[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10139 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 10139
To amend title VI of the Public Utility Regulatory Policies Act of 1978
to establish a Federal renewable electricity standard for retail
electricity suppliers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 15, 2024
Ms. Clarke of New York (for herself, Ms. Norton, Ms. Meng, Ms.
Bonamici, Mr. Beyer, Ms. Barragan, and Ms. Schakowsky) introduced the
following bill; which was referred to the Committee on Energy and
Commerce
_______________________________________________________________________
A BILL
To amend title VI of the Public Utility Regulatory Policies Act of 1978
to establish a Federal renewable electricity standard for retail
electricity suppliers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Renewable Energy Act of
2024''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the Federal renewable electricity standard established
by section 610 of the Public Utility Regulatory Policies Act of
1978 (as added by this Act) establishes a market-based policy
to create ongoing competition among renewable electricity
generators across the United States and provide the greatest
quantity of clean electricity for the lowest price; and
(2) the United States has vast wind, solar, hydropower, and
geothermal resources that--
(A) are renewable;
(B) are dispersed widely across different regions
of the United States;
(C) can be harnessed to generate a significant
share of electricity in the United States; and
(D) when deployed, will significantly reduce and
eliminate the emission of harmful greenhouse gases and
criteria pollutants, which have historically been
concentrated in underserved communities and communities
of color, contributing to disproportionate burdens and
environmental injustices.
SEC. 3. FEDERAL RENEWABLE ELECTRICITY STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 (Public Law 95-617; 92 Stat. 3164) is amended by adding at
the end the following:
``SEC. 610. FEDERAL RENEWABLE ELECTRICITY STANDARD.
``(a) Definitions.--In this section:
``(1) Base quantity of electricity.--The term `base
quantity of electricity' means the total quantity of
electricity, expressed in megawatt hours, sold by a retail
electricity supplier to electric consumers during the relevant
calendar year, excluding electricity generated by a
hydroelectric facility (other than qualified hydropower).
``(2) Criteria air pollutant.--The term `criteria air
pollutant' means an air pollutant for which a national ambient
air quality standard has been promulgated under section 109 of
the Clean Air Act (42 U.S.C. 7409).
``(3) Distributed generation.--The term `distributed
generation' means a noncentralized renewable energy resource
installation, or interconnected series of installations, that
generates electricity near the point of use with a total
generating capacity of 1 megawatt or less.
``(4) Environmental justice community.--
``(A) In general.--The term `environmental justice
community' means a low-income or low-wealth community
that is impacted by environmental injustice.
``(B) Inclusions.--The term `environmental justice
community' includes any community that--
``(i) is located nearest to an existing
area of significant environmental pollution and
degradation;
``(ii) bears a burden of negative public
health effects from pollution;
``(iii) includes 1 or more sites of--
``(I) a facility that is a part of
a polluting industry;
``(II) a waste dump; or
``(III) a facility for fossil
resource extraction;
``(iv) experiences a high incidence of
climate change impacts and disasters;
``(v) has been excluded or harmed by racist
or discriminatory policies that have resulted
in disproportionate burdens of environmental
pollution and related health and socioeconomic
disparities;
``(vi) has a land-based or food subsistence
culture that is experiencing ecosystem
disruption and devastation;
``(vii) faces relocation and resettlement
resulting from--
``(I) climate change; or
``(II) impacts to the environment
and ecosystems; or
``(viii) is an Indigenous community.
``(5) Federal renewable electricity credit.--The term
`Federal renewable electricity credit' means a credit that--
``(A) represents, for purposes of compliance with
this section, 1 megawatt hour of renewable electricity;
and
``(B) is issued pursuant to subsection (e).
``(6) Impacted community.--
``(A) In general.--The term `impacted community'
means a community that is harmed by environmental,
economic, or socioeconomic injustice.
``(B) Inclusions.--The term `impacted community'
includes--
``(i) an environmental justice community;
and
``(ii) a community that--
``(I) has a high concentration of
low-income and low-wealth households,
including households composed primarily
of members of groups that have
historically experienced discrimination
on the basis of race, gender, national
origin, or ethnicity (including Black,
Indigenous, Latinx, Arab, Asian, and
Pacific Islander communities);
``(II) has experienced or is
experiencing economic transition,
deindustrialization, historic
underinvestment, and poverty; or
``(III) has high unemployment due
to--
``(aa) a significant
decline in coal mining
activity; or
``(bb) the closure of a
coal-fired power plant.
``(7) Indian tribe.--The term `Indian Tribe' means any
Indian Tribe, band, nation, or other organized group or
community (including any Native village, Regional Corporation,
or Village Corporation (as those terms are defined in section 3
of the Alaska Native Claims Settlement Act (43 U.S.C. 1602)))
that is recognized as eligible for the special programs and
services provided by the United States to Indians because of
their status as Indians.
``(8) Qualified hydropower.--The term `qualified
hydropower' means energy produced from generating capacity
added to a dam on or after January 1, 2001, if the Commission
certifies that--
``(A) the dam--
``(i) was placed in service before the date
of enactment of this section;
``(ii) was operated for flood control,
navigation, or water supply purposes; and
``(iii) was not producing hydroelectric
power prior to the addition of the capacity;
and
``(B) the hydroelectric project installed on the
dam--
``(i) is licensed or is exempt from
licensing by the Commission;
``(ii) is in compliance with--
``(I) the terms and conditions of
the license or exemption; and
``(II) other applicable legal
requirements for the protection of
environmental quality, including
applicable fish passage requirements;
and
``(iii) is operated so that the water
surface elevation at any given location and
time that would have occurred in the absence of
the hydroelectric project is maintained,
subject to any license or exemption
requirements that require changes in water
surface elevation for the purpose of improving
the environmental quality of the affected
waterway.
``(9) Renewable electricity.--The term `renewable
electricity' means electricity generated (including by means of
a fuel cell) from a renewable energy resource.
``(10) Renewable energy resource.--The term `renewable
energy resource' means each of the following:
``(A) Wind energy.
``(B) Solar energy.
``(C) Geothermal energy.
``(D) Biogas derived from--
``(i) anaerobic digestion at wastewater
treatment facilities; or
``(ii) farm anaerobic digestion.
``(E) Qualified hydropower.
``(F) Marine energy (as defined in section 632 of
the Energy Independence and Security Act of 2007 (42
U.S.C. 17211)).
``(11) Retail electricity supplier.--
``(A) In general.--The term `retail electricity
supplier' means, for any calendar year, an electric
utility that sells not fewer than 1,000,000 megawatt
hours of electricity to electric consumers during the
preceding calendar year.
``(B) Inclusions and limitations.--For purposes of
determining whether an electric utility qualifies as a
retail electricity supplier under subparagraph (A)--
``(i) the sales made by any affiliate of
the electric utility to electric consumers,
other than sales to lessees or tenants of the
affiliate, shall be considered to be sales made
by the electric utility; and
``(ii) sales made by the electric utility
to an affiliate, lessee, or tenant of the
electric utility shall not be treated as sales
to electric consumers.
``(C) Affiliate.--In this paragraph, the term
`affiliate', when used in relation to an electric
utility, means any person that directly or indirectly
owns or controls, is owned or controlled by, or is
under common ownership or control with, that electric
utility, as determined under regulations promulgated by
the Commission.
``(12) Retire and retirement.--The terms `retire' and
`retirement', with respect to a Federal renewable electricity
credit, mean to disqualify the credit for any subsequent use
under this section, regardless of whether the use is a sale,
transfer, exchange, or submission in satisfaction of a
compliance obligation.
``(b) Annual Compliance Obligation.--
``(1) In general.--Except as otherwise provided in
subsection (f), for each of calendar years 2025 through 2034,
not later than March 31 of the following calendar year, each
retail electricity supplier shall submit to the Commission a
quantity of Federal renewable electricity credits that
represents a quantity of megawatt hours of renewable
electricity that is at least equal to the annual target of the
retail electricity supplier under subsection (d).
``(2) Equity requirements.--
``(A) Distributed generation.--The Commission shall
require that, of the quantity of Federal renewable
electricity credits required to be submitted by a
retail electricity supplier to comply with paragraph
(1)--
``(i) for the period of calendar years 2025
through 2028, at least 15 percent of those
Federal renewable electricity credits represent
megawatt hours of renewable electricity
generated by distributed generation; and
``(ii) for the period of calendar years
2029 through 2034, at least 20 percent of those
Federal renewable electricity credits represent
megawatt hours of renewable electricity
generated by distributed generation.
``(B) Impacted communities.--The Commission shall
require that, of the quantity of Federal renewable
electricity credits required to be submitted by a
retail electricity supplier to comply with paragraph
(1)--
``(i) for the period of calendar years 2025
through 2028, at least 15 percent of those
Federal renewable electricity credits represent
megawatt hours of renewable electricity
generated in impacted communities; and
``(ii) for the period of calendar years
2029 through 2034, at least 20 percent of those
Federal renewable electricity credits represent
megawatt hours of renewable electricity
generated in impacted communities.
``(C) Distributed generation occurring in an
impacted community.--For any calendar year, distributed
generation that occurs in an impacted community may be
used for purposes of complying with both subparagraph
(A) and subparagraph (B).
``(c) Regulations.--
``(1) In general.--Not later than January 1, 2026, the
Commission shall promulgate regulations to implement and
enforce the requirements of this section.
``(2) Considerations.--In promulgating regulations under
paragraph (1), the Commission shall, to the maximum extent
practicable--
``(A) preserve the integrity and incorporate best
practices of existing State and Tribal renewable
electricity programs;
``(B) preserve the integrity of voluntary renewable
energy markets;
``(C) design and implement those regulations in a
manner that seeks to be equitable and just;
``(D) identify and prioritize measures to maximize
reductions of emissions of greenhouse gases and
criteria air pollutants in impacted communities;
``(E) ensure that activities undertaken to comply
with those regulations result in a net decrease in
emissions of criteria air pollutants in impacted
communities;
``(F) ensure that the deployment of any new
renewable electricity generation provides economic,
health, and resiliency benefits to the communities and
areas in which the applicable generation facility or
resource is built or installed, including through the
use of community benefit agreements or equivalent means
as determined appropriate by the Commission;
``(G) prioritize measures that will incentivize or
allow for distributed, community, and public ownership
over renewable energy projects;
``(H) establish and delegate to an appropriate
entity the administration of a national Federal
renewable electricity credit trading market for the
issuance and trade of Federal renewable electricity
credits, relying on existing and emerging State,
Tribal, or regional tracking systems that issue and
track non-Federal renewable electricity credits;
``(I) establish and delegate to appropriate
entities the administration of not fewer than 6
regional, geographically-based, Federal renewable
electricity credit trading markets, and determine the
optimal levels of credit trading allowed within and
between regions to maximize deployment of new renewable
electricity generation within each region;
``(J) cooperate with States and Indian Tribes--
``(i) to facilitate coordination between
State, Tribal, and Federal renewable
electricity programs; and
``(ii) to minimize administrative burdens
and costs to retail electricity suppliers; and
``(K) encourage strategic deployment of distributed
generation to maximize system benefits that can lower
costs for all customers, including siting generation
resources in grid-constrained areas and colocation of
renewable energy resources with energy storage.
``(d) Annual Compliance Requirement.--
``(1) Annual targets.--For each calendar year, the annual
target of a retail electricity supplier shall be equal to the
number of megawatt hours that is equal to the product obtained
by multiplying--
``(A) the required annual percentage for that
calendar year under paragraph (2) or (3), as
applicable; and
``(B) the base quantity of electricity of that
retail electricity supplier for that calendar year.
``(2) Required annual percentage for calendar years 2025
through 2034.--For each of calendar years 2025 through 2034,
the required annual percentage shall be as follows:
Required annual
``Year: percentage:
2025................................................... 20.0
2026................................................... 24.5
2027................................................... 29.0
2028................................................... 34.0
2029................................................... 39.0
2030................................................... 45.0
2031................................................... 51.0
2032................................................... 57.0
2033................................................... 63.5
2034................................................... 70.0.
``(3) Required annual percentage for subsequent calendar
years.--
``(A) Calendar years 2035 through 2044.--Not later
than December 31, 2034, the Commission shall promulgate
regulations establishing required annual percentages
for each of calendar years 2035 through 2044.
``(B) Increase.--Except at provided in subparagraph
(C), for each of calendar years 2035 through 2044, the
required annual percentage shall be equal to the sum
obtained by adding--
``(i) the required annual percentage for
the previous calendar year; and
``(ii) 3 percentage points.
``(C) Feasibility.--
``(i) Adjustment.--Subject to clause (ii),
for any of calendar years 2035 through 2044,
the Commission may increase or decrease the 3
percentage point increase required under
subparagraph (B) if the Commission determines
necessary based on technical and economic
feasibility studies or other equivalent means.
``(ii) Requirement.--For each of calendar
years 2035 through 2044, the percentage point
increase required under this paragraph for the
required annual percentage shall be greater
than zero.
``(D) Minimum percentage.--In no case shall the
required annual percentage for any calendar year after
calendar year 2035 be less than the required annual
percentage for calendar year 2035.
``(e) Federal Renewable Electricity Credits.--
``(1) In general.--
``(A) Issuance; tracking; verification.--The
regulations promulgated under this section shall
include provisions governing the issuance, tracking,
and verification of Federal renewable electricity
credits.
``(B) Credit ratio.--Except as provided in
paragraphs (2) through (5), the Commission shall issue
to each generator of renewable electricity 1 Federal
renewable electricity credit for each megawatt hour of
renewable electricity generated by the generator after
December 31, 2024.
``(C) Serial number.--The Commission shall assign a
unique serial number to each Federal renewable
electricity credit.
``(2) Generation from certain state renewable electricity
programs.--
``(A) In general.--If renewable electricity is
generated with the support of payments from a retail
electricity supplier pursuant to a State renewable
electricity program (whether through State alternative
compliance payments or through payments to a State
renewable electricity procurement fund or entity)--
``(i) the Commission shall issue Federal
renewable electricity credits to the retail
electricity supplier for the portion of the
relevant renewable electricity generation that
is attributable to the payments made by the
retail electricity supplier, as determined
pursuant to regulations promulgated by the
Commission; and
``(ii) for any remaining portion of the
relevant renewable electricity generation, the
Commission shall issue Federal renewable
electricity credits to the generator, as
provided in paragraph (1), subject to the
condition that not more than 1 Federal
renewable electricity credit shall be issued
for any 1 megawatt hour of electricity.
``(B) State guidance.--In determining how Federal
renewable electricity credits will be apportioned among
retail electricity suppliers and generators under this
paragraph, the Commission shall consider information
and guidance issued by the applicable 1 or more States.
``(3) Certain power sales contracts.--Except as otherwise
provided in paragraph (2), if a generator has sold renewable
electricity to a retail electricity supplier under a contract
for power from a facility placed in service before the date of
enactment of this section, and the contract does not provide
for the determination of ownership of the Federal renewable
electricity credits associated with the generation, the
Commission shall issue the Federal renewable electricity
credits to the retail electricity supplier for the duration of
the contract.
``(4) Credits based on qualified hydropower.--For purposes
of this subsection, the number of megawatt hours of renewable
electricity generation from qualified hydropower shall be
calculated--
``(A) based solely on the increase in average
annual generation directly resulting from the capacity
additions described in subsection (a)(8); and
``(B) using the same water flow information used to
determine a historic average annual generation baseline
for the applicable hydroelectric facility, as certified
by the Commission.
``(5) Credits based on farm anaerobic digestion.--For any
calendar year, a generator may only receive Federal renewable
electricity credits for renewable electricity generated from
biogas that is derived from farm anaerobic digestion if--
``(A) any manure used for that anaerobic digestion
is from a farm that only provides its manure for
anaerobic digestion to 1 anaerobic digester system;
``(B) the anaerobic digester system used by that
generator has a capacity of less than, or equal to, 1
megawatt; and
``(C) during that calendar year, the total
renewable electricity produced from biogas derived from
farm anaerobic digestion in the applicable State
represents not more than 10 percent of the total
electricity usage in the State.
``(6) Generation from mixed renewable and nonrenewable
resources.--If electricity is generated using both a renewable
energy resource and an energy resource that is not a renewable
energy resource, the Commission shall issue Federal renewable
electricity credits based on the proportion that--
``(A) the electricity generated that is
attributable to the renewable energy resource; bears to
``(B) the total electricity generated.
``(7) Prohibition against double-counting.--The Commission
shall ensure that--
``(A) no Federal renewable electricity credit is
used more than once for compliance with this section;
and
``(B) not more than 1 Federal renewable electricity
credit is issued for any megawatt hour of renewable
electricity generated.
``(8) Trading.--The lawful holder of a Federal renewable
electricity credit may--
``(A) sell, exchange, or transfer the credit;
``(B) submit the credit for compliance under
subsection (b); or
``(C) submit the credit for retirement by the
Commission.
``(9) Banking.--
``(A) In general.--A Federal renewable electricity
credit may be submitted in satisfaction of the
compliance obligation under subsection (b) for--
``(i) the compliance year for which the
credit was issued; or
``(ii) the first or second compliance year
thereafter.
``(B) Retirement.--The Commission shall retire any
Federal renewable electricity credit that has not been
retired by April 2 of the calendar year that is 2 years
after the calendar year during which the credit was
issued.
``(10) Retirement.--The Commission shall retire a Federal
renewable electricity credit immediately upon submission by the
lawful holder of the credit, whether in satisfaction of a
compliance obligation under subsection (b) or for another
reason.
``(f) Alternative Compliance Payments.--
``(1) In general.--A retail electricity supplier may
satisfy the requirements of subsection (b) in whole or in part
by submitting, in accordance with this subsection, in lieu of a
Federal renewable electricity credit that would otherwise be
submitted, an alternative compliance payment equal to $50,
adjusted for inflation on January 1 of each year after calendar
year 2024, in accordance with regulations promulgated by the
Commission.
``(2) Payment to state funds.--
``(A) In general.--Except as provided in
subparagraph (B), payments made under this subsection
shall be made directly to the 1 or more States in which
the applicable retail electricity supplier sells
electricity, subject to the conditions that--
``(i) the amount of each payment shall be
based on the proportion that--
``(I) the portion of the base
quantity of electricity of the retail
electricity supplier that is sold
within the applicable State; bears to
``(II) the base quantity of
electricity of the retail electricity
supplier;
``(ii) the payments are deposited directly
into a fund of the State treasury established
for that purpose; and
``(iii) the State uses the funds in
accordance with paragraphs (3) and (4).
``(B) Noncompliance.--If the Commission determines
that a State is in substantial noncompliance with
paragraph (3) or (4), the Commission shall direct that
any future alternative compliance payments that would
otherwise be paid to the State under this subsection
shall instead be paid to the Commission and deposited
in the Treasury.
``(3) State use of funds.--As a condition of receipt of
alternative compliance payments pursuant to this subsection, a
State shall--
``(A) use the payments exclusively for--
``(i) deploying technologies that generate
electricity from renewable energy resources;
``(ii) deploying technologies that store
electricity for use at a later time; or
``(iii) implementing cost-effective energy
efficiency programs to achieve energy savings;
and
``(B) invest or use the payments in a manner
designed to ensure that impacted communities receive,
or directly benefit from, at least 50 percent of the
funds.
``(4) Reporting.--
``(A) In general.--As a condition of receipt of
alternative compliance payments pursuant to this
subsection, a State shall submit to the Commission an
annual report, in accordance with regulations
promulgated by the Commission, containing a full
accounting of the use of the payments, including a
detailed description of the activities funded by the
payments, and demonstrating compliance with the
requirements of this subsection.
``(B) Deadline.--A State shall submit a report
under subparagraph (A)--
``(i) not later than 1 year after the date
on which the first alternative compliance
payment is received; and
``(ii) every year thereafter until all
alternative compliance payments are expended.
``(g) Information Collection.--The Commission may require any
retail electricity supplier, renewable electricity generator, or other
entity that the Commission determines appropriate, to provide any
information the Commission determines appropriate to carry out this
section.
``(h) Enforcement and Judicial Review.--
``(1) Failure to submit credits.--
``(A) In general.--If any person fails to comply
with the requirements of subsection (b) or (f) for a
calendar year, the person shall be liable to pay to the
Commission a civil penalty equal to the product
obtained by multiplying--
``(i) double the alternative compliance
payment calculated under subsection (f)(1) for
that calendar year; and
``(ii) the aggregate quantity of Federal
renewable electricity credits or equivalent
alternative compliance payments that the person
failed to submit in violation of the
requirements of subsections (b) and (f) for
that calendar year.
``(B) Enforcement.--The Commission shall assess a
civil penalty under subparagraph (A) in accordance with
the procedures described in section 31(d) of the
Federal Power Act (16 U.S.C. 823b(d)).
``(2) Violation of other requirements.--
``(A) In general.--Any person who violates or fails
or refuses to comply with any requirement of this
section (including any regulation promulgated or order
issued under this section), other than a requirement of
subsection (b) or (f), shall be subject to a civil
penalty under section 316A(b) of the Federal Power Act
(16 U.S.C. 825o-1(b)).
``(B) Assessment.--The penalty under subparagraph
(A) shall be assessed by the Commission in the same
manner as in the case of a violation referred to in
section 316A(b) of the Federal Power Act (16 U.S.C.
825o-1(b)).
``(3) Judicial review.--
``(A) In general.--Any person aggrieved by a final
action taken by the Commission under this section,
other than the assessment of a civil penalty under
paragraph (1) or (2), may use the procedures for review
described in section 313 of the Federal Power Act (16
U.S.C. 825l).
``(B) Reference.--For purposes of this paragraph,
references to an order in section 313 of the Federal
Power Act (16 U.S.C. 825l) shall be considered to refer
also to all other final actions of the Commission under
this section other than the assessment of a civil
penalty under paragraph (1) or (2).
``(i) Administration.--Nothing in this section--
``(1) diminishes or qualifies any authority of a State, a
political subdivision of a State, or an Indian Tribe--
``(A) to adopt or enforce any law (including
regulations) respecting renewable electricity,
including any law establishing requirements that are
more stringent than those established by this section,
subject to the condition that no such law may relieve
any person of any requirement otherwise applicable
under this section; or
``(B) to regulate the acquisition and disposition
of Federal renewable electricity credits by retail
electricity suppliers within the jurisdiction of the
State, political subdivision, or Indian Tribe,
including the authority to require a retail electricity
supplier to acquire and submit to the Commission for
retirement Federal renewable electricity credits in
excess of those submitted under this section; or
``(2) affects the application of, or the responsibility
for, compliance with any other provision of law (including
regulations).''.
(b) Conforming Amendment.--The table of contents in section 1(b) of
the Public Utility Regulatory Policies Act of 1978 (Public Law 95-617;
92 Stat. 3118) is amended by adding at the end of the items relating to
title VI the following:
``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Federal renewable electricity standard.''.
SEC. 4. CLARIFYING STATE AUTHORITY TO ADOPT RENEWABLE ENERGY
INCENTIVES.
Section 210 of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 824a-3) is amended by adding at the end the following:
``(o) Clarification of State Authority To Adopt Renewable Energy
Incentives.--
``(1) Definition of state-approved production incentive
program.--In this subsection, the term `State-approved
production incentive program' means a requirement imposed
pursuant to State law, or by a State regulatory authority
acting within its authority under State law, that an electric
utility purchase renewable energy (as defined in section
609(a)) at a specified rate.
``(2) State authority to adopt renewable energy
incentives.--Notwithstanding any other provision of this Act or
the Federal Power Act (16 U.S.C. 791a et seq.), a State law or
State regulatory authority may set the rates for a sale of
electricity by a facility generating renewable energy (as
defined in section 609(a)) pursuant to a State-approved
production incentive program under which the facility
voluntarily participates in the State-approved production
incentive program.''.
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