Sec. 204. Determination and issuance of quantity of zero-emission electricity credits
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The Secretary shall issue to each generator a quantity of zero-emission electricity credits determined in accordance with this section, not later than March 1 of the calendar year after the calendar year for which the zero-emission electricity credits are issued. Except as otherwise provided in this section, the Secretary shall issue to a generator generating zero-emission electricity during a calendar year a quantity of zero-emission electricity credits for such generation that is equal to the product obtained by multiplying— the qualified electricity generation of the generator during such calendar year; by the number that equals— 1.0; less the quotient obtained by dividing— the average carbon intensity of the generating units of such generator for such calendar year, as determined in accordance with subsection (c); by 0.82.
Notwithstanding any other provision of this section, the Secretary shall determine the carbon intensity of each generating unit of a generator. Such determination shall be made— using data and methods from the Air Emission Measurement Center of the Environmental Protection Agency for emission testing and monitoring, including— continuous emission monitoring systems; and predictive emission monitoring systems; and with respect to a determination of the carbon intensity of any generating unit using qualified renewable biomass or qualified low-carbon fuel, or generating qualified waste-to-energy, in consultation with— the Secretary of Agriculture; and the Secretary of the Interior.
The Secretary shall assign a carbon intensity of zero for any generating unit of a generator that does not produce direct emissions of any greenhouse gas in generating electric energy, including any generating unit that generates electric energy only through the use of solar, wind, ocean, current, wave, tidal, geothermal, nuclear energy, or hydropower technology (except as described under paragraph (3)). In determining the carbon intensity of each generating unit using fossil fuel, the Secretary shall utilize the best available science, including with respect to the measurement of low-frequency high-emission events, including data from the detection of natural gas flaring from the satellite observations of the National Oceanic and Atmospheric Administration, to account for— the carbon dioxide emissions of the generating unit; and the average amounts of carbon dioxide and methane emissions, in terms of carbon dioxide equivalent, that occur during extraction, flaring, processing, and transportation in the United States of the fossil fuel consumed by the generator; or with respect to a generator that the Secretary determines under subparagraph
(B)has demonstrated that the fossil fuel consumed by such generator is associated with the release of smaller amounts of carbon dioxide and methane emissions than the amounts described in subclause (I), such smaller amounts. The Secretary may determine that a generator has demonstrated that the fossil fuel consumed by such generator is associated with the release of smaller amounts of carbon dioxide and methane emissions than the amounts described in subparagraph (A)(ii)(I) if the generator— accounts for low-frequency, high-emission events; and uses direct measurements of the applicable facilities, which may include measurements made in the course of participation in a voluntary program or public disclosure of the quantified methane emission intensity of the applicable facilities. The information provided to the Secretary by a generator to make a determination under this subparagraph shall be available to the public upon such determination. The Secretary shall promulgate the standards for measurement necessary to implement subparagraph
(A)not less than 2 years after the date of enactment of this title and shall update such standards every 5 years thereafter, based on the best available science. In determining the carbon intensity of each generating unit using hydropower associated with a reservoir constructed after the date of enactment of this Act, the Secretary shall account for the greenhouse gas emissions that can be attributed to the hydropower facility, including the applicable new reservoir. The Secretary shall issue to a generator generating zero-emission electricity during a calendar year using a generating unit that is a qualified combined heat and power system a quantity of zero-emission electricity credits for such generation that is equal to— the product obtained by multiplying— the number of megawatt-hours of electric energy generated by the qualified combined heat and power system during such calendar year; by the number that equals— 1.0; less the quotient obtained by dividing— the carbon intensity of the qualified combined heat and power system; by 0.82; less the product obtained by multiplying— the number of megawatt-hours of electric energy generated by the qualified combined heat and power system that are consumed onsite during such calendar year; by the average of the minimum percentage of zero-emission electricity (as defined in section 202(a)(5)) for the calendar year for retail electricity suppliers in the region of the generator, as determined by the Secretary. In addition to zero-emission electricity credits issued under subparagraph (A), the Secretary shall issue to a generator described in subparagraph
(A)zero-emission electricity credits for greenhouse gas emissions avoided as a result of the use of the applicable qualified combined heat and power system, rather than a separate thermal source, to meet the thermal needs of the generator or one or more additional entities. This paragraph shall not apply with respect to a qualified combined heat and power system using qualified renewable biomass. The Secretary shall issue to a generator generating zero-emission electricity during a calendar year using qualified renewable biomass a quantity of zero-emission electricity credits for such generation that is equal to the product obtained by multiplying— the qualified electricity generation of the generator using qualified renewable biomass during such calendar year; by the average carbon intensity of the generating units of the generator that use qualified renewable biomass. The Secretary shall issue to a generator generating zero-emission electricity during a calendar year that is qualified waste-to-energy a quantity of zero-emission electricity credits for such generation that is equal to the product obtained by multiplying— the qualified waste-to-energy of the generator that is qualified electricity generation during such calendar year; by the average carbon intensity of the generating units of the generator used to generate qualified waste-to-energy. Except as provided in subparagraph (C), the Secretary shall issue to a generator generating zero-emission electricity during a calendar year using qualified low-carbon fuels a quantity of zero-emission electricity credits for such generation that is equal to the product obtained by multiplying— the qualified electricity generation of the generator using qualified low-carbon-fuels during such calendar year; by the average carbon intensity of the generating units of the generator that use qualified low-carbon fuels. In determining the carbon intensity of each generating unit using a qualified low-carbon fuel, the Secretary shall account for the greenhouse gas emissions associated with the production of such qualified low-carbon fuel. The Secretary shall not issue zero-emission electricity credits for electric energy generated using a qualified low-carbon fuel that is generated from electric energy for which a generator is issued a zero-emission electricity credit under this title. In this paragraph, the term qualified carbon oxide has the meaning given the term in section 45Q of the Internal Revenue Code of 1986. Except as otherwise provided in this section, the Secretary shall, with respect to a given calendar year, issue to a generator a quantity of zero-emission electricity credits for the capture and storage or utilization of qualified carbon oxide from a waste stream of the generator that is equal to the product obtained by multiplying— the qualified electricity generation of the generator during such calendar year; by the difference between— 1.0; and the quotient obtained by dividing— the carbon intensity of the generator; by 0.82. The Secretary shall issue to an entity that captures carbon dioxide from the atmosphere and stores or utilizes such carbon dioxide 1 zero-emission electricity credit for every 0.82 metric tons of carbon dioxide equivalent that is captured and stored or utilized. Subject to clause (ii), not later than 1 year after the date of enactment of this Act, the Secretary shall promulgate regulations establishing— the conditions under which carbon dioxide may be safely and permanently stored for purposes of issuing zero-emission electricity credits under this paragraph; the methods and processes by which carbon dioxide may be utilized in a manner that ensures the removal of the carbon dioxide safely and permanently from the atmosphere, including utilization in the production of substances, such as plastics and chemicals; and requirements to account, in issuing zero-emission electricity credits under this section, for the risk that some fraction of the carbon dioxide intended for permanent storage or utilization may nevertheless be emitted into the atmosphere. In promulgating regulations pursuant to this subparagraph, the Secretary shall incorporate any existing requirements for the permanent geologic storage of carbon dioxide, including any requirements promulgated under section 45Q of the Internal Revenue Code of 1986. Except as provided under subsection (e)(1), the total quantity of zero-emission electricity credits issued under this section to a generator for a calendar year shall not exceed the number of megawatt-hours of the qualified electricity generation of the generator for the calendar year. Notwithstanding any other provision of this title, the Secretary shall not issue a negative quantity of zero-emission electricity credits to any generator. With respect to electricity generated by a facility or generating unit that is located outside of the United States, a zero-emission electricity credit may be issued only with respect to electricity that is sold for resale in the United States. A zero-emission electricity credit issued for electricity that is— sold for resale under a contract in effect on the date of enactment of this title shall be issued to the purchasing retail electricity supplier in proportion to the zero-emission electricity purchased by such retail electricity supplier under the contract, unless otherwise provided by the contract; and sold for resale under a contract in which a generating unit is not specified, shall be issued to the purchasing retail electricity supplier in proportion to the ratio of zero-emission electricity generation from the generator making such sale for resale. A zero-emission electricity credit issued for electricity that is generated by a Federal Power Marketing Administration shall be conveyed to the retail electricity supplier that is purchasing the electricity. A qualified zero-emission electricity taxpayer that receives a zero-emission electricity acceleration investment credit for a calendar year under section 45U of the Internal Revenue Code of 1986, as added by section 301 of this Act, shall not be issued any zero-emission electricity credits under this section after such calendar year. An eligible electricity provider that receives a grant during a calendar year under section 302 of this Act shall not be issued any zero-emission electricity credits under this section after such calendar year.