Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	159,219	n/a	n/a
Reported in House	190,427	1,292 Show Changes Hide Changes	28%
Engrossed in House	245,590	2,258	41%
Placed on Calendar Senate	244,332	9	0%

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HR 2454 IHRHCommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 2454CommentsClose CommentsPermalink

To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

May 15, 2009CommentsClose CommentsPermalink

Mr. WAXMAN (for himself and Mr. MARKEY of Massachusetts) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Foreign Affairs, Financial Services, Education and Labor, Science and Technology, Transportation and Infrastructure, Natural Resources, Agriculture, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘American Clean Energy and Security Act of 2009’. CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows: CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents. CommentsClose CommentsPermalink





Sec. 2. Definitions. CommentsClose CommentsPermalink





Sec. 3. International participation. CommentsClose CommentsPermalink

TITLE I--CLEAN ENERGY

Subtitle A--Combined Efficiency and Renewable Electricity Standard

Sec. 101. Combined efficiency and renewable electricity standard. CommentsClose CommentsPermalink





‘Sec. 610. Combined efficiency and renewable electricity standardSec. 102. Clarifying State authority to adopt renewable energy incentives. CommentsClose CommentsPermalink

Subtitle B--Carbon Capture and Sequestration

Sec. 111. National strategy. CommentsClose CommentsPermalink





Sec. 112. Regulations for geologic sequestration sites. CommentsClose CommentsPermalink

‘Sec. 813. Geologic sequestration sites. CommentsClose CommentsPermalink

Sec. 113. Studies and reports. CommentsClose CommentsPermalink





Sec. 114. Carbon capture and sequestration demonstration and early deployment program. CommentsClose CommentsPermalink





Sec. 115. Commercial deployment of carbon capture and sequestration technologies. CommentsClose CommentsPermalink

Sec. 116. Performance standards for coal-fueled power plants. CommentsClose CommentsPermalink

‘Sec. 812. Performance standards for new coal-fired power plants. CommentsClose CommentsPermalink

Subtitle C--Clean Transportation

Sec. 121. Electric vehicle infrastructure. CommentsClose CommentsPermalink





Sec. 122. Large-scale vehicle electrification program. CommentsClose CommentsPermalink





Sec. 123. Plug-in electric drive vehicle manufacturing. CommentsClose CommentsPermalink





Sec. 124. Investment in clean vehicles. CommentsClose CommentsPermalink





Sec. 125. Advanced technology vehicle manufacturing incentive loans. CommentsClose CommentsPermalink





Sec. 126. Amendment to renewable fuels standard. CommentsClose CommentsPermalink





Sec. 127. Open fuel standard. CommentsClose CommentsPermalink





Sec. 128. Temporary Vehicle Trade-in Program. CommentsClose CommentsPermalink





Sec. 129. Diesel emissions reduction. CommentsClose CommentsPermalink





Sec. 130. Loan guarantees for projects to construct renewable fuel pipelines. CommentsClose CommentsPermalink

Subtitle D--State Energy and Environment Development Accounts

Sec. 131. Establishment of SEED Accounts. CommentsClose CommentsPermalink





Sec. 132. Support of State renewable energy and energy efficiency programs. CommentsClose CommentsPermalink

Subtitle E--Smart Grid Advancement

Sec. 141. Definitions. CommentsClose CommentsPermalink





Sec. 142. Assessment of Smart Grid cost effectiveness in products. CommentsClose CommentsPermalink





Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE labels. CommentsClose CommentsPermalink





Sec. 144. Smart Grid peak demand reduction goals. CommentsClose CommentsPermalink





Sec. 145. Reauthorization of energy efficiency public information program to include Smart Grid information. CommentsClose CommentsPermalink





Sec. 146. Inclusion of Smart- Grid features in appliance rebate program. CommentsClose CommentsPermalink

Subtitle F--Transmission Planning

Sec. 151. Transmission planning. CommentsClose CommentsPermalink





‘Sec. 216A. Transmission planning Sec. 152. Net metering for Federal agencies. CommentsClose CommentsPermalink





Sec. 153. Support for qualified advanced electric transmission manufacturing plants, qualified high efficiency transmission property, and qualified advanced electric transmission property. CommentsClose CommentsPermalink

Subtitle G--Technical Corrections to Energy Laws

Sec. 161. Technical corrections to Energy Independence and Security Act of 2007. CommentsClose CommentsPermalink





Sec. 162. Technical corrections to Energy Policy Act of 2005. CommentsClose CommentsPermalink

Subtitle H--Clean Energy InnovationEnergy and Efficiency Centers

Sec. 171. Clean energy innovation centersEnergy Innovation Centers. CommentsClose CommentsPermalink





Sec. 172. Building Assessment Centers. CommentsClose CommentsPermalink





Sec. 173. Centers for Energy and Environmental Knowledge and Outreach. CommentsClose CommentsPermalink

Subtitle I--Marine Spatial PlanningNuclear and Advanced Technologies

Sec. 181. Revisions to loan guarantee program authority. CommentsClose CommentsPermalink





Sec. 182. Purpose. CommentsClose CommentsPermalink





Sec. 183. Definitions. CommentsClose CommentsPermalink





Sec. 184. Clean Energy Investment Fund. CommentsClose CommentsPermalink





Sec. 185. Energy technology deployment goals. CommentsClose CommentsPermalink





Sec. 186. Clean Energy Deployment Administration. CommentsClose CommentsPermalink





Sec. 187. Direct support. CommentsClose CommentsPermalink





Sec. 188. Federal credit authority. CommentsClose CommentsPermalink





Sec. 189. General provisions. CommentsClose CommentsPermalink

Sec. 191. Study of ocean renewable energy and transmission planning and siting. CommentsClose CommentsPermalink





Sec. 192. Clean technology business competition grant program. CommentsClose CommentsPermalink





Sec. 193. National Bioenergy Partnership. CommentsClose CommentsPermalink





Sec. 194. Office of Consumer Advocacy. CommentsClose CommentsPermalink

TITLE II--ENERGY EFFICIENCY

Subtitle A--Building Energy Efficiency Programs

Sec. 201. Greater energy efficiency in building codes. CommentsClose CommentsPermalink





‘Sec. 304. Greater energy efficiency in building codes.

Sec. 202. Building retrofit program. CommentsClose CommentsPermalink




Sec. 203. Energy efficient manufactured homes. CommentsClose CommentsPermalink





Sec. 204. Building energy performance labeling program. CommentsClose CommentsPermalink





Sec. 205. Tree planting programs. CommentsClose CommentsPermalink





Sec. 206. Energy efficiency for data center buildings. CommentsClose CommentsPermalink

Subtitle B--Lighting and Appliance Energy Efficiency Programs

Sec. 211. Lighting efficiency standards. CommentsClose CommentsPermalink





Sec. 212. Other appliance efficiency standards. CommentsClose CommentsPermalink





Sec. 213. Appliance efficiency determinations and procedures. CommentsClose CommentsPermalink





‘Sec. 334. Jurisdiction and venue.

Sec. 214. Best-in-Class Appliances Deployment Program. CommentsClose CommentsPermalink




Sec. 215. Purpose of Energy StarWaterSense. CommentsClose CommentsPermalink





Sec. 216. Federal procurement of water efficient products. CommentsClose CommentsPermalink





Sec. 217. Water efficient product rebate programs. CommentsClose CommentsPermalink





Sec. 218. Certified stoves program. CommentsClose CommentsPermalink





Sec. 219. Energy Star standards. CommentsClose CommentsPermalink

Subtitle C--Transportation Efficiency

Sec. 221. Emissions standards. CommentsClose CommentsPermalink

‘Part B--Mobile Sources

‘Sec. 821. Greenhouse gas emission standards for mobile sources. CommentsClose CommentsPermalink

Sec. 222. Greenhouse gas emissions reductions through transportation efficiency. CommentsClose CommentsPermalink

‘Part D--Planning Requirements

‘Sec. 841. Greenhouse gas emissions reductions through transportation efficiency. CommentsClose CommentsPermalink

Sec. 223. SmartWay transportation efficiency program. CommentsClose CommentsPermalink

‘Sec. 822. SmartWay transportation efficiency program. CommentsClose CommentsPermalink

Sec. 224. State vehicle fleets. CommentsClose CommentsPermalink

Subtitle D--Industrial Energy Efficiency Programs

Sec. 241. Industrial plant energy efficiency standards. CommentsClose CommentsPermalink





Sec. 242. Electric and thermal waste energy recovery award program. CommentsClose CommentsPermalink





Sec. 243. Clarifying election of waste heat recovery financial incentives. CommentsClose CommentsPermalink





Sec. 244. Motor market assessment and commercial awareness program. CommentsClose CommentsPermalink





Sec. 245. Motor efficiency rebate program. CommentsClose CommentsPermalink

Subtitle E--Improvements in Energy Savings Performance Contracting

Sec. 251. Energy savings performance contracts. CommentsClose CommentsPermalink

Subtitle F--Public Institutions

Sec. 261. Public institutions. CommentsClose CommentsPermalink





Sec. 262. Community energy efficiency flexibility. CommentsClose CommentsPermalink





Sec. 263. Small community joint participation. CommentsClose CommentsPermalink





Sec. 264. Low income community energy efficiency program. CommentsClose CommentsPermalink

TITLE III--REDUCING GLOBAL WARMING POLLUTION

Sec. 301. Short title. CommentsClose CommentsPermalink

Subtitle A--Reducing Global Warming Pollution

Sec. 311. Reducing global warming pollution. CommentsClose CommentsPermalink

‘TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

‘Part A--Global Warming Pollution Reduction Goals and Targets

‘Sec. 701. Findings and purpose. CommentsClose CommentsPermalink

‘Sec. 702. Economy-wide reduction goals. CommentsClose CommentsPermalink

‘Sec. 703. Reduction targets for specified sources. CommentsClose CommentsPermalink

‘Sec. 704. Supplemental pollution reductions. CommentsClose CommentsPermalink

‘Sec. 705. Review and program recommendations. CommentsClose CommentsPermalink

‘Sec. 706. National aAcademy review. CommentsClose CommentsPermalink

‘Sec. 707. Presidential response and recommendations. CommentsClose CommentsPermalink

‘Part B--Designation and Registration of Greenhouse Gases

‘Sec. 711. Designation of greenhouse gases. CommentsClose CommentsPermalink

‘Sec. 712. Carbon dioxide equivalent value of greenhouse gases. CommentsClose CommentsPermalink

‘Sec. 713. Greenhouse gas registry. CommentsClose CommentsPermalink

‘Part C--Program Rules

‘Sec. 721. Emission allowances. CommentsClose CommentsPermalink

‘Sec. 722. Prohibition of excess emissions. CommentsClose CommentsPermalink

‘Sec. 723. Penalty for noncompliance. CommentsClose CommentsPermalink

‘Sec. 724. Trading. CommentsClose CommentsPermalink

‘Sec. 725. Banking and borrowing. CommentsClose CommentsPermalink

‘Sec. 726. Strategic reserve. CommentsClose CommentsPermalink

‘Sec. 727. Permits. CommentsClose CommentsPermalink

‘Sec. 728. International emission allowances. CommentsClose CommentsPermalink

‘Part D--Offsets

‘Sec. 731. Offsets Integrity Advisory Board. CommentsClose CommentsPermalink

‘Sec. 732. Establishment of offsets program. CommentsClose CommentsPermalink

‘Sec. 733. Eligible project types. CommentsClose CommentsPermalink

‘Sec. 734. Requirements for offset projects. CommentsClose CommentsPermalink

‘Sec. 735. Approval of offset projects. CommentsClose CommentsPermalink

‘Sec. 736. Verification of offset projects. CommentsClose CommentsPermalink

‘Sec. 737. Issuance of offset credits. CommentsClose CommentsPermalink

‘Sec. 738. Audits. CommentsClose CommentsPermalink

‘Sec. 739. Program review and revision. CommentsClose CommentsPermalink

‘Sec. 740. Early offset supply. CommentsClose CommentsPermalink

‘Sec. 741. Environmental considerations. CommentsClose CommentsPermalink

‘Sec. 742. Trading. CommentsClose CommentsPermalink

‘Sec. 743. International offset credits. CommentsClose CommentsPermalink

‘Part E--Supplemental Emissions Reductions From Reduced Deforestation

‘Sec. 751. Definitions. CommentsClose CommentsPermalink

‘Sec. 752. Findings. CommentsClose CommentsPermalink

‘Sec. 753. Supplemental emissions reductions through reduced deforestation. CommentsClose CommentsPermalink

‘Sec. 754. Requirements for international deforestation reduction program. CommentsClose CommentsPermalink

‘Sec. 755. Reports and reviews. CommentsClose CommentsPermalink

‘Sec. 756. Legal effect of part. CommentsClose CommentsPermalink

Sec. 312. Definitions. CommentsClose CommentsPermalink

‘Sec. 700. Definitions. CommentsClose CommentsPermalink

Subtitle B--Disposition of Allowances

Sec. 321. Disposition of allowances for global warming pollution reduction program. CommentsClose CommentsPermalink

‘Part H--Disposition of Allowances

‘Sec. 781. Allocation of allowances for supplemental reductions. CommentsClose CommentsPermalink

‘Sec. 782. Allocation of emission allowances. CommentsClose CommentsPermalink

‘Sec. 783. Electricity consumers. CommentsClose CommentsPermalink

‘Sec. 784. Natural gas consumers. CommentsClose CommentsPermalink

‘Sec. 785. Home heating oil and propane consumers. CommentsClose CommentsPermalink

‘Sec. 786-7. Allocations to refineries. CommentsClose CommentsPermalink

‘Sec. 788. [Struck out->][ SECTIONS RESERVED ][<-Struck out] . CommentsClose CommentsPermalink

‘Sec. 789. Climate change rebateconsumer refunds. CommentsClose CommentsPermalink

‘Sec. 790. Exchange for State-issued allowances. CommentsClose CommentsPermalink

‘Sec. 791. Auction procedures. CommentsClose CommentsPermalink

‘Sec. 792. Auctioning allowances for other entities. CommentsClose CommentsPermalink

‘Sec. 793. Establishment of funds. CommentsClose CommentsPermalink

Subtitle C--Additional Greenhouse Gas Standards

Sec. 331. Greenhouse gas standards. CommentsClose CommentsPermalink

‘TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

‘Sec. 801. Definitions. CommentsClose CommentsPermalink

‘Part A--Stationary Source Standards

‘Sec. 811. Standards of performance. CommentsClose CommentsPermalink

‘Part C--Exemptions From Other Programs

‘Sec. 831. Criteria pollutants. CommentsClose CommentsPermalink

‘Sec. 832. Hazardous air pollutantsInternational air pollution. CommentsClose CommentsPermalink

‘Sec. 833. New source reviewHazardous air pollutants. CommentsClose CommentsPermalink

‘Sec. 834. New source review. CommentsClose CommentsPermalink

‘Sec. 835. Title V permits. CommentsClose CommentsPermalink

‘Sec. 835. Existing proceedings.

Sec. 332. HFC Regulation. CommentsClose CommentsPermalink




‘Sec. 619. Hydrofluorocarbons (HFCs).

Sec. 333. Black carbon. CommentsClose CommentsPermalink

‘Part E--Black Carbon

‘Sec. 851. Black carbon. CommentsClose CommentsPermalink

Sec. 334. States. CommentsClose CommentsPermalink





Sec. 335. State programs. CommentsClose CommentsPermalink

‘Part F--Miscellaneous

‘Sec. 861. State programs. CommentsClose CommentsPermalink

Sec. 336. Enforcement. CommentsClose CommentsPermalink





Sec. 337. Conforming amendments. CommentsClose CommentsPermalink





Sec. 338. Davis-Bacon compliance. CommentsClose CommentsPermalink

Subtitle D--Carbon Market Assurance

Sec. 341. Carbon market assurance. CommentsClose CommentsPermalink

‘Part IV--Carbon Market Assurance

‘Sec. 401. Oversight and assurance of carbon markets.

Subtitle E--Additional Market Assurance

Sec. 351. Regulation of certain transactions in derivatives involving energy commodities. CommentsClose CommentsPermalink





Sec. 352. No effect on authority of the Federal Energy Regulatory Commission. CommentsClose CommentsPermalink





Sec. 353. Inspector gGeneral of the Commodity Futures Trading Commission. CommentsClose CommentsPermalink





Sec. 354. Settlement and clearing through registered derivatives clearing organizations. CommentsClose CommentsPermalink





Sec. 355. Limitation on eligibility to purchase a credit default swap. CommentsClose CommentsPermalink





Sec. 356. Transaction fees. CommentsClose CommentsPermalink





Sec. 357. No effect on authority of the Federal Trade Commission. CommentsClose CommentsPermalink





Sec. 358. Regulation of carbon derivatives markets. CommentsClose CommentsPermalink





Sec. 359. Cease-and-desist authority. CommentsClose CommentsPermalink

TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY

Subtitle A--Ensuring Real Reductions in Industrial SectorEmissions

Sec. 401. Ensuring real reductions in industrial emissions. CommentsClose CommentsPermalink

‘Part F--Ensuring Real Reductions in Industrial Emissions

‘Sec. 761. Purposes. CommentsClose CommentsPermalink

‘Sec. 762. International negotiations. CommentsClose CommentsPermalink

‘Sec. 763. Definitions. CommentsClose CommentsPermalink

‘subpart 1--emission allowance rebate program

‘Sec. 764. Eligible industrial sectors. CommentsClose CommentsPermalink

‘Sec. 765. Distribution of emission allowance rebates. CommentsClose CommentsPermalink

‘subpart 2--international reserve allowance program

‘Sec. 766. International reserve allowance program. CommentsClose CommentsPermalink

‘subpart 3--presidential determination

‘Sec. 767. Presidential reports and determinations. CommentsClose CommentsPermalink

Subtitle B--Green Jobs and Worker Transition

Part 1--Green Jobs

Sec. 421. Clean energy curriculum development grants. CommentsClose CommentsPermalink





Sec. 422. Increased funding for energy worker training program. CommentsClose CommentsPermalink

Part 2--Climate Change Worker Adjustment Assistance

Sec. 425. Petitions, eligibility requirements, and determinations. CommentsClose CommentsPermalink





Sec. 426. Program benefits. CommentsClose CommentsPermalink





Sec. 427. General provisions. CommentsClose CommentsPermalink

Subtitle C--Consumer Assistance

Sec. 431. Energy tax credit. CommentsClose CommentsPermalink





‘Sec. 36B. Energy tax credit.

Sec. 432. Energy refund program for low-income consumers. CommentsClose CommentsPermalink

Subtitle D--Exporting Clean Technology

Sec. 441. Findings and purposes. CommentsClose CommentsPermalink





Sec. 442. Definitions. CommentsClose CommentsPermalink





Sec. 443. Governance. CommentsClose CommentsPermalink





Sec. 444. Determination of eligible countries. CommentsClose CommentsPermalink





Sec. 445. Qualifying activities. CommentsClose CommentsPermalink





Sec. 446. Assistance. CommentsClose CommentsPermalink

Subtitle E--Adapting to Climate Change

Part 1--Domestic Adaptation

subpart a--national climate change adaptation program

Sec. 451. National climate change adaptation pClimate Change Adaptation Program. CommentsClose CommentsPermalink





Sec. 452. Climate services. CommentsClose CommentsPermalink





Sec. 453. State programs to build resilience to climate change impacts. CommentsClose CommentsPermalink

subpart b--public health and climate change

Sec. 461. Sense of Congress on public health and climate change. CommentsClose CommentsPermalink





Sec. 462. Relationship to other laws. CommentsClose CommentsPermalink





Sec. 463. National strategic action plan. CommentsClose CommentsPermalink





Sec. 464. Advisory board. CommentsClose CommentsPermalink





Sec. 465. Reports. CommentsClose CommentsPermalink





Sec. 466. Definitions. CommentsClose CommentsPermalink





Sec. 467. Climate change health protection and promotion fChange Health Protection and Promotion Fund. CommentsClose CommentsPermalink

subpart c--natural resource adaptation

Sec. 471. Purposes. CommentsClose CommentsPermalink





Sec. 472. Natural resources climate change adaptation policy. CommentsClose CommentsPermalink





Sec. 473. Definitions. CommentsClose CommentsPermalink





Sec. 474. Council on Environmental Quality. CommentsClose CommentsPermalink





Sec. 475. Natural Resources Climate Change Adaptation Panel. CommentsClose CommentsPermalink





Sec. 476. Natural Resources Climate Change Adaptation Strategy. CommentsClose CommentsPermalink





Sec. 477. Natural resources adaptation science and information. CommentsClose CommentsPermalink





Sec. 478. Federal natural resource agency adaptation plans. CommentsClose CommentsPermalink





Sec. 479. State natural resources adaptation plans. CommentsClose CommentsPermalink





Sec. 480. Natural Resources Climate Change Adaptation Fund. CommentsClose CommentsPermalink





Sec. 481. National Wildlife Habitat and Corridors Information Program. CommentsClose CommentsPermalink





Sec. 482. Additional provisions regarding Indian tribes. CommentsClose CommentsPermalink

Part 2--International Climate Change Adaptation Program

Sec. 491. Findings and purposes. CommentsClose CommentsPermalink





Sec. 492. Definitions. CommentsClose CommentsPermalink





Sec. 493. International Climate Change Adaptation Program. CommentsClose CommentsPermalink





Sec. 494. Distribution of allowances. CommentsClose CommentsPermalink





Sec. 495. Bilateral assistance. CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS.

For purposes of this Act: CommentsClose CommentsPermalink





(1) ADMINISTRATOR- The term ‘Administrator’ means the Administrator of the Environmental Protection Agency. CommentsClose CommentsPermalink





(2) STATE- The term ‘State’ has the meaning given that term in section 700 of the Clean Air Act, as added by section 312 of this Act302 of the Clean Air Act. CommentsClose CommentsPermalink

The Administrator, in consultation with the Department of State and the United States Trade Representative, shall annually prepare and certify a report to the Congress regarding whether China and India have adopted greenhouse gas emissions standards at least as strict as those standards required under this Act. If the Administrator determines that China and India have not adopted greenhouse gas emissions standards at least as stringent as those set forth in this Act, the Administrator shall notify each Member of Congress of his determination, and shall release his determination to the media. CommentsClose CommentsPermalink

TITLE I--CLEAN ENERGY CommentsClose CommentsPermalink

Subtitle A--Combined Efficiency and Renewable Electricity Standard CommentsClose CommentsPermalink

SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.

(a) In General- Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by adding at the end the following: CommentsClose CommentsPermalink

‘SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.

‘(a) Definitions- For purposes of this section: CommentsClose CommentsPermalink





‘(1) CHP SAVINGS- The term ‘CHP savings’ means-- CommentsClose CommentsPermalink





‘(A) CHP system savings from a combined heat and power system that commences operation after the date of enactment of this section; and CommentsClose CommentsPermalink





‘(B) the increase in CHP system savings from, at any time after the date of the enactment of this section, upgrading, replacing, expanding, or increasing the utilization of a combined heat and power system that commenced operation on or before the date of enactment of this section. CommentsClose CommentsPermalink





‘(2) CHP SYSTEM SAVINGS- The term ‘CHP system savings’ means the electric output, and the electricity saved due to the mechanical output, of a combined heat and power system, adjusted to reflect any increase in fuel consumption by that system as compared to the fuel that would have been required to produce an equivalent useful thermal energy output in a separate thermal-only system. CommentsClose CommentsPermalink





‘(3) COMBINED HEAT AND POWER SYSTEM- The term ‘combined heat and power system’ means a system that uses the same energy source both for the generation of electrical or mechanical power and the production of steam or another form of useful thermal energy, provided that-- CommentsClose CommentsPermalink





‘(A) the system meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; and CommentsClose CommentsPermalink





‘(B) the net sales of electricity by the facility to customers not consuming the thermal output from that facility will not exceed 50 percent of total annual electric generation by the facility. CommentsClose CommentsPermalink





‘(4) CUSTOMER FACILITY SAVINGS- The term ‘customer facility savings’ means a reduction in end-use electricity consumption (including recycled energy savings) at a facility of an end-use consumer of electricity served by a retail electric supplier, as compared to-- CommentsClose CommentsPermalink





‘(A) in the case of a new facility, consumption at a reference facility of average efficiency; CommentsClose CommentsPermalink





‘(B) in the case of an existing facility, consumption at such facility during a base period, except as provided in subparagraphs (C) and (D); CommentsClose CommentsPermalink





‘(C) in the case of new equipment that replaces existing equipment with remaining useful life, the projected consumption of the existing equipment for the remaining useful life of such equipment, and thereafter, consumption of new equipment of average efficiency of the same equipment type; and CommentsClose CommentsPermalink





‘(D) 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 of the same equipment type. CommentsClose CommentsPermalink





‘(5) DISTRIBUTED RENEWABLE GENERATION FACILITY- The term ‘distributed renewable generation facility’ means a facility that-- CommentsClose CommentsPermalink





‘(A) generates renewable electricity; CommentsClose CommentsPermalink





‘(B) primarily serves 1 or more electricity consumers at or near the facility site; and CommentsClose CommentsPermalink





‘(C) is no larger than 2 megawatts in capacitygreater than-- CommentsClose CommentsPermalink





‘(i) 2 megawatts in capacity; or CommentsClose CommentsPermalink





‘(ii) 4 megawatts in capacity, in the case of a facility that is placed in service after the date of enactment of this section and generates electricity from a renewable energy resource other than by means of combustion. CommentsClose CommentsPermalink





‘(6) ELECTRICITY SAVINGS- The term ‘electricity savings’ means reductions in electricity consumption, relative to business-as-usual projections, achieved through measures implemented after the date of enactment of this section, limited to-- CommentsClose CommentsPermalink





‘(A) customer facility savings of electricity, adjusted to reflect any associated increase in fuel consumption at the facility; CommentsClose CommentsPermalink





‘(B) 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; CommentsClose CommentsPermalink





‘(C) CHP savings; and CommentsClose CommentsPermalink





‘(D) fuel cell savings. CommentsClose CommentsPermalink





‘(7) FEDERAL LAND- The term ‘Federal land’ means land owned by the United States, other than land held in trust for an Indian or Indian tribe. CommentsClose CommentsPermalink





‘(8) FEDERAL RENEWABLE ELECTRICITY CREDIT- The term ‘Federal renewable electricity credit’ means a credit, representing one megawatt hour of renewable electricity, issued pursuant to subsection (e). CommentsClose CommentsPermalink





‘(9) FUEL CELL- The term ‘fuel cell’ means a device that directly converts the chemical energy of a fuel and an oxidant into electricity by electrochemical processes occurring at separate electrodes in the device. CommentsClose CommentsPermalink





‘(10) FUEL CELL SAVINGS- The term ‘fuel cell savings’ means the electricity saved by a fuel cell that is installed after the date of enactment of this section, or by upgrading a fuel cell that commenced operation on or before the date of enactment of this section, as a result of the greater efficiency with which the fuel cell transforms fuel into electricity as compared with sources of electricity delivered through the grid, provided that-- CommentsClose CommentsPermalink





‘(A) the fuel cell meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; and CommentsClose CommentsPermalink





‘(B) the net sales of electricity from the fuel cell to third parties that do not receive thermal service from the fuel cellcustomers not consuming the thermal output from the fuel cell, if any, do not exceed 50 percent of the total annual electricity generation by the fuel cell. CommentsClose CommentsPermalink





‘(11) HIGH CONSERVATION PRIORITY LAND- The term ‘high conservation priority land’ means land that is not Federal land and is-- CommentsClose CommentsPermalink





‘(A) globally or State ranked as critically imperiled or imperiled under a State Natural Heritage Program; or CommentsClose CommentsPermalink





‘(B) old-growth or late-successional forest, as defined by theidentified by the office of the relevant State Forester or relevant State agency with regulatory jurisdiction over forestry activities. CommentsClose CommentsPermalink





‘(12) OTHER QUALIFYING ENERGY RESOURCE- The term ‘other qualifying energy resource’ means any of the following: CommentsClose CommentsPermalink





‘(A) Landfill gas. CommentsClose CommentsPermalink





‘(B) Wastewater treatment gas. CommentsClose CommentsPermalink





‘(C) Coal mine methane used to generate electricity at or near the mine mouth. CommentsClose CommentsPermalink





‘(D) Qualified waste-to-energy. CommentsClose CommentsPermalink





‘(13) QUALIFIED HYDROPOWER- The term ‘qualified hydropower’ means-- CommentsClose CommentsPermalink





‘(A) energy produced from increased efficiency achieved, or additions of capacity made, on or after January 1, 1992, at a hydroelectric facility that was placed in service before that date and does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions; or CommentsClose CommentsPermalink





‘(B) energy produced from generating capacity added to a dam on or after January 1, 1992, provided that the Commission certifies that-- CommentsClose CommentsPermalink





‘(i) the dam was placed in service before the date of the enactment of this section and was operated for flood control, navigation, or water supply purposes and was not producing hydroelectric power prior to the addition of such capacity; CommentsClose CommentsPermalink





‘(ii) the hydroelectric project installed on the dam is licensed (or is exempt from licensing) by the Commission and is in compliance with the terms and conditions of the license or exemption, and with other applicable legal requirements for the protection of environmental quality, including applicable fish passage requirements; and CommentsClose CommentsPermalink





‘(iii) the hydroelectric project installed on the dam is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license or exemption requirements that require changes in water surface elevation for the purpose of improving the environmental quality of the affected waterway. CommentsClose CommentsPermalink





‘(14) QUALIFIED WASTE-TO-ENERGY- The term ‘qualified waste-to-energy’ means energy from the combustion of municipal solid waste or construction, demolition, or disaster debris, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, provided that-- CommentsClose CommentsPermalink





‘(A) such term shall include only the energy derived from the non-fossil biogenic portion of such waste or debris; CommentsClose CommentsPermalink





‘(B) the Commission determines, with the concurrence of the Administrator of the Environmental Protection Agency, that the total lifecycle greenhouse gas emissions attributable to the generation of electricity from such waste or debris are lower than those attributable to the likely alternative method of disposing of such waste or debris; and CommentsClose CommentsPermalink





‘(C) the owner or operator of the facility generating electricity from such energy provides to the Commission, on an annual basis-- CommentsClose CommentsPermalink





‘(i) a certification that the facility is in compliance with all applicable State and Federal environmental permits; CommentsClose CommentsPermalink





‘(ii) in the case of a facility that commenced operation before the date of the enactment of this section, a certification that the facility meets emissions standards promulgated under sections 112 or 129 of the Clean Air Act (42 U.S.C. 7412 or 7429) that apply as of the date of the enactment of this section to new facilities within the relevant source enactment of this section to new facilities within the relevant source category; and CommentsClose CommentsPermalink





‘(iii) in the case of the combustion, pyrolization, or gasification of municipal solid waste, a certification that each local government unit from which such waste originates operates, participates in the operation of, contracts for, or otherwise provides for, recycling services for its residents. CommentsClose CommentsPermalink





‘(15) RECYCLED ENERGY SAVINGS- The term ‘recycled energy savings’ means a reduction in electricity 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. CommentsClose CommentsPermalink





‘(16) RENEWABLE BIOMASS- The term ‘renewable biomass’ means any of the following: CommentsClose CommentsPermalink





‘(A) Plant material, including waste material, harvested or collected from actively managed agricultural land that was in cultivation, cleared, or fallow and nonforested on the date of enactment of this section;January 1, 2009. CommentsClose CommentsPermalink





‘(B) Plant material, including waste material, harvested or collected from pastureland that was nonforested on such date of enactment;January 1, 2009. CommentsClose CommentsPermalink





‘(C) Nonhazardous vegetative matter derived from waste, including separated yard waste, landscape right-of-way trimmings, construction and demolition debris or food waste (but not municipal solid waste, recyclable waste paper, painted, treated or pressurized wood, or wood contaminated with plastic or metals);. CommentsClose CommentsPermalink





‘(D) Animal waste or animal byproducts, including products of animal waste digesters;

‘(E) Algae;

. CommentsClose CommentsPermalink




‘(E) Algae. CommentsClose CommentsPermalink





‘(F) Trees, brush, slash, residues, or any other vegetative matter removed from within 600 feet of any building, campground, or route designated for evacuation by a public official with responsibility for emergency preparedness, or from within 300 feet of a paved road, electric transmission line, utility tower, or water supply line;. CommentsClose CommentsPermalink





‘(G) Residues from or byproducts of milled logs;. CommentsClose CommentsPermalink





‘(H) Any of the following removed from forested land that is not Federal and is not high conservation priority land: CommentsClose CommentsPermalink





‘(i) Trees, brush, slash, residues, interplanted energy crops, or any other vegetative matter removed from an actively managed tree plantation established-- CommentsClose CommentsPermalink





‘(I) prior to the date of enactment of this sectionJanuary 1, 2009; or CommentsClose CommentsPermalink





‘(II) on land that, as of the date of enactment of this sectionJanuary 1, 2009, was cultivated or fallow and non-forested. CommentsClose CommentsPermalink





‘(ii) Trees, logging residue, thinnings, cull trees, pulpwood, and brush removed from naturally -regenerated forests or other non-plantation forests, including for the purposes of hazardous fuel reduction or preventative treatment for reducing or containing insect or disease infestation. CommentsClose CommentsPermalink





‘(iii) Logging residue, thinnings, cull trees, pulpwood, brush and species that are non-native and noxious, from stands that were planted and managed after the date of enactment of this sectionJanuary 1, 2009, to restore or maintain native forest types. CommentsClose CommentsPermalink





‘(iv) Dead or severely damaged trees removed within 5 years of fire, blowdown, or other natural disaster, and badly infested trees;. CommentsClose CommentsPermalink





‘(I) Materials, pre-commercial 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-- CommentsClose CommentsPermalink





‘(i) not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth or mature forest stands, components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors; CommentsClose CommentsPermalink





‘(ii) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and CommentsClose CommentsPermalink





‘(iii) harvested in accordance with Federal and State law and applicable land management plans. CommentsClose CommentsPermalink





‘(17) RENEWABLE ELECTRICITY- The term ‘renewable electricity’ means electricity generated (including by means of a fuel cell) from a renewable energy resource or other qualifying energy resources. CommentsClose CommentsPermalink





‘(18) RENEWABLE ENERGY RESOURCE- The term ‘renewable energy resource’ means each of the following: CommentsClose CommentsPermalink





‘(A) Wind energy. CommentsClose CommentsPermalink





‘(B) Solar energy. CommentsClose CommentsPermalink





‘(C) Geothermal energy. CommentsClose CommentsPermalink





‘(D) Renewable biomass. CommentsClose CommentsPermalink





‘(E) Biogas derived exclusively from renewable biomass. CommentsClose CommentsPermalink





‘(F) Biofuels derived exclusively from renewable biomass. CommentsClose CommentsPermalink





‘(G) Qualified hydropower. CommentsClose CommentsPermalink





‘(H) Marine and hydrokinetic renewable energy, as that term is defined in section 632 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17211). CommentsClose CommentsPermalink





‘(19) RETAIL ELECTRIC SUPPLIER- CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘retail electric supplier’ means, for any given year, an electric utility that sold not less than 4,000,000 megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year. CommentsClose CommentsPermalink





‘(B) INCLUSIONS AND LIMITATIONS- For purposes of determining whether an electric utility qualifies as a retail electric supplier under subparagraph (A)-- CommentsClose CommentsPermalink





‘(i) the sales of any affiliate of an electric utility to electric consumers, other than sales to the affiliate’s lessees or tenants, for purposes other than resale shall be considered to be sales of such electric utility; and CommentsClose CommentsPermalink





‘(ii) sales by any electric utility to an affiliate, lessee, or tenant of such electric utility shall not be treated as sales to electric consumers. CommentsClose CommentsPermalink





‘(C) AFFILIATE- For purposes of this paragraph, the term ‘affiliate’ when used in relation to a person, means another person that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, such person, as determined under regulations promulgated by the Commission. CommentsClose CommentsPermalink





‘(20) RETAIL ELECTRIC SUPPLIER’S BASE AMOUNT- The term ‘retail electric supplier’s base amount’ means the total amount of electric energy sold by the retail electric supplier, expressed in megawatt hours, to electric customers for purposes other than resale during the relevant calendar year, excluding-- CommentsClose CommentsPermalink





‘(A) electricity generated by a hydroelectric facility that is not qualified hydropower; CommentsClose CommentsPermalink





‘(B) electricity generated by a nuclear generating unit placed in service after the date of enactment of this section; and CommentsClose CommentsPermalink





‘(C) the proportion of electricity generated by a fossil-fueled generating unit that is equal to the proportion of greenhouse gases produced by such unit that are captured and geologically sequestered. CommentsClose CommentsPermalink





‘(21) RETIRE AND RETIREMENT- The terms ‘retire’ and ‘retirement’ with respect to a Federal renewable electricity credit, means to disqualify such credit for any subsequent use under this section, regardless of whether the use is a sale, transfer, exchange, or submission in satisfaction of a compliance obligation. CommentsClose CommentsPermalink





‘(22) THIRD-PARTY EFFICIENCY PROVIDER- The term ‘third-party efficiency provider’ means any retailer, building owner, energy service company, financial institution or other commercial, industrial or nonprofit entity that is capable of providing electricity savings in accordance with the requirements of this section. CommentsClose CommentsPermalink





‘(23) TOTAL ANNUAL ELECTRICITY SAVINGS- The term ‘total annual electricity savings’ means electricity savings during a specified calendar year from measures that were placed into service since the date of the enactment of this section, taking into account verified measure lifetimes or verified annual savings attrition rates, as determined in accordance with such regulations as the Commission may promulgate and measured in megawatt hours. CommentsClose CommentsPermalink





‘(b) Annual Compliance Obligation- CommentsClose CommentsPermalink





‘(1) IN GENERAL- For each of calendar years 2012 through 2039, not later than March 31 of the following calendar year, each retail electric supplier shall submit to the Commission an amount of Federal renewable electricity credits and demonstrated total annual electricity savings that, in the aggregate, is equal to such retail electric supplier’s annual combined target as set forth in subsection (d), except as otherwise provided in subsection (g). CommentsClose CommentsPermalink





‘(2) DEMONSTRATION OF SAVINGS- For purposes of this subsection, submission of demonstrated total annual electricity savings means submission of a report that demonstrates, in accordance with the requirements of subsection (f), the total annual electricity savings achieved by the retail electricity supplier within the relevant compliance year. CommentsClose CommentsPermalink





‘(3) RENEWABLE ELECTRICITY CREDITS PORTION- Except as provided in paragraph (4), each retail electric supplier must submit Federal renewable electricity credits equal to at least three quarters of the retail electric supplier’s annual combined target. CommentsClose CommentsPermalink





‘(4) STATE PETITION- CommentsClose CommentsPermalink





‘(A) IN GENERAL- Upon written request from the Governor of any State (including, for purposes of this paragraph, the Mayor of the District of Columbia), the Commission shall increase, to not more than two fifths, the proportion of the annual combined targets of retail electric suppliers located within such State that may be met through submission of demonstrated total annual electricity savings, provided that such increase shall be effective only with regard to the portion of a retail electric supplier’s annual combined target that is attributable to electricity sales within such State. CommentsClose CommentsPermalink





‘(B) CONTENTS- A Governor’s request under this paragraph shall include an explanation of the Governor’s rationale for determining, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, to make such request. The request shall specify the maximum proportion of annual combined targets (not more than two fifths) that can be met through demonstrated total annual electricity savings, and the period for which such proportion shall be effective. CommentsClose CommentsPermalink





‘(C) REVISION- The Governor of any State may, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, submit a written request for revocation or revision of a previous request submitted under this paragraph. The Commission shall grant such request, provided that-- CommentsClose CommentsPermalink





‘(i) any revocation or revision shall not apply to the combined annual target for any year that is any earlier than 2 calendar years after the calendar year in which such request is submitted, so as to provide retail electric suppliers with adequate notice of such change; and CommentsClose CommentsPermalink





‘(ii) any revision shall meet the requirements of subparagraph (A). CommentsClose CommentsPermalink





‘(c) Establishment of Program- Not later than 1 year after the date of enactment of this section, the Commission shall promulgate regulations to implement and enforce the requirements of this section. In promulgating such regulations, the Commission shall, to the extent practicable-- CommentsClose CommentsPermalink





‘(1) preserve the integrity, and incorporate best practices, of existing State renewable electricity and energy efficiency programs; CommentsClose CommentsPermalink





‘(2) rely upon existing and emerging State or regional tracking systems that issue and track non-Federal renewable electricity credits; and CommentsClose CommentsPermalink





‘(3) cooperate with the States to facilitate coordination between State and Federal renewable electricity and energy efficiency programs and to minimize administrative burdens and costs to retail electric suppliers. CommentsClose CommentsPermalink





‘(d) Annual Compliance Requirement- CommentsClose CommentsPermalink





‘(1) ANNUAL COMBINED TARGETS- For each of calendar years 2012 through 2039, a retail electric supplier’s annual combined target shall be the product of-- CommentsClose CommentsPermalink





‘(A) the required annual percentage for such year, as set forth in paragraph (2); and CommentsClose CommentsPermalink





‘(B) the retail electric supplier’s base amount for such year. CommentsClose CommentsPermalink





‘(2) REQUIRED ANNUAL PERCENTAGE- For each of calendar years 2012 through 2039, the required annual percentage shall be as follows: CommentsClose CommentsPermalink

--------------------------------CommentsClose CommentsPermalink

--------------------------------CommentsClose CommentsPermalink

2012               6.0 CommentsClose CommentsPermalink

2013               6.0 CommentsClose CommentsPermalink

2014               9.5 CommentsClose CommentsPermalink

2015               9.5 CommentsClose CommentsPermalink

2016              13.0 CommentsClose CommentsPermalink

2017              13.0 CommentsClose CommentsPermalink

2018              16.5 CommentsClose CommentsPermalink

2019              16.5 CommentsClose CommentsPermalink

2020              20.0 CommentsClose CommentsPermalink

2021 through 2039 20.0 CommentsClose CommentsPermalink

--------------------------------CommentsClose CommentsPermalink

‘(e) Federal Renewable Electricity Credits- CommentsClose CommentsPermalink





‘(1) IN GENERAL- The regulations promulgated under this section shall include provisions governing the issuance, tracking, and verification of Federal renewable electricity credits. Except as provided in paragraphs (2), (3), and (4) of this subsection, the Commission shall issue to each generator of renewable electricity, 1 Federal renewable electricity credit for each megawatt hour of renewable electricity generated by such generator after December 31, 2011. The Commission shall assign a unique serial number to each Federal renewable electricity credit. CommentsClose CommentsPermalink





‘(2) GENERATION FROM CERTAIN STATE RENEWABLE ELECTRICITY PROGRAMS- Where renewable electricity is generated with the support of payments from a retail electric supplier pursuant to a State renewable electricity program (whether through State alternative compliance payments or through payments to a State renewable electricity procurement fund or entity), the Commission shall issue Federal renewable electricity credits to such retail electric supplier for the proportion of the relevant renewable electricity generation that is attributable to the retail electric supplier’s payments, as determined pursuant to regulations issued by the Commission. For any remaining portion of the relevant renewable electricity generation, the Commission shall issue Federal renewable electricity credits to the generator, as provided in paragraph (1), except that in no event shall more than 1 Federal renewable electricity credit be issued for the same megawatt hour of electricity. In determining how Federal renewable electricity credits will be apportioned among retail electric suppliers and generators in such circumstances, the Commission shall consider information and guidance furnished by the relevant State or States. CommentsClose CommentsPermalink





‘(3) CERTAIN POWER SALES CONTRACTS- When a generator has sold renewable electricity to a retail electric supplier under a contract for power from a facility placed in service before the date of enactment of this section, and the contract does not provide for the determination of ownership of the Federal renewable electricity credits associated with such generation, the Commission shall issue such Federal renewable electricity credits to the retail electric supplier for the duration of the contract. CommentsClose CommentsPermalink





‘(4) CREDIT MULTIPLIER FOR DISTRIBUTED RENEWABLE GENERATION- CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as provided in subparagraph (B), the Commission shall issue 3 Federal renewable electricity credits for each megawatt hour of renewable electricity generated by a distributed renewable generation facility. CommentsClose CommentsPermalink





‘(B) ADJUSTMENT- Except as provided in subparagraph (C), not later than January 1, 2014, and not less frequently than every 4 years thereafter, the Commission shall review the effect of this paragraph and shall, as necessary, reduce the number of Federal renewable electricity credits per megawatt hour issued under this paragraph for any given energy source or technology, but not below 1, to ensure that such number is no higher than the Commission determines is necessary to make distributed renewable generation facilities using such source or technology cost competitive with other sources of renewable electricity generation. CommentsClose CommentsPermalink





‘(C) FACILITIES PLACED IN SERVICE AFTER ENACTMENT- For any distributed renewable generation facility placed in service after the date of enactment of this section, subparagraph (B) shall not apply for the first 10 years after the date on which the facility is placed in service. For each year during such 10-year period, the Commission shall issue to the facility the same number of Federal renewable electricity credits per megawatt hour as are issued to that facility in the year in which such facility is placed in service. After such 10-year period, the Commission shall issue Federal renewable energlectricity credits to the facility in accordance with the current multiplier as determined pursuant to subparagraph (B). CommentsClose CommentsPermalink





‘(5) CREDITS BASED ON QUALIFIED HYDROPOWER- For purposes of this subsection, the number of Federal renewable electricity credits issued for qualified hydropower shall be calculated-- CommentsClose CommentsPermalink





‘(A) based solely on the increase in average annual generation directly resulting from the efficiency improvements or capacity additions described in subsection (a)(13)(A); and CommentsClose CommentsPermalink





‘(B) using the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility, as certified by the Commission. CommentsClose CommentsPermalink





‘(6) GENERATION FROM MIXED RENEWABLE AND NONRENEWABLE RESOURCES- If electricity is generated using both a renewable energy resource or other qualifying energy resource and an energy source that is not a renewable energy resource or other qualifying energy resource (as, for example, in the case of co-firing of renewable biomass and fossil fuel), the Commission shall issue Federal renewable electricity credits based son the proportion of the electricity that is attributable to the renewable energy resource or other qualifying energy resource. CommentsClose CommentsPermalink





‘(7) PROHIBITION AGAINST DOUBLE-COUNTING- Except as provided in paragraph (4) of this subsection, the Commission shall ensure that no more than 1 Federal renewable electricity credit will be issued for any megawatt hour of renewable electricity and that no Federal renewable electricity credit will be used more than once for compliance with this section. CommentsClose CommentsPermalink





‘(8) TRADING- The lawful holder of a Federal renewable electricity credit may sell, exchange, transfer, submit for compliance in accordance with subsection (b), or submit such credit for retirement by the Commission. CommentsClose CommentsPermalink





‘(9) BANKING- A Federal renewable electricity credit may be submitted in satisfaction of the compliance obligation set forth in subsection (b) for the compliance year in which the credit was issued or for any subsequent compliance year.‘(10)of the 3 immediately subsequent compliance years. The Commission shall retire any Federal renewable electricity credit that has not been retired by April 2 of the calendar year that is 3 years after the calendar year in which the credit was issued. CommentsClose CommentsPermalink





‘(10) RETIREMENT- The Commission shall retire a Federal renewable electricity credit immediately upon submission by the lawful holder of such credit, whether in satisfaction of a compliance obligation under subsection (b) or on some other basis. CommentsClose CommentsPermalink





‘(f) Electricity Savings- CommentsClose CommentsPermalink





‘(1) STANDARDS FOR MEASUREMENT OF SAVINGS- As part of the regulations promulgated under this section, the Commission shall prescribe standards and protocols for defining and measuring electricity savings and total annual electricity savings that can be counted towards the compliance obligation set forth in subsection (b). Such protocols and standards shall, at minimum-- CommentsClose CommentsPermalink





‘(A) specify the types of energy efficiency and energy conservation measures that can be counted; CommentsClose CommentsPermalink





‘(B) require that energy consumption estimates for customer facilities or portions 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; CommentsClose CommentsPermalink





‘(C) account for the useful life of measures; CommentsClose CommentsPermalink





‘(D) include deemed savings values for specific, commonly used measures; CommentsClose CommentsPermalink





‘(E) allow for savings from a program to be estimated based on extrapolation from a representative sample of participating customers; CommentsClose CommentsPermalink





‘(F) include procedures for counting CHP savings, recycled energy savings, and fuel cell savings; CommentsClose CommentsPermalink





‘(G) include procedures for counting electricity savings achieved by solar water heating and solar light pipe technology that has the capability to provide measureable data on the amount of megawatt-hours displaced; CommentsClose CommentsPermalink





‘(H) avoid double-counting of savings used for compliance with this section, including savings that are transferred pursuant to paragraph (3); CommentsClose CommentsPermalink





‘(HI) ensure that, except as provided in subparagraph (JK), the retail electric supplier claiming the savings played a significant role in achieving the savings (including through the activities of a designated agent of the supplier or through the purchase of transferred savings); CommentsClose CommentsPermalink





‘(IJ) include savings from programs administered by a retail electric supplier (or a retail electricity distributor that is not a retail electric supplier) that are funded by State, Federal, or other sources; CommentsClose CommentsPermalink





and‘(J‘(K) in any State in which the State regulatory authority has designated 1 or more entities to administer electric ratepayer-funded efficiency programs approved by such State regulatory authority, provide that electricity savings achieved through such programs shall be distributed equitably among retail electric suppliers in accordance with the direction of the relevant State regulatory authority; and CommentsClose CommentsPermalink





‘(L) exclude savings achieved as a result of compliance with mandatory appliance and equipment efficiency standards or building codes. CommentsClose CommentsPermalink





‘(2) STANDARDS FOR THIRD-PARTY VERIFICATION OF SAVINGS- The regulations promulgated under this section shall establish procedures and standards requiring third-party verification of all reported electricity savings, including requirements for accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have no conflicts of interest. CommentsClose CommentsPermalink





‘(3) TRANSFERS OF SAVINGS- CommentsClose CommentsPermalink





‘(A) BILATERAL CONTRACTS FOR SAVINGS TRANSFERS- Subject to the limitations of this paragraph, a retail electric supplier may use electricity savings transferred, pursuant to a bilateral contract, from another retail electric supplier, an owner of an electric distribution facility that is not a retail electric supplier, a State, or a third-party efficiency provider to meet the applicable compliance obligation under subsection (b). CommentsClose CommentsPermalink





‘(B) REQUIREMENTS- Electricity savings transferred and used for compliance pursuant to this paragraph shall be-- CommentsClose CommentsPermalink





‘(i) measured and verified in accordance with the procedures specified under this subsection; CommentsClose CommentsPermalink





‘(ii) reported in accordance with paragraph (4) of this subsection; and CommentsClose CommentsPermalink





‘(iii) achieved within the same State as is served by the retail electric supplier. CommentsClose CommentsPermalink





‘(C) REGULATORY APPROVAL- Nothing in this paragraph shall limit or affect the authority of a State regulatory authority to require a retail electric supplier that is regulated by such authority to obtain such authority’s authorization or approval of a contract for transfer of savings under this paragraph. CommentsClose CommentsPermalink





‘(4) REPORTING SAVINGS- CommentsClose CommentsPermalink





‘(A) REQUIREMENTS- The regulations promulgated under this section shall establish requirements governing the submission of reports to demonstrate, in accordance with the protocols and standards for measurement and third-party verification established under this subsection, the total annual electricity savings achieved by a retail electric supplier within the relevant year. CommentsClose CommentsPermalink





‘(B) REVIEW AND APPROVAL- The Commission shall review each report submitted to the Commission by a retail electric supplier and shall exclude any electricity savings that have not been adequately demonstrated in accordance with the requirements of this subsection. CommentsClose CommentsPermalink





‘(5) STATE ADMINISTRATION- CommentsClose CommentsPermalink





‘(A) DELEGATION OF AUTHORITY- Upon receipt of an application from the Governor of a State (including, for purposes of this subsection, the Mayor of the District of Columbia), the Commission may delegate to the State the authority to review and verify reported electricity savings for purposes of determining demonstrated total annual electricity savings that may be counted towards a retail electric supplier’s compliance obligation under subsection (b). The Commission shall make a substantive determination approving or disapproving a State application under this subparagraph, after notice and comment, within 180 days of receipt of a complete application. CommentsClose CommentsPermalink





‘(B) ALTERNATIVE MEASUREMENT AND VERIFICATION PROCEDURES AND STANDARDS- As part of an application submitted under subparagraph (A), a State may request to use alternative measurement and verification procedures and standards to those specified in paragraphs (1) and (2), provided the State demonstrates that such alternative procedures and standards provide a level of accuracy of measurement and verification at least equivalent to the Federal procedures and standards promulgated under paragraphs (1) and (2) of this subsection.‘(C) . CommentsClose CommentsPermalink





‘(C) REVIEW OF STATE IMPLEMENTATION- The Commission shall periodically review State implementation of , not less frequently than once every 4 years, review each State’s implementation of delegated authority under this paragraph to ensure conformance with the requirements of this section. The Commission may, at any time, revoke the delegation of authority under this section upon a finding that the State is not implementing its delegated responsibilities in conformity with this paragraph. As a condition of maintaining its delegated authority under this paragraph, the Commission may require a State to submit a revised application under subparagraph (A) if the Commission has-- CommentsClose CommentsPermalink





‘(i) promulgated new or substantially revised measurement and verification procedures and standards under this subsection; or CommentsClose CommentsPermalink





‘(ii) otherwise substantially revised the program established under this section. CommentsClose CommentsPermalink





‘(g) Alternative Compliance Payments- CommentsClose CommentsPermalink





‘(1) IN GENERAL- A retail electric supplier may satisfy the requirements of subsection (b) in whole or in part by submitting in accordance with this subsection, in lieu of each Federal renewable electricity credit or megawatt hour of demonstrated total annual electricity savings that would otherwise be due, a payment equal to $25, adjusted for inflation on January 1 of each year following calendar year 2009, in accord with such regulations as the Commission may promulgate.‘(2)ance with such regulations as the Commission may promulgate. CommentsClose CommentsPermalink





‘(2) PAYMENT TO STATE FUNDS- Payments made under this Except as otherwise provided in this paragraph, payments made under this subsection shall be madedirectly to the State in which the retail electric directly to the State or States in which the retail electric supplier is located, in proportion to the portion of the retail electric supplier’s base amount that is sold within each relevant State, provided that such payments are deposited directly into a fund within the State’s treasury for use pursuant to paragraph (3)in the State treasury established for this purpose and that the State uses such funds in accordance with paragraphs (3) and (4). If the Commission determines at any time that a State is in substantial noncompliance with paragraph (3) or (4), the Commission shall direct that any future alternative compliance payments that would otherwise be paid to such State under this subsection shall instead be paid to the Commission and deposited in the United States Treasury. CommentsClose CommentsPermalink





‘(3) STATE USE OF FUNDS- States receiving payments under this subsection shall use such fundAs a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall use such payments exclusively for the purposes of-- CommentsClose CommentsPermalink





‘(A) deploying technologies that generate electricity from renewable energy resources; or CommentsClose CommentsPermalink





‘(B) implementing cost-effective energy efficiency measures and programprograms to achieve electricity savings. CommentsClose CommentsPermalink





‘(4) REPORTING- Any State that receives a payment under this subsection shall, within 12 months of receipt of such payment, provide a report to the Commissions a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall, within 12 months of receipt of any such payments and at 12-month intervals thereafter until such payments are expended, provide a report to the Commission, in accordance with such regulations as the Commission may prescribe, giving a full accounting of the use of such payments, including a detailed description of the activities funded thereby. CommentsClose CommentsPermalink





‘(h) Information Collection- The Commission may require any retail electric supplier, renewable electricity generator, or such other entities as the Commission deems appropriate, to provide any information the Commission determines appropriate to carry out this section. Failure to submit such information or submission of false or misleading information under this subsection shall be a violation of this section. CommentsClose CommentsPermalink





‘(i) Enforcement and Judicial Review- CommentsClose CommentsPermalink





‘(1) FAILURE TO SUBMIT CREDITS OR DEMONSTRATE SAVINGS- If any person fails to comply with the requirements of subsection (b) or (g), such person shall be liable to pay to the Commission a civil penalty equal to the product of-- CommentsClose CommentsPermalink





‘(A) double the alternative compliance payment calculated under subsection (g)(1), and CommentsClose CommentsPermalink





‘(B) the aggregate quantity of Federal renewable electricity credits, total annual electricity savings, or equivalent alternative compliance payments that the person failed to submit in violation of the requirements of subsections (b) and (g). CommentsClose CommentsPermalink





‘(2) ENFORCEMENT- The SecretaryCommission shall assess a civil penalty under paragraph (1) in accordance with the procedures described in section 31(d) of the Federal Power Act (16 U.S.C. 823b(d)). CommentsClose CommentsPermalink





‘(3) VIOLATION OF REQUIREMENT OF REGULATIONS OR ORDERS- Any person who violates, or fails or refuses to comply with, any requirement of a regulation promulgated or order issued under this section shall be subject to a civil penalty under section 316A(b) of the Federal Power Act (16 U.S.C. 825o-1). Such penalty shall be assessed by the Commission in the same manner as in the case of a violation referred to in section 316A(b) of such Act. CommentsClose CommentsPermalink





‘(j) Judicial Review- Any person aggrieved by a final action taken by the Commission under this section, other than the assessment of a civil penalty under subsection (i), may use the procedures for review described in section 313 of the Federal Power Act (16 U.S.C. 825l). For purposes of this paragraph, references to an order in section 313 of such Act shall be deemed to refer also to all other final actions of the Commission under this section other than the assessment of a civil penalty under subsection (i). CommentsClose CommentsPermalink





‘(k) Savings Provisions- Nothing in this section shall-- CommentsClose CommentsPermalink





‘(1) diminish or qualify any authority of a State or political subdivision of a State to-- CommentsClose CommentsPermalink





‘(A) adopt or enforce any law or regulation respecting renewable electricity or energy efficiency, including any law or regulation establishing requirements more stringent than those established by this section, provided that no such law or regulation may relieve any person of any requirement otherwise applicable under this section; or CommentsClose CommentsPermalink





‘(B) regulate the acquisition and disposition of Federal renewable electricity credits by retail electric suppliers within the jurisdiction of such State or political subdivision, including the authority to require such retail electric supplier to acquire and submit to the Secretary for retirement Federal renewable electricity credits in excess of those submitted under this section; or CommentsClose CommentsPermalink





‘(2) affect the application of, or the responsibility for compliance with, any other provision of law or regulation, including environmental and licensing requirements. CommentsClose CommentsPermalink





‘(l) Sunset- This section expires on December 31, 2040.’. CommentsClose CommentsPermalink





(b) Conforming Amendment- The table of contents set forth in section 1(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is amended by inserting after the item relating to section 609 the following: CommentsClose CommentsPermalink





‘Sec. 610. Combined efficiency and renewable electricity standard.’. CommentsClose CommentsPermalink

Subtitle B--Carbon Capture and Sequestration CommentsClose CommentsPermalink

SEC. 111. NATIONAL STRATEGY.

(a) In General- Not later than 1 year after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, in consultation , in consultation with the Secretary of Energy and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory and other barriers to the commercial-scale deployment of carbon capture and sequestration. CommentsClose CommentsPermalink





(b) Barriers- The report under this section shall-- CommentsClose CommentsPermalink





(1) identify those regulatory, legal, and other gaps and barriers that could be addressed by a Federal agency using existing statutory authority, those, if any, that require Federal legislation, and those that would be best addressed at the State or regional level; CommentsClose CommentsPermalink





(2) identify regulatory implementation challenges, including those related to approval of State programs and delegation of authority for permitting; and CommentsClose CommentsPermalink





(3) recommend rulemakings, Federal legislation, or other actions that should be taken to further evaluate and address such barriers. CommentsClose CommentsPermalink

SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION SITES.

(a) Coordinated Certification and Permitting Process- Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by adding after section 812 (as added by section 116 of this Act) the following: CommentsClose CommentsPermalink

‘SEC. 813. GEOLOGIC SEQUESTRATION SITES.

‘(a) Coordinated Process- The Administrator shall establish a coordinated approach to certifying and permitting geologic sequestration, taking into consideration all relevant statutory authorities. In establishing such approach, the Administrator shall-- CommentsClose CommentsPermalink





‘(1) take into account, and reduce redundancy with, the requirements of section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h), as amended by section 112(b) of the American Clean Energy and Security Act of 2009, including the rulemaking for geologic sequestration wells described at 73 Fed. Reg. 43491-541 (July 25, 2008); and CommentsClose CommentsPermalink





‘(2) to the extent practicable, reduce the burden on certified entities and implementing authorities. CommentsClose CommentsPermalink





‘(b) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to protect human health and the environment by minimizing the risk of escape to the atmosphere of carbon dioxide injected for purposes of geologic sequestration. CommentsClose CommentsPermalink





‘(c) Requirements- The regulations under subsection (b) shall include-- CommentsClose CommentsPermalink





‘(1) a process to obtain certification for geologic sequestration under this section; and CommentsClose CommentsPermalink





‘(2) requirements for-- CommentsClose CommentsPermalink





‘(A) monitoring, record keeping, and reporting for emissions associated with injection into, and escape from, geologic sequestration sites, taking into account any requirements or protocols developed under section 713; CommentsClose CommentsPermalink





‘(B) public participation in the certification process that maximizes transparency; CommentsClose CommentsPermalink





‘(C) the sharing of data between States, Indian tribes, and the Environmental Protection Agency; and CommentsClose CommentsPermalink





‘(D) other elements or safeguards necessary to achieve the purpose set forth in subsection (b). CommentsClose CommentsPermalink





‘(d) Report- Not later than 2 years after the promulgation of regulations under subsection (b), and at 3-year intervals thereafter, the Administrator shall deliver to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on geologic sequestration in the United States, and, to the extent relevant, other countries in North America. Such report shall include-- CommentsClose CommentsPermalink





‘(1) data regarding injection, emissions to the atmosphere, if any, and performance of active and closed geologic sequestration sites, including those where enhanced hydrocarbon recovery operations occur; CommentsClose CommentsPermalink





‘(2) an evaluation of the performance of relevant Federal environmental regulations and programs in ensuring environmentally protective geologic sequestration practices; CommentsClose CommentsPermalink





‘(3) recommendations on how such programs and regulations should be improved or made more effective; and CommentsClose CommentsPermalink





‘(4) other relevant information.’. CommentsClose CommentsPermalink





(b) Safe Drinking Water Act Standards- Section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h) is amended by inserting after subsection (d) the following: CommentsClose CommentsPermalink





‘(e) Carbon Dioxide Geologic Sequestration Wells- CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations under subsection (a) for carbon dioxide geologic sequestration wells. CommentsClose CommentsPermalink





‘(2) FINANCIAL RESPONSIBILITY- The regulations referred to in paragraph (1) shall include requirements for maintaining evidence of financial responsibility, including financial responsibility for emergency and remedial response, well plugging, site closure, and post-injection site care. Financial responsibility may be established for carbon dioxide geologic sequestration wells in accordance with regulations promulgated by the Administrator by any one, or any combination, of the following: insurance, guarantee, trust, standby trust, surety bond, letter of credit, qualification as a self-insurer, or any other method satisfactory to the Administrator.’. CommentsClose CommentsPermalink

SEC. 113. STUDIES AND REPORTS.

(a) Study of Legal Framework for Geologic Sequestration Sites- CommentsClose CommentsPermalink





(1) ESTABLISHMENT OF TASK FORCE- As soon as practicable, but not later than 6 months after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall establish ashall establish a task force to be composed of an equal number of subject matter experts, nongovernmental organizations with expertise in environmental policy, academic experts with expertise in environmental law, State officials with environmental expertise, representatives of State Attorneys General, and members of the private sector, to conduct a study of-- CommentsClose CommentsPermalink





(A) existing Federal environmental statutes, State environmental statutes, and State common law that apply to geologic sequestration sites for carbon dioxide, including the ability of such laws to serve as risk management tools; CommentsClose CommentsPermalink





(B) the existing statutory framework, including Federal and State laws, that apply to harm and damage to the environment or public health at closed sites where carbon dioxide injection has been used for enhanced hydrocarbon recovery; CommentsClose CommentsPermalink





(C) the statutory framework, environmental health and safety considerations, implementation issues, and financial implications of potential models for Federal, State, or private sector assumption of liabilities and financial responsibilities with respect to closed geologic sequestration sites; CommentsClose CommentsPermalink





(D) private sector mechanisms, including insurance and bonding, that may be available to manage environmental, health and safety risk from closed geologic sequestration sites; and CommentsClose CommentsPermalink





(E) the subsurface mineral rights, water rights, or property rights issues associated with geologic sequestration of carbon dioxide. CommentsClose CommentsPermalink





(2) REPORT- Not later than 18 months after the date of enactment of this Act, the task force established under paragraph (1) shall submit to Congress a report describing the results of the study conducted under that paragraph including any consensus recommendations of the task force. CommentsClose CommentsPermalink





(b) Environmental Statutes- CommentsClose CommentsPermalink





(1) STUDY- The Administrator of the Environmental Protection Agency shall conduct a study examining how, and under what circumstances, the environmental statutes for which the Environmental Protection Agency has responsibility would apply to carbon dioxide injection and geologic sequestration activities. CommentsClose CommentsPermalink





(2) REPORT- Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report describing the results of the study conducted under paragraph (1). CommentsClose CommentsPermalink

SEC. 114. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND EARLY DEPLOYMENT PROGRAM.

(a) Definitions- For purposes of this section: CommentsClose CommentsPermalink





(1) SECRETARY- The term ‘Secretary’ means the Secretary of Energy. CommentsClose CommentsPermalink





(2) DISTRIBUTION UTILITY- The term ‘distribution utility’ means an entity that distributes electricity directly to retail consumers under a legal, regulatory, or contractual obligation to do so. CommentsClose CommentsPermalink





(3) ELECTRIC UTILITY- The term ‘electric utility’ has the meaning provided by section 3(22) of the Federal Power Act (16 U.S.C. 796(22)). CommentsClose CommentsPermalink





(4) FOSSIL FUEL-BASED ELECTRICITY- The term ‘fossil fuel-based electricity’ means electricity that is produced from the combustion of fossil fuels. CommentsClose CommentsPermalink





(5) FOSSIL FUEL- The term ‘fossil fuel’ means coal, petroleum, natural gas or any derivative of coal, petroleum, or natural gas. CommentsClose CommentsPermalink





(6) CORPORATION- The term ‘Corporation’ means the Carbon Storage Research Corporation established in accordance with this section. CommentsClose CommentsPermalink





(7) QUALIFIED INDUSTRY ORGANIZATION- The term ‘qualified industry organization’ means the Edison Electric Institute, the American Public Power Association, the National Rural Electric Cooperative Association, a successor organization of such organizations, or a group of owners or operators of distribution utilities delivering fossil fuel-based electricity who collectively represent at least 20 percent of the volume of fossil fuel-based electricity delivered by distribution utilities to consumers in the United States. CommentsClose CommentsPermalink





(8) RETAIL CONSUMER- The term ‘retail consumer’ means an end-user of electricity. CommentsClose CommentsPermalink





(b) Carbon Storage Research Corporation- CommentsClose CommentsPermalink





(1) ESTABLISHMENT- CommentsClose CommentsPermalink





(A) REFERENDUM- Qualified industry organizations may conduct, at their own expense, a referendum among the owners or operators of distribution utilities delivering fossil fuel-based electricity for the creation of a Carbon Storage Research Corporation. Such referendum shall be conducted by an independent auditing firm agreed to by the qualified industry organizations. Voting rights in such referendum shall be based on the quantity of fossil fuel-based electricity delivered to consumers in the previous calendar year or other representative period as determined by the Secretary pursuant to subsection (f). Upon approval of those persons representing two-thirds of the total quantity of fossil fuel-based electricity delivered to retail consumers, the Corporation shall be established unless opposed by the State regulatory authorities pursuant to subparagraph (B). All distribution utilities voting in the referendum shall certify to the independent auditing firm the quantity of fossil fuel-based electricity represented by their vote. CommentsClose CommentsPermalink





(B) STATE REGULATORY AUTHORITIES- Upon its own motion or the petition of a qualified industry organization, each State regulatory authority shall consider its support or opposition to the creation of the Corporation under subparagraph (A). State regulatory authorities may notify the independent auditing firm referred to in subparagraph (A) of their views on the creation of the Corporation within 180 days after the date of enactment of this Act. If 40 percent or more of the State regulatory authorities submit to the independent auditing firm written notices of opposition, the Corporation shall not be established notwithstanding the approval of the qualified industry organizations as provided in subparagraph (A). CommentsClose CommentsPermalink





(2) TERMINATION- The Corporation shall be authorized to collect assessments and conduct operations pursuant to this section for a 10-year period from the date 6 months after the date of enactment of this Act. After such 10-year period, the Corporation is no longer authorized to collect assessments and shall be dissolved on the date 15 years after such date of enactment, unless the period is extended by an Act of Congress. CommentsClose CommentsPermalink





(3) GOVERNANCE- The Corporation shall operate as a division or affiliate of the Electric Power Research Institute (referred to in this section as ‘EPRI’) and be managed by a Board of not more than 15 voting members responsible for its operations, including compliance with this section. EPRI, in consultation with the Edison Electric Institute, the American Public Power Association and the National Rural Electric Cooperative Association shall appoint the Board members under clauses (i), (ii), and (iii) of subparagraph (A) from among candidates recommended by those organizations. At least a majority of the Board members appointed by EPRI shall be representatives of distribution utilities subject to assessments under subsection (d). CommentsClose CommentsPermalink





(A) MEMBERS- The Board shall include at least one representative of each of the following: CommentsClose CommentsPermalink





(i) Investor-owned utilities. CommentsClose CommentsPermalink





(ii) Utilities owned by a State agency or a municipality. CommentsClose CommentsPermalink





(iii) Rural electric cooperatives. CommentsClose CommentsPermalink





(iv) Fossil fuel producers. CommentsClose CommentsPermalink





(v) Non-profit environmental organizations.(vi) profit environmental organizations. CommentsClose CommentsPermalink





(vi) Independent generators or wholesale power providers. CommentsClose CommentsPermalink





(vii) Consumer groups. CommentsClose CommentsPermalink





(B) NONVOTING MEMBERS- The Board shall also include as additional non-voting Members the Secretary of Energy or his designee and 2 representatives of State regulatory authorities as defined in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(17)), each designated by the National Association of State Regulatory Utility Commissioners from States that are not within the same transmission interconnection. CommentsClose CommentsPermalink





(4) COMPENSATION- Corporation Board members shall receive no compensation for their services, nor shall Corporation Board members be reimbursed for expenses relating to their service. CommentsClose CommentsPermalink





(5) TERMS- Corporation Board members shall serve terms of 4 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not more than a total of 8 consecutive years. Former members of the Corporation Board may be reappointed to the Corporation Board if they have not been members for a period of 2 years. Initial appointments to the Corporation Board shall be for terms of 1, 2, 3, and 4 years, staggered to provide for the selection of 3 members each year. CommentsClose CommentsPermalink





(6) STATUS OF CORPORATION- The Corporation shall not be considered to be an agency, department, or instrumentality of the United States, and no officer or director or employee of the Corporation shall be considered to be an officer or employee of the United States Government, for purposes of title 5 or title 31 of the United States Code, or for any other purpose, and no funds of the Corporation shall be treated as public money for purposes of chapter 33 of title 31, United States Code, or for any other purpose. CommentsClose CommentsPermalink





(c) Functions and Administration of the Corporation- CommentsClose CommentsPermalink





(1) IN GENERAL- The Corporation shall establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and methods, including technologies which capture and store, or capture and convert, carbon dioxide. Under such program competitively awarded grants, contracts, and financial assistance shall be provided and entered into with eligible entities. Except as provided in paragraph (8), the Corporation shall use all funds derived from assessments under subsection (d) to issue grants and contracts to eligible entities. CommentsClose CommentsPermalink





(2) PURPOSE- The purposes of the grants, contracts, and assistance under this subsection shall be to support commercial-scale demonstrations of carbon capture or storage technology projects capable of advancing the technologies to commercial readiness. Such projects should encompass a range of different coal and other fossil fuel varieties, be geographically diverse, involve diverse storage media, and employ capture or storage, or capture and conversion, technologies potentially suitable either for new or for retrofit applications. The Corporation shall seek, to the extent feasible, to support at least 5 commercial-scale demonstration projects integrating carbon capture and sequestration or conversion technologies. CommentsClose CommentsPermalink





(3) ELIGIBLE ENTITIES- Entities eligible for grants, contracts or assistance under this subsection may include distribution utilities, electric utilities and other private entities, academic institutions, national laboratories, Federal research agencies, State research agencies, non-profit organizations, or consortiums of 2 or more entities. Pilot-scale and similar small-scale projects are not eligible for support by the Corporation. Owners or developers of projects supported by the Corporation shall, where appropriate, share in the costs of such projects. CommentsClose CommentsPermalink





(4) GRANTS FOR EARLY MOVERS- Fifty percent of the funds raised under this section shall be provided in the form of grants to electric utilities that had, prior to the award of any grant under this section, committed resources to deploy a large scale electricity generation unit with integrated carbon capture and sequestration or conversion applied to a substantial portion of the unit’s carbon dioxide emissions. Grant funds shall be provided to defray costs incurred by such electricity utilities for at least 5 such electricity generation units. CommentsClose CommentsPermalink





(5) ADMINISTRATION- The members of the Board of Directors of the Corporation shall elect a Chairman and other officers as necessary, may establish committees and subcommittees of the Corporation, and shall adopt rules and bylaws for the conduct of business and the implementation of this section. The Board shall appoint an Executive Director and professional support staff who may be employees of the Electric Power Research Institute (EPRI). After consultation with the Technical Advisory Committee established under subsection (j), the Secretary, and the Director of the National Energy Technology Laboratory to obtain advice and recommendations on plans, programs, and project selection criteria, the Board shall establish priorities for grants, contracts, and assistance; publish requests for proposals for grants, contracts and assistance;, and assistance; and award grants, contracts and assistance , and assistance competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by the Technical Advisory Committee. The Board shall give preference to applications that reflect the best overall value and prospect for achieving the purposes of the section, such as those which demonstrate an integrated approach for capture and storage or capture and conversion technologies. The Board members shall not participate in making grants or awards to entities with whom they are affiliated. CommentsClose CommentsPermalink





(6) USES OF GRANTS, CONTRACTS, AND ASSISTANCE- A grant, contract, or other assistance provided under this subsection may be used to purchase carbon dioxide when needed to conduct tests of carbon dioxide storage sites, in the case of established projects that are storing carbon dioxide emissions, or for other purposes consistent with the purposes of this section. The Corporation shall make publicly available at no cost information learned as a result of projects which it supports financially. CommentsClose CommentsPermalink





(7) INTELLECTUAL PROPERTY- The Board shall establish policies regarding the ownership of intellectual property developed as a result of Corporation grants and other forms of technology support. Such policies shall encourage individual ingenuity and invention. CommentsClose CommentsPermalink





(8) ADMINISTRATIVE EXPENSES- Up to 5 percent of the funds collected in any fiscal year under subsection (d) may be used for the administrative expenses of operating the Corporation (not including costs incurred in the determination and collection of the assessments pursuant to subsection (d)). CommentsClose CommentsPermalink





(9) PROGRAMS AND BUDGET- Before August 1 each year, the Corporation, after consulting with the Technical Advisory Committee and the Secretary and the Director of the Department’s National Energy Technology Laboratory and other interested parties to obtain advice and recommendations, shall publish for public review and comment its proposed plans, programs, project selection criteria, and projects to be funded by the Corporation for the next calendar year. The Corporation shall also publish for public review and comment a budget plan for the next calendar year, including the probable costs of all programs, projects, and contracts and a recommended rate of assessment sufficient to cover such costs. The Secretary may recommend programs and activities the Secretary considers appropriate. The Corporation shall include in the first publication it issues under this paragraph a strategic plan or roadmap for the achievement of the purposes of the Corporation, as set forth in paragraph (2). CommentsClose CommentsPermalink





(10) RECORDS; AUDITS- The Corporation shall keep minutes, books, and records that clearly reflect all of the acts and transactions of the Corporation and make public such information. The books of the Corporation shall be audited by a certified public accountant at least once each fiscal year and at such other times as the Corporation may designate. Copies of each audit shall be provided to the Congress, all Corporation board members, all qualified industry organizations, each State regulatory authority and, upon request, to other members of the industry. If the audit determines that the Corporation’s practices fail to meet generally accepted accounting principles the assessment collection authority of the Corporation under subsection (d) shall be suspended until a certified public accountant renders a subsequent opinion that the failure has been corrected. The Corporation shall make its books and records available for review by the Secretary or the Comptroller General of the United States. CommentsClose CommentsPermalink





(11) PUBLIC ACCESS- The Corporation Board’s meetings shall be open to the public and shall occur after at least 30 days advance public notice. Meetings of the Board of Directors may be closed to the public where the agenda of such meetings includes only confidential matters pertaining to project selection, the award of grants or contracts, personnel matters, or the receipt of legal advice. The minutes of all meetings of the Corporation shall be made available to and readily accessible by the public. CommentsClose CommentsPermalink





(12) ANNUAL REPORT- Each year the Corporation shall prepare and make publicly available a report which includes an identification and description of all programs and projects undertaken by the Corporation during the previous year. The report shall also detail the allocation or planned allocation of Corporation resources for each such program and project. The Corporation shall provide its annual report to the Congress, the Secretary, each State regulatory authority, and upon request to the public. The Secretary shall, not less than 60 days after receiving such report, provide to the President and Congress a report assessing the progress of the Corporation in meeting the objectives of this section. CommentsClose CommentsPermalink





(d) Assessments- CommentsClose CommentsPermalink





(1) AMOUNT- (A) In all calendar years following its establishment, the Corporation shall collect an assessment on distribution utilities for all fossil fuel-based electricity delivered directly to retail consumers (as determined under subsection (f)). The assessments shall reflect the relative carbon dioxide emission rates of different fossil fuel-based electricity, and initially shall be not less than the following amounts for coal, natural gas, and oil: CommentsClose CommentsPermalink

----------------------------------------------------------------------CommentsClose CommentsPermalink

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Fuel type Rate of assessment per kilowatt hour CommentsClose CommentsPermalink

Coal                                    $0.00043 CommentsClose CommentsPermalink

Natural Gas                                    $0.00022 CommentsClose CommentsPermalink

Oil                                   $0.00032. CommentsClose CommentsPermalink

----------------------------------------------------------------------CommentsClose CommentsPermalink

(B) The Corporation is authorized to adjust the assessments on fossil fuel-based electricity to reflect changes in the expected quantities of such electricity from different fuel types, such that the assessments generate not less than $1.0 billion and not more than $1.1 billion annually. The Corporation is authorized to supplement assessments through additional financial commitments. CommentsClose CommentsPermalink





(2) INVESTMENT OF FUNDS- Pending disbursement pursuant to a program, plan, or project, the Corporation may invest funds collected through assessments under this subsection, and any other funds received by the Corporation, only in obligations of the United States or any agency thereof, in general obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States. CommentsClose CommentsPermalink





(3) REVERSION OF UNUSED FUNDS- If the Corporation does not disburse, dedicate or assign 75 percent or more of the available proceeds of the assessed fees in any calendar year 7 or more years following its establishment, due to an absence of qualified projects or similar circumstances, it shall reimburse the remaining undedicated or unassigned balance of such fees, less administrative and other expenses authorized by this section, to the distribution utilities upon which such fees were assessed, in proportion to their collected assessments. CommentsClose CommentsPermalink





(e) ERCOT- CommentsClose CommentsPermalink





(1) ASSESSMENT, COLLECTION, AND REMITTANCE- (A) Notwithstanding any other provision of this section, within ERCOT, the assessment provided for in subsection (d) shall be-- CommentsClose CommentsPermalink





(i) levied directly on qualified scheduling entities, or their successor entities; CommentsClose CommentsPermalink





(ii) charged consistent with other charges imposed on qualified scheduling entities as a fee on energy used by the load-serving entities; and CommentsClose CommentsPermalink





(iii) collected and remitted by ERCOT to the Corporation in the amounts and in the same manner as set forth in subsection (d). CommentsClose CommentsPermalink





(B) The assessment amounts referred to in subparagraph (A) shall be-- CommentsClose CommentsPermalink





(i) determined by the amount and types of fossil fuel-based electricity delivered directly to all retail customers in the prior calendar year beginning with the year ending immediately prior to the period described in subsection (b)(12); and CommentsClose CommentsPermalink





(ii) take into account the number of renewable energy credits retired by the load-serving entities represented by a qualified scheduling entity within the prior calendar year. CommentsClose CommentsPermalink





(2) ADMINISTRATION EXPENSES- Up to 1 percent of the funds collected in any fiscal year by ERCOT under the provisions of this subsection may be used for the administrative expenses incurred in the determination, collection and remittance of the assessments to the Corporation. CommentsClose CommentsPermalink





(3) AUDIT- ERCOT shall provide a copy of its annual audit pertaining to the administration of the provisions of this subsection to the Corporation. CommentsClose CommentsPermalink





(4) DEFINITIONS- For the purposes of this subsection: CommentsClose CommentsPermalink





(A) The term ‘ERCOT’ means the Electric Reliability Council of Texas. CommentsClose CommentsPermalink





(B) The term ‘load-serving entities’ has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act. CommentsClose CommentsPermalink





(C) The term ‘qualified scheduling entities’ has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act. CommentsClose CommentsPermalink





(D) The term ‘renewable energy credit’ has the meaning as promulgated and adopted by the Public Utility Commission of Texas pursuant to section 39.904(b) of the Public Utility Regulatory Act of 1999, and in effect on the date of enactment of this Act. CommentsClose CommentsPermalink





(f) Determination of Fossil Fuel-Based Electricity Deliveries- CommentsClose CommentsPermalink





(1) FINDINGS- The Congress finds that: CommentsClose CommentsPermalink





(A) The assessments under subsection (d) are to be collected based on the amount of fossil fuel-based electricity delivered by each distribution utility. CommentsClose CommentsPermalink





(B) Since many distribution utilities purchase all or part of their retail consumer’s electricity needs from other entities, it may not be practical to determine the precise fuel mix for the power sold by each individual distribution utility. CommentsClose CommentsPermalink





(C) It may be necessary to use average data, often on a regional basis with reference to Regional Transmission Organization (‘RTO’) or NERC regions, to make the determinations necessary for making assessments. CommentsClose CommentsPermalink





(2) DOE PROPOSED RULE- The Secretary, acting in close consultation with the Energy Information Administration, shall issue for notice and comment a proposed rule to determine the level of fossil fuel electricity delivered to retail customers by each distribution utility in the United States during the most recent calendar year or other period determined to be most appropriate. Such proposed rule shall balance the need to be efficient, reasonably precise, and timely, taking into account the nature and cost of data currently available and the nature of markets and regulation in effect in various regions of the country. Different methodologies may be applied in different regions if appropriate to obtain the best balance of such factors. CommentsClose CommentsPermalink





(3) FINAL RULE- Within 6 months after the date of enactment of this Act, and after opportunity for comment, the Secretary shall issue a final rule under this subsection for determining the level and type of fossil fuel-based electricity delivered to retail customers by each distribution utility in the United States during the appropriate period. In issuing such rule, the Secretary may consider opportunities and costs to develop new data sources in the future and issue recommendations for the Energy Information Administration or other entities to collect such data. After notice and opportunity for comment the Secretary may, by rule, subsequently update and modify the methodology for making such determinations. CommentsClose CommentsPermalink





(4) ANNUAL DETERMINATIONS- Pursuant to the final rule issued under paragraph (3), the Secretary shall make annual determinations of the amounts and types for each such utility and publish such determinations in the Federal Register. Such determinations shall be used to conduct the referendum under subsection (b) and by the Corporation in applying any assessment under this subsection. CommentsClose CommentsPermalink





(5) REHEARING AND JUDICIAL REVIEW- The owner or operator of any distribution utility that believes that the Secretary has misapplied the methodology in the final rule in determining the amount and types of fossil fuel electricity delivered by such distribution utility may seek rehearing of such determination within 30 days of publication of the determination in the Federal Register. The Secretary shall decide such rehearing petitions within 30 days. The Secretary’s determinations following rehearing shall be final and subject to judicial review in the United States Court of Appeals for the District of Columbia. CommentsClose CommentsPermalink





(g) Compliance With Corporation Assessments- The Corporation may bring an action in the appropriate court of the United States to compel compliance with an assessment levied by the Corporation under this section. A successful action for compliance under this subsection may also require payment by the defendant of the costs incurred by the Corporation in bringing such action. CommentsClose CommentsPermalink





(h) Midcourse Review- Not later than 5 years following establishment of the Corporation, the Comptroller General of the United States shall prepare an analysis, and report to Congress, assessing the Corporation’s activities, including project selection and methods of disbursement of assessed fees, impacts on the prospects for commercialization of carbon capture and storage technologies, adequacy of funding, and administration of funds. The report shall also make such recommendations as may be appropriate in each of these areas. The Corporation shall reimburse the Government Accountability Office for the costs associated with performing this midcourse review. CommentsClose CommentsPermalink





(i) Recovery of Costs- CommentsClose CommentsPermalink





(1) IN GENERAL- A distribution utility whose transmission, delivery, or sales of electric energy are subject to any form of rate regulation shall not be denied the opportunity to recover the full amount of the prudently incurred costs associated with complying with this section, consistent with applicable State or Federal law. CommentsClose CommentsPermalink





(2) RATEPAYER REBATES- Regulatory authorities that approve cost recovery pursuant to paragraph (1) may order rebates to ratepayers to the extent that distribution utilities are reimbursed undedicated or unassigned balances pursuant to subsection (d)(3). CommentsClose CommentsPermalink





(j) Technical Advisory Committee- CommentsClose CommentsPermalink





(1) ESTABLISHMENT- There is established an advisory committee, to be known as the ‘Technical Advisory Committee’. CommentsClose CommentsPermalink





(2) MEMBERSHIP- The Technical Advisory Committee shall be comprised of not less than 7 members appointed by the Board from among academic institutions, national laboratories, independent research institutions, and other qualified institutions. No member of the Committee shall be affiliated with EPRI or with any organization having members serving on the Board. At least one member of the Committee shall be appointed from among officers or employees of the Department of Energy recommended to the Board by the Secretary of Energy. CommentsClose CommentsPermalink





(3) CHAIRPERSON AND VICE CHAIRPERSON- The Board shall designate one member of the Technical Advisory Committee to serve as Chairperson of the Committee and one to serve as Vice Chairperson of the Committee. CommentsClose CommentsPermalink





(4) COMPENSATION- The Board shall provide compensation to members of the Technical Advisory Committee for travel and other incidental expenses and such other compensation as the Board determines to be necessary. CommentsClose CommentsPermalink





(5) PURPOSE- The Technical Advisory Committee shall provide independent assessments and technical evaluations, as well as make non-binding recommendations to the Board, concerning Corporation activities, including but not limited to the following: CommentsClose CommentsPermalink





(A) Reviewing and evaluating the Corporation’s plans and budgets described in subsection (c)(89), as well as any other appropriate areas, which could include approaches to prioritizing technologies, appropriateness of engineering techniques, monitoring and verification technologies for storage, geological site selection, and cost control measures. CommentsClose CommentsPermalink





(B) Making annual non-binding recommendations to the Board concerning any of the matters referred to in subparagraph (A), as well as what types of investments, scientific research, or engineering practices would best further to the goals of the Corporation.(6)he goals of the Corporation. CommentsClose CommentsPermalink





(6) PUBLIC AVAILABILITY- All reports, evaluations, and other materials of the Technical Advisory Committee shall be made available to the public by the Board, without charge, at time of receipt by the Board. CommentsClose CommentsPermalink





(k) Lobbying Restrictions- No funds collected by the Corporation shall be used in any manner for influencing legislation or elections, except that the Corporation may recommend to the Secretary and the Congress changes in this section or other statutes that would further the purposes of this section. CommentsClose CommentsPermalink





(l) Davis-Bacon Compliance- The Corporation shall ensure that entities receiving grants, contracts, or other financial support from the Corporation for the project activities authorized by this section are in compliance with the Davis-Bacon Act (40 U.S.C. 276a--276a-5). CommentsClose CommentsPermalink

SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES.

‘SEC. 786. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES.

‘(a) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations providing for the distribution of emission allowances allocated pursuant to section 782(f), pursuant to the requirements of this section, to support the commercial deployment of carbon capture and sequestration technologies in both electric power generation and industrial operations. CommentsClose CommentsPermalink





‘(b) Eligibility Criteria- To be eligible to receive emission allowances under this section, the owner of a project r operator of a project must-- CommentsClose CommentsPermalink





‘(1) implement carbon capture and sequestration technology-- CommentsClose CommentsPermalink





‘(A) at an electric generating unit that-- CommentsClose CommentsPermalink





‘(i) has a nameplate capacity of 200 megawatts or more; CommentsClose CommentsPermalink





( ‘(ii) in the case of a retrofit application, applies the carbon capture and sequestration technology to the flue gas from at least 200 megawatts of the total nameplate generating capacity of the unit, provided that clause (i) shall apply without exception; CommentsClose CommentsPermalink





‘(iii) derives at least 50 percent of its annual fuel input from coal, petroleum coke, or any combination of these 2 fuels; and CommentsClose CommentsPermalink





(iii‘(iv) upon implementation of capture and sequestration technology, will capture and permanently sequester at least 50 percent of the carbon dioxideachieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by-- CommentsClose CommentsPermalink





‘(I) the unit, measured on an annual basis, that would be emitted by the unit absent capture and sequestration technology; ordetermined in accordance with section 812(b)(2); or CommentsClose CommentsPermalink





‘(II) in the case of retrofit applications under clause (ii), the treated portion of flue gas from the unit, measured on an annual basis, determined in accordance with section 812(b)(2); or CommentsClose CommentsPermalink





‘(B) at an industrial source that-- CommentsClose CommentsPermalink





(i) injects for sequestration not less‘(i) absent carbon capture and sequestration, would emit greater than 50,000 tons per year of carbon dioxide; CommentsClose CommentsPermalink





‘(ii) upon implementation, will capture and permanently sequester at least 50 percent of the carbon dioxide produced by the sourceachieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the emission point, measured on an annual basis, that would be emitted in the absence of capture and sequestration technology; anddetermined in accordance with section 812(b)(2); and CommentsClose CommentsPermalink





‘(iii) does not produce a liquid transportation fuel from a solid fossil-based feedstock; CommentsClose CommentsPermalink





(2) permanent‘(2) geologically sequester carbon dioxide at a site that meets all applicable permitting and certification requirements for geologic sequestration, or, pursuant to such requirements as the Administrator may prescribe by regulation, convert captured carbon dioxide to a stable form that will safely and permanently sequester such carbon dioxide; CommentsClose CommentsPermalink





‘(3) meet all other applicable State and Federal permitting requirements; and CommentsClose CommentsPermalink





‘(4) be located in the United States. CommentsClose CommentsPermalink





‘(c) Phase I Distribution to Electric Generating Units- CommentsClose CommentsPermalink





‘(1) APPLICATION- This subsection shall apply only to projects at the first 6 gigawatts of electric generating units, measured in cumulative generating capacity of such units. CommentsClose CommentsPermalink





‘(2) DISTRIBUTION- The Administrator shall distribute emission allowances allocated under section 782(a)(f) tof) to the owner or operator of each eligible project at an electric generating unit in a quantity equal to the quotient obtained by dividing-- CommentsClose CommentsPermalink





‘(A) the product obtained by multiplying-- CommentsClose CommentsPermalink





(i) the number of metric ‘(i) the number of metric tons of carbon dioxide emissions avoided through capture and sequestration of emissions by the project, as determined pursuant to such methodology as the Administrator shall prescribe by regulation; and CommentsClose CommentsPermalink





‘(ii) a bonus allowance value, pursuant to paragraph (3); by CommentsClose CommentsPermalink





‘(B) the average fair market value of an emission allowance during the preceding year. CommentsClose CommentsPermalink





‘(3) BONUS ALLOWANCE VALUES- CommentsClose CommentsPermalink





‘(A) For a generating unit achieving the capture and sequestration of 85 percent or more of the carbon dioxide that otherwise would be emitted by such unit, the bonus allowance value shall be $90. CommentsClose CommentsPermalink





‘(B) The Administrator shall by regulation establish a bonus allowance value for each rate of lower capture and sequestration achieved by a generating unit, from a minimum of $50 per ton for a 50 percent rate and varying directly with increasing rates of capture and sequestration up to $90 per ton for an 85 percent rate. CommentsClose CommentsPermalink





‘(C) For a generating unit that achieves the capture and sequestration of at least 50 percent of the carbon dioxide that otherwise would be emitted by such unit by not later than January 1, 2017, the otherwise applicable bonus allowance value under this paragraph shall be increased by $10, provided that the owner of such unit notifies the Administrator of its intent to achieve such rate of capture and sequestration by not later than January 1, 2012. CommentsClose CommentsPermalink





(D) For a carbon capture ‘(D) For a carbon capture and sequestration project sequestering in a geological formation for purposes of enhanced hydrocarbon recovery, the Administrator shall, by regulation, reduce the applicable bonus allowance value under this paragraph to reflect the lower net cost of the project when compared to sequestration into geological formations solely for purposes of sequestration. CommentsClose CommentsPermalink





‘(E) All monetary values in this section shall be adjusted annually for inflation. CommentsClose CommentsPermalink





‘(d) Phase II Distribution to Electric Generating Units- CommentsClose CommentsPermalink





‘(1) APPLICATION- This subsection shall apply only to the distribution of emission allowances to carbon capture and sequestration projects at electric generating units after the capacity threshold identified in subsection (c)(1) is reached. CommentsClose CommentsPermalink





‘(2) REGULATIONS- Not later than 2 years prior to the date on which the capacity threshold identified in subsection (c)(1) is projected to be reached, the Administrator shall promulgate regulations to govern the distribution of emission allowances to eligible projects under this subsection.(3)the owners or operators of eligible projects under this subsection. CommentsClose CommentsPermalink





‘(3) REVERSE AUCTIONS- CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as provided in paragraph (4), the regulations promulgated under paragraph (2) shall provide for the distribution of emission allowances to eligible projects under this subsection through the owners or operators of eligible projects under this subsection through reverse auctions, which shall be held no less frequently than once each calendar year. The Administrator may establish a separate auction for each of no more than 5 different project categories, defined on the basis of coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof. The Administrator may establish appropriate minimum rates of capture and sequestration in implementing this paragraph. CommentsClose CommentsPermalink





‘(B) AUCTION PROCESS- At each reverse auction-- CommentsClose CommentsPermalink





‘(i) the Administrator shall solicit bids from eligible entities;(ii) eligible entitieprojects; CommentsClose CommentsPermalink





‘(ii) eligible projects participating in the auction shall submit a bid including the desired level of carbon dioxide sequestration incentive per ton and the estimated quantity of carbon dioxide that the project will permanently sequester over 10 years; and CommentsClose CommentsPermalink





‘(iii) the Administrator shall select bids, within each auction, for the sequestration amount submitted, beginning with the eligible entityproject submitting the bid for the lowest level of sequestration incentive on a per ton basis and meeting such other requirements as the Administrator may specify, until the amount of funds available for the reverse auction is committed. CommentsClose CommentsPermalink





‘(C) FORM OF DISTRIBUTION- The Administrator shall provide deployment incentives to eligible entitiethe owners or operators of eligible projects selected through a reverse auction under this paragraph pursuant to a formula equivalent to that described in subsection (c)(2), except that the incentive level that is bid by the entity shall be substituted for the bonus allowance value. CommentsClose CommentsPermalink





‘(4) ALTERNATIVE DISTRIBUTION METHOD- CommentsClose CommentsPermalink





‘(A) IN GENERAL- If the Administrator determines that reverse auctions would not provide for efficient and cost-effective commercial deployment of carbon capture and sequestration technologies, the Administrator may instead, through regulations promulgated under paragraph (2) or (5), prescribe a schedule for the award of bonus allowances to eligible projects under this subsection, in accordthe owners or operators of eligible projects under this subsection, in accordance with the requirements of this paragraph. CommentsClose CommentsPermalink





‘(B) MULTIPLE TRANCHES- The Administrator shall divide emission allowances available for distribution to the owners or operators of eligible projects into a series of tranches, each supporting the deployment of a specified quantity of cumulative electric generating capacity utilizing carbon capture and sequestration technology, each of which shall not be greater than 6 gigawatts. CommentsClose CommentsPermalink





‘(C) METHOD OF DISTRIBUTION- The Administrator shall distribute emission allowances within each tranche, on a first-come, first-served basis-- CommentsClose CommentsPermalink





(i) based on the date of ‘(i) based on the date of full-scale operation of capture and sequestration technology; and CommentsClose CommentsPermalink





‘(ii) pursuant to a formula, similar to that set forth in subsection (c)(2) (except that the Administrator shall prescribe bonus allowance values different than those set forth in subsection (c)(2)), establishing the number of allowances to be distributed per ton of carbon dioxide permanently sequestered by the project. CommentsClose CommentsPermalink





‘(D) REQUIREMENTS- For each tranche established pursuant to subparagraph (A), the Administrator shall establish a schedule for distributing emission allowances that-- CommentsClose CommentsPermalink





‘(i) is based on a sliding scale that provides higher bonus allowance values for projects achieving higher rates of capture and sequestration; CommentsClose CommentsPermalink





‘(ii) for each capture and sequestration rate, establishes a bonus allowance value that is lower than that established for such rate in the previous tranche (or, in the case of the first tranche, than that established for such rate under subsection (c)(1)); and3)); and CommentsClose CommentsPermalink





‘(iii) may establish different bonus allowance levels for no more than 5 different project categories, defined by coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof. CommentsClose CommentsPermalink





‘(E) CRITERIA FOR ESTABLISHING BONUS ALLOWANCE VALUES- In setting bonus allowance values under this paragraph, the Administrator shall seek to cover no more than the reasonable incremental capital and operating costs of a project that are attributable to implementation of carbon capture, transportation, and sequestration technologies, taking into account-- CommentsClose CommentsPermalink





‘(i) the reduced cost of compliance with section 722 of this Act; CommentsClose CommentsPermalink





‘(ii) the reduced cost associated with sequestering in a geological formation for purposes of enhanced hydrocarbon recovery when compared to sequestration into geological formations solely for purposes of sequestration; CommentsClose CommentsPermalink





‘(iii) the relevant factors defining the project category; and CommentsClose CommentsPermalink





‘(iv) such other factors as the Administrator determines are appropriate. CommentsClose CommentsPermalink





‘(5) REVISION OF REGULATIONS- The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years. CommentsClose CommentsPermalink





‘(e) Limits for Certain Electric Generating Units- CommentsClose CommentsPermalink





‘(1) DEFINITIONS- For purposes of this subsection, the terms ‘covered EGU’ and ‘initially permitted’ shall have the meaning given those terms in section 812 of this Act. CommentsClose CommentsPermalink





‘(2) COVERED EGUS INITIALLY PERMITTED FROM 2009 THROUGH 20154- For a covered EGU that is initially permitted on or after January 1, 2009, and before January 1, 2015, the Administrator shall reduce the quantity of emission allowances that the owner or operator of such covered EGU would otherwise be eligible to receive under this section by the product of--

(A) 20 percent; and

(B) the number of years between--

(ias follows: CommentsClose CommentsPermalink




‘(A) In the case of a unit commencing operation on or before January 1, 2019, if the date in clause (ii)(I) is earlier than the date in clause (ii)(II), by the product of-- CommentsClose CommentsPermalink





‘(i) 20 percent; and CommentsClose CommentsPermalink





‘(ii) the number of years, if any, that have elapsed between-- CommentsClose CommentsPermalink





‘(I) the earlier of January 1, 2020, or the date that is 5 years after the commencement of operation of such covered EGU; and CommentsClose CommentsPermalink





(ii‘(II) the first year that such covered EGU achieves (and thereafter maintains) the capture and permanent sequestration of at least 50 percent of the carbon dioxidean emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, that such covered EGU would emit in the absence of carbon capture and sequestration technology.(3)as determined in accordance with section 812(b)(2). CommentsClose CommentsPermalink





‘(B) In the case of a unit commencing operation after January 1, 2019, by the product of-- CommentsClose CommentsPermalink





‘(i) 20 percent; and CommentsClose CommentsPermalink





‘(ii) the number of years between-- CommentsClose CommentsPermalink





‘(I) the commencement of operation of such covered EGU; and CommentsClose CommentsPermalink





‘(II) the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2). CommentsClose CommentsPermalink





‘(3) COVERED EGUS INITIALLY PERMITTED FROM 2015 THROUGH 2020- A19- The owner or operator of a covered EGU that is initially permitted on or after January 1, 2015, and before January 1, 2020, shall be ineligible to receive emission allowances pursuant to this section if such unit, upon commencement of operations or thereafter, does not achieve and maintain the capture and permanent sequestration of at least 50 percent of the carbon dioxide(and thereafter), does not achieve and maintain an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, that such covered EGU would emit in the absence of capture and sequestration technology.as determined in accordance with section 812(b)(2). CommentsClose CommentsPermalink





‘(f) Industrial Sources- CommentsClose CommentsPermalink





‘(1) ALLOWANCES- The Administrator may distribute not more than 15 percent of the allowances allocated under section 782(a)(f) for any vintage year to for any vintage year to the owners or operators of eligible industrial sources to support the commercial-scale deployment of carbon capture and sequestration technologies at such sources. CommentsClose CommentsPermalink





‘(2) DISTRIBUTION- The Administrator shall, by regulation, prescribe requirements for the distribution of emission allowances to the owners or operators of industrial sources under this subsection, based on a bonus allowance formula that awards allowances to qualifying projects on the basis of tons of carbon dioxide captured and permanently sequestered. The Administrator may provide for the distribution of emission allowances pursuant to-- CommentsClose CommentsPermalink





‘(A) a reverse auction method, similar to that described under subsection (d)(3), including the use of separate auctions for different project categories; or CommentsClose CommentsPermalink





‘(B) an incentive schedule, similar to that described under subsection (d)(4), which shall ensure that incentives are set so as to satisfy the requirement described in subsection (d)(4)(E). CommentsClose CommentsPermalink





‘(3) REVISION OF REGULATIONS- The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years. CommentsClose CommentsPermalink





(g) Limitations-‘(g) Limitations- Allowances may be distributed under this section only for tons of carbon dioxide emissions that have already been captured and sequestered. A qualifying project may receive annual emission allowances under this section only for the first 10 years of operation. No greater than 72 gigawatts of total cumulative generating capacity (including industrial applications, measured by such equivalent metric as the Administrator may designate) may receive emission allowances under this section. Upon reaching the limit described in the preceding sentence, the Administrator shall auction, pursuant to section 791, any emission allowances that are allocated for carbon capture and sequestration deployment under section 782(a)(f) and are not yet obligated under this section.(h) shall be treated as allowances not designated for distribution for purposes of section 782(r). CommentsClose CommentsPermalink





‘(h) Exhaustion of Account and Annual Roll-Over of Surplus Allowances- CommentsClose CommentsPermalink





‘(1) In distributing bonus allowances under this subsection, the Administrator shall ensure that qualifying projects receiving allowances receive distributions for 10 years. CommentsClose CommentsPermalink





‘(2) If the Administrator determines that the allowances allocated under section 782(a)(f) with a vintage year that matches the year of distribution will be exhausted once the estimated full 10-year distributions will be provided to current eligible participants, the Administrator shall provide to new eligible projects allowances from vintage years after the year of the distribution. CommentsClose CommentsPermalink





(i ‘(i) Retrofit Applications- (1) In calculating bonus allowance values for retrofit applications eligible under subsections (b)(1)(A)(ii) and (b)(1)(A)(iv)(II), the Administrator shall apply the required capture rates with respect to the treated portion of flue gas from the unit. CommentsClose CommentsPermalink





‘(2) No additional projects shall be eligible for allowances under subsections (b)(1)(A)(ii) and (b)(1)(A)(iv)(II) as of such time as the Administrator reports, pursuant to section 812(d), that carbon capture and sequestration retrofit projects at electric generating units that are eligible for allowances under this section have been applied, in the aggregate, to the flue gas generated by 1 gigawatt of total cumulative generating capacity. CommentsClose CommentsPermalink





‘(j) Davis-Bacon Compliance- All laborers and mechanics employed on projects funded directly by or assisted in whole or in part by this section through the use of bonus allowances shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV, chapter 31, part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) andsection 3145 of title 40, United States Code.’. CommentsClose CommentsPermalink

SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.

(a) In General- Title VIII of the Clean Air Act (as added by section 331 of this Act) is amended by adding the following new section after section 811: CommentsClose CommentsPermalink

‘SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.

‘(a) Definitions- For purposes of this section: CommentsClose CommentsPermalink





‘(1) COVERED EGU- The term ‘covered EGU’ means a utility unit that is required to have a permit under section 503(a) and is authorized under state or federal law to derive at least 30 percent of its annual heat input from coal, petroleum coke, or any combination of these fuels. CommentsClose CommentsPermalink





‘(2) INITIALLY PERMITTED- The term ‘initially permitted’ means that the owner or operator has received a Clean Air Act preconstruction approval or permit, for the covered EGU as a new (not a modified) source, but administrative review or appeal of such approval or permit has not been exhausted. A subsequent modification of any such approval or permits, ongoing administrative or court review, appeals, or challenges, or the existence or tolling of any time to pursue further review, appeals, or challenges shall not affect the date on which a covered EGU is considered to be initially permitted under this paragraph. CommentsClose CommentsPermalink





‘(b) Standards- (1) A covered EGU that is initially permitted on or after January 1, 2020, shall achieve an emission limit that is a 65 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis, or meet such more stringent standard as the Administrator may establish pursuant to subsection (c). CommentsClose CommentsPermalink





In determining compliance with this subsection, the Administrator shall assume an energy penalty of the carbon dioxide capture system of no greater than 15 percent.‘(2) A covered EGU that is initially permitted after January 1, 2009, and before January 1, 2020, shall, by the applicable compliance date established under this paragraph, shall achieve achieve an emission limit that is a 50 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis. In determining compliance with this subsection, the Administrator shall assume an energy penalty of the carbon dioxide capture system of no greater than 15 percent. Compliance with the requirement set forth in this paragraph shall be required by the earliest of the following: CommentsClose CommentsPermalink





‘(A) Four years after the date the Administrator issues a determination that there are in commercial operation in the United States electric has published pursuant to subsection (d) a report that there are in commercial operation in the United States electric generating units or other stationary sources equipped with carbon capture and sequestration technology that, in the aggregate-- CommentsClose CommentsPermalink





‘(i) have a total of at least 4 gigawatts of nameplate generating capacity of which-- CommentsClose CommentsPermalink





‘(I) at least 3 gigawatts must be electric generating units; and CommentsClose CommentsPermalink





‘(II) up to 1 gigawatt may be industrial applications, for which capture and sequestration of 3 million tons of carbon dioxide per year on an aggregate annualized basis shall be considered equivalent to 1 gigawatt; CommentsClose CommentsPermalink





‘(ii) include at least 2 electric generating units, each with a nameplate generating capacity of 250 megawatts or greater, that inject carbon dioxide intocapture, inject, and sequester carbon dioxide into geologic formations other than oil and gas fields; and CommentsClose CommentsPermalink





‘(iii) are capturing and sequestering in the aggregate at least 12 million tons of carbon dioxide per year, calculated on an aggregate annualized basis. CommentsClose CommentsPermalink





‘(B) January 1, 2025. CommentsClose CommentsPermalink





‘(3) If the deadline for compliance with paragraph (2) is January 1, 2025, the Administrator may extend the deadline for compliance by a covered EGU by up to 18 months if the Administrator makes a determination, based on a showing by the owner or operator of the unit, that it will be technically infeasible for the unit to meet the standard by the deadline. The owner or operator must submit a request for such an extension by no later than January 1, 2022, and the Administrator shall provide for public notice and comment on the extension request. CommentsClose CommentsPermalink





‘(c) Review and Revision of Standards- Not later than 2025 and at 5-year intervals thereafter, the Administrator shall review the standards for new covered EGUs under this section and shall, by rule, reduce the maximum carbon dioxide emission rate for new covered EGUs to a rate which reflects the degree of emission limitation achievable through the application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated. CommentsClose CommentsPermalink





‘(d) Reports- Not later than the date 18 months after the date of enactment of this title and semiannually thereafter, the Administrator shall publish a report on the nameplate capacity of units (determined pursuant to subsection (b)(2)(A)) in commercial operation in the United States equipped with carbon capture and sequestration technology, including the information described in subsection (b)(2)(A) (including the cumulative generating capacity to which carbon capture and sequestration retrofit projects meeting the criteria described in section 786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the quantities of carbon dioxide captured and sequestered by such projects). CommentsClose CommentsPermalink





‘(e) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the requirements of this section.’. CommentsClose CommentsPermalink

Subtitle C--Clean Transportation CommentsClose CommentsPermalink

SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE.

(a) Amendment of PURPA- Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following: CommentsClose CommentsPermalink





‘(20) PLUG-IN ELECTRIC DRIVE VEHICLE INFRASTRUCTURE- CommentsClose CommentsPermalink





‘(A) UTILITY PLAN FOR INFRASTRUCTURE- Each electric utility shall develop a plan to support the use of plug-in electric drive vehicles, including heavy-duty hybrid electric vehicles. The plan may provide for deployment of electrical charging stations in public or private locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops. Any such plan may also include-- CommentsClose CommentsPermalink





‘(i) battery exchange, fast charging infrastructure and other services; CommentsClose CommentsPermalink





‘(ii) triggers for infrastructure deployment based upon market penetration of plug-in electric drive vehicles; and CommentsClose CommentsPermalink





‘(iii) such other elements as the State determines necessary to support plug-in electric drive vehicles. CommentsClose CommentsPermalink





Each plan under this paragraph shall provide for the deployment of the charging infrastructure or other infrastructure necessary to adequately support the use of plug-in electric drive vehicles. CommentsClose CommentsPermalink





‘(B) SUPPORT REQUIREMENTS- Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall-- CommentsClose CommentsPermalink





‘(i) require that charging infrastructure deployed is interoperable with products of all auto manufacturers to the extent possible; and CommentsClose CommentsPermalink





‘(ii) consider adopting minimum requirements for deployment of electrical charging infrastructure and other appropriate requirements necessary to support the use of plug-in electric drive vehicles. CommentsClose CommentsPermalink





‘(C) COST RECOVERY- Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall consider whether, and to what extent, to allow cost recovery for plans and implementation of plans. CommentsClose CommentsPermalink





‘(D) SMART GRID INTEGRATION- The State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall, in accordance with regulations issued by the Federal Energy Regulatory Commission pursuant to section 1305(d) of the Energy Independence and Security Act of 2007-- CommentsClose CommentsPermalink





‘(i) establish any appropriate protocols and standards for integrating plug-in electric drive vehicles into an electrical distribution system, including Smart Grid systems and devices as described in title XIII of the Energy Independence and Security Act of 2007; CommentsClose CommentsPermalink





‘(ii) include, to the extent feasible, the ability for each plug-in electric drive vehicle to be identified individually and to be associated with its owner’s electric utility account, regardless of the location that the vehicle is plugged in, for purposes of appropriate billing for any electricity required to charge the vehicle’s batteries as well as any crediting for electricity provided to the electric utility from the vehicle’s batteries; and CommentsClose CommentsPermalink





‘(iii) review the determination made in response to section 1252 of the Energy Policy Act of 2005 in light of this section, including whether time-of-use pricing should be employed to enable the use of plug-in electric drive vehicles to contribute to meeting peak-load and ancillary service power needs.’. CommentsClose CommentsPermalink





(b) Compliance- CommentsClose CommentsPermalink





(1) TIME LIMITATIONS- Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by adding the following at the end thereof: CommentsClose CommentsPermalink





‘(7)(A) Not later than 3 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (20) of section 111(d). CommentsClose CommentsPermalink





‘(B) Not later than 4 years after the date of enactment of the this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standard established by paragraph (20) of section 111(d).’. CommentsClose CommentsPermalink





(2) FAILURE TO COMPLY- Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by adding the following at the end: ‘In the case of the standards established by paragraph (20) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraph.’. CommentsClose CommentsPermalink





(3) PRIOR STATE ACTIONS- Section 112(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is amended by striking ‘(19)’ and inserting ‘(20)’ before ‘of section 111(d)’. CommentsClose CommentsPermalink

SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PROGRAM.

(a) Deployment Program- The Secretary of Energy shall establish a program to deploy and integrate plug-in electric drive vehicles into the electricity grid in multiple regions. In carrying out the program, the Secretary may provide financial assistance described under subsection (d), consistent with the goals under subsection (b). The Secretary shall select regions based upon applications for assistance received pursuant to subsection (c). CommentsClose CommentsPermalink





(b) Goals- The goals of the program established pursuant to subsection (a) shall be-- CommentsClose CommentsPermalink





(1) to demonstrate the viability of a vehicle-based transportation system that is not overly dependent on petroleum as a fuel and contributes to lower carbon emissions than a system based on conventional vehicles; CommentsClose CommentsPermalink





(2) to facilitate the integration of advanced vehicle technologies into electricity distribution areas to improve system performance and reliability; CommentsClose CommentsPermalink





(3) to demonstrate the potential benefits of coordinated investments in vehicle electrification on personal mobility and a regional grid; CommentsClose CommentsPermalink





(4) to demonstrate protocols and standards that facilitate vehicle integration into the grid; and CommentsClose CommentsPermalink





(5) to investigate differences in each region and regulatory environment regarding best practices in implementing vehicle electrification. CommentsClose CommentsPermalink





(c) Applications- Any State, Indian tribe, or local government (or group of State, Indian tribe, or local governments) may apply to the Secretary of Energy for financial assistance in furthering the regional deployment and integration into the electricity grid of plug-in electric drive vehicles. Such applications may be jointly sponsored by electric utilities, automobile manufacturers, technology providers, car sharing companies or organizations, or other persons or entities. CommentsClose CommentsPermalink





(d) Use of Funds- Pursuant to applications received under subsection (c), the Secretary may make financial assistance available to any applicant or joint sponsor of the application to be used for any of the following: CommentsClose CommentsPermalink





(1) Assisting persons located in the regional deployment area, including fleet owners, in the purchase of new plug-in electric drive vehicles by offsetting in whole or in part the incremental cost of such vehicles above the cost of comparable conventionally fueled vehicles. CommentsClose CommentsPermalink





(2) Supporting the use of plug-in electric drive vehicles by funding projects for the deployment of any of the following: CommentsClose CommentsPermalink





(A) Electrical charging infrastructure for plug-in electric drive vehicles, including battery exchange, fast charging infrastructure, and other services, in public or private locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops. CommentsClose CommentsPermalink





(B) Smart Grid equipment and infrastructure, as described in title XIII of the Energy Independence and Security Act of 2007, to facilitate the charging and integration of plug-in electric drive vehicles. CommentsClose CommentsPermalink





(3) Such other projects as the Secretary determines appropriate to support the large-scale deployment of plug-in electric drive vehicles in regional deployment areas. CommentsClose CommentsPermalink





(e) Program Requirements- The Secretary, in consultation with the Administrator and the Secretary of Transportation, shall determine design elements and requirements of the program established pursuant to subsection (a), including-- CommentsClose CommentsPermalink





(1) the type of financial mechanism with which to provide financial assistance; CommentsClose CommentsPermalink





(2) criteria for evaluating applications submitted under subsection (c), including the anticipated ability to promote deployment and market penetration of vehicles that are less dependent on petroleum as a fuel source; and CommentsClose CommentsPermalink





(3) reporting requirements for entities that receive financial assistance under this section, including a comprehensive set of performance data characterizing the results of the deployment program. CommentsClose CommentsPermalink





(f) Information Clearinghouse- The Secretary shall, as part of the program established pursuant to subsection (a), collect and make available to the public information regarding the cost, performance, and other technical data regarding the deployment and integration of plug-in electric drive vehicles. CommentsClose CommentsPermalink





(g) Authorization- There are authorized to be appropriated to carry out this section such sums as may be necessary. CommentsClose CommentsPermalink

SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFACTURING.

(a) Vehicle Manufacturing Assistance Program- The Secretary of Energy shall establish a program to provide financial assistance to automobile manufacturers to facilitate the manufacture of plug-in electric drive vehicles, as defined in section 131(a)(5) of the Energy Independence and Security Act of 2007, that are developed and produced in the United States. CommentsClose CommentsPermalink





(b) Financial Assistance- The Secretary of Energy may provide financial assistance to an automobile manufacturer under the program established pursuant to subsection (a) for-- CommentsClose CommentsPermalink





(1) the reconstruction or retooling of facilities for the manufacture of plug-in electric drive vehicles that are developed and produced in the United States; and CommentsClose CommentsPermalink





(2) if appropriate, the purchase of domestically produced vehicle batteries to be used in the manufacture of vehicles manufactured pursuant to paragraph (1).

(c) Requirements- The Secretary may provide financial assistance under subsection (b) to an automobile manufacturer if--

(1) in the case of a reconstruction or retooling described under subsection (b)(1), without financial assistancethe automobile manufacturer is not able to reasonably finance the reconstruction or retooling of a facility; or

(2) in the case of battery purchases described under subsection (b)(2), without financial assistance, the automobile manufacturer is not able to reasonably finance the purchase of such batteries.

(d) manufacture of vehicles manufactured pursuant to paragraph (1). CommentsClose CommentsPermalink




(c) Coordination With Regional Deployment- The Secretary may provide financial assistance under subsection (b) in conjunction with the award of financial assistance under the large scale vehicle electrification program established pursuant to section 122 of this Act. CommentsClose CommentsPermalink





(ed) Program Requirements- The Secretary shall determine design elements and requirements of the program established pursuant to subsection (a), including-- CommentsClose CommentsPermalink





(1) the type of financial mechanism with which to provide financial assistance; CommentsClose CommentsPermalink





(2) criteria, in addition to the criteria described under subsection (f), for evaluating applications for financiale), for evaluating applications for financial assistance; and CommentsClose CommentsPermalink





(3) reporting requirements for automobile manufacturers that receive financial assistance under this section. CommentsClose CommentsPermalink





(fe) Criteria- In selecting recipients of financial assistance from among applicant automobile manufacturers, the Secretary shall give preference to proposals that-- CommentsClose CommentsPermalink





(1) are most likely to be successful; and CommentsClose CommentsPermalink





(2) are located in local markets that have the greatest need for the facility. CommentsClose CommentsPermalink





(gf) Reports- The Secretary shall annually submit to Congress a report on the program established pursuant to this section. CommentsClose CommentsPermalink





(hg) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section. CommentsClose CommentsPermalink

SEC. 124. INVESTMENT IN CLEAN VEHICLES.

(a) Definitions- In this section: CommentsClose CommentsPermalink





(1) ADVANCED TECHNOLOGY VEHICLES AND QUALIFYING COMPONENTS- The terms ‘advanced technology vehicles’ and ‘qualifying components’ shall have the definition of such terms in section 136 of the Energy Independence and Security Act of 2007, except that for purposes of this section, the average base year as described section 136(a)(1)(C) shall be the following:

(A) in each of the years 2012 through 2016, the average base year shall be model year 2009; and

(B) iin such section 136(a)(1)(C) shall be the following: CommentsClose CommentsPermalink




(A) In each of the years 2012 through 2016, model year 2009. CommentsClose CommentsPermalink





(B) In 2017, the Administrator shall, notwithstanding such section 136(a)(1)(C), determine an appropriate baseline based on technological and economic feasibility. CommentsClose CommentsPermalink





(2) PLUG-IN ELECTRIC DRIVE VEHICLE- The term ‘plug-in electric drive vehicle’ shall have the definition of such term in section 131 of the Energy Independence and Security Act of 2007. CommentsClose CommentsPermalink





(b) Distribution of Allowances- The Administrator shall, in accordance with this section, distribute emission allowances allocated pursuant to section 782(i) of the Clean Air Act not later than October 31September 30 of 2012 and each calendar year thereafter through 2025. CommentsClose CommentsPermalink





(c) Plug-Iin Electric Drive Vehicle Manufacturing and Deployment- CommentsClose CommentsPermalink





(1) IN GENERAL- The Administrator shall, at the direction of the Secretary of Energy, provide allowances allocated pursuant to section [Struck out->][ 782(i) ][<-Struck out] emission allowances allocated pursuant to section 782(i) to applicants, joint sponsors and automobile manufacturers pursuant to sections 122 and 123 of this Act. CommentsClose CommentsPermalink





(2) ANNUAL AMOUNT- In each of the years 2012 through 2017, one-quarter of the portion of the emission allowances allocated pursuant to section 782(i) of the Clean Air Act shall be available to carry out paragraph (1) such that-- CommentsClose CommentsPermalink





(A) one-eighth of the portion shall be available to carry out section 122; and, CommentsClose CommentsPermalink





(B) one-eighth of the portion shall be available to carry out section 123. CommentsClose CommentsPermalink





(3) PREFERENCE- In directing the provision of allowances under this subsectionemission allowances under this subsection to carry out section 122, the Secretary shall give preference to applications under section 122(c) that are jointly sponsored by one or more automobile manufacturers. CommentsClose CommentsPermalink





(4) MULTI-YEAR COMMITMENTS- The Administrator shall commit to providing emission allowances to an applicant, joint sponsor, or automobile manufacturer for up to five consecutive years if-- CommentsClose CommentsPermalink





(A) an application under section 122 or 123 of this Act requests a multi-year commitment; CommentsClose CommentsPermalink





(B) such application meets the criteria for support established by the Secretary of Energy under sections 122 or 123 of this Act; CommentsClose CommentsPermalink





(C) the Administrator confirms to the Secretary that emission allowances will be available for a multi-year commitment; CommentsClose CommentsPermalink





(D) the Secretary of Energy determines that a multi-year commitment for such application will advance the goals of section 122 or 123; and CommentsClose CommentsPermalink





(E) the Secretary of Energy directs the Administrator to make a multi-year commitment. CommentsClose CommentsPermalink





(5) INSUFFICIENT APPLICATIONS- If, in any year, emission allowances available under paragraph (2) cannot be provided because of insufficient numbers of submitted applications that meet the criteria for support established by the Secretary of Energy under sections 122 or 123 of this Act, the remaining emission allowances shall be distributed according to subsection (d). CommentsClose CommentsPermalink





(d) Advanced Technology Vehicles- CommentsClose CommentsPermalink





(1) IN GENERAL- The Administrator shall, at the direction of the Secretary of Energy, provide any emission allowances allocated pursuant to section 782(i) of the Clean Air Act that are not provided under subsection (c) to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of-- CommentsClose CommentsPermalink





(A) reequipping, expanding, or establishing a manufacturing facility in the United States to produce-- CommentsClose CommentsPermalink





(i) qualifying advanced technology vehicles; or CommentsClose CommentsPermalink





(ii) qualifying components; and CommentsClose CommentsPermalink





(B) engineering integration performed in the United States of qualifying vehicles and qualifying components. CommentsClose CommentsPermalink





(2) PREFERENCE- In directing the provision of allowances under this subsection during the years 2012 throughemission allowances under this subsection during the years 2012 through 2017, the Secretary shall give preference to applications for projects that save the maximum number of gallons per vehicleof fuel. CommentsClose CommentsPermalink