<enum>I</enum><header>Renewable fuel program</header> <section id="id805299F9DC0740089693CC27E29E3761"><enum>101.</enum><header>Definition of advanced biofuel</header><text display-inline="no-display-inline">Section 211(o)(1)(B) of the Clean Air Act (42 U.S.C. 7545(o)(1)(B)) is amended—</text> <paragraph id="idA1E16BB573BA4E3C95694506A9C490A9"><enum>(1)</enum><text>in clause (i), by striking <quote>, other than ethanol derived from corn starch,</quote>; and</text> </paragraph><paragraph id="id9D4A4342F3B743B0A2DFC491B8B1CBCF"><enum>(2)</enum><text>in clause (ii)(II), by striking <quote>(other than corn starch)</quote>.</text> </paragraph></section><section id="HFDADB48BB1304D60BBC6B574D7B2435B"><enum>102.</enum><header>Biomass-based diesel</header><text display-inline="no-display-inline">Section 211(o)(2)(A) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(2)(A)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H4EA919D5C3D546408BDCDCF5349ABAFB" style="OLC"> <clause id="H3D7983D9C3264B76ADD3216125EF0817"><enum>(v)</enum><header>Grandfathering biomass-based diesel</header><text display-inline="yes-display-inline">The Administrator shall promulgate regulations that exempt from the lifecycle greenhouse gas requirements of subparagraphs (B) and (D) of paragraph (1) up to the greater of 1,000,000,000 gallons or the volume mandate adopted pursuant to subparagraph (B)(ii), of biomass-based diesel annually from facilities that commenced construction before December 19, 2007.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HF6201CEA37464A6891EFFA1A90EDF5C4" section-type="subsequent-section"><enum>103.</enum><header>International indirect land use changes</header><text display-inline="no-display-inline">Section 211(o) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id45C28FC1E5784552B6FE473F7D434AF5" style="OLC"> <paragraph id="H97A0DDF18F584E6B993D49FDF1799F6A"><enum>(13)</enum><header>International indirect land use changes</header> <subparagraph id="H9DA576376AEB43B2A159D1A9F087694D"><enum>(A)</enum><header>Exclusion from regulatory requirements regarding lifecycle greenhouse gas emissions</header><text>Notwithstanding the definition of <quote>lifecycle greenhouse gas emissions</quote> in paragraph (1)(H), for purposes of determining whether a fuel meets a definition under paragraph (1) or complies with paragraph (2)(A)(i), the Administrator shall exclude emissions from indirect land use changes outside the country of origin of the feedstock of a renewable fuel.</text> </subparagraph><subparagraph id="H9E84A1F7B8B04AF08D4AC2715B4E3B26"><enum>(B)</enum><header>National Academies of Science report</header> <clause id="id7902EF5018E842DAB1980AABFF81F0AE"><enum>(i)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this paragraph, the Administrator and the Secretary of Agriculture shall jointly arrange for the National Academies of Science to review and report on specified issues relating to indirect greenhouse gas emissions relating to transportation fuels.</text> </clause><clause id="H81E58759DD1F4272971511526980BE7C"><enum>(ii)</enum><header>Models and methodologies</header><text>The report shall evaluate and report on whether there are economic and environmental models and methodologies that individually, or as a system, can project with reliability, predictability, and confidence—</text> <subclause id="H768F1F461F62474E8276B71BF36CFF11"><enum>(I)</enum><text>for purposes of determining whether a fuel meets a definition under paragraph (1) or complies with paragraph (2)(A)(i), indirect land use changes that are related to the production of renewable fuels and that may occur outside the country in which the feedstocks are grown, and the impacts of those changes on greenhouse gas emissions; and</text> </subclause><subclause id="H2881E909F57A4DE887A0D783B91E9B79"><enum>(II)</enum><text>indirect effects, both domestic and international, related to the production and importation of nonrenewable transportation fuels that have significant greenhouse gas emissions, and the impact of those effects on greenhouse gas emissions.</text> </subclause></clause><clause id="H3B15CD3577DB4508BCFD162CF28727FE"><enum>(iii)</enum><header>Administration</header> <subclause id="idF448760F1F6B4E848F08BBDE4CD283FE"><enum>(I)</enum><header>In general</header><text>The report shall—</text> <item id="idA029188B91C0456D872F2436B02F2CBC"><enum>(aa)</enum><text>include a review and assessment of all pertinent scientific studies, methodologies, and data;</text> </item><item id="idF5AA694BFF864E0D983B97F5C3456034"><enum>(bb)</enum><text>evaluate potential methodologies for calculating emissions (including an evaluation of methods for annualizing emissions associated with forest degradation or land conversion); and</text> </item><item id="id34698F162ADB4E03A211ACCC0F7A02A9"><enum>(cc)</enum><text>make appropriate recommendations.</text> </item></subclause><subclause id="idD6703B6F15624791A6E4D9A8AEEE6A1C"><enum>(II)</enum><header>Indirect effects</header><text>The recommendations shall address indirect effects, both domestic and international, relating to the production and importation of nonrenewable transportation fuels that have significant greenhouse gas emissions.</text> </subclause><subclause id="id946042AFB84C407C90D8727ACF3B4319"><enum>(III)</enum><header>Validation</header><text>The report shall use appropriate validation procedures, including sensitivity analyses, to measure how results change as assumptions change.</text> </subclause><subclause id="id81CD42ECF1474803954F8C512B2E15C7"><enum>(IV)</enum><header>Models</header><text>The evaluation shall include a model, methodology, or system of models that assesses how reliably the models, methodologies, or systems—</text> <item id="H18AFE811AAD64666A209A06265F090C8"><enum>(aa)</enum><text>track actual outcomes over historical periods using available historical data; and</text> </item><item id="HC58F631F3A26455985AE7B54AED4F765"><enum>(bb)</enum><text>will project future outcomes.</text> </item></subclause></clause><clause id="H427BF73840CE42BEAF214B5FA1863572"><enum>(iv)</enum><header>Availability</header><text display-inline="yes-display-inline">The report shall—</text> <subclause id="id71F6E78E902B43939EF57DF474807E7D"><enum>(I)</enum><text display-inline="yes-display-inline">be publicly available; and</text> </subclause><subclause id="id563B0793410246F483F86B5D701AB27E"><enum>(II)</enum><text display-inline="yes-display-inline">include sufficient information and data so that economists and other scientists with relevant expertise that are not on the National Academies of Science panel can fully evaluate the conclusions of the report.</text> </subclause></clause><clause id="H62F66B58E6004CCEAE5068994EE31958"><enum>(v)</enum><header>Deadline</header><text>The report shall be completed not later than 3 years after the date of enactment of this paragraph.</text> </clause></subparagraph><subparagraph id="H858A2076A41E4C3FA399017B5988767A"><enum>(C)</enum><header>Determination</header> <clause id="id1C8A30CDC8A041949E672AE51CEDA46A"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator and the Secretary of Agriculture shall, after notice and an opportunity for public comment, determine—</text> <subclause id="id91CF16D4DD974C2D82F5B36B3EB8F293"><enum>(I)</enum><text display-inline="yes-display-inline">whether, for purposes of determining compliance with the percent reductions in lifecycle greenhouse gas emissions specified in paragraph (1) for various renewable fuels, scientifically valid models and methodologies exist to project indirect land use changes that are related to the production of renewable fuels and that occur outside the country in which the feedstocks are grown outside the country of origin of the feedstocks; and</text> </subclause><subclause id="idABCF6F780A02427EA9E8A4E64B609687"><enum>(II)</enum><text display-inline="yes-display-inline">the impact of those changes on greenhouse gas emissions.</text> </subclause></clause><clause id="H7F5A68FED1E949B0B9A57C59A9EB47BA"><enum>(ii)</enum><header>Basis</header> <subclause id="id93D89193CC1B41D0941B7B78CE55697D"><enum>(I)</enum><header>Report</header><text>The determination shall take into account the findings and recommendations of the report required under subparagraph (B), as well as other available scientific, economic, and other relevant information.</text> </subclause><subclause id="id44B8390645F54A9199FBD2E2305A625C"><enum>(II)</enum><header>Other Federal agencies</header><text>The Administrator and the Secretary of Agriculture may also consider methods used by the Environmental Protection Agency, the Department of Agriculture, and other Federal agencies to assess or guide related policies.</text> </subclause></clause><clause id="HE9622155938049B98ECD4ABCC768B16C"><enum>(iii)</enum><header>Publication of determinations</header> <subclause id="id5CE54ADE6643474DB8AE407962F58AD0"><enum>(I)</enum><header>In general</header><text>The Administrator and the Secretary of Agriculture shall publish—</text> <item id="id82F1C1DB5654411D864D0476CA0029C2"><enum>(aa)</enum><text>a proposed determination not later than 4 years after the date of enactment of this paragraph; and</text> </item><item id="id33CF19C42513479EB3FCAB192A1E8149"><enum>(bb)</enum><text>a final determination not later than 5 years after the date of enactment of this paragraph.</text> </item></subclause><subclause id="id2999E93E7CAD43F8A51C7FE94EA81C91"><enum>(II)</enum><header>Explanation</header><text>An explanation and justification of the determination shall be included in the proposed and final actions, together with a response to comments received.</text> </subclause></clause></subparagraph><subparagraph id="HCBCD679B4A314580BBAC2AD31EF545D6"><enum>(D)</enum><header>Response to determination</header> <clause id="id1C7ADBC6FC7549018808A1C9AC5B9BB3"><enum>(i)</enum><header>Positive determination</header> <subclause id="id97365AB093F74C63889A96C55E1E6FBD"><enum>(I)</enum><header>In general</header><text>In the case of a positive determination under subparagraph (C), the Administrator and the Secretary of Agriculture shall, after notice and an opportunity for public comment, by the same date jointly establish 1 or more methodologies to calculate greenhouse gas emissions from indirect land use changes that are attributable to the production of renewable fuels and that occur outside the country in which feedstocks are grown outside the country of origin of the feedstock for purposes of calculating the lifecycle greenhouse gas emissions of a renewable fuel to determine whether the renewable fuel meets a definition under paragraph (1) or complies with paragraph (2)(A)(i).</text> </subclause><subclause id="id1D546D96D6D143A281D809FB997B7611"><enum>(II)</enum><header>Administration</header><text>In the calendar year following a positive determination under subparagraph (C)—</text> <item id="id9A12B0AE5056484FBC2C300F3170EDC3"><enum>(aa)</enum><text>the exclusion under subparagraph (A) shall terminate; and</text> </item><item id="id6757120BB85041ABB926C69E76297C2B"><enum>(bb)</enum><text>the Administrator shall promulgate a regulation by the same date that shall include emissions from indirect land use changes outside the country of origin of a feedstock of a renewable fuel for purposes of calculating the lifecycle greenhouse gas emissions of the renewable fuel to determine whether the renewable fuel meets a definition under paragraph (1) or complies with paragraph (2)(A)(i) for renewable fuels sold in the calendar year.</text> </item></subclause><subclause id="idB8C6D12C4D1C4634AEC05D46B479F64F"><enum>(III)</enum><header>Effective date</header><text>The effective date of the regulation shall be 6 years after the date of enactment of this paragraph.</text> </subclause></clause><clause id="H17FCFE3E542B48BCAAB7C82AD7920287"><enum>(ii)</enum><header>Negative determination</header><text>A negative determination under subparagraph (C) shall include a statement of the basis for the determination.</text> </clause></subparagraph><subparagraph id="HBFAA9FD4641141C2A122B48566EA7CDE"><enum>(E)</enum><header>Accountability</header><text>The joint duties and actions of the Administrator and the Secretary of Agriculture under this paragraph shall be subject to sections 304 and 307 as if the duties and actions were the duties and actions of the Administrator alone.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HC0D50854BB4B4D5E9233D4C0EA4A5507"><enum>104.</enum><header>Modification of definition of renewable biomass</header> <subsection id="H7B7C00C7D6844094B29923EA612962C2"><enum>(a)</enum><header>National Academy of Sciences report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, the Secretary of Agriculture, and the Federal Energy Regulatory Commission shall jointly enter into an arrangement with the National Academy of Sciences to evaluate how sources of renewable biomass contribute to the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </subsection><subsection id="H2F18EF279B60405E817039329D0CA009"><enum>(b)</enum><header>Modification</header> <paragraph id="HBD373D43972D46C08C45A00A1FA0A419"><enum>(1)</enum><header>EPA modification authority</header><text display-inline="yes-display-inline">After reviewing the report required by subsection (a), the Administrator of the Environmental Protection Agency, with the concurrence of the Secretary of Agriculture, may, by regulation and after public notice and comment, modify the non-Federal land portion of the definition of <quote>renewable biomass</quote> in section 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)(1)(I)) and in section 610 of the Public Utility Regulatory Policies Act of 1978 in order to advance the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </paragraph><paragraph id="H6CDEEE3EE77A4094A5008394B4C489D3"><enum>(2)</enum><header>FERC modification authority</header><text display-inline="yes-display-inline">After reviewing the report required by subsection (a), the Federal Energy Regulatory Commission, with the concurrence of the Secretary of Agriculture, may, by regulation and after public notice and comment, modify the non-Federal lands portion of the definition of <quote>renewable biomass</quote> in section 610(a) of the Public Utility Regulatory Policies Act of 1978 in order to advance the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </paragraph></subsection><subsection id="HC485EF6ABF8349EB845781C707666220"><enum>(c)</enum><header>Federal land</header> <paragraph id="HBE387CEC712D4FCA8B17485E0799A2A5"><enum>(1)</enum><header>Scientific review</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Secretary of the Interior, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency shall conduct a joint scientific review to evaluate how sources of biomass from Federal land could contribute to the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0AC2E9C7D3A9414EA8DC2577AD2B3B13"><enum>(2)</enum><header>Modification authority</header><text>Based on the scientific review, the agencies may, by rule, modify the definition of <quote>renewable biomass</quote> from Federal land in sections 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)(1)(I)) and section 610 of the Public Utility Regulatory Policies Act of 1978, as appropriate, to advance the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </paragraph></subsection></section>

Short title; table of contents

(a)

In general

This Act may be cited as the

Securing America’s Future with Energy and Sustainable Technologies Act

. (b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

TITLE I—Renewable fuel program

Sec. 101. Definition of advanced biofuel.

Sec. 102. Biomass-based diesel.

Sec. 103. International indirect land use changes.

Sec. 104. Modification of definition of renewable biomass.

TITLE II—Production and use of renewable fuel

Sec. 201. Findings.

Sec. 202. Loan guarantees for projects to construct renewable fuel pipelines.

Sec. 203. Open fuel standard for transportation.

Sec. 204. Reducing barriers to supply chain manufacturing of renewable energy equipment.

Sec. 205. Tax incentives for qualified blender pumps.

TITLE III—Renewable electricity and energy efficiency resource standards

Sec. 301. Renewable electricity and energy efficiency resource standards.

Sec. 302. Energy efficiency resource standard for retail electricity and natural gas distributors.

Sec. 303. Voluntary renewable energy markets.

TITLE IV—Wind energy

Sec. 401. Wind energy systems.

Sec. 402. Wind energy development study.

Sec. 403. Removal of certain tax restrictions to promote expansion of capital for wind farm investment.

TITLE V—Renewable energy tax extensions

Sec. 501. Extension of provisions related to alcohol used as fuel.

Sec. 502. Extension of time for grants for specified energy property.

Sec. 503. Incentives for biodiesel and renewable diesel.

TITLE VI—Renewable electricity integration credit

Sec. 601. Renewable electricity integration credit.

Definition of Secretary

In this Act, the term Secretary means the Secretary of Energy.

<enum>I</enum><header>Renewable fuel program</header> <section id="id805299F9DC0740089693CC27E29E3761"><enum>101.</enum><header>Definition of advanced biofuel</header><text display-inline="no-display-inline">Section 211(o)(1)(B) of the Clean Air Act (42 U.S.C. 7545(o)(1)(B)) is amended—</text> <paragraph id="idA1E16BB573BA4E3C95694506A9C490A9"><enum>(1)</enum><text>in clause (i), by striking <quote>, other than ethanol derived from corn starch,</quote>; and</text> </paragraph><paragraph id="id9D4A4342F3B743B0A2DFC491B8B1CBCF"><enum>(2)</enum><text>in clause (ii)(II), by striking <quote>(other than corn starch)</quote>.</text> </paragraph></section><section id="HFDADB48BB1304D60BBC6B574D7B2435B"><enum>102.</enum><header>Biomass-based diesel</header><text display-inline="no-display-inline">Section 211(o)(2)(A) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(2)(A)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H4EA919D5C3D546408BDCDCF5349ABAFB" style="OLC"> <clause id="H3D7983D9C3264B76ADD3216125EF0817"><enum>(v)</enum><header>Grandfathering biomass-based diesel</header><text display-inline="yes-display-inline">The Administrator shall promulgate regulations that exempt from the lifecycle greenhouse gas requirements of subparagraphs (B) and (D) of paragraph (1) up to the greater of 1,000,000,000 gallons or the volume mandate adopted pursuant to subparagraph (B)(ii), of biomass-based diesel annually from facilities that commenced construction before December 19, 2007.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HF6201CEA37464A6891EFFA1A90EDF5C4" section-type="subsequent-section"><enum>103.</enum><header>International indirect land use changes</header><text display-inline="no-display-inline">Section 211(o) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id45C28FC1E5784552B6FE473F7D434AF5" style="OLC"> <paragraph id="H97A0DDF18F584E6B993D49FDF1799F6A"><enum>(13)</enum><header>International indirect land use changes</header> <subparagraph id="H9DA576376AEB43B2A159D1A9F087694D"><enum>(A)</enum><header>Exclusion from regulatory requirements regarding lifecycle greenhouse gas emissions</header><text>Notwithstanding the definition of <quote>lifecycle greenhouse gas emissions</quote> in paragraph (1)(H), for purposes of determining whether a fuel meets a definition under paragraph (1) or complies with paragraph (2)(A)(i), the Administrator shall exclude emissions from indirect land use changes outside the country of origin of the feedstock of a renewable fuel.</text> </subparagraph><subparagraph id="H9E84A1F7B8B04AF08D4AC2715B4E3B26"><enum>(B)</enum><header>National Academies of Science report</header> <clause id="id7902EF5018E842DAB1980AABFF81F0AE"><enum>(i)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this paragraph, the Administrator and the Secretary of Agriculture shall jointly arrange for the National Academies of Science to review and report on specified issues relating to indirect greenhouse gas emissions relating to transportation fuels.</text> </clause><clause id="H81E58759DD1F4272971511526980BE7C"><enum>(ii)</enum><header>Models and methodologies</header><text>The report shall evaluate and report on whether there are economic and environmental models and methodologies that individually, or as a system, can project with reliability, predictability, and confidence—</text> <subclause id="H768F1F461F62474E8276B71BF36CFF11"><enum>(I)</enum><text>for purposes of determining whether a fuel meets a definition under paragraph (1) or complies with paragraph (2)(A)(i), indirect land use changes that are related to the production of renewable fuels and that may occur outside the country in which the feedstocks are grown, and the impacts of those changes on greenhouse gas emissions; and</text> </subclause><subclause id="H2881E909F57A4DE887A0D783B91E9B79"><enum>(II)</enum><text>indirect effects, both domestic and international, related to the production and importation of nonrenewable transportation fuels that have significant greenhouse gas emissions, and the impact of those effects on greenhouse gas emissions.</text> </subclause></clause><clause id="H3B15CD3577DB4508BCFD162CF28727FE"><enum>(iii)</enum><header>Administration</header> <subclause id="idF448760F1F6B4E848F08BBDE4CD283FE"><enum>(I)</enum><header>In general</header><text>The report shall—</text> <item id="idA029188B91C0456D872F2436B02F2CBC"><enum>(aa)</enum><text>include a review and assessment of all pertinent scientific studies, methodologies, and data;</text> </item><item id="idF5AA694BFF864E0D983B97F5C3456034"><enum>(bb)</enum><text>evaluate potential methodologies for calculating emissions (including an evaluation of methods for annualizing emissions associated with forest degradation or land conversion); and</text> </item><item id="id34698F162ADB4E03A211ACCC0F7A02A9"><enum>(cc)</enum><text>make appropriate recommendations.</text> </item></subclause><subclause id="idD6703B6F15624791A6E4D9A8AEEE6A1C"><enum>(II)</enum><header>Indirect effects</header><text>The recommendations shall address indirect effects, both domestic and international, relating to the production and importation of nonrenewable transportation fuels that have significant greenhouse gas emissions.</text> </subclause><subclause id="id946042AFB84C407C90D8727ACF3B4319"><enum>(III)</enum><header>Validation</header><text>The report shall use appropriate validation procedures, including sensitivity analyses, to measure how results change as assumptions change.</text> </subclause><subclause id="id81CD42ECF1474803954F8C512B2E15C7"><enum>(IV)</enum><header>Models</header><text>The evaluation shall include a model, methodology, or system of models that assesses how reliably the models, methodologies, or systems—</text> <item id="H18AFE811AAD64666A209A06265F090C8"><enum>(aa)</enum><text>track actual outcomes over historical periods using available historical data; and</text> </item><item id="HC58F631F3A26455985AE7B54AED4F765"><enum>(bb)</enum><text>will project future outcomes.</text> </item></subclause></clause><clause id="H427BF73840CE42BEAF214B5FA1863572"><enum>(iv)</enum><header>Availability</header><text display-inline="yes-display-inline">The report shall—</text> <subclause id="id71F6E78E902B43939EF57DF474807E7D"><enum>(I)</enum><text display-inline="yes-display-inline">be publicly available; and</text> </subclause><subclause id="id563B0793410246F483F86B5D701AB27E"><enum>(II)</enum><text display-inline="yes-display-inline">include sufficient information and data so that economists and other scientists with relevant expertise that are not on the National Academies of Science panel can fully evaluate the conclusions of the report.</text> </subclause></clause><clause id="H62F66B58E6004CCEAE5068994EE31958"><enum>(v)</enum><header>Deadline</header><text>The report shall be completed not later than 3 years after the date of enactment of this paragraph.</text> </clause></subparagraph><subparagraph id="H858A2076A41E4C3FA399017B5988767A"><enum>(C)</enum><header>Determination</header> <clause id="id1C8A30CDC8A041949E672AE51CEDA46A"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator and the Secretary of Agriculture shall, after notice and an opportunity for public comment, determine—</text> <subclause id="id91CF16D4DD974C2D82F5B36B3EB8F293"><enum>(I)</enum><text display-inline="yes-display-inline">whether, for purposes of determining compliance with the percent reductions in lifecycle greenhouse gas emissions specified in paragraph (1) for various renewable fuels, scientifically valid models and methodologies exist to project indirect land use changes that are related to the production of renewable fuels and that occur outside the country in which the feedstocks are grown outside the country of origin of the feedstocks; and</text> </subclause><subclause id="idABCF6F780A02427EA9E8A4E64B609687"><enum>(II)</enum><text display-inline="yes-display-inline">the impact of those changes on greenhouse gas emissions.</text> </subclause></clause><clause id="H7F5A68FED1E949B0B9A57C59A9EB47BA"><enum>(ii)</enum><header>Basis</header> <subclause id="id93D89193CC1B41D0941B7B78CE55697D"><enum>(I)</enum><header>Report</header><text>The determination shall take into account the findings and recommendations of the report required under subparagraph (B), as well as other available scientific, economic, and other relevant information.</text> </subclause><subclause id="id44B8390645F54A9199FBD2E2305A625C"><enum>(II)</enum><header>Other Federal agencies</header><text>The Administrator and the Secretary of Agriculture may also consider methods used by the Environmental Protection Agency, the Department of Agriculture, and other Federal agencies to assess or guide related policies.</text> </subclause></clause><clause id="HE9622155938049B98ECD4ABCC768B16C"><enum>(iii)</enum><header>Publication of determinations</header> <subclause id="id5CE54ADE6643474DB8AE407962F58AD0"><enum>(I)</enum><header>In general</header><text>The Administrator and the Secretary of Agriculture shall publish—</text> <item id="id82F1C1DB5654411D864D0476CA0029C2"><enum>(aa)</enum><text>a proposed determination not later than 4 years after the date of enactment of this paragraph; and</text> </item><item id="id33CF19C42513479EB3FCAB192A1E8149"><enum>(bb)</enum><text>a final determination not later than 5 years after the date of enactment of this paragraph.</text> </item></subclause><subclause id="id2999E93E7CAD43F8A51C7FE94EA81C91"><enum>(II)</enum><header>Explanation</header><text>An explanation and justification of the determination shall be included in the proposed and final actions, together with a response to comments received.</text> </subclause></clause></subparagraph><subparagraph id="HCBCD679B4A314580BBAC2AD31EF545D6"><enum>(D)</enum><header>Response to determination</header> <clause id="id1C7ADBC6FC7549018808A1C9AC5B9BB3"><enum>(i)</enum><header>Positive determination</header> <subclause id="id97365AB093F74C63889A96C55E1E6FBD"><enum>(I)</enum><header>In general</header><text>In the case of a positive determination under subparagraph (C), the Administrator and the Secretary of Agriculture shall, after notice and an opportunity for public comment, by the same date jointly establish 1 or more methodologies to calculate greenhouse gas emissions from indirect land use changes that are attributable to the production of renewable fuels and that occur outside the country in which feedstocks are grown outside the country of origin of the feedstock for purposes of calculating the lifecycle greenhouse gas emissions of a renewable fuel to determine whether the renewable fuel meets a definition under paragraph (1) or complies with paragraph (2)(A)(i).</text> </subclause><subclause id="id1D546D96D6D143A281D809FB997B7611"><enum>(II)</enum><header>Administration</header><text>In the calendar year following a positive determination under subparagraph (C)—</text> <item id="id9A12B0AE5056484FBC2C300F3170EDC3"><enum>(aa)</enum><text>the exclusion under subparagraph (A) shall terminate; and</text> </item><item id="id6757120BB85041ABB926C69E76297C2B"><enum>(bb)</enum><text>the Administrator shall promulgate a regulation by the same date that shall include emissions from indirect land use changes outside the country of origin of a feedstock of a renewable fuel for purposes of calculating the lifecycle greenhouse gas emissions of the renewable fuel to determine whether the renewable fuel meets a definition under paragraph (1) or complies with paragraph (2)(A)(i) for renewable fuels sold in the calendar year.</text> </item></subclause><subclause id="idB8C6D12C4D1C4634AEC05D46B479F64F"><enum>(III)</enum><header>Effective date</header><text>The effective date of the regulation shall be 6 years after the date of enactment of this paragraph.</text> </subclause></clause><clause id="H17FCFE3E542B48BCAAB7C82AD7920287"><enum>(ii)</enum><header>Negative determination</header><text>A negative determination under subparagraph (C) shall include a statement of the basis for the determination.</text> </clause></subparagraph><subparagraph id="HBFAA9FD4641141C2A122B48566EA7CDE"><enum>(E)</enum><header>Accountability</header><text>The joint duties and actions of the Administrator and the Secretary of Agriculture under this paragraph shall be subject to sections 304 and 307 as if the duties and actions were the duties and actions of the Administrator alone.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HC0D50854BB4B4D5E9233D4C0EA4A5507"><enum>104.</enum><header>Modification of definition of renewable biomass</header> <subsection id="H7B7C00C7D6844094B29923EA612962C2"><enum>(a)</enum><header>National Academy of Sciences report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, the Secretary of Agriculture, and the Federal Energy Regulatory Commission shall jointly enter into an arrangement with the National Academy of Sciences to evaluate how sources of renewable biomass contribute to the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </subsection><subsection id="H2F18EF279B60405E817039329D0CA009"><enum>(b)</enum><header>Modification</header> <paragraph id="HBD373D43972D46C08C45A00A1FA0A419"><enum>(1)</enum><header>EPA modification authority</header><text display-inline="yes-display-inline">After reviewing the report required by subsection (a), the Administrator of the Environmental Protection Agency, with the concurrence of the Secretary of Agriculture, may, by regulation and after public notice and comment, modify the non-Federal land portion of the definition of <quote>renewable biomass</quote> in section 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)(1)(I)) and in section 610 of the Public Utility Regulatory Policies Act of 1978 in order to advance the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </paragraph><paragraph id="H6CDEEE3EE77A4094A5008394B4C489D3"><enum>(2)</enum><header>FERC modification authority</header><text display-inline="yes-display-inline">After reviewing the report required by subsection (a), the Federal Energy Regulatory Commission, with the concurrence of the Secretary of Agriculture, may, by regulation and after public notice and comment, modify the non-Federal lands portion of the definition of <quote>renewable biomass</quote> in section 610(a) of the Public Utility Regulatory Policies Act of 1978 in order to advance the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </paragraph></subsection><subsection id="HC485EF6ABF8349EB845781C707666220"><enum>(c)</enum><header>Federal land</header> <paragraph id="HBE387CEC712D4FCA8B17485E0799A2A5"><enum>(1)</enum><header>Scientific review</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Secretary of the Interior, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency shall conduct a joint scientific review to evaluate how sources of biomass from Federal land could contribute to the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0AC2E9C7D3A9414EA8DC2577AD2B3B13"><enum>(2)</enum><header>Modification authority</header><text>Based on the scientific review, the agencies may, by rule, modify the definition of <quote>renewable biomass</quote> from Federal land in sections 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)(1)(I)) and section 610 of the Public Utility Regulatory Policies Act of 1978, as appropriate, to advance the goals of increasing the energy independence of the United States, protecting the environment, and reducing global warming pollution.</text> </paragraph></subsection></section><enum>II</enum><header>Production and use of renewable fuel</header> <section id="id1C4532819C2544D4A1CB05081CAF39F5" section-type="subsequent-section"><enum>201.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text> <paragraph id="H73EFD995A8E64A47AC4907C8EFBBEA2E"><enum>(1)</enum><text>creating the appropriate infrastructure to move renewable fuels is a necessary energy and transportation objective for the United States;</text> </paragraph><paragraph id="H1A4575BC8831437B963BBA026CEDEE64"><enum>(2)</enum><text>more than 70 percent of the gasoline supply of the United States is delivered to local terminals through pipelines;</text> </paragraph><paragraph id="H7275F80AE22B4C848934ED5602768C00"><enum>(3)</enum><text>pipelines are the most cost-effective, efficient, and safe transportation mode in use today to deliver large volumes of liquid fuels;</text> </paragraph><paragraph id="HB3456F20FA5448C19B02E843EA85FE43"><enum>(4)</enum><text>renewable fuels are transported by truck, barge, and rail, and the volume requirements of the Energy Independence and Security Act of 2007 (42 U.S.C. 17001 et seq.) and amendments made by that Act may overwhelm the renewable fuels infrastructure, a problem that would be alleviated by the transportation of renewable fuels through pipelines; and</text> </paragraph><paragraph id="H0F270F5931C74767BD28051D00CE9258"><enum>(5)</enum><text>the production and use of renewable fuels is supported by Federal policy and a corresponding Federal policy is necessary to support the construction of an appropriate infrastructure to transport renewable fuels.</text> </paragraph></section><section id="ID3628c28a552f49c2bb420d339e126aaa"><enum>202.</enum><header>Loan guarantees for projects to construct renewable fuel pipelines</header> <subsection id="ID0889ded9e4e14bb8aaba8882b3b026a8"><enum>(a)</enum><header>Definitions</header><text>Section 1701 of the Energy Policy Act of 2005 (42 U.S.C. 16511) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id05D4856BF96A41859504D91D645DF443" style="OLC"> <paragraph id="ID25a240ef81a14666812aa216e04c85f4"><enum>(6)</enum><header>Renewable fuel</header><text>The term <term>renewable fuel</term> has the meaning given the term in section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)), except that the term shall include all ethanol and biodiesel.</text> </paragraph><paragraph id="ID74cc3ce40f984fafb16e505f9c8abff8"><enum>(7)</enum><header>Renewable fuel pipeline</header><text>The term <term>renewable fuel pipeline</term> means a pipeline for transporting renewable fuel.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDb0081efb08624c30bc7149da05217e30"><enum>(b)</enum><header>Amount</header><text>Section 1702(c) of the Energy Policy Act of 2005 (42 U.S.C. 16512(c)) is amended—</text> <paragraph id="id68BA40C84531463893524FB484FD57E2"><enum>(1)</enum><text>by striking <quote>Unless otherwise</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id5F96003DEE0245BDAF79912C34FD1F2F" style="OLC"> <paragraph id="id27DF17DA41374E8796D25020FCD55C21"><enum>(1)</enum><header>In general</header><text>Unless otherwise</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id23606531BAD645088BFECB8D78EAD071"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idA9A6A23B238B440E98971057768B77CF" style="OLC"> <paragraph id="id853C5283D4CF441A98B054D8F19B6E4C"><enum>(2)</enum><header>Renewable fuel pipelines</header><text>A guarantee for a project described in section 1703(b)(11) shall be in an amount equal to 80 percent of the project cost of the facility that is the subject of the guarantee, as estimated at the time at which the guarantee is issued.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="ID1c79158ad5de43e286b80eebef55c27b"><enum>(c)</enum><header>Renewable fuel pipeline eligibility</header><text>Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idFB6F55DF32BD48EFBEC26A969A070E89" style="OLC"> <paragraph id="idF514DF60F5374D4EB3E820D1B59D222F"><enum>(11)</enum><text>Renewable fuel pipelines.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDab3e53b3bf7c42bebd1ef16fc90774e9"><enum>(d)</enum><header>Rapid deployment of renewable fuel pipelines</header><text>Section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C. 16516(a)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3B8EA92844734143BF71BC70B0FA9151" style="OLC"> <paragraph id="idCB0953C38E6540FAB454D50D9CA4A6BC"><enum>(4)</enum><text>Installation of sufficient infrastructure to allow for the cost-effective deployment of clean energy technologies appropriate to each region of the United States, including the deployment of renewable fuel pipelines at a guarantee amount of 80 percent.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section commented="no" display-inline="no-display-inline" id="idEC042E07BC6347569BAF35917F80EF1F" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Open fuel standard for transportation</header> <subsection commented="no" display-inline="no-display-inline" id="id1174D4786611411C8893AE996C5558F0"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 329 of title 49, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idD35DBC16A0E74D0F8D0E7898E929B46E" style="OLC"> <section id="id279FA9832EE9445F93B1ED518CE28B0C"><enum>32920.</enum><header>Open fuel standard for transportation</header> <subsection id="id93194F4656064405806661B25C053564"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="IDeb7bcdeb3af34fc0a9b4f8c5d3bec988"><enum>(1)</enum><header>E<enum-in-header>85</enum-in-header></header><text>The term <term>E85</term> means a fuel mixture containing 85 percent ethanol and 15 percent gasoline by volume.</text> </paragraph><paragraph id="ID319b16c3813746f29e89fa9d5756a423"><enum>(2)</enum><header>Flexible fuel automobile</header><text>The term <term>flexible fuel automobile</term> means an automobile that has been warranted by its manufacturer to operate on gasoline, E85, and M85.</text> </paragraph><paragraph id="ID75c4eb30f9c14e4f9613ed916114927e"><enum>(3)</enum><header>Fuel choice-enabling automobile</header><text>The term <term>fuel choice-enabling automobile</term> means—</text> <subparagraph id="ID0b8a9876279d481fbd2e64fa5a54460e"><enum>(A)</enum><text>a flexible fuel automobile;</text> </subparagraph><subparagraph id="IDcf0c1d90d0f84b67bde81630130b8127"><enum>(B)</enum><text>an automobile that has been warranted by its manufacturer to operate on biodiesel;</text> </subparagraph><subparagraph id="ID73fb0a4095194338a950a200012c0207"><enum>(C)</enum><text>an automobile that uses hydrogen fuel cell technology;</text> </subparagraph><subparagraph id="IDa447922d4da84c6e9ba7f5cc15b1c8e8"><enum>(D)</enum><text>a hybrid automobile, or an automobile with any other technology, that uses at least—</text> <clause id="id772D32C4C760433BA8A408E43F1E25B2"><enum>(i)</enum><text>during the 10-year period beginning on the date of enactment of this section, 50 percent less fossil fuel per mile than the average of vehicles in the class of the hybrid automobile or an automobile with any other technology (under the applicable corporate average fuel standard under section 32902 of title 49, United States Code); and</text> </clause><clause id="idB2EAF3A9ED594764A2574A3262E60514"><enum>(ii)</enum><text>effective beginning 10 years after the date of enactment of this section, 75 percent less fossil fuel per mile than the average of vehicles in the class of the hybrid automobile or an automobile with any other technology (under the applicable corporate average fuel standard under section 32902 of title 49, United States Code); or</text> </clause></subparagraph><subparagraph id="IDac6a60ac06074119a4e309669cdbdc2d"><enum>(E)</enum><text>an automobile that only uses an electric motor to move the vehicle.</text> </subparagraph></paragraph><paragraph id="ID61b68d9c94cf4d3ab29ded69dd0d5d8e"><enum>(4)</enum><header>Hybrid automobile</header><text>The term <term>hybrid automobile</term> means a light-duty automobile that uses 2 or more distinct power sources to move the vehicle.</text> </paragraph><paragraph id="ID7b69728a56d54774a30a603dc7837836"><enum>(5)</enum><header>Light-duty automobile</header><text>The term <term>light-duty automobile</term> means a light-duty automobile (as defined in regulations promulgated by the Secretary of Transportation to establish corporate average fuel standards under section 32902 of title 49, United States Code).</text> </paragraph><paragraph id="ID6b7c119d470c4fe2b7327e70977d430e"><enum>(6)</enum><header>Light-duty automobile manufacturer’s annual covered inventory</header><text>The term <term>light-duty automobile manufacturer’s annual covered inventory</term> means the number of light-duty automobiles powered solely by an internal combustion engine that a manufacturer, during a given calendar year, manufactures in the United States or imports from outside of the United States for sale in the United States.</text> </paragraph><paragraph id="ID04a40a9d786e44979def2b8422ef8581"><enum>(7)</enum><header>M<enum-in-header>85</enum-in-header></header><text>The term <term>M85</term> means a fuel mixture containing 85 percent methanol and 15 percent gasoline by volume.</text> </paragraph></subsection><subsection id="ID5f4edeec51f74ff5b630d8bb7e7e2768"><enum>(b)</enum><header>Open fuel standard for transportation</header> <paragraph id="IDb5ba0753440d48ceaf88e4372207c507"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), each light-duty automobile manufacturer’s annual covered inventory shall be comprised of—</text> <subparagraph id="ID79100c48819d488dbaf655b258d787b7"><enum>(A)</enum><text>not less than 30 percent fuel choice-enabling automobiles by model year 2013;</text> </subparagraph><subparagraph id="ID9484e475762e43ae868558e4a9095382"><enum>(B)</enum><text>not less than 50 percent fuel choice-enabling automobiles by model year 2015;</text> </subparagraph><subparagraph id="IDb86646285fbd465fb4be7e4ac01efbba"><enum>(C)</enum><text>not less than 80 percent fuel choice-enabling automobiles by model year 2017; and</text> </subparagraph><subparagraph id="IDdf0045c82676422d882736f22eb1caa3"><enum>(D)</enum><text>not less than 100 percent of fuel choice-enabling automobiles by model year 2021 and each model year thereafter.</text> </subparagraph></paragraph><paragraph id="ID73138ff14a2a4b2c8602a2c99755c725"><enum>(2)</enum><header>Temporary exemption from requirements</header> <subparagraph id="id2AA5BE0F2692490E887BC1B24239CFC8"><enum>(A)</enum><header>Application</header><text>A manufacturer may request an exemption from the requirement described in paragraph (1) by submitting an application to the Secretary, at such time, in such manner, and containing such information as the Secretary may require by regulation. Each such application shall specify the models, lines, and types of automobiles affected.</text> </subparagraph><subparagraph id="id654A5C87C892432F87D134F14B5C77B2"><enum>(B)</enum><header>Evaluation</header><text>After evaluating an application received from a manufacturer, the Secretary may at any time, under such terms and conditions, and to such extent as the Secretary considers appropriate, temporarily exempt, or renew the exemption of, a light-duty automobile from the requirement described in paragraph (1) if the Secretary determines that unavoidable events that are not under the control of the manufacturer prevent the manufacturer of such automobile from meeting its required production volume of fuel choice-enabling automobiles, including—</text> <clause id="id0CE21F9E54054862BF4A0B2A51D43CB4"><enum>(i)</enum><text>a disruption in the supply of any component required for compliance with the regulations;</text> </clause><clause id="idD082C3FF4212467AA54C0ADE524C7F27"><enum>(ii)</enum><text>a disruption in the use and installation by the manufacturer of such component; or</text> </clause><clause id="id759166584D354EC8BFD392A84409C093"><enum>(iii)</enum><text>the failure for plug-in hybrid electric automobiles to meet State air quality requirements as a result of the requirement described in paragraph (1).</text> </clause></subparagraph><subparagraph id="id41504EDD401B418EA21B1723B4FDF693"><enum>(C)</enum><header>Consolidation</header><text>The Secretary may consolidate applications received from multiple manufactures under subparagraph (A) if they are of a similar nature.</text> </subparagraph><subparagraph id="idAFA8EE2996FC49E480C9287B57EF4165"><enum>(D)</enum><header>Notice</header><text>The Secretary shall publish in the Federal Register—</text> <clause id="idAB6F449D59A448FEACC31CAD721F24B3"><enum>(i)</enum><text>notice of each application received from a manufacturer;</text> </clause><clause id="idF896240D32884F78AE27894DDCE0711C"><enum>(ii)</enum><text>notice of each decision to grant or deny a temporary exemption; and</text> </clause><clause id="idD1BC0B95A43A474AAEF26515FB03066F"><enum>(iii)</enum><text>the reasons for granting or denying such exemptions.</text> </clause></subparagraph></paragraph></subsection><subsection id="ID74cde97fc4e941baae15bdfae1864f43"><enum>(c)</enum><header>Limited liability protection for renewable fuel and ethanol manufacture, use, or distribution</header> <paragraph id="ID061a18613bb34f2ab9e0d900148a44b5"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of Federal or State law, any fuel containing ethanol or a renewable fuel (as defined in section 211(o)(1) of the Clean Air Act) that is used or intended to be used to operate an internal combustion engine shall not be deemed to be a defective product or subject to a failure to warn due to such ethanol or renewable fuel content unless such fuel violates a control or prohibition imposed by the Administrator under section 211 of the Clean Air Act (42 U.S.C. 7545).</text> </paragraph><paragraph id="id8E169DE56AE347E49B67B00B04AD41E4"><enum>(2)</enum><header>Savings provision</header><text>Nothing in this subsection may be construed to affect the liability of any person other than liability based upon a claim of defective product and failure to warn described in paragraph (1).</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID01c5d3eb6f744200a8a37d38fc495dfd"><enum>(d)</enum><header>Rulemaking</header><text>Not later than 1 year after the date of the enactment of this section, the Secretary of Transportation shall promulgate regulations to carry out this section in consultation with the Administrator and taking into consideration existing regulations.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id787C230963524789BB2D33D23252D566"><enum>(b)</enum><header>Conforming amendment</header><text>The analysis for chapter 329 of title 49, United States Code, is amended by adding at the end the following:</text> <quoted-block id="id988a36da-427f-4c1c-8ae2-6f9b21ab6102" style="OLC"> <toc> <toc-entry idref="id279FA9832EE9445F93B1ED518CE28B0C" level="section">Sec. 32920. Open fuel standard for transportation.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section commented="no" display-inline="no-display-inline" id="idF4ACD5EF5A8B4F96996C46F1A970C1B3" section-type="subsequent-section"><enum>204.</enum><header display-inline="yes-display-inline">Reducing barriers to supply chain manufacturing of renewable energy equipment</header> <subsection commented="no" display-inline="no-display-inline" id="id152DE404F4904B98986DF082692DC8EF"><enum>(a)</enum><header display-inline="yes-display-inline">Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated $50,000,000 for the Hollings Manufacturing Partnership Program, established under section 25 of the National Institute of Standards and Technology Act (15 U.S.C. 278k).</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id4304C2F1DA87416E8AF712688404C304"><enum>(b)</enum><header display-inline="yes-display-inline">Use of funds</header><text display-inline="yes-display-inline">Amounts appropriated pursuant to subsection (a) shall be used to implement a strategy for reducing barriers to supply chain manufacturing of renewable energy equipment.</text> </subsection></section><section id="id317237B5B5CD45E28024E6523F5DA240"><enum>205.</enum><header>Tax incentives for qualified blender pumps</header> <subsection id="id50630886279D47A1BA288337BE650C06"><enum>(a)</enum><header>Credit for installation of blender pumps</header><text>Section 30C of the Internal Revenue Code of 1986 is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id4D24C5C348DA4E3DA4DBBCADD500C94D" style="OLC"> <subsection id="id2DDF6DB0D7B84A97BBE66B7A089A7BCD"><enum>(f)</enum><header>Treatment of blender pumps as qualified alternative fuel vehicle refueling property</header> <paragraph id="idE46EA3E64DB94999B849CD093102FAC1"><enum>(1)</enum><header>In general</header><text>A qualified blender pump shall be treated as qualified alternative refueling property under this section.</text> </paragraph><paragraph id="id68CC1F05BD714E379EBB354BDDF3BAC1"><enum>(2)</enum><header>Qualified blender pump</header><text>For purposes of this subsection, the term <term>qualified blender pump</term> means property (not including a building or its structural components)—</text> <subparagraph id="id5D5349B79D6746C9A83B218CB6D87201"><enum>(A)</enum><text>which is subject to the allowance for depreciation or which is installed on property which is used as a principal residence,</text> </subparagraph><subparagraph id="id3FFA50E656214EA69CF880E8D0ED91D8"><enum>(B)</enum><text>the original use of which begins with the taxpayer, and</text> </subparagraph><subparagraph id="idDDA907E81C5C4B658A6FC549AFBFA53B"><enum>(C)</enum><text>which is for the storage or dispensing of a qualified ethanol blend into the fuel tank of a motor vehicle (as defined in section 179A(e)(2)) propelled by such blend, but only if—</text> <clause id="idBEA1F7420BA64450B0B24F1966CC3703"><enum>(i)</enum><text>the storage or dispensing is at the point where such fuel is delivered into the fuel tank of the motor vehicle, and</text> </clause><clause id="idF9E83706AB6243C1A88BCD0FB9F135F5"><enum>(ii)</enum><text>such property is capable of dispensing qualified ethanol blends of not less than 3 different percentage volumes of ethanol which may be selected by the pump operator.</text> </clause></subparagraph></paragraph><paragraph id="id20095C597E9141B1AB35E79E32EF74E8"><enum>(3)</enum><header>Qualified ethanol blend</header><text>For purposes of this subsection, the term <term>qualified ethanol blend</term> means any fuel which is not less than 20 percent ethanol by volume and not more than 85 percent ethanol by volume.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id71FBA3744CD6469EB58FD1236FDDF5B6"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><enum>III</enum><header>Renewable electricity and energy efficiency resource standards</header> <section commented="no" display-inline="no-display-inline" id="id23C64B339D48469593A18441C7C95AD6" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Renewable electricity and energy efficiency resource standards</header> <subsection commented="no" display-inline="no-display-inline" id="id6A33950935D347179DB216216A130B31"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="idB1FF41CFE6C9407DAE29C7DA59F5386B" style="OLC"> <section commented="no" display-inline="no-display-inline" id="ID46a385d8673f4c69af51ba0810353c9c" section-type="subsequent-section"><enum>610.</enum><header display-inline="yes-display-inline">Renewable electricity and energy efficiency resource standards</header> <subsection commented="no" display-inline="no-display-inline" id="IDa44c7cc6129740fc8178dcfaf2a5c609"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text> <paragraph commented="no" display-inline="no-display-inline" id="idF89B4C41AC1A4D3C8F6A7A2E24944562"><enum>(1)</enum><header display-inline="yes-display-inline">Base quantity of electricity</header> <subparagraph commented="no" display-inline="no-display-inline" id="id5F4B0B163DBE4CFFAC00948260E038EA"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>base quantity of electricity</term> means the total quantity of electricity sold by an electric utility to electric consumers in a calendar year.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3803154CAD41473E90E90D751395124E"><enum>(B)</enum><header display-inline="yes-display-inline">Exclusions</header><text display-inline="yes-display-inline">The term <term>base quantity of electricity</term> does not include electricity generated by a hydroelectric facility (including a pumped storage facility but excluding incremental hydropower).</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0fa6479280ee4622be88dcab30b0fa29"><enum>(2)</enum><header display-inline="yes-display-inline">Distributed generation facility</header><text display-inline="yes-display-inline">The term <term>distributed generation facility</term> means a facility at a customer site.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID36d95f2dc9ad464290f3c211404a57aa"><enum>(3)</enum><header display-inline="yes-display-inline">Geothermal energy</header><text display-inline="yes-display-inline">The term <term>geothermal energy</term> means energy derived from a geothermal deposit (within the meaning of section 613(e)(2) of the Internal Revenue Code of 1986).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID54229b180138412fac628b6a61baf35e"><enum>(4)</enum><header display-inline="yes-display-inline">Incremental geothermal production</header> <subparagraph commented="no" display-inline="no-display-inline" id="IDa610694006dd4093a02a25156b6cf37d"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>incremental geothermal production</term> means, for any year, the excess of—</text> <clause commented="no" display-inline="no-display-inline" id="ID4489f9595a73449d8ee8c4ac61dbd5d0"><enum>(i)</enum><text display-inline="yes-display-inline">the total kilowatt hours of electricity produced from a facility (including a distributed generation facility) using geothermal energy; over</text> </clause><clause commented="no" display-inline="no-display-inline" id="IDf72e263061cd4ee588f6bc3b8d203874"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID051f4984dbfd4a378160a73c03621483"><enum>(B)</enum><header display-inline="yes-display-inline">Special rule</header><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id61328AA9F74F47EF8C49B0F90049F4BC"><enum>(5)</enum><header display-inline="yes-display-inline">Incremental hydropower</header> <subparagraph commented="no" display-inline="no-display-inline" id="id9A3E76B44EE9427A96256990CD64C7CA"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>incremental hydropower</term> means additional energy generated as a result of efficiency improvements or capacity additions made on or after—</text> <clause commented="no" display-inline="no-display-inline" id="id67DFF40A605340BAA82EA114B2AFFBF8"><enum>(i)</enum><text display-inline="yes-display-inline">January 1, 2001; or</text> </clause><clause commented="no" display-inline="no-display-inline" id="id05CD68988F5C413DADF7596E46A9D4DA"><enum>(ii)</enum><text display-inline="yes-display-inline">the effective commencement date of an existing applicable State renewable portfolio standard program at a hydroelectric facility that was placed in service before that date.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0A6CB715DB4047B082DF9775C3899861"><enum>(B)</enum><header display-inline="yes-display-inline">Exclusion</header><text display-inline="yes-display-inline">The term <term>incremental hydropower</term> does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8A8DA7612D45447CAA6086F0033797BC"><enum>(C)</enum><header display-inline="yes-display-inline">Measurement and certification</header><text display-inline="yes-display-inline">Efficiency improvements and capacity additions referred to in subparagraph (B) shall be—</text> <clause commented="no" display-inline="no-display-inline" id="idD4F30CABA0604AAC8CAAB00262DEBDC5"><enum>(i)</enum><text display-inline="yes-display-inline">measured on the basis of the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="id29961B56687045478E3BF66666B4EC37"><enum>(ii)</enum><text display-inline="yes-display-inline">certified by the Secretary or the Federal Energy Regulatory Commission.</text> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4474ae3332f544189d1c1b6855fc26eb"><enum>(6)</enum><header display-inline="yes-display-inline">Ocean energy</header><text display-inline="yes-display-inline">The term <term>ocean energy</term> includes current, wave, tidal, and thermal energy.</text> </paragraph><paragraph id="ID8674f2dd883241ba8285e6371aa8ee62"><enum>(7)</enum><header>Renewable biomass</header><text>Subject to section 104(b) of the <short-title>Securing America’s Future with Energy and Sustainable Technologies Act</short-title>, the term <term>renewable biomass</term> means—</text> <subparagraph id="ID6091e3b02d44468f90aa5b93f7e4238b"><enum>(A)</enum><text>materials, precommercial thinnings, or removed 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)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are—</text> <clause id="ID9d141460a86e4ff0a7f57144972f22a0"><enum>(i)</enum><text>not from components of—</text> <subclause id="ID0ec5d8d04e264dcbaa9650e0a2def2e2"><enum>(I)</enum><text>a component of the National Wild and Scenic Rivers System;</text> </subclause><subclause id="IDb3635f784eca47deab3a57cda3d600f1"><enum>(II)</enum><text>a component of the National Wilderness Preservation System;</text> </subclause><subclause id="ID7d44025d0d8c4634b360baf8e566d888"><enum>(III)</enum><text>a National Monument;</text> </subclause><subclause id="IDd6f9b0ee1efd4934bd4cafb6f76b9476"><enum>(IV)</enum><text>any part of the National Landscape Conservation System;</text> </subclause><subclause id="id99C55853AFCC44AC95ABB102AD8E1910"><enum>(V)</enum><text>a designated wilderness study area or other areas managed for wilderness characteristics;</text> </subclause><subclause id="IDc635135eef6f4c2ca26e0a76e17d5d21"><enum>(VI)</enum><text>an inventoried roadless area within the National Forest System;</text> </subclause><subclause id="idFEC72DD6C15B43BFA3AF918C5F3F7A2B"><enum>(VII)</enum><text>an old growth stand (as defined by the applicable land management plan);</text> </subclause><subclause id="id78420918DBE24079999D2C4C7C56F3D0"><enum>(VIII)</enum><text>a late-successional stand (except for dead, severely damaged, or badly infested trees) (as defined by the applicable land management plan); or</text> </subclause><subclause id="id0CFB9BB2C3C04CB994F88365425D2713"><enum>(IX)</enum><text>a designated primitive area;</text> </subclause></clause><clause id="ID860e925b8e964c818162a0b0e6e91a63"><enum>(ii)</enum><text>harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and</text> </clause><clause id="ID269c2b1af9b3447ead9514512947292e"><enum>(iii)</enum><text>harvested in accordance with applicable law and land management plans;</text> </clause></subparagraph><subparagraph id="ID67173ffb334641afa027d76c5403c9ea"><enum>(B)</enum><text>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—</text> <clause id="ID93ea7c5c9036438eafb6894db352eeae"><enum>(i)</enum><text>renewable plant material, including—</text> <subclause id="ID11f48524aa284bf4b307456d6ee9295d"><enum>(I)</enum><text>feed grains;</text> </subclause><subclause id="IDfb893a148d3c46f2b2f3e3612cbc55a5"><enum>(II)</enum><text>other agricultural commodities;</text> </subclause><subclause id="IDb83c79feaa1c4025981a3400ab358376"><enum>(III)</enum><text>other plants and trees; and</text> </subclause><subclause id="ID17fe252a1bfa4551abcb293164e69b52"><enum>(IV)</enum><text>algae; and</text> </subclause></clause><clause id="ID1bdf5ce5b0bb4d70aa27732aebbcf965"><enum>(ii)</enum><text>waste material (other than commonly recycled paper), including—</text> <subclause id="ID702b3368bef04627babd91de92a4f0d8"><enum>(I)</enum><text>crop residue;</text> </subclause><subclause id="IDeb20fc77d1ee40208404f286582de8a3"><enum>(II)</enum><text>other vegetative waste material (including wood waste and wood residues);</text> </subclause><subclause id="ID93e9b162b68a4f67b28683a7da47a86b"><enum>(III)</enum><text>animal waste and byproducts (including fats, oils, greases, and manure);</text> </subclause><subclause id="ID107a31cbcb814ef2935d3f9d90e4d3fa"><enum>(IV)</enum><text>construction waste;</text> </subclause><subclause id="ID3afa309b912c44678b00fe02a8650b3a"><enum>(V)</enum><text>food waste and yard waste; and</text> </subclause><subclause id="ID6a0bae78a8a74a9b801fa8f596471478"><enum>(VI)</enum><text>waste from single or multi-cellular organisms; and</text> </subclause></clause></subparagraph><subparagraph id="ID1ebe5446dd7b44a9991f63820dcba731"><enum>(C)</enum><text>residues and byproducts from wood, pulp, or paper products facilities.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID688508b4d21f47c9befbb8eea44c24ec"><enum>(8)</enum><header display-inline="yes-display-inline">Renewable energy</header><text display-inline="yes-display-inline">The term <term>renewable energy</term> means electric energy generated at a facility (including a distributed generation facility) from—</text> <subparagraph commented="no" display-inline="no-display-inline" id="ID50f45da7a83245499f065c38fd37343c"><enum>(A)</enum><text display-inline="yes-display-inline">solar, wind, geothermal, or ocean energy;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID49ff69e6206a48808a1f7a55e209d35f"><enum>(B)</enum><text display-inline="yes-display-inline">renewable biomass;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID902c7fd7a13d4afea97141860b530741"><enum>(C)</enum><text display-inline="yes-display-inline">landfill gas;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC02A0A30C2044C4A8BC7273063F4A0B2"><enum>(D)</enum><text display-inline="yes-display-inline">municipal solid waste;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDfaf6b169d2d84f299e584392bab9b58d"><enum>(E)</enum><text display-inline="yes-display-inline">incremental hydropower; or</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id31D96711D7214A029436CAFF0DE89864"><enum>(F)</enum><text display-inline="yes-display-inline">hydropower that has been certified by the Low Impact Hydropower Institute.</text> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDcd4b4a47f6d04d198b5336e1ad69ce27"><enum>(b)</enum><header display-inline="yes-display-inline">Renewable electricity requirement</header> <paragraph commented="no" display-inline="no-display-inline" id="IDb86a041db333486dbc390b2812d4cc18"><enum>(1)</enum><header display-inline="yes-display-inline">Requirement</header> <subparagraph commented="no" display-inline="no-display-inline" id="idF599A1661FB841FAB7F159D9BF95E46B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), each electric utility that sells electricity to electric consumers shall obtain a percentage of the base quantity of electricity the electric utility sells to electric consumers in any calendar year through the means of compliance identified in paragraph (2).</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id349E48D61F9C415C8523ABAE41FE277A"><enum>(B)</enum><header display-inline="yes-display-inline">Percentage</header><text display-inline="yes-display-inline">The percentage obtained in a calendar year under subparagraph (A) shall not be less than the amount specified in the following table:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="231pts" min-data-value="55"></colspec><colspec align="justify" coldef="fig" colname="column2" colwidth="190pts" min-data-value="5"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Minimum annual</bold></entry> </row> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>Calendar years:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>percentage:</bold></entry> </row> </thead> <tbody> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">10</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="column2" rowsep="0">11</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="column2" rowsep="0">12</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry align="right" colname="column2" rowsep="0">13</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2017</entry><entry align="right" colname="column2" rowsep="0">14</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2018</entry><entry align="right" colname="column2" rowsep="0">15</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2019</entry><entry align="right" colname="column2" rowsep="0">16</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2020</entry><entry align="right" colname="column2" rowsep="0">17</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2021</entry><entry align="right" colname="column2" rowsep="0">18</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2022</entry><entry align="right" colname="column2" rowsep="0">19</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2023</entry><entry align="right" colname="column2" rowsep="0">21</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2024</entry><entry align="right" colname="column2" rowsep="0">23</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2025</entry><entry align="right" colname="column2" rowsep="0">25</entry> </row> </tbody> </tgroup> </table> </subparagraph></paragraph><paragraph id="ID2c08d534218a40ba814f6bc44171ebd7"><enum>(2)</enum><header>Means of compliance</header><text>Not later than 60 days after the end of each calendar year, an electric utility shall meet the requirements of paragraph (1) by—</text> <subparagraph id="IDf868c9ba3f034dd29be4c002348506d4"><enum>(A)</enum><text>submitting to the Secretary renewable energy credits issued under subsection (c);</text> </subparagraph><subparagraph id="ID58fa6c73a9d144e4ba6a3830d5cec9e5"><enum>(B)</enum><text>making alternative compliance payments to the Secretary at the rate of 4 cents per kilowatt hour (as adjusted for inflation under subsection (g));</text> </subparagraph><subparagraph id="ID24375874eb774f6c9d00f2009107188e"><enum>(C)</enum><text>submitting to the Secretary energy efficiency credits established under section 611(k) in a quantity that shall not exceed 15 percent of the minimum percentage required in each calendar year under subparagraph (B); or</text> </subparagraph><subparagraph id="ID18ce7505f4fd48a783f024a9ae6766e2"><enum>(D)</enum><text>conducting a combination of activities described in subparagraphs (A), (B), and (C).</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID09a58e42885e4f5d9584b06f746bb2d5"><enum>(3)</enum><header display-inline="yes-display-inline">Clean energy jobs</header><text display-inline="yes-display-inline">In carrying out this title, the Secretary shall, to the maximum extent practicable, encourage electric utilities, in meeting the requirements of paragraph (1), also—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id054D2467A84743629D7EC70169734689"><enum>(A)</enum><text display-inline="yes-display-inline">to create jobs that pay a living wage that supports a family;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB4837089D5A64070ABD7DC518FB97DF7"><enum>(B)</enum><text display-inline="yes-display-inline">to provide health insurance benefits to employees; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7A5154A7737E46E38E3282259349A914"><enum>(C)</enum><text display-inline="yes-display-inline">to comply with all Federal labor and environmental laws (including regulations).</text> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5ad3bfb7578c4bcb8b8b95a4ca6ffcf8"><enum>(c)</enum><header display-inline="yes-display-inline">Renewable energy credit trading program</header> <paragraph commented="no" display-inline="no-display-inline" id="ID8ccb6d3d112e4b47ac11ef33477cbb5b"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than December 31, 2011, the Secretary, in consultation with the Administrator, shall establish a renewable energy credit trading program under which electric utilities shall submit to the Secretary renewable energy credits to certify the compliance of the electric utilities with respect to obligations under subsection (b)(1).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID04caa46aab024c49b18c46c33bfcdb32"><enum>(2)</enum><header display-inline="yes-display-inline">Administration</header><text display-inline="yes-display-inline">As part of the program, the Secretary shall—</text> <subparagraph commented="no" display-inline="no-display-inline" id="IDe49d8d5bcda54416ba30006e14bc0076"><enum>(A)</enum><text display-inline="yes-display-inline">issue renewable energy credits to generators of electric energy from new renewable energy;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe899582ae5b946f8a3a744a9e2383a91"><enum>(B)</enum><text display-inline="yes-display-inline">issue renewable energy credits to electric utilities associated with State renewable portfolio standard compliance mechanisms pursuant to subsection (h);</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa76183894e194bae853c80a664764889"><enum>(C)</enum><text display-inline="yes-display-inline">subject to subparagraph (D), ensure that a kilowatt hour, including the associated renewable energy credit, shall be used only once for purposes of compliance with this section;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7fd6008f5a5a4814a422dee2e53236fe"><enum>(D)</enum><text display-inline="yes-display-inline">allow double credits for generation from facilities on Indian land and brownfield sites, and triple credits for generation from small renewable distributed generators (meaning those no larger than 1 megawatt);</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID96016cca25a14f63ba115a3a467ccda0"><enum>(E)</enum><text display-inline="yes-display-inline">ensure that, with respect to a purchaser that, as of the date of enactment of this section, has a purchase agreement from a renewable energy facility placed in service before that date (other than a biomass energy facility), the credit associated with the generation of renewable energy under the contract is issued to the purchaser of the electric energy; and</text> </subparagraph><subparagraph id="IDce29a9c10d7a46e7adfa44c642e006a9"><enum>(F)</enum><text>not allow energy efficiency credits established under section 611(k) to be traded.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb8ca7305553d48299921a5ebe97f5f80"><enum>(3)</enum><header display-inline="yes-display-inline">Duration</header><text display-inline="yes-display-inline">A credit described in paragraph (2)(A) may only be used for compliance with this section during the 3-year period beginning on the date of issuance of the credit.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7edb737548db4cb38a932acefb626a8d"><enum>(4)</enum><header display-inline="yes-display-inline">Transfers</header><text display-inline="yes-display-inline">An electric utility that holds credits in excess of the quantity of credits needed to comply with subsection (b) may transfer the credits to another electric utility.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID22a14aba7eae439dbcf8ae90cb4bc22e"><enum>(5)</enum><header display-inline="yes-display-inline">Delegation of market function</header><text display-inline="yes-display-inline">The Secretary may delegate to an appropriate entity that establishes markets 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.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID88d9dd8baad04f9baddeb2afaea473cc"><enum>(d)</enum><header display-inline="yes-display-inline">Enforcement</header> <paragraph commented="no" display-inline="no-display-inline" id="ID68796778c44945c2a32d340363bc5451"><enum>(1)</enum><header display-inline="yes-display-inline">Civil penalties</header><text display-inline="yes-display-inline">Any electric utility that fails to meet the compliance requirements of subsection (b) shall be subject to a civil penalty.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDed50934fa5ef44a49e969ca37d3040f3"><enum>(2)</enum><header display-inline="yes-display-inline">Amount of penalty</header><text display-inline="yes-display-inline">Subject to paragraph (3), the amount of the civil penalty shall be equal to the product obtained by multiplying—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id3CCB74BB592C42718AE09F9D7390990D"><enum>(A)</enum><text display-inline="yes-display-inline">the number of kilowatt-hours of electric energy sold to electric consumers in violation of subsection (b); by</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC02A37461C3A4B6683C6C2B5E65DD041"><enum>(B)</enum><text display-inline="yes-display-inline">the greater of—</text> <clause commented="no" display-inline="no-display-inline" id="id26004D2DEF2C46FEA41F5340E632E5AF"><enum>(i)</enum><text display-inline="yes-display-inline">2 cents (adjusted for inflation under subsection (g)); or</text> </clause><clause commented="no" display-inline="no-display-inline" id="id119DBFA7E2E8461E86B2AE2C148C3440"><enum>(ii)</enum><text display-inline="yes-display-inline">200 percent of the average market value of renewable energy credits during the year in which the violation occurred.</text> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2DDA1DECFDDB4CA5BE82D9B718170E30"><enum>(3)</enum><header display-inline="yes-display-inline">Mitigation or waiver</header> <subparagraph commented="no" display-inline="no-display-inline" id="id04E573CADB3141C490F143D6A73257EC"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary may 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.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98D8C14779214FA3BF2076DC578C7ABF"><enum>(B)</enum><header display-inline="yes-display-inline">Reduction</header><text display-inline="yes-display-inline">The Secretary shall reduce the amount of any penalty determined under paragraph (2) by an amount paid by the electric utility to a State for failure to comply with the requirement of a State renewable energy program if the State requirement is greater than the applicable requirement of subsection (b).</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4D1C6F1E4F2246F5B449ADBD968CD506"><enum>(4)</enum><header display-inline="yes-display-inline">Procedure for assessing penalty</header><text display-inline="yes-display-inline">The 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)).</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDd8029747080849b68b2b0b71359bb640"><enum>(e)</enum><header display-inline="yes-display-inline">State renewable energy account program</header> <paragraph commented="no" display-inline="no-display-inline" id="ID8533005e24714c30ba8b7ea961dc78a7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">There is established in the Treasury a State renewable energy account program.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDaf0b8f2e07b24d31a27bc7ceeeac7b97"><enum>(2)</enum><header display-inline="yes-display-inline">Deposits</header><text display-inline="yes-display-inline">All money collected by the Secretary from alternative compliance payments and the assessment of civil penalties under this section shall be deposited into the renewable energy account established pursuant to this subsection.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1b2f133e4268457bad67c7546b53a278"><enum>(3)</enum><header display-inline="yes-display-inline">Use</header><text display-inline="yes-display-inline">Proceeds deposited in the State renewable energy account shall be used by the Secretary to carry out a program to provide grants to the State agency responsible for developing State energy conservation plans under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322) for the purposes of promoting renewable energy production, including programs that promote technologies that reduce the use of electricity at customer sites, such as solar water heating.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5eb39a2bd1064a9ca979ec2c2e5bcd63"><enum>(4)</enum><header display-inline="yes-display-inline">Administration</header><text display-inline="yes-display-inline">The Secretary may issue guidelines and criteria for grants awarded under this subsection.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id61C903BF06464E8F8C41AED7CB058EA3"><enum>(5)</enum><header display-inline="yes-display-inline">Records</header><text display-inline="yes-display-inline">State energy offices receiving grants under this section shall maintain such records and evidence of compliance as the Secretary may require.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID93e2d407dc2d40338b8ee64036fada10"><enum>(6)</enum><header display-inline="yes-display-inline">Preference</header><text display-inline="yes-display-inline">In allocating funds under this subsection, the Secretary shall give preference—</text> <subparagraph commented="no" display-inline="no-display-inline" id="ID6d0051d40350461e8d67bcdf1d9cbd4b"><enum>(A)</enum><text display-inline="yes-display-inline">to States in regions that have a disproportionately small share of economically sustainable renewable energy generation capacity; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4efc4169cf89437b8ed92674b1cfa148"><enum>(B)</enum><text display-inline="yes-display-inline">to State programs to stimulate or enhance innovative renewable energy technologies.</text> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id564469C19CE14833AC95F41A35F92B3A"><enum>(f)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">During any calendar year, this section shall not apply to an electric utility that sold less than 4,000,000 megawatt-hours of electric energy to electric consumers during the preceding calendar year.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID0a946710440a49a7afe77696cecb1c9e"><enum>(g)</enum><header display-inline="yes-display-inline">Inflation adjustment</header><text display-inline="yes-display-inline">Not later than December 31 of each year beginning in 2011, the Secretary shall adjust for United States dollar inflation from January 1, 2011 (as measured by the Consumer Price Index)—</text> <paragraph commented="no" display-inline="no-display-inline" id="idA2DE858CB5C348DB8EE0101EF4E2B763"><enum>(1)</enum><text display-inline="yes-display-inline">the price of a renewable energy credit under subsection (c)(2); and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE0CB05CD98644AC7A7FDCF5B746C52D6"><enum>(2)</enum><text display-inline="yes-display-inline">the amount of the civil penalty per kilowatt-hour under subsection (d)(2).</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDd39d8c3a324c40769a4f231083b806a7"><enum>(h)</enum><header display-inline="yes-display-inline">State programs</header> <paragraph commented="no" display-inline="no-display-inline" id="id20D979A3ED1E47BFACE110BCBEB01FDB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 renewable energy.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id64214572F961439CA8579F9EE0384B22"><enum>(2)</enum><header display-inline="yes-display-inline">Compliance</header><text display-inline="yes-display-inline">Except as provided in subsection (d)(3), no such law or regulation shall relieve any person of any requirement otherwise applicable under this section.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9D33197E00D74C16B00C964553E5B67A"><enum>(3)</enum><header display-inline="yes-display-inline">Coordination</header><text display-inline="yes-display-inline">The Secretary, in consultation with States having such renewable energy programs, shall, to the maximum extent practicable, facilitate coordination between the Federal program and State programs.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDbcc5fd53a54844b4b95e4011c680dd07"><enum>(4)</enum><header display-inline="yes-display-inline">Regulations</header> <subparagraph commented="no" display-inline="no-display-inline" id="ID4f43d65b14ef49d7b327e7ea4a89f607"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary, in consultation with States, shall promulgate regulations to ensure that an electric utility subject to the requirements of this section that is also subject to a State renewable energy standard receives renewable energy credits in relation to equivalent quantities of renewable energy associated with compliance mechanisms, other than the generation or purchase of renewable energy by the electric utility, including the acquisition of certificates or credits and the payment of taxes, fees, surcharges, or other financial compliance mechanisms by the electric utility or a customer of the electric utility, directly associated with the generation or purchase of renewable energy.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDcbf7508fd12340d49a8f7beccd608bf7"><enum>(B)</enum><header display-inline="yes-display-inline">Prohibition on double counting</header><text display-inline="yes-display-inline">The regulations promulgated under this paragraph shall ensure that a kilowatt hour associated with a renewable energy credit issued pursuant to this subsection shall not be used for compliance with this section more than once.</text> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDf4999c00752f49f7816f9dcd6146111e"><enum>(i)</enum><header display-inline="yes-display-inline">Recovery of costs</header> <paragraph commented="no" display-inline="no-display-inline" id="IDf8e1abd8cc5a481a813acc5f97684cab"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall promulgate and enforce such regulations as are necessary to ensure that an electric utility recovers all prudently incurred costs associated with compliance with this section.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID36eba23063ee406a886e537eb997bafa"><enum>(2)</enum><header display-inline="yes-display-inline">Applicable law</header><text display-inline="yes-display-inline">A regulation under paragraph (1) shall be enforceable in accordance with the provisions of law applicable to enforcement of regulations under the Federal Power Act (16 U.S.C. 791a et seq.).</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID96db1e6bdabe42cc8432ceeea74986b3"><enum>(j)</enum><header display-inline="yes-display-inline">Regulations</header> <paragraph commented="no" display-inline="no-display-inline" id="id29CABFD843204168A57C2F96EBF5B62F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 18 months after the date of enactment of this title, the Secretary, in consultation with the leaders of relevant Federal agencies, shall promulgate regulations to carry out this title.</text> </paragraph><paragraph commented="no" id="ID03273f9d14b54d16bcaf6336e5425d24"><enum>(2)</enum><header>Priorities</header><text>The regulations promulgated under paragraph (1) shall prioritize the use of components and products produced in the United States, without placing constraints that prevent compliance under this title, for new renewable energy facilities eligible to participate in activities under this title.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7F29503DE7E54E6BB482CF559D4B07A7"><enum>(k)</enum><header display-inline="yes-display-inline">Termination of authority</header><text display-inline="yes-display-inline">This section and the authority provided by this section terminate on December 31, 2040.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="idA58A2E945E3343479D26D9599E14A90A"><enum>(b)</enum><header display-inline="yes-display-inline">Table of contents amendment</header><text display-inline="yes-display-inline">The 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:</text> <quoted-block display-inline="no-display-inline" id="id55434CAFFCD940CCBE669043C2AEE6A1" style="OLC"> <toc> <toc-entry bold="off" level="section">Sec. 609. Rural and remote communities electrification grants.</toc-entry> <toc-entry bold="off" level="section">Sec. 610. Renewable electricity and energy efficiency resource standards.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="IDa996939e772a4962a824b2ed70db5a8d"><enum>302.</enum><header>Energy efficiency resource standard for retail electricity and natural gas distributors</header> <subsection id="id92238300A4084DE08BC5A4C326C53F1C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) (as amended by section 301(a)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id0FE65BEB03B540A59A83B6B2A20127C8" style="OLC"> <section id="id5F408A8DA1324FC28E8CECABF809E8F7"><enum>611.</enum><header>Energy efficiency resource standard for retail electricity and natural gas distributors</header> <subsection id="ID477e677589294740a5d1a5f4d4b9e353"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="ID29ac245d51c24d21927f983b328a3f19"><enum>(1)</enum><header>Administrator</header><text>The term <term>Administrator</term> means the Administrator of the Environmental Protection Agency.</text> </paragraph><paragraph id="ID0eae6c8e238b4946aabbd455b8a7e4f3"><enum>(2)</enum><header>Affiliate</header><text>The term <term>affiliate</term>, when used with respect to a person, means another person that owns or controls, is owned or controlled by, or is under common ownership control with, the person, as determined under regulations promulgated by the Secretary.</text> </paragraph><paragraph id="IDc61a0986b60043f6b003bfd22882aa06"><enum>(3)</enum><header>ANSI</header><text>The term <term>ANSI</term> means the American National Standards Institute.</text> </paragraph><paragraph id="ID96030b2f92ff49b9be76244335824477"><enum>(4)</enum><header>ASHRAE</header><text>The term <term>ASHRAE</term> means the American Society of Heating, Refrigerating, and Air Conditioning Engineers.</text> </paragraph><paragraph id="ID4999188376144a9cb9a7bf41945795dd"><enum>(5)</enum><header>Base quantity</header> <subparagraph id="ID3634450e086442c3a659e9e69bc6c5ab"><enum>(A)</enum><header>In general</header><text>The term <term>base quantity</term>, when used with respect to a retail electricity distributor or retail natural gas distributor, means the average annual quantity of electricity or natural gas delivered by the retail electricity distributor or retail natural gas distributor to retail customers during the 5 calendar years immediately preceding the date of enactment of this section.</text> </subparagraph><subparagraph id="IDea1e5cba4aaa4f08b733ddc8bbb30b58"><enum>(B)</enum><header>Exclusion</header><text>The term <term>base quantity</term>, when used to determine the base quantity of a retail natural gas distributor, does not include natural gas delivered for purposes of electricity generation.</text> </subparagraph></paragraph><paragraph id="ID88155c84c738486bb214debc88d739ea"><enum>(6)</enum><header>Codes and standards savings</header> <subparagraph id="IDcf480e54c88c4988a270995f9df3f50a"><enum>(A)</enum><header>In general</header><text>The term <term>codes and standards savings</term> means a reduction in end-use electricity or natural gas consumption in the service territory of a retail electricity distributor or a retail natural gas distributor as a result of the adoption and implementation, after the date of enactment of this section, of new or revised appliance and equipment efficiency standards or building energy codes.</text> </subparagraph><subparagraph id="IDeac55f19e6e94f87b4fe0d761da99b5b"><enum>(B)</enum><header>Baselines</header><text>In calculating codes and standards savings—</text> <clause id="ID347fda63fdde4697a8217964d079879f"><enum>(i)</enum><text>the baseline for calculating savings from building codes shall be the more stringent of—</text> <subclause id="id813883BB7A554287AFF1D8112CDA9D6C"><enum>(I)</enum><text>the 2006 International Energy Conservation Code for residential buildings and the ASHRAE/ANSI/IESNA Standard 90.1 (2004) for commercial buildings;</text> </subclause><subclause id="id7E1C272CEE10444DB8E0C0AEFBF349FB"><enum>(II)</enum><text>the applicable State building code in effect on the date of enactment of this section; or</text> </subclause><subclause id="id4DE312CCCB0A423CB0C92B4CCF4BD266"><enum>(III)</enum><text>a baseline determined by the Secretary; and</text> </subclause></clause><clause id="ID67ea146317284a4e875d72b03bc73227"><enum>(ii)</enum><text>the baseline for calculating savings from appliance standards shall be the average efficiency of new appliances in the applicable 1 or more categories prior to adoption and implementation of the new standard.</text> </clause></subparagraph></paragraph><paragraph id="ID31297bd481734b84852c971071c91500"><enum>(7)</enum><header>Cost-effective</header><text>The term <term>cost-effective</term>, when used with respect to an energy efficiency measure, means that the measure achieves a net present value of economic benefits over the life of the measure, both directly to the energy consumer and to the economy, that is greater than the net present value of the cost of the measure over the life of the measure, both directly to the energy consumer and to the economy.</text> </paragraph><paragraph id="ID9f9d6c6029f549f19c514fb30cf2e356"><enum>(8)</enum><header>Customer facility savings</header><text>The term <term>customer facility savings</term> means a reduction in end-use electricity or natural gas consumption (including recycled energy savings) at a facility of an end-use consumer of electricity or natural gas served by a retail electricity distributor or natural gas distributor, as compared to—</text> <subparagraph id="ID64ebca03d35848f5b41409aaa6bd79c6"><enum>(A)</enum><text>in the case of new equipment that replaces existing equipment at the end of the useful life of the existing equipment, consumption by new equipment of average efficiency;</text> </subparagraph><subparagraph id="IDea08f72bf5aa49039b0b981ee2802854"><enum>(B)</enum><text>in the case of new equipment that replaces existing equipment with remaining useful life—</text> <clause id="ID49ed54efe5fd479c883b60052596622d"><enum>(i)</enum><text>consumption of the existing equipment for the remaining useful life of the equipment; and</text> </clause><clause id="ID3891fb443742462eaf6b4f588af9a734"><enum>(ii)</enum><text>after that useful life, consumption of new equipment of average efficiency;</text> </clause></subparagraph><subparagraph id="IDcbe462fdab09476197eaf754d5532afc"><enum>(C)</enum><text>in the case of a new facility, consumption at a reference facility of average efficiency; or</text> </subparagraph><subparagraph id="IDbb7e258c1a534beb98e26d59b40a11a5"><enum>(D)</enum><text>in the case of energy savings measures at a facility not covered by subparagraphs (A) through (C), consumption at the facility during a base year.</text> </subparagraph></paragraph><paragraph id="ID50d44340d9bb4487a403d661deb2b26e"><enum>(9)</enum><header>Electricity savings</header><text>The term <term>electricity savings</term> means reductions in electricity consumption achieved through measures implemented after the date of enactment of this section, as determined in accordance with regulations promulgated by the Secretary, through—</text> <subparagraph id="ID33abead8702541e7997c9ff8df78ea92"><enum>(A)</enum><text>customer facility savings of electricity, adjusted to reflect any associated increase in fuel consumption at the facility;</text> </subparagraph><subparagraph id="ID13dffc7c78f4472fbe53a04049002ffe"><enum>(B)</enum><text>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 in regulations promulgated by the Secretary); and</text> </subparagraph><subparagraph id="ID9352dea69da24dc5bac32be3327d1765"><enum>(C)</enum><text>codes and standards savings of electricity.</text> </subparagraph></paragraph><paragraph id="ID6d8a4462e84e413e99511ff926b02a2f"><enum>(10)</enum><header>IESNA</header><text>The term <term>IESNA</term> mean the Illuminating Engineering Society of North America.</text> </paragraph><paragraph id="IDe93e4503a9fd432d9b669a50c1bbcdbd"><enum>(11)</enum><header>Natural gas savings</header><text>The term <term>natural gas savings</term> means reductions in natural gas consumption from measures implemented after the date of enactment of this section, as determined in accordance with regulations promulgated by the Secretary, through—</text> <subparagraph id="IDe29210e7e5f54834b9ba4f4de06c3f18"><enum>(A)</enum><text>customer facility savings of natural gas, adjusted to reflect any associated increase in electricity consumption or consumption of other fuels at the facility;</text> </subparagraph><subparagraph id="ID8bcb3174e2654f8e99e1f21501fb7d53"><enum>(B)</enum><text>reductions in leakage, operational losses, and consumption of natural gas fuel to operate a gas distribution system, achieved by a retail natural gas distributor, as compared to similar leakage, losses, and consumption during a base period (which shall not be less than 1 year); and</text> </subparagraph><subparagraph id="IDa95a53d740414bd7a1d86bbe161bb4e7"><enum>(C)</enum><text>codes and standards savings of natural gas.</text> </subparagraph></paragraph><paragraph id="ID7ec13cc6111c47d3a15bf40c53b14527"><enum>(12)</enum><header>Power pool</header><text>The term <term>power pool</term> means an association of 2 or more interconnected electric systems that is recognized by the Commission as having an agreement to coordinate operations and planning for improved reliability and efficiencies, including a Regional Transmission Organization or an Independent System Operator.</text> </paragraph><paragraph id="IDe398eb74f9e24660a4a458119c597d2b"><enum>(13)</enum><header>Recycled energy savings</header><text>The term <term>recycled energy savings</term> means a reduction in electricity or natural gas consumption that results from a modification of an industrial or commercial system that commenced operation before the date of enactment of this section, in order to recapture electrical, mechanical, or thermal energy that would otherwise be wasted, as determined in accordance with regulations promulgated by the Secretary.</text> </paragraph><paragraph id="ID58b77e9c2cca4184a5ac5eef74a0e0cc"><enum>(14)</enum><header>Reporting period</header><text>The term <term>reporting period</term> means—</text> <subparagraph id="IDf487877d49ce433f8d0d54d1ef4a2755"><enum>(A)</enum><text>calendar year 2013; and</text> </subparagraph><subparagraph id="ID5d8e91731a624d5f89a4775defc5f767"><enum>(B)</enum><text>each successive calendar year thereafter.</text> </subparagraph></paragraph><paragraph id="ID3a4c59f8b1074cf583b82c8f348c598f"><enum>(15)</enum><header>Retail electricity distributor</header> <subparagraph id="IDeab458cef12b4fb1babd64fb5c10c93f"><enum>(A)</enum><header>In general</header><text>The term <term>retail electricity distributor</term> means, for any calendar year, an electric utility that owns or operates an electric distribution facility and, using the facility, delivered not less than 4,000,000 megawatt-hours of electric energy to electric consumers for purposes other than resale during the most recent 2-calendar-year period for which data are available.</text> </subparagraph><subparagraph id="IDce4036213c6e4276ba1e13a1c31866be"><enum>(B)</enum><header>Administration</header><text>For purposes of determining whether an electric utility qualifies as a retail electricity distributor under subparagraph (A)—</text> <clause id="ID811bb92b28ca4491b09a2f7d1fd7fba0"><enum>(i)</enum><text>deliveries by any affiliate of an electric utility to electric consumers for purposes other than resale shall be considered to be deliveries by the electric utility; and</text> </clause><clause id="IDec85c34eefb74133ad615d1183b5784d"><enum>(ii)</enum><text>deliveries by any electric utility to a lessee, tenant, or affiliate of the electric utility shall not be treated as deliveries to electric consumers.</text> </clause></subparagraph></paragraph><paragraph id="ID1cc1aab207364033afde81dde5fb3f7b"><enum>(16)</enum><header>Retail natural gas distributor</header> <subparagraph id="ID4deeb725fc3145f3a74cd8f0fb499180"><enum>(A)</enum><header>In general</header><text>The term <term>retail natural gas distributor</term> means, for any given calendar year, a local distribution company (as defined in section 2 of the Natural Gas Policy Act of 1978 (15 U.S.C. 3301)), that delivered to natural gas consumers more than 5,000,000,000 cubic feet of natural gas during the most recent 2-calendar-year period for which data are available.</text> </subparagraph><subparagraph id="ID451396e22ab24ef0ab53c3dfb8769927"><enum>(B)</enum><header>Administration</header><text>For purposes of determining whether a person qualifies as a retail natural gas distributor under subparagraph (A)—</text> <clause id="ID2dbd340e3a2643e28acdaf0302bfd54e"><enum>(i)</enum><text>deliveries of natural gas by any affiliate of a local distribution company to consumers for purposes other than resale shall be considered to be deliveries by the local distribution company; and</text> </clause><clause id="ID630ea5cf96674d5592d5c208c04e6f7d"><enum>(ii)</enum><text>deliveries of natural gas to a lessee, tenant, or affiliate of a local distribution company shall not be treated as deliveries to natural gas consumers.</text> </clause></subparagraph></paragraph><paragraph id="IDb7d9a765495f40f9acb5ae8ace008570"><enum>(17)</enum><header>Third-party efficiency provider</header><text>The term <term>third-party efficiency provider</term> means any retailer, building owner, energy service company, financial institution or other commercial, industrial or nonprofit entity that is capable of providing electricity savings or natural gas savings in accordance with subsections (e) and (f).</text> </paragraph></subsection><subsection id="ID3c16ce65071e45649b280cbde59a322f"><enum>(b)</enum><header>Establishment of program</header><text>Not later than 18 months after the date of enactment of this section, the Secretary shall, by regulation, establish a program to implement and enforce this section, including—</text> <paragraph id="ID3c73b24f6ee64065a0cb569a730e8456"><enum>(1)</enum><text>measurement and verification procedures and standards under subsection (f);</text> </paragraph><paragraph id="ID02a69a8dfbb04129b711c8b2944b4c3a"><enum>(2)</enum><text>requirements under which retail electricity distributors and retail natural gas distributors shall—</text> <subparagraph id="idAF04D4C80EE7441A8854313DB1768814"><enum>(A)</enum><text>demonstrate, document, and report compliance with the performance standards established under subsection (d); and</text> </subparagraph><subparagraph id="id9AE37B7AB138457AAE0DE2AE256A2BF6"><enum>(B)</enum><text>estimate the impact of the standards on current and future electricity and natural gas use in the service territories of the retail electricity distributors and retail natural gas distributors, respectively; and</text> </subparagraph></paragraph><paragraph id="ID6f7ee36695624d1d83dddc45e5723c82"><enum>(3)</enum><text>requirements governing applications for, and implementation of, delegated State administration under subsection (h).</text> </paragraph></subsection><subsection id="ID648513e0a6aa41cda957d2b411b0b0be"><enum>(c)</enum><header>Coordination with State programs</header><text>In establishing and implementing the program established under this section, the Secretary, in coordination with the Administrator, shall, to the maximum extent practicable, preserve the integrity, and incorporate the best practices, of existing State energy efficiency programs.</text> </subsection><subsection id="IDdfa69eaf574344f68407d2be7d1a0ac0"><enum>(d)</enum><header>Performance standards</header> <paragraph id="IDe00c9db028724c42a463d630e60c8d42"><enum>(1)</enum><header>Compliance obligation</header><text>Not later than April 1 of the calendar year immediately following each reporting period—</text> <subparagraph id="IDdd6d099c226847c1ba09abb98acd30b1"><enum>(A)</enum><text>each retail electricity distributor shall submit to the Secretary a report, in accordance with regulations promulgated by the Secretary, demonstrating that the retail electricity distributor has achieved cumulative electricity savings (adjusted to account for any attrition of savings measures implemented in prior years) in each calendar year that are least equal to the applicable percentage, established under paragraph (2), (3), or (4), of the base quantity of the retail electricity distributor; and</text> </subparagraph><subparagraph id="ID79c02b12e54d4417b94266b88ba43617"><enum>(B)</enum><text>each retail natural gas distributor shall submit to the Secretary a report, in accordance with regulations promulgated by the Secretary, demonstrating that the retail natural gas distributor has achieved cumulative natural gas savings (adjusted to account for any attrition of savings measures implemented in prior years) in each calendar year compared to the base quantity of the retail natural gas distributor.</text> </subparagraph></paragraph><paragraph id="IDd1a0e78c78084b139347e2e1b9bd7d26"><enum>(2)</enum><header>Standards for 2012 through 2020</header><text>For purposes of paragraph (1), for each of calendar years 2012 through 2020, the applicable percentages shall be as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="231pts" min-data-value="55"></colspec><colspec align="justify" coldef="fig" colname="column2" colwidth="190pts" min-data-value="5"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Cumulative Electricity</bold></entry> </row> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>Calendar years:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Savings Percentage:</bold></entry> </row> </thead> <tbody> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2012</entry><entry align="right" colname="column2" rowsep="0">1.5</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">2.5</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="column2" rowsep="0">3.5</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="column2" rowsep="0">4.5</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry align="right" colname="column2" rowsep="0">5.5</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2017</entry><entry align="right" colname="column2" rowsep="0">6.5</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2018</entry><entry align="right" colname="column2" rowsep="0">7.5</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2019</entry><entry align="right" colname="column2" rowsep="0">8.5</entry> </row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2020</entry><entry align="right" colname="column2" rowsep="0">9.5</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="ID896034adafdc4924afdb93d88d4554a9"><enum>(3)</enum><header>Subsequent years</header> <subparagraph id="IDe81669809e4f4a2d9e131a02b5f4a2d0"><enum>(A)</enum><header>Calendar years 2021 through 2030</header><text>Not later than December 31, 2015, the Secretary shall promulgate regulations establishing performance standards (expressed as applicable percentages of base quantity for both cumulative electricity savings and cumulative natural gas savings) for each of calendar years 2021 through 2030.</text> </subparagraph><subparagraph id="IDca9f0bbceb2748748a75a458207c9556"><enum>(B)</enum><header>Subsequent extensions</header><text>Except as provided in subparagraph (A), not later than December 31 of the penultimate reporting period for which performance standards have been established under this paragraph, the Secretary shall promulgate regulations establishing performance standards (expressed as applicable percentages of base quantity for both cumulative electricity savings and cumulative natural gas savings) for the 10-calendar-year period following the last calendar year for which performance standards previously were established.</text> </subparagraph><subparagraph id="ID82ef2289908744be91998728215d05df"><enum>(C)</enum><header>Requirements</header> <clause id="ID690a1a0a7a1741aa89e6127302f8595b"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), the Secretary shall establish standards under this paragraph at levels that reflect the maximum achievable level of cost-effective energy efficiency potential, taking into account—</text> <subclause id="ID3740b21c320e442897df5599802d2971"><enum>(I)</enum><text>cost-effective energy savings achieved by leading retail electricity distributors and retail natural gas distributors;</text> </subclause><subclause id="IDa19a1e3031a147138cc6e71cc7121862"><enum>(II)</enum><text>opportunities for new codes and standard savings;</text> </subclause><subclause id="IDef59e30b4407421d95a67de38abbb733"><enum>(III)</enum><text>technology improvements; and</text> </subclause><subclause id="ID731a5dba21c148a8a3ec1cdd3d737b0f"><enum>(IV)</enum><text>other indicators of cost-effective energy efficiency potential.</text> </subclause></clause><clause id="ID0c33691904544cb1a12bd049099c3f69"><enum>(ii)</enum><header>Minimum percentage</header><text>In no case shall the applicable percentages for any calendar year be lower than the applicable percentage for calendar year 2020 (including any increase in the standard for calendar year 2020 pursuant to paragraph (4)).</text> </clause></subparagraph></paragraph><paragraph id="ID7aedb194902a4fe59896004e3f24a865"><enum>(4)</enum><header>Midcourse review and adjustment of standards</header> <subparagraph id="ID1190ca2c16f64cbf808b88c042164a2d"><enum>(A)</enum><header>In general</header><text>Not later than December 31, 2014, and at 10-year intervals thereafter, the Secretary shall—</text> <clause id="IDad6b1bbf85a54b59a494af09884705cc"><enum>(i)</enum><text>review the most recent standards established under paragraph (2) or (3); and</text> </clause><clause id="ID66f246cafc2f44288851dfde9d0c5b89"><enum>(ii)</enum><text>by regulation, increase the standards if the Secretary determines that additional cost-effective energy efficiency potential is achievable, taking into account the factors described in paragraph (3)(C).</text> </clause></subparagraph><subparagraph id="IDeb023094829441b79f6f127a9201a51e"><enum>(B)</enum><header>Lead time</header><text>If the Secretary revises standards under this paragraph, the regulations shall provide adequate lead time to ensure that compliance with the increased standards is feasible.</text> </subparagraph></paragraph><paragraph id="ID5b6889c12b2d4d20812b61b79b32bb72"><enum>(5)</enum><header>Delay of submission for first reporting period</header> <subparagraph id="ID27f0e9fa8a194f5eae273fa22998e227"><enum>(A)</enum><header>In general</header><text>Notwithstanding paragraphs (1) and (2), for the 2013 reporting period, the Secretary may accept a request from a retail electricity distributor or a retail natural gas distributor to delay the required submission of documentation of part or all of the required savings for up to 2 years.</text> </subparagraph><subparagraph id="ID5839439459734d42bee9629216edd747"><enum>(B)</enum><header>Plan</header><text>The request for delay shall include a plan for coming into full compliance by the end of the 2013 through 2014 reporting period.</text> </subparagraph></paragraph></subsection><subsection id="IDb21002c7ade3436395033a9d32c835c2"><enum>(e)</enum><header>Transfers of electricity or natural gas savings</header> <paragraph id="ID565a28ea26b847aeac20dcdb7cde6965"><enum>(1)</enum><header>Bilateral contracts for savings transfers</header><text>Subject to the other provisions of this section, a retail electricity distributor or retail natural gas distributor may use electricity savings or natural gas savings purchased, pursuant to a bilateral contract, from another retail electricity distributor or retail natural gas distributor, a State, or a third-party efficiency provider to meet the applicable performance standard under subsection (d).</text> </paragraph><paragraph id="IDcfc79fa6b2b747359718bc250d4e33ce"><enum>(2)</enum><header>Requirements</header><text>Electricity or natural gas savings purchased and used for compliance pursuant to this subsection shall be—</text> <subparagraph id="IDf69e5fe54b0748d083465268bdec3c04"><enum>(A)</enum><text>measured and verified in accordance with subsection (f);</text> </subparagraph><subparagraph id="ID45a4ae954733457290ca1ae1642f3df7"><enum>(B)</enum><text>reported in accordance with subsection (d); and</text> </subparagraph><subparagraph id="ID2f61409f547c46709b66413a47bdae1f"><enum>(C)</enum><text>achieved within the same State as is served by the retail electricity distributor or retail natural gas distributor.</text> </subparagraph></paragraph><paragraph id="ID7fe9e4690f2f40e6887f55f8fe74eaf8"><enum>(3)</enum><header>Exception</header><text>Notwithstanding paragraph (2)(C), a State regulatory authority may authorize a retail electricity distributor or a retail natural gas distributor regulated by the State regulatory authority to purchase savings achieved in a different State, if—</text> <subparagraph id="ID2b0082e07bed4fa1982a3977d0266687"><enum>(A)</enum><text>the savings are achieved within the same power pool; and</text> </subparagraph><subparagraph id="ID38e23de9743d420382a3654518101df6"><enum>(B)</enum><text>the State regulatory authority that regulates the purchaser oversees the measurement and verification of the savings pursuant to the procedures and standards applicable in the State of the purchaser.</text> </subparagraph></paragraph><paragraph id="ID19064d5d3df84cb28628b7c848a8a107"><enum>(4)</enum><header>Regulatory approval</header><text>Nothing in this subsection limits or affects the authority of a State regulatory authority to require a retail electricity distributor or retail natural gas distributor that is regulated by the State regulatory authority to obtain the authorization or approval of the State regulatory authority for a contract for transfer of savings under this subsection.</text> </paragraph><paragraph id="ID46f7c01551a24876aaefa30ce26d55a7"><enum>(5)</enum><header>Limitations</header><text>In the interest of optimizing achievement of cost-effective efficiency potential, the Secretary may prescribe such limitations as the Secretary determines to be appropriate with respect to the proportion of the compliance obligation of a retail electricity or natural gas distributor, under the applicable performance standards under subsection (d), that may be met using electricity or natural gas savings that are purchased under this subsection.</text> </paragraph></subsection><subsection id="ID9b93bd5a572b43048b77303ee32efb6d"><enum>(f)</enum><header>Measurement and Verification of Savings</header><text>The regulations promulgated under subsection (b) shall include—</text> <paragraph id="IDafff33fe11824594928fce42379f2fef"><enum>(1)</enum><text>procedures and standards for defining and measuring electricity savings and natural gas savings that can be counted towards the performance standards established under subsection (d), which shall—</text> <subparagraph id="ID778ba793bc8241c7adec036cd8f37d1e"><enum>(A)</enum><text>specify the types of energy efficiency and energy conservation measures that can be counted;</text> </subparagraph><subparagraph id="IDdcffee8b3fd04ebe9782bf69cd86a80d"><enum>(B)</enum><text>require that energy consumption estimates for customer facilities or parts 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;</text> </subparagraph><subparagraph id="ID6a5336a313fd4dbfbf2f195aa6e504ec"><enum>(C)</enum><text>account for the useful life of measures;</text> </subparagraph><subparagraph id="IDb476b1a71e8f46cd8b18aa10f5f4e3df"><enum>(D)</enum><text>include considered savings values for specific, commonly used measures;</text> </subparagraph><subparagraph id="ID222b75f518e8407eb2eb8fe3f486236a"><enum>(E)</enum><text>allow for savings from a program to be estimated based on extrapolation from a representative sample of participating customers;</text> </subparagraph><subparagraph id="IDe5c74ca5fac14667a181d68b26a620fd"><enum>(F)</enum><text>include procedures for counting combined heat and power savings and recycled energy savings;</text> </subparagraph><subparagraph id="ID5bf2d58f522344608937b88eda4767b9"><enum>(G)</enum><text>establish methods for calculating codes and standards savings, including the use of verified compliance rates;</text> </subparagraph><subparagraph id="ID6b2973135817498ebd022247cfc14e18"><enum>(H)</enum><text>count only measures and savings that are additional to business-as-usual practices;</text> </subparagraph><subparagraph id="IDe07b530a90d44f93908b3624f3bd2c11"><enum>(I)</enum><text>except in the case of codes and standards savings, ensure that the retail electricity distributor or retail natural gas distributor claiming the savings played a significant role in achieving the savings (including through the activities of a designated agent of the distributor or through the purchase of transferred savings);</text> </subparagraph><subparagraph id="IDf9a2de69daec4c88a3b094a05e10dd0f"><enum>(J)</enum><text>avoid double-counting of savings used for compliance with this section and section 610, including transferred savings; and</text> </subparagraph><subparagraph id="ID2c4dffaf8d4c462d8793c4ceeba90f97"><enum>(K)</enum><text>include savings from programs administered by the retail electric or natural gas distributor that are funded by Federal, State, or other sources; and</text> </subparagraph></paragraph><paragraph id="ID71df3aa307e24271800e34af6d17c75f"><enum>(2)</enum><text>procedures and standards for third-party verification of reported electricity savings or natural gas savings.</text> </paragraph></subsection><subsection id="IDf2b17321906042d18318c4c79537eeaa"><enum>(g)</enum><header>Enforcement and judicial review</header> <paragraph id="ID9310d8df685e4394bd39e88e24f20da5"><enum>(1)</enum><header>Review of retail distributor reports</header> <subparagraph id="ID3e79290aa53a4d4890918e3e08674782"><enum>(A)</enum><header>In general</header><text>The Secretary shall review each report submitted to the Secretary by a retail electricity distributor or retail natural gas distributor under subsection (d) to verify that the applicable performance standards under that subsection have been met.</text> </subparagraph><subparagraph id="ID97ca40e372984ec2973278bb48e3687f"><enum>(B)</enum><header>Exclusions</header><text>In determining compliance with the applicable performance standards, the Secretary shall exclude reported electricity savings or natural gas savings that are not adequately demonstrated and documented, in accordance with the regulations promulgated under subsections (d), (e), and (f).</text> </subparagraph></paragraph><paragraph id="ID971a289f5ff84f2590b542967eaac2d1"><enum>(2)</enum><header>Penalty for failure to document adequate savings</header><text>If a retail electricity distributor or a retail natural gas distributor fails to demonstrate compliance with an applicable performance standard under subsection (d) or to pay to the State an applicable alternative compliance payment under subsection (h)(4), the Secretary shall assess against the retail electricity distributor or retail natural gas distributor a civil penalty for each such failure in an amount equal to, as adjusted for inflation in accordance with such regulations as the Secretary may promulgate—</text> <subparagraph id="IDe5e35e61511648a58c92740bca63244a"><enum>(A)</enum><text>$100 per megawatt-hour of electricity savings or alternative compliance payment that the retail electricity distributor failed to achieve or make, respectively; or</text> </subparagraph><subparagraph id="ID0bbe82a95e6a4fe3a0f9593b55b56c7a"><enum>(B)</enum><text>$10 per million Btu of natural gas savings or alternative compliance payment that the retail natural gas distributor failed to achieve or make, respectively.</text> </subparagraph></paragraph><paragraph id="IDc9a08327aebd440a89e67f7bf2c014f4"><enum>(3)</enum><header>Offsetting State penalties</header><text>The Secretary shall reduce the amount of any penalty under paragraph (2) by the amount paid by the applicable retail electricity distributor or retail natural gas distributor to a State for failure to comply with the requirements of a State energy efficiency resource standard during the same compliance period, if the State standard is—</text> <subparagraph id="IDd121238013a14101b7f0d5278b7a59d6"><enum>(A)</enum><text>comparable in type to the Federal standard established under this section; and</text> </subparagraph><subparagraph id="IDe951e56c96b44421aafc4ef8da6a1c41"><enum>(B)</enum><text>more stringent than the applicable performance standards under subsection (d).</text> </subparagraph></paragraph><paragraph id="IDebbc8505582e434585218c3217c4c7d7"><enum>(4)</enum><header>Enforcement procedures</header><text>The Secretary shall assess a civil penalty, as provided under paragraph (2), in accordance with the procedures described in section 333(d) of the Energy Policy and Conservation Act (42 U.S.C. 6303(d)).</text> </paragraph><paragraph id="ID9b102772f38a4bbdb6b5764dba393a0c"><enum>(5)</enum><header>Judicial review</header> <subparagraph id="IDa4bbe26b794e4cc799fdacd058493e41"><enum>(A)</enum><header>In general</header><text>Any person that will be adversely affected by a final action taken by the Secretary under this section, other than the assessment of a civil penalty, may use the procedures for review described in section 336(b) of the Energy Policy and Conservation Act (42 U.S.C. 6306(b)).</text> </subparagraph><subparagraph id="IDf61415c7bf164482b3f496a766250e5b"><enum>(B)</enum><header>Administration</header><text>For purposes of this paragraph, references to a rule in section 336(b) of the Energy Policy and Conservation Act (42 U.S.C. 6306(b)) shall be considered to refer also to all other final actions of the Secretary under this section other than the assessment of a civil penalty.</text> </subparagraph></paragraph></subsection><subsection id="ID1e06fd8727b548cbb7c6c434a24c0fde"><enum>(h)</enum><header>State administration</header> <paragraph id="ID059fe879fa564c7d898194e97b35cd12"><enum>(1)</enum><header>In general</header><text>On receipt of an application from the Governor of a State (including, for purposes of this subsection, the Mayor of the District of Columbia), the Secretary may delegate to the State the administration of this section within the territory of the State if the Secretary determines that the State will implement an energy efficiency program that meets or exceeds the requirements of this section, including—</text> <subparagraph id="ID77a894bf9f454402b07269e5f33c0575"><enum>(A)</enum><text>achieving electricity savings and natural gas savings at least as great as the savings required under the applicable performance standards established under subsection (d);</text> </subparagraph><subparagraph id="ID43f3b9d041ee4ad2afa6d065db18d826"><enum>(B)</enum><text>reviewing reports and verifying electricity savings and natural gas savings achieved in the State (including savings transferred from outside the State); and</text> </subparagraph><subparagraph id="IDa744e319cf2a4d02be10d4cbcb346784"><enum>(C)</enum><text>collecting any alternative compliance payments under paragraph (4) and using the payments to implement cost-effective efficiency programs.</text> </subparagraph></paragraph><paragraph id="ID01c239b4de0b459ab65c84c265593642"><enum>(2)</enum><header>Secretarial determination</header><text>The Secretary shall make a substantive determination approving or disapproving a State application, after public notice and comment, not later than 180 days after the date of receipt of a complete application.</text> </paragraph><paragraph id="ID6f5c080cc9154f62a9de0f748900ae44"><enum>(3)</enum><header>Alternative measurement and verification procedures and standards</header><text>As part of an application submitted under paragraph (1), a State may request to use alternative measurement and verification procedures and standards to the procedures and standards established under subsection (f), if the State demonstrates that the alternative procedures and standards provide a level of accuracy of measurement and verification that is at least equivalent to the Federal procedures and standards promulgated under subsection (f).</text> </paragraph><paragraph id="ID3caea22c106e48aa86f5daa93608f698"><enum>(4)</enum><header>Alternative compliance payments</header> <subparagraph id="ID5841718909614fd08d0f6191420ce62a"><enum>(A)</enum><header>In general</header><text>As part of an application submitted under paragraph (1), a State may permit retail electricity distributors or retail natural gas distributors to pay to the State, by not later than April 1 of the calendar year immediately following the applicable reporting period, an alternative compliance payment in an amount equal to, as adjusted for inflation in accordance with such regulations as the Secretary may promulgate, not less than—</text> <clause id="ID9fec254b192f41a19789e02d479d2ed7"><enum>(i)</enum><text>$50 per megawatt-hour of electricity savings needed to make up any deficit with regard to a compliance obligation under the applicable performance standard; or</text> </clause><clause id="IDa4ea9070451340ee96d02512e4fb979c"><enum>(ii)</enum><text>$5 per million Btu of natural gas savings needed to make up any deficit with regard to a compliance obligation under the applicable performance standard.</text> </clause></subparagraph><subparagraph id="IDdb45cca5c39f4003b9ae00f889fc4153"><enum>(B)</enum><header>Use of payments</header> <clause id="ID1792291752394b06a8ba6dc0868bf0f3"><enum>(i)</enum><header>In general</header><text>Alternative compliance payments collected by a State pursuant to subparagraph (A) shall be used by the State to administer the delegated authority of the State under this section and to implement cost-effective energy efficiency programs.</text> </clause><clause id="IDba4e3b1b6c714ae4bef93ba2ce0609b1"><enum>(ii)</enum><header>Programs</header><text>The programs shall—</text> <subclause id="ID97f2ee1fd18b478e9d6868a827274622"><enum>(I)</enum><text>to the maximum extent practicable, achieve electricity savings and natural gas savings in the State sufficient to make up the deficit associated with the alternative compliance payments; and</text> </subclause><subclause id="IDbb6e7614940f4dc8b7d43bbe35325d3e"><enum>(II)</enum><text>be measured and verified in accordance with the applicable procedures and standards under subsection (f) or paragraph (3), as the case may be.</text> </subclause></clause></subparagraph></paragraph><paragraph id="ID608133de6caf42e0ad4741a8b8e47446"><enum>(5)</enum><header>Review of State implementation</header> <subparagraph id="ID4948d93a97fb4e88b32548ffb39aa8e7"><enum>(A)</enum><header>Periodic review</header><text>Every 2 years, the Secretary shall review State implementation of this section for conformance with the requirements of this section in approximately <fraction>1/2</fraction> of the States that have received approval under this subsection to administer the program, so that each State shall be reviewed at least once every 4 years.</text> </subparagraph><subparagraph id="IDc3d11ca910c8476899d8c5ebf490b9b1"><enum>(B)</enum><header>Report</header><text>To facilitate the review, the Secretary may require the State to submit a report demonstrating the compliance of the State with the requirements of this section, including—</text> <clause id="IDd45ed9e7a7924fa7ae1a2cc7d836025d"><enum>(i)</enum><text>reports submitted by retail electricity distributors and retail natural gas distributors to the State demonstrating compliance with applicable performance standards;</text> </clause><clause id="ID7c837abdaf304a8e8d2abe35b398fb86"><enum>(ii)</enum><text>the impact of the standards on projected electricity and natural gas demand within the State;</text> </clause><clause id="ID0273a7ed0eb4443387fd7ea374b5e245"><enum>(iii)</enum><text>an accounting of the use of alternative compliance payments by the State and the resulting electricity savings and natural gas savings achieved; and</text> </clause><clause id="ID4a7cae1a85f94c99b180e50fc8863d7f"><enum>(iv)</enum><text>such other information as the Secretary determines appropriate.</text> </clause></subparagraph><subparagraph id="IDb3bb333148c94efea8f20c41bb03a51b"><enum>(C)</enum><header>Review on petition</header><text>Notwithstanding subparagraph (A), on the receipt of a public petition containing a credible allegation of substantial deficiencies, the Secretary shall promptly review the implementation by the State of delegated authority under this section.</text> </subparagraph><subparagraph id="IDf9e65782b1094546999cb6090ce020ae"><enum>(D)</enum><header>Deficiencies</header> <clause id="IDe0c9d69a2b9a49c5abe84ec6c7113107"><enum>(i)</enum><header>In general</header><text>If deficiencies are found in a review under this paragraph, the Secretary shall—</text> <subclause id="ID251fbd5142c84c5fb7ddb8e2d2d00a2e"><enum>(I)</enum><text>notify the State; and</text> </subclause><subclause id="ID5dd5f391eb5e428db8a6799bfe63e11b"><enum>(II)</enum><text>direct the State to correct the deficiencies and to report to the Secretary on progress not later than 180 days after the date of the receipt of review results.</text> </subclause></clause><clause id="ID2ea12eeee26a40edbdad454d21afcda8"><enum>(ii)</enum><header>Substantial deficiencies</header><text>If the deficiencies are substantial, the Secretary shall—</text> <subclause id="ID432551f05cd04301a50b1611afb88b99"><enum>(I)</enum><text>disallow such reported savings as the Secretary determines are not credible due to deficiencies;</text> </subclause><subclause id="ID14a2dc273f5c4c3ab67be438c422e8af"><enum>(II)</enum><text>re-review the State not later than 2 years after the date of the original review; and</text> </subclause><subclause id="ID539d3a45830c4c1c8545c69ab812f87f"><enum>(III)</enum><text>if substantial deficiencies remain uncorrected after the review provided for under subclause (II), revoke the authority of the State to administer the program established under this section.</text> </subclause></clause></subparagraph></paragraph><paragraph id="ID02b542cff8e748fab804dc2a880164bd"><enum>(6)</enum><header>Calls for revision of State applications</header><text>As a condition of maintaining the delegated authority of a State to administer this section, the Secretary may require the State to submit a revised application under paragraph (1) if the Secretary has—</text> <subparagraph id="IDf5624f30aca64f76ac57398c0e7f8997"><enum>(A)</enum><text>promulgated new or revised performance standards under subsection (d);</text> </subparagraph><subparagraph id="IDad72780926154c618e94c65eb385bbbb"><enum>(B)</enum><text>promulgated new or substantially revised measurement and verification procedures and standards under subsection (f); or</text> </subparagraph><subparagraph id="ID0daf89d324f54d0e8f9e6da3ae2ef74e"><enum>(C)</enum><text>otherwise substantially revised the program established under this section.</text> </subparagraph></paragraph></subsection><subsection id="IDe5cab2d208f2468f9e56fd8f708029a6"><enum>(i)</enum><header>Information and Reports</header><text>In accordance with section 13 of the Federal Energy Administration Act of 1974 (15 U.S.C. 772), the Secretary may require any retail electricity distributor, any retail natural gas distributor, any third-party efficiency provider, or such other entities as the Secretary considers appropriate, to provide any information the Secretary determines appropriate to carry out this section.</text> </subsection><subsection id="ID0ed9fa6c37594f9ea8df0c518cfcaadc"><enum>(j)</enum><header>State Law</header><text>Nothing in this section diminishes or qualifies any authority of a State or political subdivision of a State to adopt or enforce any law (including a regulation) respecting electricity savings or natural gas savings, including any law (including a regulation) establishing energy efficiency requirements that are more stringent than the requirements established under this section, except that no such law or regulation may relieve any person of any requirement otherwise applicable under this section.</text> </subsection><subsection id="IDf59a7043ca7e452a95aa726da6f02933"><enum>(k)</enum><header>Energy efficiency credits</header><text>The Secretary shall issue energy efficiency credits at the end of each calendar year to eligible retail electricity distributor for each kilowatt hour of electricity savings above the applicable percentage, established under paragraph (2), (3), or (4) of subsection (d), of the base quantity of the retail electricity distributor in a quantity that shall not exceed 15 percent of the minimum percentage required in each calendar year under section 610(b)(1)(B).</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID12893634b2d047b7a02c53972e7c7fd6"><enum>(b)</enum><header display-inline="yes-display-inline">Table of contents amendment</header><text display-inline="yes-display-inline">The table of contents of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) (as amended by section 301(b)) is amended by adding at the end of the items relating to title VI the following:</text> <quoted-block display-inline="no-display-inline" id="idA66E47E524C84507BB8DC074EEBC680C" style="OLC"> <toc> <toc-entry idref="id5F408A8DA1324FC28E8CECABF809E8F7" level="section">Sec. 611. Energy efficiency resource standard for retail electricity and natural gas distributors.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="id0032EE63088A4875B7F7CC8A804C15C6"><enum>303.</enum><header>Voluntary renewable energy markets</header> <subsection id="idEC1FDC73ACF44D6295271A6C6BFBA3E2"><enum>(a)</enum><header>In general</header><text>It is the policy of the United States to support the continued growth of voluntary renewable energy markets.</text> </subsection><subsection id="idA156AEDC9B12477FB2434F3E2D875EB6"><enum>(b)</enum><header>Administration</header><text>Nothing in this Act or the amendments made by this Act is intended to interfere with or prevent the continued operation and growth of the voluntary renewable energy market.</text> </subsection><subsection id="ID5eea149bbdf743d296907698e490740a"><enum>(c)</enum><header>Report on efficacy of voluntary renewable energy market</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report describing the efficacy of the voluntary renewable energy market in the context of the pollution reduction and investment programs under this Act and the amendments made by this Act, including—</text> <paragraph id="IDa4a8e05ee0854231b976101e2b683ea1"><enum>(1)</enum><text>whether meaningful reductions in carbon dioxide emissions have occurred in response to investments in the voluntary renewable energy market;</text> </paragraph><paragraph id="ID7e8063b15d144694831c286798c4d550"><enum>(2)</enum><text>whether the voluntary market continues to grow; and</text> </paragraph><paragraph id="ID02018233f481411ab36d6bd6bea74551"><enum>(3)</enum><text>a list of recommended strategies for ensuring that—</text> <subparagraph id="IDccd35c3dc1df424fadb87d368671e4bf"><enum>(A)</enum><text>meaningful emissions reductions may occur; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe85b676f72ea4101bd63e85f9df7b23f"><enum>(B)</enum><text>the voluntary renewable energy market may continue to grow.</text> </subparagraph></paragraph></subsection></section><enum>IV</enum><header>Wind energy</header> <section commented="no" display-inline="no-display-inline" id="idB533DE9EA22A4FA6BA5FA6DC61324A10" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Wind energy systems</header><text display-inline="no-display-inline">Section 14 of the Wind Energy Systems Act of 1980 (42 U.S.C. 9213) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id9AE13A759E8A4588AFEEF0BA5B233EFF" style="OLC"> <section commented="no" display-inline="no-display-inline" id="idEF2F3E05D86D4A99950A9E3D36201EA8" section-type="subsequent-section"><enum>14.</enum><header display-inline="yes-display-inline">Authorization of appropriations</header> <subsection commented="no" display-inline="no-display-inline" id="IDf81f3d441e2b45aeb5d18cd776c0e36f"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Secretary to carry out wind energy research, development, and deployment through the Energy Efficiency and Renewable Energy Office of the Department of Energy in accordance with this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="IDb59ea9677c324802aea7141e49693c98"><enum>(1)</enum><text display-inline="yes-display-inline">$275,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDc46a9e7766434c1fac91e752f26b31ab"><enum>(2)</enum><text display-inline="yes-display-inline">$446,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6c075b552a8c4e8ab2bf9ab2cd7a4c24"><enum>(3)</enum><text display-inline="yes-display-inline">$602,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID886e07bdf40643f3a4423f8f9f82ac81"><enum>(4)</enum><text display-inline="yes-display-inline">$698,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID36c3144a6d4348248119c7a96f466ede"><enum>(5)</enum><text display-inline="yes-display-inline">$794,500,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID978e0bbc9953462780d0b586f532301d"><enum>(b)</enum><header display-inline="yes-display-inline">Wind turbine technology and reliability</header><text display-inline="yes-display-inline">Of amounts made available under subsection (a), the Secretary shall use for land-based wind turbine technology and reliability—</text> <paragraph commented="no" display-inline="no-display-inline" id="ID406d9a7e63a14a4f905eea636e357841"><enum>(1)</enum><text display-inline="yes-display-inline">$30,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDdb7015f61f2f490dab2b6a1b03936299"><enum>(2)</enum><text display-inline="yes-display-inline">$50,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3e7dc6aa7d44420a916f24a550067968"><enum>(3)</enum><text display-inline="yes-display-inline">$70,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1064430480774145bfb806b69f11e3ba"><enum>(4)</enum><text display-inline="yes-display-inline">$80,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8ac2bc6f9de9498f8136ff60226c5e22"><enum>(5)</enum><text display-inline="yes-display-inline">$100,000,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID7ac6b0afdf1e47e68eb655b6819a9b3b"><enum>(c)</enum><header display-inline="yes-display-inline">Wind energy system integration and transmission development</header><text display-inline="yes-display-inline">Of amounts made available under subsection (a), the Secretary shall use for wind energy system integration and transmission development—</text> <paragraph commented="no" display-inline="no-display-inline" id="ID1a47f4a82947455cbd95e2ac92b79213"><enum>(1)</enum><text display-inline="yes-display-inline">$20,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd4716b97d14644dbb0641182fb612681"><enum>(2)</enum><text display-inline="yes-display-inline">$25,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID911f0dbe007649f8bbba6ff3f2b7cf3a"><enum>(3)</enum><text display-inline="yes-display-inline">$30,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID40a7863e02cd424493f012cba7f86517"><enum>(4)</enum><text display-inline="yes-display-inline">$35,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID291e11b4f66d426f91639a0ae67793f0"><enum>(5)</enum><text display-inline="yes-display-inline">$40,000,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDe6748530fd954578adbffbd6621b7d8e"><enum>(d)</enum><header display-inline="yes-display-inline">Advanced wind energy blades</header><text display-inline="yes-display-inline">Of amounts made available under subsection (a), the Secretary shall use for advanced wind blade design, materials, and manufacturing processes—</text> <paragraph commented="no" display-inline="no-display-inline" id="ID4139929c01844488bf5c7cba3310d4ed"><enum>(1)</enum><text display-inline="yes-display-inline">$50,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID870677e7a2e24e64a7f2911529fa3d8e"><enum>(2)</enum><text display-inline="yes-display-inline">$65,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7560ab449969405181c2b49a6342ddbb"><enum>(3)</enum><text display-inline="yes-display-inline">$75,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe805cd13059145c5b366e80caf7c8715"><enum>(4)</enum><text display-inline="yes-display-inline">$80,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0ea51cc6278f413f9be32413eb94b1a2"><enum>(5)</enum><text display-inline="yes-display-inline">$85,000,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDff2951d4cbf0468a82a88869b4ee5953"><enum>(e)</enum><header display-inline="yes-display-inline">Offshore wind</header><text display-inline="yes-display-inline">Of amounts made available under subsection (a), the Secretary shall use for accelerating the design, development, testing, and deployment of advanced offshore wind technology and supporting construction, operations, and maintenance infrastructure—</text> <paragraph commented="no" display-inline="no-display-inline" id="ID17ea63900df0413ca178083988b3fa62"><enum>(1)</enum><text display-inline="yes-display-inline">$100,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID23f8d42ad9ea4190a8be6f69c9420fc5"><enum>(2)</enum><text display-inline="yes-display-inline">$200,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID998ecd8724034601846187559b9540ce"><enum>(3)</enum><text display-inline="yes-display-inline">$300,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6f9bc49be8a84d0797cc3cc2215a31c4"><enum>(4)</enum><text display-inline="yes-display-inline">$350,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4e7d1085ce254618a87c04ef4c1be01a"><enum>(5)</enum><text display-inline="yes-display-inline">$400,000,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID559df82d415f47eb915156e722853a4f"><enum>(f)</enum><header display-inline="yes-display-inline">Wind powering america program</header><text display-inline="yes-display-inline">Of the amounts made available under subsection (a), the Secretary shall use for and support the Wind Powering America program outreach and technical assistance activities—</text> <paragraph commented="no" display-inline="no-display-inline" id="IDe5f5a02daf244fe39e9485465fdc2126"><enum>(1)</enum><text display-inline="yes-display-inline">$15,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID88a9aba3124a4448b5b3419ad49746c8"><enum>(2)</enum><text display-inline="yes-display-inline">$25,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7e520480bec344ac838f99ad39dea8ac"><enum>(3)</enum><text display-inline="yes-display-inline">$35,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDc034073aed5b45c782d8a08cad7d2c59"><enum>(4)</enum><text display-inline="yes-display-inline">$40,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1aa938ac78694894b4703cbf0b097118"><enum>(5)</enum><text display-inline="yes-display-inline">$45,000,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDa3b6226ee0094bc1a1e79319302d74b6"><enum>(g)</enum><header display-inline="yes-display-inline">Wind energy technical training and workforce development</header><text display-inline="yes-display-inline">Of the amounts made available under subsection (a), the Secretary shall use for and support the establishment of technical training programs with community colleges and technical schools—</text> <paragraph commented="no" display-inline="no-display-inline" id="IDa4474cbc666c44eb9f0555ca1464a243"><enum>(1)</enum><text display-inline="yes-display-inline">$40,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDaa375bd462c14a7ba1ea2b1d9c2313b0"><enum>(2)</enum><text display-inline="yes-display-inline">$55,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID61e3f40998154d4d8a7dd18fbed5d9ed"><enum>(3)</enum><text display-inline="yes-display-inline">$60,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe4546947cd2d4393a988e99bf0a8fc99"><enum>(4)</enum><text display-inline="yes-display-inline">$75,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7bee1ead4406460abe5ce5fca2ae8c56"><enum>(5)</enum><text display-inline="yes-display-inline">$80,000,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID7a2e103a58d745bd8b2a0b66329736cb"><enum>(h)</enum><header display-inline="yes-display-inline">Wind resource modeling and wind farm efficiency assessment</header><text display-inline="yes-display-inline">Of amounts made available under subsection (a), the Secretary shall use for wind resource modeling and wind farm efficiency assessment—</text> <paragraph commented="no" display-inline="no-display-inline" id="ID7cd7be17778f4500b11edce32295612c"><enum>(1)</enum><text display-inline="yes-display-inline">$5,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5ca717c0291545af8765010aaa4a4a88"><enum>(2)</enum><text display-inline="yes-display-inline">$6,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDff6de9b4cdbf44fc8582d22bcc99d246"><enum>(3)</enum><text display-inline="yes-display-inline">$7,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9bd817bedd9c463198ff8724d256725c"><enum>(4)</enum><text display-inline="yes-display-inline">$8,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe8d359dd96b74e549e5751daeb5a01ca"><enum>(5)</enum><text display-inline="yes-display-inline">$10,000,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9cfa3cbab05546e4869a09eb7c64c8e1"><enum>(i)</enum><header display-inline="yes-display-inline">Wind energy siting</header><text display-inline="yes-display-inline">Of amounts made available under subsection (a), the Secretary shall use for wind energy siting, including funding for public education on siting issues, studies on sound emissions and health effects, enhanced ground data modeling verification, and the creation of a national wind siting database—</text> <paragraph commented="no" display-inline="no-display-inline" id="ID4b683c0e8a364f8f8ed2be7c12f8cac1"><enum>(1)</enum><text display-inline="yes-display-inline">$6,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID310cf77c8f9a4f4085b4268d7d6226a0"><enum>(2)</enum><text display-inline="yes-display-inline">$8,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8798e64403da49b6906380711822608e"><enum>(3)</enum><text display-inline="yes-display-inline">$10,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID10358423a2074725a6515b8826757a88"><enum>(4)</enum><text display-inline="yes-display-inline">$13,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID408031b94afb4a60b8bade95eacf1db1"><enum>(5)</enum><text display-inline="yes-display-inline">$16,000,000 for fiscal year 2015.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDbc631f7ef04d42389704aa2a22ddbbee"><enum>(j)</enum><header display-inline="yes-display-inline">Small wind energy systems</header><text display-inline="yes-display-inline">Of amounts made available under subsection (a), the Secretary shall use for testing, demonstrating, and deploying small wind energy systems in rural school applications—</text> <paragraph commented="no" display-inline="no-display-inline" id="ID182e3b48c0ed4395892bf14198b07614"><enum>(1)</enum><text display-inline="yes-display-inline">$5,000,000 for fiscal year 2011;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe2306dbe4c1e4b85b6ed981b68508ee2"><enum>(2)</enum><text display-inline="yes-display-inline">$7,000,000 for fiscal year 2012;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID79b4a8ed4255462e809dac0a3e2388d5"><enum>(3)</enum><text display-inline="yes-display-inline">$9,000,000 for fiscal year 2013;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe23af8f81fca4d07a0483964936bc857"><enum>(4)</enum><text display-inline="yes-display-inline">$10,000,000 for fiscal year 2014; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1fe7f3043f9142e994170d146238825f"><enum>(5)</enum><text display-inline="yes-display-inline">$10,500,000 for fiscal year 2015.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section commented="no" display-inline="no-display-inline" id="ID43ce93dfd74b445e947a3eaf66febb1c"><enum>402.</enum><header display-inline="yes-display-inline">Wind energy development study</header><text display-inline="no-display-inline">The Secretary, in consultation with appropriate Federal and State agencies, shall conduct, and submit to Congress a report describing the results of, a study on methods to increase transmission line capacity for wind energy development.</text> </section><section commented="no" display-inline="no-display-inline" id="idCECFA23A373F4A1CB504E10958117DE9" section-type="subsequent-section"><enum>403.</enum><header display-inline="yes-display-inline">Removal of certain tax restrictions to promote expansion of capital for wind farm investment</header> <subsection commented="no" display-inline="no-display-inline" id="id274A5FCD524645779624B3343114E19D"><enum>(a)</enum><header display-inline="yes-display-inline">Exemption from passive loss rules</header> <paragraph commented="no" display-inline="no-display-inline" id="idFE8223C2E68B4B36AD45E7495F82F7A1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 469(c) of the Internal Revenue Code of 1986 (defining passive activity) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id061CB0B364B84A1098D3E47B09BDF7EC" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="idBEAFC64BEFB64B71968E5B7FE68366AE"><enum>(8)</enum><header display-inline="yes-display-inline">Certain renewable energy facilities</header><text display-inline="yes-display-inline">The term <term>passive activity</term> shall not include any trade or business involving ownership of 1 or more facilities described in section 45(d)(1).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id126B8FAB4264479695B009466653D641"><enum>(2)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendment made by this subsection shall apply to taxable years beginning after December 31, 2010.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB369FF2454024ED49BF73E0C18191C5C"><enum>(b)</enum><header display-inline="yes-display-inline">Application of at-Risk rules</header> <paragraph commented="no" display-inline="no-display-inline" id="id46282EC7CDA54D0E9DA296D34DE3F7F7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 465(b)(6) of the Internal Revenue Code of 1986 (relating to qualified nonrecourse financing treated as amount at risk) is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id33DB3FEA70E3448585D62A867CD90255"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>or renewable energy property</quote> after <quote>real property</quote> each place it appears in subparagraphs (A) and (B)(i), and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id914D773670194BCEB9F94BF0C59D8877"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id27A2A6650D0546EFB19F0F78A880F5DC" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="idAA5285E29D8E4CADB5A374921565F6D3"><enum>(F)</enum><header display-inline="yes-display-inline">Renewable energy property</header><text display-inline="yes-display-inline">The term <term>renewable energy property</term> means property described in section 45(d)(1).</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF9EEEB959A2148BB807F25EB88ED4E86"><enum>(2)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this subsection shall apply to losses incurred after December 31, 2010, with respect to property placed in service by the taxpayer after such date.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4D9416D9709540B7A8CAE4163E8939D6"><enum>(c)</enum><header display-inline="yes-display-inline">Treatment of income and gains from wind energy as qualifying income for publicly traded partnerships</header> <paragraph commented="no" display-inline="no-display-inline" id="id453C439FBC124C978A19F22A36DDAE75"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 7704(d) of the Internal Revenue Code of 1986 (defining qualifying income) is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="idC811EB5972C244CFB3B5AE59CE324707"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>wind energy,</quote> after <quote>fertilizer,</quote> in paragraph (1)(E), and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF49EBA94BE5B4416BB1562D5B8FF99FB"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="idC52BCE0EE9D240969733EC5F45FE3FFE" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="idA85C142C63394597A709C30F6253936A"><enum>(6)</enum><header display-inline="yes-display-inline">Wind energy</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(E), income and gains from wind energy include amounts realized from the sale of renewable energy credits, pollution allowances, and other environmental attributes.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id40FF7F2F9D95405C8025CA9A56AE585B"><enum>(2)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this subsection shall apply on the date of enactment of this Act.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2B1C0A5E8FF84048AFC932832733EC4C"><enum>(d)</enum><header display-inline="yes-display-inline">Anti-abuse rules</header><text display-inline="yes-display-inline">The Secretary of Treasury or the Secretary's designee shall prescribe such rules as are necessary to prevent the abuse of the purposes of the amendments made by this section.</text> </subsection></section><enum>V</enum><header>Renewable energy tax extensions</header> <section id="idC4ECC52B42C54B2993F13A1C41762C30" section-type="subsequent-section"><enum>501.</enum><header>Extension of provisions related to alcohol used as fuel</header> <subsection id="id76CA86FB67E44BBE9B8D20C3C3A447BC"><enum>(a)</enum><header>Extension of income tax credit for alcohol used as fuel</header> <paragraph id="idF6DE654DACA8488C85849F68D23D3D5E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 40(e) of the Internal Revenue Code of 1986 is amended—</text> <subparagraph id="ID52b3c599bfc7428cb659a4277246d458"><enum>(A)</enum><text>by striking <quote>December 31, 2010</quote> in subparagraph (A) and inserting <quote>December 31, 2015</quote>, and</text> </subparagraph><subparagraph id="IDdbf59f61965846f387baa02c0fadf320"><enum>(B)</enum><text>by striking <quote>January 1, 2011</quote> in subparagraph (B) and inserting <quote>January 1, 2016</quote>.</text> </subparagraph></paragraph><paragraph id="idB25D0863752C4B6784E4EC1B6E1B02AF"><enum>(2)</enum><header>Cellulosic biofuel</header><text>Subparagraph (H) of section 40(b)(6) of such Code is amended by striking <quote>January 1, 2013</quote> and inserting <quote>January 1, 2016</quote>.</text> </paragraph><paragraph id="id96981EA56C90422ABE153936186AC3EB"><enum>(3)</enum><header>Reduced amount for ethanol blenders</header><text>Paragraph (2) of section 40(h) of such Code is amended by striking <quote>2010</quote> and inserting <quote>2015</quote>.</text> </paragraph><paragraph id="idC1459AD98AB246BC90D2DA298687183F"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall take effect on the date of the enactment of this Act.</text> </paragraph></subsection><subsection id="id93E4B4C9C52F471F9797D6254D688212"><enum>(b)</enum><header>Extension of excise tax credit for alcohol used as fuel</header> <paragraph id="idBC8F55C9DF404A42BBEF47A3F37F19B2"><enum>(1)</enum><header>In general</header><text>Paragraph (6) of section 6426(b) of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2010</quote> and inserting <quote>December 31, 2015</quote>.</text> </paragraph><paragraph id="idAB2A5C7274074FFFAFDA59C64F6C1A98"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall take effect on the date of the enactment of this Act.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idFA7087722AFB4040ABBD57F4C319B15A"><enum>(c)</enum><header>Extension of additional duties on ethanol</header><text display-inline="yes-display-inline">Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff Schedule of the United States are each amended in the effective period column by striking <quote>1/1/2011</quote> and inserting <quote>1/1/2016</quote>.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="idDC95C96C409548B687239E98F620CF3C"><enum>502.</enum><header>Extension of time for grants for specified energy property</header> <subsection commented="no" display-inline="no-display-inline" id="id3CE7F21B8B834EEABDBBA86869A6C484"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 1603(a) of division B of the American Recovery and Reinvestment Act of 2009 is amended by striking <quote>began during 2009 or 2010</quote> and inserting <quote>begins before 2013</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idDB32BFFDB6F84566864305BE10ACB252"><enum>(b)</enum><header>Application deadline</header><text>Subsection (j) of section 1603(a) of division B of such Act is amended by striking <quote>October 1, 2011</quote> and inserting <quote>December 31, 2012</quote>.</text> </subsection></section><section id="id8EC8106395834CEC897BA9A0D3B53616"><enum>503.</enum><header>Incentives for biodiesel and renewable diesel</header> <subsection id="idC939B4657B9D4B76972A82CC6732EF94"><enum>(a)</enum><header>Credits for biodiesel and renewable diesel used as fuel</header><text>Subsection (g) of section 40A of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2009</quote> and inserting <quote>December 31, 2012</quote>.</text> </subsection><subsection id="id8BFE4B72C12A49EC9903FBAB50887A29"><enum>(b)</enum><header>Excise tax credits and outlay payments for biodiesel and renewable diesel fuel mixtures</header> <paragraph id="id2078BE18357A4891B3280F516F0F0BF3"><enum>(1)</enum><text>Paragraph (6) of section 6426(c) of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2009</quote> and inserting <quote>December 31, 2012</quote>.</text> </paragraph><paragraph id="id967BF8BDC0B243278A736896F0542BE5"><enum>(2)</enum><text>Subparagraph (B) of section 6427(e)(6) of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2009</quote> and inserting <quote>December 31, 2012</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5D87B9BAB5124929A432DA0D1F10F0AD"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to fuel sold or used after December 31, 2009.</text> </subsection></section><enum>VI</enum><header>Renewable electricity integration credit</header> <section id="id9B839944AA934106BA92CD3AB2640D05"><enum>601.</enum><header>Renewable electricity integration credit</header> <subsection id="ID2e5e464725bb42c1ae8fc5b5376e5a68"><enum>(a)</enum><header>Business Credit</header> <paragraph id="IDf93a050a208348a89181adf27bddaae6"><enum>(1)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="id56EAD3DB55664B6C8C5D771BB164FEEE" style="OLC"> <section id="ID91b6ac98b20049b0a5c20a62524afc7d"><enum>45S.</enum><header>Renewable electricity integration credit</header> <subsection id="ID6b263cabef62492b8a708111d905cbe0"><enum>(a)</enum><header>General Rule</header><text>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—</text> <paragraph id="IDf0804cc413a34af08f093604eeb5c80f"><enum>(1)</enum><text>the intermittent renewable portfolio factor of such eligible taxpayer, and</text> </paragraph><paragraph id="IDd3e4628d008f40f7abd2ba0cf0e52f68"><enum>(2)</enum><text>the number of kilowatt hours of renewable electricity—</text> <subparagraph id="IDb60626c6db164c7f822034ca41507170"><enum>(A)</enum><text>purchased or produced by such taxpayer, and</text> </subparagraph><subparagraph id="ID054ffa969ae24060ab047ace23b78d8e"><enum>(B)</enum><text>sold by such taxpayer to a retail customer during the taxable year.</text> </subparagraph></paragraph></subsection><subsection id="idD2DA94305FBE407DBCE48EC65327D294"><enum>(b)</enum><header>Intermittent renewable portfolio factor</header> <paragraph id="idBA7A82580E18498A902886BA09C66668"><enum>(1)</enum><header>Years before 2017</header><text>In the case of taxable years beginning before January 1, 2017, the intermittent renewable portfolio factor for an eligible taxpayer shall be determined as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 3 text, even cols" table-type=""> <tgroup cols="3" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.10"><colspec coldef="txt" colname="column1" colwidth="105pts" min-data-value="95" rowsep="0"></colspec><colspec coldef="txt-no-ldr" colname="column2" colwidth="105pts" min-data-value="95" rowsep="0"></colspec><colspec coldef="txt-no-ldr" colname="column3" colwidth="105pts" min-data-value="95" rowsep="0"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>In the case of an eligible taxpayer whose intermittent renewable electricity percentage is:</bold></entry><entry align="left" colname="column2" morerows="0" namest="column2"><bold>For taxable years beginning before 2012, the intermittent renewable portfolio factor is:</bold></entry><entry align="left" colname="column3" morerows="0" namest="column3"><bold>For taxable years beginning in or after 2012, the intermittent renewable portfolio factor is:</bold></entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr">Less than 4 percent</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">zero cents</entry><entry colname="column3" leader-modify="clr-ldr" rowsep="0">zero cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 4 percent but less than 8 percent</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">0.1 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">zero cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 8 percent but less than 12 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.2 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.2 cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 12 percent but less than 16 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.3 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.3 cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 16 percent but less than 20 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.4 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.4 cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 20 percent but less than 24 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.5 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.5 cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Equal to or greater than 24 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.6 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.6 cents</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="id88C9C11347F2400DAB371744E2A7E14C"><enum>(2)</enum><header>Years after 2016</header><text>In the case of taxable years beginning after December 31, 2016, the intermittent renewable portfolio factor for an eligible taxpayer shall be determined as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 3 text, even cols" table-type=""> <tgroup cols="3" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.10"><colspec coldef="txt" colname="column1" colwidth="105pts" min-data-value="95" rowsep="0"></colspec><colspec coldef="txt-no-ldr" colname="column2" colwidth="105pts" min-data-value="95" rowsep="0"></colspec><colspec coldef="txt-no-ldr" colname="column3" colwidth="105pts" min-data-value="95" rowsep="0"></colspec> <thead> <row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>In the case of an eligible taxpayer whose intermittent renewable electricity percentage is:</bold></entry><entry align="left" colname="column2" morerows="0" namest="column2"><bold>For taxable years beginning before 2019, the intermittent renewable portfolio factor is:</bold></entry><entry align="left" colname="column3" morerows="0" namest="column3"><bold>For taxable years beginning in or after 2019, the intermittent renewable portfolio factor is:</bold></entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr">Less than 10 percent</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">zero cents</entry><entry colname="column3" leader-modify="clr-ldr" rowsep="0">zero cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 10 percent but less than 12 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.2 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">zero cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 12 percent but less than 16 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.3 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.15 cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 16 percent but less than 20 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.4 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.4 cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 20 percent but less than 24 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.5 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.5 cents</entry> </row> <row><entry align="left" colname="column1" leader-modify="force-ldr-bottom" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Equal to or greater than 24 percent</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">0.6 cents</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">0.6 cents</entry> </row> </tbody> </tgroup> </table> </paragraph></subsection><subsection id="IDea3f1623b74f45e5a249a30f37c68962"><enum>(c)</enum><header>Definitions and special rules</header><text>For purposes of this section—</text> <paragraph id="ID8a09a91906ba419fb67f569bbd92c3ff"><enum>(1)</enum><header>Eligible taxpayer</header><text>The term <term>eligible taxpayer</term> means an electric utility (as defined in section 3(22) of the Federal Power Act, (16 U.S.C. 796(22)).</text> </paragraph><paragraph id="ID5032c188a60f4b8e9021755977e31ae3"><enum>(2)</enum><header>Renewable electricity</header><text>The term <term>renewable electricity</term> means electricity generated by—</text> <subparagraph id="IDdd8d89c5a26e4c5da9cd6cbdca9bc03d"><enum>(A)</enum><text>any facility using wind to generate such electricity;</text> </subparagraph><subparagraph id="ID039dc6a9cc6d47ee9f0bf67373303794"><enum>(B)</enum><text>any facility using solar energy to generate such electricity; or</text> </subparagraph><subparagraph id="ID6425e48cf045404389e1b517f07c5839"><enum>(C)</enum><text>any facility using any other intermittent renewable energy source which the Secretary of Energy determines has a capacity factor of less than 50 percent on an annual basis.</text> </subparagraph></paragraph><paragraph id="IDe7dfcf91762e4257943274505d09e663"><enum>(3)</enum><header>Intermittent renewable electricity percentage</header><text>The term <term>intermittent renewable electricity percentage</term> means the percentage of an eligible taxpayer’s total sales of electricity to retail customers that is derived from renewable electricity (determine without regard to whether such electricity was produced by the taxpayer).</text> </paragraph><paragraph id="IDb27bbae9bbfe46918ed2f9075d951362"><enum>(4)</enum><header>Application of other rules</header><text>For purposes of this section, rules similar to the rules of paragraphs (1), (3), and (5) of section 45(e) shall apply.</text> </paragraph><paragraph id="IDd26322ad962d4c17b9c186b5efa793a4"><enum>(5)</enum><header>Credit allowed only with respect to 1 eligible entity</header><text>No credit shall be allowed under subsection (a) with respect to renewable electricity purchased from another eligible entity if a credit has been allowed under this section or a payment has been made under section 6433 to such other eligible entity.</text> </paragraph></subsection><subsection id="ID0282447d200b46d29966d6f0feb57bc7"><enum>(d)</enum><header>Credit disallowed unless credit passed to third party generators charged for integration costs</header> <paragraph id="ID497a051420654dc68848ba2874bb654b"><enum>(1)</enum><header>In general</header><text>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 recover the integration costs associated with such electricity has been reduced (but not below zero) to the extent of the credit received under subsection (a) associated with such electricity.</text> </paragraph><paragraph id="ID40ae84f553ab4b929da89e0b16aadc3d"><enum>(2)</enum><header>Definitions</header><text>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.</text> </paragraph></subsection><subsection id="IDe71e5adc32aa4b53a16e6fd9dd1d2f0b"><enum>(e)</enum><header>Coordination With Payments</header><text>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.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="ID6d64aaa52a7743cfa6be9e4ec6aa44fb"><enum>(2)</enum><header>Credit made part of general business credit</header><text>Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended by striking <quote>plus</quote> at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id1BB023CB39594815894C742E85321A41" style="OLC"> <paragraph id="IDe0ffd4cb0d9d40da9e19e769e21ab83c"><enum>(37)</enum><text>the renewable electricity integration credit determined under section 45S(a).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="ID12b024a22f6e4dd3b22c8a6e74da0915"><enum>(3)</enum><header>Specified credit</header><text>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), respectively, and by inserting after clause (v) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="id24EECE5D831E410ABDB219CDF5A80954" style="OLC"> <clause id="ID9b56bf80efb44e5badeba93588c8c681"><enum>(vi)</enum><text>the credit determined under section 45S.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="ID94b35a960ece47dcbd405f64be834e19"><enum>(4)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:</text> <quoted-block id="idc5fb6116-ca65-4531-94c7-1ce00dc49a48" style="OLC"> <toc> <toc-entry idref="ID91b6ac98b20049b0a5c20a62524afc7d" level="section">Sec. 45S. Renewable electricity integration credit.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="IDc797ee76c8a24768b7e8ef15f8b3291c"><enum>(b)</enum><header>Payments in Lieu of Credit</header> <paragraph id="ID9927dd2e553448c582302b8a6086b2f1"><enum>(1)</enum><header>In general</header><text>Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="idAA01B17BA94848DAB3104EC80D37494B" style="OLC"> <section id="ID4e486cced19d484daab36c9a11752c6b"><enum>6433.</enum><header>Renewable electricity integration payments</header> <subsection id="ID7217ed5dd84d438794ba2891d5d733ff"><enum>(a)</enum><header>In General</header><text>If any eligible person sells renewable 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—</text> <paragraph id="ID34a7c9aa4b464f94bf3811fe6426ef88"><enum>(1)</enum><text>the intermittent renewable portfolio factor of such eligible person; and</text> </paragraph><paragraph id="ID8188ffd901b14edfa2fc0b651e70824e"><enum>(2)</enum><text>the number of kilowatt hours of renewable electricity—</text> <subparagraph id="ID81dfe83d7563446885b1ec968913c998"><enum>(A)</enum><text>purchased or produced by such person; and</text> </subparagraph><subparagraph id="ID2055c33f60724507ace31893cbf5ceb6"><enum>(B)</enum><text>sold by such person in the trade or business of such person to a retail customer.</text> </subparagraph></paragraph></subsection><subsection id="ID87bcdd7baa244152a95e7aa95790535a"><enum>(b)</enum><header>Timing of Payments</header> <paragraph id="ID0bd674a9f21f42e99b3b17994477b2d1"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), rules similar to the rules of section 6427(i)(1) shall apply for purposes of this section.</text> </paragraph><paragraph id="IDbe54d12b06ab456ea1d1db6fde916e90"><enum>(2)</enum><header>Quarterly payments</header> <subparagraph id="IDd345ca71d5ff4f968a07f8e47e7dd062"><enum>(A)</enum><header>In general</header><text>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—</text> <clause id="IDea41ec26940f4e07adc824402faa4578"><enum>(i)</enum><text>such quarter; or</text> </clause><clause id="ID62b6ce35202b4794a87b240829c1c085"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="ID062f702fb036414f941c55c9e2f83acc"><enum>(B)</enum><header>Time for filing claim</header><text>No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.</text> </subparagraph></paragraph></subsection><subsection id="ID057a898461bd439ea6cc0dd5b55aa923"><enum>(c)</enum><header>Definitions and Special Rules</header><text>For purposes of this section:</text> <paragraph id="ID32a7ae3eac4e4824b063e7fa5a4fddba"><enum>(1)</enum><header>Eligible person</header><text>The term <term>eligible person</term> means an electric utility (as defined in section 3(22) of the Federal Power Act, (16 U.S.C. 796(22)).</text> </paragraph><paragraph id="ID24862144ad0c41569a1446b54fea3bfb"><enum>(2)</enum><header>Other definitions</header><text>Any term used in this section which is also used in section 45S shall have the meaning given such term under section 45S.</text> </paragraph><paragraph id="ID4f0c2385336f47c889d776bdb9707301"><enum>(3)</enum><header>Application of other rules</header><text>For purposes of this section, rules similar to the rules of paragraphs (1) and (3) of section 45(e) shall apply.</text> </paragraph></subsection><subsection id="ID7e2078102cde47e88f4fa1f659b02d9c"><enum>(d)</enum><header>Payment Disallowed Unless Amount Passed to Third Party Generators Charged for Integration Costs</header> <paragraph id="IDb65617bd42ad48ff8696d0706daa7ce5"><enum>(1)</enum><header>In general</header><text>In the case of renewable electricity eligible for the payment under subsection (a) that is purchased and not produced by an eligible person, no payment shall be made under this section unless any charge the eligible person has assessed the seller to recover the integration costs associated with such electricity has been reduced (but not below zero) to the extent of the payment received under subsection (a) associated with such electricity.</text> </paragraph><paragraph id="ID5dd24d2b0f4e42f49198c273773b04e5"><enum>(2)</enum><header>Definitions</header><text>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.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="IDe45efe7764d34664b4160f03530ae4c8"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for subpart B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:</text> <quoted-block id="ide76fa389-b2f5-4063-af77-dd24dd2f4799" style="OLC"> <toc> <toc-entry idref="ID4e486cced19d484daab36c9a11752c6b" level="section">Sec. 6433. Renewable electricity integration payments.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="ID95f5f29cac7740c78f9c06775ac43ed6"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to electricity produced or purchased after December 31, 2009.</text> </subsection></section>