,,ii  #aacth ,,congress  #ast ,session  
,s4 #aeie  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,october #bi1  
#bjac,mr4 ,udall of ,new ,mexico 7for   
himself1 ,mr4 ,udall of ,colorado1 and  
,mr4 ,cardin7 introduced the following  
bill2 which was read twice and referred 
to the ,committee on ,energy and        
,natural ,resources  ,a ,,bill  ,to     
establish a renewable electricity       
standard1 and for other purposes4  #a4  
,short title ,this ,act may be cited as 
the ,renewable ,electricity ,standard   
,act of #bjac4  #b4 ,renewable          
electricity standard  7a7 ,in general   
,title ,,vi of the ,public ,utility     
,regulatory ,policies ,act of #aigh 7#af
 ,u4,s4,c4 #bfja et seq47 is amended by 
adding at the end the following3  #faj4 
,renewable electricity standard  7a7    
,definitions ,in this section3 7#a7     
,base quantity of electricity  7,a7 ,in 
general ,the term base quantity of      
electricity means the total quantity of 
electric energy sold by a retail        

electric supplier1 expressed in terms of
 kilowatt hours1 to electric customers  
for purposes other than resale during   
the most recent calendar year for which 
information is available4  7,b7         
,exclusions ,the term base quantity of  
electricity does not include-- 7i7      
electric energy that is not incremental 
hydropower generated by a hydroelectric 
facility2 and  7ii7 electricity         
generated through the incineration of   
municipal solid waste4  7#b7 ,biomass   
7,a7 ,in general ,the term biomass      
means-- 7i7 cellulosic 7plant fiber7    
organic materials from a plant that is  
planted for the purpose of being used to
 produce energy2  7ii7 nonhazardous     
plant or algal matter that is derived   
from-- 7,i7 an agricultural crop1 crop  
byproduct1 or residue resource2 or      
7,,ii7 waste1 such as landscape or      
right-of-way trimmings 7but not         
including municipal solid waste1        
recyclable postconsumer waste paper1    
painted1 treated1 or pressurized wood1  

wood contaminated with plastic1 or      
metals72  7iii7 animal waste or animal  
byproducts2 and  7iv7 landfill methane4 
7,b7 ,national forest land and certain  
other public land ,in the case of       
organic material removed from ,national 
,forest ,system land or from public land
 administered by the ,secretary of the  
,interior1 the term biomass means only  
organic material from-- 7i7 ecological  
forest restoration2  7ii7 precommercial 
thinnings2  7iii7 brush2  7iv7 mill     
residues2 or  7v7 slash4  7,c7          
,exclusion of certain ,federal land     
,notwithstanding subparagraph 7,b71 the 
term biomass does not include material  
or matter that would otherwise qualify  
as biomass if the material or matter is 
located on the following ,federal land3 
7i7 ,federal land containing old growth 
forest or late successional forest      
unless the ,secretary of the ,interior  
or the ,secretary of ,agriculture       
determines that the removal of organic  
material from the land-- 7,i7 is        

appropriate for the applicable forest   
type2 and  7,,ii7 maximizes the         
retention of-- 7aa7 late-successional   
and large and old growth trees2  7bb7   
late-successional and old growth forest 
structure2 and  7cc7 late-successional  
and old growth forest composition4  7ii7
 ,federal land on which the removal of  
vegetation is prohibited1 including     
components of the ,national ,wilderness 
,preservation ,system4  7iii7           
,wilderness study areas4  7iv7          
,inventoried roadless areas4  7v7       
,components of the ,national ,landscape 
,conservation ,system4  7vi7 ,national  
,monuments4  7#c7 ,existing facility    
,the term existing facility means a     
facility for the generation of electric 
energy from a renewable energy resource 
that is not an eligible facility4  7#d7 
,incremental hydropower ,the term       
incremental hydropower means additional 
generation that is achieved from        
increased efficiency or additions of    
capacity made on or after-- 7,a7 the    

date of enactment of this section2 or   
7,b7 the effective date of an existing  
applicable ,state renewable portfolio   
standard program at a hydroelectric     
facility that was placed in service     
before that date4  7#e7 ,indian land    
,the term ,indian land means-- 7,a7 any 
land within the limits of any ,indian   
reservation1 pueblo1 or rancheria2  7,b7
 any land not within the limits of any  
,indian reservation1 pueblo1 or         
rancheria title to which on the date of 
enactment of this section was held by-- 
7i7 the ,united ,states for the benefit 
of any ,indian tribe or individual2 or  
7ii7 any ,indian tribe or individual    
subject to restriction by the ,united   
,states against alienation2  7,c7 any   
dependent ,indian community2 or  7,d7   
any land conveyed to any ,alaska ,native
 corporation under the ,alaska ,native  
,claims ,settlement ,act 7#dc ,u4,s4,c4 
#afja et seq474  7#f7 ,indian tribe ,the
 term ,indian tribe means any ,indian   
tribe1 band1 nation1 or other organized 

group or community1 including any       
,alaskan ,native village or regional or 
village corporation as defined in or    
established pursuant to the ,alaska     
,native ,claims ,settlement ,act 7#dc   
,u4,s4,c4 #afja et seq471 that is       
recognized as eligible for the special  
programs and services provided by the   
,united ,states to ,indians because of  
their status as ,indians4  7#g7         
,renewable energy ,the term renewable   
energy means electric energy generated  
by a renewable energy resource4  7#h7   
,renewable energy resource ,the term    
renewable energy resource means solar1  
wind1 ocean1 tidal1 geothermal energy1  
biomass1 landfill gas1 incremental      
hydropower1 or hydrokinetic energy4     
7#i7 ,repowering or cofiring increment  
,the term repowering or cofiring        
increment means-- 7,a7 the additional   
generation from a modification that is  
placed in service on or after the date  
of enactment of this section1 to expand 
electricity production at a facility    

used to generate electric energy from a 
renewable energy resource2  7,b7 the    
additional generation above the average 
generation during the #c-year period    
ending on the date of enactment of this 
section at a facility used to generate  
electric energy from a renewable energy 
resource or to cofire biomass that was  
placed in service before the date of    
enactment of this section2 or  7,c7 the 
portion of the electric generation from 
a facility placed in service on or after
 the date of enactment of this section1 
or a modification to a facility placed  
in service before the date of enactment 
of this section made on or after        
,january #a1 #bjja1 associated with     
cofiring biomass4  7#aj7 ,retail        
electric supplier  7,a7 ,in general ,the
 term retail electric supplier means a  
person that sells electric energy to    
electric consumers that sold not less   
than #a1jjj1jjj megawatt hours of       
electric energy to electric consumers   
for purposes other than resale during   

the preceding calendar year4  7,b7      
,inclusion ,the term retail electric    
supplier includes a person that sells   
electric energy to electric consumers   
that1 in combination with the sales of  
any affiliate organized after the date  
of enactment of this section1 sells not 
less than #a1jjj1jjj megawatt hours of  
electric energy to consumers for        
purposes other than resale4  7,c7 ,sales
 to parent companies or affiliates ,for 
purposes of this paragraph1 sales by any
 person to a parent company or to other 
affiliates of the person shall not be   
treated as sales to electric consumers4 
7,d7 ,governmental agencies  7i7 ,in    
general ,except as provided in clause   
7ii71 the term retail electric supplier 
does not include-- 7,i7 the ,united     
,states1 a ,state1 any political        
subdivision of a ,state1 or any agency1 
authority1 or instrumentality of the    
,united ,states1 ,state1 or political   
subdivision2 or  7,,ii7 a rural electric
 cooperative4  7ii7 ,inclusion ,the term

 retail electric supplier includes an   
entity that is a political subdivision  
of  a ,state1 or an agency1 authority1  
or instrumentality of the ,united       
,states1 a ,state1 a political          
subdivision of a ,state1 a rural        
electric cooperative that sells electric
 energy to electric consumers1 or any   
other entity that sells electric energy 
to electric consumers that would not    
otherwise qualify as a retail electric  
supplier if the entity notifies the     
,secretary that the entity voluntarily  
agrees to participate in the ,federal   
renewable electricity standard program4 
7b7 ,compliance ,for calendar year #bjad
 and each calendar year thereafter1 each
 retail electric supplier shall meet the
 requirements of subsection 7c7 by      
submitting to the ,secretary1 not later 
than ,april #a of the following calendar
 year1 one or more of the following3    
7#a7 ,federal renewable energy credits  
issued under subsection 7e74  7#b7      
,certification of the renewable energy  

generated and electricity savings       
pursuant to the funds associated with   
,state compliance payments as specified 
in subsection 7e77#d77;,g74  7#c7       
,alternative compliance payments        
pursuant to subsection 7h74  7c7        
,required annual percentage ,for each of
 calendar years #bjad through #bjci1 the
 required annual percentage of the base 
quantity of electricity of a retail     
electric supplier that shall be         
generated from renewable energy         
resources1 or otherwise credited towards
 the percentage requirement pursuant to 
subsection 7d71 shall be the applicable 
percentage specified in the following   
table3 ,required ,amount,calendar       
,years,percentage#bjadf4jbjaeh4ebjafaa4j
bjagaa4jbjahad4jbjaiad4jbjbjag4ebjbaag4e
bjbbba4jbjbcba4jbjbdbc4jbjbe and        
thereafter through #bjcibe4j4  7d7      
,renewable energy credits  7#a7 ,in     
general ,a retail electric supplier may 
satisfy the requirements of subsection  
7b77#a7 through the submission of       

,federal renewable energy credits-- 7,a7
 issued to the retail electric supplier 
under subsection 7e72  7,b7 obtained by 
purchase or exchange under subsection   
7f72 or  7,c7 borrowed under subsection 
7g74  7#b7 ,federal renewable energy    
credits ,a ,federal renewable energy    
credit may be counted toward compliance 
with subsection 7b77#a7 only once4  7e7 
,issuance of ,federal renewable energy  
credits  7#a7 ,in general ,not later    
than #a year after the date of enactment
 of this section1 the ,secretary shall  
establish by rule a program-- 7,a7 to   
verify and issue ,federal renewable     
energy credits to generators of         
renewable energy2  7,b7 to track the    
sale1 exchange1 and retirement of the   
credits2 and  7,c7 to enforce the       
requirements of this section4  7#b7     
,existing non-,federal tracking systems 
,to the maximum extent practicable1 in  
establishing the program1 the ,secretary
 shall rely on existing and emerging    
,state or regional tracking systems that

 issue and track non-,federal renewable 
energy credits4  7#c7 ,application  7,a7
 ,in general ,an entity that generates  
electric energy through the use of a    
renewable energy resource may apply to  
the ,secretary for the issuance of      
renewable energy credits4  7,b7         
,eligibility ,to be eligible for the    
issuance of the credits1 the applicant  
shall demonstrate to the ,secretary     
that-- 7i7 the electric energy will be  
transmitted onto the grid2 or  7ii7 in  
the case of a generation offset1 the    
electric energy offset would have       
otherwise been consumed onsite4  7,c7   
,contents ,the application shall        
indicate-- 7i7 the type of renewable    
energy resource that is used to produce 
the electricity2  7ii7 the location at  
which the electric energy will be       
produced2 and  7iii7 any other          
information the ,secretary determines   
appropriate4  7#d7 ,quantity of ,federal
 renewable energy credits  7,a7 ,in     
general ,except as otherwise provided in

 this paragraph1 the ,secretary shall   
issue to a generator of electric energy 
#a ,federal renewable energy credit for 
each kilowatt hour of electric energy   
generated by the use of a renewable     
energy resource at an eligible facility4
  7,b7 ,incremental hydropower  7i7 ,in 
general ,for purpose of compliance with 
this section1 ,federal renewable energy 
credits for incremental hydropower shall
 be based on the increase in average    
annual generation resulting from the    
efficiency improvements or capacity     
additions4  7ii7 ,water flow information
 ,the incremental generation shall be   
calculated using the same water flow    
information that is-- 7,i7 used to      
determine a historic average annual     
generation baseline for the             
hydroelectric facility2 and  7,,ii7     
certified by the ,secretary or the      
,federal ,energy ,regulatory            
,commission4  7iii7 ,operational changes
 ,the calculation of the ,federal       
renewable energy credits for incremental

 hydropower shall not be based on any   
operational changes at the hydroelectric
 facility that is not directly          
associated with the efficiency          
improvements or capacity additions4     
7,c7 ,indian land  7i7 ,in general ,the 
,secretary shall issue #b renewable     
energy credits for each kilowatt hour of
 electric energy generated and supplied 
to the grid in a calendar year through  
the use of a renewable energy resource  
at an eligible facility located on      
,indian land4  7ii7 ,biomass ,for       
purposes of this paragraph1 renewable   
energy generated by biomass cofired with
 other fuels is eligible for #b credits 
only if the biomass was grown on the    
land4  7,d7 ,on-site eligible facilities
  7i7 ,in general ,in the case of       
electric energy generated by a renewable
 energy resource at an on-site eligible 
facility that is not larger than #a     
megawatt in capacity and is used to     
offset all or part of the requirements  
of a customer for electric energy1 the  

,secretary shall issue #c renewable     
energy credits to the customer for each 
kilowatt hour generated4  7ii7 ,indian  
land ,in the case of an on-site eligible
 facility on ,indian land1 the          
,secretary shall issue not more than #c 
credits per kilowatt hour4  7,e7        
,combination of renewable and           
nonrenewable energy resources ,if both a
 renewable energy resource and a        
nonrenewable energy resource are used to
 generate the electric energy1 the      
,secretary shall issue the ,federal     
renewable energy credits based on the   
proportion of the renewable energy      
resources used4  7,f7 ,retail electric  
suppliers ,if a generator has sold      
electric energy generated through the   
use of a renewable energy resource to a 
retail electric supplier under a        
contract for power from an existing     
facility and the contract has not       
determined ownership of the ,federal    
renewable energy credits associated with
 the generation1 the ,secretary shall   

issue the ,federal renewable energy     
credits to the retail electric supplier 
for the duration of the contract4  7,g7 
,compliance with ,state renewable       
portfolio standard programs ,payments   
made by a retail electricity supplier1  
directly or indirectly1 to a ,state for 
compliance with a ,state renewable      
portfolio standard program1 or for an   
alternative compliance mechanism1 shall 
be valued at #a credit per kilowatt hour
 for the purpose of subsection 7b77#b7  
based on the quantity of electric energy
 generation from renewable resources    
that results from the payments4  7f7    
,renewable energy credit trading  7#a7  
,in general ,a ,federal renewable energy
 credit may be sold1 transferred1 or    
exchanged by the entity to whom the     
credit is issued or by any other entity 
that acquires the ,federal renewable    
energy credit1 other than renewable     
energy credits from existing facilities4
  7#b7 ,carryover ,a ,federal renewable 
energy credit for any year that is not  

submitted to satisfy the minimum        
renewable generation requirement of     
subsection 7c7 for that year may be     
carried forward for use pursuant to     
subsection 7b77#a7 within the next #c   
years4  7#c7 ,delegation ,the ,secretary
 may delegate to an appropriate         
market-making entity the administration 
of a national tradeable renewable energy
 credit market for purposes of creating 
a transparent national market for the   
sale or trade of renewable energy       
credits4  7g7 ,renewable energy credit  
borrowing  7#a7 ,in general ,not later  
than ,december #ca1 #bjad1 a retail     
electric supplier that has reason to    
believe the retail electric supplier    
will not be able to fully comply with   
subsection 7b7 may-- 7,a7 submit a plan 
to the ,secretary demonstrating that the
 retail electric supplier will earn     
sufficient ,federal renewable energy    
credits within the next #c calendar     
years that1 when taken into account1    
will enable the retail electric supplier

 to meet the requirements of subsection 
7b7 for calendar year #bjad and the     
subsequent calendar years involved2 and 
7,b7 on the approval of the plan by the 
,secretary1 apply ,federal renewable    
energy credits that the plan            
demonstrates will be earned within the  
next #c calendar years to meet the      
requirements of subsection 7b7 for each 
calendar year involved4  7#b7 ,repayment
 ,the retail electric supplier shall    
repay all of the borrowed ,federal      
renewable energy credits by submitting  
an equivalent number of ,federal        
renewable energy credits1 in addition to
 the credits otherwise required under   
subsection 7b71 by calendar year #bjbb  
or any earlier deadlines specified in   
the approved plan4  7h7 ,alternative    
compliance payments ,as a means of      
compliance under subsection 7b77#d71 the
 ,secretary shall accept payment equal  
to the lesser of-- 7#a7 #bjj percent of 
the average market value of ,federal    
renewable energy credits and ,federal   

energy efficiency credits for the       
applicable compliance period2 or  7#b7  
#c cents per kilowatt hour 7as adjusted 
on ,january #a of each year following   
calendar year #bjjf based on the        
implicit price deflator for the gross   
national product74  7i7 ,information    
collection ,the ,secretary may collect  
the information necessary to verify and 
audit-- 7#a7 7,a7 the annual renewable  
energy generation of any retail electric
 supplier2 and  7,b7 ,federal renewable 
energy credits submitted by a retail    
electric supplier pursuant to subsection
 7b77#a72  7#b7 the validity of ,federal
 renewable energy credits submitted for 
compliance by a retail electric supplier
 to the ,secretary2 and  7#c7 the       
quantity of electricity sales of all    
retail electric suppliers4  7j7         
,environmental savings clause           
,incremental hydropower shall be subject
 to all applicable environmental laws   
and licensing and regulatory            
requirements4  7k7 ,state programs  7#a7

 ,in general ,nothing in this section   
diminishes any authority of a ,state or 
political subdivision of a ,state-- 7,a7
 to adopt or enforce any law 7including 
regulations7 respecting renewable       
energy1 including programs that exceed  
the required quantity of renewable      
energy under this section2 or  7,b7 to  
regulate the acquisition and disposition
 of ,federal renewable energy credits by
 retail electric suppliers4  7#b7       
,compliance with section ,no law or     
regulation referred to in paragraph     
7#a77;,a7 shall relieve any person of   
any requirement otherwise applicable    
under this section4  7#c7 ,coordination 
with ,state program ,the ,secretary1 in 
consultation with ,states that have in  
effect renewable energy programs1       
shall-- 7,a7 preserve the integrity of  
the ,state programs1 including programs 
that exceed the required quantity of    
renewable energy under this section2 and
  7,b7 facilitate coordination between  
the ,federal program and ,state         

programs4  7#d7 ,existing renewable     
energy programs ,in the regulations     
establishing the program under this     
section1 the ,secretary shall           
incorporate common elements of existing 
renewable energy programs1 including    
,state programs1 to ensure              
administrative ease1 market transparency
 and effective enforcement4  7#e7       
,minimization of administrative burdens 
and costs ,in carrying out this section1
 the ,secretary shall work with the     
,states to minimize administrative      
burdens and costs to retail electric    
suppliers4  7l7 ,recovery of costs ,an  
electric utility that has sales of      
electric energy that are subject to rate
 regulation 7including any utility with 
rates that are regulated by the         
,commission and any ,state regulated    
electric utility7 shall not be denied   
the opportunity to recover the full     
amount of the prudently incurred        
incremental cost of renewable energy    
obtained to comply with the requirements

 of subsection 7b74  7m7 ,program review
  7#a7 ,in general ,the ,secretary shall
 enter into an arrangement with the     
,national ,academy of ,sciences under   
which the ,academy shall conduct a      
comprehensive evaluation of all aspects 
of the program established under this   
section4  7#b7 ,evaluation ,the study   
shall include an evaluation of-- 7,a7   
the effectiveness of the program in     
increasing the market penetration and   
lowering the cost of the eligible       
renewable energy technologies2  7,b7 the
 opportunities for any additional       
technologies and sources of renewable   
energy emerging since the date of       
enactment of this section2  7,c7 the    
impact on the regional diversity and    
reliability of supply sources1 including
 the power quality benefits of          
distributed generation2  7,d7 the       
regional resource development relative  
to renewable potential and reasons for  
any investment in renewable resources2  
and  7,e7 the net cost_/benefit of the  

renewable electricity standard to the   
national and ,state economies1          
including-- 7i7 retail power costs2     
7ii7 the economic development benefits  
of investment2  7iii7 avoided costs     
related to environmental and congestion 
mitigation investments that would       
otherwise have been required2  7iv7 the 
impact on natural gas demand and price2 
and  7v7 the effectiveness of green     
marketing programs at reducing the cost 
of renewable resources4  7#c7 ,report   
,not later than ,january #a1 #bjah1 the 
,secretary shall transmit to ,congress a
 report describing the results of the   
evaluation and any recommendations for  
modifications and improvements to the   
program4  7n7 ,state renewable energy   
account  7#a7 ,in general ,there is     
established in the ,treasury a ,state   
renewable energy account4  7#b7         
,deposits ,all money collected by the   
,secretary from the alternative         
compliance payments under subsection 7h7
 shall be deposited into the ,state     

renewable energy account established    
under paragraph 7#a74  7#c7 ,grants     
7,a7 ,in general ,proceeds deposited in 
the ,state renewable energy account     
shall be used by the ,secretary1 subject
 to annual appropriations1 for a program
 to provide grants-- 7i7 to the ,state  
agency responsible for administering a  
fund to promote renewable energy        
generation for customers of the ,state  
or an alternative agency designated by  
the ,state2 or  7ii7 if no agency       
described in clause 7i71 to the ,state  
agency developing ,state energy         
conservation plans under section #cfb of
 the ,energy ,policy and ,conservation  
,act 7#db ,u4,s4,c4 #fcbb74  7,b7 ,use  
,the grants shall be used for the       
purpose of-- 7i7 promoting renewable    
energy production2 and  7ii7 providing  
energy assistance and weatherization    
services to low-income consumers4  7,c7 
,criteria ,the ,secretary may issue     
guidelines and criteria for grants      
awarded under this paragraph4  7,d7     

,state-approved funding mechanisms ,at  
least #ge percent of the funds provided 
to each ,state for each fiscal year     
shall be used to promote renewable      
energy production through grants1       
production incentives1 or other         
,state-approved funding mechanisms4     
7,e7 ,allocation ,the funds shall be    
allocated to the ,states on the basis of
 retail electric sales subject to the   
renewable electricity standard under    
this section or through voluntary       
participation4  7,f7 ,records ,state    
agencies receiving grants under this    
paragraph shall maintain such records   
and evidence of compliance as the       
,secretary may require4  4  7b7 ,table  
of contents amendment ,the table of     
contents of the ,public ,utility        
,regulatory ,policies ,act of #aigh 7#af
 ,u4,s4,c4 prec4 #bfja7 is amended by   
adding at the end of the items relating 
to title ,,vi the following3  ,sec4     
#fji4 ,rural and remote communities     
electrification grants4,sec4 #faj4      

,renewable electricity standard4  4