Sec. 204. Determination and issuance of quantity of zero-emission electricity credits
1,710 words·~8 min read·
/bill/117/hr/4309/ih/section-204·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 amount of zero-emission electricity of the generator for the calendar year.
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 provided under paragraphs
(2)and (3). In determining the carbon intensity of each generating unit using coal, natural gas, or oil, the Administrator shall account for— the direct emissions of any greenhouse gas of the generating unit, which shall not include the qualified carbon oxide that is captured and safely and permanently stored or utilized; and the average amounts of carbon dioxide and methane emissions, in terms of carbon dioxide equivalent, that occur during extraction, flaring, processing, transmission, and transportation of coal, natural gas, or oil that is utilized for the generation of electricity in the United States; or with respect to a generator that the Administrator determines under subparagraph
(B)has demonstrated that the coal, natural gas, or oil 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 making a determination under this paragraph, the Administrator shall utilize the best available science, including with respect to the measurement of low-frequency high-emission events, including by using 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 generator— submits a petition for such determination to the Administrator by January 31 after the calendar year for which such determination is sought; accounts in the petition for low-frequency, high-emission events; and uses in the petition 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 Administrator by a generator to make a determination under this subparagraph shall be available to the public upon such determination. In this paragraph, the term qualified carbon oxide has the meaning given the term in section 45Q of the Internal Revenue Code of 1986. The Administrator shall promulgate the standards for measurement necessary to implement this paragraph not later than 2 years after the date of enactment of this Act, and shall update such standards every 5 years thereafter, based on the best available science and technology. 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 number that represents the amount of zero-emission electricity generated by such generating unit during such calendar year; 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 that was generated 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. Except as provided in subparagraph (B), 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. Zero-emission electricity credits for zero-emission electricity that is qualified waste-to-energy generated using qualified renewable biomass shall be issued in accordance with paragraph (2). 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 that was generated 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 using electric energy for which a generator is issued a zero-emission electricity credit under this title. The Administrator shall issue to an entity that captures carbon dioxide from the atmosphere, and safely and permanently 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 safely and permanently stored or utilized. Subject to subparagraph (B), not later than 1 year after the date of enactment of this Act, for purposes of issuing zero-emission electricity credits under this section, the Administrator shall promulgate regulations establishing— the conditions under which carbon dioxide may be safely and permanently stored; 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 for the risk that some fraction of the carbon dioxide intended to be permanently stored or utilized may nevertheless be emitted into the atmosphere. In promulgating regulations pursuant to this paragraph, 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. 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 transferred 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 45V 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 for such calendar year or any calendar year thereafter. An eligible electricity provider that receives a grant during a calendar year under section 302(a)(1) of this Act shall not be issued any zero-emission electricity credits under this section for such calendar year or any calendar year thereafter.