‘‘(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) preserve the integrity of voluntary re-
newable energy markets; 
‘‘(C) design and implement such regula-
tions in a manner that seeks to be equitable 
and just; 
‘‘(D) identify and prioritize measures to 
maximize reductions of emissions of greenhouse 
gases and criteria air pollutants in impacted 
communities; 
‘‘(E) ensure that activities undertaken to 
comply with such regulations result in a net de-
crease in emissions of criteria air pollutants in 
impacted communities; 
‘‘(F) ensure that the deployment of any 
new renewable electricity generation provides 
economic, health, and resiliency benefits to the 
communities and areas in which the generation 
is built, including the use of community benefit 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
agreements or equivalent means as determined 
appropriate by the Commission; 
‘‘(G) 
prioritize 
measures 
that 
will 
incentivize or allow for distributed, community, 
and public ownership over renewable energy 
projects; 
‘‘(H) establish and delegate to an appro-
priate entity the administration of a national 
Federal renewable electricity credit trading 
market for the issuance and trade of Federal 
renewable electricity credits, relying on existing 
and emerging State, Tribal, or regional track-
ing systems that issue and track non-Federal 
renewable electricity credits; 
‘‘(I) establish and delegate to appropriate 
entities the administration of not fewer than 6 
regional, geographically-based, Federal renew-
able electricity credit trading markets, and de-
termine the optimal levels of credit trading al-
lowed within and between regions to maximize 
deployment of new renewable electricity genera-
tion within each region; 
‘‘(J) cooperate with States and Indian 
Tribes— 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(i) to facilitate coordination between 
State, Tribal, and Federal renewable elec-
tricity programs; and 
‘‘(ii) to minimize administrative bur-
dens and costs to retail electricity sup-
pliers; and 
‘‘(K) encourage strategic deployment of 
distributed generation to maximize system ben-
efits that can lower costs for all customers, in-
cluding siting generation resources in grid-con-
strained areas and co-location of renewable en-
ergy resources with energy storage. 
‘‘(d) ANNUAL COMPLIANCE REQUIREMENT.— 
‘‘(1) ANNUAL TARGETS.—For each of calendar 
years 2021 through 2030, the annual target of a re-
tail electricity supplier shall be equal to the number 
of megawatt hours that is equal to the product ob-
tained by multiplying— 
‘‘(A) the required annual percentage for 
that calendar year under paragraph (2); and 
‘‘(B) the retail electricity supplier’s base 
quantity for that calendar year. 
‘‘(2) REQUIRED
ANNUAL
PERCENTAGE.—For 
each of calendar years 2021 through 2030, the re-
quired annual percentage shall be as follows: 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
Required annual 
‘‘Year: 
percentage: 
2021 ...................................................................................................
20.0
2022 ...................................................................................................
24.5
2023 ...................................................................................................
29.0
2024 ...................................................................................................
34.0
2025 ...................................................................................................
39.0
2026 ...................................................................................................
45.0
2027 ...................................................................................................
51.0
2028 ...................................................................................................
57.0
2029 ...................................................................................................
63.5
2030 ...................................................................................................
70.0. 
‘‘(e) 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 (5), 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, 
2020. 
‘‘(C) SERIAL NUMBER.—The Commission 
shall assign a unique serial number to each 
Federal renewable electricity credit. 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(2) GENERATION FROM CERTAIN STATE RE-
NEWABLE ELECTRICITY PROGRAMS.— 
‘‘(A) IN
GENERAL.—If renewable elec-
tricity is generated with the support of pay-
ments from a retail electricity 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 electricity sup-
plier for the portion of the relevant renewable 
electricity generation that is attributable to pay-
ments made by the retail electricity 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. 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(C) STATE
GUIDANCE.—In determining 
how Federal renewable electricity credits will be 
apportioned among retail electricity suppliers 
and generators under this paragraph, the Com-
mission 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 
electricity 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 electricity 
supplier for the duration of the contract. 
‘‘(4) CREDITS BASED ON QUALIFIED HYDRO-
POWER.—For purposes of this subsection, the num-
ber of megawatt hours of renewable electricity gen-
eration from qualified hydropower shall be cal-
culated— 
‘‘(A) based solely on the increase in aver-
age annual generation directly resulting from 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
the efficiency improvements or capacity addi-
tions described in subsection (a)(6); 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. 
‘‘(5) CREDITS BASED ON FARM ANAEROBIC DI-
GESTION.—For any calendar year, a generator may 
only receive Federal renewable electricity credits for 
renewable electricity generated from biogas that is 
derived from farm anaerobic digestion if— 
‘‘(A) any manure used for such anaerobic 
digestion is from a farm that only provides its 
manure for anaerobic digestion to one anaerobic 
digester system; 
‘‘(B) the anaerobic digester system used by 
such generator has a capacity of less than, or 
equal to, 1 megawatt; and 
‘‘(C) during such calendar year the total 
renewable electricity produced from biogas de-
rived from farm anaerobic digestion in the ap-
plicable State represents not more than 10 per-
cent of the State’s overall electricity usage. 
‘‘(6) GENERATION
FROM
MIXED
RENEWABLE 
AND NONRENEWABLE RESOURCES.—If electricity is 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
generated using both a renewable energy resource 
and an energy source that is not a renewable energy 
resource, the Commission shall issue Federal renew-
able electricity credits based on the proportion of the 
electricity generated that is attributable to the re-
newable 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) not more than 1 Federal renewable 
electricity credit is issued for any megawatt 
hour of renewable electricity generated. 
‘‘(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 (b); 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-
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
section (b) for the compliance year for which 
the credit was issued or for any of the 2 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 2 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 
credit, whether in satisfaction of a compliance obli-
gation under subsection (b) or for another reason. 
‘‘(f) ALTERNATIVE COMPLIANCE PAYMENTS.— 
‘‘(1) IN GENERAL.—A retail electricity supplier 
may satisfy the requirements of subsection (b) in 
whole or in part by submitting in accordance with 
this subsection, in lieu of each Federal renewable 
electricity credit that would otherwise be submitted, 
an alternative compliance payment equal to $50, ad-
justed for inflation on January 1 of each year fol-
lowing calendar year 2021, in accordance with regu-
lations promulgated by the Commission. 
‘‘(2) PAYMENT TO STATE FUNDS.— 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(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 elec-
tricity supplier sells electricity, in proportion to 
the portion of the retail electricity 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 
‘‘(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 paragraph 
(4), the Commission shall direct that any future 
alternative compliance payments that would 
otherwise be paid to the State under this sub-
section shall instead be paid to the Commission 
and deposited in the Treasury. 
‘‘(3) STATE USE OF FUNDS.—As a condition of 
receipt of alternative compliance payments pursuant 
to this subsection, a State shall— 
‘‘(A) use the payments exclusively for— 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(i) deploying technologies that gen-
erate electricity from renewable energy re-
sources; 
‘‘(ii) deploying technologies that store 
electricity for use at a later time; or 
‘‘(iii) implementing cost-effective en-
ergy efficiency programs to achieve energy 
savings; and 
‘‘(B) invest or use the payments in a man-
ner designed to ensure that impacted commu-
nities receive, or directly benefit from, at least 
50 percent of such funds. 
‘‘(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 
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— 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(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. 
‘‘(g) INFORMATION COLLECTION.—The Commission 
may require any retail electricity supplier, renewable elec-
tricity generator, or any other entity that the Commission 
determines appropriate, to provide any information the 
Commission determines appropriate to carry out this sec-
tion. 
‘‘(h) ENFORCEMENT AND JUDICIAL REVIEW.— 
‘‘(1) FAILURE
TO
SUBMIT
CREDITS.—If any 
person fails to comply with the requirements of sub-
section (b) or (f) for a calendar year, the person 
shall be liable to pay to the Commission a civil pen-
alty equal to the product obtained by multiplying— 
‘‘(A) double the alternative compliance 
payment calculated under subsection (f)(1) for 
such calendar year; 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 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
of subsections (b) and (f) for such calendar 
year. 
‘‘(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. 
‘‘(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 this section, other than a require-
ment of subsection (b) or (f), shall be subject 
to a civil penalty under section 316A(b) of the 
Federal Power Act. 
‘‘(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-
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
scribed in section 313 of the Federal Power 
Act. 
‘‘(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). 
‘‘(i) ADMINISTRATION.—Nothing in this section— 
‘‘(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 electricity suppliers within the jurisdic-
tion of the State, political subdivision, or Indian 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
Tribe, including the authority to require the re-
tail electricity 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.’’. 
SEC. 3. CLARIFYING STATE AUTHORITY TO ADOPT RENEW-
ABLE ENERGY INCENTIVES. 
Section 210 of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 824a–3) is amended by adding 
at the end the following: 
‘‘(o) CLARIFICATION
OF STATE AUTHORITY TO 
ADOPT RENEWABLE ENERGY INCENTIVES.— 
‘‘(1) DEFINITION
OF
STATE-APPROVED
PRO-
DUCTION INCENTIVE PROGRAM.—In this subsection, 
the term ‘State-approved production incentive pro-
gram’ means a requirement imposed pursuant to 
State law or by a State regulatory authority acting 
within its authority under State law that an electric 
utility purchase renewable energy (as defined in sec-
tion 609(a)) at a specified rate. 
‘‘(2) STATE AUTHORITY TO ADOPT RENEWABLE 
ENERGY
INCENTIVES.—Notwithstanding any other 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS
provision of this Act or the Federal Power Act, a 
State law or State regulatory authority may set the 
rates for a sale of electricity by a facility generating 
renewable energy (as defined in section 609(a)) pur-
suant to a State-approved production incentive pro-
gram under which the facility voluntarily partici-
pates in the State-approved production incentive 
program.’’. 
SEC. 4. CONFORMING AMENDMENT. 
The table of contents of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. prec. 2601) is amended 
by adding at the end of the items relating to title VI the 
following: 
‘‘Sec. 609. Rural and remote communities electrification grants. 
‘‘Sec. 610. Federal renewable electricity standard.’’. 
Æ 
VerDate Sep 11 2014 
16:10 Jul 16, 2021
Jkt 019200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6301
E:\BILLS\H3959.IH
H3959
pamtmann on DSKBC07HB2PROD with BILLS