that is equal to the administrative costs of issuing, record-
ing, monitoring the sale or exchange of, and tracking the 
credit or does not exceed five percent of the dollar value 
of the credit, whichever is lower. The Secretary shall re-
tain the fee and use it to pay these administrative costs. 
‘‘(6) A credit may be counted toward compliance with 
subsection (a) only once. A retail electricity or natural gas 
supplier may satisfy the requirements of subsection (a) 
through the accumulation of— 
‘‘(A) electricity or natural gas savings credits 
obtained by purchase or exchange under paragraph 
(7); 
‘‘(B) electricity or natural gas savings credits 
borrowed against future years under paragraph (8); 
or 
‘‘(C) any combination of credits under subpara-
graphs (A) and (B). 
‘‘(7) An electricity or natural gas savings credit may 
be sold or exchanged by the entity to whom issued or by 
any other entity that acquires the credit. An energy effi-
ciency credit for any year that is not used to satisfy the 
minimum energy savings requirement of subsection (a) for 
that year may be carried forward for use within the next 
4 years. 
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sroberts on PROD1PC70 with BILLS
‘‘(8) During the first year covered by the standards, 
a retail electricity or natural gas supplier that has reason 
to believe that it will not have sufficient electricity savings 
credits to comply with subsection (a) may— 
‘‘(A) submit a plan to the Secretary dem-
onstrating that the retail electricity or natural gas 
supplier will earn sufficient credits within the next 
two calendar years which, when taken into account, 
will enable the retail electricity or natural gas sup-
plier to meet the requirements of subsection (a) for 
the calendar year involved; and 
‘‘(B) upon the approval of the plan by the Sec-
retary, apply credits that the plan demonstrates will 
be earned within the next two calendar years to 
meet the requirements of subsection (a) for the cal-
endar year involved. 
‘‘(9) Any retail electricity or natural gas supplier may 
elect to comply with the requirements of this section in 
any calendar year by paying a fee of 3 cents per kilowatt 
hour, and 30 cents per therm, for any portion of the elec-
tricity or natural gas savings it would be obligated to 
achieve in that year by not later than March 31 of the 
following year. Funds produced from such fees shall be 
deposited in an escrow account established by the Sec-
retary, and shall be distributed to the States for their use 
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in creating electricity or natural gas savings at customer 
facilities. 
‘‘(d) ENFORCEMENT OF COMPLIANCE.—(1) If the 
State regulatory authority with ratemaking jurisdiction 
over a State-regulated retail electricity or natural gas sup-
plier notifies the Secretary that it will enforce compliance 
by such supplier with the performance standards under 
subsection (a) of this section, such State regulatory au-
thority shall have the authority to administer and enforce 
such standards for such supplier under State law. If the 
State regulatory authority does not so notify the Sec-
retary, the Secretary shall exercise such authority until re-
ceiving such notice from the State regulatory authority. 
‘‘(2) Not later than July 1 of the calendar years 
2008, 2010, 2012, 2014, and 2016, each retail electricity 
and natural gas supplier shall submit the compliance re-
port required under subsection (b) to— 
‘‘(A) the appropriate State regulatory authority, 
if such authority has notified the Secretary under 
subsection (d), or 
‘‘(B) the Secretary to determine and enforce 
compliance with the standards. 
‘‘(3) In the case of any retail electricity or natural 
gas supplier for which the Secretary is enforcing compli-
ance with the standards under this section, if such sup-
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plier fails to comply with such standards for two consecu-
tive calendar years, the Secretary shall determine the 
number of kilowatt hours of electricity savings, or therms 
of natural gas savings, by which the supplier has fallen 
short of the standards, and, by order, require such sup-
plier, after notice and opportunity for hearing, to deposit 
in an escrow account to be designated by the Secretary 
an amount equal to 3.5 cents per kilowatt hour for each 
such kilowatt hour, and 35 cents per therm for each such 
therm. The holder of such escrow account shall annually 
distribute the total amount of such account to the States 
to be used by the States for the purpose of achieving cus-
tomer electricity and natural gas savings. Any retail elec-
tricity or natural gas supplier required to make such a 
payment may, within 60 calendar days after the issuance 
of such order, bring an action in the United States Court 
of Appeals for the District of Columbia for judicial review 
of such order. Such court shall have jurisdiction to enter 
a judgment affirming, modifying, or setting aside such 
order or remanding such order in whole or in part to the 
Secretary. 
‘‘(e) INFORMATION
COLLECTION.—The Secretary 
may collect the information necessary to verify and 
audit— 
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‘‘(1) the annual electric energy sales, natural 
gas sales, electricity savings, and natural gas savings 
of any entity applying for electricity or natural gas 
savings credits under this section, 
‘‘(2) the validity of electricity or natural gas 
savings credits submitted by a retail electricity or 
natural gas supplier to the Secretary, and 
‘‘(3) the quantity of electricity and natural gas 
sales of all retail electricity and natural gas sup-
pliers. 
‘‘(f) STATE LAW.—Nothing in this section shall su-
persede or otherwise affect any State or local law requiring 
or otherwise relating to reductions in total annual elec-
tricity or natural gas energy consumption by or peak 
power consumption by electric consumers to the extent 
that such State or local law requires more stringent reduc-
tions than those required under this section. Any retail 
electricity or natural gas supplier that achieves reductions 
referred to in this section in accordance with State re-
quirements shall be entitled to full credit under this sec-
tion for such reductions to the extent that such reductions 
meet the requirements of this section and the regulations 
under this section (including verification and monitoring 
requirements). 
‘‘(g) DEFINITIONS.—For purposes of this section: 
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