Sec. 202. Zero-emission electricity requirement
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Except as otherwise provided in this section, effective beginning with calendar year 2023, for each calendar year, not later than June 1 of the following calendar year, each retail electricity supplier shall submit to the Administrator a quantity of zero-emission electricity credits that is equal to— for each of calendar years 2023 and 2024, the quantity of zero-emission electricity credits determined under paragraph
(3)for the retail electricity supplier for such calendar year; and for calendar year 2025 and each calendar year thereafter, the average of the quantity of zero-emission electricity credits determined under paragraph
(3)for the retail electricity supplier for such calendar year and the two prior calendar years. Any retail electricity supplier that is an electric cooperative, a State, or any political subdivision of a State, may elect to enter into an agreement with another political subdivision of a State, an electric cooperative that has an obligation to serve such retail electricity supplier, or a generator to assign any reporting or compliance obligation under this title to such other political subdivision of a State, electric cooperative, or generator. An assignment made under this paragraph shall be established through a binding agreement executed among the relevant parties. For each calendar year, the Administrator shall determine a quantity of zero-emission electricity credits for a retail electricity supplier that is equal to the product obtained by multiplying— the total quantity of electric energy, in megawatt-hours, consumed by electric consumers of the retail electricity supplier during the calendar year, that is provided by the retail electricity supplier or by a behind-the-meter generation system, as reported under subsection (b); by the minimum percentage of zero-emission electricity for the calendar year. For any calendar year in which a generating unit that is owned by a retail electricity supplier has been designated a System Support Resource by the Federal Energy Regulatory Commission and is thereby required, by an Independent System Operator or Regional Transmission Organization, or under a State-regulated resource planning process, to remain in operation because retirement of the generating unit would harm the reliability of the electric energy transmission system, in calculating the total quantity of electric energy consumed by electric consumers of the retail electricity supplier under subparagraph (A)(i), the Administrator shall deduct the quantity of megawatt-hours of electricity generated by such generating unit during such calendar year. Notwithstanding anything to the contrary in this section, beginning with calendar year 2031, the Administrator shall defer for one calendar year increasing the required minimum percentage of zero-emission electricity as set forth in clauses
(iii)through
(vii)of paragraph (5)(C) for a retail electricity supplier if the retail electricity supplier submits an alternative compliance payment in lieu of more than 10 percent of the quantity of zero-emission electricity credits due pursuant to this section in both calendar year 2029 and calendar year 2030, or any two consecutive calendar years thereafter. If a retail electricity supplier receives a deferral pursuant to clause (i), the minimum percentage of zero-emission electricity as set forth in clauses
(iii)through
(vii)of paragraph (5)(C) shall be each be extended by one calendar year. Notwithstanding clauses
(i)and (ii), the required minimum percentage of zero-emission electricity set forth in paragraph (5)(C)(vii) shall not be deferred beyond calendar year 2040. If the Administrator issues a deferral pursuant to clause (i), the Administrator shall, notwithstanding anything to the contrary in section 205, award under section 205(b) an amount of money equal to 25 percent of the total amount paid by a retail electricity supplier as alternative compliance payments in the two years that triggered the deferral. Such sums shall be paid awarded for the sole purpose of assisting consumers of the retail electricity supplier with their electric utility bill pursuant to terms established by the Administrator. In this subsection: The term 2020s annual percentage increase means, with respect to a retail electricity supplier, the product obtained by multiplying— the difference between 80 percent and the baseline zero-emission electricity percentage; by— 1/7 . The term baseline zero-emission electricity percentage means, with respect to a retail electricity supplier, the average percentage of the electric energy consumed by all electric consumers of the retail electricity supplier that is zero-emission electricity during calendar years 2017, 2018, and 2019. For any retail electricity supplier served by an Independent System Operator or a Regional Transmission Organization, or participating in a joint unit commitment and centralized economic dispatch system regulated by the Federal Energy Regulatory Commission, the retail electricity supplier may elect to set its baseline zero-emission electricity percentage under clause
(i)on the basis of the zero-emission electricity and electric energy consumed by either— all electric consumers of the retail electricity supplier; or all electric consumers served by the Independent System Operator, Regional Transmission Organization, or the applicable joint unit commitment and centralized economic dispatch system that serves the retail electricity supplier. A retail electricity supplier shall inform the Administrator of its election under clause
(ii)not later than 180 days after the date of enactment of this Act. The term minimum percentage of zero-emission electricity means, with respect to a retail electricity supplier— for calendar year 2023, the baseline zero-emission electricity percentage; for each of calendar years 2024 through 2030, the amount, not to exceed 100 percent, obtained by adding— the minimum percentage of zero-emission electricity for the previous calendar year; and the 2020s annual percentage increase; for calendar year 2031, 84 percent; for calendar year 2032, 88 percent; for calendar year 2033, 92 percent; for calendar year 2034, 96 percent; and for calendar year 2035 and each calendar year thereafter, 100 percent. Effective beginning in calendar year 2023, each retail electricity supplier serving one or more behind-the-meter generation systems may, not later than January 1 of each calendar year, submit to the Administrator— verification of the carbon intensity of behind-the-meter generation systems connected to the retail electricity supplier; and the quantity of electric energy generated by each such behind-the-meter generation system that is consumed for a useful purpose by electric consumers served by the retail electricity supplier. A retail electricity supplier may satisfy the requirements of subsection
(a)with respect to a calendar year, in whole or in part, by submitting to the Administrator, in lieu of each zero-emission electricity credit that would otherwise be due, an alternative compliance payment equal to the amount determined for such calendar year pursuant to subparagraph (2). The Administrator shall calculate the alternative compliance payment under subparagraph
(1)for each calendar year as follows: For calendar year 2023, the alternative compliance payment shall be $40. For calendar year 2024 and each calendar year thereafter, the Administrator shall— increase the prior calendar year amount by 3 percent; and adjust for inflation.