[Congressional Record (Bound Edition), Volume 151 (2005), Part 9]
[Senate]
[Pages 12319-12323]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 770. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

       On page 131, line 20, after ``landfill gas,'' insert the 
     following: ``livestock methane,''
                                 ______
                                 
  SA 771. Mr. JEFFORDS (for himself, and Mr. Kerry) submitted an 
amendment intended to be proposed by him to the bill H.R. 6, Reserved; 
which was ordered to lie on the table; as follows:

       On page 159, after line 23, add the following:

     SEC. 211. RENEWABLE PORTFOLIO STANDARD.

       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. 609. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Definitions.--In this section:
       ``(1) Biomass.--
       ``(A) In general.--The term `biomass' means--
       ``(i) organic material from a plant that is planted for the 
     purpose of being used to produce energy;
       ``(ii) nonhazardous, cellulosic or agricultural waste 
     material that is segregated from other waste materials and is 
     derived from--

       ``(I) a forest-related resource, including--

       ``(aa) mill and harvesting residue;
       ``(bb) precommercial thinnings;
       ``(cc) slash; and
       ``(dd) brush;

       ``(II) agricultural resources, including--

       ``(aa) orchard tree crops;
       ``(bb) vineyards;
       ``(cc) grains;
       ``(dd) legumes;
       ``(ee) sugar; and
       ``(ff) other crop by-products or residues; or

       ``(III) miscellaneous waste such as--

[[Page 12320]]

       ``(aa) waste pallet;
       ``(bb) crate; and
       ``(cc) landscape or right-of-way tree trimmings;
       ``(iii) animal waste that is converted to a fuel rather 
     than directly combusted, the residue of which is converted to 
     a biological fertilizer, oil, or activated carbon; and
       ``(iv) livestock methane.
       ``(B) Exclusions.--The term `biomass' shall not include--
       ``(i) municipal solid waste that is incinerated;
       ``(ii) recyclable post-consumer waste paper;
       ``(iii) painted, treated, or pressurized wood;
       ``(iv) wood contaminated with plastics or metals; or
       ``(v) tires.
       ``(2) Distributed generation.--The term `distributed 
     generation' means reduced electricity consumption from the 
     electric grid due to use by a customer of renewable energy 
     generated at a customer site.
       ``(3) Incremental hydropower.--The term `incremental 
     hydropower' means additional generation achieved from 
     increased efficiency after January 1, 2003, at a 
     hydroelectric dam that was placed in service before January 
     1, 2003.
       ``(4) Landfill gas.--The term `landfill gas' means gas 
     generated from the decomposition of household solid waste, 
     commercial solid waste, and industrial solid waste disposed 
     of in a municipal solid waste landfill unit (as those terms 
     are defined in regulations promulgated under subtitle D of 
     the Solid Waste Disposal Act (42 U.S.C. 6941 et seq.)).
       ``(5) Renewable energy.--The term `renewable energy' means 
     electricity generated from
       ``(A) a renewable energy source; or
       ``(B) hydrogen that is produced from a renewable energy 
     source.
       ``(6) Renewable energy source.--The term `renewable energy 
     source' means--
       ``(A) wind;
       ``(B) ocean waves;
       ``(C) biomass;
       ``(D) solar;
       ``(E) landfill gas;
       ``(F) incremental hydropower; or
       ``(G) geothermal.
       ``(7) Retail electric supplier.--The term `retail electric 
     supplier' means a person or entity that sells retail 
     electricity to consumers, and which sold not less than 
     500,000 megawatt-hours of electric energy to consumers for 
     purposes other than resale during the preceding calendar 
     year.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(b) Renewable Energy Requirements.--
       ``(1) In general.--For each calendar year beginning in 
     Calendar year 2006, each retail electric supplier shall 
     submit to the Secretary, not later than April 30 of each 
     year, renewable energy credits in an amount equal to the 
     required annual percentage of the retail electric supplier's 
     total amount of kilowatt-hours of non-hydropower (excluding 
     incremental hydropower) electricity sold to retail consumers 
     during the previous calendar year.
       ``(2) Carryover.--A renewable energy credit for any year 
     that is not used to satisfy the minimum requirement for that 
     year may be carried over for use within the next two years.
       ``(c) Required Annual Percentage.--Of the total amount of 
     non-hydropower (excluding incremental hydropower) electricity 
     sold by each retail electric supplier during a calendar year, 
     the amount generated by renewable energy sources shall be not 
     less than the percentage specified below:
                                                          Percentage of
                                                       Renewable energy
``Calendar years:                                            Each year:
  2006-2009.......................................................5....

  2010-2014......................................................10....

  2015-2019......................................................15....

  2020 and subsequent years......................................20....

       ``(d) Submission of Renewable Energy Credits.--
       ``(1) In general.--To meet the requirements under 
     subsection (b), a retail electric supplier shall submit to 
     the Secretary either--
       ``(A) renewable energy credits issued to the retail 
     electric supplier under subsection (f);
       ``(B) renewable energy credits obtained by purchase or 
     exchange under subsection (g);
       ``(C) renewable energy credits purchased from the United 
     States under subsection (h); or
       ``(D) any combination of credits under subsections (f), (g) 
     or (h).
       ``(2) Prohibition on double counting.--A credit may be 
     counted toward compliance with subsection (b) only once.
       ``(e) Renewable Energy Credit Program.--The Secretary shall 
     establish, not later than 1 year after the date of enactment 
     of this section, a program to issue, monitor the sale or 
     exchange of, and track, renewable energy credits.
       ``(f) Issuance of Renewable Energy Credits.--
       ``(1) In general.--Under the program established in 
     subsection (e), 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.
       ``(2) Application.--An application for the issuance of 
     renewable energy credits shall indicate--
       ``(A) the type of renewable energy resource used to produce 
     the electric energy;
       ``(B) the State in which the electric energy was produced; 
     and
       ``(C) any other information the Secretary determines 
     appropriate.
       ``(3) Credit value.--Except as provided in subparagraph 
     (4), the Secretary shall issue to an entity applying under 
     this subsection renewable engery credit for each kilowatt-
     hour of renewable energy generated in any State from the date 
     of enactment of this section and in each subsequent calendar 
     year.
       ``(4) Credit value for distributed generation.--The 
     Secretary shall issue 3 renewable energy credits for each 
     kilowatt-hour of distributed generation.
       ``(5) Vesting.--A renewable energy credit will vest with 
     the owner of the system or facility that generates the 
     renewable energy unless such owner explicitly transfers the 
     credit.
       ``(6) Credit eligibility.--To be eligible for a renewable 
     energy credit, the unit of electricity generated through the 
     use of a renewable energy resource shall be sold for retail 
     consumption or used by the generator. If both a renewable 
     energy resource and a non-renewable energy resource are used 
     to generate the electric energy, the Secretary shall issue 
     renewable energy credits based on the proportion of the 
     renewable energy resource used.
       ``(7) Identifying credits.--The Secretary shall identify 
     renewable energy credits by the type and date of generation.
       ``(8) Sale under purpa contract.--When a generator sells 
     electric energy generated through the use of a renewable 
     energy resource to a retail electric supplier under a 
     contract subject to section 210 of the Public Utilities 
     Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), the 
     retail electric supplier is treated as the generator of the 
     electric energy for the purposes of this section for the 
     duration of the contract.
       ``(g) Sale or Exchange of Renewable Energy Credits.--A 
     renewable energy credit may be sold or exchanged by the 
     entity issued the renewable energy credit or by any other 
     entity that acquires the renewable energy credit. Credits may 
     be sold or exchanged in any manner not in conflict with 
     existing law, including on the spot market or by contractual 
     arrangements of any duration.
       ``(h) Purchase From the United States.--The Secretary shall 
     offer renewable energy credits for sale at the lesser of 
     three cents per kilowatt-hour or 110 percent of the average 
     market value of credits for the applicable compliance period. 
     On January 1 of each year following calendar year 2006, the 
     Secretary shall adjust for inflation the price charged per 
     credit for such calendar year.
       ``(i) State Programs.--Nothing in this section shall 
     preclude any State from requiring additional renewable energy 
     generation in the State under any renewable energy program 
     conducted by the State.
       ``(j) Consumer Allocation.--The rates charged to classes of 
     consumers by a retail electric supplier shall reflect a 
     proportional percentage of the cost of generating or 
     acquiring the required annual percentage of renewable energy 
     under subsection (b). A retail electric supplier shall not 
     represent to any customer or prospective customer that any 
     product contains more than the percentage of eligible 
     resources if the additional amount of eligible resources is 
     being used to satisfy the renewable generation requirement 
     under subsection (b).
       ``(k) Enforcement.--A retail electric supplier that does 
     not submit renewable energy credits as required under 
     subsection (b) shall be liable for the payment of a civil 
     penalty. That penalty shall be calculated on the basis of the 
     number of renewable energy credits not submitted, multiplied 
     by the lesser of 4.5 cents or 300 percent of the average 
     market value of credits for the compliance period.
       ``(l) Information Collection.--The Secretary may collect 
     the information necessary to verify and audit--
       ``(1) the annual electric energy generation and renewable 
     energy generation of any entity applying for renewable energy 
     credits under this section;
       ``(2) the validity of renewable energy credits submitted by 
     a retail electric supplier to the Secretary; and
       ``(3) the quantity of electricity sales of all retail 
     electric suppliers.
       ``(m) Voluntary Participation.--The Secretary may issue a 
     renewable energy credit pursuant to subsection (f) to any 
     entity not subject to the requirements of this section only 
     if the entity applying for such credit meets the terms and 
     conditions of this section to the same extent as entities 
     subject to this section.
       ``(n) State Renewable Energy Grant Program.--
       ``(1) Distribution to states.--The Secretary shall 
     distribute amounts received from sales under subsection (h) 
     and from amounts received under subsection (k) to States to 
     be used for the purposes of this section.
       ``(2) Regional equity program.--
       ``(A) Establishment of program.--Within 1 year from the 
     date of enactment of this section, the Secretary shall 
     establish a program to promote renewable energy production 
     and use consistent with the purposes of this section.

[[Page 12321]]

       ``(B) Eligibility.--The Secretary shall make funds 
     available under this section to State energy agencies for 
     grant programs for--
       ``(i) renewable energy research and development;
       ``(ii) loan guarantees to encourage construction of 
     renewable energy facilities;
       ``(iii) consumer rebate or other programs to offset costs 
     of small residential or small commercial renewable energy 
     systems including solar hot water; or
       ``(iv) promoting distributed generation.
       ``(3) Allocation preferences.--In allocating funds under 
     the program, the Secretary shall give preference to--
       ``(A) States in regions which have a disproportionately 
     small share of economically sustainable renewable energy 
     generation capacity; and
       ``(B) State grant programs most likely to stimulate or 
     enhance innovative renewable energy technologies.''.
                                 ______
                                 
  SA 772. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

       On page 159, after line 23, add the following:

     SEC. 211. RENEWABLE PORTFOLIO STANDARD.

       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. 609. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Definitions.--In this section:
       ``(1) Biomass.--
       ``(A) In general.--The term `biomass' means--
       ``(i) organic material from a plant that is planted for the 
     purpose of being used to produce energy;
       ``(ii) nonhazardous, cellulosic or agricultural waste 
     material that is segregated from other waste materials and is 
     derived from--

       ``(I) a forest-related resource, including--

       ``(aa) mill and harvesting residue;
       ``(bb) precommercial thinnings;
       ``(cc) slash; and
       ``(dd) brush;

       ``(II) agricultural resources, including--

       ``(aa) orchard tree crops;
       ``(bb) vineyards;
       ``(cc) grains;
       ``(dd) legumes;
       ``(ee) sugar; and
       ``(ff) other crop by-products or residues; or

       ``(III) miscellaneous waste such as--

       ``(aa) waste pallet;
       ``(bb) crate; and
       ``(cc) landscape or right-of-way tree trimmings;
       ``(iii) animal waste that is converted to a fuel rather 
     than directly combusted, the residue of which is converted to 
     a biological fertilizer, oil, or activated carbon; and
       ``(iv) livestock methane.
       ``(B) Exclusions.--The term `biomass' shall not include--
       ``(i) municipal solid waste that is incinerated;
       ``(ii) recyclable post-consumer waste paper;
       ``(iii) painted, treated, or pressurized wood;
       ``(iv) wood contaminated with plastics or metals; or
       ``(v) tires.
       ``(2) Distributed generation.--The term `distributed 
     generation' means reduced electricity consumption from the 
     electric grid due to use by a customer of renewable energy 
     generated at a customer site.
       ``(3) Incremental hydropower.--The term `incremental 
     hydropower' means additional generation achieved from 
     increased efficiency after January 1, 2003, at a 
     hydroelectric dam that was placed in service before January 
     1, 2003.
       ``(4) Landfill gas.--The term `landfill gas' means gas 
     generated from the decomposition of household solid waste, 
     commercial solid waste, and industrial solid waste disposed 
     of in a municipal solid waste landfill unit (as those terms 
     are defined in regulations promulgated under subtitle D of 
     the Solid Waste Disposal Act (42 U.S.C. 6941 et seq.)).
       ``(5) Renewable energy.--The term `renewable energy' means 
     electricity generated from
       ``(A) a renewable energy source; or
       ``(B) hydrogen that is produced from a renewable energy 
     source.
       ``(6) Renewable energy source.--The term `renewable energy 
     source' means--
       ``(A) wind;
       ``(B) ocean waves;
       ``(C) biomass;
       ``(D) solar;
       ``(E) landfill gas;
       ``(F) incremental hydropower; or
       ``(G) geothermal.
       ``(7) Retail electric supplier.--The term `retail electric 
     supplier' means a person or entity that sells retail 
     electricity to consumers, and which sold not less than 
     500,000 megawatt-hours of electric energy to consumers for 
     purposes other than resale during the preceding calendar 
     year.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(b) Renewable Energy Requirements.--
       ``(1) In general.--For each calendar year beginning in 
     Calendar year 2006, each retail electric supplier shall 
     submit to the Secretary, not later than April 30 of each 
     year, renewable energy credits in an amount equal to the 
     required annual percentage of the retail electric supplier's 
     total amount of kilowatt-hours of non-hydropower (excluding 
     incremental hydropower) electricity sold to retail consumers 
     during the previous calendar year.
       ``(2) Carryover.--A renewable energy credit for any year 
     that is not used to satisfy the minimum requirement for that 
     year may be carried over for use within the next two years.
       ``(c) Required Annual Percentage.--Of the total amount of 
     non-hydropower (excluding incremental hydropower) electricity 
     sold by each retail electric supplier during a calendar year, 
     the amount generated by renewable energy sources shall be not 
     less than the percentage specified below:
                                                          Percentage of
                                                       Renewable energy
``Calendar years:                                            Each year:
  2006-2009.......................................................5....

  2010-2014......................................................10....

  2015-2019......................................................15....

  2020 and subsequent years......................................20....

       ``(d) Submission of Renewable Energy Credits.--
       ``(1) In general.--To meet the requirements under 
     subsection (b), a retail electric supplier shall submit to 
     the Secretary either--
       ``(A) renewable energy credits issued to the retail 
     electric supplier under subsection (f);
       ``(B) renewable energy credits obtained by purchase or 
     exchange under subsection (g);
       ``(C) renewable energy credits purchased from the United 
     States under subsection (h); or
       ``(D) any combination of credits under subsections (f), (g) 
     or (h).
       ``(2) Prohibition on double counting.--A credit may be 
     counted toward compliance with subsection (b) only once.
       ``(e) Renewable Energy Credit Program.--The Secretary shall 
     establish, not later than 1 year after the date of enactment 
     of this section, a program to issue, monitor the sale or 
     exchange of, and track, renewable energy credits.
       ``(f) Issuance of Renewable Energy Credits.--
       ``(1) In general.--Under the program established in 
     subsection (e), 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.
       ``(2) Application.--An application for the issuance of 
     renewable energy credits shall indicate--
       ``(A) the type of renewable energy resource used to produce 
     the electric energy;
       ``(B) the State in which the electric energy was produced; 
     and
       ``(C) any other information the Secretary determines 
     appropriate.
       ``(3) Credit value.--Except as provided in subparagraph 
     (4), the Secretary shall issue to an entity applying under 
     this subsection renewable energy credit for each kilowatt-
     hour of renewable energy generated in any State from the date 
     of enactment of this section and in each subsequent calendar 
     year.
       ``(4) Credit value for distributed generation.--The 
     Secretary shall issue 3 renewable energy credits for each 
     kilowatt-hour of distributed generation.
       ``(5) Vesting.--A renewable energy credit will vest with 
     the owner of the system or facility that generates the 
     renewable energy unless such owner explicitly transfers the 
     credit.
       ``(6) Credit eligibility.--To be eligible for a renewable 
     energy credit, the unit of electricity generated through the 
     use of a renewable energy resource shall be sold for retail 
     consumption or used by the generator. If both a renewable 
     energy resource and a non-renewable energy resource are used 
     to generate the electric energy, the Secretary shall issue 
     renewable energy credits based on the proportion of the 
     renewable energy resource used.
       ``(7) Identifying credits.--The Secretary shall identify 
     renewable energy credits by the type and date of generation.
       ``(8) Sale under purpa contract.--When a generator sells 
     electric energy generated through the use of a renewable 
     energy resource to a retail electric supplier under a 
     contract subject to section 210 of the Public Utilities 
     Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), the 
     retail electric supplier is treated as the generator of the 
     electric energy for the purposes of this section for the 
     duration of the contract.
       ``(g) Sale or Exchange of Renewable Energy Credits.--A 
     renewable energy credit may be sold or exchanged by the 
     entity issued the renewable energy credit or by any other 
     entity that acquires the renewable energy credit. Credits may 
     be sold or exchanged in any manner not in conflict with 
     existing law, including on the spot market or by contractual 
     arrangements of any duration.
       ``(h) Purchase From the United States.--The Secretary shall 
     offer renewable energy credits for sale at the lesser of 
     three cents per kilowatt-hour or 110 percent of the average 
     market value of credits for the applicable compliance period. 
     On January 1 of each year following calendar year 2006, the 
     Secretary shall adjust for inflation the price charged per 
     credit for such calendar year.

[[Page 12322]]

       ``(i) State Programs.--Nothing in this section shall 
     preclude any State from requiring additional renewable energy 
     generation in the State under any renewable energy program 
     conducted by the State.
       ``(j) Consumer Allocation.--The rates charged to classes of 
     consumers by a retail electric supplier shall reflect a 
     proportional percentage of the cost of generating or 
     acquiring the required annual percentage of renewable energy 
     under subsection (b). A retail electric supplier shall not 
     represent to any customer or prospective customer that any 
     product contains more than the percentage of eligible 
     resources if the additional amount of eligible resources is 
     being used to satisfy the renewable generation requirement 
     under subsection (b).
       ``(k) Enforcement.--A retail electric supplier that does 
     not submit renewable energy credits as required under 
     subsection (b) shall be liable for the payment of a civil 
     penalty. That penalty shall be calculated on the basis of the 
     number of renewable energy credits not submitted, multiplied 
     by the lesser of 4.5 cents or 300 percent of the average 
     market value of credits for the compliance period.
       ``(l) Information Collection.--The Secretary may collect 
     the information necessary to verify and audit--
       ``(1) the annual electric energy generation and renewable 
     energy generation of any entity applying for renewable energy 
     credits under this section;
       ``(2) the validity of renewable energy credits submitted by 
     a retail electric supplier to the Secretary; and
       ``(3) the quantity of electricity sales of all retail 
     electric suppliers.
       ``(m) Voluntary Participation.--The Secretary may issue a 
     renewable energy credit pursuant to subsection (f) to any 
     entity not subject to the requirements of this section only 
     if the entity applying for such credit meets the terms and 
     conditions of this section to the same extent as entities 
     subject to this section.
       ``(n) State Renewable Energy Grant Program.--
       ``(1) Distribution to states.--The Secretary shall 
     distribute amounts received from sales under subsection (h) 
     and from amounts received under subsection (k) to States to 
     be used for the purposes of this section.
       ``(2) Regional equity program.--
       ``(A) Establishment of program.--Within 1 year from the 
     date of enactment of this section, the Secretary shall 
     establish a program to promote renewable energy production 
     and use consistent with the purposes of this section.
       ``(B) Eligibility.--The Secretary shall make funds 
     available under this section to State energy agencies for 
     grant programs for--
       ``(i) renewable energy research and development;
       ``(ii) loan guarantees to encourage construction of 
     renewable energy facilities;
       ``(iii) consumer rebate or other programs to offset costs 
     of small residential or small commercial renewable energy 
     systems including solar hot water; or
       ``(iv) promoting distributed generation.
       ``(3) Allocation preferences.--In allocating funds under 
     the program, the Secretary shall give preference to--
       ``(A) States in regions which have a disproportionately 
     small share of economically sustainable renewable energy 
     generation capacity; and
       ``(B) State grant programs most likely to stimulate or 
     enhance innovative renewable energy technologies.''.
                                 ______
                                 
  SA 773. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

       At the appropriate point, insert the following:

      SEC. RENEWABLE PORTFOLIO STANDARD.

        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. 606. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Renewable Energy Requirement.--
       ``(1) In general.--Each electric utility that sells 
     electricity to electric consumers shall obtain a percentage 
     of the base amount of electricity it sells to electric 
     consumers in any calendar year from new renewable energy or 
     existing renewable energy. The percentage obtained in a 
     calendar year shall not be less than the amount specified in 
     the following table:

 ``Calendar year                              Minimum annual percentage
2008 through 2011...................................................2.5
2012 through 2015...................................................5.0
2016 through 2019...................................................7.5
2020 through 2030..................................................10.0

       ``(2) Means of compliance.--An electric utility shall meet 
     the requirements of paragraph (1) by--
       ``(A) generating electric energy using new renewable energy 
     or existing renewable energy;
       ``(B) purchasing electric energy generated by new renewable 
     energy or existing renewable energy;
       ``(C) purchasing renewable energy credits issued under 
     subsection (b); or
       ``(D) a combination of the foregoing.
       ``(b) Renewable Energy Credit Trading Program.--
       ``(1) Not later than January 1, 2005, the Secretary shall 
     establish a renewable energy credit trading program to permit 
     an electric utility that does not generate or purchase enough 
     electric energy from renewable energy to meet its obligations 
     under subsection (a)(l) to satisfy such requirements by 
     purchasing sufficient renewable energy credits.
       ``(2) As part of such program the Secretary shall--
       ``(A) issue renewable energy credits to generators of 
     electric energy from new renewable energy;
       ``(B) sell renewable energy credits to electric utilities 
     at the rate of 1.5 cents per kilowatt-hour (as adjusted for 
     inflation under subsection (g));
       ``(C) ensure that a kilowatt hour, including the associated 
     renewable energy credit, shall be used only once for purposes 
     of compliance with this section.;
       ``(D) allow double credits for generation from facilities 
     on Indian Lands, and triple credits for generation from small 
     renewable distributed generators, i.e., those no larger than 
     one megawatt.
       ``(3) Credits under paragraph (2)(A) may only be used for 
     compliance with this section for 3 years from the date 
     issued.
       ``(c) Enforcement.--
       ``(1) Civil penalties.--Any electric utility that fails to 
     meet the renewable energy requirements of subsection (a) 
     shall be subject to a civil penalty.
       ``(2) Amount of penalty.--The amount of the civil penalty 
     shall be determined by multiplying the number of kilowatt-
     hours of electric energy sold to electric consumers in 
     violation of subsection (a) by the greater of 1.5 cents 
     (adjusted for inflation under subsection (g)) or 200 percent 
     of the average market value of renewable energy credits 
     during the year in which the violation occurred.
       ``(3) Mitigation or waiver.--The Secretary may mitigate or 
     waive a civil penalty under this subsection if the electric 
     utility was unable to comply with subsection (a) for reasons 
     outside of the reasonable control of the utility.
       ``(4) Procedure for assessing penalty.--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 of 1954 (42 U.S.C. 6303).
       ``(d) State Renewable Energy Account Program.--
       ``(1) The Secretary shall establish, not later than 
     December 31, 2008, State renewable energy account program.
       ``(2) All money collected by the Secretary from the sale of 
     renewable energy credits and the assessment of civil 
     penalties under this section shall be deposited into the 
     renewable energy account established pursuant to this 
     subsection. The State renewable energy account shall be held 
     by the Secretary and shall not be transferred to the Treasury 
     Department.
       ``(3) Proceeds deposited in the State renewable energy 
     account shall be used by the Secretary, subject to 
     appropriations, for a program to provide grants to the State 
     agency respopsible for developing State energy conservation 
     plans under section 363 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 uselof electricity at customer 
     sites such as solar water heating.
       ``(4) The Secretary may issue guidelines and criteria for 
     grants awarded under this subsection. State energy offices 
     receiving grants under this section shall maintain such 
     records and evidence of compliance as the Secretary may 
     require.
       ``(5) In allocating funds under this program, the Secretary 
     shall give preference to States, in regions which have a 
     disproportionately small share of economically sustainable 
     renewable energy generation capacity; and to State programs 
     to stimulate or enhance innovative renewable energy 
     technologies.
       ``(e) Rules.--The Secretary shall issue rules implementing 
     this section not later than one year after the date of 
     enactment of this section.
       ``(f) Exemptions.--This section shall not apply in any 
     calendar year to an electric utility.
       ``(1) that sold less than 4,000,000 megawatt-hours of 
     electric energy to electric consumers during the preceding 
     calendar year; or
       ``(2) in Hawaii.
       ``(g) Inflation Adjustment.--Not later than December 31 of 
     each year beginning in 2008, the Secretary shall adjust for 
     inflation the price of a renewable energy credit under 
     subsection (b)(2)(B) and the amount of the civil penalty per 
     kilowatt-hour under subsection (c)(2).
       ``(h) State Programs.--Nothing in this section shall 
     diminish any authority of a State or political subdivision 
     thereof to adopt or enforce any law or regulation respecting 
     renewable energy, but no such law or regulation shall relieve 
     any person of any requirement otherwise applicable under this 
     section. 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.

[[Page 12323]]

       ``(i) Definitions.--For purposes of this section:
       ``(1) The term `base amount of electricity' means the total 
     amount of electricity sold by an electric utility to electric 
     consumers in a calendar year, excluding--
       ``(A) electricity generated by a hydroelectric facility 
     (except incremental hydropower); and
       ``(B) electricity generated through the incineration of 
     municipal solid waste.
       ``(2) The term `existing renewable energy' means, except as 
     provided in paragraph (3)(B), electric energy generated at a 
     facility (including a distributed generation facility) placed 
     in service prior to the date of enactment of this section 
     from solar, wind, ocean, current, wave, tidal or geothermal 
     energy; biomass (as defined in section 504(b)); or landfill 
     gas.
       ``(3) The term `new renewable energy' means--
       ``(A) electric energy generated at a facility (including a 
     distributed generation facility) placed in service on or 
     after the date of enactment of this section from solar, wind, 
     ocean, current, wave, tidal or geothermal energy; biomass (as 
     defined in section 504(b)); ladfill gas; or incremental 
     hydropower; and
       ``(B) for electric energy generated at a facility 
     (including a distributed generation facility) placed in 
     service prior to the date of enactment of this section--
       ``(i) the additional energy above the average generation in 
     the 3 years preceding the date of enactment of this section 
     at the facility from solar, wind, or ocean energy; biomass 
     (as defined in section 504(b)); landfill gas or incremental 
     hydropower.
       ``(ii) the incremental geothermal production.
       ``(4) The term `distributed generation facility' means a 
     facility at a customer site.
       `` (5) The term `incremental hydropower' means additional 
     energy generated as a result of efficiency improvements or 
     capacity additions made on or after the date of enactment of 
     this section or the effective date of an existing applicable 
     State renewable portfolio standard program at a hydroelectric 
     facility that was placed in service before that date. The 
     term does not include additional energy generated as a result 
     of operational changes not directly associated with 
     efficiency improvements or capacity additions. Efficiency 
     improvements and capacity additions shall be measured on the 
     basis of the same water flow information used to determine a 
     historic average annual generation baseline for the 
     hydroelectric facility and certified by the Secretary or the 
     Federal Energy Regulatory Commission.
       ``(6) Geothermal energy.--The term `geothermal energy' 
     means energy derived from a geothermal deposit (within the 
     meaning of section 613(e)(2) of the Internal Revenue Code of 
     1986).
       ``(7) Incremental geothermal production.--
       ``(A) In general.--The term `incremental geothermal 
     production' means for any year the excess of--
       (i) the total kilowatt hours of electricity produced from a 
     facility (including a distributed generation facility) using 
     geothermal energy, over
       ``(ii) the average annual kilowatt hours produced at such 
     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 such 
     7-year period.
       ``(B) Special rule.--A facility described in subparagraph 
     (A) which was placed in service at least 7 years before the 
     date of enactment of this section commencing with the year in 
     which such 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 
     not to exceed 30 percent.
       ``(j) Sunset.--This section expires on December 31, 
     2030.''.
                                 ______
                                 
  SA 774. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

       On page 159, after line 23, add the following:

     SEC. ____. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.

       The Public Utility Regulatory Policies Act of 1978 (16 
     U.S.C. 2601 et seq.) is amended in title VI by adding at the 
     end the following:

     ``SEC. 609. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION 
                   GRANTS.

       ``(a) Definitions.--In this section:
       ``(1) The term `eligible grantee' means a local government 
     or municipality, peoples' utility district, irrigation 
     district, and cooperative, nonprofit, or limited-dividend 
     association in a rural area.
       ``(2) The term `incremental hydropower' means additional 
     generation achieved from increased efficiency after January 
     1, 2005, at a hydroelectric dam that was placed in service 
     before January 1, 2005.
       ``(3) The term `renewable energy' means electricity 
     generated from--
       ``(A) a renewable energy source; or
       ``(B) hydrogen, other than hydrogen produced from a fossil 
     fuel, that is produced from a renewable energy source.
       ``(4) The term `renewable energy source' means--
       ``(A) wind;
       ``(B) ocean waves;
       ``(C) biomass;
       ``(D) solar
       ``(E) landfill gas;
       ``(F) incremental hydropower;
       ``(G) livestock methane; or
       ``(H) geothermal energy.
       ``(5) The term `rural area' means a city, town, or 
     unincorporated area that has a population of not more than 
     10,000 inhabitants.
       ``(b) Grants.--The Secretary, in consultation with the 
     Secretary of Agriculture and the Secretary of the Interior, 
     may provide grants under this section to eligible grantees 
     for the purpose of--
       ``(1) increasing energy efficiency, siting or upgrading 
     transmission and distribution lines serving rural areas,; or
       ``(2) providing or modernizing electric generation 
     facilities that serve rural areas.
       ``(c) Grant Administration.--(1) The Secretary shall make 
     grants under this section based on a determination of cost-
     effectiveness and the most effective use of the funds to 
     achieve the purposes described in subsection (b).
       ``(2) For each fiscal year, the Secretary shall allocate 
     grant funds under this section equally between the purposes 
     described in paragraphs (1) and (2) of subsection (b).
       ``(3) In making grants for the purposes described in 
     subsection (b)(2), the Secretary shall give preference to 
     renewable energy facilities.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $20,000,000 for each of fiscal years 2006 through 2012.''.

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