[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2747 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2747
To enhance energy efficiency and conserve oil and natural gas, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 4, 2006
Mr. Bingaman (for himself, Mr. Bayh, Mr. Coleman, Mr. Lieberman, Mr.
Chafee, Ms. Cantwell, Ms. Collins, Mr. Salazar, Mr. Kerry, Mrs.
Clinton, and Mr. Nelson of Florida) introduced the following bill;
which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To enhance energy efficiency and conserve oil and natural gas, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Enhanced Energy
Security Act of 2006''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--NATIONAL OIL SAVINGS PLAN AND REQUIREMENTS
Sec. 101. Oil savings target and action plan.
Sec. 102. Standards and requirements.
Sec. 103. Initial evaluation.
Sec. 104. Review and update of action plan.
Sec. 105. Baseline and analysis requirements.
TITLE II--FEDERAL PROGRAMS FOR THE CONSERVATION OF OIL
Sec. 201. Federal fleet conservation requirements.
Sec. 202. Assistance for State programs to retire fuel-inefficient
motor vehicles.
Sec. 203. Assistance to States to reduce school bus idling.
Sec. 204. Near-term vehicle technology program.
Sec. 205. Lightweight materials research and development.
Sec. 206. Loan guarantees for fuel-efficient automobile manufacturer
and suppliers.
Sec. 207. Funding for alternative infrastructure for the distribution
of transportation fuels.
Sec. 208. Deployment of new technologies to reduce oil use in
transportation.
Sec. 209. Production incentives for cellulosic biofuels.
TITLE III--FEDERAL PROGRAMS FOR THE CONSERVATION OF NATURAL GAS
Sec. 301. Renewable portfolio standard.
Sec. 302. Federal requirement to purchase electricity generated by
renewable energy.
TITLE IV--GENERAL ENERGY EFFICIENCY PROGRAMS
Sec. 401. Energy savings performance contracts.
Sec. 402. Deployment of new technologies for high-efficiency consumer
products.
Sec. 403. National media campaign to decrease oil and natural gas
consumption.
Sec. 404. Energy efficiency resource programs.
TITLE V--ASSISTANCE TO ENERGY CONSUMERS
Sec. 501. Energy emergency disaster relief loans to small business and
agricultural producers.
Sec. 502. Efficient and safe equipment replacement program for
weatherization purposes.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of Energy.
TITLE I--NATIONAL OIL SAVINGS PLAN AND REQUIREMENTS
SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN.
Not later than 270 days after the date of enactment of this Act,
the Director of the Office of Management and Budget (referred to in
this title as the ``Director'') shall publish in the Federal Register
an action plan consisting of--
(1) a list of requirements proposed or to be proposed
pursuant to section 102 that are authorized to be issued under
law in effect on the date of enactment of this Act, and this
Act, that will be sufficient, when taken together, to save from
the baseline determined under section 105--
(A) 2,500,000 barrels of oil per day on average
during calendar year 2016;
(B) 7,000,000 barrels of oil per day on average
during calendar year 2026; and
(C) 10,000,000 barrels per day on average during
calendar year 2031; and
(2) a Federal Government-wide analysis of--
(A) the expected oil savings from the baseline to
be accomplished by each requirement; and
(B) whether all such requirements, taken together,
will achieve the oil savings specified in this section.
SEC. 102. STANDARDS AND REQUIREMENTS.
(a) In General.--On or before the date of publication of the action
plan under section 101, the Secretary of Energy, the Secretary of
Transportation, the Secretary of Defense, the Secretary of Agriculture,
the Administrator of the Environmental Protection Agency, and the head
of any other agency the President determines appropriate shall each
propose, or issue a notice of intent to propose, regulations
establishing each standard or other requirement listed in the action
plan that is under the jurisdiction of the respective agency using
authorities described in subsection (b).
(b) Authorities.--The head of each agency described in subsection
(a) shall use to carry out this section--
(1) any authority in existence on the date of enactment of
this Act (including regulations); and
(2) any new authority provided under this Act (including an
amendment made by this Act).
(c) Final Regulations.--Not later than 18 months after the date of
enactment of this Act, the head of each agency described in subsection
(a) shall promulgate final versions of the regulations required under
this section.
(d) Agency Analyses.--Each proposed and final regulation
promulgated under this section shall--
(1) be designed to achieve at least the oil savings
resulting from the regulation under the action plan published
under section 101; and
(2) be accompanied by an analysis by the applicable agency
describing the manner in which the regulation will promote the
achievement of the oil savings from the baseline determined
under section 105.
SEC. 103. INITIAL EVALUATION.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Director shall publish in the Federal Register a
Federal Government-wide analysis of the oil savings achieved from the
baseline established under section 105.
(b) Inadequate Oil Savings.--If the oil savings are less than the
targets established under section 101, simultaneously with the analysis
required under subsection (a)--
(1) the Director shall publish a revised action plan that
is adequate to achieve the targets; and
(2) the Secretary of Energy, the Secretary of
Transportation, and the Administrator shall propose new or
revised regulations under subsections (a), (b), and (c),
respectively, of section 102.
(c) Final Regulations.--Not later than 180 days after the date on
which regulations are proposed under subsection (b)(2), the Secretary
of Energy, the Secretary of Transportation, and the Administrator shall
promulgate final versions of those regulations.
SEC. 104. REVIEW AND UPDATE OF ACTION PLAN.
(a) Review.--Not later than January 1, 2011, and every 3 years
thereafter, the Director shall submit to Congress, and publish, a
report that--
(1) evaluates the progress achieved in implementing the oil
savings targets established under section 101;
(2) analyzes the expected oil savings under the standards
and requirements established under this Act and the amendments
made by this Act; and
(3)(A) analyzes the potential to achieve oil savings that
are in addition to the savings required by section 101; and
(B) if the President determines that it is in the national
interest, establishes a higher oil savings target for calendar
year 2017 or any subsequent calendar year.
(b) Inadequate Oil Savings.--If the oil savings are less than the
targets established under section 101, simultaneously with the report
required under subsection (a)--
(1) the Director shall publish a revised action plan that
is adequate to achieve the targets; and
(2) the Secretary of Energy, the Secretary of
Transportation, and the Administrator shall propose new or
revised regulations under subsections (a), (b), and (c),
respectively, of section 102.
(c) Final Regulations.--Not later than 180 days after the date on
which regulations are proposed under subsection (b)(2), the Secretary
of Energy, the Secretary of Transportation, and the Administrator shall
promulgate final versions of those regulations.
SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS.
In performing the analyses and promulgating proposed or final
regulations to establish standards and other requirements necessary to
achieve the oil savings required by this title, the Secretary of
Energy, the Secretary of Transportation, the Secretary of Defense, the
Secretary of Agriculture, the Administrator of the Environmental
Protection Agency, and the head of any other agency the President
determines to be appropriate shall--
(1) determine oil savings as the projected reduction in oil
consumption from the baseline established by the reference case
contained in the report of the Energy Information
Administration entitled ``Annual Energy Outlook 2005'';
(2) determine the oil savings projections required on an
annual basis for each of calendar years 2009 through 2026; and
(3) account for any overlap among the standards and other
requirements to ensure that the projected oil savings from all
the promulgated standards and requirements, taken together, are
as accurate as practicable.
TITLE II--FEDERAL PROGRAMS FOR THE CONSERVATION OF OIL
SEC. 201. FEDERAL FLEET CONSERVATION REQUIREMENTS.
(a) In General.--Part J of title IV of the Energy Policy and
Conservation Act (42 U.S.C. 6374 et seq.) is amended by adding at the
end the following:
``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.
``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In general.--The Secretary shall issue regulations
for Federal fleets subject to section 400AA requiring that not
later than October 1, 2009, each Federal agency achieve at
least a 20 percent reduction in petroleum consumption, as
calculated from the baseline established by the Secretary for
fiscal year 1999.
``(2) Plan.--
``(A) Requirement.--The regulations shall require
each Federal agency to develop a plan to meet the
required petroleum reduction level.
``(B) Measures.--The plan may allow an agency to
meet the required petroleum reduction level through--
``(i) the use of alternative fuels;
``(ii) the acquisition of vehicles with
higher fuel economy, including hybrid vehicles;
``(iii) the substitution of cars for light
trucks;
``(iv) an increase in vehicle load factors;
``(v) a decrease in vehicle miles traveled;
``(vi) a decrease in fleet size; and
``(vii) other measures.
``(C) Replacement tires.--The regulations shall
include a requirement that each Federal agency purchase
energy-efficient replacement tires for the respective
fleet vehicles of the agency.
``(b) Federal Employee Incentive Programs for Reducing Petroleum
Consumption.--
``(1) In general.--Each Federal agency shall actively
promote incentive programs that encourage Federal employees and
contractors to reduce petroleum through the use of practices
such as--
``(A) telecommuting;
``(B) public transit;
``(C) carpooling; and
``(D) bicycling.
``(2) Monitoring and support for incentive programs.--The
Administrator of the General Services Administration, the
Director of the Office of Personnel Management, and the
Secretary of the Department of Energy shall monitor and provide
appropriate support to agency programs described in paragraph
(1).''.
(b) Table of Contents Amendment.--The table of contents of the
Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by
adding at the end of the items relating to part J of title III the
following:
``Sec. 400FF. Federal fleet conservation requirements.''.
SEC. 202. ASSISTANCE FOR STATE PROGRAMS TO RETIRE FUEL-INEFFICIENT
MOTOR VEHICLES.
(a) Definitions.--In this section:
(1) Fuel-efficient automobile.--The term ``fuel-efficient
automobile'' means a passenger automobile or a light-duty truck
that has a fuel economy rating that is 40 percent greater than
the average fuel economy standard prescribed pursuant to
section 32902 of title 49, United States Code, or other law,
applicable to the passenger automobile or light-duty truck.
(2) Fuel-inefficient automobiles.--The term ``fuel-
inefficient automobile'' means a passenger automobile or a
light-duty truck manufactured in a model year more than 15
years before the fiscal year in which appropriations are made
under subsection (f) that, at the time of manufacture, had a
fuel economy rating that was equal to or less than 20 miles per
gallon.
(3) Light-duty truck.--
(A) In general.--The term ``light-duty truck''
means an automobile that is not a passenger automobile.
(B) Inclusions.--The term ``light-duty truck''
includes a pickup truck, a van, or a four-wheel-drive
general utility vehicle, as those terms are defined in
section 600.002-85 of title 40, Code of Federal
Regulations.
(4) State.--The term ``State'' means any of the several
States and the District of Columbia.
(b) Establishment.--The Secretary shall establish a program, to be
known as the ``National Motor Vehicle Efficiency Improvement Program,''
under which the Secretary shall provide grants to States to operate
voluntary programs to offer owners of fuel inefficient automobiles
financial incentives to replace the automobiles with fuel efficient
automobiles.
(c) Eligibility Criteria.--The Secretary shall approve a State plan
and provide the funds made available under subsection (f), if the State
plan--
(1) except as provided in paragraph (8), requires that all
passenger automobiles and light-duty trucks turned in be
scrapped, after allowing a period of time for the recovery of
spare parts;
(2) requires that all passenger automobiles and light-duty
trucks turned in be registered in the State in order to be
eligible;
(3) requires that all passenger automobiles and light-duty
trucks turned in be operational at the time that the passenger
automobiles and light-duty trucks are turned in;
(4) restricts automobile owners (except not-for-profit
organizations) from turning in more than 1 passenger automobile
and 1 light-duty truck during a 1-year period;
(5) provides an appropriate payment to the person recycling
the scrapped passenger automobile or light-duty truck for each
turned-in passenger automobile or light-duty truck;
(6) subject to subsection (d)(2), provides a minimum
payment to the automobile owner for each passenger automobile
and light-duty truck turned in; and
(7) provides appropriate exceptions to the scrappage
requirement for vehicles that qualify as antique cars under
State law.
(d) State Plan.--
(1) In general.--To be eligible to receive funds under the
program, the Governor of a State shall submit to the Secretary
a plan to carry out a program under this section in that State.
(2) Additional state credit.--In addition to the payment
under subsection (c)(6), the State plan may provide a credit
that may be redeemed by the owner of the replaced fuel-
inefficient automobile at the time of purchase of the new fuel-
efficient automobile.
(e) Allocation Formula.--The amounts appropriated pursuant to
subsection (f) shall be allocated among the States on the basis of the
number of registered motor vehicles in each State at the time that the
Secretary needs to compute shares under this subsection.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary to carry out
this section, to remain available until expended.
SEC. 203. ASSISTANCE TO STATES TO REDUCE SCHOOL BUS IDLING.
(a) Statement of Policy.--Congress encourages each local
educational agency (as defined in section 9101(26) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801(26))) that receives
Federal funds under the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6301 et seq.) to develop a policy to reduce the incidence of
school bus idling at schools while picking up and unloading students.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy, working in coordination with
the Secretary of Education, $5,000,000 for each of fiscal years 2007
through 2012 for use in educating States and local education agencies
about--
(1) benefits of reducing school bus idling; and
(2) ways in which school bus idling may be reduced.
SEC. 204. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.
(a) Purposes.--The purposes of this section are--
(1) to enable and promote, in partnership with industry,
comprehensive development, demonstration, and commercialization
of a wide range of electric drive components, systems, and
vehicles using diverse electric drive transportation
technologies;
(2) to make critical public investments to help private
industry, institutions of higher education, National
Laboratories, and research institutions to expand innovation,
industrial growth, and jobs in the United States;
(3) to expand the availability of the existing electric
infrastructure for fueling light duty transportation and other
on-road and nonroad vehicles that are using petroleum and are
mobile sources of emissions--
(A) including the more than 3,000,000 reported
units (such as electric forklifts, golf carts, and
similar nonroad vehicles) in use on the date of
enactment of this Act; and
(B) with the goal of enhancing the energy security
of the United States, reduce dependence on imported
oil, and reduce emissions through the expansion of grid
supported mobility;
(4) to accelerate the widespread commercialization of all
types of electric drive vehicle technology into all sizes and
applications of vehicles, including commercialization of plug-
in hybrid electric vehicles and plug-in hybrid fuel cell
vehicles; and
(5) to improve the energy efficiency of and reduce the
petroleum use in transportation.
(b) Definitions.--In this section:
(1) Battery.--The term ``battery'' means an energy storage
device used in an on-road or nonroad vehicle powered in whole
or in part using an off-board or on-board source of
electricity.
(2) Electric drive transportation technology.--The term
``electric drive transportation technology'' means--
(A) vehicles that use an electric motor for all or
part of their motive power and that may or may not use
off-board electricity, including battery electric
vehicles, fuel cell vehicles, engine dominant hybrid
electric vehicles, plug-in hybrid electric vehicles,
plug-in hybrid fuel cell vehicles, and electric rail;
or
(B) equipment relating to transportation or mobile
sources of air pollution that use an electric motor to
replace an internal combustion engine for all or part
of the work of the equipment, including corded electric
equipment linked to transportation or mobile sources of
air pollution.
(3) Engine dominant hybrid electric vehicle.--The term
``engine dominant hybrid electric vehicle'' means an on-road or
nonroad vehicle that--
(A) is propelled by an internal combustion engine
or heat engine using--
(i) any combustible fuel;
(ii) an on-board, rechargeable storage
device; and
(B) has no means of using an off-board source of
electricity.
(4) Fuel cell vehicle.--The term ``fuel cell vehicle''
means an on-road or nonroad vehicle that uses a fuel cell (as
defined in section 3 of the Spark M. Matsunaga Hydrogen
Research, Development, and Demonstration Act of 1990).
(5) Nonroad vehicle.--The term ``nonroad vehicle'' has the
meaning given the term in section 216 of the Clean Air Act (42
U.S.C. 7550).
(6) Plug-in hybrid electric vehicle.--The term ``plug-in
hybrid electric vehicle'' means an on-road or nonroad vehicle
that is propelled by an internal combustion engine or heat
engine using--
(A) any combustible fuel;
(B) an on-board, rechargeable storage device; and
(C) a means of using an off-board source of
electricity.
(7) Plug-in hybrid fuel cell vehicle.--The term ``plug-in
hybrid fuel cell vehicle'' means a fuel cell vehicle with a
battery powered by an off-board source of electricity.
(c) Program.--The Secretary shall conduct a program of research,
development, demonstration, and commercial application for electric
drive transportation technology, including--
(1) high capacity, high efficiency batteries;
(2) high efficiency on-board and off-board charging
components;
(3) high power drive train systems for passenger and
commercial vehicles and for nonroad equipment;
(4) control system development and power train development
and integration for plug-in hybrid electric vehicles, plug-in
hybrid fuel cell vehicles, and engine dominant hybrid electric
vehicles, including--
(A) development of efficient cooling systems;
(B) analysis and development of control systems
that minimize the emissions profile when clean diesel
engines are part of a plug-in hybrid drive system; and
(C) development of different control systems that
optimize for different goals, including--
(i) battery life;
(ii) reduction of petroleum consumption;
and
(iii) green house gas reduction;
(5) nanomaterial technology applied to both battery and
fuel cell systems;
(6) large-scale demonstrations, testing, and evaluation of
plug-in hybrid electric vehicles in different applications with
different batteries and control systems, including--
(A) military applications;
(B) mass market passenger and light-duty truck
applications;
(C) private fleet applications; and
(D) medium- and heavy-duty applications;
(7) a nationwide education strategy for electric drive
transportation technologies providing secondary and high school
teaching materials and support for university education focused
on electric drive system and component engineering;
(8) development, in consultation with the Administrator of
the Environmental Protection Agency, of procedures for testing
and certification of criteria pollutants, fuel economy, and
petroleum use for light-, medium-, and heavy-duty vehicle
applications, including consideration of--
(A) the vehicle and fuel as a system, not just an
engine; and
(B) nightly off-board charging; and
(9) advancement of battery and corded electric
transportation technologies in mobile source applications by--
(A) improvement in battery, drive train, and
control system technologies; and
(B) working with industry and the Administrator of
the Environmental Protection Agency to--
(i) understand and inventory markets; and
(ii) identify and implement methods of
removing barriers for existing and emerging
applications.
(d) Goals.--The goals of the electric drive transportation
technology program established under subsection (c) shall be to
develop, in partnership with industry and institutions of higher
education, projects that focus on--
(1) innovative electric drive technology developed in the
United States;
(2) growth of employment in the United States in electric
drive design and manufacturing;
(3) validation of the plug-in hybrid potential through
fleet demonstrations; and
(4) acceleration of fuel cell commercialization through
comprehensive development and commercialization of the electric
drive technology systems that are the foundational technology
of the fuel cell vehicle system.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $300,000,000 for each of fiscal
years 2007 through 2012.
SEC. 205. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary shall establish a research and development
program to determine ways in which--
(1) the weight of vehicles may be reduced to improve fuel
efficiency without compromising passenger safety; and
(2) the cost of lightweight materials (such as steel alloys
and carbon fibers) required for the construction of lighter-
weight vehicles may be reduced.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $60,000,000 for each of fiscal
years 2007 through 2012.
SEC. 206. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE MANUFACTURER
AND SUPPLIERS.
(a) In General.--Section 712(a) of the Energy Policy Act of 2005
(42 U.S.C. 16062(a)) is amended in the second sentence by striking
``grants to automobile manufacturers'' and inserting ``grants and loan
guarantees under section 1703 to automobile manufacturers and
suppliers''.
(b) Conforming Amendment.--Section 1703(b) of the Energy Policy Act
of 2005 (42 U.S.C. 16513(b)) is amended by striking paragraph (8) and
inserting the following:
``(8) Production facilities for the manufacture of fuel-
efficient vehicles or parts of such vehicles, including hybrid
and advanced diesel vehicles.''.
SEC. 207. FUNDING FOR ALTERNATIVE INFRASTRUCTURE FOR THE DISTRIBUTION
OF TRANSPORTATION FUELS.
(a) In General.--There is established in the Treasury of the United
States a trust fund, to be known as the ``Alternative Fueling
Infrastructure Trust Fund'' (referred to in this section as the ``Trust
Fund''), consisting of such amounts as are deposited into the Trust
Fund under subsection (b) and any interest earned on investment of
amounts in the Trust Fund.
(b) Penalties.--The Secretary of Transportation shall remit 90
percent of the amount collected in civil penalties under section 32912
of title 49, United States Code, to the Trust Fund.
(c) Grant Program.--
(1) In general.--The Secretary of Energy shall obligate
such sums as are available in the Trust Fund to establish a
grant program to increase the number of locations at which
consumers may purchase alternative transportation fuels.
(2) Administration.--
(A) In general.--The Secretary may award grants
under this subsection to--
(i) individual fueling stations; and
(ii) corporations (including nonprofit
corporations) with demonstrated experience in
the administration of grant funding for the
purpose of alternative fueling infrastructure.
(B) Maximum amount of grants.--A grant provided
under this subsection may not exceed--
(i) $150,000 for each site of an individual
fueling station; and
(ii) $500,000 for each corporation
(including a nonprofit corporation).
(C) Prioritization.--The Secretary shall prioritize
the provision of grants under this subsection to
recognized nonprofit corporations that have proven
experience and demonstrated technical expertise in the
establishment of alternative fueling infrastructure, as
determined by the Secretary.
(D) Administrative expenses.--Not more than 10
percent of the funds provided in any grant may be used
by the recipient of the grant to pay administrative
expenses.
(E) Number of vehicles.--In providing grants under
this subsection, the Secretary shall consider the
number of vehicles in service capable of using a
specific type of alternative fuel.
(F) Match.--Grant recipients shall provide a non-
Federal match of not less than $1 for every $3 of grant
funds received under this subsection.
(G) Locations.--Each grant recipient shall select
the locations for each alternative fuel station to be
constructed with grant funds received under this
subsection on a formal, open, and competitive basis.
(H) Use of information in selection of
recipients.--In selecting grant recipients under this
subsection, the Secretary may consider--
(i) public demand for each alternative fuel
in a particular county based on State
registration records indicating the number of
vehicles that may be operated using alternative
fuel; and
(ii) the opportunity to create or expand
corridors of alternative fuel stations along
interstates or highways.
(3) Use of grant funds.--Grant funds received under this
subsection may be used to--
(A) construct new facilities to dispense
alternative fuels;
(B) purchase equipment to upgrade, expand, or
otherwise improve existing alternative fuel facilities;
or
(C) purchase equipment or pay for specific turnkey
fueling services by alternative fuel providers.
(4) Facilities.--Facilities constructed or upgraded with
grant funds under this subsection shall--
(A) provide alternative fuel available to the
public for a period not less than 4 years;
(B) establish a marketing plan to advance the sale
and use of alternative fuels;
(C) prominently display the price of alternative
fuel on the marquee and in the station;
(D) provide point of sale materials on alternative
fuel;
(E) clearly label the dispenser with consistent
materials;
(F) price the alternative fuel at the same margin
that is received for unleaded gasoline; and
(G) support and use all available tax incentives to
reduce the cost of the alternative fuel to the lowest
practicable retail price.
(5) Opening of stations.--
(A) In general.--Not later than the date on which
each alternative fuel station begins to offer
alternative fuel to the public, the grant recipient
that used grant funds to construct the station shall
notify the Secretary of the opening.
(B) Website.--The Secretary shall add each new
alternative fuel station to the alternative fuel
station locator on the website of the Department of
Energy when the Secretary receives notification under
this subsection.
(6) Reports.--Not later than 180 days after the receipt of
a grant award under this subsection, and every 180 days
thereafter, each grant recipient shall submit a report to the
Secretary that describes--
(A) the status of each alternative fuel station
constructed with grant funds received under this
subsection;
(B) the quantity of alternative fuel dispensed at
each station during the preceding 180-day period; and
(C) the average price per gallon of the alternative
fuel sold at each station during the preceding 180-day
period.
SEC. 208. DEPLOYMENT OF NEW TECHNOLOGIES TO REDUCE OIL USE IN
TRANSPORTATION.
(a) Fuel From Cellulosic Biomass.--
(1) In general.--The Secretary shall provide deployment
incentives under this subsection to encourage a variety of
projects to produce transportation fuel from cellulosic
biomass, relying on different feedstocks in different regions
of the United States.
(2) Project eligibility.--Incentives under this subsection
shall be provided on a competitive basis to projects that
produce fuel that--
(A) meet United States fuel and emission
specifications;
(B) help diversify domestic transportation energy
supplies; and
(C) improve or maintain air, water, soil, and
habitat quality.
(3) Incentives.--Incentives under this subsection may
consist of--
(A) loan guarantees under section 1510 of the
Energy Policy Act of 2005 (42 U.S.C. 16501), subject to
section 1702 of that Act (22 U.S.C. 16512), for the
construction of production facilities and supporting
infrastructure; or
(B) production payments through a reverse auction
in accordance with paragraph (4).
(4) Reverse auction.--
(A) In general.--In providing incentives under this
subsection, the Secretary shall--
(i) issue regulations under which producers
of fuel from cellulosic biomass may bid for
production payments under paragraph (3)(B); and
(ii) solicit bids from producers of
different classes of transportation fuel, as
the Secretary determines to be appropriate.
(B) Requirement.--The rules under subparagraph (A)
shall require that incentives be provided to the
producers that submit the lowest bid (in terms of cents
per gallon) for each class of transportation fuel from
which the Secretary solicits a bid.
(b) Advanced Technology Vehicles Manufacturing Incentive Program.--
(1) Definitions.--In this subsection:
(A) Adjusted fuel economy.--The term ``adjusted
fuel economy'' means the average fuel economy of a
manufacturer for all light duty motor vehicles produced
by the manufacturer, adjusted such that the fuel
economy of each vehicle that qualifies for a credit
shall be considered to be equal to the average fuel
economy for the weight class of the vehicle for model
year 2002.
(B) Advanced lean burn technology motor vehicle.--
The term ``advanced lean burn technology motor
vehicle'' means a passenger automobile or a light truck
with an internal combustion engine that--
(i) is designed to operate primarily using
more air than is necessary for complete
combustion of the fuel;
(ii) incorporates direct injection; and
(iii) achieves at least 125 percent of the
city fuel economy of vehicles in the same size
class as the vehicle for model year 2002.
(C) Advanced technology vehicle.--The term
``advanced technology vehicle'' means a light duty
motor vehicle that--
(i) is a hybrid motor vehicle or an
advanced lean burn technology motor vehicle;
and
(ii) meets--
(I) the Bin 5 Tier II emission
standard established in regulations
issued by the Administrator of the
Environmental Protection Agency under
section 202(i) of the Clean Air Act (42
U.S.C. 7521(i)), or a lower-numbered
Bin emission standard;
(II) any new emission standard for
fine particulate matter prescribed by
the Administrator under that Act (42
U.S.C. 7401 et seq.); and
(III) at least 125 percent of the
base year city fuel economy for the
weight class of the vehicle.
(D) Engineering integration costs.--The term
``engineering integration costs'' includes the cost of
engineering tasks relating to--
(i) incorporating qualifying components
into the design of advanced technology
vehicles; and
(ii) designing new tooling and equipment
for production facilities that produce
qualifying components or advanced technology
vehicles.
(E) Hybrid motor vehicle.--The term ``hybrid motor
vehicle'' means a motor vehicle that draws propulsion
energy from onboard sources of stored energy that are--
(i) an internal combustion or heat engine
using combustible fuel; and
(ii) a rechargeable energy storage system.
(F) Qualifying components.--The term ``qualifying
components'' means components that the Secretary
determines to be--
(i) specially designed for advanced
technology vehicles; and
(ii) installed for the purpose of meeting
the performance requirements of advanced
technology vehicles.
(2) Manufacturer facility conversion awards.--The Secretary
shall provide facility conversion funding awards under this
subsection to automobile manufacturers and component suppliers
to pay not more than 30 percent of the cost of--
(A) reequipping or expanding an existing
manufacturing facility in the United States to
produce--
(i) qualifying advanced technology
vehicles; or
(ii) qualifying components; and
(B) engineering integration performed in the United
States of qualifying vehicles and qualifying
components.
(3) Period of availability.--An award under paragraph (2)
shall apply to--
(A) facilities and equipment placed in service
before December 30, 2017; and
(B) engineering integration costs incurred during
the period beginning on the date of enactment of this
Act and ending on December 30, 2017.
(4) Improvement.--The Secretary shall issue regulations
that require that, in order for an automobile manufacturer to
be eligible for an award under this subsection during a
particular year, the adjusted average fuel economy of the
manufacturer for light duty vehicles produced by the
manufacturer during the most recent year for which data are
available shall be not less than the average fuel economy for
all light duty motor vehicles of the manufacturer for model
year 2002.
SEC. 209. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.
Section 942(f) of the Energy Policy Act of 2005 (42 U.S.C.
16251(f)) is amended by striking ``$250,000,000'' and inserting
``$200,000,000 for each of fiscal years 2007 through 2011''.
TITLE III--FEDERAL PROGRAMS FOR THE CONSERVATION OF NATURAL GAS
SEC. 301. RENEWABLE PORTFOLIO STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end
the following:
``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.
``(a) Renewable Energy Requirement.--
``(1) In general.--Each electric utility that sells
electricity to electric consumers shall obtain a percentage of
the base amount of electricity it sells to electric consumers
in any calendar year from new renewable energy or existing
renewable energy. The percentage obtained in a calendar year
shall not be less than the amount specified in the following
table:
``Calendar year: Minimum annual percentage:
2008 through 2011............... 2.55
2012 through 2015............... 5.05
2016 through 2019............... 7.55
2020 through 2030............... 10.0
``(2) Means of compliance.--An electric utility shall meet
the requirements of paragraph (1) by--
``(A) generating electric energy using new
renewable energy or existing renewable energy;
``(B) purchasing electric energy generated by new
renewable energy or existing renewable energy;
``(C) purchasing renewable energy credits issued
under subsection (b); or
``(D) a combination of the foregoing.
``(b) Renewable Energy Credit Trading Program.--
``(1) In general.--Not later than January 1, 2007, the
Secretary shall establish a renewable energy credit trading
program to permit an electric utility that does not generate or
purchase enough electric energy from renewable energy to meet
its obligations under subsection (a)(1) to satisfy such
requirements by purchasing sufficient renewable energy credits.
``(2) Administration.--As part of the program, the
Secretary shall--
``(A) issue renewable energy credits to generators
of electric energy from new renewable energy;
``(B) sell renewable energy credits to electric
utilities at the rate of 1.5 cents per kilowatt-hour
(as adjusted for inflation under subsection (g));
``(C) ensure that a kilowatt hour, including the
associated renewable energy credit, shall be used only
once for purposes of compliance with this section; and
``(D) allow double credits for generation from
facilities on Indian land, and triple credits for
generation from small renewable distributed generators
(meaning those no larger than 1 megawatt).
``(3) Duration.--Credits under paragraph (2)(A) may only be
used for compliance with this section for 3 years from the date
issued.
``(4) Transfers.--An electric utility that holds credits in
excess of the amount needed to comply with subsection (a) may
transfer such credits to another electric utility in the same
utility holding company system.
``(5) Eastern interconnect.--In the case of a retail
electric supplier that is a member of a power pool located in
the Eastern Interconnect and that is subject to a State
renewable portfolio standard program that provides for
compliance primarily through the acquisition of certificates or
credits in lieu of the direct acquisition of renewable power,
the Secretary shall issue renewable energy credits in an amount
that corresponds to the kilowatt-hour obligation represented by
the State certificates and credits issued pursuant to the State
program to the extent the State certificates and credits are
associated with renewable resources eligible under this
section.
``(c) Enforcement.--
``(1) Civil penalties.--Any electric utility that fails to
meet the renewable energy requirements of subsection (a) shall
be subject to a civil penalty.
``(2) Amount of penalty.--The amount of the civil penalty
shall be determined by multiplying the number of kilowatt-hours
of electric energy sold to electric consumers in violation of
subsection (a) by the greater of 1.5 cents (adjusted for
inflation under subsection (g)) or 200 percent of the average
market value of renewable energy credits during the year in
which the violation occurred.
``(3) Mitigation or waiver.--The Secretary may mitigate or
waive a civil penalty under this subsection if the electric
utility was unable to comply with subsection (a) for reasons
outside of the reasonable control of the utility. The Secretary
shall reduce the amount of any penalty determined under
paragraph (2) by an amount paid by the electric utility to a
State for failure to comply with the requirement of a State
renewable energy program if the State requirement is greater
than the applicable requirement of subsection (a).
``(4) Procedure for assessing penalty.--The Secretary shall
assess a civil penalty under this subsection in accordance with
the procedures prescribed by section 333(d) of the Energy
Policy and Conservation Act of 1954 (42 U.S.C. 6303).
``(d) State Renewable Energy Account Program.--
``(1) In general.--The Secretary shall establish, not later
than December 31, 2008, a State renewable energy account
program.
``(2) Deposits.--All money collected by the Secretary from
the sale of renewable energy credits and the assessment of
civil penalties under this section shall be deposited into the
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) Use.--Proceeds deposited in the State renewable
energy account shall be used by the Secretary, subject to
appropriations, for a program to provide grants to the State
agency responsible for developing State energy conservation
plans under section 362 of the Energy Policy and Conservation
Act (42 U.S.C. 6322) for the purposes of promoting renewable
energy production, including programs that promote technologies
that reduce the use of electricity at customer sites such as
solar water heating.
``(4) Administration.--The Secretary may issue guidelines
and criteria for grants awarded under this subsection. State
energy offices receiving grants under this section shall
maintain such records and evidence of compliance as the
Secretary may require.
``(5) Preference.--In allocating funds under this program,
the Secretary shall give preference--
``(A) to States in regions which have a
disproportionately small share of economically
sustainable renewable energy generation capacity; and
``(B) to State programs to stimulate or enhance
innovative renewable energy technologies.
``(e) Rules.--The Secretary shall issue rules implementing this
section not later than 1 year after the date of enactment of this
section.
``(f) Exemptions.--This section shall not apply in any calendar
year to an electric utility--
``(1) that sold less than 4,000,000 megawatt-hours of
electric energy to electric consumers during the preceding
calendar year; or
``(2) in Hawaii.
``(g) Inflation Adjustment.--Not later than December 31 of each
year beginning in 2008, the Secretary shall adjust for inflation the
price of a renewable energy credit under subsection (b)(2)(B) and the
amount of the civil penalty per kilowatt-hour under subsection (c)(2).
``(h) State Programs.--Nothing in this section shall diminish any
authority of a State or political subdivision thereof to adopt or
enforce any law or regulation respecting renewable energy, but, except
as provided in subsection (c)(3), no such law or regulation shall
relieve any person of any requirement otherwise applicable under this
section. The Secretary, in consultation with States having such
renewable energy programs, shall, to the maximum extent practicable,
facilitate coordination between the Federal program and State programs.
``(i) Recovery of Costs.--
``(1) In general.--The Commission shall issue and enforce
such regulations as are necessary to ensure that an electric
utility recovers all prudently incurred costs associated with
compliance with this section.
``(2) Applicable law.--A regulation under paragraph (1)
shall be enforceable in accordance with the provisions of law
applicable to enforcement of regulations under the Federal
Power Act (16 U.S.C. 791a et seq.).
``(j) Definitions.--In this section:
``(1) Base amount of electricity.--The term `base amount of
electricity' means the total amount of electricity sold by an
electric utility to electric consumers in a calendar year,
excluding--
``(A) electricity generated by a hydroelectric
facility (including a pumped storage facility but
excluding incremental hydropower); and
``(B) electricity generated through the
incineration of municipal solid waste.
``(2) Distributed generation facility.--The term
`distributed generation facility' means a facility at a
customer site.
``(3) Existing renewable energy.--The term `existing
renewable energy' means, except as provided in paragraph
(7)(B), electric energy generated at a facility (including a
distributed generation facility) placed in service prior to
January 1, 2003, from solar, wind, or geothermal energy, ocean
energy, biomass (as defined in section 203(a) of the Energy
Policy Act of 2005), or landfill gas.
``(4) Geothermal energy.--The term `geothermal energy'
means energy derived from a geothermal deposit (within the
meaning of section 613(e)(2) of the Internal Revenue Code of
1986).
``(5) Incremental geothermal production.--
``(A) In general.--The term `incremental geothermal
production' means for any year the excess of--
``(i) the total kilowatt hours of
electricity produced from a facility (including
a distributed generation facility) using
geothermal energy; over
``(ii) the average annual kilowatt hours
produced at such facility for 5 of the previous
7 calendar years before the date of enactment
of this section after eliminating the highest
and the lowest kilowatt hour production years
in such 7-year period.
``(B) Special rule.--A facility described in
subparagraph (A) that was placed in service at least 7
years before the date of enactment of this section
shall commencing with the year in which such date of
enactment occurs, reduce the amount calculated under
subparagraph (A)(ii) each year, on a cumulative basis,
by the average percentage decrease in the annual
kilowatt hour production for the 7-year period
described in subparagraph (A)(ii) with such cumulative
sum not to exceed 30 percent.
``(6) Incremental hydropower.--The term `incremental
hydropower' means additional energy generated as a result of
efficiency improvements or capacity additions made on or after
the date of enactment of this section or the effective date of
an existing applicable State renewable portfolio standard
program at a hydroelectric facility that was placed in service
before that date. The term does not include additional energy
generated as a result of operational changes not directly
associated with efficiency improvements or capacity additions.
Efficiency improvements and capacity additions shall be
measured on the basis of 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.
``(7) New renewable energy.--The term `new renewable
energy' means--
``(A) electric energy generated at a facility
(including a distributed generation facility) placed in
service on or after January 1, 2003, from--
``(i) solar, wind, or geothermal energy or
ocean energy;
``(ii) biomass (as defined in section
203(b) of the Energy Policy Act of 2005 (42
U.S.C. 15852(b));
``(iii) landfill gas; or
``(iv) incremental hydropower; and
``(B) for electric energy generated at a facility
(including a distributed generation facility) placed in
service prior to the date of enactment of this
section--
``(i) the additional energy above the
average generation in the 3 years preceding the
date of enactment of this section at the
facility from--
``(I) solar or wind energy or ocean
energy;
``(II) biomass (as defined in
section 203(b) of the Energy Policy Act
of 2005 (42 U.S.C. 15852(b));
``(III) landfill gas; or
``(IV) incremental hydropower.
``(ii) incremental geothermal production.
``(8) Ocean energy.--The term `ocean energy' includes
current, wave, tidal, and thermal energy.
``(k) Sunset.--This section expires on December 31, 2030.''.
(b) Table of Contents Amendment.--The table of contents of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. prec. 2601)
is amended by adding at the end of the items relating to title VI the
following:
``Sec. 610. Federal renewable portfolio standard.''.
SEC. 302. FEDERAL REQUIREMENT TO PURCHASE ELECTRICITY GENERATED BY
RENEWABLE ENERGY.
Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is
amended by striking subsection (a) and inserting the following:
``(a) Requirement.--The President, acting through the Secretary,
shall ensure that, of the total quantity of electric energy the Federal
Government consumes during any fiscal year, the following amounts shall
be renewable energy:
``(1) Not less than 5 percent in each of fiscal years 2008
and 2009.
``(2) Not less than 7.5 percent in each of fiscal years
2010 through 2012.
``(3) Not less than 10 percent in fiscal years 2013 and
each fiscal year thereafter.''.
TITLE IV--GENERAL ENERGY EFFICIENCY PROGRAMS
SEC. 401. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Retention of Savings.--Section 546(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8256(c)) is amended by striking
paragraph (5).
(b) Financing Flexibility.--Section 801(a)(2) of the National
Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by
adding at the end the following:
``(E) Separate contracts.--In carrying out a
contract under this title, a Federal agency may--
``(i) enter into a separate contract for
energy services and conservation measures under
the contract; and
``(ii) provide all or part of the financing
necessary to carry out the contract.''.
(c) Definition of Energy Savings.--Section 804(2) of the National
Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and indenting
appropriately;
(2) by striking ``means a reduction'' and inserting
``means--
``(A) a reduction'';
(3) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following:
``(B) the increased efficient use of an existing
energy source by cogeneration or heat recovery, and
installation of renewable energy systems;
``(C) the sale or transfer of electrical or thermal
energy generated on-site, but in excess of Federal
needs, to utilities or non-Federal energy users; and
``(D) the increased efficient use of existing water
sources in interior or exterior applications.''.
(d) Energy and Cost Savings in Nonbuilding Applications.--
(1) Definitions.--In this subsection:
(A) Nonbuilding application.--The term
``nonbuilding application'' means--
(i) any class of vehicles, devices, or
equipment that is transportable under the power
of the applicable vehicle, device, or equipment
by land, sea, or air and that consumes energy
from any fuel source for the purpose of--
(I) that transportation; or
(II) maintaining a controlled
environment within the vehicle, device,
or equipment; and
(ii) any federally-owned equipment used to
generate electricity or transport water.
(B) Secondary savings.--
(i) In general.--The term ``secondary
savings'' means additional energy or cost
savings that are a direct consequence of the
energy savings that result from the energy
efficiency improvements that were financed and
implemented pursuant to an energy savings
performance contract.
(ii) Inclusions.--The term ``secondary
savings'' includes--
(I) energy and cost savings that
result from a reduction in the need for
fuel delivery and logistical support;
(II) personnel cost savings and
environmental benefits; and
(III) in the case of electric
generation equipment, the benefits of
increased efficiency in the production
of electricity, including revenues
received by the Federal Government from
the sale of electricity so produced.
(2) Study.--
(A) In general.--As soon as practicable after the
date of enactment of this Act, the Secretary and the
Secretary of Defense shall jointly conduct, and submit
to Congress and the President a report of, a study of
the potential for the use of energy savings performance
contracts to reduce energy consumption and provide
energy and cost savings in nonbuilding applications.
(B) Requirements.--The study under this subsection
shall include--
(i) an estimate of the potential energy and
cost savings to the Federal Government,
including secondary savings and benefits, from
increased efficiency in nonbuilding
applications;
(ii) an assessment of the feasibility of
extending the use of energy savings performance
contracts to nonbuilding applications,
including an identification of any regulatory
or statutory barriers to such use; and
(iii) such recommendations as the Secretary
and Secretary of Defense determine to be
appropriate.
SEC. 402. DEPLOYMENT OF NEW TECHNOLOGIES FOR HIGH-EFFICIENCY CONSUMER
PRODUCTS.
(a) Definitions.--In this section:
(1) Energy savings.--The term ``energy savings'' means
megawatt-hours of electricity or million British thermal units
of natural gas saved by a product, in comparison to projected
energy consumption under the energy efficiency standard
applicable to the product.
(2) High-efficiency consumer product.--The term ``high-
efficiency consumer product'' means a covered product to which
an energy conservation standard applies under section 325 of
the Energy Policy and Conservation Act (42 U.S.C. 6295), if the
energy efficiency of the product exceeds the energy efficiency
required under the standard.
(b) Financial Incentives Program.--Effective beginning October 1,
2006, the Secretary shall competitively award financial incentives
under this section for the manufacture of high-efficiency consumer
products.
(c) Requirements.--
(1) In general.--The Secretary shall make awards under this
section to manufacturers of high-efficiency consumer products,
based on the bid of each manufacturer in terms of dollars per
megawatt-hour or million British thermal units saved.
(2) Acceptance of bids.--In making awards under this
section, the Secretary shall--
(A) solicit bids for reverse auction from
appropriate manufacturers, as determined by the
Secretary; and
(B) award financial incentives to the manufacturers
that submit the lowest bids that meet the requirements
established by the Secretary.
(d) Forms of Awards.--An award for a high-efficiency consumer
product under this section shall be in the form of a lump sum payment
in an amount equal to the product obtained by multiplying--
(1) the amount of the bid by the manufacturer of the high-
efficiency consumer product; and
(2) the energy savings during the projected useful life of
the high-efficiency consumer product, not to exceed 10 years,
as determined under regulations issued by the Secretary.
SEC. 403. NATIONAL MEDIA CAMPAIGN TO DECREASE OIL AND NATURAL GAS
CONSUMPTION.
(a) In General.--The Secretary, acting through the Assistant
Secretary for Energy Efficiency and Renewable Energy (referred to in
this section as the ``Secretary''), shall develop and conduct a
national media campaign for the purpose of decreasing oil and natural
gas consumption in the United States over the next decade.
(b) Contract With Entity.--The Secretary shall carry out subsection
(a) directly or through--
(1) competitively bid contracts with 1 or more nationally
recognized media firms for the development and distribution of
monthly television, radio, and newspaper public service
announcements; or
(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit organizations
for the funding, development, and distribution of monthly
television, radio, and newspaper public service announcements.
(c) Use of Funds.--
(1) In general.--Amounts made available to carry out this
section shall be used for the following:
(A) Advertising costs.--
(i) The purchase of media time and space.
(ii) Creative and talent costs.
(iii) Testing and evaluation of
advertising.
(iv) Evaluation of the effectiveness of the
media campaign.
(v) The negotiated fees for the winning
bidder on requests from proposals issued either
by the Secretary for purposes otherwise
authorized in this section.
(vi) Entertainment industry outreach,
interactive outreach, media projects and
activities, public information, news media
outreach, and corporate sponsorship and
participation.
(B) Administrative costs.--Operational and
management expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of funds made
available under subsection (e) for each fiscal year for the
advertising functions specified under paragraph (1)(A).
(d) Reports.--The Secretary shall annually submit to Congress a
report that describes--
(1) the strategy of the national media campaign and whether
specific objectives of the campaign were accomplished,
including--
(A) determinations concerning the rate of change of
oil and natural gas consumption, in both absolute and
per capita terms; and
(B) an evaluation that enables consideration
whether the media campaign contributed to reduction of
oil and natural gas consumption;
(2) steps taken to ensure that the national media campaign
operates in an effective and efficient manner consistent with
the overall strategy and focus of the campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase advertising time
and space and eliminate the potential for waste, fraud, and
abuse; and
(5) all contracts or cooperative agreements entered into
with a corporation, partnership, or individual working on
behalf of the national media campaign.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2006 through 2010.
SEC. 404. ENERGY EFFICIENCY RESOURCE PROGRAMS.
(a) Electric Utility Programs.--Section 111 of the Public Utilities
Regulatory Policy Act of 1978 (16 U.S.C. 2621) is amended by adding at
the end the following:
``(e) Energy Efficiency Resource Programs.--
``(1) Definitions.--In this subsection:
``(A) Demand baseline.--The term `demand baseline'
means the baseline determined by the Secretary for an
appropriate period preceding the implementation of an
energy efficiency resource program.
``(B) Energy efficiency resource programs.--The
term `energy efficiency resource program' means an
energy efficiency or other demand reduction program
that is designed to reduce annual electricity
consumption or peak demand of consumers served by an
electric utility by a percentage of the demand baseline
of the utility that is equal to not less than 0.75
percent of the number of years during which the program
is in effect.
``(2) Public hearings; determinations.--
``(A) Public hearing.--As soon as practicable after
the date of enactment of this subsection, but not later
than 3 years after that date, each State regulatory
authority (with respect to each electric utility over
which the State has ratemaking authority) and each
nonregulated electric utility shall, after notice,
conduct a public hearing on the benefits and
feasibility of carrying out an energy efficiency
resource program.
``(B) Energy efficiency resource program.--A State
regulatory authority or nonregulated utility shall
carry out an energy efficiency resource program if, on
the basis of a hearing under subparagraph (A), the
State regulatory authority or nonregulated utility
determines that the program would--
``(i) benefit end-use customers;
``(ii) be cost-effective based on total
resource cost;
``(iii) serve the public welfare; and
``(iv) be feasible to carry out.
``(3) Implementation.--
``(A) State regulatory authorities.--If a State
regulatory authority makes a determination under
paragraph (2)(B), the State regulatory authority
shall--
``(i) require each electric utility over
which the State has ratemaking authority to
carry out an energy efficiency resource
program; and
``(ii) allow such a utility to recover
expenditures incurred by the utility in
carrying out the energy efficiency resource
program.
``(B) Nonregulated electric utilities.--If a
nonregulated electric utility makes a determination
under paragraph (2)(B), the utility shall carry out an
energy efficiency resource program.
``(4) Updating regulations.--A State regulatory authority
or nonregulated utility may update periodically a determination
under paragraph (2)(B) to determine whether an energy
efficiency resource program should be--
``(A) continued;
``(B) modified; or
``(C) terminated.
``(5) Exception.--Paragraph (2) shall not apply to a State
regulatory authority (or a nonregulated electric utility
operating in the State) that demonstrates to the Secretary that
an energy efficiency resource program is in effect in the
State.''.
(b) Gas Utilities.--Section 303 of the Public Utilities Regulatory
Policy Act of 1978 (15 U.S.C. 3203) is amended by adding at the end the
following:
``(e) Energy Efficiency Resource Programs.--
``(1) Definitions.--In this subsection:
``(A) Demand baseline.--The term `demand baseline'
means the baseline determined by the Secretary for an
appropriate period preceding the implementation of an
energy efficiency resource program.
``(B) Energy efficiency resource programs.--The
term `energy efficiency resource program' means an
energy efficiency or other demand reduction program
that is designed to reduce annual gas consumption or
peak demand of consumers served by a gas utility by a
percentage of the demand baseline of the utility that
is equal to not less than 0.75 percent of the number of
years during which the program is in effect.
``(2) Public hearings; determinations.--
``(A) Public hearing.--As soon as practicable after
the date of enactment of this subsection, but not later
than 3 years after that date, each State regulatory
authority (with respect to each gas utility over which
the State has ratemaking authority) and each
nonregulated gas utility shall, after notice, conduct a
public hearing on the benefits and feasibility of
carrying out an energy efficiency resource program.
``(B) Energy efficiency resource program.--A State
regulatory authority or nonregulated utility shall
carry out an energy efficiency resource program if, on
the basis of a hearing under subparagraph (A), the
State regulatory authority or nonregulated utility
determines that the program would--
``(i) benefit end-use customers;
``(ii) be cost-effective based on total
resource cost;
``(iii) serve the public welfare; and
``(iv) be feasible to carry out.
``(3) Implementation.--
``(A) State regulatory authorities.--If a State
regulatory authority makes a determination under
paragraph (2)(B), the State regulatory authority
shall--
``(i) require each gas utility over which
the State has ratemaking authority to carry out
an energy efficiency resource program; and
``(ii) allow such a utility to recover
expenditures incurred by the utility in
carrying out the energy efficiency resource
program.
``(B) Nonregulated gas utilities.--If a
nonregulated gas utility makes a determination under
paragraph (2)(B), the utility shall carry out an energy
efficiency resource program.
``(4) Updating regulations.--A State regulatory authority
or nonregulated utility may update periodically a determination
under paragraph (2)(B) to determine whether an energy
efficiency resource program should be--
``(A) continued;
``(B) modified; or
``(C) terminated.
``(5) Exception.--Paragraph (2) shall not apply to a State
regulatory authority (or a nonregulated gas utility operating
in the State) that demonstrates to the Secretary that an energy
efficiency resource program is in effect in the State.''.
TITLE V--ASSISTANCE TO ENERGY CONSUMERS
SEC. 501. ENERGY EMERGENCY DISASTER RELIEF LOANS TO SMALL BUSINESS AND
AGRICULTURAL PRODUCERS.
(a) Definitions.--In this section--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration; and
(2) the term ``small business concern'' has the meaning
given the term in section 3 of the Small Business Act (15
U.S.C. 632).
(b) Small Business Producer Energy Emergency Disaster Loan
Program.--
(1) Disaster loan authority.--Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended by inserting
immediately after paragraph (3) the following:
``(4) Energy disaster loans.--
``(A) Definitions.--In this paragraph--
``(i) the term `base price index' means the
moving average of the closing unit price on the
New York Mercantile Exchange for heating oil,
natural gas, gasoline, or propane for the 10
days that correspond to the trading days
described in clause (ii) in each of the most
recent 2 preceding years;
``(ii) the term `current price index' means
the moving average of the closing unit price on
the New York Mercantile Exchange, for the 10
most recent trading days, for contracts to
purchase heating oil, natural gas, gasoline, or
propane during the subsequent calendar month,
commonly known as the `front month'; and
``(iii) the term `significant increase'
means--
``(I) with respect to the price of
heating oil, natural gas, gasoline, or
propane, any time the current price
index exceeds the base price index by
not less than 40 percent; and
``(II) with respect to the price of
kerosene, any increase which the
Administrator, in consultation with the
Secretary of Energy, determines to be
significant.
``(B) Loan authority.--The Administrator may make
such loans, either directly or in cooperation with
banks or other lending institutions through agreements
to participate on an immediate or deferred basis, to
assist a small business concern that has suffered or
that is likely to suffer substantial economic injury on
or after January 1, 2005, as the result of a
significant increase in the price of heating oil,
natural gas, gasoline, propane, or kerosene occurring
on or after January 1, 2005.
``(C) Interest rate.--Any loan or guarantee
extended pursuant to this paragraph shall be made at
the same interest rate as economic injury loans under
paragraph (2).
``(D) Maximum amount.--No loan may be made under
this paragraph, either directly or in cooperation with
banks or other lending institutions through agreements
to participate on an immediate or deferred basis, if
the total amount outstanding and committed to the
borrower under this subsection would exceed $1,500,000,
unless such borrower constitutes a major source of
employment in its surrounding area, as determined by
the Administrator, in which case the Administrator, in
the discretion of the Administrator, may waive the
$1,500,000 limitation.
``(E) Disaster declaration.--For purposes of
assistance under this paragraph--
``(i) a declaration of a disaster area
based on conditions specified in this paragraph
shall be required, and shall be made by the
President or the Administrator; or
``(ii) if no declaration has been made
pursuant to clause (i), the Governor of a State
in which a significant increase in the price of
heating oil, natural gas, gasoline, propane, or
kerosene has occurred may certify to the
Administrator that small business concerns have
suffered economic injury as a result of such
increase and are in need of financial
assistance which is not otherwise available on
reasonable terms in that State, and upon
receipt of such certification, the
Administrator may make such loans as would have
been available under this paragraph if a
disaster declaration had been issued.
``(F) Conversion.--Notwithstanding any other
provision of law, loans made under this paragraph may
be used by a small business concern described in
subparagraph (B) to convert from the use of heating
oil, natural gas, gasoline, propane, or kerosene to a
renewable or alternative energy source, including
agriculture and urban waste, geothermal energy,
cogeneration, solar energy, wind energy, or fuel
cells.''.
(2) Conforming amendments.--Section 3(k) of the Small
Business Act (15 U.S.C. 632(k)) is amended--
(A) by inserting ``, a significant increase in the
price of heating oil, natural gas, gasoline, propane,
or kerosene,'' after ``civil disorders''; and
(B) by inserting ``other'' before ``economic''.
(c) Agricultural Producer Emergency Loans.--
(1) In general.--Section 321(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961(a)) is amended--
(A) in the first sentence--
(i) by striking ``aquaculture operations
have'' and inserting ``aquaculture operations
(i) have''; and
(ii) by inserting before ``: Provided,''
the following: ``, or (ii)(I) are owned or
operated by such an applicant that is also a
small business concern (as defined in section 3
of the Small Business Act (15 U.S.C. 632)), and
(II) have suffered or are likely to suffer
substantial economic injury on or after January
1, 2005, as the result of a significant
increase in energy costs or input costs from
energy sources occurring on or after January 1,
2005, in connection with an energy emergency
declared by the President or the Secretary'';
(B) in the third sentence, by inserting before the
period at the end the following: ``or by an energy
emergency declared by the President or the Secretary'';
and
(C) in the fourth sentence--
(i) by striking ``or natural disaster''
each place that term appears and inserting ``,
natural disaster, or energy emergency''; and
(ii) by inserting ``or declaration'' after
``emergency designation''.
(2) Funding.--Funds available on the date of enactment of
this Act for emergency loans under subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
seq.) shall be available to carry out the amendments made by
paragraph (1) to meet the needs resulting from natural
disasters.
(d) Guidelines and Rulemaking.--
(1) Guidelines.--Not later than 30 days after the date of
enactment of this Act, the Administrator and the Secretary of
Agriculture shall each issue guidelines to carry out
subsections (b) and (c), respectively, and the amendments made
thereby, which guidelines shall become effective on the date of
their issuance.
(2) Rulemaking.--Not later than 30 days after the date of
enactment of this Act, the Administrator, after consultation
with the Secretary of Energy, shall promulgate regulations
specifying the method for determining a significant increase in
the price of kerosene under section 7(b)(4)(A)(iii)(II) of the
Small Business Act, as added by this section.
(e) Reports.--
(1) Small business administration.--Not later than 12
months after the date on which the Administrator issues
guidelines under subsection (d)(1), and annually thereafter,
until the date that is 12 months after the end of the effective
period of section 7(b)(4) of the Small Business Act, as added
by this section, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives, a report on the effectiveness of the
assistance made available under section 7(b)(4) of the Small
Business Act, as added by this section, including--
(A) the number of small business concerns that
applied for a loan under such section 7(b)(4) and the
number of those that received such loans;
(B) the dollar value of those loans;
(C) the States in which the small business concerns
that received such loans are located;
(D) the type of energy that caused the significant
increase in the cost for the participating small
business concerns; and
(E) recommendations for ways to improve the
assistance provided under such section 7(b)(4), if any.
(2) Department of agriculture.--Not later than 12 months
after the date on which the Secretary of Agriculture issues
guidelines under subsection (d)(1), and annually thereafter,
until the date that is 12 months after the end of the effective
period of the amendments made to section 321(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a))
by this section, the Secretary shall submit to the Committee on
Small Business and Entrepreneurship and the Committee on
Agriculture, Nutrition, and Forestry of the Senate and to the
Committee on Small Business and the Committee on Agriculture of
the House of Representatives, a report that--
(A) describes the effectiveness of the assistance
made available under section 321(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961(a)), as
amended by this section; and
(B) contains recommendations for ways to improve
the assistance provided under such section 321(a).
(f) Effective Date.--
(1) Small business.--The amendments made by subsection (b)
shall apply during the 4-year period beginning on the earlier
of the date on which guidelines are published by the
Administrator under subsection (d)(1) or 30 days after the date
of enactment of this Act, with respect to assistance under
section 7(b)(4) of the Small Business Act, as added by this
section.
(2) Agriculture.--The amendments made by subsection (c)
shall apply during the 4-year period beginning on the earlier
of the date on which guidelines are published by the Secretary
of Agriculture under subsection (d)(1) or 30 days after the
date of enactment of this Act, with respect to assistance under
section 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1961(a)), as amended by this section.
SEC. 502. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT PROGRAM FOR
WEATHERIZATION PURPOSES.
(a) In General.--Part A of title IV of the Energy Conservation and
Production Act is amended--
(1) by redesignating section 422 (42 U.S.C. 6872) as
section 423; and
(2) by inserting after section 421 (42 U.S.C. 6871) the
following:
``SEC. 422. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT PROGRAM FOR
WEATHERIZATION PURPOSES.
``(a) Establishment of Program.--The Secretary shall establish,
within the Weatherization Assistance Program, a program to assist in
the replacement of unsafe or highly inefficient heating and cooling
units in low-income households.
``(b) Administration.--
``(1) In general.--Except as otherwise provided in this
subsection, the Secretary shall administer the program
established under this section in accordance with this part.
``(2) Exemption for high-efficiency heating and cooling
equipment expenditures.--Assistance for high-efficiency heating
and cooling equipment under this section shall be exempt from
the standards established under section 413(b)(3) and from
section 415(c).
``(3) Identification of heating and cooling system
upgrades.--Assistance for system upgrades under this section
shall be based on a standard weatherization audit and
appropriate diagnostic procedures in use by the program.
``(4) Weatherization of home receiving new heating or
cooling system.--Assistance may be perceived for a home
receiving a new heating or cooling system under this section
regardless of whether the home is fully weatherized in the year
that the home received a new heating system.
``(5) Fuel.--The Secretary shall make no rule prohibiting a
grantee from installing high-efficiency equipment that uses a
fuel (including a renewable fuel) most likely to result in
reliable supply and the lowest practicable energy bills,
regardless of the fuel previously used by the household.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $40,000,000 for fiscal year 2006;
``(2) $50,000,000 for fiscal year 2007; and
``(3) $60,000,000 for fiscal year 2008.''.
(b) Table of Contents Amendment.--The table of contents of the
Energy Conservation and Production Act (42 U.S.C. prec. 6901) is
amended--
(1) by redesignating the item relating to section 422 as an
item relating to section 423; and
(2) by inserting after the item relating to section 421 the
following:
``Sec. 422. Efficient and safe equipment program.''.
<all>