; and (II) has in effect a system of enforcing compliance with that State program, including any penalty, that is at least as effective as the system of enforcement under this section. (C) Application (i) Submission A State electing not to participate in this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (ii) Approval The Secretary shall approve an application submitted under clause (i) if the Secretary determines that the State meets the requirements described in subparagraph (B). (D) Waiver (i) In general On approval of an application under subparagraph (C), the Secretary shall issue to the State a waiver from the requirements of this section. (ii) Duration A waiver issued by the Secretary under clause (i) shall be for a period of 3 years. (E) Effect of opt-out (i) In general On receipt of a waiver under subparagraph (D), a State, including any retail electric supplier within the State, shall be exempt from the requirements of this section, including any program established by the Secretary under this section, for the duration of the waiver. (ii) Issuance of Federal renewable energy credits (I) In general Subject to subclause (II), the Secretary shall not issue Federal renewable energy credits for electricity generated in a State that has been issued a waiver under subparagraph (D). (II) Energy consumed in another State On request of an eligible facility located in a State that has been issued a waiver under subparagraph (D), the Secretary may issue to the eligible facility Federal renewable energy credits for electric energy generated by the eligible facility through the use of a renewable energy resource if that electric energy was consumed in a State that has not been issued a waiver under subparagraph (D). (iii) Grants A State that has received a waiver under subparagraph (D) shall not be eligible for a grant under subsection (n). (l) Recovery of costs An electric utility that has sales of electric energy that