Title: Renewable Electricity Standard Act
Policy area: Energy

Summary:
Renewable Electricity Standard Act
This bill requires retail electric suppliers to generate a significant amount of electricity from renewable energy resources.
The Department of Energy must establish a program to (1) verify and issue federal renewable energy credits to generators of renewable energy; (2) track the sale, exchange, and retirement of the credits; and (3) enforce the federal renewable energy credits program.
The bill prescribes rules for federal renewable energy credit trading and for borrowing and repayment of federal renewable energy credits.
The bill establishes a state renewable energy account to provide grants for promoting renewable energy production and providing energy assistance and weatherization services to low-income consumers.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1974 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 1974

    To amend the Public Utility Regulatory Policies Act of 1978 to 
  establish a renewable electricity standard, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 26, 2019

  Mr. Udall (for himself, Mr. Heinrich, Mr. King, Ms. Smith, and Mr. 
  Whitehouse) introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
    To amend the Public Utility Regulatory Policies Act of 1978 to 
  establish a renewable electricity standard, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Renewable Electricity Standard 
Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) renewable energy is the cheapest new form of 
        electricity in many regions of the United States;
            (2) to meet the climate goals of the United States, every 
        State must transition to carbon-free electricity by 2050;
            (3) renewable energy is a virtually unlimited resource that 
        can help avoid pollution of the air, water, and land of the 
        United States;
            (4) States without high levels of renewable energy should 
        not be penalized for past inaction, but should comply with an 
        annual percentage increase of renewable electricity; and
            (5) States should be encouraged to create their own 
        renewable electricity standards or clean energy standards above 
        the Federal renewable electricity standard.

SEC. 3. RENEWABLE ELECTRICITY STANDARD.

    (a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end 
the following:

``SEC. 610. RENEWABLE ELECTRICITY STANDARD.

    ``(a) Definitions.--In this section:
            ``(1) Base quantity of electricity.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `base quantity of 
                electricity' means the total quantity of electric 
                energy sold by a 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.
                    ``(B) Exception.--The term `base quantity of 
                electricity' does not include any quantity of renewable 
                energy delivered by a retail electric supplier to an 
                electric customer pursuant to a voluntarily transaction 
                entered into by the customer to meet the demand of the 
                customer for renewable energy.
            ``(2) Eligible facility.--The term `eligible facility' 
        means a facility for the generation of electric energy that--
                    ``(A) generates electric energy from a new 
                renewable energy resource using equipment that comes 
                online during calendar year 2020 or thereafter;
                    ``(B) generates additional electric energy during a 
                calendar year from increased efficiency of, or 
                additions of capacity to, existing equipment for the 
                generation of electric energy from a renewable energy 
                resource, as compared to the quantity of electric 
                energy generated from renewable energy resources during 
                the preceding calendar year;
                    ``(C) generates electric energy from a renewable 
                energy resource using repowered equipment that was 
                placed in service before calendar year 2020, even 
                though that repowered equipment contains some used 
                property, if the cost of the new property is not less 
                than 4 times the fair market value of the used property 
                contained in the repowered equipment; or
                    ``(D) generates electric energy from a renewable 
                energy resource using equipment that comes online after 
                calendar year 2005 and before calendar year 2020, and 
                that electric energy--
                            ``(i) is not under a contract for the sale 
                        of renewable energy credits or physical power 
                        to--
                                    ``(I) a retail electric supplier 
                                for use in complying with a State 
                                renewable portfolio standard; or
                                    ``(II) meet voluntary market 
                                demand; and
                            ``(ii)(I) is delivered for end-use 
                        consumption in the regional reliability entity 
                        (as recognized by the North American Electric 
                        Reliability Corporation) in which the retail 
                        electric supplier is located; and
                            ``(II) the end-use consumption within that 
                        region can be tracked and verified.
            ``(3) Impacted community.--The term `impacted community' 
        means--
                    ``(A) an economically distressed area affected by 
                environmental pollution or other hazards that can lead 
                to--
                            ``(i) exposure to the pollution or hazard, 
                        including negative public health effects 
                        resulting from that exposure; or
                            ``(ii) environmental degradation; and
                    ``(B) an economically distressed area affected by 
                high unemployment due to--
                            ``(i) a significant decline in coal mining 
                        activity; or
                            ``(ii) the closure of a coal-fired power 
                        plant.
            ``(4) Incremental hydropower.--The term `incremental 
        hydropower' means additional generation that is achieved from 
        increased efficiency of, or additions of capacity to, existing 
        hydroelectric facilities that are made on or after the date of 
        enactment of this section.
            ``(5) Indian land.--The term `Indian land' means--
                    ``(A) any land within the limits of any Indian 
                reservation, pueblo, or rancheria;
                    ``(B) any land not within the limits of any Indian 
                reservation, pueblo, or rancheria title to which on the 
                date of enactment of this section was held by--
                            ``(i) the United States for the benefit of 
                        any Indian Tribe or individual; or
                            ``(ii) any Indian Tribe or individual 
                        subject to restriction by the United States 
                        against alienation;
                    ``(C) any dependent Indian community; and
                    ``(D) any land conveyed to any Alaska Native 
                Corporation under the Alaska Native Claims Settlement 
                Act (43 U.S.C. 1601 et seq.).
            ``(6) Indian tribe.--The term `Indian Tribe' means any 
        Indian Tribe, band, nation, or other organized group or 
        community, including any Alaskan Native village or regional or 
        village corporation (as defined in, or established pursuant to, 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.)), that is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians.
            ``(7) Renewable biomass.--
                    ``(A) In general.--The term `renewable biomass' 
                means--
                            ``(i) crop byproducts or crop residues 
                        that--
                                    ``(I) are harvested from actively 
                                managed or fallow agricultural land 
                                that is cleared prior to January 1, 
                                2019; and
                                    ``(II) are procured at a rate that 
                                adequately maintains soil carbon and 
                                prevents erosion;
                            ``(ii) closed-loop biomass (as defined in 
                        section 45(c)(2) of the Internal Revenue Code 
                        of 1986) that is harvested from land cleared 
                        prior to January 1, 2019;
                            ``(iii) byproducts of wood or paper mill 
                        operations, including lignin in spent pulping 
                        liquors;
                            ``(iv) small diameter thinned trees (as 
                        defined in a regulation promulgated by the 
                        Secretary, in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency and Secretary of the Interior, pursuant 
                        to a negotiated rulemaking), logging residues 
                        (as defined by the Forest Service), or tops and 
                        limbs (as defined by the Forest Service);
                            ``(v) trees removed for purposes of 
                        ecological restoration, to be determined by the 
                        Secretary, in consultation with the Chief of 
                        the Forest Service and the Director of the 
                        United States Fish and Wildlife Service, taking 
                        into consideration climate impacts;
                            ``(vi) algae;
                            ``(vii) nonhazardous plant matter derived 
                        from waste--
                                    ``(I) including separated yard 
                                waste, landscape right-of-way 
                                trimmings, and food waste; but
                                    ``(II) not including municipal 
                                solid waste, recyclable waste paper, 
                                painted, treated or pressurized wood, 
                                or wood contaminated with plastic or 
                                metals; and
                            ``(viii) vegetative matter removed from 
                        within 200 yards of any man-made structure or 
                        campground for the purposes of hazardous fuels 
                        thinning.
                    ``(B) Exclusion of invasive species.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), except as provided in clause 
                        (ii), the term `renewable biomass' does not 
                        include any matter derived from a plant that is 
                        invasive or noxious, or from a species or 
                        variety of plants that credible risk assessment 
                        tools or other credible sources determine is 
                        potentially invasive, as determined by the 
                        Secretary, in consultation with other 
                        appropriate Federal or State departments and 
                        agencies.
                            ``(ii) Exception.--The term `renewable 
                        biomass' includes matter derived from a plant 
                        that is invasive or noxious, or from a species 
                        or variety of plants that credible risk 
                        assessment tools or other credible sources 
                        determine is potentially invasive, if--
                                    ``(I) the matter was removed for 
                                purposes of control or eradication of 
                                the invasive, noxious, or potentially 
                                invasive plant; and
                                    ``(II) the invasive, noxious, or 
                                potentially invasive plant was not 
                                planted for the purpose of using the 
                                plant as an energy crop.
            ``(8) Renewable energy.--The term `renewable energy' means 
        electric energy generated by a renewable energy resource.
            ``(9) Renewable energy resource.--The term `renewable 
        energy resource' means--
                    ``(A) solar;
                    ``(B) wind;
                    ``(C) ocean;
                    ``(D) tidal;
                    ``(E) geothermal energy;
                    ``(F) renewable biomass;
                    ``(G) landfill gas;
                    ``(H) incremental hydropower; or
                    ``(I) hydrokinetic energy.
            ``(10) Retail electric supplier.--
                    ``(A) In general.--The term `retail electric 
                supplier' means a person that sells electric energy to 
                electric consumers for purposes other than resale 
                during the preceding calendar year.
                    ``(B) Sales to parent companies or affiliates.--For 
                purposes of this paragraph, sales by any person to a 
                parent company or to other affiliates of the person 
                shall not be treated as sales to electric consumers.
    ``(b) Compliance.--For calendar year 2020 and each calendar year 
thereafter, each retail electric supplier shall meet the requirements 
of subsection (c) by submitting to the Secretary, not later than April 
1 of the following calendar year, 1 or more of the following:
            ``(1) Federal renewable energy credits issued under 
        subsection (e).
            ``(2) Certification of the renewable energy generated and 
        electricity savings pursuant to the funds associated with State 
        compliance payments as specified in subsection (e)(4)(F).
            ``(3) Alternative compliance payments pursuant to 
        subsection (h).
    ``(c) Required Annual Percentage Increase.--
            ``(1) In general.--Except as provided in paragraph (2), for 
        each of calendar years 2020 through 2035, the required annual 
        percentage increase of the base quantity of electricity of a 
        retail electric supplier that shall be generated from renewable 
        energy resources, or otherwise credited toward the percentage 
        requirement pursuant to subsection (d), shall be the applicable 
        percentage specified in the following table:

                                                        Required Amount
``Calendar Year                                              percentage
        2020...............................................        1.5 
        2021...............................................        2.0 
        2022...............................................        2.0 
        2023...............................................        2.0 
        2024...............................................        2.0 
        2025...............................................        2.0 
        2026...............................................        2.0 
        2027...............................................        2.0 
        2028...............................................        2.0 
        2029...............................................        2.0 
        2030...............................................        2.5 
        2031...............................................        2.5 
        2032...............................................        2.5 
        2033...............................................        2.5 
        2034...............................................        2.5 
        2035...............................................        2.5.
            ``(2) Application to certain retail electric suppliers.--In 
        the case of a retail electric supplier that sells less than 
        1,000,000 megawatt hours of electric energy to electric 
        consumers for purposes other than resale during the preceding 
        calendar year, for each of calendar years 2020 through 2035, 
        the required annual percentage increase of the base quantity of 
        electricity of the retail electric supplier that shall be 
        generated from renewable energy resources, or otherwise 
        credited toward the percentage requirement pursuant to 
        subsection (d), shall be \1/2\ of the percentage specified for 
        the calendar year in the table in paragraph (1).
    ``(d) Renewable Energy Credits.--
            ``(1) In general.--A retail electric supplier may satisfy 
        the requirements of subsection (b)(1) through the submission of 
        Federal renewable energy credits--
                    ``(A) issued to the retail electric supplier under 
                subsection (e);
                    ``(B) obtained by purchase or exchange under 
                subsection (f); or
                    ``(C) borrowed under subsection (g).
            ``(2) Federal renewable energy credits.--A Federal 
        renewable energy credit may be counted toward compliance with 
        subsection (b)(1) only once.
    ``(e) Issuance of Federal Renewable Energy Credits.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Secretary shall establish by 
        rule a program--
                    ``(A) to verify and issue Federal renewable energy 
                credits to generators of renewable energy;
                    ``(B) to track the sale, exchange, and retirement 
                of the credits; and
                    ``(C) to enforce the requirements of this section.
            ``(2) Existing non-federal tracking systems.--To the 
        maximum extent practicable, in establishing the program, the 
        Secretary shall rely on existing and emerging State or regional 
        tracking systems that issue and track non-Federal renewable 
        energy credits.
            ``(3) Application.--
                    ``(A) In general.--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.
                    ``(B) Eligibility.--To be eligible for the issuance 
                of the credits, the applicant shall demonstrate to the 
                Secretary that--
                            ``(i)(I) the electric energy will be 
                        transmitted onto the grid; or
                            ``(II) in the case of a generation offset, 
                        the electric energy offset would have otherwise 
                        been consumed onsite; and
                            ``(ii) in the case of electric energy 
                        generated from a renewable energy resource 
                        using equipment that comes online after 
                        calendar year 2005 and before calendar year 
                        2020, each new kilowatt hour of electric energy 
                        generated by that equipment satisfies the 
                        criteria set forth in clauses (i) and (ii) of 
                        subsection (a)(2)(D).
                    ``(C) Contents.--The application shall indicate--
                            ``(i) the type of renewable energy resource 
                        that is used to produce the electricity;
                            ``(ii) the location at which the electric 
                        energy will be produced; and
                            ``(iii) any other information the Secretary 
                        determines appropriate.
            ``(4) Quantity of federal renewable energy credits.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the Secretary shall issue to a 
                generator of electric energy 1 Federal renewable energy 
                credit for each new kilowatt hour of electric energy 
                generated by the use of a renewable energy resource at 
                an eligible facility each year.
                    ``(B) Incremental hydropower.--
                            ``(i) In general.--For purpose of 
                        compliance with this section, Federal renewable 
                        energy credits for incremental hydropower shall 
                        be based on the increase in average annual 
                        generation resulting from the efficiency 
                        improvements or capacity additions.
                            ``(ii) Water flow information.--The 
                        incremental generation shall be calculated 
                        using the same water flow information that is--
                                    ``(I) used to determine a historic 
                                average annual generation baseline for 
                                the hydroelectric facility; and
                                    ``(II) certified by the Secretary 
                                or the Commission.
                            ``(iii) Operational changes.--The 
                        calculation of the Federal renewable energy 
                        credits for incremental hydropower shall not be 
                        based on any operational change at the 
                        hydroelectric facility that is not directly 
                        associated with the efficiency improvements or 
                        capacity additions.
                    ``(C) Indian land.--The Secretary shall issue 2 
                renewable energy credits for each new kilowatt hour of 
                electric energy generated and supplied to the grid in a 
                calendar year through the use of a renewable energy 
                resource at an eligible facility located on Indian 
                land.
                    ``(D) Impacted communities.--The Secretary shall 
                issue 2 renewable energy credits for each new kilowatt 
                hour of electric energy generated and supplied to the 
                grid in a calendar year through the use of a renewable 
                energy resource at an eligible facility located in an 
                impacted community.
                    ``(E) Combination of renewable and nonrenewable 
                energy resources.--If both a renewable energy resource 
                and a nonrenewable energy resource are used to generate 
                the electric energy, the Secretary shall issue the 
                Federal renewable energy credits based on the 
                proportion of the renewable energy resources used.
                    ``(F) Compliance with state renewable portfolio 
                standard programs.--Payments made by a retail electric 
                supplier, directly or indirectly, to a State for 
                compliance with a State renewable portfolio standard 
                program, or for an alternative compliance mechanism, 
                shall be valued at 1 credit per kilowatt hour for the 
                purpose of subsection (b)(2) based on the quantity of 
                electric energy generation from renewable resources 
                that results from the payments.
    ``(f) Renewable Energy Credit Trading.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        Federal renewable energy credit may be sold, transferred, or 
        exchanged by the entity to whom the credit is issued or by any 
        other entity that acquires the Federal renewable energy credit.
            ``(2) Limitation.--A Federal renewable energy credit may 
        not be sold, transferred, or exchanged under paragraph (1) if 
        the credit was issued to an eligible facility as a result of 
        that facility having complied with a State program the 
        requirements of which exceed the requirements of this section 
        with respect to the quantity of renewable energy.
            ``(3) Carryover.--A Federal renewable energy credit for any 
        year that is not submitted to satisfy the minimum required 
        increase in renewable generation under subsection (c) for that 
        year may be carried forward for use pursuant to subsection 
        (b)(1) within the next 3 years.
            ``(4) Delegation.--The Secretary may delegate to an 
        appropriate market-making entity the administration of a 
        national tradeable renewable energy credit market for purposes 
        of creating a transparent national market for the sale or trade 
        of renewable energy credits.
    ``(g) Renewable Energy Credit Borrowing.--
            ``(1) In general.--Not later than December 31, 2020, a 
        retail electric supplier that has reason to believe the retail 
        electric supplier will not be able to fully comply with 
        subsection (b) may--
                    ``(A) submit a plan to the Secretary demonstrating 
                that the retail electric supplier will earn sufficient 
                Federal renewable energy credits within the next 3 
                calendar years that, when taken into account, will 
                enable the retail electric supplier to meet the 
                requirements of subsection (b) for calendar year 2020 
                and the subsequent calendar years involved; and
                    ``(B) on the approval of the plan by the Secretary, 
                apply Federal renewable energy credits that the plan 
                demonstrates will be earned within the next 3 calendar 
                years to meet the requirements of subsection (b) for 
                each calendar year involved.
            ``(2) Repayment.--The retail electric supplier shall repay 
        all of the borrowed Federal renewable energy credits by 
        submitting an equivalent number of Federal renewable energy 
        credits, in addition to the credits otherwise required under 
        subsection (b), by calendar year 2023 or any earlier deadlines 
        specified in the approved plan.
    ``(h) Alternative Compliance Payments.--As a means of compliance 
under subsection (b)(3), the Secretary shall accept payment equal to 
the lesser of--
            ``(1) 200 percent of the average market value of Federal 
        renewable energy credits for the applicable compliance period; 
        or
            ``(2) 3 cents per kilowatt hour (as adjusted on January 1 
        of each year following calendar year 2020 based on the implicit 
        price deflator for the gross national product).
    ``(i) Information Collection.--The Secretary may collect the 
information necessary to verify and audit--
            ``(1)(A) the annual renewable energy generation of any 
        retail electric supplier; and
            ``(B) Federal renewable energy credits submitted by a 
        retail electric supplier pursuant to subsection (b)(1);
            ``(2) the validity of Federal renewable energy credits 
        submitted for compliance by a retail electric supplier to the 
        Secretary; and
            ``(3) the quantity of electricity sales of all retail 
        electric suppliers.
    ``(j) Environmental Savings Clause.--Incremental hydropower shall 
be subject to all applicable environmental laws and licensing and 
regulatory requirements.
    ``(k) State Programs.--
            ``(1) In general.--Nothing in this section preempts or 
        affects any authority of a State, political subdivision of a 
        State, or interstate compact--
                    ``(A) to adopt or enforce any law or rule 
                respecting renewable energy, including by establishing 
                and enforcing a renewable energy program that is 
                separate from the program established under this 
                section, that does not conflict with the requirements 
                of this section; or
                    ``(B) to regulate the acquisition and disposition 
                of Federal renewable energy credits by retail electric 
                suppliers.
            ``(2) Compliance with section.--No law or regulation 
        referred to in paragraph (1)(A) shall relieve any person of any 
        requirement otherwise applicable under this section.
            ``(3) Coordination with state program.--The Secretary, in 
        consultation with States that have in effect renewable energy 
        programs, shall--
                    ``(A) preserve the integrity of the State programs, 
                including programs the requirements of which exceed the 
                requirements of this section with respect to quantity 
                of renewable energy; and
                    ``(B) facilitate coordination between the Federal 
                program and State programs.
            ``(4) State infrastructure investment.--The Federal Energy 
        Regulatory Commission shall seek to ensure that each 
        transmission provider (as defined in section 37.3 of title 18, 
        Code of Federal Regulations (or a successor regulation))--
                    ``(A) identifies the electric transmission 
                infrastructure needs driven by the requirements of this 
                section; and
                    ``(B) fully evaluates, in the transmission planning 
                process, potential transmission solutions to meet those 
                identified needs.
            ``(5) Existing renewable energy programs.--In the 
        regulations establishing the program under this section, the 
        Secretary shall incorporate common elements of existing 
        renewable energy programs, including State programs, to ensure 
        administrative ease, market transparency, and effective 
        enforcement.
            ``(6) Minimization of administrative burdens and costs.--In 
        carrying out this section, the Secretary shall work with the 
        States to minimize administrative burdens and costs to retail 
        electric suppliers.
            ``(7) Opt-out.--
                    ``(A) In general.--Subject to the requirements of 
                this paragraph, the Secretary shall allow a State to 
                elect not to participate in this section, including any 
                program established by the Secretary under this 
                section.
                    ``(B) Eligibility.--A State may elect not to 
                participate in this section if the Secretary determines 
                that--
                            ``(i) more than 60 percent of the 
                        electricity sold in the State each year is 
                        generated from new or existing renewable energy 
                        resources; or
                            ``(ii) the State--
                                    ``(I) has in effect a program the 
                                requirements of which exceed the 
                                requirements of this section with 
                                respect to quantity of new renewable 
                                energy; and
                                    ``(II) has in effect a system of 
                                enforcing compliance with that State 
                                program, including any penalty, that is 
                                at least as effective as the system of 
                                enforcement under this section.
                    ``(C) Application.--
                            ``(i) Submission.--A State electing not to 
                        participate in this section shall submit to the 
                        Secretary an application at such time, in such 
                        manner, and containing such information as the 
                        Secretary may require.
                            ``(ii) Approval.--The Secretary shall 
                        approve an application submitted under clause 
                        (i) if the Secretary determines that the State 
                        meets the requirements described in 
                        subparagraph (B).
                    ``(D) Waiver.--
                            ``(i) In general.--On approval of an 
                        application under subparagraph (C), the 
                        Secretary shall issue to the State a waiver 
                        from the requirements of this section.
                            ``(ii) Duration.--A waiver issued by the 
                        Secretary under clause (i) shall be for a 
                        period of 3 years.
                    ``(E) Effect of opt-out.--
                            ``(i) In general.--On receipt of a waiver 
                        under subparagraph (D), a State, including any 
                        retail electric supplier within the State, 
                        shall be exempt from the requirements of this 
                        section, including any program established by 
                        the Secretary under this section, for the 
                        duration of the waiver.
                            ``(ii) Issuance of federal renewable energy 
                        credits.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the Secretary shall not 
                                issue Federal renewable energy credits 
                                for electricity generated in a State 
                                that has been issued a waiver under 
                                subparagraph (D).
                                    ``(II) Energy consumed in another 
                                state.--On request of an eligible 
                                facility located in a State that has 
                                been issued a waiver under subparagraph 
                                (D), the Secretary may issue to the 
                                eligible facility Federal renewable 
                                energy credits for electric energy 
                                generated by the eligible facility 
                                through the use of a renewable energy 
                                resource if that electric energy was 
                                consumed in a State that has not been 
                                issued a waiver under subparagraph (D).
                            ``(iii) Grants.--A State that has received 
                        a waiver under subparagraph (D) shall not be 
                        eligible for a grant under subsection (n).
    ``(l) Recovery of Costs.--An electric utility that has sales of 
electric energy that are subject to rate regulation (including any 
utility with rates that are regulated by the Commission 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 energy obtained to comply with the requirements of subsection 
(b).
    ``(m) Program Review.--
            ``(1) In general.--The Secretary shall enter into an 
        arrangement with the National Academy of Sciences under which 
        the Academy shall conduct a comprehensive evaluation of all 
        aspects of the program established under this section.
            ``(2) Evaluation.--The study under paragraph (1) shall 
        include an evaluation of--
                    ``(A) the effectiveness of the program in 
                increasing the market penetration and lowering the cost 
                of the eligible renewable energy technologies;
                    ``(B) the opportunities for any additional 
                technologies and sources of renewable energy emerging 
                since the date of enactment of this section;
                    ``(C) the impact on the regional diversity and 
                reliability of supply sources, including the power 
                quality benefits of distributed generation;
                    ``(D) the regional resource development relative to 
                renewable potential and reasons for any investment in 
                renewable resources;
                    ``(E) the net cost or benefit of the renewable 
                electricity standard to the national and State 
                economies, including--
                            ``(i) retail power costs;
                            ``(ii) the economic development benefits of 
                        investment;
                            ``(iii) avoided costs related to 
                        environmental and congestion mitigation 
                        investments that would otherwise have been 
                        required;
                            ``(iv) the impact on natural gas demand and 
                        price; and
                            ``(v) the effectiveness of green marketing 
                        programs at reducing the cost of renewable 
                        resources; and
                    ``(F) the impact of any attrition of existing 
                renewable energy.
            ``(3) Report.--Not later than January 1, 2025, and every 5 
        years thereafter, the Secretary shall submit to Congress a 
        report describing the results of the evaluation and any 
        recommendations for modifications and improvements to the 
        program.
            ``(4) Plan.--Not later than December 31, 2033, the 
        Secretary shall submit to Congress a plan to amend and extend, 
        through regulation, the program and standards established under 
        this section in a manner that will decarbonize the power sector 
        before 2050.
    ``(n) State Renewable Energy Account.--
            ``(1) In general.--There is established in the Treasury a 
        State renewable energy account.
            ``(2) Deposits.--All money collected by the Secretary from 
        the alternative compliance payments under subsection (h) shall 
        be deposited into the State renewable energy account 
        established under paragraph (1).
            ``(3) Grants.--
                    ``(A) In general.--Proceeds deposited in the State 
                renewable energy account shall be used by the 
                Secretary, subject to annual appropriations, for a 
                program to provide grants--
                            ``(i) to the State agency responsible for 
                        administering a fund to promote renewable 
                        energy generation for customers of the State or 
                        an alternative agency designated by the State; 
                        or
                            ``(ii) if no agency described in clause 
                        (i), to the State agency developing State 
                        energy conservation plans under section 362 of 
                        the Energy Policy and Conservation Act (42 
                        U.S.C. 6322).
                    ``(B) Use.--A grant under this paragraph shall be 
                used for the purpose of--
                            ``(i) promoting renewable energy 
                        production; or
                            ``(ii) providing energy assistance and 
                        weatherization services to low-income 
                        consumers.
                    ``(C) Criteria.--The Secretary may issue guidelines 
                and criteria for any grant awarded under this 
                paragraph.
                    ``(D) State-approved funding mechanisms.--At least 
                75 percent of the funds provided to each State for each 
                fiscal year shall be used to promote renewable energy 
                production through grants, production incentives, or 
                other State-approved funding mechanisms.
                    ``(E) Allocation.--The funds shall be allocated to 
                the States on the basis of retail electric sales 
                subject to the renewable electricity standard under 
                this section or through voluntary participation.
                    ``(F) Records.--A State agency receiving a grant 
                under this paragraph shall maintain such records and 
                evidence of compliance as the Secretary may require.''.
    (b) Clerical Amendment.--The table of contents for the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) is 
amended by adding at the end of the items relating to title VI the 
following:

``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Renewable electricity standard.''.
                                 <all>