,,ii  #aac? ,,congress  #a/ ,session    
,s4 #afbg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,octob] #ca1 #bjac,mr4 
,m>key introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,en]gy & ,natural ,res\rces  ,a ,,bill  
,to am5d title ,,vi ( ! ,public ,utility
 ,regulatory ,policies ,act ( #aigh to  
e/abli% a ,f$]al r5ewable electricity   
/&>d = retail electricity suppli]s & a  
,f$]al en]gy effici5cy res\rce /&>d =   
electricity & natural gas suppli]s1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,am]ican ,r5ewable     
,en]gy & ,effici5cy ,act4  #b4 ,f$]al   
r5ewable electricity /&>d ,title ,,vi ( 
! ,public ,utility ,regulatory ,policies
 ,act ( #aigh 7#af ,u4,s4,c4 #bfja et   
seq47 is am5d$ by add+ aft] section #fji
 7#g ,u4,s4,c4 #iah;c7 ! foll[+3  #faj4 
,f$]al r5ewable electricity /&>d  7a7   
,f9d+s ,congress f9ds t-- 7#a7 #aah     
c\ntries h national goals = r5ewable    
electricity production & #cj ,/ates & ! 
,di/rict ( ,columbia h enact$ m&atory   

r5ewable electricity /&>ds2  7#b7 !     
,f$]al r5ewable electricity /&>d        
e/abli%$ by ?is section e/abli%es a     
m>ket-bas$ policy to create ongo+       
competition among r5ewable electricity  
g5]ators across ! ,unit$ ,/ates &       
provide ! greate/ quantity ( clean      
electricity = ! l[e/ price2 &  7#c7 !   
,unit$ ,/ates has va/ w9d1 sol>1        
hydrop[]1 biomass1 & geo!rmal res\rces  
t-- 7,a7 are r5ewable2  7,b7 are disp]s$
 widely across diff]5t regions ( !      
,unit$ ,/ates2 &  7,c7 c be h>ness$ to  
g5]ate a significant %>e ( electricity 9
 ! ,unit$ ,/ates4  7b7 ,def9itions ,9   
?is section3 7#a7 ,br[nfield site       
g5]ation facility ,! t]m br[nfield site 
g5]ation facility means a facility t--  
7,a7 g5]ates r5ewable electricity f a   
r5ewable en]gy res\rce2 &  7,b7 occupies
 a br[nfield site 7z t t]m is def9$ 9   
section #aja ( ! ,compreh5sive          
,environm5tal ,response1 ,comp5sation1 &
 ,liability ,act ( #aihj 7#db ,u4,s4,c4 
#ifja774  7#b7 ,di/ribut$ r5ewable      

g5]ation facility ,! t]m di/ribut$      
r5ewable g5]ation facility means a      
facility t-- 7,a7 g5]ates r5ewable      
electricity2  7,b7 prim>ily s]ves "o or 
m electricity consum]s at or ne> !      
facility site2 &  7,c7 has n m ?an #b   
megawatts 9 capacity4  7#c7 ,f$]al      
r5ewable electricity cr$it ,! t]m ,f$]al
 r5ewable electricity cr$it means a     
cr$it1 repres5t+ #a megawatt h\r (      
r5ewable electricity1 issu$ pursuant to 
subsection 7f74  7#d7 ,indian l& ,! t]m 
,indian l& means-- 7,a7 any l& )9 !     
limits ( any ,indian res]vation1 pueblo1
 or ran*]ia2  7,b7 any l& n )9 ! limits 
( any ,indian res]vation1 pueblo1 or    
ran*]ia1 title to :i* 0 on ! date (     
enactm5t ( ?is section held by-- 7i7 !  
,unit$ ,/ates = ! b5efit ( any ,indian  
tribe or individual2 or  7ii7 any       
,indian tribe or individual subject to  
re/riction by ! ,unit$ ,/ates aga9/     
ali5ation2  7,c7 any dep5d5t ,indian    
community2 or  7,d7 any l& convey$ "u ! 
,alaska ,native ,claims ,settlem5t ,act 

7#dc ,u4,s4,c4 #afja et seq47 to any    
,native ,corporation 7z t t]m is def9$ 9
 section #c ( t ,act 7#dc ,u4,s4,c4     
#afjb774  7#e7 ,indian tribe ,! t]m     
,indian tribe means any ,indian tribe1  
b&1 nation1 or o!r organiz$ gr\p or     
community 7includ+ any ,native village1 
,regional ,corporation1 or ,village     
,corporation 7z ^? t]ms are def9$ 9     
section #c ( ! ,alaska ,native ,claims  
,settlem5t ,act 7#dc ,u4,s4,c4 #afjb77 t
 is recogniz$ z eligible = ! special    
programs & s]vices provid$ by ! ,unit$  
,/ates to ,indians because ( _! /atus z 
,indians4  7#f7 ,qualifi$ hydrop[] ,!   
t]m qualifi$ hydrop[] means-- 7,a7 en]gy
 produc$ f increas$ effici5cy a*iev$1 or
 additions ( capacity made1 on or aft]  
,janu>y #a1 #bjja1 at a hydroelectric   
facility t-- 7i7 0 plac$ 9 s]vice be=e t
 date2 &  7ii7 does n include additional
 en]gy g5]at$ z a result ( op]ational   
*anges n directly associat$ ) effici5cy 
improvem5ts or capacity additions2 or   
7,b7 en]gy produc$ f g5]at+ capacity    

add$ to a dam on or aft] ,janu>y #a1    
#bjja1 if ! ,commission c]tifies t-- 7i7
 ! dam-- 7,i7 0 plac$ 9 s]vice be=e !   
date ( enactm5t ( ?is section2  7,,ii7 0
 op]at$ = flood control1 navigation1 or 
wat] supply purposes2 &  7,,iii7 0 n    
produc+ hydroelectric p[] prior to !    
addition ( ! capacity2  7ii7 !          
hydroelectric project in/all$ on ! dam--
 7,i7 is lic5s$ or is exempt f lic5s+ by
 ! ,commission2  7,,ii7 is 9 compliance 
)-- 7aa7 ! t]ms & conditions ( ! lic5se 
or exemption2 &  7bb7 o!r applicable    
legal requirem5ts = ! protection (      
environm5tal quality1 includ+ applicable
 fi% passage requirem5ts2 &  7,,iii7 is 
op]at$ s t ! wat] surface elevation at  
any giv5 location & "t t w\ld h occurr$ 
9 ! abs5ce ( ! hydroelectric project is 
ma9ta9$1 subject to any lic5se or       
exemption requirem5ts t require *anges 9
 wat] surface elevation = ! purpose (   
improv+ ! environm5tal quality ( !      
affect$ wat]way4  7#g7 ,qualifi$        
r5ewable biomass ,! t]m qualifi$        

r5ewable biomass means r5ewable biomass 
t1 :5 combu/$1 yields1 on a             
weight$-av]age basis1 a #ej-p]c5t       
r$uction 9 lifecycle gre5h\se gas       
emissions 7z def9$ 9 section #d7;a7 ( ! 
,am]ican ,r5ewable ,en]gy & ,effici5cy  
,act7 p] unit ( useful en]gy1 z comp>$  
to ! op]ation ( a comb9$ cycle natural  
gas electric g5]at+ facility us+ ! mo/  
effici5t comm]cially available          
te*nology1 :5 calculat$ ov] a #bj-ye>   
life cycle4  7#h7 ,r5ewable biomass ,!  
t]m r5ewable biomass means-- 7,a7 crops1
 crop byproducts1 or crop residues      
h>ve/$ f actively manag$ or fall[       
agricultural l& t is-- 7i7 non=e/$2 &   
7ii7 cle>$ prior to ! date ( enactm5t ( 
?is section2  7,b7 plant$ trees1 bru%1  
sla%1 & all residues f an actively      
manag$ tree f>m locat$ on non-,f$]al l& 
cle>$ prior to ! date ( enactm5t ( ?is  
section2  7,c7 precomm]cial-siz$ ?9n+s1 
sla%1 bru%1 & residue f mill$ trees1 f  
=e/$ l& t is n-- 7i7 old-gr[? or mature 
=e/2  7ii7 id5tifi$ "u a ,/ate natural  

h]itage program z r>e1 imp]il$1 or      
critically imp]il$2 or  7iii7 ,f$]al l&2
  7,d7 algae2  7,e7 nonhaz>d\s plant    
matt] d]iv$ f wa/e-- 7i7 includ+ sep>at$
 y>d wa/e1 l&scape "r-(-way trimm+s1 or 
food wa/e2 b  7ii7 n includ+ municipal  
solid wa/e1 recyclable wa/e pap]1 pa9t$1
 treat$ or pressuriz$ wood1 or wood     
contam9at$ ) pla/ic or metals2  7,f7    
animal wa/e or animal byproducts1       
includ+ products ( animal wa/e dige/]s2 
7,g7 vegetative matt] remov$ f )9 #bjj  
y>ds ( any manmade /ructure or          
campgr\nd2 &  7,h7 sla% &               
precomm]cial-siz$ ?9n+s h>ve/$-- 7i7 9  
environm5tally su/a9able quantities1 z  
det]m9$ by ! appropriate ,f$]al l&      
manag]2 &  7ii7 f ,national ,=e/ ,sy/em 
l& or public l&s 7z def9$ 9 section #ajc
 ( ! ,f$]al ,l& ,policy & ,managem5t    
,act ( #aigf 7#dc ,u4,s4,c4 #agjb771 o!r
 ?an-- 7,i7 compon5ts ( ! ,national     
,wild]ness ,pres]vation ,sy/em e/abli%$ 
"u ! ,wild]ness ,act 7#af ,u4,s4,c4     
#aaca et seq472  7,,ii7 ,wild]ness ,/udy

 ,areas1 z id5tifi$ by ! ,bureau ( ,l&  
,managem5t2  7,,iii7 inv5tori$ roadless 
areas & all unroad$ areas ( at lea/     
#e1jjj acres2  7,,iv7 old gr[? & late   
s]al /&s2  7,v7 compon5ts ( ! ,national 
,l&scape ,cons]vation ,sy/em adm9i/]$ by
 ! ,bureau ( ,l& ,managem5t2 &  7,,vi7  
national monum5ts4  7#i7 ,r5ewable      
electricity ,! t]m r5ewable electricity 
means electricity g5]at$ 7includ+ by    
means ( a fuel cell7 f a r5ewable en]gy 
res\rce4  7#aj7 ,r5ewable en]gy res\rce 
,! t]m r5ewable en]gy res\rce means ea* 
( ! foll[+3 7,a7 ,w9d en]gy4  7,b7 ,sol>
 en]gy4  7,c7 ,geo!rmal en]gy4  7,d7    
,qualifi$ r5ewable biomass4  7,e7       
,biogas d]iv$ f qualifi$ r5ewable       
biomass4  7,f7 ,bi(uels d]iv$ f qualifi$
 r5ewable biomass4  7,g7 ,qualifi$      
hydrop[]4  7,h7 ,m>9e & hydrok9etic     
r5ewable en]gy 7z def9$ 9 section #fcb (
 ! ,en]gy ,indep5d5ce & ,security ,act (
 #bjjg 7#db ,u4,s4,c4 #agbaa774  7,i7   
,l&fill gas4  7#aa7 ,retail electric    
suppli]  7,a7 ,9 g5]al ,! t]m retail    

electric suppli] means1 = any cal5d>    
ye>1 an electric utility t sells n few] 
?an #a1jjj1jjj megawatt h\rs ( electric 
en]gy to electric consum]s = purposes   
o!r ?an resale dur+ ! prec$+ cal5d> ye>4
  7,b7 ,inclusions & limitations ,=     
purposes ( det]m9+ :e!r an electric     
utility qualifies z a retail electric   
suppli] "u subp>agraph 7,a7-- 7i7 !     
sales made by any affiliate ( ! electric
 utility to electric consum]s1 o!r ?an  
sales to lessees or t5ants ( !          
affiliate1 = purposes o!r ?an resale    
%all be consid]$ to be sales made by !  
electric utility2 &  7ii7 sales made by 
! electric utility to an affiliate1     
lessee1 or t5ant ( ! electric utility   
%all n be treat$ z sales to electric    
consum]s4  7,c7 ,affiliate ,9 ?is       
p>agraph1 ! t]m affiliate :5 us$ 9      
relation to a p]son1 means ano!r p]son t
 directly or indirectly owns or         
controls1 is own$ or controll$ by1 or is
 "u common own]%ip or control )1 t      
p]son1 z det]m9$ "u regulations         

promulgat$ by ! ,commission4  7#ab7     
,retail electric suppli]'s base quantity
 ,! t]m retail electric suppli]'s base  
quantity means ! total quantity (       
electric en]gy sold by ! retail electric
 suppli]1 express$ 9 megawatt h\rs1 to  
electric cu/om]s = purposes o!r ?an     
resale dur+ ! relevant cal5d> ye>1      
exclud+-- 7,a7 electricity g5]at$ by a  
hydroelectric facility1 o!r ?an qualifi$
 hydrop[]2 &  7,b7 electricity g5]at$ by
 ! combu/ion ( municipal solid wa/e4    
7#ac7 ,retire & retirem5t ,! t]ms retire
 & retirem5t ) respect to a ,f$]al      
r5ewable electricity cr$it1 means to    
disqualify ! cr$it = any subsequ5t use  
"u ?is section1 reg>dless ( :e!r ! use  
is a sale1 transf]1 ex*ange1 or         
submission 9 satisfaction ( a compliance
 obligation4  7c7 ,annual compliance    
obligation ,except z o!rwise provid$ 9  
subsection 7g71 = ea* ( cal5d> ye>s     
#bjae ?r\gh #bjdj1 n lat] ?an ,m>* #ca (
 ! foll[+ cal5d> ye>1 ea* retail        
electric suppli] %all submit to !       

,commission a quantity ( ,f$]al r5ewable
 electricity cr$its t is equal to at    
lea/ ! annual t>get ( ! retail electric 
suppli] "u subsection 7e74  7d7         
,e/abli%m5t ( program  7#a7 ,9 g5]al ,n 
lat] ?an #a ye> aft] ! date ( enactm5t (
 ?is section1 ! ,commission %all        
promulgate regulations to implem5t &    
en=ce ! requirem5ts ( ?is section4  7#b7
 ,consid]ations ,9 promulgat+           
regulations "u p>agraph 7#a71 !         
,commission %all1 to ! maximum ext5t    
practicable-- 7,a7 pres]ve ! integrity &
 incorporate be/ practices ( exi/+ ,/ate
 & tribal r5ewable electricity programs2
  7,b7 rely on exi/+ & em]g+ ,/ate1     
tribal1 or regional track+ sy/ems t     
issue & track non-,f$]al r5ewable       
electricity cr$its2 &  7,c7 coop]ate )  
,/ates & ,indian tribes-- 7i7 to        
facilitate coord9ation betwe5 ,/ate1    
tribal1 & ,f$]al r5ewable electricity   
programs2 &  7ii7 to m9imize            
adm9i/rative burd5s & co/s to retail    
electric suppli]s4  7e7 ,annual         

compliance requirem5t  7#a7 ,annual     
t>gets ,= ea* ( cal5d> ye>s #bjae ?r\gh 
#bjdj1 ! annual t>get ( a retail        
electric suppli] %all be equal to !     
product obta9$ by multiply+-- 7,a7 !    
requir$ annual p]c5tage = t cal5d> ye>  
"u p>agraph 7#b72 &  7,b7 ! retail      
electric suppli]'s base quantity = t    
cal5d> ye>4  7#b7 ,requir$ annual       
p]c5tage  7,a7 ,cal5d> ye>s #bjae ?r\gh 
#bjdj ,subject to subp>agraph 7,b71 =   
ea* ( cal5d> ye>s #bjae ?r\gh #bjdj1 !  
requir$ annual p]c5tage %all be z       
foll[s3 ,requir$                        
annual,year3p]c5tage3#bjaefbjafgbjagibja
haabjaiacbjbjaebjbaagbjbbaibjbcbabjbdbcb
jbe-bjdjbe4  7,b7 ,increase au?oriz$ =  
cal5d> ye>s #bjbf ?r\gh #bjdj ,!        
,commission may issue ord]s increas+ !  
requir$ annual p]c5tage am\nts = ea* (  
cal5d> ye>s #bjbf ?r\gh #bjdj to reflect
 ! maximum a*ievable level ( r5ewable   
electricity g5]ation pot5tial1 tak+ into
 acc\nt regional res\rce availability1  
economic feasibility1 & te*nological    

capability4  7f7 ,f$]al r5ewable        
electricity cr$its  7#a7 ,9 g5]al  7,a7 
,issuance2 track+2 v]ification ,!       
regulations promulgat$ "u ?is section   
%all include provisions gov]n+ !        
issuance1 track+1 & v]ification ( ,f$]al
 r5ewable electricity cr$its4  7,b7     
,cr$it ratio ,except z provid$ 9        
p>agraphs 7#b7 ?r\gh 7#d71 ! ,commission
 %all issue to ea* g5]ator ( r5ewable   
electricity1 #a ,f$]al r5ewable         
electricity cr$it = ea* megawatt h\r (  
r5ewable electricity g5]at$ by ! g5]ator
 aft] ,decemb] #ca1 #bjad4  7,c7 ,s]ial 
numb] ,! ,commission %all assign a      
unique s]ial numb] to ea* ,f$]al        
r5ewable electricity cr$it4  7#b7       
,g5]ation f c]ta9 ,/ate r5ewable        
electricity programs  7,a7 ,9 g5]al ,if 
r5ewable electricity is g5]at$ ) !      
support ( paym5ts f a retail electric   
suppli] pursuant to a ,/ate r5ewable    
electricity program 7:e!r ?r\gh ,/ate   
alt]native compliance paym5ts or ?r\gh  
paym5ts to a ,/ate r5ewable electricity 

procurem5t fund or entity71 !           
,commission %all issue ,f$]al r5ewable  
electricity cr$its to ! retail electric 
suppli] = ! portion ( ! relevant        
r5ewable electricity g5]ation t is      
attributable to paym5ts made by ! retail
 electric suppli]1 z det]m9$ pursuant to
 regulations promulgat$ by !            
,commission4  7,b7 ,rema9+ portion ,=   
any rema9+ portion ( ! relevant r5ewable
 electricity g5]ation1 ! ,commission    
%all issue ,f$]al r5ewable electricity  
cr$its to ! g5]ator1 z provid$ 9        
p>agraph 7#a71 except t n m ?an #a      
,f$]al r5ewable electricity cr$it %all  
be issu$ = ! same megawatt h\r (        
electricity4  7,c7 ,/ate guidance ,9    
det]m9+ h[ ,f$]al r5ewable electricity  
cr$its w be apportion$ among retail     
electric suppli]s & g5]ators "u ?is     
p>agraph1 ! ,commission %all consid]    
in=mation & guidance issu$ by !         
applicable "o or m ,/ates4  7#c7 ,c]ta9 
p[] sales contracts ,except z o!rwise   
provid$ 9 p>agraph 7#b71 if a g5]ator   

has sold r5ewable electricity to a      
retail electric suppli] "u a contract = 
p[] f a facility plac$ 9 s]vice be=e !  
date ( enactm5t ( ?is section1 & !      
contract does n provide = ! det]m9ation 
( own]%ip ( ! ,f$]al r5ewable           
electricity cr$its associat$ ) !        
g5]ation1 ! ,commission %all issue !    
,f$]al r5ewable electricity cr$its to ! 
retail electric suppli] = ! duration ( !
 contract4  7#d7 ,cr$it multipli]s  7,a7
 ,9 g5]al ,except z provid$ 9           
subp>agraph 7,b71 ! ,commission %all    
issue-- 7i7 n m ?an #c ,f$]al r5ewable  
electricity cr$its = ea* megawatt h\r ( 
r5ewable electricity g5]at$ by a        
di/ribut$ r5ewable g5]ation facility2   
7ii7 n m ?an #b ,f$]al r5ewable         
electricity cr$its = ea* megawatt h\r ( 
r5ewable electricity g5]at$ on ,indian  
l&2 &  7iii7 n m ?an #b ,f$]al r5ewable 
electricity cr$its = ea* megawatt h\r ( 
r5ewable electricity g5]at$ by a        
br[nfield site g5]ation facility4  7,b7 
,adju/m5t ,except z provid$ 9           

subp>agraph 7,c71 n lat] ?an ,janu>y #a1
 #bjag1 & n less frequ5tly ?an e #d ye>s
 !reaft]1 ! ,commission %all review !   
effect ( ?is p>agraph on ! aggregate    
quantity ( r5ewable electricity produc$ 
"u ! /&>d & %all1 z necess>y & aft]     
provid+ #a ye> ( notice1 r$uce ! numb] (
 ,f$]al r5ewable electricity cr$its p]  
megawatt h\r issu$ "u ?is p>agraph = any
 giv5 en]gy s\rce or facility1 b n bel[ 
"o1 to ensure t ! numb] is no high] ?an 
! ,commission det]m9es is necess>y-- 7i7
 to inc5tivize increm5tal r5ewable en]gy
 g5]ation on ,indian l& & br[nfield     
sites2 &  7ii7 to make di/ribut$        
r5ewable g5]ation facilities co/        
competitive ) o!r s\rces ( r5ewable     
electricity g5]ation4  7,c7 ,facilities 
plac$ 9 s]vice aft] enactm5t  7i7 ,9    
g5]al ,= any r5ewable g5]ation facility 
plac$ 9 s]vice aft] ! date ( enactm5t ( 
?is section1 subp>agraph 7,b7 %all n    
apply = ! fir/ #aj ye>s aft] ! date on  
:i* ! facility is plac$ 9 s]vice4  7ii7 
,initial p]iod ,= ea* ye> dur+ ! #aj-ye>

 p]iod describ$ 9 clause 7i71 !         
,commission %all issue to ! facility !  
same numb] ( ,f$]al r5ewable electricity
 cr$its p] megawatt h\r z are issu$ to t
 facility 9 ! ye> 9 :i* ! facility is   
plac$ 9 s]vice4  7iii7 ,subsequ5t p]iod 
,aft] ! #aj-ye> p]iod describ$ 9 clause 
7i71 ! ,commission %all issue ,f$]al    
r5ewable electricity cr$its to !        
facility 9 accordance ) subp>agraph     
7,b74  7#e7 ,cr$its bas$ on qualifi$    
hydrop[] ,= purposes ( ?is subsection1 !
 numb] ( ,f$]al r5ewable electricity    
cr$its issu$ = qualifi$ hydrop[] %all be
 calculat$-- 7,a7 bas$ solely on !      
increase 9 av]age annual g5]ation       
directly result+ f ! effici5cy          
improvem5ts or capacity additions       
describ$ 9 subsection 7a77#f77;,a72 &   
7,b7 us+ ! same wat] fl[ in=mation us$  
to det]m9e a hi/oric av]age annual      
g5]ation basel9e = ! hydroelectric      
facility1 z c]tifi$ by ! ,commission4   
7#f7 ,g5]ation f mix$ r5ewable &        
nonr5ewable res\rces ,if electricity is 

g5]at$ us+ bo? a r5ewable en]gy res\rce 
& an en]gy s\rce t is n a r5ewable en]gy
 res\rce 7su* z c(ir+ ( r5ewable biomass
 & fossil fuel71 ! ,commission %all     
issue ,f$]al r5ewable electricity cr$its
 bas$ on ! proportion ( ! electricity t 
is attributable to ! r5ewable en]gy     
res\rce4  7#g7 ,prohibition aga9/       
d\ble-c\nt+ ,! ,commission %all ensure  
t-- 7,a7 no ,f$]al r5ewable electricity 
cr$it is us$ m ?an once = compliance )  
?is section2 &  7,b7 except z provid$ 9 
p>agraph 7#d71 n m ?an #a ,f$]al        
r5ewable electricity cr$it is issu$ =   
any megawatt h\r ( r5ewable electricity4
  7#h7 ,trad+ ,! lawful hold] ( a ,f$]al
 r5ewable electricity cr$it may-- 7,a7  
sell1 ex*ange1 or transf] ! cr$it2  7,b7
 submit ! cr$it = compliance "u         
subsection 7c72 or  7,c7 submit ! cr$it 
= retirem5t by ! ,commission4  7#i7     
,bank+  7,a7 ,9 g5]al ,a ,f$]al r5ewable
 electricity cr$it may be submitt$ 9    
satisfaction ( ! compliance obligation  
"u subsection 7c7 = ! compliance ye> 9  

:i* ! cr$it 0 issu$ or = any ( ! #c     
imm$iately subsequ5t compliance ye>s4   
7,b7 ,retirem5t ,! ,commission %all     
retire any ,f$]al r5ewable electricity  
cr$it t has n be5 retir$ by ,april #b ( 
! cal5d> ye> t is #c ye>s aft] ! cal5d> 
ye> dur+ :i* ! cr$it 0 issu$4  7#aj7    
,retirem5t ,! ,commission %all retire a 
,f$]al r5ewable electricity cr$it       
imm$iately ^u submission by ! lawful    
hold] ( ! cr$it1 :e!r 9 satisfaction ( a
 compliance obligation "u subsection 7c7
 or = ano!r reason4  7g7 ,alt]native    
compliance paym5ts  7#a7 ,9 g5]al ,a    
retail electric suppli] may satisfy !   
requirem5ts ( subsection 7c7 9 :ole or 9
 "p by submitt+ 9 accordance ) ?is      
subsection1 9 lieu ( ea* ,f$]al r5ewable
 electricity cr$it t w\ld o!rwise be    
due1 a paym5t equal to #ej1 adju/$ =    
inflation on ,janu>y #a ( ea* ye> foll[+
 cal5d> ye> #bjae1 9 accordance )       
regulations promulgat$ by ! ,commission4
  7#b7 ,paym5t to ,/ate funds  7,a7 ,9  
g5]al ,except z o!rwise provid$ 9 ?is   

p>agraph1 paym5ts made "u ?is subsection
 %all be made directly to "o or m ,/ates
 9 :i* ! retail electric suppli] sells  
electric en]gy1 9 proportion to !       
portion ( ! retail electric suppli]'s   
base quantity t is sold )9 ea*          
applicable ,/ate1 if-- 7i7 ! paym5ts are
 deposit$ directly into a fund ( ! ,/ate
 treasury e/abli%$ = t purpose2 &  7ii7 
! ,/ate uses ! funds 9 accordance )     
p>agraphs 7#c7 & 7#d74  7,b7            
,noncompliance ,if ! ,commission        
det]m9es t a ,/ate is 9 sub/antial      
noncompliance ) p>agraph 7#c7 or 7#d71 !
 ,commission %all direct t any future   
alt]native compliance paym5ts t w\ld    
o!rwise be paid to ! ,/ate "u ?is       
subsection %all in/ead be paid to !     
,commission & deposit$ 9 ! ,treasury4   
7#c7 ,/ate use ( funds ,z a condition ( 
receipt ( alt]native compliance paym5ts 
"u ?is subsection1 a ,/ate %all use !   
paym5ts exclusively =-- 7,a7 deploy+    
te*nologies t g5]ate electricity f      
r5ewable en]gy res\rces2 or  7,b7       

implem5t+ co/-effective en]gy effici5cy 
programs to a*ieve electricity sav+s4   
7#d7 ,report+  7,a7 ,9 g5]al ,z a       
condition ( receipt ( alt]native        
compliance paym5ts pursuant to ?is      
subsection1 a ,/ate %all submit to !    
,commission an annual report1 9         
accordance ) regulations promulgat$ by !
 ,commission1 conta9+ a full acc\nt+ ( !
 use ( ! paym5ts1 includ+ a detail$     
description ( ! activities fund$ by !   
paym5ts & demon/rat+ compliance ) !     
requirem5ts ( ?is subsection4  7,b7     
,deadl9e ,a ,/ate %all submit a report  
"u ?is p>agraph-- 7i7 n lat] ?an #a ye> 
aft] ! date on :i* ! fir/ alt]native    
compliance paym5t is receiv$2 &  7ii7 e 
#a ye> !reaft] until all alt]native     
compliance paym5ts are exp5d$4  7h7     
,in=mation collection  7#a7 ,9 g5]al ,! 
,commission may require any retail      
electric suppli]1 r5ewable electricity  
g5]ator1 or any o!r entity t !          
,commission det]m9es appropriate1 to    
provide any in=mation ! ,commission     

det]m9es appropriate to c>ry out ?is    
section4  7#b7 ,failure to submit2 false
 or mislead+ in=mation ,any entity      
requir$ to submit in=mation "u p>agraph 
7#a7 t fails to submit ! in=mation or   
submits false or mislead+ in=mation %all
 be 9 violation ( ?is section4  7i7     
,en=cem5t & judicial review  7#a7       
,failure to submit cr$its ,if any p]son 
fails to comply ) ! requirem5ts (       
subsection 7c7 or 7g71 ! p]son %all be  
liable to pay to ! ,commission a civil  
p5alty equal to ! product obta9$ by     
multiply+-- 7,a7 d\ble ! alt]native     
compliance paym5t calculat$ "u          
subsection 7g77#a72 &  7,b7 ! aggregate 
quantity ( ,f$]al r5ewable electricity  
cr$its or equival5t alt]native          
compliance paym5ts t ! p]son fail$ to   
submit 9 violation ( ! requirem5ts (    
subsections 7c7 & 7g74  7#b7 ,en=cem5t  
,! ,commission %all assess a civil      
p5alty "u p>agraph 7#a7 9 accordance ) !
 proc$ures describ$ 9 section #ca7;d7 ( 
! ,f$]al ,p[] ,act 7#af ,u4,s4,c4       

#hbc;b7d774  7#c7 ,violation (          
requirem5t ( regulations or ord]s  7,a7 
,9 g5]al ,any p]son :o violates or fails
 or refuses to comply ) any requirem5t (
 a regulation promulgat$ or ord] issu$  
"u ?is section %all be subject to a     
civil p5alty "u section #caf;,a7b7 ( !  
,f$]al ,p[] ,act 7#af ,u4,s4,c4         
#hbeo-#a7;b774  7,b7 ,assessm5t ,!      
p5alty "u subp>agraph 7,a7 %all be      
assess$ by ! ,commission 9 ! same mann] 
z 9 ! case ( a violation ref]r$ to 9    
section #caf;,a7b7 ( t ,act4  7#d7      
,judicial review  7,a7 ,9 g5]al ,any    
p]son aggriev$ by a f9al action tak5 by 
! ,commission "u ?is section1 o!r ?an ! 
assessm5t ( a civil p5alty "u p>agraphs 
7#a7 ?r\gh 7#c71 may use ! proc$ures =  
review describ$ 9 section #cac ( !      
,f$]al ,p[] ,act 7#af ,u4,s4,c4 #hbel74 
7,b7 ,ref]5ce ,= purposes ( ?is         
p>agraph1 ref]5ces to an ord] 9 section 
#cac ( t ,act %all be consid]$ to ref]  
also to all o!r f9al actions ( !        
,commission "u ?is section o!r ?an !    

assessm5t ( a civil p5alty "u p>agraphs 
7#a7 ?r\gh 7#c74  7j7 ,adm9i/ration     
,no?+ 9 ?is section-- 7#a7 dim9i%es or  
qualifies any au?ority ( a ,/ate1 a     
political subdivision ( a ,/ate1 or an  
,indian tribe-- 7,a7 to adopt or en=ce  
any law or regulation respect+ r5ewable 
electricity1 includ+ any law or         
regulation e/abli%+ requirem5ts t are m 
/r+5t ?an ^? e/abli%$ by ?is section1   
provid$ t no su* law or regulation may  
relieve any p]son ( any requirem5t      
o!rwise applicable "u ?is section2 or   
7,b7 to regulate ! acquisition &        
disposition ( ,f$]al r5ewable           
electricity cr$its by retail electric   
suppli]s )9 ! jurisdiction ( ! ,/ate1   
political subdivision1 or ,indian tribe1
 includ+ ! au?ority to require ! retail 
electric suppli] to acquire & submit to 
! ,commission = retirem5t ,f$]al        
r5ewable electricity cr$its 9 excess (  
^? submitt$ "u ?is section2 or  7#b7    
affects ! application ( or !            
responsibility = compliance ) any o!r   

provision ( law or regulation1 includ+  
environm5tal & lic5s+ requirem5ts4  7k7 
,sunset ,! au?ority provid$ by ?is      
section expires on ,decemb] #ca1 #bjda4 
4  #c4 ,cl>ify+ /ate au?ority to adopt  
r5ewable en]gy inc5tives ,section #baj (
 ! ,public ,utility ,regulatory         
,policies ,act ( #aigh 7#af ,u4,s4,c4   
#hbd;a-#c7 is am5d$ by add+ at ! end !  
foll[+3  7o7 ,cl>ification ( ,/ate      
au?ority ,to adopt r5ewable en]gy       
inc5tives  7#a7 ,def9ition (            
,/ate-approv$ production inc5tive       
program ,9 ?is subsection1 ! t]m        
,/ate-approv$ production inc5tive       
program means a requirem5t impos$       
pursuant to ,/ate law or by a ,/ate     
regulatory au?ority act+ )9 its au?ority
 "u ,/ate law t an electric utility     
pur*ase r5ewable en]gy 7z def9$ 9       
section #fji7;a77 at a specifi$ rate4   
7#b7 ,/ate au?ority to adopt r5ewable   
en]gy inc5tives ,not)/&+ any o!r        
provision ( ?is ,act or ! ,f$]al ,p[]   
,act 7#af ,u4,s4,c4 #gia;a et seq471 a  

,/ate legislature or regulatory au?ority
 may set ! rates = a sale ( electric    
en]gy by a facility g5]at+ electric     
en]gy f r5ewable en]gy s\rces pursuant  
to a ,/ate-approv$ production inc5tive  
program "u :i* ! facility volunt>ily    
p>ticipates 9 ! ,/ate-approv$ production
 inc5tive program4  4  #d4 ,guidel9es = 
det]m9+ qualifi$ r5ewable biomass  7a7  
,def9itions ,9 ?is section3 7#a7        
,adm9i/rator ,! t]m ,adm9i/rator means !
 ,adm9i/rator ( ! ,environm5tal         
,protection ,ag5cy4  7#b7 ,lifecycle    
gre5h\se gas emissions  7,a7 ,9 g5]al ,!
 t]m lifecycle gre5h\se gas emissions   
means ! aggregate quantity ( gre5h\se   
gas emissions1 adju/$ to acc\nt = !     
relative global w>m+ pot5tial ( !       
emissions relative to all gre5h\se gas  
emissions4  7,b7 ,inclusions ,= purposes
 ( subp>agraph 7,a71 ! t]m gre5h\se gas 
emissions includes-- 7i7 direct         
emissions2 &  7ii7 significant indirect 
emissions1 includ+ f-- 7,i7 l& use      
*anges & temporal *anges 9 =e/ c>bon    

seque/ration2  7,,ii7 biomass h>ve/s1   
regr[?1 & avoid$ decomposition relat$ to
 ! full fuel lifecycle1 includ+ all     
/ages ( fuel & fe$/ock production &     
di/ribution2 &  7,,iii7 fe$/ock g5]ation
 or extraction ?r\gh ! di/ribution &    
deliv]y ( ! f9i%$ fuel to ! ultimate    
consum]4  7b7 ,guidel9es ,n lat] ?an #a 
ye> aft] ! date ( enactm5t ( ?is ,act1 !
 ,adm9i/rator %all1 recogniz+ !         
recomm5dations ( & coord9at+ ) !        
,sci5tific ,advisory ,bo>d ( !          
,environm5tal ,protection ,ag5cy reg>d+ 
! acc\nt+ ( biog5ic c>bon dioxide       
emissions & aft] notice & public comm5t1
 issue guidel9es = calculat+ lifecycle  
gre5h\se gas emissions = r5ewable       
biomass 7z t t]m is def9$ 9 section     
#faj7;a7 ( ! ,public ,utility           
,regulatory ,policies ,act ( #aigh74    
#e4 ,en]gy effici5cy res\rce /&>d =     
retail electricity & natural gas        
suppli]s  7a7 ,9 g5]al ,title ,,vi ( !  
,public ,utility ,regulatory ,policies  
,act ( #aigh 7#af ,u4,s4,c4 #bfja et    

seq47 7z am5d$ by section #b7 is am5d$  
by add+ aft] section #faj ! foll[+3     
#faa4 ,f$]al en]gy effici5cy res\rce    
/&>d = retail electricity & natural gas 
suppli]s  7a7 ,f9d+s ,congress f9ds t-- 
7#a7 ! ,f$]al en]gy effici5cy res\rce   
/&>d e/abli%$ by ?is section-- 7,a7     
e/abli%es nationwide m9imum levels (    
electricity & natural gas sav+s to be   
a*iev$ ?r\gh utility effici5cy programs1
 build+ en]gy codes1 appliance /&>ds1 & 
relat$ effici5cy measures2 &  7,b7      
rew>ds en]gy-sav+ improvem5ts a*iev$    
?r\gh-- 7i7 end-use en]gy effici5cy     
upgrades2  7ii7 r$uc$ losses 9          
transmission & di/ribution ( en]gy2 &   
7iii7 fuel-swit*+1 to ! ext5t t ! swit*+
 results 9 r$uc$ prim>y en]gy use2 &    
7#b7 9 light ( ! co/-effective en]gy    
effici5cy opportunities t exi/ across ! 
,unit$ ,/ates 9 e sector ( ! economy1   
retail electricity suppli]s1 retail     
natural gas suppli]s1 & ,/ates %\ld--   
7,a7 consid] en]gy effici5cy z a res\rce
 9 utility plann+ & procurem5t          

activities2 &  7,b7 seek to a*ieve all  
en]gy effici5cy t is available at l[]   
co/ ?an o!r en]gy supply options4  7b7  
,def9itions ,9 ?is section3 7#a7        
,affiliate ,! t]m affiliate :5 us$ 9    
relation to a p]son1 means ano!r p]son t
 owns or controls1 is own$ or controll$ 
by1 or is "u common own]%ip control )1 t
 p]son1 z det]m9$ "u regulations        
promulgat$ by ! ,secret>y4  7#b7        
,,a%rae1 ansi1 & iesna ,! t]ms ,,a%rae1 
,,ansi1 & ,,iesna mean ! ,am]ican       
,society ( ,heat+1 ,refrig]at+ & ,air   
,condition+ ,eng9e]s1 ! ,am]ican        
,national ,/&>ds ,in/itute1 & !         
,illum9at+ ,eng9e]+ ,society ( ,nor?    
,am]ica1 respectively4  7#c7 ,base      
quantity  7,a7 ,9 g5]al ,! t]m base     
quantity1 ) respect to a retail         
electricity suppli] or retail natural   
gas suppli]1 means1 = ea* cal5d> ye> =  
:i* a p]=mance /&>d is e/abli%$ "u      
subsection 7d71 ! av]age annual quantity
 ( electricity or natural gas deliv]$ by
 ! retail electricity suppli] or retail 

natural gas suppli] to retail cu/om]s   
dur+ ! #c cal5d> ye>s imm$iately prec$+ 
! fir/ ye> t compliance is requir$ "u   
subsection 7d77#a74  7,b7 ,exclusion ,! 
t]m base quantity1 ) respect to a retail
 natural gas suppli]1 does n include    
natural gas deliv]$ = purposes (        
electricity g5]ation4  7#d7 ,,*p sav+s  
,! t]m ,,*p sav+s means-- 7,a7 ,,*p     
sy/em sav+s f a comb9$ heat & p[] sy/em 
t comm5ces op]ation aft] ! date (       
enactm5t ( ?is section2 &  7,b7 !       
increase 9 ,,*p sy/em sav+s f upgrad+ or
 replac+1 aft] ! date ( enactm5t ( ?is  
section1 a comb9$ heat & p[] sy/em t    
comm5c$ op]ation on or be=e ! date (    
enactm5t ( ?is section4  7#e7 ,,*p sy/em
 sav+s ,! t]m ,,*p sy/em sav+s means !  
electric output1 & ! electricity sav$   
due to ! me*anical output1 ( a comb9$   
heat & p[] sy/em1 adju/$ to reflect any 
increase 9 fuel consumption by t sy/em z
 comp>$ to ! fuel t w\ld h be5 requir$  
to produce an equival5t useful !rmal    
en]gy output 9 a sep>ate !rmal-only     

sy/em1 z det]m9$ 9 accordance )         
regulations promulgat$ by ! ,secret>y4  
7#f7 ,codes & /&>ds sav+s  7,a7 ,9 g5]al
 ,! t]m codes & /&>ds sav+s means a     
r$uction 9 end-use electricity or       
natural gas consumption by a retail     
electricity suppli] or 9 ! s]vice       
t]ritory ( a retail natural gas suppli] 
z a result ( ! adoption & implem5tation1
 aft] ! date ( enactm5t ( ?is section1 (
 new or revis$ appliance & equipm5t     
effici5cy /&>ds or build+ en]gy codes4  
7,b7 ,basel9es ,9 calculat+ codes &     
/&>ds sav+s "u subp>agraph 7,a7-- 7i7 ! 
basel9e = calculat+ sav+s f build+ codes
 %all be ! m /r+5t (-- 7,i7 7aa7 ! #bjji
 ,int]national ,en]gy ,cons]vation ,code
 = resid5tial build+s2 or  7bb7 !       
,,a%rae_/,,ansi_/,,iesna ,/&>d          
#ij4a-bjjg = comm]cial build+s2 or      
7,,ii7 ! applicable ,/ate build+ code 9 
effect on date ( enactm5t ( ?is section2
 &  7ii7 ! basel9e = calculat+ sav+s f  
appliance /&>ds %all be ! av]age        
effici5cy ( new appliances 9 !          

applicable "o or m categories prior to !
 adoption & implem5tation ( ! new /&>d4 
7#g7 ,comb9$ heat & p[] sy/em ,! t]m    
comb9$ heat & p[] sy/em means a sy/em t 
uses ! same en]gy s\rce bo? = ! g5]ation
 ( electrical or me*anical p[] & !      
production ( /eam or ano!r =m ( useful  
!rmal en]gy1 if-- 7,a7 ! sy/em meets any
 requirem5ts relat+ to effici5cy & o!r  
op]at+ *>act]i/ics t ! ,secret>y        
promulgates by regulation2 &  7,b7 ! net
 :olesale sales ( electricity by a      
facility does n exce$ #ej p]c5t ( total 
annual electric g5]ation by ! facility4 
7#h7 ,co/-effective ,! t]m              
co/-effective1 ) respect to an en]gy    
effici5cy measure1 means t ! measure    
a*ieves a net pres5t value ( economic   
b5efits ov] ! life ( ! measure1 bo?     
directly to ! en]gy consum] & to !      
economy1 t is great] ?an ! net pres5t   
value ( ! co/ ( ! measure ov] ! life ( !
 measure1 bo? directly to ! en]gy       
consum] & to ! economy1 us+ ! societal  
b5efit-co/ te/ calculat$ us+ ! weight$  

av]age utility co/ ( capital z ! disc\nt
 rate4  7#i7 ,cu/om] facility sav+s ,!  
t]m cu/om] facility sav+s means a       
r$uction 9 end-use electricity or       
natural gas consumption 7includ+ wa/e   
heat en]gy sav+s7 at a facility ( an    
end-use consum] ( electricity or natural
 gas s]v$ by a retail electricity       
suppli] or natural gas suppli]1 z comp>$
 to-- 7,a7 9 ! case ( a new facility1   
consumption at a ref]5ce facility (     
av]age effici5cy2  7,b7 9 ! case ( an   
exi/+ facility1 consumption at !        
facility dur+ a base p]iod ( n less ?an 
#a ye>2  7,c7 9 ! case ( new equipm5t t 
replaces exi/+ equipm5t at ! end ( !    
useful life ( ! exi/+ equipm5t1         
consumption by new equipm5t ( av]age    
effici5cy ( ! same equipm5t type1 except
 t cu/om] sav+s "u ?is subp>agraph %all 
n be c\nt$ t[>ds cu/om] sav+s "u        
subp>agraph 7,a7 or 7,b72 &  7,d7 9 !   
case ( new equipm5t t replaces exi/+    
equipm5t ) rema9+ useful life-- 7i7     
consumption ( ! exi/+ equipm5t = !      

rema9+ useful life ( ! equipm5t2 &  7ii7
 !reaft]1 consumption ( new equipm5t (  
av]age effici5cy4  7#aj7 ,electricity   
sav+s ,! t]m electricity sav+s means    
r$uctions 9 electricity consumption     
a*iev$ ?r\gh measures implem5t$ aft] !  
date ( enactm5t ( ?is section1 z det]m9$
 9 accordance ) regulations promulgat$  
by ! ,secret>y1 t are limit$ to-- 7,a7  
cu/om] facility sav+s ( electricity1    
adju/$ to reflect any associat$ increase
 9 fuel consumption at ! facility2  7,b7
 r$uctions 9 di/ribution sy/em losses ( 
electricity a*iev$ by a retail          
electricity suppli]1 z comp>$ to losses 
attributable to new or replacem5t       
di/ribution sy/em equipm5t ( av]age     
effici5cy1 z def9$ 9 regulations        
promulgat$ by ! ,secret>y2  7,c7 ,,*p   
sav+s2  7,d7 codes & /&>ds sav+s (      
electricity2 &  7,e7 fuel swit*+ en]gy  
sav+s t results 9 net sav+s (           
electricity4  7#aa7 ,fuel swit*+ en]gy  
sav+s  7,a7 ,9 g5]al ,! t]m fuel-swit*+ 
en]gy sav+s means net en]gy sav+s1      

calculat$ 9 accordance ) subp>agraph    
7,b71 f end-us] swit*es f #a en]gy s\rce
 to ano!r1 z det]m9$ 9 accordance )     
regulations promulgat$ by ! ,secret>y4  
7,b7 ,calculation ,= purposes (         
calculat+ fuel-swit*+ net en]gy sav+s-- 
7i7 electricity use %all be evaluat$    
bas$ on ! av]age quantity ( fuel burn$  
at a p[] plant to provide ea* kil[att   
h\r ( electricity2  7ii7 electricity &  
natural gas use %all include losses 9 ! 
transmission & di/ribution sy/em2 &     
7iii7 fuel-swit*+ t is n co/-effective  
to ! end-us] %all n be c\nt$4  7#ab7    
,natural gas sav+s ,! t]m natural gas   
sav+s means r$uctions 9 natural gas     
consumption f measures implem5t$ aft] ! 
date ( enactm5t ( ?is section1 z det]m9$
 9 accordance ) regulations promulgat$  
by ! ,secret>y1 t are limit$ to-- 7,a7  
cu/om] facility sav+s ( natural gas1    
adju/$ to reflect any associat$ increase
 9 electricity consumption or           
consumption ( o!r fuels at ! facility2  
7,b7 r$uctions 9 leakage1 op]ational    

losses1 & consumption ( natural gas fuel
 to op]ate a gas di/ribution sy/em1     
a*iev$ by a retail natural gas suppli]1 
z comp>$ to simil> leakage1 losses1 &   
consumption dur+ a base p]iod ( n less  
?an #a ye>2  7,c7 codes & /&>ds sav+s ( 
natural gas2 &  7,d7 fuel swit*+ en]gy  
sav+s t results 9 net sav+s ( natural   
gas4  7#ac7 ,p[] pool ,! t]m p[] pool   
means an association ( two or m         
int]connect$ electric sy/ems t h ent]$  
into an agreem5t to coord9ate op]ations 
& plann+ = improv$ reliability &        
effici5cies1 includ+ a ,regional        
,transmission ,organization or an       
,indep5d5t ,sy/em ,op]ator1 z det]m9$ by
 ! ,secret>y4  7#ad7 ,report+ p]iod ,!  
t]m report+ p]iod means-- 7,a7 cal5d>   
ye> #bjae2 &  7,b7 ea* successive       
#b-;cal5d>-ye> p]iod !reaft]4  7#ae7    
,retail electricity suppli]  7,a7 ,9    
g5]al ,! t]m retail electricity suppli] 
means1 = any giv5 cal5d> ye>1 an        
electric utility t sells n less ?an     
#a1jjj1jjj megawatt h\rs ( electric     

en]gy to electric consum]s = purposes   
o!r ?an resale dur+ ! prec$+ cal5d>4    
7,b7 ,inclusions & limitations ,=       
purposes ( det]m9+ :e!r an electric     
utility qualifies z a retail electricity
 suppli] "u subp>agraph 7,a7-- 7i7      
deliv]ies by any affiliate ( an electric
 utility to electric consum]s = purposes
 o!r ?an resale %all be consid]$ to be  
deliv]ies by ! electric utility2 &  7ii7
 deliv]ies by any electric utility to a 
lessee1 t5ant1 or affiliate ( ! electric
 utility %all n be consid]$ to be       
deliv]ies to electric consum]s4  7#af7  
,retail natural gas suppli]  7,a7 ,9    
g5]al ,! t]m retail natural gas suppli] 
means1 = any giv5 cal5d> ye>1 a local   
di/ribution company 7z def9$ 9 section  
#b ( ! ,natural ,gas ,policy ,act (     
#aigh 7#ae ,u4,s4,c4 #ccja771 t deliv]$ 
to natural gas consum]s m ?an           
#e1jjj1jjj1jjj cubic feet ( natural gas 
= purposes o!r ?an resale dur+ ! prec$+ 
cal5d> ye>4  7,b7 ,inclusions &         
limitations ,= purposes ( det]m9+ :e!r a

 p]son qualifies z a retail natural gas 
suppli] "u subp>agraph 7,a7-- 7i7       
deliv]ies ( natural gas by any affiliate
 ( a local di/ribution company to       
consum]s = purposes o!r ?an resale %all 
be consid]$ to be deliv]ies by ! local  
di/ribution company2 &  7ii7 deliv]ies (
 natural gas to a lessee1 t5ant1 or     
affiliate ( a local di/ribution company 
%all n be consid]$ to be deliv]ies to   
natural gas consum]s4  7#ag7 ,?ird-p>ty 
effici5cy provid] ,! t]m ?ird-p>ty      
effici5cy provid] means any retail]1    
build+ own]1 en]gy s]vice company1      
f9ancial in/itution or o!r comm]cial1   
indu/rial or nonpr(it entity t is       
capable ( provid+ electricity sav+s or  
natural gas sav+s 9 accordance )        
subsections 7e7 & 7f74  7#ah7 ,wa/e heat
 en]gy sav+s  7,a7 ,9 g5]al ,! t]m wa/e 
heat en]gy sav+s means a r$uction 9     
electricity or natural gas consumption t
 results f a modification ( an indu/rial
 or comm]cial sy/em t comm5c$ op]ation  
be=e ! date ( enactm5t ( ?is section1 9 

ord] to recapture electrical1 me*anical1
 or !rmal en]gy t w\ld o!rwise be wa/$1 
z det]m9$ 9 accordance ) regulations    
promulgat$ by ! ,secret>y4  7,b7        
,inclusion ,su* sav+s %all be includ$ z 
"p ( cu/om] facility sav+s4  7c7        
,e/abli%m5t ( program  7#a7 ,regulations
 ,n lat] ?an #a ye> aft] ! date (       
enactm5t ( ?is section1 ! ,secret>y     
%all1 by regulation1 e/abli% a program  
to implem5t & en=ce ! requirem5ts ( ?is 
section1 includ+ by-- 7,a7 def9+ ! t]m  
co/-effective 7z us$ 9 subsection 7a772 
7,b7 e/abli%+ measurem5t & v]ification  
proc$ures & /&>ds "u subsection 7f72    
7,c7 e/abli%+ requirem5ts "u :i* retail 
electricity suppli]s & retail natural   
gas suppli]s %all-- 7i7 demon/rate1     
docum5t1 & report ! compliance ( !      
retail electricity suppli]s & retail    
natural gas suppli]s ) ! p]=mance /&>ds 
"u subsection 7d72 &  7ii7 e/imate !    
impact ( ! /&>ds on curr5t & future     
electricity & natural gas use 9 ! s]vice
 t]ritories ( ! suppli]s2 &  7,d7       

e/abli%+ requirem5ts gov]n+ applications
 =1 & implem5tation (1 delegat$ ,/ate   
adm9i/ration "u subsection 7h74  7#b7   
,coord9ation ) /ate programs ,9 e/abli%+
 & implem5t+ ?is section1 ! ,secret>y   
%all1 to ! maximum ext5t practicable1   
pres]ve ! integrity & incorporate be/   
practices ( exi/+ ,/ate en]gy effici5cy 
programs4  7d7 ,p]=mance /&>ds  7#a7    
,compliance obligation ,n lat] ?an ,may 
#a ( ! cal5d> ye> imm$iately foll[+ ea* 
report+ p]iod-- 7,a7 ea* retail         
electricity suppli] %all submit to !    
,secret>y a report1 9 accordance )      
regulations promulgat$ by ! ,secret>y1  
demon/rat+ t ! retail electricity       
suppli] has a*iev$ cumulative           
electricity sav+s 7adju/$ to acc\nt =   
any attrition ( sav+s measures implem5t$
 9 prior ye>s7 9 ea* cal5d> ye> t are   
equal to ! applicable p]c5tage1 e/abli%$
 "u p>agraph 7#b71 7#c71 or 7#d71 ( !   
base quantity ( ! retail electricity    
suppli]1 subject to bus9ess-z-usual     
consumption projections calculat$ 9     

accordance ) subsection 7f77#a77,p72 &  
7,b7 ea* retail natural gas suppli] %all
 submit to ! ,secret>y a report1 9      
accordance ) regulations promulgat$ by !
 ,secret>y1 demon/rat+ t x has a*iev$   
cumulative natural gas sav+s 7adju/$ to 
acc\nt = any attrition ( sav+s measures 
implem5t$ 9 prior ye>s7 9 ea* cal5d> ye>
 t are equal to ! applicable p]c5tage1  
e/abli%$ "u p>agraph 7#b71 7#c71 or     
7#d71 ( ! base quantity ( su* retail    
natural gas suppli]1 subject to         
bus9ess-z-usual consumption projections 
calculat$ 9 accordance ) subsection     
7f77#a77,p74  7#b7 ,/&>ds = #bjae ?r\gh 
#bjbe ,= ea* ( cal5d> ye>s #bjae ?r\gh  
#bjbe1 ! applicable p]c5tages are z     
foll[s3 ,cal5d> ,year,cumulative        
,electricity ,sav+s                     
,percentage,cumulative ,natural ,gas    
,sav+s ,p]c5tage#bjae  #a4jj #j4ejbjaf  
#b4jj #a4bebjag  #c4jj #b4jjbjah  #d4be 
#c4jjbjai  #e4ej #d4jjbjbj  #g4jj       
#e4jjbjba #h4ej #f4jjbjbbaj4jj          
#g4jjbjbcaa4ej #h4jjbjbdac4be           

#i4jjbjbeae4jjaj4jj4  7#c7 ,subsequ5t   
ye>s  7,a7 ,cal5d> ye>s #bjbf ?r\gh     
#bjdj ,n lat] ?an ,decemb] #ca1 #bjbc1 !
 ,secret>y %all promulgate regulations  
e/abli%+ p]=mance /&>ds 7express$ z     
applicable p]c5tages ( base quantity =  
bo? cumulative electricity sav+s &      
cumulative natural gas sav+s7 = ea* (   
cal5d> ye>s #bjbf ?r\gh #bjdj4  7,b7    
,subsequ5t ext5sions ,except z provid$ 9
 subp>agraph 7,a71 n lat] ?an ,decemb]  
#ca ( ! p5ultimate report+ p]iod = :i*  
p]=mance /&>ds h be5 e/abli%$ "u ?is    
p>agraph1 ! ,secret>y %all promulgate   
regulations e/abli%+ p]=mance /&>ds     
7express$ z applicable p]c5tages ( base 
quantity = bo? cumulative electricity   
sav+s & cumulative natural gas sav+s7 = 
! #aj-;cal5d>-ye> p]iod foll[+ ! la/    
cal5d> ye> = :i* p]=mance /&>ds         
previ\sly 7 e/abli%$4  7,c7 ,requirem5ts
 ,! ,secret>y %all e/abli% /&>ds "u ?is 
p>agraph at levels reflect+ ! maximum   
a*ievable level ( co/-effective en]gy   
effici5cy pot5tial1 tak+ into acc\nt--  

7i7 co/-effective en]gy sav+s a*iev$ by 
lead+ retail electricity suppli]s &     
retail natural gas suppli]s2  7ii7      
opportunities = new codes & /&>d sav+s2 
7iii7 te*nology improvem5ts2 &  7iv7 o!r
 indicators ( co/-effective en]gy       
effici5cy pot5tial4  7,d7 ,m9imum       
p]c5tage ,9 no case %all ! applicable   
p]c5tages = any cal5d> ye> be less ?an !
 applicable p]c5tages = cal5d> ye> #bjbe
 7includ+ any increase 9 ! /&>d = cal5d>
 ye> #bjbe e/abli%$ pursuant to p>agraph
 7#d774  7#d7 ,midc\rse review &        
adju/m5t ( /&>ds  7,a7 ,9 g5]al ,n lat] 
?an ,decemb] #ca1 #bjbj1 & at #aj-ye>   
int]vals !reaft]1 ! ,secret>y %all-- 7i7
 review ! mo/ rec5t /&>ds e/abli%$ "u   
p>agraph 7#b7 or 7#c72 &  7ii7 increase 
! /&>ds by regulation if ! ,secret>y    
det]m9es t additional co/-effective     
en]gy effici5cy pot5tial is a*ievable1  
tak+ into acc\nt ! requirem5ts describ$ 
9 p>agraph 7#c77;,c74  7,b7 ,lead "t ,if
 ! ,secret>y revises /&>ds "u ?is       
p>agraph1 ! regulations %all provide    

adequate lead "t to ensure t compliance 
) ! increas$ /&>ds is feasible4  7#e7   
,delay ( submission = fir/ report+ p]iod
  7,a7 ,9 g5]al ,not)/&+ p>agraphs 7#a7 
& 7#b71 = ! #bjaf report+ p]iod1 !      
,secret>y may accept a reque/ f a retail
 electricity suppli] or a retail natural
 gas suppli] to delay ! requir$         
submission ( docum5tation ( all or "p ( 
! requir$ sav+s = up to #b ye>s4  7,b7  
,plan = compliance ,! reque/ = delay "u 
subp>agraph 7,a7 %all include a plan =  
com+ into full compliance by ! end ( !  
#bjaf-bjag report+ p]iod4  7#f7 ,apply+ 
unus$ sav+s to future ye>s ,if sav+s    
a*iev$ 9 a ye> exce$ ! p]=mance /&>ds   
specifi$ 9 ?is subsection1 any sav+s 9  
excess ( ! p]=mance /&>ds may be appli$ 
t[>d p]=mance /&>ds specifi$ = future   
ye>s4  7e7 ,transf]s ( electricity or   
natural gas sav+s  7#a7 ,bilat]al       
contracts = sav+s transf]s ,subject to !
 limitations ( ?is subsection1 a retail 
electricity suppli] or retail natural   
gas suppli] may use electricity sav+s or

 natural gas sav+s pur*as$ pursuant to a
 bilat]al contract f ano!r retail       
electricity suppli] or retail natural   
gas suppli]1 a ,/ate1 or a ?ird-p>ty    
effici5cy provid] to meet ! applicable  
p]=mance /&>d "u subsection 7d74  7#b7  
,requirem5ts ,electricity sav+s or      
natural gas sav+s pur*as$ & us$ =       
compliance "u ?is subsection %all be--  
7,a7 measur$ & v]ifi$ 9 accordance )    
subsection 7f72  7,b7 report$ 9         
accordance ) subsection 7d72 &  7,c7    
a*iev$ )9 ! same ,/ate z is s]v$ by !   
retail electricity suppli] or retail    
natural gas suppli]4  7#c7 ,exception   
,not)/&+ p>agraph 7#b77;,c71 a ,/ate    
regulatory au?ority may au?orize a      
retail electricity suppli] or a retail  
natural gas suppli] regulat$ by ! ,/ate 
regulatory au?ority to pur*ase sav+s    
a*iev$ 9 a diff]5t ,/ate1 if-- 7,a7 !   
sav+s are a*iev$ )9 ! same p[] pool2 &  
7,b7 ! ,/ate regulatory au?ority t      
regulates ! pur*as] ov]sees ! measurem5t
 & v]ification ( ! sav+s pursuant to !  

proc$ures & /&>ds applicable 9 ! ,/ate 9
 :i* ! pur*as] is locat$4  7#d7         
,regulatory approval ,no?+ 9 ?is        
subsection limits or affects ! au?ority 
( a ,/ate regulatory au?ority to require
 a retail electricity suppli] or retail 
natural gas suppli] t is regulat$ by !  
,/ate regulatory au?ority to obta9 !    
au?orization or approval ( ! ,/ate      
regulatory au?ority ( a contract =      
transf] ( electricity sav+s or natural  
gas sav+s "u ?is p>agraph4  7#e7        
,limitations ,to optimize ! a*ievem5t ( 
co/-effective effici5cy pot5tial1 !     
,secret>y may prescribe su* limitations 
z ! ,secret>y det]m9es appropriate )    
respect to ! proportion ( ! compliance  
obligation ( a retail electricity or    
natural gas suppli] "u ! applicable     
p]=mance /&>ds "u subsection 7d7 t may  
be met us+ electricity sav+s or natural 
gas sav+s t are pur*as$ "u ?is          
subsection4  7f7 ,measurem5t &          
v]ification ( sav+s ,! regulations      
promulgat$ pursuant to subsection 7c7   

%all include-- 7#a7 proc$ures & /&>ds = 
def9+ & measur+ electricity sav+s &     
natural gas sav+s t c be c\nt$ t[>ds !  
p]=mance /&>ds e/abli%$ "u subsection   
7d71 t %all-- 7,a7 specify ! types (    
en]gy effici5cy & en]gy cons]vation     
measures t c be c\nt$2  7,b7 require t  
en]gy consumption e/imates = cu/om]     
facilities or portions ( facilities 9 ! 
applicable base & curr5t ye>s be adju/$1
 z appropriate1 to acc\nt = *anges 9    
wea!r1 level ( production1 & build+     
area2  7,c7 acc\nt = ! useful life (    
measures2  7,d7 include assign$ sav+s   
values = specific1 commonly us$         
measures2  7,e7 all[ = sav+s f a program
 to be e/imat$ bas$ on extrapolation f a
 repres5tative sample ( p>ticipat+      
cu/om]s2  7,f7 include proc$ures =      
calculat+ & docum5t+ ,,*p sav+s1        
fuel-swit*+ en]gy sav+s1 & wa/e heat    
en]gy sav+s2  7,g7 e/abli% me?ods =     
calculat+ codes & /&>ds en]gy sav+s1    
includ+ ! use ( v]ifi$ compliance rates2
  7,h7 include proc$ures = calculat+ &  

docum5t+-- 7i7 cu/om] facility sav+s &  
r$uctions 9 di/ribution sy/em losses (  
electricity & natural gas t are a*iev$ z
 a result ( sm>t grid deploym5t1 z      
describ$ 9 section #acja ( ! ,en]gy     
,indep5d5ce & ,security ,act ( #bjjg    
7#db ,u4,s4,c4 #agcha72 &  7ii7         
r$uctions 9 natural gas di/ribution     
sy/em losses attributable to pipel9e    
repair & replacem5t programs2  7,i7 c\nt
 only measures & sav+s t are additional 
to bus9ess-z-usual cu/om] pur*ase       
practices2  7,j7 ensure t ! retail      
electricity suppli] or retail natural   
gas suppli] claim+ ! electricity sav+s  
or natural gas sav+s play$ a significant
 role 9 a*iev+ ! sav+s 7includ+ ?r\gh ! 
activities ( a designat$ ag5t ( !       
suppli] or ?r\gh ! pur*ase ( transf]r$  
electricity sav+s or natural gas sav+s72
  7,k7 avoid d\ble-c\nt+ ( sav+s us$ =  
compliance ) ?is section1 includ+       
transf]r$ sav+s2  7,l7 include          
electricity sav+s or natural gas sav+s f
 programs adm9i/]$ by ! retail electric 

suppli] or natural gas suppli] t are    
fund$ by ,f$]al1 ,/ate1 or o!r s\rces2  
7,m7 cr$it l>ge cu/om] self-direct$     
en]gy electricity sav+s or natural gas  
sav+s to ! retail electricity suppli] or
 ! retail natural gas suppli] if ! l>ge 
cu/om]s receive inc5tives or rate       
r$uctions f ! retail suppli] =          
self-direct$ en]gy effici5cy            
improvem5ts2  7,n7 include proc$ures =  
c\nt+ electricity sav+s & natural gas   
sav+s a*iev$ by sol> wat] heat+1 sol>   
light pipe te*nology1 geo!rmal heat     
pumps1 & o!r te*nologies utiliz+        
r5ewable res\rces t h ! capability to   
provide measurable data on ! quantity ( 
en]gy displac$2  7,o7 9 any ,/ate 9 :i* 
! ,/ate regulatory au?ority has         
designat$ "o or m entities to adm9i/]   
electric ratepay]-fund$ effici5cy       
programs approv$ by ! ,/ate regulatory  
au?ority1 provide t electricity sav+s & 
natural gas sav+s a*iev$ ?r\gh !        
programs %all be di/ribut$ equitably    
among retail electric suppli]s & retail 

natural gas suppli]s2 &  7,p7 include   
guidance = utilities to calculate &     
docum5t bus9ess-z-usual consumption     
projections2 &  7#b7 proc$ures & /&>ds =
 ?ird-p>ty v]ification ( report$        
electricity sav+s or natural gas sav+s4 
7g7 ,en=cem5t & judicial review  7#a7   
,review ( retail suppli] reports  7,a7  
,9 g5]al ,! ,secret>y %all review ea*   
report submitt$ to ! ,secret>y by a     
retail electricity suppli] or retail    
natural gas suppli] "u subsection 7d7 to
 v]ify t ! applicable p]=mance /&>ds "u 
subsection 7d7 h be5 met4  7,b7         
,exclusion ,9 det]m9+ compliance ) !    
applicable p]=mance /&>ds "u subsection 
7d71 ! ,secret>y %all exclude report$   
electricity sav+s or natural gas sav+s t
 are n adequately demon/rat$ & docum5t$1
 9 accordance ) ! regulations promulgat$
 "u subsections 7d71 7e71 & 7f74  7#b7  
,p5alty = failure to docum5t adequate   
sav+s ,if a retail electricity suppli]  
or a retail natural gas suppli] fails to
 demon/rate compliance ) an applicable  

p]=mance /&>d "u subsection 7d71 or to  
pay to ! ,/ate an applicable alt]native 
compliance paym5t "u subsection 7h77#d71
 ! ,secret>y %all assess aga9/ ! retail 
electricity suppli] or retail natural   
gas suppli] a civil p5alty = ea* failure
 9 an am\nt equal to1 z adju/$ =        
inflation 9 accordance ) su* regulations
 z ! ,secret>y may promulgate-- 7,a7    
#ajj p] megawatt h\r ( electricity sav+s
 or alt]native compliance paym5t t !    
retail electricity suppli] fail$ to     
a*ieve or make1 respectively2 or  7,b7  
#aj p] million ,btu ( natural gas sav+s 
or alt]native compliance paym5t t !     
retail natural gas suppli] fail$ to     
a*ieve or make1 respectively4  7#c7     
,(fsett+ /ate p5alties ,! ,secret>y %all
 r$uce ! am\nt ( any p5alty "u p>agraph 
7#b7 by ! am\nt paid by ! relevant      
retail electricity suppli] or retail    
natural gas suppli] to a ,/ate = failure
 to comply ) ! requirem5ts ( a ,/ate    
en]gy effici5cy res\rce /&>d dur+ ! same
 compliance p]iod1 if ! ,/ate /&>d--    

7,a7 is comp>able 9 type to ! ,f$]al    
/&>d e/abli%$ "u ?is section2 &  7,b7 is
 m /r+5t ?an ! applicable p]=mance /&>ds
 "u subsection 7d74  7#d7 ,en=cem5t     
proc$ures ,! ,secret>y %all assess a    
civil p5alty1 z provid$ "u p>agraph     
7#b71 9 accordance ) ! proc$ures        
describ$ 9 section #ccc7;d7 ( ! ,en]gy  
,policy & ,cons]vation ,act ( #aied 7#db
 ,u4,s4,c4 #fcjc74  7#e7 ,judicial      
review  7,a7 ,9 g5]al ,any p]son        
adv]sely affect$ by a f9al action tak5  
by ! ,secret>y "u ?is section1 o!r ?an !
 assessm5t ( a civil p5alty1 may use !  
proc$ures = review describ$ 9 section   
#ccf7;b7 ( ! ,en]gy ,policy &           
,cons]vation ,act 7#db ,u4,s4,c4        
#fcjf7;b774  7,b7 ,ref]5ce ,9 ?is       
p>agraph1 ref]5ces to a rule 9 section  
#ccf7;b7 ( ! ,en]gy ,policy &           
,cons]vation ,act 7#db ,u4,s4,c4        
#fcjf7;b77 %all be consid]$ to ref] also
 to all o!r f9al actions ( ! ,secret>y  
"u ?is section o!r ?an ! assessm5t ( a  
civil p5alty4  7h7 ,/ate adm9i/ration   

7#a7 ,9 g5]al ,^u receipt ( an          
application f ! ,gov]nor ( a ,/ate      
7includ+ ! ,mayor ( ! ,di/rict (        
,columbia71 ! ,secret>y may delegate to 
! ,/ate responsibility = adm9i/]+ ?is   
section )9 ! t]ritory ( ! ,/ate if !    
,secret>y det]m9es t ! ,/ate w implem5t 
an en]gy effici5cy program t meets or   
exce$s ! requirem5ts ( ?is section1     
includ+-- 7,a7 a*iev+ electricity sav+s 
& natural gas sav+s t are at lea/ z     
great z ^? requir$ "u ! applicable      
p]=mance /&>ds e/abli%$ "u subsection   
7d72  7,b7 review+ reports & v]ify+     
electricity sav+s & natural gas sav+s   
a*iev$ 9 ! ,/ate 7includ+ sav+s         
transf]r$ f outside ! ,/ate72 &  7,c7   
collect+ any alt]native compliance      
paym5ts "u p>agraph 7#d7 & us+ ! paym5ts
 to implem5t co/-effective effici5cy    
programs4  7#b7 ,secret>ial det]m9ation 
,n lat] ?an #ahj days aft] ! date on :i*
 a complete application is receiv$ by ! 
,secret>y1 ! ,secret>y %all make a      
sub/antive det]m9ation approv+ or       

disapprov+ a ,/ate application1 aft]    
public notice & comm5t4  7#c7           
,alt]native measurem5t & v]ification    
proc$ures & /&>ds ,z "p ( an application
 submitt$ "u p>agraph 7#a71 a ,/ate may 
reque/ to use alt]native measurem5t &   
v]ification proc$ures & /&>ds f !       
proc$ures & /&>ds describ$ 9 subsection 
7f71 if ! ,/ate demon/rates t !         
alt]native proc$ures & /&>ds provide a  
level ( accuracy ( measurem5t &         
v]ification t are at lea/ equival5t to !
 ,f$]al proc$ures & /&>ds "u subsection 
7f74  7#d7 ,alt]native compliance       
paym5ts  7,a7 ,9 g5]al ,z "p ( an       
application submitt$ "u p>agraph 7#a71 a
 ,/ate may p]mit retail electricity     
suppli]s or retail natural gas suppli]s 
to pay to ! ,/ate1 by n lat] ?an ,april 
#a ( ! cal5d> ye> imm$iately foll[+ !   
applicable report+ p]iod1 an alt]native 
compliance paym5t 9 an am\nt equal to1 z
 adju/$ = inflation 9 accordance ) su*  
regulations z ! ,secret>y may           
promulgate1 n less ?an-- 7i7 #ej p]     

megawatt h\r ( electricity sav+s ne$$ to
 make up any deficit ) reg>d to a       
compliance obligation "u ! applicable   
p]=mance /&>d2 or  7ii7 #e p] million   
,btu ( natural gas sav+s ne$$ to make up
 any deficit ) reg>d to a compliance    
obligation "u ! applicable p]=mance     
/&>d4  7,b7 ,use ( paym5ts ,alt]native  
compliance paym5ts collect$ by a ,/ate  
"u subp>agraph 7,a7 %all be us$ by !    
,/ate to adm9i/] ! delegat$ au?ority ( !
 ,/ate "u ?is section & to implem5t     
co/-effective en]gy effici5cy programs  
t-- 7i7 to ! maximum ext5t practicable1 
a*ieve electricity sav+s & natural gas  
sav+s 9 ! ,/ate suffici5t to make up !  
deficit associat$ ) ! alt]native        
compliance paym5ts2 &  7ii7 c be measur$
 & v]ifi$ 9 accordance ) ! applicable   
proc$ures & /&>ds "u subsection 7f7 or  
p>agraph 7#c71 z applicable4  7#e7      
,review ( /ate implem5tation  7,a7      
,p]iodic review ,e #b ye>s1 ! ,secret>y 
%all review ,/ate implem5tation ( ?is   
section = con=mance ) ! requirem5ts (   

?is section 9 approximately #a_/b ( !   
,/ates t h receiv$ approval "u ?is      
subsection to adm9i/] ! program1 s t ea*
 ,/ate %all be review$ at lea/ e #d     
ye>s4  7,b7 ,report ,to facilitate !    
review "u subp>agraph 7,a71 ! ,secret>y 
may require ! ,/ate to submit a report  
demon/rat+ ! con=mance ( ! ,/ate ) !    
requirem5ts ( ?is section1 includ+-- 7i7
 reports submitt$ by retail electricity 
suppli]s & retail natural gas suppli]s  
to ! ,/ate demon/rat+ compliance )      
applicable p]=mance /&>ds2  7ii7 !      
impact ( ! /&>ds on project$ electricity
 & natural gas dem& )9 ! ,/ate2  7iii7  
an acc\nt+ ( ! use ( alt]native         
compliance paym5ts by ! ,/ate & !       
result+ electricity sav+s & natural gas 
sav+s a*iev$2 &  7iv7 any o!r in=mation 
t ! ,secret>y det]m9es appropriate4     
7,c7 ,review ^u petition ,not)/&+       
subp>agraph 7,a71 ^u receipt ( a public 
petition conta9+ cr$ible allegation (   
sub/antial defici5cies1 ! ,secret>y %all
 promptly review ! ,/ate implem5tation (

 delegat$ au?ority "u ?is section4  7,d7
 ,defici5cies  7i7 ,9 g5]al ,9 complet+ 
a review "u ?is p>agraph1 if ! ,secret>y
 f9ds defici5cies1 ! ,secret>y %all--   
7,i7 notify ! ,/ate ( ! defici5cies2    
7,,ii7 direct ! ,/ate to correct !      
defici5cies2 &  7,,iii7 require ! ,/ate 
to report to ! ,secret>y on progress    
made by n lat] ?an #ahj days aft] ! date
 on :i* ! ,/ate receives notice "u      
subclause 7,i74  7ii7 ,sub/antial       
defici5cies ,if ! defici5cies are       
sub/antial1 ! ,secret>y %all-- 7,i7     
disall[ ! report$ electricity sav+s or  
natural gas sav+s t ! ,secret>y det]m9es
 are n cr$ible due to defici5cies2      
7,,ii7 re-review ! ,/ate n lat] ?an #b  
ye>s aft] ! date on :i* ! orig9al review
 0 complet$2 &  7,,iii7 if sub/antial   
defici5cies rema9 uncorrect$ aft] !     
review provid$ = "u subclause 7,,ii71   
revoke ! au?ority ( ! ,/ate to adm9i/] !
 program e/abli%$ "u ?is section4  7#f7 
,calls = revision ( ,/ate applications  
,z a condition ( ma9ta9+ ! delegat$     

au?ority ( a ,/ate to adm9i/] ?is       
section1 ! ,secret>y may require a ,/ate
 to submit a revis$ application "u      
p>agraph 7#a7 if ! ,secret>y has-- 7,a7 
promulgat$ new or revis$ p]=mance /&>ds 
"u subsection 7d72  7,b7 promulgat$ new 
or sub/antially revis$ measurem5t &     
v]ification proc$ures & /&>ds "u        
subsection 7f72 or  7,c7 o!rwise        
sub/antially revis$ ! program e/abli%$  
"u ?is section4  7#g7 ,co/ recov]y1 fix$
 co/ recov]y & %>ehold] inc5tives ,/ate 
utility regulatory commissions are      
enc\rag$ to review ! rules & regulations
 ( ! commission to ensure t utilities "u
 ! jurisdiction ( ! commission c-- 7,a7 
recov] ! direct co/s ( en]gy effici5cy  
programs2  7,b7 fully recov] au?oriz$   
fix$ co/s1 includ+ lo/ m>g9s f l[]      
annual sales due to en]gy effici5cy     
programs2 &  7,c7 e>n an inc5tive =     
%>ehold]s if ! en]gy effici5cy /&>ds are
 a*iev$4  7i7 ,in=mation & reports ,9   
accordance ) section #ac ( ! ,f$]al     
,en]gy ,adm9i/ration ,act ( #aigd 7#ae  

,u4,s4,c4 #ggb71 ! ,secret>y may require
 any retail electricity suppli]1 retail 
natural gas suppli]1 ?ird-p>ty effici5cy
 provid]1 or any o!r entity t !         
,secret>y det]m9es appropriate1 to      
provide any in=mation ! ,secret>y       
det]m9es appropriate to c>ry out ?is    
section4  7j7 ,/ate law ,no?+ 9 ?is     
section dim9i%es or qualifies any       
au?ority ( a ,/ate or political         
subdivision ( a ,/ate to adopt or en=ce 
any law or regulation respect+          
electricity sav+s or natural gas sav+s1 
includ+ any law or regulation e/abli%+  
en]gy effici5cy requirem5ts t are m     
/r+5t ?an ^? "u ?is section1 except t no
 ,/ate law or regulation %all relieve   
any p]son ( any requirem5t o!rwise      
applicable "u ?is section4  4  #f4      
,program review  7a7 ,national academy (
 sci5ces review ,! ,secret>y ( ,en]gy   
%all ent] into a contract ) ! ,national 
,academy ( ,sci5ces "u :i* ! ,academy   
%all1 n lat] ?an ,july #a1 #bjai1 & e   
#aj ye>s !reaft]1 submit to ,congress1 !

 ,f$]al ,en]gy ,regulatory ,commission1 
& ! ,secret>y ( ,en]gy a compreh5sive   
evaluation ( all aspects ( ! programs   
e/abli%$ "u ?is ,act & "u sections #faj 
& #faa ( ! ,public ,utility ,regulatory 
,policies ,act ( #aigh 7z add$ by ?is   
,act71 includ+-- 7#a7 an evaluation ( ! 
effectiv5ess ( ! programs1 includ+ !    
specific design elem5ts ( ! programs1 9 
increas+ ! effici5cy ( retail natural   
gas & electricity di/ribution &         
consumption & increas+ ! deploym5t (    
r5ewable electricity capacity2  7#b7 !  
opportunities = additional te*nologies &
 s\rces ( effici5cy & r5ewable          
electricity t h em]g$ s9ce ! date (     
enactm5t ( ?is ,act2  7#c7 ! impact ( ! 
programs on ! reliability ( electricity 
& natural gas supply2  7#d7 ! net       
b5efits or co/s ( ! programs to ! ,unit$
 ,/ates & ! ,/ates1 includ+-- 7,a7 !    
effects on electricity & natural gas    
dem& & prices2  7,b7 ! economic         
developm5t b5efits ( inve/m5t2  7,c7    
environm5tal co/s & b5efits2  7,d7 !    

impacts on public heal? & heal? c>e     
co/s2 &  7,e7 avoid$ co/s relat$ to     
environm5tal & conge/ion mitigation     
inve/m5ts t o!rwise w\ld h be5 requir$2 
7#e7 an assessm5t ( ! b5efits & co/s (  
increas+ ! p]=mance /&>ds e/abli%$ "u   
section #faa7;d7 ( ! ,public ,utility   
,regulatory ,policies ,act ( #aigh 7z   
add$ by ?is ,act72  7#f7 ! feasibility1 
advantages1 & disadvantages ( alt]native
 models = demon/rat+ compliance ) a     
,f$]al en]gy effici5cy res\rce /&>d1    
includ+-- 7,a7 e/abli%+ a national trad+
 sy/em = en]gy effici5cy cr$its2 or     
7,b7 demon/rat+ compliance ?r\gh actual 
r$uctions 9 deliv]y or sales (          
electricity & natural gas1 r ?an on     
program sav+s2 &  7#g7 recomm5dations   
reg>d+ pot5tial *anges to ?is section1  
to regulations & proc$ures = implem5t+  
?is section1 or to relat$ public        
policies4  7b7 ,recomm5dations to       
,congress ,n lat] ?an ,janu>y #a1 #bjbj1
 & e #aj ye>s !reaft]1 ! ,secret>y (    
,en]gy %all submit to ! ,committee on   

,en]gy & ,comm]ce ( ! ,h\se (           
,repres5tatives & ! ,committee on ,en]gy
 & ,natural ,res\rces ( ! ,s5ate a      
report mak+ recomm5dations =            
modifications & improvem5ts to ! program
 e/abli%$ "u ?is section & any relat$   
programs1 includ+ an explanation ( !    
inconsi/5cies1 if any1 betwe5 !         
recomm5dations ( ! ,secret>y ( ,en]gy & 
! recomm5dations includ$ 9 ! evaluation 
( ! ,national ,academy ( ,sci5ces "u    
p>agraph 7#a74  #g4 ,con=m+ am5dm5t ,!  
table ( cont5ts ( ! ,public ,utility    
,regulatory ,policies ,act ( #aigh 7#af 
,u4,s4,c4 prec4 #bfja7 is am5d$ by add+ 
at ! end ( ! items relat+ to title ,,vi 
! foll[+3  ,sec4 #fji4 ,rural & remote  
communities electrification grants4,sec4
 #faj4 ,f$]al r5ewable electricity      
/&>d4,sec4 #faa4 ,f$]al en]gy effici5cy 
res\rce /&>d = retail electricity &     
natural gas suppli]s4  4