Sec. 201. Definitions
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In this subtitle: The term affiliate has the meaning given such term in section 1262 of the Energy Policy Act of 2005 ( 42 U.S.C. 16451 ). The term associate company has the meaning given such term in section 1262 of the Energy Policy Act of 2005 ( 42 U.S.C. 16451 ). The term behind-the-meter generation system means a system of generation of electric energy that operates on the electric consumer side of the applicable utility meter. The term beneficial electrification-related reduction means the net reduction of the aggregate greenhouse gas emissions of a retail electricity supplier and an electric consumer as the result of the replacement of a power source of the electric consumer that is not electric energy with electric energy provided by the retail electricity supplier, including for the purpose of transportation, space heating, water heating, or industrial processes.
The term carbon dioxide equivalent means the number of metric tons of carbon dioxide emissions with the same global warming potential over a 20-year period as 1 metric ton of another greenhouse gas, including the effects of climate-carbon feedbacks for both carbon dioxide and the other greenhouse gas, as determined in accordance with the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. For methane, the global warming potential shall include the effect of carbon dioxide from methane oxidation in the atmosphere.
The term carbon intensity means the carbon dioxide equivalent emissions associated with the generation of 1 megawatt-hour of electric energy, as determined by the Secretary under section 204. The term electric consumer has the meaning given such term in section 3 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2602 ). The term Federal Power Marketing Administration means the Bonneville Power Administration, the Southeastern Power Administration, the Southwestern Power Administration, or the Western Area Power Administration.
The term generating unit means a unit or system of units that— generates electric energy that is consumed in the United States; generates not fewer than 20 megawatt-hours of electric energy per calendar year; and delivers electric energy to the electric grid; or in the case of a behind-the-meter generation system— delivers electric energy to the electric grid; or generates electric energy that is consumed onsite for a useful purpose other than for generating electric energy. The term generator means the owner or operator of a generating unit.
The term greenhouse gas includes each of the following: Carbon dioxide. Methane. Nitrous oxide. Sulfur hexafluoride. Any hydrofluorocarbon. Any perfluorocarbon. Nitrogen trifluoride. Any fully fluorinated linear, branched, or cyclic— alkane; ether; tertiary amine; or aminoether. Any perfluoropolyether. Any hydrofluoropolyether. Any other fluorocarbon, except for a fluorocarbon with a vapor pressure of less than 1 mm of Hg absolute at 25 degrees Celsius. The term qualified combined heat and power system means a system that— uses the same energy source for the simultaneous or sequential generation of electric energy and thermal energy; produces at least— 20 percent of the useful energy of the system in the form of electric energy; and 20 percent of the useful energy of the system in the form of useful thermal energy; to the extent that the system uses biomass, uses only qualified renewable biomass; and operates with an energy efficiency percentage, as determined in accordance with section 48(c)(3)(C)(i) of the Internal Revenue Code of 1986, of greater than 60 percent on a year-round basis.
The term qualified electricity generation means the number of megawatt-hours of electric energy that a generator generates using a generating unit and— sells directly or indirectly for use by electric consumers for purposes other than resale; or that is consumed onsite for a useful purpose other than for generating electric energy. For purposes of calculating the quantity of electric energy sold by a retail electricity supplier under this paragraph, the quantity of electric energy sold— by an affiliate of the retail electricity supplier, or an associate company of the retail electricity supplier, to an electric consumer (other than to a lessee or tenant of the affiliate or associate company) shall be treated as sold by the retail electricity supplier; and by such retail electricity supplier to an affiliate, lessee, or tenant of the retail electricity supplier shall not be considered to be a sale to an electric consumer.
The term qualified low-carbon fuel means a fuel that— is produced through any process that significantly limits or avoids greenhouse gas emissions; and does not release greenhouse gas emissions during combustion. The term qualified low-carbon fuel includes, subject to subparagraph (A)— ammonia; and hydrogen. The term qualified renewable biomass means— any crop byproduct, or crop residue, harvested from actively managed, or fallow, agricultural land that was cleared before January 1, 2020, if the harvesting of the byproduct or residue does not lead to a net decline in soil organic matter for the applicable land; any cellulose, hemicellulose, or lignin that is derived from a plant that is planted for the purpose of being used to produce energy on land that was, as of January 1, 2020— cropland, including fallow land or other land with a cropping history; a brownfield site (as defined in section 101(39) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ( 42 U.S.C. 9601(39) )); or an abandoned mine site; nonhazardous algal or other micro-crop matter; and waste— that is burned in a qualified combined heat and power system; and that is— methane captured from a landfill, an animal production facility, or a sewage treatment operation; nonhazardous landscape or right-of-way trimmings; vegetative matter removed from an area located not more than 200 yards from a building, residence, or campground for the purpose of protecting structures from wildfire; any byproduct of a wood mill or paper mill operation, including lignin in spent pulping liquors, that is demonstrated to otherwise be burned for energy onsite; plant material removed for the purposes of invasive or noxious plant species control; or downed wood from extreme weather events.
Except as provided in subparagraph (A)(iv)(II)(ee), the term qualified renewable biomass does not include any matter that the Secretary of Agriculture, in consultation with other Federal or State departments and agencies the Secretary determines appropriate, determines is derived from— a plant that is invasive or noxious; or a species or varieties of plants that are potentially invasive. The term qualified waste-to-energy means electric energy generated— from the combustion of— post-recycled municipal solid waste, provided such combustion does not result in emissions of— an air pollutant for which air quality criteria has been issued under section 108 of the Clean Air Act; or a hazardous air pollutant listed pursuant to section 112(b) of the Clean Air Act; gas produced from the gasification or pyrolization of post-recycled municipal solid waste; biogas; landfill methane; animal waste or animal byproducts; food waste; if diverted from or separated from other waste out of a municipal waste stream— paper products that are not commonly recyclable; vegetation; tree trimmings; solid-wood yard waste, pallets, or crates; or manufacturing and construction debris; or any byproduct of a wood or paper mill operation, including lignin in spent pulping liquors; and at a facility that the Secretary has certified, within the past 3 years, is in compliance with all applicable Federal and State environmental permits.
The term retail electricity supplier , as determined for each calendar year, means an entity in the United States that sold not fewer than 20 megawatt-hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year. The term sale , when used with respect to electric energy, has the meaning given such term in section 3(13) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2602(13) ). The term Secretary means the Secretary of Energy.
Except as otherwise provided in this title, the term State means a State of the United States and any district, commonwealth, territory, or possession of the United States. The term zero-emission electricity means the fraction of the electric energy generated by a given generating unit whose generation is not associated with the release of greenhouse gases to the atmosphere. The number of megawatt-hours of zero-emission electricity of a given generating unit is equal to the product obtained by multiplying— the qualified electricity generation of the generating unit; by the extent to which the operation of the generating unit results in fewer greenhouse gas emissions than an efficient coal-burning power plant, which is the number that equals— 1.0; less the quotient obtained by dividing— the carbon intensity of the generating unit; by the carbon intensity of an efficient coal-burning power plant (which is 0.82 metric tons of carbon dioxide per megawatt-hour).
The term zero-emission electricity credit means a credit issued pursuant to section 204.
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