,,ii  #aah? ,,congress  #b;d ,session   
,s4 #eceb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #bj1 #bjbd,mr4
 ,wel* 7= himself & ,mr4 ,van ,holl57   
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$]al r5ewable electricity   
/&>d = retail electricity suppli]s1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,am]ican ,r5ewable     
,en]gy ,act ( #bjbd4  #b4 ,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 & 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,d7  
:5 deploy$1 w significantly r$uce &     
elim9ate ! emission ( h>mful gre5h\se   
gases & crit]ia pollutants1 :i* h       
hi/orically be5 conc5trat$ 9 und]s]v$   
communities & communities ( color1      
contribut+ to disproportionate burd5s & 
environm5tal inju/ices4  #c4 ,f$]al     
r5ewable electricity /&>d  7a7 ,9 g5]al 
,title ,,vi ( ! ,public ,utility        
,regulatory ,policies ,act ( #aigh      
7,public ,law #ie-fag2 #ib ,/at4 #cafd7 
is am5d$ by add+ at ! end ! foll[+3     
#faj4 ,f$]al r5ewable electricity /&>d  
7a7 ,def9itions ,9 ?is section3 7#a7    
,base quantity ( electricity ,! t]m base
 quantity ( electricity means ! total   
quantity ( electricity1 express$ 9      
megawatt h\rs1 sold by a retail         
electricity suppli] to electric consum]s
 dur+ ! relevant cal5d> ye>1 exclud+    

electricity g5]at$ by a hydroelectric   
facility 7o!r ?an qualifi$ hydrop[]74   
7#b7 ,crit]ia air pollutant ,! t]m      
crit]ia air pollutant means an air      
pollutant = :i* a national ambi5t air   
quality /&>d has be5 promulgat$ "u      
section #aji ( ! ,clean ,air ,act 7#db  
,u4,s4,c4 #gdji74  7#c7 ,di/ribut$      
g5]ation ,! t]m di/ribut$ g5]ation means
 a nonc5traliz$ r5ewable en]gy res\rce  
in/allation1 or int]connect$ s]ies (    
in/allations1 t g5]ates electricity ne> 
! po9t ( use ) a total g5]at+ capacity (
 #a megawatt or less4  7#d7             
,environm5tal ju/ice community  7,a7 ,9 
g5]al ,! t]m environm5tal ju/ice        
community means a l[-income or l[-weal? 
community t is impact$ by environm5tal  
inju/ice4  7,b7 ,inclusions ,! t]m      
environm5tal ju/ice community includes  
any community t-- 7i7 is locat$ ne>e/ to
 an exi/+ area ( significant            
environm5tal pollution & degradation2   
7ii7 be>s a burd5 ( negative public     
heal? effects f pollution2  7iii7       

includes #a or m sites (-- 7,i7 a       
facility t is a "p ( a pollut+ indu/ry2 
7,,ii7 a wa/e dump2 or  7,,iii7 a       
facility = fossil res\rce extraction2   
7iv7 exp]i5ces a high incid5ce ( climate
 *ange impacts & disa/]s2  7v7 has be5  
exclud$ or h>m$ by raci/ or             
discrim9atory policies t h result$ 9    
disproportionate burd5s ( environm5tal  
pollution & relat$ heal? & socioeconomic
 disp>ities2  7vi7 has a l&-bas$ or food
 subsi/5ce culture t is exp]i5c+        
ecosy/em disruption & deva/ation2  7vii7
 faces relocation & resettlem5t result+ 
f-- 7,i7 climate *ange2 or  7,,ii7      
impacts to ! environm5t & ecosy/ems2 or 
7viii7 is an ,indig5\s community4  7#e7 
,f$]al r5ewable electricity cr$it ,! t]m
 ,f$]al r5ewable electricity cr$it means
 a cr$it t-- 7,a7 repres5ts1 = purposes 
( compliance ) ?is section1 #a megawatt 
h\r ( r5ewable electricity2 &  7,b7 is  
issu$ pursuant to subsection 7e74  7#f7 
,impact$ community  7,a7 ,9 g5]al ,! t]m
 impact$ community means a community t  

is h>m$ by environm5tal1 economic1 or   
socioeconomic inju/ice4  7,b7           
,inclusions ,! t]m impact$ community    
includes-- 7i7 an environm5tal ju/ice   
community2 &  7ii7 a community t-- 7,i7 
has a high conc5tration ( l[-income &   
l[-weal? h\seholds1 includ+ h\seholds   
compos$ prim>ily ( memb]s ( gr\ps t h   
hi/orically exp]i5c$ discrim9ation on ! 
basis ( race1 g5d]1 national orig91 or  
e?nicity 7includ+ ,black1 ,indig5\s1    
,lat9x1 ,arab1 ,asian1 & ,pacific ,isl&]
 communities72  7,,ii7 has exp]i5c$ or  
is exp]i5c+ economic transition1        
de9du/rialization1 hi/oric und]9ve/m5t1 
& pov]ty2 or  7,,iii7 has high          
unemploym5t due to-- 7aa7 a significant 
decl9e 9 coal m9+ activity2 or  7bb7 !  
closure ( a coal-fir$ p[] plant4  7#g7  
,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 #afjb777 t is recogniz$ z
 eligible = ! special programs & s]vices
 provid$ by ! ,unit$ ,/ates to ,indians 
because ( _! /atus z ,indians4  7#h7    
,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#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    
,biogas d]iv$ f-- 7i7 ana]obic dige/ion 
at wa/ewat] treatm5t facilities2 or     
7ii7 f>m ana]obic dige/ion4  7,e7       
,qualifi$ hydrop[]4  7,f7 ,m>9e en]gy 7z
 def9$ 9 section #fcb ( ! ,en]gy        
,indep5d5ce & ,security ,act ( #bjjg    
7#db ,u4,s4,c4 #agbaa774  7#aa7 ,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 affiliate1 :5 us$ 9     
relation to an electric utility1 means  
any p]son t directly or indirectly owns 
or controls1 is own$ or controll$ by1 or
 is "u common own]%ip or control )1 t   
electric utility1 z det]m9$ "u          
regulations promulgat$ by ! ,commission4
  7#ab7 ,retire & retirem5t ,! t]ms     
retire & retirem5t1 ) respect to a      
,f$]al r5ewable electricity cr$it1 mean 

to disqualify ! cr$it = any subsequ5t   
use "u ?is section1 reg>dless ( :e!r !  
use is a sale1 transf]1 ex*ange1 or     
submission 9 satisfaction ( a compliance
 obligation4  7b7 ,annual compliance    
obligation  7#a7 ,9 g5]al ,except z     
o!rwise provid$ 9 subsection 7f71 = ea* 
( cal5d> ye>s #bjbe ?r\gh #bjcd1 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  7#b7 ,equity
 requirem5ts  7,a7 ,di/ribut$ g5]ation  
,! ,commission %all require t1 ( !      
quantity ( ,f$]al r5ewable electricity  
cr$its requir$ to be submitt$ by a      
retail electricity suppli] to comply )  
p>agraph 7#a7-- 7i7 = ! p]iod ( cal5d>  
ye>s #bjbe ?r\gh #bjbh1 at lea/ #ae     
p]c5t ( ^? ,f$]al r5ewable electricity  
cr$its repres5t megawatt h\rs ( r5ewable

 electricity g5]at$ by di/ribut$        
g5]ation2 &  7ii7 = ! p]iod ( cal5d>    
ye>s #bjbi ?r\gh #bjcd1 at lea/ #bj     
p]c5t ( ^? ,f$]al r5ewable electricity  
cr$its repres5t megawatt h\rs ( r5ewable
 electricity g5]at$ by di/ribut$        
g5]ation4  7,b7 ,impact$ communities ,! 
,commission %all require t1 ( ! quantity
 ( ,f$]al r5ewable electricity cr$its   
requir$ to be submitt$ by a retail      
electricity suppli] to comply ) p>agraph
 7#a7-- 7i7 = ! p]iod ( cal5d> ye>s     
#bjbe ?r\gh #bjbh1 at lea/ #ae p]c5t (  
^? ,f$]al r5ewable electricity cr$its   
repres5t megawatt h\rs ( r5ewable       
electricity g5]at$ 9 impact$            
communities2 &  7ii7 = ! p]iod ( cal5d> 
ye>s #bjbi ?r\gh #bjcd1 at lea/ #bj     
p]c5t ( ^? ,f$]al r5ewable electricity  
cr$its repres5t megawatt h\rs ( r5ewable
 electricity g5]at$ 9 impact$           
communities4  7,c7 ,di/ribut$ g5]ation  
occurr+ 9 an impact$ community ,= any   
cal5d> ye>1 di/ribut$ g5]ation t occurs 
9 an impact$ community may be us$ =     

purposes ( comply+ ) bo? subp>agraph    
7,a7 & subp>agraph 7,b74  7c7           
,regulations  7#a7 ,9 g5]al ,n lat] ?an 
,janu>y #a1 #bjbf1 ! ,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   
design & implem5t ^? regulations 9 a    
mann] t seeks to be equitable & j2  7,d7
 id5tify & prioritize measures to       
maximize r$uctions ( emissions (        
gre5h\se gases & crit]ia air pollutants 
9 impact$ communities2  7,e7 ensure t   
activities und]tak5 to comply ) ^?      
regulations result 9 a net decrease 9   
emissions ( crit]ia air pollutants 9    
impact$ communities2  7,f7 ensure t !   
deploym5t ( any new r5ewable electricity

 g5]ation provides economic1 heal?1 &   
resili5cy b5efits to ! communities &    
areas 9 :i* ! applicable g5]ation       
facility or res\rce is built or in/all$1
 includ+ ?r\gh ! use ( community b5efit 
agreem5ts or equival5t means z det]m9$  
appropriate by ! ,commission2  7,g7     
prioritize measures t w inc5tivize or   
all[ = di/ribut$1 community1 & public   
own]%ip ov] r5ewable en]gy projects2    
7,h7 e/abli% & delegate to an           
appropriate entity ! adm9i/ration ( a   
national ,f$]al r5ewable electricity    
cr$it trad+ m>ket = ! issuance & trade (
 ,f$]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,i7 e/abli% & delegate to     
appropriate entities ! adm9i/ration ( n 
few] ?an #f regional1                   
geographically-bas$1 ,f$]al r5ewable    
electricity cr$it trad+ m>kets1 &       
det]m9e ! optimal levels ( cr$it trad+  
all[$ )9 & betwe5 regions to maximize   

deploym5t ( new r5ewable electricity    
g5]ation )9 ea* region2  7,j7 coop]ate )
 ,/ates & ,indian ,tribes-- 7i7 to      
facilitate coord9ation betwe5 ,/ate1    
,tribal1 & ,f$]al r5ewable electricity  
programs2 &  7ii7 to m9imize            
adm9i/rative burd5s & co/s to retail    
electricity suppli]s2 &  7,k7 enc\rage  
/rategic deploym5t ( di/ribut$ g5]ation 
to maximize sy/em b5efits t c l[] co/s =
 all cu/om]s1 includ+ sit+ g5]ation     
res\rces 9 grid-con/ra9$ areas &        
colocation ( r5ewable en]gy res\rces )  
en]gy /orage4  7d7 ,annual compliance   
requirem5t  7#a7 ,annual t>gets ,= ea*  
cal5d> ye>1 ! 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#b7 or 7#c71 z applicable2 
&  7,b7 ! base quantity ( electricity ( 
t retail electricity suppli] = t cal5d> 
ye>4  7#b7 ,requir$ annual p]c5tage =   
cal5d> ye>s #bjbe ?r\gh #bjcd ,= ea* (  

cal5d> ye>s #bjbe ?r\gh #bjcd1 ! requir$
 annual p]c5tage %all be z foll[s3      
,requir$                                
annual,year3p]c5tage3#bjbebj4jbjbfbd4ebj
bgbi4jbjbhcd4jbjbici4jbjcjde4jbjcaea4jbj
cbeg4jbjccfc4ebjcdgj4j4  7#c7 ,requir$  
annual p]c5tage = subsequ5t cal5d> ye>s 
7,a7 ,cal5d> ye>s #bjce ?r\gh #bjdd ,n  
lat] ?an ,decemb] #ca1 #bjcd1 !         
,commission %all promulgate regulations 
e/abli%+ requir$ annual p]c5tages = ea* 
( cal5d> ye>s #bjce ?r\gh #bjdd4  7,b7  
,increase ,except at provid$ 9          
subp>agraph 7,c71 = ea* ( cal5d> ye>s   
#bjce ?r\gh #bjdd1 ! requir$ annual     
p]c5tage %all be equal to ! sum obta9$  
by add+-- 7i7 ! requir$ annual p]c5tage 
= ! previ\s cal5d> ye>2 &  7ii7 #c      
p]c5tage po9ts4  7,c7 ,feasibility  7i7 
,adju/m5t ,subject to clause 7ii71 = any
 ( cal5d> ye>s #bjce ?r\gh #bjdd1 !     
,commission may increase or decrease !  
#c p]c5tage po9t increase requir$ "u    
subp>agraph 7,b7 if ! ,commission       
det]m9es necess>y bas$ on te*nical &    

economic feasibility /udies or o!r      
equival5t means4  7ii7 ,requirem5t ,=   
ea* ( cal5d> ye>s #bjce ?r\gh #bjdd1 !  
p]c5tage po9t increase requir$ "u ?is   
p>agraph = ! requir$ annual p]c5tage    
%all be great] ?an z]o4  7,d7 ,m9imum   
p]c5tage ,9 no case %all ! requir$      
annual p]c5tage = any cal5d> ye> aft]   
cal5d> ye> #bjce be less ?an ! requir$  
annual p]c5tage = cal5d> ye> #bjce4  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#e71 ! ,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 #bjbd4  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 entity7-- 7i7 !      
,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 ! 
,commission2 &  7ii7 = 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 subject to ! condition t 
n m ?an #a ,f$]al r5ewable electricity  
cr$it %all be issu$ = any #a megawatt   

h\r ( electricity4  7,b7 ,/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 #a 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$its bas$ 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 ! capacity  
additions describ$ 9 subsection 7a77#h72
 &  7,b7 us+ ! same wat] fl[ in=mation  
us$ to det]m9e a hi/oric av]age annual  
g5]ation basel9e = ! applicable         
hydroelectric facility1 z c]tifi$ by !  
,commission4  7#e7 ,cr$its bas$ on f>m  
ana]obic dige/ion ,= any cal5d> ye>1 a  
g5]ator may only receive ,f$]al r5ewable
 electricity cr$its = r5ewable          
electricity g5]at$ f biogas t is d]iv$ f
 f>m ana]obic dige/ion if-- 7,a7 any    
manure us$ = t ana]obic dige/ion is f a 
f>m t only provides its manure =        
ana]obic dige/ion to #a ana]obic dige/] 
sy/em2  7,b7 ! ana]obic dige/] sy/em us$
 by t g5]ator has a capacity ( less ?an1
 or equal to1 #a megawatt2 &  7,c7 dur+ 
t cal5d> ye>1 ! total r5ewable          
electricity produc$ f biogas d]iv$ f f>m
 ana]obic dige/ion 9 ! applicable ,/ate 
repres5ts n m ?an #aj p]c5t ( ! total   
electricity usage 9 ! ,/ate4  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 
res\rce t is n a r5ewable en]gy res\rce1
 ! ,commission %all issue ,f$]al        
r5ewable electricity cr$its bas$ on !   
proportion t-- 7,a7 ! electricity g5]at$
 t is attributable to ! r5ewable en]gy  
res\rce2 be>s to  7,b7 ! total          
electricity g5]at$4  7#g7 ,prohibition  
aga9/ d\ble-c\nt+ ,! ,commission %all   
ensure t-- 7,a7 no ,f$]al r5ewable      
electricity cr$it is us$ m ?an once =   
compliance ) ?is section2 &  7,b7 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 =-- 7i7 ! compliance  

ye> = :i* ! cr$it 0 issu$2 or  7ii7 !   
fir/ or second compliance ye> !reaft]4  
7,b7 ,retirem5t ,! ,commission %all     
retire any ,f$]al r5ewable electricity  
cr$it t has n be5 retir$ by ,april #b ( 
! cal5d> ye> t is #b 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$it1 :e!r 9 satisfaction ( a
 compliance obligation "u subsection 7b7
 or = ano!r reason4  7f7 ,alt]native    
compliance paym5ts  7#a7 ,9 g5]al ,a    
retail electricity suppli] may satisfy !
 requirem5ts ( subsection 7b7 9 :ole or 
9 "p by submitt+1 9 accordance ) ?is    
subsection1 9 lieu ( a ,f$]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> aft] cal5d> ye> 
#bjbd1 9 accordance ) regulations       
promulgat$ by ! ,commission4  7#b7      
,paym5t to ,/ate funds  7,a7 ,9 g5]al   

,except z provid$ 9 subp>agraph 7,b71   
paym5ts made "u ?is subsection %all be  
made directly to ! #a or m ,/ates 9 :i* 
! applicable retail electricity suppli] 
sells electricity1 subject to !         
conditions t-- 7i7 ! am\nt ( ea* paym5t 
%all be bas$ on ! proportion t-- 7,i7 ! 
portion ( ! base quantity ( electricity 
( ! retail electricity suppli] t is sold
 )9 ! applicable ,/ate2 be>s to  7,,ii7 
! base quantity ( electricity ( ! retail
 electricity suppli]2  7ii7 ! paym5ts   
are deposit$ directly into a fund ( !   
,/ate treasury e/abli%$ = t purpose2 &  
7iii7 ! ,/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 
pursuant to ?is subsection1 a ,/ate     
%all-- 7,a7 use ! paym5ts exclusively   
=-- 7i7 deploy+ te*nologies t g5]ate    
electricity f r5ewable en]gy res\rces2  
7ii7 deploy+ te*nologies t /ore         
electricity = use at a lat] "t2 or      
7iii7 implem5t+ co/-effective en]gy     
effici5cy programs to a*ieve en]gy      
sav+s2 &  7,b7 inve/ or use ! paym5ts 9 
a mann] design$ to ensure t impact$     
communities receive1 or directly b5efit 
f1 at lea/ #ej p]c5t ( ! funds4  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 ! paym5ts1 &        
demon/rat+ compliance ) ! requirem5ts ( 
?is subsection4  7,b7 ,deadl9e ,a ,/ate 
%all submit a report "u subp>agraph     

7,a7-- 7i7 n lat] ?an #a ye> aft] ! date
 on :i* ! fir/ alt]native compliance    
paym5t is receiv$2 &  7ii7 e ye> !reaft]
 until all alt]native compliance paym5ts
 are exp5d$4  7g7 ,in=mation collection 
,! ,commission may require any retail   
electricity suppli]1 r5ewable           
electricity g5]ator1 or o!r entity t !  
,commission det]m9es appropriate1 to    
provide any in=mation ! ,commission     
det]m9es appropriate to c>ry out ?is    
section4  7h7 ,en=cem5t & judicial      
review  7#a7 ,failure to submit cr$its  
7,a7 ,9 g5]al ,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+-- 7i7 d\ble ! alt]native      
compliance paym5t calculat$ "u          
subsection 7f77#a7 = t cal5d> ye>2 &    
7ii7 ! 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 = t 
cal5d> ye>4  7,b7 ,en=cem5t ,!          
,commission %all assess a civil p5alty  
"u subp>agraph 7,a7 9 accordance ) !    
proc$ures describ$ 9 section #ca7;d7 ( !
 ,f$]al ,p[] ,act 7#af ,u4,s4,c4        
#hbc;b7d774  7#b7 ,violation ( o!r      
requirem5ts  7,a7 ,9 g5]al ,any p]son :o
 violates or fails or refuses to comply 
) any requirem5t ( ?is section 7includ+ 
any regulation promulgat$ or ord] issu$ 
"u ?is section71 o!r ?an a requirem5t ( 
subsection 7b7 or 7f71 %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 ( ! ,f$]al ,p[] ,act 
7#af ,u4,s4,c4 #hbeo-#a7;b774  7#c7     
,judicial review  7,a7 ,9 g5]al ,any    
p]son aggriev$ by a f9al action tak5 by 
! ,commission "u ?is section1 o!r ?an ! 
assessm5t ( a civil p5alty "u p>agraph  

7#a7 or 7#b71 may use ! proc$ures =     
review describ$ 9 section #cac ( !      
,f$]al ,p[] ,act 7#af ,u4,s4,c4 #hbel74 
7,b7 ,ref]5ce ,= purposes ( ?is         
p>agraph1 ref]5ces to an ord] 9 section 
#cac ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4
 #hbel7 %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>agraph 7#a7 or 7#b74  
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 7includ+         
regulations7 respect+ r5ewable          
electricity1 includ+ any law e/abli%+   
requirem5ts t are m /r+5t ?an ^?        
e/abli%$ by ?is section1 subject to !   
condition t no su* law 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 a 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 (1 or !           
responsibility =1 compliance ) any o!r  
provision ( law 7includ+ regulations74  
4  7b7 ,con=m+ am5dm5t ,! table (       
cont5ts 9 section #a7;b7 ( ! ,public    
,utility ,regulatory ,policies ,act (   
#aigh 7,public ,law #ie-fag2 #ib ,/at4  
#caah7 is am5d$ by add+ at ! end ( !    
items relat+ to title ,,vi ! foll[+3    
,sec4 #fji4 ,rural & remote communities 
electrification grants4 ,sec4 #faj4     
,f$]al r5ewable electricity /&>d4  4    
#d4 ,cl>ify+ ,/ate au?ority to adopt    
r5ewable en]gy inc5tives ,section #baj (
 ! ,public ,utility ,regulatory         
,policies ,act ( #aigh 7#af ,u4,s4,c4   
#hbd;a-#c7 is am5d$ 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 law1 or by a ,/ate    
regulatory au?ority act+ )9 its au?ority
 "u ,/ate law1 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$]al ,p[]   
,act 7#af ,u4,s4,c4 #gia;a et seq471 a  
,/ate law or ,/ate regulatory au?ority  
may set ! rates = a sale ( electricity  
by a facility g5]at+ r5ewable en]gy 7z  
def9$ 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