SEC. 2. FEDERAL RENEWABLE ELECTRICITY STANDARD. 
Title VI of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2601 et seq.) is amended by adding 
after section 609 (7 U.S.C. 918c) the following: 
‘‘SEC. 610. FEDERAL RENEWABLE ELECTRICITY STANDARD. 
‘‘(a) FINDINGS.—Congress finds that— 
‘‘(1) 118 countries have national goals for re-
newable electricity production and 30 States and the 
District of Columbia have enacted mandatory renew-
able electricity standards; 
‘‘(2) the Federal renewable electricity standard 
established by this section establishes a market- 
based policy to create ongoing competition among 
renewable electricity generators across the United 
States and provide the greatest quantity of clean 
electricity for the lowest price; and 
‘‘(3) the United States has vast wind, solar, hy-
dropower, biomass, and geothermal resources that— 
‘‘(A) are renewable; 
‘‘(B) are dispersed widely across different 
regions of the United States; and 
‘‘(C) can be harnessed to generate a sig-
nificant share of electricity in the United 
States. 
‘‘(b) DEFINITIONS.—In this section: 
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‘‘(1) BROWNFIELD
SITE
GENERATION
FACIL-
ITY.—The term ‘brownfield site generation facility’ 
means a facility that— 
‘‘(A) generates renewable electricity; and 
‘‘(B) occupies a brownfield site (as that 
term is defined in section 101 of the Com-
prehensive Environmental Response, Compensa-
tion, and Liability Act of 1980 (42 U.S.C. 
9601)). 
‘‘(2) DISTRIBUTED
RENEWABLE
GENERATION 
FACILITY.—The term ‘distributed renewable genera-
tion facility’ means a facility that— 
‘‘(A) generates renewable electricity; 
‘‘(B) primarily serves one or more electric 
consumers at or near the facility site; and 
‘‘(C) has not more than 2 megawatts in 
capacity. 
‘‘(3) 
FEDERAL
RENEWABLE
ELECTRICITY 
CREDIT.—The term ‘Federal renewable electricity 
credit’ means a credit, representing 1 megawatt 
hour of renewable electricity, issued pursuant to sub-
section (f). 
‘‘(4) INDIAN
LAND.—The term ‘Indian land’ 
means— 
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‘‘(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria; 
‘‘(B) any land not within the limits of any 
Indian reservation, pueblo, or rancheria, title to 
which was on the date of enactment of this sec-
tion held by— 
‘‘(i) the United States for the benefit 
of any Indian tribe or individual; or 
‘‘(ii) any Indian tribe or individual 
subject to restriction by the United States 
against alienation; 
‘‘(C) any dependent Indian community; or 
‘‘(D) any land conveyed under the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 
et seq.) to any Native Corporation (as that 
term is defined in section 3 of that Act (43 
U.S.C. 1602)). 
‘‘(5) INDIAN TRIBE.—The term ‘Indian tribe’ 
means any Indian tribe, band, nation, or other orga-
nized group or community (including any Native vil-
lage, Regional Corporation, or Village Corporation 
(as those terms are defined in section 3 of the Alas-
ka Native Claims Settlement Act (43 U.S.C. 1602))) 
that is recognized as eligible for the special pro-
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grams and services provided by the United States to 
Indians because of their status as Indians. 
‘‘(6) QUALIFIED
HYDROPOWER.—The term 
‘qualified hydropower’ means— 
‘‘(A) energy produced from increased effi-
ciency achieved, or additions of capacity made, 
on or after January 1, 2001, at a hydroelectric 
facility that— 
‘‘(i) was placed in service before that 
date; and 
‘‘(ii) does not include additional en-
ergy generated as a result of operational 
changes not directly associated with effi-
ciency improvements or capacity additions; 
or 
‘‘(B) energy produced from generating ca-
pacity added to a dam on or after January 1, 
2001, if the Commission certifies that— 
‘‘(i) the dam— 
‘‘(I) was placed in service before 
the date of enactment of this section; 
‘‘(II) was operated for flood con-
trol, navigation, or water supply pur-
poses; and 
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‘‘(III) was not producing hydro-
electric power prior to the addition of 
the capacity; and 
‘‘(ii) the hydroelectric project installed 
on the dam— 
‘‘(I) is licensed or is exempt from 
licensing by the Commission; 
‘‘(II) is in compliance with— 
‘‘(aa) the terms and condi-
tions of the license or exemption; 
and 
‘‘(bb) other applicable legal 
requirements for the protection 
of environmental quality, includ-
ing applicable fish passage re-
quirements; and 
‘‘(III) is operated so that the 
water surface elevation at any given 
location and time that would have oc-
curred in the absence of the hydro-
electric project is maintained, subject 
to any license or exemption require-
ments that require changes in water 
surface elevation for the purpose of 
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improving the environmental quality 
of the affected waterway. 
‘‘(7) QUALIFIED
RENEWABLE
BIOMASS.—The 
term ‘qualified renewable biomass’ means renewable 
biomass that, when combusted, yields, on a weight-
ed-average basis, a 50-percent reduction in lifecycle 
greenhouse gas emissions (as defined in section 4(a) 
of the American Renewable Energy and Efficiency 
Act) per unit of useful energy, as compared to the 
operation of a combined cycle natural gas electric 
generating facility using the most efficient commer-
cially available technology, when calculated over a 
20-year life cycle. 
‘‘(8) RENEWABLE BIOMASS.—The term ‘renew-
able biomass’ means— 
‘‘(A) crops, crop byproducts, or crop resi-
dues harvested from actively managed or fallow 
agricultural land that is— 
‘‘(i) nonforested; and 
‘‘(ii) cleared prior to the date of en-
actment of this section; 
‘‘(B) planted trees, brush, slash, and all 
residues from an actively managed tree farm lo-
cated on non-Federal land cleared prior to the 
date of enactment of this section; 
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‘‘(C) precommercial-sized thinnings, slash, 
brush, and residue from milled trees, from for-
ested land that is not— 
‘‘(i) old-growth or mature forest; 
‘‘(ii) identified under a State natural 
heritage program as rare, imperiled, or 
critically imperiled; or 
‘‘(iii) Federal land; 
‘‘(D) algae; 
‘‘(E) nonhazardous plant matter derived 
from waste— 
‘‘(i) including separated yard waste, 
landscape right-of-way trimmings, or food 
waste; but 
‘‘(ii) not including municipal solid 
waste, recyclable waste paper, painted, 
treated or pressurized wood, or wood con-
taminated with plastic or metals; 
‘‘(F) animal waste or animal byproducts, 
including products of animal waste digesters; 
‘‘(G) vegetative matter removed from with-
in 200 yards of any manmade structure or 
campground; and 
‘‘(H) 
slash 
and 
precommercial-sized 
thinnings harvested— 
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‘‘(i) in environmentally sustainable 
quantities, as determined by the appro-
priate Federal land manager; and 
‘‘(ii) from National Forest System 
land or public lands (as defined in section 
103 of the Federal Land Policy and Man-
agement Act of 1976 (43 U.S.C. 1702)), 
other than— 
‘‘(I) components of the National 
Wilderness Preservation System es-
tablished under the Wilderness Act 
(16 U.S.C. 1131 et seq.); 
‘‘(II) Wilderness Study Areas, as 
identified by the Bureau of Land 
Management; 
‘‘(III) inventoried roadless areas 
and all unroaded areas of at least 
5,000 acres; 
‘‘(IV) old growth and late seral 
stands; 
‘‘(V) components of the National 
Landscape Conservation System ad-
ministered by the Bureau of Land 
Management; and 
‘‘(VI) national monuments. 
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‘‘(9) RENEWABLE ELECTRICITY.—The term ‘re-
newable electricity’ means electricity generated (in-
cluding by means of a fuel cell) from a renewable en-
ergy resource. 
‘‘(10) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘renewable energy resource’ means each of the 
following: 
‘‘(A) Wind energy. 
‘‘(B) Solar energy. 
‘‘(C) Geothermal energy. 
‘‘(D) Qualified renewable biomass. 
‘‘(E) Biogas derived from qualified renew-
able biomass. 
‘‘(F) Biofuels derived from qualified re-
newable biomass. 
‘‘(G) Qualified hydropower. 
‘‘(H) Marine and hydrokinetic renewable 
energy (as defined in section 632 of the Energy 
Independence and Security Act of 2007 (42 
U.S.C. 17211)). 
‘‘(I) Landfill gas. 
‘‘(11) RETAIL ELECTRIC SUPPLIER.— 
‘‘(A) IN GENERAL.—The term ‘retail elec-
tric supplier’ means, for any calendar year, an 
electric utility that sells not fewer than 
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1,000,000 megawatt hours of electric energy to 
electric consumers for purposes other than re-
sale during the preceding calendar year. 
‘‘(B) INCLUSIONS AND LIMITATIONS.—For 
purposes of determining whether an electric 
utility qualifies as a retail electric supplier 
under subparagraph (A)— 
‘‘(i) the sales made by any affiliate of 
the electric utility to electric consumers, 
other than sales to lessees or tenants of 
the affiliate, for purposes other than resale 
shall be considered to be sales made by the 
electric utility; and 
‘‘(ii) sales made by the electric utility 
to an affiliate, lessee, or tenant of the elec-
tric utility shall not be treated as sales to 
electric consumers. 
‘‘(C) AFFILIATE.—In this paragraph, the 
term ‘affiliate’ when used in relation to a per-
son, means another person that directly or indi-
rectly owns or controls, is owned or controlled 
by, or is under common ownership or control 
with, that person, as determined under regula-
tions promulgated by the Commission. 
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‘‘(12) RETAIL
ELECTRIC
SUPPLIER’S
BASE 
QUANTITY.—The term ‘retail electric supplier’s base 
quantity’ means the total quantity of electric energy 
sold by the retail electric supplier, expressed in 
megawatt hours, to electric customers for purposes 
other than resale during the relevant calendar year, 
excluding— 
‘‘(A) electricity generated by a hydro-
electric facility, other than qualified hydro-
power; and 
‘‘(B) electricity generated by the combus-
tion of municipal solid waste. 
‘‘(13) RETIRE AND RETIREMENT.—The terms 
‘retire’ and ‘retirement’ with respect to a Federal re-
newable electricity credit, means to disqualify the 
credit for any subsequent use under this section, re-
gardless of whether the use is a sale, transfer, ex-
change, or submission in satisfaction of a compliance 
obligation. 
‘‘(c) ANNUAL COMPLIANCE OBLIGATION.—Except as 
otherwise provided in subsection (g), for each of calendar 
years 2015 through 2040, not later than March 31 of the 
following calendar year, each retail electric supplier shall 
submit to the Commission a quantity of Federal renewable 
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electricity credits that is equal to at least the annual tar-
get of the retail electric supplier under subsection (e). 
‘‘(d) ESTABLISHMENT OF PROGRAM.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Commis-
sion shall promulgate regulations to implement and 
enforce the requirements of this section. 
‘‘(2) CONSIDERATIONS.—In promulgating regu-
lations under paragraph (1), the Commission shall, 
to the maximum extent practicable— 
‘‘(A) preserve the integrity and incorporate 
best practices of existing State and tribal re-
newable electricity programs; 
‘‘(B) rely on existing and emerging State, 
tribal, or regional tracking systems that issue 
and track non-Federal renewable electricity 
credits; and 
‘‘(C) cooperate with States and Indian 
tribes— 
‘‘(i) to facilitate coordination between 
State, tribal, and Federal renewable elec-
tricity programs; and 
‘‘(ii) to minimize administrative bur-
dens and costs to retail electric suppliers. 
‘‘(e) ANNUAL COMPLIANCE REQUIREMENT.— 
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tricity generation potential, taking into account 
regional resource availability, economic feasi-
bility, and technological capability. 
‘‘(f) FEDERAL RENEWABLE ELECTRICITY CRED-
ITS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) 
ISSUANCE; 
TRACKING; 
VERIFICATION.—The regulations promulgated 
under this section shall include provisions gov-
erning the issuance, tracking, and verification 
of Federal renewable electricity credits. 
‘‘(B) CREDIT RATIO.—Except as provided 
in paragraphs (2) through (4), the Commission 
shall issue to each generator of renewable elec-
tricity, 1 Federal renewable electricity credit for 
each megawatt hour of renewable electricity 
generated by the generator after December 31, 
2014. 
‘‘(C) SERIAL NUMBER.—The Commission 
shall assign a unique serial number to each 
Federal renewable electricity credit. 
‘‘(2) GENERATION FROM CERTAIN STATE RE-
NEWABLE ELECTRICITY PROGRAMS.— 
‘‘(A) IN
GENERAL.—If renewable elec-
tricity is generated with the support of pay-
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ments from a retail electric supplier pursuant 
to a State renewable electricity program 
(whether through State alternative compliance 
payments or through payments to a State re-
newable electricity procurement fund or entity), 
the Commission shall issue Federal renewable 
electricity credits to the retail electric supplier 
for the portion of the relevant renewable elec-
tricity generation that is attributable to pay-
ments made by the retail electric supplier, as 
determined pursuant to regulations promul-
gated by the Commission. 
‘‘(B) REMAINING PORTION.—For any re-
maining portion of the relevant renewable elec-
tricity generation, the Commission shall issue 
Federal renewable electricity credits to the gen-
erator, as provided in paragraph (1), except 
that not more than 1 Federal renewable elec-
tricity credit shall be issued for the same mega-
watt hour of electricity. 
‘‘(C) STATE
GUIDANCE.—In determining 
how Federal renewable electricity credits will be 
apportioned among retail electric suppliers and 
generators under this paragraph, the Commis-
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sion shall consider information and guidance 
issued by the applicable one or more States. 
‘‘(3) CERTAIN POWER SALES CONTRACTS.—Ex-
cept as otherwise provided in paragraph (2), if a 
generator has sold renewable electricity to a retail 
electric supplier under a contract for power from a 
facility placed in service before the date of enact-
ment of this section, and the contract does not pro-
vide for the determination of ownership of the Fed-
eral renewable electricity credits associated with the 
generation, the Commission shall issue the Federal 
renewable electricity credits to the retail electric sup-
plier for the duration of the contract. 
‘‘(4) CREDIT MULTIPLIERS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph 
(B), 
the 
Commission 
shall 
issue— 
‘‘(i) not more than 3 Federal renew-
able electricity credits for each megawatt 
hour of renewable electricity generated by 
a distributed renewable generation facility; 
‘‘(ii) not more than 2 Federal renew-
able electricity credits for each megawatt 
hour of renewable electricity generated on 
Indian land; and 
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‘‘(iii) not more than 2 Federal renew-
able electricity credits for each megawatt 
hour of renewable electricity generated by 
a brownfield site generation facility. 
‘‘(B) ADJUSTMENT.—Except as provided 
in subparagraph (C), not later than January 1, 
2017, and not less frequently than every 4 
years thereafter, the Commission shall review 
the effect of this paragraph on the aggregate 
quantity of renewable electricity produced under 
the standard and shall, as necessary and after 
providing 1 year of notice, reduce the number 
of Federal renewable electricity credits per 
megawatt hour issued under this paragraph for 
any given energy source or facility, but not 
below one, to ensure that the number is no 
higher than the Commission determines is nec-
essary— 
‘‘(i) to incentivize incremental renew-
able energy generation on Indian land and 
brownfield sites; and 
‘‘(ii) to make distributed renewable 
generation facilities cost competitive with 
other sources of renewable electricity gen-
eration. 
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‘‘(C) FACILITIES
PLACED
IN
SERVICE 
AFTER ENACTMENT.— 
‘‘(i) IN GENERAL.—For any renewable 
generation facility placed in service after 
the date of enactment of this section, sub-
paragraph (B) shall not apply for the first 
10 years after the date on which the facil-
ity is placed in service. 
‘‘(ii) INITIAL PERIOD.—For each year 
during the 10-year period described in 
clause (i), the Commission shall issue to 
the facility the same number of Federal re-
newable electricity credits per megawatt 
hour as are issued to that facility in the 
year in which the facility is placed in serv-
ice. 
‘‘(iii) SUBSEQUENT
PERIOD.—After 
the 10-year period described in clause (i), 
the Commission shall issue Federal renew-
able electricity credits to the facility in ac-
cordance with subparagraph (B). 
‘‘(5) CREDITS BASED ON QUALIFIED HYDRO-
POWER.—For purposes of this subsection, the num-
ber of Federal renewable electricity credits issued for 
qualified hydropower shall be calculated— 
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‘‘(A) based solely on the increase in aver-
age annual generation directly resulting from 
the efficiency improvements or capacity addi-
tions described in subsection (a)(6)(A); and 
‘‘(B) using the same water flow informa-
tion used to determine a historic average an-
nual generation baseline for the hydroelectric 
facility, as certified by the Commission. 
‘‘(6) GENERATION
FROM
MIXED
RENEWABLE 
AND NONRENEWABLE RESOURCES.—If electricity is 
generated using both a renewable energy resource 
and an energy source that is not a renewable energy 
resource (such as cofiring of renewable biomass and 
fossil fuel), the Commission shall issue Federal re-
newable electricity credits based on the proportion of 
the electricity that is attributable to the renewable 
energy resource. 
‘‘(7) PROHIBITION
AGAINST
DOUBLE-COUNT-
ING.—The Commission shall ensure that— 
‘‘(A) no Federal renewable electricity cred-
it is used more than once for compliance with 
this section; and 
‘‘(B) except as provided in paragraph (4), 
not more than 1 Federal renewable electricity 
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credit is issued for any megawatt hour of re-
newable electricity. 
‘‘(8) TRADING.—The lawful holder of a Federal 
renewable electricity credit may— 
‘‘(A) sell, exchange, or transfer the credit; 
‘‘(B) submit the credit for compliance 
under subsection (c); or 
‘‘(C) submit the credit for retirement by 
the Commission. 
‘‘(9) BANKING.— 
‘‘(A) IN GENERAL.—A Federal renewable 
electricity credit may be submitted in satisfac-
tion of the compliance obligation under sub-
section (c) for the compliance year in which the 
credit was issued or for any of the 3 imme-
diately subsequent compliance years. 
‘‘(B) 
RETIREMENT.—The 
Commission 
shall retire any Federal renewable electricity 
credit that has not been retired by April 2 of 
the calendar year that is 3 years after the cal-
endar year during which the credit was issued. 
‘‘(10) RETIREMENT.—The Commission shall re-
tire a Federal renewable electricity credit imme-
diately upon submission by the lawful holder of the 
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credit, whether in satisfaction of a compliance obli-
gation under subsection (c) or for another reason. 
‘‘(g) ALTERNATIVE COMPLIANCE PAYMENTS.— 
‘‘(1) IN
GENERAL.—A retail electric supplier 
may satisfy the requirements of subsection (c) in 
whole or in part by submitting in accordance with 
this subsection, in lieu of each Federal renewable 
electricity credit that would otherwise be due, a pay-
ment equal to $50, adjusted for inflation on January 
1 of each year following calendar year 2015, in ac-
cordance with regulations promulgated by the Com-
mission. 
‘‘(2) PAYMENT TO STATE FUNDS.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, payments made 
under this subsection shall be made directly to 
one or more States in which the retail electric 
supplier sells electric energy, in proportion to 
the portion of the retail electric supplier’s base 
quantity that is sold within each applicable 
State, if— 
‘‘(i) the payments are deposited di-
rectly into a fund of the State treasury es-
tablished for that purpose; and 
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‘‘(ii) the State uses the funds in ac-
cordance with paragraphs (3) and (4). 
‘‘(B) NONCOMPLIANCE.—If the Commis-
sion determines that a State is in substantial 
noncompliance with paragraph (3) or (4), the 
Commission shall direct that any future alter-
native compliance payments that would other-
wise be paid to the State under this subsection 
shall instead be paid to the Commission and de-
posited in the Treasury. 
‘‘(3) STATE USE OF FUNDS.—As a condition of 
receipt of alternative compliance payments under 
this subsection, a State shall use the payments ex-
clusively for— 
‘‘(A) deploying technologies that generate 
electricity from renewable energy resources; or 
‘‘(B) implementing cost-effective energy ef-
ficiency programs to achieve energy savings. 
‘‘(4) REPORTING.— 
‘‘(A) IN GENERAL.—As a condition of re-
ceipt of alternative compliance payments pursu-
ant to this subsection, a State shall submit to 
the Commission an annual report, in accord-
ance with regulations promulgated by the Com-
mission, containing a full accounting of the use 
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of the payments, including a detailed descrip-
tion of the activities funded by the payments 
and demonstrating compliance with the require-
ments of this subsection. 
‘‘(B) DEADLINE.—A State shall submit a 
report under this paragraph— 
‘‘(i) not later than 1 year after the 
date on which the first alternative compli-
ance payment is received; and 
‘‘(ii) every 1 year thereafter until all 
alternative compliance payments are ex-
pended. 
‘‘(h) INFORMATION COLLECTION.— 
‘‘(1) IN GENERAL.—The Commission may re-
quire any retail electric supplier, renewable elec-
tricity generator, or any other entity that the Com-
mission determines appropriate, to provide any in-
formation the Commission determines appropriate to 
carry out this section. 
‘‘(2) FAILURE
TO
SUBMIT; FALSE
OR
MIS-
LEADING
INFORMATION.—Any entity required to 
submit information under paragraph (1) that fails to 
submit the information or submits false or mis-
leading information shall be in violation of this sec-
tion. 
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‘‘(i) ENFORCEMENT AND JUDICIAL REVIEW.— 
‘‘(1) FAILURE
TO
SUBMIT
CREDITS.—If any 
person fails to comply with the requirements of sub-
section (c) or (g), the person shall be liable to pay 
to the Commission a civil penalty equal to the prod-
uct obtained by multiplying— 
‘‘(A) double the alternative compliance 
payment calculated under subsection (g)(1); 
and 
‘‘(B) the aggregate quantity of Federal re-
newable electricity credits or equivalent alter-
native compliance payments that the person 
failed to submit in violation of the requirements 
of subsections (c) and (g). 
‘‘(2) ENFORCEMENT.—The Commission shall 
assess a civil penalty under paragraph (1) in accord-
ance with the procedures described in section 31(d) 
of the Federal Power Act (16 U.S.C. 823b(d)). 
‘‘(3) VIOLATION OF REQUIREMENT OF REGULA-
TIONS OR ORDERS.— 
‘‘(A) IN GENERAL.—Any person who vio-
lates or fails or refuses to comply with any re-
quirement of a regulation promulgated or order 
issued under this section shall be subject to a 
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civil penalty under section 316A(b) of the Fed-
eral Power Act (16 U.S.C. 825o–1(b)). 
‘‘(B) ASSESSMENT.—The penalty under 
subparagraph (A) shall be assessed by the Com-
mission in the same manner as in the case of 
a violation referred to in section 316A(b) of 
that Act. 
‘‘(4) JUDICIAL REVIEW.— 
‘‘(A) IN GENERAL.—Any person aggrieved 
by a final action taken by the Commission 
under this section, other than the assessment of 
a civil penalty under paragraphs (1) through 
(3), may use the procedures for review de-
scribed in section 313 of the Federal Power Act 
(16 U.S.C. 825l). 
‘‘(B) REFERENCE.—For purposes of this 
paragraph, references to an order in section 
313 of that Act shall be considered to refer also 
to all other final actions of the Commission 
under this section other than the assessment of 
a civil penalty under paragraphs (1) through 
(3). 
‘‘(j) ADMINISTRATION.—Nothing in this section— 
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‘‘(1) diminishes or qualifies any authority of a 
State, a political subdivision of a State, or an Indian 
tribe— 
‘‘(A) to adopt or enforce any law or regula-
tion respecting renewable electricity, including 
any law or regulation establishing requirements 
that are more stringent than those established 
by this section, provided that no such law or 
regulation may relieve any person of any re-
quirement otherwise applicable under this sec-
tion; or 
‘‘(B) to regulate the acquisition and dis-
position of Federal renewable electricity credits 
by retail electric suppliers within the jurisdic-
tion of the State, political subdivision, or Indian 
tribe, including the authority to require the re-
tail electric supplier to acquire and submit to 
the Commission for retirement Federal renew-
able electricity credits in excess of those sub-
mitted under this section; or 
‘‘(2) affects the application of or the responsi-
bility for compliance with any other provision of law 
or regulation, including environmental and licensing 
requirements. 
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