Sec. 204. Determination and issuance of quantity of zero-emission electricity credits
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The Administrator 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 Administrator 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 the carbon intensity factor.
Notwithstanding any other provision of this section, the Administrator 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 Administrator 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 Administrator shall account for the following emissions as if emitted directly by the generating unit:
The carbon dioxide emissions of the generating unit. With respect to the amount of carbon dioxide and methane emissions that occur during extraction, flaring, processing, transmission, and transportation of the fossil fuel— the average amounts of carbon dioxide and methane emissions, in terms of carbon dioxide equivalent, associated with such fossil fuel in the United States; or with respect to a generator that the Administrator 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. In determining both the average amount of emissions associated with a fossil fuel in the United States and the emissions of each generating unit using fossil fuel under subparagraph (A), the Administrator 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. The Administrator 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 demonstration— relies on the detection of fugitive and routine emissions from the applicable facilities through the use of continuous monitoring devices operated by one or more independent parties; relies on measurements that occur on a continuing basis and no less frequently than once per day; relies on measurements that are capable of detecting methane emissions at least as small as one gram of methane per second; and accounts for low-frequency, high-emission events. The information provided to the Administrator by a generator to make a determination under this subparagraph shall be available to the public upon such determination. The Administrator shall promulgate the standards for measurement necessary to implement subparagraphs
(A)and
(B)not less than 2 years after the date of enactment of this subtitle and shall update such standards every 5 years thereafter, based on the best available science and technology, including by increasing the level of frequency required under subparagraph (B)(i)(II) and decreasing the lower detection limit required under subparagraph (B)(i)(III). 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 Administrator shall account for the greenhouse gas emissions that can be attributed to the hydropower facility, including the applicable new reservoir. The Administrator 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 the carbon intensity factor; 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 Administrator. In addition to zero-emission electricity credits issued under subparagraph (A), the Administrator 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 Administrator 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 Administrator 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 Administrator 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 Administrator shall account for the greenhouse gas emissions associated with the production of such qualified low-carbon fuel. The Administrator 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 Administrator 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 the carbon intensity factor. The Administrator 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 Administrator 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 Administrator 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. The Administrator shall seek to ensure that direct air capture activities receiving a credit under this paragraph are not used for compliance with an obligation to reduce or avoid greenhouse gas emissions, or increase greenhouse gas sequestration, under another Federal, State, foreign, or international regulatory system. 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 Administrator 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. The Administrator shall take such action as may be necessary to insure that all laborers and mechanics employed by contractors or subcontractors for the construction of a generating unit shall be paid wages at rates not less than those prevailing for the same type of work on similar construction in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. Notwithstanding anything to the contrary in this subtitle, the Administrator shall not issue a zero-emission electricity credit for generation from a generating unit unless prevailing wages were paid for the construction of such generating unit as set forth in subparagraph (A). This subsection applies to any generating unit the construction of which commences on or after six months after the date of enactment of this subtitle. Notwithstanding anything to the contrary in this subtitle, the Administrator shall not issue zero-emission electricity credits for generation from a generating unit unless the owner and operator of such generating unit, including all contractors and subcontractors, remains neutral with respect to the exercise of employees and labor organizations of the right to organize and bargain under the National Labor Relations Act ( 29 U.S.C. 151 et seq.). Notwithstanding anything to the contrary in this subtitle, the Administrator shall not issue a zero-emission electricity credit to a generator not in compliance with the requirements of this subsection. Not later than 18 months after the date of enactment of this subtitle, the Administrator, after consultation with the Secretary of Labor, shall promulgate regulations implementing the requirements of this subsection, including provisions for verification of ongoing compliance with such requirements. requiring adoption and compliance with such labor standards as the Administrator determines appropriate in order for generators to receive the full amount of the zero-emission electricity credits for which they are otherwise eligible. The Administrator shall conduct a study to evaluate any potential need to account for the losses in electricity from transmission and storage between generating units and retail electricity suppliers. The Administrator shall submit a report to the Committee on Energy and Commerce on the results of the study required by this subsection by not later than September 30, 2028. The report shall include an evaluation of the potential effect, if any, of any such losses on the requirements of this subtitle to reach 100 percent zero-emission electricity by 2035.
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- 64 Stat. 1267
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Sec. 204
Determination and issuance of quantity of zero-emission electricity credits
Stat.64 Stat. 1267
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