1.Short
title; table of contents
(a)This Act may be cited
as the Securing America’s Future with
Energy and Sustainable Technologies Act
.
(b)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. Loan guarantees for projects to construct renewable
fuel pipelines.
Sec. 202. Open fuel standard for transportation.
Sec. 203. Tax incentives for qualified blender
pumps.
Sec. 204. Blender pump installation.
TITLE III—Renewable energy tax extensions
Sec. 301. Modification of credit for alcohol used as
fuel.
Sec. 302. Reform of biodiesel income tax
incentives.
Sec. 303. Reform of biodiesel excise tax
incentives.
Sec. 304. Biodiesel treated as taxable fuel.
TITLE IV—Renewable electricity integration credit
Sec. 401. Renewable electricity integration credit.
TITLE V—Wind energy
Sec. 501. Removal of certain tax restrictions to promote
expansion of capital for wind farm investment.
TITLE VI—Renewable electricity and energy efficiency resource
standards
Sec. 601. Renewable electricity and energy efficiency resource
standards.
Sec. 602. Energy efficiency resource standard for retail
electricity and natural gas distributors.
Sec. 603. Voluntary renewable energy markets.
2.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="ID3628c28a552f49c2bb420d339e126aaa"><enum>201.</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="IDb805f20fb20241b69bd2d7765f739789"><enum>(c)</enum><header>Reasonable
prospect of repayment</header><text>Section 1702(d) of the Energy Policy Act of
2005 (42 U.S.C. 16512(d)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id284E5EA332E5498B8C8BE8199799040F" style="OLC">
<paragraph id="ID4ed60c679023401e8ae5429eda72ca4e"><enum>(4)</enum><header>Renewable fuel
pipeline</header><text>In determining under paragraph (1) whether there is a
reasonable prospect of repayment with respect to a renewable fuel pipeline
project described in section 1703(b)(11), the Secretary shall not require a
demonstration of existing contractual obligations for a specific minimum
capacity of pipeline
usage.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID1c79158ad5de43e286b80eebef55c27b"><enum>(d)</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="ID66de9ff80e0f4483b14a87050b6c4024"><enum>(e)</enum><header>Rapid
deployment of renewable fuel</header><text>Section 1705 of the Energy Policy
Act of 2005 (42 U.S.C. 16516) is amended—</text>
<paragraph id="idC258228436A640959D5FDE5DFFD42D02"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="IDd2e1fe97362b4261b2c24c61290956c9"><enum>(A)</enum><text>in the matter
preceding paragraph (1), by inserting <quote>or, in the case of projects
described in paragraph (4), September 30, 2013</quote> before the colon at the
end; and</text>
</subparagraph><subparagraph id="id884DD1E1B35E4FD5938EEE2EDB1BED89"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA1625D23C6FF4A30943429FAAB205E89" style="OLC">
<paragraph id="ID6ae56d7c64d24dab91708e2358deee42"><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 through loan guarantees in an amount
equal to 80 percent of the cost.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id188F3FD49B82468C86F359DB4BB7B5D4"><enum>(2)</enum><text>in subsection
(e), by inserting <quote>‘or, in the case of projects described in subsection
(a)(4), September 30, 2013</quote>’ before the period at the end.</text>
</paragraph></subsection><subsection id="IDa5f7ae123c5b4eff8b74ef65921ac70c"><enum>(f)</enum><header>Regulations</header><text>Not
later than 90 days after the date of enactment of this Act, the Secretary of
Energy shall issue such regulations as are necessary to carry out the
amendments made by this section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idEC042E07BC6347569BAF35917F80EF1F" section-type="subsequent-section"><enum>202.</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="idFCF701EB25364F7F910F2B559D6378D6"><enum>(1)</enum><header>E<enum-in-header>85</enum-in-header></header><text>The
term <term>E85</term> means a fuel mixture containing approximately 85 percent
ethanol and 15 percent gasoline or a special fuel 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="idF1FE9CC4244F41478924F48B8E9703EC"><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 1 or more of the following 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:</text>
<clause id="id080AC212E77F4B4EB1353349B527B8E0"><enum>(i)</enum><text>A
disruption in the supply of any component required for compliance with the
regulations.</text>
</clause><clause id="idB72B1C5559B74550ABAFC2FF33AB5491"><enum>(ii)</enum><text>A disruption in
the use and installation by the manufacturer of such component.</text>
</clause><clause id="id164417A3AF694234B0A9929CD1B93DAC"><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 id="id317237B5B5CD45E28024E6523F5DA240"><enum>203.</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><section commented="no" display-inline="no-display-inline" id="idA97A8787E20B42EABF9B81D367C8CC16"><enum>204.</enum><header>Blender pump
installation</header>
<subsection id="ID00401548515446aeb02452def7e2d1df"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="idB3B36A46AAB4440FBFAF1D6239335D2F"><enum>(1)</enum><header>Blender
pump</header><text>The term <term>blender pump</term> means an automotive fuel
dispensing pump capable of dispensing at least 3 different blends of gasoline
and ethanol, as selected by the pump operator, including blends ranging from 0
percent ethanol to 85 percent denatured ethanol, as determined by the
Secretary.</text>
</paragraph><paragraph id="id9845CCE56BB443368AD3A040CCCD45D4"><enum>(2)</enum><header>Covered
entity</header><text>The term <term>covered entity</term> means an individual
or entity that owns or manages 10 or more retail fueling stations.</text>
</paragraph><paragraph id="idBED784B4C3A4482195D8D082A2712181"><enum>(3)</enum><header>E–85
fuel</header><text>The term <term>E–85 fuel</term> means a blend of gasoline
approximately 85 percent of the content of which is ethanol.</text>
</paragraph><paragraph id="idF9AFD5F3B03646668C3EE2EEBFA48823"><enum>(4)</enum><header>Ethanol fuel
blend</header><text>The term <term>ethanol fuel blend</term> means a blend of
gasoline or a special fuel and ethanol, with a minimum of 0 percent and maximum
of 85 percent of the content of which is denatured ethanol.</text>
</paragraph></subsection><subsection id="ID49c1aa0c4640420aab7dff380f5445f4"><enum>(b)</enum><header>Mandate</header>
<paragraph id="id2A46C4E4DA8A4BDFA1A6DA2DC2976430"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the Secretary shall, by
regulation, require each covered entity to install, at each retail fueling
station owned or managed by the covered entity, as a replacement for each pump
at the retail fueling station that requires replacement after the effective
date described in paragraph (2)—</text>
<subparagraph id="idF0E24796519A4C32B6A52AB4BF4E545F"><enum>(A)</enum><text>a blender pump;
and</text>
</subparagraph><subparagraph id="id676C66E3F9EE4CFE939367D6B6B93658"><enum>(B)</enum><text>all blender pump
fuel infrastructure, including infrastructure necessary—</text>
<clause id="ID4484b3ace5f1460fa68a05326e360bb2"><enum>(i)</enum><text>for
the direct retail sale of ethanol fuel blends (including E–85 fuel), including
blender pumps, transmission lines, and storage tanks; and</text>
</clause><clause id="IDe846be66a0af432585351fb26b5d2843"><enum>(ii)</enum><text>to
directly market ethanol fuel blends (including E–85 fuel) to gas retailers,
including inline blending equipment, pumps, storage tanks, and loadout
equipment.</text>
</clause></subparagraph></paragraph><paragraph id="idCA87E89D0A4745158227207395882CD0"><enum>(2)</enum><header>Effective
date</header><text>The effective date of the regulations described in paragraph
(1) shall be January 1, 2013.</text>
</paragraph></subsection></section><enum>III</enum><header>Renewable
energy tax extensions</header>
<section id="idBC6DFF5FBC084EB883154F7C787F6CD2" section-type="subsequent-section"><enum>301.</enum><header>Modification of
credit for alcohol used as fuel</header>
<subsection id="idA8E9520067A14B0FBAFBCC84019A2635"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 40 of the
Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block act-name="" id="id1EDC8A39C67748C4A2C897FFEE6A6CBA" style="OLC">
<section id="id77C91B07C785450AB9D869731DDB32CF"><enum>40.</enum><header>Alcohol, etc.,
used as fuel</header>
<subsection id="idE893E0A4E5144CC6908961D3AE3405AF"><enum>(a)</enum><header>General
rule</header><text>For purposes of section 38, the alcohol fuels credit
determined under this section for the taxable year is an amount equal to the
sum of—</text>
<paragraph id="id816E9CA782B14513819BA7D0DD87A206"><enum>(1)</enum><text>the credit amount
for each gallon of qualified alcohol production during such taxable
year,</text>
</paragraph><paragraph id="idD638D1849B314ACFAB41596779BE093C"><enum>(2)</enum><text>the cellulosic
biofuel producer credit determined under subsection (c) for such taxable year,
plus</text>
</paragraph><paragraph id="id051087FDEB50417E87FE73544AFCC22D"><enum>(3)</enum><text>in the case of an
eligible small ethanol producer, the small ethanol producer credit.</text>
</paragraph></subsection><subsection id="idC6B018F9FA52424C82F3EBC042AC5FB4"><enum>(b)</enum><header>Qualified
alcohol production</header><text>For purposes of this section—</text>
<paragraph id="id80B9EFFBFD7649C0A1463C300CEE23AD"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified alcohol production</term> means
qualified alcohol which is produced by the taxpayer and which—</text>
<subparagraph id="idF39BF49E624148E59D6D82F681E95452"><enum>(A)</enum><text>is sold by the
taxpayer to another person—</text>
<clause id="idE75B0F19024E474EB7ECAD580F597E45"><enum>(i)</enum><text>for use by such
other person in the production of a qualified mixture in the ordinary course of
such other person's trade or business,</text>
</clause><clause id="idA29F8DAF2C194E26A925348C471F571D"><enum>(ii)</enum><text>for use by such
other person as a fuel in the ordinary course of such other person's trade or
business (other than casual off-farm production), or</text>
</clause><clause id="idBF08067C1D2045DFBDBD199983654356"><enum>(iii)</enum><text>who sells such
alcohol at retail to another person and places such alcohol in the fuel tank of
such other person, or</text>
</clause></subparagraph><subparagraph id="id5018584E598144B39715E52472D7EAB7"><enum>(B)</enum><text>is used or sold
by the taxpayer for any purpose described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="id305588B09AFF440297E7C9395813312C"><enum>(2)</enum><header>Qualified
alcohol</header><text>The term <term>qualified alcohol</term> means
alcohol—</text>
<subparagraph id="idABD2F5CF57174D46ADEF62DDEA0D5CE8"><enum>(A)</enum><text>which has
lifecycle greenhouse gas emissions that are at least 15 percent less than
baseline lifecycle greenhouse gas emissions (as determined by the Administrator
of the Environmental Protection Agency, in conjunction with the Secretary of
Agriculture), and</text>
</subparagraph><subparagraph id="id4FF9660235FD468896CDE8F21505FFC6"><enum>(B)</enum><text>which has a proof
of not less than 200 (determined without regard to any added denaturants),
and</text>
</subparagraph><continuation-text continuation-text-level="paragraph">does not
include any alcohol which is purchased by the producer and the proof of which
is increased by the producer by additional distillation.</continuation-text></paragraph><paragraph id="id258EAD6556DF446992C47C746E178AC7"><enum>(3)</enum><header>Alcohol</header><text>The
term <term>alcohol</term> includes methanol and ethanol, without regard to the
feedstock from which such alcohol is produced.</text>
</paragraph><paragraph id="idBF271FA69A9A4CF8A397993F30FFF29F"><enum>(4)</enum><header>Qualified
mixture</header><text>The term <term>qualified mixture</term> means a mixture
of alcohol and gasoline or of alcohol and a special fuel which—</text>
<subparagraph id="id9C095D3F73AF43C881421DAB81CFB94A"><enum>(A)</enum><text>is sold by the
person producing such mixture to any person for use as a fuel, or</text>
</subparagraph><subparagraph id="id4F4D034C2C0444EA8C43350156A13638"><enum>(B)</enum><text>is used as a fuel
by the person producing such mixture.</text>
</subparagraph></paragraph><paragraph id="id6DFADC290E9C4251A08E8A5A5860DEBF"><enum>(5)</enum><header>Denial of
double benefit</header><text>The amount of any qualified alcohol production
which is qualified cellulosic biofuel production shall not be taken into
account under subsection (a)(1).</text>
</paragraph><paragraph id="idFF7A683E09094EF79C1B7395933502C5"><enum>(6)</enum><header>Credit
amount</header><text>For purposes of subsection (a)(1), the credit amount shall
be determined in accordance with 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="Tax (No Calculation)" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="275pts" min-data-value="55"></colspec><colspec align="justify" coldef="fig" colname="column2" colsep="0" colwidth="126pts" min-data-value="9"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>In the case of any sale or
use</bold><bold><linebreak></linebreak> during calendar year:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The credit<linebreak></linebreak>amount is:</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">20 cents</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">15 cents</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr"> 2014</entry><entry align="right" colname="column2" rowsep="0">10 cents</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015 or thereafter</entry><entry align="right" colname="column2" rowsep="0">5 cents.</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="PE2D09681A68D48A29EA2E68470F0810D"><enum>(c)</enum><header display-inline="yes-display-inline">Cellulosic biofuel producer credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="P1697876963374A78BD5731342AD6E0A3"><enum>(1)</enum><header>In
general</header><text>The cellulosic biofuel producer credit determined under
this subsection of any taxpayer is an amount equal to $1.01 for each gallon of
qualified cellulosic biofuel production.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="P44D0BFA571C7491488FAE1AE0E9D1556"><enum>(2)</enum><header>Qualified
cellulosic biofuel production</header><text>For purposes of this subsection,
the term <term>qualified cellulosic biofuel production</term> means any
cellulosic biofuel which is produced by the taxpayer, and which during the
taxable year—</text>
<subparagraph id="P638BBA54476249048524672AAC2D9E76"><enum>(A)</enum><text>is sold by the
taxpayer to another person—</text>
<clause id="P16A71E074CD84886962A815977363747"><enum>(i)</enum><text>for use by such
other person in the production of a qualified cellulosic biofuel mixture in
such other person's trade or business (other than casual off-farm
production),</text>
</clause><clause id="P56A4CE2E689548B5A408B75735A45B1F"><enum>(ii)</enum><text>for use by such
other person as a fuel in a trade or business, or</text>
</clause><clause id="P6B877BF633AB4D5DB91934B157DCD21A"><enum>(iii)</enum><text>who sells such
cellulosic biofuel at retail to another person and places such cellulosic
biofuel in the fuel tank of such other person, or</text>
</clause></subparagraph><subparagraph id="PDAE905F0B1174298A75CCFD78C356CEF"><enum>(B)</enum><text>is used or sold by
the taxpayer for any purpose described in subparagraph (A).</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The
qualified cellulosic biofuel production of any taxpayer for any taxable year
shall not include any alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of the alcohol by additional
distillation.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="P4D876CBD5EAE467FA1AB3D2A4D5F3770"><enum>(3)</enum><header>Qualified
cellulosic biofuel mixture</header><text>For purposes of this subsection, the
term <term>qualified cellulosic biofuel mixture</term> means a mixture of
cellulosic biofuel and gasoline or of cellulosic biofuel and a special fuel
which—</text>
<subparagraph id="P442D80AC21B949CC84194F905DAABAE6"><enum>(A)</enum><text>is sold by the
person producing such mixture to any person for use as a fuel, or</text>
</subparagraph><subparagraph id="PC884207BA15641679E989C41385D1E72"><enum>(B)</enum><text>is used as a fuel
by the person producing such mixture.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="P5184290D32DB489DA4FCDA49752E72B8"><enum>(4)</enum><header>Cellulosic
biofuel</header><text>For purposes of this subsection—</text>
<subparagraph id="P86DB8E0F072C46ABBA18BE6128DBCF2A"><enum>(A)</enum><header>In
general</header><text>The term <term>cellulosic biofuel</term> means any liquid
fuel which—</text>
<clause id="P40BE16B26104446C9B9E6B6E6C7A7A10"><enum>(i)</enum><text>is
produced from any lignocellulosic or hemicellulosic matter that is available on
a renewable or recurring basis, and</text>
</clause><clause id="PC091DF863B294A449B8F0EAB9368CE05"><enum>(ii)</enum><text>meets the
registration requirements for fuels and fuel additives established by the
Environmental Protection Agency under section 211 of the Clean Air Act (42
U.S.C. 7545).</text>
</clause></subparagraph><subparagraph id="P4F4142474EF64C9591DAFAD8A053AC41"><enum>(B)</enum><header>Exclusion of
low-proof alcohol</header><text>Such term shall not include any alcohol with a
proof of less than 200. The determination of the proof of any alcohol shall be
made without regard to any added denaturants.</text>
</subparagraph><subparagraph id="PC68E36725E5644A8BCCC6606C4D75DEF"><enum>(C)</enum><header>Exclusion of
unprocessed fuels</header><text>The term <term>cellulosic biofuel</term> shall
not include any fuel if—</text>
<clause id="P2AAD4D10FE7B4A69918953C206478BD6"><enum>(i)</enum><text>more than 4
percent of such fuel (determined by weight) is any combination of water and
sediment, or</text>
</clause><clause id="P1CC2AE6B9E704A11940A91B39B3AD544"><enum>(ii)</enum><text>the ash content
of such fuel is more than 1 percent (determined by weight).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="P45908CB469074401918B391B55CEDD34"><enum>(5)</enum><header>Allocation of
cellulosic biofuel producer credit to patrons of cooperative</header>
<subparagraph id="P46F0B11F7DE346E9BA59D76B6CE9CE5F"><enum>(A)</enum><header>Election to
allocate</header>
<clause id="P9CCB013E2B664CF0B815ED24D9F1B7EE"><enum>(i)</enum><header>In
general</header><text>In the case of a cooperative organization described in
section 1381(a), any portion of the credit determined under this subsection for
the taxable year may, at the election of the organization, be apportioned pro
rata among patrons of the organization on the basis of the quantity or value of
business done with or for such patrons for the taxable year.</text>
</clause><clause id="P0F7E277F4AB54DAF8FF2039EDB338A8F"><enum>(ii)</enum><header>Form and effect
of election</header><text>An election under clause (i) for any taxable year
shall be made on a timely filed return for such year. Such election, once made,
shall be irrevocable for such taxable year. Such election shall not take effect
unless the organization designates the apportionment as such in a written
notice mailed to its patrons during the payment period described in section
1382(d).</text>
</clause></subparagraph><subparagraph id="PF22EAC82E3EB4A6F88B71D683E4FA2FA"><enum>(B)</enum><header>Treatment of
organizations and patrons</header>
<clause id="P1AFC37A6F4D84A1BA32A8F59818BFF10"><enum>(i)</enum><header>Organizations</header><text>The
amount of the credit not apportioned to patrons pursuant to subparagraph (A)
shall be included in the amount determined under this subsection for the
taxable year of the organization.</text>
</clause><clause id="PCE76868D0C7A4E689813A5A6D7F628C4"><enum>(ii)</enum><header>Patrons</header><text>The
amount of the credit apportioned to patrons pursuant to subparagraph (A) shall
be included in the amount determined under this subsection for the first
taxable year of each patron ending on or after the last day of the payment
period (as defined in section 1382(d)) for the taxable year of the organization
or, if earlier, for the taxable year of each patron ending on or after the date
on which the patron receives notice from the cooperative of the
apportionment.</text>
</clause><clause id="P18342587F97946F8A201C48648281584"><enum>(iii)</enum><header>Special rules
for decrease in credits for taxable year</header><text>If the amount of the
credit of the organization determined under this subsection for a taxable year
is less than the amount of such credit shown on the return of the organization
for such year, an amount equal to the excess of—</text>
<subclause id="PD14E1E713F774C3A926BE00E1CECC4B7"><enum>(I)</enum><text>such reduction,
over</text>
</subclause><subclause id="PD14E1E713F774C3A926BE00E1CECC4B8"><enum>(II)</enum><text>the amount not
apportioned to such patrons under subparagraph (A) for the taxable year,</text>
</subclause><continuation-text continuation-text-level="clause">shall be
treated as an increase in tax imposed by this chapter on the organization. Such
increase shall not be treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter or for purposes of
section 55.</continuation-text></clause></subparagraph></paragraph></subsection><subsection id="id326A535544F44A4D889C954DD52633AF"><enum>(d)</enum><header>Small ethanol
producer credit</header>
<paragraph id="id9DA1BBB5D4C04177AC85B632422EE16C"><enum>(1)</enum><header>In
general</header><text>The small ethanol producer credit of any eligible small
ethanol producer for any taxable year is 10 cents for each gallon of qualified
ethanol fuel production of such producer.</text>
</paragraph><paragraph id="id04214A03B1BF42D8BAFC4A85B1EBBC12"><enum>(2)</enum><header>Qualified
ethanol fuel production</header><text>For purposes of this subsection, the term
<term>qualified ethanol fuel production</term> means any qualified alcohol
which is ethanol and which is produced by an eligible small ethanol
producer.</text>
</paragraph><paragraph id="id67B2226050D34AA38B18B6A1CBEDC11B"><enum>(3)</enum><header>Limitation</header><text>The
qualified ethanol fuel production of any producer for any taxable year shall
not exceed 15,000,000 gallons (determined without regard to any qualified
cellulosic biofuel production).</text>
</paragraph><paragraph id="id7A34A52DC0F54262808C9F04BCBF9285"><enum>(4)</enum><header>Additional
distillation excluded</header><text>The qualified ethanol fuel production of
any producer for any taxable year shall not include any alcohol which is
purchased by the producer and with respect to which such producer increases the
proof of the alcohol by additional distillation.</text>
</paragraph><paragraph id="id17AD753206DA4EFAB38B26DE8231197B"><enum>(5)</enum><header>Eligible small
ethanol producer</header>
<subparagraph id="idA74A1B6F005A44288F6CFDE772360719"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the term <term>eligible
small ethanol producer</term> means a person who, at all times during the
taxable year, has a productive capacity for alcohol (as defined in subsection
(b)(3)) not in excess of 60,000,000 gallons.</text>
</subparagraph><subparagraph id="idDF87749199084838B9F347F79BB6F4B2"><enum>(B)</enum><header>Aggregation
rule</header><text>For purposes of the 15,000,000 gallon limitation under
paragraph (3) and the 60,000,000 gallon limitation under subparagraph (A), all
members of the same controlled group of corporations (within the meaning of
section 267(f)) and all persons under common control (within the meaning of
section 52(b) but determined by treating an interest of more than 50 percent as
a controlling interest) shall be treated as 1 person.</text>
</subparagraph><subparagraph id="id378D1B28C68D43A997905F845A4EAB2C"><enum>(C)</enum><header>Partnerships, S
corporations, and other pass-thru entities</header><text>In the case of a
partnership, trust, S corporation, or other pass-thru entity, the limitations
contained in paragraph (3) and subparagraph (A) shall be applied at the entity
level and at the partner or similar level.</text>
</subparagraph><subparagraph id="id5218F36E29FA4B4E83A4A3E1BFC8265D"><enum>(D)</enum><header>Allocation</header><text>For
purposes of this subsection, in the case of a facility in which more than 1
person has an interest, productive capacity shall be allocated among such
persons in such manner as the Secretary may prescribe.</text>
</subparagraph><subparagraph id="idBCF2981B9A764426A029ACB29AFD5029"><enum>(E)</enum><header>Regulations</header><text>The
Secretary may prescribe such regulations as may be necessary—</text>
<clause id="id8CD3696144604C94A4136C5130FC9889"><enum>(i)</enum><text>to prevent the
credit under this subsection from directly or indirectly benefitting any person
with a direct or indirect productive capacity of more than 60,000,000 gallons
of alcohol during the taxable year, or</text>
</clause><clause id="id133C9A7B06E84DA2A24F73980A501027"><enum>(ii)</enum><text>to prevent any
person from directly or indirectly benefitting with respect to more than
15,000,000 gallons of ethanol during the taxable year.</text>
</clause></subparagraph></paragraph><paragraph id="idE2FE86ADB454487CA38ECC3B1EF3DCD6"><enum>(6)</enum><header>Allocation of
small ethanol producer credit to patrons of cooperative</header><text>Rules
similar to the rules of subsection (c)(5) shall apply for purposes of this
subsection.</text>
</paragraph></subsection><subsection id="id661700DE4A2C42419E379244575C53B1"><enum>(e)</enum><header>Performance
credit for alcohol</header>
<paragraph id="id674405C520D745FEB28878B6F05BAFDA"><enum>(1)</enum><header>In
general</header><text>In the case of any qualified alcohol production in a
taxable year from qualified alcohol which has a baseline lifecycle greenhouse
gas improvement of not less than 50 percent, the credit amount determined under
subsection (a)(1) for such taxable year with respect to such production shall
be increased by the applicable amount.</text>
</paragraph><paragraph id="id7DD3962F7CE54863B03D7759160A1A3E"><enum>(2)</enum><header>Applicable
amount</header><text>For purposes of paragraph (1), the applicable amount
is—</text>
<subparagraph id="id2E55B5870251469B85EB0F3427600EDF"><enum>(A)</enum><text>5 cents for every
gallon of qualified alcohol production from qualified alcohol which has a
baseline lifecycle greenhouse gas improvement of not less than 50 percent and
less than 75 percent,</text>
</subparagraph><subparagraph id="id93345051D6224CB7AACFE84C8D7125A4"><enum>(B)</enum><text>15 cents for
every gallon of qualified alcohol production from qualified alcohol which has a
baseline lifecycle greenhouse gas improvement of not less than 75 percent and
less than 90 percent, and</text>
</subparagraph><subparagraph id="idE7FEC376C8F542AABA84CA209D2437DC"><enum>(C)</enum><text>25 cents for
every gallon of qualified alcohol production from qualified alcohol which has a
baseline lifecycle greenhouse gas improvement of not less than 90
percent.</text>
</subparagraph></paragraph><paragraph id="idE95146E9601F4DF580C3C7436411B997"><enum>(3)</enum><header>Baseline
lifecycle greenhouse gas improvement</header><text>For purposes of this
subsection, the term <term>baseline lifecycle greenhouse gas improvement</term>
means the amount, expressed as a percentage, which is—</text>
<subparagraph id="idEAA301D26EDA46B09743375C9EC6FEF5"><enum>(A)</enum><text>the direct
lifecycle greenhouse gas emissions of an alcohol, divided by</text>
</subparagraph><subparagraph id="id2BB83251E1054CB29E319312FE95DA53"><enum>(B)</enum><text>the baseline
lifecycle greenhouse gas emissions,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">as
determined by the Administrator of the Environmental Protection Agency, in
conjunction with the Secretary of Agriculture.</continuation-text></paragraph></subsection><subsection id="id479D190595074301B33DDF30F84AF62F"><enum>(f)</enum><header>Definitions and
special rules</header><text>For purposes of this section—</text>
<paragraph id="id3C6B314027CA44D1AA67AD670F99A140"><enum>(1)</enum><header>Special
fuel</header><text>The term <term>special fuel</term> includes any liquid fuel
(other than gasoline) which is suitable for use in an internal combustion
engine.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="P7415BC9F191948EFBB8DB3FF5E72B565"><enum>(2)</enum><header display-inline="yes-display-inline">Registration requirement</header><text display-inline="yes-display-inline">No credit shall be determined under
subsection (a)(1), (c), or (d) with respect to any taxpayer unless such
taxpayer is registered with the Secretary as a producer of alcohol or
cellulosic biofuel, whichever is applicable, under section 4101.</text>
</paragraph><paragraph id="P6AE91E10B5004BBE99D1CD421F32B323"><enum>(3)</enum><header>Special rule for
cellulosic biofuel producer credit</header><text>No cellulosic biofuel producer
credit shall be determined under subsection (c) with respect to any cellulosic
biofuel unless such cellulosic biofuel is produced in the United States and
used as a fuel in the United States. For purposes of this subsection, the term
<term>United States</term> includes any possession of the United States.</text>
</paragraph><paragraph id="P26A9EA9C6D714264B9C1ED9FEBB33951"><enum>(4)</enum><header>Limitation to
alcohol with connection to the United States</header><text>No credit shall be
determined under this section with respect to any alcohol which is produced
outside the United States. For purposes of this paragraph, the term
<term>United States</term> includes any possession of the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="P1D85100E783E4B6A9D96D66C06E40118"><enum>(5)</enum><header>Mixture or
alcohol not used as a fuel, etc</header>
<subparagraph commented="no" display-inline="no-display-inline" id="PACA9847FFE594589BCE66E4FB2D05DA0"><enum>(A)</enum><header>Mixtures</header><text>If—</text>
<clause commented="no" id="P0EB5859707D64AB18F8665D37578189C"><enum>(i)</enum><text>any credit was
determined under this section with respect to alcohol used in the production of
any qualified mixture, and</text>
</clause><clause commented="no" id="P1F89271C0E0C4089A7AC53C907994158"><enum>(ii)</enum><text>any
person—</text>
<subclause commented="no" id="PC3AF494B397E4283A90972A3EEA461C9"><enum>(I)</enum><text>separates the
alcohol from the mixture, or</text>
</subclause><subclause commented="no" id="P93A773DF5F544169B8E7467678546DE8"><enum>(II)</enum><text>without
separation, uses the mixture other than as a fuel,</text>
</subclause></clause><continuation-text commented="no" continuation-text-level="subparagraph">then there is hereby imposed on
such person a tax equal to such credit so determined with respect to each
gallon of alcohol in such mixture.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="P2D883D5A17AA4A7993FA8D60ECA8FB49"><enum>(B)</enum><header>Alcohol</header><text>If—</text>
<clause commented="no" id="PD993F013E7784F4CB07AB3E50B344AEF"><enum>(i)</enum><text>any credit was
determined under this section with respect to the retail sale of any alcohol,
and</text>
</clause><clause commented="no" id="P646973A83AF14E41937E87A5280C6394"><enum>(ii)</enum><text>any person mixes
such alcohol or uses such alcohol other than as a fuel,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">then there is hereby imposed on
such person a tax equal to such credit so determined with respect to each
gallon of such alcohol.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="PF0C86B9BB03E45A69018DD0996E8B23F"><enum>(C)</enum><header>Cellulosic
biofuel producer credit</header><text>If—</text>
<clause commented="no" id="PF966C92DBE484DA5856AE45358191161"><enum>(i)</enum><text>any credit is
allowed under subsection (c), and</text>
</clause><clause commented="no" id="P90433A6E0ABB4D4DAECD7003A2FED257"><enum>(ii)</enum><text>any person does
not use such fuel for a purpose described in subsection (c)(3),</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">then there is hereby imposed on
such person a tax equal to $1.01 for each gallon of such cellulosic
biofuel.</continuation-text></subparagraph><subparagraph id="id90CA1CE0AB0C4582BA0F3A4D90CB097E"><enum>(D)</enum><header>Small ethanol
producer credit</header><text>If—</text>
<clause id="idBD49A9020C3F427A885A33D3B20365E0"><enum>(i)</enum><text>any credit is
allowed under subsection (d), and</text>
</clause><clause id="idC911CB51E4E74EC080A9BDAFF7A6F8CA"><enum>(ii)</enum><text>any person does
not use such fuel for a purpose described in subsection (b)(1)(A),</text>
</clause><continuation-text continuation-text-level="subparagraph">then
there is hereby imposed on such person a tax equal to 10 cents a gallon for
each gallon of such alcohol.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="PE9C631EC2EE6413DA91578E80EF357FF"><enum>(E)</enum><header display-inline="yes-display-inline">Applicable laws</header><text display-inline="yes-display-inline">All provisions of law, including penalties,
shall, insofar as applicable and not inconsistent with this section, apply in
respect of any tax imposed under subparagraph (A), (B), (C), or (D) as if such
tax were imposed by section 4081 and not by this chapter.</text>
</subparagraph></paragraph><paragraph id="PC67323330CAB47BBAE8B03707CB6C3B5"><enum>(6)</enum><header>Volume of
alcohol</header><text>For purposes of determining under subsection (a) the
number of gallons of alcohol with respect to which a credit is allowable under
subsection (a), the volume of alcohol shall include the volume of any
denaturant (including gasoline) which is added under any formulas approved by
the Secretary to the extent that such denaturants do not exceed 2 percent of
the volume of such alcohol (including denaturants).</text>
</paragraph><paragraph id="P59554FBE7B5F4C35BDA02CCEA87ED68B"><enum>(7)</enum><header>Pass-thru in the
case of estates and trusts</header><text>Under regulations prescribed by the
Secretary, rules similar to the rules of subsection (d) of section 52 shall
apply.</text>
</paragraph><paragraph id="id806A660D14524D4489F31C595C61589F"><enum>(8)</enum><header>Allocation of
general credit to patrons of cooperative</header><text>Rules similar to the
rules of subsection (c)(5) shall apply for purposes of the portion of the
credit determined under subsection (a)(1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="PE3E6918AF7724D40BF4EB3BA32F1D77B"><enum>(g)</enum><header display-inline="yes-display-inline">Coordination with exemption from excise
tax</header><text display-inline="yes-display-inline">The amount of the credit
determined under this section with respect to any alcohol shall, under
regulations prescribed by the Secretary, be properly reduced to take into
account any benefit provided with respect to such alcohol solely by reason of
the application of section 4041(b)(2), section 6426, or section 6427(e).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="P6923DB9193174689B06E9EC48895A7B9"><enum>(h)</enum><header display-inline="yes-display-inline">Termination</header>
<paragraph commented="no" display-inline="no-display-inline" id="P36971FA1C87C443E960ED3BE36493FBC"><enum>(1)</enum><header>In
general</header><text>This section shall not apply to any sale or use for any
period after December 31, 2016.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="PAEA67AC309AB4ECABE9378683B659E4B"><enum>(2)</enum><header>No carryovers to
certain years after expiration</header><text>If this section ceases to apply
for any period by reason of paragraph (1), no amount attributable to any sale
or use before the first day of such period may be carried under section 39 by
reason of this section (treating the amount allowed by reason of this section
as the first amount allowed by this subpart) to any taxable year beginning
after the 3-taxable-year period beginning with the taxable year in which such
first day
occurs.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id89B2E1C9B1464A1A9A144EF91E36D1BA"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id886D8941789448FB82085CBF452A1DCB"><enum>(1)</enum><text>Section
4101(a)(1) of the Internal Revenue Code of 1986 is amended by striking
<quote>section 40(b)(6)(E)</quote> and inserting <quote>section
40(c)(4)</quote>.</text>
</paragraph><paragraph id="idAEB5B9E867784C92B6FE194B87E06139"><enum>(2)</enum><text>Section 6426(g)
of such Code is amended by striking <quote>section 40(c)</quote> and inserting
<quote>section 40(g)</quote>.</text>
</paragraph><paragraph id="id33E9C8F8240A42D0976EA959A5D3A3DB"><enum>(3)</enum><text>Section 6501(m)
of such Code is amended by striking <quote>40(f),</quote>.</text>
</paragraph></subsection><subsection id="id5A2072B2C933488EA2C40F20CCC5530D"><enum>(c)</enum><header>Modification of
volumetric ethanol excise tax credit</header>
<paragraph id="idD93F70762F7D42DC947C225EFAF049A9"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 6426 of the Internal Revenue
Code of 1986, as amended by this Act, is amended—</text>
<subparagraph id="idF957F089937641F588A708E0819896FA"><enum>(A)</enum><text>by striking
paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id4B31C8A152844C43B9BB32C5D150368B" style="OLC">
<paragraph id="idBB101ED0F0B5404CAD4007AB87B0F9BD"><enum>(2)</enum><header>Applicable
amount</header><text>For purposes of this subsection, with respect to each
gallon of alcohol, the applicable amount is the sum of the credit amount
determined in accordance with the following table plus the applicable amount
under section 40(e)(2) attributable to such gallon:</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="Tax (No Calculation)" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="275pts" min-data-value="55"></colspec><colspec coldef="fig" colname="column2" colwidth="110pts" min-data-value="9"></colspec>
<thead>
<row><entry colname="column1" morerows="0" namest="column1"><bold>In the case of any sale, use,
or</bold><bold><linebreak></linebreak> removal during calendar year:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2"><bold>The
credit<linebreak></linebreak>amount is:</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">20 cents</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">15 cents</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr"> 2014</entry><entry align="right" colname="column2" rowsep="0">10 cents</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="column2" rowsep="0">5 cents</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2016 and thereafter</entry><entry align="right" colname="column2" rowsep="0">0 cents</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph><after-quoted-block>,</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="subparagraph">and</continuation-text></subparagraph><subparagraph id="id3864A8A4998949CC907B39CE04D3F13C"><enum>(B)</enum><text>by striking
<quote>December 31, 2011</quote> in paragraph (6) and inserting <quote>December
31, 2015</quote>.</text>
</subparagraph></paragraph><paragraph id="idA174308D19D84966AF8D9CA25F8B6D89"><enum>(2)</enum><header>Payments in
lieu of credits</header><text>Subparagraph (A) of section 6427(e)(6) is amended
by striking <quote>December 31, 2010</quote> and inserting <quote>December 31,
2015</quote>.</text>
</paragraph></subsection><subsection id="IDed5a44ed7dee4adb9b254d3c3efd993f"><enum>(d)</enum><header>Extension of
additional duties on ethanol</header><text>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>1/1/2012</quote> and inserting
<quote>1/1/2016</quote>.</text>
</subsection><subsection id="id6150EC4252FB4D94B1DB344C918942A9"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="idC364DE18548C425F850A66C223324D9A"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to fuel sold and used after December 31,
2011.</text>
</paragraph><paragraph id="id2E79D79143C74F56B21149E55CC6F057"><enum>(2)</enum><header>Additional
duties</header><text>The amendments made by subsection (d) shall take effect on
January 1, 2012.</text>
</paragraph></subsection></section><section id="id8EC8106395834CEC897BA9A0D3B53616"><enum>302.</enum><header>Reform of
biodiesel income tax incentives</header>
<subsection commented="no" display-inline="no-display-inline" id="H0CF986F76FD845F09F454B3B0D36265B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 40A of the Internal Revenue Code of
1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HD259948D48024460A9B9660B56C34B2F" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H5D08ECA9DC414E4DB513561017AFCDE7" section-type="subsequent-section"><enum>40A.</enum><header display-inline="yes-display-inline">Biodiesel production</header>
<subsection commented="no" display-inline="no-display-inline" id="HCE3FE6FC635448FEA8DC7DE945822257"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of section 38, the biodiesel
fuels credit determined under this section for the taxable year is $1.00 for
each gallon of biodiesel produced by the taxpayer which during the taxable
year—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCF60281F14D548FE92174A001C4B66DA"><enum>(1)</enum><text display-inline="yes-display-inline">is sold by such producer to another
person—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDDBFF63DAC4144E98B140E349D90598A"><enum>(A)</enum><text display-inline="yes-display-inline">for use by such other person’s trade or
business (other than casual off-farm production),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H58712A9F2CC747B898131D3E1F849D0D"><enum>(B)</enum><text display-inline="yes-display-inline">for use by such other person as a fuel in a
trade or business, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H35C5CB8F9ACD41F98B5814C9024D5FA2"><enum>(C)</enum><text display-inline="yes-display-inline">who sells such biodiesel at retail to
another person and places such biodiesel in the fuel tank of such other person,
or</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H906AEBF647AD499E80745E821DCD3648"><enum>(2)</enum><text display-inline="yes-display-inline">is used or sold by such producer for any
purpose described in paragraph (1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5D01C542FBE342AB816D047A9DABB15C"><enum>(b)</enum><header display-inline="yes-display-inline">Increased credit for small
producers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H585A38A6C15B4CF59F560E0DF4893E01"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any eligible small biodiesel
producer, subsection (a) shall be applied by increasing the dollar amount
contained therein by 10 cents.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD8378506765844EEB72A61DCA60148FA"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">Paragraph (1) shall only apply with respect
to the first 15,000,000 gallons of biodiesel produced by any eligible small
biodiesel producer during any taxable year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDF63DBD0C38341C79C95931A8008D0DD"><enum>(c)</enum><header display-inline="yes-display-inline">Coordination with credit against excise
tax</header><text display-inline="yes-display-inline">The amount of the credit
determined under this section with respect to any biodiesel shall be reduced to
take into account any benefit provided with respect to such biodiesel solely by
reason of the application of section 6426 or 6427(e).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAFCAE56D71A74BF0B9843CF4398310BC"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions and special rules</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDE45E9A1542D4C188EA5FC1D42080562"><enum>(1)</enum><header display-inline="yes-display-inline">Biodiesel</header><text display-inline="yes-display-inline">The term <quote>biodiesel</quote> means
liquid fuel derived from biomass which meets—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0EDD51924CFE4993A0B9D37A4608D5A9"><enum>(A)</enum><text display-inline="yes-display-inline">the registration requirements for fuels and
fuel additives established by the Environmental Protection Agency under section
211 of the Clean Air Act (42 U.S.C. 7545), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H947B497FA2874FA4AFE60F506307E32A"><enum>(B)</enum><text display-inline="yes-display-inline">the requirements of the American Society of
Testing and Materials D6751.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Such term shall not include any
liquid with respect to which a credit may be determined under section
40.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB407541B14D94B8E8FDEA50BADB0051C"><enum>(2)</enum><header display-inline="yes-display-inline">Biodiesel not used for a qualified
purpose</header><text display-inline="yes-display-inline">If—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA7FD1443DB6B4CCFA5E67C245E4CF88F"><enum>(A)</enum><text display-inline="yes-display-inline">any credit was determined with respect to
any biodiesel under this section, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC300E89D727245628EF14EFC5D8450F9"><enum>(B)</enum><text display-inline="yes-display-inline">any person does not use such biodiesel for
the purpose described in subsection (a),</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">then there is hereby imposed on such
person a tax equal to the product of the rate applicable under subsection (a)
and the number of gallons of such biodiesel.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HABFFC90273A147E497F8718F226FB45E"><enum>(3)</enum><header display-inline="yes-display-inline">Pass-thru in the case of estates and
trusts</header><text display-inline="yes-display-inline">Under regulations
prescribed by the Secretary, rules similar to the rules of subsection (d) of
section 52 shall apply.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H765FFDC08F0C48168D3EA0ABC1DBD125"><enum>(4)</enum><header display-inline="yes-display-inline">Limitation to biodiesel produced in the
United States</header><text display-inline="yes-display-inline">No credit shall
be determined under this section with respect to any biodiesel unless such
biodiesel is produced in the United States from raw feedstock. For purposes of
this paragraph, the term <quote>United States</quote> includes any possession
of the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD76E3C558AD745C8A53A6AFD60F2B435"><enum>(5)</enum><header display-inline="yes-display-inline">Biodiesel transfers from an IRS registered
biodiesel production facility to an IRS registered terminal or
refinery</header><text display-inline="yes-display-inline">The credit allowed
under subsection (a) shall be allowed to the terminal or refinery referred to
in section 4081(a)(1)(B)(i) in instances where section 4081(a)(1)(B)(iii) is
applicable. The credit allowed under subsection (a) cannot be claimed by a
terminal or refinery on fuel upon which the credit was previously claimed by a
biodiesel producer.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8DACFA6A96C949E2A0BCC48A7DBA6533"><enum>(e)</enum><header display-inline="yes-display-inline">Definitions and special rules for small
biodiesel producers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H91274C63082D458FBC907145BE362336"><enum>(1)</enum><header display-inline="yes-display-inline">Eligible small biodiesel
producer</header><text display-inline="yes-display-inline">The term
<quote>eligible small biodiesel producer</quote> means a person who at all
times during the taxable year has a productive capacity for biodiesel not in
excess of 60,000,000 gallons.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6D2036286E394C31BF84EF89877C9B46"><enum>(2)</enum><header display-inline="yes-display-inline">Aggregation rule</header><text display-inline="yes-display-inline">For purposes of the 15,000,000 gallon
limitation under subsection (b)(2) and the 60,000,000 gallon limitation under
paragraph (1), all members of the same controlled group of corporations (within
the meaning of section 267(f)) and all persons under common control (within the
meaning of section 52(b) but determined by treating an interest of more than 50
percent as a controlling interest) shall be treated as 1 person.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF8194EE22C9E403DB0EC20E9F32B5138"><enum>(3)</enum><header display-inline="yes-display-inline">Partnership, s corporation, and other
pass-thru entities</header><text display-inline="yes-display-inline">In the
case of a partnership, trust, S corporation, or other pass-thru entity, the
limitations contained in subsection (b)(2) and paragraph (1) shall be applied
at the entity level and at the partner or similar level.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2D260EF77695489DAEB977C50A2532A3"><enum>(4)</enum><header display-inline="yes-display-inline">Allocation</header><text display-inline="yes-display-inline">For purposes of this subsection, in the
case of a facility in which more than 1 person has an interest, productive
capacity shall be allocated among such persons in such manner as the Secretary
may prescribe.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H82984FE6E0E0401B8F2A64768742B684"><enum>(5)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary may prescribe such
regulations as may be necessary—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE128163B2B8E4D2C9F129B43A5F330F3"><enum>(A)</enum><text display-inline="yes-display-inline">to prevent the credit provided for in
subsection (b) from directly or indirectly benefitting any person with a direct
or indirect productive capacity of more than 60,000,000 gallons of biodiesel
during the taxable year, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9B5F9CC4A89E4819916E04040032843B"><enum>(B)</enum><text display-inline="yes-display-inline">to prevent any person from directly or
indirectly benefitting with respect to more than 15,000,000 gallons during the
taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7764DF95464C4661B52C224C7DB7704C"><enum>(6)</enum><header display-inline="yes-display-inline">Allocation of small biodiesel credit to
patrons of cooperative</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF95BE62381C040F28BF1E312E7283A00"><enum>(A)</enum><header display-inline="yes-display-inline">Election to allocate</header>
<clause commented="no" display-inline="no-display-inline" id="H2349C26E637147B285361B9F34688402"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of a cooperative organization
described in section 1381(a), any portion of the increase determined under
subsection (b) for the taxable year may, at the election of the organization,
be apportioned pro rata among patrons of the organization on the basis of the
quantity or value of business done with or for such patrons for the taxable
year.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7AFC46CF154646AC964F5660ACEA8324"><enum>(ii)</enum><header display-inline="yes-display-inline">Form and effect of election</header><text display-inline="yes-display-inline">An election under clause (i) for any
taxable year shall be made on a timely filed return for such year. Such
election, once made, shall be irrevocable for such taxable year. Such election
shall not take effect unless the organization designates the apportionment as
such in a written notice mailed to its patrons during the payment period
described in section 1382(d).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H35EA0F1E089543F98FA1D1ABDC101F53"><enum>(B)</enum><header display-inline="yes-display-inline">Treatment of organizations and
patrons</header>
<clause commented="no" display-inline="no-display-inline" id="H9FB8771510FF431A82A0CE1764FBE724"><enum>(i)</enum><header display-inline="yes-display-inline">Organizations</header><text display-inline="yes-display-inline">The amount of the credit not apportioned to
patrons pursuant to subparagraph (A) shall be included in the amount determined
under subsection (b) for the taxable year of the organization.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDDD2682673AB4DC5BD2CB4EE645EA133"><enum>(ii)</enum><header display-inline="yes-display-inline">Patrons</header><text display-inline="yes-display-inline">The amount of the credit apportioned to
patrons pursuant to subparagraph (A) shall be included in the amount determined
under such subsection for the first taxable year of each patron ending on or
after the last day of the payment period (as defined in section 1382(d)) for
the taxable year of the organization or, if earlier, for the taxable year of
each patron ending on or after the date on which the patron receives notice
from the cooperative of the apportionment.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4D1371C549AE440185C5186CC3B55ED6"><enum>(iii)</enum><header display-inline="yes-display-inline">Special rules for decrease in credits for
taxable year</header><text display-inline="yes-display-inline">If the amount of
the credit of the organization determined under such subsection for a taxable
year is less than the amount of such credit shown on the return of the
organization for such year, an amount equal to the excess of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H8839F7FFAEFC413E922DC3ADBF471096"><enum>(I)</enum><text display-inline="yes-display-inline">such reduction, over</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H64F1CA73E6F5494299786D8990869C41"><enum>(II)</enum><text display-inline="yes-display-inline">the amount not apportioned to such patrons
under subparagraph (A) for the taxable year, shall be treated as an increase in
tax imposed by this chapter on the organization.</text>
</subclause><continuation-text commented="no" continuation-text-level="clause">Such increase shall not be treated as
tax imposed by this chapter for purposes of determining the amount of any
credit under this chapter or for purposes of section 55.</continuation-text></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H12FA16F2B091467690BBEDA885DAA9A2"><enum>(f)</enum><header display-inline="yes-display-inline">Renewable diesel</header><text display-inline="yes-display-inline">For purposes of this title—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7D910A58C51C41FF87027DEFBA53A7BE"><enum>(1)</enum><header display-inline="yes-display-inline">Treatment in the same manner as
biodiesel</header><text display-inline="yes-display-inline">Renewable diesel
shall be treated in the same manner as biodiesel.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H78EF9752D61F4E989E1BB0B7DC13F362"><enum>(2)</enum><header display-inline="yes-display-inline">Renewable diesel defined</header><text display-inline="yes-display-inline">The term <quote>renewable diesel</quote>
means liquid fuel derived from biomass which meets—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H24D6E4D50359482996BA11C62310A27D"><enum>(A)</enum><text display-inline="yes-display-inline">the registration requirements for fuels and
fuel additives established by the Environmental Protection Agency under section
211 of the Clean Air Act (42 U.S.C. 7545), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC2C2C6EFC25B4CFFA7EE89EBB8C88749"><enum>(B)</enum><text display-inline="yes-display-inline">the requirements of the American Society of
Testing and Materials D975 or D396, or other equivalent standard approved by
the Secretary.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Such term shall not include any
liquid with respect to which a credit may be determined under section 40. Such
term does not include any fuel derived from coprocessing biomass with a
feedstock which is not biomass. For purposes of this paragraph, the term
<quote>biomass</quote> has the meaning given such term by section
45K(c)(3).</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0028428ED4B3453E888C5713C8C9207E"><enum>(3)</enum><header display-inline="yes-display-inline">Certain aviation fuel</header><text display-inline="yes-display-inline">Except as provided in the last 3 sentences
of paragraph (2), the term <quote>renewable diesel</quote> shall include fuel
derived from biomass which meets the requirements of a Department of Defense
specification for military jet fuel or an American Society of Testing and
Materials specification for aviation turbine fuel.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H18078FDFD90341AB9DE1DC000CE0F183"><enum>(g)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">This section shall not apply to any sale or
use after December 31,
2016.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5A8859CA4234496A9F7737D8216374D6"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart D of part
IV of subchapter A of chapter 1 of such Code is amended by striking the item
relating to section 40A and inserting the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HDD1E07A44BFD4AE7A39DAC24AF2ACEA3" style="OLC">
<toc container-level="quoted-block-container" idref="HD259948D48024460A9B9660B56C34B2F" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry bold="off" idref="H5D08ECA9DC414E4DB513561017AFCDE7" level="section">Sec. 40A. Biodiesel
production.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB4505D9B9AC6469D9DBE615466568CB2"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to biodiesel sold or used after December 31,
2011.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB3B0B01B8CA141F192F2D05BC812ED5E" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Reform of biodiesel excise tax
incentives</header>
<subsection commented="no" display-inline="no-display-inline" id="HAE9FA06BE1F547DB962EC68F7E188C30"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (c) of section 6426 of the
Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H23608AA34ADC4FD0BFD80F6D1AB665E8" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H6B8002A8A6094A3E84DFDF7F0A659A25"><enum>(c)</enum><header display-inline="yes-display-inline">Biodiesel credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="H333766E2468B46B9A289CC8D580DB469"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this section, the biodiesel
credit is $1.00 for each gallon of biodiesel produced by the taxpayer and
which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H103545144F87469781F6E5CE68A38781"><enum>(A)</enum><text display-inline="yes-display-inline">is sold by such producer to another
person—</text>
<clause commented="no" display-inline="no-display-inline" id="H0B5F127D800E4E3EBE4B112EC5D646EB"><enum>(i)</enum><text display-inline="yes-display-inline">for use by such other person’s trade or
business (other than casual off-farm production),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0D9452013C054981ABC44FEB14385662"><enum>(ii)</enum><text display-inline="yes-display-inline">for use by such other person as a fuel in a
trade or business, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H60EABD2146C14BA4AAF03A5C45007FCF"><enum>(iii)</enum><text display-inline="yes-display-inline">who sells such biodiesel at retail to
another person and places such biodiesel in the fuel tank of such other person,
or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF5ED227B703F44F8BED518AB5268375C"><enum>(B)</enum><text display-inline="yes-display-inline">is used or sold by such producer for any
purpose described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H443A3D50762F4141A9EE4FF1715308F5"><enum>(2)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Any term used in this subsection which is
also used in section 40A shall have the meaning given such term by section
40A.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0C4DE5C0804648D3B9B9A7C2B2EBE51B"><enum>(3)</enum><header display-inline="yes-display-inline">Biodiesel transfers from an IRS registered
biodiesel production facility to an IRS registered terminal</header><text display-inline="yes-display-inline">The credit allowed under this subsection
can be claimed by a registered terminal or refinery in instances where section
4081(a)(1)(B)(iii) is applicable. The credit allowed under this subsection
cannot be claimed by a terminal or refinery on fuel upon which the credit was
previously claimed by a biodiesel producer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H50E1211EA2B345F9993A2BAF2C0FE462"><enum>(4)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">This subsection shall not apply to any
sale, use, or removal for any period after December 31,
2016.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H369CC7D396DB4F568AFA48811C9F93DA"><enum>(b)</enum><header display-inline="yes-display-inline">Payment of credit</header><text display-inline="yes-display-inline">Subsection (e) of section 6427 of such Code
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB3D841AE74C048C8BB51DAD10E3CE11F"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or the biodiesel mixture
credit</quote> in paragraph (1),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBFA16DAF5EB547F1A285A87D0B71439C"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (3) through (6)
as paragraphs (4) through (7), respectively, and by inserting after paragraph
(2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H1C2B5F3B89BB43D0A39B2A12AF34FA31" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H1FA73F2645F54F789B3DC63E832CBB73"><enum>(3)</enum><header display-inline="yes-display-inline">Biodiesel credit</header><text display-inline="yes-display-inline">If any person produces biodiesel and sells
or uses such biodiesel as provided in section 6426(c), the Secretary shall pay
(without interest) to such person an amount equal to the biodiesel credit with
respect to such
biodiesel.</text>
</paragraph><after-quoted-block>,</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8BC50FFF465D4DB9BEDB6C329367BAC9"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>paragraph (1) or
(2)</quote> each place it appears in paragraphs (4) and (6), as redesignated by
paragraph (2), and inserting <quote>paragraph (1), (2), or (3)</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA5DC93047E6640218647E82BB56B5096"><enum>(4)</enum><text display-inline="yes-display-inline">by striking <quote>alternative fuel</quote>
each place it appears in paragraphs (4) and (6), as redesignated by paragraph
(2), and inserting <quote>fuel</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H740009392E7549E4A327BE2B28DE9DC0"><enum>(5)</enum><text display-inline="yes-display-inline">by striking <quote>biodiesel mixture (as
defined in section 6426(c)(3))</quote> in paragraph (7)(B), as so redesignated,
and inserting <quote>biodiesel (within the meaning of section
40A)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7D94576183994ADC8048AE09D16DFE39"><enum>(c)</enum><header display-inline="yes-display-inline">Exemption for biodiesel transferred from a
registered producer to a registered terminal</header><text display-inline="yes-display-inline">Subparagraph (B) of section 4081(a)(1) of
such Code is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id01713F6E2E704A7CA0AA395F45337AFD"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>clause (ii)</quote> in
clause (i) and inserting <quote>clauses (ii) and (iii)</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id916B2CDEC8714454AA27EAB4B20D115D"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
clause:</text>
<quoted-block act-name="" display-inline="no-display-inline" id="idED7551FD71614F0AA116BD0A2A58E0CF" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="id0AD1411490284C078A3EA52DD863FEEF"><enum>(iii)</enum><header display-inline="yes-display-inline">Exemptions for biodiesel transferred from a
registered producer to a registered terminal</header><text display-inline="yes-display-inline">The tax imposed by this paragraph shall not
apply to any removal or entry of biodiesel (as defined in section 40A(d)(1))
transferred in bulk (without regard to the manner of such transfer) to a
terminal or refinery if—</text>
<subclause commented="no" display-inline="no-display-inline" id="id02738CC669354A8094BC76BC1A73300F"><enum>(I)</enum><text display-inline="yes-display-inline">such biodiesel was produced by a person who
is registered under section 4101 as a producer of biodiesel and who provides
reporting under the ExStars fuel reporting system of the Internal Revenue
Service, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idD261F41FBEA645F4B7B3A15F64D72EA0"><enum>(II)</enum><text display-inline="yes-display-inline">the operator of such terminal or refinery
is registered under section
4101.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDDED9F6B1E004024A1526733394AB5B7"><enum>(d)</enum><header display-inline="yes-display-inline">Producer registration
requirement</header><text display-inline="yes-display-inline">Subsection (a) of
section 6426 of such Code is amended by striking <quote>subsections (d) and
(e)</quote> in the flush sentence at the end and inserting <quote>subsections
(c), (d), and (e)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7903143F16BB45E3A80D2E2AA1091E1C"><enum>(e)</enum><header display-inline="yes-display-inline">Recapture</header><text display-inline="yes-display-inline">Subsection (f) of section 6426 of such Code
is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE5AB7B50903347C6BCAB8050123E4813" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2EADC19B4CE14BD58C8AC0967C92B30A"><enum>(f)</enum><header display-inline="yes-display-inline">Recapture</header>
<paragraph commented="no" display-inline="no-display-inline" id="H32EE9CCDC93746A2A5C54EE68103F585"><enum>(1)</enum><header display-inline="yes-display-inline">Alcohol fuel mixtures</header><text display-inline="yes-display-inline">If—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9545BA36C2424AC38ABA9688014333B7"><enum>(A)</enum><text display-inline="yes-display-inline">any credit was determined under this
section with respect to alcohol used in the production of any alcohol fuel
mixture, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9896E40FC42F491EA2EF864F1EC3347C"><enum>(B)</enum><text display-inline="yes-display-inline">any person—</text>
<clause commented="no" display-inline="no-display-inline" id="HFC0ABAAB29704A84AC4BEBFF736BD4F7"><enum>(i)</enum><text display-inline="yes-display-inline">separates the alcohol from the mixture,
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8E3EA5B93C9145BF91404EA24B6D0B06"><enum>(ii)</enum><text display-inline="yes-display-inline">without separation, uses the mixture other
than as a fuel,</text>
</clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">then there is hereby imposed on such
person a tax equal to the product of the applicable amount and the number of
gallons of such alcohol.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2CAFA9C9E45342EDA126B2337C615F02"><enum>(2)</enum><header display-inline="yes-display-inline">Biodiesel</header><text display-inline="yes-display-inline">If any credit was determined under this
section with respect to the production of any biodiesel and any person does not
use such biodiesel for a purpose described in subsection (c)(1), then there is
hereby imposed on such person a tax equal to $1 for each gallon of such
biodiesel.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEF4307E88919441E946E0B54A17F5B69"><enum>(3)</enum><header display-inline="yes-display-inline">Applicable laws</header><text display-inline="yes-display-inline">All provisions of law, including penalties,
shall, insofar as applicable and not inconsistent with this section, apply in
respect of any tax imposed under paragraph (1) or (2) as if such tax were
imposed by section 4081 and not by this
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9ECD6697B2BF4A3B849F768A13120054"><enum>(f)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The heading of section 6426 of such Code
(and the item relating to such section in the table of sections for subchapter
B of chapter 65 of such Code) is amended by striking <quote>alcohol fuel,
biodiesel, and alternative fuel mixtures</quote> and inserting <quote>alcohol
fuel mixtures, biodiesel production, and alternative fuel
mixtures</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H04C9AC2CE631461ABE110F460B7349AE"><enum>(g)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to biodiesel sold or used after December 31,
2011.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H642766B0D02A46EAA2FF90838C6F436B" section-type="subsequent-section"><enum>304.</enum><header display-inline="yes-display-inline">Biodiesel treated as taxable fuel</header>
<subsection commented="no" display-inline="no-display-inline" id="HC86B880E49A54292834298638E85C16D"><enum>(a)</enum><header display-inline="yes-display-inline">Biodiesel treated as taxable
fuel</header><text display-inline="yes-display-inline">Clause (i) of section
4083(a)(3)(A) of such Code is amended by inserting <quote>, including biodiesel
(as defined in section 6426(c)(3)),</quote> after <quote>(other than
gasoline)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAE2463D3BE88444C9BD732B68DB3C37D"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to biodiesel removed, entered, or sold after the date
which is 6 months after the date of the enactment of this Act.</text>
</subsection></section><enum>IV</enum><header>Renewable
electricity integration credit</header>
<section id="id9B839944AA934106BA92CD3AB2640D05"><enum>401.</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 commented="no" display-inline="no-display-inline" 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, 2010.</text>
</subsection></section><enum>V</enum><header>Wind
energy</header>
<section commented="no" display-inline="no-display-inline" id="idCECFA23A373F4A1CB504E10958117DE9" section-type="subsequent-section"><enum>501.</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>VI</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>601.</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>602.</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 601(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
601(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>603.</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>