I 
113TH CONGRESS 
1ST SESSION H. R. 3654 
To establish a renewable electricity standard, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 4, 2013 
Mr. POLIS (for himself, Mr. BEN RAY LUJA´N of New Mexico, and Ms. 
KUSTER) introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce 
A BILL 
To establish a renewable electricity standard, 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. 
This Act may be cited as the ‘‘Renewable Electricity 
Standard Act of 2013’’. 
SEC. 2. RENEWABLE ELECTRICITY STANDARD. 
(a) IN GENERAL.—Title VI of the Public Utility Reg-
ulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is 
amended by adding at the end the following: 
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‘‘SEC. 610. RENEWABLE ELECTRICITY STANDARD. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BASE QUANTITY OF ELECTRICITY.— 
‘‘(A) IN GENERAL.—The term ‘base quan-
tity of electricity’ means the total quantity of 
electric energy sold by a retail electric supplier, 
expressed in terms of kilowatt hours, to electric 
customers for purposes other than resale during 
the most recent calendar year for which infor-
mation is available. 
‘‘(B) EXCLUSIONS.—The term ‘base quan-
tity of electricity’ does not include— 
‘‘(i) electric energy that is not incre-
mental hydropower generated by a hydro-
electric facility; and 
‘‘(ii) electricity generated through the 
incineration of municipal solid waste. 
‘‘(2) BIOMASS.— 
‘‘(A) IN
GENERAL.—The term ‘biomass’ 
means— 
‘‘(i) cellulosic (plant fiber) organic 
materials from a plant that is planted for 
the purpose of being used to produce en-
ergy; 
‘‘(ii) nonhazardous plant or algal mat-
ter that is derived from— 
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‘‘(I) an agricultural crop, crop 
byproduct, or residue resource; or 
‘‘(II) waste, such as landscape or 
right-of-way trimmings (but not in-
cluding municipal solid waste, recycla-
ble postconsumer waste paper, paint-
ed, treated, or pressurized wood, wood 
contaminated with plastic, or metals); 
‘‘(iii) animal waste or animal byprod-
ucts; and 
‘‘(iv) landfill methane. 
‘‘(B) NATIONAL FOREST LAND AND CER-
TAIN OTHER PUBLIC LAND.—In the case of or-
ganic material removed from National Forest 
System land or from public land administered 
by the Secretary of the Interior, the term ‘bio-
mass’ means only organic material from— 
‘‘(i) ecological forest restoration; 
‘‘(ii) precommercial thinnings; 
‘‘(iii) brush; 
‘‘(iv) mill residues; or 
‘‘(v) slash. 
‘‘(C) EXCLUSION
OF
CERTAIN
FEDERAL 
LAND.—Notwithstanding subparagraph (B), the 
term ‘biomass’ does not include material or 
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matter that would otherwise qualify as biomass 
if the material or matter is located on the fol-
lowing Federal land: 
‘‘(i) Federal land containing old 
growth forest or late successional forest 
unless the Secretary of the Interior or the 
Secretary of Agriculture determines that 
the removal of organic material from the 
land— 
‘‘(I) is appropriate for the appli-
cable forest type; and 
‘‘(II) maximizes the retention 
of— 
‘‘(aa) late-successional and 
large and old growth trees; 
‘‘(bb) late-successional and 
old growth forest structure; and 
‘‘(cc) late-successional and 
old growth forest composition. 
‘‘(ii) Federal land on which the re-
moval of vegetation is prohibited, including 
components of the National Wilderness 
Preservation System. 
‘‘(iii) Wilderness study areas. 
‘‘(iv) Inventoried roadless areas. 
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‘‘(v) Components of the National 
Landscape Conservation System. 
‘‘(vi) National Monuments. 
‘‘(3) EXISTING FACILITY.—The term ‘existing 
facility’ means a facility for the generation of elec-
tric energy from a renewable energy resource that is 
not an eligible facility. 
‘‘(4) INCREMENTAL HYDROPOWER.—The term 
‘incremental hydropower’ means additional genera-
tion that is achieved from increased efficiency or ad-
ditions of capacity made on or after— 
‘‘(A) the date of enactment of this section; 
or 
‘‘(B) the effective date of an existing appli-
cable State renewable portfolio standard pro-
gram at a hydroelectric facility that was placed 
in service before that date. 
‘‘(5) INDIAN
LAND.—The term ‘Indian land’ 
means— 
‘‘(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria; 
‘‘(B) any land not within the limits of any 
Indian reservation, pueblo, or rancheria title to 
which on the date of enactment of this section 
was held by— 
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‘‘(i) the United States for the benefit 
of any Indian tribe or individual; or 
‘‘(ii) any Indian tribe or individual 
subject to restriction by the United States 
against alienation; 
‘‘(C) any dependent Indian community; or 
‘‘(D) any land conveyed to any Alaska Na-
tive corporation under the Alaska Native 
Claims Settlement Act (43 U.S.C. 1601 et 
seq.). 
‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ 
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaskan 
Native village or regional or village corporation as 
defined in or established pursuant to the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.), 
that is recognized as eligible for the special pro-
grams and services provided by the United States to 
Indians because of their status as Indians. 
‘‘(7) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electric energy generated by a re-
newable energy resource. 
‘‘(8) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘renewable energy resource’ means solar, wind, 
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ocean, tidal, geothermal energy, biomass, landfill 
gas, incremental hydropower, or hydrokinetic energy. 
‘‘(9) REPOWERING OR COFIRING INCREMENT.— 
The 
term 
‘repowering 
or 
cofiring 
increment’ 
means— 
‘‘(A) the additional generation from a 
modification that is placed in service on or after 
the date of enactment of this section, to expand 
electricity production at a facility used to gen-
erate electric energy from a renewable energy 
resource; 
‘‘(B) the additional generation above the 
average generation during the 3-year period 
ending on the date of enactment of this section 
at a facility used to generate electric energy 
from a renewable energy resource or to cofire 
biomass that was placed in service before the 
date of enactment of this section; or 
‘‘(C) the portion of the electric generation 
from a facility placed in service on or after the 
date of enactment of this section, or a modifica-
tion to a facility placed in service before the 
date of enactment of this section made on or 
after January 1, 2001, associated with cofiring 
biomass. 
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‘‘(10) RETAIL ELECTRIC SUPPLIER.— 
‘‘(A) IN GENERAL.—The term ‘retail elec-
tric supplier’ means a person that sells electric 
energy to electric consumers that sold not less 
than 1,000,000 megawatt hours of electric en-
ergy to electric consumers for purposes other 
than resale during the preceding calendar year. 
‘‘(B) INCLUSION.—The term ‘retail electric 
supplier’ includes a person that sells electric en-
ergy to electric consumers that, in combination 
with the sales of any affiliate organized after 
the date of enactment of this section, sells not 
less than 1,000,000 megawatt hours of electric 
energy to consumers for purposes other than re-
sale. 
‘‘(C) SALES
TO
PARENT
COMPANIES
OR 
AFFILIATES.—For purposes of this paragraph, 
sales by any person to a parent company or to 
other affiliates of the person shall not be treat-
ed as sales to electric consumers. 
‘‘(D) GOVERNMENTAL AGENCIES.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the term ‘retail electric 
supplier’ does not include— 
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‘‘(1) Federal renewable energy credits issued 
under subsection (e). 
‘‘(2) Certification of the renewable energy gen-
erated and electricity savings pursuant to the funds 
associated with State compliance payments as speci-
fied in subsection (e)(4)(G). 
‘‘(3) Alternative compliance payments pursuant 
to subsection (h). 
‘‘(c) REQUIRED ANNUAL PERCENTAGE.—For each of 
calendar years 2014 through 2039, the required annual 
percentage of the base quantity of electricity of a retail 
electric supplier that shall be generated from renewable 
energy resources, or otherwise credited towards the per-
centage requirement pursuant to subsection (d), shall be 
the applicable percentage specified in the following table: 
Required Amount 
‘‘Calendar Years 
percentage 
2014 .............................................................................................
6.0
2015 .............................................................................................
8.5
2016 .............................................................................................
11.0
2017 .............................................................................................
11.0
2018 .............................................................................................
14.0
2019 .............................................................................................
14.0
2020 .............................................................................................
17.5
2021 .............................................................................................
17.5
2022 .............................................................................................
21.0
2023 .............................................................................................
21.0
2024 .............................................................................................
23.0
2025 and thereafter through 2039 ..............................................
25.0. 
‘‘(d) RENEWABLE ENERGY CREDITS.— 
‘‘(1) IN
GENERAL.—A retail electric supplier 
may satisfy the requirements of subsection (b)(1) 
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through the submission of Federal renewable energy 
credits— 
‘‘(A) issued to the retail electric supplier 
under subsection (e); 
‘‘(B) obtained by purchase or exchange 
under subsection (f); or 
‘‘(C) borrowed under subsection (g). 
‘‘(2) FEDERAL
RENEWABLE
ENERGY
CRED-
ITS.—A Federal renewable energy credit may be 
counted toward compliance with subsection (b)(1) 
only once. 
‘‘(e) ISSUANCE OF FEDERAL RENEWABLE ENERGY 
CREDITS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Secretary 
shall establish by rule a program— 
‘‘(A) to verify and issue Federal renewable 
energy credits to generators of renewable en-
ergy; 
‘‘(B) to track the sale, exchange, and re-
tirement of the credits; and 
‘‘(C) to enforce the requirements of this 
section. 
‘‘(2) EXISTING NON-FEDERAL TRACKING SYS-
TEMS.—To the maximum extent practicable, in es-
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tablishing the program, the Secretary shall rely on 
existing and emerging State or regional tracking 
systems that issue and track non-Federal renewable 
energy credits. 
‘‘(3) APPLICATION.— 
‘‘(A) IN GENERAL.—An entity that gen-
erates electric energy through the use of a re-
newable energy resource may apply to the Sec-
retary for the issuance of renewable energy 
credits. 
‘‘(B) ELIGIBILITY.—To be eligible for the 
issuance of the credits, the applicant shall dem-
onstrate to the Secretary that— 
‘‘(i) the electric energy will be trans-
mitted onto the grid; or 
‘‘(ii) in the case of a generation offset, 
the electric energy offset would have other-
wise been consumed onsite. 
‘‘(C) CONTENTS.—The application shall 
indicate— 
‘‘(i) the type of renewable energy re-
source that is used to produce the elec-
tricity; 
‘‘(ii) the location at which the electric 
energy will be produced; and 
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‘‘(iii) any other information the Sec-
retary determines appropriate. 
‘‘(4) QUANTITY OF FEDERAL RENEWABLE EN-
ERGY CREDITS.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, the Secretary shall 
issue to a generator of electric energy 1 Federal 
renewable energy credit for each kilowatt hour 
of electric energy generated by the use of a re-
newable energy resource at an eligible facility. 
‘‘(B) INCREMENTAL HYDROPOWER.— 
‘‘(i) IN
GENERAL.—For purpose of 
compliance with this section, Federal re-
newable energy credits for incremental hy-
dropower shall be based on the increase in 
average annual generation resulting from 
the efficiency improvements or capacity ad-
ditions. 
‘‘(ii) WATER
FLOW
INFORMATION.— 
The incremental generation shall be cal-
culated using the same water flow informa-
tion that is— 
‘‘(I) used to determine a historic 
average annual generation baseline for 
the hydroelectric facility; and 
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‘‘(II) certified by the Secretary or 
the Federal Energy Regulatory Com-
mission. 
‘‘(iii) OPERATIONAL
CHANGES.—The 
calculation of the Federal renewable energy 
credits for incremental hydropower shall 
not be based on any operational changes at 
the hydroelectric facility that is not di-
rectly associated with the efficiency im-
provements or capacity additions. 
‘‘(C) INDIAN LAND.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall issue 2 renewable energy credits for 
each kilowatt hour of electric energy gen-
erated and supplied to the grid in a cal-
endar year through the use of a renewable 
energy resource at an eligible facility lo-
cated on Indian land. 
‘‘(ii) BIOMASS.—For purposes of this 
paragraph, renewable energy generated by 
biomass cofired with other fuels is eligible 
for 2 credits only if the biomass was grown 
on the land. 
‘‘(D) ON-SITE ELIGIBLE FACILITIES.— 
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‘‘(i) IN
GENERAL.—In the case of 
electric energy generated by a renewable 
energy resource at an on-site eligible facil-
ity that is not larger than 1 megawatt in 
capacity and is used to offset all or part of 
the requirements of a customer for electric 
energy, the Secretary shall issue 3 renew-
able energy credits to the customer for 
each kilowatt hour generated. 
‘‘(ii) INDIAN LAND.—In the case of an 
on-site eligible facility on Indian land, the 
Secretary shall issue not more than 3 cred-
its per kilowatt hour. 
‘‘(E) COMBINATION OF RENEWABLE AND 
NONRENEWABLE ENERGY RESOURCES.—If both 
a renewable energy resource and a nonrenew-
able energy resource are used to generate the 
electric energy, the Secretary shall issue the 
Federal renewable energy credits based on the 
proportion of the renewable energy resources 
used. 
‘‘(F) RETAIL ELECTRIC SUPPLIERS.—If a 
generator has sold electric energy generated 
through the use of a renewable energy resource 
to a retail electric supplier under a contract for 
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power from an existing facility and the contract 
has not determined ownership of the Federal 
renewable energy credits associated with the 
generation, the Secretary shall issue the Fed-
eral renewable energy credits to the retail elec-
tric supplier for the duration of the contract. 
‘‘(G) COMPLIANCE
WITH
STATE
RENEW-
ABLE PORTFOLIO STANDARD PROGRAMS.—Pay-
ments made by a retail electricity supplier, di-
rectly or indirectly, to a State for compliance 
with a State renewable portfolio standard pro-
gram, or for an alternative compliance mecha-
nism, shall be valued at 1 credit per kilowatt 
hour for the purpose of subsection (b)(2) based 
on the quantity of electric energy generation 
from renewable resources that results from the 
payments. 
‘‘(f) RENEWABLE ENERGY CREDIT TRADING.— 
‘‘(1) IN GENERAL.—A Federal renewable en-
ergy credit may be sold, transferred, or exchanged 
by the entity to whom the credit is issued or by any 
other entity that acquires the Federal renewable en-
ergy credit, other than renewable energy credits 
from existing facilities. 
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‘‘(2) CARRYOVER.—A Federal renewable energy 
credit for any year that is not submitted to satisfy 
the minimum renewable generation requirement of 
subsection (c) for that year may be carried forward 
for use pursuant to subsection (b)(1) within the next 
3 years. 
‘‘(3) DELEGATION.—The Secretary may dele-
gate to an appropriate market-making entity the ad-
ministration of a national tradeable renewable en-
ergy credit market for purposes of creating a trans-
parent national market for the sale or trade of re-
newable energy credits. 
‘‘(g) RENEWABLE ENERGY CREDIT BORROWING.— 
‘‘(1) IN GENERAL.—Not later than December 
31, 2014, a retail electric supplier that has reason 
to believe the retail electric supplier will not be able 
to fully comply with subsection (b) may— 
‘‘(A) submit a plan to the Secretary dem-
onstrating that the retail electric supplier will 
earn sufficient Federal renewable energy credits 
within the next 3 calendar years that, when 
taken into account, will enable the retail electric 
supplier to meet the requirements of subsection 
(b) for calendar year 2014 and the subsequent 
calendar years involved; and 
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‘‘(B) on the approval of the plan by the 
Secretary, apply Federal renewable energy cred-
its that the plan demonstrates will be earned 
within the next 3 calendar years to meet the re-
quirements of subsection (b) for each calendar 
year involved. 
‘‘(2) REPAYMENT.—The retail electric supplier 
shall repay all of the borrowed Federal renewable 
energy credits by submitting an equivalent number 
of Federal renewable energy credits, in addition to 
the credits otherwise required under subsection (b), 
by calendar year 2022 or any earlier deadlines speci-
fied in the approved plan. 
‘‘(h) ALTERNATIVE COMPLIANCE PAYMENTS.—As a 
means of compliance under subsection (b)(4), the Sec-
retary shall accept payment equal to the lesser of— 
‘‘(1) 200 percent of the average market value of 
Federal renewable energy credits and Federal energy 
efficiency credits for the applicable compliance pe-
riod; or 
‘‘(2) 3 cents per kilowatt hour (as adjusted on 
January 1 of each year following calendar year 2006 
based on the implicit price deflator for the gross na-
tional product). 
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‘‘(i) INFORMATION
COLLECTION.—The Secretary 
may collect the information necessary to verify and 
audit— 
‘‘(1)(A) the annual renewable energy generation 
of any retail electric supplier; and 
‘‘(B) Federal renewable energy credits sub-
mitted by a retail electric supplier pursuant to sub-
section (b)(1); 
‘‘(2) the validity of Federal renewable energy 
credits submitted for compliance by a retail electric 
supplier to the Secretary; and 
‘‘(3) the quantity of electricity sales of all retail 
electric suppliers. 
‘‘(j) ENVIRONMENTAL
SAVINGS
CLAUSE.—Incre-
mental hydropower shall be subject to all applicable envi-
ronmental laws and licensing and regulatory requirements. 
‘‘(k) STATE PROGRAMS.— 
‘‘(1) IN GENERAL.—Nothing in this section di-
minishes any authority of a State or political sub-
division of a State— 
‘‘(A) to adopt or enforce any law (includ-
ing regulations) respecting renewable energy, 
including programs that exceed the required 
quantity of renewable energy under this section; 
or 
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‘‘(B) to regulate the acquisition and dis-
position of Federal renewable energy credits by 
retail electric suppliers. 
‘‘(2) COMPLIANCE WITH SECTION.—No law or 
regulation referred to in paragraph (1)(A) shall re-
lieve any person of any requirement otherwise appli-
cable under this section. 
‘‘(3) COORDINATION WITH STATE PROGRAM.— 
The Secretary, in consultation with States that have 
in effect renewable energy programs, shall— 
‘‘(A) preserve the integrity of the State 
programs, including programs that exceed the 
required quantity of renewable energy under 
this section; and 
‘‘(B) facilitate coordination between the 
Federal program and State programs. 
‘‘(4) EXISTING
RENEWABLE
ENERGY
PRO-
GRAMS.—In the regulations establishing the program 
under this section, the Secretary shall incorporate 
common elements of existing renewable energy pro-
grams, including State programs, to ensure adminis-
trative ease, market transparency and effective en-
forcement. 
‘‘(5) MINIMIZATION OF ADMINISTRATIVE BUR-
DENS AND COSTS.—In carrying out this section, the 
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Secretary shall work with the States to minimize ad-
ministrative burdens and costs to retail electric sup-
pliers. 
‘‘(l) RECOVERY OF COSTS.—An electric utility that 
has sales of electric energy that are subject to rate regula-
tion (including any utility with rates that are regulated 
by the Commission and any State regulated electric util-
ity) shall not be denied the opportunity to recover the full 
amount of the prudently incurred incremental cost of re-
newable energy obtained to comply with the requirements 
of subsection (b). 
‘‘(m) PROGRAM REVIEW.— 
‘‘(1) IN GENERAL.—The Secretary shall enter 
into an arrangement with the National Academy of 
Sciences under which the Academy shall conduct a 
comprehensive evaluation of all aspects of the pro-
gram established under this section. 
‘‘(2) EVALUATION.—The study shall include an 
evaluation of— 
‘‘(A) the effectiveness of the program in 
increasing the market penetration and lowering 
the cost of the eligible renewable energy tech-
nologies; 
‘‘(B) the opportunities for any additional 
technologies and sources of renewable energy 
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emerging since the date of enactment of this 
section; 
‘‘(C) the impact on the regional diversity 
and reliability of supply sources, including the 
power quality benefits of distributed generation; 
‘‘(D) the regional resource development 
relative to renewable potential and reasons for 
any investment in renewable resources; and 
‘‘(E) the net cost/benefit of the renewable 
electricity standard to the national and State 
economies, including— 
‘‘(i) retail power costs; 
‘‘(ii) the economic development bene-
fits of investment; 
‘‘(iii) avoided costs related to environ-
mental and congestion mitigation invest-
ments that would otherwise have been re-
quired; 
‘‘(iv) the impact on natural gas de-
mand and price; and 
‘‘(v) the effectiveness of green mar-
keting programs at reducing the cost of re-
newable resources. 
‘‘(3) REPORT.—Not later than January 1, 
2018, the Secretary shall transmit to Congress a re-
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port describing the results of the evaluation and any 
recommendations for modifications and improve-
ments to the program. 
‘‘(n) STATE RENEWABLE ENERGY ACCOUNT.— 
‘‘(1) IN GENERAL.—There is established in the 
Treasury a State renewable energy account. 
‘‘(2) DEPOSITS.—All money collected by the 
Secretary from the alternative compliance payments 
under subsection (h) shall be deposited into the 
State renewable energy account established under 
paragraph (1). 
‘‘(3) GRANTS.— 
‘‘(A) IN GENERAL.—Proceeds deposited in 
the State renewable energy account shall be 
used by the Secretary, subject to annual appro-
priations, for a program to provide grants— 
‘‘(i) to the State agency responsible 
for administering a fund to promote renew-
able energy generation for customers of the 
State or an alternative agency designated 
by the State; or 
‘‘(ii) if no agency described in clause 
(i), to the State agency developing State 
energy conservation plans under section 
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362 of the Energy Policy and Conservation 
Act (42 U.S.C. 6322). 
‘‘(B) USE.—The grants shall be used for 
the purpose of— 
‘‘(i) promoting renewable energy pro-
duction; and 
‘‘(ii) providing energy assistance and 
weatherization services to low-income con-
sumers. 
‘‘(C) CRITERIA.—The Secretary may issue 
guidelines and criteria for grants awarded 
under this paragraph. 
‘‘(D) STATE-APPROVED FUNDING MECHA-
NISMS.—At least 75 percent of the funds pro-
vided to each State for each fiscal year shall be 
used to promote renewable energy production 
through grants, production incentives, or other 
State-approved funding mechanisms. 
‘‘(E) ALLOCATION.—The funds shall be al-
located to the States on the basis of retail elec-
tric sales subject to the renewable electricity 
standard under this section or through vol-
untary participation. 
‘‘(F) RECORDS.—State agencies receiving 
grants under this paragraph shall maintain 
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such records and evidence of compliance as the 
Secretary may require.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. prec. 2601) is amended by adding at 
the end of the items relating to title VI the following: 
‘‘Sec. 609. Rural and remote communities electrification grants. 
‘‘Sec. 610. Renewable electricity standard.’’. 
Æ 
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