[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1553 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 1553
To require the Secretary of Energy to submit to Congress an annual
report on peaker plants in the United States and to provide financial
incentives for replacing peaker plants with technology that receives,
stores, and delivers energy generated by renewable energy resources,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 11, 2021
Mrs. Gillibrand (for herself and Mr. Van Hollen) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To require the Secretary of Energy to submit to Congress an annual
report on peaker plants in the United States and to provide financial
incentives for replacing peaker plants with technology that receives,
stores, and delivers energy generated by renewable energy resources,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Promoting Energy Alternatives is Key
to Emission Reductions Act of 2021'' or the ``PEAKER Act of 2021''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Finance of the Senate;
(B) the Committee on Energy and Natural Resources
of the Senate;
(C) the Committee on Environment and Public Works
of the Senate;
(D) the Committee on Ways and Means of the House of
Representatives; and
(E) the Committee on Energy and Commerce of the
House of Representatives.
(2) Disadvantaged community.--The term ``disadvantaged
community'' means a community that--
(A) is located in an area with a high concentration
of individuals who--
(i) are members of low- and moderate-income
households (as defined in section 570.3 of
title 24, Code of Federal Regulations (or a
successor regulation));
(ii) experience high levels of
unemployment;
(iii) face a high rent burden;
(iv) face a high energy burden;
(v) have low levels of home ownership;
(vi) have low levels of educational
attainment; or
(vii) are members of groups that have
historically experienced discrimination on the
basis of race or ethnicity;
(B) is burdened by high cumulative environmental
pollution or other hazards that can lead to negative
public health effects; or
(C) is determined to be a disadvantaged community,
an environmental justice community, a climate-burdened
community, or an otherwise similarly vulnerable
community pursuant to any Federal or State-level
initiative, including any relevant mapping initiative.
(3) High energy burden.--The term ``high energy burden''
means, with respect to a household, expenditure of the
household on residential energy costs that equals 6 percent or
more of the household income.
(4) Peaker plant.--The term ``peaker plant'' means a fossil
fuel-fired power plant or unit of a power plant that is run
primarily to meet peak electricity demand, as determined by the
Secretary, in coordination with the Administrator of the
Environmental Protection Agency and the applicable local
electrical grid operator.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 3. ANNUAL REPORT ON PEAKER PLANTS IN THE UNITED STATES.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter, the Secretary, in
coordination with the Administrator of the Environmental Protection
Agency, the White House Environmental Justice Advisory Council, the
White House Environmental Justice Interagency Council, the Council on
Environmental Quality, and any other relevant Federal entity that the
Secretary determines to be appropriate, shall submit to the appropriate
committees of Congress a report that--
(1) identifies each peaker plant in the United States; and
(2) for each peaker plant identified under paragraph (1)--
(A) describes the location of the peaker plant and
related socioeconomic and demographic data for that
location, including whether the peaker plant is located
in or adjacent to a disadvantaged community;
(B) evaluates the quantity of carbon dioxide,
nitric oxides, sulfur oxides, fine particulate matter
(PM<INF>2.5</INF>), and methane emitted per unit of
electricity generated by the peaker plant;
(C) identifies--
(i) the total number of hours that the
peaker plant generates electricity during the
year covered by the report;
(ii) the capacity factor of the plant;
(iii) the average number of hours that the
peaker plant generates electricity each time
that the peaker plant generates electricity;
and
(iv) the percentage of the total number of
instances in which the peaker plant is started
that result in the peaker plant generating
electricity for--
(I) not less than 4 hours;
(II) not less than 8 hours; and
(III) not less than 12 hours; and
(D) identifies, for each day on which the 3 air
monitors closest to the peaker plant indicate that
Federal ozone or particulate matter standards have been
exceeded, the percentage of peak demand met by the
peaker plant for the electrical grid load zone served
by the peaker plant.
(b) Community Engagement.--In preparing a report under subsection
(a), the Secretary shall initiate and carry out public engagement with
residents and stakeholders from disadvantaged communities containing a
peaker plant.
SEC. 4. CREDIT FOR GENERATION AND STORAGE OF ENERGY FROM RENEWABLE
SOURCES.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48C the following new section:
``SEC. 48D. RENEWABLE ENERGY GENERATION AND STORAGE CREDIT.
``(a) In General.--For purposes of section 46, the renewable energy
generation and storage credit for any taxable year is an amount equal
to 10 percent of the qualified investment for such taxable year with
respect to any qualified renewable energy facility.
``(b) Qualified Investment With Respect to Qualified Renewable
Energy Facilities.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to a qualified renewable
energy facility for any taxable year is the basis of any
qualified property placed in service by the taxpayer during
such taxable year which is part of a qualified renewable energy
facility.
``(2) Qualified property.--For purposes of this subsection,
the term `qualified property' means property--
``(A) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not
including a building or its structural
components), but only if such property is used
as an integral part of the qualified renewable
energy facility,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable,
``(C) which is constructed, reconstructed, erected,
installed, or acquired by the taxpayer, and
``(D) the original use of which commences with the
taxpayer.
``(3) Qualified renewable energy facility.--
``(A) In general.--Subject to subparagraph (B), the
term `qualified renewable energy facility' means a
facility which--
``(i) uses solar, wind, low-impact
hydroelectric (as certified by the Low Impact
Hydropower Institute), geothermal, tidal, or
wave energy to generate electricity which will
be received and stored by property described in
clause (ii),
``(ii) contains property which receives,
stores, and delivers electricity described in
clause (i), provided that such electricity is--
``(I)(aa) sold by the taxpayer to
an unrelated person, or
``(bb) in the case of a facility
which is equipped with a metering
device which is owned and operated by
an unrelated person, sold or consumed
by the taxpayer, and
``(II) at a minimum, discharged at
such times as a peaker plant within the
same electrical grid load zone would
operate to meet peak electricity demand
(as determined by the grid operator for
such electrical grid), and
``(iii) which is placed in service--
``(I) in a disadvantaged community
which is located within--
``(aa) the same census
tract as a peaker plant, or
``(bb) a census tract that
is adjacent to a census tract
in which a peaker plant is
located, and
``(II) after December 31, 2021.
``(B) Special rule.--For purposes of this
paragraph, a facility shall not be deemed to be a
qualified renewable energy facility unless the taxpayer
demonstrates, to the satisfaction of the Secretary,
that--
``(i) the property described in clause (i)
of subparagraph (A) is co-located with property
described in clause (ii) of such subparagraph,
``(ii) such taxpayer has, with respect to
the property described in clause (ii) of such
subparagraph, entered into a contract which
ensures that such property operates primarily
to receive, store, and deliver electricity from
any property described in clause (i) of such
subparagraph, or
``(iii) the property described in clause
(ii) of such subparagraph receives electricity
during periods of typically high production of
electricity, as a percentage of the grid
generation mix, from sources described in
clause (i) of such subparagraph, as determined
by the grid operator for the electrical grid.
``(c) Certain Progress Expenditure Rules Made Applicable.--Rules
similar to the rules of subsections (c)(4) and (d) of section 46 (as in
effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990) shall apply for purposes of subsection (a).
``(d) Definitions.--The terms `disadvantaged community' and `peaker
plant' have the same meanings given such term under section 2 of the
PEAKER Act of 2021.''.
(b) Conforming Amendments.--
(1) Section 46 of the Internal Revenue Code of 1986 is
amended--
(A) by striking ``and'' at the end of paragraph
(5);
(B) by striking the period at the end of paragraph
(6) and inserting ``, and''; and
(C) by adding at the end the following new
paragraph:
``(7) the renewable energy generation and storage
credit.''.
(2) Section 49(a)(1)(C) of such Code is amended--
(A) by striking ``and'' at the end of clause (iv);
(B) by striking the period at the end of clause (v)
and inserting ``, and''; and
(C) by adding at the end the following new clause:
``(vi) the basis of any qualified property
which is part of a qualified renewable energy
facility under section 48D.''.
(3) Section 50(a)(2)(E) of such Code is amended by striking
``or 48C(b)(2)'' and inserting ``48C(b)(2), or 48D(c)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 48C the following new item:
``48D. Renewable energy generation and storage credit.''.
(c) Effective Date.--The amendments made by this subsection shall
apply to property placed in service after December 31, 2020, under
rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the enactment
of the Revenue Reconciliation Act of 1990).
SEC. 5. RENEWABLE ENERGY GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means
each of the following:
(A) A unit of State or local government.
(B) A tax-exempt nonprofit organization.
(C) A community-owned energy generation facility or
energy storage facility located in a disadvantaged
community.
(D) A community-based energy cooperative or a
similar group of individuals within a community who are
pursuing an eligible project described in subsection
(d).
(E) A partnership between--
(i) 1 or more of the entities described in
subparagraphs (A) through (D); and
(ii)(I) an electric utility; or
(II) a private entity.
(2) Energy storage facility.--The term ``energy storage
facility'' means a facility that receives, stores, and delivers
electricity.
(3) Program.--The term ``program'' means the grant program
established under subsection (b).
(4) Qualifying community energy proposal.--The term
``qualifying community energy proposal'' means a proposal to
deploy and implement renewable energy generation, energy
storage technology, energy efficiency upgrades, energy demand
management strategies, or distributed renewable energy
resources that a qualifying community energy study determines
can reduce the runtime of an existing or planned peaker plant
or otherwise reduce or replace the need for an existing or
planned peaker plant.
(5) Qualifying community energy study.--The term
``qualifying community energy study'' means a study or
assessment that--
(A) seeks to identify clean energy strategies to
reduce the runtime of an existing or planned peaker
plant or otherwise reduce or replace the need for an
existing or planned peaker plant, including strategies
that involve--
(i) renewable energy generation;
(ii) energy storage technology;
(iii) energy efficiency upgrades;
(iv) energy demand management strategies;
or
(v) distributed renewable energy
deployment; and
(B) is led by or performed in partnership with the
communities directly impacted by pollution from a
peaker plant that is located within the same or an
adjacent census tract.
(6) Qualifying energy storage facility.--The term
``qualifying energy storage facility'' means an energy storage
facility that--
(A) is colocated with a qualifying renewable energy
facility and operates primarily to receive, store, and
deliver renewable energy generated by that qualifying
renewable energy facility;
(B) has entered into a contract with 1 or more
qualifying renewable energy facilities such that the
energy storage system operates primarily to receive,
store, and deliver renewable energy generated by those
qualifying renewable energy facilities; or
(C) receives electricity during periods of
typically high production of renewable energy (as a
percentage of the grid generation mix), as determined
by the operator of the applicable electrical grid.
(7) Qualifying renewable energy facility.--The term
``qualifying renewable energy facility'' means a facility
that--
(A) generates renewable energy; and
(B)(i) is colocated with a qualifying energy
storage facility; or
(ii) has entered into a contract described in
paragraph (6)(B) with 1 or more qualifying energy
storage facilities.
(8) Renewable energy.--The term ``renewable energy'' means
electricity that is generated by or derived from, as
applicable--
(A) a low-impact hydroelectric facility certified
by the Low Impact Hydropower Institute;
(B) solar energy;
(C) wind energy;
(D) geothermal energy;
(E) tidal energy; or
(F) wave energy.
(b) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a grant program to
assist eligible entities in--
(1) carrying out projects for the construction,
reconstruction, erection, installation, or acquisition of
qualifying renewable energy facilities and qualifying energy
storage facilities;
(2) carrying out projects for the implementation of
qualifying community energy proposals; and
(3) developing and carrying out qualifying community energy
studies.
(c) Applications.--To be eligible to receive a grant under the
program, an eligible entity shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require.
(d) Eligible Projects and Qualifying Community Energy Studies.--The
Secretary may provide a grant under the program for--
(1) a project described in subsection (b)(1) only if each
qualifying renewable energy facility and qualifying energy
storage facility to be constructed, reconstructed, erected,
installed, or acquired pursuant to the project will--
(A) be located in, or provide a direct and
significant benefit to, a disadvantaged community that
is located within--
(i) the same census tract as an existing or
planned peaker plant; or
(ii) a census tract that is adjacent to a
census tract in which an existing or planned
peaker plant is or will be located; and
(B) at a minimum, discharge electricity at such
times as a peaker plant within the same electrical grid
load zone would operate to meet peak electricity
demand, as determined by the operator of the applicable
electrical grid;
(2) a project described in subsection (b)(2) only if the
qualifying community energy proposal to be implemented pursuant
to the project will be implemented in, or provide a direct and
significant benefit to, a disadvantaged community that is
located within a census tract described in clause (i) or (ii)
of paragraph (1)(A); and
(3) the development and carrying out of a qualifying
community energy study only if the qualifying community energy
study will provide for engagement with, and incorporate
feedback from, each disadvantaged community that is located
within a census tract described in clause (i) or (ii) of
paragraph (1)(A).
(e) Technical Assistance Grants.--The Secretary may use amounts
appropriated under subsection (i) to provide grants to eligible
entities for the cost of acquiring technical assistance for the
preparation and submission of an application under subsection (c).
(f) Priority for Certain Eligible Entities.--In evaluating
applications submitted by eligible entities described in subsection
(a)(1)(B), the Secretary shall give priority to applications submitted
by local, community-based organizations or energy cooperatives.
(g) Cost Sharing.--
(1) In general.--Except as provided in paragraph (2), with
respect to each project described in paragraph (1) or (2) of
subsection (b) for which a grant is provided under the program,
the maximum amount provided for the project under the program
shall not exceed 60 percent of the total cost incurred by the
applicable eligible entity for, as applicable--
(A) the construction, reconstruction, erection,
installation, or acquisition of the applicable
qualifying renewable energy facility or qualifying
energy storage facility; or
(B) the implementation of the applicable qualifying
community energy proposal.
(2) Local, community-based organizations and energy
cooperatives.--With respect to a project described in paragraph
(1) that is carried out by, or for which an application is
submitted by, a local, community-based organization or an
energy cooperative, the maximum amount provided for the project
under the program shall not exceed 80 percent of the total cost
incurred by the local, community-based organization or energy
cooperative for the activities described in subparagraph (A) or
(B) of that paragraph, as applicable.
(h) Community Engagement.--In carrying out this section, the
Secretary shall initiate and carry out public engagement, particularly
with residents and stakeholders from disadvantaged communities and
communities in or adjacent to areas with existing peaker plants
identified in a report under section 3(a), to ensure that--
(1)(A) the public has input into the formulation of the
program; and
(B) based on that input, the program best addresses the
needs and circumstances of disadvantaged communities; and
(2) the public has information relating to the program,
including--
(A) the benefits of, and opportunities for,
eligible projects under the program; and
(B) the ways in which disadvantaged communities can
best use the program to address the clean energy goals
of those disadvantaged communities.
(i) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out the program not more than
$1,000,000,000 for each of fiscal years 2022 through 2032.
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