the total electric energy generated by any electric genera-
tor, electric energy generated by means of hydroelectric
facilities shall not be taken into account. Nothing in this
section shall be construed to prohibit any State from re-
quiring additional renewable energy generation in that
State under any program adopted by the State.
(b) REQUIRED ANNUAL PERCENTAGE.—From cal-
endar year 2001 through calendar year 2004, the required
annual percentage for each electric generator in the State
shall be 2 percent. Thereafter the required annual percent-
age for each such generator shall be as set forth in the
following table:
Minimum
Calendar year:
Percentage:
2005 .........................................................................................
2010 .........................................................................................
(c) SUBMISSION OF CREDITS.—An electric generator
may satisfy the requirements of subsection (a) through the
submission of—
(1) Renewable Energy Credits issued by the
Commission under this section for renewable energy
generated by such electric generator in such cal-
endar year.
(2) Renewable Energy Credits issued by the
Commission under this section to any other electric
generator for renewable energy generated in such
calendar year by such other generator and acquired
by such electric generator.
(3) Any combination of the foregoing.
A Renewable Energy Credit that is submitted to the Com-
mission for any year may not be used for any other pur-
poses thereafter.
(d) ISSUANCE OF RENEWABLE ENERGY CREDITS.—
(1) IN GENERAL.—The Commission shall estab-
lish, by rule after notice and opportunity for hearing
but not later than 120 days after the enactment of
this Act, a program to issue Renewable Energy
Credits to electric generators that sell electric energy
to any other person. Renewable Energy Credits shall
be identified by type of generation and facility loca-
tion (State). Under such program, the Commission
shall issue one Renewable Energy Credit to any per-
son who generates and sells to any other person one
unit of electric energy through the use of renewable
energy generation.
(2) FEES.—The Commission shall impose and
collect a fee on recipients of Renewable Energy
Credits in an amount equal to the administrative
costs of issuing, recording, monitoring the sale or ex-
change, and tracking of such credits. The failure or
refusal of any person to pay such fee shall be subject
to a civil penalty equal to 2 and one-half times the
amount of the unpaid fees. The Commission shall
bring an action in the appropriate United States dis-
trict court to collect any unpaid fees and to impose
a civil penalty on any person who fails or refuses to
pay such fee imposed under this section.
(3) PURPA CONTRACTS.—In the case of re-
newable energy sold by the generator to a State reg-
ulated electric utility under a contract (including but
not limited to a contract entered into before the date
of enactment of this Act) that is subject to section
210 of the Public Utility Regulatory Policies Act of
1978, for the duration of such contract, the utility
shall be treated for purposes of the other provisions
of this section as the generator of such energy un-
less such generator and utility agree to terminate
such contract prior to the expiration date set forth
in the contract.
(e) SALE OR EXCHANGE.—Renewable Energy Credits
may be sold or exchanged by the person to whom issued
or by any other person who acquires the credit. A Renew-
able Energy Credit for any year that is not used to satisfy
the minimum renewable generation requirement of sub-
section (a) for that year may be not be carried forward
for use in another year. The Commission shall promulgate
regulations to provide for the issuance, recording, monitor-
ing the sale or exchange, and tracking of such credits. The
Commission shall maintain records of all sales and ex-
changes of credits. No such sale or exchange shall be valid
unless recorded by the Commission.
(f) ENFORCEMENT.—The Commission shall bring an
action in the appropriate United States district court to
impose a civil penalty on any person who fails or refuses
to comply with subsection (a). The failure or refusal of
any person to submit any required quantity of Renewable
Energy Credits shall be subject to a civil penalty of not
more than 2 and one-half times the estimated national av-
erage market value (as determined by the Commission)
for the calendar year concerned of such quantity of Re-
newable Energy Credits.
(g) RULES
AND REGULATIONS.—The Commission
shall promulgate such rules and regulations as may be
necessary to carry out this section, including such rules
and regulations requiring the submission of such informa-
tion as may be necessary to verify the annual electric en-
ergy generation and renewable energy generation of any
person applying for Renewable Energy Credits under this
section or to verify and audit the validity of Renewable
Energy Credits submitted by any person to the Commis-
sion.
(h) ANNUAL REPORTS.—The Commission shall gath-
er available data and devise measures to gauge compliance
with the requirements of this section and the success of
the National Renewable Energy Trading Program estab-
lished under this section. On an annual basis not later
than May 31 of each year, the Commission shall publish
a report for the previous year that includes compliance
data, National Renewable Energy Trading Program re-
sults, and steps taken to improve the Program results.
(i) SUNSET.—The requirements of this section shall
cease to apply 90 days after the Commission certifies in
the annual report under subsection (h) that for the preced-
ing year the market value of Renewable Energy Credits
or the number of credits traded or both has declined to
such nominal levels that the costs incurred by the Com-
mission for issuance, recording, monitoring sale or ex-
change, and tracking of credits is no longer justified.
SEC. 114. JURISDICTIONAL DETERMINATIONS OF TRANS-
MISSION AND LOCAL DISTRIBUTION FACILI-
TIES.
(a) IN GENERAL.—Section 201(b) of the Federal
Power Act is amended by inserting the following new para-
graphs after paragraph (1) and redesignating paragraph
(2) as paragraph (7):