‘‘SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) BIOMASS.—The term ‘biomass’ means— 
‘‘(A) cellulosic (plant fiber) organic mate-
rials from a plant that is planted for the pur-
pose of being used to produce energy; 
‘‘(B) nonhazardous, plant or algal matter 
waste materials that is segregated from other 
waste materials and is derived from— 
‘‘(i) an agricultural crop, crop byprod-
uct or residue resource; 
‘‘(ii) waste such as landscape or right- 
of-way trimmings, but not including— 
‘‘(I) municipal solid waste; 
‘‘(II) 
recyclable 
postconsumer 
waste paper; 
‘‘(III) painted, treated, or pres-
surized wood; 
‘‘(IV) wood contaminated with 
plastic or metals; or 
‘‘(iii) gasified animal waste; 
‘‘(iv) landfill methane; and 
‘‘(C) with respect to material removed 
from National Forest System lands the term in-
cludes only organic material from— 
‘‘(i) precommercial thinnings; 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
‘‘(ii) slash; 
‘‘(iii) brush; and 
‘‘(iv) mill residues. 
‘‘(2) ELIGIBLE
FACILITY.—The term ‘eligible 
facility’ means— 
‘‘(A) a facility for the generation of electric 
energy from a renewable energy resource that is 
placed in service on or after the date of enact-
ment of this section or the effective date of the 
applicable State renewable portfolio standard 
program; or 
‘‘(B) a repowering or cofiring increment 
that is placed in service on or after the date of 
enactment of this section or the effective date 
of the applicable State renewable portfolio 
standard program, at a facility for the genera-
tion of electric energy from a renewable energy 
resource that was placed in service before that 
date. 
‘‘(3) EXISTING FACILITY OFFSET.—The term 
‘existing facility offset’ means renewable energy gen-
erated from an existing facility, not classified as an 
eligible facility, that is owned or under contract, di-
rectly or indirectly, to a retail electric supplier on 
the date of enactment of this section. 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
‘‘(4) INCREMENTAL HYDROPOWER.—The term 
‘incremental hydropower’ means additional genera-
tion that is achieved from increased efficiency or ad-
ditions of capacity on or after the date of enactment 
of this section or the effective date of the applicable 
State renewable portfolio standard program, at a hy-
droelectric facility that was placed in service before 
that date. 
‘‘(5) INDIAN
LAND.—The term ‘Indian land’ 
means— 
‘‘(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria; 
‘‘(B) any land not within the limits of any 
Indian reservation, pueblo, or rancheria title to 
which was on the date of enactment of this 
paragraph either held by the United States for 
the benefit of any Indian tribe or individual or 
held by any Indian tribe or individual subject to 
restriction by the United States against alien-
ation; 
‘‘(C) any dependent Indian community; 
and 
‘‘(D) any land conveyed to any Alaska Na-
tive corporation under the Alaska Native 
Claims Settlement Act. 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ 
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaskan 
Native village or regional or village corporation as 
defined in or established pursuant to the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.), 
which is recognized as eligible for the special pro-
grams and services provided by the United States to 
Indians because of their status as Indians. 
‘‘(7) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means electric energy generated by a re-
newable energy resource. 
‘‘(8) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘renewable energy resource’ means solar (in-
cluding solar water heating), wind, ocean, tidal, geo-
thermal energy, biomass, landfill gas, or incremental 
hydropower. 
‘‘(9) REPOWERING OR COFIRING INCREMENT.— 
The 
term 
‘repowering 
or 
cofiring 
increment’ 
means— 
‘‘(A) the additional generation from a 
modification that is placed in service on or after 
the date of enactment of this section or the ef-
fective date of the applicable State renewable 
portfolio standard program, to expand elec-
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
tricity production at a facility used to generate 
electric energy from a renewable energy re-
source or to cofire biomass that was placed in 
service before the date of enactment of this sec-
tion or the effective date of the applicable State 
renewable portfolio standard program; or 
‘‘(B) the additional generation above the 
average generation in the 3 years preceding the 
date of enactment of this section or the effec-
tive date of the applicable State renewable port-
folio standard program, to expand electricity 
production at a facility used to generate electric 
energy from a renewable energy resource or to 
cofire biomass that was placed in service before 
the date of enactment of this section or the ef-
fective date of the applicable State renewable 
portfolio standard program. 
‘‘(10) RETAIL ELECTRIC SUPPLIER.—The term 
‘retail electric supplier’ means a person that sells 
electric energy to electric consumers and sold not 
less than 1,000,000 megawatt-hours of electric en-
ergy to electric consumers for purposes other than 
resale during the preceding calendar year; except 
that such term does not include the United States, 
a State or any political subdivision of a State, or any 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
agency, authority, or instrumentality of any one or 
more of the foregoing, or a rural electric cooperative. 
‘‘(11) RETAIL
ELECTRIC
SUPPLIER’S
BASE 
AMOUNT.—The term ‘retail electric supplier’s base 
amount’ means the total amount of electric energy 
sold by the retail electric supplier, expressed in 
terms of kilowatt hours, to electric customers for 
purposes other than resale during the most recent 
calendar year for which information is available, ex-
cluding electric energy generated by a hydroelectric 
facility. 
‘‘(b) MINIMUM RENEWABLE GENERATION REQUIRE-
MENT.—For each calendar year beginning in calendar 
year 2010, each retail electric supplier shall submit to the 
Secretary, not later than April 1 of the following calendar 
year, renewable energy credits in an amount equal to the 
required annual percentage specified in subsection (c). 
‘‘(c) REQUIRED ANNUAL PERCENTAGE.—For cal-
endar years 2010 through 2039, the required annual per-
centage of the retail electric supplier’s base amount that 
shall be generated from renewable energy resources, or 
otherwise credited towards such percentage requirement 
pursuant to subsection (d), shall be the percentage speci-
fied in the following table: 
Required annual 
‘‘Calendar Years 
percentage 
2010 .....................................................................................
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6211
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
Required annual 
‘‘Calendar Years 
percentage 
2011 .....................................................................................
2012 .....................................................................................
2013 .....................................................................................
2014 .....................................................................................
2015 .....................................................................................
2016 .....................................................................................
2017 .....................................................................................
2018 .....................................................................................
2019 .....................................................................................
2020 and thereafter .............................................................
20. 
‘‘(d) RENEWABLE ENERGY CREDITS.—(1) A retail 
electric supplier may satisfy the requirements of sub-
section (b) through the submission of renewable energy 
credits— 
‘‘(A) issued to the retail electric supplier under 
subsection (e); 
‘‘(B) obtained by purchase or exchange under 
subsection (f) or (h); or 
‘‘(C) borrowed under subsection (j). 
‘‘(2) A renewable energy credit may be counted to-
ward compliance with subsection (b) only once. 
‘‘(e) ISSUANCE
OF CREDITS.—(1) The Secretary 
shall establish by rule, not later than 1 year after the date 
of enactment of this section, a program to verify and issue 
renewable energy credits, track their sale, exchange and 
submission, and enforce the requirements of this section. 
‘‘(2) An entity that generates electric energy through 
the use of a renewable energy resource may apply to the 
Secretary for the issuance of renewable energy credits. 
The applicant must demonstrate that the electric energy 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
will be transmitted onto the grid or, in the case of a gen-
eration offset, that the electric energy offset would have 
otherwise been consumed on site. The application shall in-
dicate— 
‘‘(A) the type of renewable energy resource used 
to produce the electricity; 
‘‘(B) the location where the electric energy was 
produced; and 
‘‘(C) any other information the Secretary deter-
mines appropriate. 
‘‘(3)(A) Except as provided in subparagraphs (B), 
(C), and (D), the Secretary shall issue to each entity that 
generates electric energy one renewable energy credit for 
each kilowatt hour of electric energy the entity generates 
from the date of enactment of this section and in each 
subsequent calendar year through the use of a renewable 
energy resource at an eligible facility. 
‘‘(B) For incremental hydropower the renewable en-
ergy credits shall be calculated based on the expected in-
crease in average annual generation resulting from the ef-
ficiency improvements or capacity additions. The number 
of credits shall be calculated using the same water flow 
information used to determine a historic average annual 
generation baseline for the hydroelectric facility and cer-
tified by the Secretary or the Federal Energy Regulatory 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
Commission. The calculation of the renewable energy cred-
its for incremental hydropower shall not be based on any 
operational changes at the hydroelectric facility not di-
rectly associated with the efficiency improvements or ca-
pacity additions. 
‘‘(C) The Secretary shall issue two renewable energy 
credits for each kilowatt hour of electric energy generated 
and supplied to the grid in that calendar year through the 
use of a renewable energy resource at an eligible facility 
located on Indian land. For purposes of this paragraph, 
renewable energy generated by biomass cofired with other 
fuels is eligible for two credits only if the biomass was 
grown on such land. 
‘‘(D) For electric energy generated by a renewable 
energy resource at an on-site eligible facility, used to offset 
part or all of the customer’s requirements for electric en-
ergy, the Secretary shall issue three renewable energy 
credits to such customer for each kilowatt hour generated. 
‘‘(E) In the case of a retail electric supplier that is 
subject to a State renewable standard program that— 
‘‘(i) requires the generation of electricity from 
renewable energy; or 
‘‘(ii) provides for alternative compliance pay-
ments in satisfaction of applicable State require-
ments under the program, 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
the Secretary shall issue an amount of renewable energy 
credits equal to the amount of renewable energy credits 
that the Secretary would have issued had a payment of 
the same amount been made to the Secretary under sub-
section (j). Such renewable energy credits may be applied 
against the retail electric supplier’s own required annual 
percentage or may be transferred for use only by an asso-
ciate company of the retail electric supplier. 
‘‘(f) ELIGIBILITY.—To be eligible for a renewable en-
ergy credit, the unit of electric energy generated through 
the use of a renewable energy resource may be sold or 
may be used by the generator. If both a renewable energy 
resource and a non-renewable energy resource are used to 
generate the electric energy, the Secretary shall issue re-
newable energy credits based on the proportion of the re-
newable energy resources used. The Secretary shall iden-
tify renewable energy credits by type and date of genera-
tion. 
‘‘(g) CONTRACTS UNDER SECTION 210.—When a 
generator sells electric energy generated through the use 
of a renewable energy resource to a retail electric supplier 
under a contract subject to section 210 of this Act, the 
retail electric supplier is treated as the generator of the 
electric energy for the purposes of this section or the dura-
tion of the contract. 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
‘‘(h) EXISTING FACILITY OFFSETS.—The Secretary 
shall issue renewable energy credits for existing facility 
offsets to be applied against a retail electric supplier’s re-
quired annual percentage. Such credits are not tradeable 
and may be used only in the calendar year generation ac-
tually occurs. 
‘‘(i) RENEWABLE ENERGY CREDIT TRADING.—A re-
newable energy credit, may be sold, transferred or ex-
changed by the entity to whom issued or by any other enti-
ty who acquires the renewable energy credit, except for 
those renewable energy credits issued pursuant to sub-
section (e)(3)(E). A renewable energy credit for any year 
that is not used to satisfy the minimum renewable genera-
tion requirement of subsection (a) for that year may be 
carried forward for use within the next 4 years. 
‘‘(j) RENEWABLE ENERGY CREDIT BORROWING.—At 
any time before the end of calendar year 2012, a retail 
electric supplier that has reason to believe it will not have 
sufficient renewable energy credits to comply with sub-
section (b) 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 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
subsection (b) for calendar year 2012 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 
(b) 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 (b), by calendar year 
2020 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 (k) for violation of the require-
ments of subsection (b) for each calendar year involved. 
‘‘(k) ENFORCEMENT.—A retail electric supplier that 
does not submit renewable energy credits as required 
under subsection (b) shall be liable for the payment of a 
civil penalty. That penalty shall be calculated on the basis 
of the number of renewable energy credits not submitted, 
multiplied by the lesser of 4.5 cents or 300 percent of the 
average market value of credits for the compliance period. 
Any such penalty shall be due and payable without de-
mand to the Secretary as provided in the regulations 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
issued under subsection (e). On January 1 of each year 
following calendar year 2006, the Secretary shall adjust 
for inflation the penalty for such calendar year, based on 
the Gross Domestic Product Implicity Price Deflator. 
‘‘(l) CREDIT COST CAP.—The Secretary shall offer 
renewable energy credits for sale at the lesser of 3 cents 
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 
2006, the Secretary shall adjust for inflation the price 
charged per credit for such calendar year, based on the 
Gross Domestic Product Implicit Price Deflator. 
‘‘(m) INFORMATION COLLECTION.—The Secretary 
may collect the information necessary to verify and 
audit— 
‘‘(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. 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
‘‘(n) ENVIRONMENTAL
SAVINGS
CLAUSE.—Incre-
mental hydropower shall be subject to all applicable envi-
ronmental laws and licensing and regulatory requirements. 
‘‘(o) EXISTING PROGRAMS.—(1) This section does 
not preclude a State from imposing additional renewable 
energy requirements in that State, including specifying eli-
gible technologies under such State requirements. 
‘‘(2) In the rule establishing this program, the Sec-
retary shall incorporate common elements of existing re-
newable energy programs, including State programs, to 
ensure administrative ease, market transparency and ef-
fective enforcement. The Secretary shall work with the 
States to minimize administrative burdens and costs and 
to avoid duplicating compliance charges to retail electric 
suppliers. 
‘‘(p) RECOVERY OF COSTS.—An electric utility whose 
sales of electric energy are subject to rate regulation, in-
cluding any utility whose rates are regulated by the Com-
mission and any State regulated electric utility, shall not 
be denied the opportunity to recover the full amount of 
the prudently incurred incremental cost of renewable en-
ergy obtained to comply with the requirements of sub-
section (b) for sales to electric customers which are subject 
to rate regulation, notwithstanding any other law, regula-
tion, rule, administrative order or any agreement between 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
the electric utility and either the Commission or a State 
regulatory authority. For the purpose of this subsection, 
the term ‘incremental cost of renewable energy’ means— 
‘‘(1) the additional cost to the electric utility for 
the purchase or generation of renewable energy to 
satisfy the minimum renewable generation require-
ment of subsection (b), as compared to the cost of 
the electric energy the electric utility would generate 
or purchase from another source but for the require-
ments of subsection (b); and 
‘‘(2) the cost to the electric utility for acquiring 
by purchase or exchange renewable energy credits to 
satisfy the minimum renewable generation require-
ment of subsection (b). 
For purposes of this subsection, the definitions in section 
3 of this Act shall apply to the terms ‘electric utility’, 
‘State regulated electric utility’, ‘State agency’, ‘Commis-
sion’, and ‘State regulatory authority’. 
‘‘(q) VOLUNTARY PARTICIPATION.—The Secretary 
shall encourage federally-owned utilities, municipally- 
owned utilities and rural electric cooperatives that sell 
electric energy to electric consumers for purposes other 
than resale to participate in the renewable portfolio stand-
ard program. A municipally-owned utility or rural electric 
cooperative that owns or has under contract a facility for 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
the generation of electric energy from a renewable energy 
resource may not sell or trade renewable energy credits 
generated by such resource unless it participates in the 
renewable portfolio standard program under the same 
terms and conditions as retail electric suppliers. 
‘‘(r) PROGRAM REVIEW.—The Secretary shall enter 
into a contract with the National Academy of Sciences to 
conduct a comprehensive evaluation of all aspects of the 
Renewable Portfolio Standard program, within 8 years of 
enactment of this section. The study shall include an eval-
uation of— 
‘‘(1) the effectiveness of the program in increas-
ing the market penetration and lower the cost of the 
eligible renewable technologies; 
‘‘(2) the opportunities for any additional tech-
nologies and sources of renewable energy emerging 
since enactment of this section; 
‘‘(3) the impact on the regional diversity and 
reliability of supply sources, including the power 
quality benefits of distributed generation; 
‘‘(4) the regional resource development relative 
to renewable potential and reasons for any under in-
vestment in renewable resources; and 
‘‘(5) the net cost/benefit of the renewable port-
folio standard to the national and State economies, 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
including retail power costs, economic development 
benefits of investment, avoided costs related to envi-
ronmental and congestion mitigation investments 
that would otherwise have been required, impact on 
natural gas demand and price, effectiveness of green 
marketing programs at reducing the cost of renew-
able resources. 
The Secretary shall transmit the results of the evaluation 
and any recommendations for modifications and improve-
ments to the program to Congress not later than January 
1, 2016. 
‘‘(s) PROGRAM IMPROVEMENTS.—Using the results 
of the evaluation under subsection (p), the Secretary shall 
by rule, within 6 months of the completion of the evalua-
tion, make such modifications to the program as may be 
necessary to improve the efficiency of the program and 
maximize the use of renewable energy under the program. 
‘‘(t) STATE RENEWABLE ENERGY ACCOUNT PRO-
GRAM.—(1) The Secretary shall establish, not later than 
December 31, 2009, a State renewable energy account 
program. 
‘‘(2) All money collected by the Secretary from the 
sale of renewable energy credits shall be deposited into the 
State renewable energy account established pursuant to 
this subsection. The State renewable energy account shall 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS
be held by the Secretary and shall not be transferred to 
the Secretary of the Treasury. 
‘‘(3) Proceeds deposited in the State renewable en-
ergy account shall be used by the Secretary, subject to 
annual appropriations, for a program to provide grants to 
the State agency responsible for developing State energy 
conservation plans under section 363 of the Energy Policy 
and Conservation Act (42 U.S.C. 6322) for the purposes 
of promoting renewable energy production and providing 
energy assistance and weatherization services to low-in-
come consumers. 
‘‘(4) The Secretary may issue guidelines and criteria 
for grants awarded under this subsection. At least 75 per-
cent of the funds provided to each State shall be used for 
promoting renewable energy production. The funds shall 
be allocated to the States on the basis of retail electric 
sales subject to the Renewable Portfolio Standard under 
this section or through voluntary participation. To the ex-
tent Federal credits have been issued without payment due 
to reciprocity with State programs under subsection 
(d)(3)(E), deductions shall be made from the relevant 
State’s allocation. State energy offices receiving grants 
under this section shall maintain such records and evi-
dence of compliance as the Secretary may require.’’. 
VerDate Aug 31 2005 
23:57 Feb 12, 2007
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H969.IH
H969
hmoore on PROD1PC68 with HMBILLS