Sec. 301. Fossil fuel phaseout
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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: In this section: The term Administrator means the Administrator of the Environmental Protection Agency. The term base quantity of electricity means the total quantity of electric energy sold by a retail electric supplier, expressed in terms of megawatt hours, to electric customers for purposes other than resale during the most recent calendar year for which information is available.
The term fossil fuel energy means electric energy generated, in whole or in part, by a fossil fuel resource. The term fossil fuel energy credit means a credit issued under subsection
(f)that represents 1 megawatt hour of fossil fuel energy. The term fossil fuel resource means coal, oil, gas, oil shale, or tar sands. The term retail electric supplier means an entity that sold not less than 1,000 megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year. The term retail electric supplier includes an entity that generates not less than 1,000 megawatt hours of electric energy for use by the entity. The term retire , with respect to a fossil fuel energy credit, means to disqualify the fossil fuel energy credit for any subsequent use under this section, including sale, transfer, exchange, or submission in satisfaction of a compliance obligation. For calendar year 2022 and each calendar year thereafter, each retail electric supplier shall meet the requirements of subsections
(c)and
(d)by submitting to the Administrator, not later than April 1 of the following calendar year, as applicable— for a retail electric supplier that exceeds the maximum allowable percentage of fossil fuel energy generation for the applicable calendar year, as determined under subsection (c), a quantity of fossil fuel energy credits sufficient to offset that excess, as determined and certified by the Administrator; or for a retail electric supplier that does not exceed the maximum allowable percentage of fossil fuel energy generation for the applicable calendar year, as determined under subsection (c), a certification of that compliance, as the Administrator determines to be appropriate. For calendar years 2022 through 2050, in annual increments, the maximum annual percentage of the base quantity of electricity of a retail electric supplier that may be generated from fossil fuel resources, or otherwise credited towards the percentage requirement pursuant to subsection (e), shall be the applicable percentage specified in the following table: Maximum Allowable Annual Percentage of Fossil Fuel Energy Sales Calendar Year Percentage 2022 70.0 2023 67.5 2024 65.0 2025 62.5 2026 60.0 2027 57.5 2028 55.0 2029 52.5 2030 50.0 2031 47.5 2032 45.0 2033 42.5 2034 40.0 2035 37.5 2036 35.0 2037 32.5 2038 30.0 2039 27.5 2040 25.0 2041 22.5 2042 20.0 2043 17.5 2044 15.0 2045 12.5 2046 10.0 2047 7.5 2048 5.0 2049 2.5 2050 0.0. For calendar year 2050 and each calendar year thereafter, a retail electric supplier shall not generate or sell any fossil fuel energy. A retail electric supplier may satisfy the requirements of subsection
(b)through the submission of fossil fuel energy credits— issued to the retail electric supplier under subsection (f); or obtained by purchase, transfer, or exchange under subsection (g), subject to any emissions adjustment under subsection (f)(3)(B). A fossil fuel energy credit may be counted toward compliance with subsection
(b)only once. Not later than 1 year after the date of enactment of this section, the Administrator shall establish by rule a program— to verify and issue fossil fuel energy credits to retail electric suppliers; to track the sale, transfer, exchange, carry over, and retirement of fossil fuel energy credits; and to enforce the requirements of this section. To continue selling or generating fossil fuel energy as a retail electric supplier, or otherwise to be issued fossil fuel energy credits, a retail electric supplier shall submit to the Administrator an application for the issuance of fossil fuel energy credits. The application under subparagraph
(A)shall indicate— the quantity of electric energy sold to electric consumers, expressed in megawatt hours of electric energy, for purposes other than resale during the preceding calendar year; if applicable— the total quantity of electric energy generated by the retail electric supplier for use by the retail electric supplier; the type and quantity of each energy resource that is used to produce any energy sold to electric consumers or used by the retail electric supplier; and the location at which the fossil fuel energy will be produced; and any other information the Administrator determines to be appropriate. Subject to subparagraphs
(B)through (D), the Administrator shall issue a quantity of fossil fuel energy credits for a calendar year that is equal to the amount by which fossil fuel energy sales have been reduced during the period beginning on January 1, 2000, and ending on December 31 of the preceding calendar year. On approval of an application under paragraph (2), the maximum quantity of fossil fuel energy credits that may be issued by the Administrator to any retail electric supplier for a calendar year shall be equal to a quantity of fossil fuel energy credits equal to the difference between— the maximum annual percentage of fossil fuel energy sales, expressed in megawatt hours, for the applicable calendar year; and the actual quantity, expressed in megawatt hours, of fossil fuel energy sold by the retail electric supplier during the applicable calendar year. The Administrator may adjust the calculation of the actual quantity of fossil fuel energy generation by setting standard emissions factors based on the lifecycle greenhouse gas emissions of specific types of fossil fuel energy-generating facilities. The Administrator shall— evaluate the lifecycle emissions of non-fossil energy resources, including upstream emissions such as greenhouse gas emissions associated with mining; and reduce any allocation of credits on the basis of that lifecycle evaluation. This paragraph applies only to retail electric suppliers that do not sell or generate fossil fuel energy in excess of the maximum allowable annual percentage of fossil fuel energy generation for the applicable calendar year, as determined under subsection (c). The Administrator may not issue a fossil fuel energy credit for a calendar year to any retail electric supplier that exceeds the maximum allowable annual percentage of fossil fuel energy sales for that calendar year. A fossil fuel energy credit for any calendar year that is not submitted to comply with the maximum allowable percentage of fossil fuel energy requirement of subsection
(c)for that calendar year may be carried forward for use in accordance with this section within the next 5 years, but not later than 2049. A fossil fuel energy credit for any calendar year before 2050 that is not submitted to comply with the maximum allowable percentage of fossil fuel energy requirement of subsection
(c)for that calendar year may be sold, transferred, or exchanged by the retail electric supplier to which the fossil fuel energy credit is issued or by any other retail electric supplier that acquires the fossil fuel energy credit. The sale, transfer, or exchange of fossil fuel energy credits may only occur between retail electric suppliers. A retail electric supplier shall be the only entity that may obtain legal rights to a fossil fuel energy credit. The Administrator shall— evaluate trading to determine if trading results in the unsafe concentration of pollution in any area to any population; and if any unsafe concentration of pollution is identified, halt the sale of credits to entities— within the identified area; or that purchase electricity from a facility that would exacerbate pollution in the identified area, as determined by the Administrator. The Administrator may delegate to an appropriate market-making entity the administration of a national tradeable fossil fuel energy credit market for purposes of creating a transparent national market for the sale or trade of fossil fuel energy credits. Any retail electric supplier that obtains legal rights to a fossil fuel energy credit may retire the fossil fuel energy credit in any calendar year. A fossil fuel energy credit retired under paragraph
(1)may not be used for compliance with subsection
(b)in— the calendar year in which the fossil fuel energy credit is retired; or any subsequent calendar year. The Administrator may collect the information necessary to verify and audit— the annual fossil fuel energy sales or generation of any retail electric supplier; a fossil fuel energy credit submitted by a retail electric supplier pursuant to subsection (b)(1); the validity of a fossil fuel energy credit submitted for compliance by a retail electric supplier to the Administrator; and the quantity of electricity sales of all retail electric suppliers. Nothing in this section diminishes any authority of a State or political subdivision of a State— to adopt or enforce any law (including regulations) respecting electricity; or to regulate an electric utility. No law or regulation of a State or political subdivision of a State shall relieve any electric utility from compliance with any requirement otherwise applicable under this section. Not later than 1 year after the date of enactment of this section, the Administrator shall promulgate regulations to implement this section. A retail electric supplier that fails to comply with subsection
(b)shall be liable for a civil penalty, assessed by the Administrator, in an amount that is equal to twice the average value of the aggregate quantity of fossil fuel energy credits that the retail electric supplier failed to submit in violation of that subsection, as determined by the Administrator. The Administrator shall assess any civil penalty under subparagraph (A). With respect to any civil penalty paid to the Administrator pursuant to subparagraph (A), the Administrator shall deposit the amount in the Climate Fund established by section 702(a) of the 100 by '50 Act . After calendar year 2050, the Administrator may issue an injunction on the purchase or generation of fossil fuel energy by a retail electric supplier. . The table of contents of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601) 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. Fossil fuel phaseout. .
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Sec. 301
Fossil fuel phaseout
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