I 
117TH CONGRESS 
1ST SESSION H. R. 1512 
To build a clean and prosperous future by addressing the climate crisis, 
protecting the health and welfare of all Americans, and putting the 
Nation on the path to a net-zero greenhouse gas economy by 2050, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 2, 2021 
Mr. PALLONE (for himself, Mr. TONKO, and Mr. RUSH) introduced the fol-
lowing bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committees on Transportation and Infra-
structure, Oversight and Reform, Education and Labor, Ways and 
Means, Natural Resources, Armed Services, Foreign Affairs, Science, 
Space, and Technology, Intelligence (Permanent Select), and Financial 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To build a clean and prosperous future by addressing the 
climate crisis, protecting the health and welfare of all 
Americans, and putting the Nation on the path to a 
net-zero greenhouse gas economy by 2050, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Climate Leadership 
and Environmental Action for our Nation’s Future Act’’ 
or the ‘‘CLEAN Future Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—NATIONAL CLIMATE TARGET 
Subtitle A—National Target 
Sec. 101. National goals. 
Sec. 102. Federal agency plans. 
Sec. 103. Accountability. 
Sec. 104. Clean Economy Federal Advisory Committee. 
Sec. 105. Recommendations for interim goals. 
Sec. 106. Definitions. 
Subtitle B—National Academy of Sciences Review 
Sec. 111. National Academy of Sciences review. 
TITLE II—POWER 
Subtitle A—Clean 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—Federal Energy Regulatory Reform 
PART 1—ELECTRICITY TRANSMISSION 
Sec. 211. National policy on transmission. 
Sec. 212. Review of the effectiveness of policies and incentives to encourage de-
ployment of advanced transmission technologies. 
Sec. 213. Siting of interstate electric transmission facilities. 
Sec. 214. Non-transmission alternatives. 
Sec. 215. Office of Transmission. 
Sec. 216. Identifying regional transmission needs. 
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Sec. 217. Interregional transmission planning. 
Sec. 218. Transmission siting assistance program. 
PART 2—PUBLIC INTEREST AND ENERGY MARKET REFORMS 
Sec. 220. Market barriers to clean energy development. 
Sec. 220A. Office of Public Participation. 
Sec. 220B. Public interest under the Natural Gas Act. 
Sec. 220C. Modifications to exercise of the right of eminent domain by holder 
of a certificate of public convenience and necessity. 
Subtitle C—Public Utility Regulatory Policies Act Reform 
Sec. 221. Consideration of energy storage systems. 
Sec. 222. Coordination of programs. 
Sec. 223. Promoting consideration and utilization of non-wires solutions. 
Sec. 224. Contract options for qualified facilities. 
Sec. 225. Establishment of community solar programs. 
Sec. 226. Rural and remote communities electrification grants. 
Subtitle D—Electricity Infrastructure Modernization and Resilience 
Sec. 230. 21st century power grid. 
Sec. 231. Microgrids. 
Sec. 232. Strategic transformer reserve program. 
Sec. 233. Department of Energy support to repower communities. 
Sec. 234. Environmental Protection Agency support to repower communities. 
Sec. 235. Dam safety. 
Sec. 236. Clean energy microgrid grant program. 
Subtitle E—Clean Electricity Generation 
Sec. 241. Distributed energy resources. 
Sec. 242. Grant program for solar installations located in, or that serve, low- 
income and underserved areas. 
Sec. 243. Hydropower licensing and process improvements. 
Sec. 244. Long-term nuclear power purchase agreement pilot program. 
Sec. 245. Distributed renewable energy. 
Sec. 246. Power purchase agreements. 
Sec. 247. Hydropower regulatory improvements. 
Sec. 248. Study on equitable distribution of benefits of clean energy. 
Subtitle F—Low-Income Assistance 
Sec. 251. LIHEAP authorization. 
TITLE III—EFFICIENCY 
Subtitle A—Energy Saving Building Codes 
Sec. 301. Energy saving building codes. 
Subtitle B—Existing Building Retrofits 
Sec. 311. Energy efficient public buildings. 
Sec. 312. Grants for energy efficiency improvements and renewable energy im-
provements at public school facilities. 
Subtitle C—Promoting Energy Efficiency 
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Sec. 321. Removing barriers to efficiency. 
Sec. 322. Energy Efficiency and Conservation Block Grant Program. 
Sec. 323. Nonprofit energy efficiency pilot program. 
Sec. 324. Home Wildfire Risk Reduction Rebate Program. 
Sec. 325. State energy-efficient appliance rebate program. 
Subtitle D—HOPE for HOMES 
Sec. 331. Definitions. 
PART 1—HOPE TRAINING 
Sec. 332. Notice for HOPE Qualification training and grants. 
Sec. 333. Course criteria. 
Sec. 334. HOPE Qualification. 
Sec. 335. Grants. 
Sec. 336. Authorization of appropriations. 
PART 2—HOME ENERGY SAVINGS RETROFIT REBATE PROGRAM 
Sec. 337. Establishment of Home Energy Savings Retrofit Rebate Program. 
Sec. 338. Partial system rebates. 
Sec. 339. State administered rebates. 
Sec. 340. Special provisions for moderate income households. 
Sec. 341. Evaluation reports to Congress. 
Sec. 342. Administration. 
Sec. 343. Treatment of rebates. 
Sec. 344. Authorization of appropriations. 
PART 3—GENERAL PROVISIONS 
Sec. 345. Appointment of personnel. 
Sec. 346. Maintenance of funding. 
Subtitle E—Investing in State Energy 
Sec. 351. Investing in State energy. 
Sec. 352. State energy security plans. 
Subtitle F—FEMP 
Sec. 361. Energy and water performance requirement for Federal facilities. 
Subtitle G—Open Back Better 
Sec. 371. Facilities energy resiliency. 
Sec. 372. Personnel. 
Subtitle H—Benchmarking 
Sec. 381. Definitions. 
Sec. 382. Commercial and multifamily building benchmarking and transparency 
initiative. 
Sec. 383. National benchmarking requirement. 
Sec. 384. Exemptions and extensions. 
Sec. 385. Data transparency and sharing. 
Sec. 386. Federal implementation and support. 
TITLE IV—TRANSPORTATION 
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Subtitle A—Greenhouse Gas Pollution Emission Standards 
Sec. 401. Transportation carbon management. 
Subtitle B—Cleaner Fuels 
Sec. 411. Accelerating approval of clean fuels. 
Sec. 412. Annual deadline for petitions by small refineries for exemptions from 
renewable fuel requirements. 
Sec. 413. Information in petition subject to public disclosure. 
Subtitle C—ZEV Vehicle Deployment 
Sec. 421. Reauthorization of diesel emissions reduction program. 
Sec. 422. Pilot program for the electrification of certain refrigerated vehicles. 
Sec. 423. Clean School Bus Program. 
Sec. 424. Clean Cities Coalition Program. 
Subtitle D—Zero Emissions Vehicle Infrastructure Buildout 
PART 1—ELECTRIC VEHICLE INFRASTRUCTURE 
Sec. 431. Definitions. 
Sec. 432. Electric vehicle supply equipment rebate program. 
Sec. 433. Model building code for electric vehicle supply equipment. 
Sec. 434. Electric vehicle supply equipment coordination. 
Sec. 435. State consideration of electric vehicle charging. 
Sec. 436. State energy plans. 
Sec. 437. Transportation electrification. 
Sec. 438. Federal fleets. 
PART 2—ELECTRIC VEHICLES FOR UNDERSERVED COMMUNITIES 
Sec. 440A. Expanding access to electric vehicles in underserved and disadvan-
taged communities. 
Sec. 440B. Electric vehicle charging equity program. 
Sec. 440C. Ensuring program benefits for underserved and disadvantaged com-
munities. 
Sec. 440D. Definitions. 
PART 3—ELECTRIC VEHICLE MAPPING 
Sec. 440E. Definitions. 
Sec. 440F. Electric vehicle charging station mapping program. 
Sec. 440G. Authorization of appropriations. 
Subtitle E—Promoting Domestic Advanced Vehicle Manufacturing 
Sec. 441. Domestic Manufacturing Conversion Grant Program. 
Sec. 442. Advanced technology vehicles manufacturing incentive program. 
Subtitle F—Port Electrification and Decarbonization 
Sec. 451. Definitions. 
Sec. 452. Grants to reduce air pollution at ports. 
Sec. 453. Model methodologies. 
Sec. 454. Port electrification. 
Sec. 455. Authorization of appropriations. 
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TITLE V—INDUSTRY 
Subtitle A—Industrial Technology Development, Demonstration, and 
Deployment 
Sec. 501. DOE Assistant Secretary for manufacturing and industry. 
Sec. 502. Supporting carbon dioxide geologic sequestration. 
Sec. 503. Determining reasonable prospect of repayment under title XVII loan 
program. 
Sec. 504. Clean energy manufacturing grant program. 
Subtitle B—Industrial Efficiency 
Sec. 511. Smart manufacturing leadership. 
Subtitle C—Federal Buy Clean Program 
Sec. 521. Definitions. 
Sec. 522. Embodied emissions transparency. 
Sec. 523. Reports to Congress. 
Sec. 524. Establishing buy clean standards for federally funded infrastructure 
projects. 
Sec. 525. Climate Star program. 
Subtitle D—Industrial Efficiency Incentives 
Sec. 531. Purposes. 
Sec. 532. Sustainable industry rebate program. 
Sec. 533. Industrial efficiency working group. 
TITLE VI—ENVIRONMENTAL JUSTICE 
Subtitle A—Empowering Community Voices 
Sec. 601. Definitions. 
Sec. 602. Environmental justice community technical assistance grants. 
Sec. 603. Interagency Federal Working Group on Environmental Justice. 
Sec. 604. Federal agency actions to address environmental justice. 
Sec. 605. National Environmental Justice Advisory Council. 
Sec. 606. Reducing disproportionate impacts of pollution on environmental jus-
tice communities. 
Sec. 607. Ensuring environmental justice in the disposal of hazardous waste. 
Sec. 608. Hazardous release community notification. 
Sec. 609. Environmental justice grant programs. 
Sec. 610. Environmental justice community solid waste disposal technical as-
sistance grants. 
Sec. 611. Training of employees of Federal agencies. 
Sec. 612. Environmental justice basic training program. 
Sec. 613. Environmental justice clearinghouse. 
Sec. 614. Public meetings. 
Sec. 615. Environmental justice community, State, and Tribal grant programs. 
Sec. 616. Public health risks associated with cumulative environmental 
stressors. 
Sec. 617. Climate Justice Grant Program. 
Sec. 618. Office of Energy Equity. 
Subtitle B—Restoring Regulatory Protections 
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Sec. 621. Enhancing underground injection controls for enhanced oil recovery. 
Sec. 622. Ensuring safe disposal of coal ash. 
Sec. 623. Safe hydration is an American right in energy development. 
Sec. 624. Addressing hazardous air pollution from oil and gas sources. 
Sec. 625. Closing loopholes and ending arbitrary and needless evasion of regu-
lations. 
Subtitle C—Infrastructure To Protect Communities 
Sec. 631. Climate impacts financial assurance and user fees. 
Sec. 632. Brownfields funding. 
Sec. 633. Drinking Water SRF funding. 
Sec. 634. Drinking water system resilience funding. 
Sec. 635. PFAS treatment grants. 
Sec. 636. National Priorities List cleanup. 
Sec. 637. Lead service line replacement. 
Subtitle D—Climate Public Health Protection 
Sec. 641. Sense of Congress on public health and climate change. 
Sec. 642. Relationship to other laws. 
Sec. 643. National strategic action plan and program. 
Sec. 644. Advisory board. 
Sec. 645. Climate change health protection and promotion reports. 
Subtitle E—Public Health Air Quality Infrastructure 
Sec. 651. Health emergency air toxics monitoring. 
Sec. 652. Community air toxics monitoring. 
Sec. 653. Criteria pollutant/NAAQS monitoring network. 
Sec. 654. Sensor monitoring. 
Sec. 655. Environmental health disparities research grant programs. 
Sec. 656. Definitions. 
TITLE VII—SUPER POLLUTANTS 
Subtitle A—Methane 
Sec. 701. Controlling methane emissions from the oil and natural gas sector. 
Sec. 702. Controlling flaring. 
Sec. 703. Emerging oil and natural gas greenhouse gas emission reduction 
technologies program. 
Sec. 704. Improving the natural gas distribution system. 
Sec. 705. Grants for composting and anaerobic digestion food waste-to-energy 
projects. 
Subtitle B—Black Carbon 
Sec. 711. Definitions. 
Sec. 712. Reduction of black carbon emissions. 
TITLE VIII—ECONOMYWIDE POLICIES 
Subtitle A—State Climate Plans 
Sec. 801. State Climate Plans. 
Subtitle B—Clean Energy and Sustainability Accelerator 
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Sec. 811. Clean Energy and Sustainability Accelerator. 
Subtitle C—Clean Energy Workforce 
PART 1—OFFICE OF ECONOMIC IMPACT, DIVERSITY, AND EMPLOYMENT 
Sec. 821. Name of office. 
Sec. 822. Energy workforce development programs. 
Sec. 823. Authorization. 
PART 2—ENERGY WORKFORCE DEVELOPMENT 
Sec. 824. Energy workforce development. 
Sec. 825. Energy workforce grant program. 
Sec. 826. Definitions. 
Subtitle D—National Security 
Sec. 831. Climate change national security strategy. 
Sec. 832. Coordination on climate change and national security. 
Sec. 833. Federal agency implementation plan. 
Sec. 834. Definitions. 
Subtitle E—Ensuring Just and Equitable Climate Action 
Sec. 841. Worker protections. 
Sec. 842. Funding for environmental justice communities. 
Subtitle F—Climate Risk Disclosures 
Sec. 851. Sense of Congress. 
Sec. 852. Disclosures relating to climate change. 
Sec. 853. Backstop. 
TITLE IX—WASTE REDUCTION 
Subtitle A—Clean Air 
Sec. 901. Definitions. 
Sec. 902. Clean air. 
Sec. 903. Environmental justice. 
Subtitle B—Product Standards and Producer Responsibility 
Sec. 911. Product standards and producer responsibility. 
Sec. 912. Federal procurement. 
Sec. 913. Task force on extended producer responsibility. 
Sec. 914. National Academy of Sciences review. 
Subtitle C—Zero-Waste Grants 
Sec. 921. Definitions. 
Sec. 922. Grants for zero-waste projects. 
Sec. 923. Grants for landfill diversion. 
Sec. 924. Grant applications. 
Sec. 925. Reporting. 
Sec. 926. Annual conference. 
Sec. 927. Authorization of appropriations. 
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Subtitle D—Education and Outreach 
Sec. 931. Definition of Administrator. 
Sec. 932. Consumer recycling education and outreach grant program. 
Sec. 933. Electronic waste education and awareness. 
Sec. 934. Authorization of appropriations. 
Subtitle E—Critical Minerals 
Sec. 941. Definitions. 
Sec. 942. Grants for battery collection, recycling, and reprocessing. 
Sec. 943. Best practices for collection of batteries. 
Sec. 944. Voluntary labeling program. 
Sec. 945. Task force on battery producer responsibility. 
Sec. 946. Task force on wind and solar recycling. 
Sec. 947. Studies on disposal and recycling. 
Sec. 948. Authorization of appropriations. 
TITLE X—WORKER AND COMMUNITY TRANSITION 
Sec. 1001. Definitions. 
Sec. 1002. Energy and economic transition impact studies. 
Sec. 1003. Office of Energy and Economic Transition. 
Sec. 1004. Interagency Energy and Economic Transition Task Force. 
Sec. 1005. Stakeholder Advisory Committee. 
Sec. 1006. Assistance for adversely affected communities. 
Sec. 1007. Community-based transition hub program. 
TITLE I—NATIONAL CLIMATE 
TARGET 
Subtitle A—National Target 
SEC. 101. NATIONAL GOALS. 
It is hereby declared that it is— 
(1) the national interim goal for the United 
States to achieve a minimum of a 50 percent reduc-
tion in emissions of greenhouse gases from 2005 lev-
els by not later than 2030; and 
(2) the national goal for the United States to 
achieve a 100 percent clean economy by not later 
than 2050. 
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SEC. 102. FEDERAL AGENCY PLANS. 
(a) PLAN DEVELOPMENT.—The head of each Federal 
agency shall, in accordance with this section, develop a 
plan for actions to be taken by the Federal agency, con-
sistent with the Federal agency’s mission and exclusively 
through authorities vested in the Federal agency by provi-
sions of law other than this Act, to achieve, in combination 
with the other Federal agencies, the national interim goal 
and the national goal declared by section 101. Each Fed-
eral agency’s plan shall include actions that will— 
(1) make significant and rapid progress toward 
meeting such national interim goal and national 
goal; and 
(2) constitute a substantial change from busi-
ness-as-usual policies and practices of such Federal 
agency. 
(b) ACTIONS TO MEET GOALS.— 
(1) IN GENERAL.—Actions selected by the head 
of a Federal agency to include in a plan developed 
under subsection (a) may include issuing regula-
tions, providing incentives, carrying out research and 
development programs, reducing the greenhouse gas 
emissions of such Federal agency itself, increasing 
the resilience of such Federal agency’s facilities and 
operations to climate change impacts and risks, and 
any other action the head of the Federal agency de-
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termines appropriate to achieve the national interim 
goal and the national goal declared by section 101. 
(2) SELECTION.—In selecting actions to include 
in a plan developed under subsection (a), the head 
of each Federal agency shall select actions designed 
to— 
(A) improve public health, resilience, and 
environmental outcomes, especially for rural 
and low-income households, communities of 
color, Tribal and indigenous communities, 
deindustrialized communities, and communities 
that are disproportionately vulnerable to the im-
pacts of climate change and other pollution; 
(B) provide benefits for consumers, small 
businesses, farmers and ranchers, and rural 
communities; 
(C) prioritize infrastructure investment 
that reduces emissions of greenhouse gases and 
other pollutants, creates quality jobs, and 
makes communities more resilient to the effects 
of climate change; 
(D) enhance quality job creation and raise 
labor standards across the United States econ-
omy, including removing policy barriers to labor 
union organizing, protecting labor agreements, 
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applying prevailing wage, safety and health pro-
tections, domestic content, and other provisions; 
(E) lead in clean and emerging technology 
production and manufacturing across the sup-
ply chain and align policies to ensure United 
States companies retain their competitive edge 
in a clean economy; 
(F) ensure fairness and equity for workers 
and communities affected by the transition to a 
100 percent clean economy; and 
(G) prepare communities for climate 
change impacts and risks. 
(c) PROPOSED PLAN.— 
(1) PUBLIC
COMMENT.—Not later than 6 
months after the date of enactment of this Act, the 
head of each Federal agency shall make the pro-
posed plan of the Federal agency developed under 
subsection (a) available for public comment. 
(2) INTERAGENCY REVIEW.—Not later than 9 
months after the date of enactment of this Act, the 
head of a Federal agency, after considering public 
comments and revising a proposed plan developed 
under subsection (a), as appropriate, shall submit 
the proposed plan to the Administrator for review 
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and comment. The Administrator, in consultation 
with the Secretary where appropriate, shall— 
(A) evaluate the sufficiency of each such 
proposed plan individually, and in combination 
with the proposed plans of other Federal agen-
cies, to achieve the national interim goal and 
the national goal declared by section 101; and 
(B) provide, not later than 90 days after 
receiving the proposed plan of a Federal agen-
cy, written recommendations to such Federal 
agency to ensure that the plan is individually, 
and in combination with the proposed plans of 
other Federal agencies, sufficient to achieve the 
national interim goal and the national goal de-
clared by section 101 and advance the objec-
tives listed in subsection (b)(2). 
(d) SUBMISSION.—Not later than 15 months after 
the date of enactment of this Act, the head of each Federal 
agency shall make public and submit to Congress— 
(1) a plan developed under subsection (a) that 
incorporates revisions to the proposed plan, as ap-
propriate, to address the recommendations provided 
by the Administrator under subsection (c); 
(2) the recommendations provided by the Ad-
ministrator under subsection (c); and 
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(3) recommendations of the Federal agency on 
additional authority for the Federal agency, if any, 
that would be helpful for such Federal agency, in 
combination with the other Federal agencies, to 
achieve the national interim goal and the national 
goal declared by section 101. 
(e) TECHNICAL ASSISTANCE.—The Administrator, in 
consultation with the Secretary as appropriate, shall pro-
vide technical assistance upon request by any Federal 
agency in developing or revising a plan under this section. 
(f) IMPLEMENTATION.—Beginning not later than 15 
months after the date of enactment of this Act, the head 
of each Federal agency shall implement the plan of the 
Federal agency developed under subsection (a) and sub-
mitted to Congress under subsection (d). 
(g) REVISIONS.—Not less frequently than every 24 
months after the head of a Federal agency submits to 
Congress the Federal agency’s plan under subsection (d), 
the head of such Federal agency, in consultation with the 
Administrator, shall review and revise the plan to ensure 
it is sufficient to achieve, in combination with the plans 
of the other Federal agencies, the national interim goal 
and the national goal declared by section 101. The head 
of each Federal agency shall include the conclusion of each 
such review and any revised plan resulting from such re-
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view in the next annual report required under subsection 
(h). 
(h) ANNUAL REPORT.—Not later than March 31 of 
the calendar year after the calendar year in which each 
Federal agency is required to submit to Congress a plan 
under subsection (d), and not later than March 31 of each 
year thereafter, the head of each Federal agency shall 
issue a public report on the plan of such Federal agency 
(including any revisions to such plan), actions taken by 
the Federal agency pursuant to such plan, and the effects 
of such actions, during the preceding calendar year. 
SEC. 103. ACCOUNTABILITY. 
(a) EPA REVIEW
AND REPORTS.—The Adminis-
trator shall— 
(1) monitor the overall progress of the United 
States in reducing greenhouse gas emissions and to-
ward achieving the national interim goal and the na-
tional goal declared by section 101; and 
(2) not later than September 30 of the calendar 
year after the calendar year in which each Federal 
agency is required to submit to Congress a plan 
under section 102(d), and not later than September 
30 of each year thereafter, submit to Congress and 
publish a report on such progress that includes— 
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(A) a review of how such greenhouse gas 
emissions reductions relate to the international 
commitments of the United States; and 
(B) recommendations developed under sub-
section (b). 
(b) RECOMMENDATIONS.—The Administrator shall 
include— 
(1) in each annual report submitted under sub-
section (a), as appropriate, after consulting with the 
Secretary and considering any recommendations of 
the Advisory Committee, recommendations regarding 
the rate of progress of the United States toward 
achieving the national interim goal and the national 
goal declared by section 101; and 
(2) in an appendix to each such annual report, 
the recommendations of the Advisory Committee. 
SEC. 104. CLEAN ECONOMY FEDERAL ADVISORY COM-
MITTEE. 
(a) ESTABLISHMENT.—Not later than 3 months after 
the date of enactment of this Act, the Administrator 
shall— 
(1) establish an advisory committee, to be 
known as the Clean Economy Federal Advisory 
Committee, to make recommendations described in 
subsection (c); and 
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(2) appoint the following members to the Advi-
sory Committee that reflect diversity in gender, age, 
race, and geography: 
(A) 2 members who are State officials 
from different States, including at least 1 offi-
cial from a State that has adopted greenhouse 
gas reduction targets. 
(B) 2 members who are local government 
officials from different States than the States 
represented by the members appointed pursuant 
to subparagraph (A), including— 
(i) 1 official from a city or county 
that has adopted greenhouse gas reduction 
targets; and 
(ii) 1 official from a city or county 
that is impacted by the transition away 
from fossil energy. 
(C) 1 member who represents an environ-
mental nonprofit organization with expertise in 
mitigation of greenhouse gas emissions. 
(D) 2 members who are members of envi-
ronmental justice organizations representing en-
vironmental justice communities. 
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(E) 2 members who are members of cli-
mate justice organizations representing commu-
nities on the front lines of climate change. 
(F) 2 members who are representatives of 
Tribal communities, including— 
(i) 1 member from a community im-
pacted by pollution from the fossil fuel in-
dustry; and 
(ii) 1 member from a community im-
pacted by the transition away from fossil 
energy. 
(G) 2 members who are members of the 
National Academy of Sciences and have exper-
tise in climate science. 
(H) 4 members who are employed by orga-
nized labor unions, including— 
(i) 1 member from a utility sector 
union; 
(ii) 1 member from a transportation 
sector union; 
(iii) 1 member from a manufacturing 
union; and 
(iv) 1 member from a building trades 
union. 
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(1) SUBCOMMITTEES.—The Advisory Com-
mittee may, as the Advisory Committee determines 
appropriate, establish subcommittees to provide ad-
vice to the full Advisory Committee on matters with-
in the respective subcommittee’s area of expertise. 
At a minimum, the Advisory Committee shall con-
sider establishing subcommittees on— 
(A) environmental justice; 
(B) climate justice; 
(C) fairness and equity for workers; and 
(D) the transition of communities depend-
ent upon fossil fuels. 
(2) MEETINGS.—The Advisory Committee shall 
meet not less frequently than 3 times in the first 
year after it is established, and at least annually 
thereafter. 
(3) TERMS.—A member of the Advisory Com-
mittee shall be appointed for a term of 2 years and 
the Administrator may reappoint members for no 
more than 3 consecutive terms. 
(4) VACANCIES.—Any vacancy in the Advisory 
Committee shall be filled by the Administrator in the 
same manner as the original appointment and not 
later than 180 days after the occurrence of the va-
cancy. 
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(5) CHAIR.—The Advisory Committee shall ap-
point a chair from among the members of the Advi-
sory Committee by a majority of those voting, if a 
quorum is present. 
(6) QUORUM.—A two-thirds majority of mem-
bers of the full Advisory Committee shall constitute 
a quorum. 
(7) APPLICABILITY
OF
FACA.—The Advisory 
Committee shall be subject to the Federal Advisory 
Committee Act (5 U.S.C. App.). 
(8) TERMINATION.—The Advisory Committee 
shall terminate on December 31, 2050. 
(c) RECOMMENDATIONS.— 
(1) INTERIM
GOALS.—Not later than 15 
months after the date of enactment of this Act, and 
upon the request of the Administrator thereafter, 
the Advisory Committee shall submit to the Admin-
istrator recommendations on one or more interim 
greenhouse gas emissions reduction goals for the 
United States to achieve before achieving the na-
tional goal declared by section 101(2). 
(2) ANNUAL REVIEW.—Not later than June 30 
of the calendar year after the calendar year in which 
each Federal agency is required to submit to Con-
gress a plan under section 102(d), and not later 
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than June 30 of each year thereafter, and upon the 
request of the Administrator, the Advisory Com-
mittee may provide recommendations for the Admin-
istrator to consider in developing recommendations 
to include in the annual report required under sec-
tion 103. 
(3) OTHER MATTERS.—Upon the request of the 
Administrator, or upon the Advisory Committee’s 
initiative, the Advisory Committee may provide rec-
ommendations for the Administrator to consider re-
garding any of the matters addressed by this Act. 
SEC. 105. RECOMMENDATIONS FOR INTERIM GOALS. 
(a) IN GENERAL.—Not later than 18 months after 
the date of enactment of this Act, the Administrator shall, 
after consulting with the Secretary and obtaining the rec-
ommendations of the Advisory Committee, recommend to 
Congress one or more interim greenhouse gas emissions 
reduction goals for the United States to achieve before 
achieving the national goal declared by section 101(2). In 
selecting one or more such interim goals to recommend 
to Congress, the Administrator shall consider— 
(1) the best available science on the needed 
pace of reducing greenhouse gas emissions to limit 
global warming to 1.5° Celsius; 
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(2) the international commitments by the 
United States to address climate change, so as to 
ensure that any interim goal is, at a minimum, con-
sistent with such commitments; and 
(3) the degree of progress considered necessary 
by a given date to maximize the likelihood that there 
is an economically and technically feasible path for-
ward from such date to achieve the national goal de-
clared by section 101(2). 
(b) UPDATES.—Upon request of Congress, or any 
new international commitment by the United States to ad-
dress climate change, the Administrator may recommend 
to Congress revised or additional interim goals. 
SEC. 106. DEFINITIONS. 
For purposes of this subtitle: 
(1) ADVISORY COMMITTEE.—The term ‘‘Advi-
sory Committee’’ means the Clean Economy Federal 
Advisory Committee established pursuant to section 
104. 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(3) FEDERAL
AGENCY.—The term ‘‘Federal 
agency’’ has the meaning given the term ‘‘agency’’ 
in section 551 of title 5, United States Code. 
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(4) GREENHOUSE GAS.—The term ‘‘greenhouse 
gas’’ means the heat-trapping gases for which the 
anthropogenic emissions are estimated and reported 
in the most recently issued ‘‘Inventory of U.S. 
Greenhouse Gas Emissions and Sinks’’ prepared an-
nually by the Environmental Protection Agency in 
accordance with the commitments of the United 
States under the United Nations Framework Con-
vention on Climate Change. 
(5) 100 PERCENT CLEAN ECONOMY.—The term 
‘‘100 percent clean economy’’ means, with respect to 
the United States, economywide, net-zero greenhouse 
gas emissions, or negative greenhouse gas emissions, 
after annual accounting for sources and sinks of an-
thropogenic greenhouse gas emissions consistent 
with the coverage of emissions reported by the 
United States under the United Nations Framework 
Convention on Climate Change. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
Subtitle B—National Academy of 
Sciences Review 
SEC. 111. NATIONAL ACADEMY OF SCIENCES REVIEW. 
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency shall seek to enter into an 
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agreement with the National Academy of Sciences under 
which the Academy agrees to— 
(1) conduct a study on matters concerning the 
national goal of achieving net-zero greenhouse gas 
emissions by 2050; 
(2) not later than 3 years after the date of 
entry into such agreement, complete such study and 
submit to the Congress and the Administrator a re-
port on the results of such study that includes— 
(A) the metrics by which the achievement 
of such goal should be determined; and 
(B) a method to determine progress to-
ward and success in reaching such goal; and 
(3) not later than 5 years after the submission 
of such report, submit a followup report assessing— 
(A) the effectiveness of the metrics and 
method recommended in the report pursuant to 
subparagraphs (A) and (B) of paragraph (2) in 
evaluating progress toward reaching such goal; 
(B) the implementation by the Environ-
mental Protection Agency of such metrics and 
method, and of other recommendations in such 
report; and 
(C) the progress made towards the na-
tional goal declared by section 101(2) and all 
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interim goals recommended to Congress by the 
Administrator pursuant to section 105. 
(b) TIMING
OF AGREEMENT.—The Administrator 
shall seek to enter into the agreement described in sub-
section (a) not later than 180 days after the date of enact-
ment of this Act. 
(c) REQUIREMENTS.—The study and report pursuant 
to paragraphs (1) and (2) of subsection (a) shall— 
(1) provide comprehensive metrics to measure 
lifecycle greenhouse gas emissions by sector and, 
where appropriate, major subsector, including— 
(A) industry; 
(B) electricity and heat production; 
(C) transportation; 
(D) buildings; 
(E) agriculture, forestry, and other land 
use; and 
(F) other sectors or major subsectors se-
lected by the Academy; 
(2) provide methodologies, inputs, measure-
ments, techniques, and equations to calculate 
lifecycle greenhouse gas emissions for each sector for 
which metrics are provided pursuant to paragraph 
(1) and, as the Academy deems appropriate, each 
major subsector for which such metrics are provided; 
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(3) identify limitations when evaluating and se-
lecting metrics to calculate lifecycle greenhouse gas 
emissions, and any challenges relevant to calculating 
lifecycle greenhouse gas emissions; 
(4) review and synthesize relevant existing as-
sessments of lifecycle greenhouse gas emissions for 
each sector for which metrics are provided pursuant 
to paragraph (1) and, as the Academy deems appro-
priate, each major subsector for which such metrics 
are provided, including assessments produced by— 
(A) the Intergovernmental Panel on Cli-
mate Change; 
(B) nongovernmental entities, nonprofit or-
ganizations, and academic institutions; 
(C) private actors; 
(D) domestic and international government 
actors; and 
(E) other international organizations; 
(5) assess existing metrics and methodologies 
for accounting for negative emissions and sinks; and 
(6) provide a methodology to use lifecycle 
greenhouse gas emissions metrics to determine 
sector- and major subsector-specific progress toward 
the national goal, including balancing emission 
sources, negative emissions, and sinks. 
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(d) RECOMMENDATIONS.—The study and report pur-
suant to paragraphs (1) and (2) of subsection (a) shall 
identify actions that could be taken to— 
(1) improve scientific understanding key to as-
sessing progress toward and success in achieving the 
national goal of net-zero greenhouse gas emissions 
by 2050; 
(2) improve the measurement of lifecycle green-
house gas emissions; and 
(3) improve the accounting of negative emis-
sions and sinks. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘Academy’’ means the National 
Academy of Sciences. 
(2) The term ‘‘Administrator’’ means the Ad-
ministrator of the Environmental Protection Agency. 
(3) The term ‘‘lifecycle greenhouse gas emis-
sions’’ means the aggregate quantity of greenhouse 
gas emissions (including direct emissions and signifi-
cant indirect emissions such as significant emissions 
from land-use changes), as determined by the Acad-
emy over the full lifecycle of the respective green-
house gases, across all stages of a given sector or 
major subsector’s supply chain, where the mass val-
ues for all greenhouse gases are adjusted to account 
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for their relative global warming potential and resi-
dence time. 
(4) The term ‘‘negative emissions’’ means 
greenhouse gases permanently removed from the at-
mosphere, other than biogenic removals through 
land-use and forestry practices. 
(5) The term ‘‘sinks’’ means a reservoir of 
greenhouse gases removed from the atmosphere 
through land-use and forestry practices, consistent 
with the United Nations Framework Convention on 
Climate Change (UNFCCC) national inventory ac-
counting guidelines. 
TITLE II—POWER 
Subtitle A—Clean 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). 
(3) ASSOCIATE COMPANY.—The term ‘‘associate 
company’’ has the meaning given such term in sec-
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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 of a retail elec-
tricity supplier and an electric consumer as the re-
sult of the replacement of a power source of the elec-
tric consumer that is not electric energy 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, including 
the effects of climate-carbon feedbacks for both car-
bon dioxide and the other greenhouse gas, as deter-
mined in accordance with the Fifth Assessment Re-
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port of the Intergovernmental Panel on Climate 
Change. For methane, the global warming potential 
shall include the effect of carbon dioxide from meth-
ane oxidation in the atmosphere. 
(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 Sec-
retary under section 204. 
(8) CARBON
INTENSITY
FACTOR.—The term 
‘‘carbon intensity factor’’ means— 
(A) for each calendar year through 2030, 
0.82; 
(B) for calendar year 2031, 0.736; 
(C) for calendar year 2032, 0.652; 
(D) for calendar year 2033, 0.568; 
(E) for calendar year 2034, 0.484; or 
(F) for calendar year 2035 and each cal-
endar year thereafter, 0.4. 
(9) 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). 
(10) FEDERAL
POWER
MARKETING
ADMINIS-
TRATION.—The term ‘‘Federal Power Marketing Ad-
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ministration’’ means the Bonneville Power Adminis-
tration, the Southeastern Power Administration, the 
Southwestern Power Administration, or the Western 
Area Power Administration. 
(11) GENERATING
UNIT.—The term ‘‘gener-
ating unit’’ means a unit or system of units that— 
(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. 
(12) 
GENERATOR.—The 
term 
‘‘generator’’ 
means the owner or operator of a generating unit. 
(13) GREENHOUSE
GAS.—The term ‘‘green-
house gas’’ includes each of the following: 
(A) Carbon dioxide. 
(B) Methane. 
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(C) Nitrous oxide. 
(D) Sulfur hexafluoride. 
(E) Any hydrofluorocarbon. 
(F) Any perfluorocarbon. 
(G) Nitrogen trifluoride. 
(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. 
(14) 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— 
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(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; 
(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. 
(15) 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. 
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(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 
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. 
(16) 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. 
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(B) INCLUSION.—The term ‘‘qualified low- 
carbon fuel’’ includes, subject to subparagraph 
(A)— 
(i) ammonia; and 
(ii) hydrogen. 
(17) QUALIFIED RENEWABLE BIOMASS.— 
(A) IN GENERAL.—The term ‘‘qualified re-
newable biomass’’ means— 
(i) any crop byproduct, or crop res-
idue, harvested from actively managed, or 
fallow, agricultural, nonforested land that 
was cleared before January 1, 2020, 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 
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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; 
(iii) nonhazardous algal or other 
micro-crop matter; and 
(iv) waste— 
(I) that is burned in a qualified 
combined heat and power system; and 
(II) that is— 
(aa) methane captured from 
a landfill, an animal production 
facility, or a sewage treatment 
operation; 
(bb) 
nonhazardous 
land-
scape or right-of-way trimmings; 
(cc) vegetative matter re-
moved from an area located not 
more than 200 yards from a 
building, residence, or camp-
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ground for the purpose of pro-
tecting structures from wildfire; 
(dd) any byproduct of a 
wood mill or paper mill oper-
ation, including lignin in spent 
pulping liquors, that is dem-
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. 
(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. 
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(C) OVERSIGHT.—The Administrator shall 
oversee that the aforementioned standards for 
qualified renewable biomass in subparagraphs 
(A) and (B) are adhered to, in consultation 
with the Secretary of Agriculture and the Sec-
retary of the Interior, as appropriate. 
(D) EMISSIONS.—Processing or combus-
tion of qualified renewable biomass should not 
result 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 listed 
pursuant to section 112(b) of the Clean 
Air Act (42 U.S.C. 7412). 
(18) 
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; 
(ii) gas produced from the gasification 
or pyrolization of post-recycled municipal 
solid waste; 
(iii) biogas; 
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(iv) landfill methane; 
(v) animal waste or animal byprod-
ucts; 
(vi) food waste; 
(vii) if diverted from or separated 
from other waste out of a municipal waste 
stream— 
(I) paper products that are not 
commonly recyclable; 
(II) vegetation; 
(III) tree trimmings; 
(IV) solid-wood yard waste, pal-
lets, or crates; or 
(V) manufacturing and construc-
tion debris; or 
(viii) any byproduct of a wood or 
paper mill operation, including lignin in 
spent pulping liquors; and 
(B) at a facility that the Administrator has 
certified, within the past 18 months, is— 
(i) in compliance with all applicable 
Federal and State environmental permits; 
and 
(ii) in the case of a facility that com-
mences operation before the date of enact-
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ment of this subtitle, in compliance with 
emission standards under sections 112 
and, as applicable, 129 of the Clean Air 
Act (42 U.S.C. 7412, 7429) that apply as 
of the date of enactment of this subtitle to 
new facilities within the applicable source 
category. 
(19) 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. 
(20) 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)). 
(21) 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. 
(22) ZERO-EMISSION ELECTRICITY.—The term 
‘‘zero-emission electricity’’ means the fraction of the 
electric energy generated by a given generating unit 
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whose generation is not associated with the release 
of greenhouse gases to the atmosphere. The number 
of megawatt-hours of zero-emission electricity of a 
given generating unit is equal to the product ob-
tained by multiplying— 
(A) the qualified electricity generation of 
the generating unit; by 
(B) the extent to which the operation of 
the generating unit results in fewer greenhouse 
gas emissions than an efficient coal-burning 
power plant, which is 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) the carbon intensity factor. 
(23) 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.—Ex-
cept as otherwise provided in this section, effective 
beginning with calendar year 2023, for each cal-
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endar 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— 
(A) for each of calendar years 2023 and 
2024, the quantity of zero-emission electricity 
credits determined under paragraph (3) for the 
retail electricity supplier for such calendar year; 
and 
(B) for calendar year 2025 and each cal-
endar year thereafter, the average of the quan-
tity of zero-emission electricity credits deter-
mined under paragraph (3) for the retail elec-
tricity supplier for such calendar year and the 
two prior calendar years. 
(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 another political sub-
division of a State, an electric cooperative that has 
an obligation to serve such retail electricity supplier, 
or a generator to assign any reporting or compliance 
obligation under this title to such other political sub-
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division of a State, electric cooperative, or generator. 
An assignment made under this paragraph shall be 
established 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— 
(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) 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. 
(C) EXCEPTION.— 
(i) IN
GENERAL.—Notwithstanding 
anything to the contrary in this section, 
beginning with calendar year 2031, the 
Administrator shall defer for one calendar 
year increasing the required minimum per-
centage of zero-emission electricity as set 
forth in clauses (iii) through (vii) of para-
graph (5)(C) for a retail electricity supplier 
if the retail electricity supplier submits an 
alternative compliance payment in lieu of 
more than 10 percent of the quantity of 
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zero-emission electricity credits due pursu-
ant to this section in both calendar year 
2029 and calendar year 2030, or any two 
consecutive calendar years thereafter. 
(ii) EXTENDED SCHEDULE.—If a re-
tail electricity supplier receives a deferral 
pursuant to clause (i), the minimum per-
centage of zero-emission electricity as set 
forth in clauses (iii) through (vii) of para-
graph (5)(C) shall be each be extended by 
one calendar year. 
(iii) 
SAVINGS
CLAUSE.—Notwith-
standing clauses (i) and (ii), the required 
minimum percentage of zero-emission elec-
tricity set forth in paragraph (5)(C)(vii) 
shall not be deferred beyond calendar year 
2040. 
(iv) ELECTRIC
UTILITY
BILL
PAY-
MENT ASSISTANCE.—If the Administrator 
issues a deferral pursuant to clause (i), the 
Administrator shall, notwithstanding any-
thing to the contrary in section 205, award 
under section 205(b) an amount of money 
equal to 25 percent of the total amount 
paid by a retail electricity supplier as alter-
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native compliance payments in the two 
years that triggered the deferral. Such 
sums shall be paid awarded for the sole 
purpose of assisting consumers of the re-
tail electricity supplier with their electric 
utility bill pursuant to terms established by 
the Administrator. 
(4) DEFINITIONS.—In this subsection: 
(A) 2020S
ANNUAL
PERCENTAGE
IN-
CREASE.—The term ‘‘2020s annual percentage 
increase’’ means, with respect to a retail elec-
tricity supplier, the product obtained by multi-
plying— 
(i) the difference between 80 percent 
and the baseline zero-emission electricity 
percentage; by— 
(ii) 1⁄7. 
(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 
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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 
(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 
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Administrator of its election under clause 
(ii) not later than 180 days after the date 
of enactment of this Act. 
(C) MINIMUM PERCENTAGE OF ZERO-EMIS-
SION ELECTRICITY.—The term ‘‘minimum per-
centage of zero-emission electricity’’ means, 
with respect to a retail electricity supplier— 
(i) for calendar year 2023, the base-
line zero-emission electricity percentage; 
(ii) for each of calendar years 2024 
through 2030, 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 2020s annual percentage 
increase; 
(iii) for calendar year 2031, 84 per-
cent; 
(iv) for calendar year 2032, 88 per-
cent; 
(v) for calendar year 2033, 92 per-
cent; 
(vi) for calendar year 2034, 96 per-
cent; and 
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(vii) for calendar year 2035 and each 
calendar year thereafter, 100 percent. 
(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.— 
(1) IN GENERAL.—A retail 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 pur-
suant to subparagraph (2). 
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(2) CALCULATION.—The Administrator shall 
calculate the alternative compliance payment under 
subparagraph (1) for each calendar year as follows: 
(A) For calendar year 2023, the alter-
native compliance payment shall be $40. 
(B) For calendar year 2024 and each cal-
endar year thereafter, the Administrator shall— 
(i) increase the prior calendar year 
amount by 3 percent; and 
(ii) adjust for inflation. 
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; 
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(B) direct sales; or 
(C) other transactional arrangements that 
sell electric energy or generating capacity either 
separately or combined with the transfer of 
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. 
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(2) ADMINISTRATION.—In making a delegation 
under paragraph (1), the Administrator shall ensure 
that the tracking and reporting of information con-
cerning the dispatch of zero-emission electricity gen-
eration is transparent, verifiable, and independent of 
any interests 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 
the calendar year for which the zero-emission electricity 
credit is issued and the subsequent 3 calendar years. 
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 
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electricity credits for such generation that is equal to the 
product obtained by multiplying— 
(1) the qualified electricity generation of the 
generator during such calendar year; by 
(2) the number that equals— 
(A) 1.0; less 
(B) the quotient obtained by dividing— 
(i) the average carbon intensity of the 
generating units of such generator for such 
calendar year, as determined in accordance 
with subsection (c); by 
(ii) the carbon intensity factor. 
(c) GENERAL RULES ON DETERMINING CARBON IN-
TENSITY.—Notwithstanding any other provision of this 
section, the Administrator shall determine the carbon in-
tensity of each generating unit of a generator. Such deter-
mination 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 
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(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 
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 described under paragraph (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 
fossil fuel, the Administrator shall account for 
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the following emissions as if emitted directly by 
the generating unit: 
(i) The carbon dioxide emissions of 
the generating unit. 
(ii) With respect to the amount of 
carbon dioxide and methane emissions that 
occur during extraction, flaring, proc-
essing, transmission, and transportation of 
the fossil fuel— 
(I) the average amounts of car-
bon dioxide and methane emissions, in 
terms of carbon dioxide equivalent, as-
sociated with such fossil fuel in the 
United States; or 
(II) with respect to a generator 
that the Administrator determines 
under subparagraph (B) has dem-
onstrated that the fossil fuel con-
sumed by such generator is associated 
with the release of smaller amounts of 
carbon dioxide and methane emissions 
than the amounts described in sub-
clause (I), such smaller amounts. 
(B) DETERMINATION.— 
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(i) IN
GENERAL.—In determining 
both the average amount of emissions asso-
ciated with a fossil fuel in the United 
States and the emissions of each gener-
ating unit using fossil fuel under subpara-
graph (A), the Administrator shall utilize 
the best available science, including with 
respect to the measurement of low-fre-
quency high-emission events, including 
data from the detection of natural gas flar-
ing from the satellite observations of the 
National Oceanic and Atmospheric Admin-
istration. 
(ii) DETERMINATION FACTORS.—The 
Administrator may determine that a gener-
ator has demonstrated that the fossil fuel 
consumed by such generator is associated 
with the release of smaller amounts of car-
bon dioxide and methane emissions than 
the amounts described in subparagraph 
(A)(ii)(I) if the demonstration— 
(I) relies on the detection of fugi-
tive and routine emissions from the 
applicable facilities through the use of 
continuous monitoring devices oper-
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ated by one or more independent par-
ties; 
(II) relies on measurements that 
occur on a continuing basis and no 
less frequently than once per day; 
(III) relies on measurements that 
are capable of detecting methane 
emissions at least as small as one 
gram of methane per second; and 
(IV) accounts for low-frequency, 
high-emission events. 
(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. 
(C) STANDARDS.—The Administrator shall 
promulgate the standards for measurement nec-
essary to implement subparagraphs (A) and (B) 
not less than 2 years after the date of enact-
ment of this subtitle and shall update such 
standards every 5 years thereafter, based on the 
best available science and technology, including 
by increasing the level of frequency required 
under subparagraph (B)(i)(II) and decreasing 
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the lower detection limit required under sub-
paragraph (B)(i)(III). 
(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-
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 product obtained by multi-
plying— 
(I) the number of megawatt- 
hours of electric energy generated by 
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the qualified combined heat and power 
system during such calendar year; by 
(II) the number that equals— 
(aa) 1.0; less 
(bb) the quotient obtained 
by dividing— 
(AA) the carbon inten-
sity of the qualified com-
bined heat and power sys-
tem; by 
(BB) the carbon inten-
sity factor; 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-
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ator, as determined by the Adminis-
trator. 
(B) ADDITIONAL CREDITS.—In addition to 
zero-emission electricity credits issued under 
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— 
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(A) the qualified electricity generation of 
the generator using qualified renewable biomass 
during such calendar year; by 
(B) the average carbon intensity of the 
generating units of the generator that use 
qualified renewable biomass. 
(3) QUALIFIED
WASTE-TO-ENERGY.—The Ad-
ministrator shall issue to a generator generating 
zero-emission electricity during a calendar year that 
is qualified waste-to-energy a quantity of zero-emis-
sion electricity credits for such generation that is 
equal to the product obtained by multiplying— 
(A) the qualified waste-to-energy of the 
generator that is qualified electricity generation 
during such calendar year; by 
(B) the average carbon intensity of the 
generating units of the generator used to gen-
erate qualified waste-to-energy. 
(4) QUALIFIED LOW-CARBON FUELS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (C), the Administrator shall issue 
to a generator generating zero-emission elec-
tricity during a calendar year using qualified 
low-carbon fuels a quantity of zero-emission 
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electricity credits for such generation that is 
equal to the product obtained by multiplying— 
(i) the qualified electricity generation 
of the generator using qualified low-car-
bon-fuels during such calendar 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 from 
electric energy for which a generator is issued 
a zero-emission electricity credit under this 
title. 
(5) CARBON CAPTURE, STORAGE, AND UTILIZA-
TION.— 
(A) DEFINITIONS.—In this paragraph, the 
term ‘‘qualified carbon oxide’’ has the meaning 
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given the term in section 45Q of the Internal 
Revenue Code of 1986. 
(B) QUANTITY
OF
CREDITS.—Except as 
otherwise provided in this section, the Adminis-
trator shall, with respect to a given calendar 
year, issue to a generator a quantity of zero- 
emission electricity credits for the capture and 
storage or utilization of qualified carbon oxide 
from a waste stream of the generator that is 
equal to the product obtained by multiplying— 
(i) the qualified electricity generation 
of the generator during such calendar year; 
by 
(ii) the difference between— 
(I) 1.0; and 
(II) the quotient obtained by di-
viding— 
(aa) the carbon intensity of 
the generator; by 
(bb) the carbon intensity 
factor. 
(6) DIRECT AIR CAPTURE OF CARBON DIOX-
IDE.— 
(A) QUANTITY OF CREDITS.—The Admin-
istrator shall issue to an entity that captures 
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carbon dioxide from the atmosphere and 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 
stored or utilized. 
(B) SPECIAL RULES.— 
(i) REGULATIONS.—Subject to clause 
(ii), not later than 1 year after the date of 
enactment of this Act, the Administrator 
shall promulgate regulations establishing— 
(I) the conditions under which 
carbon dioxide may be safely and per-
manently stored for purposes of 
issuing zero-emission electricity cred-
its under this paragraph; 
(II) the methods and processes 
by which carbon dioxide may be uti-
lized in a manner that ensures the re-
moval of the carbon dioxide safely and 
permanently from the atmosphere, in-
cluding utilization in the production of 
substances, such as plastics and 
chemicals; and 
(III) requirements to account, in 
issuing zero-emission electricity cred-
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its under this section, for the risk that 
some fraction of the carbon dioxide in-
tended for permanent storage or utili-
zation may nevertheless be emitted 
into the atmosphere. 
(ii) EXISTING
REQUIREMENTS.—In 
promulgating regulations pursuant to this 
subparagraph, the Administrator shall in-
corporate any existing requirements for the 
permanent geologic storage of carbon diox-
ide, including any requirements promul-
gated under section 45Q of the Internal 
Revenue Code of 1986. 
(C) AVOIDING
DOUBLE
COUNTING.—The 
Administrator shall seek to ensure that direct 
air capture activities receiving a credit under 
this paragraph are not used for compliance with 
an obligation to reduce or avoid greenhouse gas 
emissions, or increase greenhouse gas seques-
tration, under another Federal, State, foreign, 
or international regulatory system. 
(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 
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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, 
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. 
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(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 conveyed to the retail electricity 
supplier that is purchasing the electricity. 
(k) LABOR STANDARDS REQUIREMENTS.— 
(1) CONSTRUCTION
OF
NEW
GENERATING 
UNITS.— 
(A) IN
GENERAL.—The Administrator 
shall take such action as may be necessary to 
insure that all laborers and mechanics employed 
by contractors or subcontractors for the con-
struction of a generating unit shall be paid 
wages at rates not less than those prevailing for 
the same type of work on similar construction 
in the locality as determined by the Secretary 
of Labor in accordance with subchapter IV of 
chapter 31 of title 40, United States Code. 
With respect to the labor standards specified in 
this section, the Secretary of Labor shall have 
the authority and functions set forth in Reorga-
nization Plan Numbered 14 of 1950 (64 Stat. 
1267; 5 U.S.C. App.) and section 3145 of title 
40, United States Code. 
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(B) PROHIBITION.—Notwithstanding any-
thing to the contrary in this subtitle, the Ad-
ministrator shall not issue a zero-emission elec-
tricity credit for generation from a generating 
unit unless prevailing wages were paid for the 
construction of such generating unit as set 
forth in subparagraph (A). 
(C) APPLICABILITY.—This subsection ap-
plies to any generating unit the construction of 
which commences on or after six months after 
the date of enactment of this subtitle. 
(2) OPERATION AND MAINTENANCE OF GENER-
ATING UNITS.— 
(A) IN
GENERAL.—Notwithstanding any-
thing to the contrary in this subtitle, the Ad-
ministrator shall not issue zero-emission elec-
tricity credits for generation from a generating 
unit unless the owner and operator of such gen-
erating unit, including all contractors and sub-
contractors, remains neutral with respect to the 
exercise of employees and labor organizations of 
the right to organize and bargain under the Na-
tional Labor Relations Act (29 U.S.C. 151 et 
seq.). 
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(B) PROHIBITION.—Notwithstanding any-
thing to the contrary in this subtitle, the Ad-
ministrator shall not issue a zero-emission elec-
tricity credit to a generator not in compliance 
with the requirements of this subsection. 
(3) RULEMAKING.—Not later than 18 months 
after the date of enactment of this subtitle, the Ad-
ministrator, after consultation with the Secretary of 
Labor, shall promulgate regulations implementing 
the requirements of this subsection, including provi-
sions for verification of ongoing compliance with 
such requirements. requiring adoption and compli-
ance with such labor standards as the Administrator 
determines appropriate in order for generators to re-
ceive the full amount of the zero-emission electricity 
credits for which they are otherwise eligible. 
(l) STUDY ON LINE LOSS.— 
(1) IN GENERAL.—The Administrator shall con-
duct a study to evaluate any potential need to ac-
count for the losses in electricity from transmission 
and storage between generating units and retail elec-
tricity suppliers. 
(2) REPORT TO CONGRESS.—The Administrator 
shall submit a report to the Committee on Energy 
and Commerce on the results of the study required 
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by this subsection by not later than September 30, 
2028. The report shall include an evaluation of the 
potential effect, if any, of any such losses on the re-
quirements of this subtitle to reach 100 percent 
zero-emission electricity by 2035. 
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(c); and 
(B) collected as a civil penalty under sec-
tion 209. 
(4) EXPENDITURES.—Amounts in the Carbon 
Mitigation Fund shall be available without further 
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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) improvement to the energy efficiency 
of existing facilities and devices; 
(B) the replacement of natural gas space 
heaters, natural gas water heaters, and natural 
gas stoves, with electric appliances; 
(C) the replacement of fossil fuel-powered 
vehicles owned by State and local agencies with 
electric vehicles or other low-carbon fuel vehi-
cles; 
(D) the replacement of fossil fuel-powered 
ground airport and seaport vehicles with electric 
vehicles or other low-carbon fuel vehicles; 
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(E) installation of fast charging stations 
for electric vehicles along highways and other 
public roads in urban areas and rural areas; 
(F) beneficial electrification-related reduc-
tions not otherwise identified in this paragraph; 
(G) direct air capture and permanent se-
questration or utilization of carbon dioxide; 
(H) any activity that is endorsed by a gen-
erator or a retail electricity supplier that avoids 
emissions of greenhouse gases or removes car-
bon dioxide from the atmosphere; and 
(I) improvement to the electrical grid that 
facilitates increased zero-emission electricity 
generation or improves energy efficiency. 
(3) EXCLUSIONS.—The Administrator may not 
award funds to an entity under the program carried 
out pursuant to this subsection for any activity for 
which the entity has been issued a zero-emission 
electricity credit. 
(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 
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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 
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 aligns with the Sustainable Development 
Goals of the United Nations, including being 
consistent with the conservation of biological di-
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versity and natural ecosystems (including for-
ests and grasslands), and shall maintain eco-
system services and enhance 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 in a manner specified 
by the Administrator; 
(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; or 
(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 amount 
identified under subparagraph (C); 
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(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) 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. 
(B) 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. 
(C) 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 under section 9512 of the Internal Rev-
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enue Code of 1986 for activities described in 
proposals identified under subparagraph (B). 
(7) AWARDS TO MOST COST-EFFECTIVE ACTIVI-
TIES.—The Administrator shall award funds to enti-
ties for activities described in proposals identified 
under paragraph (6)(B)— 
(A) beginning by awarding funds to the 
entity submitting such a proposal with the low-
est bid amount identified pursuant to para-
graph (5)(D); and 
(B) then awarding funds to entities se-
quentially by entity submitting such a proposal 
with the next lowest bid amount so identified 
until all funds are awarded. 
(c) CONSULTATION.—The Administrator shall con-
sult with the Secretary of the Interior and the Secretary 
of Agriculture in promulgating regulations to measure, 
monitor, and verify any natural sequestration activities 
awarded under this section. 
SEC. 206. STATE PROGRAMS. 
(a) SAVINGS PROVISION.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), nothing in this subtitle affects the author-
ity of a State or a political subdivision of a State to 
adopt or enforce any law or regulation relating to— 
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(A) clean energy or renewable energy; 
(B) the regulation of a retail electricity 
supplier; or 
(C) greenhouse gas emissions 
(2) FEDERAL LAW.—No law or regulation of a 
State or a political subdivision of a State may relieve 
a retail electricity supplier from compliance with an 
applicable requirement of this title. 
(b) COORDINATION.—The Administrator, in con-
sultation with States that have clean energy programs or 
renewable energy programs in effect, shall facilitate, to the 
maximum extent practicable, coordination between the im-
plementation of this subtitle and the relevant State clean 
energy program or renewable energy program. 
(c) MORE STRINGENT STATE CLEAN ENERGY PRO-
GRAMS.— 
(1) DETERMINATION.— 
(A) IN GENERAL.—The Administrator, in 
consultation with States that have State clean 
energy programs or renewable energy programs 
in effect, shall determine whether each such 
State is implementing a more stringent State 
clean energy program. 
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(B) DEADLINES.—The Administrator shall 
make a determination under subparagraph 
(A)— 
(i) not later than January 1, 2022, 
with respect to a State clean energy or re-
newable energy program in effect on the 
date of enactment of this Act, and every 5 
years thereafter; and 
(ii) not later than 6 months after the 
date of the enactment by a State, after the 
date of enactment of this Act, of a new or 
modified existing clean energy or renewable 
energy program, and every 5 years there-
after. 
(C) PERIOD.—A determination under this 
paragraph shall be effective until the earlier 
of— 
(i) the date that is 5 years after the 
date of the determination; or 
(ii) the date on which the Adminis-
trator makes a subsequent determination 
under this paragraph with respect to the 
applicable State program. 
(2) DEEMED
COMPLIANCE.—If the Adminis-
trator determines, under paragraph (1), that a State 
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has a more stringent State clean energy program, a 
retail electricity supplier that is subject to and in 
compliance with such more stringent State clean en-
ergy program shall be deemed to be in compliance 
with the requirements of this title for the period 
during which the determination is effective. 
(3) PROHIBITION
AGAINST
DOUBLE-COUNT-
ING.—The Administrator, in consultation with 
States implementing a more stringent State clean 
energy program, shall promulgate regulations pro-
hibiting the issuance of a zero-emission electricity 
credit under this subtitle for an amount of electric 
energy for which one or more State clean energy 
credits are issued under, and used for compliance 
with, a more stringent State clean energy program. 
(d) QUALIFIED ELECTRICITY GENERATION ELIGI-
BLE IN BOTH STATE AND FEDERAL PROGRAMS.—The 
Administrator shall not refuse to issue or accept submis-
sion of a zero-emission electricity credit because the same 
megawatt-hour of zero-emission electricity associated with 
such credit is also used for compliance with a State law 
in a State that does not have a more stringent State clean 
energy program. 
(e) DEFINITIONS.—In this section: 
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(1) STATE CLEAN ENERGY CREDIT.—The term 
‘‘State clean energy credit’’ means a certificate cor-
responding to the electricity generated from renew-
able or other zero-emission electricity sources that is 
issued under a law enacted by a State. 
(2) MORE STRINGENT STATE CLEAN ENERGY 
PROGRAM.—The term ‘‘more stringent State clean 
energy program’’ means a law of a State that— 
(A) is demonstrated to the satisfaction of 
the Administrator to result in a greater per-
centage of qualified energy deployment than 
would be achieved in the State under this sub-
title over a 5-year period; and 
(B) includes compliance mechanisms, in-
cluding the imposition of penalties, that are at 
least as effective in enforcing compliance as the 
system of enforcement under this title. 
SEC. 207. REPORT TO CONGRESS. 
Not later than January 1, 2034, the Administrator 
shall submit a report to Congress with an evaluation and 
a forecast of the remaining barriers to achieving 100 per-
cent generation of electric energy with no emissions of car-
bon dioxide by calendar year 2035. 
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SEC. 208. INFORMATION COLLECTION. 
The Administrator may require any retail electricity 
supplier, generator, or other entity that the Administrator 
determines appropriate, to submit to the Administrator 
any information the Administrator determines to be ap-
propriate to carry out this subtitle. 
SEC. 209. CIVIL PENALTIES. 
(a) IN GENERAL.—Subject to subsection (b)— 
(1) a retail electricity supplier that fails to meet 
the requirements of section 202 shall be subject to 
a civil penalty in an amount equal to the product ob-
tained by multiplying— 
(A) the aggregate quantity of zero-emis-
sion electricity credits that the retail electricity 
supplier failed to submit for the calendar year 
to comply with section 202; by 
(B) 300 percent of the amount of alter-
native compliance payment for the calendar 
year, as determined under section 202(c); and 
(2) an entity required to submit information 
pursuant to section 208 that violates such section by 
failing to submit the information, or submitting false 
or misleading information, shall be subject to a civil 
penalty of $25,000 for each day during which such 
violation continues. 
(b) WAIVERS AND MITIGATION.— 
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Subtitle B—Federal Energy 
Regulatory Reform 
PART 1—ELECTRICITY TRANSMISSION 
SEC. 211. NATIONAL POLICY ON TRANSMISSION. 
It is the policy of the United States that— 
(1) the planning, siting, permitting, and oper-
ation of a modernized and integrated bulk electricity 
transmission system should facilitate a reliable, resil-
ient, and decarbonized electricity supply and enable 
national greenhouse gas emissions reductions; 
(2) electric grid system planning should take 
into account all significant demand-side and supply- 
side options, including energy efficiency, distributed 
and localized electricity generation, smart grid tech-
nologies and practices, demand response, energy 
storage, advanced transmission technologies that in-
crease capacity or efficiency of existing transmission 
facilities, voltage regulation technologies, high capac-
ity conductor and superconductor technologies, un-
derground transmission technologies, and new con-
ventional electric transmission capacity and cor-
ridors; 
(3) the public interest is served by overcoming 
regulatory and jurisdictional barriers to coordinated 
and cost-effective investments in the Nation’s elec-
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tric grid system that enable deployment of cost-effec-
tive clean energy resources; and 
(4) the Federal Government, through the De-
partment of Energy, the Federal Energy Regulatory 
Commission, and other relevant agencies, and the 
national laboratories, should facilitate and advance 
cost-effective investments in the Nation’s electric 
grid system, including the bulk electricity trans-
mission system, to enhance reliability, resiliency, and 
access to clean energy resources by— 
(A) accounting for a broad range of quan-
tifiable benefits, including reduction in delivered 
cost of energy, improved reliability and resil-
ience, reduced emissions of criteria air pollut-
ants, and contribution to decarbonizing the 
electric sector; 
(B) promoting cost allocation methodolo-
gies that transparently allocate costs based on 
accrued benefits and that account for broad and 
varied benefits offered by interregional and re-
gional transmission solutions; and 
(C) prioritizing regional and interregional 
projects that provide access to demand for clean 
energy resources. 
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SEC. 212. REVIEW OF THE EFFECTIVENESS OF POLICIES 
AND INCENTIVES TO ENCOURAGE DEPLOY-
MENT OF ADVANCED TRANSMISSION TECH-
NOLOGIES. 
Not later than 1 year after the date of enactment 
of this Act, the Federal Energy Regulatory Commission 
shall carry out a review of, and submit to Congress a re-
port— 
(1) describing its progress, pursuant to the rule 
issued under section 219 of the Federal Power Act 
(16 U.S.C. 824s), in encouraging deployment of 
transmission technologies and other measures, in-
cluding dynamic line ratings, flow control devices, 
and network topology optimization, to increase the 
capacity and efficiency of existing transmission fa-
cilities and improve the operation of the facilities; 
and 
(2) that includes an evaluation of how such 
rule, and any other applicable rule or policy of the 
Commission, could be modified to encourage greater 
deployment of such transmission technologies and 
other measures. 
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SEC. 213. SITING OF INTERSTATE ELECTRIC TRANSMISSION 
FACILITIES. 
(a) DESIGNATION OF NATIONAL INTEREST ELEC-
TRIC TRANSMISSION CORRIDORS.—Section 216(a) of the 
Federal Power Act (16 U.S.C. 824p(a)) is amended— 
(1) in the heading, by striking ‘‘DESIGNATION 
OF NATIONAL INTEREST ELECTRIC TRANSMISSION 
CORRIDORS’’ and inserting ‘‘DESIGNATION OF HIGH 
PRIORITY INTERSTATE TRANSMISSION CORRIDORS’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘the date of enactment of 
this section’’ and inserting ‘‘the date of enact-
ment of the CLEAN Future Act,’’; and 
(B) by striking ‘‘congestion’’ and inserting 
‘‘congestion, with a particular focus on the inte-
gration of renewable energy resources’’; 
(3) in paragraph (2)— 
(A) by striking ‘‘issue a report’’ and insert-
ing ‘‘, at least once every 3 years, issue a re-
port’’; 
(B) by striking ‘‘designate’’ and inserting 
‘‘designate as a high priority interstate trans-
mission corridor’’; and 
(C) by striking ‘‘experiencing electric en-
ergy transmission capacity constraints or con-
gestion that adversely affects consumers as a 
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national interest electric transmission corridor.’’ 
and inserting the following: ‘‘that— 
‘‘(A) is experiencing electric energy trans-
mission capacity constraints or congestion that ad-
versely affects consumers; or 
‘‘(B) could be used to improve the integration 
of renewable energy resources.’’; 
(4) in paragraph (4)— 
(A) by striking ‘‘national interest electric 
transmission corridor’’ and inserting ‘‘high pri-
ority interstate transmission corridor’’; 
(B) in subparagraph (D), by striking the 
‘‘and’’ at the end; 
(C) in subparagraph (E), by striking ‘‘se-
curity.’’ and inserting ‘‘security;’’; and 
(D) by adding at the end the following: 
‘‘(F) the designation would improve the integra-
tion of renewable energy resources; and 
‘‘(G) the designation would result in a reduction 
in the cost to purchase electric energy for con-
sumers.’’; and 
(5) by adding at the end the following: 
‘‘(5) In determining the boundary of a geographic 
area to be designated as a high priority interstate trans-
mission corridor under paragraph (2), the Commission 
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shall only designate the smallest geographic area pos-
sible.’’. 
(b) CONSTRUCTION PERMIT.—Section 216(b) of the 
Federal Power Act (16 U.S.C. 824p(b)) is amended to 
read as follows: 
‘‘(b) CONSTRUCTION
PERMIT.—The Commission 
may, after notice and an opportunity for hearing, issue 
one or more permits for the construction or modification 
of electric transmission facilities in a high priority inter-
state transmission corridor designated by the Secretary 
under subsection (a) if the Commission finds that— 
‘‘(1)(A) a State in which the transmission fa-
cilities are to be constructed or modified does not 
have authority to— 
‘‘(i) approve the siting of the facilities; or 
‘‘(ii) consider the interstate benefits ex-
pected to be achieved by the proposed construc-
tion or modification of transmission facilities in 
the State; 
‘‘(B) the applicant for a permit is a transmit-
ting utility under this Act but does not qualify to 
apply for a permit or siting approval for the pro-
posed project in a State because the applicant does 
not serve end-use customers in the State; or 
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‘‘(C) a State commission or other entity that 
has authority to approve the siting of the facilities 
has— 
‘‘(i) not approved or denied an application 
seeking approval pursuant to applicable law by 
the date that is 1 year after the filing of the 
application or 1 year after the designation of 
the relevant high priority interstate trans-
mission corridor, whichever is later; 
‘‘(ii) conditioned its approval in such a 
manner that the proposed construction or modi-
fication will not significantly reduce trans-
mission congestion in interstate commerce or is 
not economically feasible; or 
‘‘(iii) denied an application seeking ap-
proval pursuant to applicable law; and 
‘‘(2) the applicant for a permit sufficiently con-
sidered using a non-transmission alternative (as de-
fined in section 224) for purposes of addressing the 
needs of the proposed electric transmission facility.’’. 
(c) COORDINATION OF FEDERAL AUTHORIZATIONS 
FOR TRANSMISSION FACILITIES.—Section 216(h) of the 
Federal Power Act (16 U.S.C. 824p(h)) is amended— 
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(1) in paragraph (7)(B)(i), by striking ‘‘date of 
enactment of this section’’ and inserting ‘‘date of en-
actment of the CLEAN Future Act’’; and 
(2) in paragraph (7)(A), by striking ‘‘this sec-
tion’’ and inserting ‘‘the CLEAN Future Act’’. 
(d) INTERSTATE COMPACTS.—Subsection (i)(4) of 
section 216 of the Federal Power Act (16 U.S.C. 824p) 
is amended by striking ‘‘the members of the compact are 
in disagreement and the Secretary makes, after notice and 
an opportunity for a hearing, the finding described in sub-
section (b)(1)(C)’’ and inserting ‘‘the Secretary finds that 
the members of the compact are in disagreement after the 
date that is 1 year after the filing of an application for 
the facility or 1 year after the designation of the relevant 
high priority interstate transmission corridor, whichever is 
later’’. 
SEC. 214. NON-TRANSMISSION ALTERNATIVES. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 224. NON-TRANSMISSION ALTERNATIVES. 
‘‘(a) IN GENERAL.—In carrying out sections 205 and 
206, the Commission— 
‘‘(1) may consider the allocation of costs associ-
ated with non-transmission alternatives for the pur-
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poses of permitting cost recovery through trans-
mission rates; and 
‘‘(2) shall allow costs associated with non-trans-
mission alternatives to be included in transmission 
rates and subject to regional cost allocation. 
‘‘(b) IMPLEMENTATION.—In implementing this sec-
tion, the Commission shall ensure that any cost allocation 
provisions for non-transmission alternatives are just and 
reasonable, including by prohibiting any double-recovery 
of costs. 
‘‘(c) NON-TRANSMISSION ALTERNATIVE DEFINED.— 
In this section, the term ‘non-transmission alternative’— 
‘‘(1) means a resource that— 
‘‘(A) defers or eliminates the need for new 
transmission facilities; and 
‘‘(B) does not provide transmission service; 
‘‘(2) includes— 
‘‘(A) an electric storage device, if used as 
a replacement for transmission service; 
‘‘(B) energy efficiency; and 
‘‘(C) demand response; and 
‘‘(3) does not include traditional generation re-
sources.’’. 
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SEC. 215. OFFICE OF TRANSMISSION. 
Part III of the Federal Power Act (16 U.S.C. 825 
et seq.) is amended by inserting after section 317 the fol-
lowing: 
‘‘SEC. 318. OFFICE OF TRANSMISSION. 
‘‘(a) ESTABLISHMENT.—There shall be established in 
the Commission an office to be known as the Office of 
Transmission. 
‘‘(b) DIRECTOR.—The Office of Transmission shall 
be administered by a Director who shall be appointed by 
the Chairman of the Commission with approval by the 
Commission. 
‘‘(c) DUTIES.—The Director shall— 
‘‘(1) review transmission plans submitted by 
public utilities in accordance with the regional and 
interregional transmission planning processes estab-
lished pursuant to section 206; 
‘‘(2) coordinate all transmission-related matters 
of the Commission, as the Commission determines 
appropriate; and 
‘‘(3) carry out the responsibilities of the Com-
mission under section 216, in coordination with the 
Office of Energy Projects of the Commission.’’. 
SEC. 216. IDENTIFYING REGIONAL TRANSMISSION NEEDS. 
(a) TECHNICAL CONFERENCE.— 
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(1) IN
GENERAL.—Not later than 9 months 
after the date of enactment of this section, the Com-
mission shall convene a technical conference to 
evaluate how regional transmission planning needs 
are identified in regional transmission planning 
processes. 
(2) PARTICIPATION.—The technical conference 
shall be led by the members of the Commission, and 
the Commission shall invite participation from rep-
resentatives of ratepayers and such other entities as 
the Commission determines appropriate. 
(3) TOPICS.—The following topics shall be con-
sidered during the technical conference: 
(A) How to improve the transparency of 
the identification of transmission planning 
needs. 
(B) How to increase stakeholder input in 
the identification of transmission planning 
needs. 
(C) How to update methodologies that are 
used to identify transmission planning needs for 
purposes of— 
(i) ensuring that such needs may lead 
to solutions that recognize the multiple 
benefits of a proposed solution, such as 
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economic, reliability, and public policy- 
based benefits; and 
(ii) using scenario-based forecasting 
to accurately predict future transmission 
planning needs. 
(D) How to ensure that— 
(i) unnecessary transmission facilities 
are not selected in regional transmission 
planning processes; and 
(ii) more efficient or cost-effective 
transmission solutions are selected in re-
gional transmission planning processes. 
(4) PUBLIC COMMENT.—The Commission shall 
provide an opportunity for public comment on the 
technical conference. 
(b) RULEMAKING.—Not later than 1 year after the 
conclusion of the technical conference, the Commission 
shall publish in the Federal Register a rule, in accordance 
with section 206 of the Federal Power Act (16 U.S.C. 
824e), that requires transmission providers to— 
(1) increase transparency in the identification 
of transmission planning needs; 
(2) update methodologies that are used to iden-
tify transmission planning needs for purposes of pro-
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viding more accurate forecasting of expected trans-
mission planning needs; and 
(3) update their methodologies to ensure that 
the identification of transmission planning needs in 
regional planning processes may lead to solutions 
that recognize the multiple benefits of a proposed so-
lution, such as economic, reliability, and public pol-
icy-based benefits. 
(c) DEFINITIONS.—In this section: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(2) 
TRANSMISSION
PROVIDER.—The 
term 
‘‘transmission provider’’ means a public utility (as 
defined in section 201 of the Federal Power Act (16 
U.S.C. 824)) that owns, operates, or controls facili-
ties used for the transmission of electric energy in 
interstate commerce. 
SEC. 217. INTERREGIONAL TRANSMISSION PLANNING. 
(a) TECHNICAL CONFERENCE.— 
(1) IN
GENERAL.—Not later than 6 months 
after the date of enactment of this section, the Fed-
eral Energy Regulatory Commission shall convene a 
technical conference to consider how to develop an 
interregional transmission planning process. 
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(2) PARTICIPATION.—The technical conference 
shall be led by the members of the Commission, and 
the Commission shall invite participation from rep-
resentatives of ratepayers and such other entities as 
the Commission determines appropriate. 
(3) TOPICS.—The following topics shall be con-
sidered during the technical conference: 
(A) How transmission providers in adja-
cent transmission planning regions can plan for 
interregional transmission projects. 
(B) How an interregional planning process 
will provide for the evaluation and facilitation 
of the integration of renewable energy re-
sources, particularly those located far away 
from load centers. 
(C) Cost allocation for interregional trans-
mission projects, including whether public fund-
ing should affect the cost allocation of an inter-
regional transmission project receiving such 
funding, and if so, what the effect should be. 
(D) 
How 
interregional 
transmission 
projects that address public policy needs in the 
applicable regions could be facilitated by an 
interregional transmission planning process. 
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(E) Whether transmission providers in 
transmission planning regions should be re-
quired to develop similar or identical processes 
for evaluating the benefits of proposed inter-
regional transmission projects. 
(F) Any effects an interregional trans-
mission planning process would have on existing 
local and regional transmission planning proc-
esses. 
(4) PUBLIC COMMENT.—The Commission shall 
provide an opportunity for public comment on the 
technical conference. 
(b) RULEMAKING.—Not later than 18 months after 
the conclusion of the technical conference, the Commission 
shall publish in the Federal Register a rule, in accordance 
with section 206 of the Federal Power Act (16 U.S.C. 
824e), that requires transmission providers to— 
(1) engage in formalized interregional trans-
mission planning processes, which shall include the 
development of cost allocation methodologies in ac-
cordance with guidelines developed by the Commis-
sion; and 
(2) consider reduced costs of electric energy to 
customers and the integration of renewable energy 
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resources as benefits for interregional transmission 
planning purposes. 
(c) DEFINITIONS.—In this section: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(2) INTERREGIONAL TRANSMISSION PLANNING 
PROCESS.—The term ‘‘interregional transmission 
planning process’’ means a process to evaluate elec-
tric energy transmission needs jointly by trans-
mission providers in two or more adjacent trans-
mission planning regions. 
(3) INTERREGIONAL TRANSMISSION PROJECT.— 
The term ‘‘interregional transmission project’’ 
means an interregional project for facilities used for 
the transmission of electric energy in interstate com-
merce. 
(4) TRANSMISSION
PLANNING
REGION.—The 
term ‘‘transmission planning region’’ means a region 
for which electric energy transmission planning is 
appropriate, as determined by the Commission. 
(5) 
TRANSMISSION
PROVIDER.—The 
term 
‘‘transmission provider’’ means a public utility (as 
defined in section 201 of the Federal Power Act (16 
U.S.C. 824)) that owns, operates, or controls facili-
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100 
ties used for the transmission of electric energy in 
interstate commerce. 
SEC. 218. TRANSMISSION SITING ASSISTANCE PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) COVERED
TRANSMISSION
PROJECT.—The 
term ‘‘covered transmission project’’ means a high- 
voltage interstate electricity transmission line, pro-
posed to be constructed and to operate at a min-
imum of 300 kilovolts of either alternating-current 
or direct-current electric energy, with respect to 
which a notice of intent to apply for authorization 
under State, local, or Tribal law has been filed with 
the applicable siting authority. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(3) SITING AUTHORITY.—The term ‘‘siting au-
thority’’ means a State, local, or Tribal govern-
mental entity with authority to make a final deter-
mination regarding the siting, permitting, or regu-
latory status of a covered transmission project pro-
posed to be located in an area under the jurisdiction 
of the entity. 
(b) ESTABLISHMENT.—Not later than 90 days after 
the date of enactment of this Act, the Secretary shall es-
tablish a program to provide assistance to siting authori-
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101 
ties for the evaluation of, and decisionmaking process for, 
applications relating to the siting or permitting of covered 
transmission projects. 
(c) TYPES OF ASSISTANCE.— 
(1) GRANTS.— 
(A) IN
GENERAL.—The Secretary may, 
upon request, provide a grant to a siting au-
thority for any of the following: 
(i) Studies and analyses of the envi-
ronmental, reliability, wildlife, cultural, his-
torical, water, land-use, and employment, 
tax-revenue, market, cost, rate regulation, 
and other economic impacts of the covered 
transmission project, including— 
(I) assessing the economic bene-
fits and development effects of the 
transmission capacity of the covered 
transmission project; and 
(II) identifying the public health 
benefits of substituting clean elec-
tricity for fossil-fired generation that 
creates ozone, particulates, nitrous ox-
ides, and greenhouse gases, often in 
low-income areas. 
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102 
(ii) Participation by the siting author-
ity in regulatory proceedings or negotia-
tions in another jurisdiction or under the 
auspices of a transmission organization (as 
defined in section 215 of the Federal 
Power Act (16 U.S.C. 824o)) that is also 
considering the siting or permitting of the 
same covered transmission project. 
(iii) Participation by the siting au-
thority in regulatory proceedings at the 
Federal Energy Regulatory Commission or 
a State regulatory commission determining 
applicable rates and cost allocation for the 
covered transmission project. 
(iv) The costs of the siting authority 
of scheduling and conducting public hear-
ings and meetings to present plans and re-
lated analysis, take comments, and foster 
greater public awareness of the benefits 
and costs of the covered transmission 
project (including with respect to any pro-
posed siting alternatives). 
(B) AMOUNTS.—In providing a grant to a 
siting authority under subparagraph (A), the 
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103 
Secretary may provide amounts of not more 
than— 
(i) 80 percent of the costs of studies 
and analyses under subparagraph (A)(i) 
that are commissioned by the siting au-
thority to be carried out by another entity; 
(ii) 50 percent of the costs of studies 
and analyses under subparagraph (A)(i) 
that are carried out by the siting author-
ity; 
(iii) 50 percent of the costs to the 
siting authority of participation described 
in subparagraph (A)(ii); 
(iv) 80 percent of the costs to the 
siting authority of participation described 
in subparagraph (A)(iii); and 
(v) 50 percent of the costs described 
in subparagraph (A)(iv). 
(C) DEADLINE FOR CERTAIN STUDIES.— 
The Secretary shall provide a grant under sub-
paragraph (A)(i) on the condition that any 
study carried out pursuant to such subpara-
graph is completed within one year of being 
commissioned, or commenced by, the siting au-
thority. 
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104 
(2) OTHER ASSISTANCE.—The Secretary may, 
upon request, provide direct assistance to a siting 
authority in the form of: 
(A) Examination of up to three alternate 
siting corridors within which the covered trans-
mission project feasibly could be sited. 
(B) Related scientific, technical, and eco-
nomic analyses, to be performed at the national 
laboratories of the Department of Energy. 
(C) Hosting and facilitation (including by 
providing services of expert Department of En-
ergy personnel or neutral arbitrators) of nego-
tiations in settlement meetings involving the 
siting authority, the covered transmission 
project applicant and other proponents of the 
project, siting authorities from other jurisdic-
tions considering the same covered transmission 
project, and opponents of the covered trans-
mission project, for the purpose of identifying 
and addressing issues that are preventing ap-
proval of the application relating to the siting 
or permitting of the covered transmission 
project. 
(D) Other measures and actions that may 
improve the chances of, and shorten the time 
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105 
required for, approval by the siting authority of 
the application relating to the siting or permit-
ting of the covered transmission project, as the 
Secretary determines appropriate. 
(d) CONDITIONS.—As a condition of receiving assist-
ance under this section, the Secretary shall require a siting 
authority to agree, in writing— 
(1) to reach a final decision on the application 
relating to the siting or permitting of the covered 
transmission project not later than two years after 
the date on which such assistance is first provided, 
unless the Secretary grants an extension for good 
cause; 
(2) to review, consider, and conduct any nego-
tiations regarding the application relating to the 
siting or permitting of the covered transmission 
project (including with respect to any proposed 
siting alternatives) in good faith and in accordance 
with a published decision process and schedule; 
(3) to objectively and rationally weigh the re-
sults of all analyses, evidence, and inputs, and not 
deny the application relating to the siting or permit-
ting of the covered transmission project without 
finding compelling evidence that the negative im-
pacts of the covered transmission project (including 
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106 
with respect to any proposed siting alternatives) are 
greater than its benefits; 
(4) in evaluating the impacts, costs, and bene-
fits of the covered transmission project, to not ex-
clude demonstrable regional and national impacts, 
costs, and benefits that will be experienced within 
and beyond the area over which the siting authority 
has jurisdiction; 
(5) in evaluating the costs of the covered trans-
mission project, to not deny the application relating 
to the siting or permitting of the covered trans-
mission project based on an unfair allocation of 
costs to those within the area over which the siting 
authority has jurisdiction, except that the siting au-
thority may condition its approval on a fair and fea-
sible allocation of those costs within and beyond the 
area over which the siting authority has jurisdiction, 
as determined by the siting authority; 
(6) to transparently share, upon request, all in-
formation, analyses, and other inputs obtained pur-
suant to this section, except for any business-con-
fidential information, with all parties, other siting 
authorities considering the same covered trans-
mission project, and the public; 
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107 
(7) to not demand funds from the applicant to 
cover the costs of any analysis, information, or sup-
port that it has received from the Secretary; 
(8) to provide to the Secretary a full written ex-
planation of any preliminary decision regarding the 
application relating to the siting or permitting of the 
covered transmission project, including the informa-
tion the siting authority found to be dispositive, and 
to entertain petitions for review, rehearing, or cor-
rection of the preliminary decision before making a 
final decision; and 
(9) if a covered transmission project is finally 
approved by two or more siting authorities for other 
areas, each of which agrees to accept a greater allo-
cation of the project costs on a per-mile and per- 
resident basis than is proposed for area under the 
jurisdiction of the siting authority receiving assist-
ance under this section, to engage in binding arbi-
tration to determine a final decision on siting and 
permitting the covered transmission project within 
the area under its own jurisdiction. 
(e) ARBITRATION.—If a siting authority receiving as-
sistance under this section enters into binding arbitration 
under subsection (d)(9), the siting authority shall select 
an expert arbitrator who will meet with a second expert 
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108 
arbitrator selected by the siting authorities from other ju-
risdictions, the two arbitrators then agreeing on the selec-
tion of a third expert arbitrator, with all three considering 
the options and reaching by majority a conclusion on the 
best option to allow the project to proceed in the least- 
impact but still feasible manner. 
(f) INCENTIVES.—The Secretary may provide eco-
nomic incentives for climate solutions to a siting authority 
receiving assistance under this section that makes a final 
decision approving the relevant application by the deadline 
required under subsection (d)(1). 
(g) OUTREACH.—The Secretary shall notify siting 
authorities of the availability of assistance under this sec-
tion. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section $75,000,000 for each of fiscal years 2022 
through 2031, to remain available until expended. 
PART 2—PUBLIC INTEREST AND ENERGY 
MARKET REFORMS 
SEC. 220. MARKET BARRIERS TO CLEAN ENERGY DEVELOP-
MENT. 
(a) CARBON PRICING.—The Federal Energy Regu-
latory Commission may approve a carbon pricing regime 
that reflects the externalities associated with greenhouse 
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109 
gas emissions, to be used in setting rates and charges 
under sections 205 and 206 of the Federal Power Act. 
(b) RIGHT
TO CLEAN ENERGY.—Notwithstanding 
section 212(h) of the Federal Power Act, no State may 
establish or enforce any law or regulation that prohibits 
or unreasonably burdens the purchase of clean electricity 
in interstate commerce by an ultimate consumer. Nothing 
in this subsection may be construed to affect any contract 
in effect on the date of enactment of this section. 
(c) MANDATORY INTERCONNECTION AND COORDINA-
TION
OF FACILITIES.—Section 202(a) of the Federal 
Power Act (16 U.S.C. 824a(a)) is amended— 
(1) by striking ‘‘voluntary’’; and 
(2) by adding at the end the following: ‘‘The 
Commission shall require each public utility to place 
its transmission facilities under the control of an 
ISO or an RTO not later than two years after the 
date of enactment of the CLEAN Future Act.’’. 
SEC. 220A. OFFICE OF PUBLIC PARTICIPATION. 
Section 319 of the Federal Power Act (16 U.S.C. 
825q–1) is amended— 
(1) in subsection (a)(1), by inserting ‘‘, to fa-
cilitate communication with the public relating to, 
and participation by the public in, matters under the 
jurisdiction of the Commission, including under this 
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110 
Act and the Natural Gas Act’’ before the period at 
the end; 
(2) in subsection (b), by striking paragraph (4) 
and inserting the following: 
‘‘(4) The Office shall promote, through outreach, 
publications, and, as appropriate, direct communication 
with entities regulated by the Commission— 
‘‘(A) improved compliance with rules and orders 
of the Commission; and 
‘‘(B) public participation in matters before the 
Commission. 
‘‘(5) The Director may assign staff to intervene, ap-
pear, and participate in administrative, regulatory, or ju-
dicial proceedings on behalf of individuals or entities inter-
vening or participating, or proposing to intervene or par-
ticipate, in proceedings before the Commission by rep-
resenting the interests of such individuals or entities on 
any matter before the Commission. 
‘‘(6) The Office shall advocate for, and act as a liai-
son with, environmental justice communities (as defined 
in section 601 of the CLEAN Future Act) on matters 
under the jurisdiction of the Commission.’’; and 
(3) by adding at the end the following: 
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111 
‘‘(c) FUNDING.—Funding for the Office shall be de-
rived from fees and charges collected under section 3401 
of the Omnibus Budget Reconciliation Act of 1986.’’. 
SEC. 220B. PUBLIC INTEREST UNDER THE NATURAL GAS 
ACT. 
(a) EXPORTATION OR IMPORTATION OF NATURAL 
GAS; LNG TERMINALS.—Section 3 of the Natural Gas 
Act (15 U.S.C. 717b) is amended— 
(1) in subsection (a), by striking ‘‘, unless, after 
opportunity for hearing, it finds that the proposed 
exportation or importation will not be consistent 
with the public interest’’ and inserting ‘‘if, after op-
portunity for hearing, it finds that the proposed ex-
portation or importation is in the public interest’’; 
and 
(2) by amending subsection (c) to read as fol-
lows: 
‘‘(c) PUBLIC INTEREST.—In making a finding under 
this section regarding whether a proposed exportation or 
importation is in the public interest, the Commission 
shall— 
‘‘(1) ensure that the potential benefits outweigh 
any adverse effects; and 
‘‘(2) consider— 
‘‘(A) the climate policies of affected States; 
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112 
‘‘(B) regional infrastructure need deter-
minations; 
‘‘(C) all environmental impacts and con-
cerns identified pursuant to the National Envi-
ronmental Policy Act, including any direct, indi-
rect, and cumulative effects on climate change; 
and 
‘‘(D) community and landowner impacts.’’. 
(b) EXTENSION OF FACILITIES; ABANDONMENT OF 
SERVICE.—Section 7 of the Natural Gas Act (15 U.S.C. 
717f) is amended by adding at the end the following: 
‘‘(i) PUBLIC INTEREST.—In making a finding under 
this section regarding whether an action is in the public 
interest, the Commission shall— 
‘‘(1) ensure that the potential benefits outweigh 
any adverse effects; and 
‘‘(2) consider— 
‘‘(A) the climate policies of affected States; 
‘‘(B) regional infrastructure need deter-
minations; 
‘‘(C) all environmental impacts and con-
cerns identified pursuant to the National Envi-
ronmental Policy Act, including any direct, indi-
rect, and cumulative effects on climate change; 
and 
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‘‘(D) community and landowner impacts.’’. 
SEC. 220C. MODIFICATIONS TO EXERCISE OF THE RIGHT OF 
EMINENT DOMAIN BY HOLDER OF A CERTIFI-
CATE OF PUBLIC CONVENIENCE AND NECES-
SITY. 
(a) REQUIREMENT.—Section 7(h) of the Natural Gas 
Act (15 U.S.C. 717f(h)) is amended— 
(1) by striking ‘‘When any holder’’ and insert-
ing the following: ‘‘(1) Subject to paragraph (2), 
when any holder’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(2) A holder of a certificate of public convenience 
and necessity may not exercise the right of eminent do-
main under paragraph (1) unless the holder— 
‘‘(A) obtains all Federal and State permits re-
quired by law for the construction and operation of 
pipeline facilities; and 
‘‘(B) complies with all environmental conditions 
appended to the certificate order. 
‘‘(3) A holder of a certificate of public convenience 
and necessity shall be suspended from the exercise of the 
right of eminent domain under paragraph (1)— 
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114 
‘‘(A) if the holder requests a material amend-
ment to the certificate, until such time as the condi-
tions in paragraph (4) are satisfied; or 
‘‘(B) if a Federal or State permit held by the 
holder is vacated or remanded, until such time as— 
‘‘(i) all vacated or remanded permits are 
reinstated or reissued to the holder; and 
‘‘(ii) the holder complies with all environ-
mental conditions appended to the certificate 
order. 
‘‘(4) A holder of a certificate of public convenience 
and necessity who requests a material amendment to the 
certificate and has the exercise of the right of eminent do-
main suspended under paragraph (3)(A) may not com-
mence a new action or proceeding to exercise the right 
of eminent domain under paragraph (1) until such time 
as— 
‘‘(A) the Commission issues an amended certifi-
cate of public convenience and necessity; and 
‘‘(B) the holder— 
‘‘(i) obtains all additional Federal and 
State permits required by law pursuant to the 
amended certificate; and 
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115 
‘‘(ii) complies with all environmental condi-
tions appended to the amended certificate 
order. 
‘‘(5) A holder of a certificate of public convenience 
and necessity may not exercise the right of eminent do-
main under paragraph (1) if the applicable pipe line or 
pipe lines, necessary land or other property, or equipment 
necessary to the proper operation of such pipe line or pipe 
lines to be constructed, operated, and maintained is at-
tached to any facility with respect to which an order is 
required under section 3.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply— 
(1) to any action or proceeding for eminent do-
main under section 7(h)(1) of the Natural Gas Act, 
as amended by this section, commencing on or after 
the date of enactment of this Act; and 
(2) to any request for a material amendment to 
a certificate of public convenience and necessity oc-
curring on or after the date of enactment of this 
Act. 
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116 
Subtitle C—Public Utility 
Regulatory Policies Act Reform 
SEC. 221. CONSIDERATION OF ENERGY STORAGE SYSTEMS. 
(a) IN GENERAL.—Section 111(d) of the Public Util-
ity Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 
is amended by adding at the end the following: 
‘‘(20) CONSIDERATION
OF
ENERGY
STORAGE 
SYSTEMS.—Each State shall consider requiring that, 
as part of a supply side resource planning process, 
an electric utility of the State demonstrate to the 
State that the electric utility considered an invest-
ment in energy storage systems based on appro-
priate factors, including— 
‘‘(A) total costs and normalized life cycle 
costs; 
‘‘(B) cost effectiveness; 
‘‘(C) improved reliability; 
‘‘(D) security; and 
‘‘(E) system performance and efficiency.’’. 
(b) TIME LIMITATIONS.—Section 112(b) of the Pub-
lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622(b)) is amended by adding at the end the following: 
‘‘(7)(A) Not later than 1 year after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
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117 
which the State regulatory authority has ratemaking 
authority) and each nonregulated electric utility 
shall commence the consideration referred to in sec-
tion 111, or set a hearing date for consideration, 
with respect to the standard established by para-
graph (20) of section 111(d). 
‘‘(B) Not later than 2 years after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
which the State regulatory authority has ratemaking 
authority), and each nonregulated electric utility, 
shall complete the consideration, and shall make the 
determination, referred to in section 111 with re-
spect to the standard established by paragraph (20) 
of section 111(d).’’. 
(c) FAILURE TO COMPLY.—Section 112(c) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622(c)) is amended by adding at the end the following: 
‘‘In the case of the standard established by paragraph (20) 
of section 111(d), the reference contained in this sub-
section to the date of enactment of this Act shall be 
deemed to be a reference to the date of enactment of such 
paragraph (20).’’. 
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118 
(d) PRIOR STATE ACTIONS.—Section 112 of the Pub-
lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622) is amended by adding at the end the following: 
‘‘(g) PRIOR STATE ACTIONS.—Subsections (b) and 
(c) of this section shall not apply to the standard estab-
lished by paragraph (20) of section 111(d) in the case of 
any electric utility in a State if, before the enactment of 
this subsection— 
‘‘(1) the State has implemented for such utility 
the standard concerned (or a comparable standard); 
‘‘(2) the State regulatory authority for such 
State or relevant nonregulated electric utility has 
conducted a proceeding to consider implementation 
of the standard concerned (or a comparable stand-
ard) for such utility; or 
‘‘(3) the State legislature has voted on the im-
plementation of such standard (or a comparable 
standard) for such utility.’’. 
(e) PRIOR
AND PENDING PROCEEDINGS.—Section 
124 of the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2634) is amended by adding at the end the 
following: ‘‘In the case of the standard established by 
paragraph (20) of section 111(d), the reference contained 
in this section to the date of the enactment of this Act 
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119 
shall be deemed to be a reference to the date of enactment 
of such paragraph (20).’’. 
SEC. 222. COORDINATION OF PROGRAMS. 
To the maximum extent practicable, the Secretary of 
Energy shall ensure that the funding and administration 
of the different offices within the Grid Modernization Ini-
tiative of the Department of Energy and other programs 
conducting energy storage research are coordinated and 
streamlined. 
SEC. 223. PROMOTING CONSIDERATION AND UTILIZATION 
OF NON-WIRES SOLUTIONS. 
(a) CONSIDERATION OF NON-WIRES SOLUTIONS BY 
STATE REGULATORY AUTHORITIES.—Section 111(d) of 
the Public Utility Regulatory Policies Act of 1978 ((16 
U.S.C. 2621(d)) is further amended by adding at the end 
the following: 
‘‘(21) NON-WIRES SOLUTIONS.— 
‘‘(A) IN
GENERAL.—Each electric utility 
shall implement non-wires solutions when ap-
propriate. 
‘‘(B) DEFINITION
OF
NON-WIRES
SOLU-
TION.—The term ‘non-wires solution’ means an 
electricity grid investment or project that uses 
one or more nontraditional solutions, including 
distributed generation, energy storage, energy 
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120 
efficiency, demand response, microgrids, or grid 
software and controls, to defer or replace the 
need for specific equipment upgrades or new in-
frastructure, such as transmission or distribu-
tion lines or transformers, at a substation or 
circuit level. 
‘‘(C) COST
RECOVERY.—To reduce the 
costs to ratepayers associated with potential up-
grades to transmission or distribution infra-
structure, the cost of a non-wires solution im-
plemented under subparagraph (A) shall be re-
covered from ratepayers in the same manner as 
an upgrade to transmission or distribution in-
frastructure would have been recovered.’’. 
(b) TIME LIMITATIONS.—Section 112(b) of the Pub-
lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622(b)) is further amended by adding at the end the fol-
lowing: 
‘‘(8)(A) Not later than 1 year after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
which the State has ratemaking authority) and each 
nonregulated electric utility shall commence the con-
sideration referred to in section 111, or set a hear-
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121 
ing date for consideration, with respect to the stand-
ard established by paragraph (21) of section 111(d). 
‘‘(B) Not later than 2 years after the date of 
the enactment of this paragraph, each State regu-
latory authority (with respect to each electric utility 
for which the State has ratemaking authority), and 
each nonregulated electric utility, shall complete the 
consideration, and shall make the determination, re-
ferred to in section 111 with respect to the standard 
established by paragraph (21) of section 111(d).’’. 
(c) FAILURE TO COMPLY.—Section 112(c) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622(c)) is further amended by— 
(1) striking ‘‘(b)(2)’’ and inserting ‘‘(b)’’; and 
(2) adding at the end the following: ‘‘In the 
case of the standard established by paragraph (21) 
of section 111(d), the reference contained in this 
subsection to the date of enactment of this Act shall 
be deemed to be a reference to the date of enact-
ment of that paragraph (21).’’. 
(d) PRIOR STATE ACTIONS.—Section 112(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622(d)) is amended in the matter preceding paragraph 
(1) by striking ‘‘(19)’’ and inserting ‘‘(21)’’. 
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122 
SEC. 224. CONTRACT OPTIONS FOR QUALIFIED FACILITIES. 
Section 210 of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 824a–3) is amended by adding 
at the end the following: 
‘‘(o) CONTRACT OPTIONS FOR QUALIFIED FACILI-
TIES.—The Commission shall require that qualifying fa-
cilities have the option to enter a fixed price contract 
whose term is at least as long as the term on which the 
incumbent utility recovers invests in new generation, 
whether self-built or in the form of a long-term power pur-
chase agreement.’’. 
SEC. 225. ESTABLISHMENT OF COMMUNITY SOLAR PRO-
GRAMS. 
(a) IN GENERAL.—Section 111(d) of the Public Util-
ity Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 
is amended by adding at the end the following: 
‘‘(21) COMMUNITY
SOLAR
PROGRAMS.—Each 
electric utility shall offer a community solar program 
that provides all ratepayers, including low-income 
ratepayers, equitable and demonstrable access to 
such community solar program. For the purposes of 
this paragraph, the term ‘community solar program’ 
means a service provided to any electric consumer 
that the electric utility serves through which the 
value of electricity generated by a community solar 
facility may be used to offset charges billed to the 
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123 
electric consumer by the electric utility. A ‘commu-
nity solar facility’ is— 
‘‘(A) a solar photovoltaic system that allo-
cates electricity to multiple electric consumers 
of an electric utility; 
‘‘(B) connected to a local distribution of 
the electric utility; 
‘‘(C) located either on or off the property 
of the electric consumers; and 
‘‘(D) may be owned by an electric utility, 
an electric consumer, or a third party.’’. 
(b) COMPLIANCE.— 
(1) TIME LIMITATIONS.—Section 112(b) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2622(b)) is amended by adding at the end 
the following: 
‘‘(8)(A) Not later than 1 year after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
which the State has ratemaking authority) and each 
nonregulated electric utility shall commence consid-
eration under section 111, or set a hearing date for 
consideration, with respect to the standard estab-
lished by paragraph (21) of section 111(d). 
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124 
‘‘(B) Not later than 2 years after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
which the State has ratemaking authority), and each 
nonregulated electric utility shall complete the con-
sideration and make the determination under section 
111 with respect to the standard established by 
paragraph (21) of section 111(d).’’. 
(2) FAILURE TO COMPLY.— 
(A) IN GENERAL.—Section 112(c) of the 
Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622(c)) is amended— 
(i) by striking ‘‘such paragraph (14)’’ 
and all that follows through ‘‘paragraphs 
(16)’’ and inserting ‘‘such paragraph (14). 
In the case of the standard established by 
paragraph (15) of section 111(d), the ref-
erence contained in this subsection to the 
date of enactment of this Act shall be 
deemed to be a reference to the date of en-
actment of that paragraph (15). In the 
case of the standards established by para-
graphs (16)’’; and 
(ii) by adding at the end the fol-
lowing: ‘‘In the case of the standard estab-
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125 
lished by paragraph (21) of section 111(d), 
the reference contained in this subsection 
to the date of enactment of this Act shall 
be deemed to be a reference to the date of 
enactment of that paragraph (21).’’. 
(B) TECHNICAL CORRECTION.— 
(i) IN GENERAL.—Section 1254(b) of 
the Energy Policy Act of 2005 (Public 
Law 109–58; 119 Stat. 971) is amended— 
(I) by striking paragraph (2); 
and 
(II) by redesignating paragraph 
(3) as paragraph (2). 
(ii) TREATMENT.—The amendment 
made by paragraph (2) of section 1254(b) 
of the Energy Policy Act of 2005 (Public 
Law 109–58; 119 Stat. 971) (as in effect 
on the day before the date of enactment of 
this Act) is void, and section 112(d) of the 
Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2622(d)) shall be in ef-
fect as if those amendments had not been 
enacted. 
(3) PRIOR STATE ACTIONS.— 
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126 
(A) IN
GENERAL.—Section 112 of the 
Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622) is amended by adding at the 
end the following: 
‘‘(h) PRIOR STATE ACTIONS.—Subsections (b) and 
(c) shall not apply to the standard established by para-
graph (21) of section 111(d) in the case of any electric 
utility in a State if, before the date of enactment of this 
subsection— 
‘‘(1) the State has implemented for the electric 
utility the standard (or a comparable standard); 
‘‘(2) the State regulatory authority for the 
State or the relevant nonregulated electric utility has 
conducted a proceeding to consider implementation 
of the standard (or a comparable standard) for the 
electric utility; or 
‘‘(3) the State legislature has voted on the im-
plementation of the standard (or a comparable 
standard) for the electric utility.’’. 
(B) CROSS-REFERENCE.—Section 124 of 
the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2634) is amended by adding 
at the end the following: ‘‘In the case of the 
standard established by paragraph (21) of sec-
tion 111(d), the reference contained in this sub-
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127 
section to the date of enactment of this Act 
shall be deemed to be a reference to the date 
of enactment of that paragraph (21).’’. 
SEC. 226. RURAL AND REMOTE COMMUNITIES ELEC-
TRIFICATION GRANTS. 
Section 609 of the Public Utility Regulatory Policies 
Act of 1978 (7 U.S.C. 918c) is amended— 
(1) in section (a)— 
(A) in paragraph (1), by striking ‘‘or mu-
nicipality’’ and inserting ‘‘, municipality, or In-
dian Tribe’’; 
(B) in paragraph (5), by striking ‘‘10,000’’ 
and inserting ‘‘20,000’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(6) 
ECONOMICALLY
DISTRESSED
COMMU-
NITY.—The term ‘economically distressed commu-
nity’ means a unit of local government, municipality, 
or Indian Tribe— 
‘‘(A) that is located within a 75 mile ra-
dius of an electric generating unit that pri-
marily uses coal as a fuel source; and 
‘‘(B) that is significantly impacted by the 
closure of such electric generating unit occur-
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ring on or after January 1, 2010, including by, 
as a result of such closure, experiencing— 
‘‘(i) a net labor loss at least 50 work-
ers who lost employment directly from, or 
employment associated with, such electric 
generating unit, including an associated 
mine; 
‘‘(ii) a net revenue loss of over 25 per-
cent compared to the previous fiscal year, 
in terms of tax revenue, lease payments, or 
royalties directly from or associated with 
such electric generating station, including 
an associated mine; or 
‘‘(iii) an increase in the cost of elec-
tricity for applicable electric consumers of 
at least 10 percent from the previous ap-
plicable calendar year.’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘or the deployment of 
energy storage technologies’’ after ‘‘energy 
efficiency’’; and 
(ii) by striking ‘‘areas; or’’ and insert-
ing ‘‘areas or economically distressed com-
munities;’’; 
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129 
(B) in paragraph (2), by striking ‘‘rural 
areas.’’ and inserting ‘‘rural areas or economi-
cally distressed communities; or’’; and 
(C) by adding at the end the following: 
‘‘(3) refurbishing, redeveloping, or repurposing 
electric generating facilities that primarily consume 
coal as a fuel source that have recently ceased oper-
ation, or will cease operation in the near future, for 
manufacturing, including clean energy technologies 
or materials.’’; and 
(3) in subsection (d)— 
(A) by striking ‘‘$20,000,000’’ and insert-
ing ‘‘$50,000,000’’; and 
(B) by striking ‘‘2006 through 2012’’ and 
inserting ‘‘2022 through 2031’’. 
Subtitle D—Electricity Infrastruc-
ture Modernization and Resil-
ience 
SEC. 230. 21ST CENTURY POWER GRID. 
(a) IN GENERAL.—The Secretary of Energy shall es-
tablish a program to provide financial assistance to eligible 
partnerships to carry out projects related to the mod-
ernization of the electric grid, including— 
(1) projects for the deployment of technologies 
to improve monitoring of, advanced controls for, and 
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130 
prediction of performance of, a distribution system; 
and 
(2) projects related to transmission system 
planning and operation. 
(b) ELIGIBLE PROJECTS.—Projects for which an eli-
gible partnership may receive financial assistance under 
subsection (a)— 
(1) shall be designed to improve the resiliency, 
performance, or efficiency of the electric grid, while 
ensuring the continued provision of safe, secure, reli-
able, and affordable power; 
(2) may be designed to deploy a new product or 
technology that could be used by customers of an 
electric utility; and 
(3) shall demonstrate— 
(A) secure integration and management of 
energy resources, including through distributed 
energy generation, combined heat and power, 
microgrids, energy storage, electric vehicles 
charging infrastructure, energy efficiency, de-
mand response, or controllable loads; or 
(B) secure integration and interoperability 
of communications and information technologies 
related to the electric grid. 
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(c) CYBERSECURITY PLAN.—Each project carried 
out with financial assistance provided under subsection (a) 
shall include the development of a cybersecurity plan writ-
ten in accordance with guidelines developed by the Sec-
retary of Energy. 
(d) PRIVACY EFFECTS ANALYSIS.—Each project car-
ried out with financial assistance provided under sub-
section (a) shall include a privacy effects analysis that 
evaluates the project in accordance with the Voluntary 
Code of Conduct of the Department of Energy, commonly 
known as the ‘‘DataGuard Energy Data Privacy Pro-
gram’’, or the most recent revisions to the privacy pro-
gram of the Department. 
(e) DEFINITIONS.—In this section: 
(1) ELIGIBLE PARTNERSHIP.—The term ‘‘eligi-
ble partnership’’ means a partnership consisting of 
two or more entities, which— 
(A) may include— 
(i) any institution of higher education; 
(ii) a National Laboratory; 
(iii) a State or a local government or 
other public body created by or pursuant 
to State law; 
(iv) an Indian Tribe; 
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(v) a Federal power marketing admin-
istration; or 
(vi) an entity that develops and pro-
vides technology; and 
(B) shall include at least one of any of— 
(i) an electric utility; 
(ii) a Regional Transmission Organi-
zation; or 
(iii) an Independent System Operator. 
(2) ELECTRIC
UTILITY.—The term ‘‘electric 
utility’’ has the meaning given that term in section 
3(22) of the Federal Power Act (16 U.S.C. 
796(22)), except that such term does not include an 
entity described in subparagraph (B) of such sec-
tion. 
(3) 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. 
(4) INDEPENDENT
SYSTEM
OPERATOR; RE-
GIONAL TRANSMISSION ORGANIZATION.—The terms 
‘‘Independent System Operator’’ and ‘‘Regional 
Transmission Organization’’ have the meanings 
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given those terms in section 3 of the Federal Power 
Act (16 U.S.C. 796). 
(5) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given that term in section 101(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1001(a)). 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Energy 
to carry out this section $700,000,000 for each of fiscal 
years 2022 through 2031, to remain available until ex-
pended. 
SEC. 231. MICROGRIDS. 
(a) DEFINITIONS.—In this section: 
(1) HYBRID
MICROGRID
SYSTEM.—The term 
‘‘hybrid microgrid system’’ means a stand-alone elec-
trical system that— 
(A) is comprised of conventional generation 
and at least 1 alternative energy resource; and 
(B) may use grid-scale energy storage. 
(2) ISOLATED
COMMUNITY.—The term ‘‘iso-
lated community’’ means a community that is pow-
ered by a stand-alone electric generation and dis-
tribution system without the economic and reliability 
benefits of connection to a regional electric grid. 
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(3) MICROGRID SYSTEM.—The term ‘‘microgrid 
system’’ means a stand-alone electrical system that 
uses grid-scale energy storage. 
(4) STRATEGY.—The term ‘‘strategy’’ means 
the strategy developed pursuant to subsection 
(b)(2)(B). 
(b) PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a program to promote the development of— 
(A) hybrid microgrid systems for isolated 
communities; and 
(B) microgrid systems to increase the resil-
ience of critical infrastructure. 
(2) PHASES.—The program established under 
paragraph (1) shall be divided into the following 
phases: 
(A) Phase I, which shall consist of the de-
velopment of a feasibility assessment for— 
(i) hybrid microgrid systems in iso-
lated communities; and 
(ii) microgrid systems to enhance the 
resilience of critical infrastructure. 
(B) Phase II, which shall consist of the de-
velopment of an implementation strategy, in ac-
cordance with paragraph (3), to promote the 
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development of hybrid microgrid systems for 
isolated communities, particularly for those 
communities exposed to extreme weather condi-
tions and high energy costs, including elec-
tricity, space heating and cooling, and transpor-
tation. 
(C) Phase III, which shall be carried out 
in parallel with Phase II and consist of the de-
velopment of an implementation strategy to 
promote the development of microgrid systems 
that increase the resilience of critical infrastruc-
ture. 
(D) Phase IV, which shall consist of cost- 
shared demonstration projects, based upon the 
strategies developed under subparagraph (B) 
that include the development of physical and cy-
bersecurity plans to take appropriate measures 
to protect and secure the electric grid. 
(E) Phase V, which shall establish a bene-
fits analysis plan to help inform regulators, pol-
icymakers, and industry stakeholders about the 
affordability, environmental and resilience bene-
fits associated with Phases II, III, and IV. 
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(3) REQUIREMENTS FOR STRATEGY.—In devel-
oping the strategy under paragraph (2)(B), the Sec-
retary shall consider— 
(A) establishing future targets for the eco-
nomic displacement of conventional generation 
using hybrid microgrid systems, including dis-
placement of conventional generation used for 
electric power generation, heating and cooling, 
and transportation; 
(B) the potential for renewable resources, 
including wind, solar, and hydropower, to be in-
tegrated into a hybrid microgrid system; 
(C) opportunities for improving the effi-
ciency of existing hybrid microgrid systems; 
(D) the capacity of the local workforce to 
operate, 
maintain, 
and 
repair 
a 
hybrid 
microgrid system; 
(E) opportunities to develop the capacity of 
the local workforce to operate, maintain, and 
repair a hybrid microgrid system; 
(F) leveraging existing capacity within 
local or regional research organizations, such as 
organizations based at institutions of higher 
education, to support development of hybrid 
microgrid systems, including by testing novel 
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137 
components and systems prior to field deploy-
ment; 
(G) the need for basic infrastructure to de-
velop, deploy, and sustain a hybrid microgrid 
system; 
(H) input of traditional knowledge from 
local leaders of isolated communities in the de-
velopment of a hybrid microgrid system; 
(I) the impact of hybrid microgrid systems 
on defense, homeland security, economic devel-
opment, and environmental interests; 
(J) opportunities to leverage existing inter-
agency coordination efforts and recommenda-
tions for new interagency coordination efforts to 
minimize unnecessary overhead, mobilization, 
and other project costs; and 
(K) any other criteria the Secretary deter-
mines appropriate. 
(c) COLLABORATION.—The program established 
under subsection (b)(1) shall be carried out in collabora-
tion with relevant stakeholders, including, as appro-
priate— 
(1) States; 
(2) Indian Tribes; 
(3) regional entities and regulators; 
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138 
(4) units of local government; 
(5) institutions of higher education; and 
(6) private sector entities. 
(d) REPORT.—Not later than 180 days after the date 
of enactment of this Act, and annually thereafter until cal-
endar year 2026, the Secretary shall submit to the Com-
mittee on Energy and Natural Resources of the Senate 
and the Committee on Energy and Commerce of the 
House of Representatives a report on the efforts to imple-
ment the program established under subsection (b)(1) and 
the status of the strategy developed under subsection 
(b)(2)(B). 
SEC. 232. STRATEGIC TRANSFORMER RESERVE PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Energy 
shall establish a program to reduce the vulnerability of the 
electric grid to physical attack, cyber attack, electro-
magnetic pulse, geomagnetic disturbances, severe weather, 
climate change, and seismic events, including by— 
(1) ensuring that large power transformers, 
generator step-up transformers, and other critical 
electric grid equipment are strategically located to 
ensure timely replacement of such equipment as may 
be necessary to restore electric grid function rapidly 
in the event of severe damage to the electric grid 
due to physical attack, cyber attack, electromagnetic 
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139 
pulse, geomagnetic disturbances, severe weather, cli-
mate change, or seismic events; and 
(2) establishing a coordinated plan to facilitate 
transportation of large power transformers and 
other critical electric grid equipment. 
(b) TRANSFORMER
RESILIENCE
AND
ADVANCED 
COMPONENTS
PROGRAM.—The 
program 
established 
under subsection (a) shall include implementation of the 
Transformer Resilience and Advanced Components pro-
gram to— 
(1) improve large power transformers and other 
critical electric grid equipment by reducing their 
vulnerabilities; and 
(2) develop, test, and deploy innovative equip-
ment designs that are more flexible and offer greater 
resiliency of electric grid functions. 
(c) STRATEGIC EQUIPMENT RESERVES.— 
(1) AUTHORIZATION.—In carrying out the pro-
gram established under subsection (a), the Secretary 
may establish one or more federally owned strategic 
equipment reserves, as appropriate, to ensure na-
tionwide access to reserve equipment. 
(2) CONSIDERATION.—In establishing any fed-
erally owned strategic equipment reserve, the Sec-
retary may consider existing spare transformer and 
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equipment programs and requirements established 
by the private sector, regional transmission opera-
tors, independent system operators, and State regu-
latory authorities. 
(d) CONSULTATION.—The program established under 
subsection (a) shall be carried out in consultation with the 
Federal Energy Regulatory Commission, the Electricity 
Subsector Coordinating Council, the Electric Reliability 
Organization, and owners and operators of critical electric 
infrastructure and defense and military installations. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$75,000,000 for each of fiscal years 2022 through 2031. 
SEC. 
233. 
DEPARTMENT 
OF 
ENERGY 
SUPPORT 
TO 
REPOWER COMMUNITIES. 
(a) PROGRAM.—The Secretary of Energy shall con-
duct a program to provide information and technical as-
sistance to State, local, Tribal, and territorial governments 
and relevant land and infrastructure asset owners, to sup-
port the redevelopment of sites that have, or previously 
had, one or more retired fossil fuel-powered electric gener-
ating units, including redevelopment of such sites 
through— 
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(1) deployment of zero-emissions electricity, in-
cluding electricity generated from wind, solar, nu-
clear, hydropower, and geothermal energy; 
(2) deployment of energy storage resources; 
(3) use of existing and underutilized electric 
transmission and distribution infrastructure associ-
ated with such sites; and 
(4) economic development opportunities for en-
ergy-intensive industries, including data centers. 
(b) PUBLIC INVENTORY.—In carrying out the pro-
gram conducted under subsection (a), the Secretary may 
inventory and characterize sites described in such sub-
section, including the energy and security infrastructure 
of such sites, and make such inventory and characteriza-
tions available to the public. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$10,000,000 for each of fiscal years 2022 through 2031. 
SEC. 234. ENVIRONMENTAL PROTECTION AGENCY SUP-
PORT TO REPOWER COMMUNITIES. 
Section 104 of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42 
U.S.C. 9604) is amended by adding at the end the fol-
lowing: 
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142 
‘‘(l) REPOWERING
COMMUNITIES
GRANT
PRO-
GRAM.— 
‘‘(1) 
ESTABLISHMENT.—The 
Administrator 
shall establish a program to provide grants to eligi-
ble entities to carry out inventory, characterization, 
assessment, planning, feasibility analysis, design, or 
remediation activities at sites that have or previously 
had 1 or more retired fossil fuel-powered electric 
generating units. 
‘‘(2) PRIORITIZATION
OF
GRANTS.—The Ad-
ministrator shall prioritize awarding grants to eligi-
ble entities who intend to develop or deploy clean en-
ergy projects at sites described in paragraph (1). 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) CLEAN ENERGY PROJECT.—The term 
‘clean energy project’ means a project that— 
‘‘(i) is anticipated to generate elec-
tricity without emitting greenhouse gases, 
such as wind, solar, nuclear, hydropower, 
and geothermal energy; or 
‘‘(ii) stores energy. 
‘‘(B) ELIGIBLE ENTITY.—The term ‘eligi-
ble entity’ means— 
‘‘(i) a general purpose unit of local 
government; 
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‘‘(ii) a land clearance authority or 
other quasi-governmental entity that oper-
ates under the supervision and control of 
or as an agent of a general purpose unit 
of local government; 
‘‘(iii) a government entity created by 
a State legislature; 
‘‘(iv) a regional council or group of 
general purpose units of local government; 
‘‘(v) a redevelopment agency that is 
chartered or otherwise sanctioned by a 
State; 
‘‘(vi) a State; 
‘‘(vii) an Indian Tribe other than in 
Alaska; 
‘‘(viii) an Alaska Native Regional Cor-
poration and an Alaska Native Village Cor-
poration as those terms are defined in the 
Alaska Native Claims Settlement Act and 
the Metlakatla Indian community; 
‘‘(ix) an organization described in sec-
tion 501(c)(3) of the Internal Revenue 
Code of 1986 and exempt from taxation 
under section 501(a) of that Code; 
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‘‘(x) a limited liability corporation in 
which all managing members are organiza-
tions described in clause (ix) or limited li-
ability corporations whose sole members 
are organizations described in clause (ix); 
‘‘(xi) a limited partnership in which 
all general partners are organizations de-
scribed in clause (ix) or limited liability 
corporations whose sole members are orga-
nizations described in clause (ix); or 
‘‘(xii) a qualified community develop-
ment 
entity 
(as 
defined 
in 
section 
45D(c)(1) of the Internal Revenue Code of 
1986). 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $10,000,000, to remain available until 
expended, for each of fiscal years 2022 through 
2031.’’. 
SEC. 235. DAM SAFETY. 
(a) DAM SAFETY CONDITIONS.—Section 10 of the 
Federal Power Act (16 U.S.C. 803) is amended by adding 
at the end the following: 
‘‘(k) That the dam and other project works meet the 
Commission’s dam safety requirements and that the li-
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145 
censee shall continue to manage, operate, and maintain 
the dam and other project works in a manner that ensures 
dam safety and public safety under the operating condi-
tions of the license.’’. 
(b) DAM SAFETY REQUIREMENTS.—Section 15 of 
the Federal Power Act (16 U.S.C. 808) is amended by 
adding at the end the following: 
‘‘(g) The Commission may issue a new license under 
this section only if the Commission determines that the 
dam and other project works covered by the license meet 
the Commission’s dam safety requirements and that the 
licensee can continue to manage, operate, and maintain 
the dam and other project works in a manner that ensures 
dam safety and public safety under the operating condi-
tions of the new license.’’. 
(c) VIABILITY PROCEDURES.—The Federal Energy 
Regulatory Commission shall establish procedures to as-
sess the financial viability of an applicant for a license 
under the Federal Power Act to meet applicable dam safe-
ty requirements and to operate the dam and project works 
under the license. 
(d) FERC DAM SAFETY TECHNICAL CONFERENCE 
WITH STATES.— 
(1) TECHNICAL CONFERENCE.—Not later than 
April 1, 2022, the Federal Energy Regulatory Com-
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mission, acting through the Office of Energy 
Projects, shall hold a technical conference with the 
States to discuss and provide information on— 
(A) dam maintenance and repair; 
(B) 
Risk 
Informed 
Decision 
Making 
(RIDM); 
(C) climate and hydrological regional 
changes that may affect the structural integrity 
of dams; and 
(D) high hazard dams. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $1,000,000 for fiscal year 2022. 
(3) STATE DEFINED.—In this subsection, the 
term ‘‘State’’ has the meaning given such term in 
section 3 of the Federal Power Act (16 U.S.C. 796). 
(e) REQUIRED DAM SAFETY COMMUNICATIONS BE-
TWEEN FERC AND STATES.— 
(1) IN
GENERAL.—The Commission, acting 
through the Office of Energy Projects, shall notify 
a State within which a project is located when— 
(A) the Commission issues a finding, fol-
lowing a dam safety inspection, that requires 
the licensee for such project to take actions to 
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147 
repair the dam and other project works that are 
the subject of such finding; 
(B) after a period of 5 years starting on 
the date a finding under subparagraph (A) is 
issued, the licensee has failed to take actions to 
repair the dam and other project works, as re-
quired by such finding; and 
(C) the Commission initiates a non-compli-
ance proceeding or otherwise takes steps to re-
voke a license issued under section 4 of the 
Federal Power Act (16 U.S.C. 797) due to the 
failure of a licensee to take actions to repair a 
dam and other project works. 
(2) NOTICE
UPON
REVOCATION, SURRENDER, 
OR
IMPLIED
SURRENDER
OF
A
LICENSE.—If the 
Commission issues an order to revoke a license or 
approve the surrender or implied surrender of a li-
cense under the Federal Power Act (16 U.S.C. 792 
et seq.), the Commission shall provide to the State 
within which the project that relates to such license 
is located— 
(A) all records pertaining to the structure 
and operation of the applicable dam and other 
project works, including, as applicable, any dam 
safety inspection reports by independent con-
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sultants, specifications for required repairs or 
maintenance of such dam and other project 
works that have not been completed, and esti-
mates of the costs for such repairs or mainte-
nance; 
(B) all records documenting the history of 
maintenance or repair work for the applicable 
dam and other project works; 
(C) information on the age of the dam and 
other project works and the hazard classifica-
tion of the dam and other project works; 
(D) the most recent assessment of the con-
dition of the dam and other project works by 
the Commission; 
(E) as applicable, the most recent hydro-
logic information used to determine the poten-
tial maximum flood for the dam and other 
project works; and 
(F) the results of the most recent risk as-
sessment completed on the dam and other 
project works. 
(3) DEFINITION.—In this subsection: 
(A) COMMISSION.—The term ‘‘Commis-
sion’’ means the Federal Energy Regulatory 
Commission. 
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(B) LICENSEE.—The term ‘‘licensee’’ has 
the meaning given such term in section 3 of the 
Federal Power Act (16 U.S.C. 796). 
(C) PROJECT.—The term ‘‘project’’ has 
the meaning given such term in section 3 of the 
Federal Power Act (16 U.S.C. 796). 
SEC. 236. CLEAN ENERGY MICROGRID GRANT PROGRAM. 
(a) IN GENERAL.—The Secretary of Energy shall es-
tablish and carry out a program to provide grants to eligi-
ble entities. 
(b) USE OF FUNDS.—An eligible entity may use a 
grant provided under the program established pursuant to 
subsection (a) to— 
(1) obtain technical assistance to— 
(A) upgrade building codes and standards 
for resiliency to climate change hazards (includ-
ing wildfires, flooding, sea level rise, landslides, 
drought, storms, temperature extremes, and 
other extreme weather events); 
(B) develop a FEMA Hazard Mitigation 
Plan to identify and overcome known climate 
change hazards to critical community infra-
structure; or 
(C) conduct a needs assessment of prospec-
tive clean energy microgrid projects and, as ap-
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plicable, 
design 
prospective 
clean 
energy 
microgrids, including assistance to address per-
mitting and siting challenges, understand and 
facilitate financing options, and understand the 
technical 
characteristics 
of 
clean 
energy 
microgrids; 
(2) provide community outreach and collabo-
rative planning with respect to a prospective project 
described in paragraph (3); or 
(3) carry out a project to develop and con-
struct— 
(A) a clean energy microgrid that supports 
critical community infrastructure; or 
(B) a clean energy microgrid for residences 
of medical baseline customers. 
(c) PRIORITY.— 
(1) IN GENERAL.—In providing grants under 
the program established pursuant to subsection (a), 
the Secretary of Energy shall give priority to an eli-
gible entity that proposes to use a grant to obtain 
technical assistance described in subsection (b)(1), 
provide outreach described in subsection (b)(2), or 
carry out a project described in subsection (b)(3), 
that will benefit an environmental justice commu-
nity. 
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(2) TECHNICAL ASSISTANCE AND COMMUNITY 
OUTREACH
GRANTS.—After priority given under 
paragraph (1), in providing grants to obtain tech-
nical assistance described in subsection (b)(1) or 
provide outreach described in subsection (b)(2), the 
Secretary of Energy shall give priority to an eligible 
entity proposing to obtain technical assistance or 
provide outreach that the Secretary of Energy deter-
mines will further the development of clean energy 
microgrids that are community-owned energy sys-
tems. 
(3) CLEAN ENERGY MICROGRID GRANTS.—After 
priority given under paragraph (1), in providing 
grants under the program established pursuant to 
subsection (a) for projects described in subsection 
(b)(3), the Secretary of Energy shall give priority to 
an eligible entity that— 
(A) proposes to develop and construct a 
clean energy microgrid that, in comparison to 
other clean energy microgrids for which grants 
are sought under such program, will result in 
the greatest reduction— 
(i) of greenhouse gas emissions; 
(ii) of emissions of criteria air pollut-
ants; 
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(iii) in public health disparities in 
communities experiencing a dispropor-
tionate level of air pollution; or 
(iv) in the energy cost burden for 
communities; 
(B) proposes to develop and construct a 
clean energy microgrid that is a community- 
owned energy system; 
(C) proposes to develop and construct a 
clean energy microgrid that, in comparison to 
other clean energy microgrids for which grants 
are sought under such program, will provide the 
greatest amount of resiliency benefits to a juris-
diction in which the microgrid is located; 
(D) proposes to develop and construct a 
clean energy microgrid that minimizes land use 
impacts by— 
(i) siting sources of clean energy with-
in the already-built environment, including 
over rooftops and parking lots; 
(ii) siting sources of clean energy on 
existing brownfield sites or contaminated 
sites; 
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153 
(iii) co-locating sources of clean en-
ergy on agricultural lands or over res-
ervoirs; or 
(iv) siting sources of clean energy on 
compatible lands; 
(E) proposes to, in developing and con-
structing a clean energy microgrid, utilize or in-
volve small businesses or nonprofits that pri-
marily operate or are located within environ-
mental justice communities, particularly those 
that are women-owned and operated or minor-
ity-owned and operated; 
(F) has previously received a grant to ob-
tain technical assistance under such program; 
(G) imposes registered apprentice utiliza-
tion requirements on projects, provided that 
such requirements comply with the apprentice 
to journey worker ratios established by the De-
partment of Labor or the applicable State Ap-
prenticeship Agency; or 
(H) proposes to develop and construct a 
clean energy microgrid in an area designated 
nonattainment and classified as an Extreme 
Area or Severe Area for one or more criteria air 
pollutants. 
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154 
(d) EDUCATIONAL OUTREACH PROGRAM.— 
(1) IN GENERAL.—Not later than 90 days after 
funds are made available to carry out this section, 
the Secretary of Energy shall develop and carry out 
an educational outreach program to inform eligible 
entities about the program established pursuant to 
subsection (a). 
(2) CONTRACTS.—The Secretary of Energy 
may enter into third-party contracts to implement 
the educational outreach program under paragraph 
(1). In entering into contracts pursuant to this para-
graph, the Secretary shall prioritize entering into 
contracts with women-owned and operated or minor-
ity-owned and operated entities. 
(3) PRIORITY.—The educational outreach pro-
gram under paragraph (1) shall prioritize— 
(A) providing information on the program 
established pursuant to subsection (a) to eligi-
ble entities that serve an environmental justice 
community and to environmental justice com-
munities; and 
(B) promoting public understanding of the 
community benefits of clean energy microgrids 
for critical community infrastructure. 
(e) COST SHARE.— 
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155 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Federal share of the cost of technical 
assistance, outreach, or a project for which a grant 
is provided pursuant to the program established pur-
suant to subsection (a) shall not exceed 60 percent 
of such cost. 
(2) ENVIRONMENTAL
JUSTICE
COMMUNITY.— 
The Federal share of the cost of technical assistance 
that is obtained for, outreach that is provided to, or 
a project that is carried out in, an environmental 
justice community, and for which a grant is provided 
pursuant to the program established pursuant to 
subsection (a) shall not exceed 90 percent of such 
cost. 
(f) LIMITATION
ON AMOUNT.—The amount of a 
grant provided to an eligible entity under this section to 
carry out a project described in subsection (b)(3) may not 
exceed $10,000,000. 
(g) USE OF AMERICAN IRON, STEEL, AND MANUFAC-
TURED GOODS.— 
(1) No funds authorized under this section shall 
be made available with respect to a project unless all 
of the iron, steel, and manufactured goods used in 
the project are produced in the United States. 
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156 
(2) Paragraph (1) shall not apply in any case 
or category of cases in which the Secretary of En-
ergy finds that— 
(A) applying paragraph (1) would be in-
consistent with the public interest; 
(B) iron, steel, and the relevant manufac-
tured goods are not produced in the United 
States in sufficient and reasonably available 
quantities and of a satisfactory quality; or 
(C) inclusion of iron, steel, and manufac-
tured goods produced in the United States will 
increase the cost of the overall project by more 
than 25 percent. 
(3) If the Secretary of Energy receives a re-
quest for a waiver under this subsection, the Sec-
retary shall make available to the public on an infor-
mal basis a copy of the request and information 
available to the Secretary concerning the request, 
and shall allow for informal public input on the re-
quest for at least 15 days prior to making a finding 
based on the request. The Secretary shall make the 
request and accompanying information available by 
electronic means, including on the official public 
website of the Department of Energy. 
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157 
(4) This subsection shall be applied in a man-
ner consistent with the United States obligations 
under international agreements. 
(h) PREVAILING WAGES.—All laborers and mechan-
ics employed by contractors or subcontractors in the per-
formance of construction, alteration, or repair work as-
sisted, in whole or in part, by a grant under this section 
shall be paid wages at rates not less than those prevailing 
on similar construction in the locality as determined by 
the Secretary of Labor in accordance with subchapter IV 
of chapter 31 of title 40, United States Code. With respect 
to the labor standards in this subsection, the Secretary 
of Labor shall have the authority and functions set forth 
in Reorganization Plan Numbered 14 of 1950 (64 Stat. 
1267; 5 U.S.C. App.) and section 3145 of title 40, United 
States Code. 
(i) PROJECT LABOR.—An eligible entity that uses a 
grant provided under this section to construct a clean en-
ergy microgrid shall ensure, to the greatest extent prac-
ticable, that any subgrantee of such eligible entity, and 
any subgrantee thereof, that carries out such construction 
employs at least 40 percent of laborers or mechanics for 
such construction that are individuals who— 
(1) are domiciled, if the applicable construction 
area is— 
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(A) a major urban area, not further than 
15 miles from such construction area; or 
(B) not a major urban area, not further 
than 50 miles from such construction area; 
(2) are displaced and unemployed energy work-
ers; 
(3) are members of the Armed Forces serving 
on active duty, separated from active duty, or retired 
from active duty; 
(4) have been incarcerated or served time in a 
juvenile or adult detention or correctional facility, or 
been placed on probation, community supervision, or 
in a diversion scheme; 
(5) have a disability; 
(6) are homeless; 
(7) are receiving public assistance; 
(8) lack a general education diploma or high 
school diploma; 
(9) are emancipated from the foster care sys-
tem; 
(10) reside or work in an environmental justice 
community; or 
(11) are registered apprentices with fewer than 
15 percent of the required graduating apprentice 
hours in a program. 
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159 
(j) REPORTS.—The Secretary of Energy shall submit 
to Congress, and make available on the public website of 
the Department of Energy, an annual report on the pro-
gram established pursuant to subsection (a) that includes, 
with respect to the previous year— 
(1) the number of grants provided; 
(2) the total dollar amount of all grants pro-
vided; 
(3) a list of grant disbursements by State; 
(4) for each grant provided— 
(A) a description of the technical assist-
ance obtained, outreach provided, or project 
carried out with grants funds; and 
(B) whether the grant is provided to obtain 
technical assistance, provide outreach, or carry 
out a project with respect to an environmental 
justice community; and 
(5) for each grant provided to carry out a clean 
energy microgrid project— 
(A) employment data for such project, in-
cluding the number of jobs created and what 
percent of laborers and mechanics hired for 
such project meet the criteria under subsection 
(i); 
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160 
(B) the greenhouse gas and criteria air 
pollutant reduction impacts for such project; 
(C) the public health benefits from such 
project; and 
(D) the reduced energy cost burden from 
such project. 
(k) FUNDING.— 
(1) AUTHORIZATION OF APPROPRIATIONS.—For 
each of fiscal years 2022 through 2031, there is au-
thorized to be appropriated— 
(A) $50,000,000 for grants for technical 
assistance described in subsection (b)(1) and 
outreach described in subsection (b)(2); and 
(B) $1,500,000,000 for grants for projects 
described in subsection (b)(3). 
(2) COMMUNITY-OWNED
ENERGY
SYSTEMS.— 
To the maximum extent practicable, not less than 10 
percent of the amount appropriated under para-
graph (1)(B) for any fiscal year shall be used to pro-
vide grants for projects to develop and construct 
clean energy microgrids that are community-owned 
energy systems. 
(3) ADMINISTRATIVE EXPENSES.— 
(A) TECHNICAL
ASSISTANCE
AND
OUT-
REACH.—The Secretary may use not more than 
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2 percent of the amount appropriated for any 
fiscal year under paragraph (1)(A) for adminis-
trative expenses. 
(B) 
CLEAN
ENERGY
MICROGRID 
PROJECTS.—The Secretary may use not more 
than 2 percent of the amount appropriated for 
any fiscal year under paragraph (1)(B) for ad-
ministrative expenses, including expenses for 
carrying out the educational outreach program 
under subsection (d). 
(l) DEFINITIONS.—In this section: 
(1) CLEAN ENERGY.—The term ‘‘clean energy’’ 
means electric energy generated from solar, wind, 
geothermal, existing hydropower, micro-hydropower, 
hydrokinetic, or hydrogen fuel cells. 
(2) COMMUNITY OF COLOR.—The term ‘‘com-
munity of color’’ has the meaning given that term in 
section 601. 
(3) COMMUNITY-OWNED
ENERGY
SYSTEM.— 
The term ‘‘community-owned energy system’’ means 
an energy system owned— 
(A) by the local government where the sys-
tem is located; 
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(B) by a nonprofit organization that is 
based in the local jurisdiction where the energy 
system is located; 
(C) collectively, by community members; or 
(D) by a worker-owned or community- 
owned for-profit entity. 
(4) COMPATIBLE LAND.—The term ‘‘compatible 
land’’ means land that is at least 5 miles away from 
existing protected areas and within 3 miles of exist-
ing transmission infrastructure. 
(5) CRITICAL COMMUNITY INFRASTRUCTURE.— 
The term ‘‘critical community infrastructure’’ means 
infrastructure that is necessary to providing vital 
community and individual functions, including— 
(A) schools; 
(B) town halls; 
(C) public safety facilities; 
(D) hospitals; 
(E) health clinics; 
(F) community centers; 
(G) community nonprofit facilities pro-
viding essential services; 
(H) libraries; 
(I) grocery stores; 
(J) emergency management facilities; 
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163 
(K) water systems; 
(L) homeless shelters; 
(M) senior housing; and 
(N) public or affordable housing. 
(6) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a State, territory of the United States, 
or Tribal agency; 
(B) a local government or political subdivi-
sion of a State, including a municipally owned 
electric utility and an agency, authority, cor-
poration, or instrumentality of a State or In-
dian Tribe; 
(C) an electric utility; 
(D) a nonprofit organization; or 
(E) a partnership between— 
(i) a private entity, or a nonprofit or-
ganization, that owns critical community 
infrastructure; and 
(ii) a State, territory of the United 
States, Tribal agency, or local government. 
(7) ENVIRONMENTAL
JUSTICE
COMMUNITY.— 
The term ‘‘environmental justice community’’ has 
the meaning given that term in section 601. 
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(8) LOW-INCOME COMMUNITY.—The term ‘‘low- 
income community’’ means any census block group 
in which 30 percent or more of the population are 
individuals with an annual household income equal 
to, or less than, the greater of— 
(A) an amount equal to 80 percent of the 
median income of the area in which the house-
hold is located, as reported by the Department 
of Housing and Urban Development; and 
(B) 200 percent of the Federal poverty 
line. 
(9) MAJOR
URBAN
AREA.—The term ‘‘major 
urban area’’ means a metropolitan statistical area 
within the United States with an estimated popu-
lation that is greater than or equal to 1,500,000. 
(10) MEDICAL
BASELINE
CUSTOMER.—The 
term ‘‘medical baseline customer’’ means a customer 
of an electric utility with special energy needs due 
to a medical condition, including energy needs for— 
(A) a motorized wheelchair; 
(B) a ventilator; 
(C) a dialysis machine; 
(D) an apnea monitor; 
(E) an electrostatic nebulizer; 
(F) a respirator; 
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(G) medication requiring refrigeration; and 
(H) for a customer with a vulnerable res-
piratory system, an air cleaning system. 
(11) 
MICROGRID.—The 
term 
‘‘microgrid’’ 
means an interconnected system of loads and clean 
energy resources (including distributed energy re-
sources, energy storage, demand response tools, and 
other management, forecasting, and analytical tools) 
which— 
(A) is appropriately sized to meet the crit-
ical needs of its customers; 
(B) is contained within a clearly defined 
electrical boundary and has the ability to oper-
ate as a single and controllable entity; 
(C) has the ability to— 
(i) connect to, disconnect from, or run 
in parallel with the applicable grid region; 
or 
(ii) be managed and isolated from the 
applicable grid region in order to withstand 
larger disturbances and maintain the sup-
ply of electricity to a connected location; 
(D) has no point of interconnection to the 
applicable grid region with a throughput capac-
ity in excess of 20 megawatts; and 
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