S.Amdt. 4744

1. Adds SEC. __. FEDERAL RENEWABLE PORTFOLIO STANDARD wherever appropriate

   Adds a section

   Inserted: SEC. __. FEDERAL RENEWABLE PORTFOLIO STANDARD.

   Inserted: Title VI of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end the following:

   Inserted: "SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

   Inserted: "(a) Definitions.--In this section:

   Inserted: "(1) Biomass.--

   Inserted: "(A) In general.--The term 'biomass' means--

   Inserted: "(i) organic material from a plant that is planted for the purpose of producing energy;

   Inserted: "(ii) nonhazardous, cellulosic, or agricultural waste material that--

   Inserted: "(I) is segregated from other waste materials; and

   Inserted: "(II) is derived from--

   Inserted: "(aa) a forest-related resource, including--

   Inserted: "(AA) mill and harvesting residue;

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   Inserted: "(BB) precommercial thinnings;

   Inserted: "(CC) slash; and

   Inserted: "(DD) brush;

   Inserted: "(bb) agricultural resources, including--

   Inserted: "(AA) orchard tree crops;

   Inserted: "(BB) vineyards;

   Inserted: "(CC) grains;

   Inserted: "(DD) legumes;

   Inserted: "(EE) sugar; and

   Inserted: "(FF) other crop by-products or residues; or

   Inserted: "(cc) miscellaneous waste, such as--

   Inserted: "(AA) waste pallet;

   Inserted: "(BB) crate; and

   Inserted: "(CC) landscape or right-of-way tree trimmings; and

   Inserted: "(iii) animal waste--

   Inserted: "(I) that is converted to a fuel rather than directly combusted; and

   Inserted: "(II) the residue of which is converted to--

   Inserted: "(aa) a biological fertilizer;

   Inserted: "(bb) oil; or

   Inserted: "(cc) activated carbon.

   Inserted: "(B) Exclusions.--The term 'biomass' does not include--

   Inserted: "(i) municipal solid waste that is incinerated;

   Inserted: "(ii) recyclable post-consumer waste paper;

   Inserted: "(iii) painted, treated, or pressurized wood;

   Inserted: "(iv) wood contaminated with plastics or metals; or

   Inserted: "(v) tires.

   Inserted: "(2) Distributed generation.--The term 'distributed generation' means reduced electricity consumption on the electric grid due to use by a customer of renewable energy generated at a customer site.

   Inserted: "(3) Incremental hydropower.--The term 'incremental hydropower' means additional generation achieved after January 1, 2005, as a result of increased efficiency at a hydroelectric dam that was placed in service before that date.

   Inserted: "(4) Landfill gas.--The term 'landfill gas' means gas generated from the decomposition of household solid waste, commercial solid waste, or industrial solid waste disposed of in a municipal solid waste landfill unit (as those terms are defined in regulations promulgated pursuant to subtitle D of the Solid Waste Disposal Act (42 U.S.C. 6941 et seq.)).

   Inserted: "(5) Renewable energy.--The term 'renewable energy' means electricity generated from--

   Inserted: "(A) a renewable energy source; or

   Inserted: "(B) hydrogen that is produced from a renewable energy source.

   Inserted: "(6) Renewable energy source.--The term 'renewable energy source' means--

   Inserted: "(A) wind;

   Inserted: "(B) ocean waves;

   Inserted: "(C) biomass;

   Inserted: "(D) solar energy;

   Inserted: "(E) landfill gas;

   Inserted: "(F) incremental hydropower; or

   Inserted: "(G) geothermal.

   Inserted: "(7) Retail electric supplier.--The term 'retail electric supplier' means a person or entity that, with respect to an applicable calendar year under subsection (b)(1)--

   Inserted: "(A) sells retail electricity to consumers; and

   Inserted: "(B) sold not less than 500,000 megawatt-hours of electric energy to consumers for purposes other than resale during the preceding calendar year.

   Inserted: "(b) Renewable Energy Requirements.--

   Inserted: "(1) Submission of credits.--

   Inserted: "(A) In general.--Not later than April 30, 2007, and annually thereafter, each retail electric supplier shall submit to the Secretary renewable energy credits in a quantity equal to the product obtained by multiplying--

   Inserted: "(i) the total kilowatt-hours of nonhydropower (excluding incremental hydropower) electricity sold by the retail electric supplier to retail consumers during the preceding calendar year; and

   Inserted: "(ii) the applicable percentage under the table contained in subsection (c).

   Inserted: "(B) Form of credits.--A credit submitted under subparagraph (A) shall be--

   Inserted: "(i) a renewable energy credit issued to the retail electric supplier under subsection (d)(2);

   Inserted: "(ii) a renewable energy credit obtained by purchase or exchange under subsection (d)(3);

   Inserted: "(iii) a renewable energy credit purchased from the United States under subsection (d)(4); or

   Inserted: "(iv) any combination of credits described in clauses (i) through (iii).

   Inserted: "(C) Prohibition on double counting.--A credit may be counted for purposes of compliance with this subsection only once.

   Inserted: "(2) Carryover.--A renewable energy credit received by a retail electric supplier during a calendar year that is not used to satisfy the requirement for that year under paragraph (1) may be carried over for use during 1 of the following 2 calendar years.

   Inserted: "(c) Required Annual Percentage.--Of the total quantity of nonhydropower (excluding incremental hydropower) electricity sold by a retail electric supplier during a calendar year, the quantity generated by renewable energy sources shall be not less than the percentage described in the following table:

   Inserted: "Calendar year Required percentage 2007-2009.............................................................5 2010-2014............................................................10 2015-2019............................................................15 2020 and thereafter..................................................20

   Inserted: "(d) Renewable Energy Credit Program.--

   Inserted: "(1) Establishment.--Not later than 1 year after the date of enactment of this section, the Secretary shall establish a program under which the Secretary shall issue, monitor the sale and exchange of, sell, and track renewable energy credits.

   Inserted: "(2) Issuance of credits.--

   Inserted: "(A) Issuance.--

   Inserted: "(i) In general.--Except as provided in clauses (ii) and (iii), the Secretary shall issue to an entity that submits an application under subparagraph (B) 1 renewable energy credit for each kilowatt-hour of renewable energy generated by the entity in any State during the preceding calendar year for--

   Inserted: "(I) sale for retail consumption; or

   Inserted: "(II) use by the generator.

   Inserted: "(ii) Distributed generation.--Notwithstanding clause (i), the Secretary shall issue to an entity that submits an application under subparagraph (B) 3 renewable energy credits for each kilowatt-hour of distributed generation as a result of actions of the entity.

   Inserted: "(iii) Combination of sources.--If a kilowatt-hour of renewable energy is generated through the use of a renewable energy resource and a nonrenewable energy resource, the Secretary shall issue an applicable renewable energy credit based on the ratio that--

   Inserted: "(I) the quantity of renewable energy resource used to generate the kilowatt-hour of renewable energy; bears to

   Inserted: "(II) the total quantity of resources used to generate the kilowatt-hour of renewable energy.

   Inserted: "(B) Application.--

   Inserted: "(i) In general.--An entity that generates renewable energy may submit to the Secretary an application for the issuance of renewable energy credits.

   Inserted: "(ii) Inclusions.--An application under clause (i) shall include a description of--

   Inserted: "(I) the type of renewable energy resource used by the entity to produce the renewable energy;

   Inserted: "(II) the State in which the renewable energy was produced; and

   Inserted: "(III) any other information the Secretary determines to be appropriate.

   Inserted: "(C) Vesting.--A renewable energy credit shall vest with the owner of the system or facility that generates the renewable energy, unless the owner explicitly transfers the credit.

   Inserted: "(D) Identification.--For purposes of issuing, selling, and tracking renewable energy credits, the Secretary shall identify the credits based on the type and date of generation of the renewable energy for which the credit is provided.

   Inserted: "(E) Contract sales.--For purposes of this section, a retail electric supplier that purchases renewable energy from a generator pursuant to a contract under section 210 shall be considered to be the generator of the renewable energy.

   Inserted: "(F) Voluntary participation.--The Secretary may issue a renewable energy credit under this paragraph to an entity that is not subject to the requirements of this Act only if the entity--

   Inserted: "(i) meets the terms and conditions of this Act to the same extent as an entity subject to the requirements of this Act; and

   Inserted: "(ii) submits an application under subparagraph (B).

   Inserted: "(3) Sale and exchange of credits.--

   Inserted: "(A) In general.--A renewable energy credit may be sold or exchanged by--

   Inserted: "(i) the entity that is issued the renewable energy credit under paragraph (2); or

   Inserted: "(ii) any other entity that acquires the renewable energy credit.

   Inserted: "(B) Requirement.--A sale or exchange of a credit under subparagraph (A) shall be carried out in accordance with applicable contracts and laws, including laws relating to the spot market.

   Inserted: "(4) Purchase from united states.--

   Inserted: "(A) In general.--The Secretary shall offer for sale renewable energy credits at a price equal to the lesser of, as adjusted for inflation under subparagraph (B)--

   Inserted: "(i) 3 cents per kilowatt-hour covered by the credit; and

   Inserted: "(ii) an amount equal to 110 percent of the average market value of the credits for the applicable compliance period.

   Inserted: "(B) Adjustment for inflation.--On January 1, 2007, and annually thereafter, the Secretary shall adjust for inflation the price to be charged for a renewable energy credit for the appropriate calendar year.

   Inserted: "(e) Enforcement.--

   Inserted: "(1) In general.--A retail electric supplier that does not submit renewable energy credits in accordance with subsection (b) shall be subject to a civil penalty in an amount equal to the product obtained by multiplying--

   Inserted: "(A) the difference between--

   Inserted: "(i) the number of renewable energy credits submitted by the retail electric supplier; and

   Inserted: "(ii) the number of credits required to be submitted by the retail electric supplier under subsection (b); and

   Inserted: "(B) the lesser of--

   Inserted: "(i) 4.5 cents; and

   Inserted: "(ii) an amount equal to 300 percent of the average market value of credits for the applicable compliance period.

   Inserted: "(2) Collection of information.--The Secretary may collect such information as the Secretary determines to be necessary to verify and audit--

   Inserted: "(A) the annual electric energy generation and renewable energy generation of any entity that applies for renewable energy credits under this section;

   Inserted: "(B) the validity of renewable energy credits submitted by a retail electric supplier to the Secretary; and

   Inserted: "(C) the total amount of electricity sales of all retail electric suppliers.

   Inserted: "(f) Consumer Allocation.--

   Inserted: "(1) In general.--A retail electric supplier shall charge each class of consumers of the retail electric supplier a rate that proportionally reflects the percentage of the cost to the retail electric supplier of generating or acquiring the annual percentage of renewable energy required under subsection (b).

   Inserted: "(2) Prohibition of misrepresentation.--A retail electric supplier shall not make any representation to a customer or prospective customer of the retail electric supplier regarding product content or description if the content or description has been or will be modified by the retail electric supplier solely for purposes of complying with this section.

   Inserted: "(g) State Renewable Energy Grant Program.--

   Inserted: "(1) Establishment.--Not later than 1 year after the date of enactment of this section, the Secretary shall establish a program under which the Secretary shall distribute amounts received from sales under subsection (d)(4), and from penalties under subsection (e)(1), to State energy agencies for use in accordance with this section.

   Inserted: "(2) Use of funds.--A State energy agency shall use amounts received under this subsection to carry out a grant program to provide for--

   Inserted: "(A) renewable energy research and development;

   Inserted: "(B) loan guarantees to encourage construction of renewable energy facilities;

   Inserted: "(C) consumer rebate or other programs to offset the costs of small residential or small commercial renewable energy systems, including solar hot water; or

   Inserted: "(D) promotion of distributed generation.

   Inserted: "(3) Priority.--In allocating amounts under this subsection, the Secretary shall give priority to, as determined by the Secretary--

   Inserted: "(A) States in regions with a disproportionately small share of economically-sustainable renewable energy generation capacity; and

   Inserted: "(B) States the grant programs of which are most likely to stimulate or enhance innovative renewable energy technologies.

   Inserted: "(h) Effect on Other State Programs.--Nothing in this section precludes any State from requiring additional renewable energy generation capacity in the State pursuant to a renewable energy program conducted by the State.".

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