Secretary, not less frequently than annually, 
verification of the quantity of that generation in 
such form, in such manner, and containing such in-
formation as the Secretary may require. 
‘‘(6) CARBON DIOXIDE EQUIVALENT.— 
‘‘(A) IN GENERAL.—The term ‘carbon di-
oxide equivalent’ means the number of metric 
tons of carbon dioxide emissions with the same 
global warming potential over a 100-year period 
as 1 metric ton of another greenhouse gas. 
‘‘(B) GLOBAL WARMING POTENTIAL.—For 
purposes of subparagraph (A), global warming 
potential shall be determined in accordance with 
the Fifth Assessment Report of the Intergov-
ernmental Panel on Climate Change. 
‘‘(7) CARBON
INTENSITY.—The term ‘carbon 
intensity’ means the carbon dioxide equivalent emis-
sions associated with the generation of 1 megawatt- 
hour of electric energy by a generator. 
‘‘(8) CLEAN ENERGY.—The term ‘clean energy’ 
means electric energy that is— 
‘‘(A) generated at a facility using— 
‘‘(i) renewable energy; 
‘‘(ii) qualified renewable biomass; 
‘‘(iii) hydropower; 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(iv) nuclear power; 
‘‘(v) qualified waste-to-energy; 
‘‘(vi) qualified low-carbon fuels; 
‘‘(vii) a qualified combined heat and 
power system; or 
‘‘(viii) any other source of energy in a 
manner that ensures that the facility does 
not exceed the applicable carbon intensity; 
‘‘(B) generated at a facility that— 
‘‘(i) captures the carbon dioxide 
from— 
‘‘(I) a waste stream of the facil-
ity; 
‘‘(II) another waste stream; or 
‘‘(III) the atmosphere directly; 
and 
‘‘(ii) prevents the release of the cap-
tured carbon dioxide into the atmosphere; 
or 
‘‘(C) dispatched from a qualified energy 
storage system. 
‘‘(9) CLEAN ENERGY PERCENTAGE.— 
‘‘(A) IN GENERAL.—The term ‘clean en-
ergy percentage’ means the percentage of clean 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
energy consumed by all electric consumers of a 
retail electricity supplier. 
‘‘(B) CALCULATION.—For purposes of sub-
paragraph (A), the clean energy percentage of 
a retail electricity supplier shall be equal to the 
quotient obtained by dividing— 
‘‘(i) the sum of— 
‘‘(I) the quantity of clean energy 
sold by the retail electricity supplier 
to electric consumers; and 
‘‘(II) the quantity of behind-the- 
meter generation consumed by electric 
consumers served by the retail elec-
tricity supplier; by 
‘‘(ii) the base quantity of the retail 
electricity supplier. 
‘‘(C) DETERMINATION.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (B), not later than 180 days 
after the date of enactment of this section, 
the Secretary shall develop a process for 
determining the quantities of— 
‘‘(I) clean energy sold by a retail 
electricity supplier to electric con-
sumers, taking into account— 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(aa) the need to quantify, 
without double counting, appro-
priate quantities of clean en-
ergy— 
‘‘(AA) owned by the re-
tail electricity supplier; 
‘‘(BB) obtained by the 
retail 
electricity 
supplier 
through 
power 
purchase 
agreements; 
‘‘(CC) imported by the 
retail electricity supplier; 
‘‘(DD) 
purchased 
by 
the retail electricity supplier 
from wholesale markets; and 
‘‘(EE) purchased by the 
retail 
electricity 
supplier 
through existing renewable 
or clean energy credits and 
certificates; and 
‘‘(bb) 
appropriate 
dif-
ferences between— 
‘‘(AA) retailers oper-
ating in organized wholesale 
markets; and 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(BB) retailers oper-
ating in vertically integrated 
market contexts; and 
‘‘(II) behind-the-meter generation 
consumed 
by 
electric 
consumers 
served by a retail electricity supplier, 
including by requiring from the retail 
electricity 
supplier 
relevant 
docu-
mentation of behind-the-meter electric 
energy consumption, such as records 
associated with net-metering. 
‘‘(ii) QUANTIFYING CLEAN ENERGY.— 
For purposes of quantifying clean energy 
and behind-the-meter generation under 
clause (i), the Secretary shall use the 
methods used to assign a quantity of cred-
its to generators under subsection (f). 
‘‘(10) DISPATCHABLE
LOW-EMISSION
TECH-
NOLOGY.—The term ‘dispatchable low-emission tech-
nology’ means a generator that uses a technology or 
combination of technologies that— 
‘‘(A) has a carbon intensity of not more 
than 0.05 metric tons of carbon dioxide equiva-
lent per megawatt-hour; 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(B) has the ability, at any time, to start, 
increase, decrease, and stop energy production 
on demand; 
‘‘(C) is placed into service after the date of 
enactment of this section; and 
‘‘(D) is not a dispatchable zero-emission 
technology. 
‘‘(11) DISPATCHABLE
ZERO-EMISSION
TECH-
NOLOGY.—The term ‘dispatchable zero-emission 
technology’ means a generator that uses a tech-
nology or combination of technologies that— 
‘‘(A) has a carbon intensity of zero; 
‘‘(B) has the ability, at any time, to start, 
increase, decrease, and stop energy production 
on demand; and 
‘‘(C) is placed into service after the date of 
enactment of this section. 
‘‘(12) ENERGY
STORAGE
SYSTEM.—The term 
‘energy storage system’ means any equipment or fa-
cility relating to the electric grid that— 
‘‘(A) is capable of absorbing energy, stor-
ing the energy for a period of time, and dis-
patching the energy as electric energy; and 
‘‘(B) uses mechanical, electrochemical, bio-
chemical, or thermal processes— 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(i) to store energy generated at an 
earlier time for use at a later time; or 
‘‘(ii) to store energy generated from a 
mechanical process that would otherwise be 
wasted for delivery at a later time. 
‘‘(13) FEDERAL CLEAN ENERGY CREDIT.—The 
term ‘Federal clean energy credit’ means a credit 
issued pursuant to subsection (e). 
‘‘(14) 
GENERATOR.—The 
term 
‘generator’ 
means a unit or system of units that— 
‘‘(A) generates not fewer than 20 mega-
watt-hours of electric energy per calendar year; 
‘‘(B) delivers electric energy to the grid; 
and 
‘‘(C) is located in the United States. 
‘‘(15) LIFECYCLE
GREENHOUSE
GAS
EMIS-
SIONS.—The term ‘lifecycle greenhouse gas emis-
sions’ means the aggregate quantity of carbon diox-
ide equivalent emissions relating to the full lifecycle 
of electric energy production, including— 
‘‘(A) extraction, production, and distribu-
tion of fuels and materials for physical capital; 
‘‘(B) power generation and transmission; 
and 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(C) handling and disposal of waste, by-
products, and end-of-life materials. 
‘‘(16) 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 
simultaneous or sequential generation of elec-
trical energy and thermal energy; 
‘‘(B) produces at least— 
‘‘(i) 20 percent of the useful energy of 
the system in the form of electricity; and 
‘‘(ii) 20 percent of the useful energy 
in the form of useful thermal energy; 
‘‘(C) to the extent that the system uses 
biomass, uses only qualified renewable biomass; 
and 
‘‘(D) operates with an energy efficiency 
percentage, as determined in accordance with 
section 48(c)(3)(C)(i) of the Internal Revenue 
Code of 1986, of greater than 50 percent. 
‘‘(17) QUALIFIED DISPATCHABLE.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
dispatchable’ means— 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(i) with respect to a dispatchable 
low-emission technology, a dispatchable 
low-emission technology that— 
‘‘(I) is 1 of the first 5 original 
demonstrations in the United States 
of a particular innovative technology 
providing not less than 20 megawatts 
of electric energy generation capacity; 
‘‘(II) generates revenue from the 
sale of electric energy; and 
‘‘(III) is placed into service be-
fore January 1, 2030; and 
‘‘(ii) with respect to a dispatchable 
zero-emission technology, means a dis-
patchable zero-emission technology that— 
‘‘(I) is 1 of the first 5 original 
demonstrations in the United States 
of a particular innovative technology 
providing not less than 20 megawatts 
of electric energy generation capacity; 
‘‘(II) generates revenue from the 
sale of electric energy; and 
‘‘(III) is placed into service be-
fore January 1, 2040. 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(B) DETERMINATION.—For purposes of 
determining whether a dispatchable low-emis-
sion technology or dispatchable zero-emission 
technology is an original demonstration of an 
innovative technology under clause (i)(I) or 
(ii)(I), respectively, of subparagraph (A), the 
Secretary shall— 
‘‘(i) develop a process that— 
‘‘(I) ensures that each innovative 
technology exhibits a significant tech-
nical or economic advancement, as 
compared to existing technologies; and 
‘‘(II) includes consideration of an 
application submitted to the Secretary 
by the owner of the dispatchable low- 
emission technology or dispatchable 
zero-emission technology; 
‘‘(ii) not later than 90 days after the 
date of submission of an application under 
clause (i)(II), make a determination re-
garding whether to approve the applica-
tion; and 
‘‘(iii) subject to subparagraph (C), 
provide to each owner, the application of 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
which is approved under clause (ii), a cer-
tification— 
‘‘(I) that the applicable generator 
is a qualified dispatchable low-emis-
sion technology or dispatchable zero- 
emission technology; and 
‘‘(II) that shall be surrendered to 
earn Federal clean energy credits 
under subsection (f)(10). 
‘‘(C) TERMINATION OF CERTIFICATION.— 
Except as otherwise provided by the Secretary, 
a certification provided under subparagraph 
(B)(iii) shall cease to have any force or effect 
if the Secretary determines that construction of 
the applicable generator— 
‘‘(i) does not commence by the date 
that is 2 years after the date of certifi-
cation; or 
‘‘(ii) has been suspended indefinitely. 
‘‘(18) QUALIFIED ENERGY STORAGE SYSTEM.— 
The term ‘qualified energy storage system’ means an 
energy storage system that stores clean energy— 
‘‘(A) that would otherwise be wasted or 
curtailed; 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(B) with verifiable carbon intensity that 
does not exceed the applicable carbon intensity; 
and 
‘‘(C) for which no Federal clean energy 
credit is issued. 
‘‘(19) QUALIFIED
GENERATION.—The term 
‘qualified generation’ means the number of mega-
watt-hours of electric energy that a generator— 
‘‘(A)(i) generates; or 
‘‘(ii) generates and stores using a con-
nected energy storage system; and 
‘‘(B)(i) sells for resale; 
‘‘(ii) if the generator is owned by a retail 
electricity supplier, sells to electric consumers; 
or 
‘‘(iii) if the generator is a behind-the-meter 
generation system, consumes onsite for a useful 
purpose. 
‘‘(20) QUALIFIED LOW-CARBON FUEL.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
low-carbon fuel’ means a fuel used to generate 
electric energy that— 
‘‘(i) is produced through any process 
(but not including any processes that use 
electric energy as an input) that signifi-
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
cantly limits or avoids greenhouse gas 
emissions; and 
‘‘(ii) does not release greenhouse gas 
or other pollutant emissions during com-
bustion. 
‘‘(B) INCLUSION.—The term ‘qualified 
low-carbon fuel’ includes— 
‘‘(i) ammonia; and 
‘‘(ii) hydrogen. 
‘‘(21) QUALIFIED RENEWABLE BIOMASS.—The 
term ‘qualified renewable biomass’ means— 
‘‘(A) any crop byproduct or crop residue 
harvested from actively managed or fallow agri-
cultural land that is cleared before the date of 
enactment of this section, if the harvesting of 
the residue does not lead to a net decline in soil 
organic matter for the applicable land; 
‘‘(B) any planted tree, brush, slash, or res-
idue from an actively managed tree farm dedi-
cated to energy crop production and located on 
forest land established for planted tree crop 
production before the date of enactment of this 
section; 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(C) any brush, slash, or residue from an 
actively managed forest that is certified to 
achieve compliance with applicable— 
‘‘(i) sustainability standards of the 
Forest Stewardship Council; or 
‘‘(ii) standards endorsed by the Pro-
gramme for the Endorsement of Forest 
Certification, including— 
‘‘(I) the Sustainable Forestry Ini-
tiative; and 
‘‘(II) the American Tree Farm 
System; 
‘‘(D) algae; 
‘‘(E) nonhazardous plant matter derived 
from landscape right-of-way trimmings; and 
‘‘(F) vegetative matter removed from an 
area located not more than 200 yards from a 
building, residence, or campground for the pur-
pose of hazardous fuels management. 
‘‘(22) 
QUALIFIED
WASTE-TO-ENERGY.—The 
term ‘qualified waste-to-energy’ means energy pro-
duced— 
‘‘(A) from the combustion of— 
‘‘(i) 
post-recycled 
municipal 
solid 
waste; 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(ii) gas produced from the gasifi-
cation or pyrolization of post-recycled mu-
nicipal solid waste; 
‘‘(iii) biogas; 
‘‘(iv) landfill methane; 
‘‘(v) animal waste or animal byprod-
ucts; 
‘‘(vi) food waste; 
‘‘(vii) wood, paper products that are 
not commonly recyclable, and vegetation 
(including trees and trimmings, yard 
waste, pallets, railroad ties, crates, and 
solid-wood manufacturing and construction 
debris), if diverted from or separated from 
other waste out of a municipal waste 
stream; or 
‘‘(viii) any byproduct of a wood or 
paper mill operation, including lignin in 
spent pulping liquors; and 
‘‘(B) at a facility that the Secretary has 
certified, on an annual basis, is in compliance 
with all applicable Federal and State environ-
mental permits, including— 
‘‘(i) in the case of a facility that com-
mences operation before the date of enact-
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
ment of this section, compliance with emis-
sion 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 section to new 
facilities within the applicable source cat-
egory; and 
‘‘(ii) in the case of a facility that pro-
duces electric or thermal energy from the 
combustion, pyrolization, or gasification of 
municipal solid waste, certification that 
each local government unit from which the 
waste originates operates, participates in 
the operation of, contracts for, or other-
wise provides for recycling services for resi-
dents of the local government unit. 
‘‘(23) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means solar, wind, ocean, current, wave, 
tidal, or geothermal energy. 
‘‘(24) RETAIL ELECTRICITY SUPPLIER.— 
‘‘(A) IN GENERAL.—The term ‘retail elec-
tricity supplier’, as determined for each cal-
endar year, means an entity in the United 
States that sold not fewer than 20 megawatt- 
hours of electric energy to electric consumers 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
for purposes other than resale during the pre-
ceding calendar year. 
‘‘(B) INCLUSIONS AND LIMITATIONS.—For 
purposes of making a determination under sub-
paragraph (A) with respect to an entity— 
‘‘(i) any sale of electric energy made 
by an affiliate of the entity to an electric 
consumer (other than to a lessee or tenant 
of the affiliate) for purposes other than re-
sale may be considered to be a sale made 
by the entity; and 
‘‘(ii) any sale of electric energy made 
by the entity to an affiliate, lessee, or ten-
ant of the entity shall not be considered to 
be a sale to an electric consumer. 
‘‘(C) AFFILIATE.—For purposes of sub-
paragraph (B), the term ‘affiliate’, with respect 
to an entity, means an individual or entity that 
directly or indirectly owns or controls, is owned 
or controlled by, or is under common ownership 
or control with, the entity, as determined in ac-
cordance with applicable regulations of the Sec-
retary. 
‘‘(c) CLEAN ENERGY REQUIREMENT.— 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(1) IN
GENERAL.—Beginning in the second 
full calendar year beginning after the date of enact-
ment of this section, and each calendar year there-
after, each retail electricity supplier shall sell a 
quantity of clean energy equal to the product ob-
tained by multiplying— 
‘‘(A) the applicable clean energy percent-
age determined for the retail electricity supplier 
for the calendar year under paragraph (2); and 
‘‘(B) the base quantity of the retail elec-
tricity supplier for the applicable calendar year. 
‘‘(2) DETERMINATION OF APPLICABLE CLEAN 
ENERGY PERCENTAGES.— 
‘‘(A) INITIAL PERCENTAGE.— 
‘‘(i) USE
OF
BASELINE
PERCENT-
AGE.—For purposes of the determinations 
required under subparagraphs (B) and 
(C), the applicable clean energy percentage 
for a retail electricity supplier for the cal-
endar year during which this section is en-
acted shall be the baseline percentage of 
the retail electricity supplier. 
‘‘(ii) NEW RETAIL ELECTRICITY SUP-
PLIERS.—For purposes of the determina-
tions required under subparagraphs (B) 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
and (C), for a retail electricity supplier 
that is established after the date of enact-
ment of this section, the Secretary shall 
determine the appropriate applicable clean 
energy percentage for the first calendar 
year beginning after the date on which the 
retail electricity supplier commences oper-
ation. 
‘‘(B) SUBSEQUENT
DETERMINATIONS.— 
Subject to paragraph (3), for the first calendar 
year beginning after the date of enactment of 
this section and each calendar year thereafter 
until the calendar year for which the applicable 
clean energy percentage for a retail electricity 
supplier is 90 percent, the applicable clean en-
ergy percentage for the retail electricity supplier 
under paragraph (1) shall be— 
‘‘(i) in the case of a retail electricity 
supplier with not less than 2,000,000 
megawatt-hours of retail electric energy 
sales during the calendar year in which 
this section is enacted, or a retail elec-
tricity supplier with less than 2,000,000 
megawatt-hours of retail electric energy 
sales during that calendar year but more 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
tail electricity supplier for the preceding 
calendar year, as increased by the small 
growth rate for the calendar year, as deter-
mined under paragraph (3)(D), up to a 
maximum of 90 percent. 
‘‘(C) FINAL TARGET PERCENTAGE.—Effec-
tive beginning in calendar year 2040, for each 
calendar year beginning after the first calendar 
year for which the applicable clean energy per-
centage of a retail electricity supplier under 
subparagraph (B) is 90 percent, the applicable 
clean energy percentage for the retail electricity 
supplier under paragraph (1) shall be increased 
by 1 percentage point, up to a maximum of 100 
percent. 
‘‘(3) RATE INCREASE ADJUSTMENTS.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) RATE DECREASE-ADJUSTED CAL-
ENDAR
YEAR.—The term ‘rate decrease- 
adjusted calendar year’ means any cal-
endar year beginning after a calendar year 
for which alternative compliance payments 
accounted for greater than 10 percent of 
total compliance obligations of all retail 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
electricity providers under subsection (d) 
for that calendar year. 
‘‘(ii) RATE INCREASE-ADJUSTED CAL-
ENDAR YEAR.—The term ‘rate increase-ad-
justed calendar year’ means any calendar 
year beginning after a 2-consecutive cal-
endar year period during which, for each of 
those 2 consecutive calendar years, the av-
erage price of a Federal clean energy cred-
it for the 3 preceding calendar years was 
below the rate-increased floor price. 
‘‘(iii) 
RATE-INCREASED
FLOOR 
PRICE.—The term ‘rate-increased floor 
price’ means the difference between— 
‘‘(I) the alternative compliance 
payment for the applicable calendar 
year; and 
‘‘(II)(aa) during the period be-
ginning on the date of enactment of 
this section and ending on December 
31 of the second full calendar year be-
ginning after that date of enactment, 
a rate of 1.5 cents per kilowatt-hour; 
and 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(bb) for each calendar year 
thereafter, the rate described in item 
(aa) for the preceding calendar year— 
‘‘(AA) increased by 3 per-
cent; and 
‘‘(BB) adjusted for inflation, 
as the Secretary determines to be 
necessary. 
‘‘(B) FAST GROWTH RATE.—For purposes 
of paragraph (2)(B)(i)(I), the fast growth rate 
shall be— 
‘‘(i) for the calendar year in which 
this section is enacted, 2.75 percentage 
points; 
‘‘(ii) for the first calendar year begin-
ning after the date of enactment of this 
section and each calendar year thereafter 
that is not a rate increase-adjusted cal-
endar year or a rate decrease-adjusted cal-
endar year, the fast growth rate for the 
preceding calendar year; 
‘‘(iii) for a rate increase-adjusted cal-
endar year, the fast growth rate for the 
preceding calendar year, increased by 0.5 
percentage points; and 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(iv) for a rate decrease-adjusted cal-
endar year, the fast growth rate for the 
preceding calendar year, decreased by 0.25 
percentage points, down to a minimum of 
2.75 percentage points. 
‘‘(C) SLOW GROWTH RATE.—For purposes 
of paragraph (2)(B)(i)(II), the slow growth rate 
shall be— 
‘‘(i) for the calendar year in which 
this section is enacted, 1.75 percentage 
points; 
‘‘(ii) for the first calendar year begin-
ning after the date of enactment of this 
section and each calendar year thereafter 
that is not a rate increase-adjusted cal-
endar year or a rate decrease-adjusted cal-
endar year, the slow growth rate for the 
preceding calendar year; 
‘‘(iii) for a rate increase-adjusted cal-
endar year, the slow growth rate for the 
preceding calendar year, increased by 0.5 
percentage points; and 
‘‘(iv) for a rate decrease-adjusted cal-
endar year, the slow growth rate for the 
preceding calendar year, decreased by 0.25 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
percentage points, down to a minimum of 
1.75 percentage points. 
‘‘(D) SMALL
GROWTH
RATE.—For pur-
poses of paragraph (2)(B)(ii), the small growth 
rate shall be— 
‘‘(i) for the calendar year in which 
this section is enacted, 1.5 percentage 
points; 
‘‘(ii) for the first calendar year begin-
ning after the date of enactment of this 
section and each calendar year thereafter 
that is not a rate increase-adjusted cal-
endar year or a rate decrease-adjusted cal-
endar year, the small growth rate for the 
preceding calendar year; 
‘‘(iii) for a rate increase-adjusted cal-
endar year, the small growth rate for the 
preceding calendar year, increased by 0.5 
percentage points; and 
‘‘(iv) for a rate decrease-adjusted cal-
endar year, the small growth rate for the 
preceding calendar year, decreased by 0.25 
percentage points, down to a minimum of 
1.5 percentage points. 
‘‘(d) MEANS OF COMPLIANCE.— 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(1) IN GENERAL.—A retail electricity supplier 
shall annually achieve compliance with subsection (c) 
by— 
‘‘(A) submitting to the Secretary Federal 
clean energy credits; 
‘‘(B) submitting to the Secretary docu-
mentation of the quantity of behind-the-meter 
generation consumed by electric consumers 
served by the retail electricity supplier; 
‘‘(C) making alternative compliance pay-
ments of 3 cents per kilowatt-hour in accord-
ance with subsection (i); or 
‘‘(D) taking a combination of actions de-
scribed in subparagraphs (A) through (C). 
‘‘(2) FAILURE TO ESTABLISH FEDERAL CLEAN 
ENERGY CREDIT TRADING PROGRAM.—If the Sec-
retary does not establish a Federal clean energy 
credit trading program under subsection (e), a retail 
electricity supplier shall achieve compliance with 
subsection (c) by— 
‘‘(A) submitting to the Secretary docu-
mentation of the clean energy percentage of the 
retail electricity supplier; 
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS
‘‘(B) making alternative compliance pay-
ments of 3 cents per kilowatt-hour in accord-
ance with subsection (i); or 
‘‘(C) taking a combination of actions de-
scribed in subparagraphs (A) and (B). 
‘‘(e) FEDERAL CLEAN ENERGY CREDIT TRADING 
PROGRAM.— 
‘‘(1) ESTABLISHMENT.—Not later than 1 year 
after the date of enactment of this section, the Sec-
retary shall establish a Federal clean energy credit 
trading program under which— 
‘‘(A) 1 Federal clean energy credit rep-
resents 1 megawatt-hour of clean energy gen-
erated by a generator; 
‘‘(B) retail electricity suppliers may submit 
to the Secretary Federal clean energy credits to 
certify compliance by the retail electricity sup-
pliers with subsection (c); and 
‘‘(C) those Federal clean energy credits are 
issued, recorded, tracked, and transferred. 
‘‘(2) CLEAN ENERGY CREDITS.—Except as pro-
vided in subparagraphs (B) and (C) of paragraph 
(3), the Secretary shall issue to each generator and 
qualified energy storage system a quantity of Fed-
VerDate Sep 11 2014 
22:18 May 15, 2019
Jkt 089200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
\\ALPHA3\E\BILLS\H2597.IH
H2597
kjohnson on DSK79L0C42 with BILLS