1.This Act may be cited as the
Clean Energy Standard Act of
2010
.
2.Sense of Congress on
clean energy and energy efficiencyIt is the sense of Congress that the Federal
Government should continue to support the use and expansion of clean energy and
energy efficiency in—
(1)the production
and use of energy;
(2)the reduction of
greenhouse gas emissions; and
(3)the reduction of
dependence on foreign oil.
3.Federal clean
energy standard
(a)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:
610.Federal clean
energy standard
(a)In
this section:
(1)The term advanced coal generation means
the generation of electricity produced from coal by a new or existing coal
generating facility that captures and permanently sequesters or stores at least
65 percent of greenhouse gases produced by the facility.
(2)The
term affiliate when used with respect to a person, means another
person that directly or indirectly owns or controls, is owned or controlled by,
or is under common ownership or control with, such person, as determined under
regulations issued by the Secretary.
(3)Base quantity
of electricity
(A)The term base quantity of electricity means
the total quantity of electricity sold by an electric utility to electric
consumers in a calendar year.
(B)The
term base quantity of electricity does not include—
(i)electricity
generated by a hydroelectric facility (including a pumped storage facility but
excluding qualified hydropower) owned by an electric utility or sold under
contract or rate order to an electric utility to meet the needs of the retail
customers of the utility; or
(ii)electricity
generated through the incineration of municipal solid waste owned by an
electric utility or sold under contract or rate order to an electric utility to
meet the needs of the retail customers of the utility.
(4)The
term biomass means—
(A)materials,
precommercial thinnings, or invasive species from National Forest System land
and public lands (as defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)) that—
(i)are byproducts of
preventive treatments that are removed—
(I)to reduce
hazardous fuels;
(II)to reduce or
contain disease or insect infestation; or
(III)to restore
ecosystem health;
(ii)would not
otherwise be used for higher-value products; and
(iii)are harvested
in accordance with—
(I)applicable law
and land management plans; and
(II)the requirements
for—
- (aa)old-growth
maintenance, restoration, and management direction of paragraphs (2), (3), and
(4) of subsection (e) of section 102 of the Healthy Forests Restoration Act of
2003 (16 U.S.C. 6512); and
- (bb)large-tree
retention of subsection (f) of that section; or
(B)any organic
matter that is available on a renewable or recurring basis from non-Federal
land or land belonging to an Indian or Indian tribe that is held in trust by
the United States or subject to a restriction against alienation imposed by the
United States, including—
(i)renewable plant
material, including—
(I)feed
grains;
(II)other
agricultural commodities;
(III)other plants
and trees; and
(IV)algae;
and
(ii)waste material,
other than paper commonly recycled, including—
(I)crop
residue;
(II)other vegetative
waste material (including wood waste and wood residues);
(III)animal waste
and byproducts (including fats, oils, greases, and manure); and
(IV)food waste and
yard waste; and
(C)residues and
byproducts from wood, pulp, or paper products facilities.
(5)The term clean energy means electric energy
generated at a facility (including a distributed generation facility)
from—
(A)solar, wind,
geothermal, or ocean energy;
(B)biomass;
(C)landfill
gas;
(D)qualified
hydropower;
(E)marine and
hydrokinetic renewable energy (as defined in section 632 of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17211));
(F)incremental
geothermal production;
(G)coal-mined
methane;
(H)qualified
waste-to-energy;
(I)qualified nuclear
energy;
(J)advanced coal
generation;
(K)eligible retired
fossil fuel generation; or
(L)another clean
energy source based on innovative technology, as determined by the Secretary
through rulemaking.
(6)Distributed
generation facilityThe term distributed generation
facility means a facility at or near a customer site that provides
electric energy to 1 or more customers for purposes other than resale other
than to a utility through a net metering arrangement.
(7)Eligible
retired fossil fuel generationThe term eligible retired
fossil fuel generation means the generation of electricity from any
fossil fuel that is—
(A)produced by a
fossil fuel generating facility (including any petroleum coke or oil-fired
steam unit or peaking facility) that had average carbon dioxide emissions
during the 3-year period ending on the date of retirement in excess of 2,250
pounds per megawatt hour of generation; and
(B)permanently
retired during the period beginning on the date of enactment of this section
and ending on January 1, 2015.
(8)The term geothermal energy means energy
derived from a geothermal deposit (within the meaning of section 613(e)(2) of
the Internal Revenue Code of 1986).
(9)Incremental
cost of compliance
(A)The term incremental cost of compliance
means—
(i)the costs
attributable to all retail sales of electricity incurred in a year by an
electric utility to—
(I)generate clean
energy eligible for Federal clean energy credits;
(II)acquire Federal
clean energy credits; or
(III)make
alternative compliance payments in order to comply with the requirements of
subsection (b); less
(ii)(I)the costs the electric
utility would have incurred to serve all of the retail customers of that
electric utility in that year to generate or acquire additional electricity not
eligible for clean energy credits if the requirements of subsection (b) did not
apply to the electric utility; and
(II)the costs of compliance with any
comparable State clean energy requirement.
(B)In calculating the incremental cost of compliance of
an electric utility under this section, the Secretary shall take into account
the reduction, if any, in the cost of electricity generated with fossil fuels
associated with increased reliance on clean energy generation.
(10)Incremental
fossil fuel productionThe term incremental fossil fuel
production means the incremental quantity of electricity generated at an
existing fossil fuel generation facility over the average quantity of
electricity generated at the facility during the preceding 3-year period that
is attributable to permanent efficiency improvements or capacity additions made
on or after the date of enactment of this section, if there is no increase in
greenhouse gas emissions associated with the efficiency improvements or
capacity additions when compared to the average greenhouse gas emissions during
the preceding 3-year period.
(11)Incremental
geothermal production
(A)The term incremental geothermal production
means, for any year, the excess of—
(i)the total
kilowatt hours of electricity produced from a facility (including a distributed
generation facility) using geothermal energy; over
(ii)the average
number of kilowatt hours produced annually at the facility for 5 of the
previous 7 calendar years before the date of enactment of this section after
eliminating the highest and the lowest kilowatt hour production years in that
7-year period.
(B)A facility described in subparagraph (A) that was placed in
service at least 7 years before the date of enactment of this section shall,
commencing with the year in which that date of enactment occurs, reduce the
amount calculated under subparagraph (A)(ii) each year, on a cumulative basis,
by the average percentage decrease in the annual kilowatt hour production for
the 7-year period described in subparagraph (A)(ii) with such cumulative sum,
but not to exceed 30 percent.
(12)
(A)The term incremental hydropower means
additional energy generated as a result of efficiency improvements or capacity
additions made on or after January 1, 1992.
(B)The
term incremental hydropower does not include additional energy
generated as a result of operational changes not directly associated with
efficiency improvements or capacity additions.
(C)Measurement and
certificationEfficiency improvements and capacity additions
referred to in subparagraph (A) shall be—
(i)measured on the
basis of the same water flow information used to determine a historic average
annual generation baseline for the hydroelectric facility; and
(ii)certified by the
Secretary or the Federal Energy Regulatory Commission.
(13)Incremental
nuclear productionThe term incremental nuclear
production means the incremental quantity of energy generated by an
existing nuclear facility over the average quantity of energy generated at the
facility during the preceding 3-year period that is attributable to permanent
efficiency improvements or capacity additions made on or after the date of
enactment of this section.
(14)The term Indian land has the meaning given the
term in section 2601 of the Energy Policy Act of 1992 (25 U.S.C. 3501).
(15)
(A)The term qualified hydropower means—
(i)incremental
hydropower;
(ii)additions of
capacity made on or after January 1, 2001, or the effective commencement date
of an existing applicable State clean or renewable electricity standard program
at an existing nonhydroelectric dam, if—
(I)the hydroelectric
project installed on the nonhydroelectric dam—
- (aa)is
licensed by the Federal Energy Regulatory Commission, or is exempt from
licensing, and is in compliance with the terms and conditions of the license or
exemption; and
- (bb)meets all other
applicable environmental, licensing, and regulatory requirements, including
applicable fish passage requirements;
(II)the
nonhydroelectric dam—
- (aa)was placed in
service before the date of enactment of this section;
- (bb)was operated for
flood control, navigation, or water supply purposes; and
- (cc)did not produce
hydroelectric power as of the date of enactment of this section; and
(III)the
hydroelectric project is operated so that the water surface elevation at any
given location and time that would have occurred in the absence of the
hydroelectric project is maintained, subject to any license requirements
imposed under applicable law that change the water surface elevation for the
purpose of improving the environmental quality of the affected waterway, as
certified by the Federal Energy Regulatory Commission; and
(iii)in the case of
the State of Alaska—
(I)energy generated
by a small hydroelectric facility that produces less than 50 megawatts;
(II)energy from
pumped storage; and
(III)energy from a
lake tap.
(B)Nothing
in this paragraph or the application of this paragraph shall affect the
standards under which the Federal Energy Regulatory Commission issues licenses
for and regulates hydropower projects under part I of the Federal Power Act (16
U.S.C. 791a et seq.).
(16)The term qualified nuclear energy
means energy from a nuclear generating unit placed in service on or after the
date of enactment of this section.
(17)Qualified
waste-to-energyThe term qualified waste-to-energy
means energy from the combustion of post-recycled municipal solid waste, or
from the gasification or pyrolization of such waste and the combustion of the
resulting gas at the same facility, if the owner or operator of the facility
generating electricity from the energy provides to the Secretary, on an annual
basis—
(A)a certification
that the facility is in compliance with all applicable Federal and State
environmental permits;
(B)in the case of a
facility that commences operation before the date of enactment of this section,
a certification that the facility meets emissions standards promulgated under
section 112 or 129 of the Clean Air Act (42 U.S.C. 7412, 7429) that apply as of
the date of enactment of this section to new facilities within the relevant
source category; and
(C)in the case of
the combustion, pyrolization, or gasification of municipal solid waste, a
certification that each local government unit from which such waste originates
operates, participates in the operation of, contracts for, or otherwise
provides for, recycling services for residents of the local government
unit.
(b)Clean energy
and energy efficiency requirement
(1)
(A)Subject to subparagraph (B), each electric utility that
sells electricity to electric consumers for a purpose other than resale shall
obtain a percentage of the base quantity of electricity the electric utility
sells to electric consumers in any calendar year from clean energy or energy
efficiency.
(B)Except
as provided in section 611, the percentage obtained in a calendar year under
subparagraph (A) shall not be less than the amount specified in the following
table:
Calendar
year:Minimum annual percentage:
2013 and 201413
2015 through 201915
2020 through 202420
2025 through 202925
2030 through 203430
2035 through 203935
2040 through 204440
2045 through 204945
2050 50.
(2)An electric utility shall meet the requirements of
paragraph (1) by—
(A)submitting to the
Secretary clean energy credits issued under subsection (c);
(B)submitting
Federal energy efficiency credits issued under subsection (i), except that
those credits may not be used to meet more than 25 percent of the requirements
under paragraph (1) in any calendar year;
(C)making
alternative compliance payments to the Secretary at the rate of 3.5 cents per
kilowatt hour (as adjusted for inflation under subsection (g)) if the electric
utility does not elect to petition the Secretary to waive the requirements
under subsection (d)(3)(C); or
(D)a combination of
activities described in subparagraphs (A), (B), and (C).
(3)The
Secretary shall prescribe, by regulation, a reasonable phase-in of the
requirements of paragraph (1) as the requirements apply to an electric utility
that becomes subject to this section on or after January 1, 2013.
(c)Federal clean
energy and energy efficiency credit trading programs
(1)Not later than January 1, 2011, the Secretary shall
establish a Federal clean energy credit trading program, and a Federal energy
efficiency credit trading program, under which electric utilities shall submit
to the Secretary Federal clean energy credits and Federal energy efficiency
credits to certify the compliance of the electric utilities with subsection
(b)(1).
(2)As
part of the program, the Secretary shall—
(A)issue clean
energy credits to generators of electric energy from clean energy, regardless
of whether the energy is transmitted over the national interstate transmission
system;
(B)to the extent
that clean sources of electricity are used in combination with other sources of
energy, issue credits only to the extent that the electricity generated is from
clean energy resources;
(C)issue clean
energy credits to electric utilities associated with State clean energy
standard compliance mechanisms pursuant to subsection (h);
(D)issue energy
efficiency credits pursuant to subsection (i);
(E)subject to
subparagraph (F), ensure that a kilowatt hour, including the associated clean
energy credit or energy efficiency credit, shall be used only once for purposes
of compliance with this Act;
(F)allow double
credits for generation from facilities on Indian land, and triple credits for
generation from small clean energy distributed generators no larger than 1
megawatt, except that no distributed clean energy generation facilities on
Indian land shall receive a greater number of credits than triple
credits;
(G)ensure that, with
respect to a purchaser that, as of the date of enactment of this section, has a
purchase agreement from a clean energy facility placed in service before that
date, the credit associated with the generation of clean energy under the
contract is issued to the purchaser of the electric energy to the extent that
the contract does not already provide for the allocation of the Federal
credit;
(H)in the case of
eligible retired fossil fuel generation, issue 0.25 credits per kilowatt hour
during the 3 year-period beginning on the date of retirement based on the
average annual quantity of electricity generated by eligible retired fossil
fuel generation during the final 3 years of operation of the facility;
(I)calculate the
quantity of clean energy credits issued for advanced coal generation, which
shall be equal to the product obtained by multiplying—
(i)the kilowatt
hours of electricity generated by a facility and supplied to the grid during
the prior year; by
(ii)during the same
year, the ratio of—
(I)the quantity of
carbon dioxide captured from the facility and sequestered; bears to
(II)the sum
of—
- (aa)the quantity of
carbon dioxide captured from the facility and sequestered; and
- (bb)the quantity of
carbon dioxide emitted from the facility;
(J)issue double
clean energy credits in the case of the first 5 new advanced coal generation
facilities that permanently sequester a minimum of 1,000,000 tons per year of
carbon dioxide into deep geologic formations;
(K)issue double
credits in the case of the first 5 retrofitted coal plants that are advanced
coal generators, if the retrofitted facilities capture at least 200 MWe
equivalent of flue gas and sequester carbon dioxide into deep geologic
formations;
(L)in the case of
credits issued under subparagraphs (J) and (K), if the qualifying project uses
captured carbon dioxide for purposes of enhanced hydrocarbon recovery, reduce
the credits by .25; and
(M)issue clean
energy credits for the useful electric and thermal output from a facility that
produces the output from biomass, using a system under which—
(i)in the case of
efficiency that is less than 50 percent, 1 clean energy credit is
awarded;
(ii)in the case of
efficiency that is 50 percent or more but less than 70 percent, 1.1 clean
energy credits are awarded for the same unit output;
(iii)in the case of
efficiency that is 70 percent or more but less than 90 percent, 1.25 clean
energy credits are awarded for the same unit output; and
(iv)in the case of
efficiency that is 90 percent or more, 1.5 clean energy credits are awarded for
the same unit output.
(3)Clean energy
credit borrowingAt any time before the end of calendar year 2015
and any subsequent calendar year, an electric utility that has reason to
believe the electric utility will not have sufficient clean energy credits to
comply with subsection (b) may—
(A)submit to the
Secretary a plan that demonstrates that the electric utility, as a consequence
of having facilities under construction at the time the plan is submitted, will
earn sufficient clean energy credits during the subsequent 3 calendar years to
meet the requirements of subsection (b) for calendar year 2015 and the
subsequent calendar years affected; and
(B)on approval of
the plan by the Secretary, apply clean energy credits that the plan
demonstrates will be earned during the subsequent 3 calendar years to meet the
requirements of subsection (b) for each calendar year affected.
(4)Credit trading
and banking
(A)An electric utility that holds clean energy credits in
excess of the quantity of credits needed to comply with subsection (b) may
transfer the credits to another electric utility in the same utility holding
company system or sell the credits to another electric utility.
(B)A clean energy credit for any year that is not used to
satisfy the minimum clean energy requirements of subsection (b) for that year
may be carried forward for use in any subsequent year.
(5)Delegation of
market function
(A)The Secretary may delegate to—
(i)an appropriate
market-making entity the administration of a national clean energy credit
market and a national energy efficiency credit market for purposes of creating
a transparent national market for the sale or trade of clean energy credits and
energy efficiency credits; and
(ii)regional
entities the tracking of dispatch of clean energy generation.
(B)Any
delegation under subparagraph (A) shall ensure that the tracking and reporting
of information concerning the dispatch of clean energy generation is
transparent, verifiable, and independent of any generation or load interests
with obligations under this section.
(d)
(1)Any electric utility that fails to meet the
requirements of subsection (b) shall be subject to a civil penalty.
(2)The amount of the civil penalty shall be equal to the
product obtained by multiplying—
(A)the number of
kilowatt hours of electric energy sold to electric consumers in violation of
subsection (b); by
(B)200 percent of
the value of the alternative compliance payment, as adjusted for inflation
under subsection (g).
(3)
(A)
(i)The Secretary shall mitigate or waive a civil penalty
under this subsection if the electric utility is unable to comply with
subsection (b) due to a reason outside of the reasonable control of the
electric utility.
(ii)The
Secretary shall reduce the amount of any penalty determined under paragraph (2)
by the amount paid by the electric utility to a State for failure to comply
with the requirement of a State clean or renewable energy program if the State
requirement is greater than the applicable requirement of subsection
(b).
(B)The
Secretary may waive the requirements of subsection (b) for a period of up to 5
years with respect to an electric utility if the Secretary determines that the
electric utility cannot meet the requirements due to a hurricane, tornado,
fire, flood, earthquake, ice storm, or other natural disaster or act of God
beyond the reasonable control of the utility.
(C)
(i)Subject to clause (ii), effective beginning June 1, 2013,
and not later than June 1 of each year thereafter, an electric utility may
petition the Secretary to waive, for the following compliance year, all or part
of the requirements of subsection (b) in order to limit the rate impact of the
incremental cost of compliance of the electric utility to not more than 4
percent per retail customer in any year.
(ii)
(I)Exhaustion of
opportunitiesThe Secretary may waive all or part of the
requirements of subsection (b) only on a demonstration by the petitioner that
the petitioner has exhausted all opportunities under this section to comply
with the requirements of subsection (b).
(II)Any
waiver granted by the Secretary under this subparagraph shall be limited to the
maximum extent practicable while ensuring that the increased cost of compliance
does not exceed 4 percent per retail customer for any year.
(D)A
State public utility commission or electric utility may submit an application
to the Secretary that requests a variance from the requirements of subsection
(b) for 1 or more calendar years (including suspension or reduction of the
requirements) on the basis of transmission constraints preventing delivery of
clean energy.
(4)Procedure for
assessing penaltyThe Secretary shall assess a civil penalty
under this subsection in accordance with the procedures prescribed by section
333(d) of the Energy Policy and Conservation Act (42 U.S.C. 6303(d)).
(e)Alternative
compliance payments
(1)An electric utility may satisfy the requirements of
subsection (b), in whole or in part, by submitting in accordance with this
subsection, in lieu of each Federal clean energy credit or megawatt hour of
demonstrated total annual electricity savings that would otherwise be due, a
payment equal to the amount required under subsection (b) in accordance with
such regulations as the Secretary may promulgate.
(2)Payments made under this subsection shall be made
directly to the 1 or more States in which the electric utility is located, in
proportion to the base quantity of a retail electric supplier that is within
each applicable State, if the payments are deposited directly into a fund
within the treasury of the State for use in accordance with paragraph
(3).
(3)The Governor of any State may expend amounts in a State
clean energy escrow account solely for purposes of—
(A)increasing the
quantity of electric energy produced from a clean energy source in the State,
including nuclear and advanced coal technologies for carbon capture and
sequestration;
(B)promoting the
deployment and use of electric drive vehicles in the State, including the
development of electric drive vehicles and batteries; and
(C)offsetting the
costs of carrying out this section paid by electric consumers in the State
through—
(i)direct grants to
electric consumers; or
(ii)energy
efficiency investments.
(4)As a condition of providing payments to a State under
this subsection, the Secretary may require the Governor to keep such accounts
or records, and furnish such information and reports, as the Secretary
determines are necessary and appropriate for determining compliance with this
subsection.
(f)
(1)During any calendar year, this section shall not apply to
an electric utility—
(A)that sold less
than 4,000,000 megawatt hours of electric energy to electric consumers during
the preceding calendar year, except that sales to an affiliate, lessee, or
tenant of the electric utility shall not be treated as sales to electric
consumers under this paragraph; or
(B)in Hawaii.
(2)
(A)Paragraph (1) shall not apply to an electric utility
described in paragraph (1) that voluntary elects to be covered by this
section.
(B)Sale of clean
energy creditsAn electric utility that is not covered by this
section and has not elected to be covered by this section shall not be eligible
to sell any credits generated pursuant to this section to any other
person.
(g)Not later than December 31 of each year beginning in
2011, the Secretary shall adjust for inflation the rate of the alternative
compliance payment under subsection (b)(2)(C).
(h)
(1)Subject to paragraph (2), nothing in this section
diminishes any authority of a State or political subdivision of a State to
adopt or enforce any law or regulation respecting clean energy or energy
efficiency, or the regulation of electric utilities.
(2)Except
as provided in subsection (d)(3), no such law or regulation shall relieve any
person of any requirement otherwise applicable under this section.
(3)The
Secretary, in consultation with States having such clean energy and energy
efficiency programs, shall, to the maximum extent practicable, facilitate
coordination between the Federal program and State programs.
(4)
(A)The Secretary, in consultation with States, shall
promulgate regulations to ensure that an electric utility that is subject to
the requirements of this section and is subject to a State renewable energy or
clean energy standard receives clean energy credits if—
(i)the electric
utility complies with the State standard by generating or purchasing clean
energy or renewable energy certificates or credits representing clean energy;
or
(ii)the State
imposes or allows other mechanisms for achieving the State standard, including
the payment of taxes, fees, surcharges, or other financial obligations.
(B)The amount of credits received by an electric utility
under this subsection shall equal—
(i)in the case of
subparagraph (A)(i), the quantity of clean energy resulting from the generation
or purchase by the electric utility of clean energy; and
(ii)in the case of
subparagraph (A)(ii), the pro rata share of the electric utility, based on the
contributions to the mechanism made by the electric utility or customers of the
electric utility, in the State, of the quantity of clean energy resulting from
those mechanisms.
(C)Prohibition on
double countingThe regulations promulgated under this paragraph
shall ensure that a kilowatt hour associated with a clean energy credit issued
pursuant to this subsection shall not be used for compliance with this section
more than once.
(i)Energy
efficiency credits
(1)In
this subsection:
(A)Customer
facility savingsThe term customer facility savings
means a reduction in the consumption of end-use electricity at a facility of an
end-use consumer of electricity served by an electric utility, as compared
to—
(i)consumption at
the facility during a base year, taking into account reductions attributable to
causes other than energy efficiency investments (such as economic downturns,
reductions in customer base, favorable weather conditions, or other such
causes); or
(ii)in the case of
new equipment (regardless of whether the new equipment replaces existing
equipment at the end of the useful life of the existing equipment), consumption
by similar equipment of average efficiency available for purchase at the time
that new equipment is acquired.
(B)The term electricity savings means—
(i)customer facility
savings of electricity consumption adjusted to reflect any associated increase
in fuel consumption at the facility;
(ii)reductions in
distribution system losses of electricity achieved by a retail electricity
distributor, as compared to losses attributable to new or replacement
distribution system equipment of average efficiency (as defined by the
Secretary by regulation); and
(iii)the output of
new combined heat and power systems, to the extent provided under paragraph
(5).
(C)Qualified
electricity savingsThe term qualified electricity
savings means electricity saving that meet the measurement and
verification requirements of paragraph (4).
(2)On
petition by the Governor of a State or, in the case of the power service area
of the Tennessee Valley Authority, the Board of Directors of the Tennessee
Valley Authority, the Secretary shall allow up to 25 percent of the
requirements of an electric utility under subsection (b)(1) associated with the
sales of electricity of the utility in the State to be met by submitting
Federal energy efficiency credits issued pursuant to this subsection.
(3)Issuance of
energy efficiency credits
(A)The Secretary shall issue energy efficiency credits for
qualified electricity savings achieved in States described in paragraph (2) in
accordance with this subsection.
(B)Qualified
electricity savingsSubject to subparagraph (C), in accordance
with regulations promulgated by the Secretary, the Secretary shall issue
credits for—
(i)qualified
electricity savings achieved by an electric utility on or after the date of
enactment of this section; and
(ii)qualified
electricity savings achieved by other entities (including State agencies) on or
after the date of enactment of this section if—
(I)the measures used
to achieve the qualified electricity savings were installed or placed in
operation by the entity seeking the credit; and
(II)an electric
utility eligible to receive efficiency credits did not pay a substantial
portion of the cost of achieving the qualified electricity savings (unless the
utility has waived any entitlement to the credit).
(C)No
credits shall be issued for electricity savings achieved as a result of
compliance with a national, State, or local building, equipment, or appliance
efficiency standard.
(4)Measurement and
verification of electricity savingsNot later than January 2012,
the Secretary shall promulgate regulations regarding the measurement and
verification of electricity savings under this subsection, including
regulations covering—
(A)procedures and
standards for defining and measuring electricity savings that will be eligible
to receive credits under paragraph (3), which shall—
(i)specify the types
of energy efficiency and energy conservation that will be eligible for the
credits;
(ii)require that
energy consumption for customer facilities or portions of facilities in the
applicable base and current years be adjusted, as appropriate, to account for
changes in weather, level of production, and building area;
(iii)account for the
useful life of electricity savings measures;
(iv)include
specified electricity savings values for specific, commonly-used efficiency
measures; and
(v)exclude
electricity savings that—
(I)are not properly
attributable to measures carried out by the entity seeking the credit;
(II)have already
been credited under this section to another entity; or
(III)do not result
from actions not intended to achieve electricity savings;
(B)procedures and
standards for third party verification of reported electricity savings;
and
(C)such requirements
for information, reports, and access to facilities as may be necessary to carry
out this subsection.
(5)
(A)Under regulations promulgated by the Secretary, the
increment of electricity output of a new combined heat and power system that is
attributable to the higher efficiency of the combined system (as compared to
the efficiency of separate production of the electric and thermal outputs),
shall be considered electricity savings under this subsection.
(B)In addition to subparagraph (A), the regulations shall
apply to the increment of electricity output of an existing combined heat and
power system that is attributable to permanent efficiency improvements or
capacity additions.
(6)Incremental
nuclear and incremental fossil fuel production
(A)Subject to subparagraph (B), under regulations
promulgated by the Secretary, the increment of electricity output attributable
to incremental nuclear production and incremental fossil fuel production shall
be considered electricity savings under this subsection.
(B)The
increment of electricity output described in subparagraph (A) shall meet not
more than 10 percent of the total obligation of an electric utility under
subsection (b).
(j)Biomass
harvesting and sustainabilityThe provisions of this section
relating to biomass shall be administered in accordance with section 203(e) of
the Energy Policy Act of 2005 (42 U.S.C. 15852(e)).
(k)Loans for
projects To comply with Federal clean energy standard
(1)The
purposes of this subsection are—
(A)to reduce the
cost incurred by electric utilities in complying with the requirements of this
section; and
(B)to minimize the
impact of the requirements on electricity rates for consumers.
(2)The
Secretary shall make loans available to electric utilities to carry out
qualified projects approved by the Secretary to comply with the requirements of
this section.
(3)
(A)A loan may be made under this subsection for a
project—
(i)to construct a
clean energy generation facility;
(ii)to install an
energy efficiency or electricity demand reduction technology; or
(iii)to carry out
any other project approved by the Secretary that the Secretary determines is
consistent with the purposes of this subsection.
(B)The
Secretary may disapprove an application for a loan for a project under this
subsection if the Secretary determines that—
(i)the revenues
generated under the project are unlikely to be sufficient to cover the
repayment obligations of the proposed loan; or
(ii)the project is
not otherwise consistent with the purposes of this subsection.
(4)A
loan made by the Secretary to an electric utility under this subsection
shall—
(A)be for a term of
not to exceed 30 years; and
(B)bear an annual
interest rate that is 50 basis points more than the Federal funds rate
established by the Board of Governors of the Federal Reserve System.
(5)Notwithstanding
any other provision of law, the debt to the Federal Government under a loan
made to an electric utility under this subsection shall have priority in any
case in which the electric utility files for bankruptcy protection under title
11, United States Code.
(6)Authorization
of appropriationsThere are authorized to be appropriated such
sums as are necessary to carry out this subsection.
(l)
(1)
(A)Not later than January 15, 2017, and every 5 years
thereafter, the Secretary shall review and make recommendations to Congress on
the program established under this section.
(B)The
review shall analyze whether—
(i)the program
established under this section has contributed to an economically harmful
increase in electricity rates in regions of the United States;
(ii)the program has
resulted in net economic benefits for the United States; and
(iii)new
technologies and clean energy sources will advance the purposes of this
section.
(2)The
Secretary shall submit to Congress recommendations on whether—
(A)the percentage of
energy efficiency credits eligible to be submitted under subsection (b)(1)
should be increased or decreased;
(B)the percentage of
clean energy electricity required under subsection (b)(1) should be increased
or decreased; and
(C)the definition of
clean energy
should be expanded to reflect advances in
technology or previously unavailable sources of clean or renewable
energy.
(3)Not
later than January 15, 2017, the Secretary shall submit to Congress a report
that describes any recommendations of the Secretary on changes to the program
established under this section.
(m)Not
later than 1 year after the date of enactment of this section, the Secretary
shall promulgate regulations implementing this section.
(n)This section and the authority provided by this section
terminate on December 31,
2050.
.
(b)Table of
contents amendmentThe table of contents of 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. 610. Federal clean energy
standard.
.