[Congressional Record Volume 162, Number 17 (Thursday, January 28, 2016)]
[Senate]
[Pages S371-S374]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3101. Mr. UDALL (for himself, Mr. Bennet, Mr. Heinrich, Ms.
Hirono, Mr. Markey, and Mr. Whitehouse) submitted an amendment intended
to be proposed to amendment SA 2953 proposed by Ms. Murkowski to the
bill S. 2012, to provide for the modernization of the energy policy of
the United States, and for other purposes; which was ordered to lie on
the table; as follows:
At the end of subtitle A of title III, add the following:
[[Page S372]]
PART V--RENEWABLE ELECTRICITY STANDARD
SEC. 3021. RENEWABLE ELECTRICITY STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by
adding at the end the following:
``SEC. 610. RENEWABLE ELECTRICITY STANDARD.
``(a) Definitions.--In this section:
``(1) Base quantity of electricity.--
``(A) In general.--The term `base quantity of electricity'
means the total quantity of electric energy sold by a retail
electric supplier, expressed in terms of kilowatt hours, to
electric customers for purposes other than resale during the
most recent calendar year for which information is available.
``(B) Exclusions.--The term `base quantity of electricity'
does not include--
``(i) electric energy that is not incremental hydropower
generated by a hydroelectric facility; and
``(ii) electricity generated through the incineration of
municipal solid waste.
``(2) Biomass.--
``(A) In general.--The term `biomass' means--
``(i) cellulosic (plant fiber) organic materials from a
plant that is planted for the purpose of being used to
produce energy;
``(ii) nonhazardous plant or algal matter that is derived
from--
``(I) an agricultural crop, crop byproduct, or residue
resource; or
``(II) waste, such as landscape or right-of-way trimmings
(but not including municipal solid waste, recyclable
postconsumer waste paper, painted, treated, or pressurized
wood, wood contaminated with plastic, or metals);
``(iii) animal waste or animal byproducts; and
``(iv) landfill methane.
``(B) National forest land and certain other public land.--
In the case of organic material removed from National Forest
System land or from public land administered by the Secretary
of the Interior, the term `biomass' means only organic
material from--
``(i) ecological forest restoration;
``(ii) precommercial thinnings;
``(iii) brush;
``(iv) mill residues; or
``(v) slash.
``(C) Exclusion of certain federal land.--Notwithstanding
subparagraph (B), the term `biomass' does not include
material or matter that would otherwise qualify as biomass if
the material or matter is located on the following Federal
land:
``(i) Federal land containing old growth forest or late
successional forest unless the Secretary of the Interior or
the Secretary of Agriculture determines that the removal of
organic material from the land--
``(I) is appropriate for the applicable forest type; and
``(II) maximizes the retention of--
``(aa) late-successional and large and old growth trees;
``(bb) late-successional and old growth forest structure;
and
``(cc) late-successional and old growth forest composition.
``(ii) Federal land on which the removal of vegetation is
prohibited, including components of the National Wilderness
Preservation System.
``(iii) Wilderness study areas.
``(iv) Inventoried roadless areas.
``(v) Components of the National Landscape Conservation
System.
``(vi) National Monuments.
``(3) Existing facility.--The term `existing facility'
means a facility for the generation of electric energy from a
renewable energy resource that is not an eligible facility.
``(4) Incremental hydropower.--The term `incremental
hydropower' means additional generation that is achieved from
increased efficiency or additions of capacity made on or
after--
``(A) the date of enactment of this section; or
``(B) the effective date of an existing applicable State
renewable portfolio standard program at a hydroelectric
facility that was placed in service before that date.
``(5) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian reservation,
pueblo, or rancheria;
``(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which on the date
of enactment of this section was held by--
``(i) the United States for the benefit of any Indian tribe
or individual; or
``(ii) any Indian tribe or individual subject to
restriction by the United States against alienation;
``(C) any dependent Indian community; or
``(D) any land conveyed to any Alaska Native corporation
under the Alaska Native Claims Settlement Act (43 U.S.C. 1601
et seq.).
``(6) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including any Alaskan Native village or regional
or village corporation as defined in or established pursuant
to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), that is recognized as eligible for the special
programs and services provided by the United States to
Indians because of their status as Indians.
``(7) Renewable energy.--The term `renewable energy' means
electric energy generated by a renewable energy resource.
``(8) Renewable energy resource.--The term `renewable
energy resource' means solar, wind, ocean, tidal, geothermal
energy, biomass, landfill gas, incremental hydropower, or
hydrokinetic energy.
``(9) Repowering or cofiring increment.--The term
`repowering or cofiring increment' means--
``(A) the additional generation from a modification that is
placed in service on or after the date of enactment of this
section, to expand electricity production at a facility used
to generate electric energy from a renewable energy resource;
``(B) the additional generation above the average
generation during the 3-year period ending on the date of
enactment of this section at a facility used to generate
electric energy from a renewable energy resource or to cofire
biomass that was placed in service before the date of
enactment of this section; or
``(C) the portion of the electric generation from a
facility placed in service on or after the date of enactment
of this section, or a modification to a facility placed in
service before the date of enactment of this section made on
or after January 1, 2001, associated with cofiring biomass.
``(10) Retail electric supplier.--
``(A) In general.--The term `retail electric supplier'
means a person that sells electric energy to electric
consumers that sold not less than 1,000,000 megawatt hours of
electric energy to electric consumers for purposes other than
resale during the preceding calendar year.
``(B) Inclusion.--The term `retail electric supplier'
includes a person that sells electric energy to electric
consumers that, in combination with the sales of any
affiliate organized after the date of enactment of this
section, sells not less than 1,000,000 megawatt hours of
electric energy to consumers for purposes other than resale.
``(C) Sales to parent companies or affiliates.--For
purposes of this paragraph, sales by any person to a parent
company or to other affiliates of the person shall not be
treated as sales to electric consumers.
``(D) Governmental agencies.--
``(i) In general.--Except as provided in clause (ii), the
term `retail electric supplier' does not include--
``(I) the United States, a State, any political subdivision
of a State, or any agency, authority, or instrumentality of
the United States, State, or political subdivision; or
``(II) a rural electric cooperative.
``(ii) Inclusion.--The term `retail electric supplier'
includes an entity that is a political subdivision of a
State, or an agency, authority, or instrumentality of the
United States, a State, a political subdivision of a State, a
rural electric cooperative that sells electric energy to
electric consumers, or any other entity that sells electric
energy to electric consumers that would not otherwise qualify
as a retail electric supplier if the entity notifies the
Secretary that the entity voluntarily agrees to participate
in the Federal renewable electricity standard program.
``(b) Compliance.--For calendar year 2016 and each calendar
year thereafter, each retail electric supplier shall meet the
requirements of subsection (c) by submitting to the
Secretary, not later than April 1 of the following calendar
year, 1 or more of the following:
``(1) Federal renewable energy credits issued under
subsection (e).
``(2) Certification of the renewable energy generated and
electricity savings pursuant to the funds associated with
State compliance payments as specified in subsection
(e)(4)(G).
``(3) Alternative compliance payments pursuant to
subsection (h).
``(c) Required Annual Percentage.--For each of calendar
years 2016 through 2039, the required annual percentage of
the base quantity of electricity of a retail electric
supplier that shall be generated from renewable energy
resources, or otherwise credited towards the percentage
requirement pursuant to subsection (d), shall be the
applicable percentage specified in the following table:
Required Amount
``Calendar Years Percentage
2016.............................................................7.5
2017.............................................................8.0
2018.............................................................9.0
2019............................................................10.5
2020............................................................12.0
2021............................................................13.5
2022............................................................15.0
2023............................................................16.5
2024............................................................18.0
2025............................................................20.0
2026............................................................22.0
2027............................................................24.0
2028............................................................26.0
2029............................................................28.0
2030 and thereafter through 2039................................30.0.
``(d) Renewable Energy Credits.--
``(1) In general.--A retail electric supplier may satisfy
the requirements of subsection (b)(1) through the submission
of Federal renewable energy credits--
``(A) issued to the retail electric supplier under
subsection (e);
``(B) obtained by purchase or exchange under subsection
(f); or
``(C) borrowed under subsection (g).
``(2) Federal renewable energy credits.--A Federal
renewable energy credit may be counted toward compliance with
subsection (b)(1) only once.
``(e) Issuance of Federal Renewable Energy Credits.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section,
[[Page S373]]
the Secretary shall establish by rule a program--
``(A) to verify and issue Federal renewable energy credits
to generators of renewable energy;
``(B) to track the sale, exchange, and retirement of the
credits; and
``(C) to enforce the requirements of this section.
``(2) Existing non-federal tracking systems.--To the
maximum extent practicable, in establishing the program, the
Secretary shall rely on existing and emerging State or
regional tracking systems that issue and track non-Federal
renewable energy credits.
``(3) Application.--
``(A) In general.--An entity that generates electric energy
through the use of a renewable energy resource may apply to
the Secretary for the issuance of renewable energy credits.
``(B) Eligibility.--To be eligible for the issuance of the
credits, the applicant shall demonstrate to the Secretary
that--
``(i) the electric energy will be transmitted onto the
grid; or
``(ii) in the case of a generation offset, the electric
energy offset would have otherwise been consumed onsite.
``(C) Contents.--The application shall indicate--
``(i) the type of renewable energy resource that is used to
produce the electricity;
``(ii) the location at which the electric energy will be
produced; and
``(iii) any other information the Secretary determines
appropriate.
``(4) Quantity of federal renewable energy credits.--
``(A) In general.--Except as otherwise provided in this
paragraph, the Secretary shall issue to a generator of
electric energy 1 Federal renewable energy credit for each
kilowatt hour of electric energy generated by the use of a
renewable energy resource at an eligible facility.
``(B) Incremental hydropower.--
``(i) In general.--For purpose of compliance with this
section, Federal renewable energy credits for incremental
hydropower shall be based on the increase in average annual
generation resulting from the efficiency improvements or
capacity additions.
``(ii) Water flow information.--The incremental generation
shall be calculated using the same water flow information
that is--
``(I) used to determine a historic average annual
generation baseline for the hydroelectric facility; and
``(II) certified by the Secretary or the Federal Energy
Regulatory Commission.
``(iii) Operational changes.--The calculation of the
Federal renewable energy credits for incremental hydropower
shall not be based on any operational changes at the
hydroelectric facility that is not directly associated with
the efficiency improvements or capacity additions.
``(C) Indian land.--
``(i) In general.--The Secretary shall issue 2 renewable
energy credits for each kilowatt hour of electric energy
generated and supplied to the grid in a calendar year through
the use of a renewable energy resource at an eligible
facility located on Indian land.
``(ii) Biomass.--For purposes of this paragraph, renewable
energy generated by biomass cofired with other fuels is
eligible for 2 credits only if the biomass was grown on the
land.
``(D) On-site eligible facilities.--
``(i) In general.--In the case of electric energy generated
by a renewable energy resource at an on-site eligible
facility that is not larger than 1 megawatt in capacity and
is used to offset all or part of the requirements of a
customer for electric energy, the Secretary shall issue 3
renewable energy credits to the customer for each kilowatt
hour generated.
``(ii) Indian land.--In the case of an on-site eligible
facility on Indian land, the Secretary shall issue not more
than 3 credits per kilowatt hour.
``(E) Combination of renewable and nonrenewable energy
resources.--If both a renewable energy resource and a
nonrenewable energy resource are used to generate the
electric energy, the Secretary shall issue the Federal
renewable energy credits based on the proportion of the
renewable energy resources used.
``(F) Retail electric suppliers.--If a generator has sold
electric energy generated through the use of a renewable
energy resource to a retail electric supplier under a
contract for power from an existing facility and the contract
has not determined ownership of the Federal renewable energy
credits associated with the generation, the Secretary shall
issue the Federal renewable energy credits to the retail
electric supplier for the duration of the contract.
``(G) Compliance with state renewable portfolio standard
programs.--Payments made by a retail electricity supplier,
directly or indirectly, to a State for compliance with a
State renewable portfolio standard program, or for an
alternative compliance mechanism, shall be valued at 1 credit
per kilowatt hour for the purpose of subsection (b)(2) based
on the quantity of electric energy generation from renewable
resources that results from the payments.
``(f) Renewable Energy Credit Trading.--
``(1) In general.--A Federal renewable energy credit may be
sold, transferred, or exchanged by the entity to whom the
credit is issued or by any other entity that acquires the
Federal renewable energy credit, other than renewable energy
credits from existing facilities.
``(2) Carryover.--A Federal renewable energy credit for any
year that is not submitted to satisfy the minimum renewable
generation requirement of subsection (c) for that year may be
carried forward for use pursuant to subsection (b)(1) within
the next 3 years.
``(3) Delegation.--The Secretary may delegate to an
appropriate market-making entity the administration of a
national tradeable renewable energy credit market for
purposes of creating a transparent national market for the
sale or trade of renewable energy credits.
``(g) Renewable Energy Credit Borrowing.--
``(1) In general.--Not later than December 31, 2016, a
retail electric supplier that has reason to believe the
retail electric supplier will not be able to fully comply
with subsection (b) may--
``(A) submit a plan to the Secretary demonstrating that the
retail electric supplier will earn sufficient Federal
renewable energy credits within the next 3 calendar years
that, when taken into account, will enable the retail
electric supplier to meet the requirements of subsection (b)
for calendar year 2016 and the subsequent calendar years
involved; and
``(B) on the approval of the plan by the Secretary, apply
Federal renewable energy credits that the plan demonstrates
will be earned within the next 3 calendar years to meet the
requirements of subsection (b) for each calendar year
involved.
``(2) Repayment.--The retail electric supplier shall repay
all of the borrowed Federal renewable energy credits by
submitting an equivalent number of Federal renewable energy
credits, in addition to the credits otherwise required under
subsection (b), by calendar year 2023 or any earlier
deadlines specified in the approved plan.
``(h) Alternative Compliance Payments.--As a means of
compliance under subsection (b)(4), the Secretary shall
accept payment equal to the lesser of--
``(1) 200 percent of the average market value of Federal
renewable energy credits and Federal energy efficiency
credits for the applicable compliance period; or
``(2) 3 cents per kilowatt hour (as adjusted on January 1
of each year following calendar year 2006 based on the
implicit price deflator for the gross national product).
``(i) Information Collection.--The Secretary may collect
the information necessary to verify and audit--
``(1)(A) the annual renewable energy generation of any
retail electric supplier; and
``(B) Federal renewable energy credits submitted by a
retail electric supplier pursuant to subsection (b)(1);
``(2) the validity of Federal renewable energy credits
submitted for compliance by a retail electric supplier to the
Secretary; and
``(3) the quantity of electricity sales of all retail
electric suppliers.
``(j) Environmental Savings Clause.--Incremental hydropower
shall be subject to all applicable environmental laws and
licensing and regulatory requirements.
``(k) State Programs.--
``(1) In general.--Nothing in this section diminishes any
authority of a State or political subdivision of a State--
``(A) to adopt or enforce any law (including regulations)
respecting renewable energy, including programs that exceed
the required quantity of renewable energy under this section;
or
``(B) to regulate the acquisition and disposition of
Federal renewable energy credits by retail electric
suppliers.
``(2) Compliance with section.--No law or regulation
referred to in paragraph (1)(A) shall relieve any person of
any requirement otherwise applicable under this section.
``(3) Coordination with state program.--The Secretary, in
consultation with States that have in effect renewable energy
programs, shall--
``(A) preserve the integrity of the State programs,
including programs that exceed the required quantity of
renewable energy under this section; and
``(B) facilitate coordination between the Federal program
and State programs.
``(4) Existing renewable energy programs.--In the
regulations establishing the program under this section, the
Secretary shall incorporate common elements of existing
renewable energy programs, including State programs, to
ensure administrative ease, market transparency and effective
enforcement.
``(5) Minimization of administrative burdens and costs.--In
carrying out this section, the Secretary shall work with the
States to minimize administrative burdens and costs to retail
electric suppliers.
``(l) Recovery of Costs.--An electric utility that has
sales of electric energy that are subject to rate regulation
(including any utility with rates that are regulated by the
Commission and any State regulated electric utility) shall
not be denied the opportunity to recover the full amount of
the prudently incurred incremental cost of renewable energy
obtained to comply with the requirements of subsection (b).
``(m) Program Review.--
``(1) In general.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the Academy shall conduct a comprehensive evaluation of all
aspects of the program established under this section.
``(2) Evaluation.--The study shall include an evaluation
of--
[[Page S374]]
``(A) the effectiveness of the program in increasing the
market penetration and lowering the cost of the eligible
renewable energy technologies;
``(B) the opportunities for any additional technologies and
sources of renewable energy emerging since the date of
enactment of this section;
``(C) the impact on the regional diversity and reliability
of supply sources, including the power quality benefits of
distributed generation;
``(D) the regional resource development relative to
renewable potential and reasons for any investment in
renewable resources; and
``(E) the net cost/benefit of the renewable electricity
standard to the national and State economies, including--
``(i) retail power costs;
``(ii) the economic development benefits of investment;
``(iii) avoided costs related to environmental and
congestion mitigation investments that would otherwise have
been required;
``(iv) the impact on natural gas demand and price; and
``(v) the effectiveness of green marketing programs at
reducing the cost of renewable resources.
``(3) Report.--Not later than January 1, 2019, the
Secretary shall transmit to Congress a report describing the
results of the evaluation and any recommendations for
modifications and improvements to the program.
``(n) State Renewable Energy Account.--
``(1) In general.--There is established in the Treasury a
State renewable energy account.
``(2) Deposits.--All money collected by the Secretary from
the alternative compliance payments under subsection (h)
shall be deposited into the State renewable energy account
established under paragraph (1).
``(3) Grants.--
``(A) In general.--Proceeds deposited in the State
renewable energy account shall be used by the Secretary,
subject to annual appropriations, for a program to provide
grants--
``(i) to the State agency responsible for administering a
fund to promote renewable energy generation for customers of
the State or an alternative agency designated by the State;
or
``(ii) if no agency described in clause (i), to the State
agency developing State energy conservation plans under
section 362 of the Energy Policy and Conservation Act (42
U.S.C. 6322).
``(B) Use.--The grants shall be used for the purpose of--
``(i) promoting renewable energy production; and
``(ii) providing energy assistance and weatherization
services to low-income consumers.
``(C) Criteria.--The Secretary may issue guidelines and
criteria for grants awarded under this paragraph.
``(D) State-approved funding mechanisms.--At least 75
percent of the funds provided to each State for each fiscal
year shall be used to promote renewable energy production
through grants, production incentives, or other State-
approved funding mechanisms.
``(E) Allocation.--The funds shall be allocated to the
States on the basis of retail electric sales subject to the
renewable electricity standard under this section or through
voluntary participation.
``(F) Records.--State agencies receiving grants under this
paragraph shall maintain such records and evidence of
compliance as the Secretary may require.''.
(b) Table of Contents Amendment.--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:
``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Renewable electricity standard.''.
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