475 
issued to the purchaser of the electric energy to 
the extent that the contract does not already 
provide for the allocation of the Federal credit. 
‘‘(3) DURATION.—A credit described in sub-
paragraph (A), (B), or (C) of paragraph (2) may 
only be used for compliance with this section during 
the 3-year period beginning on the date of issuance 
of the credit. 
‘‘(4) TRANSFERS.—An electric utility that holds 
credits in excess of the quantity of credits needed to 
comply with subsection (a) may transfer the credits 
to another electric utility in the same utility holding 
company system. 
‘‘(5) DELEGATION
OF
MARKET
FUNCTION.— 
The Secretary may delegate to an appropriate mar-
ket-making entity the administration of a national 
tradeable renewable energy credit market for pur-
poses of creating a transparent national market for 
the sale or trade of renewable energy credits. 
‘‘(c) ENFORCEMENT.— 
‘‘(1) CIVIL
PENALTIES.—Any electric utility 
that fails to meet the compliance requirements of 
subsection (a) shall be subject to a civil penalty. 
‘‘(2) AMOUNT OF PENALTY.—The amount of 
the civil penalty shall be determined by multiplying 
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the number of kilowatt-hours of electric energy sold 
to electric consumers in violation of subsection (a) 
by the greater of— 
‘‘(A) the value of the alternative compli-
ance payment, as adjusted to reflect changes 
for the 12-month period ending the preceding 
November 30 in the Consumer Price Index for 
All Urban Consumers published by the Bureau 
of Labor Statistics of the Department of Labor; 
or 
‘‘(B) 200 percent of the average market 
value of renewable energy credits during the 
year in which the violation occurred. 
‘‘(3) MITIGATION OR WAIVER.— 
‘‘(A) PENALTY.— 
‘‘(i) IN
GENERAL.—The Secretary 
may mitigate or waive a civil penalty under 
this subsection if the electric utility is un-
able to comply with subsection (a) for a 
reason outside of the reasonable control of 
the utility. 
‘‘(ii) AMOUNT.—The Secretary shall 
reduce the amount of any penalty deter-
mined under paragraph (2) by the amount 
paid by the electric utility to a State for 
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failure to comply with the requirement of 
a State renewable energy program if the 
State requirement is greater than the ap-
plicable requirement of subsection (a). 
‘‘(B) REQUIREMENT.—The Secretary may 
waive the requirements of subsection (a) for a 
period of up to 5 years with respect to an elec-
tric utility if the Secretary determines that the 
electric utility cannot meet the requirements be-
cause of a hurricane, tornado, fire, flood, earth-
quake, ice storm, or other natural disaster or 
act of God beyond the reasonable control of the 
utility. 
‘‘(4) PROCEDURE FOR ASSESSING PENALTY.— 
The Secretary shall assess a civil penalty under this 
subsection in accordance with the procedures pre-
scribed by section 333(d) of the Energy Policy and 
Conservation Act of 1954 (42 U.S.C. 6303). 
‘‘(d) STATE RENEWABLE ENERGY ACCOUNT PRO-
GRAM.— 
‘‘(1) IN GENERAL.—There is established in the 
Treasury a State renewable energy account program. 
‘‘(2) DEPOSITS.—All money collected by the 
Secretary from alternative compliance payments and 
the assessment of civil penalties under this section 
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