114 
ties for activities described in proposals identified 
under paragraph (6)(C)— 
(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) and subject to subsection (b), nothing in 
this title affects the authority of a State or a polit-
ical subdivision of a State to adopt or enforce any 
law or regulation relating to— 
(A) clean energy or renewable energy; 
(B) the regulation of a retail electricity 
supplier; or 
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(C) greenhouse gas emissions reduction. 
(2) FEDERAL LAW.—Except as otherwise pro-
vided in this section, no law or regulation of a State 
or a political subdivision of a State may relieve a re-
tail electricity supplier from compliance with an ap-
plicable requirement of this title. 
(b) COORDINATION.—The Administrator, in con-
sultation with States that have State clean energy pro-
grams in effect, shall facilitate, to the maximum extent 
practicable, coordination between the implementation of 
this title and the relevant State clean energy program. 
(c) QUALIFIED STATES.— 
(1) DETERMINATION.— 
(A) IN GENERAL.—The Administrator, in 
consultation with States that have State clean 
energy programs in effect, shall determine 
whether each such State is a qualified State. 
(B) DEADLINES.—The Administrator shall 
make a determination under subparagraph 
(A)— 
(i) not later than January 1, 2022, 
with respect to a State that has a State 
clean energy program in effect on the date 
of enactment of this Act, and every 5 years 
thereafter; and 
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116 
(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 State clean energy pro-
gram, and every 5 years thereafter. 
(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. 
(2) COMPLIANCE.—If the Administrator deter-
mines, under paragraph (1), that a State is a quali-
fied State, a retail electricity supplier that is subject 
to and in compliance with the State clean energy 
program of such qualified State shall be deemed to 
be in compliance with the requirements of this title 
for the period during which the determination is ef-
fective. 
(3) PROHIBITION
AGAINST
DOUBLE
COUNT-
ING.—The Administrator, in consultation with 
States, shall develop a protocol to ensure that a 
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zero-emission electricity credit may not be issued 
under this title with respect to an amount of electric 
energy for which one or more State clean energy 
credits are issued under, and used for compliance 
with, a State clean energy program in a qualified 
State. 
(d) QUALIFIED ELECTRICITY GENERATION ELIGI-
BLE IN BOTH STATE AND FEDERAL PROGRAMS.— 
(1) ISSUANCE OF CREDIT.—In a State that is 
not a qualified State, 1 megawatt-hour of zero-emis-
sion electricity is eligible to be issued both a State 
clean energy credit and a zero-emission electricity 
credit pursuant to this title. 
(2) RETIREMENT OF STATE CREDITS.—Retire-
ment of a State clean energy credit for compliance 
with a State law in a State that is not a qualified 
State shall not prevent a retail electricity supplier 
from submitting a zero-emission electricity credit 
issued for the same megawatt-hour of zero-emission 
electricity for compliance with this title. 
(3) SUBMISSION OF FEDERAL CREDITS.—Sub-
mission of a zero-emission electricity credit for com-
pliance with this title shall not prevent a retail elec-
tricity supplier from retiring a State clean energy 
credit issued for the same megawatt-hour of quali-
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118 
fied electricity generation for compliance with a 
State law. 
(e) DEFINITIONS.—In this section: 
(1) QUALIFIED
STATE.—The term ‘‘qualified 
State’’ means a State— 
(A) that has a State clean energy program; 
and 
(B) in which the retail electricity suppliers 
in the State, in the aggregate, sell— 
(i) a quantity of zero-emission elec-
tricity that is greater than the quantity of 
zero-emission electricity represented by the 
zero-emission electricity credits the retail 
electricity suppliers, in the aggregate, 
would otherwise be required to submit 
under section 202; or 
(ii) of the total amount of electric en-
ergy sold in the State, a percentage of 
zero-emission electricity that is greater 
than the average minimum percentage of 
zero-emission electricity required for all re-
tail electricity suppliers under section 202. 
(2) STATE CLEAN ENERGY CREDIT.—The term 
‘‘State clean energy credit’’ means a certificate cor-
responding to the electricity generated from renew-
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119 
able or other zero-emission electricity sources that is 
issued under a law enacted by a State. 
(3) STATE
CLEAN
ENERGY
PROGRAM.—The 
term ‘‘State clean energy program’’ means one or 
more State requirements, including laws and regula-
tions— 
(A) under which retail electricity suppliers 
in the State are required to sell— 
(i) a quantity of zero-emission elec-
tricity; or 
(ii) of the total amount of electric en-
ergy sold in the State, a percentage of 
zero-emission electricity; and 
(B) for which there are compliance mecha-
nisms, including the imposition of penalties, 
that are at least as effective in enforcing com-
pliance with such requirements as the system of 
enforcement under this title. 
SEC. 207. REPORT TO CONGRESS. 
Not later than January 1, 2035, the Administrator 
shall submit to Congress a report with an evaluation and 
a forecast of the remaining barriers to achieving genera-
tion of electric energy with no emissions of greenhouse 
gases. 
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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 title. 
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(a)(6); 
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. 
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(b) WAIVERS AND MITIGATION.— 
(1) FORCE MAJEURE.—The Administrator may 
mitigate or waive a civil penalty under subsection (a) 
if the applicable retail electricity supplier or other 
entity was unable to comply with an applicable re-
quirement for reasons outside of the reasonable con-
trol of the retail electricity supplier or other entity. 
(2) REDUCTION FOR STATE PENALTIES.—The 
Administrator shall reduce the amount of a penalty 
determined under subsection (a) by the amount paid 
by the applicable retail electricity supplier to a State 
for failure to comply with the requirement of a State 
renewable energy program, if the Administrator de-
termines that the State requirement is more strin-
gent than the applicable requirement of this title. 
SEC. 210. REGULATIONS. 
(a) DEADLINE.—Except as otherwise provided in this 
title, not later than 2 years after the date of enactment 
of this title, the Administrator shall promulgate regula-
tions to implement this title. 
(b) CONSULTATION.—The Administrator shall con-
sult with the Secretary of Energy in promulgating regula-
tions under this title. 
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Subtitle B—Methane Regulation 
SEC. 211. METHANE REGULATION. 
(a) NATIONAL GOAL.—The goal of this section is to 
reduce steadily the quantity of United States methane 
emissions from the oil and natural gas sector such that 
the quantity of methane emissions in calendar year 2030 
from the oil and natural gas sector is at least 90 percent 
below the quantity of methane emissions in calendar year 
2012 from such sector. 
(b) EXISTING AUTHORITY.—Using existing authority 
of the Environmental Protection Agency, the Adminis-
trator shall issue regulations pursuant to section 111 of 
the Clean Air Act (42 U.S.C. 7411) to control methane 
emissions from the oil and natural gas sector to achieve 
the national goal established in subsection (a). 
(c) COVERED SOURCES.—The regulations promul-
gated pursuant to this section shall apply to sources of 
methane from every segment of oil and natural gas sys-
tems, including oil and natural gas production, processing, 
transmission, distribution, and storage. 
(d) REGULATIONS
TO
MEET
THE
NATIONAL 
GOAL.— 
(1) DEADLINE.—Not later than December 31, 
2023, the Administrator shall promulgate final regu-
lations under section 111 of the Clean Air Act (42 
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123 
U.S.C. 7411) to achieve the national goal established 
in subsection (a). 
(2) CONTENTS.—The regulations required by 
paragraph (1) shall provide for the establishment, 
implementation, and enforcement of standards of 
performance for new sources and existing sources, 
and guidelines for States, that include requirements 
for— 
(A) new and existing natural gas trans-
mission and distribution pipelines to reduce 
methane emissions by application of the best 
system of venting and leakage reduction; 
(B) new sources, and existing sources, with 
equipment that handles liquefied natural gas to 
reduce methane emissions from that equipment 
by application of the best system of emission re-
duction; and 
(C) new and existing offshore petroleum 
and natural gas production facilities to reduce 
methane emissions by application of the best 
system of emission reduction. 
(e) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
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(2) EXISTING SOURCE; NEW SOURCE; STAND-
ARD
OF
PERFORMANCE.—The 
terms 
‘‘existing 
source’’, ‘‘new source’’, and ‘‘standard of perform-
ance’’, have the meaning given such terms in section 
111(a) of the Clean Air Act (42 U.S.C. 7411(a)). 
TITLE III—INCENTIVES FOR THE 
ACCELERATED DEPLOYMENT 
OF 
ZERO-EMISSION 
ELEC-
TRICITY 
SEC. 300. PURPOSE. 
The purpose of this title is to provide support for any 
given power company to accelerate the deployment of an 
80-percent zero-emission electricity generation system as 
early as possible before 2030 and a 100-percent zero-emis-
sion electricity generation system as early as possible be-
fore 2035. 
Subtitle A—Incentives for the Ac-
celerated Deployment of 80-Per-
cent and 100-Percent Zero-Emis-
sion Electricity Systems 
SEC. 301. ZERO-EMISSION ELECTRICITY ACCELERATION IN-
VESTMENT TAX CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by inserting after section 48C the fol-
lowing new section: 
‘‘SEC. 48D. ZERO-EMISSION ELECTRICITY ACCELERATION 
INVESTMENT CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, in 
the case of a taxpayer who is a qualified zero-emission 
electricity taxpayer, the zero-emission electricity accelera-
tion investment credit shall be the applicable percentage 
of the cost of any qualified zero-emission electricity gener-
ating unit. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), with respect to qualified zero-emission 
electricity generating units placed in service after 
the date of the enactment of this section, the appli-
cable percentage shall be determined under the fol-
lowing table: 
‘‘In 
the 
case 
of 
property 
placed in service in a tax-
able year beginning in: 
The applicable percentage shall 
be: 
Any year before 2026 ..................................................................
50% 
2026 .............................................................................................
48% 
2027 .............................................................................................
46% 
2028 .............................................................................................
44% 
2029 .............................................................................................
42% 
2030 .............................................................................................
40% 
2031 .............................................................................................
38% 
2032 .............................................................................................
36% 
2033 .............................................................................................
34% 
2034 .............................................................................................
32% 
2035 .............................................................................................
30% 
Any year thereafter ......................................................................
0% 
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