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requirements of subsection (f), the total annual elec-
tricity savings achieved by the retail electric supplier 
within the relevant compliance year. 
‘‘(3) RENEWABLE ELECTRICITY CREDITS POR-
TION.—Except as provided in paragraph (4), each 
retail electric supplier must submit Federal renew-
able electricity credits equal to at least three quar-
ters of the retail electric supplier’s annual combined 
target. 
‘‘(4) STATE PETITION.— 
‘‘(A) IN GENERAL.—Upon written request 
from the Governor of any State (including, for 
purposes of this paragraph, the Mayor of the 
District of Columbia), the Commission shall in-
crease, to not more than two fifths, the propor-
tion of the annual combined targets of retail 
electric suppliers located within such State that 
may be met through submission of dem-
onstrated total annual electricity savings, pro-
vided that such increase shall be effective only 
with regard to the portion of a retail electric 
supplier’s annual combined target that is attrib-
utable to electricity sales within such State. 
‘‘(B) CONTENTS.—A Governor’s request 
under this paragraph shall include an expla-
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nation of the Governor’s rationale for deter-
mining, after consultation with the relevant 
State regulatory authority and other retail elec-
tricity ratemaking authorities within the State, 
to make such request. The request shall specify 
the maximum proportion of annual combined 
targets (not more than two fifths) that can be 
met through demonstrated total annual elec-
tricity savings, and the period for which such 
proportion shall be effective. 
‘‘(C) REVISION.—The Governor of any 
State may, after consultation with the relevant 
State regulatory authority and other retail elec-
tricity ratemaking authorities within the State, 
submit a written request for revocation or revi-
sion of a previous request submitted under this 
paragraph. The Commission shall grant such 
request, provided that— 
‘‘(i) any revocation or revision shall 
not apply to the combined annual target 
for any year that is any earlier than 2 cal-
endar years after the calendar year in 
which such request is submitted, so as to 
provide retail electric suppliers with ade-
quate notice of such change; and 
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‘‘(ii) any revision shall meet the re-
quirements of subparagraph (A). 
‘‘(c) ESTABLISHMENT OF PROGRAM.—Not later than 
1 year after the date of enactment of this section, the 
Commission shall promulgate regulations to implement 
and enforce the requirements of this section. In promul-
gating such regulations, the Commission shall, to the ex-
tent practicable— 
‘‘(1) preserve the integrity, and incorporate best 
practices, of existing State and tribal renewable elec-
tricity and energy efficiency programs; 
‘‘(2) rely upon existing and emerging State, 
tribal, or regional tracking systems that issue and 
track non-Federal renewable electricity credits; and 
‘‘(3) cooperate with the States and Indian 
tribes to facilitate coordination between State, tribal, 
and Federal renewable electricity and energy effi-
ciency programs and to minimize administrative bur-
dens and costs to retail electric suppliers. 
‘‘(d) ANNUAL COMPLIANCE REQUIREMENT.— 
‘‘(1) ANNUAL COMBINED TARGETS.—For each 
of calendar years 2012 through 2039, a retail elec-
tric supplier’s annual combined target shall be the 
product of— 
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‘‘(A) the required annual percentage for 
such year, as set forth in paragraph (2); and 
‘‘(B) the retail electric supplier’s base 
amount for such year. 
‘‘(2) REQUIRED
ANNUAL
PERCENTAGE.—For 
each of calendar years 2012 through 2039, the re-
quired annual percentage shall be as follows: 
‘‘Calendar year 
Required annual 
percentage 
2012 ...............................................................................
6.0 
2013 ...............................................................................
6.0 
2014 ...............................................................................
9.5 
2015 ...............................................................................
9.5 
2016 ...............................................................................
13.0 
2017 ...............................................................................
13.0 
2018 ...............................................................................
16.5 
2019 ...............................................................................
16.5 
2020 ...............................................................................
20.0 
2021 through 2039 ........................................................
20.0 
‘‘(e) FEDERAL RENEWABLE ELECTRICITY CRED-
ITS.— 
‘‘(1) IN
GENERAL.—The regulations promul-
gated under this section shall include provisions gov-
erning the issuance, tracking, and verification of 
Federal renewable electricity credits. Except as pro-
vided in paragraphs (2), (3), and (4) of this sub-
section, the Commission shall issue to each gener-
ator of renewable electricity, 1 Federal renewable 
electricity credit for each megawatt hour of renew-
able electricity generated by such generator after 
December 31, 2011. The Commission shall assign a 
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unique serial number to each Federal renewable 
electricity credit. 
‘‘(2) GENERATION FROM CERTAIN STATE RE-
NEWABLE ELECTRICITY PROGRAMS.—(A) Except as 
provided in subparagraph (B), where renewable elec-
tricity is generated with the support of payments 
from a retail electric supplier pursuant to a State re-
newable electricity program (whether through State 
alternative compliance payments or through pay-
ments to a State renewable electricity procurement 
fund or entity), the Commission shall issue Federal 
renewable electricity credits to such retail electric 
supplier for the proportion of the relevant renewable 
electricity generation that is attributable to the retail 
electric supplier’s payments, as determined pursuant 
to regulations issued by the Commission. For any 
remaining portion of the relevant renewable elec-
tricity generation, the Commission shall issue Fed-
eral renewable electricity credits to the generator, as 
provided in paragraph (1), except that in no event 
shall more than 1 Federal renewable electricity cred-
it be issued for the same megawatt hour of elec-
tricity. In determining how Federal renewable elec-
tricity credits will be apportioned among retail elec-
tric suppliers and generators in such circumstances, 
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the Commission shall consider information and guid-
ance furnished by the relevant State or States. 
‘‘(B) In the case of a central procurement State 
that pursuant to subsection (g) has assumed respon-
sibility for compliance with the requirements of sub-
section (b), the Commission shall issue directly to 
the State Federal renewable electricity credits for 
any renewable electricity for which the State, pursu-
ant to a mandate described in subsection (a)(7), has 
centrally procured credits or certificates issued based 
on generation of such renewable electricity. 
‘‘(3) CERTAIN POWER SALES CONTRACTS.—Ex-
cept as otherwise provided in paragraph (2), when a 
generator has sold renewable electricity to a retail 
electric supplier under a contract for power from a 
facility placed in service before the date of enact-
ment of this section, and the contract does not pro-
vide for the determination of ownership of the Fed-
eral renewable electricity credits associated with 
such generation, the Commission shall issue such 
Federal renewable electricity credits to the retail 
electric supplier for the duration of the contract. 
‘‘(4) CREDIT
MULTIPLIER
FOR
DISTRIBUTED 
RENEWABLE GENERATION.— 
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‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Commission shall issue 3 
Federal renewable electricity credits for each 
megawatt hour of renewable electricity gen-
erated by a distributed renewable generation fa-
cility. 
‘‘(B) ADJUSTMENT.—Except as provided 
in subparagraph (C), not later than January 1, 
2014, and not less frequently than every 4 
years thereafter, the Commission shall review 
the effect of this paragraph and shall, as nec-
essary, reduce the number of Federal renewable 
electricity credits per megawatt hour issued 
under this paragraph for any given energy 
source or technology, but not below 1, to ensure 
that such number is no higher than the Com-
mission determines is necessary to make dis-
tributed renewable generation facilities using 
such source or technology cost competitive with 
other sources of renewable electricity genera-
tion. 
‘‘(C) FACILITIES
PLACED
IN
SERVICE 
AFTER ENACTMENT.—For any distributed re-
newable generation facility placed in service 
after the date of enactment of this section, sub-
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paragraph (B) shall not apply for the first 10 
years after the date on which the facility is 
placed in service. For each year during such 10- 
year period, the Commission shall issue to the 
facility the same number of Federal renewable 
electricity credits per megawatt hour as are 
issued to that facility in the year in which such 
facility is placed in service. After such 10-year 
period, the Commission shall issue Federal re-
newable electricity credits to the facility in ac-
cordance with the current multiplier as deter-
mined pursuant to subparagraph (B). 
‘‘(5) CREDITS BASED ON QUALIFIED HYDRO-
POWER.—For purposes of this subsection, the num-
ber of Federal renewable electricity credits issued for 
qualified hydropower shall be calculated— 
‘‘(A) based solely on the increase in aver-
age annual generation directly resulting from 
the efficiency improvements or capacity addi-
tions described in subsection (a)(13)(A); and 
‘‘(B) using the same water flow informa-
tion used to determine a historic average an-
nual generation baseline for the hydroelectric 
facility, as certified by the Commission. 
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‘‘(6) GENERATION FROM QUALIFIED WASTE-TO- 
ENERGY.—In the case of electricity generated from 
the combustion of any municipal solid waste or con-
struction, demolition, or disaster debris that is in-
cluded in the definition of renewable biomass, or 
from the gasification or pyrolization of such waste or 
debris and the combustion of the resulting gas at 
the same facility, the Commission shall issue Federal 
renewable electricity credits only for electricity gen-
erated from qualified waste-to-energy. 
‘‘(7) GENERATION
FROM
MIXED
RENEWABLE 
AND NONRENEWABLE RESOURCES.—If electricity is 
generated using both a renewable energy resource or 
other qualifying energy resource and an energy 
source that is not a renewable energy resource or 
other qualifying energy resource (as, for example, in 
the case of co-firing of renewable biomass and fossil 
fuel), the Commission shall issue Federal renewable 
electricity credits based on the proportion of the 
electricity that is attributable to the renewable en-
ergy resource or other qualifying energy resource. 
‘‘(8) PROHIBITION
AGAINST
DOUBLE-COUNT-
ING.—Except as provided in paragraph (4) of this 
subsection, the Commission shall ensure that no 
more than 1 Federal renewable electricity credit will 
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be issued for any megawatt hour of renewable elec-
tricity and that no Federal renewable electricity 
credit will be used more than once for compliance 
with this section. 
‘‘(9) TRADING.—The lawful holder of a Federal 
renewable electricity credit may sell, exchange, 
transfer, submit for compliance in accordance with 
subsection (b), or submit such credit for retirement 
by the Commission. 
‘‘(10) BANKING.—A Federal renewable elec-
tricity credit may be submitted in satisfaction of the 
compliance obligation set forth in subsection (b) for 
the compliance year in which the credit was issued 
or for any of the 3 immediately subsequent compli-
ance years. The Commission shall retire any Federal 
renewable electricity credit that has not been retired 
by April 2 of the calendar year that is 3 years after 
the calendar year in which the credit was issued. 
‘‘(11) RETIREMENT.—The Commission shall re-
tire a Federal renewable electricity credit imme-
diately upon submission by the lawful holder of such 
credit, whether in satisfaction of a compliance obli-
gation under subsection (b) or on some other basis. 
‘‘(f) ELECTRICITY SAVINGS.— 
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‘‘(1) STANDARDS FOR MEASUREMENT OF SAV-
INGS.—As part of the regulations promulgated 
under this section, the Commission shall prescribe 
standards and protocols for defining and measuring 
electricity savings and total annual electricity sav-
ings that can be counted towards the compliance ob-
ligation set forth in subsection (b). Such protocols 
and standards shall, at minimum— 
‘‘(A) specify the types of energy efficiency 
and energy conservation measures that can be 
counted; 
‘‘(B) require that energy consumption esti-
mates for customer facilities or portions of fa-
cilities in the applicable base and current years 
be adjusted, as appropriate, to account for 
changes in weather, level of production, and 
building area; 
‘‘(C) account for the useful life of meas-
ures; 
‘‘(D) include deemed savings values for 
specific, commonly used measures; 
‘‘(E) allow for savings from a program to 
be estimated based on extrapolation from a rep-
resentative sample of participating customers; 
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‘‘(F) include procedures for counting CHP 
savings, recycled energy savings, and fuel cell 
savings; 
‘‘(G) include procedures for documenting 
measurable and verifiable electricity savings 
achieved as a result of market transformation 
efforts; 
‘‘(H) include procedures for counting elec-
tricity savings achieved by solar water heating 
and solar light pipe technology that has the ca-
pability to provide measurable data on the 
amount of megawatt-hours displaced; 
‘‘(I) avoid double-counting of savings used 
for compliance with this section, including sav-
ings that are transferred pursuant to paragraph 
(3); 
‘‘(J) ensure that, except as provided in 
subparagraph (L), the retail electric supplier 
claiming the savings played a significant role in 
achieving the savings (including through the ac-
tivities of a designated agent of the supplier or 
through the purchase of transferred savings); 
‘‘(K) include savings from programs ad-
ministered by a retail electric supplier (or a re-
tail electricity distributor that is not a retail 
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electric supplier) that are funded by State, Fed-
eral, or other sources; 
‘‘(L) in any State in which the State regu-
latory authority has designated 1 or more enti-
ties to administer electric ratepayer-funded effi-
ciency programs approved by such State regu-
latory authority, provide that electricity savings 
achieved through such programs shall be dis-
tributed equitably among retail electric sup-
pliers in accordance with the direction of the 
relevant State regulatory authority; and 
‘‘(M) exclude savings achieved as a result 
of compliance with mandatory appliance and 
equipment efficiency standards or building 
codes. 
‘‘(2) 
STANDARDS
FOR
THIRD-PARTY 
VERIFICATION
OF
SAVINGS.—The regulations pro-
mulgated under this section shall establish proce-
dures 
and 
standards 
requiring 
third-party 
verification of all reported electricity savings, includ-
ing requirements for accreditation of third-party 
verifiers to ensure that such verifiers are profes-
sionally qualified and have no conflicts of interest. 
‘‘(3) TRANSFERS OF SAVINGS.— 
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‘‘(A) BILATERAL CONTRACTS FOR SAVINGS 
TRANSFERS.—Subject to the limitations of this 
paragraph, a retail electric supplier may use 
electricity savings transferred, pursuant to a bi-
lateral contract, from another retail electric 
supplier, an owner of an electric distribution fa-
cility that is not a retail electric supplier, a 
State, or a third-party efficiency provider to 
meet the applicable compliance obligation under 
subsection (b). 
‘‘(B) REQUIREMENTS.—Electricity savings 
transferred and used for compliance pursuant 
to this paragraph shall be— 
‘‘(i) measured and verified in accord-
ance with the procedures specified under 
this subsection; 
‘‘(ii) reported in accordance with 
paragraph (4) of this subsection; and 
‘‘(iii) achieved within the same State 
as is served by the retail electric supplier. 
‘‘(C) REGULATORY
APPROVAL.—Nothing 
in this paragraph shall limit or affect the au-
thority of a State regulatory authority to re-
quire a retail electric supplier that is regulated 
by such authority to obtain such authority’s au-
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thorization or approval of a contract for trans-
fer of savings under this paragraph. 
‘‘(4) REPORTING SAVINGS.— 
‘‘(A) REQUIREMENTS.—The regulations 
promulgated under this section shall establish 
requirements governing the submission of re-
ports to demonstrate, in accordance with the 
protocols and standards for measurement and 
third-party verification established under this 
subsection, the total annual electricity savings 
achieved by a retail electric supplier within the 
relevant year. 
‘‘(B) REVIEW AND APPROVAL.—The Com-
mission shall review each report submitted to 
the Commission by a retail electric supplier and 
shall exclude any electricity savings that have 
not been adequately demonstrated in accord-
ance with the requirements of this subsection. 
‘‘(5) STATE ADMINISTRATION.— 
‘‘(A) DELEGATION OF AUTHORITY.—Upon 
receipt of an application from the Governor of 
a State (including, for purposes of this sub-
section, the Mayor of the District of Columbia), 
the Commission may delegate to the State the 
authority to review and verify reported elec-
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tricity savings for purposes of determining dem-
onstrated total annual electricity savings that 
may be counted towards a retail electric sup-
plier’s compliance obligation under subsection 
(b). The Commission shall make a substantive 
determination approving or disapproving a 
State application under this subparagraph, 
after notice and comment, within 180 days of 
receipt of a complete application. 
‘‘(B) ALTERNATIVE
MEASUREMENT
AND 
VERIFICATION
PROCEDURES
AND
STAND-
ARDS.—As part of an application submitted 
under subparagraph (A), a State may request 
to use alternative measurement and verification 
procedures and standards to those specified in 
paragraphs (1) and (2), provided the State 
demonstrates that such alternative procedures 
and standards provide a level of accuracy of 
measurement and verification at least equiva-
lent to the Federal procedures and standards 
promulgated under paragraphs (1) and (2). 
‘‘(C) REVIEW
OF
STATE
IMPLEMENTA-
TION.—The Commission shall, not less fre-
quently than once every 4 years, review each 
State’s implementation of delegated authority 
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under this paragraph to ensure conformance 
with the requirements of this section. The Com-
mission may, at any time, revoke the delegation 
of authority under this section upon a finding 
that the State is not implementing its delegated 
responsibilities in conformity with this para-
graph. As a condition of maintaining its dele-
gated authority under this paragraph, the Com-
mission may require a State to submit a revised 
application under subparagraph (A) if the Com-
mission has— 
‘‘(i) promulgated new or substantially 
revised measurement and verification pro-
cedures and standards under this sub-
section; or 
‘‘(ii) otherwise substantially revised 
the program established under this section. 
‘‘(g) ALTERNATIVE COMPLIANCE PAYMENTS.— 
‘‘(1) IN GENERAL.—A retail electric supplier, or 
a central procurement State that, pursuant to sub-
section (g), has assumed responsibility for compli-
ance with the requirements of subsection (b), may 
satisfy the requirements of subsection (b) in whole 
or in part by submitting in accordance with this sub-
section, in lieu of each Federal renewable electricity 
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credit or megawatt hour of demonstrated total an-
nual electricity savings that would otherwise be due, 
a payment equal to $25, adjusted for inflation on 
January 1 of each year following calendar year 
2009, in accordance with such regulations as the 
Commission may promulgate. 
‘‘(2) PAYMENT TO STATE FUNDS.—Except as 
otherwise provided in this paragraph and paragraph 
(4), payments made under this subsection shall be 
made directly to the State or States in which the re-
tail electric supplier is located, in proportion to the 
portion of the retail electric supplier’s base amount 
that is sold within each relevant State, provided that 
such payments are deposited directly into a fund in 
the State treasury established for this purpose and 
that the State uses such funds in accordance with 
paragraphs (3) and (5) and with paragraph (4), 
where applicable. If the Commission determines at 
any time that a State is in substantial noncompli-
ance with paragraph (3) or (5), or with paragraph 
(4), where applicable, the Commission shall direct 
that any future alternative compliance payments 
that would otherwise be paid to such State under 
this subsection shall instead be paid to the Commis-
sion and deposited in the United States Treasury. 
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‘‘(3) STATE USE OF FUNDS.—As a condition of 
continued receipt of alternative compliance payments 
pursuant to this subsection, a State shall use such 
payments exclusively for the purposes of— 
‘‘(A) deploying technologies that generate 
electricity from renewable energy resources; or 
‘‘(B) implementing cost-effective energy ef-
ficiency programs to achieve electricity savings. 
‘‘(4) CENTRAL PROCUREMENT STATES.— 
‘‘(A) IN GENERAL.—A central procurement 
State that, pursuant to subsection (g), has as-
sumed responsibility for compliance with the re-
quirements of subsection (b) shall deposit any 
alternative compliance payments under this 
subsection in a unique fund in the State treas-
ury created and used solely for this purpose. 
‘‘(B) REQUIREMENTS.—As a precondition 
of making alternative compliance payments 
under this subsection, a central procurement 
State shall certify to the Commission, in ac-
cordance with such requirements as the Com-
mission may prescribe, that— 
‘‘(i) making such payments is the low-
est cost alternative to meet the require-
ments of subsection (b); and 
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‘‘(ii) moneys used by the State to 
make such payments are in addition to any 
spending that the State, and any separate 
entity charged with administering the 
State central procurement requirement 
identified under subsection (a)(7), other-
wise collectively would direct to the pur-
poses identified in paragraph (3). 
‘‘(C) USES.—A central procurement State 
that makes alternative compliance payments 
under this subsection shall certify to the Com-
mission that, in using such payments in accord-
ance with paragraph (3), it has, to the extent 
practicable, maximized the level of deployment 
of renewable electricity generation (measured in 
megawatt hours) and electricity savings per dol-
lar that are achieved through such expendi-
tures. 
‘‘(5) REPORTING.—As a condition of continued 
receipt of alternative compliance payments pursuant 
to this subsection, a State shall, within 12 months 
of receipt of any such payments and at 12-month in-
tervals thereafter until such payments are expended, 
provide a report to the Commission, in accordance 
with such regulations as the Commission may pre-
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scribe, giving a full accounting of the use of such 
payments, including a detailed description of the ac-
tivities funded thereby and demonstrating compli-
ance with the requirements of this subsection. 
‘‘(g) CENTRAL PROCUREMENT STATES.— 
‘‘(1) IN
GENERAL.—A central procurement 
State may, upon submission of a written request by 
the Governor of such State to the Commission, as-
sume responsibility for compliance with the require-
ments of subsection (b) on behalf of retail electric 
suppliers located in such State, exclusively with re-
gard to the portion of such retail electric suppliers’ 
base amount that is sold within the State. 
‘‘(2) DEMONSTRATION
OF
ELECTRICITY
SAV-
INGS.—If a central procurement State opts to meet 
any part of the requirements of subsection (b) based 
on the achievement of demonstrated total annual 
electricity savings, regardless of whether such State 
has received delegated authority pursuant to sub-
section (f)(5), such State shall submit such dem-
onstrated total annual electricity savings to the 
Commission through an annual report in accordance 
with requirements prescribed by the Commission by 
regulation, which shall be of equivalent stringency to 
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those applicable to retail electric suppliers under 
subsection (f). 
‘‘(3) NONCOMPLIANCE.—If a central procure-
ment State that pursuant to this subsection has as-
sumed responsibility for compliance with the require-
ments of subsection (b), fails to satisfy the require-
ments of subsection (b) or (h) for any year, the 
State’s assumption of responsibility under this sub-
section shall be discontinued immediately, and retail 
electric suppliers located in such State henceforth 
shall be directly subject to the requirements of this 
section. 
‘‘(h) INFORMATION COLLECTION.—The Commission 
may require any retail electric supplier, renewable elec-
tricity generator, or such other entities as the Commission 
deems appropriate, to provide any information the Com-
mission determines appropriate to carry out this section. 
Failure to submit such information or submission of false 
or misleading information under this subsection shall be 
a violation of this section. 
‘‘(i) ENFORCEMENT AND JUDICIAL REVIEW.— 
‘‘(1) FAILURE TO SUBMIT CREDITS OR DEM-
ONSTRATE SAVINGS.—If any person, other than any 
central procurement State that pursuant to sub-
section (g) has assumed responsibility for compliance 
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with the requirements of subsection (b), fails to com-
ply with the requirements of subsection (b) or (h), 
such person shall be liable to pay to the Commission 
a civil penalty equal to the product of— 
‘‘(A) double the alternative compliance 
payment calculated under subsection (h)(1), 
and 
‘‘(B) the aggregate quantity of Federal re-
newable electricity credits, total annual elec-
tricity savings, or equivalent alternative compli-
ance payments that the person failed to submit 
in violation of the requirements of subsections 
(b) and (h). 
‘‘(2) ENFORCEMENT.—The Commission shall 
assess a civil penalty under paragraph (1) in accord-
ance with the procedures described in section 31(d) 
of the Federal Power Act (16 U.S.C. 823b(d)). 
‘‘(3) VIOLATION OF REQUIREMENT OF REGULA-
TIONS
OR
ORDERS.—Any person, other than any 
central procurement State that pursuant to sub-
section (g) has assumed responsibility for compliance 
with the requirements of subsection (b), who vio-
lates, or fails or refuses to comply with, any require-
ment of a regulation promulgated or order issued 
under this section shall be subject to a civil penalty 
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under section 316A(b) of the Federal Power Act (16 
U.S.C. 825o–1). Such penalty shall be assessed by 
the Commission in the same manner as in the case 
of a violation referred to in section 316A(b) of such 
Act. 
‘‘(j) JUDICIAL REVIEW.—Any person aggrieved by a 
final action taken by the Commission under this section, 
other than the assessment of a civil penalty under sub-
section (j), may use the procedures for review described 
in section 313 of the Federal Power Act (16 U.S.C. 825l). 
For purposes of this paragraph, references to an order in 
section 313 of such Act shall be deemed to refer also to 
all other final actions of the Commission under this section 
other than the assessment of a civil penalty under sub-
section (i). 
‘‘(k) SAVINGS PROVISIONS.—Nothing in this section 
shall— 
‘‘(1) diminish or qualify any authority of a 
State, a political subdivision of a State, or an Indian 
tribe to— 
‘‘(A) adopt or enforce any law or regula-
tion respecting renewable electricity or energy 
efficiency, including any law or regulation es-
tablishing requirements more stringent than 
those established by this section, provided that 
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no such law or regulation may relieve any per-
son of any requirement otherwise applicable 
under this section; or 
‘‘(B) regulate the acquisition and disposi-
tion of Federal renewable electricity credits by 
retail electric suppliers within the jurisdiction of 
such State, political subdivision, or Indian tribe, 
including the authority to require such retail 
electric supplier to acquire and submit to the 
Secretary for retirement Federal renewable 
electricity credits in excess of those submitted 
under this section; or 
‘‘(2) affect the application of, or the responsi-
bility for compliance with, any other provision of law 
or regulation, including environmental and licensing 
requirements. 
‘‘(l) SUNSET.—This section expires on December 31, 
2040.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents set forth in section 1(b) of the Public Utility Regu-
latory Policies Act of 1978 (16 U.S.C. 2601 and following) 
is amended by inserting after the item relating to section 
609 the following: 
‘‘Sec. 610. Combined efficiency and renewable electricity standard.’’. 
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SEC. 102. CLARIFYING STATE AUTHORITY TO ADOPT RE-
NEWABLE ENERGY INCENTIVES. 
Section 210 of the Public Utility Regulatory Policies 
Act of 1978 is amended by adding at the end thereof: 
‘‘(o) CLARIFICATION
OF
STATE
AUTHORITY
TO 
ADOPT
RENEWABLE
ENERGY
INCENTIVES.—Notwith-
standing any other provision of this Act or the Federal 
Power Act, a State legislature or regulatory authority may 
set the rates for a sale of electric energy by a facility gen-
erating electric energy from renewable energy sources pur-
suant to a State-approved production incentive program 
under which the facility voluntarily sells electric energy. 
For purposes of this subsection, ‘State-approved produc-
tion incentive program’ means a requirement imposed pur-
suant to State law, or by a State regulatory authority act-
ing within its authority under State law, that an electric 
utility purchase renewable energy (as defined in section 
609 of this Act) at a specified rate.’’. 
SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES. 
(a) REQUIREMENT.—For each of calendar years 
2012 through 2039, the President shall ensure that, of 
the total amount of electricity Federal agencies consume 
in the United States during each calendar year, the fol-
lowing percentage shall be renewable electricity: 
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Calendar year 
Required annual 
percentage 
2012 ...............................................................................
6.0 
2013 ...............................................................................
6.0 
2014 ...............................................................................
9.5 
2015 ...............................................................................
9.5 
2016 ...............................................................................
13.0 
2017 ...............................................................................
13.0 
2018 ...............................................................................
16.5 
2019 ...............................................................................
16.5 
2020 ...............................................................................
20.0 
2021 through 2039 ........................................................
20.0 
(b) DEFINITIONS.—For purposes of this section: 
(1) RENEWABLE ELECTRICITY.—The term ‘‘re-
newable electricity’’ shall have the meaning given in 
section 610 of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 and following). 
(2) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘‘renewable energy resource’’ shall have the 
meaning given in section 610 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2601 
and following). 
(c) MODIFICATION OF REQUIREMENT.—If the Presi-
dent determines that the Federal Government cannot fea-
sibly meet the requirement established in subsection (a) 
in a specific calendar year, the President may, by written 
order, reduce such requirement for such calendar year to 
a percentage the President determines the Federal Gov-
ernment can feasibly meet. 
(d) REPORTS.—Not later than April 1, 2013, and 
each year thereafter, the Secretary of Energy shall provide 
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a report to Congress on the percentage of each Federal 
agency’s electricity consumption in the United States that 
was renewable electricity in the previous calendar year. 
(e) CONTRACTS
FOR RENEWABLE ENERGY.—(1) 
Notwithstanding section 501(b)(1)(B) of title 40, United 
States Code, a contract for the acquisition of electricity 
generated from a renewable energy resource for the Fed-
eral Government may be made for a period of not more 
than 20 years. 
(2) Not later than 90 days after the date of enact-
ment of this subsection, the Secretary of Energy, through 
the Federal Energy Management Program, shall publish 
a standardized renewable energy purchase agreement, set-
ting forth commercial terms and conditions, that Federal 
agencies may use to acquire electricity generated from a 
renewable energy resource. 
(3) The Secretary of Energy shall provide technical 
assistance to assist Federal agencies in implementing this 
subsection. 
Subtitle B—Carbon Capture and 
Sequestration 
SEC. 111. NATIONAL STRATEGY. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Administrator, in con-
sultation with the Secretary of Energy, the Secretary of 
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the Interior, and the heads of such other relevant Federal 
agencies as the President may designate, shall submit to 
Congress a report setting forth a unified and comprehen-
sive strategy to address the key legal, regulatory and other 
barriers to the commercial-scale deployment of carbon 
capture and sequestration. 
(b) BARRIERS.—The report under this section 
shall— 
(1) identify those regulatory, legal, and other 
gaps and barriers that could be addressed by a Fed-
eral agency using existing statutory authority, those, 
if any, that require Federal legislation, and those 
that would be best addressed at the State, tribal, or 
regional level; 
(2) identify regulatory implementation chal-
lenges, including those related to approval of State 
and tribal programs and delegation of authority for 
permitting; and 
(3) recommend rulemakings, Federal legisla-
tion, or other actions that should be taken to further 
evaluate and address such barriers. 
SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION 
SITES. 
(a) COORDINATED CERTIFICATION AND PERMITTING 
PROCESS.—Title VIII of the Clean Air Act, as added by 
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section 331 of this Act, is amended by adding after section 
812 (as added by section 116 of this Act) the following: 
‘‘SEC. 813. GEOLOGIC SEQUESTRATION SITES. 
‘‘(a) COORDINATED PROCESS.—The Administrator 
shall establish a coordinated approach to certifying and 
permitting geologic sequestration, taking into consider-
ation all relevant statutory authorities. In establishing 
such approach, the Administrator shall— 
‘‘(1) take into account, and reduce redundancy 
with, the requirements of section 1421 of the Safe 
Drinking Water Act (42 U.S.C. 300h), as amended 
by section 112(b) of the American Clean Energy and 
Security Act of 2009, including the rulemaking for 
geologic sequestration wells described at 73 Fed. 
Reg. 43491–541 (July 25, 2008); and 
‘‘(2) to the extent practicable, reduce the bur-
den on certified entities and implementing authori-
ties. 
‘‘(b) REGULATIONS.—Not later than 2 years after 
the date of enactment of this title, the Administrator shall 
promulgate regulations to protect human health and the 
environment by minimizing the risk of escape to the at-
mosphere of carbon dioxide injected for purposes of geo-
logic sequestration. 
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‘‘(c) REQUIREMENTS.—The regulations under sub-
section (b) shall include— 
‘‘(1) a process to obtain certification for geo-
logic sequestration under this section; and 
‘‘(2) requirements for— 
‘‘(A) monitoring, record keeping, and re-
porting for emissions associated with injection 
into, and escape from, geologic sequestration 
sites, taking into account any requirements or 
protocols developed under section 713; 
‘‘(B) public participation in the certifi-
cation process that maximizes transparency; 
‘‘(C) the sharing of data between States, 
Indian tribes, and the Environmental Protec-
tion Agency; and 
‘‘(D) other elements or safeguards nec-
essary to achieve the purpose set forth in sub-
section (b). 
‘‘(d) REPORT.—Not later than 2 years after the pro-
mulgation of regulations under subsection (b), and at 3- 
year intervals thereafter, the Administrator shall deliver 
to the Committee on Energy and Commerce of the House 
of Representatives and the Committee on Environment 
and Public Works of the Senate a report on geologic se-
questration in the United States, and, to the extent rel-
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evant, other countries in North America. Such report shall 
include— 
‘‘(1) data regarding injection, emissions to the 
atmosphere, if any, and performance of active and 
closed geologic sequestration sites, including those 
where enhanced hydrocarbon recovery operations 
occur; 
‘‘(2) an evaluation of the performance of rel-
evant Federal environmental regulations and pro-
grams in ensuring environmentally protective geo-
logic sequestration practices; 
‘‘(3) recommendations on how such programs 
and regulations should be improved or made more 
effective; and 
‘‘(4) other relevant information.’’. 
(b) SAFE DRINKING WATER ACT STANDARDS.—Sec-
tion 1421 of the Safe Drinking Water Act (42 U.S.C. 
300h) is amended by inserting after subsection (d) the fol-
lowing: 
‘‘(e) CARBON DIOXIDE GEOLOGIC SEQUESTRATION 
WELLS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this subsection, the Admin-
istrator shall promulgate regulations under sub-
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section (a) for carbon dioxide geologic sequestration 
wells. 
‘‘(2) FINANCIAL RESPONSIBILITY.—The regula-
tions referred to in paragraph (1) shall include re-
quirements for maintaining evidence of financial re-
sponsibility, including financial responsibility for 
emergency and remedial response, well plugging, site 
closure, and post-injection site care. Financial re-
sponsibility may be established for carbon dioxide 
geologic sequestration wells in accordance with regu-
lations promulgated by the Administrator by any 
one, or any combination, of the following: insurance, 
guarantee, trust, standby trust, surety bond, letter 
of credit, qualification as a self-insurer, or any other 
method satisfactory to the Administrator.’’. 
SEC. 113. STUDIES AND REPORTS. 
(a) STUDY OF LEGAL FRAMEWORK FOR GEOLOGIC 
SEQUESTRATION SITES.— 
(1) ESTABLISHMENT
OF
TASK
FORCE.—As 
soon as practicable, but not later than 6 months 
after the date of enactment of this Act, the Adminis-
trator shall establish a task force to be composed of 
an equal number of subject matter experts, non-
governmental organizations with expertise in envi-
ronmental policy, academic experts with expertise in 
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environmental law, State and tribal officials with en-
vironmental expertise, representatives of State and 
tribal Attorneys General, representatives from the 
Environmental Protection Agency, the Department 
of the Interior, the Department of Energy, the De-
partment of Transportation, and other relevant Fed-
eral agencies, and members of the private sector, to 
conduct a study of— 
(A) existing Federal environmental stat-
utes, State environmental statutes, and State 
common law that apply to geologic sequestra-
tion sites for carbon dioxide, including the abil-
ity of such laws to serve as risk management 
tools; 
(B) the existing statutory framework, in-
cluding Federal and State laws, that apply to 
harm and damage to the environment or public 
health at closed sites where carbon dioxide in-
jection has been used for enhanced hydrocarbon 
recovery; 
(C) the statutory framework, environ-
mental health and safety considerations, imple-
mentation issues, and financial implications of 
potential models for Federal, State, or private 
sector assumption of liabilities and financial re-
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539 
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a manufacturing facility in the United States to 
produce— 
‘‘(i) clean energy technology products; 
‘‘(ii) energy efficient products; or 
‘‘(iii) integral component parts of 
clean energy technology products or energy 
efficient products; or 
‘‘(B) reducing the energy intensity or 
greenhouse gas production of a manufacturing 
facility in the United States, including using 
energy intensive feedstocks. 
‘‘(2) MAXIMUM AMOUNT.—The Secretary may 
not award a grant under the Program in an amount 
that exceeds $500,000,000 in any fiscal year. 
‘‘(d) CRITERIA FOR AWARDING GRANTS.— 
‘‘(1) MATCHING
FUNDS.—The Secretary may 
make a grant to a State under the Program only if 
the State agrees to ensure that for each loan pro-
vided by the State under the Program, not less than 
20 percent of the amount of each loan will come 
from a non-Federal source. 
‘‘(2) ADMINISTRATIVE COSTS.—A State receiv-
ing a grant under the Program may only use such 
amount of the grant for the costs of administering 
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