Sec. 201. Definitions
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In this subtitle: The term Administrator means the Administrator of the Environmental Protection Agency. 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 attributable to a retail electricity supplier and an electric consumer as the result of the replacement of a nonelectric energy source used by the electric consumer 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, in determining such global warming potential— 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; and for methane, the effect of carbon dioxide resulting 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 Administrator 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 nonforested land that was cleared before January 1, 2021, 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 woody or nonwoody plant that is planted for closed-loop biomass , as defined in section 45(c)(2) of the Internal Revenue Code of 1986, on land that was, as of January 1, 2021— actively managed cropland or fallow and nonforested cropland, as defined by the Department of Agriculture; 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; waste— that is burned in a qualified combined heat and power system; and that is— a gas that is primarily composed of methane, and that has been generated entirely from the decomposition of organic matter, including sewage, food waste, animal waste, and agricultural waste; 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; and food waste.
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 Administrator shall consult with the Chiefs of the United States Forest Service, the Fish and Wildlife Service, and the Natural Resources Conservation Service in implementing subparagraphs
(A)and (B). The term qualified renewable biomass does not include any biomass the processing or combustion of which results in emissions of— an air pollutant for which air quality criteria has been issued under section 108 of the Clean Air Act ( 42 U.S.C. 7408 ); or a hazardous air pollutant (as defined in section 112 of the Clean Air Act ( 42 U.S.C. 7412(b) )). 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 ( 42 U.S.C. 7408 ); or a hazardous air pollutant (as defined in section 112 of the Clean Air Act ( 42 U.S.C. 7412 )); gas produced from the gasification or pyrolization of post-recycled municipal solid waste; waste described in paragraph (16)(A)(iv)(II); other animal waste or animal byproducts; food waste; a gas that is primarily composed of methane, and that has been generated entirely from the decomposition of organic matter, including sewage, food waste, animal waste, and agricultural waste; or if diverted from or separated from other waste out of a municipal waste stream— paper products that are not commonly recyclable; solid-wood yard waste, pallets, or crates; or manufacturing and construction debris; and at a facility that the Administrator 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) ). 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 amount, in megawatt-hours, of electric energy generated by a generating unit that is not associated with the release of greenhouse gases into the atmosphere, as calculated by multiplying— the qualified electricity generation of the generating unit; by the number that equals— 1.0; less the quotient obtained by dividing— the carbon intensity of the generating unit; by 0.82. The term zero-emission electricity credit means a credit issued pursuant to section 204.
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