[Congressional Record Volume 167, Number 137 (Monday, August 2, 2021)]
[Senate]
[Pages S5612-S5614]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2208. Mrs. GILLIBRAND submitted an amendment intended to be 
proposed to amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema 
(for herself, Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. 
Collins, Mr. Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the 
bill H.R. 3684, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

        At the end of division G, add the following:

                        TITLE XII--PEAKER PLANTS

     SEC. 71201. SHORT TITLE.

       This title may be cited as the ``Promoting Energy 
     Alternatives is Key to Emission Reductions Act of 2021'' or 
     the ``PEAKER Act of 2021''.

[[Page S5613]]

  


     SEC. 71202. DEFINITIONS.

       In this title:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Finance of the Senate;
       (B) the Committee on Energy and Natural Resources of the 
     Senate;
       (C) the Committee on Environment and Public Works of the 
     Senate;
       (D) the Committee on Ways and Means of the House of 
     Representatives; and
       (E) the Committee on Energy and Commerce of the House of 
     Representatives.
       (2) Disadvantaged community.--The term ``disadvantaged 
     community'' means a community that--
       (A) is located in an area with a high concentration of 
     individuals who--
       (i) are members of low- and moderate-income households (as 
     defined in section 570.3 of title 24, Code of Federal 
     Regulations (or a successor regulation));
       (ii) experience high levels of unemployment;
       (iii) face a high rent burden;
       (iv) face a high energy burden;
       (v) have low levels of home ownership;
       (vi) have low levels of educational attainment; or
       (vii) are members of groups that have historically 
     experienced discrimination on the basis of race or ethnicity;
       (B) is burdened by high cumulative environmental pollution 
     or other hazards that can lead to negative public health 
     effects; or
       (C) is determined to be a disadvantaged community, an 
     environmental justice community, a climate-burdened 
     community, or an otherwise similarly vulnerable community 
     pursuant to any Federal or State-level initiative, including 
     any relevant mapping initiative.
       (3) High energy burden.--The term ``high energy burden'' 
     means, with respect to a household, expenditure of the 
     household on residential energy costs that equals 6 percent 
     or more of the household income.
       (4) Peaker plant.--The term ``peaker plant'' means a fossil 
     fuel-fired power plant or unit of a power plant that is run 
     primarily to meet peak electricity demand, as determined by 
     the Secretary, in coordination with the Administrator of the 
     Environmental Protection Agency and the applicable local 
     electrical grid operator.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 71203. ANNUAL REPORT ON PEAKER PLANTS IN THE UNITED 
                   STATES.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, and annually thereafter, the 
     Secretary, in coordination with the Administrator of the 
     Environmental Protection Agency, the White House 
     Environmental Justice Advisory Council, the White House 
     Environmental Justice Interagency Council, the Council on 
     Environmental Quality, and any other relevant Federal entity 
     that the Secretary determines to be appropriate, shall submit 
     to the appropriate committees of Congress a report that--
       (1) identifies each peaker plant in the United States; and
       (2) for each peaker plant identified under paragraph (1)--
       (A) describes the location of the peaker plant and related 
     socioeconomic and demographic data for that location, 
     including whether the peaker plant is located in or adjacent 
     to a disadvantaged community;
       (B) evaluates the quantity of carbon dioxide, nitric 
     oxides, sulfur oxides, fine particulate matter 
     (PM2.5), and methane emitted per unit of 
     electricity generated by the peaker plant;
       (C) identifies--
       (i) the total number of hours that the peaker plant 
     generates electricity during the year covered by the report;
       (ii) the capacity factor of the plant;
       (iii) the average number of hours that the peaker plant 
     generates electricity each time that the peaker plant 
     generates electricity; and
       (iv) the percentage of the total number of instances in 
     which the peaker plant is started that result in the peaker 
     plant generating electricity for--

       (I) not less than 4 hours;
       (II) not less than 8 hours; and
       (III) not less than 12 hours; and

       (D) identifies, for each day on which the 3 air monitors 
     closest to the peaker plant indicate that Federal ozone or 
     particulate matter standards have been exceeded, the 
     percentage of peak demand met by the peaker plant for the 
     electrical grid load zone served by the peaker plant.
       (b) Community Engagement.--In preparing a report under 
     subsection (a), the Secretary shall initiate and carry out 
     public engagement with residents and stakeholders from 
     disadvantaged communities containing a peaker plant.

     SEC. 71204. CREDIT FOR GENERATION AND STORAGE OF ENERGY FROM 
                   RENEWABLE SOURCES.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 48C the following new section:

     ``SEC. 48D. RENEWABLE ENERGY GENERATION AND STORAGE CREDIT.

       ``(a) In General.--For purposes of section 46, the 
     renewable energy generation and storage credit for any 
     taxable year is an amount equal to 10 percent of the 
     qualified investment for such taxable year with respect to 
     any qualified renewable energy facility.
       ``(b) Qualified Investment With Respect to Qualified 
     Renewable Energy Facilities.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment with respect to a qualified renewable 
     energy facility for any taxable year is the basis of any 
     qualified property placed in service by the taxpayer during 
     such taxable year which is part of a qualified renewable 
     energy facility.
       ``(2) Qualified property.--For purposes of this subsection, 
     the term `qualified property' means property--
       ``(A) which is--
       ``(i) tangible personal property, or
       ``(ii) other tangible property (not including a building or 
     its structural components), but only if such property is used 
     as an integral part of the qualified renewable energy 
     facility,
       ``(B) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable,
       ``(C) which is constructed, reconstructed, erected, 
     installed, or acquired by the taxpayer, and
       ``(D) the original use of which commences with the 
     taxpayer.
       ``(3) Qualified renewable energy facility.--
       ``(A) In general.--Subject to subparagraph (B), the term 
     `qualified renewable energy facility' means a facility 
     which--
       ``(i) uses solar, wind, low-impact hydroelectric (as 
     certified by the Low Impact Hydropower Institute), 
     geothermal, tidal, or wave energy to generate electricity 
     which will be received and stored by property described in 
     clause (ii),
       ``(ii) contains property which receives, stores, and 
     delivers electricity described in clause (i), provided that 
     such electricity is--

       ``(I)(aa) sold by the taxpayer to an unrelated person, or
       ``(bb) in the case of a facility which is equipped with a 
     metering device which is owned and operated by an unrelated 
     person, sold or consumed by the taxpayer, and
       ``(II) at a minimum, discharged at such times as a peaker 
     plant within the same electrical grid load zone would operate 
     to meet peak electricity demand (as determined by the grid 
     operator for such electrical grid), and

       ``(iii) which is placed in service--

       ``(I) in a disadvantaged community which is located 
     within--

       ``(aa) the same census tract as a peaker plant, or
       ``(bb) a census tract that is adjacent to a census tract in 
     which a peaker plant is located, and

       ``(II) after December 31, 2021.

       ``(B) Special rule.--For purposes of this paragraph, a 
     facility shall not be deemed to be a qualified renewable 
     energy facility unless the taxpayer demonstrates, to the 
     satisfaction of the Secretary, that--
       ``(i) the property described in clause (i) of subparagraph 
     (A) is co-located with property described in clause (ii) of 
     such subparagraph,
       ``(ii) such taxpayer has, with respect to the property 
     described in clause (ii) of such subparagraph, entered into a 
     contract which ensures that such property operates primarily 
     to receive, store, and deliver electricity from any property 
     described in clause (i) of such subparagraph, or
       ``(iii) the property described in clause (ii) of such 
     subparagraph receives electricity during periods of typically 
     high production of electricity, as a percentage of the grid 
     generation mix, from sources described in clause (i) of such 
     subparagraph, as determined by the grid operator for the 
     electrical grid.
       ``(c) Certain Progress Expenditure Rules Made Applicable.--
     Rules similar to the rules of subsections (c)(4) and (d) of 
     section 46 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of subsection (a).
       ``(d) Definitions.--The terms `disadvantaged community' and 
     `peaker plant' have the same meanings given such term under 
     section 71202 of the PEAKER Act of 2021.''.
       (b) Conforming Amendments.--
       (1) Section 46 of the Internal Revenue Code of 1986 is 
     amended--
       (A) by striking ``and'' at the end of paragraph (5);
       (B) by striking the period at the end of paragraph (6) and 
     inserting ``, and''; and
       (C) by adding at the end the following new paragraph:
       ``(7) the renewable energy generation and storage 
     credit.''.
       (2) Section 49(a)(1)(C) of such Code is amended--
       (A) by striking ``and'' at the end of clause (iv);
       (B) by striking the period at the end of clause (v) and 
     inserting ``, and''; and
       (C) by adding at the end the following new clause:
       ``(vi) the basis of any qualified property which is part of 
     a qualified renewable energy facility under section 48D.''.
       (3) Section 50(a)(2)(E) of such Code is amended by striking 
     ``or 48C(b)(2)'' and inserting ``48C(b)(2), or 48D(c)''.
       (4) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 48C the 
     following new item:

``48D. Renewable energy generation and storage credit.''.

[[Page S5614]]

       (c) Effective Date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2020, under rules similar to the rules of section 48(m) of 
     the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

     SEC. 71205. RENEWABLE ENERGY GRANT PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means 
     each of the following:
       (A) A unit of State or local government.
       (B) A tax-exempt nonprofit organization.
       (C) A community-owned energy generation facility or energy 
     storage facility located in a disadvantaged community.
       (D) A community-based energy cooperative or a similar group 
     of individuals within a community who are pursuing an 
     eligible project described in subsection (d).
       (E) A partnership between--
       (i) 1 or more of the entities described in subparagraphs 
     (A) through (D); and
       (ii)(I) an electric utility; or
       (II) a private entity.
       (2) Energy storage facility.--The term ``energy storage 
     facility'' means a facility that receives, stores, and 
     delivers electricity.
       (3) Program.--The term ``program'' means the grant program 
     established under subsection (b).
       (4) Qualifying community energy proposal.--The term 
     ``qualifying community energy proposal'' means a proposal to 
     deploy and implement renewable energy generation, energy 
     storage technology, energy efficiency upgrades, energy demand 
     management strategies, or distributed renewable energy 
     resources that a qualifying community energy study determines 
     can reduce the runtime of an existing or planned peaker plant 
     or otherwise reduce or replace the need for an existing or 
     planned peaker plant.
       (5) Qualifying community energy study.--The term 
     ``qualifying community energy study'' means a study or 
     assessment that--
       (A) seeks to identify clean energy strategies to reduce the 
     runtime of an existing or planned peaker plant or otherwise 
     reduce or replace the need for an existing or planned peaker 
     plant, including strategies that involve--
       (i) renewable energy generation;
       (ii) energy storage technology;
       (iii) energy efficiency upgrades;
       (iv) energy demand management strategies; or
       (v) distributed renewable energy deployment; and
       (B) is led by or performed in partnership with the 
     communities directly impacted by pollution from a peaker 
     plant that is located within the same or an adjacent census 
     tract.
       (6) Qualifying energy storage facility.--The term 
     ``qualifying energy storage facility'' means an energy 
     storage facility that--
       (A) is colocated with a qualifying renewable energy 
     facility and operates primarily to receive, store, and 
     deliver renewable energy generated by that qualifying 
     renewable energy facility;
       (B) has entered into a contract with 1 or more qualifying 
     renewable energy facilities such that the energy storage 
     system operates primarily to receive, store, and deliver 
     renewable energy generated by those qualifying renewable 
     energy facilities; or
       (C) receives electricity during periods of typically high 
     production of renewable energy (as a percentage of the grid 
     generation mix), as determined by the operator of the 
     applicable electrical grid.
       (7) Qualifying renewable energy facility.--The term 
     ``qualifying renewable energy facility'' means a facility 
     that--
       (A) generates renewable energy; and
       (B)(i) is colocated with a qualifying energy storage 
     facility; or
       (ii) has entered into a contract described in paragraph 
     (6)(B) with 1 or more qualifying energy storage facilities.
       (8) Renewable energy.--The term ``renewable energy'' means 
     electricity that is generated by or derived from, as 
     applicable--
       (A) a low-impact hydroelectric facility certified by the 
     Low Impact Hydropower Institute;
       (B) solar energy;
       (C) wind energy;
       (D) geothermal energy;
       (E) tidal energy; or
       (F) wave energy.
       (b) Establishment.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall establish a grant 
     program to assist eligible entities in--
       (1) carrying out projects for the construction, 
     reconstruction, erection, installation, or acquisition of 
     qualifying renewable energy facilities and qualifying energy 
     storage facilities;
       (2) carrying out projects for the implementation of 
     qualifying community energy proposals; and
       (3) developing and carrying out qualifying community energy 
     studies.
       (c) Applications.--To be eligible to receive a grant under 
     the program, an eligible entity shall submit to the Secretary 
     an application at such time, in such manner, and containing 
     such information as the Secretary may require.
       (d) Eligible Projects and Qualifying Community Energy 
     Studies.--The Secretary may provide a grant under the program 
     for--
       (1) a project described in subsection (b)(1) only if each 
     qualifying renewable energy facility and qualifying energy 
     storage facility to be constructed, reconstructed, erected, 
     installed, or acquired pursuant to the project will--
       (A) be located in, or provide a direct and significant 
     benefit to, a disadvantaged community that is located 
     within--
       (i) the same census tract as an existing or planned peaker 
     plant; or
       (ii) a census tract that is adjacent to a census tract in 
     which an existing or planned peaker plant is or will be 
     located; and
       (B) at a minimum, discharge electricity at such times as a 
     peaker plant within the same electrical grid load zone would 
     operate to meet peak electricity demand, as determined by the 
     operator of the applicable electrical grid;
       (2) a project described in subsection (b)(2) only if the 
     qualifying community energy proposal to be implemented 
     pursuant to the project will be implemented in, or provide a 
     direct and significant benefit to, a disadvantaged community 
     that is located within a census tract described in clause (i) 
     or (ii) of paragraph (1)(A); and
       (3) the development and carrying out of a qualifying 
     community energy study only if the qualifying community 
     energy study will provide for engagement with, and 
     incorporate feedback from, each disadvantaged community that 
     is located within a census tract described in clause (i) or 
     (ii) of paragraph (1)(A).
       (e) Technical Assistance Grants.--The Secretary may use 
     amounts appropriated under subsection (i) to provide grants 
     to eligible entities for the cost of acquiring technical 
     assistance for the preparation and submission of an 
     application under subsection (c).
       (f) Priority for Certain Eligible Entities.--In evaluating 
     applications submitted by eligible entities described in 
     subsection (a)(1)(B), the Secretary shall give priority to 
     applications submitted by local, community-based 
     organizations or energy cooperatives.
       (g) Cost Sharing.--
       (1) In general.--Except as provided in paragraph (2), with 
     respect to each project described in paragraph (1) or (2) of 
     subsection (b) for which a grant is provided under the 
     program, the maximum amount provided for the project under 
     the program shall not exceed 60 percent of the total cost 
     incurred by the applicable eligible entity for, as 
     applicable--
       (A) the construction, reconstruction, erection, 
     installation, or acquisition of the applicable qualifying 
     renewable energy facility or qualifying energy storage 
     facility; or
       (B) the implementation of the applicable qualifying 
     community energy proposal.
       (2) Local, community-based organizations and energy 
     cooperatives.--With respect to a project described in 
     paragraph (1) that is carried out by, or for which an 
     application is submitted by, a local, community-based 
     organization or an energy cooperative, the maximum amount 
     provided for the project under the program shall not exceed 
     80 percent of the total cost incurred by the local, 
     community-based organization or energy cooperative for the 
     activities described in subparagraph (A) or (B) of that 
     paragraph, as applicable.
       (h) Community Engagement.--In carrying out this section, 
     the Secretary shall initiate and carry out public engagement, 
     particularly with residents and stakeholders from 
     disadvantaged communities and communities in or adjacent to 
     areas with existing peaker plants identified in a report 
     under section 71203(a), to ensure that--
       (1)(A) the public has input into the formulation of the 
     program; and
       (B) based on that input, the program best addresses the 
     needs and circumstances of disadvantaged communities; and
       (2) the public has information relating to the program, 
     including--
       (A) the benefits of, and opportunities for, eligible 
     projects under the program; and
       (B) the ways in which disadvantaged communities can best 
     use the program to address the clean energy goals of those 
     disadvantaged communities.
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out the program 
     not more than $1,000,000,000 for each of fiscal years 2022 
     through 2032.
                                 ______