,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #ijcf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,decemb] #ah1         
#bjbj,mr4 ,wel* 7= himself1 ,ms4 ,cl>ke 
( ,new ,york1 & ,mr4 ,lujn7 introduc$ ! 
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,en]gy & ,comm]ce  ,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 = retail electricity       
suppli]s & retail natural gas suppli]s1 
& = o!r purposes4  #a4 ,%ort title2     
f9d+s  7a7 ,%ort title ,?is ,act may be 
cit$ z ! ,am]ican ,r5ewable ,en]gy &    
,effici5cy ,act4  7b7 ,f9d+s ,congress  
f9ds t-- 7#a7 ! ,f$]al r5ewable         
electricity /&>d e/abli%$ by section    
#faj ( ! ,public ,utility ,regulatory   
,policies ,act ( #aigh 7z add$ by ?is   
,act7 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#b7 
! ,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$ ,/ates2  7#c7 ! ,f$]al en]gy  
effici5cy res\rce /&>d e/abli%$ by      
section #faa ( ! ,public ,utility       
,regulatory ,policies ,act ( #aigh 7z   
add$ by ?is ,act7-- 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#d7 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 include 
en]gy effici5cy z a res\rce 9 utility   
plann+ & procurem5t activities2 &  7,b7 
seek to a*ieve all en]gy effici5cy      
measures t are available at l[] co/ ?an 
o!r en]gy supply options4  #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$]al r5ewable electricity /&>d  7a7   
,def9itions ,9 ?is section3 7#a7 ,f$]al 
r5ewable electricity cr$it ,! t]m ,f$]al
 r5ewable electricity cr$it means a     
cr$it1 t repres5ts1 = purposes (        
compliance ) ?is section1 #a megawatt   
h\r ( r5ewable electricity1 issu$       
pursuant to subsection 7e74  7#b7       
,impact$ community ,! t]m impact$       
community means-- 7,a7 an economically  
di/ress$ area affect$ by environm5tal   

pollution or o!r haz>ds t c lead to--   
7i7 exposure to ! pollution or haz>d1   
includ+ negative public heal? effects   
result+ f t exposure2 or  7ii7          
environm5tal degradation2 or  7,b7 an   
economically di/ress$ area affect$ by   
high unemploym5t due to-- 7i7 a         
significant decl9e 9 coal m9+ activity2 
or  7ii7 ! closure ( a coal-fir$ p[]    
plant4  7#c7 ,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*]ia  
title to :i* on ! date ( enactm5t ( ?is 
section 0 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 to any ,native  
,corporation 7z t t]m is def9$ 9 section
 #c ( t ,act74  7#d7 ,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 ,act77 t is recogniz$
 z eligible = ! special programs &      
s]vices provid$ by ! ,unit$ ,/ates to   
,indians because ( _! /atus z ,indians4 
7#e7 ,qualifi$ hydrop[] ,! t]m qualifi$ 
hydrop[] means en]gy produc$ f g5]at+   
capacity add$ to a dam on or aft]       
,janu>y #a1 #bjja1 if ! ,commission     
c]tifies t-- 7,a7 ! dam-- 7i7 0 plac$ 9 
s]vice be=e ! date ( enactm5t ( ?is     
section2  7ii7 0 op]at$ = flood control1
 navigation1 or wat] supply purposes2 & 
7iii7 0 n produc+ hydroelectric p[]     
prior to ! addition ( ! capacity2 &     
7,b7 ! hydroelectric project in/all$ on 
! dam-- 7i7 is lic5s$ or is exempt f    
lic5s+ by ! ,commission2  7ii7 is 9     
compliance )-- 7,i7 ! t]ms & conditions 
( ! lic5se or exemption2 &  7,,ii7 o!r  

applicable legal requirem5ts = !        
protection ( environm5tal quality1      
includ+ applicable fi% passage          
requirem5ts2 &  7iii7 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#f7 ,qualifi$        
r5ewable biomass ,! t]m qualifi$        
r5ewable biomass means r5ewable biomass 
t1 :5 combu/$1 yields1 on a             
weight$-av]age basis1 at lea/ #ej p]c5t 
less lifecycle gre5h\se gas emissions 7z
 def9$ 9 section #d7;a7 ( ! ,am]ican    
,r5ewable ,en]gy & ,effici5cy ,act7 p]  
unit ( useful en]gy1 ?an ! lifecycle    
gre5h\se gas emissions1 includ+ me?ane  
leakage1 f ! g5]ation ( su* unit (      
useful en]gy by a comb9$ cycle natural  
gas electric g5]at+ unit us+ ! mo/      
effici5t comm]cially available te*nology

 7bas$ on lifecycle gre5h\se gas        
emissions74  7#g7 ,r5ewable biomass ,!  
t]m r5ewable biomass means-- 7,a7 crop  
byproducts or crop residues h>ve/$ f    
actively manag$ or fall[ agricultural l&
 t is cle>$ prior to ! date ( enactm5t (
 ?is section2  7,b7 plant$ trees1 bru%1 
sla%1 & residues f an actively manag$   
tree f>m d$icat$ to en]gy crop          
production & locat$ on l& cle>$ prior to
 ! date ( enactm5t ( ?is section2  7,c7 
byproducts ( wood or pap] mill          
op]ations1 includ+ lign9 9 sp5t pulp+   
liquors2  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 vegetative matt] remov$ f )9 #bjj
 y>ds ( any manmade /ructure or         
campgr\nd = ! purposes ( protect+       
/ructures f wildfire4  7#h7 ,r5ewable   
electricity ,! t]m r5ewable electricity 

means electricity g5]at$ 7includ+ by    
means ( a fuel cell7 f a r5ewable en]gy 
res\rce4  7#i7 ,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(uel d]iv$ f qualifi$ 
r5ewable biomass4  7,g7 ,biogas d]iv$ f 
ana]obic dige/ion at wa/ewat] treatm5t  
facilities or f f>ms ?r\gh ana]obic     
dige/]s4  7,h7 ,qualifi$ hydrop[]4  7,i7
 ,m>9e & hydrok9etic r5ewable en]gy 7z  
def9$ 9 section #fcb ( ! ,en]gy         
,indep5d5ce & ,security ,act ( #bjjg74  
7,j7 ,l&fill gas4  7#aj7 ,retail        
electricity suppli]  7,a7 ,9 g5]al ,!   
t]m retail electricity suppli] means1 = 
any cal5d> ye>1 an electric utility t   
sells n few] ?an #a1jjj1jjj megawatt    
h\rs ( electricity to electric consum]s 
dur+ ! prec$+ cal5d> ye>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 ! sales made 
by any affiliate ( ! electric utility to
 electric consum]s1 o!r ?an sales to    
lessees or t5ants ( ! affiliate1 %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#aa7     
,retail electricity suppli]'s base      
quantity ,! t]m retail electricity      
suppli]'s base quantity means ! total   
quantity ( electricity sold by ! retail 
electricity suppli]1 express$ 9 megawatt
 h\rs1 to electric consum]s 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#ab7 ,retire & 
retirem5t ,! t]ms retire & retirem5t )  
respect to a ,f$]al r5ewable electricity
 cr$it1 mean to disqualify ! cr$it = any
 subsequ5t use "u ?is section1 reg>dless
 ( :e!r ! use is a sale1 transf]1       
ex*ange1 or submission 9 satisfaction ( 
a compliance obligation4  7b7 ,annual   
compliance obligation ,except z o!rwise 
provid$ 9 subsection 7f71 = ea* ( cal5d>
 ye>s #bjba ?r\gh #bjci1 n lat] ?an ,m>*
 #ca ( ! foll[+ cal5d> ye>1 ea* retail  
electricity suppli] %all submit to !    
,commission a quantity ( ,f$]al r5ewable
 electricity cr$its t repres5ts a       
quantity ( megawatt h\rs ( r5ewable     
electricity t is at lea/ equal to !     
annual t>get ( ! retail electricity     
suppli] "u subsection 7d74  7c7         
,e/abli%m5t  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    
pres]ve ! integrity ( volunt>y r5ewable 
en]gy m>kets2  7,c7 delegate to an      
appropriate m>ket-mak+ entity !         
adm9i/ration ( a national tradeable     
,f$]al r5ewable electricity cr$it m>ket 
= purposes ( creat+ a transp>5t national
 m>ket = ! sale or trade ( ,f$]al       
r5ewable electricity cr$its1 rely+ on   
exi/+ & em]g+ ,/ate1 tribal1 or regional
 track+ sy/ems t issue & track          
non-,f$]al r5ewable electricity cr$its2 
&  7,d7 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   
electricity suppli]s4  7d7 ,annual      

compliance requirem5t  7#a7 ,annual     
t>gets ,= ea* ( cal5d> ye>s #bjba ?r\gh 
#bjci1 ! annual t>get ( a retail        
electricity suppli] %all be equal to !  
numb] ( megawatt h\rs t is equal to !   
product obta9$ by multiply+-- 7,a7 !    
requir$ annual p]c5tage = t cal5d> ye>  
"u p>agraph 7#b72 &  7,b7 ! retail      
electricity suppli]'s base quantity = t 
cal5d> ye>4  7#b7 ,requir$ annual       
p]c5tage  7,a7 ,cal5d> ye>s #bjba ?r\gh 
#bjcj ,= ea* ( cal5d> ye>s #bjba ?r\gh  
#bjcj1 ! requir$ annual p]c5tage %all be
 z foll[s3 ,requir$                     
annual,year3p]c5tage3#bjbaba4jbjbbbd4ebj
bcbh4jbjbdca4ebjbece4jbjbfci4jbjbgdc4jbj
bhdg4jbjbiea4jbjcjee4j  7,b7 ,cal5d>    
ye>s #bjca ?r\gh #bjci  7i7 ,increase   
,except z provid$ 9 clause 7ii71 = ea* (
 cal5d> ye>s #bjca ?r\gh #bjci1 !       
requir$ annual p]c5tage %all be equal to
 ! requir$ annual p]c5tage = ! previ\s  
cal5d> ye> plus #d p]c5tage po9ts4  7ii7
 ,feasibility  7,i7 ,adju/m5t ,except z 
provid$ 9 subclause 7,,ii71 = any (     

cal5d> ye>s #bjca ?r\gh #bjci1 !        
,commission may increase or decrease !  
#d p]c5tage po9t increase requir$ "u    
clause 7i7 if ! ,commission det]m9es    
necess>y bas$ on te*nical & economic    
feasibility /udies or o!r equival5t     
means4  7,,ii7 ,exception ,= ea* (      
cal5d> ye>s #bjca ?r\gh #bjci1 !        
p]c5tage po9t increase requir$ "u ?is   
subp>agraph = ! requir$ annual p]c5tage 
%all be great] ?an z]o4  7e7 ,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   
electricity #a ,f$]al r5ewable          
electricity cr$it = ea* megawatt h\r (  
r5ewable electricity g5]at$ by ! g5]ator
 aft] ,decemb] #ca1 #bjbj4  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 electricity
 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          
electricity suppli] = ! portion ( !     
relevant r5ewable electricity g5]ation t
 is attributable to paym5ts made by !   
retail electricity 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     
electricity 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 electricity 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 electricity 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 #b ,f$]al r5ewable  
electricity cr$its = ea* megawatt h\r ( 

r5ewable electricity g5]at$ 9 a         
community t ! ,commission det]m9es is an
 impact$ community2 &  7ii7 n m ?an #b  
,f$]al r5ewable electricity cr$its = ea*
 megawatt h\r ( r5ewable electricity    
g5]at$ on ,indian l&4  7,b7 ,adju/m5t   
,except z provid$ 9 subp>agraph 7,c71 n 
lat] ?an ,janu>y #a1 #bjbc1 & n less    
frequ5tly ?an e #d ye>s !reaft]1 !      
,commission %all review ! effect on !   
aggregate quantity ( r5ewable           
electricity g5]at$ z a result ( provid+ 
cr$it multipli]s "u ?is p>agraph & %all1
 z necess>y & aft] provid+ #a ye> (     
notice1 r$uce ! numb] ( ,f$]al r5ewable 
electricity cr$its issu$ "u ?is p>agraph
 p] megawatt h\r ( r5ewable electricity 
g5]at$ by 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 to inc5tivize      
increm5tal r5ewable en]gy g5]ation 9    
impact$ communities & on ,indian l&4    
7,c7 ,facilities plac$ 9 s]vice aft]    
enactm5t  7i7 ,9 g5]al ,= any r5ewable  

electricity 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 g5]at$ 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] ( megawatt h\rs (   
r5ewable electricity g5]ation f 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#e77;,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   
g5]at$ 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 electricity 
g5]at$4  7#h7 ,trad+ ,! lawful hold] ( a
 ,f$]al r5ewable electricity cr$it may--
 7,a7 sell1 ex*ange1 or transf] ! cr$it2
  7,b7 submit ! cr$it = compliance "u   

subsection 7b72 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 7b7 = ! 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$it1 :e!r 9 satisfaction ( a
 compliance obligation "u subsection 7b7
 or = ano!r reason4  7f7 ,alt]native    
compliance paym5ts  7#a7 ,9 g5]al ,a    
retail electricity suppli] may satisfy !
 requirem5ts ( subsection 7b7 9 :ole or 
9 "p by submitt+ 9 accordance ) ?is     
subsection1 9 lieu ( ea* ,f$]al r5ewable
 electricity cr$it t w\ld o!rwise be    

submitt$1 an alt]native compliance      
paym5t equal to #ej1 adju/$ = inflation 
on ,janu>y #a ( ea* ye> foll[+ cal5d>   
ye> #bjba1 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 electricity suppli]     
sells electricity1 9 proportion to !    
portion ( ! retail electricity 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 en]gy 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$4  7g7 ,in=mation collection ,!   
,commission may require any retail      
electricity suppli]1 r5ewable           
electricity g5]ator1 or any o!r entity t
 ! ,commission det]m9es appropriate1 to 
provide any in=mation ! ,commission     
det]m9es appropriate to c>ry out ?is    
section4  7h7 ,en=cem5t & judicial      
review  7#a7 ,failure to submit cr$its  
,if any p]son fails to comply ) !       
requirem5ts ( subsection 7b7 or 7f7 = a 
cal5d> ye>1 ! 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 7f77#a7 =
 su* cal5d> ye>2 &  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 7b7 & 7f7 = su* cal5d> ye>4 
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$]al ,p[] ,act4   
7#c7 ,violation ( requirem5t (          
regulations or ord]s  7,a7 ,9 g5]al ,any
 p]son :o violates or fails or refuses  
to comply ) any requirem5t ( ?is        
section1 o!r ?an a requirem5t (         
subsection 7b7 or 7f71 %all be subject  
to a civil p5alty "u section #caf;,a7b7 
( ! ,f$]al ,p[] ,act4  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$]al ,p[] ,act4  7,b7 ,ref]5ce ,=     
purposes ( ?is p>agraph1 ref]5ces to an 
ord] 9 section #cac ( t ,act %all be    
consid]$ 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  7i7         
,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 electricity suppli]s )9 !        
jurisdiction ( ! ,/ate1 political       
subdivision1 or ,indian ,tribe1 includ+ 
! au?ority to require ! retail          
electricity 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 regulation4  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$]al ,p[]   
,act1 a ,/ate law or ,/ate regulatory   
au?ority may set ! rates = a sale (     
electricity by a facility g5]at+        
r5ewable en]gy 7z def9$ 9 section       

#fji7;a77 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 (1 & coord9at+ )1 !      
,sci5tific ,advisory ,bo>d ( !          
,environm5tal ,protection ,ag5cy reg>d+ 
! acc\nt+ ( biog5ic c>bon dioxide       
emissions1 & 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 ( #aigh1 z   
add$ by ?is ,act74  #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 is fur!r am5d$ 
by add+ at ! end ! foll[+3  #faa4 ,f$]al
 en]gy effici5cy res\rce /&>d = retail  

electricity & natural gas suppli]s  7a7 
,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 7c71 ! av]age annual quantity
 ( electricity deliv]$ by ! retail      
electricity suppli] to electric         
consum]s1 or quantity ( natural gas     
deliv]$ by ! retail natural gas suppli] 

to natural gas consum]s1 dur+ ! #c      
cal5d> ye>s imm$iately prec$+ ! ye> t   
compliance is requir$ "u subsection     
7c77#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  
,! t]m codes & /&>ds sav+s means a      
r$uction 9 electricity or natural gas   
consumption z a result ( ! adoption &   
implem5tation1 aft] ! date ( enactm5t ( 
?is section1 ( new or revis$ appliance &
 equipm5t effici5cy /&>ds or build+     
en]gy codes4  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 program1 means t ! program    
a*ieves a net pres5t value ( economic   
b5efits ov] ! life ( ! implem5t$        

measures1 bo? directly to ! en]gy       
consum] & to ! economy1 t is great] ?an 
! net pres5t value ( ! co/ ( ! program  
ov] ! life ( ! program1 bo? directly to 
! en]gy consum] & to ! economy1 us+ !   
societal b5efit-co/ te/ calculat$ us+ ! 
l[] ( a utility weight$ av]age co/ (    
capital or a social disc\nt rate ( #c   
p]c5t4  7#i7 ,cu/om] facility sav+s ,!  
t]m cu/om] facility sav+s means a       
r$uction 9 electricity1 or natural gas  
consumption1 includ+ wa/e heat en]gy    
sav+s1 at a facility ( an electricity   
consum] s]v$ by a retail electricity    
suppli] or a natural gas consum] s]v$ by
 a natural gas suppli]1 z comp>$ to--   
7,a7 9 ! case ( new equipm5t t replaces 
exi/+ equipm5t ) rema9+ useful life--   
7i7 consumption ( ! exi/+ equipm5t = !  
rema9+ useful life ( ! equipm5t2 &  7ii7
 !reaft]1 consumption by new equipm5t ( 
av]age effici5cy ( ! same equipm5t type2
  7,b7 9 ! case ( new equipm5t o!r ?an  
new equipm5t describ$ 9 subp>agraph     
7,a71 consumption by new equipm5t (     

av]age effici5cy ( ! same equipm5t type2
  7,c7 9 ! case ( consumption1 o!r ?an  
consumption describ$ 9 subp>agraphs 7,a7
 & 7,b71 at an exi/+ facility1          
consumption at ! facility dur+ a base   
p]iod ( n less ?an #a ye>2 &  7,d7 9 !  
case ( consumption1 o!r ?an consumption 
describ$ 9 subp>agraphs 7,a7 & 7,b71 at 
a new facility1 consumption at a ref]5ce
 new facility ( av]age effici5cy = new  
facilities ( ! same type4  7#aj7        
,electricity sav+s ,! t]m electricity   
sav+s means r$uctions 9 electricity     
consumption or losses1 z det]m9$ 9      
accordance ) regulations promulgat$ by !
 ,secret>y1 t-- 7,a7 are a*iev$ ?r\gh   
measures implem5t$ aft] ! date (        
enactm5t ( ?is section2  7,b7 are       
additional to bus9ess-z-usual cu/om]    
pur*ase practices & di/ribution sy/em   
effici5cy2  7,c7 ! retail electricity   
suppli] claim+ or transf]r+ !           
electricity sav+s has play$ a           
significant role 9 a*iev+2  7,d7 occur 9
 ! s]vice t]ritory ( ! retail           

electricity suppli] claim+ or transf]r+ 
! electricity sav+s2 &  7,e7 are limit$ 
to-- 7i7 cu/om] facility sav+s (        
electricity1 adju/$ to reflect any      
associat$ increase 9 fuel consumption at
 ! facility2  7ii7 r$uctions 9          
di/ribution sy/em losses ( electricity  
a*iev$ by a retail electricity suppli]1 
z comp>$ to losses t w\ld occur ) new   
di/ribution sy/em equipm5t ( av]age     
effici5cy2  7iii7 ,,*p sav+s2  7iv7     
codes & /&>ds sav+s ( electricity2 &    
7v7 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 consum] 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+ net en]gy sav+s "u 
subp>agraph 7,a7-- 7i7 electricity      
consumption %all be evaluat$ bas$ on !  
av]age additional quantity ( fuel burn$ 

at p[] plants to supply ea* additional  
kil[att-h\r ( electricity consumption 9 
! region2  7ii7 electricity & natural   
gas consumption %all include losses 9 ! 
transmission & di/ribution sy/ems2 &    
7iii7 fuel-swit*+ t does n result 9 net 
co/ sav+s to ! consum] %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 or losses1 z det]m9$ 9      
accordance ) regulations promulgat$ by !
 ,secret>y1 t-- 7,a7 are a*iev$ ?r\gh   
measures implem5t$ aft] ! date (        
enactm5t ( ?is section2  7,b7 are       
additional to bus9ess-z-usual cu/om]    
pur*ase practices & di/ribution sy/em   
effici5cy2  7,c7 ! retail natural gas   
suppli] claim+ or transf]r+ ! natural   
gas sav+s has play$ a significant role 9
 a*iev+2  7,d7 occur 9 ! s]vice t]ritory
 ( ! retail natural gas suppli] claim+  
or transf]r+ ! natural gas sav+s2 &     
7,e7 are limit$ to-- 7i7 cu/om] facility
 sav+s ( natural gas1 adju/$ to reflect 
any associat$ increase 9 electricity    

consumption or consumption ( o!r fuels  
at ! facility2  7ii7 r$uctions 9        
leakage1 op]ational losses1 &           
consumption ( natural gas to op]ate a   
gas di/ribution sy/em1 a*iev$ 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  
7iii7 codes & /&>ds sav+s ( natural gas2
 &  7iv7 fuel-swit*+ en]gy sav+s t      
results 9 net sav+s ( natural gas4      
7#ac7 ,p]=mance /&>d ,! t]m p]=mance    
/&>d means a /&>d-- 7,a7 e/abli%$ = a   
cal5d> ye> = cumulative electricity     
sav+s or cumulative natural gas sav+s t 
is express$ z a p]c5tage ( base         
quantity2 &  7,b7 = ea* ( cal5d> ye>s   
#bjba ?r\gh #bjce1 t is label$ z        
cumulative electricity sav+s p]c5tage or
 cumulative natural gas sav+s1 z        
applicable1 9 ! table "u subsection     
7c77#b74  7#ad7 ,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#ae7 ,report+ p]iod ,!  
t]m report+ p]iod means-- 7,a7 cal5d>   
ye>s #bjba ?r\gh #bjbc2 &  7,b7 ea*     
successive #b-;cal5d>-ye> p]iod !reaft]4
  7#af7 ,retail electricity suppli]     
7,a7 ,9 g5]al ,! t]m retail electricity 
suppli] means1 = any cal5d> ye>1 an     
electric utility t deliv]$ n few] ?an   
#a1jjj1jjj megawatt h\rs ( electricity  
to electric consum]s = purposes o!r ?an 
resale dur+ ! prec$+ cal5d> ye>4  7,b7  
,inclusions & limitations ,= purposes ( 
det]m9+ :e!r an electric utility        
qualifies z a retail electricity suppli]
 "u subp>agraph 7,a7-- 7i7 deliv]ies by 
any affiliate ( ! electric utility to   
electric consum]s = purposes o!r ?an    
resale %all be consid]$ 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#ag7 ,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 ( #aigh71 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#ah7 ,/ate      
regulatory au?ority ,! t]m ,/ate        
regulatory au?ority means any ,/ate     

ag5cy :i* has ratemak+ au?ority )       
respect to-- 7,a7 ! sale ( natural gas  
by any gas utility 7o!r ?an by su* ,/ate
 ag5cy72 or  7,b7 ! sale ( electric     
en]gy by any electric utility 7o!r ?an  
su* ,/ate ag5cy71 & 9 ! case ( an       
electric utility ) respect to :i* !     
,t5nessee ,valley ,au?ority has ratemak+
 au?ority1 su* t]m means ! ,t5nessee    
,valley ,au?ority4  7#ai7 ,?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/itution1 or o!r comm]cial1  
indu/rial1 or nonpr(it entity t is      
capable ( provid+ electricity sav+s or  
natural gas sav+s 9 accordance )        
subsections 7d7 & 7e74  7#bj7 ,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 ,wa/e heat en]gy sav+s %all  
be includ$ z "p ( cu/om] facility sav+s4
  7b7 ,e/abli%m5t  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 e/abli%+     
measurem5t & v]ification proc$ures &    
/&>ds "u subsection 7e72  7,b7 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 7c72 &  
7ii7 e/imate ! impact ( ! p]=mance /&>ds
 on curr5t & future electricity &       
natural gas consumption 9 ! s]vice      
t]ritories ( ! suppli]s2 &  7,c7        
e/abli%+ requirem5ts gov]n+ applications
 =1 & implem5tation (1 ,/ate programs "u

 subsection 7g74  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   
7c7 ,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 
su* retail electricity suppli] has      
a*iev$ cumulative electricity sav+s     
7adju/$ to acc\nt = any attrition (     
sav+s f measures implem5t$ 9 prior ye>s7
 9 ea* cal5d> ye> ( su* report+ p]iod t 
are equal to or great] ?an ! applicable 
p]=mance /&>d2 &  7,b7 ea* retail       
natural gas suppli] %all submit to !    
,secret>y a report1 9 accordance )      
regulations promulgat$ by ! ,secret>y1  
demon/rat+ t ! retail natural gas       
suppli] has a*iev$ cumulative natural   

gas sav+s f measures 7adju/$ to acc\nt =
 any attrition ( sav+s measures         
implem5t$ 9 prior ye>s7 9 ea* cal5d> ye>
 ( su* report+ p]iod t are equal to or  
great] ?an ! applicable p]=mance /&>d4  
7#b7 ,p]=mance /&>ds = #bjba ?r\gh #bjce
 ,= ea* ( cal5d> ye>s #bjba ?r\gh #bjce1
 ! p]=mance /&>ds are z foll[s3 ,cal5d> 
,year,cumulative ,electricity ,sav+s    
,percentage,cumulative ,natural ,gas    
,sav+s ,p]c5tage#bjbaa4jjj4ejbjbb #b4jj 
#a4bebjbc #c4jj #b4jjbjbd #d4be         
#c4jjbjbe #e4ej #d4jjbjbf #g4jj         
#e4jjbjbg #h4ej #f4jjbjbh #aj4jj        
#g4jjbjbi #aa4ej #h4jjbjcj #ac4jj       
#i4jjbjca                               
#ad4geaj4jjbjcbaf4ejaa4jjbjccah4beab4jjb
jcdbj4jjac4jjbjcebb4jjad4jj  7#c7       
,subsequ5t ye>s  7,a7 ,cal5d> ye>s #bjcf
 ?r\gh #bjde ,n lat] ?an ,decemb] #ca1  
#bjcc1 ! ,secret>y %all promulgate      
regulations e/abli%+ p]=mance /&>ds =   
ea* ( cal5d> ye>s #bjcf ?r\gh #bjde4    
7,b7 ,subsequ5t ext5sions ,except z     
provid$ 9 subp>agraph 7,a71 n lat] ?an !

 la/ day ( ! 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 = ! 
#aj-;cal5d>-ye> p]iod foll[+ ! la/      
cal5d> ye> = :i* p]=mance /&>ds         
previ\sly 7 e/abli%$4  7,c7 ,requirem5ts
 ,! ,secret>y %all e/abli% p]=mance     
/&>ds "u ?is p>agraph at levels reflect+
 ! maximum a*ievable level (            
co/-effective en]gy effici5cy pot5tial1 
tak+ into acc\nt-- 7i7 co/-effective    
en]gy sav+s a*iev$ by lead+ retail      
electricity suppli]s & retail natural   
gas suppli]s2  7ii7 opportunities = new 
codes & /&>ds 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 a 
p]=mance /&>d e/abli%$ "u ?is p>agraph =
 any cal5d> ye> be less ?an ! applicable
 p]=mance /&>d = cal5d> ye> #bjce       
7includ+ any increase 9 ! /&>d = cal5d> 
ye> #bjce e/abli%$ pursuant to p>agraph 
7#d774  7#d7 ,midc\rse review & adju/m5t

 ( p]=mance /&>ds  7,a7 ,9 g5]al ,n lat]
 ?an ,decemb] #ca1 #bjbi1 & at #aj-ye>  
int]vals !reaft]1 ! ,secret>y %all-- 7i7
 review ! mo/ rec5t p]=mance /&>ds      
e/abli%$ "u p>agraph 7#b7 or 7#c72 &    
7ii7 increase ! p]=mance /&>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 p]=mance /&>ds "u ?is 
p>agraph1 ! regulations %all provide    
adequate lead "t to ensure t compliance 
) ! increas$ p]=mance /&>ds is feasible4
  7#e7 ,delay ( submission = fir/       
report+ p]iod  7,a7 ,9 g5]al ,not)/&+   
p>agraphs 7#a7 & 7#b71 = ! fir/ 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 ( ! second report+ p]iod4  7#f7     
,apply+ unus$ sav+s to future ye>s ,if  
electricity sav+s or natural gas sav+s  
a*iev$ by a retail electricity suppli]  
or retail natural gas suppli] 9 a ye>   
exce$ ! applicable p]=mance /&>d        
specifi$ "u ?is subsection1 any sav+s 9 
excess ( ! p]=mance /&>d may be appli$  
t[>d p]=mance /&>ds specifi$ = any ( !  
#b imm$iately subsequ5t compliance ye>s4
  7d7 ,transf]s ( electricity or natural
 gas sav+s  7#a7 ,bilat]al contracts =  
sav+s transf]s ,subject to ! limitations
 ( ?is subsection1 a retail electricity 
suppli] or retail natural gas suppli]   
may use electricity sav+s or natural gas
 sav+s pur*as$ 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 7c74  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 7e72   
7,b7 report$ 9 accordance ) subsection  
7c72 &  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 subsection4  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 7c7 t may  
be met us+ electricity sav+s or natural 
gas sav+s t are pur*as$ "u ?is          
subsection4  7e7 ,evaluation1           
measurem5t1 & v]ification ( sav+s  7#a7 
,regulations ,! regulations promulgat$  
pursuant to subsection 7b7 %all-- 7,a7  
be bas$ on-- 7i7 ! ,uni=m ,me?ods       
,project ( ! ,dep>tm5t ( ,en]gy2  7ii7 !
 ,national ,/&>d ,practice ,manual =    
,assess+ ! ,co/-,effectiv5ess ( ,en]gy  
,effici5cy ,res\rces1 develop$ by !     
,national ,effici5cy ,scre5+ ,project2 &
  7iii7 o!r be/ practices recogniz$ 9 ! 
en]gy effici5cy indu/ry2 &  7,b7        

include-- 7i7 proc$ures & /&>ds =       
evaluat+1 measur+1 & v]ify+ electricity 
sav+s & natural gas sav+s t c\nt t[>ds !
 p]=mance /&>ds e/abli%$ "u subsection  
7c7 t-- 7,i7 specify ! types ( en]gy    
effici5cy & en]gy cons]vation measures t
 may be c\nt$2  7,,ii7 require t en]gy  
consumption e/imates = cu/om] facilities
 or portions ( facilities 9 ! applicable
 base & curr5t ye>s be adju/$1 z        
appropriate1 to acc\nt = *anges 9 wea!r1
 level ( production1 & build+ area2     
7,,iii7 d n prev5t ov]all load gr[? due 
to b5eficial electrification2  7,,iv7   
acc\nt = ! useful life ( en]gy effici5cy
 & en]gy cons]vation measures2  7,v7    
all[ = sav+s f a program to be e/imat$  
bas$ on extrapolation f a repres5tative 
sample ( p>ticipat+ cu/om]s2  7,,vi7    
include proc$ures = calculat+ & docum5t+
 ,,*p sav+s1 fuel-swit*+ en]gy sav+s1 & 
wa/e heat en]gy sav+s2  7,,vii7 e/abli% 
me?ods = calculat+ codes & /&>ds en]gy  
sav+s1 includ+-- 7aa7 ! use ( v]ifi$    
compliance rates2  7bb7 requir+ t !     

basel9e = calculat+ sav+s f build+ en]gy
 codes %all be ! m /r+5t (-- 7,,aa7 !   
#bjah ,int]national ,en]gy ,cons]vation 
,code = resid5tial build+s1 or !        
,,a%rae_/,,ansi_/ ,,iesna ,/&>d         
#ij4a-bjaf = comm]cial build+s2 or      
7,,bb7 ! applicable ,/ate build+ code 9 
effect on ! date ( enactm5t ( ?is       
section2 &  7cc7 requir+ t ! basel9e =  
calculat+ sav+s f appliance & equipm5t  
/&>ds %all be ! av]age effici5cy ( new  
appliances & equipm5t 9 ! applicable "o 
or m categories prior to ! adoption &   
implem5tation ( ! new /&>d2  7,,viii7   
include proc$ures = calculat+ &         
docum5t+-- 7aa7 cu/om] facility sav+s & 
r$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 ( #bjjg2 & 
7bb7 r$uctions 9 natural gas di/ribution
 sy/em losses attributable to pipel9e   
repair & replacem5t programs2  7,,ix7   
c\nt only measures & sav+s t are        

additional to bus9ess-z-usual cu/om]    
pur*ase practices2  7,x7 ensure t !     
retail electricity suppli] or retail    
natural gas suppli] claim+ ! electricity
 sav+s or natural gas sav+s1 includ+    
,/ate & local codes & /&>ds sav+s1 has  
play$ a significant role 9 a*iev+ !     
sav+s 7includ+ ?r\gh ! activities ( a   
designat$ ag5t ( ! suppli]72  7,,xi7    
avoid d\ble-c\nt+ ( sav+s us$ =         
compliance ) ?is section1 includ+       
transf]r$ sav+s2  7,,xii7 include       
electricity sav+s or natural gas sav+s f
 programs adm9i/]$ by retail electricity
 suppli]s or natural gas suppli]s t are 
fund$ by ,f$]al1 ,/ate1 or o!r s\rces1  
unless ! fund+ s\rce specifies o!rwise2 
7,,xiii7 cr$it l>ge cu/om] self-direct$ 
electricity sav+s or natural gas sav+s  
to ! retail electricity suppli] or      
retail natural gas suppli] if ! l>ge    
cu/om] receives inc5tives or rate       
r$uctions f ! retail electricity suppli]
 or retail natural gas suppli] =        
self-direct$ en]gy effici5cy            

improvem5ts2  7,,xiv7 include guidance1 
z appropriate1 = additional alt]native  
approa*es to evaluate electricity sav+s 
& natural gas sav+s = l>ge comm]cial &  
indu/rial cu/om]s 9 en]gy-int5sive      
indu/ries t are subject to int]national 
competition2  7,,xv7 include proc$ures =
 c\nt+ electricity sav+s & natural gas  
sav+s a*iev$ by sol> heat+ & cool+      
te*nologies1 sol> light pipe te*nology1 
geo!rmal heat pumps1 & o!r te*nologies  
utiliz+ r5ewable res\rces t d n produce 
electricity or gase\s fuel & r$uce      
on-site en]gy consumption2  7,,xvi7     
include proc$ures = c\nt+ electricity   
sav+s & natural gas sav+s a*iev$ by     
wea!rization measures1 su* z in/all+    
me*anical insulation1 repair+ or replac+
 heat+ & cool+ sy/ems1 repair+ or       
replac+ w9d[s & doors1 p]=m+ air seal+1 
& replac+ lights & appliances ) m en]gy 
effici5t models2  7,,xvii7 include      
proc$ures = c\nt+ electricity sav+s &   
natural gas sav+s a*iev$ f increas$     
utilization ( me*anical insulation =    

new1 retr(it1 & ma9t5ance con/ruction = 
comm]cial1 indu/rial1 public1 & nonpr(it
 build+s & facilities2  7,,xviii7 9 any 
,/ate 9 :i* ! ,/ate regulatory au?ority 
has designat$ #a 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$ proportionally among retail   
electricity suppli]s & retail natural   
gas suppli]s2  7,,xix7 include guidance 
= retail electricity suppli]s & retail  
natural gas suppli]s to calculate &     
docum5t bus9ess-z-usual consumption     
projections2  7,,xx7 include guidance = 
e/imat+ sav+s us+ in=mation f ! database
 e/abli%$ "u p>agraph 7#c7 bas$ on      
simil> measures & programs 9 o!r sett+s 
) appropriate adju/m5ts1 z necess>y2 &  
7,,xxi7 incorporate advances 9 ! sci5ce 
( policy evaluation1 su* z ! use (--    
7aa7 r&omiz$ control trials2  7bb7 o!r  
exp]im5tal & quasi-exp]im5tal approa*es2

 &  7cc7 l>ge data sets & ma*9e le>n+   
te*niques2 &  7ii7 proc$ures & /&>ds =  
?ird-p>ty v]ification ( report$         
electricity sav+s or natural gas sav+s4 
7#b7 ,national ,academy ( ,sci5ces /udy 
,n lat] ?an #ahj days aft] ! date (     
enactm5t ( ?is section1 ! ,secret>y %all
 (f] to ent] into an agreem5t ) !       
,national ,academy ( ,sci5ces1 "u :i* ! 
,academy %all-- 7,a7 evaluate exi/+     
/ate-(-!-art me?ods = evaluat+ en]gy    
effici5cy policies & measures2  7,b7    
id5tify approa*es 9 program evaluation  
lit]ature t may be br\ght into ! en]gy  
effici5cy doma91 includ+-- 7i7 r&omiz$  
control trials & o!r exp]im5tal or      
quasi-exp]im5tal approa*es2  7ii7       
control ( conf\nd+ factors2  7iii7      
longitud9al /udies2  7iv7 assessm5ts by 
neutral arbit]s2 &  7v7 disclosure (    
data = replication2 &  7,c7 n lat] ?an  
#ah mon?s aft] ! date ( enactm5t ( ?is  
section1 publi% a report t includes--   
7i7 a description ( ! evaluation "u     
subp>agraph 7,a72  7ii7 a description ( 

! approa*es id5tifi$ "u subp>agraph     
7,b72 &  7iii7 recomm5dations = advanc+ 
& adopt+ rigor\s /ate-(-!-art me?ods =  
evaluat+ en]gy effici5cy policies &     
measures4  7#c7 ,en]gy effici5cy program
 evaluation database  7,a7 ,9 g5]al ,!  
,secret>y %all e/abli% & ma9ta9 a       
se>*able public database1 accessible on 
! website ( ! ,dep>tm5t ( ,en]gy1 t     
conta9s a li/ ( r&omiz$ control trials &
 o!r exp]im5tal or quasi-exp]im5tal     
evaluations ( en]gy effici5cy programs4 
7,b7 ,requirem5ts ,ea* trial or         
evaluation on ! li/ describ$ 9          
subp>agraph 7,a7 %all include1 at a     
m9imum-- 7i7 ! ,/ate 9 :i* ! trial or   
evaluation 0 conduct$2  7ii7 ! type (   
trial or evaluation conduct$2  7iii7 !  
type ( program evaluat$2  7iv7 an       
ab/ract or summ>y ( ! program evaluat$2 
7v7 a summ>y ( ! trial or evaluation    
me?odology2  7vi7 ! reveal$ en]gy sav+s 
f ! trial or evaluation2 &  7vii7 to !  
ext5t practicable1 ! und]ly+ data us$ to
 conduct ! trial or evaluation4  7f7    

,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 7c7 to
 v]ify t ! applicable p]=mance /&>ds "u 
subsection 7c7 h be5 met4  7,b7         
,exclusion ,9 det]m9+ compliance ) !    
applicable p]=mance /&>ds "u subsection 
7c71 ! ,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 ?is section4  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 7c71 or to pay to ! ,/ate
 an applicable alt]native compliance    
paym5t "u subsection 7g71 ! ,secret>y   
%all assess aga9/ ! retail electricity  
suppli] or retail natural gas suppli] a 
civil p5alty 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        
p]=mance /&>d e/abli%$ "u ?is section2 &
  7,b7 is m /r+5t ?an ! applicable      
p]=mance /&>d "u subsection 7c74  7#d7  
,use ( paym5ts  7,a7 ,def9ition ( cov]$ 
rate ,9 ?is p>agraph1 ! t]m cov]$ rate  

means ! proportion t-- 7i7 ! am\nt (    
p5alty paym5ts made by retail           
electricity suppli]s & natural gas      
suppli]s 9 a ,/ate "u p>agraph 7#b72    
be>s to  7ii7 ! total am\nt ( p5alty    
paym5ts collect$ by ! ,secret>y "u t    
p>agraph4  7,b7 ,use ( paym5ts ,p5alty  
paym5ts collect$ "u p>agraph 7#b7 by !  
,secret>y %all be-- 7i7 provid$ to ea*  
,/ate at ! cov]$ rate = ! ,/ate2 &  7ii7
 us$ by ! ,/ate to implem5t             
co/-effective en]gy effici5cy programs  
t-- 7,i7 to ! maximum ext5t practicable1
 a*ieve electricity sav+s & natural gas 
sav+s 9 ! ,/ate suffici5t to make up !  
deficit associat$ ) ! p5alty paym5ts2 & 
7,,ii7 are measur$ & v]ifi$ 9 accordance
 ) ! applicable proc$ures & /&>ds       
e/abli%$ "u subsection 7e74  7#e7       
,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 ,act4   
7#f7 ,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 ,act4  7,b7      
,ref]5ce ,9 ?is p>agraph1 ref]5ces to a 
rule 9 section #ccf7;b7 ( ! ,en]gy      
,policy & ,cons]vation ,act %all be     
consid]$ to ref] also to all o!r f9al   
actions ( ! ,secret>y "u ?is section o!r
 ?an ! assessm5t ( a civil p5alty4  7g7 
,/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 au?orize ! 
,/ate to implem5t a ,/ate en]gy         
effici5cy program 9 lieu ( ! ,f$]al     
program e/abli%$ "u subsection 7b7 if ! 
,secret>y det]m9es t ! requirem5ts ( su*
 ,/ate program meet or exce$ !          
requirem5ts ( su* ,f$]al program1       
includ+-- 7,a7 a*iev+ electricity sav+s 
& natural gas sav+s t are equal to or   
great] ?an sav+s requir$ "u ! applicable

 p]=mance /&>ds e/abli%$ "u subsection  
7c72  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 if
 applicable1 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>y "u ?is           
subsection1 ! ,secret>y aft] public     
notice & opportunity = comm5t %all      
det]m9e :e!r to approve or disapprove   
su* application4  7#c7 ,alt]native      
measurem5t & v]ification proc$ures &    
/&>ds ,z "p ( an application pursuant to
 p>agraph 7#a71 a ,/ate may reque/ to   
use alt]native measurem5t & v]ification 
proc$ures & /&>ds f ! proc$ures & /&>ds 
describ$ 9 subsection 7e71 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 7e74  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 ,may #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$$ to make up any deficit 9     
a*iev+ electricity sav+s t w\ld o!rwise 
be requir$ "u ! applicable p]=mance /&>d
 e/abli%$ "u subsection 7c72 or  7ii7 #e
 p] million ,btu ( natural gas sav+s    
ne$$ to make up any deficit 9 a*iev+    
natural gas sav+s t w\ld o!rwise be     
requir$ "u ! applicable p]=mance /&>d   
e/abli%$ "u subsection 7c74  7,b7 ,use (
 paym5ts ,alt]native compliance paym5ts 
collect$ by a ,/ate "u subp>agraph 7,a7 

%all be us$ by ! ,/ate to implem5t !    
,/ate program au?oriz$ "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$ures & /&>ds "u     
subsection 7e7 or p>agraph 7#c71 z      
applicable4  7#e7 ,review ( ,/ate       
program  7,a7 ,p]iodic review ,e #b     
ye>s1 ! ,secret>y %all review ,/ate     
programs au?oriz$ "u ?is section 9      
approximately #ab ( ! ,/ates ) su*      
au?oriz$ ,/ate programs1 s t ea* su*    
,/ate program %all be review$ at lea/ e 
#d ye>s4  7,b7 ,report ,to facilitate   
review "u subp>agraph 7,a71 ! ,secret>y 
may require a ,/ate to submit a report  
demon/rat+ ! ,/ate program au?oriz$ "u  
?is section meets ! requirem5ts ( ?is   
section1 includ+-- 7i7 reports submitt$ 
by retail electricity suppli]s & retail 

natural gas suppli]s to ! ,/ate         
demon/rat+ compliance ) applicable      
requirem5ts2  7ii7 ! impact ( applicable
 requirem5ts 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 
defici5cies ( a ,/ate program au?oriz$  
"u ?is section1 ! ,secret>y %all        
promptly re-review ! ,/ate program4     
7,d7 ,defici5cies  7i7 ,9 g5]al ,9      
complet+ a review ( a ,/ate program     
au?oriz$ "u ?is section1 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 program #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?orization = ! ,/ate to      
implem5t a ,/ate program "u ?is section4
  7#f7 ,calls = revision ( ,/ate        
applications ,z a condition ( ma9ta9+ ! 
au?orization to implem5t a ,/ate program
 "u ?is section1 ! ,secret>y may require
 ! ,/ate to submit a revis$ application 
"u p>agraph 7#a7 if ! ,secret>y has--   
7,a7 e/abli%$ new or revis$ p]=mance    
/&>ds "u subsection 7c72  7,b7          
promulgat$ new or sub/antially revis$   
measurem5t & v]ification proc$ures &    
/&>ds "u subsection 7e72 or  7,c7       

o!rwise sub/antially revis$ ! ,f$]al    
program e/abli%$ "u ?is section4  7h7   
,in=mation & reports ,9 accordance )    
section #ac ( ! ,f$]al ,en]gy           
,adm9i/ration ,act ( #aigd1 ! ,secret>y 
may require any retail electricity      
suppli]1 retail natural gas suppli]1    
?ird-p>ty effici5cy provid]1 or any o!r 
entity t ! ,secret>y det]m9es           
appropriate1 to provide any in=mation ! 
,secret>y det]m9es appropriate to c>ry  
out ?is section4  7i7 ,co/ recov]y1 fix$
 co/ recov]y1 & %>ehold] inc5tives ,ea* 
,/ate regulatory au?ority is enc\rag$ to
 review ! rules & regulations ( ! ,/ate 
regulatory au?ority to ensure t         
utilities "u its jurisdiction 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  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* ! ,national  
,academy ( ,sci5ces %all1 n lat] ?an    
,july #a1 #bjbe1 & e #aj ye>s !reaft]1  
submit to ,congress1 ! ,f$]al ,en]gy    
,regulatory ,commission1 & ! ,secret>y (
 ,en]gy a compreh5sive evaluation ( !   
implem5tation 7includ+ outcomes7 (      
sections #faj & #faa ( ! ,public        
,utility ,regulatory ,policies ,act (   
#aigh 7z add$ by ?is ,act71 includ+--   
7#a7 an evaluation ( ! effectiv5ess (   
implem5tation ( su* sections1 includ+ ! 

specific design elem5ts us$ 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 (   
implem5tation ( su* sections on !       
reliability ( electricity & natural gas 
supply2  7#d7 ! net b5efits or co/s ( ! 
implem5tation ( su* sections 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;c7 ( ! ,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        
r$uctions 9 ! project$ am\nt (          
electricity & natural gas deliv]$ by    
retail electricity suppli]s & retail    
natural gas suppli]s1 r ?an on measur$ &
 v]ifi$ electricity sav+s & natural gas 
sav+s2 &  7#g7 recomm5dations reg>d+    
pot5tial *anges to implem5t+ su*        
sections1 includ+ *anges to regulations 
& proc$ures1 or to relat$ public        
policies4  7b7 ,recomm5dations to       
,congress ,n lat] ?an ,janu>y #a1 #bjbf1
 & 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          
implem5tation ( sections #faj & #faa ( !
 ,public ,utility ,regulatory ,policies 
,act ( #aigh 7z add$ by ?is ,act71      
includ+ an explanation ( !              
inconsi/5cies1 if any1 betwe5 !         
recomm5dations ( ! ,secret>y ( ,en]gy & 
! recomm5dations includ$ 9 ! mo/ rec5t  
evaluation by ! ,national ,academy (    
,sci5ces "u subsection 7a74  #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