136 
TITLE IV—CLEAN ELECTRICITY 
STANDARD 
SEC. 401. CERTIFICATION OF COST-EFFECTIVE MARKET 
PENETRATION 
OF 
CLEAN 
ELECTRICITY 
TECHNOLOGIES. 
Title VI of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2601 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 610. FEDERAL DECARBONIZATION AND INNOVATION 
ASSESSMENT PROGRAM. 
‘‘(a) IN GENERAL.—Not later than 2 years after the 
date of enactment of this section, the Secretary, after con-
sultation with the Administrator of the Environmental 
Protection Agency, shall establish a program, to be known 
as the ‘Federal Decarbonization and Innovation Assess-
ment Program’, to annually review and monitor progress 
towards the achievement of— 
‘‘(1) an 80 percent reduction in annual power 
sector carbon dioxide emissions, below the level in 
the year of enactment, by 2050; and 
‘‘(2) cost-effective market penetration of ad-
vanced clean power generation technologies, in ac-
cordance with subsection (b). 
‘‘(b) COST-EFFECTIVE MARKET PENETRATION.— 
Cost-effective market penetration of advanced clean power 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00136
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
137 
generation technologies shall be deemed to have occurred 
on the date when the Secretary determines that— 
‘‘(1) at least 3 gigawatts of new electricity gen-
erating capacity using any type of eligible technology 
has come into commercial operation since enactment 
of this section, provided that— 
‘‘(A) less than 50 percent of the capital 
costs of such capacity has been subsidized with 
Federal funds; and 
‘‘(B) at least 1 gigawatt of the new elec-
tricity generating capacity using eligible tech-
nology is coal-fired electricity generation using 
carbon capture utilization and storage tech-
nology; or 
‘‘(2) at least one type of eligible technology has 
similar 
operating 
characteristics, 
such 
as 
dispatchability upon demand and duty cycle, as ex-
isting fossil-fueled electricity generation and, based 
on data provided by the Energy Information Admin-
istration, has a total cost of electricity generation 
that is not more than 10 percent higher than the av-
erage total cost of electricity generation from such 
existing fossil-fueled electricity generation that has 
been constructed within the 5 years prior to enact-
ment of this section. 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00137
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
138 
‘‘(c) CERTIFICATION OF COST-EFFECTIVE MARKET 
PENETRATION.—Upon making the determination de-
scribed under subsection (b), but no earlier than 5 years 
after enactment of this section, the Secretary shall certify 
that cost-effective market penetration of advanced clean 
power generation technologies has occurred. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) ADVANCED
DISPATCHABLE
RENEWABLE 
GENERATION.—The term ‘advanced dispatchable re-
newable generation’ means renewable electricity gen-
eration capacity that the Secretary has determined 
can be used upon demand by grid operators, includ-
ing renewable electricity generation facilities that are 
supported by long-duration energy storage. 
‘‘(2) ADVANCED
NUCLEAR
POWER
GENERA-
TION.—The term ‘advanced nuclear power genera-
tion’ means electricity generation capacity using an 
advanced nuclear reactor, as such term is defined in 
section 640 of the Energy Policy Act of 2005. 
‘‘(3) ELIGIBLE TECHNOLOGIES.—The term ‘eli-
gible technologies’ means the following types of tech-
nologies: 
‘‘(A) Advanced nuclear power generation. 
‘‘(B) Advanced dispatchable renewable 
generation. 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00138
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
139 
‘‘(C) Fossil-fueled electricity generation 
equipped with carbon capture technology, from 
which at least 90 percent of carbon dioxide out-
put is captured and utilized or stored in a man-
ner that prevents emission to the atmosphere.’’. 
SEC. 402. FEDERAL CLEAN ELECTRICITY STANDARD. 
Title VI of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2601 et seq.) is further amended by 
adding after section 610 (as added by this Act) the fol-
lowing: 
‘‘SEC. 611. FEDERAL CLEAN ELECTRICITY STANDARD. 
‘‘(a) CLEAN ELECTRICITY REQUIREMENT.— 
‘‘(1) DEFINITION OF RETAIL ELECTRICITY SUP-
PLIER.—In this section, as determined for each cal-
endar year, the term ‘retail electricity supplier’ 
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. 
‘‘(2) IN GENERAL.—Effective beginning in the 
first compliance period of the program, and for each 
compliance period thereafter, each retail electricity 
supplier shall surrender clean electricity credits cor-
responding to the required percentage, as deter-
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00139
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
140 
mined under paragraph (3), of the electric energy it 
sells to electric consumers. 
‘‘(3) DETERMINATION OF REQUIRED PERCENT-
AGE.—The Secretary shall determine, and may ad-
just as needed, the required percentage for each 
compliance period, such that the power sector 
achieves, by 2050, a reduction in carbon dioxide 
emissions of 80 percent from emission levels in the 
year of enactment of this section, and that carbon 
dioxide emission levels are reduced linearly in each 
compliance period through 2050, provided that— 
‘‘(A) in 2026, the Secretary shall make a 
projection of the electricity generated in 2030 
that could qualify for clean electricity credits 
under subsection (d); 
‘‘(B) the required percentage for the first 
compliance period shall be the greater of— 
‘‘(i) the percentage of electricity gen-
erated that would qualify for issuance of 
clean electricity credits under subsection 
(d) in the year of enactment of this sec-
tion; and 
‘‘(ii) the Secretary’s projection for 
2030 under subparagraph (A); and 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00140
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
141 
‘‘(C) the required percentage shall be uni-
form for each retail electric supplier regulated 
under this section for any compliance period. 
‘‘(4) EARLY PROJECTION OF REQUIRED PER-
CENTAGE TO PROMOTE COMPLIANCE PLANNING.— 
Not later than two years after the date of enactment 
of this section, the Secretary shall make a projection 
of the required percentage for the first compliance 
period, extrapolating from the prior five years of 
electricity generation. 
‘‘(b) COMPLIANCE.—A retail electric supplier shall 
meet the requirements of subsection (a) for each compli-
ance period by— 
‘‘(1) submitting to the Secretary a number of 
clean electricity credits equal to the product of the 
required percentage for the compliance period times 
the volume of electric energy the retail electric sup-
plier sold to consumers during the compliance pe-
riod; 
‘‘(2) paying an amount equal to the product of 
the alternative compliance payment, in the amount 
specified in subsection (h), times the number of 
clean electricity credits that would otherwise be due 
under paragraph (1) in the compliance period; or 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00141
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
142 
‘‘(3) taking a combination of the actions de-
scribed in paragraphs (1) and (2). 
‘‘(c) FEDERAL CLEAN ELECTRICITY CREDIT TRAD-
ING PROGRAM.— 
‘‘(1) ESTABLISHMENT.—Not later than 180 
days after the program trigger date, the Secretary 
shall establish a Federal clean electricity credit ac-
counting and trading program under which clean 
electricity credits may be acquired, sold, transferred, 
and held and electric utilities may submit to the Sec-
retary clean electricity credits to comply with the re-
quirements of this section. 
‘‘(2) CLEAN
ELECTRICITY
CREDITS.—Each 
year, the Secretary shall issue to each generator of 
electric energy a quantity of clean electricity credits 
determined in accordance with subsection (d). 
‘‘(3) ADMINISTRATION.—Each clean electricity 
credit issued under this subsection shall be used only 
once for the purpose of complying with the require-
ments of this section. 
‘‘(4) DELEGATION OF PROGRAM ADMINISTRA-
TION.—In carrying out this subsection, the Sec-
retary may delegate— 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00142
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
144 
‘‘(B) 1.0 minus the quotient obtained by 
dividing— 
‘‘(i) the annual carbon intensity of the 
generator, as determined in accordance 
with paragraph (3), expressed in metric 
tons per megawatt-hour; by 
‘‘(ii) 0.82. 
‘‘(3) DETERMINATION OF ANNUAL CARBON IN-
TENSITY
OF
GENERATING
FACILITIES.—With re-
spect to paragraph (2)(B)(i), the Secretary shall de-
termine, in consultation with the Administrator of 
the Environmental Protection Agency, the annual 
carbon intensity of each generator by dividing— 
‘‘(A) the net annual carbon dioxide emis-
sions of the generator; by 
‘‘(B) the annual quantity of electric energy 
generated and sold by the generator. 
‘‘(e) DYNAMIC CREDITING.—If the Secretary ap-
proves use of a dynamic crediting methodology or meth-
odologies under section 612(c), the Secretary shall imple-
ment such methodology or methodologies in lieu of the 
crediting methodology established under subsection (d)(2) 
as a means of issuing clean electricity credits. 
‘‘(f) CIVIL PENALTIES.— 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00144
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
145 
‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
retail electric supplier that fails to meet the require-
ments to submit clean electricity credits or make al-
ternative compliance payments as required by sub-
section (b) shall be subject to a civil penalty in an 
amount equal to the product obtained of— 
‘‘(A) the number of megawatt-hours of 
electric energy sold by the retail electric sup-
plier to electric consumers in violation of sub-
section (b); and 
‘‘(B) 200 percent of the value of the appli-
cable alternative compliance payment as deter-
mined under subsection (h). 
‘‘(2) PROCEDURE FOR ASSESSING PENALTY.— 
The Secretary shall assess a civil penalty under this 
subsection in accordance with the procedures for as-
sessing a penalty against a person under section 
333(d) of the Energy Policy and Conservation Act 
(42 U.S.C. 6303(d)). 
‘‘(g) SAVINGS PROVISION.—Nothing in this section 
affects the authority of a State, or a political subdivision 
of a State, to adopt or enforce any law relating to— 
‘‘(1) clean electricity or renewable energy; 
‘‘(2) carbon dioxide emissions; or 
‘‘(3) the regulation of a retail electric supplier. 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00145
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
146 
‘‘(h) ALTERNATIVE COMPLIANCE PAYMENT.— 
‘‘(1) INITIAL AMOUNT.—The alternative compli-
ance payment for the first year of the first compli-
ance period shall be $30 per megawatt hour. 
‘‘(2) ANNUAL ADJUSTMENTS TO ALTERNATIVE 
COMPLIANCE
PAYMENT.—For each year after the 
first year of the first compliance period, the Sec-
retary shall increase the amount of the alternative 
compliance payment from the amount for the prior 
year by 5 percent. The Secretary may make an addi-
tional annual adjustment to account for inflation, as 
the Secretary may determine necessary. 
‘‘(i) REGULATIONS.—Not later than 1 year after the 
date of enactment of this section, the Secretary shall pro-
mulgate regulations to implement this section. 
‘‘(j) DEFINITIONS.—In this section: 
‘‘(1) COMPLIANCE PERIOD.—The term ‘compli-
ance period’ means the 3-year period starting on the 
program effective date and each 3-year period there-
after until 2050. 
‘‘(2) PROGRAM TRIGGER DATE.—The term ‘pro-
gram trigger date’ means January 1 of the first cal-
endar year after the Secretary issues the certifi-
cation under section 610(c). 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00146
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
147 
‘‘(3) PROGRAM
EFFECTIVE
DATE.—The term 
‘program effective date’ means the earlier of— 
‘‘(A) January 1 of the first calendar year 
that starts two years after the program trigger 
date; or 
‘‘(B) January 1 of the first calendar year 
that is more than 10 years after the date of en-
actment of this section. 
‘‘SEC. 612. USE OF DYNAMIC CREDITING TO ISSUE CLEAN 
ELECTRICITY CREDITS. 
‘‘(a) IDENTIFICATION
OF
DYNAMIC
CREDITING 
METHODOLOGIES.—Not later than 2 years after the date 
of enactment of this section, the Secretary, in consultation 
with the Administrator of the Environmental Protection 
Agency, shall identify methodologies for calculating the 
carbon dioxide emissions from electricity generating re-
sources that are avoided or displaced by increasing the 
generation from generating facilities eligible to receive 
clean electricity credits under section 611(d). In carrying 
out this subsection, the Secretary shall— 
‘‘(1) identify methodologies that estimate in an 
accurate manner the net carbon dioxide emissions 
avoided or displaced due to the electricity generated 
by each specific generating facility in each genera-
tion dispatch interval; and 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00147
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
148 
‘‘(2) identify such a methodology or methodolo-
gies, as appropriate for generation resources located 
within the region served by a regional transmission 
organization or independent system operator, as de-
fined in section 3 of the Federal Power Act (16 
U.S.C. 796), and for generation resources operating 
outside such regions. 
‘‘(b) COMMISSION REVIEW OF DYNAMIC CREDITING 
METHODOLOGIES.— 
‘‘(1) The Secretary shall share the identified 
dynamic crediting methodologies with the Commis-
sion. 
‘‘(2) Not later than 120 days after its receipt 
of the dynamic crediting methodologies from the 
Secretary, the Commission shall hold a technical 
conference in partnership with State electric utility 
regulators to evaluate the dynamic crediting meth-
odologies, including evaluation of alternatives. 
‘‘(3) Not later than 180 days after the technical 
conference held pursuant to paragraph (2), and 
after providing an opportunity for public comment, 
the Commission shall provide a report to the Sec-
retary on the technical conference and any Commis-
sion recommendations or evaluation concerning dy-
namic crediting methodologies. 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00148
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
149 
‘‘(c) DETERMINATION.—No later than 180 days fol-
lowing receipt of the report provided pursuant to sub-
section (b)(3), the Secretary, in consultation with the Ad-
ministrator of the Environmental Protection Agency, shall 
approve use of one or more identified dynamic crediting 
methodologies to issue clean electricity credits if the Sec-
retary determines that such use would— 
‘‘(1) significantly enhance confidence that a 
clean electricity standard would achieve the carbon 
dioxide emission reduction targets set forth in sec-
tion 611(a)(2); or 
‘‘(2) significantly reduce the costs of achieving 
such targets. 
‘‘(d) USE
OF DYNAMIC CREDITING METHODOLO-
GIES.—If the Secretary approves one or more identified 
dynamic crediting methodologies under subsection (c), the 
Secretary shall implement the approved methodology to 
determine the number of clean electricity credits to be 
issued to an electricity generator in lieu of the method-
ology provided in 611(d)(2). The Secretary shall apply a 
dynamic crediting factor approved under subsection (c) for 
the first full calendar year after such approval, or for the 
first year of the first compliance period, whichever is later, 
except that the Secretary may delay use of approved dy-
namic crediting methodologies by one year if the Secretary 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00149
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
150 
finds that additional time is needed for the Secretary or 
the Commission to take actions necessary for implementa-
tion under subsection (e). 
‘‘(e) IMPLEMENTATION.— 
‘‘(1) The Secretary may, by rule, require that 
the regional transmission organizations, independent 
system operators, other balancing authorities, and 
other appropriate entities provide the Secretary with 
the information necessary for the Secretary to apply 
any approved dynamic crediting methodology. 
‘‘(2) At the request of the Secretary, or upon 
its own initiative, the Commission shall consider 
whether changes to tariffs on file under section 205 
of the Federal Power Act (16 U.S.C. 824d) are nec-
essary to implement the requirements of any rule 
promulgated by the Secretary under paragraph 
(1).’’. 
SEC. 403. REGIONAL CLEAN ELECTRICITY PLANNING MOD-
ELS. 
(a) DEVELOPMENT
OF PLANNING MODELS
AND 
DATA.—Not later than 2 years after the date of enact-
ment this Act, the Secretary shall make available one or 
more regional electricity planning models and standard-
ized sets of data, including potential renewable energy 
hourly production profiles at all potential locations for re-
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00150
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
151 
newable energy deployment, that States can use to develop 
plans for portfolios of clean electricity resources that are 
capable of achieving the emission reduction trajectory pro-
vided in the clean electricity requirements established 
under section 611 of the Public Utility Regulatory Policies 
Act of 1978 at least cost and consistent with the need 
to maintain reliability. 
(b) DEVELOPMENT PROCESS.—In making planning 
models and data available under subsection (a), the Sec-
retary shall— 
(1) solicit planning models and standardized, 
accurate data sets from the national laboratories 
and universities; 
(2) hold jointly with the Commission a technical 
conference on planning models and standardized 
data sets, including hourly profiles of renewable en-
ergy production at potential deployment locations, 
and consider the input from such conference in 
choosing planning models and data sets to make 
available; and 
(3) update the planning models and data sets 
made available from time to time in response to new 
information. 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00151
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
152 
(c) USE OF MODELS BY STATES.—The Secretary 
shall encourage States to use the models and data sets 
to— 
(1) plan collaboratively with other States in the 
same North American Electric Reliability Corpora-
tion reliability region or organized electricity market 
on least-cost and reliable compliance with the clean 
electricity standard established under section 611 of 
the Public Utility Regulatory Policies Act of 1978; 
and 
(2) adopt, and from time to time update, multi- 
State clean electricity resource deployment goals 
that promote least-cost deployment consistent with 
maintaining electric reliability. 
SEC. 404. STAND-BY EMISSION PERFORMANCE STANDARDS. 
(a) ANNUAL REVIEW OF ELECTRIC POWER SECTOR 
EMISSIONS.—Not later than February 1 of the first year 
after enactment of this section, and each February 1 
thereafter, the Secretary, in consultation with the Admin-
istrator of the Environmental Protection Agency, shall 
publish a determination of the annual average level of 
greenhouse gas emissions from the electric power sector 
for the prior three calendar years. 
(b) ENFORCEABILITY.—Emission limitations for car-
bon dioxide emissions from fossil fuel-fired power plants 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00152
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
153 
established under title I of the of the Clean Air Act (42 
U.S.C. 7401 et seq.) may be enforced by a State or by 
the Administrator of the Environmental Protection Agen-
cy— 
(1) before the clean electricity standard pro-
gram trigger date, only if— 
(A) the Secretary, not earlier than 5 years 
after the date of enactment of this Act, deter-
mines under subsection (a) that the 5-year an-
nual average level of electric power sector 
greenhouse gas emissions exceeded the annual 
average level of such emissions for the pre-
ceding 5-year period by at least 6 percent; or 
(B) the Secretary finds that significantly 
less than the full amount of funding authorized 
for programs under this Act has been appro-
priated, resulting in substantial limitation to or 
delay of the technology advancement program 
elements of this Act; or 
(2) after the end of a clean electricity standard 
compliance period, if the clean electricity require-
ment is not enforced for the compliance period. 
(c) CLEAN AIR ACT AUTHORITIES.—Except as pro-
vided in this section, neither a State nor the Administrator 
of the Environmental Protection Agency may enforce any 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00153
Fmt 6652
Sfmt 6201
E:\BILLS\H9054.IH
H9054
154 
emission limitation for carbon dioxide emissions from fos-
sil fuel-fired electric power generating units established 
under title I of the of the Clean Air Act (42 U.S.C. 7401 
et seq.). 
(d) DEFINITIONS.—In this section: 
(1) COMPLIANCE PERIOD.—The term ‘‘compli-
ance period’’ has the meaning given such term in 
section 611(k)(1) of the Public Utility Regulatory 
Policies Act of 1978. 
(2) PROGRAM TRIGGER DATE.—The term ‘‘pro-
gram trigger date’’ has the meaning given such term 
in section 611(k)(2) of the Public Utility Regulatory 
Policies Act of 1978. 
Æ 
VerDate Sep 11 2014 
21:31 Feb 13, 2021
Jkt 019200
PO 00000
Frm 00154
Fmt 6652
Sfmt 6301
E:\BILLS\H9054.IH
H9054