,,ii #aacth ,,congress #b;d ,session ,s4 #ahii ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #i1 #bjad,ms4 ,klobuchar 7for herself1 ,mr4 ,hoeven1 and ,mr4 ,johnson of ,south ,dakota7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a consumer renewable credit for a utility that sells renewable power1 and for other purposes4 #a4 ,consumer ,renewable ,credit 7a7 ,business credit 7#a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,s4 ,consumer renewable credit 7a7 ,general rule ,for purposes of section #ch1 in the case of an eligible taxpayer1 the consumer renewable credit for any taxable year is an amount equal to the product of-- 7#a7 the renewable portfolio factor of such eligible taxpayer1 and 7#b7 subject to subsection 7e71 the number of kilowatt hours of renewable electricity-- 7,a7 purchased or produced by such taxpayer1 and 7,b7 sold by such taxpayer to a retail customer during the taxable year4 7b7 ,renewable portfolio factor ,in the case of taxable years beginning before ,january #a1 #bjai1 the renewable portfolio factor for an eligible taxpayer shall be determined as follows3 ,renewable electricity percentage3,renewable portfolio factor3,less than #f percentzero cents,at least #f percent but less than #h percent#j4a cents,at least #h percent but less than #ab percent#j4b cents,at least #ab percent but less than #af percent#j4c cents,at least #af percent but less than #bj percent#j4d cents,at least #bj percent but less than #bd percent#j4e cents,equal to or greater than #bd percent#j4f cents4 7c7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,eligible taxpayer ,the term eligible taxpayer means an electric utility1 as defined in section #c7bb7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif7bb774 7#b7 ,renewable electricity ,the term renewable electricity means electricity generated by any facility using wind or solar energy to generate such electricity4 7#c7 ,renewable electricity percentage ,the term renewable electricity percentage means the percentage of an eligible taxpayer's total sales of electricity to retail customers which is derived from renewable electricity 7determined without regard to whether such electricity was produced by the taxpayer74 7#d7 ,application of other rules ,for purposes of this section1 rules similar to the rules of paragraphs 7#a71 7#c71 and 7#e7 of section #de7;e7 shall apply4 7#e7 ,credit allowed only with respect to one eligible entity ,no credit shall be allowed under subsection 7a7 with respect to renewable electricity purchased from another eligible entity if a credit has been allowed under this section to such other eligible entity4 7d7 ,coordination with payments ,the amount of the credit determined under this section with respect to any electricity shall be reduced to take into account any payment provided with respect to such electricity solely by reason of the application of section #fdcc4 7e7 ,renewable electricity enhancement 7#a7 ,native ,american wind and solar ,in the case of renewable electricity generated by a wind or solar energy facility which is located on an ,indian reservation 7as defined in section #afh7;j77#f771 the number of kilowatt hours of such renewable electricity shall1 for purposes of subsection 7a77#b71 be equal to #bjj percent of the kilowatt hours of such renewable electricity actually purchased or produced and sold during the taxable year4 7#b7 ,electric cooperative wind and solar ,in the case of renewable electricity generated by a wind or solar energy facility which is wholly owned by a mutual or cooperative electric company 7as described in section #eja7;c77#ab7 or #acha7;a77#b77;,c771 the number of kilowatt hours of such renewable electricity shall1 for purposes of subsection 7a77#b71 be equal to #aej percent of the kilowatt hours of such renewable electricity actually purchased or produced and sold during the taxable year4 4 7#b7 ,credit made part of general business credit ,subsection 7b7 of section #ch of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the consumer renewable credit determined under section #de,s7a74 4 7#c7 ,specified credit ,subparagraph 7,b7 of section #ch7;c77#d7 of the ,internal ,revenue ,code of #aihf is amended by redesignating clauses 7vii7 through 7ix7 as clauses 7viii7 through 7x71 respectively1 and by inserting after clause 7v7 the following new clause3 7vi7 the credit determined under section #de,s4 4 7#d7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #de,s4 ,consumer renewable credit4 4 7b7 ,payments in lieu of credit 7#a7 ,in general ,subchapter ,b of chapter #fe of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fdcc4 ,consumer renewable credit payments 7a7 ,in general ,if any eligible person sells renewable electricity to a retail customer1 the ,secretary shall pay 7without interest7 to any such person who elects to receive a payment an amount equal to the product of-- 7#a7 the intermittent renewable portfolio factor of such eligible person1 and 7#b7 the number of kilowatt hours of renewable electricity-- 7,a7 purchased or produced by such person1 and 7,b7 sold by such person in the trade or business of such person to a retail customer4 7b7 ,timing of payments 7#a7 ,in general ,except as provided in paragraph 7#b71 rules similar to the rules of section #fdbg7;i77#a7 shall apply for purposes of this section4 7#b7 ,quarterly payments 7,a7 ,in general ,if1 at the close of any quarter of the taxable year of any person 7or1 in the case of an eligible person that does not have a taxable year1 the close of any quarter of the fiscal year71 at least #gej is payable in the aggregate under subsection 7a71 to such person with respect to electricity purchased or produced during-- 7i7 such quarter1 or 7ii7 any prior quarter 7for which no other claim has been filed7 during such year1 a claim may be filed under this section with respect to such electricity4 7,b7 ,time for filing claim ,no claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim4 7c7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,eligible person ,the term eligible person means-- 7,a7 an electric utility1 as defined in section #c7bb7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif7bb771 or 7,b7 a ,federal power marketing agency1 as defined in section #c7ai7 of such ,act 7#af ,u4,s4,c4 #gif7ai774 7#b7 ,other definitions ,any term used in this section which is also used in section #de,s shall have the meaning given such term under section #de,s4 7#c7 ,application of other rules ,for purposes of this section1 rules similar to the rules of paragraphs 7#a7 and 7#c7 of section #de7;e7 shall apply4 7d7 ,payment disallowed unless amount passed to third-,party generators charged for integration costs 7#a7 ,in general ,in the case of renewable electricity eligible for the payment under subsection 7a7 that is purchased and not produced by an eligible person1 no payment shall be made under this section unless any charge the eligible person has assessed the seller to recover the integration costs associated with such electricity has been reduced 7but not below zero7 to the extent of the payment received under subsection 7a7 associated with such electricity4 7#b7 ,definitions ,for purposes of paragraph 7#a71 charges intended to recover integration costs do not include amounts paid by the producer of the electricity for interconnection facilities1 distribution upgrades1 network upgrades1 or stand alone network upgrades as those terms have been defined by the ,federal ,energy ,regulatory ,commission in its ,standard ,interconnection ,procedures4 7e7 ,payment allowed for special generating and transmitting entities 7#a7 ,in general ,notwithstanding subsection 7a77#b71 a special generating and transmitting entity shall be eligible for payment under subsection 7a7 based on the number of kilowatt hours of renewable electricity transmitted1 regardless of whether such entity purchased or sold such electricity to retail customers4 7#b7 ,definition ,for purposes of this subsection1 the term special generating and transmitting entity means-- 7,a7 an entity which is-- 7i7 primarily engaged in marketing electricity1 7ii7 provides transmissions services for greater than #d1jjj megawatts of renewable electricity generating facilities1 as determined by reference to the machine or nameplate capacity thereof1 and 7iii7 transmits the majority of such renewable electricity to customers located outside of the region that it serves1 or 7,b7 a generation and transmission cooperative which engages primarily in providing wholesale electric services to its members 7generally consisting of distribution cooperatives74 4 7#b7 ,clerical amendment ,the table of sections for subpart ,b of chapter #fe of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #fdcc4 ,consumer renewable credit payments4 4 7c7 ,effective date ,the amendments made by this section shall apply to electricity produced or purchased and sold after ,december #ca1 #bjac1 and before ,january #a1 #bjai4 #b4 ,delay in application of worldwide interest 7a7 ,in general ,paragraphs 7#e77;,d7 and 7#f7 of section #hfd7;f7 of the ,internal ,revenue ,code of #aihf are each amended by striking 8,december #ca1 #bjbj0 and inserting 8,december #ca1 #bjbb04 7b7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4