘(i) is produced through any process 

19 (but not including any processes that use 

20 electric energy as an input) that signifi21 cantly limits or avoids greenhouse gas 

22 emissions; and 

23 ‘‘(ii) does not release greenhouse gas 

24 or other pollutant emissions during com25 bustion. 


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

2 low-carbon fuel’ includes— 

3 ‘‘(i) ammonia; and 

4 ‘‘(ii) hydrogen. 

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

6 term ‘qualified renewable biomass’ means— 

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

8 harvested from actively managed or fallow agri9 cultural land that is cleared before the date of 

10 enactment of this section, if the harvesting of 

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

12 organic matter for the applicable land; 

13 ‘‘(B) any planted tree, brush, slash, or res14 idue from an actively managed tree farm dedi15 cated to energy crop production and located on 

16 forest land established for planted tree crop 

17 production before the date of enactment of this 

18 section; 

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

20 actively managed forest that is certified to 

21 achieve compliance with applicable— 

22 ‘‘(i) sustainability standards of the 

23 Forest Stewardship Council; or 


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1 ‘‘(ii) standards endorsed by the Pro2 gramme for the Endorsement of Forest 

3 Certification, including— 

4 ‘‘(I) the Sustainable Forestry Ini5 tiative; and 

6 ‘‘(II) the American Tree Farm 

7 System; 

8 ‘‘(D) algae; 

9 ‘‘(E) nonhazardous plant matter derived 

10 from landscape right-of-way trimmings; and 

11 ‘‘(F) vegetative matter removed from an 

12 area located not more than 200 yards from a 

13 building, residence, or campground for the pur14 pose of hazardous fuels management. 

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

16 term ‘qualified waste-to-energy’ means energy pro17 duced— 

18 ‘‘(A) from the combustion of— 

19 ‘‘(i) post-recycled municipal solid 

20 waste; 

21 ‘‘(ii) gas produced from the gasifi22 cation or pyrolization of post-recycled mu23 nicipal solid waste; 

24 ‘‘(iii) biogas; 

25 ‘‘(iv) landfill methane; 


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1 ‘‘(v) animal waste or animal byprod2 ucts; 

3 ‘‘(vi) food waste; 

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

5 not commonly recyclable, and vegetation 

6 (including trees and trimmings, yard 

7 waste, pallets, railroad ties, crates, and 

8 solid-wood manufacturing and construction 

9 debris), if diverted from or separated from 

10 other waste out of a municipal waste 

11 stream; or 

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

13 paper mill operation, including lignin in 

14 spent pulping liquors; and 

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

16 certified, on an annual basis, is in compliance 

17 with all applicable Federal and State environ18 mental permits, including— 

19 ‘‘(i) in the case of a facility that com20 mences operation before the date of enact21 ment of this section, compliance with emis22 sion standards under sections 112 and, as 

23 applicable, 129 of the Clean Air Act (42 

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

25 date of enactment of this section to new 


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1 facilities within the applicable source cat2 egory; and 

3 ‘‘(ii) in the case of a facility that pro4 duces electric or thermal energy from the 

5 combustion, pyrolization, or gasification of 

6 municipal solid waste, certification that 

7 each local government unit from which the 

8 waste originates operates, participates in 

9 the operation of, contracts for, or other10 wise provides for recycling services for resi11 dents of the local government unit. 

12 ‘‘(23) RENEWABLE ENERGY.—The term ‘renew13 able energy’ means solar, wind, ocean, current, wave, 

14 tidal, or geothermal energy. 

15 ‘‘(24) RETAIL ELECTRICITY SUPPLIER.— 

16 ‘‘(A) IN GENERAL.—The term ‘retail elec17 tricity supplier’, as determined for each cal18 endar year, means an entity in the United 

19 States that sold not fewer than 20 megawatt20 hours of electric energy to electric consumers 

21 for purposes other than resale during the pre22 ceding calendar year. 

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

24 purposes of making a determination under sub25 paragraph (A) with respect to an entity— 


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

2 by an affiliate of the entity to an electric 

3 consumer (other than to a lessee or tenant 

4 of the affiliate) for purposes other than re5 sale may be considered to be a sale made 

6 by the entity; and 

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

8 by the entity to an affiliate, lessee, or ten9 ant of the entity shall not be considered to 

10 be a sale to an electric consumer. 

11 ‘‘(C) AFFILIATE.—For purposes of sub12 paragraph (B), the term ‘affiliate’, with respect 

13 to an entity, means an individual or entity that 

14 directly or indirectly owns or controls, is owned 

15 or controlled by, or is under common ownership 

16 or control with, the entity, as determined in ac17 cordance with applicable regulations of the Sec18 retary. 

19 ‘‘(c) CLEAN ENERGY REQUIREMENT.— 

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

21 full calendar year beginning after the date of enact22 ment of this section, and each calendar year there23 after, each retail electricity supplier shall sell a 

24 quantity of clean energy equal to the product ob25 tained by multiplying— 


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1 ‘‘(A) the applicable clean energy percent2 age determined for the retail electricity supplier 

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

4 ‘‘(B) the base quantity of the retail elec5 tricity supplier for the applicable calendar year. 

6 ‘‘(2) DETERMINATION OF APPLICABLE CLEAN

7 ENERGY PERCENTAGES.— 

8 ‘‘(A) INITIAL PERCENTAGE.— 

9 ‘‘(i) USE OF BASELINE PERCENT10 AGE.—For purposes of the determinations 

11 required under subparagraphs (B) and 

12 (C), the applicable clean energy percentage 

13 for a retail electricity supplier for the cal14 endar year during which this section is en15 acted shall be the baseline percentage of 

16 the retail electricity supplier. 

17 ‘‘(ii) NEW RETAIL ELECTRICITY SUP18 PLIERS.—For purposes of the determina19 tions required under subparagraphs (B) 

20 and (C), for a retail electricity supplier 

21 that is established after the date of enact22 ment of this section, the Secretary shall 

23 determine the appropriate applicable clean 

24 energy percentage for the first calendar 

25 year beginning after the date on which the 


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1 retail electricity supplier commences oper2 ation. 

3 ‘‘(B) SUBSEQUENT DETERMINATIONS.— 

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

5 year beginning after the date of enactment of 

6 this section and each calendar year thereafter 

7 until the calendar year for which the applicable 

8 clean energy percentage for a retail electricity 

9 supplier is 90 percent, the applicable clean en10 ergy percentage for the retail electricity supplier 

11 under paragraph (1) shall be— 

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

13 supplier with not less than 2,000,000 

14 megawatt-hours of retail electric energy 

15 sales during the calendar year in which 

16 this section is enacted, or a retail elec17 tricity supplier with less than 2,000,000 

18 megawatt-hours of retail electric energy 

19 sales during that calendar year but more 

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

21 electric energy sales during a subsequent 

22 calendar year due to a merger or the ac23 quisition of additional territory, the appli24 cable clean energy percentage for the retail 


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1 electricity supplier for the preceding cal2 endar year, as increased— 

3 ‘‘(I) for any calendar year for 

4 which the applicable clean energy per5 centage of the retail electricity sup6 plier is not more than 60 percent, by 

7 the fast growth rate for the calendar 

8 year, as determined under paragraph 

9 (3)(B); and 

10 ‘‘(II) for any calendar year for 

11 which the applicable clean energy per12 centage of the retail electricity sup13 plier is more than 60 percent, by the 

14 slow growth rate for the calendar 

15 year, as determined under paragraph 

16 (3)(C), up to a maximum of 90 per17 cent; and 

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

19 supplier not described in clause (i), the ap20 plicable clean energy percentage for the re21 tail electricity supplier for the preceding 

22 calendar year, as increased by the small 

23 growth rate for the calendar year, as deter24 mined under paragraph (3)(D), up to a 

25 maximum of 90 percent. 


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1 ‘‘(C) FINAL TARGET PERCENTAGE.—Effec2 tive beginning in calendar year 2040, for each 

3 calendar year beginning after the first calendar 

4 year for which the applicable clean energy per5 centage of a retail electricity supplier under 

6 subparagraph (B) is 90 percent, the applicable 

7 clean energy percentage for the retail electricity 

8 supplier under paragraph (1) shall be increased 

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

10 percent. 

11 ‘‘(3) RATE INCREASE ADJUSTMENTS.— 

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

13 ‘‘(i) RATE DECREASE-ADJUSTED CAL14 ENDAR YEAR.—The term ‘rate decrease15 adjusted calendar year’ means any cal16 endar year beginning after a calendar year 

17 for which alternative compliance payments 

18 accounted for greater than 10 percent of 

19 total compliance obligations of all retail 

20 electricity providers under subsection (d) 

21 for that calendar year. 

22 ‘‘(ii) RATE INCREASE-ADJUSTED CAL23 ENDAR YEAR.—The term ‘rate increase-ad24 justed calendar year’ means any calendar 

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1 endar year period during which, for each of 

2 those 2 consecutive calendar years, the av3 erage price of a Federal clean energy cred4 it for the 3 preceding calendar years was 

5 below the rate-increased floor price. 

6 ‘‘(iii) RATE-INCREASED FLOOR

7 PRICE.—The term ‘rate-increased floor 

8 price’ means the difference between— 

9 ‘‘(I) the alternative compliance 

10 payment for the applicable calendar 

11 year; and 

12 ‘‘(II)(aa) during the period be13 ginning on the date of enactment of 

14 this section and ending on December 

15 31 of the second full calendar year be16 ginning after that date of enactment, 

17 a rate of 1.5 cents per kilowatt-hour; 

18 and 

19 ‘‘(bb) for each calendar year 

20 thereafter, the rate described in item 

21 (aa) for the preceding calendar year— 

22 ‘‘(AA) increased by 3 per23 cent; and 


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1 ‘‘(BB) adjusted for inflation, 

2 as the Secretary determines to be 

3 necessary. 

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

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

6 shall be— 

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

8 this section is enacted, 2.75 percentage 

9 points; 

10 ‘‘(ii) for the first calendar year begin11 ning after the date of enactment of this 

12 section and each calendar year thereafter 

13 that is not a rate increase-adjusted cal14 endar year or a rate decrease-adjusted cal15 endar year, the fast growth rate for the 

16 preceding calendar year; 

17 ‘‘(iii) for a rate increase-adjusted cal18 endar year, the fast growth rate for the 

19 preceding calendar year, increased by 0.5 

20 percentage points; and 

21 ‘‘(iv) for a rate decrease-adjusted cal22 endar year, the fast growth rate for the 

23 preceding calendar year, decreased by 0.25 

24 percentage points, down to a minimum of 

25 2.75 percentage points. 


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

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

3 shall be— 

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

5 this section is enacted, 1.75 percentage 

6 points; 

7 ‘‘(ii) for the first calendar year begin8 ning after the date of enactment of this 

9 section and each calendar year thereafter 

10 that is not a rate increase-adjusted cal11 endar year or a rate decrease-adjusted cal12 endar year, the slow growth rate for the 

13 preceding calendar year; 

14 ‘‘(iii) for a rate increase-adjusted cal15 endar year, the slow growth rate for the 

16 preceding calendar year, increased by 0.5 

17 percentage points; and 

18 ‘‘(iv) for a rate decrease-adjusted cal19 endar year, the slow growth rate for the 

20 preceding calendar year, decreased by 0.25 

21 percentage points, down to a minimum of 

22 1.75 percentage points. 

23 ‘‘(D) SMALL GROWTH RATE.—For pur24 poses of paragraph (2)(B)(ii), the small growth 

25 rate shall be— 


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•S 1359 IS

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

2 this section is enacted, 1.5 percentage 

3 points; 

4 ‘‘(ii) for the first calendar year begin5 ning after the date of enactment of this 

6 section and each calendar year thereafter 

7 that is not a rate increase-adjusted cal8 endar year or a rate decrease-adjusted cal9 endar year, the small growth rate for the 

10 preceding calendar year; 

11 ‘‘(iii) for a rate increase-adjusted cal12 endar year, the small growth rate for the 

13 preceding calendar year, increased by 0.5 

14 percentage points; and 

15 ‘‘(iv) for a rate decrease-adjusted cal16 endar year, the small growth rate for the 

17 preceding calendar year, decreased by 0.25 

18 percentage points, down to a minimum of 

19 1.5 percentage points. 

20 ‘‘(d) MEANS OF COMPLIANCE.— 

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

22 shall annually achieve compliance with subsection (c) 

23 by— 

24 ‘‘(A) submitting to the Secretary Federal 

25 clean energy credits; 


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•S 1359 IS

1 ‘‘(B) submitting to the Secretary docu2 mentation of the quantity of behind-the-meter 

3 generation consumed by electric consumers 

4 served by the retail electricity supplier; 

5 ‘‘(C) making alternative compliance pay6 ments of 3 cents per kilowatt-hour in accord7 ance with subsection (i); or 

8 ‘‘(D) taking a combination of actions de9 scribed in subparagraphs (A) through (C). 

10 ‘‘(2) FAILURE TO ESTABLISH FEDERAL CLEAN

11 ENERGY CREDIT TRADING PROGRAM.—If the Sec12 retary does not establish a Federal clean energy 

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

14 electricity supplier shall achieve compliance with 

15 subsection (c) by— 

16 ‘‘(A) submitting to the Secretary docu17 mentation of the clean energy percentage of the 

18 retail electricity supplier; 

19 ‘‘(B) making alternative compliance pay20 ments of 3 cents per kilowatt-hour in accord21 ance with subsection (i); or 

22 ‘‘(C) taking a combination of actions de23 scribed in subparagraphs (A) and (B). 

24 ‘‘(e) FEDERAL CLEAN ENERGY CREDIT TRADING

25 PROGRAM.— 


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

2 after the date of enactment of this section, the Sec3 retary shall establish a Federal clean energy credit 

4 trading program under which— 

5 ‘‘(A) 1 Federal clean energy credit rep6 resents 1 megawatt-hour of clean energy gen7 erated by a generator; 

8 ‘‘(B) retail electricity suppliers may submit 

9 to the Secretary Federal clean energy credits to 

10 certify compliance by the retail electricity sup11 pliers with subsection (c); and 

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

13 issued, recorded, tracked, and transferred. 

14 ‘‘(2) CLEAN ENERGY CREDITS.—Except as pro15 vided in subparagraphs (B) and (C) of paragraph 

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

17 qualified energy storage system a quantity of Fed18 eral clean energy credits determined in accordance 

19 with subsections (f) and (g). 

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

21 program under this subsection, the Secretary shall 

22 ensure that— 

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

24 be— 


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•S 1359 IS

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

2 compliance with this section; and 

3 ‘‘(ii) purchased only by a retail elec4 tricity supplier; 

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

6 for clean energy generated and sold for resale 

7 under a contract in effect on the date of enact8 ment of this section shall be issued to the pur9 chasing retail electricity supplier, unless other10 wise provided by the contract; and 

11 ‘‘(C) with respect to clean energy gen12 erated in a facility outside of the United States, 

13 a Federal clean energy credit may be issued 

14 only— 

15 ‘‘(i) if the clean energy is sold for re16 sale in the United States; and 

17 ‘‘(ii) to the purchasing retail elec18 tricity supplier. 

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

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

21 program under this subsection, the Secretary 

22 may delegate— 

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

24 (including any Federal entity in existence 

25 on the date of enactment of this section), 


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•S 1359 IS

1 the administration of a national Federal 

2 clean energy credit market for purposes of 

3 establishing a transparent national market 

4 for the sale or trade of Federal clean en5 ergy credits; and 

6 ‘‘(ii) to appropriate entities, the track7 ing of dispatch of clean energy generation. 

8 ‘‘(B) ADMINISTRATION.—In making a del9 egation under subparagraph (A)(ii), the Sec10 retary shall ensure that the tracking and re11 porting of information concerning the dispatch 

12 of clean energy generation is transparent, 

13 verifiable, and independent of any generation or 

14 load interests subject to an obligation under 

15 this section. 

16 ‘‘(5) BANKING OF FEDERAL CLEAN ENERGY

17 CREDITS.— 

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), for purposes of achieving compliance 

20 with subsection (c), a Federal clean energy 

21 credit shall be valid for— 

22 ‘‘(i) the calendar year during which 

23 the Federal clean energy credit is issued; 

24 or 


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•S 1359 IS

1 ‘‘(ii) either of the 2 subsequent cal2 endar years. 

3 ‘‘(B) ADJUSTMENTS.— 

4 ‘‘(i) CALENDAR YEARS 2040 THROUGH

5 2049.—For each of calendar years 2040 

6 through 2049, a Federal clean energy 

7 credit shall be valid for— 

8 ‘‘(I) the calendar year during 

9 which the Federal clean energy credit 

10 is issued; or 

11 ‘‘(II) the subsequent calendar 

12 year. 

13 ‘‘(ii) CALENDAR YEAR 2050 AND

14 THEREAFTER.—Beginning in calendar year 

15 2050, a Federal clean energy credit shall 

16 be valid only for the calendar year during 

17 which the Federal clean energy credit is 

18 issued. 

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

20 ‘‘(1) IN GENERAL.—Except as otherwise pro21 vided in this subsection, the quantity of Federal 

22 clean energy credits issued to a generator of clean 

23 energy shall be equal to the product obtained by 

24 multiplying— 


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•S 1359 IS

1 ‘‘(A) the qualified generation of the gener2 ator; and 

3 ‘‘(B) the difference between— 

4 ‘‘(i) 1.0; and 

5 ‘‘(ii) the quotient obtained by divid6 ing— 

7 ‘‘(I) the carbon intensity of the 

8 generator, as determined in accord9 ance with subsection (g) (expressed in 

10 metric tons per megawatt-hour); by 

11 ‘‘(II) the applicable carbon inten12 sity. 

13 ‘‘(2) QUALIFIED COMBINED HEAT AND POWER

14 SYSTEMS.— 

15 ‘‘(A) IN GENERAL.—The quantity of Fed16 eral clean energy credits issued to a generator 

17 that is a qualified combined heat and power 

18 system shall be equal to the difference be19 tween— 

20 ‘‘(i) the product obtained by multi21 plying— 

22 ‘‘(I) the number of megawatt23 hours of electric energy generated by 

24 the qualified combined heat and power 

25 system; and 


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•S 1359 IS

1 ‘‘(II) the difference between— 

2 ‘‘(aa) 1.0; and 

3 ‘‘(bb) the quotient obtained 

4 by dividing— 

5 ‘‘(AA) the carbon inten6 sity of the generator, as de7 termined in accordance with 

8 subsection (g) (expressed in 

9 metric tons per megawatt10 hour); by 

11 ‘‘(BB) the applicable 

12 carbon intensity; and 

13 ‘‘(ii) the product obtained by multi14 plying— 

15 ‘‘(I) the number of megawatt16 hours of electric energy generated by 

17 the qualified combined heat and power 

18 system that are consumed onsite; and 

19 ‘‘(II) the national weighted aver20 age of the applicable clean energy per21 centage required for the calendar year 

22 under subsection (c), as determined 

23 by the Secretary. 

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

25 to Federal clean energy credits issued under 


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•S 1359 IS

1 subparagraph (A), the Secretary shall issue 

2 Federal clean energy credits to a generator that 

3 is a qualified combined heat and power system 

4 for greenhouse gas emissions avoided as a re5 sult of the use of the qualified combined heat 

6 and power system, rather than a separate ther7 mal source, to meet the onsite thermal needs of 

8 the generator. 

9 ‘‘(3) QUALIFIED RENEWABLE BIOMASS.— 

10 ‘‘(A) IN GENERAL.—Subject to subpara11 graph (B), the quantity of Federal clean energy 

12 credits issued to each generator of clean energy 

13 using qualified renewable biomass shall be equal 

14 to the product obtained by multiplying— 

15 ‘‘(i) the qualified generation of the 

16 generator using qualified renewable bio17 mass; and 

18 ‘‘(ii) the qualified renewable biomass 

19 credit value determined under subsection 

20 (g)(4)(B)(iii). 

21 ‘‘(B) EXISTING GENERATORS.—For gen22 erators placed into service before the date of en23 actment of this section, the quantity of Federal 

24 clean energy credits issued to each generator of 


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•S 1359 IS

1 energy using qualified renewable biomass shall 

2 be equal to the greater of— 

3 ‘‘(i) the product obtained by multi4 plying— 

5 ‘‘(I) the qualified generation of 

6 the generator, not to exceed the gen7 eration capacity of the generator on 

8 the date of enactment of this section; 

9 and 

10 ‘‘(II) 0.5; and 

11 ‘‘(ii) the quantity of credits deter12 mined under subparagraph (A). 

13 ‘‘(4) QUALIFIED WASTE-TO-ENERGY.— 

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graph (B), the quantity of Federal clean energy 

16 credits issued to a generator that is a qualified 

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

18 product obtained by multiplying— 

19 ‘‘(i) the qualified generation of the 

20 generator using qualified waste-to-energy; 

21 and 

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

23 credit value determined under subsection 

24 (g)(4)(B)(iii). 


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•S 1359 IS

1 ‘‘(B) EXISTING GENERATORS.—For gen2 erators placed into service before the date of en3 actment of this section, the quantity of Federal 

4 clean energy credits issued to each generator of 

5 energy that is a qualified waste-to-energy facil6 ity shall be equal to the greater of— 

7 ‘‘(i) the qualified generation of the 

8 generator, not to exceed the generation ca9 pacity of the generator on the date of en10 actment of this section; and 

11 ‘‘(ii) the quantity of credits deter12 mined under subparagraph (A). 

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

14 quantity of Federal clean energy credits issued to a 

15 generator using qualified low-carbon fuels shall be 

16 equal to the product obtained by multiplying— 

17 ‘‘(A) the qualified generation of the gener18 ator using qualified low-carbon-fuels; and 

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

20 value determined under subsection 

21 (g)(4)(B)(iii). 

22 ‘‘(6) CARBON CAPTURE, STORAGE, AND UTILI23 ZATION.— 

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

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•S 1359 IS

1 hanced oil or natural gas recovery project’, and 

2 ‘tertiary injectant’ have the meanings given 

3 those terms in section 45Q of the Internal Rev4 enue Code of 1986. 

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

6 otherwise provided in this subsection, the quan7 tity of Federal clean energy credits issued to 

8 each generator of clean energy through the cap9 ture and storage or utilization of qualified car10 bon oxide from a waste stream of the generator 

11 shall be equal to the product obtained by multi12 plying— 

13 ‘‘(i) the qualified generation of the 

14 generator; and 

15 ‘‘(ii) the difference between— 

16 ‘‘(I) 1.0; and 

17 ‘‘(II) the quotient obtained by di18 viding— 

19 ‘‘(aa) the carbon intensity of 

20 the generator, as determined in 

21 accordance with subsection (g) 

22 (expressed in metric tons per 

23 megawatt-hour); by 

24 ‘‘(bb) the applicable carbon 

25 intensity. 


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

2 to Federal clean energy credits issued under 

3 subparagraph (B), the Secretary shall issue 

4 Federal clean energy credits to each generator 

5 of clean energy through the capture and storage 

6 or utilization of qualified carbon oxide from a 

7 waste stream other than the waste stream of 

8 the generator, or from the atmosphere directly, 

9 in a quantity equal to the quotient obtained by 

10 dividing— 

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

12 qualified carbon oxide captured and stored 

13 or utilized; by 

14 ‘‘(ii) the carbon intensity of the gener15 ator, as determined in accordance with 

16 subsection (g) (expressed in metric tons 

17 per megawatt-hour). 

18 ‘‘(D) SPECIAL RULES.— 

19 ‘‘(i) REGULATIONS.— 

20 ‘‘(I) IN GENERAL.—Subject to 

21 subclause (III), not later than 1 year 

22 after the date of enactment of this 

23 section, the Secretary, in consultation 

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1 ronmental Protection Agency, shall 

2 promulgate regulations establishing— 

3 ‘‘(aa) the conditions under 

4 which qualified carbon oxide may 

5 be safely and permanently stored 

6 for purposes of issuing Federal 

7 clean energy credits to a gener8 ator under this paragraph; and 

9 ‘‘(bb) in accordance with 

10 subclause (II), the methods and 

11 processes by which qualified car12 bon oxide may be utilized in a 

13 manner that ensures the removal 

14 of the qualified carbon oxide 

15 safely and permanently from the 

16 atmosphere. 

17 ‘‘(II) REQUIREMENTS.—For pur18 poses of subclause (I)(bb)— 

19 ‘‘(aa) utilization of qualified 

20 carbon oxide may include the 

21 production of substances, such as 

22 plastics and chemicals; and 

23 ‘‘(bb) the regulations pro24 mulgated pursuant to that sub25 clause shall minimize the escape 


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•S 1359 IS

1 or further emission of qualified 

2 carbon oxide into the atmos3 phere. 

4 ‘‘(III) EXISTING REQUIRE5 MENTS.—In promulgating regulations 

6 pursuant to this clause, the Secretary 

7 shall incorporate any existing Federal 

8 requirements for the permanent geo9 logic storage of carbon oxides, includ10 ing any requirements under section 

11 45Q of the Internal Revenue Code of 

12 1986. 

13 ‘‘(ii) ADJUSTED QUANTITY.— 

14 ‘‘(I) IN GENERAL.—Notwith15 standing subparagraphs (B) and (C), 

16 except as provided in subclause (II), 

17 the quantity of Federal clean energy 

18 credits issued under this paragraph to 

19 a generator at which qualified carbon 

20 oxide is captured and used as a ter21 tiary injectant in a qualified enhanced 

22 oil or natural gas recovery project 

23 shall be reduced by 50 percent. 

24 ‘‘(II) NO REDUCTION.—If the 

25 qualified carbon oxide captured and 


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•S 1359 IS

1 used as a tertiary injectant in a quali2 fied enhanced oil or natural gas recov3 ery project by a generator achieves 

4 compliance with the conditions estab5 lished pursuant to clause (i)(I)(aa), 

6 the quantity of Federal clean energy 

7 credits issued to the generator shall 

8 not be reduced. 

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

10 The quantity of Federal clean energy credits issued 

11 to each qualified energy storage system shall be 

12 equal to the product obtained by multiplying— 

13 ‘‘(A) the electric energy dispatched and 

14 sold by the qualified energy storage system (ex15 pressed in megawatt-hours); and 

16 ‘‘(B) the difference between— 

17 ‘‘(i) 1.0; and 

18 ‘‘(ii) the quotient obtained by divid19 ing— 

20 ‘‘(I) the average carbon intensity 

21 of the clean energy stored in the 

22 qualified energy storage system, as 

23 determined in accordance with sub24 section (g) (expressed in metric tons 

25 per megawatt-hour); by 


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•S 1359 IS

1 ‘‘(II) the applicable carbon inten2 sity. 

3 ‘‘(8) NEGATIVE CREDITS.—Notwithstanding 

4 any other provision of this subsection, the Secretary 

5 shall not issue a negative quantity of Federal clean 

6 energy credits to any generator. 

7 ‘‘(9) MAXIMUM QUANTITY OF CREDITS.—Not8 withstanding paragraphs (1) through (6), the total 

9 quantity of Federal clean energy credits issued 

10 under those paragraphs to a generator for a cal11 endar year shall not exceed the number of mega12 watt-hours of the applicable annual qualified genera13 tion of the generator. 

14 ‘‘(10) INNOVATION MULTIPLIER.— 

15 ‘‘(A) IN GENERAL.—Notwithstanding 

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

17 date described in subparagraph (C), the quan18 tity of Federal clean energy credits issued 

19 under this section to— 

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

21 dispatchable low-emission technology or a 

22 qualified dispatchable zero-emission tech23 nology 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) 1.5; 

16 ‘‘(ii) a generator that is a dispatch17 able zero-emission technology that is not 

18 issued Federal clean energy credits under 

19 clause (i) shall be equal to the product ob20 tained by multiplying— 

21 ‘‘(I) the qualified generation of 

22 that generator; 

23 ‘‘(II) the difference between— 

24 ‘‘(aa) 1.0; and 


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•S 1359 IS

1 ‘‘(bb) the quotient obtained 

2 by dividing— 

3 ‘‘(AA) the carbon inten4 sity of the generator, as de5 termined in accordance with 

6 subsection (g) (expressed in 

7 metric tons per megawatt8 hour); by 

9 ‘‘(BB) the applicable 

10 carbon intensity; and 

11 ‘‘(III) the appropriate multiplier, 

12 as determined under subparagraph 

13 (B)(i); and 

14 ‘‘(iii) a generator that is a dispatch15 able low-emission technology that is not 

16 issued Federal clean energy credits under 

17 clause (i) shall be equal to the product ob18 tained by multiplying— 

19 ‘‘(I) the qualified generation of 

20 that generator; 

21 ‘‘(II) the difference between— 

22 ‘‘(aa) 1.0; and 

23 ‘‘(bb) the quotient obtained 

24 by dividing— 


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1 ‘‘(AA) the carbon inten2 sity of the generator, as de3 termined in accordance with 

4 subsection (g) (expressed in 

5 metric tons per megawatt6 hour); by 

7 ‘‘(BB) the applicable 

8 carbon intensity; and 

9 ‘‘(III) the appropriate multiplier, 

10 as determined under subparagraph 

11 (B)(ii). 

12 ‘‘(B) MULTIPLIERS.—The multipliers re13 ferred to in clauses (ii)(III) and (iii)(III) of 

14 subparagraph (A) are— 

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

16 technology described in subparagraph 

17 (A)(ii)— 

18 ‘‘(I) for the period beginning on 

19 the date of enactment of this section 

20 and ending on the date on which the 

21 total capacity of dispatchable zero22 emission technologies in the United 

23 States is greater than 5 gigawatts, as 

24 determined by the Secretary, 1.25; 


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1 ‘‘(II) for the period beginning on 

2 the day after the date of expiration of 

3 the period described in subclause (I) 

4 and ending on the date on which the 

5 total capacity of dispatchable zero6 emission technologies in the United 

7 States is greater than 10 gigawatts, 

8 as determined by the Secretary, 1.2; 

9 ‘‘(III) for the period beginning on 

10 the day after the date of expiration of 

11 the period described in subclause (II) 

12 and ending on the date on which the 

13 total capacity of dispatchable zero14 emission technologies in the United 

15 States is greater than 15 gigawatts, 

16 as determined by the Secretary, 1.15; 

17 and 

18 ‘‘(IV) for the period beginning on 

19 the day after the date of expiration of 

20 the period described in subclause (III) 

21 and ending on the date on which the 

22 total capacity of dispatchable zero23 emission technologies in the United 

24 States is greater than 20 gigawatts, 


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•S 1359 IS

1 as determined by the Secretary, 1.1; 

2 and 

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

4 technology described in subparagraph 

5 (A)(iii)— 

6 ‘‘(I) for the period beginning on 

7 the date of enactment of this section 

8 and ending on the date on which the 

9 total capacity of dispatchable low10 emission technologies and 

11 dispatchable zero-emission tech12 nologies in the United States is great13 er than 5 gigawatts, as determined by 

14 the Secretary, 1.25; 

15 ‘‘(II) for the period beginning on 

16 the day after the date of expiration of 

17 the period described in subclause (I) 

18 and ending on the date on which the 

19 total capacity of dispatchable low20 emission technologies and 

21 dispatchable zero-emission tech22 nologies in the United States is great23 er than 10 gigawatts, as determined 

24 by the Secretary, 1.2; 


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1 ‘‘(III) for the period beginning on 

2 the day after the date of expiration of 

3 the period described in subclause (II) 

4 and ending on the date on which the 

5 total capacity of dispatchable low6 emission technologies and 

7 dispatchable zero-emission tech8 nologies in the United States is great9 er than 15 gigawatts, as determined 

10 by the Secretary, 1.15; and 

11 ‘‘(IV) for the period beginning on 

12 the day after the date of expiration of 

13 the period described in subclause (III) 

14 and ending on the date on which the 

15 total capacity of dispatchable low16 emission technologies and 

17 dispatchable zero-emission tech18 nologies in the United States is great19 er than 20 gigawatts, as determined 

20 by the Secretary, 1.1. 

21 ‘‘(C) PHASE-OUT.—The quantity of Fed22 eral clean energy credits issued under this sec23 tion to— 

24 ‘‘(i) a generator described in subpara25 graph (A)(i) that is— 


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1 ‘‘(I) a qualified dispatchable low2 emission technology shall be deter3 mined in accordance with subpara4 graph (A)(iii), effective beginning on 

5 the earlier of— 

6 ‘‘(aa) the date on which the 

7 qualified dispatchable low-emis8 sion technology has been in serv9 ice for 10 years; and 

10 ‘‘(bb) January 1, 2035; and 

11 ‘‘(II) a qualified dispatchable 

12 zero-emission technology shall be de13 termined in accordance with subpara14 graph (A)(ii), effective beginning on 

15 the date on which the qualified 

16 dispatchable zero-emission technology 

17 has been in service for 10 years; 

18 ‘‘(ii) a generator described in subpara19 graph (A)(ii) shall be determined in ac20 cordance with paragraphs (1) through (6), 

21 effective beginning on January 1, 2050; 

22 and 

23 ‘‘(iii) a generator described in sub24 paragraph (A)(iii) shall be determined in 

25 accordance with paragraphs (1) through 


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•S 1359 IS

1 (6), effective beginning on January 1, 

2 2040. 

3 ‘‘(D) PROHIBITION ON DOUBLE RE4 CEIPTS.—A generator that receives Federal 

5 clean energy credits under subparagraph (A) 

6 may not receive any additional Federal clean 

7 energy credit under any of paragraphs (1) 

8 through (6). 

9 ‘‘(g) DETERMINATION OF CARBON INTENSITY AND

10 CREDIT VALUE.— 

11 ‘‘(1) IN GENERAL.—For purposes of deter12 mining the quantity of Federal clean energy credits 

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

14 this subsection, the Secretary shall determine the 

15 carbon intensity of each generator using data and 

16 methods from the Air Emission Measurement Center 

17 of the Environmental Protection Agency for emission 

18 testing and monitoring, including— 

19 ‘‘(A) Continuous Emission Monitoring Sys20 tems; and 

21 ‘‘(B) Predictive Emission Monitoring Sys22 tems. 

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

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

25 the carbon intensity determined under paragraph (1) 


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1 for each generator using natural gas by applying the 

2 methane leakage rates assumed in the 9-region 

3 MARKAL Database of the Environmental Protec4 tion Agency (commonly known as the ‘EPAUS9R 

5 database’). 

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

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

8 a carbon intensity of zero for any generator that 

9 does not produce emissions on electric energy gen10 eration, including any generator that uses renewable 

11 energy, hydropower, or nuclear power. 

12 ‘‘(4) DETERMINATION AND NATIONAL ACADEMY

13 OF SCIENCES STUDY.—The Secretary shall— 

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

15 of enactment of this section, enter into an 

16 agreement with the National Academy of 

17 Sciences, under which the Academy shall— 

18 ‘‘(i) evaluate data, models, and meth19 odologies for quantifying lifecycle green20 house gas emissions associated with gener21 ating electric energy from each type of sig22 nificant source of clean energy, including 

23 the sources described in subparagraphs (A) 

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


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1 ‘‘(ii) evaluate data, models, and meth2 odologies for determining the appropriate 

3 credit value for use in the quantification of 

4 Federal clean energy credits under sub5 section (f) for— 

6 ‘‘(I) qualified renewable biomass, 

7 taking into consideration total 

8 lifecycle carbon dynamics, including— 

9 ‘‘(aa) carbon absorbed 

10 through the regrowth of vegeta11 tion; 

12 ‘‘(bb) avoided decomposition 

13 relating to the full fuel lifecycle; 

14 ‘‘(cc) carbon sink value from 

15 land use changes and temporal 

16 changes in forest carbon seques17 tration; and 

18 ‘‘(dd) lifecycle greenhouse 

19 gas emissions, including— 

20 ‘‘(AA) direct green21 house gas emissions; and 

22 ‘‘(BB) significant indi23 rect greenhouse gas emis24 sions, including all stages of 

25 fuel and feedstock producVerDate Sep 11 2014 04:37 May 15, 2019 Jkt 089200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 \\ALPHA3\E\BILLS\S1359.IS S1359

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1 tion and distribution and 

2 feedstock generation or ex3 traction through the dis4 tribution and delivery of the 

5 finished fuel to electric con6 sumers; 

7 ‘‘(II) qualified waste-to-energy, 

8 taking into consideration total 

9 lifecycle carbon dynamics, including— 

10 ‘‘(aa) avoided decomposition 

11 relating to the feedstock lifecycle; 

12 and 

13 ‘‘(bb) lifecycle greenhouse 

14 gas emissions, including— 

15 ‘‘(AA) direct green16 house gas emissions; and 

17 ‘‘(BB) indirect green18 house gas emissions; and 

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

20 taking into consideration lifecycle 

21 greenhouse gas emissions, including— 

22 ‘‘(aa) direct greenhouse gas 

23 emissions; and 


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1 ‘‘(bb) significant indirect 

2 greenhouse gas emissions, includ3 ing— 

4 ‘‘(AA) all stages of fuel 

5 and feedstock production 

6 and distribution; and 

7 ‘‘(BB) feedstock gen8 eration or extraction 

9 through the distribution and 

10 delivery of the finished fuel 

11 to electric consumers; 

12 ‘‘(iii) evaluate the appropriateness of 

13 the definitions contained in subsection (b) 

14 of the terms— 

15 ‘‘(I) ‘qualified renewable bio16 mass’, taking into consideration 

17 whether the definition should be ex18 panded or contracted; 

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

20 and 

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

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

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

24 ‘qualified renewable biomass’ should be ex25 panded, evaluate tools for determining the 


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1 allowable carbon stock removal levels dur2 ing defined forest management operations; 

3 and 

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

5 date of enactment of this section, publish 

6 a report that includes— 

7 ‘‘(I) a description of the evalua8 tions under clauses (i) through (iv); 

9 and 

10 ‘‘(II) recommendations for— 

11 ‘‘(aa) determining the car12 bon intensity, accounting for 

13 lifecycle greenhouse gas emis14 sions, of electric energy gen15 erated from each type of signifi16 cant source of clean energy evalu17 ated under clause (i); 

18 ‘‘(bb) determining the credit 

19 value of electric energy generated 

20 from qualified renewable bio21 mass, qualified waste-to-energy, 

22 and qualified low-carbon fuels; 

23 ‘‘(cc) if applicable, changes 

24 to the definitions of the terms 

25 ‘qualified renewable biomass’, 


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1 ‘qualified waste-to-energy’, and 

2 ‘qualified low-carbon fuel’; and 

3 ‘‘(dd) if applicable, deter4 mining the allowable carbon 

5 stock removal levels during de6 fined forest management oper7 ations; 

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

9 of publication of the report under subparagraph 

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

11 public comment, promulgate regulations, taking 

12 into consideration the report, for— 

13 ‘‘(i) calculating lifecycle greenhouse 

14 gas emissions of electric energy generated 

15 from each type of significant source of 

16 clean energy evaluated under subparagraph 

17 (A)(i); 

18 ‘‘(ii) determining the carbon intensity 

19 of electric energy generated from each type 

20 of significant source of clean energy evalu21 ated under subparagraph (A)(i); and 

22 ‘‘(iii) determining the credit value of 

23 electric energy generated from qualified re24 newable biomass, qualified waste-to-energy, 

25 and qualified low-carbon fuels; and 


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

2 subparagraph (A)(v)(II)(cc), submit to Con3 gress recommendations relating to changes to 

4 the definitions of the terms ‘qualified renewable 

5 biomass’, ‘qualified waste-to-energy’, and ‘quali6 fied low-carbon fuel’ for purposes of this sec7 tion. 

8 ‘‘(5) CONSULTATION.—The Secretary shall con9 sult with— 

10 ‘‘(A) in determining carbon intensities of 

11 generators pursuant to paragraph (1) and mak12 ing adjustments pursuant to paragraph (2), the 

13 Administrator of the Environmental Protection 

14 Agency; 

15 ‘‘(B) in promulgating regulations for calcu16 lating lifecycle greenhouse gas emissions pursu17 ant to paragraph (4)(B)(i) and determining 

18 carbon intensities pursuant to paragraph 

19 (4)(B)(ii), the Administrator of the Environ20 mental Protection Agency; 

21 ‘‘(C) in promulgating regulations for deter22 mining appropriate credit values pursuant to 

23 paragraph (4)(B)(iii)— 

24 ‘‘(i) the Administrator of the Environ25 mental Protection Agency; 


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

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

3 and 

4 ‘‘(D) in making recommendations to Con5 gress under paragraph (4)(C), the Adminis6 trator of the Environmental Protection Agency, 

7 acting in consultation with the Scientific Advi8 sory Board of the Environmental Protection 

9 Agency. 

10 ‘‘(h) CIVIL PENALTIES.— 

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

12 retail electricity supplier that fails to meet the re13 quirements of this section shall be subject to a civil 

14 penalty in an amount equal to the product obtained 

15 by multiplying— 

16 ‘‘(A) the number of kilowatt-hours of elec17 tric energy sold by the retail electricity supplier 

18 to electric consumers in violation of subsection 

19 (c); and 

20 ‘‘(B) 200 percent of the value of the alter21 native compliance payment, as adjusted under 

22 subsection (i)(2). 

23 ‘‘(2) WAIVERS AND MITIGATION.— 

24 ‘‘(A) FORCE MAJEURE.—The Secretary 

25 may mitigate or waive a civil penalty under 


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1 paragraph (1) if the applicable retail electricity 

2 supplier was unable to comply with an applica3 ble requirement of this section for reasons out4 side of the reasonable control of the retail elec5 tricity supplier. 

6 ‘‘(B) REDUCTION FOR STATE PEN7 ALTIES.—The Secretary shall reduce the 

8 amount of a penalty determined under para9 graph (1) by the amount paid by the applicable 

10 retail electricity supplier to a State for failure 

11 to comply with the requirement of a State re12 newable energy program, if the State require13 ment is more stringent than the applicable re14 quirement of this section. 

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

16 The Secretary shall assess a civil penalty under this 

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

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

19 6303(d)). 

20 ‘‘(i) ALTERNATIVE COMPLIANCE PAYMENTS.— 

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

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

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

24 clean energy credits issued under this section, a pay25 ment equal to the amount required under subsection 


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

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

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

4 1 of the second full calendar year beginning after 

5 the date of enactment of this section, and annually 

6 thereafter, the Secretary shall— 

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

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

9 by— 

10 ‘‘(i) during the period beginning on 

11 the date of enactment of this section and 

12 ending on December 31, 2029, 3 percent; 

13 and 

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

15 percent; and 

16 ‘‘(B) additionally adjust that rate for infla17 tion, as the Secretary determines to be nec18 essary. 

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

20 DEPLOYMENT, AND ELECTRIC CONSUMER BILL REDUC21 TION PROGRAM.— 

22 ‘‘(1) ESTABLISHMENT.—Not later than Decem23 ber 1 of the first calendar year beginning after the 

24 date of enactment of this section, the Secretary shall 

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1 ployment, and electric consumer bill reduction pro2 gram. 

3 ‘‘(2) FUNDING.—All funds collected by the Sec4 retary as alternative compliance payments under 

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

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

7 under this subsection. 

8 ‘‘(3) DISTRIBUTION TO STATES.— 

9 ‘‘(A) IN GENERAL.—Of the funds de10 scribed in paragraph (2), an amount equal to 

11 75 percent shall be used by the Secretary, with12 out further appropriation or fiscal year limita13 tion, to provide funds to States, in an amount 

14 determined proportionally based on the 

15 amounts collected from each State— 

16 ‘‘(i) for the implementation of State 

17 energy efficiency plans under section 362 

18 of the Energy Policy and Conservation Act 

19 (42 U.S.C. 6322); 

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

21 programs in the State; and 

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

23 the amount of electricity bills for house24 holds in the State below 300 percent of the 

25 poverty line (as defined in section 673 of 


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1 the Community Services Block Grant Act 

2 (42 U.S.C. 9902)). 

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

4 receives funds under this paragraph shall main5 tain such records and evidence of compliance as 

6 the Secretary may require. 

7 ‘‘(4) GUIDELINES AND CRITERIA.— 

8 ‘‘(A) BUY AMERICAN COMPLIANCE.—The 

9 funds made available under the program estab10 lished under this subsection shall not be used 

11 for a project unless the project achieves compli12 ance with all applicable requirements of chapter 

13 83 of title 41, United States Code (formerly 

14 known as the ‘Buy American Act’). 

15 ‘‘(B) DAVIS-BACON COMPLIANCE.— 

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

17 mechanics employed on projects funded di18 rectly, or assisted in whole or in part, by 

19 this section shall be paid wages at rates 

20 not less than those prevailing on projects 

21 of a character similar in the locality as de22 termined by the Secretary of Labor in ac23 cordance with subchapter IV of chapter 31 

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


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1 States Code (commonly referred to as the 

2 ‘Davis-Bacon Act’). 

3 ‘‘(ii) AUTHORITY.—With respect to 

4 the labor standards specified in this sub5 paragraph, the Secretary of Labor shall 

6 have the authority and functions set forth 

7 in Reorganization Plan Numbered 14 of 

8 1950 (64 Stat. 1267; 5 U.S.C. App.) and 

9 section 3145 of title 40, United States 

10 Code. 

11 ‘‘(C) ADDITIONAL GUIDELINES AND CRI12 TERIA.—The Secretary may issue such addi13 tional guidelines and criteria for the program 

14 under this subsection as the Secretary deter15 mines to be appropriate. 

16 ‘‘(k) STATE PROGRAMS.— 

17 ‘‘(1) SAVINGS PROVISION.— 

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), nothing in this section affects the 

20 authority of a State or a political subdivision of 

21 a State to adopt or enforce any law or regula22 tion relating to— 

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

24 ‘‘(ii) the regulation of any retail elec25 tricity supplier. 


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1 ‘‘(B) FEDERAL LAW.—No law or regula2 tion of a State or a political subdivision of a 

3 State may relieve a retail electricity supplier 

4 from the obligation to comply with an applica5 ble requirement of this section. 

6 ‘‘(2) COORDINATION.—The Secretary, in con7 sultation with States that have clean and renewable 

8 energy programs in effect, shall facilitate, to the 

9 maximum extent practicable, coordination between 

10 the Federal clean energy program under this section 

11 and the relevant State clean and renewable energy 

12 programs. 

13 ‘‘(l) INFORMATION COLLECTION.— 

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

15 any retail electricity supplier, generator, or any 

16 other entity that the Secretary determines appro17 priate to submit to the Secretary any information 

18 the Secretary determines to be appropriate to carry 

19 out this section. 

20 ‘‘(2) FAILURE TO SUBMIT; FALSE OR MIS21 LEADING INFORMATION.—An entity required to sub22 mit information pursuant to paragraph (1) that fails 

23 to submit the information, or submits false or mis24 leading information, shall be in violation of this sec25 tion. 


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

2 DO NOT GENERATE ELECTRIC ENERGY.— 

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

4 after the date of enactment of this section, the Sec5 retary shall submit to Congress a report examining 

6 mechanisms to supplement the standard under this 

7 section by addressing clean energy resources that do 

8 not generate electric energy but that may substan9 tially reduce overall energy emissions, including en10 ergy efficiency, demand response, flexible load, bene11 ficial electrification, microgrids, biomass converted 

12 to thermal energy, geothermal energy collected using 

13 heat pumps, thermal energy delivered through dis14 trict heating systems, and waste heat used as indus15 trial process heat. 

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

17 under paragraph (1) shall examine the benefits and 

18 challenges of integrating the additional clean energy 

19 resources into the standard established by this sec20 tion, including— 

21 ‘‘(A) the extent to which such an integra22 tion would achieve the purposes of this section; 

23 ‘‘(B) the manner in which a baseline de24 scribing the use of the resources could be devel25 oped that would ensure that only incremental 


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1 action that increased the use of the resources 

2 received credit; and 

3 ‘‘(C) the challenges of crediting the re4 sources, alone or in combination with other re5 sources, in a comparable manner between orga6 nized markets and vertically integrated markets 

7 to incentivize sufficient deployment of those re8 sources to support efficient integration into the 

9 standard. 

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

11 under paragraph (1) shall examine the benefits and 

12 challenges of using complementary policies or stand13 ards, other than the standard established under this 

14 section, to provide effective incentives for using the 

15 additional clean energy resources. 

16 ‘‘(4) LEGISLATIVE RECOMMENDATIONS.—As 

17 part of the report under paragraph (1), the Sec18 retary shall provide legislative recommendations for 

19 changes to the standard established under this sec20 tion or new complementary policies that would pro21 vide effective incentives for using the additional 

22 clean energy resources. 

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

24 ‘‘(1) NATIONAL ACADEMY OF SCIENCES RE25 VIEW.—The Secretary shall enter into an agreement 


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1 with the National Academy of Sciences under which 

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

3 every 10 years thereafter, submit to Congress and 

4 the Secretary a comprehensive evaluation of all as5 pects of the standard established under this section, 

6 including— 

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

8 the standard in decreasing the aggregate net 

9 carbon dioxide equivalent emissions in the elec10 tric sector, including— 

11 ‘‘(i) a comparison of— 

12 ‘‘(I) the actual carbon dioxide 

13 equivalent emissions associated with 

14 the electric sector for the preceding 

15 calendar year; and 

16 ‘‘(II)(aa) for the initial review, 

17 900,000,000 metric tons of carbon di18 oxide equivalent; 

19 ‘‘(bb) for the review conducted 

20 with respect to calendar year 2038, 

21 600,000,000 metric tons of carbon di22 oxide equivalent; or 

23 ‘‘(cc) if the Academy determines 

24 that an emissions value described in 

25 item (aa) or (bb) is inappropriate 


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1 after taking into consideration 

2 changes in electric energy consump3 tion, and in emissions relating to en4 ergy use outside of the electric sector, 

5 such emissions as the Academy deter6 mines to be appropriate for the appli7 cable review year; and 

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

9 which the quantity of Federal clean energy 

10 credits is determined, including— 

11 ‘‘(I) alternative methods of quan12 tifying credits for clean energy re13 sources eligible to receive Federal 

14 clean energy credits under this section 

15 that may be more effective, such as— 

16 ‘‘(aa) issuing credits based 

17 on the difference between the 

18 carbon intensity of a generator 

19 and the marginal emissions rate 

20 in a given hour and balancing 

21 area; and 

22 ‘‘(bb) adjusting the innova23 tion multipliers; and 

24 ‘‘(II) potential methods of cred25 iting other clean energy resources not 


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1 already addressed in the report under 

2 subsection (m); 

3 ‘‘(B) the impact of the standard on the re4 liability, resilience, security, and safety of elec5 tricity generation, transmission, and distribu6 tion; 

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

8 function of regulated and deregulated electricity 

9 markets; 

10 ‘‘(D) the net benefits or costs of the stand11 ard to the United States and the States, includ12 ing— 

13 ‘‘(i) the effects on electricity demand 

14 and prices; 

15 ‘‘(ii) the economic development bene16 fits of investment; 

17 ‘‘(iii) lifecycle environmental and safe18 ty costs and benefits; 

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

20 health care costs; and 

21 ‘‘(v) avoided costs relating to environ22 mental damages and adaptation invest23 ments that otherwise would have been re24 quired; 


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

2 emissions of behind-the-meter and off-grid elec3 tricity generation; 

4 ‘‘(F) recommendations regarding potential 

5 changes to the standard, such as— 

6 ‘‘(i) to regulations and procedures for 

7 implementing the standard; 

8 ‘‘(ii) to the structure and specific de9 sign elements of the standard, such as— 

10 ‘‘(I) if the comparison of emis11 sions under paragraph (1)(A)(i) re12 veals that actual emissions for the 

13 electric sector are greater than the re14 quired emissions under paragraph 

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

16 the growth rates, the applicable car17 bon intensity, and alternative compli18 ance payment to eliminate the gap be19 tween actual and required emissions; 

20 ‘‘(II) the quantification of Fed21 eral clean energy credits; and 

22 ‘‘(III) the value of and eligibility 

23 for the innovation multiplier; and 


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1 ‘‘(iii) to the structure and administra2 tion of the Federal clean energy credit 

3 trading program; and 

4 ‘‘(G) recommendations regarding potential 

5 changes to related public policies or creation of 

6 new complementary policies. 

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

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

9 than once every 10 years thereafter, the Secretary 

10 shall submit to the Committee on Energy and Nat11 ural Resources of the Senate and the Committee on 

12 Energy and Commerce of the House of Representa13 tives a report including recommendations for modi14 fications and improvements to the standard estab15 lished under this section, including an explanation of 

16 the inconsistencies, if any, between— 

17 ‘‘(A) the recommendations of the Sec18 retary; and 

19 ‘‘(B) the recommendations included in the 

20 evaluation of the National Academy of Sciences 

21 under paragraph (1). 

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

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

24 every 10 years thereafter, Congress shall enact legis25 lation that amends this section or establishes new 


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1 policies based on the recommendations submitted by 

2 the Secretary under paragraph (2). 

3 ‘‘(4) ADJUSTMENTS UPON FAILURE OF CON4 GRESSIONAL ACTION.— 

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

6 enact legislation under paragraph (3) by an ap7 plicable deadline, the Secretary— 

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

9 comparison of emissions under paragraph 

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

11 the electric sector are greater than the re12 quired emissions under paragraph 

13 (1)(A)(i)(II), make such compensatory ad14 justments to the standard established 

15 under this section as the Secretary con16 siders to be necessary, based on, and con17 sistent with, the findings and recommenda18 tions of the National Academy of Sciences 

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

20 the gap between actual and required emis21 sions by not later than 3 years after the 

22 date of the applicable deadline by— 

23 ‘‘(I) increasing the fast growth 

24 rate; 


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1 ‘‘(II) increasing the slow growth 

2 rate; 

3 ‘‘(III) increasing the small 

4 growth rate; 

5 ‘‘(IV) decreasing the applicable 

6 carbon intensity; 

7 ‘‘(V) increasing the alternative 

8 compliance payment under subsection 

9 (d)(1)(C); or 

10 ‘‘(VI) taking a combination of ac11 tions described in subclauses (I) 

12 through (V); and 

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

14 system under paragraph (1)(A)(ii) de15 scribes a more-effective method of issuing 

16 Federal clean energy credits to clean en17 ergy resources, may make other modifica18 tions and improvements to the standard 

19 based on, and consistent with, the rec20 ommendations under paragraph (1)(F)(ii) 

21 that would have the effect of decreasing 

22 economy-wide emissions. 

23 ‘‘(B) REQUIREMENT.—In making the com24 pensatory adjustments under subparagraph 

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


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1 electricity suppliers that have exceeded the pro2 portionate share of the reductions of the retail 

3 electricity suppliers required under paragraph 

4 (1)(A)(i)(II) shall not bear significant addi5 tional costs under this paragraph. 

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

7 date of enactment of this section, the Secretary shall pro8 mulgate regulations to implement this section.’’. 

9 (b) CONFORMING AMENDMENT.—The table of con10 tents of the Public Utility Regulatory Policies Act of 1978 

11 (16 U.S.C. prec. 2601) is amended by adding at the end 

12 of the items relating to title VI the following: 

‘‘609. Rural and remote communities electrification grants. 

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

13 SEC. 3. CLEAN ENERGY RESEARCH, DEVELOPMENT, DEM14 ONSTRATION, AND DEPLOYMENT PROGRAM. 

15 (a) ESTABLISHMENT.—The Secretary of Energy 

16 shall establish a cross-cutting national program within the 

17 Department of Energy for the research, development, 

18 demonstration, and deployment of clean energy tech19 nologies and portfolios for the purpose of meeting the re20 quirements established under section 610 of the Public 

21 Utility Regulatory Policies Act of 1978 (as added by sec22 tion 2(a)). 

23 (b) REQUIREMENTS.—In establishing the program 

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


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1 (1) identify and coordinate, across all relevant 

2 program offices throughout the Department of En3 ergy, key areas of existing and future research with 

4 respect to a portfolio of technologies and approaches; 

5 (2) with respect to dispatchable low-emission 

6 technologies and dispatchable zero-emission tech7 nologies (as defined in sections 610(b) of the Public 

8 Utility Regulatory Policies Act of 1978 (as added by 

9 section 2(a))— 

10 (A) prioritize programs that would accel11 erate the research, development, demonstration, 

12 and deployment of technologies by— 

13 (i) identifying specific applications of 

14 those technologies; 

15 (ii) cataloguing existing Department 

16 of Energy programs and research to ad17 vance the specific applications; and 

18 (iii) establishing a center within the 

19 Department of Energy to coordinate re20 search priorities and demonstration pro21 grams for the specific applications; 

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

23 and deployment targets for the specific applica24 tions identified under subparagraph (A)(i), in25 cluding a goal of conducting not fewer than 5 


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1 technology demonstrations in the United States 

2 by December 31, 2030; 

3 (C) identify opportunities to work with 

4 States and the private sector for technology 

5 demonstration; and 

6 (D) identify barriers to the demonstration 

7 and deployment of those technologies; 

8 (3) identify approaches to expedite deployment 

9 of clean energy technologies by evaluating and avoid10 ing or minimizing potential impacts to natural com11 munities, ecological resources, and high-quality 

12 working land; and 

13 (4) recommend to Congress any additional 

14 funding needs or policy changes necessary to imple15 ment the program. 

16 (c) FUNDING.—Subject to the availability of appro17 priations, the Secretary of Energy may use amounts avail18 able to the Secretary to carry out this section. 

Æ 


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