has reason to believe it will not have sufficient renewable 
energy credits to comply with subsection (a) may— 
‘‘(1) submit a plan to the Secretary dem-
onstrating that the retail electric supplier will earn 
sufficient credits within the next 3 calendar years 
which, when taken into account, will enable the re-
tail electric supplier to meet the requirements of 
subsection (a) for calendar year 2009 and the subse-
quent calendar years involved; and 
‘‘(2) upon the approval of the plan by the Sec-
retary, apply renewable energy credits that the plan 
demonstrates will be earned within the next 3 cal-
endar years to meet the requirements of subsection 
(a) for each calendar year involved. 
The retail electric supplier must repay all of the borrowed 
renewable energy credits by submitting an equivalent 
number of renewable energy credits, in addition to those 
otherwise required under subsection (a), by calendar year 
2010 or any earlier deadlines specified in the approved 
plan. Failure to repay the borrowed renewable energy 
credits shall subject the retail electric supplier to civil pen-
alties under subsection (h) for violation of the require-
ments of subsection (a) for each calendar year involved. 
‘‘(g) CREDIT COST CAP.—The Secretary shall offer 
renewable energy credits for sale at the lesser of 3 cents 
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per kilowatt-hour or 200 percent of the average market 
value of renewable credits for the applicable compliance 
period. On January 1 of each year following calendar year 
2008, the Secretary shall adjust for inflation the price 
charged per credit for such calendar year, based on the 
Gross Domestic Product Implicit Price Deflator. 
‘‘(h) ENFORCEMENT.—The Secretary may bring an 
action in the appropriate United States district court to 
impose a civil penalty on a retail electric supplier that does 
not comply with subsection (a), unless the retail electric 
supplier was unable to comply with subsection (a) for rea-
sons outside of the supplier’s reasonable control (including 
weather-related damage, mechanical failure, lack of trans-
mission capacity or availability, strikes, lockouts, actions 
of a governmental authority). A retail electric supplier who 
does not submit the required number of renewable energy 
credits under subsection (a) shall be subject to a civil pen-
alty of not more than the greater of 3 cents or 200 percent 
of the average market value of credits for the compliance 
period for each renewable energy credit not submitted.. 
‘‘(i) INFORMATION
COLLECTION.—The Secretary 
may collect the information necessary to verify and 
audit— 
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‘‘(1) the annual electric energy generation and 
renewable energy generation of any entity applying 
for renewable energy credits under this section; 
‘‘(2) the validity of renewable energy credits 
submitted by a retail electric supplier to the Sec-
retary; and 
‘‘(3) the quantity of electricity sales of all retail 
electric suppliers. 
‘‘(j) ENVIRONMENTAL
SAVINGS
CLAUSE.—Incre-
mental hydropower shall be subject to all applicable envi-
ronmental laws and licensing and regulatory requirements. 
‘‘(k) EXISTING PROGRAMS.—This section does not 
preclude a State from imposing additional renewable en-
ergy requirements in that State, including specifying eligi-
ble technologies under such State requirements. 
‘‘(l) DEFINITIONS.—For purposes of this section: 
‘‘(1) BIOMASS.—The term ‘biomass’ means any 
organic material that is available on a renewable or 
recurring basis, including dedicated energy crops, 
trees grown for energy production, wood waste and 
wood residues, plants (including aquatic plants, 
grasses, and agricultural crops), residues, fibers, 
animal wastes and other organic waste materials 
(but not including unsegregated municipal solid 
waste (garbage)), and fats and oils, except that with 
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