Sec. 202. Zero-emission electricity requirement
2,252 words·~10 min read·
/bill/117/hr/4309/ih/section-202A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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. Notwithstanding subparagraph (A)(ii), beginning in 2035, and for each calendar year thereafter, if the percentage of national undercompliance due to energy loss is greater than 1 for the calendar year, a retail electricity supplier that has a percentage of individual undercompliance due to energy loss that is greater than 1 for the calendar year shall submit to the Administrator a quantity of zero-emission electricity credits that is equal to the number obtained by dividing— the quantity of zero-emission electricity credits described in subparagraph (A)(ii); by the number that equals 1 minus— the percentage of national undercompliance due to energy loss for the calendar year; divided by 100. 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 a 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. To account for beneficial electrification, in calculating the total quantity of electric energy consumed by electric consumers of a retail electricity supplier under subparagraph (A)(i), the Administrator shall deduct a quantity, in megawatt-hours, determined in accordance with clause (ii). The Administrator shall make a determination of the quantity of electric energy, in megawatt-hours, associated with beneficial electrification-related reductions for a retail electricity supplier for a calendar year. Such determination shall be made on the basis of— the carbon intensity of the electric energy sold by the retail electricity supplier that results in such beneficial electrification-related reductions; and the greenhouse gas emissions of nonelectric energy sources that were replaced with electric energy provided by the retail electricity supplier which results in such beneficial electrification-related reductions. In determining the quantity of electric energy to deduct under clause (ii), the Administrator shall ensure that the deduction is reduced to zero at the same rate that the minimum percentage of zero-emission electricity increases to 100 percent. 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. For each calendar year, the Administrator shall— analyze the market for zero-emission electricity credits in order to determine the average annual price of zero-emission electricity credits for the calendar year; determine whether the average annual price of a zero-emission electricity credit determined under subparagraph
(A)is less than the breakthrough credit price under paragraph
(6)for the calendar year; and publish the determinations made under subparagraphs
(A)and
(B)by not later than January 31 of the year following the calendar year. In this subsection: Except as provided in clause (ii), the term annual percentage increase means, with respect to a retail electricity supplier, the product obtained by multiplying— the difference between 100 percent and the baseline zero-emission electricity percentage; by— 1/27 . Notwithstanding clause (i), beginning with calendar year 2026, if the Administrator determines under paragraph
(4)that the average annual price of a zero-emission electricity credit for each of the 3 or more calendar years prior to a calendar year (in this clause referred to as the applicable calendar year ) is less than the breakthrough credit price for the applicable calendar year, the term annual percentage increase means, for the 1 calendar year that begins 4 years after the end of the applicable calendar year, the percentage that is— twice the percentage described in clause
(i)if the period of breakthrough credit prices is 3 consecutive calendar years; three times the percentage described in clause
(i)if the period of breakthrough credit prices is 4 consecutive calendar years; four times the percentage described in clause
(i)if the period of breakthrough credit prices is 5 consecutive calendar years; five times the percentage described in clause
(i)if the period of breakthrough credit prices is 6 consecutive calendar years; and six times the percentage described in clause
(i)if the period of breakthrough credit prices is 7 consecutive calendar years. 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 breakthrough credit price means, for a calendar year, the price listed in the table under paragraph
(6)labeled breakthrough credit price . The term minimum percentage of zero-emission electricity means, with respect to a retail electricity supplier— for each of calendar years 2023 and 2024, the baseline zero-emission electricity percentage; for each of calendar years 2025 through 2050, the amount, not to exceed 100 percent, obtained by adding— the minimum percentage of zero-emission electricity for the previous calendar year; and the annual percentage increase; and for each calendar year after 2050, 100 percent. The term percentage of individual undercompliance due to energy loss means, with respect to a calendar year, for a retail electricity supplier, the number that is equal to— 100; multiplied by the number that is equal to— the number that is obtained by dividing— the number of zero-emission electricity credits that the retail electricity supplier would be required to submit to the Administrator but for paragraph (1)(B); by the number of megawatt-hours of electric energy sold by the retail electricity supplier to electric consumers; less the number that is obtained by dividing— the number of zero-emission electricity credits awarded by the Administrator to generators for the electric energy that is sold by the retail electricity supplier to electric consumers; by the number of megawatt-hours of electric energy generated by the generators that is provided to the retail electricity supplier for sale to electric consumers. The term percentage of national undercompliance due to energy loss means, with respect to a calendar year, the number that is equal to— 100; multiplied by the number that is equal to— the number that is obtained by dividing— the total number of zero-emission electricity credits that all retail electricity suppliers would be required to submit but for paragraph (1)(B); by the total number of megawatt-hours of electric energy sold by retail electricity suppliers to electric consumers; less the number that is obtained by dividing— the total number of zero-emission electricity credits awarded by the Administrator to all generators; by the total number of megawatt-hours of electric energy generated by all generators. The term period of breakthrough credit prices means the number of consecutive calendar years for which the average annual price of a zero-emission electricity credit is less than the breakthrough credit price for each such year, as determined by the Administrator under paragraph (4). For a calendar year, amounts of alternative compliance payments and breakthrough credit prices are as follows: Calendar year Breakthrough Credit Price Alternative compliance payment 2023 $10.75 $21.50 2024 $11.50 $23.00 2025 $12.25 $24.50 2026 $13.00 $26.00 2027 $13.75 $27.50 2028 $14.50 $29.00 2029 $15.25 $30.50 2030 $16.00 $32.00 2031 $16.75 $33.50 2032 $17.50 $35.00 2033 $18.25 $36.50 2034 $19.00 $38.00 2035 $19.75 $39.50 2036 $20.50 $41.00 2037 $21.25 $42.50 2038 $22.00 $44.00 2039 $22.75 $45.50 2040 $23.50 $47.00 2041 $24.25 $48.50 2042 $25.00 $50.00 2043 $25.75 $51.50 2044 $26.50 $53.00 2045 $27.25 $54.50 2046 $28.00 $56.00 2047 $28.75 $57.50 2048 $29.50 $59.00 2049 $30.25 $60.50 2050 and each calendar year thereafter $31.00 $62.00. 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 in accordance with the table in subsection (a)(6), adjusted for inflation. A retail electricity supplier (referred to in this subsection as the petitioner ) may submit to the Administrator a petition for the Administrator to make a determination of inadequate availability of technology relating to zero-emission electricity with respect to a calendar year. The Administrator shall make an affirmative determination under paragraph
(1)(referred to in this title as a determination of inadequate availability of technology ) for a calendar year only if— a petition is submitted to the Administrator by January 31 of the following calendar year; the average annual price of zero-emission electricity credits is equal to or greater than the alternative compliance payment under subsection (a)(6) for such calendar year; the Administrator determines the number of megawatt-hours of zero-emission electricity that could have been generated or purchased by the petitioner using technology that was available during the time interval addressed by the petition— at or below the cost per megawatt-hour of the technology used to generate the electricity sold by the petitioner in the previous calendar year; and while enabling the petitioner to operate its system at an adequate level of reliability; and the number of megawatt-hours determined under subparagraph
(C)is less than the number of zero-emission electricity credits the petitioner would be required to submit under subsection (a). Notwithstanding subsection (a)(1), if the Administrator makes a determination of inadequate availability of technology for a petitioner for a calendar year, as described under this subsection, the petitioner shall not be required to submit for such calendar year more than the number of zero-emission electricity credits equal to the number of megawatt-hours determined under paragraph (2)(C). For the calendar year identified under paragraph (3), if the Administrator makes one or more determinations of inadequate availability of technology under this subsection, the Administrator shall award under section 205(b) an amount of money equal to the sum of— the total amount paid by retail electricity suppliers as alternative compliance payments; and the total amount of the alternative compliance payments that would have been made by the petitioner or petitioners but for the determination of inadequate availability of technology made under paragraph (2). A qualified zero-emission electricity taxpayer that receives a zero-emission electricity acceleration investment credit for a calendar year under section 45V of the Internal Revenue Code of 1986, as added by section 301 of this Act, shall not be subject to the requirements to submit zero-emission electricity credits under this section for such calendar year and each calendar year thereafter. An eligible electricity provider that is awarded a grant under section 302(a)(1) of this Act for a calendar year shall not be subject to the requirements to submit zero-emission electricity credits under this section for such calendar year and each calendar year thereafter, as long as the condition described under section 302(a)(1)(A) continues to be met.