‘‘(B) SPECIAL RULE.—A facility described 
in subparagraph (A) which was placed in serv-
ice at least 7 years before the date of enactment 
of this section shall commencing with the year 
in which such date of enactment occurs, reduce 
the amount calculated under subparagraph 
(A)(ii) each year, on a cumulative basis, by the 
average percentage decrease in the annual kilo-
watt hour production for the 7-year period de-
scribed in subparagraph (A)(ii) with such cu-
mulative sum not to exceed 30 percent. 
‘‘(6) INCREMENTAL HYDROPOWER.—The term 
‘incremental hydropower’ means additional energy 
generated as a result of efficiency improvements or 
capacity additions made on or after the date of en-
actment of this section or the effective date of an ex-
isting applicable State renewable portfolio standard 
program at a hydroelectric facility that was placed 
in service before that date. The term does not in-
clude additional energy generated as a result of 
operational changes not directly associated with effi-
ciency improvements or capacity additions. Effi-
ciency improvements and capacity additions shall be 
measured on the basis of the same water flow infor-
mation used to determine a historic average annual 
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generation baseline for the hydroelectric facility and 
certified by the Secretary or the Federal Energy 
Regulatory Commission. 
‘‘(7) NEW
RENEWABLE
ENERGY.—The term 
‘new renewable energy’ means— 
‘‘(A) electric energy generated at a facility 
(including a distributed generation facility) 
placed in service on or after January 1, 2003, 
from— 
‘‘(i) solar, wind, or geothermal energy 
or ocean energy; 
‘‘(ii) biomass (as defined in section 
203(a) of the Energy Policy Act of 2005); 
‘‘(iii) landfill gas; or 
‘‘(iv) incremental hydropower; and 
‘‘(B) for electric energy generated at a fa-
cility (including a distributed generation facil-
ity) placed in service prior to the date of enact-
ment of this section— 
‘‘(i) the additional energy above the 
average generation in the 3 years pre-
ceding the date of enactment of this sec-
tion at the facility from— 
‘‘(I) solar or wind energy or 
ocean energy; 
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‘‘(II) biomass (as defined in sec-
tion 203(a) of the Energy Policy Act 
of 2005); 
‘‘(III) landfill gas; or 
‘‘(IV) incremental hydropower. 
‘‘(ii) the incremental geothermal pro-
duction. 
‘‘(8) OCEAN ENERGY.—The term ‘ocean energy’ 
includes current, wave, tidal, and thermal energy. 
‘‘(i) SUNSET.—This section expires on December 31, 
2031.’’. 
SEC. 15. FEDERAL ENERGY PURCHASE REQUIREMENT. 
Section 203(a) of the Energy Policy Act of 2005 (42 
U.S.C. 15852(a)) is amended— 
(1) by striking ‘‘seek to ensure that, to the ex-
tent economically feasible and technically prac-
ticable’’ and inserting ‘‘ensure that’’; 
(2) in paragraph (1), by striking ‘‘3 percent in 
fiscal years 2007 through 2009’’ and inserting ‘‘3 
percent in fiscal year 2007 and 5 percent in fiscal 
years 2008 through 2010’’; 
(3) in paragraph (2), by striking ‘‘5 percent in 
fiscal years 2010 through 2012’’ and inserting ‘‘11 
percent in fiscal years 2011 through 2014’’; and 
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(4) in paragraph (3), by striking ‘‘7.5 percent 
in fiscal year 2013’’ and inserting ‘‘20 percent in 
fiscal year 2015’’. 
SEC. 16. SCHOOL RENEWABLE ENERGY USE. 
The Secretary of Energy shall establish a program 
to make grants to local schools and school districts to pro-
mote and facilitate the use of renewable energy sources 
in school facilities. 
Æ 
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