I 
112TH CONGRESS 
1ST SESSION H. R. 2391 
To amend the Internal Revenue Code of 1986 to provide a renewable 
electricity integration credit. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 24, 2011 
Mr. PAULSEN (for himself and Mr. KIND) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committee on Energy and Commerce, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a renewable electricity integration credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Renewable Energy for 
a Brighter Future Act’’. 
SEC. 2. RENEWABLE ELECTRICITY INTEGRATION CREDIT. 
(a) BUSINESS CREDIT.— 
(1) IN GENERAL.—Subpart D of part IV of 
subchapter A of chapter 1 of the Internal Revenue 
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Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 45S. RENEWABLE ELECTRICITY INTEGRATION CRED-
IT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an eligible taxpayer, the renewable electricity 
integration credit for any taxable year is an amount equal 
to the product of— 
‘‘(1) the intermittent renewable portfolio factor 
of such eligible taxpayer, and 
‘‘(2) the number of kilowatt hours of renewable 
electricity— 
‘‘(A) purchased or produced by such tax-
payer, and 
‘‘(B) sold by such taxpayer to a retail cus-
tomer during the taxable year. 
‘‘(b) INTERMITTENT RENEWABLE PORTFOLIO FAC-
TOR.— 
‘‘(1) YEARS BEFORE 2017.—In the case of tax-
able years beginning before January 1, 2017, the 
intermittent renewable portfolio factor for an eligible 
taxpayer shall be determined as follows: 
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‘‘In the case of an 
eligible taxpayer 
whose intermittent 
renewable elec-
tricity percentage 
is: 
For taxable years 
beginning before 
2012, the intermit-
tent renewable 
portfolio factor is: 
For taxable years 
beginning in or 
after 2012, the 
intermittent renew-
able portfolio fac-
tor is: 
Less than 4 percent .......
zero cents 
zero cents 
At least 4 percent but 
less than 8 percent .....
0.1 cents 
zero cents 
At least 8 percent but 
less than 12 percent ...
0.2 cents 
0.2 cents 
At least 12 percent but 
less than 16 percent ...
0.3 cents 
0.3 cents 
At least 16 percent but 
less than 20 percent ...
0.4 cents 
0.4 cents 
At least 20 percent but 
less than 24 percent ...
0.5 cents 
0.5 cents 
Equal to or greater than 
24 percent ..................
0.6 cents 
0.6 cents. 
‘‘(2) YEARS AFTER 2016.—In the case of tax-
able years beginning after December 31, 2016, the 
intermittent renewable portfolio factor for an eligible 
taxpayer shall be determined as follows: 
‘‘In the case of an 
eligible taxpayer 
whose intermittent 
renewable elec-
tricity percentage 
is: 
For taxable years 
beginning before 
2019, the intermit-
tent renewable 
portfolio factor is: 
For taxable years 
beginning in or 
after 2019, the 
intermittent renew-
able portfolio fac-
tor is: 
Less than 10 percent .....
zero cents 
zero cents 
At least 10 percent but 
less than 12 percent ...
0.2 cents 
zero cents 
At least 12 percent but 
less than 16 percent ...
0.3 cents 
0.15 cents 
At least 16 percent but 
less than 20 percent ...
0.4 cents 
0.4 cents 
At least 20 percent but 
less than 24 percent ...
0.5 cents 
0.5 cents 
Equal to or greater than 
24 percent ..................
0.6 cents 
0.6 cents. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) ELIGIBLE TAXPAYER.—The term ‘eligible 
taxpayer’ means an electric utility (as defined in sec-
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tion 3(22) of the Federal Power Act (16 U.S.C. 
796(22)). 
‘‘(2) RENEWABLE ELECTRICITY.—The term ‘re-
newable electricity’ means electricity generated by— 
‘‘(A) any facility using wind to generate 
such electricity; 
‘‘(B) any facility using solar energy to gen-
erate such electricity; or 
‘‘(C) any facility using any other intermit-
tent renewable energy source which the Sec-
retary of Energy determines has a capacity fac-
tor of less than 50 percent on an annual basis. 
‘‘(3) INTERMITTENT RENEWABLE ELECTRICITY 
PERCENTAGE.—The term ‘intermittent renewable 
electricity percentage’ means the percentage of an el-
igible taxpayer’s total sales of electricity to retail 
customers that is derived from renewable electricity 
(determine without regard to whether such elec-
tricity was produced by the taxpayer). 
‘‘(4) APPLICATION
OF
OTHER
RULES.—For 
purposes of this section, rules similar to the rules of 
paragraphs (1), (3), and (5) of section 45(e) shall 
apply. 
‘‘(5) CREDIT ALLOWED ONLY WITH RESPECT 
TO 1 ELIGIBLE ENTITY.—No credit shall be allowed 
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under subsection (a) with respect to renewable elec-
tricity purchased from another eligible entity if a 
credit has been allowed under this section or a pay-
ment has been made under section 6433 to such 
other eligible entity. 
‘‘(d) CREDIT DISALLOWED UNLESS CREDIT PASSED 
TO THIRD PARTY GENERATORS CHARGED FOR INTEGRA-
TION COSTS.— 
‘‘(1) IN GENERAL.—In the case of renewable 
electricity eligible for the credit under subsection (a) 
that is purchased and not produced by an eligible 
taxpayer, no credit shall be allowed unless any 
charge the taxpayer has assessed the seller to re-
cover the integration costs associated with such elec-
tricity has been reduced (but not below zero) to the 
extent of the credit received under subsection (a) as-
sociated with such electricity. 
‘‘(2) DEFINITIONS.—For purposes of paragraph 
(1), charges intended to recover integration costs do 
not include amounts paid by the producer of the 
electricity for interconnection facilities, distribution 
upgrades, network upgrades, or stand alone network 
upgrades as those terms have been defined by the 
Federal Energy Regulatory Commission in its 
Standard Interconnection Procedures. 
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‘‘(e) COORDINATION WITH PAYMENTS.—The amount 
of the credit determined under this section with respect 
to any electricity shall be reduced to take into account any 
payment provided with respect to such electricity solely by 
reason of the application of section 6433.’’. 
(2) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Inter-
nal Revenue Code of 1986 is amended by striking 
‘‘plus’’ at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ‘‘, 
plus’’, and by adding at the end the following new 
paragraph: 
‘‘(37) the renewable electricity integration cred-
it determined under section 45S(a).’’. 
(3) SPECIFIED CREDIT.—Subparagraph (B) of 
section 38(c)(4) of the Internal Revenue Code of 
1986 is amended by redesignating clauses (vii) 
through (ix) as clauses (viii) through (x), respec-
tively, and by inserting after clause (v) the following 
new clause: 
‘‘(vi) the credit determined under sec-
tion 45S.’’. 
(4) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is 
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amended by adding at the end the following new 
item: 
‘‘Sec. 45S. Renewable electricity integration credit.’’. 
(b) PAYMENTS IN LIEU OF CREDIT.— 
(1) IN GENERAL.—Subchapter B of chapter 65 
of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 6433. RENEWABLE ELECTRICITY INTEGRATION PAY-
MENTS. 
‘‘(a) IN GENERAL.—If any eligible person sells re-
newable electricity to a retail customer, the Secretary shall 
pay (without interest) to any such person who elects to 
receive a payment an amount equal to the product of— 
‘‘(1) the intermittent renewable portfolio factor 
of such eligible person; and 
‘‘(2) the number of kilowatt hours of renewable 
electricity— 
‘‘(A) purchased or produced by such per-
son; and 
‘‘(B) sold by such person in the trade or 
business of such person to a retail customer. 
‘‘(b) TIMING OF PAYMENTS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), rules similar to the rules of section 
6427(i)(1) shall apply for purposes of this section. 
‘‘(2) QUARTERLY PAYMENTS.— 
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‘‘(A) IN GENERAL.—If, at the close of any 
quarter of the taxable year of any person, at 
least $750 is payable in the aggregate under 
subsection (a), to such person with respect to 
electricity purchased or produced during— 
‘‘(i) such quarter; or 
‘‘(ii) any prior quarter (for which no 
other claim has been filed) during such 
taxable year, a claim may be filed under 
this section with respect to such electricity. 
‘‘(B) TIME FOR FILING CLAIM.—No claim 
filed under this paragraph shall be allowed un-
less filed on or before the last day of the first 
quarter following the earliest quarter included 
in the claim. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section: 
‘‘(1) ELIGIBLE
PERSON.—The term ‘eligible 
person’ means an electric utility (as defined in sec-
tion 3(22) of the Federal Power Act (16 U.S.C. 
796(22)). 
‘‘(2) OTHER DEFINITIONS.—Any term used in 
this section which is also used in section 45S shall 
have the meaning given such term under section 
45S. 
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