I 
117TH CONGRESS 
1ST SESSION H. R. 4309 
To advance innovation in and deployment of zero-emission electricity 
technology, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 1, 2021 
Ms. DEGETTE (for herself, Mr. PETERS, and Ms. KUSTER) introduced the fol-
lowing bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committees on Science, Space, and Tech-
nology, Ways and Means, Transportation and Infrastructure, and Edu-
cation and Labor, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To advance innovation in and deployment of zero-emission 
electricity technology, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Clean Energy Innovation and Deployment Act of 2021’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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TITLE I—INVESTMENT IN CLEAN ENERGY TECHNOLOGY 
INNOVATION 
Sec. 100. Purpose. 
Subtitle A—Clean Energy Deployment Administration 
Sec. 101. Definitions. 
Sec. 102. Energy technology deployment goals. 
Sec. 103. Clean Energy Deployment Administration. 
Sec. 104. Administration functions. 
Sec. 105. Improvements to existing clean energy investment programs. 
Sec. 106. Federal credit authority. 
Sec. 107. General provisions. 
Subtitle B—Carbon-Free Technology Innovation 
Sec. 111. Demand efficiency technology innovation. 
Sec. 112. Super hot rock geothermal energy technology innovation. 
Sec. 113. Zero carbon fuel technology innovation. 
Sec. 114. Advanced nuclear reactor innovation. 
Sec. 115. National offshore wind energy goal. 
TITLE II—ZERO-EMISSION ELECTRICITY STANDARD 
Sec. 200. Purpose. 
Subtitle A—Zero-Emission Electricity Standard 
Sec. 201. Definitions. 
Sec. 202. Zero-emission electricity requirement. 
Sec. 203. Zero-emission electricity credit trading program. 
Sec. 204. Determination and issuance of quantity of zero-emission electricity 
credits. 
Sec. 205. Carbon Mitigation Fund. 
Sec. 206. State programs. 
Sec. 207. Report to Congress. 
Sec. 208. Information collection. 
Sec. 209. Civil penalties. 
Sec. 210. Regulations. 
Subtitle B—Methane Regulation 
Sec. 211. Methane regulation. 
TITLE III—INCENTIVES FOR THE ACCELERATED DEPLOYMENT 
OF ZERO-EMISSION ELECTRICITY 
Sec. 300. Purpose. 
Subtitle A—Incentives for the Accelerated Deployment of 80-Percent and 
100-Percent Zero-Emission Electricity Systems 
Sec. 301. Zero-emission electricity acceleration investment tax credit. 
Sec. 302. Zero-emission electricity acceleration grants. 
Sec. 303. Recipients of certain clean energy investment tax credits. 
Subtitle B—Carbon-Targeted Zero-Emission Electricity Tax Credit 
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Sec. 311. Carbon-targeted zero-emission electricity tax credit. 
Sec. 312. Election to treat carbon-targeted zero-emission electricity facility as 
energy property. 
Sec. 313. Energy tax credit monetization. 
TITLE IV—LOW-INCOME RATE-PAYER PROTECTION 
Sec. 400. Purpose. 
Sec. 401. Weatherization assistance program. 
Sec. 402. LIHEAP authorization. 
TITLE V—ENERGY WORKFORCE TRANSITION AND TRAINING 
Sec. 500. Purposes and definitions. 
Subtitle A—State Energy Plans 
Sec. 501. State energy plans. 
Sec. 502. Authorization of appropriations. 
Subtitle B—Energy Workforce Transition 
Sec. 511. Energy Workforce Transition Office and Advisory Committee. 
Sec. 512. Energy workforce transition plans and reemployment of affected 
workers. 
Subtitle C—Modern Energy Workforce Development 
PART 1—MODERN ENERGY WORKFORCE DEVELOPMENT 
Sec. 521. Modern energy workforce development. 
Sec. 522. Clean Energy Jobs Training Program. 
Sec. 523. University Zero-Emission Energy Leadership Program. 
Sec. 524. Authorization of appropriations. 
PART 2—CLIMATE RESILIENCY CORPS 
Sec. 531. Establishment of the Climate Resiliency Corps. 
Sec. 532. Board of Directors of the Climate Resiliency Corps. 
Sec. 533. Chief executive officer of the Climate Resiliency Corps. 
Sec. 534. Senior management. 
Sec. 535. General employment within the Climate Resiliency Corps. 
Sec. 536. Project applications. 
Sec. 537. Funding. 
TITLE I—INVESTMENT IN CLEAN 
ENERGY TECHNOLOGY INNO-
VATION 
SEC. 100. PURPOSE. 
The purpose of this title is to facilitate innovation in 
a wide range of zero-emission electricity technologies. 
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Subtitle A—Clean Energy 
Deployment Administration 
SEC. 101. DEFINITIONS. 
In this subtitle: 
(1) ADMINISTRATION.—The term ‘‘Administra-
tion’’ means the Clean Energy Deployment Adminis-
tration established by section 103. 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Administra-
tion. 
(3) ADVISORY COUNCIL.—The term ‘‘Advisory 
Council’’ means the Energy Technology Advisory 
Council of the Administration. 
(4) BREAKTHROUGH TECHNOLOGY.—The term 
‘‘breakthrough technology’’ means a clean energy 
technology that— 
(A) presents a significant opportunity to 
advance the goals developed by the Secretary 
under section 102, as assessed under the meth-
odology established by the Advisory Council; 
and 
(B) has not been determined by the Sec-
retary to be commercially ready. 
(5) CLEAN ENERGY TECHNOLOGY.—The term 
‘‘clean energy technology’’ means a technology re-
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lated to the production, use, transmission, storage, 
control, or conservation of energy that will con-
tribute to the stabilization of the climate by reducing 
greenhouse gas emissions or sequestering or utilizing 
carbon dioxide and— 
(A) reduce the need for additional energy 
supplies by using existing energy supplies with 
greater efficiency; 
(B) transmit, distribute, or transport en-
ergy with greater effectiveness through the in-
frastructure of the United States; or 
(C) increase and diversify the sources of 
energy in the United States in a way that will 
reduce risk to human health, safety, and wel-
fare and the environment and create energy se-
curity. 
(6) COST.—The term ‘‘cost’’ has the meaning 
given the term in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a). 
(7) DIRECT LOAN.—The term ‘‘direct loan’’ has 
the meaning given the term in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 
(8) ENERGY
TRANSITION
COMMUNITY.—The 
term ‘‘energy transition community’’ has the mean-
ing given such term in section 500 of this Act. 
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(9) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ means— 
(A) an insured bank (as defined in section 
3(h) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(h))); 
(B) a commercial bank or trust company; 
(C) a private banker; 
(D) an agency or branch of a foreign bank 
in the United States; 
(E) any credit union; 
(F) a thrift institution; 
(G) a broker or dealer registered with the 
Securities and Exchange Commission under the 
Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.); 
(H) a broker or dealer in securities or 
commodities; 
(I) an investment banker or investment 
company; 
(J) an insurance company; 
(K) a loan or finance company; and 
(L) a green bank. 
(10) FUND.—The term ‘‘Fund’’ means the 
Clean Energy Investment Fund established by sec-
tion 105(a). 
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(11) GREEN BANK.—The term ‘‘green bank’’ 
means a dedicated public or nonprofit specialized fi-
nance entity that— 
(A) is designed to strategically drive pri-
vate capital into emerging low- and zero-emis-
sion goods and services; 
(B) uses finance tools to mitigate climate 
change; 
(C) does not take deposits; 
(D) is funded by government, public, pri-
vate, or charitable contributions; and 
(E) invests alone or in conjunction with 
other investors. 
(12) LOAN GUARANTEE.—The term ‘‘loan guar-
antee’’ has the meaning given the term in section 
502 of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661a). 
(13) NATIONAL LABORATORY.—The term ‘‘Na-
tional Laboratory’’ has the meaning given the term 
in section 2 of the Energy Policy Act of 2005 (42 
U.S.C. 15801). 
(14) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
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(15) SECURITY.—The term ‘‘security’’ has the 
meaning given the term in section 2 of the Securities 
Act of 1933 (15 U.S.C. 77b). 
(16) SMALL BUSINESS.—The term ‘‘small busi-
ness’’ means a business which is independently 
owned and operated and which is not dominant in 
its field of operation. The term ‘‘small business’’ 
may be further defined by the Administrator by the 
number of employees, dollar volume of business, net 
worth, net income, or other factors. 
(17) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; 
and 
(D) any other territory or possession of the 
United States. 
SEC. 102. ENERGY TECHNOLOGY DEPLOYMENT GOALS. 
(a) GOALS.—Not later than 1 year after the date of 
enactment of this Act, the Secretary, in consultation with 
the Advisory Council, shall develop and publish for review 
and comment in the Federal Register near-, medium-, and 
long-term goals (including numerical performance targets 
at appropriate intervals to measure progress toward those 
goals) for the deployment of clean energy technologies 
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through the credit support programs established by this 
subtitle to promote— 
(1) the deployment, by not later than 2050, of 
electric generating capacity with net-zero greenhouse 
gas emissions, that is sufficient to reliably meet the 
projected energy demand of the United States in 
2050; 
(2) clean energy technologies in vehicles and 
fuels that will substantially reduce the reliance of 
the United States on foreign sources of energy and 
insulate consumers from the volatility of global en-
ergy markets; 
(3) a domestic commercialization and manufac-
turing capacity that will establish the United States 
as a world leader in clean energy technologies across 
multiple sectors; 
(4) the installation of electricity transmission 
infrastructure with the capacity to provide the cost- 
effective deployment of zero-emission electricity tech-
nologies appropriate to each region of the United 
States; 
(5) the transformation of the building stock of 
the United States to net zero energy consumption; 
(6) the recovery, use, and prevention of waste 
energy; 
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(7) domestic manufacturing of clean energy 
technologies on a scale that is sufficient to achieve 
price parity with conventional energy sources; 
(8) domestic production of commodities and 
materials, including steel, chemicals, polymers, and 
cement, through the use of clean energy technologies 
that will establish the United States as a world lead-
er in the environmentally sustainable production of 
such commodities and materials; 
(9) a robust, efficient, and interactive electricity 
transmission grid that will allow for the incorpora-
tion of clean energy technologies, distributed genera-
tion, smart grid functions, and demand-response in 
each regional electric grid; 
(10) a variety of financial products intended to 
allow owners and users of residential, retail, com-
mercial, and industrial buildings to make energy ef-
ficiency and distributed generation technology in-
vestments with reasonable payback periods; 
(11) technical assistance to States and other 
political subdivisions that do not have green banks 
to establish independent, nonprofit green banks in 
such States and political subdivisions, including by 
working with relevant stakeholders in such States 
and political subdivisions; 
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(12) loan guarantees, credit enhancements, and 
other financial products to extend the reach and ef-
fectiveness of local, State, and regional financing en-
tities, including green banks, and particularly to 
support their ability to finance local projects that— 
(A) provide jobs; 
(B) mitigate greenhouse gas emissions; 
and 
(C) serve— 
(i) low-income, minority, and dis-
tressed neighborhoods (within the meaning 
of section 910 of the Housing and Commu-
nity Development Act of 1992 (12 U.S.C. 
2901 note; Public Law 102–550)); or 
(ii) low-income, minority, and rural 
consumers (within the meaning of the final 
rule of the Bureau of Consumer Financial 
Protection entitled ‘‘Ability-to-Repay and 
Qualified Mortgage Standards Under the 
Truth in Lending Act (Regulation Z)’’ (78 
Fed. Reg. 6408 (January 30, 2013))); and 
(13) such other goals as the Secretary, in con-
sultation with the Advisory Council, determines to be 
consistent with this subtitle. 
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(b) REVISIONS.—The Secretary shall revise the goals 
established under subsection (a), from time to time as ap-
propriate, to account for advances in technology and infra-
structure. 
SEC. 103. CLEAN ENERGY DEPLOYMENT ADMINISTRATION. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established in the 
Department of Energy an administration, to be 
known as the Clean Energy Deployment Administra-
tion. There shall be at the head of the Administra-
tion an Administrator and a Board of Directors, 
who shall be appointed by the President with the ad-
vice and consent of the Senate. 
(2) STATUS.— 
(A) IN
GENERAL.—The Administration 
(including officers, employees, and agents of the 
Administration) shall not be responsible to, or 
subject to the authority, direction, or control of, 
any other officer, employee, or agent of the De-
partment of Energy other than the Secretary, 
acting through the Administrator. 
(B) 
EXEMPTION
FROM
REORGANIZA-
TION.—The Administration shall be exempt 
from the reorganization authority provided 
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under section 643 of the Department of Energy 
Organization Act (42 U.S.C. 7253). 
(C) INSPECTOR GENERAL.—Section 12 of 
the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended— 
(i) in paragraph (1), by inserting ‘‘the 
Administrator of the Clean Energy Deploy-
ment Administration;’’ after ‘‘Export-Im-
port Bank;’’; and 
(ii) in paragraph (2), by inserting 
‘‘the Clean Energy Deployment Adminis-
tration,’’ after ‘‘Export-Import Bank,’’. 
(3) OFFICES.— 
(A) PRINCIPAL OFFICE.—The Administra-
tion shall— 
(i) maintain the principal office of the 
Administration in the District of Columbia; 
and 
(ii) for purposes of venue in civil ac-
tions, be considered to be a resident of the 
District of Columbia. 
(B) OTHER OFFICES.—The Administration 
may establish other offices in such other places 
as the Administration considers necessary or 
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appropriate for the conduct of the business of 
the Administration. 
(b) ADMINISTRATOR.— 
(1) IN
GENERAL.—The Administrator shall 
be— 
(A) appointed by the President, with the 
advice and consent of the Senate, for a 5-year 
term; and 
(B) compensated at the annual rate of 
basic pay prescribed for level II of the Execu-
tive Schedule under section 5313 of title 5, 
United States Code. 
(2) DUTIES.—The Administrator shall— 
(A) serve as— 
(i) the Chief Executive Officer of the 
Administration; and 
(ii) the Chairman of the Board of Di-
rectors; 
(B) consult with the Secretary of Agri-
culture, the Secretary of the Interior, the Ad-
ministrator of the Environmental Protection 
Agency, and the heads of other agencies as ap-
propriate, in carrying out the duties described 
in this paragraph; 
(C) ensure that— 
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(i) the Administration operates in a 
safe and sound manner, including mainte-
nance of adequate capital and internal con-
trols (consistent with section 404 of the 
Sarbanes-Oxley Act of 2002 (15 U.S.C. 
7262)); 
(ii) the operations and activities of the 
Administration foster liquid, efficient, com-
petitive, and resilient energy and energy ef-
ficiency finance markets; 
(iii) the Administration carries out 
this subtitle only through activities that 
are authorized under and consistent with 
this subtitle; and 
(iv) the activities of the Administra-
tion and the manner in which the Adminis-
tration is operated are consistent with the 
public interest; 
(D) develop policies and procedures for the 
Administration that will— 
(i) promote a self-sustaining portfolio 
of investments that will maximize the value 
of investments to effectively promote clean 
energy technologies; 
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(ii) promote transparency and open-
ness in Administration operations; 
(iii) afford the Administration with 
sufficient flexibility to carry out this sub-
title; 
(iv) provide for the efficient proc-
essing of applications; 
(v) promote the participation of pri-
vate and public financial institutions and 
other sources of private capital in invest-
ments, on commercially reasonable terms, 
if and to the extent the capital is available; 
and 
(vi) promote the availability of finan-
cial products to small business by working 
with entities, including green banks, that 
have appropriate expertise in extending 
credit or other relevant financial services 
to small businesses that are developing 
clean energy technologies; 
(E) ensure, to the maximum extent prac-
ticable and to the extent of available resources, 
that on the request of any energy transition 
community or Indian Tribe, such energy transi-
tion community or Indian Tribe shall have 
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available scientific and technical information 
and expertise for use in the regulation, develop-
ment, and management of clean energy tech-
nologies, either— 
(i) directly, acting through Federal of-
ficials within the Administration; or 
(ii) indirectly, by providing financial 
assistance to an energy transition commu-
nity or an Indian Tribe to secure inde-
pendent assistance in the regulation, devel-
opment, and management of clean energy 
technologies; and 
(F) with the concurrence of the Board of 
Directors, establish expected loss reserves for 
the support provided by the Administration con-
sistent with section 104(a). 
(c) BOARD OF DIRECTORS.— 
(1) IN GENERAL.—The Board of Directors of 
the Administration shall consist of— 
(A) the Secretary or the designee of the 
Secretary, who shall serve as an ex officio vot-
ing member of the Board of Directors; 
(B) the Administrator, who shall serve as 
the Chairman of the Board of Directors; and 
(C) 7 additional members who shall— 
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(i) be appointed by the President, 
with the advice and consent of the Senate, 
for staggered 5-year terms; and 
(ii) have experience in banking or fi-
nancial services relevant to the operations 
of the Administration, including individuals 
with substantial experience in the develop-
ment of energy projects, the electricity 
generation sector, the transportation sec-
tor, the manufacturing sector, the energy 
efficiency sector, or helping low-income, 
minority, and distressed neighborhoods 
(within the meaning of section 910 of the 
Housing and Community Development Act 
of 1992 (12 U.S.C. 2901 note; Public Law 
102–550)) develop and benefit from clean 
energy technologies. 
(2) DUTIES.—The Board of Directors shall— 
(A) oversee the operations of the Adminis-
tration and ensure industry best practices are 
followed in all financial transactions involving 
the Administration; 
(B) consult with the Administrator on the 
general policies and procedures of the Adminis-
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tration to ensure that the interests of the tax-
payers are protected; 
(C) ensure that the portfolio of invest-
ments of the Administration are consistent with 
this subtitle and with the long-term financial 
stability of the Administration; 
(D) ensure that the operations and activi-
ties of the Administration are consistent with 
the development of a robust private sector that 
can provide commercial loans or financing prod-
ucts for clean energy technologies; and 
(E) not serve on a full-time basis, except 
that the Board of Directors shall meet at least 
quarterly to review, as appropriate, applications 
for credit support and set policies and proce-
dures as necessary. 
(3) REMOVAL.—An appointed member of the 
Board of Directors may be removed from office by 
the President for good cause. 
(4) VACANCIES.—An appointed seat on the 
Board of Directors that becomes vacant shall be 
filled by appointment by the President, but only for 
the unexpired portion of the term of the vacating 
member. 
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(5) COMPENSATION
OF
MEMBERS.—An ap-
pointed member of the Board of Directors shall be 
compensated at a rate equal to the daily equivalent 
of the annual rate of basic pay prescribed for level 
III of the Executive Schedule under section 5314 of 
title 5, United States Code, for each day (including 
travel time) during which the member is engaged in 
the performance of the duties of the Board of Direc-
tors. 
(d) ENERGY TECHNOLOGY ADVISORY COUNCIL.— 
(1) IN
GENERAL.—The Administration shall 
have an Energy Technology Advisory Council con-
sisting of— 
(A) 6 members selected by the Secretary; 
and 
(B) 3 members selected by the Board of 
Directors of the Administration. 
(2) QUALIFICATIONS.—The members of the Ad-
visory Council shall— 
(A) have relevant scientific expertise; and 
(B) in the case of the members selected by 
the Secretary under paragraph (1)(A), include 
representatives of— 
(i) the academic community; 
(ii) the private research community; 
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(iii) National Laboratories; 
(iv) the technology or project develop-
ment community; 
(v) the commercial energy financing 
and operations sector; and 
(vi) the electric generation sector, in-
cluding at least one person who is knowl-
edgeable of the electric cooperative sector. 
(3) DUTIES.— 
(A) ADVICE.—The Advisory Council shall 
provide advice to the Administration regarding 
the technological approaches that should be 
supported by the Administration to meet the 
goals developed by the Secretary under section 
102. 
(B) METHODOLOGY
FOR
ASSESSMENT.— 
The Advisory Council shall develop and publish 
for comment in the Federal Register a method-
ology for the assessment of clean energy tech-
nologies. Such methodology shall— 
(i) allow the Administration to evalu-
ate projects based on the progress likely to 
be achieved per-dollar invested in clean en-
ergy technology; and 
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(ii) take into account the extent to 
which support for a clean energy tech-
nology is likely to accrue benefits that are 
attributable to commercial-scale deploy-
ment taking place earlier than that which 
otherwise would have occurred without the 
support. 
(4) TERM.— 
(A) IN GENERAL.—Members of the Advi-
sory Council shall have 5-year staggered terms, 
as determined by the Secretary and the Admin-
istrator. 
(B) REAPPOINTMENT.—A member of the 
Advisory Council may be reappointed. 
(5) COMPENSATION.—A member of the Advi-
sory Council, who is not otherwise compensated as 
a Federal employee, shall be compensated at a rate 
equal to the daily equivalent of the annual rate of 
basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United 
States Code, for each day (including travel time) 
during which the member is engaged in the perform-
ance of the duties of the Advisory Council. 
(e) STAFF.— 
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(1) IN GENERAL.—The Administrator, in con-
sultation with the Board of Directors, may— 
(A) appoint and terminate such officers, 
attorneys, employees, and agents as are nec-
essary to carry out this subtitle; and 
(B) vest those personnel with such powers 
and duties as the Administrator determines to 
be necessary. 
(2) DIRECT HIRE AUTHORITY.— 
(A) IN
GENERAL.—Notwithstanding sec-
tion 3304 and sections 3309 through 3318 of 
title 5, United States Code, the Administrator 
may, on a determination that there is a severe 
shortage of candidates or a critical hiring need 
for particular positions, recruit and directly ap-
point highly qualified critical personnel with 
specialized knowledge important to the function 
of the Administration into the competitive serv-
ice. 
(B) EXCEPTION.—The authority granted 
under subparagraph (A) shall not apply to posi-
tions in the excepted service or the Senior Exec-
utive Service. 
(C) REQUIREMENTS.—In exercising the 
authority granted under subparagraph (A), the 
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Administrator shall ensure that any action 
taken by the Administrator— 
(i) is consistent with the merit prin-
ciples of section 2301 of title 5, United 
States Code; and 
(ii) complies with the public notice re-
quirements of section 3327 of title 5, 
United States Code. 
(D) TERMINATION OF EFFECTIVENESS.— 
The authority provided by this paragraph ter-
minates effective on the date that is 3 years 
after the date of enactment of this Act. 
(3) CRITICAL PAY AUTHORITY.— 
(A) IN
GENERAL.—Notwithstanding sec-
tion 5377 of title 5, United States Code, and 
without regard to the provisions of that title 
governing appointments in the competitive serv-
ice or the Senior Executive Service and chap-
ters 51 and 53 of that title (relating to classi-
fication and pay rates), the Administrator may 
establish, fix the compensation of, and appoint 
individuals to critical positions needed to carry 
out the functions of the Administration, if the 
Administrator certifies that— 
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(i) the positions require expertise of 
an extremely high level in a financial, tech-
nical, or scientific field; 
(ii) the Administration would not suc-
cessfully accomplish an important mission 
without such an individual; and 
(iii) exercise of the authority is nec-
essary to recruit an individual who is ex-
ceptionally well qualified for the position. 
(B) LIMITATIONS.—The authority granted 
under subparagraph (A) shall be subject to the 
following conditions: 
(i) The number of critical positions 
authorized by subparagraph (A) may not 
exceed 20 at any given time in the Admin-
istration. 
(ii) The term of an appointment 
under subparagraph (A) may not exceed 4 
years. 
(iii) An individual appointed under 
subparagraph (A) may not have been an 
Administration employee at any time dur-
ing the 2-year period preceding the date of 
appointment. 
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(iv) Total annual compensation for 
any individual appointed under subpara-
graph (A) may not exceed the highest total 
annual compensation payable at the rate 
determined under section 104 of title 3, 
United States Code. 
(v) An individual appointed under 
subparagraph (A) may not be considered 
to be an employee for purposes of sub-
chapter II of chapter 75 of title 5, United 
States Code. 
(C) NOTIFICATION.—Each year, the Ad-
ministrator shall submit to Congress a notifica-
tion that lists each individual appointed under 
this paragraph. 
SEC. 104. ADMINISTRATION FUNCTIONS. 
(a) DIRECT SUPPORT.— 
(1) IN
GENERAL.—The Administration may 
issue direct loans, letters of credit, loan guarantees, 
insurance products, or such other credit support (in-
cluding through participation as a co-lender or a 
lending member of a syndication) as the Adminis-
trator considers appropriate to deploy clean energy 
technologies if the Administrator has determined 
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that deployment of the technologies would benefit or 
be accelerated by the support. 
(2) ELIGIBILITY
CRITERIA.—In carrying out 
this subsection and awarding credit support to 
projects, the Administrator shall account for— 
(A) how the technology rates based on an 
evaluation methodology established by the Advi-
sory Council; 
(B) how the project fits with the goals de-
veloped by the Secretary under section 102; and 
(C) the potential for the applicant to suc-
cessfully complete the project. 
(3) RISK.— 
(A) TECHNOLOGY
RISK.—In this para-
graph, the term ‘‘technology risk’’— 
(i) means risk during construction or 
operation associated with the design, devel-
opment, or deployment of a clean energy 
technology from the perspective of com-
mercial lenders, that may be increased as 
a result of the absence of adequate histor-
ical construction, operating, or perform-
ance data from commercial applications of 
the technology; and 
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(ii) includes risk associated with the 
cost, schedule, performance, reliability, 
maintenance, and the perception of risk. 
(B) EXPECTED
LOAN
LOSS
RESERVE.— 
The Administrator shall establish an expected 
loan loss reserve to account for estimated losses 
attributable to activities under this section that 
is consistent with the purposes of— 
(i) 
developing 
breakthrough 
tech-
nologies to the point at which the associ-
ated technology risk is largely mitigated; 
(ii) achieving widespread deployment 
and advancing the commercial viability of 
clean energy technologies; and 
(iii) advancing the goals developed by 
the Secretary under section 102. 
(C) INITIAL
EXPECTED
LOAN
LOSS
RE-
SERVE.—Until such time as the Administrator 
determines sufficient data exist to establish an 
expected loan loss reserve that is appropriate, 
the Administrator shall consider establishing an 
initial rate of 10 percent for the portfolio of in-
vestments under this subtitle. 
(D) 
PORTFOLIO
INVESTMENT
AP-
PROACH.—The Administration shall— 
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(i) use a portfolio investment ap-
proach to mitigate risk and diversify in-
vestments across technologies; 
(ii) to the maximum extent practicable 
and consistent with long-term self-suffi-
ciency, weigh the portfolio of investments 
in projects to advance goals developed by 
the Secretary under section 102; and 
(iii) consistent with the expected loan 
loss reserve established under this para-
graph, provide the maximum practicable 
percentage of support to promote break-
through technologies. 
(E) LOSS RATE REVIEW.— 
(i) IN GENERAL.—The Board of Di-
rectors shall review on an annual basis the 
loss rates of the portfolio to determine the 
adequacy of the reserves. 
(ii) REPORT.—Not later than 90 days 
after the date of the initiation of each re-
view under clause (i), the Administrator 
shall submit to the Committee on Energy 
and Commerce of the House of Represent-
atives and the Committee on Energy and 
Natural Resources of the Senate a report 
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describing the results of the review and 
any recommended policy changes. 
(4) APPLICATION REVIEW.— 
(A) IN GENERAL.—To the maximum ex-
tent practicable and consistent with sound busi-
ness practices, the Administration shall seek to 
consolidate reviews of applications for credit 
support under this subtitle such that final deci-
sions on applications can be issued not later 
than 180 days after the date of submission of 
a completed application. 
(B) ENVIRONMENTAL
REVIEW.—In car-
rying out this subtitle, the Administration shall, 
to the maximum extent practicable— 
(i) avoid duplicating efforts that have 
already been undertaken by other agencies, 
including State agencies acting under Fed-
eral programs; and 
(ii) with the advice of the Council on 
Environmental Quality and any other ap-
plicable agencies, use the administrative 
records 
of 
similar 
reviews 
conducted 
throughout the executive branch to develop 
the most expeditious review process prac-
ticable. 
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(5) WAGE RATE REQUIREMENTS.—With respect 
to the labor standards specified in this section, the 
Secretary of Labor shall have the authority and 
functions set forth in Reorganization Plan Num-
bered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) 
and section 3145 of title 40, United States Code. 
(b) INDIRECT SUPPORT.— 
(1) IN GENERAL.—The Administration shall de-
velop financial products and arrangements to pro-
mote widespread deployment of, and private sector 
support of, clean energy technologies by facilitating 
aggregation of small projects and by providing indi-
rect credit support, including credit enhancement, to 
private and public entities, including green banks. 
(2) FINANCIAL
PRODUCTS.—The Administra-
tion— 
(A) in cooperation with Federal, State, 
local, and private sector entities, shall develop 
debt instruments that directly aggregate, or 
provide for the aggregation of, projects for the 
deployment of clean energy technology on a 
scale appropriate for residential or commercial 
applications; and 
(B) may insure, purchase, and make com-
mitments to purchase, any debt instrument as-
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sociated with the deployment of a clean energy 
technology (including instruments secured by 
liens or other collateral related to the funding 
of clean energy technology) for the purposes of 
enhancing the availability of private financing 
for deployment of clean energy technology. 
(3) DISPOSITION OF DEBT OR INTEREST.—The 
Administration may acquire, hold, and sell or other-
wise dispose of, pursuant to commitments or other-
wise, any debt associated with the deployment of 
clean energy technologies or interest in the debt. 
(4) PRICING.— 
(A) IN GENERAL.—The Administrator may 
establish requirements, and impose charges or 
fees, which may be regarded as elements of 
pricing, for different classes of sellers, servicers, 
or services. 
(B) CLASSIFICATION
OF
SELLERS
AND 
SERVICERS.—For the purpose of subparagraph 
(A), the Administrator may classify sellers and 
servicers as necessary to promote transparency 
and liquidity and to properly characterize the 
risk of default. 
(5) ELIGIBILITY.—The Administrator shall es-
tablish— 
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(A) eligibility criteria for loan originators, 
sellers, and servicers seeking support for port-
folios of financial obligations relating to clean 
energy technologies to ensure the capability of 
the loan originators, sellers, and servicers to 
perform the functions required to maintain the 
expected performance of the portfolios; and 
(B) such criteria, standards, guidelines, 
and mechanisms such that, to the maximum ex-
tent practicable, loan originators and sellers will 
be able to determine the eligibility of loans for 
resale at the time of initial lending. 
(6) SECONDARY MARKET SUPPORT.— 
(A) IN
GENERAL.—The Administration 
may lend on the security of, and make commit-
ments to lend on the security of, any debt that 
the Administration has issued or is authorized 
to purchase under this section. 
(B) 
AUTHORIZED
ACTIONS.—On 
such 
terms and conditions as the Administrator may 
prescribe, the Administration may, based on the 
debt and with the concurrence of the Board of 
Directors— 
(i) give security or guarantee; 
(ii) pay interest or other return; and 
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(iii) issue notes, debentures, bonds, or 
other obligations or securities. 
(7) LENDING ACTIVITIES.— 
(A) IN
GENERAL.—The Administrator 
shall determine— 
(i) the volume of the lending activities 
of the Administration; and 
(ii) the types of loan ratios, risk pro-
files, 
interest 
rates, 
maturities, 
and 
charges or fees in the secondary market 
operations of the Administration. 
(B) OBJECTIVES.—Determinations under 
subparagraph (A) shall be consistent with the 
objectives of— 
(i) providing an attractive investment 
environment for clean energy technologies; 
(ii) making the operations of the Ad-
ministration self-supporting over the long 
term; and 
(iii) advancing the goals developed by 
the Secretary under section 102. 
SEC. 105. IMPROVEMENTS TO EXISTING CLEAN ENERGY IN-
VESTMENT PROGRAMS. 
(a) CLEAN ENERGY INVESTMENT FUND.— 
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(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a revolving fund, 
to be known as the Clean Energy Investment Fund, 
consisting of— 
(A) such amounts as are deposited in the 
Fund under this subtitle and amendments made 
by this subtitle; and 
(B) such sums as may be appropriated to 
the Fund. 
(2) EXPENDITURES FROM FUND.— 
(A) IN GENERAL.—Amounts in the Fund 
shall be available to the Secretary for obligation 
without fiscal year limitation, to remain avail-
able until expended. 
(B) ADMINISTRATIVE EXPENSES.— 
(i) FEES.—Fees collected by the Sec-
retary of the Treasury for expenses related 
to the administrative needs of the Fund 
shall be available without limitation to 
cover applicable expenses. 
(ii) FUND.—To the extent that ad-
ministrative expenses are not reimbursed 
through fees, an amount not to exceed 1.5 
percent of the amounts in the Fund as of 
the beginning of each fiscal year shall be 
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available to pay the administrative ex-
penses for the fiscal year necessary to 
carry out title XVII of the Energy Policy 
Act of 2005 (42 U.S.C. 16511 et seq.). 
(3) TRANSFERS OF AMOUNTS.— 
(A) IN GENERAL.—The amounts required 
to be transferred to the Fund under this sub-
section shall be transferred at least monthly 
from the general fund of the Treasury to the 
Fund on the basis of estimates made by the 
Secretary of the Treasury. 
(B) CASH FLOWS.—Cash flows associated 
with costs of the Fund described in section 
502(5)(B) of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a(5)(B)) shall be trans-
ferred to appropriate credit accounts. 
(C) ADJUSTMENTS.—Proper adjustment 
shall be made in amounts subsequently trans-
ferred to the extent prior estimates were in ex-
cess of or less than the amounts required to be 
transferred. 
(b) REVISIONS TO LOAN GUARANTEE PROGRAM AU-
THORITY.— 
(1) 
DEFINITION
OF
COMMERCIAL
TECH-
NOLOGY.—Section 1701(1) of the Energy Policy Act 
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of 2005 (42 U.S.C. 16511(1)) is amended by strik-
ing subparagraph (B) and inserting the following: 
‘‘(B) EXCLUSION.—The term ‘commercial 
technology’ does not include a technology solely 
by the use of the technology in— 
‘‘(i) a demonstration project funded 
by the Department; or 
‘‘(ii) a project for which the Secretary 
approved a guarantee.’’. 
(2) SUBROGATION.—Section 1702(g)(2) of the 
Energy Policy Act of 2005 (42 U.S.C. 16512(g)(2)) 
is amended by striking subparagraphs (B) and (C) 
and inserting the following: 
‘‘(B) SUPERIORITY OF RIGHTS.—Except as 
provided in subparagraph (C), the rights of the 
Secretary, with respect to any property ac-
quired pursuant to a guarantee or related 
agreements, shall be superior to the rights of 
any other person with respect to the property. 
‘‘(C) TERMS AND CONDITIONS.—A guar-
antee agreement shall include such detailed 
terms and conditions as the Secretary deter-
mines appropriate to— 
‘‘(i) protect the interests of the United 
States in the case of default; 
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‘‘(ii) have available all the patents and 
technology necessary for any person se-
lected, including the Secretary, to complete 
and operate the project; 
‘‘(iii) provide for sharing the proceeds 
received from the sale of project assets 
with other creditors or control the disposi-
tion of project assets if necessary to pro-
tect the interests of the United States in 
the case of default; and 
‘‘(iv) provide such lien priority in 
project assets as necessary to protect the 
interests of the United States in the case 
of a default.’’. 
SEC. 106. FEDERAL CREDIT AUTHORITY. 
(a) TRANSFER OF FUNCTIONS AND AUTHORITY.— 
(1) IN GENERAL.— 
(A) DEADLINE.—Subject to paragraph (2), 
on a finding by the Secretary and the Adminis-
trator that the Administration is sufficiently 
ready to assume the functions, and that appli-
cants to those programs will not be unduly ad-
versely affected, but in no case later than 18 
months after the date of enactment of this Act, 
the functions and authority of the Secretary de-
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scribed in subparagraph (B) shall be trans-
ferred to the Administration. 
(B) FUNCTIONS
AND
AUTHORITY.—The 
functions and authority of the Secretary de-
scribed in this subparagraph are functions and 
authority under— 
(i) title XVII of the Energy Policy Act 
of 2005 (42 U.S.C. 16511 et seq.); 
(ii) section 2602(c) of the Energy Pol-
icy Act of 1992 (25 U.S.C. 3502(c)); and 
(iii) financial services and program 
management for grant, loan, and other 
credit enhancement programs authorized 
to be administered by the Secretary under 
any other provision of law, as the Sec-
retary determines appropriate. 
(2) FAILURE TO TRANSFER FUNCTIONS.—If the 
functions and authorities are not transferred to the 
Administration in accordance with paragraph (1), 
the Secretary and the Administrator shall submit to 
Congress a report on the reasons for delay and an 
expected timetable for transfer of the functions and 
authorities to the Administration not later than 2 
years after the enactment of this title and every year 
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thereafter until the functions and authorities are 
transferred to the Administration. 
(3) EFFECT ON EXISTING RIGHTS AND OBLIGA-
TIONS.—The transfer of functions and authority 
under this subsection shall not affect the rights and 
obligations of any party that arise under a prede-
cessor program or authority prior to the transfer 
under this subsection. 
(4) TRANSFER OF FUND AUTHORITY.— 
(A) IN
GENERAL.—On transfer of func-
tions pursuant to paragraph (1), the Adminis-
tration shall have all authorities to make use of 
the Fund reserved for the Secretary before the 
transfer. 
(B) ADMINISTRATIVE
EXPENSES.—Effec-
tive beginning on the date of enactment of this 
Act, the Administrator may make use of up to 
1.5 percent of the amounts in the Fund as of 
the beginning of each fiscal year to pay admin-
istrative expenses for that fiscal year to carry 
out this subtitle. 
(5) USE.— 
(A) IN GENERAL.—Amounts in the Fund 
shall be available for discharge of liabilities and 
all other expenses of the Administration, includ-
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ing subsequent transfer to the respective credit 
accounts. 
(B) LIABILITY.—All activities of the Ad-
ministration that could result in a liability for 
the United States shall be transparently ac-
counted for and no obligation or liability may 
be incurred unless— 
(i) the appropriate amounts are trans-
ferred to credit accounts for activities pur-
suant to the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a); or 
(ii) sufficient amounts are reserved 
within the Fund to account for such liabil-
ities. 
(6) INITIAL INVESTMENT.— 
(A) IN
GENERAL.—On transfer of func-
tions pursuant to paragraph (1), out of any 
funds in the Treasury not otherwise appro-
priated, the Secretary of the Treasury shall 
transfer to the Fund to carry out this subtitle 
$10,000,000,000, to remain available until ex-
pended. 
(B) RECEIPT
AND
ACCEPTANCE.—The 
Fund shall be entitled to receive and shall ac-
cept, and shall be used to carry out this sub-
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title, the funds transferred to the Fund under 
subparagraph (A), without further appropria-
tion. 
(7) AUTHORIZATION OF APPROPRIATIONS.—In 
addition to funds made available by paragraphs (1) 
through (6), there are authorized to be appropriated 
to the Fund such sums as are necessary to carry out 
this subtitle. 
(b) PAYMENTS OF LIABILITIES.—Any payment to 
discharge liabilities arising from agreements under this 
subtitle shall be made exclusively out of the Fund or the 
associated credit account, as appropriate. 
(c) FEES.— 
(1) IN GENERAL.—Consistent with carrying out 
this subtitle, the Administrator shall charge fees or 
collect compensation generally in accordance with 
commercial rates. 
(2) AVAILABILITY OF FEES.—All fees collected 
by the Administration may be retained by the Ad-
ministration and placed in the Fund and may re-
main available to the Administration, without fur-
ther appropriation or fiscal year limitation, for use 
in carrying out this subtitle. 
(3) BREAKTHROUGH TECHNOLOGIES.—The Ad-
ministration shall charge the minimum amount in 
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fees or compensation practicable for breakthrough 
technologies, consistent with the long-term viability 
of the Administration, unless the Administration 
first determines that a higher charge will not impede 
the development of the technology. 
(4) ALTERNATIVE FEE ARRANGEMENTS.—The 
Administration may use such alternative arrange-
ments (such as profit participation, contingent fees, 
and other valuable contingent interests) as the Ad-
ministration considers appropriate to compensate the 
Administration for the expenses of the Administra-
tion and the risk inherent in the support of the Ad-
ministration. 
(d) COST TRANSFER AUTHORITY.—Amounts col-
lected by the Administration for the cost of a loan or loan 
guarantee shall be transferred by the Administration to 
the respective credit program accounts. 
(e) SUPPLEMENTAL BORROWING AUTHORITY.—In 
order to maintain sufficient liquidity for activities author-
ized under section 104(b), the Administration may issue 
notes, debentures, bonds, or other obligations for purchase 
by the Secretary of the Treasury. 
(f) PUBLIC DEBT TRANSACTIONS.—For the purpose 
of subsection (e)— 
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(1) the Secretary of the Treasury may use as 
a public debt transaction the proceeds of the sale of 
any securities issued under chapter 31 of title 31, 
United States Code; and 
(2) the purposes for which securities may be 
issued under that chapter are extended to include 
any purchase under this subsection. 
(g) MAXIMUM OUTSTANDING HOLDING.—The Sec-
retary of the Treasury shall purchase instruments issued 
under subsection (e) to the extent that the purchase would 
not increase the aggregate principal amount of the out-
standing holdings of obligations under subsection (e) by 
the Secretary of the Treasury to an amount that is greater 
than $2,000,000,000. 
(h) RATE OF RETURN.—Each purchase of obligations 
by the Secretary of the Treasury under this section shall 
be on terms and conditions established to yield a rate of 
return determined by the Secretary of the Treasury to be 
appropriate, taking into account the current average rate 
on outstanding marketable obligations of the United 
States as of the last day of the month preceding the pur-
chase. 
(i) SALE OF OBLIGATIONS.—The Secretary of the 
Treasury may at any time sell, on terms and conditions 
and at prices determined by the Secretary of the Treasury, 
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(2) STATE LAW.—The Administrator may con-
duct the business of the Administration without re-
gard to any qualification or law of any State relating 
to incorporation. 
(b) USE OF OTHER AGENCIES.—With the consent of 
a department, establishment, or instrumentality (including 
any field office), the Administration may— 
(1) use and act through any department, estab-
lishment, or instrumentality; or 
(2) use, and pay compensation for, information, 
services, facilities, and personnel of the department, 
establishment, or instrumentality. 
(c) PROCUREMENT.—The Administrator shall be the 
senior procurement officer for the Administration for pur-
poses of section 1702 of title 41, United States Code. 
(d) FINANCIAL MATTERS.— 
(1) INVESTMENTS.—Funds of the Administra-
tion may be invested in such investments as the 
Board of Directors may prescribe. 
(2) FISCAL
AGENTS.—Any Federal reserve 
bank or any bank for which, at the time of designa-
tion by the Administrator there is outstanding a des-
ignation by the Secretary of the Treasury as a gen-
eral or other depository of public money, may be 
designated by the Administrator as a depositary or 
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custodian or as a fiscal or other agent of the Admin-
istration. 
(e) JURISDICTION.—Notwithstanding section 1349 of 
title 28, United States Code, or any other provision of 
law— 
(1) the Administration shall be considered a 
corporation covered by sections 1345 and 1442 of 
title 28, United States Code; 
(2) all civil actions to which the Administration 
is a party shall be considered to arise under the laws 
of the United States, and the district courts of the 
United States shall have original jurisdiction of all 
such actions, without regard to amount or value, ex-
cept that the courts of appeals shall have jurisdic-
tion 
over 
civil 
actions 
pertaining 
to 
section 
103(a)(3); and 
(3) any civil or other action, case or controversy 
in a court of a State, or in any court other than a 
district court of the United States, to which the Ad-
ministration is a party may at any time before trial 
be removed by the Administration, without the giv-
ing of any bond or security and by following any 
procedure for removal of causes in effect at the time 
of the removal— 
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(A) to the district court of the United 
States for the district and division embracing 
the place in which the same is pending; or 
(B) if there is no such district court, to the 
district court of the United States for the dis-
trict in which the principal office of the Admin-
istration is located. 
(f) PERIODIC REPORTS.—Not later than 1 year after 
commencement of operation of the Administration and at 
least biannually thereafter, the Administrator shall submit 
to the Committee on Energy and Commerce of the House 
of Representatives and the Committee on Energy and 
Natural Resources of the Senate a report that includes 
a description of— 
(1) the technologies supported by activities of 
the Administration; and 
(2) the performance of the Administration on 
meeting the goals developed by the Secretary under 
section 102. 
(g) AUDITS BY THE COMPTROLLER GENERAL.— 
(1) IN GENERAL.—The programs, activities, re-
ceipts, expenditures, and financial transactions of 
the Administration shall be subject to audit by the 
Comptroller General of the United States under 
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such rules and regulations as may be prescribed by 
the Comptroller General. 
(2) ACCESS.—The representatives of the Gov-
ernment Accountability Office shall— 
(A) have access to the personnel and to all 
books, accounts, documents, records (including 
electronic records), reports, files, and all other 
papers, automated data, things, or property be-
longing to, under the control of, or in use by 
the Administration, or any agent, representa-
tive, attorney, advisor, or consultant retained by 
the Administration, and necessary to facilitate 
the audit; 
(B) be afforded full facilities for verifying 
transactions with the balances or securities held 
by depositories, fiscal agents, and custodians; 
(C) be authorized to obtain and duplicate 
any such books, accounts, documents, records, 
working papers, automated data and files, or 
other information relevant to the audit without 
cost to the Comptroller General; and 
(D) have the right of access of the Comp-
troller General to such information under sec-
tion 716(c) of title 31, United States Code. 
(3) ASSISTANCE AND COST.— 
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(A) IN GENERAL.—For the purpose of con-
ducting an audit under this subsection, the 
Comptroller General may, in the discretion of 
the Comptroller General, employ by contract, 
without regard to section 6101 of title 41, 
United States Code, professional services of 
firms and organizations of certified public ac-
countants for temporary periods or for special 
purposes. 
(B) REIMBURSEMENT.— 
(i) IN GENERAL.—On the request of 
the Comptroller General, the Administra-
tion shall reimburse the General Account-
ability Office for the full cost of any audit 
conducted by the Comptroller General 
under this subsection. 
(ii) 
CREDITING.—Such 
reimburse-
ments shall— 
(I) be credited to the appropria-
tion account entitled ‘‘Salaries and 
Expenses, Government Accountability 
Office’’ at the time at which the pay-
ment is received; and 
(II) remain available until ex-
pended. 
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(h) ANNUAL INDEPENDENT AUDITS.— 
(1) IN GENERAL.—The Administrator shall— 
(A) have an annual independent audit 
made of the financial statements of the Admin-
istration by an independent public accountant 
in accordance with generally accepted auditing 
standards; and 
(B) submit to the Secretary the results of 
the audit. 
(2) CONTENT.—In conducting an audit under 
this subsection, the independent public accountant 
shall determine and report on whether the financial 
statements of the Administration— 
(A) are presented fairly in accordance with 
generally accepted accounting principles; and 
(B) comply with any disclosure require-
ments imposed under this subtitle. 
(i) FINANCIAL REPORTS.— 
(1) IN
GENERAL.—The Administrator shall 
submit to the Secretary annual and quarterly re-
ports of the financial condition and operations of the 
Administration, which shall be in such form, contain 
such information, and be submitted on such dates as 
the Secretary shall require. 
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(2) CONTENTS
OF
ANNUAL
REPORTS.—Each 
annual report shall include— 
(A) financial statements prepared in ac-
cordance with generally accepted accounting 
principles; 
(B) any supplemental information or alter-
native presentation that the Secretary may re-
quire; and 
(C) an assessment (as of the end of the 
most recent fiscal year of the Administration), 
signed by the chief executive officer and chief 
accounting or financial officer of the Adminis-
tration, of— 
(i) the effectiveness of the internal 
control structure and procedures of the 
Administration; and 
(ii) the compliance of the Administra-
tion with applicable safety and soundness 
laws. 
(3) SPECIAL REPORTS.—The Secretary may re-
quire the Administrator to submit other reports on 
the condition (including financial condition), man-
agement, activities, or operations of the Administra-
tion, as the Secretary considers appropriate. 
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(4) ACCURACY.—Each report of financial condi-
tion shall contain a declaration by the Administrator 
or any other officer designated by the Board of Di-
rectors of the Administration to make the declara-
tion, that the report is true and correct to the best 
of the knowledge and belief of the officer. 
(5) AVAILABILITY
OF
REPORTS.—Reports re-
quired under this section shall be published and 
made publicly available as soon as is practicable 
after receipt by the Secretary. 
(j) SCOPE AND TERMINATION OF AUTHORITY.— 
(1) NEW
OBLIGATIONS.—The Administrator 
shall not initiate any new obligations under this sub-
title on or after January 1, 2039. 
(2) REVERSION TO SECRETARY.—The authori-
ties and obligations of the Administration shall re-
vert to the Secretary on January 1, 2039. 
Subtitle B—Carbon-Free 
Technology Innovation 
SEC. 111. DEMAND EFFICIENCY TECHNOLOGY INNOVATION. 
(a) REPORT TO CONGRESS.—Not later than 1 year 
after the date of enactment of this section, the Secretary 
of Energy shall submit to the Committee on Energy and 
Commerce of the House of Representatives and the Com-
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mittee on Energy and Natural Resources of the Senate 
a report describing— 
(1) recommendations for improving the mod-
eling, operational, and planning practices used for 
the bulk electric system in order to better account 
for the integration of demand efficiency technologies 
and ensuring increased resiliency, mitigating peak 
system demand, and avoiding or deferring trans-
mission investments; and 
(2) an assessment of existing regional and 
interregional transmission planning and siting proc-
esses and whether such processes are adequate with 
respect to the deployment of demand efficiency tech-
nologies. 
(b) CONSULTATION.—The report under subsection 
(a) may be produced in consultation and coordination with 
the National Academy of Sciences. 
(c) DEFINITION.—In this section, the term ‘‘demand 
efficiency technologies’’ includes— 
(1) advanced metering infrastructure that 
records electricity use at defined intervals, ranging 
from hourly to real-time and provides data to elec-
tric utilities and customers, and which may include 
2-way communications and instantaneous data 
transmission; 
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(2) behind-the-meter smart devices with aggre-
gation and control capabilities, which may include 
thermostats, heat pumps, lighting controls, electric 
vehicle chargers, and other appliances that can be 
equipped with communications and control capabili-
ties; 
(3) power flow control and voltage management 
equipment and methods that allow grid operators to 
adjust remotely and in real time the amount of elec-
tricity flowing and manage the voltage on trans-
mission lines; 
(4) dynamic line rating technologies and meth-
ods that can be used to determine the maximum 
power flow capacity and real-time constraints and 
conditions on a transmission line; and 
(5) dynamic transformer rating technologies 
and methods that allow electric companies and grid 
operators to understand the real-time operating con-
ditions of transformers. 
SEC. 112. SUPER HOT ROCK GEOTHERMAL ENERGY TECH-
NOLOGY INNOVATION. 
(a) DEMONSTRATION PROJECTS.—Not later than 1 
year after the date of enactment of this section, the Sec-
retary of Energy shall enter into agreements to carry out 
1 or more demonstration projects of super hot rock engi-
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neered geothermal energy systems under which water is 
injected into the earth at a depth at which temperatures 
exceed 400 degrees Celsius and water reaches a supercrit-
ical state. 
(b) REPORT TO CONGRESS.—Not later than 3 years 
after the date of enactment of this section, the Secretary 
of Energy shall submit a report to Congress describing— 
(1) the demonstration projects described under 
subsection (a); 
(2) the result of said demonstration projects; 
(3) an assessment of the potential for utiliza-
tion of super hot rock geothermal energy; and 
(4) a recommendation of next steps to explore 
the potential for the utilization of super hot rock 
geothermal energy. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $70,000,000 per fiscal year 
for each of the 5 fiscal years beginning after the date of 
enactment of this section. 
SEC. 113. ZERO CARBON FUEL TECHNOLOGY INNOVATION. 
(a) CONSORTIA.—The Secretary of Energy shall es-
tablish 1 or more consortia to conduct research and devel-
opment in order to facilitate the large-scale commercial 
manufacture of efficient, low-cost, durable devices that use 
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electricity to split water into hydrogen and oxygen. Activi-
ties conducted under this section shall focus on materials 
and component integration and manufacturing, and may 
include— 
(1) cell modeling and characterization; 
(2) scale-up and integration studies; and 
(3) membrane studies. 
(b) REPORT TO CONGRESS.—Not later than 1 year 
after the date of enactment of this section, the Secretary 
of Energy shall provide a report to the Committee on En-
ergy and Commerce of the House of Representatives and 
the Committee on Energy and Natural Resources of the 
Senate that shall include— 
(1) an inventory of existing pipeline assets in 
the United States, including a description of the ma-
terials used in and the quality of the pipeline net-
works; 
(2) an assessment of the capacity of pipeline 
networks to transport hydrogen and hydrogen car-
riers; 
(3) an assessment of the probability that em-
brittlement could occur within pipelines of the type 
and quality identified under paragraph (1) and an 
identification of the methodologies used in order to 
conduct such assessments; 
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(4) an assessment of the cost of pipeline inlay 
with a range of materials to allow for the transpor-
tation of hydrogen and hydrogen carriers; 
(5) an identification of potential high-risk areas 
within existing infrastructure that deserve special at-
tention with respect to safety and reliability; and 
(6) a safety protocol for assessing pipeline ma-
terials and system pressures in existing natural gas 
pipeline systems to determine their ability to safely 
distribute blends of natural gas and hydrogen and 
the potential for pipeline embrittlement, and such a 
protocol may include guidelines for conducting rou-
tine pipeline maintenance and inspection. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $10,000,000 per fiscal year 
for each of the 5 fiscal years beginning after the date of 
enactment of this section. 
SEC. 114. ADVANCED NUCLEAR REACTOR INNOVATION. 
(a) NATIONAL REACTOR INNOVATION CENTER.— 
(1) Section 958(a) of the Energy Policy Act of 
2005 (42 U.S.C. 16278(a)) is amended by striking 
‘‘to be proposed and funded, in whole or in part, by 
the private sector’’. 
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(2) Section 958 of the Energy Policy Act of 
2005 (42 U.S.C. 16278) is amended by adding at 
the end the following: 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $40,000,000 for each of fiscal years 2023 
through 2027.’’. 
(b) ADVANCED REACTOR DEMONSTRATION PRO-
GRAM.— 
(1) Section 959A(c) of the Energy Policy Act of 
2005 (42 U.S.C. 16279a(c)) is amended— 
(A) in paragraph (9)(C), by striking ‘‘and’’ 
at the end; 
(B) in paragraph (10)(F), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding the following: 
‘‘(11) carry out not less than four demonstra-
tion projects of any given reactor configuration in-
volving new or significantly improved equipment, 
process, or production method.’’. 
(2) Section 959A of the Energy Policy Act of 
2005 (42 U.S.C. 16279a) is amended by striking 
subsection (f) and inserting the following: 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
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out the program under this subsection, $1,500,000,000 
for each of fiscal years 2023 through 2027.’’. 
SEC. 115. NATIONAL OFFSHORE WIND ENERGY GOAL. 
It shall be a goal of the United States to deploy— 
(1) 12.5 gigawatts of offshore wind energy by 
January 1, 2025; and 
(2) 30 gigawatts of offshore wind energy by 
January 1, 2030. 
TITLE II—ZERO-EMISSION 
ELECTRICITY STANDARD 
SEC. 200. PURPOSE. 
The purpose of this title is to achieve 100 percent 
net zero-emission electricity between 2035 and 2050, de-
pending on the availability of technology. 
Subtitle A—Zero-Emission 
Electricity Standard 
SEC. 201. DEFINITIONS. 
In this subtitle: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) AFFILIATE.—The term ‘‘affiliate’’ has the 
meaning given such term in section 1262 of the En-
ergy Policy Act of 2005 (42 U.S.C. 16451). 
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(3) ASSOCIATE COMPANY.—The term ‘‘associate 
company’’ has the meaning given such term in sec-
tion 1262 of the Energy Policy Act of 2005 (42 
U.S.C. 16451). 
(4) BEHIND-THE-METER
GENERATION
SYS-
TEM.—The term ‘‘behind-the-meter generation sys-
tem’’ means a system of generation of electric en-
ergy that operates on the electric consumer side of 
the applicable utility meter. 
(5) BENEFICIAL
ELECTRIFICATION-RELATED 
REDUCTION.—The term ‘‘beneficial electrification-re-
lated reduction’’ means the net reduction of the ag-
gregate greenhouse gas emissions attributable to a 
retail electricity supplier and an electric consumer as 
the result of the replacement of a nonelectric energy 
source used by the electric consumer with electric 
energy provided by the retail electricity supplier, in-
cluding for the purpose of transportation, space 
heating, water heating, or industrial processes. 
(6) CARBON DIOXIDE EQUIVALENT.—The term 
‘‘carbon dioxide equivalent’’ means the number of 
metric tons of carbon dioxide emissions with the 
same global warming potential over a 20-year period 
as 1 metric ton of another greenhouse gas, includ-
ing, in determining such global warming potential— 
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(A) the effects of climate-carbon feedbacks 
for both carbon dioxide and the other green-
house gas, as determined in accordance with 
the Fifth Assessment Report of the Intergov-
ernmental Panel on Climate Change; and 
(B) for methane, the effect of carbon diox-
ide resulting from methane oxidation in the at-
mosphere. 
(7) CARBON INTENSITY.—The term ‘‘carbon in-
tensity’’ means the carbon dioxide equivalent emis-
sions associated with the generation of 1 megawatt- 
hour of electric energy, as determined by the Admin-
istrator under section 204. 
(8) ELECTRIC CONSUMER.—The term ‘‘electric 
consumer’’ has the meaning given such term in sec-
tion 3 of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2602). 
(9) FEDERAL POWER MARKETING ADMINISTRA-
TION.—The term ‘‘Federal Power Marketing Admin-
istration’’ means the Bonneville Power Administra-
tion, the Southeastern Power Administration, the 
Southwestern Power Administration, or the Western 
Area Power Administration. 
(10) GENERATING
UNIT.—The term ‘‘gener-
ating unit’’ means a unit or system of units that— 
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(A) generates electric energy that is con-
sumed in the United States; 
(B) generates not fewer than 20 megawatt- 
hours of electric energy per calendar year; and 
(C)(i) delivers electric energy to the elec-
tric grid; or 
(ii) in the case of a behind-the-meter gen-
eration system— 
(I) delivers electric energy to the elec-
tric grid; or 
(II) generates electric energy that is 
consumed onsite for a useful purpose other 
than for generating electric energy. 
(11) 
GENERATOR.—The 
term 
‘‘generator’’ 
means the owner or operator of a generating unit. 
(12) GREENHOUSE
GAS.—The term ‘‘green-
house gas’’ includes each of the following: 
(A) Carbon dioxide. 
(B) Methane. 
(C) Nitrous oxide. 
(D) Sulfur hexafluoride. 
(E) Any hydrofluorocarbon. 
(F) Any perfluorocarbon. 
(G) Nitrogen trifluoride. 
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(H) Any fully fluorinated linear, branched, 
or cyclic— 
(i) alkane; 
(ii) ether; 
(iii) tertiary amine; or 
(iv) aminoether. 
(I) Any perfluoropolyether. 
(J) Any hydrofluoropolyether. 
(K) Any other fluorocarbon, except for a 
fluorocarbon with a vapor pressure of less than 
1 mm of Hg absolute at 25 degrees Celsius. 
(13) QUALIFIED COMBINED HEAT AND POWER 
SYSTEM.—The term ‘‘qualified combined heat and 
power system’’ means a system that— 
(A) uses the same energy source for the si-
multaneous or sequential generation of electric 
energy and thermal energy; 
(B) produces at least— 
(i) 20 percent of the useful energy of 
the system in the form of electric energy; 
and 
(ii) 20 percent of the useful energy of 
the system in the form of useful thermal 
energy; 
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(C) to the extent that the system uses bio-
mass, uses only qualified renewable biomass; 
and 
(D) operates with an energy efficiency per-
centage, as determined in accordance with sec-
tion 48(c)(3)(C)(i) of the Internal Revenue 
Code of 1986, of greater than 60 percent on a 
year-round basis. 
(14) QUALIFIED ELECTRICITY GENERATION.— 
(A) IN
GENERAL.—The term ‘‘qualified 
electricity generation’’ means the number of 
megawatt-hours of electric energy that a gener-
ator generates using a generating unit and— 
(i) sells directly or indirectly for use 
by electric consumers for purposes other 
than resale; or 
(ii) that is consumed onsite for a use-
ful purpose other than for generating elec-
tric energy. 
(B) AFFILIATE SALES.—For purposes of 
calculating the quantity of electric energy sold 
by a retail electricity supplier under this para-
graph, the quantity of electric energy sold— 
(i) by an affiliate of the retail elec-
tricity supplier, or an associate company of 
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the retail electricity supplier, to an electric 
consumer (other than to a lessee or tenant 
of the affiliate or associate company) shall 
be treated as sold by the retail electricity 
supplier; and 
(ii) by such retail electricity supplier 
to an affiliate, lessee, or tenant of the re-
tail electricity supplier shall not be consid-
ered to be a sale to an electric consumer. 
(15) QUALIFIED LOW-CARBON FUEL.— 
(A) IN
GENERAL.—The term ‘‘qualified 
low-carbon fuel’’ means a fuel that— 
(i) is produced through any process 
that significantly limits or avoids green-
house gas emissions; and 
(ii) does not release greenhouse gas 
emissions during combustion. 
(B) INCLUSION.—The term ‘‘qualified low- 
carbon fuel’’ includes, subject to subparagraph 
(A)— 
(i) ammonia; and 
(ii) hydrogen. 
(16) QUALIFIED RENEWABLE BIOMASS.— 
(A) IN GENERAL.—The term ‘‘qualified re-
newable biomass’’ means— 
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(i) any crop byproduct, or crop res-
idue, harvested from actively managed, or 
fallow, agricultural nonforested land that 
was cleared before January 1, 2021, if the 
harvesting of the byproduct or residue does 
not lead to a net decline in soil organic 
matter for the applicable land; 
(ii) any cellulose, hemicellulose, or 
lignin that is derived from a woody or 
nonwoody plant that is planted for ‘‘closed- 
loop biomass’’, as defined in section 
45(c)(2) of the Internal Revenue Code of 
1986, on land that was, as of January 1, 
2021— 
(I) actively managed cropland or 
fallow and nonforested cropland, as 
defined by the Department of Agri-
culture; 
(II) a brownfield site (as defined 
in section 101(39) of the Comprehen-
sive Environmental Response, Com-
pensation, and Liability Act of 1980 
(42 U.S.C. 9601(39))); or 
(III) an abandoned mine site; 
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onstrated to otherwise be burned 
for energy onsite; 
(ee) plant material removed 
for the purposes of invasive or 
noxious plant species control; or 
(ff) downed wood from ex-
treme weather events; and 
(v) food waste. 
(B) LIMIT
OF
INCLUSION
OF
INVASIVE 
SPECIES.—Except as provided in subparagraph 
(A)(iv)(II)(ee), the term ‘‘qualified renewable 
biomass’’ does not include any matter that the 
Secretary of Agriculture, in consultation with 
other Federal or State departments and agen-
cies the Secretary determines appropriate, de-
termines is derived from— 
(i) a plant that is invasive or noxious; 
or 
(ii) a species or varieties of plants 
that are potentially invasive. 
(C) OVERSIGHT.—The Administrator shall 
consult with the Chiefs of the United States 
Forest Service, the Fish and Wildlife Service, 
and the Natural Resources Conservation Serv-
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ice in implementing subparagraphs (A) and 
(B). 
(D) EMISSIONS.—The term ‘‘qualified re-
newable biomass’’ does not include any biomass 
the processing or combustion of which results in 
emissions of— 
(i) an air pollutant for which air qual-
ity criteria has been issued under section 
108 of the Clean Air Act (42 U.S.C. 
7408); or 
(ii) a hazardous air pollutant (as de-
fined in section 112 of the Clean Air Act 
(42 U.S.C. 7412(b))). 
(17) 
QUALIFIED
WASTE-TO-ENERGY.—The 
term ‘‘qualified waste-to-energy’’ means electric en-
ergy generated— 
(A) from the combustion of— 
(i) post-recycled municipal solid waste, 
provided such combustion does not result 
in emissions of— 
(I) an air pollutant for which air 
quality criteria has been issued under 
section 108 of the Clean Air Act (42 
U.S.C. 7408); or 
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(II) a hazardous air pollutant (as 
defined in section 112 of the Clean 
Air Act (42 U.S.C. 7412)); 
(ii) gas produced from the gasification 
or pyrolization of post-recycled municipal 
solid waste; 
(iii) waste described in paragraph 
(16)(A)(iv)(II); 
(iv) other animal waste or animal by-
products; 
(v) food waste; 
(vi) a gas that is primarily composed 
of methane, and that has been generated 
entirely from the decomposition of organic 
matter, including sewage, food waste, ani-
mal waste, and agricultural waste; or 
(vii) if diverted from or separated 
from other waste out of a municipal waste 
stream— 
(I) paper products that are not 
commonly recyclable; 
(II) solid-wood yard waste, pal-
lets, or crates; or 
(III) manufacturing and con-
struction debris; and 
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(B) at a facility that the Administrator has 
certified, within the past 3 years, is in compli-
ance with all applicable Federal and State envi-
ronmental permits. 
(18) RETAIL
ELECTRICITY
SUPPLIER.—The 
term ‘‘retail electricity supplier’’, as determined for 
each calendar year, means an entity in the United 
States that sold not fewer than 20 megawatt-hours 
of electric energy to electric consumers for purposes 
other than resale during the preceding calendar 
year. 
(19) SALE.—The term ‘‘sale’’, when used with 
respect to electric energy, has the meaning given 
such term in section 3(13) of the Public Utility Reg-
ulatory Policies Act of 1978 (16 U.S.C. 2602(13)). 
(20) STATE.—Except as otherwise provided in 
this title, the term ‘‘State’’ means a State of the 
United States and any district, commonwealth, terri-
tory, or possession of the United States. 
(21) ZERO-EMISSION ELECTRICITY.—The term 
‘‘zero-emission electricity’’ means the amount, in 
megawatt-hours, of electric energy generated by a 
generating unit that is not associated with the re-
lease of greenhouse gases into the atmosphere, as 
calculated by multiplying— 
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(A) the qualified electricity generation of 
the generating unit; by 
(B) the number that equals— 
(i) 1.0; less 
(ii) the quotient obtained by divid-
ing— 
(I) the carbon intensity of the 
generating unit; by 
(II) 0.82. 
(22) ZERO-EMISSION
ELECTRICITY
CREDIT.— 
The term ‘‘zero-emission electricity credit’’ means a 
credit issued pursuant to section 204. 
SEC. 202. ZERO-EMISSION ELECTRICITY REQUIREMENT. 
(a) ZERO-EMISSION ELECTRICITY REQUIREMENT.— 
(1) CREDIT SUBMISSION REQUIREMENT.— 
(A) IN
GENERAL.—Except as otherwise 
provided in this section, effective beginning with 
calendar year 2023, for each calendar year, not 
later than June 1 of the following calendar 
year, each retail electricity supplier shall submit 
to the Administrator a quantity of zero-emis-
sion electricity credits that is equal to— 
(i) for each of calendar years 2023 
and 2024, the quantity of zero-emission 
electricity credits determined under para-
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graph (3) for the retail electricity supplier 
for such calendar year; and 
(ii) for calendar year 2025 and each 
calendar year thereafter, the average of the 
quantity of zero-emission electricity credits 
determined under paragraph (3) for the re-
tail electricity supplier for such calendar 
year and the two prior calendar years. 
(B) ACCOUNTING FOR UNDERCOMPLIANCE 
DUE TO ENERGY LOSS.—Notwithstanding sub-
paragraph (A)(ii), beginning in 2035, and for 
each calendar year thereafter, if the percentage 
of national undercompliance due to energy loss 
is greater than 1 for the calendar year, a retail 
electricity supplier that has a percentage of in-
dividual undercompliance due to energy loss 
that is greater than 1 for the calendar year 
shall submit to the Administrator a quantity of 
zero-emission electricity credits that is equal to 
the number obtained by dividing— 
(i) the quantity of zero-emission elec-
tricity credits described in subparagraph 
(A)(ii); by 
(ii) the number that equals 1 minus— 
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(I) the percentage of national 
undercompliance due to energy loss 
for the calendar year; divided by 
(II) 100. 
(2) VOLUNTARY ASSIGNMENT OF COMPLIANCE 
OBLIGATION
BY
PUBLIC
POWER
UTILITIES
AND 
ELECTRIC
COOPERATIVES.—Any retail electricity 
supplier that is an electric cooperative, a State, or 
any political subdivision of a State, may elect to 
enter into an agreement with a political subdivision 
of a State, an electric cooperative that has an obliga-
tion to serve such retail electricity supplier, or a gen-
erator, to assign any reporting or compliance obliga-
tion under this title to such other political subdivi-
sion of a State, electric cooperative, or generator. An 
assignment made under this paragraph shall be es-
tablished through a binding agreement executed 
among the relevant parties. 
(3) QUANTITY OF ZERO-EMISSION ELECTRICITY 
CREDITS.— 
(A) IN GENERAL.—For each calendar year, 
the Administrator shall determine a quantity of 
zero-emission electricity credits for a retail elec-
tricity supplier that is equal to the product ob-
tained by multiplying— 
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(i) the total quantity of electric en-
ergy, in megawatt-hours, consumed by 
electric consumers of the retail electricity 
supplier during the calendar year, that is 
provided by the retail electricity supplier or 
by a behind-the-meter generation system, 
as reported under subsection (b); by 
(ii) the minimum percentage of zero- 
emission electricity for the calendar year. 
(B) DEDUCTION FOR BENEFICIAL ELEC-
TRIFICATION.— 
(i) DEDUCTION.—To account for ben-
eficial electrification, in calculating the 
total quantity of electric energy consumed 
by electric consumers of a retail electricity 
supplier under subparagraph (A)(i), the 
Administrator shall deduct a quantity, in 
megawatt-hours, determined in accordance 
with clause (ii). 
(ii) DETERMINATION.—The Adminis-
trator shall make a determination of the 
quantity of electric energy, in megawatt- 
hours, associated with beneficial electrifica-
tion-related reductions for a retail elec-
tricity supplier for a calendar year. Such 
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determination shall be made on the basis 
of— 
(I) the carbon intensity of the 
electric energy sold by the retail elec-
tricity supplier that results in such 
beneficial electrification-related reduc-
tions; and 
(II) the greenhouse gas emissions 
of nonelectric energy sources that 
were replaced with electric energy pro-
vided by the retail electricity supplier 
which results in such beneficial elec-
trification-related reductions. 
(iii) PHASE-OUT OF DEDUCTION.—In 
determining the quantity of electric energy 
to deduct under clause (ii), the Adminis-
trator shall ensure that the deduction is re-
duced to zero at the same rate that the 
minimum percentage of zero-emission elec-
tricity increases to 100 percent. 
(C) SYSTEM
SUPPORT
RESOURCE.—For 
any calendar year in which a generating unit 
that is owned by a retail electricity supplier has 
been designated a System Support Resource by 
the Federal Energy Regulatory Commission 
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and is thereby required, by an Independent Sys-
tem Operator or Regional Transmission Organi-
zation, or under a State-regulated resource 
planning process, to remain in operation be-
cause retirement of the generating unit would 
harm the reliability of the electric energy trans-
mission system, in calculating the total quantity 
of electric energy consumed by electric con-
sumers of the retail electricity supplier under 
subparagraph (A)(i), the Administrator shall 
deduct the quantity of megawatt-hours of elec-
tricity generated by such generating unit during 
such calendar year. 
(4) AVERAGE CREDIT PRICES.—For each cal-
endar year, the Administrator shall— 
(A) analyze the market for zero-emission 
electricity credits in order to determine the av-
erage annual price of zero-emission electricity 
credits for the calendar year; 
(B) determine whether the average annual 
price of a zero-emission electricity credit deter-
mined under subparagraph (A) is less than the 
breakthrough credit price under paragraph (6) 
for the calendar year; and 
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(C) publish the determinations made under 
subparagraphs (A) and (B) by not later than 
January 31 of the year following the calendar 
year. 
(5) DEFINITIONS.—In this subsection: 
(A) ANNUAL PERCENTAGE INCREASE.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the term ‘‘annual percentage 
increase’’ means, with respect to a retail 
electricity supplier, the product obtained by 
multiplying— 
(I) the difference between 100 
percent and the baseline zero-emission 
electricity percentage; by— 
(II) 1⁄27. 
(ii) ACCELERATED ANNUAL PERCENT-
AGE
INCREASE.—Notwithstanding clause 
(i), beginning with calendar year 2026, if 
the Administrator determines under para-
graph (4) that the average annual price of 
a zero-emission electricity credit for each 
of the 3 or more calendar years prior to a 
calendar year (in this clause referred to as 
‘‘the applicable calendar year’’) is less than 
the breakthrough credit price for the appli-
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cable calendar year, the term ‘‘annual per-
centage increase’’ means, for the 1 cal-
endar year that begins 4 years after the 
end of the applicable calendar year, the 
percentage that is— 
(I) twice the percentage described 
in clause (i) if the period of break-
through credit prices is 3 consecutive 
calendar years; 
(II) three times the percentage 
described in clause (i) if the period of 
breakthrough credit prices is 4 con-
secutive calendar years; 
(III) four times the percentage 
described in clause (i) if the period of 
breakthrough credit prices is 5 con-
secutive calendar years; 
(IV) five times the percentage de-
scribed in clause (i) if the period of 
breakthrough credit prices is 6 con-
secutive calendar years; and 
(V) six times the percentage de-
scribed in clause (i) if the period of 
breakthrough credit prices is 7 con-
secutive calendar years. 
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(B) 
BASELINE
ZERO-EMISSION
ELEC-
TRICITY PERCENTAGE.— 
(i) IN GENERAL.—The term ‘‘baseline 
zero-emission 
electricity 
percentage’’ 
means, with respect to a retail electricity 
supplier, the average percentage of the 
electric energy consumed by all electric 
consumers of the retail electricity supplier 
that is zero-emission electricity during cal-
endar years 2017, 2018, and 2019. 
(ii) ELECTION.—For any retail elec-
tricity supplier served by an Independent 
System Operator or a Regional Trans-
mission Organization, or participating in a 
joint unit commitment and centralized eco-
nomic dispatch system regulated by the 
Federal Energy Regulatory Commission, 
the retail electricity supplier may elect to 
set its baseline zero-emission electricity 
percentage under clause (i) on the basis of 
the zero-emission electricity and electric 
energy consumed by either— 
(I) all electric consumers of the 
retail electricity supplier; or 
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(II) all electric consumers served 
by the Independent System Operator, 
Regional Transmission Organization, 
or the applicable joint unit commit-
ment and centralized economic dis-
patch system that serves the retail 
electricity supplier. 
(iii) NOTIFICATION OF ELECTION.—A 
retail electricity supplier shall inform the 
Administrator of its election under clause 
(ii) not later than 180 days after the date 
of enactment of this Act. 
(C) BREAKTHROUGH CREDIT PRICE.—The 
term ‘‘breakthrough credit price’’ means, for a 
calendar year, the price listed in the table under 
paragraph (6) labeled ‘‘breakthrough credit 
price’’. 
(D) MINIMUM
PERCENTAGE
OF
ZERO- 
EMISSION ELECTRICITY.—The term ‘‘minimum 
percentage of zero-emission electricity’’ means, 
with respect to a retail electricity supplier— 
(i) for each of calendar years 2023 
and 2024, the baseline zero-emission elec-
tricity percentage; 
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(ii) for each of calendar years 2025 
through 2050, the amount, not to exceed 
100 percent, obtained by adding— 
(I) the minimum percentage of 
zero-emission electricity for the pre-
vious calendar year; and 
(II) the annual percentage in-
crease; and 
(iii) for each calendar year after 2050, 
100 percent. 
(E) PERCENTAGE OF INDIVIDUAL UNDER-
COMPLIANCE DUE TO ENERGY LOSS.—The term 
‘‘percentage of individual undercompliance due 
to energy loss’’ means, with respect to a cal-
endar year, for a retail electricity supplier, the 
number that is equal to— 
(i) 100; multiplied by 
(ii) the number that is equal to— 
(I) the number that is obtained 
by dividing— 
(aa) the number of zero- 
emission electricity credits that 
the 
retail 
electricity 
supplier 
would be required to submit to 
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the Administrator but for para-
graph (1)(B); by 
(bb) the number of mega-
watt-hours of electric energy sold 
by the retail electricity supplier 
to electric consumers; less 
(II) the number that is obtained 
by dividing— 
(aa) the number of zero- 
emission electricity credits award-
ed by the Administrator to gen-
erators for the electric energy 
that is sold by the retail elec-
tricity supplier to electric con-
sumers; by 
(bb) the number of mega-
watt-hours of electric energy gen-
erated by the generators that is 
provided to the retail electricity 
supplier for sale to electric con-
sumers. 
(F) PERCENTAGE
OF
NATIONAL
UNDER-
COMPLIANCE DUE TO ENERGY LOSS.—The term 
‘‘percentage of national undercompliance due to 
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energy loss’’ means, with respect to a calendar 
year, the number that is equal to— 
(i) 100; multiplied by 
(ii) the number that is equal to— 
(I) the number that is obtained 
by dividing— 
(aa) the total number of 
zero-emission electricity credits 
that all retail electricity suppliers 
would be required to submit but 
for paragraph (1)(B); by 
(bb) the total number of 
megawatt-hours of electric energy 
sold by retail electricity suppliers 
to electric consumers; less 
(II) the number that is obtained 
by dividing— 
(aa) the total number of 
zero-emission electricity credits 
awarded by the Administrator to 
all generators; by 
(bb) the total number of 
megawatt-hours of electric energy 
generated by all generators. 
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(G) PERIOD OF BREAKTHROUGH CREDIT 
PRICES.—The term ‘‘period of breakthrough 
credit prices’’ means the number of consecutive 
calendar years for which the average annual 
price of a zero-emission electricity credit is less 
than the breakthrough credit price for each 
such year, as determined by the Administrator 
under paragraph (4). 
(6) ALTERNATIVE
COMPLIANCE
PAYMENTS; 
BREAKTHROUGH CREDIT PRICES.—For a calendar 
year, amounts of alternative compliance payments 
and breakthrough credit prices are as follows: 
Calendar year 
Breakthrough 
Credit 
Price 
Alternative 
compliance 
payment 
2023 
$10.75 
$21.50 
2024 
$11.50 
$23.00 
2025 
$12.25 
$24.50 
2026 
$13.00 
$26.00 
2027 
$13.75 
$27.50 
2028 
$14.50 
$29.00 
2029 
$15.25 
$30.50 
2030 
$16.00 
$32.00 
2031 
$16.75 
$33.50 
2032 
$17.50 
$35.00 
2033 
$18.25 
$36.50 
2034 
$19.00 
$38.00 
2035 
$19.75 
$39.50 
2036 
$20.50 
$41.00 
2037 
$21.25 
$42.50 
2038 
$22.00 
$44.00 
2039 
$22.75 
$45.50 
2040 
$23.50 
$47.00 
2041 
$24.25 
$48.50 
2042 
$25.00 
$50.00 
2043 
$25.75 
$51.50 
2044 
$26.50 
$53.00 
2045 
$27.25 
$54.50 
2046 
$28.00 
$56.00 
2047 
$28.75 
$57.50 
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Calendar year 
Breakthrough 
Credit 
Price 
Alternative 
compliance 
payment 
2048 
$29.50 
$59.00 
2049 
$30.25 
$60.50 
2050 and each cal-
endar year 
thereafter 
$31.00 
$62.00. 
(b) REPORTING ON BEHIND-THE-METER GENERA-
TION SYSTEMS.—Effective beginning in calendar year 
2023, each retail electricity supplier serving one or more 
behind-the-meter generation systems may, not later than 
January 1 of each calendar year, submit to the Adminis-
trator— 
(1) verification of the carbon intensity of be-
hind-the-meter generation systems connected to the 
retail electricity supplier; and 
(2) the quantity of electric energy generated by 
each such behind-the-meter generation system that 
is consumed for a useful purpose by electric con-
sumers served by the retail electricity supplier. 
(c) ALTERNATIVE COMPLIANCE PAYMENTS.—A re-
tail electricity supplier may satisfy the requirements of 
subsection (a) with respect to a calendar year, in whole 
or in part, by submitting to the Administrator, in lieu of 
each zero-emission electricity credit that would otherwise 
be due, an alternative compliance payment equal to the 
amount determined for such calendar year in accordance 
with the table in subsection (a)(6), adjusted for inflation. 
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(d) DETERMINATION OF INADEQUATE AVAILABILITY 
OF ZERO-EMISSION ELECTRICITY TECHNOLOGY.— 
(1) PETITION FOR DETERMINATION.—A retail 
electricity supplier (referred to in this subsection as 
the ‘‘petitioner’’) may submit to the Administrator a 
petition for the Administrator to make a determina-
tion of inadequate availability of technology relating 
to zero-emission electricity with respect to a calendar 
year. 
(2) CONDITIONS.—The Administrator shall 
make an affirmative determination under paragraph 
(1) (referred to in this title as a ‘‘determination of 
inadequate availability of technology’’) for a calendar 
year only if— 
(A) a petition is submitted to the Adminis-
trator by January 31 of the following calendar 
year; 
(B) the average annual price of zero-emis-
sion electricity credits is equal to or greater 
than the alternative compliance payment under 
subsection (a)(6) for such calendar year; 
(C) the Administrator determines the num-
ber of megawatt-hours of zero-emission elec-
tricity that could have been generated or pur-
chased by the petitioner using technology that 
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was available during the time interval addressed 
by the petition— 
(i) at or below the cost per megawatt- 
hour of the technology used to generate 
the electricity sold by the petitioner in the 
previous calendar year; and 
(ii) while enabling the petitioner to 
operate its system at an adequate level of 
reliability; and 
(D) the number of megawatt-hours deter-
mined under subparagraph (C) is less than the 
number of zero-emission electricity credits the 
petitioner would be required to submit under 
subsection (a). 
(3) 
CREDIT
SUBMISSION.—Notwithstanding 
subsection (a)(1), if the Administrator makes a de-
termination of inadequate availability of technology 
for a petitioner for a calendar year, as described 
under this subsection, the petitioner shall not be re-
quired to submit for such calendar year more than 
the number of zero-emission electricity credits equal 
to the number of megawatt-hours determined under 
paragraph (2)(C). 
(4) CARBON
MITIGATION
AWARDS.—For the 
calendar year identified under paragraph (3), if the 
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Administrator makes one or more determinations of 
inadequate availability of technology under this sub-
section, the Administrator shall award under section 
205(b) an amount of money equal to the sum of— 
(A) the total amount paid by retail elec-
tricity suppliers as alternative compliance pay-
ments; and 
(B) the total amount of the alternative 
compliance payments that would have been 
made by the petitioner or petitioners but for the 
determination of inadequate availability of tech-
nology made under paragraph (2). 
(e) EXEMPTIONS.— 
(1) RECIPIENTS
OF
ACCELERATION
INVEST-
MENT
CREDITS.—A qualified zero-emission elec-
tricity taxpayer that receives a zero-emission elec-
tricity acceleration investment credit for a calendar 
year under section 45V of the Internal Revenue 
Code of 1986, as added by section 301 of this Act, 
shall not be subject to the requirements to submit 
zero-emission electricity credits under this section 
for such calendar year and each calendar year there-
after. 
(2) RECIPIENTS OF ACCELERATION GRANTS.— 
An eligible electricity provider that is awarded a 
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grant under section 302(a)(1) of this Act for a cal-
endar year shall not be subject to the requirements 
to submit zero-emission electricity credits under this 
section for such calendar year and each calendar 
year thereafter, as long as the condition described 
under section 302(a)(1)(A) continues to be met. 
SEC. 203. ZERO-EMISSION ELECTRICITY CREDIT TRADING 
PROGRAM. 
(a) ESTABLISHMENT.—Not later than 1 year after 
the date of enactment of this Act, the Administrator shall 
establish a zero-emission electricity credit trading program 
under which— 
(1) the Administrator shall record, track, auc-
tion, and transfer zero-emission electricity credits; 
and 
(2) a generator to whom such zero-emission 
electricity credits are issued may sell or otherwise 
transfer those credits, as provided or allowed by ap-
plicable contracts, through— 
(A) any auction established under the zero- 
emission electricity credit trading program; 
(B) direct sales; or 
(C) other transactional arrangements that 
sell electric energy or generating capacity either 
separately or combined with the transfer of 
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zero-emission electricity credits, including trans-
actions that pair zero-emission electricity cred-
its with the demand of the retail electricity sup-
plier. 
(b) ADMINISTRATION.—In carrying out the program 
under this section, the Administrator shall ensure that a 
zero-emission electricity credit may be— 
(1) submitted only once under section 202(a); 
and 
(2) only purchased by, transferred to, or other-
wise secured by a retail electricity supplier. 
(c) DELEGATION OF MARKET FUNCTION.— 
(1) IN GENERAL.—In carrying out the program 
under this section, the Administrator may delegate, 
to one or more appropriate entities— 
(A) the administration of a transparent 
national market for the sale or trade of zero- 
emission electricity credits; and 
(B) the tracking of dispatch of zero-emis-
sion electricity generation. 
(2) ADMINISTRATION.—In making a delegation 
under paragraph (1), the Administrator shall ensure 
that the tracking and reporting of information con-
cerning zero-emission electricity generation is trans-
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parent, verifiable, and independent of any entities 
subject to an obligation under this title. 
(d) BANKING
OF
ZERO-EMISSION
ELECTRICITY 
CREDITS.—A zero-emission electricity credit may be used 
for compliance with the requirements of section 202 for— 
(1) the calendar year for which the zero-emis-
sion electricity credit is issued (in this subsection re-
ferred to as ‘‘the applicable calendar year’’); and 
(2)(A) any of the 5 calendar years following the 
applicable calendar year, if the Administrator deter-
mines under section 202(a)(4) that the average an-
nual price of a zero-emission electricity credit is 
equal to or less than the breakthrough credit price 
for each of the 3 calendar years prior to the applica-
ble calendar year; or 
(B) if the Administrator has not made the de-
termination under subparagraph (A)— 
(i) any of the 5 calendar years following 
the applicable calendar year, if the applicable 
calendar year is any of calendar years 2023 
through 2029; 
(ii) any of the 4 calendar years following 
the applicable calendar year, if the applicable 
calendar year is any of calendar years 2030 
through 2034; 
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(iii) any of the 3 calendar years following 
the applicable calendar year, if the applicable 
calendar year is any of calendar years 2035 
through 2039; and 
(iv) any of the 2 calendar years following 
the applicable calendar year, if the applicable 
calendar year is 2040 or any calendar year 
thereafter. 
SEC. 204. DETERMINATION AND ISSUANCE OF QUANTITY 
OF ZERO-EMISSION ELECTRICITY CREDITS. 
(a) ISSUANCE
OF
ZERO-EMISSION
ELECTRICITY 
CREDITS.—The Administrator shall issue to each gener-
ator a quantity of zero-emission electricity credits deter-
mined in accordance with this section not later than 
March 1 of the calendar year after the calendar year for 
which the zero-emission electricity credits are issued. 
(b) GENERAL RULES ON CREDIT ISSUANCE.—Except 
as otherwise provided in this section, the Administrator 
shall issue to a generator generating zero-emission elec-
tricity during a calendar year a quantity of zero-emission 
electricity credits for such generation that is equal to the 
amount of zero-emission electricity of the generator for the 
calendar year. 
(c) GENERAL RULES ON DETERMINING CARBON IN-
TENSITY.—The Administrator shall determine the carbon 
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intensity of each generating unit of a generator. Such de-
termination shall be made— 
(1) using data and methods from the Air Emis-
sion Measurement Center of the Environmental Pro-
tection Agency for emission testing and monitoring, 
including— 
(A) continuous emission monitoring sys-
tems; and 
(B) predictive emission monitoring sys-
tems; and 
(2) with respect to a determination of the car-
bon intensity of any generating unit using qualified 
renewable biomass or qualified low-carbon fuel, or 
generating qualified waste-to-energy, in consultation 
with— 
(A) the Secretary of Agriculture; and 
(B) the Secretary of the Interior. 
(d) CARBON INTENSITY FOR CERTAIN CATEGORIES 
OF GENERATING UNITS.— 
(1) GENERATING
UNITS
UTILIZING
TECH-
NOLOGIES WITHOUT DIRECT EMISSIONS.—The Ad-
ministrator shall assign a carbon intensity of zero 
for any generating unit of a generator that does not 
produce direct emissions of any greenhouse gas in 
generating electric energy, including any generating 
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unit that generates electric energy only through the 
use of solar, wind, ocean, current, wave, tidal, geo-
thermal, nuclear energy, or hydropower technology, 
except as provided under paragraphs (2) and (3). 
(2) GENERATING
UNITS
UTILIZING
TECH-
NOLOGIES UTILIZING FOSSIL FUELS.— 
(A) ACCOUNTING FOR UPSTREAM GREEN-
HOUSE
GAS
EMISSIONS.—In determining the 
carbon intensity of each generating unit using 
coal, natural gas, or oil, the Administrator shall 
account for— 
(i) the direct emissions of any green-
house gas of the generating unit, which 
shall not include the qualified carbon oxide 
that is captured and safely and perma-
nently stored or utilized; and 
(ii)(I) the average amounts of carbon 
dioxide and methane emissions, in terms of 
carbon dioxide equivalent, that occur dur-
ing extraction, flaring, processing, trans-
mission, and transportation of coal, nat-
ural gas, or oil that is utilized for the gen-
eration of electricity in the United States; 
or 
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(II) with respect to a generator that 
the Administrator determines under sub-
paragraph (B) has demonstrated that the 
coal, natural gas, or oil consumed by such 
generator is associated with the release of 
smaller amounts of carbon dioxide and 
methane emissions than the amounts de-
scribed in subclause (I), such smaller 
amounts. 
(B) DETERMINATION.— 
(i) BEST
AVAILABLE
SCIENCE.—In 
making a determination under this para-
graph, the Administrator shall utilize the 
best available science, including with re-
spect to the measurement of low-frequency 
high-emission events, including by using 
data from the detection of natural gas flar-
ing from the satellite observations of the 
National Oceanic and Atmospheric Admin-
istration. 
(ii) 
ACCOUNTING
FOR
UPSTREAM 
METHANE WASTE PREVENTION.—The Ad-
ministrator may determine that a gener-
ator has demonstrated that the fossil fuel 
consumed by such generator is associated 
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with the release of smaller amounts of car-
bon dioxide and methane emissions than 
the amounts described in subparagraph 
(A)(ii)(I) if the generator— 
(I) submits a petition for such 
determination to the Administrator by 
January 31 after the calendar year 
for 
which 
such 
determination 
is 
sought; 
(II) accounts in the petition for 
low-frequency, high-emission events; 
and 
(III) uses in the petition direct 
measurements of the applicable facili-
ties, which may include measurements 
made in the course of participation in 
a voluntary program or public disclo-
sure of the quantified methane emis-
sion intensity of the applicable facili-
ties. 
(iii) PUBLIC AVAILABILITY.—The in-
formation provided to the Administrator by 
a generator to make a determination under 
this subparagraph shall be available to the 
public upon such determination. 
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(C) DEFINITION.—In this paragraph, the 
term ‘‘qualified carbon oxide’’ has the meaning 
given the term in section 45Q of the Internal 
Revenue Code of 1986. 
(D) STANDARDS.—The Administrator shall 
promulgate the standards for measurement nec-
essary to implement this paragraph not later 
than 2 years after the date of enactment of this 
Act, and shall update such standards every 5 
years thereafter, based on the best available 
science and technology. 
(3) HYDROPOWER
UTILIZING
A
NEW
RES-
ERVOIR.—In determining the carbon intensity of 
each generating unit using hydropower associated 
with a reservoir constructed after the date of enact-
ment of this Act, the Administrator shall account for 
the greenhouse gas emissions that can be attributed 
to the hydropower facility, including the applicable 
new reservoir. 
(e) QUANTITY OF CREDITS ISSUED FOR CERTAIN 
CATEGORIES OF GENERATING UNITS.— 
(1) QUALIFIED COMBINED HEAT AND POWER 
SYSTEMS.— 
(A) IN
GENERAL.—The Administrator 
shall issue to a generator generating zero-emis-
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100 
sion electricity during a calendar year using a 
generating unit that is a qualified combined 
heat and power system a quantity of zero-emis-
sion electricity credits for such generation that 
is equal to— 
(i) the number that represents the 
amount of zero-emission electricity gen-
erated by such generating unit during such 
calendar year; less 
(ii) the product obtained by multi-
plying— 
(I) the number of megawatt- 
hours of electric energy generated by 
the qualified combined heat and power 
system that are consumed onsite dur-
ing such calendar year; by 
(II) the average of the minimum 
percentage of zero-emission electricity 
(as defined in section 202(a)(5)) for 
the calendar year for retail electricity 
suppliers in the region of the gener-
ator, as determined by the Adminis-
trator. 
(B) ADDITIONAL CREDITS.—In addition to 
zero-emission electricity credits issued under 
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101 
subparagraph (A), the Administrator shall issue 
to a generator described in subparagraph (A) 
zero-emission electricity credits for greenhouse 
gas emissions avoided as a result of the use of 
the applicable qualified combined heat and 
power system, rather than a separate thermal 
source, to meet the thermal needs of the gener-
ator or one or more additional entities. 
(C) APPLICABILITY.—This paragraph shall 
not apply with respect to a qualified combined 
heat and power system using qualified renew-
able biomass. 
(2) QUALIFIED
RENEWABLE
BIOMASS.—The 
Administrator shall issue to a generator generating 
zero-emission electricity during a calendar year 
using qualified renewable biomass a quantity of 
zero-emission electricity credits for such generation 
that is equal to the product obtained by multi-
plying— 
(A) the qualified electricity generation of 
the generator that was generated using quali-
fied renewable biomass during such calendar 
year; by 
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102 
(B) the average carbon intensity of the 
generating units of the generator that use 
qualified renewable biomass. 
(3) QUALIFIED WASTE-TO-ENERGY.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Administrator shall issue 
to a generator generating zero-emission elec-
tricity during a calendar year that is qualified 
waste-to-energy a quantity of zero-emission 
electricity credits for such generation that is 
equal to the product obtained by multiplying— 
(i) the qualified waste-to-energy of the 
generator that is qualified electricity gen-
eration during such calendar year; by 
(ii) the average carbon intensity of the 
generating units of the generator used to 
generate qualified waste-to-energy. 
(B) EXCEPTION.—Zero-emission electricity 
credits for zero-emission electricity that is 
qualified waste-to-energy generated using quali-
fied renewable biomass shall be issued in ac-
cordance with paragraph (2). 
(4) QUALIFIED LOW-CARBON FUELS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (C), the Administrator shall issue 
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103 
to a generator generating zero-emission elec-
tricity during a calendar year using qualified 
low-carbon fuels a quantity of zero-emission 
electricity credits for such generation that is 
equal to the product obtained by multiplying— 
(i) the qualified electricity generation 
of the generator that was generated using 
qualified low-carbon fuels during such cal-
endar year; by 
(ii) the average carbon intensity of the 
generating units of the generator that use 
qualified low-carbon fuels. 
(B) ADJUSTMENT FOR PRODUCTION.—In 
determining the carbon intensity of each gener-
ating unit using a qualified low-carbon fuel, the 
Administrator shall account for the greenhouse 
gas emissions associated with the production of 
such qualified low-carbon fuel. 
(C) NO DOUBLE COUNTING.—The Admin-
istrator shall not issue zero-emission electricity 
credits for electric energy generated using a 
qualified low-carbon fuel that is generated using 
electric energy for which a generator is issued 
a zero-emission electricity credit under this 
title. 
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104 
(5) DIRECT AIR CAPTURE OF CARBON DIOX-
IDE.—The Administrator shall issue to an entity 
that captures carbon dioxide from the atmosphere, 
and safely and permanently stores or utilizes such 
carbon dioxide, 1 zero-emission electricity credit for 
every 0.82 metric tons of carbon dioxide equivalent 
that is captured and safely and permanently stored 
or utilized. 
(6) SPECIAL RULES.— 
(A) REGULATIONS.—Subject to subpara-
graph (B), not later than 1 year after the date 
of enactment of this Act, for purposes of 
issuing zero-emission electricity credits under 
this section, the Administrator shall promulgate 
regulations establishing— 
(i) the conditions under which carbon 
dioxide may be safely and permanently 
stored; 
(ii) the methods and processes by 
which carbon dioxide may be utilized in a 
manner that ensures the removal of the 
carbon dioxide safely and permanently 
from the atmosphere, including utilization 
in the production of substances, such as 
plastics and chemicals; and 
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105 
(iii) requirements to account for the 
risk that some fraction of the carbon diox-
ide intended to be permanently stored or 
utilized may nevertheless be emitted into 
the atmosphere. 
(B) EXISTING
REQUIREMENTS.—In pro-
mulgating regulations pursuant to this para-
graph, the Administrator shall incorporate any 
existing requirements for the permanent geo-
logic storage of carbon dioxide, including any 
requirements promulgated under section 45Q of 
the Internal Revenue Code of 1986. 
(f) MAXIMUM QUANTITY OF CREDITS.—Except as 
provided under subsection (e)(1), the total quantity of 
zero-emission electricity credits issued under this section 
to a generator for a calendar year shall not exceed the 
number of megawatt-hours of the qualified electricity gen-
eration of the generator for the calendar year. 
(g) NO NEGATIVE CREDITS.—Notwithstanding any 
other provision of this title, the Administrator shall not 
issue a negative quantity of zero-emission electricity cred-
its to any generator. 
(h) FACILITIES OUTSIDE THE UNITED STATES.— 
With respect to electricity generated by a facility or gener-
ating unit that is located outside of the United States, 
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a zero-emission electricity credit may be issued only with 
respect to electricity that is sold for resale in the United 
States. 
(i) CONTRACTS.—A zero-emission electricity credit 
issued for electricity that is— 
(1) sold for resale under a contract in effect on 
the date of enactment of this title shall be issued to 
the purchasing retail electricity supplier in propor-
tion to the zero-emission electricity purchased by 
such retail electricity supplier under the contract, 
unless otherwise provided by the contract; and 
(2) sold for resale under a contract in which a 
generating unit is not specified, shall be issued to 
the purchasing retail electricity supplier in propor-
tion to the ratio of zero-emission electricity genera-
tion from the generator making such sale for resale. 
(j) FEDERAL
POWER
MARKETING
ADMINISTRA-
TION.—A zero-emission electricity credit issued for elec-
tricity that is generated by a Federal Power Marketing 
Administration shall be transferred to the retail electricity 
supplier that is purchasing the electricity. 
(k) RECIPIENTS
OF ACCELERATION INVESTMENT 
CREDITS.—A qualified zero-emission electricity taxpayer 
that receives a zero-emission electricity acceleration invest-
ment credit for a calendar year under section 45V of the 
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107 
Internal Revenue Code of 1986, as added by section 301 
of this Act, shall not be issued any zero-emission elec-
tricity credits under this section for such calendar year 
or any calendar year thereafter. 
(l) RECIPIENTS OF ACCELERATION GRANTS.—An eli-
gible electricity provider that receives a grant during a cal-
endar year under section 302(a)(1) of this Act shall not 
be issued any zero-emission electricity credits under this 
section for such calendar year or any calendar year there-
after. 
SEC. 205. CARBON MITIGATION FUND. 
(a) CARBON MITIGATION FUND.— 
(1) CREATION OF FUND.—There is hereby es-
tablished a trust fund, to be known as the ‘‘Carbon 
Mitigation Fund’’, consisting of such amounts as 
may be appropriated to such fund as provided in 
this section. 
(2) ADMINISTRATION.—The Carbon Mitigation 
Fund shall be administered by the Administrator. 
(3) TRANSFERS TO TRUST FUND.—There are 
hereby appropriated to the Carbon Mitigation Fund 
each year amounts equal to the sum of the amounts 
that are— 
(A) attributable to alternative compliance 
payments made pursuant to section 202; 
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(B) equal to the alternative compliance 
payments that would have been made by any 
petitioners under section 202 but for a deter-
mination of inadequate availability of tech-
nology made by the Administrator under section 
202(d); and 
(C) collected as a civil penalty under sec-
tion 209. 
(4) EXPENDITURES.—Amounts in the Carbon 
Mitigation Fund shall be available without further 
appropriation or fiscal year limitation to carry out 
the program under subsection (b). 
(b) PROGRAM.— 
(1) IN
GENERAL.—The Administrator shall 
carry out a program to award funds to entities to 
carry out activities in States that avoid emissions of 
greenhouse gases or remove carbon dioxide from the 
atmosphere. 
(2) ACTIVITIES.—Activities for which the Ad-
ministrator may award funds under the program 
carried out pursuant to this subsection include— 
(A) improvements to the energy efficiency 
of existing facilities and devices; 
(B) improvements to the electrical grid; 
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109 
(C) the replacement of natural gas space 
heaters, natural gas water heaters, and natural 
gas stoves, with electric appliances; 
(D) the replacement of fossil fuel-powered 
vehicles owned by State and local agencies with 
electric vehicles or other low-carbon fuel vehi-
cles; 
(E) the replacement of fossil fuel-powered 
ground airport and seaport vehicles with electric 
vehicles or other low-carbon fuel vehicles; 
(F) installation of fast charging stations 
for electric vehicles along highways and other 
public roads in urban areas and rural areas; 
(G) beneficial electrification-related reduc-
tions not otherwise identified in this paragraph; 
(H) activities that capture carbon dioxide 
from the atmosphere and safely and perma-
nently store or utilize such carbon dioxide in ac-
cordance with section 204(e)(6); and 
(I) any activity that is endorsed by a gen-
erator or a retail electricity supplier that results 
in a net reduction of emissions of greenhouse 
gases. 
(3) EXCLUSIONS.—The Administrator may not 
award funds to an entity under the program carried 
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out pursuant to this subsection for any activity for 
which the entity— 
(A) has been issued a zero-emission elec-
tricity credit; or 
(B) received a deduction of megawatt- 
hours under section 202(a)(3)(B) to account for 
beneficial electrification-related reductions. 
(4) CRITERIA.—The Administrator may only 
award funds under the program carried out pursu-
ant to this subsection for an activity for which the 
Administrator determines that— 
(A) the amount of carbon dioxide emis-
sions avoided or removed from the atmosphere 
by the activity will be adequately confirmed 
through monitoring, reporting, and verification; 
(B) the risk that some amount of the car-
bon dioxide that is removed from the atmos-
phere by the activity may reenter the atmos-
phere at a later date is adequately reflected 
through a discounting of the amount described 
in paragraph (5)(C)(ii); 
(C) the risk that some amount of the 
greenhouse gases, the emission of which is 
avoided by the activity, may enter the atmos-
phere at a later date is adequately reflected 
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111 
through a discounting of the amount described 
in paragraph (5)(C)(i); 
(D) the risk that the activity may directly 
or indirectly increase the release of greenhouse 
gases from another location has been ade-
quately addressed; 
(E) the activity is not required, or being 
fully supported financially by, a Federal, State, 
or local law, program, or activity; and 
(F) if the activity involves land use, the ac-
tivity— 
(i) aligns with the Sustainable Devel-
opment Goals of the United Nations, in-
cluding being consistent with the conserva-
tion of biological diversity and natural eco-
systems (including forests and grasslands); 
and 
(ii) maintains ecosystem services and 
other social and environmental benefits. 
(5) PROPOSALS.—In order to qualify for an 
award of funds under this subsection, an entity shall 
submit to the Administrator a proposal that— 
(A) describes the activity to be carried out 
with the award of funds; 
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(B) identifies the amount of money for 
which the entity is applying; 
(C) identifies the amount, to be measured 
in one-year increments, of— 
(i) greenhouse gas emissions to be 
avoided by the activity, measured in terms 
of carbon dioxide equivalent; and 
(ii) carbon dioxide to be removed from 
the atmosphere by the activity, measured 
in metric tons; 
(D) identifies the bid amount, expressed as 
dollars per metric ton, which shall be the 
quotient obtained by dividing the amount iden-
tified under subparagraph (B) by the total 
amount identified under subparagraph (C); 
(E) provides any information required by 
the Administrator in order to make a deter-
mination described in paragraph (4); and 
(F) provides any other certifications the 
Administrator determines appropriate. 
(6) DEADLINES.— 
(A) PROMULGATION.—Not later than Jan-
uary 1, 2024, the Administrator shall promul-
gate regulations to implement this section, in-
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cluding specifying the information required to 
be included in proposals under paragraph (5). 
(B) SOLICITATION.—Not later than Feb-
ruary 1, 2024, and each February 1 thereafter, 
the Administrator shall solicit proposals for ac-
tivities described in paragraph (1) for which the 
Administrator may award funds under the pro-
gram carried out pursuant to this subsection. 
(C) 
IDENTIFICATION.—Not 
later 
than 
June 1, 2024, and each June 1 thereafter, the 
Administrator shall identify proposals that have 
been submitted by March 1 of such calendar 
year for activities described in paragraph (1) 
that qualify for an award of funds under the 
program carried out pursuant to this sub-
section. 
(D) AWARD OF FUNDS.—Not later than 
August 1, 2024, and each August 1 thereafter, 
the Administrator shall award to entities funds 
available in the Carbon Mitigation Fund estab-
lished by subsection (a) for activities described 
in proposals identified under subparagraph (C). 
(7) AWARDS TO MOST COST-EFFECTIVE ACTIVI-
TIES.—The Administrator shall award funds to enti-
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