[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5927 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5927

To provide energy independence to Americans, to increase the efficiency 
 and decrease the environmental impact of America's energy policy, to 
increase America's research and development in energy, and to encourage 
         the development and use of renewable forms of energy.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2006

  Mr. Cardin introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
 Ways and Means, Transportation and Infrastructure, Government Reform, 
and Science, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To provide energy independence to Americans, to increase the efficiency 
 and decrease the environmental impact of America's energy policy, to 
increase America's research and development in energy, and to encourage 
         the development and use of renewable forms of energy.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Energy 
Independence Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
         TITLE I--AN ENERGY PLAN THAT CHANGES WITH INNOVATIONS

Sec. 101. Purpose and goals.
Sec. 102. Energy Policy Commission.
         TITLE II--INCREASING EFFICIENCY FOR AMERICAN CONSUMERS

Sec. 201. Automobile average fuel economy standards.
Sec. 202. Energy Star program funding.
Sec. 203. Energy Star certification for solar water heaters.
Sec. 204. Fuel efficiency standards for replacement tires.
Sec. 205. Appliance standards.
Sec. 206. Increase in energy efficient commercial buildings deduction.
 TITLE III--ENCOURAGING THE DEVELOPMENT AND AVAILABILITY OF RENEWABLE 
                                 ENERGY

Sec. 301. Federal renewable portfolio standard.
Sec. 302. Electricity transmission lines designed to carry electricity 
                            from renewable energy resources.
Sec. 303. Extension through 2017 for placing qualified facilities in 
                            service for producing renewable electric 
                            energy.
Sec. 304. Net metering.
Sec. 305. Loan guarantees for biorefineries and renewable energy 
                            production facilities.
TITLE IV--INCREASING THE RENEWABLE ENERGY USE AND ENERGY EFFICIENCY OF 
                         THE FEDERAL GOVERNMENT

Sec. 401. Federal energy efficiency.
Sec. 402. Green building standards for Federal buildings.
Sec. 403. Federal renewable and clean energy use.
Sec. 404. Fuel economy of the Federal fleet of vehicles.
Sec. 405. Federal vehicle efficiency requirement.
      TITLE V--INCREASING AMERICAN ENERGY RESEARCH AND DEVELOPMENT

Sec. 501. Authorization of appropriations for the Department of Energy 
                            for basic research.
Sec. 502. Mathematics, Science, and Engineering Education at the 
                            Department of Energy.
Sec. 503. Department of Energy early career research grants.
Sec. 504. Advanced Research Projects Authority--Energy.
  TITLE VI--INCREASING FEDERAL PUBLIC TRANSIT FUNDING AND EFFICIENCY 
                               INCENTIVES

Sec. 601. Transit-oriented development corridors.
Sec. 602. Weatherization assistance.
Sec. 603. Federal support for commercialization of new technologies.
Sec. 604. Telecommuting tax credit.

         TITLE I--AN ENERGY PLAN THAT CHANGES WITH INNOVATIONS

SEC. 101. PURPOSE AND GOALS.

    It is the purpose of this Act to facilitate the achievement of the 
following 2 Congressional goals:
            (1) Achieving energy independence by 2016.--Meeting all but 
        10 percent of the United States energy needs from domestic 
        energy sources by 2016.
            (2) Achieving fossil fuel independence by 2026.--Meeting 
        all but 20 percent of the United States energy needs from non-
        fossil fuel sources by 2026.

SEC. 102. ENERGY POLICY COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the ``National Commission on Energy Independence'' (in this section 
referred to as the ``Commission'').
    (b) Purpose.--The Commission shall conduct a comprehensive review 
of United States energy policy for the following purposes:
            (1) Review.--Reviewing relevant analyses of the current and 
        long-term energy policy and conditions in the United States.
            (2) Identifying problems.--Identifying problems that may 
        threaten the long-term energy policy goals of independence.
            (3) Analyzing potential solutions.--Analyzing potential 
        solutions to problems that threaten the long-term ability to 
        achieve these energy policy goals.
            (4) Providing recommendations.--Providing recommendations 
        that will ensure that the United States energy policy goals are 
        met.
    (c) Report and Recommendations.--
            (1) In general.--Not later than December 31 of 2008, 2010, 
        2012, and 2014, the Commission shall transmit to the President 
        and Congress a report on the progress of United States energy 
        policy towards meeting its long-term goals of energy 
        independence, including a detailed statement of the findings, 
        conclusions, and recommendations of the Commission.
            (2) Legislative language.--If a recommendation submitted 
        under paragraph (1) involves legislative action, the report 
        shall include proposed legislative language to carry out such 
        action.
    (d) Membership.--The Commission shall be composed of 15 members of 
whom--
            (1) 3 shall be appointed by the President;
            (2) 3 shall be appointed by the majority leader of the 
        Senate;
            (3) 3 shall be appointed by the minority leader of the 
        Senate;
            (4) 3 shall be appointed by the Speaker of the House of 
        Representatives; and
            (5) 3 shall be appointed by the minority leader of the 
        House of Representatives.
    (e) Co-Chairpersons.--The President shall designate 2 Co-
chairpersons from among the members of the Commission appointed, who 
shall not both be affiliated with the same political party.
    (f) Date.--Members of the Commission shall be appointed by not 
later than 90 days after the date of enactment of this Act.
    (g) Period of Appointment.--Members shall be appointed for the life 
of the Commission. Any vacancy in the Commission shall not affect its 
powers, but shall be filled in the same manner as the original 
appointment.
    (h) Staff.--
            (1) Director.--The Commission shall have a staff headed by 
        an Executive Director.
            (2) Staff appointment.--The Executive Director may appoint 
        such personnel as the Executive Director and the Commission 
        determine to be appropriate.
            (3) Experts and consultants.--With the approval of the 
        Commission, the Executive Director may procure temporary and 
        intermittent services under section 3109(b) of title 5, United 
        States Code.
            (4) Federal agencies.--
                    (A) Detail of government employees.--Upon the 
                request of the Commission, the head of any Federal 
                agency may detail, without reimbursement, any of the 
                personnel of such agency to the Commission to assist in 
                carrying out the duties of the Commission. Any such 
                detail shall not interrupt or otherwise affect the 
                civil service status or privileges of the Federal 
                employee.
                    (B) Technical assistance.--Upon the request of the 
                Commission, the head of a Federal agency shall provide 
                such technical assistance to the Commission as the 
                Commission determines to be necessary to carry out its 
                duties.
            (5) Resources.--The Commission shall have reasonable access 
        to materials, resources, statistical data, and other 
        information the Commission determines to be necessary to carry 
        out its duties from all relevant Executive Agencies. The Co-
        Chairpersons shall make requests for such access in writing 
        when necessary.

         TITLE II--INCREASING EFFICIENCY FOR AMERICAN CONSUMERS

SEC. 201. AUTOMOBILE AVERAGE FUEL ECONOMY STANDARDS.

    (a) Phased Increases in Fuel Economy Standards.--
            (1) Passenger automobiles.--
                    (A) Minimum standards.--Section 32902(b) of title 
                49, United States Code, is amended to read as follows:
    ``(b) Passenger Automobiles.--Except as otherwise provided under 
this section, the average fuel economy standard for passenger 
automobiles manufactured by a manufacturer in a model year--
            ``(1) after model year 1984 and before model year 2009 
        shall be 25 miles per gallon;
            ``(2) after model year 2008 and before model year 2012 
        shall be 30 miles per gallon;
            ``(3) after model year 2011 and before model year 2015 
        shall be 35 miles per gallon;
            ``(4) after model year 2014 and before model year 2017 
        shall be 40 miles per gallon; and
            ``(5) after model year 2016 shall be 45 miles per 
        gallon.''.
                    (B) Higher standards by regulation.--Section 
                32902(c) of title 49, United States Code, is amended--
                            (i) in paragraph (1)--
                                    (I) by striking ``Subject to 
                                paragraph (2) of this subsection, the'' 
                                and inserting ``The'';
                                    (II) striking ``amending the 
                                standard'' and inserting ``increasing 
                                the standard otherwise applicable''; 
                                and
                                    (III) by striking ``Section 553 of 
                                title 5 applies to'' and inserting the 
                                following:
    ``(2) Section 553 of title 5 applies to''; and
                            (ii) by striking paragraph (2).
    (b) Increased Inclusiveness of Definitions of Automobile and 
Passenger Automobile.--
            (1) Automobile.--
                    (A) In general.--Section 32901(a)(3) of title 49, 
                United States Code, is amended--
                            (i) by striking ``6,000 pounds'' each place 
                        it appears and inserting ``12,000 pounds''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``10,000 pounds'' 
                                and inserting ``14,000 pounds''; and
                                    (II) in clause (ii), by striking 
                                ``an average fuel economy standard'' 
                                and all that follows through 
                                ``conservation or''.
                    (B) Special rule.--Section 32908(a)(1) of such 
                title is amended by striking ``8,500 pounds'' and 
                inserting ``14,000 pounds''.
            (2) Passenger automobile.--Section 32901(a)(16) of title 
        49, United States Code, is amended to read as follows:
            ``(16) `passenger automobile' means an automobile having a 
        gross vehicle weight of 10,000 pounds or less that is designed 
        to be used principally for the transportation of persons;''.
    (c) Civil Penalties.--
            (1) Increased penalty for violations of fuel economy 
        standards.--Section 32912(b) of title 49, United States Code, 
        is amended--
                    (A) by inserting ``(1)'' before ``Except as 
                provided'';
                    (B) by striking ``$5'' and inserting ``the dollar 
                amount applicable under paragraph (2)'';
                    (C) by redesignating paragraphs (1), (2), and (3) 
                as subparagraphs (A), (B), and (C), respectively; and
                    (D) by adding at the end the following:
            ``(2)(A) The dollar amount referred to in paragraph (1) is 
        $10, as increased pursuant subparagraph (B);
            ``(B) Effective on October 1 of each year, the dollar 
        amount applicable under subparagraph (A) shall be increased by 
        the percentage (rounded to the nearest \1/10\ of 1 percent) by 
        which the Consumer Price Index for all-urban consumers 
        (published by the Department of Labor) for July of such year 
        exceeds such price index for July of the preceding year. The 
        amount calculated under the preceding sentence shall be rounded 
        to the nearest $0.10.''.
            (2) Conforming amendment.--Section 32912(c)(1) of title 49, 
        United States Code, is amended--
                    (A) by striking subparagraph (B); and
                    (B) by redesignating subparagraphs (C) and (D) as 
                subparagraphs (B) and (C), respectively.
            (3) Applicability.--The amendments made by this section 
        shall apply with respect to automobiles manufactured for model 
        years beginning after the date of enactment of this Act.

SEC. 202. ENERGY STAR PROGRAM FUNDING.

    There are authorized to be appropriated for carrying out the Energy 
Star program under section 324A of the Energy Policy and Conservation 
Act--
            (1) to the Administrator of the Environmental Protection 
        Agency $100,000,000 for each fiscal year; and
            (2) to the Secretary of Energy $12,000,000 for each fiscal 
        year.

SEC. 203. ENERGY STAR CERTIFICATION FOR SOLAR WATER HEATERS.

    Not later than January 1, 2008, the Secretary of Energy, in 
consultation with the Administrator of the Environmental Protection 
Agency, shall adopt regulations establishing Energy Star Program 
requirements and an Energy Star rating program for commercial and 
residential solar water heating devices.

SEC. 204. FUEL EFFICIENCY STANDARDS FOR REPLACEMENT TIRES.

    (a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123 of title 49, United States Code, is amended--
            (1) in subsection (b), by inserting after the first 
        sentence the following: ``The grading system shall include 
        standards for rating the fuel efficiency of tires designed for 
        use on automobiles subject to the automobile fuel economy 
        standards under chapter 329''; and
            (2) by adding at the end of the following:
    ``(d) National Tire Fuel Efficiency Program.--
            ``(1) The secretary shall develop and carry out a national 
        tire efficiency program for tires designed for use on passenger 
        cars and light trucks. such program shall include--
                    ``(A) policies and procedures for testing and 
                labeling tires for fuel economy to enable tire buyers 
                to make informed purchasing decisions about the fuel 
                economy of tires;
                    ``(B) policies and procedures to promote the 
                purchase of energy-efficient replacement tires, 
                including purchase incentives, website listings on the 
                Internet, printed fuel economy guide booklets, and 
                mandatory requirements for tire retailers to provide 
                tire buyers with fuel-efficiency information on tires; 
                and
                    ``(C) minimum fuel economy standards for tires, 
                promulgated by the Secretary.
            ``(2) The minimum fuel economy standards for tires shall--
                    ``(A) ensure that, in conjunction with the 
                requirements of paragraph (1)(B), the average fuel 
                economy of replacement tires is equal to or better than 
                the average fuel economy of tires sold as original 
                equipment;
                    ``(B) secure the maximum technically feasible and 
                cost-effective fuel savings; and
                    ``(C) not adversely affect tire safety;
                    ``(D) not adversely affect the average tire life of 
                replacement tires;
                    ``(E) Incorporate the results from--
                            ``(i) laboratory testing; and
                            ``(ii) to the extent appropriate and 
                        available, on-road fleet testing programs 
                        conducted by manufacturers; and
                    ``(F) not adversely affect efforts to manage scrap 
                tires.
            ``(3) The policies, procedures, and standards developed 
        under paragraph (1) shall apply to all tire types an models 
        that are covered by the Uniform Tire Quality Grading Standards 
        in section 575.104 of title 49, Code of Federal Regulations (or 
        any successor regulation).
            ``(4) Not less than every 3 years, the Secretary shall 
        review the minimum fuel economy standards in effect for tires 
        under this subsection and revise the standards as necessary to 
        ensure compliance with requirements under paragraph (2). The 
        Secretary may not reduce the average fuel economy standards 
        applicable to replacement tires.
            ``(5) Nothing in this section shall be construed to preempt 
        any provisions of state law relating to higher fuel economy 
        standards applicable to replacement tires designed for use on 
        passenger cars and light trucks. nothing in this chapter shall 
        apply to--
                    ``(A) a tire or group of tires with the same 
                product identification number, plant, and year, for 
                which the volume of tires produced or imported is less 
                than 15,000 annually;
                    ``(B) a deep tread, winter-type snow tire, space-
                saver tire, or temporary use spare tire;
                    ``(C) a tire with a normal rim diameter of 12 
                inches or less;
                    ``(D) a motorcycle tire; or
                    ``(E) a tire manufactured specifically for use in 
                an off-road motorized recreational vehicle.
            ``(6) In this subsection, the term `fuel economy', with 
        respect to tires, means the extent to which the tire contribute 
        to the fuel economy of the motor vehicles on which the tire are 
        mounted.''.
    (b) Conforming Amendment.--Section 30103(b)(1) of title 49, United 
States Code, is amended by striking ``When'' and inserting ``Except as 
provided in section 30123(d) of this title, when''.
    (c) Implementation.--The Secretary of Transportation shall ensure 
that the national tire fuel efficiency program required under 
subsection (d) of section 30123 of title 49, United States Code, (as 
added by subsection (a)(2)), is administered so as to apply the 
policies, procedures, and standards developed under paragraph (1) of 
such subsection beginning not later than March 31, 2008.

SEC. 205. APPLIANCE STANDARDS.

    (a) Standards for Household Appliances in Standby Mode.--Section 
325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is 
amended by adding at the end the following:
    ``(hh) Standby Mode Electric Energy Consumption by Household 
Appliances.--
            ``(1) Definition.--In this subsection, the term `household 
        appliance' means any device that uses household electric 
        current and operates in a standby mode except digital 
        televisions, digital set top boxes, and digital video 
        recorders.
            ``(2) Standard.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a household appliance that is 
                manufactured in, or imported for sale in, the United 
                States on or after the date that is 3 years after the 
                date of enactment of this subsection shall not consume 
                in standby mode more than 1 watt.
                    ``(B) Analog televisions.--In the case of analog 
                televisions, the Secretary shall prescribe, on or after 
                the date that is 2 years after the date of enactment of 
                this subsection, in accordance with subsections (o) and 
                (p), an energy conservation standard that is 
                technologically feasible and economically justified 
                under subsection (o)(2)(A) (in lieu of the 1 watt 
                standard under subparagraph (A)).
            ``(3) Exemptions.--
                    ``(A) Application.--A manufacturer or importer of a 
                household appliance or their designated agent may 
                submit to the Secretary an application for an exemption 
                of a household appliance or class of appliances from 
                the standard under paragraph (2).
                    ``(B) Criteria for exemption.--The Secretary shall 
                grant an exemption for a household appliance or class 
                of appliances for which an application is made under 
                subparagraph (A) if the applicant provides evidence 
                showing that, and the Secretary determines that--
                            ``(i) it is not technically feasible to 
                        modify the household appliance or appliances 
                        concerned to enable them to meet the standard;
                            ``(ii) the standard is incompatible with an 
                        energy efficiency standard applicable to the 
                        household appliance or class of appliances 
                        under another subsection; or
                            ``(iii) the cost of electricity that a 
                        typical consumer would save in operating the 
                        household appliance or class of appliances 
                        meeting the standard would not equal the 
                        increase in the price of the household 
                        appliance or class of appliances that would be 
                        attributable to the modifications that would be 
                        necessary to enable the household appliance or 
                        class of appliances to meet the standard by the 
                        earlier of--
                                    ``(I) the date that is 7 years 
                                after the date of purchase of the 
                                household appliance concerned; or
                                    ``(II) the end of the useful life 
                                of the household appliance.
                    ``(C) Determination of technical infeasibility.--If 
                the Secretary determines that it is not technically 
                feasible to modify a household appliance or class of 
                appliances to meet the standard under paragraph (2), 
                the Secretary shall establish a different standard for 
                the household appliance or class of appliances in 
                accordance with the criteria under subsection (l).
            ``(4) Test procedure.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Secretary 
                shall establish a test procedure for determining the 
                amount of consumption of power by a household appliance 
                operating in standby mode.
                    ``(B) Considerations.--In establishing the test 
                procedure, the Secretary shall consider--
                            ``(i) international test procedures under 
                        development;
                            ``(ii) test procedures used in connection 
                        with the Energy Star program; and
                            ``(iii) test procedures used for measuring 
                        power consumption in standby mode in other 
                        countries.
            ``(5) Further reduction of standby power consumption.--The 
        Secretary shall provide technical assistance to manufacturers 
        in achieving further reductions in standby mode electric energy 
        consumption by household appliances.
    ``(ii) Standby Mode Electric Energy Consumption by Digital 
Televisions, Digital Set Top Boxes, and Digital Video Recorders.--The 
Secretary shall initiate within 5 years of the date of enactment of 
this subsection a rulemaking to prescribe, in accordance with 
subsections (o) and (p), an energy conservation standard of standby 
mode electric energy consumption by digital television sets, digital 
set top boxes, and digital video recorders. The Secretary shall issue a 
final rule prescribing such standards not later than 18 months 
thereafter. In determining whether a standard under this subsection is 
technologically feasible and economically justified under subsection 
(o)(2)(A), the Secretary shall consider the potential negative effects 
on market penetration by digital products covered under this 
subsection, and shall consider any recommendations by the Federal 
Communications Commission regarding such effects.''.
    (b) Standards for Noncovered Products.--
            (1) Section 325(m) of the Energy Policy and Conservation 
        Act (42 U.S.C. 6295(m)) is amended as follows:
                    (A) Inserting ``(1)'' before ``After''.
                    (B) Inserting the following at the end:
    ``(2) Not later than one year after the date of enactment of this 
paragraph, and every 5 years thereafter, the Secretary shall conduct a 
rulemaking to determine whether consumer or commercial products not 
classified as a covered product under section 322(a)(1) through (19) 
meet the criteria of section 322(b)(1). If the Secretary finds that a 
consumer or commercial product not classified as a covered product 
meets the criteria of section 322(b)(1), the Secretary shall prescribe, 
in accordance with subsections (o) and (p), an energy conservation 
standard for such consumer or commercial product.''.
            (2) Part B of title III of such Act is amended as follows:
                    (A) In the heading for such part by inserting ``AND 
                COMMERCIAL'' after ``CONSUMER''.
                    (B) In section 321(2) by striking ``consumer 
                product of a type specified in section 322'' and 
                inserting ``consumer or commercial product of a type 
                specified in section 322(a)''.
                    (C) In paragraphs (4), (5), (7), (12), (13), (14), 
                (15), (32), and (36) of section 321 by striking 
                ``consumer'' in each place it appears and inserting 
                ``covered''.
                    (D) In section 322(a) by inserting ``or 
                commercial'' after ``consumer'' the first place it 
                appears and in paragraph (19).
                    (E) In section 322(b), by inserting ``or 
                commercial'' after ``consumer'' in each place it 
                appears.
                    (F) In section 322(b)(1)(B) and (b)(2)(A), by 
                inserting ``(or per-business in the case of a 
                commercial product)'' after ``per-household'' in each 
                place it appears.
                    (G) In section 322(b)(2)(A) by inserting ``(or 
                businesses in the case of commercial products)'' after 
                ``households'' in each place it appears.
                    (H) In section 322(b)(2)(C) by striking ``term'' 
                and inserting ``terms'' and by inserting ``and 
                business'' after ``household''.
                    (I) In sections 323 though 325 (except in section 
                325(o)(2)(B)(iii), (q)(1), and (bb)(3)(B)), and in 
                section 337(a)(3) and the last sentence of section 
                337(a), by inserting ``or commercial'' after 
                ``consumer'' in each place it appears.
    (c) Efficiency Standards for Other Consumer and Commercial 
Products.--
            (1) Definitions.--Section 321 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6291) is amended by adding the 
        following at the end thereof:
            ``(52) The term `residential furnace fan' means an electric 
        fan installed as part of a furnace for purposes of circulating 
        air through the system air filters, the heat exchangers or 
        heating elements of the furnace, and the duct work.
            ``(53) The terms `residential central air conditioner fan' 
        and `heat pump circulation fan' mean an electric fan installed 
        as part of a central air conditioner or heat pump for purposes 
        of circulating air through the system air filters, the heat 
        exchangers of the air conditioner or heat pump, and the duct 
        work.''.
            (2) Testing requirements.--Section 323 of the Energy Policy 
        and Conservation Act (42 U.S.C. 6293) is amended by adding the 
        following at the end thereof:
    ``(g) Additional Covered Products.--The Secretary shall within 18 
months after the date of enactment of this subsection prescribe testing 
requirements for the consumer and commercial products referred to in 
paragraphs (52) and (53) of section 321. Such testing requirements 
shall be based on existing test procedures used in industry to the 
extent practical and reasonable. Such test procedures shall include 
efficiency at both maximum output and at an output no more than 50 
percent of the maximum output.''.
            (3) Standards for additional covered products.--Section 325 
        of the Energy Policy and Conservation Act (42 U.S.C. 6295), as 
        amended by subsection (a) of this section, is amended by adding 
        the following at the end thereof:
    ``(jj) Residential Furnace Fans and Central Air Conditioner Fans.--
(1) The Secretary shall, within 18 months after the date of enactment 
of this subsection, assess the current and projected future market for 
the products referred to in paragraphs (52) and (53) of section 321. 
This assessment shall include an examination of the types of these 
products sold, the number of these products in use, annual sales of 
these products, energy used by these products sold, estimates of the 
potential energy savings from specific technical improvements to these 
products, and an examination of the cost-effectiveness of these 
improvements. Prior to the end of this time period, the Secretary shall 
hold an initial scoping workshop to discuss and receive input to plans 
for developing minimum efficiency standards for these products.
    ``(2) The Secretary shall within 24 months after the date on which 
testing requirements are prescribed by the Secretary pursuant to 
section 323(g), prescribe, by rule, energy conservation standards for 
residential furnace fans and residential central air conditioner fans. 
In establishing these standards, the Secretary shall use the criteria 
and procedures contained in this section. Any standard prescribed under 
this section shall apply to products manufactured 36 months after the 
date such rule is published.''.
            (4) Labeling.--Section 324(a) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6294(a)) is amended by adding the 
        following at the end thereof:
            ``(6) The Secretary shall within 6 months after the date on 
        which energy conservation standards are prescribed by the 
        Secretary, prescribe, by rule, labeling requirements for the 
        consumer and commercial products referred to in paragraphs (52) 
        and (53) of section 321. These requirements shall take effect 
        on the same date as the standards prescribed pursuant to 
        section 325(jj).''.
            (5) Covered products.--Section 322(a) of the Energy Policy 
        and Conservation Act (42 U.S.C. 6292(a)) is amended by 
        redesignating paragraph (19) as (20) and by inserting the 
        following after paragraph (18):
            ``(19) Beginning on the effective date for standards 
        established pursuant to subsection (jj) of section 325, each 
        product referred to in such subsection (jj).''.

SEC. 206. INCREASE IN ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    (a) In General.--Subsection (b)(1)(A) of section 179D of the 
Internal Revenue Code of 1986 (relating to energy efficient commercial 
buildings deduction) is amended by striking ``$1.80'' and inserting 
``$2.25''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of enactment of this 
Act, in taxable years beginning after such date.

 TITLE III--ENCOURAGING THE DEVELOPMENT AND AVAILABILITY OF RENEWABLE 
                                 ENERGY

SEC. 301. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    (a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 is amended by adding at the end the following:

``SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Minimum Renewable Generation Requirement.--For each calendar 
year beginning in calendar year 2008, each retail electric supplier 
shall submit to the Secretary, not later than April 1 of the following 
calendar year, renewable energy credits in an amount equal to the 
required annual percentage specified in subsection (b).
    ``(b) Required Annual Percentage.--For calendar years 2008 through 
2037, the required annual percentage of the retail electric supplier's 
base amount that shall be generated from renewable energy resources, or 
otherwise credited towards such percentage requirement pursuant to 
subsection (c), shall be the percentage specified in the following 
table:

                                                        Required annual
``Calendar Years                                             percentage
        2008...................................................      2 
        2009...................................................      4 
        2010...................................................      6 
        2011...................................................      8 
        2012...................................................     10 
        2013...................................................     12 
        2014...................................................     14 
        2015...................................................     16 
        2016...................................................     18 
        2017...................................................     20 
        2018...................................................     22 
        2019...................................................     24 
        2020 and thereafter....................................     25.
    ``(c) Submission of Credits.--(1) A retail electric supplier may 
satisfy the requirements of subsection (a) through the submission of 
renewable energy credits--
            ``(A) issued to the retail electric supplier under 
        subsection (d);
            ``(B) obtained by purchase or exchange under subsection 
        (e); or
            ``(C) borrowed under subsection (f).
    ``(2) A renewable energy credit may be counted toward compliance 
with subsection (a) only once.
    ``(d) Issuance of Credits.--(1) The Secretary shall establish by 
rule, not later than 1 year after the date of enactment of this 
section, a program to issue and monitor the sale or exchange of, and 
track, renewable energy credits and enforce the requirements of this 
section.
    ``(2) Under the program established by the Secretary, an entity 
that generates electric energy through the use of a renewable energy 
resource may apply to the Secretary for the issuance of renewable 
energy credits. The applicant must demonstrate that the electric energy 
will be transmitted onto the grid or, in the case of a generation 
offset, that the electric energy offset would have otherwise been 
consumed on site. The application shall indicate--
            ``(A) the type of renewable energy resource used to produce 
        the electricity;
            ``(B) the location where the electric energy was produced; 
        and
            ``(C) any other information the Secretary determines 
        appropriate.
    ``(3)(A) Except as provided in subparagraphs (B), (C), and (D), the 
Secretary shall issue to each entity that generates electric energy one 
renewable energy credit for each kilowatt hour of electric energy the 
entity generates from the date of enactment of this section and in each 
subsequent calendar year through the use of a renewable energy resource 
at an eligible facility.
    ``(B) For incremental hydropower the renewable energy credits shall 
be calculated based on the expected increase in average annual 
generation resulting from the efficiency improvements or capacity 
additions. The number of credits shall be calculated using the same 
water flow information used to determine a historic average annual 
generation baseline for the hydroelectric facility and certified by the 
Secretary or the Federal Energy Regulatory Commission. The calculation 
of the renewable energy credits for incremental hydropower shall not be 
based on any operational changes at the hydroelectric facility not 
directly associated with the efficiency improvements or capacity 
additions.
    ``(C) For electric energy generated by a renewable energy resource 
at an on-site eligible facility, used to offset part or all of the 
customer's requirements for electric energy, the Secretary shall issue 
three renewable energy credits for each kilowatt hour generated.
    ``(D) In the case of a retail electric supplier that is subject to 
a State renewable standard program that--
            ``(i) requires the generation of electricity from renewable 
        energy; or
            ``(ii) provides for alternative compliance payments in 
        satisfaction of applicable State requirements under the 
        program, the Secretary shall issue an amount of renewable 
        energy credits equal to the amount of renewable energy credits 
        that the Secretary would have issued had a payment of the same 
        amount been made to the Secretary under subsection (g).
Such renewable energy credits may be applied against the retail 
electric supplier's own required annual percentage or may be 
transferred for use only by an associate company of the retail electric 
supplier.
    ``(E) To be eligible for a renewable energy credit, the unit of 
electric energy generated through the use of a renewable energy 
resource may be sold or may be used by the generator. If both a 
renewable energy resource and a nonrenewable energy resource are used 
to generate the electric energy, the Secretary shall issue renewable 
energy credits based on the proportion of the renewable energy 
resources used. The Secretary shall identify renewable energy credits 
by type and date of generation.
    ``(4) When a generator sells electric energy generated through the 
use of a renewable energy resource to a retail electric supplier under 
a contract subject to section 210 of this Act, the retail electric 
supplier is treated as the generator of the electric energy for the 
purposes of this section or the duration of the contract.
    ``(5) The Secretary shall issue renewable energy credits for 
existing facility offsets to be applied against a retail electric 
supplier's required annual percentage. Such credits are not tradeable 
and may be used only in the calendar year generation actually occurs.
    ``(e) Credit Trading.--A renewable energy credit, may be sold or 
exchanged by the entity to whom issued or by any other entity who 
acquires the renewable energy credit, except for those renewable energy 
credits issued pursuant to subsection (d)(3)(E). A renewable energy 
credit for any year that is not used to satisfy the minimum renewable 
generation requirement of subsection (a) for that year may be carried 
forward for use within the next 4 years.
    ``(f) Renewable Energy Credit Borrowing.--At any time before the 
end of calendar year 2010, a retail electric supplier that has reason 
to believe it will not have sufficient renewable energy credits to 
comply with subsection (a) may--
            ``(1) submit a plan to the Secretary demonstrating that the 
        retail electric supplier will earn sufficient credits within 
        the next 3 calendar years which, when taken into account, will 
        enable the retail electric supplier to meet the requirements of 
        subsection (a) for calendar year 2010 and the subsequent 
        calendar years involved; and
            ``(2) upon the approval of the plan by the Secretary, apply 
        renewable energy credits that the plan demonstrates will be 
        earned within the next 3 calendar years to meet the 
        requirements of subsection (a) for each calendar year involved.
The retail electric supplier must repay all of the borrowed renewable 
energy credits by submitting an equivalent number of renewable energy 
credits, in addition to those otherwise required under subsection (a), 
by calendar year 2008 or any earlier deadlines specified in the 
approved plan. Failure to repay the borrowed renewable energy credits 
shall subject the retail electric supplier to civil penalties under 
subsection (h) for violation of the requirements of subsection (a) for 
each calendar year involved.
    ``(g) Credit Cost Cap.--The Secretary shall offer renewable energy 
credits for sale at the lesser of 3 cents per kilowatt-hour or 200 
percent of the average market value of renewable credits for the 
applicable compliance period. On January 1 of each year following 
calendar year 2006, the Secretary shall adjust for inflation the price 
charged per credit for such calendar year, based on the Gross Domestic 
Product Implicit Price Deflator.
    ``(h) Enforcement.--A retail electric supplier that does not submit 
renewable energy credits as required under subsection (a) shall be 
liable for the payment of a civil penalty. That penalty shall be 
calculated on the basis of the number of renewable energy credits not 
submitted, multiplied by the lesser of 4.5 cents or 300 percent of the 
average market value of credits for the compliance period. Any such 
penalty shall be due and payable without demand to the Secretary as 
provided in the regulations issued under subsection (d).
    ``(i) Information Collection.--The Secretary may collect the 
information necessary to verify and audit--
            ``(1) the annual electric energy generation and renewable 
        energy generation of any entity applying for renewable energy 
        credits under this section;
            ``(2) the validity of renewable energy credits submitted by 
        a retail electric supplier to the Secretary; and
            ``(3) the quantity of electricity sales of all retail 
        electric suppliers.
    ``(j) Environmental Savings Clause.--Incremental hydropower shall 
be subject to all applicable environmental laws and licensing and 
regulatory requirements.
    ``(k) Existing Programs.--(1) This section does not preclude a 
State from imposing additional renewable energy requirements in that 
State, including specifying eligible technologies under such State 
requirements.
    ``(2) In the rule establishing this program, the Secretary shall 
incorporate common elements of existing renewable energy programs, 
including state programs, to ensure administrative ease, market 
transparency and effective enforcement. The Secretary shall work with 
the States to minimize administrative burdens and costs and to avoid 
duplicating compliance charges to retail electric suppliers.
    ``(l) Definitions.--For purposes of this section:
            ``(1) Biomass.--The term `biomass' means any organic 
        material that is available on a renewable or recurring basis, 
        including dedicated energy crops, trees grown for energy 
        production, wood waste and wood residues, plants (including 
        aquatic plants, grasses, and agricultural crops), residues, 
        fibers, animal wastes and other organic waste materials (but 
        not including unsegregated municipal solid waste (garbage)), 
        and fats and oils, except that with respect to material removed 
        from National Forest System lands the term includes only 
        organic material from--
                    ``(A) precommercial thinnings;
                    ``(B) slash;
                    ``(C) brush; and
                    ``(D) mill residues.
            ``(2) Eligible facility.--The term `eligible facility' 
        means--
                    ``(A) a facility for the generation of electric 
                energy from a renewable energy resource that is placed 
                in service on or after the date of enactment of this 
                section or the effective date of the applicable State 
                renewable portfolio standard program; or
                    ``(B) a repowering or cofiring increment that is 
                placed in service on or after the date of enactment of 
                this section or the effective date of the applicable 
                State renewable portfolio standard program at a 
                facility for the generation of electric energy from a 
                renewable energy resource that was placed in service 
                before that date.
            ``(3) Existing facility offset.--The term `existing 
        facility offset' means renewable energy generated from an 
        existing facility, not classified as an eligible facility, that 
        is owned or under contract, directly or indirectly, to a retail 
        electric supplier on the date of enactment of this section.
            ``(4) Incremental hydropower.--The term `incremental 
        hydropower' means additional generation that is achieved from 
        increased efficiency or additions of capacity on or after the 
        date of enactment of this section or the effective date of the 
        applicable State renewable portfolio standard program, at a 
        hydroelectric facility that was placed in service before that 
        date.
            ``(5) Renewable energy.--The term `renewable energy' means 
        electric energy generated by a renewable energy resource.
            ``(6) Renewable energy resource.--The term `renewable 
        energy resource' means solar, wind, ocean, geothermal energy, 
        biomass (not including municipal solid waste), landfill gas, a 
        generation offset, or incremental hydropower.
            ``(7) Repowering or cofiring increment.--The term 
        `repowering or cofiring increment' means--
                    ``(A) the additional generation from a modification 
                that is placed in service on or after the date of 
                enactment of this section or the effective date of the 
                applicable State renewable portfolio standard program 
                to expand electricity production at a facility used to 
                generate electric energy from a renewable energy 
                resource or to cofire biomass that was placed in 
                service before the date of enactment of this section or 
                the effective date of the applicable State renewable 
                portfolio standard program, or
                    ``(B) the additional generation above the average 
                generation in the 3 years preceding the date of 
                enactment of this section or the effective date of the 
                applicable State renewable portfolio standard program 
                to expand electricity production at a facility used to 
                generate electric energy from a renewable energy 
                resource or to cofire biomass that was placed in 
                service before the date of enactment of this section or 
                the effective date of the applicable State renewable 
                portfolio standard program.
            ``(8) Retail electric supplier.--The term `retail electric 
        supplier' means a person that sells electric energy to electric 
        consumers and sold not less than 1,000,000 megawatt-hours of 
        electric energy to electric consumers for purposes other than 
        resale during the preceding calendar year; except that such 
        term does not include the United States, a State or any 
        political subdivision of a State, or any agency, authority, or 
        instrumentality of any one or more of the foregoing or a rural 
        electric cooperative.
            ``(9) Retail electric supplier's base amount.--The term 
        `retail electric supplier's base amount' means the total amount 
        of electric energy sold by the retail electric supplier, 
        expressed in kilowatt hours, to electric customers for purposes 
        other than resale during the most recent calendar year for 
        which information is available, excluding electric energy 
        generated by a hydroelectric facility.
    ``(m) Recovery of Costs.--An electric utility whose sales of 
electric energy are subject to rate regulation, including any utility 
whose rates are regulated by the Commission and any State regulated 
electric utility, shall not be denied the opportunity to recover the 
full amount of the prudently incurred incremental cost of renewable 
energy obtained to comply with the requirements of subsection (a) for 
sales to electric customers which are subject to rate regulation, 
notwithstanding any other law, regulation, rule, administrative order 
or any agreement between the electric utility and either the Commission 
or a State regulatory authority. For the purpose of this subsection, 
the term `incremental cost of renewable energy' means--
            ``(1) the additional cost to the electric utility for the 
        purchase or generation of renewable energy to satisfy the 
        minimum renewable generation requirement of subsection (a), as 
        compared to the cost of the electric energy the electric 
        utility would generate or purchase from another source but for 
        the requirements of subsection (a); and
            ``(2) the cost to the electric utility for acquiring by 
        purchase or exchange renewable energy credits to satisfy the 
        minimum renewable generation requirement of subsection (a).
For purposes of this subsection, the definitions in section 3 of this 
Act shall apply to the terms `electric utility', `State regulated 
electric utility', `State agency', `Commission', and `State regulatory 
authority'.
    ``(n) Voluntary Participation.--The Secretary shall encourage 
federally-owned utilities, municipally-owned utilities and rural 
electric cooperatives that sell electric energy to electric consumers 
for purposes other than resale to participate in the renewable 
portfolio standard program. A municipally-owned utility or rural 
electric cooperative that owns or has under contract a facility for the 
generation of electric energy from a renewable energy resource may not 
sell or trade renewable energy credits generated by such resource 
unless it participates in the renewable portfolio standard program 
under the same terms and conditions as retail electric suppliers.
    ``(o) Program Review.--The Secretary shall conduct a comprehensive 
evaluation of all aspects of the Renewable Portfolio Standard program, 
within 10 years of enactment of this section. The study shall include 
an evaluation of--
            ``(1) the effectiveness of the program in increasing the 
        market penetration and lower the cost of the eligible renewable 
        technologies;
            ``(2) the opportunities for any additional technologies 
        emerging since enactment of this section;
            ``(3) the impact on the regional diversity and reliability 
        of supply sources, including the power quality benefits of 
        distributed generation;
            ``(4) the regional resource development relative to 
        renewable potential and reasons for any under investment in 
        renewable resources; and
            ``(5) the net cost/benefit of the renewable portfolio 
        standard to the national and state economies, including retail 
        power costs, economic development benefits of investment, 
        avoided costs related to environmental and congestion 
        mitigation investments that would otherwise have been required, 
        impact on natural gas demand and price, effectiveness of green 
        marketing programs at reducing the cost of renewable resources.
The Secretary shall transmit the results of the program review and any 
recommendations for modifications and improvements to the program to 
Congress not later than January 1, 2014.
    ``(p) Program Improvements.--Using the results of the review under 
subsection (o), the Secretary shall by rule, within 6 months of the 
completion of the review, make such modifications to the program as may 
be necessary to improve the efficiency of the program and maximize the 
use of renewable energy under the program.
    ``(q) State Renewable Energy Account Program.--(1) The Secretary 
shall establish, not later than December 31, 2007, a State renewable 
energy account program.
    ``(2) All money collected by the Secretary from the sale of 
renewable energy credits shall be deposited into the state renewable 
energy account established pursuant to this subsection. The State 
renewable energy account shall be held by the Secretary and shall not 
be transferred to the Treasury Department.
    ``(3) Proceeds deposited in the state renewable energy account 
shall be used by the Secretary for a program to provide grants to the 
State agency responsible for developing State energy conservation plans 
under section 363 of the Energy Policy and Conservation Act (42 U.S.C. 
6322) for the purposes of promoting renewable energy production and 
providing energy assistance and weatherization services to low-income 
consumers.
    ``(4) The Secretary may issue guidelines and criteria for grants 
awarded under this subsection. At least 75 percent of the funds 
provided to each State shall be used for promoting renewable energy 
production. The funds shall be allocated to the States on the basis of 
retail electric sales subject to the Renewable Portfolio Standard under 
this section or through voluntary participation. To the extent Federal 
credits have been issued without payment due to reciprocity with State 
programs under subsection (d)(3)(E), deductions shall be made from the 
relevant State's allocation. State energy offices receiving grants 
under this section shall maintain such records and evidence of 
compliance as the Secretary may require.
    ``(r) Sunset.--This section expires December 31, 2030.''.
    (b) Table of Contents.--The table of contents for such title is 
amended by adding the following new item at the end:

``Sec. 119. Federal renewable portfolio standard.''.

SEC. 302. ELECTRICITY TRANSMISSION LINES DESIGNED TO CARRY ELECTRICITY 
              FROM RENEWABLE ENERGY RESOURCES.

    The Secretary of the Treasury, in consultation with the Secretary 
of Energy, the Secretary of Commerce, and the Administrator of the 
Environmental Protection Agency, shall establish an appropriate 
investment tax credit for the construction of new electricity 
transmission lines designed primarily to carry electricity from 
renewable energy resources. Such credit shall be sufficient to 
encourage the development of promising rural renewable energy domestic 
resources that otherwise would likely not be developed.

SEC. 303. EXTENSION THROUGH 2017 FOR PLACING QUALIFIED FACILITIES IN 
              SERVICE FOR PRODUCING RENEWABLE ELECTRIC ENERGY.

    (a) In General.--Subsection (d) of section 45 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``January 1, 2008'' each place it appears 
        and inserting ``January 1, 2018'', and
            (2) in paragraph (4) by striking the parenthetical.
    (b) Effective Date.--The amendments made by this section shall 
apply to property originally placed in service on or after January 1, 
2007.

SEC. 304. NET METERING.

    (a) Adoption of Standard.--Section 111(d)(11) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended to read 
as follows:
            ``(11) Net metering.--(A) Each electric utility shall make 
        available upon request net metering service to any electric 
        consumer that the electric utility serves.
            ``(B) For purposes of implementing this paragraph, any 
        reference contained in this section to the date of enactment of 
        the Public Utility Regulatory Policies Act of 1978 shall be 
        deemed to be a reference to the date of enactment of this 
        paragraph.
            ``(C) Notwithstanding subsections (b) and (c) of section 
        112, each State regulatory authority may consider and make a 
        determination concerning whether it is appropriate in the 
        public interest to not implement the standard set out in 
        subparagraph (A) not later than 1 year after the date of 
        enactment of this paragraph.
            ``(D) Nothing in this section shall preclude a State from 
        establishing additional incentives or to encourage on-site 
        generating facilities and net metering in addition to that 
        required under this section.
            ``(E) The Secretary shall report within 11 months of 
        enactment and annually thereafter on the public benefit 
        provided by adoption of net metering and interconnection 
        standards, and the status of state adoption of such.''.
    (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by 
adding at the end the following:
    ``(i) Net Metering.--In undertaking the consideration and making 
the determination under section 111 with respect to the standard 
concerning net metering established by section 111(d)(11), the term 
`net metering service' shall mean a service provided in accordance with 
the following standards:
            ``(1) An electric utility--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(2) An electric utility that sells electric energy to the 
        owner or operator of an on-site generating facility shall 
        measure the quantity of electric energy produced by the on-site 
        facility and the quantity of electric energy consumed by the 
        owner or operator of an on-site generating facility during a 
        billing period with a single bi-directional meter or otherwise 
        in accordance with reasonable metering practices.
            ``(3) If the quantity of electric energy sold by the 
        electric utility to an on-site generating facility exceeds the 
        quantity of electric energy supplied by the on-site generating 
        facility to the electric utility during the billing period, the 
        electric utility may bill the owner or operator for the net 
        quantity of electric energy sold, in accordance with reasonable 
        metering practices.
            ``(4) If the quantity of electric energy supplied by the 
        on-site generating facility to the electric utility exceeds the 
        quantity of electric energy sold by the electric utility to the 
        on-site generating facility during the billing period--
                    ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph; and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period, 
                with the kilowatt-hour credit appearing on the bill for 
                the following billing period.
            ``(5) An eligible on-site generating facility and net 
        metering system used by an electric consumer shall meet all 
        applicable safety, performance, reliability, and 
        interconnection standards established by the National 
        Electrical Code, the Institute of Electrical and Electronics 
        Engineers, and Underwriters Laboratories.
            ``(6) The Commission, after consultation with State 
        regulatory authorities and unregulated electric utilities and 
        after notice and opportunity for comment, may adopt, by rule, 
        additional control and testing and interconnection requirements 
        for on-site generating facilities and net metering systems that 
        the Commission determines are necessary to protect public 
        safety and system reliability.
            ``(7) For purposes of this subsection--
                    ``(A) the term `eligible on-site generating 
                facility' means a facility on the site of a residential 
                electric consumer with a maximum generating capacity of 
                10 kilowatts or less that is fueled by solar energy, 
                wind energy, or fuel cells; or a facility on the site 
                of a commercial electric consumer with a maximum 
                generating capacity of 500 kilowatts or less that is 
                fueled solely by a renewable energy resource, landfill 
                gas, or a high efficiency system;
                    ``(B) the term `renewable energy resource' means 
                solar, wind, biomass, micro-freeflow hydro, or 
                geothermal energy;
                    ``(C) the term `high efficiency system' means fuel 
                cells or combined heat and power; and
                    ``(D) the term `net metering service' means service 
                to an electric consumer under which electric energy 
                generated by that electric consumer from an eligible 
                on-site generating facility and delivered to the local 
                distribution facilities may be used to offset electric 
                energy provided by the electric utility to the electric 
                consumer during the applicable billing period.''.

SEC. 305. LOAN GUARANTEES FOR BIOREFINERIES AND RENEWABLE ENERGY 
              PRODUCTION FACILITIES.

    (a) Authority.--The Secretary of Energy may guarantee not more than 
80 percent of the principal of any loan made to any person or other 
entity for any of the following:
            (1) The construction of any new facility that primarily 
        makes cellulosic biomass ethanol or biomethanol or generates 
        electricity, or any combination thereof, from wind energy, 
        biomass, solar energy, ocean energy or geothermal sources.
            (2) The modification of any facility that primarily 
        generates electricity from wind energy, biomass, solar energy, 
        ocean energy, or geothermal sources if such modification adds 
        additional electric generation capacity from any of such 
        sources.
            (3) The modification of any facility that primarily makes 
        cellulosic biomass ethanol, biomethanol, or electricity from 
        wind energy, biomass, solar energy, ocean energy or geothermal 
        sources if such modification adds additional capacity to make 
        cellulosic biomass ethanol or biomethanol from any such source 
        or combination of sources.
            (4) The conversion of any facility that primarily makes 
        ethanol to a facility that primarily makes cellulosic biomass 
        ethanol.
            (5) The construction of any new ninety percent 
        sequestration coal power facility.
    (b) Conditions.--
            (1) Loan maker.--A loan guaranteed under this section shall 
        be made by a financial institution subject to the examination 
        of the Secretary.
            (2) Environmental laws.--Any project for which a loan 
        guarantee is issued under this section shall be required by the 
        Secretary as a condition of the loan guarantee to comply with 
        all applicable Federal, State, and local environmental laws.
            (3) Other requirements.--Loan requirements, including term, 
        fees, maximum size, collateral requirements, and other 
        features, shall be determined by the Secretary.
    (c) Limitation on Amount.--The Secretary of Energy may make 
commitments to guarantee loans under this section only to the extent 
that the total amount of loan principal guaranteed by the Secretary 
does not exceed $49,000,000,000. Of such total amount, the Secretary 
may make commitments to guarantee--
            (1) not more than $7,000,000,000 of loan principal for each 
        of the following project types--
                    (A) biomass facilities;
                    (B) geothermal energy facilities;
                    (C) ninety percent sequestration coal power 
                facilities;
                    (D) ocean energy facilities; and
                    (E) solar energy facilities;
            (2) not more than $7,000,000,000 of loan principal for 
        cellulosic biomass ethanol;
            (3) not more than $2,000,000,000 of loan principal for 
        biomethanol facilities; and
            (4) not more than $5,000,000,000 of loan principal for wind 
        energy facilities.
    (d) Regulations.--The Secretary of Energy may issue regulations to 
carry out the provisions of this section.
    (e) Definitions.--As used in this section:
            (1) The term ``agricultural livestock'' includes bovine, 
        swine, poultry, and sheep.
            (2) The term ``agricultural livestock waste nutrients'' 
        means agricultural livestock manure and litter, including wood 
        shavings, straw, rice hulls, and other bedding material for the 
        disposition of manure.
            (3) The term ``biomass facility'' means a facility that 
        generates electricity from closed-loop biomass, open-loop 
        biomass, or both.
            (4) The term ``biomethanol facility'' means a facility that 
        generates methanol from biomass, animal waste, or municipal 
        solid waste.
            (5) The term ``cellulosic biomass ethanol'' means ethanol 
        derived from any nonhazardous lignocellulosic or hemicellulosic 
        matter that is available on a renewable or recurring basis, 
        including--
                    (A) dedicated energy crops and trees;
                    (B) the following forest-related resources--
                            (i) harvesting residue;
                            (ii) pre-commercial thinnings;
                            (iii) slash; and
                            (iv) bush;
                    (C) plants;
                    (D) grasses
                    (E) agricultural residues
                    (F) fibers;
                    (G) animal wastes and other waste materials; and
                    (H) municipal solid waste.
            (6) The term ``cellulosic biomass ethanol facility'' means 
        a facility that produces cellulosic biomass ethanol.
            (7) The term ``closed-loop biomass'' means any organic 
        material from a plant which is planted exclusively for purposes 
        of being used at a biomass facility to produce electricity.
            (8) The term ``geothermal energy facility'' means a 
        facility that generates electricity from geothermal energy.
            (9) The term ``ninety percent sequestration coal power 
        facility'' means a facility that generates electricity using 
        coal as a fuel source and sequesters, rather than releases to 
        the atmosphere, at least 90 percent of the carbon dioxide 
        emissions resulting from such coal combustion.
            (10) The term ``ocean energy facility'' means a facility 
        that generates electricity from ocean tidal, wave, current or 
        thermal processes.
            (11) The term ``open-loop biomass'' means any agricultural 
        livestock waste nutrients, or any solid, nonhazardous, 
        cellulosic waste material which is segregated from other waste 
        materials and which is derived from--
                    (A) any of the following forest-related resources: 
                mill and harvesting residues, precommercial thinnings, 
                slash, and brush, but not including old-growth timber 
                or black liquor,
                    (B) old wood waste materials, including waste 
                pallets, crates, dunnage, manufacturing and 
                construction wood wastes (other than pressure-treated, 
                chemically-treated, or painted wood wastes), and 
                landscape or right-of-way tree trimmings, but not 
                including unsegregated municipal solid waste (garbage) 
                or postconsumer wastepaper which can be recycled 
                affordably, or
                    (C) agriculture sources, including orchard tree 
                crops, vineyard, grain, legumes, sugar, and other crop 
                by-products or residues.
        Such term shall not include closed-loop biomass or biomass 
        burned in conjunction with fossil fuel (cofiring) beyond such 
        fossil fuel required for startup and flame stabilization.
            (12) The term ``sequestration'' means the capture, long-
        term separation, isolation, or removal of greenhouse gases from 
        the atmosphere.
            (13) The term ``solar energy facility'' means a facility 
        that generates electricity from solar energy with a capacity of 
        25 kilowatts or more.
            (14) The term ``wind energy facility'' means a facility 
        that generates electricity from wind energy.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy such sums as may be necessary 
to cover the cost of loan guarantees, as defined by section 502(5) of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)).

TITLE IV--INCREASING THE RENEWABLE ENERGY USE AND ENERGY EFFICIENCY OF 
                         THE FEDERAL GOVERNMENT

SEC. 401. FEDERAL ENERGY EFFICIENCY.

    The President shall take measures necessary to ensure that 
electricity consumption for nondefense related activities of the 
Federal Government shall be decreased by 35 percent by 2015.

SEC. 402. GREEN BUILDING STANDARDS FOR FEDERAL BUILDINGS.

    (a) Requirement.--A Federal building for which the design phase for 
construction or major renovation is begun after the date of enactment 
of this Act shall be designed, constructed, and certified to meet, at a 
minimum, the LEED silver standard.
    (b) Exceptions.--Subsection (a) shall not apply to Federal 
laboratories or defense facilities, or to a building of a type for 
which no LEED silver standard exists.
    (c) Study.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy shall transmit to Congress the 
results of a study comparing the expected energy savings resulting from 
the implementation of this section with energy savings under all other 
Federal energy savings requirements. The Secretary shall include any 
recommendations for changes to Federal law necessary to reduce or 
eliminate duplicative or inconsistent Federal energy savings 
requirements.
    (d) Definition.--For purposes of this section, the term ``LEED 
silver standard'' means the Leadership in Energy and Environmental 
Design green building rating standard identified as silver by the 
United States Green Building Council.

SEC. 403. FEDERAL RENEWABLE AND CLEAN ENERGY USE.

    (a) In General.--The President shall take measures necessary to 
ensure that, within 10 years after the date of the enactment of this 
Act, at least 20 percent of the electricity consumed by nondefense 
related activities of the Federal Government shall be generated from 
renewable sources or zero-emission fossil fuel energy sources.
    (b) Solar Panels and Photovoltaics.--The requirement in subsection 
(a) may be achieved through the purchase and installation of solar 
panels or photovoltaics on executive agency properties.

SEC. 404. FUEL ECONOMY OF THE FEDERAL FLEET OF VEHICLES.

    (a) Baseline Average Fuel Economy.--The head of each Executive 
agency shall determine, for each class of vehicles that are in the 
agency's fleet of vehicles in fiscal year 2007, the average fuel 
economy for all of the vehicles in that class that are in the agency's 
fleet of vehicles for that fiscal year. For the purposes of this 
section, the average fuel economy so determined for the agency's 
vehicles in a class of vehicles shall be the baseline average fuel 
economy for the agency's fleet of vehicles in that class.
    (b) Increase of Average Fuel Economy.--The head of an Executive 
agency shall manage the procurement of vehicles in each class of 
vehicles for that agency in such a manner that--
            (1) not later than September 30, 2009, the average fuel 
        economy of the new vehicles in the agency's fleet of vehicles 
        in each class of vehicles is not less than 3 miles per gallon 
        higher than the baseline average fuel economy determined for 
        that class; and
            (2) not later than September 30, 2012, the average fuel 
        economy of the new vehicles in the agency's fleet of vehicles 
        in each class of vehicles is not less than 6 miles per gallon 
        higher than the baseline average fuel economy determined for 
        that class.
    (c) Calculation of Average Fuel Economy.--Average fuel economy 
shall be calculated for the purposes of this section in accordance with 
guidance which the Secretary of Transportation shall prescribe for the 
implementation of this section.
    (d) Definitions.--In this section:
            (1) The term ``class of vehicles'' means a class of 
        vehicles for which an average fuel economy standard is in 
        effect under chapter 329 of title 49, United States Code.
            (2) The term ``Executive agency'' has the meaning given 
        that term in section 105 of title 5, United States Code, but 
        also includes the United States Postal Service.
            (3) The term ``new vehicle'', with respect to the fleet of 
        vehicles of an executive agency, means a vehicle procured by or 
        for the agency after September 30, 2008.

SEC. 405. FEDERAL VEHICLE EFFICIENCY REQUIREMENT.

    (a) In General.--At least ten percent of the motor vehicles 
purchased by an Executive agency in any fiscal year shall be comprised 
of high-efficiency vehicles or hybrid electric vehicles.
    (b) Definitions.--In this Act:
            (1) The term ``Executive agency'' has the meaning given 
        that term in section 105 of title 5, United States Code, but 
        also includes the United States Postal Service.
            (2) The term ``high-efficiency vehicle'' means a motor 
        vehicle the fuel economy of which is rated at not less than 40 
        miles per gallon.
            (3) The term ``hybrid electric vehicle'' means a motor 
        vehicle with a fuel-efficient gasoline engine assisted by an 
        electric motor.
            (4) The term ``motor vehicle'' has the meaning given that 
        term in section 102(7) of title 40, United States Code.
    (c) Pro-Rated Applicability in Year of Enactment.--In the fiscal 
year in which this Act is enacted, the requirement in subsection (a) 
shall only apply with respect to motor vehicles purchased after the 
date of the enactment of this Act in such fiscal year.

      TITLE V--INCREASING AMERICAN ENERGY RESEARCH AND DEVELOPMENT

SEC. 501. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT OF ENERGY 
              FOR BASIC RESEARCH.

    Section 971(b) of the Energy Policy Act of 2005 (42 U.S.C. 
16311(b)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(4) $5,320,000,000 for fiscal year 2010;
            ``(5) $5,851,000,000 for fiscal year 2011;
            ``(6) $6,436,000,000 for fiscal year 2012; and
            ``(7) $7,080,000,000 for fiscal year 2013.''.

SEC. 502. MATHEMATICS, SCIENCE, AND ENGINEERING EDUCATION AT THE 
              DEPARTMENT OF ENERGY.

    (a) Science Education Programs.--Section 3164 of the Department of 
Energy Science Education Enhancement Act (42 U.S.C. 7381a) is amended--
            (1) by redesignating subsections (b) through (d) as 
        subsections (c) through (e), respectively;
            (2) by inserting after subsection (a) the following:
    ``(b) Organization of Mathematics, Science, and Engineering 
Education Programs.--
            ``(1) Director of mathematics, science and engineering 
        education.--The Secretary, acting through the Under Secretary 
        for Science (referred to in this subsection as the `Under 
        Secretary'), shall appoint a Director of Mathematics, Science, 
        and Engineering Education (referred to in this subsection as 
        the `Director') with the principal responsibility for 
        administering mathematics, science, and engineering education 
        programs of the Department.
            ``(2) Qualifications.--The Director shall be an individual, 
        who by reason of professional background and experience, is 
        specially qualified to advise the Under Secretary on all 
        matters pertaining to mathematics, science, and engineering 
        education at the Department.
            ``(3) Duties.--The Director shall--
                    ``(A) oversee all mathematics, science, and 
                engineering education programs of the Department;
                    ``(B) represent the Department as the principal 
                interagency liaison for all mathematics, science, and 
                engineering education programs, unless otherwise 
                represented by the Secretary or the Under Secretary;
                    ``(C) prepare the annual budget and advise the 
                Under Secretary on all budgetary issues for 
                mathematics, science, and engineering education 
                programs of the Department; and
                    ``(D) perform other such matters related to 
                mathematics, science, and engineering education as are 
                required by the Secretary or the Under Secretary.
            ``(4) Staff and other resources.--The Secretary shall 
        assign to the Director such personnel and other resources as 
        the Secretary considers necessary to permit the Director to 
        carry out the duties of the Director.
            ``(5) Assessment.--The Secretary shall offer to enter into 
        a contract with the National Academy of Sciences under which 
        the National Academy, not later than 5 years after, and not 
        later than 10 years after, the date of enactment of this 
        paragraph, shall assess the performance of the mathematics, 
        science, and engineering education programs of the Department.
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection.''; and
            (3) by striking subsection (d) (as redesignated by 
        paragraph (1)) and inserting the following:
    ``(d) Mathematics, Science, and Engineering Education Fund.--The 
Secretary shall establish a Mathematics, Science, and Engineering 
Education Fund, using not less than 0.3 percent of the amount made 
available to the Department for research, development, demonstration, 
and commercial application for each fiscal year, to carry out sections 
3165, 3166, and 3167.''.
    (b) Definition.--Section 3168 of the Department of Energy Science 
Education Enhancement Act (42 U.S.C. 7381d) is amended by adding at the 
end the following:
            ``(5) National laboratory.--The term `National Laboratory' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).''.
    (c) Mathematics, Science, and Engineering Education Programs.--The 
Department of Energy Science Education Enhancement Act (42 U.S.C. 7381 
et seq.) is amended--
            (1) by inserting after section 3162 the following:

             ``Subpart A--Science Education Enhancement'';

            (2) in section 3169, by striking ``part'' and inserting 
        ``subpart''; and
            (3) by adding at the end the following:

 ``Subpart B--Mathematics, Science, and Engineering Education Programs

``SEC. 3170. DEFINITIONS.

    ``In this subpart:
            ``(1) Director.--The term `Director' means the Director of 
        Mathematics, Science, and Engineering Education.
            ``(2) National laboratory.--The term `National Laboratory' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).

   ``CHAPTER 1--ASSISTANCE FOR SPECIALTY SCHOOLS FOR MATHEMATICS AND 
                                SCIENCE

``SEC. 3171. ASSISTANCE FOR SPECIALTY SCHOOLS FOR MATHEMATICS AND 
              SCIENCE.

    ``(a) In General.--Consistent with sections 3165 and 3166, the 
Director shall make available necessary funds for a program using 
scientific and engineering staff of the National Laboratories, in which 
the staff--
            ``(1) assists teaching courses at statewide specialty 
        secondary schools that provide comprehensive mathematics and 
        science (including engineering) education; and
            ``(2) uses National Laboratory scientific equipment in the 
        teaching of the courses.
    ``(b) Report to Congress.--Not later than 2 years after the date of 
enactment of the American Energy Independence Act, the Director shall 
submit a report to the appropriate committees of Congress detailing the 
impact of the activities assisted with funds made available under this 
section.

         ``CHAPTER 2--EXPERIENTIAL-BASED LEARNING OPPORTUNITIES

``SEC. 3175. EXPERIENTIAL-BASED LEARNING OPPORTUNITIES.

    ``(a) Internships Authorized.--From the amounts authorized under 
subsection (d), the Secretary, acting through the Director, shall 
establish a summer internship program for middle school and secondary 
school students that shall--
            ``(1) provide the students with internships at the National 
        Laboratories; and
            ``(2) promote experiential, hands-on learning in 
        mathematics or science.
    ``(b) Eligibility Criteria.--The Director shall establish criteria 
to determine the sufficient level of academic preparedness necessary 
for a student to be eligible for an internship under this section.
    ``(c) Priority.--
            ``(1) In general.--The Director shall give priority for an 
        internship under this section to a student who meets the 
        eligibility criteria described in subsection (b) and who 
        attends a school--
                    ``(A)(i) in which not less than 40 percent of the 
                children enrolled in the school are from low-income 
                families; or
                    ``(ii) that is designated with a school locale code 
                of 7 or 8, as determined by the Secretary of Education; 
                and
                    ``(B) for which there is--
                            ``(i) a high percentage of teachers who are 
                        not teaching in the academic subject areas or 
                        grade levels in which the teachers were trained 
                        to teach;
                            ``(ii) a high teacher turnover rate; or
                            ``(iii) a high percentage of teachers with 
                        emergency, provisional, or temporary 
                        certification or licenses.
            ``(2) Coordination.--The Director shall consult with the 
        Secretary of Education in order to determine whether a student 
        meets the priority requirements of this subsection.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of the 
fiscal years 2007 through 2013.

``CHAPTER 3--NATIONAL LABORATORIES CENTERS OF EXCELLENCE IN MATHEMATICS 
                         AND SCIENCE EDUCATION

``SEC. 3181. NATIONAL LABORATORIES CENTERS OF EXCELLENCE IN MATHEMATICS 
              AND SCIENCE EDUCATION.

    ``(a) In General.--The Secretary shall establish at each of the 
National Laboratories a program to support a Center of Excellence in 
Mathematics and Science at 1 public secondary school located in the 
region of the National Laboratory to provide assistance in accordance 
with subsection (c).
    ``(b) Goals.--The Secretary shall establish goals and performance 
assessments for each Center of Excellence authorized under subsection 
(a).
    ``(c) Assistance.--Consistent with sections 3165 and 3166, the 
Director shall make available necessary funds for a program using 
scientific and engineering staff of the National Laboratories, during 
which the staff--
            ``(1) assists teaching courses at the Centers of Excellence 
        in Mathematics and Science; and
            ``(2) uses National Laboratory scientific equipment in the 
        teaching of the courses.
    ``(d) Evaluation.--The Secretary shall consider the results of the 
performance assessments required under subsection (b) in any 
performance review of a National Laboratories management and operations 
contractor.

                     ``CHAPTER 4--SUMMER INSTITUTES

``SEC. 3185. SUMMER INSTITUTES.

    ``(a) Definition of Summer Institute.--In this section, the term 
`summer institute' means an institute at a National Laboratory, 
conducted during the summer, that--
            ``(1) is conducted for a period of not less than 2 weeks;
            ``(2) includes, as a component, a program that provides 
        direct interaction between students and faculty; and
            ``(3) provides for follow-up training during the academic 
        year.
    ``(b) Summer Institute Programs Authorized.--The Secretary, acting 
through the Director, shall establish or expand program of summer 
institutes at each of the National Laboratories to provide additional 
training to strengthen the mathematics and science teaching skills of 
teachers employed at public schools in kindergarten through grade 12 
education, with a particular focus on teachers of kindergarten through 
grade 8.

              ``CHAPTER 5--DISTINGUISHED SCIENTIST PROGRAM

``SEC. 3191. DISTINGUISHED SCIENTIST PROGRAM.

    ``(a) Purpose.--The purpose of this section is to promote 
scientific and academic excellence at National Laboratories.
    ``(b) Establishment.--The Secretary, acting through the Director 
and in consultation with the Director of the Office of Science, shall 
establish a program to support the appointment of distinguished 
scientists by National Laboratories.
    ``(c) Qualifications.--Successful candidates under this section 
shall be persons who, by reason of professional background and 
experience, are able to bring international recognition to the 
appointing National Laboratory in their field of scientific endeavor.
    ``(d) Selection.--A distinguished scientist appointed under this 
section shall be selected through an open peer review process.
    ``(e) Appointment.--An appointment by a National Laboratory under 
this section shall be at the rank of the highest grade of distinguished 
scientist or technical staff of the National Laboratory.
    ``(f) Duration.--An appointment under this section shall be for 6 
years, consisting of 2 3-year funding allotments.
    ``(g) Use of Funds.--Funds made available under this section may be 
used for--
            ``(1) the salary of the distinguished scientist and support 
        staff;
            ``(2) undergraduate, graduate, and post-doctoral 
        appointments;
            ``(3) research-related equipment;
            ``(4) professional travel; and
            ``(5) such other requirements as the Director determines 
        are necessary to carry out the purpose of the program.
    ``(h) Review.--
            ``(1) In general.--The appointment of a distinguished 
        scientist under this section shall be reviewed at the end of 
        the first 3-year allotment for the distinguished scientist 
        through an open peer review process to determine if the 
        appointment is meeting the purpose of this section under 
        subsection (a).
            ``(2) Funding.--Funding of the appointment of the 
        distinguished scientist for the second 3-year allotment shall 
        be determined based on the review conducted under paragraph 
        (1).''.

SEC. 503. DEPARTMENT OF ENERGY EARLY CAREER RESEARCH GRANTS.

    (a) Purpose.--It is the purpose of this section to authorize 
research grants in the Department of Energy for early career scientists 
and engineers for purposes of pursuing independent research.
    (b) Definition of Eligible Early Career Researcher.--In this 
section, the term ``eligible early career researcher'' means an 
individual who--
            (1) completed a doctorate or other terminal degree not more 
        than 10 years before the date of enactment of this Act and has 
        demonstrated promise in the field of science, technology, 
        engineering, or mathematics; or
            (2) has an equivalent professional qualification in the 
        field of science, technology, engineering, or mathematics.
    (c) Grant Program Authorized.--
            (1) In general.--The Secretary of Energy, through the 
        Director of the Office of Science of the Department of Energy, 
        shall award not less than 65 grants per year to outstanding 
        eligible early career researchers to support the work of such 
        researchers in the Department, particularly the National 
        Laboratories, or other federally funded research and 
        development centers.
            (2) Application.--An eligible early career researcher who 
        desires to receive a grant under this section shall submit to 
        the Secretary of Energy an application at such time, in such 
        manner, and accompanied by such information as the Secretary 
        may require.
            (3) Special consideration.--In awarding grants under this 
        section, the Secretary of Energy shall give special 
        consideration to eligible early career researchers who have 
        followed alternative career paths such as working part time or 
        in nonacademic settings, or who have taken a significant career 
        break or other leave of absence.
            (4) Duration and amount.--A grant under this section shall 
        be 5 years in duration. An eligible early career researcher who 
        receives a grant under this section shall receive $100,000 for 
        each year of the grant period.
            (5) Use of funds.--An eligible early career researcher who 
        receives a grant under this section shall use the grant funds 
        for basic research in natural sciences, engineering, 
        mathematics, or computer sciences at the Department of Energy, 
        particularly the National Laboratories, or other federally 
        funded research and development center.
            (6) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this section--
                    (A) $6,500,000 for fiscal year 2008;
                    (B) $13,000,000 for fiscal year 2009;
                    (C) $19,500,000 for fiscal year 2010;
                    (D) $26,000,000 for fiscal year 2011; and
                    (E) $32,500,000 for fiscal year 2012.

SEC. 504. ADVANCED RESEARCH PROJECTS AUTHORITY--ENERGY.

    (a) Definitions.--In this section:
            (1) ARPA-E.--The term ``ARPA-E'' means the Advanced 
        Research Projects Authority--Energy established under 
        subsection (b).
            (2) Fund.--The term ``Fund'' means the Acceleration Fund 
        for Research and Development of Energy Technologies established 
        under subsection (c).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (4) Under secretary.--The term ``Under Secretary'' means 
        the position of Under Secretary for Science established under 
        section 202(b) of the Department of Energy Organization Act (42 
        U.S.C. 7132(b)).
    (b) ARPA-E.--
            (1) Establishment.--There is established the Advanced 
        Research Projects Authority--Energy.
            (2) Director.--ARPA-E shall be headed by a Director, who 
        shall be appointed by the Secretary and report to the Under 
        Secretary.
            (3) Responsibilities.--The Director shall use the Fund to 
        award competitive, merit-based grants, cooperative agreements, 
        and contracts to public or private entities (including 
        businesses, federally funded research and development centers, 
        and institutions of higher education) to--
                    (A) support basic and applied energy research to 
                promote revolutionary changes in technologies that 
                would promote the missions of the Department of Energy;
                    (B) advance the development, testing, evaluation, 
                and deployment of critical energy technologies; and
                    (C) accelerate prototyping and development of 
                technologies that would address national energy 
                priorities.
            (4) Targeted competitions.--The Director may solicit 
        proposals to address areas of national need in science and 
        energy technology, as identified by the Director.
            (5) Coordination.--The Director--
                    (A) shall ensure that the activities of ARPA-E are 
                coordinated with activities of other appropriate 
                research agencies; and
                    (B) may carry out projects under this section 
                jointly with other agencies.
            (6) Personnel.--
                    (A) In general.--In hiring personnel for ARPA-E, 
                the Secretary shall have the hiring and management 
                authorities described in section 1101 of the Strom 
                Thurmond National Defense Authorization Act for Fiscal 
                Year 1999 (Public Law 105-261; 5 U.S.C. 3104 note).
                    (B) Term.--The term of appointments for an employee 
                under subparagraph (A) may not exceed 5 years, except 
                that the Secretary may renew the term of appointment of 
                the employee for an additional term of 5 years.
            (7) Demonstrations.--The Director shall periodically hold 
        energy technology demonstrations to improve contact among 
        technology developers, vendors, and acquisition personnel.
    (c) Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a revolving fund, to be known as the 
        ``Acceleration Fund for Research and Development of Energy 
        Technologies'', consisting of--
                    (A) such amounts as are appropriated to the Fund 
                under paragraph (5); and
                    (B) any interest earned on investment of amounts in 
                the Fund under paragraph (3).
            (2) Expenditures from fund.--
                    (A) In general.--Subject to subparagraph (B), on 
                request by the Director, the Secretary of the Treasury 
                shall transfer from the Fund to the Director such 
                amounts as the Director determines are necessary to 
                carry out this section.
                    (B) Administrative expenses.--An amount not 
                exceeding 5 percent of the amounts in the Fund shall be 
                available for each fiscal year to pay the 
                administrative expenses necessary to carry out this 
                section.
            (3) Investment of amounts.--
                    (A) In general.--The Secretary of the Treasury 
                shall invest such portion of the Fund as is not, in the 
                judgment of the Secretary of the Treasury, required to 
                meet current withdrawals.
                    (B) Interest-bearing obligations.--Investments may 
                be made only in interest-bearing obligations of the 
                United States.
                    (C) Acquisition of obligations.--For the purpose of 
                investments under subparagraph (A), obligations may be 
                acquired--
                            (i) on original issue at the issue price; 
                        or
                            (ii) by purchase of outstanding obligations 
                        at the market price.
                    (D) Sale of obligations.--Any obligation acquired 
                by the Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    (E) Credits to fund.--The interest on, and the 
                proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to, and 
                form a part of, the Fund.
            (4) Transfers of amounts.--
                    (A) In general.--The amounts required to be 
                transferred to the Fund under this subsection shall be 
                transferred at least monthly from the general fund of 
                the Treasury to the Fund on the basis of estimates made 
                by the Secretary of the Treasury.
                    (B) Adjustments.--Proper adjustment shall be made 
                in amounts subsequently transferred to the extent prior 
                estimates were in excess of or less than the amounts 
                required to be transferred.
            (5) Authorization of appropriations.--There are authorized 
        to be appropriated to the Fund--
                    (A) $300,000,000 for fiscal year 2008;
                    (B) $500,000,000 for fiscal year 2009;
                    (C) $700,000,000 for fiscal year 2010;
                    (D) $900,000,000 for fiscal year 2011; and
                    (E) $1,000,000,000 for fiscal year 2012.

  TITLE VI--INCREASING FEDERAL PUBLIC TRANSIT FUNDING AND EFFICIENCY 
                               INCENTIVES

SEC. 601. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.

    (a) In General.--In consultation with State transportation 
departments and metropolitan planning organizations, the Secretary of 
Transportation shall designate, in urbanized areas, at least 20 
transit-oriented development corridors by 2015 and 50 transit-oriented 
development corridors by 2025.
    (b) Transit Grants.--The Secretary shall award grants to a State or 
local governmental authority to carry out projects to construct or 
improve transit facilities, bicycle transportation facilities, and 
pedestrian walkways in a transit-oriented development corridor, 
including capital projects.
    (c) Research and Development.--In order to support effective 
deployment of grants and incentives under this section, the Secretary 
shall establish a transit-oriented development corridors research and 
development program for the conduct of research on best practices and 
performance criteria for transit-oriented development corridors.
    (d) Labor Standards.--The Secretary shall not award a grant to a 
State or local governmental authority for a project under this section 
unless the Secretary receives reasonable assurances from the State or 
local governmental authority that laborers and mechanics employed by 
contractors and subcontractors in the performance of construction or 
improvement for the project will be paid wages not less than those 
prevailing on similar construction or improvement in the locality as 
determined by the Secretary of Labor under sections 3141 through 3144, 
3146, and 3147 of title 40.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $500,000,000 for each of fiscal 
years 2008 through 2017, of which $2,000,000 per fiscal year are 
authorized for the research and development program under subsection 
(c).
    (f) Definitions.--In this section, the following definitions apply:
            (1) Definitions from title 49, united states code.--The 
        terms ``capital project'', ``local governmental authority'', 
        ``mass transportation'', and ``urbanized area'' have the 
        meanings such terms have under section 5302 of title 49, United 
        States Code.
            (2) State.--The term ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Northern 
        Mariana Islands, Guam, American Samoa, and the United States 
        Virgin Islands.
            (3) Transit-oriented development corridor.--The term 
        ``transit-oriented development corridor'' means rights-of-way 
        for fixed-guideway mass transportation facilities, including 
        commercial development that is connected with any such facility 
        physically and functionally.

SEC. 602. WEATHERIZATION ASSISTANCE.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended--
            (1) by striking ``$500,000,000 for fiscal year 2006'' and 
        inserting ``$1,000,000,000 for fiscal year 2008'';
            (2) by striking ``$600,000,000 for fiscal year 2007'' and 
        inserting ``$1,200,000,000 for fiscal year 2009''; and
            (3) by striking ``$700,000,000 for fiscal year 2008'' and 
        inserting ``$1,400,000,000 for fiscal year 2010''.

SEC. 603. FEDERAL SUPPORT FOR COMMERCIALIZATION OF NEW TECHNOLOGIES.

    (a) Program.--The Secretary of Energy shall establish a program of 
support, through grants, low-interest loans, and loan guarantees, for 
the commercialization, including support for pilot projects, of new--
            (1) renewable energy technologies;
            (2) technologies for energy generation from fossil fuels 
        that incorporate carbon sequestration; and
            (3) energy efficiency technologies.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$5,000,000,000.

SEC. 604. TELECOMMUTING TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45N. TELECOMMUTING CREDIT.

    ``(a) Determination of Amount.--For purposes of section 38, the 
amount of the telecommuting credit determined under this section for 
the taxable year shall be equal to 40 percent of the qualified first-
year wages for such year.
    ``(b) Qualified First-Year Wages.--For purposes of this section--
            ``(1) In general.--The term `qualified first-year wages' 
        means, with respect to any individual, qualified wages 
        attributable to service rendered during the 1-year period 
        beginning with the day the individual begins work for the 
        employer.
            ``(2) Qualified wages.--The term `qualified wages' means 
        the wages paid or incurred by the employer during the taxable 
        year to qualified telecommuters.
            ``(3) Only first $6,000 of wages per year taken into 
        account.--The amount of the qualified first-year wages which 
        may be taken into account with respect to any individual shall 
        not exceed $6,000 per year.
    ``(c) Qualified Telecommuter.--For purposes of this section, the 
term `qualified telecommuter' means any individual who renders not less 
than 40 percent of the service described in subsection (b)(1) from the 
individual's principal residence.
    ``(d) Wages.--For purposes of this section--
            ``(1) In general.--The term `wages' has the meaning given 
        to such term by subsection (b) of section 3306 (determined 
        without regard to any dollar limitation contained in such 
        section).
            ``(2) On-the-job training and work supplementation 
        payments.--
                    ``(A) Exclusion for employers receiving on-the-job 
                training payments.--The term `wages' shall not include 
                any amounts paid or incurred by an employer for any 
                period to any individual for whom the employer receives 
                federally funded payments for on-the-job training of 
                such individual for such period.
                    ``(B) Reduction for work supplementation payments 
                to employers.--The amount of wages which would (but for 
                this subparagraph) be qualified wages under this 
                section for an employer with respect to an individual 
                for a taxable year shall be reduced by an amount equal 
                to the amount of the payments made to such employer 
                (however utilized by such employer) with respect to 
                such individual for such taxable year under a program 
                established under section 482(e) of the Social Security 
                Act.
    ``(e) Special Rules.--For purposes of this section, rules similar 
to the rules of section 52 and subsections (f), (g), (i), (j), and (k) 
of section 51 shall apply.''.
    (b) Credit Treated as Business Credit.--Section 38(b) of such Code 
is amended by striking ``and'' at the end of paragraph (29), by 
striking the period at the end of paragraph (30) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(31) the telecommuting credit determined under section 
        45N(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45N. Telecommuting credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
                                 <all>