110 HR 2809 IH: Royalty Relief for American Consumers Act of 2007
U.S. House of Representatives
2007-06-21
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the New Apollo Energy Act of 2007
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Findings and performance goals
Sec. 101. Findings.
Sec. 102. Performance goals.
Title II—Efficiency
Subtitle A—Green buildings
Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Definitions.
Sec. 204. Coordinating agency.
Sec. 205. Public education and training.
Sec. 206. Blue ribbon panel.
Sec. 207. Research and development report.
Sec. 208. Greenhouse gas emission standards.
Sec. 209. Study of use of FHA energy efficient mortgage program.
Sec. 210. Healthy, high-performance schools.
Sec. 211. Loan guarantees for public institutions of higher education.
Sec. 212. Accountability of Federal agencies.
Sec. 213. State and local government block grants.
Sec. 214. Authorization of appropriations.
Sec. 215. Increase and extension of energy efficient commercial buildings deduction.
Subtitle B—Consumer assistance
Sec. 221. Appliance standards.
Sec. 222. Energy Star certification for solar water heaters and tankless water heaters.
Subtitle C—Tax provision
Sec. 231. Energy credit for combined heat and power system property.
Title III—Transportation sector
Sec. 301. Performance goals.
Subtitle A—Plug-in hybrid electric vehicles
Sec. 311. Short title.
Sec. 312. Definition.
Sec. 313. Research and development grants.
Sec. 314. Pilot project.
Sec. 315. Test site.
Sec. 316. Plan.
Sec. 317. Plug-in hybrid motor vehicle tax credit.
Subtitle B—Increase ridership of public transportation
Sec. 321. Increased uniform dollar limitation for all types of transportation fringe benefits.
Sec. 322. Credit for employer costs of providing certain mass transportation fringe benefits to their employees.
Sec. 323. Clarification of Federal employee benefits.
Sec. 324. Extension of transportation fringe benefit to bicycle commuters.
Subtitle C—Emissions reductions and oil savings
Chapter 1—Biofuels security
Sec. 331. Short title.
Subchapter A—Renewable fuels
Sec. 341. Renewable fuel program.
Sec. 342. Installation of e–85 fuel pumps by major oil companies at owned stations and branded stations.
Sec. 343. Minimum Federal fleet requirement.
Sec. 344. Application of Gasohol Competition Act of 1980.
Subchapter B—Dual fueled automobiles
Sec. 351. Requirement to manufacture dual fueled automobiles.
Sec. 352. Manufacturing incentives for dual fueled automobiles.
Chapter 2—Emissions reductions
Sec. 361. Extension of biodiesel tax credits.
Sec. 362. Low carbon fuel standard.
Sec. 363. Loan guarantee program to demonstrate low carbon renewable fuel.
Sec. 364. Require automakers to reduce tailpipe GHG emissions.
Sec. 365. Elimination of 2–FLEET rule.
Title IV—Electricity sector
Subtitle A—Tax incentives
Sec. 401. Extension through 2018 for placing qualified facilities in service for producing renewable electric energy.
Sec. 402. Extension of energy credit.
Sec. 403. Expansion and modification of renewable resource credit.
Sec. 404. Energy credit for small wind, small geothermal, small biomass, and small kinetic hydropower.
Sec. 405. Modifications for clean renewable energy bonds.
Sec. 406. Expansion and increase for residential energy efficient property credit.
Sec. 407. Expansion of renewable resource credit to include thermal energy.
Subtitle B—Promoting energy efficient investments
Sec. 411. Rate modifications promoting energy efficiency investments.
Sec. 412. Feed-in tariff system study.
Subtitle C—National renewable energy zones
Sec. 421. New electricity transmission lines designed primarily to carry electricity from renewable energy resources.
Sec. 422. Short title.
Sec. 423. Findings.
Sec. 424. National renewable energy zones.
Sec. 425. Federal Power Marketing Administrations and TVA.
Sec. 426. Consistency with environmental laws.
Subtitle D—Net metering
Sec. 431. Establishing minimum net metering and interconnection standards.
Sec. 432. Retail electric and gas utility efficiency policies.
Subtitle E—Renewable portfolio standard
Sec. 441. Renewable portfolio standard.
Subtitle F—Marine and hydrokinetic renewable energy promotion
Sec. 451. Short title.
Sec. 452. Definition.
Sec. 453. Research and development.
Sec. 454. Adaptive Management and Environmental Fund.
Sec. 455. Programmatic environmental impact statement.
Subtitle G—Carbon capture and sequestration
Sec. 461. Carbon capture and storage research, development, and demonstration program.
Title V—Green workforce
Subtitle A—Small manufacturer assistance
Sec. 501. Small manufacturer assistance through Hollings Manufacturing Extension Partnership Program.
Subtitle B—Green workforce education incentives
Sec. 511. National Green Certification Standards.
Sec. 512. Environmentally literate workforce grant program.
Sec. 513. Carbon neutrality grants in institutions of higher educations.
Sec. 514. National green ranking system grant.
Sec. 515. Green building and zero-energy home design training grants.
Sec. 516. Student loan forgiveness for green workforce members.
Sec. 517. Definitions.
Title VI—Federal Government leverage to move new technologies to market
Subtitle A—Incentives for clean energy technology
Sec. 601. New Energy Technologies Commission.
Sec. 602. Loan Guarantees Program.
Sec. 603. Grant Program to Create Clean Energy Business Districts.
Subtitle B—Clean energy exports and international investment
Sec. 611. Clean energy technology exports program.
Sec. 612. International energy technology deployment program.
Subtitle C—Export-Import Bank
Sec. 621. Require the Export-Import Bank of the United States to meet renewable energy targets in its lending practices.
Sec. 622. Increase in the amount of financing made available by the Export-Import Bank for transactions involving renewable energy and energy efficiency.
Sec. 623. Office of renewable energy promotion.
Sec. 624. Report on Export-Import Bank financing for transactions involving renewable energy or energy efficiency.
Sec. 625. Report on effect of Export-Import Bank financing on greenhouse gas emissions.
Subtitle D—Emerging clean energy technology venture capital fund
Sec. 631. Findings.
Sec. 632. Establishment of fund.
Sec. 633. Authorization of appropriations.
Title VII—Greenhouse gas reductions
Subtitle A—Global climate change
Sec. 701. Global climate change.
Subtitle B—Climate change research initiatives
Sec. 711. Research grants through National Science Foundation.
Sec. 712. Abrupt climate change research.
Sec. 713. Development of new measurement technologies.
Sec. 714. Technology development and diffusion.
Sec. 715. Public land.
Sec. 716. Sea level rise from polar ice sheet melting.
Title VIII—Offsets
Subtitle A—Denial of oil and gas tax benefits
Sec. 801. Short title.
Sec. 802. Denial of deduction for income attributable to domestic production of oil, natural gas, or primary products thereof.
Sec. 803. 7-year amortization of geological and geophysical expenditures for certain major integrated oil companies.
Subtitle B—Royalties under offshore oil and gas leases
Sec. 811. Short title.
Sec. 812. Price thresholds for royalty suspension provisions.
Sec. 813. Clarification of authority to impose price thresholds for certain lease sales.
Sec. 814. Eligibility for new leases and the transfer of leases; conservation of resources fees.
Sec. 815. Repeal of certain taxpayer subsidized royalty relief for the oil and gas industry.
Subtitle C—Strategic energy efficiency and renewable reserve
Sec. 821. Strategic Energy Efficiency and Renewables Reserve for investments in renewable energy and energy efficiency.
<enum>I</enum><header>Findings and performance goals</header>
<section id="H9F071B572C8547D0AD0049A126CE00C6"><enum>101.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="HC98570A9E1FE484886AC488B3272CDEB"><enum>(1)</enum><text>A bold new national energy plan can lead to a surge of investment in, development of, and deployment of clean energy and energy efficient technologies that would result in the creation of millions of highly-trained manufacturing and technical jobs throughout the United States economy.</text> </paragraph>
<paragraph id="H571DB7F477734965AADFDA4CB6D67089"><enum>(2)</enum><text>Climate change, national security and energy dependence are a related set of global challenges.</text> </paragraph>
<paragraph id="HC474FF2E91C04AAEA7559F02F92E33CF"><enum>(3)</enum><text>The United States currently relies on oil for over 95 percent of its transportation fuel needs.</text> </paragraph>
<paragraph id="H7351210D723443FAB22FA91433C16915"><enum>(4)</enum><text>The United States currently imports 60 percent of the oil it consumes and consumes about one fourth of the world’s daily oil production.</text> </paragraph>
<paragraph id="H46F407A3428F4F4FA484007F1FE0B3C3"><enum>(5)</enum><text>A major portion of the world’s oil supply is controlled by unstable governments and countries that are known to finance, harbor, or otherwise support terrorism and terrorist activities.</text> </paragraph>
<paragraph id="H2EA647152C4946299411006544607C65"><enum>(6)</enum><text>Since World War II, the United States has made significant expenditures of American taxpayer dollars in attempts to stabilize governments and protect United States interests in the Middle East.</text> </paragraph>
<paragraph id="HD76A816AD0C4445CB219E2581209D8EA"><enum>(7)</enum><text>Countries such as Japan, Germany, Denmark, and Great Britain lead the United States in manufacturing alternative energy technologies that both decrease reliance on fossil fuels and do not contribute to global warming.</text> </paragraph>
<paragraph id="H76C3B193392E499EA4AD12FAEB24D190"><enum>(8)</enum><text>The United States has led the world in the development of a wide array of technological advances and is now poised to lead the world, using its unique national genius for innovation, in the development of a host of new energy technologies.</text> </paragraph>
<paragraph id="H5FBDF90A21FF4E03A8900230FC42B401"><enum>(9)</enum><text>Development of renewable energy resources in the United States offers a substantial opportunity for economic development in rural, agriculture-dependent areas.</text> </paragraph>
<paragraph id="H2B44E3397360403DA995002002EF4FC5"><enum>(10)</enum><text>Human activities have caused rapid increases in atmospheric concentrations of carbon dioxide and other greenhouse gases in the last century.</text> </paragraph>
<paragraph id="H7983E2A412BD4866A70094E13C219DB7"><enum>(11)</enum><text>According to the Intergovernmental Panel on Climate Change and the National Research Council—</text>
<subparagraph id="H5108F8FD20F24B9DA74C22EF4C469EB9"><enum>(A)</enum><text>the earth has warmed in the last century; and</text> </subparagraph>
<subparagraph id="H96C4AC5258124F94A16C91004D303100"><enum>(B)</enum><text>the majority of the observed warming is attributable to human activities, including fossil fuel-generated carbon dioxide emissions.</text> </subparagraph></paragraph>
<paragraph id="H8D5297874F57417CBBCA0745BC49567C"><enum>(12)</enum><text>To avoid catastrophic global warming, the United States should take decisive action with other nations to reduce greenhouse gas emissions by 80 percent by 2050.</text> </paragraph>
<paragraph id="H0A13471E652047DEAD38AA3CC7D17101"><enum>(13)</enum><text>Projected climate change poses a serious threat to United States national security.</text> </paragraph>
<paragraph id="H4522A90C19CD4C7D919B1FCB96EB7C4D"><enum>(14)</enum><text>Projected climate change will add to tensions even in stable regions of the world.</text> </paragraph></section>
<section id="H5BE7F19028A44A13A837A699531B05EC"><enum>102.</enum><header>Performance goals</header><text display-inline="no-display-inline">In order to ensure that the national energy policy of the United States is the most effective policy for protecting national and homeland security, expanding our economy and creating jobs, addressing global warming and environmental health concerns, and protecting the interests of United States consumers, Congress establishes the New Apollo Energy Act Performance Goals, which the President shall consider when formulating and enforcing national energy policy. These goals are as follows:</text>
<paragraph id="H3811CEB166FA4A3CA356E762B5147053"><enum>(1)</enum><text>Reduce the projected demand for gasoline in the United States by at least 70 billion gallons annually by 2030.</text> </paragraph>
<paragraph id="H70916F9FCDBB41D898AA6424DD2362CD"><enum>(2)</enum><text>Create and retain 3,000,000 new highly skilled, high-wage jobs in the United States by 2015.</text> </paragraph>
<paragraph id="H4D7EC0661E1442D3884CE9EA32913F08"><enum>(3)</enum><text>Meet 10 percent of the country’s electricity needs from electricity generated from renewable resources by 2012, and meet 20 percent of the country’s electricity needs from electricity generated from renewable resources by 2020.</text> </paragraph>
<paragraph id="HE4A3BCEF577B4F7AA0A32FA277C42A"><enum>(4)</enum><text>Lower energy costs for consumers by meeting at least 10 percent of projected electricity demand and 5 percent of natural gas demand by 2020 through increased conservation and improved energy efficiency.</text> </paragraph>
<paragraph id="H6C7BACF0DB6B499D85FA3B795469D8DE"><enum>(5)</enum><text>Freeze U.S. greenhouse gas emissions in 2010, at 2009 levels. Beginning in 2011, cuts emissions to achieve 1990 emissions levels by 2020. After 2020, cut emissions each year to reach 80 percent below 1990 levels by 2050.</text> </paragraph>
<paragraph id="H0363DEFC84EC4D7ABB009F3B97B20042"><enum>(6)</enum><text>Encourage domestic manufacturing and production of new energy and energy efficient technologies.</text> </paragraph>
<paragraph id="H7738FB54348A46FAB222E866DDC9AB77"><enum>(7)</enum><text>Require that 100 percent of all domestically manufactured automobiles be duel-fueled vehicles by 2017.</text> </paragraph>
<paragraph id="HFEA2CD4FE47E4AD48DBA2E92D248708D"><enum>(8)</enum><text>Increase the Federal fleet requirement to 100 percent duel-fueled or plug-in hybrid vehicles by 2008.</text> </paragraph>
<paragraph id="H622061C33590464C92491064E0592697"><enum>(9)</enum><text>Redevelop and enhance existing industrial facilities in areas of the country adversely impacted by manufacturing job losses.</text> </paragraph>
<paragraph id="HEF7A58560FE14FBDA1A3A2E75DEFFA8"><enum>(10)</enum><text>Promote rural economic development.</text> </paragraph></section>
<enum>II</enum><header>Efficiency</header>
<subtitle id="HB90442A6335C4DC98552C0E1D2790055"><enum>A</enum><header>Green buildings</header>
<section id="H667FBADC14AD4408BECB257417FC871"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Advanced Design in Energy for Living Efficiently Act of 2007</short-title></quote>.</text> </section>
<section id="HD387FFF313AD4407B0B665ACA8DC6109"><enum>202.</enum><header>Findings</header><text display-inline="no-display-inline">The Congress finds that—</text>
<paragraph id="HB5CB5E5EB2C4468D8962C5EB1D22B0CA"><enum>(1)</enum><text>green building design practices have a positive effect on the reduction of greenhouse gases, the health of the environment, increases in production of workers, and improved water supply for communities;</text> </paragraph>
<paragraph id="HFE2DCDAFC7EB4B4998E7997AA070065"><enum>(2)</enum><text display-inline="yes-display-inline">buildings account for 38 percent of carbon dioxide emissions per year;</text> </paragraph>
<paragraph id="HE83C78F579204F7AB2DB189BEC6626C7"><enum>(3)</enum><text>buildings consume approximately 40 percent of the energy and 70 percent of the electricity in the United States per year;</text> </paragraph>
<paragraph id="HD2151460C296449994445615CE1E9C24"><enum>(4)</enum><text>an up-front investment of 2 percent in green building design, on average, results in life cycle savings of 20 percent of the total operation costs of a building;</text> </paragraph>
<paragraph id="HEBF0F0EB234C4C59AC003571579E86DB"><enum>(5)</enum><text>case studies show examples of a 2 to 16 percent increase in productivity in buildings that incorporate green building design;</text> </paragraph>
<paragraph id="H6BA0195A4C404F400000C7B5222E4B6E"><enum>(6)</enum><text>students with the most daylight in their classrooms progressed 20 percent faster on mathematics tests and 26 percent faster on reading tests in one year than those with the least day lighting;</text> </paragraph>
<paragraph id="H11C6BF2A40004A9A80BF5CC8729614F"><enum>(7)</enum><text>the development of a research agenda for green building design must consider whole building performance, and such development should be founded on achievable and measurable performance goals;</text> </paragraph>
<paragraph id="HE91B37C3FFF14093A97298ED9FED9499"><enum>(8)</enum><text>the tools and knowledge are currently available to meet the goals of this Act; and</text> </paragraph>
<paragraph id="H80FC18D53F0D469BBBF2CB03C1DE1D43"><enum>(9)</enum><text>green building design is a national priority, and can reduce the long-term operating costs for individuals and enhance their ability to repay the mortgage.</text> </paragraph></section>
<section id="H5320BE28A4BD45E08D79EF8F85D0909B"><enum>203.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this Act—</text>
<paragraph id="H3AD458E8E102434885F7D4A7282E7D61"><enum>(1)</enum><text>the term <term>Administrator</term> means the Administrator of the Environmental Protection Agency;</text> </paragraph>
<paragraph id="HFF93B5C22B2044D5875B31E182A98624"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>green building</term> means a building that uses sustainable design principles to reduce the use of nonrenewable resources, minimize environmental impact, and relate people with the natural environment;</text> </paragraph>
<paragraph id="HFB784B66D5F24AE895F826FB554CEA95"><enum>(3)</enum><text>the term <term>institution of higher education</term> has the meaning given that term in section 101 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001</external-xref>); and</text> </paragraph>
<paragraph id="H8E005BD9F9B240C39383F98BECE8E7C2"><enum>(4)</enum><text>the term <term>State</term> means one of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or any other commonwealth, territory, or possession of the United States.</text> </paragraph></section>
<section id="H053340256FD24F97937BF77946309298"><enum>204.</enum><header>Coordinating agency</header>
<subsection id="H5F8409DA867A4C089FC3A43BAE7D8D95"><enum>(a)</enum><header>In general</header><text>The Administrator shall serve as the coordinating agency for Federal information on green building design and practices, including information regarding construction, use, and decommissioning of green buildings, and shall obtain from all Federal agencies any information relating thereto that is not protected from disclosure by law.</text> </subsection>
<subsection id="HE6BDEBD5651C4C12BF421C0620AF61B2"><enum>(b)</enum><header>Availability of information</header><text>The Administrator, in consultation with the National Institute of Building Sciences, shall make the information obtained under subsection (a) readily available to the building industry and consumers.</text> </subsection></section>
<section id="H319FDD0F22ED405C0075DD9B364ECBEC"><enum>205.</enum><header>Public education and training</header>
<subsection id="H9E04D0E3D8C143E480AF16FD194665B"><enum>(a)</enum><header>In general</header><text>The Administrator, in coordination with the National Institute of Building Sciences and in conjunction with private-sector building-related entities, shall establish a program to create and distribute informational materials to increase the knowledge of the general public about green building design principles.</text> </subsection>
<subsection id="H77E30D871E18427E922C19558D6243FF"><enum>(b)</enum><header>Green building training</header><text>Not later than 6 months after the date of enactment of this Act, the Administrator, working through a grant to the United States Green Building Council, shall provide for the establishment of criteria for appropriate education and training of architects, engineers, and developers in green building design and application.</text> </subsection></section>
<section id="H9E2AFE53034C4088B7B18577835D8552"><enum>206.</enum><header>Blue ribbon panel</header>
<subsection id="HB3C1A063F0D3492E839E6DC0006E025F"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The National Institute of Building Sciences shall establish a blue ribbon panel to provide independent advice and counsel to the Administrator on policy issues associated with the conservation of energy in residential, commercial, and Federal buildings, green building design systems, the health of the indoor environment, and reduction of water use and waste output.</text> </subsection>
<subsection id="H45E69A1013F345DA8FCA821F8BBE13C8"><enum>(b)</enum><header>Appointment</header><text display-inline="yes-display-inline">The blue ribbon panel shall be appointed by the Board of Directors of the National Institute of Building Sciences. Appointees shall represent all sectors that are knowledgeable about or affected by green buildings, including architects, professional engineers, government officials, representatives of consumer organizations, representatives of construction labor organizations, product manufacturers, builders, housing management experts, and experts in building standards, codes, research, testing, and fire safety.</text> </subsection>
<subsection id="HCFA597FA51524325B06F9317FD9E9FA3"><enum>(c)</enum><header>Report to Congress</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the blue ribbon panel shall report to Congress on the results of study to determine best practices for quantifying the information necessary to make informed property investment decisions, including with respect to buildings that meet carbon-neutral emission standards and use green building design practices.</text> </subsection></section>
<section id="H893064E0B1764ECB9ECD4F006100F449"><enum>207.</enum><header>Research and development report</header><text display-inline="no-display-inline">Not later than 6 months after the date of enactment of this Act, the National Institute of Building Sciences shall report to Congress on the estimated amount of funding necessary for research and development on green building design in the United States. Such report shall include recommendations on further policies needed to promote green building design.</text> </section>
<section id="H5E855C09B69245FDA918D8FE67B5FDE9"><enum>208.</enum><header>Greenhouse gas emission standards</header>
<subsection id="HCA8C5FD5299C45690000484BA2C07C22"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the National Institute of Building Sciences shall establish standards for the construction of new commercial and residential buildings that will reduce carbon emissions, compared to emissions from similar buildings in 2003, by—</text>
<paragraph id="H7DE40550262C410D9EA388B600AAC428"><enum>(1)</enum><text>40 percent by 2010; and</text> </paragraph>
<paragraph id="HFFE89EB9C9704564BC84058C1E437941"><enum>(2)</enum><text>70 percent by 2020.</text> </paragraph></subsection>
<subsection id="H5E3BC50DB8DD4635B284005FE97B30C7"><enum>(b)</enum><header>Compliance</header>
<paragraph id="HC394166CA3CB48B5A2C3495F4EFFF287"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Not later than 6 years after the date of enactment of this Act, each State shall demonstrate to the satisfaction of the Administrator that—</text>
<subparagraph id="HF170ED5088CF479783C55DB47B29F5CC"><enum>(A)</enum><text>such State (and all of the local jurisdictions within such State) has—</text>
<clause id="H8F29F1F3ABAC43EABDBA4C4C5F001F85"><enum>(i)</enum><text>adopted the standards established under subsection (a); and</text> </clause>
<clause id="HFFAFD32C6A26457E9FD8E3066BECB1F2"><enum>(ii)</enum><text>fully implemented such standards; or</text> </clause></subparagraph>
<subparagraph id="H0943CEBFA09D4987851CACFD49E075FD"><enum>(B)</enum><text display-inline="yes-display-inline">technical barriers exist that prevent such adoption and implementation.</text> </subparagraph></paragraph>
<paragraph id="H334D9A961F0F45B0B900F819E2149BFD"><enum>(2)</enum><header>Supporting information</header><text display-inline="yes-display-inline">In order to make a demonstration to the Administrator under paragraph (1), a State shall receive, and submit to the Administrator, reports from all local jurisdictions in the State on how many building permits were issued each year and how many of these permits met the standards established under subsection (a).</text> </paragraph></subsection></section>
<section display-inline="no-display-inline" id="H1F8F0E24C6D04D9BBF56ACB5027ED42F"><enum>209.</enum><header>Study of use of FHA energy efficient mortgage program</header>
<subsection id="HD28B9AE9829848C892DF17554E92FF5C"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller General of the United States shall conduct a study of the program of the Secretary of Housing and Urban Development for energy efficient mortgages insured under title II of the National Housing Act, established and operated pursuant to section 106 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/12712">42 U.S.C. 12712</external-xref> note) and expanded in 1995 pursuant to subsection (b) of such section, to determine—</text>
<paragraph id="H6B32574C74CC4F87A1FD8CB553CBB7A2"><enum>(1)</enum><text>the extent to which such program is utilized by mortgagors in the United States;</text> </paragraph>
<paragraph id="H5A61E4334B9D4542A228487B9B794BC9"><enum>(2)</enum><text display-inline="yes-display-inline">any impediments to wider or more efficient use of such program, including any such impediments relating to—</text>
<subparagraph id="HC4451B1D2C1142F8A57444CDB01E38D"><enum>(A)</enum><text>knowledge of or about the program; and</text> </subparagraph>
<subparagraph id="H662DDE3DA6384052882700B818F74009"><enum>(B)</enum><text>the terms, limitations, or operation of the program;</text> </subparagraph></paragraph>
<paragraph id="H902DA937A40C416A000000FA25BDD25C"><enum>(3)</enum><text>effective actions which may be taken to increase utilization of the program by mortgagors in the United States.</text> </paragraph></subsection>
<subsection id="H18803AA83C7C41C08435A91B07F294FA"><enum>(b)</enum><header>Report</header><text>Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit to the Congress a report describing the findings of the study pursuant to subsection (a) and setting forth recommendations for actions under subsection (a)(3).</text> </subsection></section>
<section display-inline="no-display-inline" id="HB0B013494BA1486190ACD15129C7C1D5" section-type="subsequent-section"><enum>210.</enum><header>Healthy, high-performance schools</header>
<subsection id="HAB96495FF2A840A4867C35A4E6DF67D"><enum>(a)</enum><header>Grant program authorized</header><text display-inline="yes-display-inline">The Administrator of the Environmental Protection Agency, acting through the National Institute of Building Sciences, in consultation with the Secretary of Energy and the Secretary of Education, is authorized to award grants to State educational agencies to permit such State educational agencies to carry out this section.</text> </subsection>
<subsection id="H7DD87EAD24C643638F9E5500606100AE"><enum>(b)</enum><header>Subgrants</header>
<paragraph id="H1AF89736BE7B43EDB498DC9715079ECC"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A State educational agency receiving a grant under this section shall use funds made available under the grant to award subgrants to local educational agencies to permit such local educational agencies to carry out the activities described in subsection (e).</text> </paragraph>
<paragraph id="HF7C02A7886194F529F5C1E827DE1C2B5"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">A State educational agency shall award subgrants under this subsection to local educational agencies that are the neediest, as determined by the State, and that have made a commitment to develop healthy, high-performance school buildings in accordance with the plan developed and approved under subsection (c)(1).</text> </paragraph></subsection>
<subsection id="H0435B0FB6F2442AEA33026061382DFD5"><enum>(c)</enum><header>Implementation</header>
<paragraph id="H115ACBC0F8C14F74ADE61B814DCCDAA"><enum>(1)</enum><header>Plans</header><text display-inline="yes-display-inline">A State educational agency shall award subgrants under this section only to local educational agencies that, in consultation with the State educational agency and State agencies with responsibilities relating to energy and health, have developed plans that the State educational agency determines to be feasible and appropriate in order to achieve the purposes for which the subgrants are made.</text> </paragraph>
<paragraph id="HB6C3458193C945138CF0DD1524D794D7"><enum>(2)</enum><header>Supplementing grant funds</header><text display-inline="yes-display-inline">The State educational agency shall encourage local educational agencies that receive subgrants under this section to supplement their subgrant funds with funds from other sources in order to implement their plans.</text> </paragraph></subsection>
<subsection id="H3E2DA417DA6E429BB7026E00831B70BA"><enum>(d)</enum><header>Administration</header><text display-inline="yes-display-inline">A State educational agency receiving a grant under this section shall use the grant funds made available under this section for one or more of the following:</text>
<paragraph id="HE656CBF23DC248DD9DEC3B02139D400"><enum>(1)</enum><text>To evaluate compliance by local educational agencies with the requirements of this section.</text> </paragraph>
<paragraph id="H042125CAD1B142E0B5A800CAB7A03459"><enum>(2)</enum><text>To distribute information and materials on healthy, high-performance school buildings for both new and existing facilities.</text> </paragraph>
<paragraph id="H0E7E1FBF537449C69B326494DF70E730"><enum>(3)</enum><text>To organize and conduct programs for school board members, school district personnel, and others to disseminate information on healthy, high-performance school buildings.</text> </paragraph>
<paragraph id="H7FF2E99900BF44EFA462B07317320026"><enum>(4)</enum><text>To provide technical services and assistance in planning and designing healthy, high-performance school buildings.</text> </paragraph>
<paragraph id="HC1DD9734F3584E318DEC7D452D62D417"><enum>(5)</enum><text>To collect and monitor information pertaining to healthy, high-performance school building projects.</text> </paragraph></subsection>
<subsection id="H0EEF90193AED430195164406EAC0777F"><enum>(e)</enum><header>Local uses of funds</header>
<paragraph id="H856FF444288748E1B96EC304E6BA878"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A local educational agency that receives a subgrant under this section shall use the subgrant funds to plan and prepare for healthy, high-performance school building projects that—</text>
<subparagraph id="HC1F6ACB9045643769B80491192F5B571"><enum>(A)</enum><text>reduce energy use to at least 30 percent below that of a school constructed in compliance with standards prescribed in chapter 8 of the 2000 International Energy Conservation Code, or a similar State code intended to achieve substantially equivalent results;</text> </subparagraph>
<subparagraph id="H11B7BE5FF7A243CA96B4CA3F6E5705A8"><enum>(B)</enum><text>meet Federal and State health and safety codes; and</text> </subparagraph>
<subparagraph id="H39D09CB7F49245C5A1F8FDC20604FF7C"><enum>(C)</enum><text>support healthful, energy efficient, and environmentally sound practices.</text> </subparagraph></paragraph>
<paragraph id="H4CEA8669DCE44208AA160253C11F84C4"><enum>(2)</enum><header>Use of funds</header><text>A local educational agency that receives a subgrant under this section shall use funds for one or more of the following:</text>
<subparagraph id="HADE261A455CF42238BE293D75516D4EE"><enum>(A)</enum><text>To develop a comprehensive energy audit of the energy consumption characteristics of a building and the need for additional energy conservation measures necessary to allow schools to meet the guidelines set out in paragraph (1).</text> </subparagraph>
<subparagraph id="H4F058DFB7DCD4C0F86CD588FE5E37330"><enum>(B)</enum><text>To produce a comprehensive analysis of building strategies, designs, materials, and equipment that—</text>
<clause id="H8BCD1921694C4C9B9DD8FB27D8596172"><enum>(i)</enum><text>are cost effective, produce greater energy efficiency, and enhance indoor air quality; and</text> </clause>
<clause id="H81FF182804BA4AD3B000D57658D85C3C"><enum>(ii)</enum><text>can be used when conducting school construction and renovation or purchasing materials and equipment.</text> </clause></subparagraph>
<subparagraph id="HA9936729DED144F5B4674173973E0072"><enum>(C)</enum><text>To obtain research and provide technical services and assistance in planning and designing healthy, high-performance school buildings, including developing a timeline for implementation of such plans.</text> </subparagraph></paragraph></subsection>
<subsection display-inline="no-display-inline" id="HB6CBA99113024748901B3758E7A3F871"><enum>(f)</enum><header>Information and assistance</header><text display-inline="yes-display-inline">The Administrator of the Environmental Protection Agency, acting through the National Institute of Building Sciences, shall provide information and assistance to local educational agencies on sustainable design. The information and assistance shall include—</text>
<paragraph id="H750DFC5E45A6443B905382DADC676E25"><enum>(1)</enum><text>information on how benefits of sustainable design can benefit life cycle costs to all school districts at no cost to school districts; and</text> </paragraph>
<paragraph id="H749F53CADC5B4509A7000305E694DE40"><enum>(2)</enum><text>assistance on how to create curriculum for environmental science classes to study local effects of sustainable design.</text> </paragraph></subsection>
<subsection id="H4274916B329C47B698816542AA3B8FE6"><enum>(g)</enum><header>Report to Congress</header><text display-inline="yes-display-inline">The Administrator shall conduct a biennial review of State actions implementing this section and carrying out the plans developed under this section through State and local funding, and shall submit a report to Congress on the results of such reviews.</text> </subsection>
<subsection id="H1C802B8CC4BB41E3BE84007FD354D736"><enum>(h)</enum><header>Limitations</header><text display-inline="yes-display-inline">No funds received under this section may be used for any of the following:</text>
<paragraph id="HD8B870003C394B5EAC6C812903F27910"><enum>(1)</enum><text>Payment of maintenance of costs in connection with any projects constructed in whole or in part with Federal funds provided under this section.</text> </paragraph>
<paragraph id="H6EBB5792003C4BE9B0DD813580D42B31"><enum>(2)</enum><text>Construction, renovation, or repair of school facilities.</text> </paragraph>
<paragraph id="H29E6908ECE9544D8B20793E2E7D752D6"><enum>(3)</enum><text>Construction, renovation, repair, or acquisition of a stadium or other facility primarily used for athletic contests or exhibitions, or other events for which admission is charged to the general public.</text> </paragraph></subsection>
<subsection id="H89F5DD98026A4A43AE3C2C3B55281F75"><enum>(i)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="H75DC59F9362C43D38388BA9D29812194"><enum>(1)</enum><text>The term <term>healthy, high-performance school building</term> means a school building in which the design, construction, operation, and maintenance—</text>
<subparagraph id="HB0D3C16254B748D2B4F613A2E5ACBA4D"><enum>(A)</enum><text>use energy-efficient and affordable practices and materials;</text> </subparagraph>
<subparagraph id="H00AC12C66AAF460CA6C8772E005E76DA"><enum>(B)</enum><text>are cost-effective;</text> </subparagraph>
<subparagraph id="H39AE809AED3C4B9599E706BD62812C74"><enum>(C)</enum><text>enhance indoor air quality; and</text> </subparagraph>
<subparagraph id="H704C09396CCA4143BEABD540FC4B7278"><enum>(D)</enum><text>protect and conserve water.</text> </subparagraph></paragraph>
<paragraph id="H1315AD9B2D2F46FFA60433D37BC3BB5"><enum>(2)</enum><text>The terms <term>local educational agency</term> and <term>State educational agency</term> have the meaning given those terms in section 9101 of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C. 7801</external-xref>).</text> </paragraph></subsection>
<subsection id="H22F2BE5BAD3E4AAAAA1CBF913728EEC7"><enum>(j)</enum><header>Conforming repeal</header><text display-inline="yes-display-inline">Subpart 18 (<external-xref legal-doc="usc" parsable-cite="usc/20/7277">20 U.S.C. 7277 et seq.</external-xref>) of part D of title V of the Elementary and Secondary Education Act of 1965 is repealed.</text> </subsection></section>
<section id="HC2A5FE1B76FB4756B500C3A0BD907402"><enum>211.</enum><header>Loan guarantees for public institutions of higher education</header>
<subsection id="H4A5A09647FAF41678D7B784B00F72640"><enum>(a)</enum><header>Program</header><text>The Administrator shall establish a program to make loan guarantees available to public institutions of higher education in a State for the construction or renovation of permanent buildings that meet the standards established under section 8(a).</text> </subsection>
<subsection id="H16588B711C84456FA7BD57A2A73EC1FF"><enum>(b)</enum><header>Qualifications</header><text>The Administrator shall establish the qualifications necessary for an institution to be eligible for a loan guarantee under this section, including qualifications to protect the financial interests of the Federal Government.</text> </subsection>
<subsection id="H56B94593994C4E479BA62EEF16BD6BA7"><enum>(c)</enum><header>Approval</header><text>The Administrator shall approve or disapprove an application for a loan guarantee under this section not later than 30 days after receiving a completed application.</text> </subsection>
<subsection id="H3B83BE97B09F488BA36ECFDC5135CBD0"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Administrator such sums as may be necessary to carry out this section.</text> </subsection></section>
<section id="HF242712863E04F64A728F3ED70799BAE"><enum>212.</enum><header>Accountability of Federal agencies</header>
<subsection id="HF56DEF67E35E4891B47895EF8781394C"><enum>(a)</enum><header>Agency actions</header><text>Each Federal agency shall—</text>
<paragraph id="H6C2B912AA7FC464EAA5B803E642D4338"><enum>(1)</enum><text>increase the energy efficiency of its facilities and operations;</text> </paragraph>
<paragraph id="HB7E864FCBD2A49879FC154FAE4D7E62"><enum>(2)</enum><text>annually transmit to the President and the Congress a report on the energy efficiency increases and carbon emission reductions associated with its facilities and operation; and</text> </paragraph>
<paragraph id="H6E03E8A50A3B47D9B482C1D2ED668602"><enum>(3)</enum><text>reward agency employees who make significant contributions to the reduction of agency carbon emissions.</text> </paragraph></subsection>
<subsection id="HBF6A14C0689F416A9125FA4200F5502B"><enum>(b)</enum><header>Energy manager training</header><text>The energy manager, designated under section 304 of Executive Order No. 13123, of each Federal agency shall be required to receive training approved by the Administrator on green building design, construction, use, and decommissioning, and to receive an annual refresher course approved by the Administrator on those subjects.</text> </subsection>
<subsection id="HB0488547B90D48C3A0F049336CCD4B83"><enum>(c)</enum><header>Energy efficiency budget report</header><text>Not later than 6 months after the date of enactment of this Act, the Comptroller General shall transmit to the Congress a report comparing the energy efficiency budget request by the President for each Federal agency for fiscal years 2006 and 2007 with the requests from the agency to the President for energy efficiency budget amounts for those fiscal years.</text> </subsection></section>
<section id="H963A01888CB64FE8958CEE71A609C256"><enum>213.</enum><header>State and local government block grants</header>
<subsection id="H3FAFDB07DF3C4477AB83FA280602FC9"><enum>(a)</enum><header>In general</header><text>The Administrator shall make block grants to State and local governments. Such grants may be used for—</text>
<paragraph id="HD51B6476BE32462D937D00E929A5CCA"><enum>(1)</enum><text>the renovation of existing buildings to achieve the standards established by the National Institute of Building Sciences under section 8(a);</text> </paragraph>
<paragraph id="H322F90A015524E04B517775ED63843AD"><enum>(2)</enum><text>redesigning existing plans for new buildings to enable those plans to meet such standards;</text> </paragraph>
<paragraph id="H49C3D48FAA4A45789CC5EB262E42588"><enum>(3)</enum><text>research and development of technologies to enable and support green building design and the achievement of such standards; and</text> </paragraph>
<paragraph id="H090BB9C2F37B4EDA9EBDCFB6A02CB9C6"><enum>(4)</enum><text>public education and training, including training for homeowners, business owners, first time home buyers, and contractors, on green buildings and their construction, use, and decommissioning.</text> </paragraph></subsection>
<subsection id="H441A521DBB6B4105B4F920CC88EAED00"><enum>(b)</enum><header>Mandatory use</header><text>All block grants received under this section shall be used, at least in part, for the purpose described in subsection (a)(4).</text> </subsection>
<subsection id="HCD5526AE0A82432DA34FDE5F38AE2D47"><enum>(c)</enum><header>Eligibility</header><text>No State or local government may receive a block grant under this section unless it demonstrates to the satisfaction of the Administrator that—</text>
<paragraph id="H34ECFE4B0089467100C9AAD91BB130CA"><enum>(1)</enum><text>the State or local government (and in the case of a State, all the local jurisdictions within the State) has—</text>
<subparagraph id="H0C89CA00C6E7424C8DBD5C00A3F2F26"><enum>(A)</enum><text>adopted the standards established under section 8(a); and</text> </subparagraph>
<subparagraph id="HFC487AD9D8EC40088D4D7285E8353624"><enum>(B)</enum><text>fully implemented such standards; or</text> </subparagraph></paragraph>
<paragraph id="H4A5D1F9BF8294680ABAB255C3A43B79"><enum>(2)</enum><text>technical barriers exist that prevent such adoption and implementation.</text> </paragraph></subsection>
<subsection id="HC8335CDE48D4499DA65B4066F55D2181"><enum>(d)</enum><header>Research and development coordination</header><text>The Administrator shall monitor activities described in subsection (a)(3) to prevent unnecessary duplication of research and development efforts.</text> </subsection>
<subsection id="H9D18305E7DAC4CAAA9BC29C9646C6C3C"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Administrator for making grants under this section $1,000,000,000 for the period encompassing fiscal years 2009 through 2018.</text> </subsection></section>
<section id="HA9F97F31588D43B9B0FEFA53ED68232C"><enum>214.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Administrator for carrying out this Act, other than sections 11 and 13 $50,000,000 for each of the fiscal years 2009 through 2013.</text> </section>
<section display-inline="no-display-inline" id="H14F1C248B2AE4B9B81F3F8B098B82087" section-type="subsequent-section"><enum>215.</enum><header>Increase and extension of energy efficient commercial buildings deduction</header>
<subsection id="HFA0EDD6EC47E42369039CEEC19FC2D1F"><enum>(a)</enum><header>Increase</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref> of the Internal Revenue Code of 1986 (relating to energy efficient commercial buildings deduction) is amended—</text>
<paragraph id="H351D0420B9DA4D25A88E5157D979F44"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(1)(A) by striking <quote>$1.80</quote> and inserting <quote>$2.25</quote>, and</text> </paragraph>
<paragraph id="H931A22165CB74A4084054B43C6A64B81"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d)(1)(A) by striking <quote>by substituting</quote> and all that follows through the period at the end and inserting <quote>by substituting <quote>$.75</quote> for <quote>$2.25</quote>.</quote>.</text> </paragraph></subsection>
<subsection id="H78F788EF1C7E42F38C633C7BA232B575"><enum>(b)</enum><header>Extension</header><text display-inline="yes-display-inline">Subsection (h) of section 179D of such Code (relating to termination) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2013</quote>.</text> </subsection>
<subsection id="H57133B5B6CFB43588326005FA3FEC3AC"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section></subtitle>
<subtitle id="H77F06595429248FDBEBD60989FD4F2E3"><enum>B</enum><header>Consumer assistance</header>
<section display-inline="no-display-inline" id="H7F8FA29D387744D39EE5DEB0019725C"><enum>221.</enum><header>Appliance standards</header>
<subsection id="H37623C2B4D8F4FDF97534DBF84A5E290"><enum>(a)</enum><header>Consumer appliance requirement</header><text>Section 325 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295</external-xref>) is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H53CA5110FBA9444B9CEF2F04BFA2B284" style="OLC">
<subsection id="H8B40E43B295541E19302B20021F1C935"><enum>(ii)</enum><header>Standby mode</header>
<paragraph id="H0A4F16605A4348A98D127061C4A35490"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), any final rule adopted after July 1, 2012, to set a new or revised energy efficiency standard for a covered product shall specify that a covered product manufactured on or after the effective date of such new or revised standard shall, when in standby mode, operate with not more than 1 watt of electric power.</text> </paragraph>
<paragraph id="H77500E43FFBF43D4AD4347E65CFA6E3F"><enum>(2)</enum><header>Exceptions</header>
<subparagraph id="HCA47A47FBA3642F191F3C00BD8D671B"><enum>(A)</enum><header>Extensions</header><text display-inline="yes-display-inline">The Secretary may provide a single extension of up to 2 years for compliance with paragraph (1) with respect to a covered product if the Secretary finds that such extension is appropriate.</text> </subparagraph>
<subparagraph id="HB3F90BB4D76349269598EE4C1279F846"><enum>(B)</enum><header>Exemptions</header><text>The Secretary may provide an exemption from the requirement under paragraph (1) for a covered product, after public notice and opportunity for comment, if the Secretary finds that—</text>
<clause id="H68DF7777D91D490E930035DB2EA75E56"><enum>(i)</enum><text display-inline="yes-display-inline">achieving the requirement is not technologically feasible and economically justified for that covered product; or</text> </clause>
<clause id="H6CBDFD960CC4465EA6F660442E2B7566"><enum>(ii)</enum><text>such an exemption is warranted for medical or military reasons.</text> </clause><continuation-text continuation-text-level="subparagraph">Any exemption provided under this subparagraph shall be reviewed at least once every 5 years.</continuation-text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H2E98A1D6B60C4560AA8D82B417CF34F9"><enum>(b)</enum><header>Consumer appliance test procedures</header><text>Section 323(b) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6293">42 U.S.C. 6293(b)</external-xref>) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H307FE6C5FE6F44BBBC6B2B40C782D306" style="OLC">
<paragraph id="HB1BC9CFFBC9B4325A77044305BB7BFA1" indent="up1"><enum>(17)</enum><text display-inline="yes-display-inline">Not later than July 1, 2009, the Secretary shall issue a final rule establishing test procedures for standby power consumption for all covered products, except for products for which the current test procedure already measures standby power consumption.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection display-inline="no-display-inline" id="HC47B0E878B664686862CBD9A79B3F00"><enum>(c)</enum><header>Repeal</header>
<paragraph id="H03E269182EFF4D25B001BFEF379B13C"><enum>(1)</enum><header>In general</header><text>Section 325(u) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(u)</external-xref>) is amended—</text>
<subparagraph id="H418F9BA6731F47179DB0ADD938763F29"><enum>(A)</enum><text>by striking paragraph (2); and</text> </subparagraph>
<subparagraph id="H448AF409D301488A8EB74E5C81A5DA45"><enum>(B)</enum><text>by redesignating paragraphs (3) through (5) as paragraphs (2) through (4), respectively.</text> </subparagraph></paragraph>
<paragraph id="HFE97785D2FF64E809D5F40E100792D04"><enum>(2)</enum><header>Effective date</header><text>The amendments made by paragraph (1) shall take effect on the date described in section 325(ii)(I) of the Energy Policy and Conservation Act as, added by subsection (a) of this section.</text> </paragraph></subsection>
<subsection display-inline="no-display-inline" id="HEFF2CAB7444C4811A3B21D17F4D69CB"><enum>(d)</enum><header>Industrial equipment requirement</header><text>Section 342 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6313">42 U.S.C. 6313</external-xref>) is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HDB8F297C9F254B3DBDBA9330F7E48241" style="OLC">
<subsection id="H470BB3EFC4C044FB9BA0ABA9DAA3157D"><enum>(f)</enum><header>Standby power</header>
<paragraph id="H81BF9AC9552E4A4D81EB469DD575717E"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), any final rule adopted after July 1, 2012, to set a new or revised energy efficiency standard for covered equipment shall specify that covered equipment manufactured on or after the effective date of such new or revised standard shall, when in standby mode, operate with not more than 1 watt of electric power.</text> </paragraph>
<paragraph id="H4B8AFBDB84D04EBE97227B8ED8CC3466"><enum>(2)</enum><header>Exceptions</header>
<subparagraph id="H97C7BDACDE684A6196DD8DD4DBAA2BF"><enum>(A)</enum><header>Extensions</header><text>The Secretary may provide a single extension of up to 5 years for compliance with paragraph (1) with respect to a covered equipment if the Secretary finds that such extension is appropriate.</text> </subparagraph>
<subparagraph id="H684B745F213C4B019F86CBC1DDB84324"><enum>(B)</enum><header>Exemptions</header><text display-inline="yes-display-inline">The Secretary may provide an exemption from the requirement under paragraph (1) for covered equipment, after public notice and opportunity for comment, if the Secretary finds that—</text>
<clause id="H89FBAF8EDCAA474F95A464E929E40805"><enum>(i)</enum><text display-inline="yes-display-inline">achieving the requirement is not technologically feasible and economically justified for that covered equipment; or</text> </clause>
<clause id="HF908C5FEA5D248329D504214FF160371"><enum>(ii)</enum><text>such an exemption is warranted for medical or military reasons.</text> </clause><continuation-text continuation-text-level="subparagraph">Any exemption provided under this subparagraph shall be reviewed at least once every 5 years.</continuation-text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H672C832FA5AF474FB0033DBA943EFB9E"><enum>(e)</enum><header>Industrial equipment test procedures</header><text display-inline="yes-display-inline">Section 343(a) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6314">42 U.S.C. 6314(a)</external-xref>) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB7866F48F75A4DC5B3DF201EFFFED582" style="OLC">
<paragraph id="H7FEB5A0E8EE44F669882839D39F03143" indent="up1"><enum>(9)</enum><text>Not later than July 1, 2009, the Secretary shall issue a final rule establishing test procedures for standby power consumption for all covered equipment, except for equipment for which the current test procedure already measures standby power consumption.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section id="H2EA4C55656B7467183AAA70775E90986"><enum>222.</enum><header>Energy Star certification for solar water heaters and tankless water heaters</header><text display-inline="no-display-inline">Not later than January 1, 2009, 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 and tankless water heating devices.</text> </section></subtitle>
<subtitle id="HD79F516653C24EF486C6D8696ED0AC37"><enum>C</enum><header>Tax provision</header>
<section id="HCDAAAFC4DB58470289952D1D128624E1"><enum>231.</enum><header>Energy credit for combined heat and power system property</header>
<subsection id="HD5A7E8E7968045719C243EE8D03D833"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)</external-xref> of the Internal Revenue Code of 1986 (defining energy property) is by striking <quote>or</quote> at the end of clause (iii), by inserting <quote>or</quote> at the end of clause (iv), and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H397188A5B898498084FB21A5FA8F80B4" style="OLC">
<clause id="H886A8672E8D14363AB70130031A2137D"><enum>(v)</enum><text>combined heat and power system property,</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HAA0A8A2D1C5B4DAA9D758267D2D31F4F"><enum>(b)</enum><header>Combined Heat and Power System Property</header><text>Section 48 of such Code (relating to energy credit) is amended by adding at the end the following new subsection:</text>
<quoted-block id="H900625DCA34B4B0B0032E968F707D29" style="OLC">
<subsection id="HF6F4D57523134C69965427C45854F247"><enum>(d)</enum><header>Combined Heat and Power System Property</header><text>For purposes of subsection (a)—</text>
<paragraph id="HFBE0BCE8247C4649B843F136ED07FCCA"><enum>(1)</enum><header>Combined heat and power system property</header><text>The term <term>combined heat and power system property</term> means property comprising a system—</text>
<subparagraph id="HA7AE5E4A09DB425CBCC2E5577D758C44"><enum>(A)</enum><text>which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),</text> </subparagraph>
<subparagraph id="HDA0E68EF4D084770BE9D095F4E04E687"><enum>(B)</enum><text>which has an electrical capacity of not more than 50 megawatts or a mechanical energy capacity of not more than 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities,</text> </subparagraph>
<subparagraph id="H0A538991E4F34A55A318326166E4607C"><enum>(C)</enum><text>which produces—</text>
<clause id="H702C0A216A644BFD9D4499866C9472F7"><enum>(i)</enum><text>at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and</text> </clause>
<clause id="H55E8CC071B5444849C0067166BA54341"><enum>(ii)</enum><text>at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),</text> </clause></subparagraph>
<subparagraph id="HF4197A1AB69F4100856F406F9E2F9421"><enum>(D)</enum><text>the energy efficiency percentage of which exceeds 60 percent, and</text> </subparagraph>
<subparagraph id="H28F1E5E4464B42D300007650594E5EBC"><enum>(E)</enum><text>which is placed in service before January 1, 2011.</text> </subparagraph></paragraph>
<paragraph id="H1244755CC5334C79BD32B73D06F541"><enum>(2)</enum><header>Special rules</header>
<subparagraph id="H9442050B0FA7421289E3CC5084EC2A3"><enum>(A)</enum><header>Energy efficiency percentage</header><text>For purposes of this subsection, the energy efficiency percentage of a system is the fraction—</text>
<clause id="H7B45837843F54A3CA235845197E1C4B3"><enum>(i)</enum><text>the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, and</text> </clause>
<clause id="HDBC11FB1FB3A45198871B960B492AB2F"><enum>(ii)</enum><text>the denominator of which is the higher heating value of the primary fuel sources for the system.</text> </clause></subparagraph>
<subparagraph id="H1AB1268905464A419DC7ADC734299906"><enum>(B)</enum><header>Determinations made on btu basis</header><text>The energy efficiency percentage and the percentages under paragraph (1)(C) shall be determined on a Btu basis.</text> </subparagraph>
<subparagraph id="H1059862D4562447C008BFE7DBD4E3674"><enum>(C)</enum><header>Input and output property not included</header><text>The term <term>combined heat and power system property</term> does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.</text> </subparagraph>
<subparagraph id="H95B0E94F7AFD4E288E11552F2C03472C"><enum>(D)</enum><header>Certain exception not to apply</header><text>The first sentence of the matter in subsection (a)(3) which follows subparagraph (D) thereof shall not apply to combined heat and power system property.</text> </subparagraph></paragraph>
<paragraph id="H8F32AB0573414DF98C1B21DA6D7D38FD"><enum>(3)</enum><header>Systems using bagasse</header><text>If a system is designed to use bagasse for at least 90 percent of the energy source—</text>
<subparagraph id="H724D3CE493EF4390A4546D3B8B405146"><enum>(A)</enum><text>paragraph (1)(D) shall not apply, but</text> </subparagraph>
<subparagraph id="H139A411360BA4168B5EC074246801244"><enum>(B)</enum><text>the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this subparagraph) as the energy efficiency percentage of such system bears to 60 percent.</text> </subparagraph></paragraph>
<paragraph id="H1434AA271188435D008DADF259982168"><enum>(4)</enum><header>Nonapplication of certain rules</header><text>For purposes of determining if the term <term>combined heat and power system property</term> includes technologies which generate electricity or mechanical power using back-pressure steam turbines in place of existing pressure-reducing valves or which make use of waste heat from industrial processes such as by using organic rankine, stirling, or kalina heat engine systems, paragraph (1) shall be applied without regard to subparagraphs (C) and (D) thereof .</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H5B7D35BDBC744ACDB40052D2BFD67BF"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to periods after December 31, 2007, in taxable years ending after such date, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text> </subsection></section></subtitle>
<enum>III</enum><header>Transportation sector</header>
<section id="H4C5C04F6F4B845ACB228C600CA80A535"><enum>301.</enum><header>Performance goals</header><text display-inline="no-display-inline">Congress finds this title will:</text>
<paragraph id="H12F34AD9013440BA82152C11147DBE90"><enum>(1)</enum><text>Reduce greenhouse gas emissions from the use of motor vehicles by 22 percent below currently projected levels.</text> </paragraph>
<paragraph id="H980C03F539264FFAA8A4D29CE49F387D"><enum>(2)</enum><text>Prevent 662 million metric tons of carbon dioxide from being produced, which is the equivalent of taking 96 million of today’s automobiles off the road in one year.</text> </paragraph>
<paragraph id="H9F1957E7C1C647DAB8EC3C41C9C545ED"><enum>(3)</enum><text>Reduce United States oil consumption by 3.6 million barrels of oil per day.</text> </paragraph></section>
<subtitle id="H4F8724B94622470996A03E2D4CF06EEE"><enum>A</enum><header>Plug-in hybrid electric vehicles</header>
<section id="HA961742EE62E498EBE9092B7B7668653" section-type="subsequent-section"><enum>311.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>Get Real Incentives to Drive Plug-in Act</short-title></quote>.</text> </section>
<section id="H744C14C27934415A97E914708815B04" section-type="subsequent-section"><enum>312.</enum><header>Definition</header><text display-inline="no-display-inline">For purposes of this subtitle, the term <term>plug-in hybrid electric vehicle</term> means an on-road or nonroad vehicle that is propelled by an internal combustion engine or heat engine using—</text>
<paragraph id="HD6A24F6E95A542A19BE5C388235DFD87"><enum>(1)</enum><text>any combustible fuel;</text> </paragraph>
<paragraph id="H6A0538837A114F4EBA751505AB83A747"><enum>(2)</enum><text>an on-board, rechargeable storage device;</text> </paragraph>
<paragraph id="HED9AAD2ABAB34632A1957E31240765C5"><enum>(3)</enum><text>a means of using an off-board source of electricity; and</text> </paragraph>
<paragraph id="H44333ADA749C47C7960036D02D926842"><enum>(4)</enum><text>fuel cell technology.</text> </paragraph></section>
<section id="HD8A720B048F64D4CB9D7231C5669B600" section-type="subsequent-section"><enum>313.</enum><header>Research and development grants</header>
<subsection id="HD83813ABD7C2470AB3962F9FB223B616"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Transportation shall establish a program to make grants to owners of domestic motor vehicle manufacturing or production facilities for research, development, and demonstration on plug-in hybrid electric vehicles.</text> </subsection>
<subsection id="H3CAA107F18AE4FC1BF991EFC084722C"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Transportation for carrying out this section $500,000,000 for the period encompassing fiscal years 2008 through 2012.</text> </subsection></section>
<section id="H225A841905B446FEA89B0000981B99B7"><enum>314.</enum><header>Pilot project</header><text display-inline="no-display-inline">The Secretary of Transportation shall establish a pilot project to determine how best to integrate plug-in hybrid electric vehicles into the electric power grid and into the overall transportation infrastructure.</text> </section>
<section id="HBD994946D60549FFBED00DBD94136A9"><enum>315.</enum><header>Test site</header><text display-inline="no-display-inline">The Secretary of Transportation shall establish a test site for the advancement of battery technologies for plug-in hybrid electric vehicles, to be modeled after the Department of Transportation’s NHTSA Vehicle Research and Test Center in Ohio.</text> </section>
<section id="H4E05966B7F88464899A535F007DF8F8"><enum>316.</enum><header>Plan</header><text display-inline="no-display-inline">Not later than 2 years after the date of enactment of this subtitle, the Secretary of Transportation, in collaboration with the Secretary of Energy, shall transmit to Congress a plan for the introduction and implementation of a plug-in hybrid electric vehicle support infrastructure.</text> </section>
<section display-inline="no-display-inline" id="H402F1FE9B7AC4A4C91856B816866EF65" section-type="subsequent-section"><enum>317.</enum><header>Plug-in hybrid motor vehicle tax credit</header>
<subsection id="H83F98725037D404FAC11E51F6D09AE88"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection:</text>
<quoted-block id="H75C5F8E168D04021B14D885307B2669C" style="OLC">
<subsection id="HA76D00D4ABBC4E4C88E2A7BEB87E4D00"><enum>(i)</enum><header>New Plug-In Hybrid Motor Vehicle Credit</header>
<paragraph id="HA4147DC78F0B4A50AF11E352C0B3F900"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the new plug-in hybrid motor vehicle credit determined under this subsection with respect to a new qualified plug-in hybrid motor vehicle placed in service by the taxpayer during the taxable year is $2,500, if such vehicle is a new qualified plug-in hybrid motor vehicle with a gross vehicle weight rating of not more than 8,500 pounds.</text> </paragraph>
<paragraph commented="no" id="H985343A4B72541ADA66BCBC8EA78111C"><enum>(2)</enum><header>Increase for additional kilowatt hours</header><text>The amount determined under paragraph (1) shall be increased by $500 for each whole number of kilowatt hours by which the storage capacity of the on-board, rechargeable electricity storage device used by such vehicle exceeds 2.5 kilowatt hours, but does not exceed 49.5 kilowatt hours.</text> </paragraph>
<paragraph id="H94D680B638384DE598072B52A96D7C51"><enum>(3)</enum><header>New qualified plug-in hybrid motor vehicle</header><text>For purposes of this subsection, the term <term>new qualified plug-in hybrid motor vehicle</term> means a motor vehicle—</text>
<subparagraph id="H269A2AF1D1334DBAB4C8D72BD61BB1A"><enum>(A)</enum><text>which is propelled by an internal combustion engine or heat engine using—</text>
<clause id="H3FB2F0D9401B4BADB3463532AC4DA7D9"><enum>(i)</enum><text>any combustible fuel,</text> </clause>
<clause id="HF193A8EB950841288536E89B2479435E"><enum>(ii)</enum><text>an on-board, rechargeable storage device with a storage capacity of at least 2.5 kilowatt hours, and</text> </clause>
<clause id="HCFC528A3F4C24D59AC5701ADCF004BD"><enum>(iii)</enum><text>a means of using an off-board source of electricity,</text> </clause></subparagraph>
<subparagraph id="H80074D012EB1424085ED9582483B1FB1"><enum>(B)</enum><text>which, in the case of a passenger automobile or light truck, has received on or after the date of the enactment of this section a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle,</text> </subparagraph>
<subparagraph id="H9DCDAA8A49DF43FAAB25A99724A68CBC"><enum>(C)</enum><text>the original use of which commences with the taxpayer,</text> </subparagraph>
<subparagraph id="H2E959181B5CE4AA7A6A658901048B948"><enum>(D)</enum><text>which is acquired for use or lease by the taxpayer and not for resale, and</text> </subparagraph>
<subparagraph id="HA8242778793646FF93A01D545432DBA1"><enum>(E)</enum><text>which is made by a manufacturer.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HD3F8E45F63B84B5B00BB1F680833AA5E"><enum>(b)</enum><header>Conforming Amendments</header>
<paragraph id="H56E8462BA86A41D2A100C869A5D9E677"><enum>(1)</enum><text>Section 30B(a) of such Code is amended by striking <quote>and</quote> at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block id="H3BD0D1BFD6604448A05406D16932028" style="OLC">
<paragraph id="H556CDCE2432B4D5BB04F8C01F4E1C467"><enum>(5)</enum><text>the new plug-in hybrid motor vehicle credit determined under subsection (i).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H9BF404A97AFD49C7A029A13340B99E8C"><enum>(2)</enum><text>Section 30B(k)(2) of such Code, as redesignated by subsection (a), is amended—</text>
<subparagraph id="H5062A77A0641439D89C05D3EF8E5F4EF"><enum>(A)</enum><text>by striking <quote>or</quote> and inserting a comma, and</text> </subparagraph>
<subparagraph id="H86F0364C42C94AE7993271AF87A8A118"><enum>(B)</enum><text>by inserting <quote>, or a new qualified plug-in hybrid motor vehicle (as described in subsection (i)(3))</quote> after <quote>subsection (d)(2)(A))</quote>.</text> </subparagraph></paragraph></subsection>
<subsection id="H1C73C2B3119F49238CDE9CC259FDA1DC"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section></subtitle>
<subtitle id="HF114A116A04A4A7EBABB3CA5A86BF429"><enum>B</enum><header>Increase ridership of public transportation</header>
<section commented="no" id="H89AF164D53BC4D1FB83D40225F4D6E8D"><enum>321.</enum><header>Increased uniform dollar limitation for all types of transportation fringe benefits</header>
<subsection commented="no" id="H8ADC0D26367F4BCA8B8B83C196E3FD15"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/132">Section 132(f)(2)</external-xref> of the Internal Revenue Code of 1986 (relating to limitation on exclusion) is amended—</text>
<paragraph commented="no" id="HF0E3038112334B7AA0519FADB62C8F9"><enum>(1)</enum><text>by striking <quote>$100</quote> in subparagraph (A) and inserting <quote>$200</quote>, and</text> </paragraph>
<paragraph commented="no" id="H71C21B29F71A4EBDB5C3CA2139F9E7C3"><enum>(2)</enum><text>by striking <quote>$175</quote> in subparagraph (B) and inserting <quote>$200</quote>.</text> </paragraph></subsection>
<subsection commented="no" id="H0DF0881F8E10485B8C3B79555B44519E"><enum>(b)</enum><header>Inflation adjustment conforming amendments</header><text>Subparagraph (A) of section 132(f)(6) of such Code (relating to inflation adjustment) is amended—</text>
<paragraph commented="no" id="H986C6E3DF0A845B6BF44BC01A229271E"><enum>(1)</enum><text>by striking the last sentence,</text> </paragraph>
<paragraph commented="no" id="H26CBE4BC5B2B4C43BBA814E745668C48"><enum>(2)</enum><text>by striking <quote>1999</quote> and inserting <quote>2008</quote>, and</text> </paragraph>
<paragraph commented="no" id="H04526C2AF39F45FEA13042083EF28077"><enum>(3)</enum><text>by striking <quote>1998</quote> and inserting <quote>2007</quote>.</text> </paragraph></subsection>
<subsection commented="no" id="H9964FEC4378F4CA6BEBBC05D3B6EED14"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after December 31, 2006.</text> </subsection></section>
<section commented="no" id="H225B80097CA54E90BA8BAF79C73E4265"><enum>322.</enum><header>Credit for employer costs of providing certain mass transportation fringe benefits to their employees</header>
<subsection commented="no" id="HBA36B59B19D14236B14CC9C2D957F311"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HE08E6D3C2608428BB9F901069CA42B56" style="OLC">
<section commented="no" id="H06554E5C0B70488EB8C13903007BD1C"><enum>45O.</enum><header>Credit for employer costs of providing certain mass transportation fringe benefits to their employees</header>
<subsection commented="no" id="HD1BC191DBD4A4AD78C3FFFB00184E56"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 38, the mass transportation fringe credit is an amount equal to 25 percent of the cost paid or incurred by an employer during the taxable year for providing any qualified transportation fringe described in subparagraph (A) or (B) of section 132(f)(1) to employees of such employer.</text> </subsection>
<subsection commented="no" id="H18F18E6A554F4B5EA637FA5B04B7FFA6"><enum>(b)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of the credit under subsection (a) for a month may not exceed the dollar amount per month to which the amount of the fringe benefits are limited under subparagraph (A) of section 132(f)(2).</text> </subsection>
<subsection commented="no" id="HC958058A6223427A8B99D690587B3274"><enum>(c)</enum><header>Election To have credit not apply</header><text display-inline="yes-display-inline">A taxpayer may elect to have this section not apply for any taxable year.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" id="HB589587FF4E44049B58DD551DDC979F4"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph commented="no" id="HBFF339C9C1A24EDCA68E64DBD1FC0901"><enum>(1)</enum><header>Credit to be part of general business credit</header><text display-inline="yes-display-inline">Subsection (b) of section 38 of such Code (relating to current year business credit) is amended by striking <quote>plus</quote> at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4CAF00DAE3884C15B8CF45A484DB39D2" style="OLC">
<paragraph commented="no" id="H33E4FFCE9FBC4CD8006900A4CDC069AF"><enum>(32)</enum><text display-inline="yes-display-inline">the mass transportation fringe credit determined under section 45O(a).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph commented="no" id="HA6097F0AABAF4A19BDBAF8D7DC78DA89"><enum>(2)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H099949E32E57476393D9577993C94599" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">45O. Credit for employer costs of providing certain mass transportation fringe benefits to their employees.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection commented="no" id="H06354DBB619C42899D3106CDA0245BB6"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2007.</text> </subsection></section>
<section commented="no" display-inline="no-display-inline" id="H7C0A6E0F51B4441E86A8AA7E16ADEBDC"><enum>323.</enum><header>Clarification of Federal employee benefits</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/5/7905">Section 7905</external-xref> of title 5, United States Code, is amended—</text>
<paragraph commented="no" id="H15AF0C800D344F8CB03599B99301B925"><enum>(1)</enum><text>in subsection (a)—</text>
<subparagraph commented="no" id="H325688B12CE845C99216C158A2FF5358"><enum>(A)</enum><text>in paragraph (2)(C) by inserting <quote>and</quote> after the semicolon;</text> </subparagraph>
<subparagraph commented="no" id="H67CDD6ED1ED34C32B7D200203DDCAE45"><enum>(B)</enum><text>in paragraph (3) by striking <quote>; and</quote> and inserting a period; and</text> </subparagraph>
<subparagraph commented="no" id="HAFE7B4C0BD294DA98BD5B5E1C00C178"><enum>(C)</enum><text>by striking paragraph (4); and</text> </subparagraph></paragraph>
<paragraph commented="no" id="H6AD1DD24D0A642B789CEB1CBC917B700"><enum>(2)</enum><text>in subsection (b)(2)(A) by amending subparagraph (A) to read as follows:</text>
<quoted-block id="H769ED630DE03479700761146553313BB">
<subparagraph commented="no" id="H52477323CC4C406D009CBB5BB2800B8"><enum>(A)</enum><text>a qualified transportation fringe as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/132">section 132(f)(1)</external-xref> of the Internal Revenue Code of 1986;</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section>
<section display-inline="no-display-inline" id="H85C5C98EDB9D4972B0C48772E982A22B" section-type="subsequent-section"><enum>324.</enum><header>Extension of transportation fringe benefit to bicycle commuters</header>
<subsection id="HBBA9B9531F304FD79693003CC44CD44E"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/132">section 132(f)</external-xref> of the Internal Revenue Code of 1986 (relating to general rule for qualified transportation fringe) is amended by adding at the end the following:</text>
<quoted-block id="HC2A3188DFBED4F338F3220D8CE4D9367">
<subparagraph id="HA82182ED366F41AF8C93EEF845422300"><enum>(D)</enum><text>Bicycle commuting allowance.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H2E5C72547BFA41EB8362E069FCDC0192"><enum>(b)</enum><header>Bicycle commuting allowance defined</header><text>Paragraph (5) of section 132(f) of such Code (relating to definitions) is amended by adding at the end the following:</text>
<quoted-block id="HBC2D59BA69BE4ABCA60544689BD35DB2">
<subparagraph id="HF19C25A3B02247FC8C001147DC802441"><enum>(F)</enum><header>Bicycle commuting allowance</header><text>The term <term>bicycle commuting allowance</term> means an amount provided to an employee for transportation on a bicycle if such transportation is in connection with travel between the employee’s residence and place of employment.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HE8843ABB512449AEB69CBC37CE02B6C8"><enum>(c)</enum><header>Limitation on exclusion</header><text>Paragraph (2) of section 132(f) of such Code is amended by striking <quote>subparagraphs (A) and (B)</quote> and inserting <quote>subparagraphs (A), (B), and (D)</quote>.</text> </subsection>
<subsection id="HAFEC9F20769A4A4E98693419CF89CF54"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2007.</text> </subsection></section></subtitle>
<subtitle id="HDEB48A7FFF08412A8FDA5CAD832DEBF1"><enum>C</enum><header>Emissions reductions and oil savings</header>
<chapter id="H263941658E24462FBE10FE4187B2C807"><enum>1</enum><header>Biofuels security</header>
<section display-inline="no-display-inline" id="HFA589083D8B44ECC892EDB14A5BE74F6" section-type="subsequent-section"><enum>331.</enum><header>Short title</header><text display-inline="no-display-inline">This chapter may be cited as the <quote>Biofuels Security Act of 2007</quote>.</text> </section>
<subchapter id="HBA3EEAA2FBB24C7BA4DC4050089B80DD"><enum>A</enum><header>Renewable fuels</header>
<section id="HC7FAC7DF16F34C0FA7AEDB2B96707594"><enum>341.</enum><header>Renewable fuel program</header><text display-inline="no-display-inline">Section 211(o)(2) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(2)</external-xref>) is amended by striking subparagraph (B) and inserting the following:</text>
<quoted-block act-name="Clean" id="H05D1C117304945FFBE40470991DD36FD" style="OLC">
<subparagraph id="H7E582FCEC18A44AD001C39C8ECE95405"><enum>(B)</enum><header>Applicable volume</header>
<clause id="H06CF8C0251894DFAA55B34A6F01296CE"><enum>(i)</enum><header>In general</header><text>For the purpose of subparagraph (A), the applicable volume for calendar year 2010 and each calendar year thereafter shall be determined, by rule, by the Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, in a manner that ensures that—</text>
<subclause id="H660FD81A69BB432ABE304151496F3E5F"><enum>(I)</enum><text>the requirements described in clause (ii) for specified calendar years are met; and</text> </subclause>
<subclause id="HC08E666F6276475AB703F6DE41CB6DC"><enum>(II)</enum><text>the applicable volume for each calendar year not specified in clause (ii) is determined on an annual basis.</text> </subclause></clause>
<clause id="H596FD0B445A64170B0D35EC19C269682"><enum>(ii)</enum><header>Requirements</header><text>The requirements referred to in clause (i) are—</text>
<subclause id="H1380BD5214FF41E88CEB3F5FFF013000"><enum>(I)</enum><text>for calendar year 2010, at least 10,000,000,000 gallons of renewable fuel;</text> </subclause>
<subclause id="H8803112EA1A24827B0BCAF6EE7C7556C"><enum>(II)</enum><text>for calendar year 2020, at least 30,000,000,000 gallons of renewable fuel; and</text> </subclause>
<subclause id="HDE61FC89B2CC4578BE5FDF674DB301D9"><enum>(III)</enum><text>for calendar year 2030, at least 60,000,000,000 gallons of renewable fuel.</text> </subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="H2D94A0E08FB74386971CA32F5DCA72A1"><enum>342.</enum><header>Installation of e–85 fuel pumps by major oil companies at owned stations and branded stations</header><text display-inline="no-display-inline">Section 211(o) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block act-name="Clean" id="HD2EF3244339E46148662CD1CD8C0C362" style="OLC">
<paragraph id="H5372B6B14C8C4A1996B6A9FEA4144622"><enum>(11)</enum><header>Installation of e–85 fuel pumps by major oil companies at owned stations and branded stations</header>
<subparagraph id="H00A5B69726284BCE982764BCB6000954"><enum>(A)</enum><header>Definitions</header><text>In this paragraph:</text>
<clause id="HC87ECC95F070495984BBA01D437775F1"><enum>(i)</enum><header>E–85 fuel</header><text>The term <term>E–85 fuel</term> means a blend of gasoline approximately 85 percent of the content of which is derived from ethanol produced in the United States.</text> </clause>
<clause id="HF0300D7DA6C34D04B3656F6313CC032E"><enum>(ii)</enum><header>Major oil company</header><text>The term <term>major oil company</term> means any person that, individually or together with any other person with respect to which the person has an affiliate relationship or significant ownership interest, has not less than 4,500 retail station outlets according to the latest publication of the Petroleum News Annual Factbook.</text> </clause>
<clause id="H4A289B8E3D8E465187768931AF9905E5"><enum>(iii)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy, acting in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Agriculture.</text> </clause></subparagraph>
<subparagraph id="H5C186BF9409045F58CE37C0077165EB2"><enum>(B)</enum><header>Regulations</header><text>The Secretary shall promulgate regulations to ensure that each major oil company that sells or introduces gasoline into commerce in the United States through wholly-owned stations or branded stations installs or otherwise makes available 1 or more pumps that dispense E–85 fuel (including any other equipment necessary, such as including tanks, to ensure that the pumps function properly) at not less than the applicable percentage of the wholly-owned stations and the branded stations of the major oil company specified in subparagraph (C).</text> </subparagraph>
<subparagraph id="H3E6C434FD4184B5E9300007983787965"><enum>(C)</enum><header>Applicable percentage</header><text>For the purpose of subparagraph (B), the applicable percentage of the wholly-owned stations and the branded stations shall be determined in accordance with the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="257.25pt" min-data-value="55"/><colspec align="justify" coldef="fig" colname="column2" colwidth="215.25pt" min-data-value="5"/> <thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Applicable percentage of<linebreak/> wholly-owned stations and<linebreak/> branded stations</bold></entry> </row>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>Calendar year:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>(percent):</bold></entry> </row> </thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2008</entry><entry align="right" colname="column2" rowsep="0">5</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2009</entry><entry align="right" colname="column2" rowsep="0">10</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2010</entry><entry align="right" colname="column2" rowsep="0">15</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2011</entry><entry align="right" colname="column2" rowsep="0">20</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2012</entry><entry align="right" colname="column2" rowsep="0">25</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">30</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="column2" rowsep="0">35</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="column2" rowsep="0">40</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry align="right" colname="column2" rowsep="0">45</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2017 and each calendar year thereafter</entry><entry align="right" colname="column2" rowsep="0">50.</entry> </row> </tbody> </tgroup> </table> </subparagraph>
<subparagraph id="HB78635B8C3DD41E3996B71718F866733"><enum>(D)</enum><header>Geographic distribution</header>
<clause id="H1136FDF745574B53AA31F289CCB136"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), in promulgating regulations under subparagraph (B), the Secretary shall ensure that each major oil company described in subparagraph (B) installs or otherwise makes available 1 or more pumps that dispense E–85 fuel at not less than a minimum percentage (specified in the regulations) of the wholly-owned stations and the branded stations of the major oil company in each State.</text> </clause>
<clause id="H89AB5E621F9D4161B68405D31946A03D"><enum>(ii)</enum><header>Requirement</header><text>In specifying the minimum percentage under clause (i), the Secretary shall ensure that each major oil company installs or otherwise makes available 1 or more pumps described in that clause in each State in which the major oil company operates.</text> </clause></subparagraph>
<subparagraph id="H5843D9EB20C4435AB6AB48E75062C8C4"><enum>(E)</enum><header>Financial responsibility</header><text>In promulgating regulations under subparagraph (B), the Secretary shall ensure that each major oil company described in that subparagraph assumes full financial responsibility for the costs of installing or otherwise making available the pumps described in that subparagraph and any other equipment necessary (including tanks) to ensure that the pumps function properly.</text> </subparagraph>
<subparagraph id="HA05AE323BA844A41009681C07BB38178"><enum>(F)</enum><header>Production credits for exceeding e–85 fuel pumps installation requirement</header>
<clause id="HF907D59E86E5422D96AD08A381E9B6D4"><enum>(i)</enum><header>Earning and period for applying credits</header><text>If the percentage of the wholly-owned stations and the branded stations of a major oil company at which the major oil company installs E–85 fuel pumps in a particular calendar year exceeds the percentage required under subparagraph (C), the major oil company earns credits under this paragraph, which may be applied to any of the 3 consecutive calendar years immediately after the calendar year for which the credits are earned.</text> </clause>
<clause id="H7DB6D8B9AEB841C3BC57F1D2491F6485"><enum>(ii)</enum><header>Trading credits</header><text>Subject to clause (iii), a major oil company that has earned credits under clause (i) may sell credits to another major oil company to enable the purchaser to meet the requirement under subparagraph (C).</text> </clause>
<clause id="H789F985B018A43DB91887F70B360F315"><enum>(iii)</enum><header>Exception</header><text>A major oil company may not use credits purchased under clause (ii) to fulfill the geographic distribution requirement in subparagraph (D).</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="H49AB5CFE498549229511F8CAAB29C12"><enum>343.</enum><header>Minimum Federal fleet requirement</header><text display-inline="no-display-inline">Section 303(b)(1) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13212">42 U.S.C. 13212(b)(1)</external-xref>) is amended—</text>
<paragraph id="HC558D827638D4593BBF8F2BF505ECFB0"><enum>(1)</enum><text>in subparagraph (C), by striking <quote>and</quote> after the semicolon;</text> </paragraph>
<paragraph id="HB8A1A89039AE4FEABC884E31CE1DB645"><enum>(2)</enum><text>in subparagraph (D), by striking <quote>fiscal year 1999 and thereafter,</quote> and inserting <quote>each of fiscal years 1999 through 2007; and</quote>;</text> </paragraph>
<paragraph id="H628145FC9E0341E5A5B730E000550944"><enum>(3)</enum><text>by inserting after subparagraph (D) the following:</text>
<quoted-block id="HB34E6CE3CDD54D03B9CB38BC2BE933E9" style="OLC">
<subparagraph id="H96A7F30FFF8F40A582D9A78743C6A51E"><enum>(E)</enum><text>100 percent in fiscal year 2008 and thereafter,</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H2A5A7ADD03BD44319785976D00A3A4E8"><enum>(4)</enum><text>by inserting after the period at the end the following: <quote>For purposes of this subsection, the term <term>alternative fueled vehicle</term> shall include plug-in hybrid vehicles (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B</external-xref> of the Internal Revenue Code of 1986).</quote>.</text> </paragraph></section>
<section id="H5B8661A8E0874D34B84BBE91D120A185"><enum>344.</enum><header>Application of Gasohol Competition Act of 1980</header><text display-inline="no-display-inline">Section 26 of the <act-name parsable-cite="CLAY">Clayton Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/26a">15 U.S.C. 26a</external-xref>) is amended—</text>
<paragraph id="H4E889BA6D0864B048B14C8644B84E9B"><enum>(1)</enum><text>by redesignating subsection (c) as subsection (d);</text> </paragraph>
<paragraph id="H66D122C380A543D997F2E0C6590F992"><enum>(2)</enum><text>by inserting after subsection (b) the following:</text>
<quoted-block id="H81232D5D15FF4FA48170AEB3AA5376CE" style="OLC">
<subsection id="HD6C4BC778C5E403488004D2451289852"><enum>(c)</enum><text>For purposes of subsection (a), restricting the right of a franchisee to install on the premises of that franchisee a renewable fuel pump, such as one that dispenses E85, shall be considered an unlawful restriction.</text> </subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HCADD69F6EF614C7581BD00BB072CD500"><enum>(3)</enum><text>in subsection (d) (as redesignated by paragraph (1))—</text>
<subparagraph id="H5B974764BD7A4A01A64D24A602D343F"><enum>(A)</enum><text>by striking “section,” and inserting the following: “section—</text>
<quoted-block id="H74A4F95378C0494AA56D6907BC4827FD" style="OLC">
<paragraph id="HE255B88AC5494CE5952900D078A347B"><enum>(1)</enum><text>the term</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="H3B0005892DC243D9BC062CF513A4BA89"><enum>(B)</enum><text>by striking the period at the end and inserting <quote>; and</quote>; and</text> </subparagraph>
<subparagraph id="H0514CCC671CA462E95F4D50995962427"><enum>(C)</enum><text>by adding at the end the following:</text>
<quoted-block id="H6581D485D5F1481D94C4B0AB5400D200" style="OLC">
<paragraph id="HBC324D6D11714006BB7E8EE021F8D36D"><enum>(2)</enum><text>the term <term>gasohol</term> includes any blend of ethanol and gasoline such as E–85.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></section></subchapter>
<subchapter id="H26CFC663452E4BC98086DF6D076F0047"><enum>B</enum><header>Dual fueled automobiles</header>
<section id="HB363D396A8E74C019363378E9786A92B"><enum>351.</enum><header>Requirement to manufacture dual fueled automobiles</header>
<subsection id="H4AABFB33456C46AA8C5563F4B8CB178"><enum>(a)</enum><header>Requirement</header>
<paragraph id="H9ACB84E672BB4E7298DD1E307BE2231B"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">Chapter 329</external-xref> of title 49, United States Code, is amended by inserting after <external-xref legal-doc="usc" parsable-cite="usc/49/32902">section 32902</external-xref> the following:</text>
<quoted-block id="HB1B8BDFB44044C93BAFDBA7754A00045" style="USC">
<section id="H1B1822E5D3674DC2B139211C28943EAF"><enum>32902A.</enum><header>Requirement to manufacture dual fueled automobiles</header>
<subsection id="HB3A134A03A654AE59882EF759FD6D52F"><enum>(a)</enum><header>Requirement</header><text>Each manufacturer of new automobiles that are capable of operating on gasoline or diesel fuel shall ensure that the percentage of such automobiles, manufactured in any model year after model year 2007 and distributed in commerce for sale in the United States, which are dual fueled automobiles is equal to not less than the applicable percentage set forth in the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="257pts" min-data-value="55"/><colspec align="justify" coldef="fig" colname="column2" colwidth="239pts" min-data-value="5"/> <thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The percentage of <linebreak/>dual fueled automobiles</bold></entry> </row>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>For each of the following</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>manufactured shall be</bold></entry> </row>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold> model years:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold> not less than:</bold></entry> </row> </thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2008</entry><entry align="right" colname="column2" rowsep="0">10</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2009</entry><entry align="right" colname="column2" rowsep="0">20</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2010</entry><entry align="right" colname="column2" rowsep="0">30</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2011</entry><entry align="right" colname="column2" rowsep="0">40</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2012</entry><entry align="right" colname="column2" rowsep="0">50</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2013</entry><entry align="right" colname="column2" rowsep="0">60</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2014</entry><entry align="right" colname="column2" rowsep="0">70</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015</entry><entry align="right" colname="column2" rowsep="0">80</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2016</entry><entry align="right" colname="column2" rowsep="0">90</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2017 and beyond</entry><entry align="right" colname="column2" rowsep="0">100.</entry> </row> </tbody> </tgroup> </table> </subsection>
<subsection id="HDA9BA093830743A4A15778F13F4E3B3B"><enum>(b)</enum><header>Production Credits for Exceeding Flexible Fuel Automobile Production Requirement</header>
<paragraph id="H48E137EA965B4766AACAA637854D8BF"><enum>(1)</enum><header>Earning and period for applying credits</header><text>If the number of dual fueled automobiles manufactured by a manufacturer in a particular model year exceeds the number required under subsection (a), the manufacturer earns credits under this section, which may be applied to any of the 3 consecutive model years immediately after the model year for which the credits are earned.</text> </paragraph>
<paragraph id="H95270BDF1DFD4DF8B0A7798146A6298"><enum>(2)</enum><header>Trading credits</header><text>A manufacturer that has earned credits under paragraph (1) may sell credits to another manufacturer to enable the purchaser to meet the requirement under subsection (a).</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HEDE529D3A54A4029BF7B651390F3D334"><enum>(2)</enum><header>Technical amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">chapter 329</external-xref> of title 49, United States Code, is amended by inserting after the item relating to <external-xref legal-doc="usc" parsable-cite="usc/49/32902">section 32902</external-xref> the following:</text>
<quoted-block id="HCC8EF8F59EAA42BC925B51B8F66364B" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">32902A. Requirement to manufacture dual fueled automobiles.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H3AE31A9C6AFF429190D27EAC00FD309E"><enum>(b)</enum><header>Activities To Promote the Use of Certain Alternative Fuels</header><text>The Secretary of Transportation shall carry out activities to promote the use of fuel mixtures containing gasoline or diesel fuel and 1 or more alternative fuels, including a mixture containing at least 85 percent of methanol, denatured ethanol, and other alcohols by volume with gasoline or other fuels, to power automobiles in the United States.</text> </subsection></section>
<section id="HDF185813E89A4DA3A1316EFDD9FB56EB"><enum>352.</enum><header>Manufacturing incentives for dual fueled automobiles</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32905">Section 32905(b)</external-xref> of title 49, United States Code, is amended—</text>
<paragraph id="H0401671EBB45470C8073A73E51D69469"><enum>(1)</enum><text>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;</text> </paragraph>
<paragraph id="HCD31CD729A254AD69B20F0C36D1E94CB"><enum>(2)</enum><text>by inserting <quote>(1)</quote> before <quote>Except</quote>;</text> </paragraph>
<paragraph id="HDE703BEC91B44BD59CD2636F4EEF004D"><enum>(3)</enum><text>by striking <quote>model years 1993–2010</quote> and inserting <quote>model year 1993 through the first model year beginning not less than 18 months after the date of enactment of the Biofuels Security Act of 2007</quote>; and</text> </paragraph>
<paragraph id="H489BFEF8BC6447E1A8E6D17FF789A948"><enum>(4)</enum><text>by adding at the end the following:</text>
<quoted-block id="H6237326B91D94AB780CA91BCAAD97C60" style="OLC">
<paragraph id="H89FBC192EF6B4D5B96385C5CEC4B3400" indent="up1"><enum>(2)</enum><text>Except as provided in paragraph (5), subsection (d), or section 32904(a)(2), the Administrator shall measure the fuel economy for each model of dual fueled automobiles manufactured by a manufacturer in the first model year beginning not less than 30 months after the date of enactment of the Biofuels Security Act of 2007 by dividing 1.0 by the sum of—</text>
<subparagraph id="H1A9A12A9F45441B49308476D06984EC8"><enum>(A)</enum><text>0.7 divided by the fuel economy measured under section 32904(c) when operating the model on gasoline or diesel fuel; and</text> </subparagraph>
<subparagraph id="H14DD94B904CE4A60BAF14FC15B2ECB5"><enum>(B)</enum><text>0.3 divided by the fuel economy measured under subsection (a) when operating the model on alternative fuel.</text> </subparagraph></paragraph>
<paragraph id="H4ADB48E810B44AFFB8A6638C0B605C" indent="up1"><enum>(3)</enum><text>Except as provided in paragraph (5), subsection (d), or section 32904(a)(2), the Administrator shall measure the fuel economy for each model of dual fueled automobiles manufactured by a manufacturer in the first model year beginning not less than 42 months after the date of enactment of the Biofuels Security Act of 2007 by dividing 1.0 by the sum of—</text>
<subparagraph id="H46824C6035334859B7C62C2855F471AC"><enum>(A)</enum><text>0.9 divided by the fuel economy measured under section 32904(c) when operating the model on gasoline or diesel fuel; and</text> </subparagraph>
<subparagraph id="H482B60ED7A9A42A4A3FF20D171AAD17B"><enum>(B)</enum><text>0.1 divided by the fuel economy measured under subsection (a) when operating the model on alternative fuel.</text> </subparagraph></paragraph>
<paragraph id="H7990DD8FC75A41169FEC08C613FA8304" indent="up1"><enum>(4)</enum><text>Except as provided in subsection (d) or section 32904(a)(2), the Administrator shall measure the fuel economy for each model of dual fueled automobiles manufactured by a manufacturer in each model year beginning not less than 54 months after the date of enactment of the Biofuels Security Act of 2007 in accordance with section 32904(c).</text> </paragraph>
<paragraph id="H59C70A4CF6C74BE9851300B3F2DF3093" indent="up1"><enum>(5)</enum><text>Notwithstanding paragraphs (2) through (4), the fuel economy for all dual fueled automobiles manufactured to comply with the requirements under section 32902A(a), including automobiles for which dual fueled automobile credits have been used or traded under section 32902A(b), shall be measured in accordance with section 32904(c).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section></subchapter></chapter>
<chapter id="H024948BB699C4CA595DD1444C78DA4CB"><enum>2</enum><header>Emissions reductions</header>
<section display-inline="no-display-inline" id="H1EAA34B313D34C13AE852C3D63B25037"><enum>361.</enum><header>Extension of biodiesel tax credits</header>
<subsection id="HA0DA052E7E704AF0850088A9477BD947"><enum>(a)</enum><header>In general</header><text>Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of the Internal Revenue Code of 1986 are each amended by striking <quote>2008</quote> and inserting <quote>2018</quote>.</text> </subsection>
<subsection id="H2C6228433A6B4F8DA62CDCB5F894DEA4"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text> </subsection></section>
<section id="H8B03B2D172CC40ECAA02B3DD20D55359"><enum>362.</enum><header>Low carbon fuel standard</header><text display-inline="no-display-inline">The Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401 et seq.</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5C2C37166229489BA9F51892F6642B77" style="OLC">
<title id="H4A9325B04FD74F75B75B657E9DA92900"><enum>VII</enum><header>Greenhouse gas emissions from vehicle and aircraft fuels</header>
<section id="HA926AA25678C4523BD9CFBDD03FCBD4F"><enum>701.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this title is to provide a reduction in the aggregate greenhouse gas emissions per unit of energy consumed by vehicles and aircraft.</text> </section>
<section id="HE139D7C0268F48308C23FC851C122F64"><enum>702.</enum><header>Findings</header><text display-inline="no-display-inline">The Congress finds that:</text>
<paragraph id="HF38B2017620847F9A66480FFBF48A025"><enum>(1)</enum><text display-inline="yes-display-inline">The United States consumes a quarter of the world’s oil and the oil used in transportation accounts for a third of the United States emissions of the greenhouse gases that cause global warming.</text> </paragraph>
<paragraph id="H88EAB2D937574CAC8F3ED5B56D7CB4B6"><enum>(2)</enum><text display-inline="yes-display-inline">To avoid catastrophic global warming, the United States should take decisive action with other nations to reduce greenhouse gas emissions by 60 to 80 percent by 2050.</text> </paragraph>
<paragraph id="H3080485E80874C4EAAB71B4B03240050"><enum>(3)</enum><text display-inline="yes-display-inline">Transitioning our transportation sector to more efficient use of oil and low-carbon petroleum alternatives is essential to reducing global warming pollution.</text> </paragraph>
<paragraph id="H9CDDF55962DE4FF088B400CB104DED79"><enum>(4)</enum><text display-inline="yes-display-inline">It is necessary and feasible to reduce emissions of greenhouse gases, enhance national security by reducing dependence on oil and promote economic well-being without sacrificing land, water and air quality, by enacting energy policies that motivate environmental performance.</text> </paragraph></section>
<section display-inline="no-display-inline" id="H67F6168A8B5D41578FFC41C4A733C1A4"><enum>703.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title:</text>
<paragraph id="HE0D9751F136643799B534C932033099E"><enum>(1)</enum><header>Administrator</header><text>The term <term>Administrator</term> means the Administrator of the Environmental Protection Agency.</text> </paragraph>
<paragraph id="H76710ACDD5594D1297D41D69A19C41CA"><enum>(2)</enum><header>Carbon dioxide equivalent</header><text display-inline="yes-display-inline">With respect to each greenhouse gas, the term <term>carbon dioxide equivalent</term> means the amount of the greenhouse gas resulting from that fuel that traps the same amount of heat as one metric ton of carbon dioxide, as determined by the Administrator.</text> </paragraph>
<paragraph id="HEE40AA9F30B3448F961502A553DCB53"><enum>(3)</enum><header>Greenhouse gas</header><text display-inline="yes-display-inline">The term <term>greenhouse gas</term> means carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, sulfur hexafluoride, and any other anthropogenically-emitted gas that is determined by the Administrator, after notice and comment, to contribute to global warming to a non-negligible degree.</text> </paragraph>
<paragraph id="H3BE4089A2D334478BC0074B35496C466"><enum>(4)</enum><header>Lifecycle greenhouse gas emissions</header><text display-inline="yes-display-inline">The term ‘lifecycle greenhouse gas emissions’ means greenhouse gases emitted during the entire cycle of extraction, cultivation, production, manufacturing, feedstock extraction, marketing, and distribution for a fuel or other sources of energy, as well as those emitted during the use of such fuels and sources by vehicles and aircraft. The term includes changes in land use and land cover associated with each phase of such cycle.</text> </paragraph>
<paragraph id="HC83235300F9B47DB0079D4EF07D6767"><enum>(5)</enum><header>Vehicle</header><text display-inline="yes-display-inline">The term <term>vehicle</term> means a motor vehicle as defined in section 216 and any other device used for the transportation of persons or goods (other than an aircraft).</text> </paragraph></section>
<section id="H950283E439E54A4DABF8A35CC12CA40"><enum>704.</enum><header>Low carbon fuel performance standards</header>
<subsection id="HD5CBC01E8BA04A02B93687F48CD9EA6"><enum>(a)</enum><header>Vehicle fuel standard</header><text display-inline="yes-display-inline">Not later than January 1, 2010, the Administrator shall promulgate low carbon fuel performance standards for fuels and other sources of energy used to propel vehicles. Such standards shall begin to apply in the year 2015.</text> </subsection>
<subsection id="HAE24EB61C80B4149B991A3ABCEFF6FB2"><enum>(b)</enum><header>Graduated reductions for vehicle fuel</header><text display-inline="yes-display-inline">The Administrator shall promulgate, by rule, a declining standard for each 5 calendar year period beginning in 2015. Each such standard shall represent a graduated percentage reduction in aggregate emissions of greenhouse gases per Btu in each 5-year period after 2014 through 2050 as provided in the following table. The reduction for each such period shall be measured from the baseline for vehicle fuel, as determined by the Administrator under subsection (f).</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="195.00pt" min-data-value="55"/><colspec coldef="fig" colname="column2" colwidth="153.75pt" min-data-value="9"/> <thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Percent</bold></entry> </row>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>5-year period:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>reduction:</bold></entry> </row> </thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2015 through 2019</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">3 percent</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2020 through 2024</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">6 percent</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2025 through 2029</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">9 percent</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2030 through 2034</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">12 percent</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2035 through 2039</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">15 percent</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2040 through 2044</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">18 percent</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2045 through 2049</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">21 percent.</entry> </row> </tbody> </tgroup> </table> </subsection>
<subsection id="H877B9294A1004BB4945ED42F9CA9BCCF"><enum>(c)</enum><header>Additional reductions</header><text display-inline="yes-display-inline">Each 5 years during the period 2015 through 2050 the Administrator shall review available control technology, safety considerations, and land and other resources available for production of fuels and other sources of energy used to propel vehicles. Following such review, the Administrator may, by rule, promulgate a more stringent standard than the standard otherwise applicable under subsection (b) which more stringent standard, based on such review, the Administrator determines to be requisite to protect the public health and welfare from any known or anticipated adverse effects associated with greenhouse gas emissions.</text> </subsection>
<subsection id="H7109B292FCE241B9BD16D9CB229CA02D"><enum>(d)</enum><header>Standard for aircraft fuel</header><text display-inline="yes-display-inline">Not later than January 1, 2010, the Administrator shall promulgate a low carbon fuel performance standard for fuels and other sources of energy used by aircraft. The performance standard for such fuels and other sources of energy for aircraft for each year after 2015 shall be the baseline for that fuel, as determined by the Administrator under subsection (f). Such standard shall begin to apply in the year 2015 and continue to apply through the calendar year 2019. The standard shall remain in effect thereafter unless, for each 5 year period thereafter, beginning in 2020, the Administrator and the Secretary of Transportation determine that a more stringent standard is necessary to carry out the purposes of this Act. Such determination may be made only after a thorough review of available technology and safety considerations. Following such determination, the Administrator shall promulgate a rule establishing a more stringent standard.</text> </subsection>
<subsection id="H0DCD47FCE23E42F58D38159956DD5197"><enum>(e)</enum><header>Terms of standards</header><text display-inline="yes-display-inline">Each standard under this section shall be expressed in carbon dioxide, or carbon dioxide equivalent, emissions per Btu of energy from the aggregate of all fuels and other sources of energy used by vehicles or by aircraft.</text> </subsection>
<subsection id="H0409316154ED4AA88D18CEB4B972736"><enum>(f)</enum><header>Baseline</header>
<paragraph id="HF5C1026ACEF044B68DFE627991DFF6AB"><enum>(1)</enum><header>Vehicle fuel</header><text display-inline="yes-display-inline">The baseline for vehicle fuel for purposes of the standards under this section shall be the aggregate greenhouse gas emissions per Btu from all such fuel and other sources of energy used by vehicles in calendar year 2007, as determined by the Administrator.</text> </paragraph>
<paragraph id="H0E909BB7335345B300A500C52EE4D6E0"><enum>(2)</enum><header>Aircraft fuel</header><text>For fuel used by aircraft, the baseline for purposes of the standard under this section shall be the aggregate greenhouse gas emissions per Btu from all such fuel and other sources of energy used by aircraft in calendar year 2007, as determined by the Administrator.</text> </paragraph></subsection></section>
<section id="HB3B51907C48E4555A1B6E25FE1375F5C"><enum>705.</enum><header>EPA regulations; calculation of emissions per Btu</header>
<subsection id="HF968C484EF1C464A95AA68C069879703"><enum>(a)</enum><header>Regulations</header><text display-inline="yes-display-inline">After consultation with the Secretary of Energy and the Secretary of Commerce, and a review of all compliance methods, the Administrator, after notice and opportunity for comment, shall promulgate, not later than January 1, 2010, and may periodically revise thereafter, regulations requiring compliance with the annual performance standards established under section 703.</text> </subsection>
<subsection id="H4F6A846B6E6847D9A9C0D1CE7B452FB7"><enum>(b)</enum><header>Calculations of greenhouse emission rate per Btu</header>
<paragraph id="HA32300F7625A47D2AC1253E8187F825D"><enum>(1)</enum><header>Individual calculations under standard methodology</header><text display-inline="yes-display-inline">The regulations under this section shall provide standard, transparent and public methods for each producer, importer, or blender of a fuel or other source of energy used, directly or indirectly, as a fuel for vehicles or aircraft to calculate the greenhouse gases emitted per Btu of such fuel or other source of energy when so used.</text> </paragraph>
<paragraph id="H14AD2C11B3DD4428A8451C2482BFD524"><enum>(2)</enum><header>Lifecycle greenhouse gas emission calculation</header><text display-inline="yes-display-inline">The regulations under this section shall include appropriate methods for estimating the lifecycle greenhouse gas emissions of each fuel and other energy source. For purposes of such regulations, the Administrator shall develop methods to quantify the direct and indirect emissions resulting from biofuel production.</text> </paragraph>
<paragraph id="HC02911D2381A4CC89EA04BB87EBD3E00"><enum>(3)</enum><header>Special adjustment for electricity and hydrogen</header><text display-inline="yes-display-inline">In making the calculation under this subsection, the Administrator shall adjust the Btus of energy delivered from the use of electricity and hydrogen used as a fuel or source of energy for vehicles and aircraft. Such adjustment shall reflect the greenhouse gas reductions on a per mile basis in order to reflect the inherent energy efficiency of an average battery electric, plug in hybrid electric vehicle, or hydrogen fuel cell vehicle.</text> </paragraph>
<paragraph id="HBE4538D547944073B3B500E17B792BCC"><enum>(4)</enum><header>NAS report</header><text display-inline="yes-display-inline">The Administrator shall, not less than 90 days after the enactment of this Act, enter into a contract with the National Academy of Sciences to assess and recommend methods to calculate the lifecycle greenhouse gas emissions associated with the production and use of fuels and other sources of energy used as a fuel for vehicles and aircraft.</text> </paragraph>
<paragraph id="H837B9DAFBB034A118FE53BD44E901DC5"><enum>(5)</enum><header>Consultation</header><text display-inline="yes-display-inline">In developing regulations under this section, the Administrator shall consult with State agencies and other government entities within and outside the United States having programs for control of greenhouse gas emissions from vehicle fuels and shall promulgate such regulations after consideration of the report under paragraph (4).</text> </paragraph></subsection></section>
<section id="HC2D3E1859A1743B584F29BBFB41529D"><enum>706.</enum><header>Compliance with standard</header>
<subsection id="HFBED2581469C445D885F03548C4031BD"><enum>(a)</enum><header>Requirement To meet standard</header><text display-inline="yes-display-inline">The regulations under this title shall provide that each producer, importer or blender of a fuel or other source of energy used for transportation by vehicles or aircraft shall be required to generate or obtain in each calendar year after 2009 credits equal to the excess, if any, of paragraph (1) over paragraph (2) multiplied by paragraph (3). No producer, importer, or blender shall be required to obtain credits if the fuel or other source of energy meets the aggregate performance standard under section 703 for the calendar year concerned.</text>
<paragraph id="H0AB97D02F2334CDC9F01B74169B67503"><enum>(1)</enum><text display-inline="yes-display-inline">The greenhouse gases (expressed as carbon dioxide or carbon dioxide equivalent) emitted per Btu of fuel or other energy produced, imported, or blended by such producer, importer, or blender in the calendar year concerned.</text> </paragraph>
<paragraph id="HB97A71E19B2F49C9BADB00804874BDA8"><enum>(2)</enum><text display-inline="yes-display-inline">The aggregate performance standard for all such producers, importer, or blenders established under section 703 for the calendar year concerned.</text> </paragraph>
<paragraph id="H56AA4A2478614A1B97BACE007E06CBF4"><enum>(3)</enum><text display-inline="yes-display-inline">The total number of Btus used in vehicles and aircraft that is provided by the fuel or other energy produced, imported, or blended by such producer, importer or blender in the year concerned.</text> </paragraph></subsection>
<subsection id="H918ED044FC864F4DA6FC2E5313F7985D"><enum>(b)</enum><header>Generation, trading, and banking of credits</header>
<paragraph id="H323D1790F60346219B3B842B0042FDDB"><enum>(1)</enum><header>Credit generation</header><text display-inline="yes-display-inline">For each calendar year after the calendar year 2014, each producer, importer, or blender of each fuel or other source of energy used for transportation by vehicles or aircraft shall be credited with greenhouse gas emission credits equal to the excess, if any, of paragraph (2) of subsection (a) over paragraph (1) of subsection (a) multiplied by paragraph (3) of subsection (a).</text> </paragraph>
<paragraph id="H20626CFBE41C4A94A68463F5CB406BF2"><enum>(2)</enum><header>Trading</header><text display-inline="yes-display-inline">The regulations under this section shall allow purchase, sale, and trading of such allowance producers, importers and blenders, and other persons. Credits generated this section may be held and traded by any person. Credits under this section do not constitute a property right, and nothing in any provision of law shall be construed to limit the authority of the United States to terminate or limit any such credit.</text> </paragraph>
<paragraph id="H8F8101CF4F3540FBBBC60898A6F8EDD6"><enum>(3)</enum><header>Banking</header><text display-inline="yes-display-inline">Credits generated under this section may be used in the year in which they are generated and in the following calendar year.</text> </paragraph></subsection>
<subsection id="H31FC5CE8234548C3A6919FD347A90181"><enum>(c)</enum><header>Monitoring</header><text>The Administrator shall promulgate rules to ensure that greenhouse gas emissions and the use of credits generated under this section are accurately tracked, reported, and verified.</text> </subsection>
<subsection id="HF756A98210CF457B82263230A8E9778F"><enum>(d)</enum><header>Enforcement</header>
<paragraph id="H68B4766DC0C2487C98F41BE82185007E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">If any fuel or other source of energy used, directly or indirectly, by vehicles exceeds in any calendar year the standard established under this section and the producer, importer or blender thereof has not acquired credits to offset such excess, the producer, importer or blender shall pay a civil penalty in an amount determined under paragraph (2).</text> </paragraph>
<paragraph id="H485F201388AB4062B3EF57238C4EDC76"><enum>(2)</enum><header>Amount of civil penalty</header><text>The amount of the civil penalty under this subsection shall be twice the market price for the credits that would be necessary for such producer, blender, or importer to meet the standard for the fuel or energy source concerned. The Administrator shall establish the method of determining such market price.</text> </paragraph>
<paragraph id="H9CD0F92DC6604A0EBF518E8F1F75ED44"><enum>(3)</enum><header>No demand required</header><text>A civil penalty under this subsection shall be due and payable to the Administrator without demand.</text> </paragraph>
<paragraph id="HC756A759F7894EF5BD14F20594202208"><enum>(4)</enum><header>Civil action</header><text>The Administrator may bring a civil action in the appropriate United States district court to recover the amount of any civil penalty due and payable under this subsection.</text> </paragraph></subsection></section>
<section id="H2476C645122F41608B46C02E58F900CC"><enum>707.</enum><header>Certification and labeling of low-carbon transportation fuels</header>
<subsection id="H36E7F7B3EA8A44F3A36FF380FCB400A0"><enum>(a)</enum><header>Identification</header><text display-inline="yes-display-inline">Not later than January 1, 2009, the Administrator shall identify and label low-carbon transportation fuels based on the following criteria.</text>
<paragraph id="HB78D421A4A3D4FF687713E1D71C6CD18"><enum>(1)</enum><text display-inline="yes-display-inline">The fuel is responsible for at least 20 percent lower lifecycle greenhouse gas emissions per BTU delivered compared to the 2007 baseline.</text> </paragraph>
<paragraph id="HAE0FE65A171946210051F68B08DA339B"><enum>(2)</enum><text display-inline="yes-display-inline">The fuel is likely to have fewer adverse impacts on wildlife habitat, biodiversity, water quality or air quality over the lifecycle of the fuel, than conventional transportation fuels.</text> </paragraph>
<paragraph id="H5A7FB87C7A8F47129F99803800D8F444"><enum>(3)</enum><text display-inline="yes-display-inline">The fuel achieves reduction in petroleum content over its lifecycle.</text> </paragraph><continuation-text continuation-text-level="subsection">In the case of electric energy and hydrogen used, directly or indirectly, as a fuel or source of energy for vehicles, the Administrator shall apply the special adjustment factor referred to in section 705(b)(3) in identifying low-carbon transportation fuels.</continuation-text></subsection>
<subsection id="HF0B63F931CEF457E87607292CDC525E3"><enum>(b)</enum><header>Certification</header><text display-inline="yes-display-inline">Not later than January 1, 2009, the Administrator shall establish a low-carbon fuel certification process to certify fuels that the Administrator has identified as low-carbon fuels, make that certification information available to consumers. Under regulations promulgated by the Administrator any person manufacturing, importing, or distributing low-carbon fuels may provide labeling for such fuels in accordance with regulations promulgated by the Administrator and promote public awareness of those fuels.</text> </subsection></section>
<section id="HDB0E72B7D8D4410CAEE842E8F0E29A3"><enum>708.</enum><header>Fuel safeguards</header>
<subsection id="HB45034C8F66245AFA868A7B1191A5F6"><enum>(a)</enum><header>Definitions</header><text>As used in this section:</text>
<paragraph id="HD7207D76DE0640FCAC2B00C3B70508EE"><enum>(1)</enum><text>The term <term>Community Fire Safety Zone</term> means the immediate vicinity of buildings and other areas regularly occupied by people, or of infrastructure, at risk of wildfire.</text> </paragraph>
<paragraph id="H8A0AFDC1E1C543E7B5225953EDCAF200"><enum>(2)</enum><text>The term <term>Ecosystem conversion</term> means altering the native habitat to such an extent that it no longer supports most characteristic native species and ecological processes.</text> </paragraph>
<paragraph id="HF76E812BC57144F3BFAC5D9E7365F6CE"><enum>(3)</enum><text>The term <term>native habitat</term> means dynamic groupings of native plant and animal communities that occur together on the landscape or in the water and are tied together by similar ecological processes, underlying environmental features such as geology, or environmental gradients such as elevation, but does not include land that is currently in agricultural production.</text> </paragraph>
<paragraph id="HB3DDC5B572984D04827021DE93939166"><enum>(4)</enum><header>National interest lands</header><text display-inline="yes-display-inline">The term <term>National interest lands</term> means areas designated as national wildlife refuges, national forests, or national grasslands, areas managed by the National Park Service (including national parks and monuments), and lands managed by the Bureau of Land Management.</text> </paragraph>
<paragraph id="H943EFA7873324C61BF956162793054D0"><enum>(5)</enum><text>The term <term>Community Fire Safety Zone</term> means the immediate vicinity of buildings and other areas regularly occupied by people, or of infrastructure, at risk of wildfire.</text> </paragraph>
<paragraph id="H46E285B1E7A34275A75DD49FA47801DA"><enum>(6)</enum><text>The term <term>Sensitive Lands</term> means old growth forests; roadless areas on national forests, wilderness study areas; native grasslands; intact, rare, threatened or endangered ecosystems; and any area containing significant concentrations of biodiversity values including endemism, endangered species, high species richness, and refugia.</text> </paragraph></subsection>
<subsection id="HA6B6F3ABA38C4DF0876FE9BBE0D7F480"><enum>(b)</enum><header>In general</header><text>Under regulations of the Administrator, no transportation fuel sold in interstate commerce after January 1, 2010 may be derived all or in part from biomass from the following sources:</text>
<paragraph id="H56FF80EE94DB48DAB1BCACE972990C2"><enum>(1)</enum><text>Lands where the Administrator determines that ecosystem conversion has occurred after the date of the enactment of this Act.</text> </paragraph>
<paragraph id="HDA0D3A661CBB431B814989CD0022B458"><enum>(2)</enum><text>Sensitive Lands.</text> </paragraph>
<paragraph id="HB5BA831B27C2486BB786D1A3DA1D368"><enum>(3)</enum><text>Land enrolled in the Conservation Reserve Program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3831">16 U.S.C. 3831 et seq.</external-xref>) or the wetlands reserves program established under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3837">16 U.S.C. 3837 et seq.</external-xref>), unless the biomass is produced in a manner consistent with all applicable guidelines and terms, and conditions under the program.</text> </paragraph>
<paragraph id="H6C3848E984FE484BA419DF19F26B2917"><enum>(4)</enum><text>National interest lands with the exception of either of the following:</text>
<subparagraph id="HCFD741E9C7074E8E888C267BFFBE4F59"><enum>(A)</enum><text>Harvest residue, mill waste, or pre-commercial thinnings, from lands assigned to timber production.</text> </subparagraph>
<subparagraph id="H60499DA120344A89B2CAB3A018BA3D70"><enum>(B)</enum><text>Biomass obtained from a Community Fire Safety Zone.</text> </subparagraph></paragraph>
<paragraph id="H2B3AB40025754803005BA67B69D83505"><enum>(5)</enum><text>Recyclable postconsumer waste paper, painted, treated, or pressurized wood, wood contaminated with plastic or metals.</text> </paragraph>
<paragraph id="H8604135B5809462385D1E08FA9B54279"><enum>(6)</enum><text>Municipal solid waste (as defined in the Solid Waste Disposal Act).</text> </paragraph>
<paragraph id="HB35E293A560E49E9955727356DF4F6F3"><enum>(7)</enum><text>Materials produced, harvested, acquired, transported, or processed pursuant to an exemption from otherwise applicable environmental laws or rules.</text> </paragraph></subsection></section>
<section id="H799D2931062342ECA7E593545E5560A5"><enum>709.</enum><header>Air quality impacts</header>
<subsection id="HA1D52B63DC3C4F34BD87EF1BFDE02B9C"><enum>(a)</enum><header>In general</header><text>The Administrator shall ensure, under regulation, that no transportation fuel sold or introduced in interstate commerce after January 1, 2010, shall result in—</text>
<paragraph id="HAD57F0CB2DB0434E943420B492AE47F2"><enum>(1)</enum><text>average per gallon vehicle emissions (measured on a mass basis) of air pollutants in excess of the quantity of those emissions attributable to gasoline sold or introduced into commerce in the United States during calendar year 2007; or</text> </paragraph>
<paragraph id="HCD5BC3EA0B0045ABA528313EFCB11A2"><enum>(2)</enum><text>a violation of any motor vehicle emission or fuel content limitation under any other provision of this Act.</text> </paragraph></subsection></section>
<section id="HA3B303E301134590A5A8A99ED09D03EB"><enum>710.</enum><header>Research and development funding</header><text display-inline="no-display-inline">There is authorized to be appropriated to the Secretary of Energy such sums as may be necessary carry out a cooperative program of research and development relating to lower carbon alternatives for aircraft jet fuel and fuel for other vehicles. The program shall provide for matching Federal grants to private entities carrying out such research and development.</text> </section>
<section id="H52725F71CE044A0782060521C740BE72"><enum>711.</enum><header>State laws</header><text display-inline="no-display-inline">Nothing in this title shall be interpreted to preempt or limit State actions to address climate change.</text> </section>.
363.Loan guarantee program to demonstrate low carbon renewable fuel
(a)Section 1703 of the Energy Policy Act of 2005 is amended by adding the following new subsection after subsection (b) and redesignating subsections (c) through (e) as (d) through (f):
(c)Low carbon renewable fuel projects
(1)In this subsection:
(A)Low carbon renewable fuelThe term low carbon renewable fuel means transportation fuel that is not an ether and that is produced from renewable biomass; or is natural gas produced from a biogas source, including a landfill, sewage waste treatment plant, feedlot, or other place where decaying organic material is found; is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used for transportation; and has a lifecycle greenhouse gas emissions, per unit of energy, that is at least 60 percent less than the baseline defined in section 704 of the Clean Air Act.
(B)The term transportation fuel means fuel used to power motor vehicles, nonroad engines, or aircraft.
(C)The term renewable biomass is any organic matter that is available on a renewable or recurring basis, including dedicated energy crops and trees, agricultural food and feed crop residues, aquatic plants, animal wastes, wood and wood residues, and other vegetative waste materials. Biomass sources that are covered under this definition are subject to the limitations set forth section 708 of the Clean Air Act.
(2)The Secretary may make loan guarantees under this section to carry out commercial demonstration projects to demonstrate the feasibility and viability of producing low carbon renewable fuel until the technology becomes commercially viable and feasible.
(3)Each project for which a loan guarantee is provided under this subsection shall have a design capacity to produce at least 30,000,000 gallons of renewable fuel each year.
(4)An applicant for a loan guarantee under this subsection shall provide assurances, satisfactory to the Secretary, that—
(A)the project design has been validated through the operation of a continuous process facility with a cumulative output of at least 50,000 gallons of renewable fuel;
(B)the project has been subject to a full technical review;
(C)the project is covered by adequate project performance guarantees;
(D)the project, with the loan guarantee, is economically viable; and
(E)there is a reasonable assurance of repayment of the guaranteed loan. .
(b)Section 1704(a) of such Act is amended by adding the following at the end thereof: Not less than 30 percent of the funds made available under this section shall be used for purposes of loan guarantees under section 1703(c) for low carbon renewable fuel. The aggregate amount of guarantees under section 1703(c) at any one time shall not exceed $20,000,000,000
.
364.Require automakers to reduce tailpipe GHG emissionsTitle II of the Clean Air Act (42 U.S.C. 7581 et seq.) is amended by adding at the following:
DGreenhouse gas emission reductions
251.In this part:
(1)The term greenhouse gas means——
(A)carbon dioxide;
(B)methane;
(C)nitrous oxide;
(D)hydrofluorocarbons;
(E)perflourocarbons; and
(F)sulfur hexafluoride.
(2)The term motor vehicle has the meaning given to such term in section 216.
252.Greenhouse gas emission reductions from automobiles
(a)Vehicle emissions baselineNot later than January 1, 2009, based on the aggregate quantity and variety of new automobiles sold in the United States during model year 2002 and the average greenhouse gas emissions from those new automobiles, the Administrator shall determine the average quantity of greenhouse gas emissions per vehicle mile (referred to in this section as the new vehicle emissions baseline
).
(b)Subsequent average emissions from new automobilesNot later than June 1, 2015, and annually thereafter, based on the aggregate quantity and variety of new automobiles sold in the United States during the preceding model year and the average greenhouse gas emissions from those new automobiles during the preceding model year, the Administrator shall determine the average quantity of greenhouse gas emissions per vehicle mile for the model year.
(c)Required reductions in greenhouse gas emissions from automobiles
(1)The Administrator shall, by regulation, require each manufacturer of automobiles for sale in the United States to reduce the average quantity of greenhouse gas emissions per vehicle mile of the aggregate quantity and variety of automobiles manufactured by the manufacturer to a level that is——
(A)for automobiles manufactured in model year 2016, 30 percent less than the new vehicle emissions baseline; and
(B)not later than every fifth model year thereafter, such percent as shall be specified by the Administrator that is less than the average quantity of greenhouse gas emissions per vehicle mile required for the model year preceding that fifth model year, as determined by the Administrator under subsection (b). .
365.Elimination of 2–FLEET rule
(a)Section 32904 of title 49, United States Code, is amended—
(1)by striking subsection (b); and
(2)by redesignating subsections (c) through (e) as subsections (b) through (d), respectively.
(b)The amendments made by subsection (a) shall apply to model year 2010 and subsequent model years.
<enum>IV</enum><header>Electricity sector</header>
<subtitle id="H62CD9B9E3FDD483AA4E9C89F3D4C5169"><enum>A</enum><header>Tax incentives</header>
<section id="H390ABF6C67D44A079E1246266D743DFD"><enum>401.</enum><header>Extension through 2018 for placing qualified facilities in service for producing renewable electric energy</header>
<subsection id="HAF5055A3A85948C1876082DAEB9E3F5C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45</external-xref> of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended by striking <quote>January 1, 2009</quote> each place it appears and inserting <quote>January 1, 2019</quote>.</text> </subsection>
<subsection id="HE6C94FD837C644E9A6BA4CE0E13D3DE3"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to property originally placed in service on or after January 1, 2009.</text> </subsection></section>
<section id="HDB4DDAAAF27C48FBB561A03EEF3B6236"><enum>402.</enum><header>Extension of energy credit</header>
<subsection id="HF76C5530C0E24B32AD00FA52E88221FB"><enum>(a)</enum><header>In general</header><text>Section 48 of such Code (relating to energy credit) is amended—</text>
<paragraph id="H374A5B2F5C0942A391D0DAA13674C72F"><enum>(1)</enum><text>by striking <quote>January 1, 2009</quote> in both places it appears and inserting <quote>January 1, 1019</quote>, and</text> </paragraph>
<paragraph id="HB2DFAD0CB7134FE1A898490004DBDE00"><enum>(2)</enum><text>by striking <quote>December 31, 2008</quote> in both places it appears and inserting <quote>December 31, 2018</quote>.</text> </paragraph></subsection></section>
<section id="HCD27D998A90C46CBA2EC87243BC4BFC4"><enum>403.</enum><header>Expansion and modification of renewable resource credit</header>
<subsection id="HF13DF2734AAF47BAA3189559D91676D1"><enum>(a)</enum><header>Additional qualified energy resources</header>
<paragraph id="HDBBF806ECF6E49C89E90ACD08FC8D34"><enum>(1)</enum><header>In general</header><text>Section 45(c)(1) of such Code (relating to resources) is amended by striking <quote>and</quote> at the end of subparagraph (F), by striking the period at the end of subparagraph (G), and by adding at the end the following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H1E84D5B6376B4CE7A6A8AEB0CE7D1505" style="OLC">
<subparagraph id="HEE9760817DB24ACFB3C12EDCACAC81A1"><enum>(I)</enum><text>incremental geothermal production, and</text> </subparagraph>
<subparagraph id="HD45E61888C86416890D2DA2F007D9DD0"><enum>(J)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable energy.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H63842557F0394B71ADDEB94476444308"><enum>(2)</enum><header>Definition of resources</header><text>Section 45(c) of such Code is amended by adding at the end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HA5A46161FCFD4712A000EFFF35A3B091" style="OLC">
<paragraph commented="no" id="HCCA34BED6C34450D99FDE85189115D17"><enum>(10)</enum><header>Incremental geothermal production</header>
<subparagraph commented="no" id="HB337DA73C434421A88F7B764644FD17F"><enum>(A)</enum><header>In general</header><text>In the case of an incremental geothermal facility described in subsection (d)(9), the term ‘incremental geothermal production’ means for any taxable year the excess of—</text>
<clause commented="no" id="HF815A3C83954405391311FF0A65DAA0"><enum>(i)</enum><text>the total kilowatt hours of electricity produced from such facility for the taxable year, over</text> </clause>
<clause commented="no" id="H1A123DBAF70C4F69BBDF0055B329F09B"><enum>(ii)</enum><text>the average annual kilowatt hours produced at such facility for 5 of the previous 7 calendar years before the date of the enactment of this paragraph after eliminating the highest and the lowest kilowatt hour production years in such 7-year period.</text> </clause></subparagraph>
<subparagraph commented="no" id="HFB05B6C3568E458397B680C6EA981824"><enum>(B)</enum><header>Special rule</header><text display-inline="yes-display-inline">A facility described in subsection (d)(9) which was placed in service at least 7 years before the date of the enactment of this paragraph 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.</text> </subparagraph></paragraph>
<paragraph id="H8D083A97A2C64CBD8FED73DFC5A4D36C"><enum>(11)</enum><header>Marine and hydrokinetic renewable energy</header>
<subparagraph id="H162FE23784C6454FB91616D8EAAACAE2"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>marine and hydrokinetic renewable energy</term> means energy derived from—</text>
<clause id="HFE7F8C3CDE4E4E32AD00E341D9102C91"><enum>(i)</enum><text display-inline="yes-display-inline">waves, tides, or currents in oceans, estuaries, or tidal areas,</text> </clause>
<clause id="HBD8A661DFD55419A851C8EDECA164472"><enum>(ii)</enum><text>free flowing water in rivers, lakes, or streams,</text> </clause>
<clause id="HE50ED419130A464AB688BFC9994F06AB"><enum>(iii)</enum><text>free flowing water in man-made channels, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or</text> </clause>
<clause id="H3D527A36AD664763B18B33DA8DF078E4"><enum>(iv)</enum><text>differentials in ocean temperature.</text> </clause></subparagraph>
<subparagraph id="H5ED33FD1653143258324ADD9F4BCEBE2"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include any energy which is—</text>
<clause id="H61CAD3158C954F76A5E1491B7C2BA079"><enum>(i)</enum><text display-inline="yes-display-inline">described in subparagraphs (A) through (I) of paragraph (1), or</text> </clause>
<clause id="HE809D6E6694F4889A319B16D69F96FAA"><enum>(ii)</enum><text display-inline="yes-display-inline">derived from any source that utilizes a dam, diversionary structure, or impoundment for electric power production purposes, except as provided in subparagraph (A)(iii).</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H9CE617E5655A469C8579452349FC2113"><enum>(3)</enum><header>Definition of facilities</header><text display-inline="yes-display-inline">Section 45(d) of such Code (relating to qualified facilities) is amended by adding at the end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H77640F7EF8FE4A1EA3E888088EA899E1" style="OLC">
<paragraph commented="no" id="H5FE1917ACFFA4947BCDDD99DEAA5F59"><enum>(11)</enum><header>Incremental geothermal facilities</header><text display-inline="yes-display-inline">In the case of a facility using incremental geothermal to produce electricity, the term <term>qualified facility</term> means any facility owned by the taxpayer which is originally placed in service before the date of the enactment of this paragraph, but only to the extent of its incremental geothermal production. In the case of a qualified facility described in the preceding sentence, the 10-year period referred to in subsection (a) shall be treated as beginning not earlier than such date of enactment. Such term shall not include any property described in section 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under section 48.</text> </paragraph>
<paragraph id="HD2EEC9C5C8744B2DB2003DEFF227DFCE"><enum>(12)</enum><header>Marine and hydrokinetic renewable energy</header><text display-inline="yes-display-inline">In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term <term>qualified facility</term> means any facility owned by the taxpayer which is originally placed in service after the date of the enactment of this paragraph and before January 1, 2019.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H3A618E25BE3245C19D1BE3354BA48D01"><enum>(b)</enum><header>Full credit rate for qualified hydropower facility</header><text>Subparagraph (A) of section 45(b)(4) of such Code is amended by striking <quote>(7), or (9)</quote> and inserting <quote>or (7)</quote>.</text> </subsection>
<subsection id="H46C0ADEBBF564241A276F9321C03D9FF"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to electricity produced and sold in taxable years beginning after the date of the enactment of this Act.</text> </subsection></section>
<section id="H6D80EC8ADF314045AB008EF1ED053965"><enum>404.</enum><header>Energy credit for small wind, small geothermal, small biomass, and small kinetic hydropower</header>
<subsection id="HE63D70D6A251492A98A4B54FDC0005D8"><enum>(a)</enum><header>In general</header>
<paragraph id="H312744FA2E2043EF875D9BCE13269375"><enum>(1)</enum><header>Energy properties</header><text>Subparagraph (A) of section 48(a)(3) of such Code, as amended by this title, is amended by striking <quote>or</quote> at the end of clause (iii), by inserting <quote>or</quote> at the end of clause (iv), and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H8E3C8AD3BB3F428A91BDBD2371641C55" style="OLC">
<clause id="H2C02CCF7E21B4628986B56A8D2C9C3B6"><enum>(v)</enum><text>equipment which uses wind, a geothermal deposit, biomass, or marine and hydrokinetic energy to generate electricity, if such equipment has a nameplate capacity of 2 megawatts or less and the principal consumer of such electricity is the taxpayer,</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H1A53A168888D48179756C31F103EAD80"><enum>(2)</enum><header>Energy percentage</header><text>Subclause (II) of section 48(a)(2)(A)(i) of such Code is amended by striking <quote>paragraph (3)(A)(i)</quote> and inserting <quote>clause (i) or (vi) of paragraph (3)(A)</quote>.</text> </paragraph>
<paragraph id="H8C3267BB8B04465391EF29E3AF88AE07"><enum>(3)</enum><header>Geothermal; biomass; marine and hydrokinetic energy defined</header><text>Section 48 of such Code is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H6ADE3D59AD274049A0177CAD54242CD7" style="OLC">
<subsection id="HA7F7C1C885434E1797F0A3A459B31BD4"><enum>(d)</enum><header>Geothermal; biomass; marine and hydrokinetic energy</header><text>For purposes of this section—</text>
<paragraph id="H1DB6D8640FC444E6A05DE7C8580594BF"><enum>(1)</enum><header>Geothermal</header><text>The term <term>geothermal deposit</term> has the meaning given such term by section 613(e)(2).</text> </paragraph>
<paragraph id="HA09691FE0BD345BCA5AFEA472B73F452"><enum>(2)</enum><header>Biomass</header><text>The term <term>biomass</term> has the meaning given such term by section 45K(c)(3).</text> </paragraph>
<paragraph id="HCF7317D2805649E88E85F4388144AD3B"><enum>(3)</enum><header>Marine and hydrokinetic energy</header><text>The term <term>marine and hydrokinetic energy</term> has the meaning given such term by section 45(c)(11).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H5400088C1B694A4097A0ED3498846BE9"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text> </subsection></section>
<section id="H8321D8C9C64C4A87A6659E2BFF62F2E"><enum>405.</enum><header>Modifications for clean renewable energy bonds</header>
<subsection id="H83A72B2F4325414DAD5EE31B00B5638B"><enum>(a)</enum><header>In general</header>
<paragraph id="H08F25B51239349CF829375F16975AC40"><enum>(1)</enum><header>Increase in limitation and change to annual limit</header><text>Paragraph (1) of section 54(f) of such Code (relating to limitation on amount of bonds designated) is amended by striking <quote>of $1,200,000,000</quote> in subsection (f)(1) and inserting <quote>for each calendar year of $2,000,000,000</quote>—</text> </paragraph>
<paragraph id="H40BF9B5A873F4516BE23ACDAD7411946"><enum>(2)</enum><header>Extension of termination</header><text>Subsection (m) of section 54 (relating to termination) is amended by striking <quote>2008</quote> subsection (m) and inserting <quote>2018</quote>.</text> </paragraph>
<paragraph id="H99D205FCE31547ECA11943E77912F403"><enum>(3)</enum><header>Modification in allocation of national annual bond limitation</header><text>Paragraph (2) of section 54 of such Code is amended—</text>
<subparagraph id="HAE43AAE302444EEFA860411DBFAAFE26"><enum>(A)</enum><text>by striking <quote>may not allocate</quote> and all that follows through the period and inserting <quote>shall allocate—</quote> , and</text> </subparagraph>
<subparagraph id="H221193E973014E949D8CAC1E21EEBCA3"><enum>(B)</enum><text>by adding the end the following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H39209178FEBE4BC18C6CEBF903E72962" style="OLC">
<subparagraph id="H14C507985573475A8DB277A216649F1F"><enum>(A)</enum><text>$1,187,500,000 of the annual national clean renewable energy bond limitation to finance qualified projects of qualified borrowers which are public power entities,</text> </subparagraph>
<subparagraph id="HFF7A1E5AC65B4F53B3B11EBA3CD78700"><enum>(B)</enum><text>$750,000,000 of such limitation to finance qualified projects of qualifiied borrowers which are cooperative electric companies, and</text> </subparagraph>
<subparagraph id="H31FBBA3DDB9F46B1B5874D4E628D9CED"><enum>(C)</enum><text>$62,500,000 of such limitation to finance qualified projects of qualified borrowers which are governmental bodies.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph>
<paragraph id="H572334C066CC4D81B8D3535880A9B668"><enum>(4)</enum><header>Public power entity defined</header><text display-inline="yes-display-inline">Subsection (j) of section 54 of such Code (defining Cooperative electric company; qualified energy tax credit bond lender; governmental body; qualified borrower) is amended—</text>
<subparagraph id="H9078FBA86EAB42A8A4F77D004BCF02AE"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H37483631EA124EC9B6CE0057BE30B773" style="OLC">
<paragraph id="HC0D61532B908440CB32890514F527839"><enum>(4)</enum><header>Public power entity</header><text display-inline="yes-display-inline">The term <term>public power entity</term> means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of enactment of this paragraph).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="HDB86D2B9BD3E4662B076BFC46FF5DDE"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (5), as so redesignated, by striking <quote>or</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, or</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HC1458850D13240DC91C49ECEAC55A5EC" style="OLC">
<subparagraph id="HBC0B8F0D55544357BFC2148C3600A84B"><enum>(D)</enum><text display-inline="yes-display-inline">a public power entity.</text> </subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="H9E0338B3F41F4490AF9EDB89FFF5126E"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (6), as so redesignated, by striking <quote>or</quote> at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting <quote>, or</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HE915FDF83BC844CE8668CBE18F5FFAF8" style="OLC">
<subparagraph id="H2ECD8C0A50DF40DC8B3BED692721A4DC"><enum>(C)</enum><text>a public power entity.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection>
<subsection id="HC42AC7336B3F4B82B0BAA049EF3600E5"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to bonds issued after December 31, 2007.</text> </subsection></section>
<section id="H71E3057E8D054FAA982449C718E45988"><enum>406.</enum><header>Expansion and increase for residential energy efficient property credit</header>
<subsection id="HFF02ABA640D64BB592DAB5D46B4DAA00"><enum>(a)</enum><header>Increase in credit limitation for residential solar property</header><text>Paragraph (1) of section 25D(b) of the Internal Revenue Code (relating to limitations) is amended—</text>
<paragraph id="H43B57A714DF54EF4AB1E28A3D5A37E1E"><enum>(1)</enum><text>by striking <quote>$2,000</quote> in subparagraph (B) and inserting <quote>$4,000</quote>, and</text> </paragraph>
<paragraph id="H54D2875A9C5041F200E93CEF3DE7ADFC"><enum>(2)</enum><text>by striking subparagraph (A) and redesignating subparagraphs (B) and (C) and subparagraphs (A) and (B), respectively.</text> </paragraph></subsection>
<subsection id="H5EF67D455CEB4797ADDCF0C6D0FFD98D"><enum>(b)</enum><header>Inclusion of wind</header>
<paragraph id="H6F9857C8348C43D600B174C5C92D653"><enum>(1)</enum><header>In general</header><text>Subsection (a) of section 25D of such Code (relating to allowance of credit) is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3), and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3F96A2E2671F4D0E8FF38FC091617455" style="OLC">
<paragraph id="HAF67CDB31C084E68B6E73331623385EE"><enum>(4)</enum><text display-inline="yes-display-inline">30 percent of the qualified wind property expenditures made by the taxpayer during such year,</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H110A54AABC25461DA51FC7C8FFBC719"><enum>(2)</enum><header>Definition</header><text>Subsection (d) of section 25D of such Code (relating to definitions) is amended by adding at the end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H873172B16D0E4F28878CA27B5DD0AC14" style="OLC">
<paragraph id="H2DF6D7DAA9D3496BBCD7493DFB20209F"><enum>(4)</enum><header>Qualified wind property expenditures</header><text>The term <term>qualified wind property expenditures</term> means an expenditure for property which uses wind to generate electricity for use in a dwelling unit located in the United States and used as a principal residence (within the meaning of section 121) by the taxpayer.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H1F553FAEF3A44A1E9EC8C4528ED281E0"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2007.</text> </subsection></section>
<section id="H8B6F4C610904417295C99346DAF11FD9"><enum>407.</enum><header>Expansion of renewable resource credit to include thermal energy</header>
<subsection id="HED0FE27E6B2B4647B29C8FD917E9063"><enum>(a)</enum><header>In general</header>
<paragraph id="H3AF97C27989444E6B46F3573F699B1E7"><enum>(1)</enum><header>Production of thermal energy</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(a)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after <quote>electricity</quote> the following: <quote>or each 3,413 British Thermal Units of thermal energy (or fraction thereof)</quote>.</text> </paragraph>
<paragraph id="H99BC02BA495B48E28081E54BDE633D5"><enum>(2)</enum><header>Recycled energy as qualified energy resource</header><text>Paragraph (1) of section 45(c) of such Code, as amended by this Act, is amended by striking <quote>and</quote> at the end of subparagraph (I), by striking the period at the end of subparagraph (J) and inserting <quote>and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H9A7D334AD4FC42928319F9A5186795B" style="OLC">
<subparagraph id="HF47B0CCFE1A942A4B855B81339C3009E"><enum>(K)</enum><text>recycled energy.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H030DBDCAF71A41A098C5863F003FC4DC"><enum>(3)</enum><header>Definition of resource</header><text>Subsection (c) of section 45 of such Code is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H23300C7AC07B473693B06CE48340442D" style="OLC">
<paragraph id="HA1E16088171F4643BF6285A6262B9918"><enum>(12)</enum><header>Recycled energy</header>
<subparagraph id="H2677899A1FD1478A823BE999BD36977"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>recycled energy</term> means electricity or thermal energy derived from combined heat and power, industrial waste heat, or municipal waste heat.</text> </subparagraph>
<subparagraph id="HCB7354C45098456300DD1C7C0052B2BF"><enum>(B)</enum><header>Definitions</header><text>For purposes of this paragraph—</text>
<clause id="H345A74B90D0D4320B6D8B21094B04C66"><enum>(i)</enum><header>Combined heat and power</header><text display-inline="yes-display-inline">The term <term>combined heat and power</term> means a system which uses the same energy source, which may be non-renewable fuel, for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications).</text> </clause>
<clause id="H9B6119A7D83D4E57A100431621983582"><enum>(ii)</enum><header>Industrial waste heat</header><text display-inline="yes-display-inline">The term <term>industrial waste heat</term> means heat which—</text>
<subclause id="HD65D63893402480482FF2249DFD52A7"><enum>(I)</enum><text>is a byproduct of a manufacturing process, and</text> </subclause>
<subclause id="HFF95A310142A48589CBDD992C3158992"><enum>(II)</enum><text>is normally not recovered or used.</text> </subclause></clause>
<clause id="H46CB0B8633934AF10093E8F3753400F4"><enum>(iii)</enum><header>Municipal waste heat</header><text display-inline="yes-display-inline">The term <term>municipal waste heat</term> means heat which—</text>
<subclause id="H75288693AB4541748347E2EB96984B36"><enum>(I)</enum><text>is a byproduct of a municipal sewage treatment or other municipal process, and</text> </subclause>
<subclause id="HA00F5950C74440D5847280F5B3D58169"><enum>(II)</enum><text>is normally not recovered or used.</text> </subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H393D0A842AA54158A8F6D4F15E29D6AC"><enum>(4)</enum><header>Definition of facility</header><text display-inline="yes-display-inline">Subsection (d) of section 45 of such Code is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC68BFA61826D4A5D906E07027E6E63C4" style="OLC">
<paragraph id="H5D53FCF33C53426B9B8500C48DE751F8"><enum>(13)</enum><header>Recycled energy</header>
<subparagraph id="HB72804BE1D4842D195AF88964D44E43"><enum>(A)</enum><header>In general</header><text>In the case of a facility using recycled energy to produce electricity or thermal energy, the term <term>qualified facility</term> means a facility which—</text>
<clause id="H6626B53BB559488A983400445CEEB239"><enum>(i)</enum><text>is a combined heat and power facility, an industrial waste heat facility, or a municipal waste heat facility, and</text> </clause>
<clause id="H848EFE5299444601A48EFC357F01A3F0"><enum>(ii)</enum><text>which is placed in service after the date of the enactment of this paragraph and before January 1, 2014.</text> </clause></subparagraph>
<subparagraph id="H9AC4D6BF68F64413A275DD55AACD1BC6"><enum>(B)</enum><header>Combined heat and power</header><text>For purposes of this paragraph, the term <term>combined heat and power facility</term> means any facility—</text>
<clause id="H84BD19BF16CD490E9B79244710E91868"><enum>(i)</enum><text>owned by the taxpayer,</text> </clause>
<clause id="H90429B5030BC4ACA8E6ED6451C3F1834"><enum>(ii)</enum><text>which produces—</text>
<subclause id="H666102B93C8144DA813C12F908F8C980"><enum>(I)</enum><text display-inline="yes-display-inline">at least 20 percent of its total useful energy in the form of thermal energy, and</text> </subclause>
<subclause id="H4E5FF15E4EC240F79538809E89869E85"><enum>(II)</enum><text display-inline="yes-display-inline">at least 20 percent of its total useful energy in the form of electrical or mechanical power (or a combination thereof), and</text> </subclause></clause>
<clause id="HFE06B41B9D9148DBB11D4F434D858853"><enum>(iii)</enum><text display-inline="yes-display-inline">the energy efficiency percentage of which exceeds 60 percent.</text> </clause></subparagraph>
<subparagraph id="H4CF5BD80B9A34209AD8F90794CC15543"><enum>(C)</enum><header>Industrial waste heat or municipal waste heat</header><text>For purposes of this paragraph, the term <term>industrial waste heat facility</term> means any facility which uses industrial waste heat to produce electricity or thermal energy.</text> </subparagraph>
<subparagraph id="H5150178FF8A54BC081C7DC20E400729"><enum>(D)</enum><header>Municipal waste heat facility</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term municipal waste heat facility means any facility which uses municipal waste heat to produce electricity or thermal energy.</text> </subparagraph>
<subparagraph id="H72FA138BDE604B63B2A75EA2881905ED"><enum>(E)</enum><header>Energy efficiency percentage</header><text>For purposes of subparagraph (B), the term <term>energy efficiency percentage</term>, with respect to a facility, means the percentage determined by dividing—</text>
<clause id="HB615F41E34AC4BB19D8406A06C53DD8E"><enum>(i)</enum><text display-inline="yes-display-inline">the total useful electrical, thermal, and mechanical power, calculated in British Thermal Units, produced by the system at normal operating rates, by</text> </clause>
<clause id="HE50B596BC97D4F02961DC6BE8E7E5286"><enum>(ii)</enum><text display-inline="yes-display-inline">the lower heating value, calculated in British Thermal Units, of the primary fuel source for the system.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H7E6854DCF69B42258847956880358DE0"><enum>(5)</enum><header>Reduced credit</header><text>Subparagraph (A) of section 45(b)(4) of such Code (relating to credit rate and period for electricity produced and sold from certain facilities) is amended—</text>
<subparagraph id="HD45F43738D694D67ACFD5D7517C2FCDF"><enum>(A)</enum><text>by striking <quote>or (7)</quote> inserting <quote>(7), or (13)</quote>, and</text> </subparagraph>
<subparagraph id="HEEA7D7863604487C81B0FCE487CCB500"><enum>(B)</enum><text>by inserting <quote>or thermal energy sold in any calendar year after 2007 at a facility described in subsection (d)(13),</quote> after <quote>subsection (d),</quote>.</text> </subparagraph></paragraph>
<paragraph id="HC1100041D0FB48C9B7813585A70085BA"><enum>(6)</enum><header>Conforming amendments</header>
<subparagraph id="HE613E5EE97C14DCBAF9133F5DD1FB798"><enum>(A)</enum><text display-inline="yes-display-inline">Subsection (a) of section 45 of such Code is amended by inserting <quote>and thermal energy</quote> after <quote>renewable electricity</quote>.</text> </subparagraph>
<subparagraph id="HF85E946FA830428691F390230129F6B"><enum>(B)</enum><text>Paragraph (2) of section 45(c) of such Code is amended by inserting <quote>or thermal energy</quote> after <quote>electricity</quote>.</text> </subparagraph>
<subparagraph id="H9E1E67784ECE411294472229876911B0"><enum>(C)</enum><text>Subsection (d) of section 45 of such Code is amended by inserting <quote>or thermal energy</quote> after <quote>electricity</quote> in each place it appears.</text> </subparagraph>
<subparagraph id="HA4A5A50B2CC44593B052D26F821D2B76"><enum>(D)</enum><text>Subsection (e) of section 45 of such Code is amended by inserting <quote>or thermal energy</quote> after <quote>electricity</quote> each place it appears in paragraphs (1) and (4).</text> </subparagraph>
<subparagraph id="H0B902F67B9E44EAAAF04AB8870B4CEFF"><enum>(E)</enum><text>Paragraph (8) of section 38(b) of such Code is amended by inserting <quote>or thermal energy</quote> after <quote>electricity</quote>.</text> </subparagraph>
<subparagraph id="HAFC4F254F5664EEDBA583700DBD9F1D"><enum>(F)</enum><text>The heading of section 45 of such Code is amended by inserting <quote><header-in-text level="section" style="OLC">or thermal energy</header-in-text></quote> after <quote><header-in-text level="section" style="OLC">Electricity</header-in-text></quote>.</text> </subparagraph>
<subparagraph id="H5892A0FF61E34F38AAECA101DF9D7C93"><enum>(G)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 45 and inserting the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H95C9CBE720BA40CBA7BB6353EFC10014" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45. Electricity or thermal energy produced from certain renewable resources, etc.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection>
<subsection id="HA8AC51CE900C4F04A885097BFDFEF81F"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to electricity or thermal energy produced and sold after the date of the enactment of his Act.</text> </subsection></section></subtitle>
<subtitle id="H6C854E16C1EB486682DF3054B8FDA6EF"><enum>B</enum><header>Promoting energy efficient investments</header>
<section id="H2DE48410BBF743C081202E15BF6BC19"><enum>411.</enum><header>Rate modifications promoting energy efficiency investments</header>
<subsection id="HBB25E45F3A99439F00D7CDBFA4275FA"><enum>(a)</enum><header>Electric utilities</header><text display-inline="yes-display-inline">Section 111(d) of the Public Utility Regulatory Policies Act of 1978 is amended by inserting at the end thereof:</text>
<quoted-block display-inline="no-display-inline" id="H8D76AE86EAED4D2600953F14194E5D08" style="OLC">
<paragraph id="H59B7D2ABA1D14D57B4CEC6969609B24E"><enum>(16)</enum><header>Rate design modifications to promote energy efficiency investments</header>
<subparagraph id="H3FE8C11648CA42FB9CA1C2B328B9AB8E"><enum>(A)</enum><header>In general</header><text>The rates allowed to be charged by any electric utility shall—</text>
<clause id="H94BB3E507D4B484E9291C9EAFBD5211D"><enum>(i)</enum><text>align utility incentives with the delivery of cost-effective energy efficiency; and</text> </clause>
<clause id="HF0CBFCE7843144088C4C1D3E22BAFF71"><enum>(ii)</enum><text>promote energy efficiency investments.</text> </clause></subparagraph>
<subparagraph id="H7707C237F88343FAB2A2D77FA0CF4CF"><enum>(B)</enum><header>Policy options</header><text>In complying with subparagraph (A), each State regulatory authority and each nonregulated utility shall consider—</text>
<clause id="H0C02D419BF4A424BA78BE9500462138"><enum>(i)</enum><text>removing the throughput incentive and other regulatory and management disincentives to energy efficiency;</text> </clause>
<clause id="H78BECB77083D47889ECB83F42E6E47"><enum>(ii)</enum><text>providing utility incentives for the successful management of energy efficiency programs;</text> </clause>
<clause id="H252E26BD61C9493E9F84ECA3E3523F84"><enum>(iii)</enum><text>including the impact on adoption of energy efficiency as 1 of the goals of retail rate design, recognizing that energy efficiency must be balanced with other objectives;</text> </clause>
<clause id="H43DBC90073744267A9C8F509CF83EF92"><enum>(iv)</enum><text>adopting rate designs that encourage energy efficiency for each customer class; and</text> </clause>
<clause id="H0AC4322B7E5740B2B2005792DC363CE4"><enum>(v)</enum><text>allowing timely recovery of energy efficiency-related costs.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H761D3055BA5541E8A879881885B3CD44"><enum>(b)</enum><header>Natural gas utility</header><text>Section 303 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/3203">16 U.S.C. 3203(b)</external-xref>) is amended by adding the following at the end of subsection (b):</text>
<quoted-block display-inline="no-display-inline" id="H554A2F7DFA534C8D88E7009C5CCA93B1" style="OLC">
<paragraph id="HF54B740F94D8491E96244EC1D0781874"><enum>(5)</enum><header>Energy efficiency</header><text display-inline="yes-display-inline">Each natural gas utility shall—</text>
<subparagraph id="H734162D79F854065A9AC91378500CF96"><enum>(A)</enum><text display-inline="yes-display-inline">integrate energy efficiency resources into the plans and planning processes of the natural gas utility; and</text> </subparagraph>
<subparagraph id="H5255E63B99A14FA5A1CEBC55C8BC5E38"><enum>(B)</enum><text display-inline="yes-display-inline">adopt policies that establish energy efficiency as a priority resource in the plans and planning processes of the natural gas utility.</text> </subparagraph></paragraph>
<paragraph id="HD7244A9F76BF4C60ADF2636E93A990B9"><enum>(6)</enum><header>Rate design modifications to promote energy efficiency</header><text display-inline="yes-display-inline">The rates allowed to be charged by a natural gas utility shall align utility incentives with the deployment of cost-effective energy efficiency. In complying with the standard under this paragraph, each State regulatory authority and each nonregulated utility shall consider—</text>
<subparagraph id="HA1490E2CA500489580477F45725CD1A0"><enum>(A)</enum><text display-inline="yes-display-inline">separating fixed-cost revenue recovery from the volume of transportation or sales service provided to the customer;</text> </subparagraph>
<subparagraph id="H32FAA7C44DEA4D44B313B5E003E5FD12"><enum>(B)</enum><text>providing to utilities incentives for the successful management of energy efficiency programs, such as allowing utilities to retain a portion of the cost-reducing benefits accruing from the programs;</text> </subparagraph>
<subparagraph id="H2E910AF78CFD43C5AE9942855D21C657"><enum>(C)</enum><text>promoting the impact on adoption of energy efficiency as 1 of the goals of retail rate design, recognizing that energy efficiency must be balanced with other objectives; and</text> </subparagraph>
<subparagraph id="H3706B03E90DB49B2B75CD720BE1450A0"><enum>(D)</enum><text>adopting rate designs that encourage energy efficiency for each customer class.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H3DCD71A37BAE4E15A36B667035FBB703"><enum>(c)</enum><header>Compliance</header>
<paragraph id="H02EE8DBCF70F430E89585497C7BD1D4D"><enum>(1)</enum><header>Time limitations</header><text display-inline="yes-display-inline">Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(b)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7BEC24392B884171B4947EE2E76277ED" style="OLC">
<paragraph id="H76062F131B264236A31E8CE92098A750"><enum>(6)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H886E2C8842B6404A9F25B17834E2C451"><enum>(A)</enum><text>Not later than 1 year after the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (16) of section 111(d).</text> </subparagraph>
<subparagraph id="H1034183843F24931B8C54BA37685C730" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">Not later than two years after the date of the enactment of the this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to each standard established by paragraph (1) of section 111(d)</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HFA043E9FCA1F4259A1BFB3F9AD49322D"><enum>(2)</enum><header>Failure to comply</header><text display-inline="yes-display-inline">Section 112(d) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(c)</external-xref>) is amended by adding at the end the following: <quote>In the case of the standard established by paragraph (15), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of paragraph (16).</quote>.</text> </paragraph>
<paragraph id="H5AF6741506514271001B50BC6CC578D7"><enum>(3)</enum><header>Prior State action</header>
<subparagraph id="H1D171A473D1C4A54B6E429AA1FFE2373"><enum>(A)</enum><header>In general</header><text>Section 112 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622</external-xref>) is amended by adding at the end the following:</text>
<quoted-block id="H9E7FDB85667548A495CB7D9303EF9811">
<subsection id="HCC5AE980E4BA44E1B6D32C17BCA6DFB"><enum>(f)</enum><header>Prior State Actions</header><text>Subsections (b) and (c) of this section shall not apply to the standard established by paragraph (15) of section 111(d) in the case of any electric utility in a State if, before the enactment of this subsection—</text>
<paragraph id="HE20DD2CD85F04F71BAD3DC5E12FD243"><enum>(1)</enum><text>the State has implemented for such utility the standard concerned (or a comparable standard);</text> </paragraph>
<paragraph id="H993D47A2FDB542AEBA81C4B5D7E7B59D"><enum>(2)</enum><text>the State regulatory authority for such State or relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility; or</text> </paragraph>
<paragraph id="H2FE2F27B3F67476396D218F54CA69545"><enum>(3)</enum><text>the State legislature has voted on the implementation of such standard (or a comparable standard) for such utility.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="H09B68180EEBA4BDD8E69DE0084DCCB2"><enum>(B)</enum><header>Cross reference</header><text>Section 124 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/16/2634">16 U.S.C. 2634</external-xref>) is amended by adding the following at the end thereof: <quote>In the case of each standard established by paragraph (16) of section 111(d), the reference contained in this subsection to the date of enactment of the Act shall be deemed to be a reference to the date of enactment of paragraph (16).</quote>.</text> </subparagraph></paragraph></subsection>
<subsection display-inline="no-display-inline" id="HF3DD76AC8EAA475800ADD9BDE5CD20A6"><enum>(d)</enum><header>Compliance date</header><text>Section 303 of the Public Utility Regulatory Policies Act of 1978 is amended by striking <quote>Not later than 2 years after the date of the enactment of this Act (or after the enactment of the Energy Policy Act of 1992 in the case of standards under paragraphs (3) and (4) of subsection (b))</quote> and inserting <quote>Not later than 2 years after the date of the enactment of the standard concerned</quote>.</text> </subsection>
<subsection id="HC9C5BA9C26694008A7404D8F7FAE35C5"><enum>(e)</enum><header>Prior State actions</header><text display-inline="yes-display-inline">Section 310 of the Public Utility Regulatory Policies Act of 1978 is amended by striking <quote>of this Act</quote> in each place it appears and inserting <quote>the standard under section 303(b)</quote>.</text> </subsection></section>
<section id="H66F0A9E8780B45749BE2B98BEF007C39"><enum>412.</enum><header>Feed-in tariff system study</header>
<subsection id="H7A67B75FF76B4392BDDDC9CCF9D0000"><enum>(a)</enum><header>Study and report</header><text>Not later than 1 year after the date of enactment of this Act, the Lawrence Berkeley National Laboratory shall transmit to Congress a report on the results of a study on feed-in tariff systems, which shall include recommendations for an appropriate pricing structure to best ensure that investors in renewable energy technologies can receive a reasonable return on their investment.</text> </subsection>
<subsection id="H8B782B5128D44D85AC74E42C449B6545"><enum>(b)</enum><header>Definition</header><text>In this section:</text>
<paragraph id="H2B1A119CF7D14CC394DBFF0069E35DF2"><enum>(1)</enum><text>The term <term>feed-in tariff system</term> means a system under which—</text>
<subparagraph id="H2B6CC5BA67A84167B66D497EE9BEBA2B"><enum>(A)</enum><text>renewable energy technologies have priority access to the electricity market; and</text> </subparagraph>
<subparagraph id="HA24113A2486440768031E0BFB6E39DF1"><enum>(B)</enum><text>for a fixed period of time, electric utilities are required to pay predetermined amounts for electric power sold to the utility by producers using renewable energy sources.</text> </subparagraph></paragraph>
<paragraph id="HCAA52CB9841549EA8CB6804FD3F306A5"><enum>(2)</enum><text>The term <term>renewable energy</term> has the meaning given to such term in section 203 of the Energy Policy Act of 2005.</text> </paragraph></subsection>
<subsection id="H3F764195D45D42539803C777D04675E6"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this report.</text> </subsection></section></subtitle>
<subtitle id="H91C8BEA53CFD46B79EF39F024253E5A9"><enum>C</enum><header>National renewable energy zones</header>
<section id="HB2CCBF21FA5A42DDB7D9D8FF43AD746F"><enum>421.</enum><header>New electricity transmission lines designed primarily to carry electricity from renewable energy resources</header><text display-inline="no-display-inline">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.</text> </section>
<section id="HD0421760C1524D449DB6B6ADF8FD102"><enum>422.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Rural Clean Energy Superhighways Act</short-title></quote>.</text> </section>
<section id="H3D6193DDFBB94ED28FCC35154C027421"><enum>423.</enum><header>Findings</header><text display-inline="no-display-inline">The Congress finds that—</text>
<paragraph id="H8359EFAB34594998A91FDA80B128CD03"><enum>(1)</enum><text>electricity produced from renewable resources helps to reduce greenhouse gas emissions, and limits emissions of other pollutants regulated pursuant to the Clean Air Act, enhances national energy security, and provides substantial economic benefits;</text> </paragraph>
<paragraph id="HC4AEB3CB69D745D986C3BE1CE67E57D7"><enum>(2)</enum><text>the potential exists for a far greater percentage of electric production in the United States to be generated through the use of renewable resources than current levels;</text> </paragraph>
<paragraph id="H567DA56DEECC4DB4935E90B18ED96934"><enum>(3)</enum><text>many of the best potential renewable energy resources are located in rural areas far from population centers;</text> </paragraph>
<paragraph id="HD564A058584C4E399B91F5F638118DFD"><enum>(4)</enum><text>the lack of adequate electric transmission capacity is one of the primary obstacles to the development of electric generation facilities fueled by renewable energy resources;</text> </paragraph>
<paragraph id="H1FDA88359EF046A488EBACB6F7D76BE"><enum>(5)</enum><text>the economies of many rural areas would substantially benefit from the increased development of electric generation facilities fueled by renewable energy resources; and</text> </paragraph>
<paragraph id="H062DEE81A3EA4C1AA38F1E51A26C1976"><enum>(6)</enum><text>it is in the national interest for the Federal government to implement policies that will enhance the amount of electric transmission capacity available to take full advantage of renewable energy resources to generate electricity.</text> </paragraph></section>
<section id="HFC5A6ED509F84789BAB2CE643569EF00"><enum>424.</enum><header>National renewable energy zones</header>
<subsection id="HC9EF08F7C82E4662BAC600A6C64DE5A8"><enum>(a)</enum><header>In general</header><text>Title II of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824 et seq.</external-xref>) is amended—</text>
<paragraph id="HD3E1AD87E2E841E3BE872BC71884FCDD"><enum>(1)</enum><text>by inserting before the section heading of section 201 (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824 et seq.</external-xref>) the following:</text>
<quoted-block display-inline="no-display-inline" id="H048E085CB7CB4ED491D3ECF0435837E7" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="subpart">Subtitle A—Regulation of Electric Utility Companies</toc-entry> </toc> <after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HD9FECD7621A046F7B4D686E8348D09D2"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8DB6F2351D5E413C8E0484AD00D161AD" style="OLC">
<subtitle id="HC7F3C24596CA472F920019FA98D4FDF2"><enum>B</enum><header>National Renewable Energy Zones</header>
<section id="HC3A6B4A6C68B4387B382D702501D3262"><enum>231.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="H5DC1104378EA42ECAE99C54DEF38F615"><enum>(1)</enum><text>The term <term>Commission</term> means the Federal Energy Regulatory Commission.</text> </paragraph>
<paragraph id="HE33C50FA58A34BE39557B0E7A402DBD6"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>electricity from renewable energy</term>means electric energy generated from_</text>
<subparagraph id="H1C180452CF29481B87ABE965FD99FEA8"><enum>(A)</enum><text>solar, wind, geothermal or ocean energy;</text> </subparagraph>
<subparagraph id="HA1A7F2D0E96A41FA95C56BCAB7005E99"><enum>(B)</enum><text>biomass (as defined in section 203(a) of the Energy Policy Act of 2005);</text> </subparagraph>
<subparagraph id="H1D6447F67E894EAA8B85911E1B2E3F00"><enum>(C)</enum><text>landfill gas; or</text> </subparagraph>
<subparagraph id="HC8CB3C5086184D58B71B00F5CF106DA4"><enum>(D)</enum><text>incremental hydropower.</text> </subparagraph></paragraph>
<paragraph id="H4A19A06DE1014C27BA25470419A57B89"><enum>(3)</enum><text>The term <term>Federal Power Marketing Administration</term> means any agency or instrumentality of the United States (other than the Tennessee Valley Authority) which sells electric energy.</text> </paragraph>
<paragraph id="H747FCA216E3A48619D5D1EC5E94DA3C8"><enum>(4)</enum><text>The term <term>Federal Transmitting Utility</term> means a Federal Power Marketing Administration that owns or operates electric transmission facilities or the Tennessee Valley Authority.</text> </paragraph>
<paragraph id="HCA56FEFE32A74E86B7C7A21381D97E82"><enum>(5)</enum><text>The term <term>geothermal energy</term> means energy derived from a geothermal deposit (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/613">section 613(e)(2)</external-xref> of the Internal Revenue Code of 1986).</text> </paragraph>
<paragraph id="HD0770CB3E0A14E378BCB586C213334D0"><enum>(6)</enum><text>The term <term>renewable energy trunkline</term> shall mean a radial transmission line at a voltage of 115 kV or above, including all associated transmission facilities and equipment within a National Renewable Energy Zone that is used to deliver electricity from renewable energy to the point where the trunkline connects to a high-voltage electric transmission facility, including any modifications, additions or upgrades to such facilities and equipment. A renewable energy trunkline shall not include network upgrades.</text> </paragraph>
<paragraph id="H8B2D53354D6442F78DFF43CDB392E78D"><enum>(7)</enum><text>The term <term>high-voltage electric transmission facility</term> means those electric facilities with a capability in excess of 200 kilovolts.</text> </paragraph>
<paragraph id="H9B3D0A86AA7D4B0BB5B863E1C080FE78"><enum>(8)</enum><text>The term <term>network upgrades</term> shall mean the additions or modifications to the transmission provider’s high-voltage transmission system other than renewable energy trunkline facilities.</text> </paragraph>
<paragraph id="HAB1A9A838D4746549558F79C007E5F8C"><enum>(9)</enum><text>The term <term>President</term> means the President of the United States.</text> </paragraph>
<paragraph id="HB5FDDFE5328E41688D1DD8D73DCCACBE"><enum>(10)</enum><text>The term <term>Indian lands</term> means—</text>
<subparagraph id="HE9E4775630304B32A75D0022B25E26D5"><enum>(A)</enum><text>any land within the limits of any Indian reservation, pueblo or Rancheria,</text> </subparagraph>
<subparagraph id="HD73A36E1BD1F4D039FF4B53D0889CA9B"><enum>(B)</enum><text>any land not within the limits of any Indian reservation, pueblo or Rancheria title to which was on the date of passage of this Act either held in trust by the United States for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to restriction by the United States against alienation,</text> </subparagraph>
<subparagraph id="HBCBD2442EA614CCA88DFD82681B3C0E0"><enum>(C)</enum><text>any dependent Indian community, and</text> </subparagraph>
<subparagraph id="H91B027D8B6D9440C88E2E6C478158ED2"><enum>(D)</enum><text>any land conveyed to any Alaska Native corporation under the Alaska Native Claims Settlement Act.</text> </subparagraph></paragraph>
<paragraph id="H33AFC8F96D474C14951954A88B1EDEBE"><enum>(11)</enum><text>The term <term>electricity consuming area</term> means the area within which electricity from renewable energy would be consumed if new high-voltage electric transmission facilities were to be constructed to deliver electricity from renewable energy generated in a National Renewable Energy Zone.</text> </paragraph></section>
<section id="H9129A571FB2742588D59AF020403B79D"><enum>232.</enum><header>Designation of National Renewable Energy Zones</header>
<subsection id="H4C776AD8426849F4B0ECE61E64ADF2E2"><enum>(a)</enum><header>Designation</header><text>Within six months after the date of enactment of this Act, the President or the President’s designee shall designate as a National Renewable Energy Zone each area that meets each of the following conditions:</text>
<paragraph id="H85343EC7797E420E86B59424C802E9BA"><enum>(1)</enum><text>The potential to generate in excess of one gigawatt of electricity from renewable energy without having a material detrimental impact on reliability.</text> </paragraph>
<paragraph id="H27BC04E809014DA39EC234BFD2F436F"><enum>(2)</enum><text>An insufficient level of electric transmission capacity to achieve the potential identified pursuant to paragraph (1).</text> </paragraph>
<paragraph id="H0F6222D4C188434294BFEB3359C7889"><enum>(3)</enum><text>Access, for renewable energy to be generated in the National Renewable Energy Zone, to one or more electricity consuming areas if there were a sufficient level of transmission capacity.</text> </paragraph></subsection>
<subsection id="HEF61DF4D087D407D9E9DFF23CC2DFEF3"><enum>(b)</enum><header>Factors</header><text>In making the designations required by subsection (a), the Secretary take into account the following:</text>
<paragraph id="HE6E1FB444F6B4D7D98DA583B5E3F593C"><enum>(1)</enum><text>State and Federal requirements for utilities to incorporate renewable energy as part of serving load; and</text> </paragraph>
<paragraph id="H5895DA2D38984A94905848B81E24B2E2"><enum>(2)</enum><text>The impact of electric transmission facility development on the aesthetic and environmental values of land contained in an area eligible for National Renewable Energy Zone designation.</text> </paragraph></subsection>
<subsection id="HE722B504D8C14A0B86961D50AD31B265"><enum>(c)</enum><header>Additional facilities</header><text>Within six months of the designation of a National Renewable Energy Zone, the President or the President’s designee shall identify, and provide public notice of, specific additional high-voltage electric transmission facilities and other nontransmission alternatives required to substantially increase the generation of electricity from renewable energy within each National Renewable Energy Zone.</text> </subsection>
<subsection id="H89A7CEF5833D409EA6FFA100A294EFAC"><enum>(d)</enum><header>Public views</header><text>Before designating an area as a National Renewable Energy Zone, the President or the President’s designee shall afford each affected State, Indian Tribe and other interested persons a reasonable opportunity to present their views and recommendations before a designation shall be effective.</text> </subsection>
<subsection id="H22382C14CDD84D6395597ED22475B157"><enum>(e)</enum><header>Expansion</header><text>The President or the President’s designee shall every three years after the date of enactment consider whether to expand an existing National Renewable Energy Zone or designate a new National Renewable Energy Zone pursuant to the criteria set forth in subsection (a).</text> </subsection></section>
<section id="HCF90D298DC2A424CBF3D1992C4145592"><enum>233.</enum><header>Encouraging clean energy superhighway development in National Renewable Energy Zones</header>
<subsection id="HDAB6F9D5D3024D21B1F3B30089A8681B"><enum>(a)</enum><header>Cost recovery</header>
<paragraph commented="no" display-inline="yes-display-inline" id="H5B9E31B677E241E9893B688FD309B23"><enum>(1)</enum><text>The Commission shall issue and enforce such regulations as are necessary to ensure that a public utility transmission provider that finances transmission capacity to transmit electricity from renewable energy from a National Renewable Energy Zone to an electricity consuming area after the date of enactment of this subtitle recovers through its rates for transmission service all costs and a reasonable return on equity associated with the construction and operation of such new transmission capacity.</text> </paragraph>
<paragraph id="H08089653ED2A418484000703CA006E00" indent="up1"><enum>(2)</enum><text>A regulation under paragraph (1) shall be enforceable in accordance with the provisions of law applicable to enforcement of regulations under this Act.</text> </paragraph></subsection>
<subsection id="H09F00875E9DD4A939B58FA6BF5D6F514"><enum>(b)</enum><header>Alternative transmission financing mechanism</header><text>The Commission shall permit a renewable energy trunkline built by a public utility transmission provider in a National Renewable Energy Zone to, in advance of generation interconnection requests, be initially funded through a transmission charge imposed upon all transmission customers of the transmission provider or, if the renewable energy trunkline is built in an area served by a regional transmission organization or independent system operator, all of the transmission customers of such transmission operator, if the Commission makes each of the following findings:</text>
<paragraph id="H219A032E82A64D2EA5ECF660295D0078"><enum>(1)</enum><text>The renewable energy resources that would utilize the renewable energy trunkline are remote from the grid and load centers.</text> </paragraph>
<paragraph id="H630DDD27BBC24AE5ABBC02A88071CC22"><enum>(2)</enum><text>The renewable energy trunkline will likely result in multiple individual renewable energy electric generation projects being developed by multiple competing developers. The renewable energy trunkline has at least one project subscribed through an executed generation interconnection agreement with the transmission provider and has tangible demonstration of additional interest.</text> </paragraph></subsection><continuation-text continuation-text-level="section">As new electric generation projects are constructed and interconnected to the renewable energy trunkline, the transmission services contract holder for such generation project will, on a going forward basis, pay a pro-rata share of the renewable energy trunkline facility's costs, thus reducing the effect on the rates of customers of the public utility transmission provider.</continuation-text></section></subtitle><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H04A6B0876BEE4AA4BB578226677D07A4"><enum>(b)</enum><header>Transmission cost allocation</header><text display-inline="yes-display-inline">Section 206 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824e">16 U.S.C. 824e</external-xref>) is amended by adding the following new subsection at the end thereof:</text>
<quoted-block display-inline="no-display-inline" id="HB13126AED0DC455084AF5527D3443D0" style="OLC">
<subsection id="H94ABB735083146E3B6D6E5C000CFD3C2"><enum>(e)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H699B2242288643D7BFDAF3C191A844B4"><enum>(1)</enum><text>Within six months of the date the President designates an area as a National Renewable Energy Zone, the State utility commissions or other appropriate bodies having jurisdiction over the public utilities providing service in the National Renewable Energy Zone or an adjacent electricity consuming area may jointly propose to the Commission a cost allocation plan for high-voltage electric transmission facilities built by a public utility transmission provider that would serve the electricity consuming area.</text> </paragraph>
<paragraph id="HCCDCA57860D94E519F73AE093DA1447" indent="up1"><enum>(2)</enum><text>The Commission may approve the plan proposed by the States pursuant to paragraph (1) if, taking into account the users of the transmission facilities, the plan will result in rates that are just and reasonable and not unduly discriminatory or preferential and the plan would not unduly inhibit the development of renewable energy electric generation projects.</text> </paragraph>
<paragraph id="H1B3C326100364597BFCCF35FF0B5AC93" indent="up1"><enum>(3)</enum><text>Unless a plan has been approved by the Commission pursuant to paragraph (2), the Commission shall fairly allocate the costs of new high-voltage electric transmission facilities built in the area by one or more public utility transmission providers (recognizing the national and regional benefits associated with increased access to electricity from renewable energy) pursuant to a rolled-in transmission charge. nothing in this subsection shall expand, directly or indirectly, the jurisdiction of the Commission with respect to any Federal Transmitting Utility.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H2C8FB2E984C449C48CFCF3B08E70000"><enum>(c)</enum><header>Federal transmitting utilities</header>
<paragraph commented="no" display-inline="yes-display-inline" id="H6BF8830B5FEF4400B54870005FED9D98"><enum>(1)</enum><text>If no privately or publicly funded entity commits within one year of the identification required in section 232(c) of the Federal Power Act to finance (either on its own or through a third party financing arrangement with a Federal Transmitting Utility) a high-voltage electric transmission facility identified in such notice, a Federal Transmitting Utility shall finance the construction of the high-voltage electric transmission facility and operate and maintain such facility if the Federal Transmitting Utility determines—</text>
<subparagraph id="HC9AA09B6FFF941389ECFD8E1EC33F749"><enum>(A)</enum><text>the facility would be located within the area in which the Federal Transmitting Utility is statutorily authorized to construct transmission facilities;</text> </subparagraph>
<subparagraph id="H9D71BF4280B54B35A1FC00EEDE9301CC"><enum>(B)</enum><text>the facility may be constructed and operated without having a material detrimental impact on reliability; and</text> </subparagraph>
<subparagraph id="HE52A16F8E26F4FE4951D00BE34E900B4"><enum>(C)</enum><text>equally effective nontransmission options are unavailable.</text> </subparagraph></paragraph>
<paragraph id="H48F9EFE9ABF04D7FA78C1561869C2CA9" indent="up1"><enum>(2)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H1428064519C849158100ED9DFC00E875"><enum>(A)</enum><text>Subject to the availability of appropriated funds, the Department of Energy is authorized to issue and sell bonds, notes, and other evidence of indebtedness to the Secretary of Treasury from time to time in an amount not to exceed $10,000,000,000 outstanding at any one time. The Department of Energy shall deposit the amounts raised pursuant to this subsection to a Transmission Fund, which shall be located in the U.S. Treasury.</text> </subparagraph>
<subparagraph id="HF25248BA32924D4DB73DA6E9304F7948" indent="up1"><enum>(B)</enum><text>Amounts deposited in the Transmission Fund shall be available without further appropriation or fiscal year limitation to a Federal Transmitting Utility to fund the construction, operation and maintenance of high-voltage electric transmission facilities authorized by subsection (1). Except as specified in subparagraph (C), amounts used for construction, operation and maintenance shall be recovered by the Federal Transmitting Utility and repaid to the Transmission Fund over a period of 50 years.</text> </subparagraph>
<subparagraph id="H222ECC34320C41729267B69D61126495" indent="up1"><enum>(C)</enum><text>If a Federal Transmitting Utility determines that revenue from users of the high-voltage electric transmission facility may not be sufficient to recover its costs over time, it may set a transmission rate for its use separate from rates charged for the use of the Federal Transmitting Utility’s other transmission facilities. In such event, power and transmission customers of the Federal Transmitting Utility shall not be liable for the costs of the high-voltage transmission facility except for the amount of transmission capacity such customers utilize as determined by each Federal Transmitting Utility. Any amounts that cannot be so recovered from such separate rate over a period of 50 years shall not be required to be repaid by the Federal Transmitting Utility to the Transmission Fund in the United States Treasury.</text> </subparagraph></paragraph>
<paragraph id="H7941274403FC4BD2832E607CADCA841" indent="up1"><enum>(3)</enum><text>The regulations promulgated pursuant to this Act shall, to the maximum extent practicable, ensure that not less than 75 percent of the capacity of any high-voltage electric transmission line constructed by a Federal transmitting utility pursuant to this section is used for electricity from renewable energy.</text> </paragraph></subsection></section>
<section id="HAC4E846FB52945EBB8CA91E4A60050EC"><enum>425.</enum><header>Federal Power Marketing Administrations and TVA</header>
<subsection id="H2F7853EAC3B64259ACFEF172E6C1EAEB"><enum>(a)</enum><header>Promotion of renewable energy and energy efficiency</header><text>The Western Area Power Administration, the Southeastern Area Power Administration, the Southwestern Area Power Administration and the Tennessee Valley Authority shall each identify and, to the extent economically feasible and not inconsistent with other statutory obligations, take steps to promote energy conservation and renewable energy electric resource development in the regions served by such utility.</text> </subsection>
<subsection id="H1B4901D6E52340E0B1F35F5ED3D7F95"><enum>(b)</enum><header>Acquisition of renewable energy and renewable energy credits</header><text>Each Federal Power Marketing Administration and the Tennessee Valley Authority may, subject to advance payment arrangements by the Federal Government being in place that assure the Federal Power Marketing Administration is held financially harmless for its actions pursuant to this section, use its purchasing power to acquire on behalf of the Federal government electricity from renewable energy and renewable energy credits in sufficient amounts to meet the requirements of section 203 of the Energy Policy Act of 2005. The Federal agencies on behalf of which a Federal Power Marketing Administration or the Tennessee Valley Authority acquires renewable energy or renewable energy credits shall fully reimburse the Federal Power Marketing Administration or the Tennessee Valley Authority for such transactions.</text> </subsection>
<subsection id="H670FAAA9F04045C383BAB9F62DB56555"><enum>(c)</enum><header>Tribal renewable energy</header><text>Each Federal Power Marketing Administration and the Tennessee Valley Authority shall identify opportunities for promoting the development of facilities generating electricity from renewable energy on Indian lands.</text> </subsection>
<subsection id="H5FDEE9C1C33C49059FCAADD51E363D65"><enum>(d)</enum><header>Nonreimbursable funds</header><text>The amounts expended by a Federal Power Marketing Administration or the Tennessee Valley Authority pursuant to this section shall not be subject to reimbursement by the customers of such utility.</text> </subsection></section>
<section id="HB9EA380511B344F0B6BEE04D7E349321"><enum>426.</enum><header>Consistency with environmental laws</header><text display-inline="no-display-inline">Nothing in this Act shall be deemed to waive any existing Federal or State environmental protection provision, including the requirements of—</text>
<paragraph id="H9D10A381EA194BC786EE154D22E17274"><enum>(1)</enum><text>the National Forest Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/16/472a">16 U.S.C. 472a et seq.</external-xref>);</text> </paragraph>
<paragraph id="H9706CB46128E49A480AC4A11CA96F00"><enum>(2)</enum><text>the Endangered Species Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/16/1531">16 U.S.C. 1531 et seq.</external-xref>);</text> </paragraph>
<paragraph id="H3121F9A2A0C04A90A0CDAF23E4139A1"><enum>(3)</enum><text>the National Environmental Policy Act of 1969 (42 U.S.C. 4231 et. seq.);</text> </paragraph>
<paragraph id="HB1D8763AF0A1411A9700C19F19326D5B"><enum>(4)</enum><text>the Federal Water Pollution Control Act of 1969 (33 U.S.C. 1251 et . seq.); and</text> </paragraph>
<paragraph id="H0B71725028CE422A9909F1F72F002800"><enum>(5)</enum><text>the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1701">43 U.S.C. 1701 et seq.</external-xref>).</text> </paragraph></section></subtitle>
<subtitle id="H61DEF72E7A3945CB9B17C54FD43235C2"><enum>D</enum><header>Net metering</header>
<section commented="no" id="HB1939049645A484290813DA85BF6B85C" section-type="subsequent-section"><enum>431.</enum><header>Establishing minimum net metering and interconnection standards</header>
<subsection commented="no" id="H122923B1F0E3418494602B3B673F36F2"><enum>(a)</enum><header>Findings</header><text>The Congress finds that it is in the public interest to:</text>
<paragraph commented="no" id="H627E6B13F70F41538B6E5BACDF775C06"><enum>(1)</enum><text>Enable small businesses, residences, schools, churches, farms with small electric generation units, and other retail electric customers who generate electric energy to return or sell surplus electric energy on the open market.</text> </paragraph>
<paragraph commented="no" id="H8E74CB69FB744A0DA5EC010008FDEA1"><enum>(2)</enum><text>Encourage private investment in renewable and alternate energy resources.</text> </paragraph>
<paragraph commented="no" id="H33B55FDE06474BA994B2A7F20095029C"><enum>(3)</enum><text>Stimulate the economic growth.</text> </paragraph>
<paragraph commented="no" id="HA239E80363354FFAB3A54163D98D62AB"><enum>(4)</enum><text>Enhance the continued diversification section of energy resources used in the United States.</text> </paragraph>
<paragraph commented="no" id="HDBEE4FA9508545B18C4F7CDE5376EC8"><enum>(5)</enum><text>Remove regulatory barriers for net metering.</text> </paragraph></subsection>
<subsection commented="no" id="HA96711452F7248A59B194DC051DB22DB"><enum>(b)</enum><header>Net metering and interconnection standards</header><text>Section 113 of the Public Utility Regulatory Policies Act of 1978 is amended by adding the following new subsections at the end thereof:</text>
<quoted-block id="H82789295B04843E4BBF1E524709B600" style="OLC">
<subsection commented="no" id="H08155317CC2644BFB5C8D9A8008FA51"><enum>(d)</enum><header>Net metering</header>
<paragraph commented="no" id="HC6355DFF117E4000A1E05C031EC261"><enum>(1)</enum><header>Definitions</header><text>As used in this subsection:</text>
<subparagraph commented="no" id="H495BD5FC771E4043A07E836106C173D8"><enum>(A)</enum><text>The term <term>customer-generator</term> means the owner or operator of a qualified generation unit.</text> </subparagraph>
<subparagraph commented="no" id="H349F6F1D6F0146C1A649D15CE4CE4F68"><enum>(B)</enum><text display-inline="yes-display-inline">The term <term>net metering</term> means measuring the difference between the electricity supplied to a customer-generator and the electricity generated by a customer-generator that is delivered to a local distribution section system at the same point of interconnection during an applicable billing period and providing an energy credit to a customer-generator in the form of a kilowatt-hour credit for each kilowatt-hour of energy produced by a customer-generator from a qualified generation unit.</text> </subparagraph>
<subparagraph commented="no" id="H3FE61EF8CBEB4FB394649B461D2CF9B"><enum>(C)</enum><text>The term <term>qualified generation unit</term> means an electric energy generation unit that meets each of the following requirements:</text>
<clause commented="no" id="H0B7222A7457247C6BCD3A4F47DBA6B86"><enum>(i)</enum><text display-inline="yes-display-inline">The unit is a fuel cell or uses as its energy source either solar, wind, biomass, geothermal, anaerobic digestion or landfill gas, or a combination of the foregoing.</text> </clause>
<clause commented="no" id="HE64C0454319F459FB3DDD799A8CBEAC1"><enum>(ii)</enum><text>The unit has a generating capacity of not more than 1,000 kilowatts.</text> </clause>
<clause commented="no" id="HD1BE6453D2B94147A4C737E136DB7B0"><enum>(iii)</enum><text>The unit is located on premises that are owned, operated, leased, or otherwise controlled by the customer-generator.</text> </clause>
<clause commented="no" id="HA4BE51BE48054213B47C9987D7F286ED"><enum>(iv)</enum><text>The unit operates in parallel with the retail electric supplier.</text> </clause>
<clause commented="no" id="H1031F9B4D4A64840B6E3AEC7A7333E46"><enum>(v)</enum><text>The unit is intended primarily to offset part or all of the customer-generator’s requirements for electric energy.</text> </clause></subparagraph>
<subparagraph commented="no" id="H7E5F32FB99554229872441B678FD26DC"><enum>(D)</enum><text>The term <term>retail electric supplier</term> means any electric utility that sells electric energy to the ultimate consumer thereof.</text> </subparagraph>
<subparagraph commented="no" id="HB371B925F5A5485EA035CEDBCFCB1B00"><enum>(E)</enum><text>The term <term>local distribution system</term> means any system for the distribution section of electric energy to the ultimate consumer thereof, whether or not the owner or operator of such system is also a retail electric supplier.</text> </subparagraph></paragraph>
<paragraph commented="no" id="H04101141A49F4D90857B92D808E00EC"><enum>(2)</enum><header>Adoption</header><text display-inline="yes-display-inline">Not later than one year after the enactment of this subsection, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall provide public notice and conduct a hearing respecting the standards established by paragraph (3) and, on the basis of such hearing, shall adopt such standard.</text> </paragraph>
<paragraph commented="no" id="HE47AAE318D4041EA9477CCAF526E8E30"><enum>(3)</enum><header>Establishment of net metering standard</header><text>Each retail electric supplier shall offer to arrange (either directly or through a local distribution company or other third party) to make net metering available, on a first-come-first-served basis, to each of its retail customers in accordance with the provisions of this subsection and each of the following requirements:</text>
<subparagraph commented="no" id="H5784D6F312784E6BBC385001FC11E34"><enum>(A)</enum><text>Rates and charges and contract terms and conditions for the sale of electric energy to customer-generators shall be the same as the rates and charges and contract terms and conditions that would be applicable if the customer-generator did not own or operate a qualified generation unit and use a net metering system.</text> </subparagraph>
<subparagraph commented="no" id="H83F3FC3D942443CDB966EB5BB8A897E0"><enum>(B)</enum><text display-inline="yes-display-inline">Each retail electric supplier shall notify all of its retail customers of the standard established under this paragraph upon adoption of such standard.</text> </subparagraph></paragraph>
<paragraph commented="no" id="H012DE7EFD75D4EA79E3ED54CDD9712DC"><enum>(4)</enum><header>Net energy measurement</header><text display-inline="yes-display-inline">Each retail electric supplier shall arrange to provide to customer-generators who qualify for net metering under subsection (b) an electrical energy meter capable of net metering and measuring the flow of electricity either to or from the customer and using a single meter and single register, except where it is not practical to do so. Where it is not practical to provide the meter to the customer-generator, the retail electric supplier (either directly or through a local distribution company or other third party) shall, at its own expense, install one or more of such electric energy meters for the customer-generator concerned.</text> </paragraph>
<paragraph commented="no" id="HCA181427021444189E921221F5D4513"><enum>(5)</enum><header>Billing</header><text display-inline="yes-display-inline">Each retail electric supplier subject to subsection (b) shall calculate the electric energy consumption for a customer using a net metering system in the following manner:</text>
<subparagraph commented="no" id="H69DE40E765C54D49A961BDE35264D54"><enum>(A)</enum><text display-inline="yes-display-inline">The retail electric supplier shall measure the net electricity produced or consumed during the billing period using the metering installed as provided in paragraph (4).</text> </subparagraph>
<subparagraph commented="no" id="H635A15DFFEEF4082867D54C5FBB0053"><enum>(B)</enum><text display-inline="yes-display-inline">If the electricity supplied by the retail electric supplier exceeds the electricity generated by the customer-generator during the billing period, the customer-generator shall be billed for the net electric energy supplied by the retail electric supplier in accordance with normal billing practices</text> </subparagraph>
<subparagraph commented="no" id="H2F383659F8C44BA1AD05679460033E35"><enum>(C)</enum>
<clause commented="no" display-inline="yes-display-inline" id="HF3A0DFF8F2CD4C6EAFDCDD3D987E9E13"><enum>(i)</enum><text display-inline="yes-display-inline">If electric energy generated by the customer-generator exceeds the electric energy supplied by the retail electric supplier, the customer-generator shall be billed for the appropriate customer charges for that billing period and credited for the excess electric energy generated during the billing period, with this credit appearing as a kilowatt-hour credit on the bill for the following billing period. The kilowatt-hour credits shall be applied to customer-generator electric energy consumption on the following billing period bill (except for a billing period that ends in the next calendar year). At the beginning of each calendar year, any remaining unused kilowatt-hour credits shall be extinguished.</text> </clause>
<clause commented="no" id="H3041E99B022047909771739D776BCD24" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">Except as provided in this clause, if the customer-generator is using a meter and retail billing arrangement that has time differentiated rates, (a <quote>time-of-use meter</quote>), the kilowatt-hour credit shall be based on the ratio representing the difference in retail rates for each time of use rate or the credits shall be shown on the customer-generator’s bill as a monetary credit reflecting retail rates at the time of generation of the electric energy by the customer-generator. Notwithstanding the standard established under section 11(d)(14), the supplier may require, at the supplier’s option, the customer-generator with net metering to take electric service under a non-time differentiated energy rate tariff or service that it offers to customers in the same rate class as the customer-generator.</text> </clause></subparagraph></paragraph>
<paragraph commented="no" id="H9F4A7ED130DD4234B6721BBE51DE92BC"><enum>(6)</enum><header>Percent limitations</header>
<subparagraph commented="no" id="H3100B71733AC43C9886C365E1CE847FE"><enum>(A)</enum><header>Two percent limitation</header><text display-inline="yes-display-inline">The standard established under this subsection shall not apply for a calendar year in the case of a customer-generator served by a local distribution company when the total generating capacity of all customer-generators with net metering systems served by that local distribution company in that calendar year is equal to or in excess of 2 percent of the capacity necessary to meet the local distribution company’s average forecasted aggregate customer peak demand for that calendar year.</text> </subparagraph>
<subparagraph commented="no" id="HC5C0E196AE4447F780AF93348CA8EBB"><enum>(B)</enum><header>One percent limitation</header><text display-inline="yes-display-inline">The standard established under this subsection shall not apply for a calendar year in the case of a customer-generator served by a local distribution company when the total generating capacity of all customer-generators with net metering systems served by that local distribution company in that calendar year using a single type of qualified generation units (as listed in paragraph (1)(C)(i)) is equal to or in excess of 1 percent of the capacity necessary to meet the company’s average forecasted aggregate customer peak demand for that calendar year.</text> </subparagraph>
<subparagraph commented="no" id="HDCDB25478216473A82EF39C159FBA5B"><enum>(C)</enum><header>Records and notice</header><text display-inline="yes-display-inline">- Each retail electric supplier shall maintain, and make available to the public, records of the total generating capacity of customer-generators of such system that are using net metering, the type of generating systems and energy source used by the electric generating systems used by such customer-generators. Each such retail electric supplier shall notify the State regulatory authority and the Federal Energy Regulatory Commission when the total generating capacity of such customer-generators is equal to or in excess of the limitations set forth in subparagraph (B).</text> </subparagraph></paragraph>
<paragraph commented="no" id="H5B3B8509DD8C47B5B0C2D98A07C5F62"><enum>(7)</enum><header>Ownership of credits</header><text display-inline="yes-display-inline">For purposes of Federal and State laws providing renewable energy credits or greenhouse gas credits, the customer-generator with a qualified generating unit and net metering shall be treated as owning and having title to the renewable energy attributes, renewable energy credits and greenhouse gas emission credits related to any electricity produced by the qualified generating unit. No retail electric supplier shall claim title to or ownership of any renewable energy attributes, renewable energy credits or greenhouse gas emission credits of the customer-generator as a result of interconnecting the customer-generator or providing or offering the customer-generator net metering.</text> </paragraph>
<paragraph commented="no" id="H9DD6A47D5E824336938C201BE45788B2"><enum>(8)</enum><header>Safety and performance standards</header>
<subparagraph commented="no" display-inline="yes-display-inline" id="HBF0F94592C34411EA4F4195B4108B689"><enum>(A)</enum><text>A qualified generation unit and net metering system used by a customer-generator shall meet all applicable safety and performance and reliability standards established by the national electrical code, the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, or the American National Standards Institute.</text> </subparagraph>
<subparagraph commented="no" id="H860940B613674F9A94F84F2355EA224" indent="up1"><enum>(B)</enum><text>The Commission shall, after consultation with State regulatory authorities and nonregulated local distribution systems and after notice and opportunity for comment, prohibit by regulation the imposition of additional charges by electric suppliers and local distribution systems for equipment or services for safety or performance that are additional to those necessary to meet the standards and requirements referred to in subparagraph (A) of this paragraph and subsection (e) of this section (relating to interconnection).</text> </subparagraph></paragraph>
<paragraph commented="no" id="HF875C025F15047F600F2E5E53026CBE8"><enum>(9)</enum><header>Determination of compliance</header><text display-inline="yes-display-inline">Any State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility may apply to the Commission for a determination that any State net metering requirement or regulations complies with the requirements of this subsection. In the absence of such a determination, the Commission, on its own motion or pursuant to the petition of any interested person, may, after notice and opportunity for a hearing on the record, issue an order requiring against any retail electric supplier or local distribution company, or both, to require compliance with this subsection. Any person who violates any requirement of this subsection or any order of the Commission under this subsection shall be subject to civil penalties in the amount of $10,000 for each day that such violation continues. Such penalties may be assessed by the Commission, after notice and opportunity for hearing, in the same manner as penalties are assessed under section 31(d) of the Federal Power Act.</text> </paragraph></subsection>
<subsection commented="no" id="H3041C2512CEC46238900EEDEAAEF8B7F"><enum>(e)</enum><header>Interconnection standards</header>
<paragraph commented="no" id="H4357953F2AB2425AB6239800E41A08E"><enum>(1)</enum><header>Definitions</header><text>For purposes of this subsection, the terms defined in subsection (d) shall apply.</text> </paragraph>
<paragraph commented="no" id="HDE9F21745C4748218899246C13E3AAED"><enum>(2)</enum><header>Model standards</header>
<subparagraph commented="no" display-inline="yes-display-inline" id="HE8F2C561000B465D9813A790DE6DA300"><enum>(A)</enum><text display-inline="yes-display-inline">Within one year after the enactment of this subsection the Commission shall publish model standards for the physical connection between local distribution systems and qualified generation units and electric generation units that meet the requirements of subsection (d)(1)(C) other than clause (ii) thereof and that do not exceed 20,000 kilowatts of capacity. Such model standards shall be designed to encourage the use of qualified generation units and to ensure the safety and reliability of such units and the local distribution systems interconnected with such units.</text> </subparagraph>
<subparagraph commented="no" id="HC3D6E5B21E2441B6B0641998B1725690" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The model standards shall have two separate expedited procedures for interconnecting qualified generation units up to 15 kilowatts and a separate standard that expedites interconnection for qualified generation units up to 2000 kilowatts. Such expedited procedures shall be based on those best practices among the States that have adopted interconnection standards. In designing such expedited procedures, the Commission shall consider Interstate Renewable Energy Council Model Rule MR–I2005.</text> </subparagraph>
<subparagraph commented="no" id="HC38F4307FA5E40C192B9854EBE5BD048" indent="up1"><enum>(C)</enum><text>Within 2 years after the enactment of this subsection, each State shall adopt the model standards published under this paragraph, with or without modification, and submit such standards to the Commission for approval. The Commission shall approve a modification of the model standards only if the Commission determines that such modification is consistent with or superior to the purpose of such standards and is required by reason of local conditions.</text> </subparagraph>
<subparagraph commented="no" id="H276C78E90AEE41D8B28BCE9CAC54396D" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">If standards have not been approved under this paragraph by the Commission for any State within 2 years after the enactment of this subsection, the Commission shall, by rule or order, enforce the Commission's model standards in such State until such time as State standards are approved by the Commission.</text> </subparagraph>
<subparagraph commented="no" id="HB3A198F3B150479CAB94BB447C00E78F" indent="up1"><enum>(E)</enum><text display-inline="yes-display-inline">Within two years after the enactment of this subsection, and after notice and opportunity for comment, the Commission shall publish an update of such model standards, considering changes in the underlying standards and technologies. Such updates shall be made available to State regulatory authorities for their consideration.</text> </subparagraph></paragraph>
<paragraph commented="no" id="HA7B5968DED854509820040AB81BF1793"><enum>(3)</enum><header>Safety, reliability, performance, and cost</header><text display-inline="yes-display-inline">The standards under this section shall establish those measures for the safety and reliability of the affected equipment and local distribution systems as may be appropriate. Such standards shall be consistent with all applicable safety and performance standards established by the national electrical code, the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, or the American National Standards Institute yet constitute the minimum cost and technical burdens to the interconnecting customer generator as the Commission shall, by rule, prescribe.</text> </paragraph>
<paragraph commented="no" id="HDFF6627D474349B484BACF906E2F16B0"><enum>(4)</enum><header>Additional charges</header><text display-inline="yes-display-inline">The model standards under this subsection prohibit the imposition of additional charges by local distribution systems for equipment or services for interconnection that are additional to those necessary to meet such standards and that are in excess of the charges and equipment requirements identified in the best practices of states with interconnection standards.</text> </paragraph>
<paragraph commented="no" id="HE086587FF1BA44089D48EFAEA7F5008C"><enum>(5)</enum><header>Relationship to existing law regarding interconnection</header><text display-inline="yes-display-inline">Nothing in this subsection affects the application of section 111(d)(15) relating to interconnection.</text> </paragraph>
<paragraph commented="no" id="HC1D42E49441C46818695F48C6AB7900"><enum>(6)</enum><header>Consumer friendly contracts</header><text display-inline="yes-display-inline">The Commission shall promulgate regulations insuring that simplified contracts will be used for the interconnection of electric energy by electric energy transmission or distribution systems and generating facilities that have a power production capacity not greater than 2000 kilowatts and shall consider the best practices for consumer friendly contracts adopted by States or national associations of state regulators. Such contracts shall not require liability or other insurance in excess of what is typically carried by customer-generators for general liability.</text> </paragraph>
<paragraph commented="no" id="HF2A326A51C7C4BECB54C994F507ED61C"><enum>(7)</enum><header>Enforcement</header><text display-inline="yes-display-inline">Any person who violates any requirement of this subsection shall be subject to civil penalties in the amount of $10,000 for each day that such violation continues. Such penalties may be assessed by the Commission, after notice and opportunity for hearing, in the same manner as penalties are assessed under section 31(d) of the Federal Power Act.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" id="H5A59AACACDD54D34802320A0216F22A3"><enum>(c)</enum><header>Relationship to State law</header><text>Section 117 of the Public Utility Regulatory Policies Act of 1978 is amended by striking <quote>Nothing</quote> and inserting <quote>(1) Except as provided in paragraph (2), nothing</quote> and by adding the following at the end thereof:</text>
<quoted-block display-inline="no-display-inline" id="HD622010C50594EC0A5164F00FB3BBD2F" style="traditional">
<paragraph commented="no" id="H6857FF223DB240A0801FC3CA95933CE7" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">No State or nonregulated utility may adopt or enforce any standard or requirement concerning net metering or interconnection that restricts access to the electric power transmission or distribution system by qualified generators beyond those standards and requirements identified in section 113(d). Nothing in this Act shall preclude a State from adopting or enforcing incentives or requirements to encourage qualified generation and net metering that are additional to or equivalent to those required under section 113(d) or that afford greater access to the electric power transmission and distribution system by qualified generators as defined in section 113(d) or afford greater compensation or credit for electricity generated by such generators.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section display-inline="no-display-inline" id="H8281AF640546493A8FB23254B0000503" section-type="subsequent-section"><enum>432.</enum><header>Retail electric and gas utility efficiency policies</header>
<subsection id="H25DDC08F05C34F6FA0F53286E5D5BCC7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Public Utility Regulatory Policies Act of 1978 is amended by adding the following after section 609:</text>
<quoted-block display-inline="no-display-inline" id="H82829C1ED92946D6BD12769031AD1DE" style="OLC">
<section id="HA17DABA5EF0147B0B8B94C67D165DF"><enum>610.</enum><header>Efficiency resource standards for retail electricity and natural gas distributors</header>
<subsection id="HCDD24516D6A941569DAD507CBBFA400"><enum>(a)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H366DFA83DAF1490693048E2BDBE9494"><enum>(1)</enum><header>Base quantity</header><text>The term <term>base quantity</term>, with respect to a retail electricity or natural gas distributor, means the total quantity of electric energy or natural gas delivered by the retail electricity or natural gas distributor to retail customers during the most recent calendar year for which information is available.</text> </paragraph>
<paragraph id="H2616E3B1A9394C6BBD02E0353B6D4C8"><enum>(2)</enum><header>Combined heat and power system</header><text>The terms <term>combined heat and power system</term> and <term>CHP system</term> mean a system that—</text>
<subparagraph id="H53C893CC2E9145329C4BE3EEF02F1C6E"><enum>(A)</enum><text>uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications);</text> </subparagraph>
<subparagraph id="HC9A3481225C449EDA0D2F5B2FE7ADF2"><enum>(B)</enum><text>produces at least 20 percent of its total useful energy in the form of thermal energy, and at least 15 percent of its total useful energy in the form of electrical or mechanical power (or a combination thereof);</text> </subparagraph>
<subparagraph id="H4F8BB7E81DEE41F9813FE575EC2BE1E9"><enum>(C)</enum><text>except for systems designed for operation on cellulosic biomass fuel, has a marginal net heat rate of no more than 7,500 Btu/kWh, calculated on a higher heating value basis;</text> </subparagraph>
<subparagraph id="H952FFB32D5E44FAFAD4DFA5652C0679B"><enum>(D)</enum><text>is designed for continuous operation; and</text> </subparagraph>
<subparagraph id="HD529E0D5B0744B9E865C5C8489F34E60"><enum>(E)</enum><text>if generating electricity provides such electricity primarily for use for a facility or group of facilities located near the point where the electricity is generated, and from which net wholesale sales of electricity are not in excess of 50 percent of total annual generation.</text> </subparagraph></paragraph>
<paragraph id="H9B1ED08081004F29A5EBFA7C2454151D"><enum>(3)</enum><header>Customer facility</header><text>The term <term>customer facility</term> means an end-use consumer of electricity or natural gas served by a retail electricity or natural gas distributor.</text> </paragraph>
<paragraph id="H3C6E314A084045A0BCCAD47D99099E29"><enum>(4)</enum><header>Deemed savings</header><text>The term <term>deemed savings</term> means an estimate of the average per unit savings from installation of specific common energy efficiency measures. Deemed savings estimates shall be based on field studies or billing analyses of savings at a sample of sites where the specific measure is installed.</text> </paragraph>
<paragraph id="H97896B4CBEF547B181381B60611BCD5B"><enum>(5)</enum><header>Electric and Natural Gas Savings Corporation </header><text>The term <term>Electric and Natural Gas Savings Corporation </term> means the corporation certified pursuant to subsection (d)(7)(C).</text> </paragraph>
<paragraph display-inline="no-display-inline" id="H4E083AC02BA6456CB84F5933127D003F"><enum>(6)</enum><header>Electricity</header>
<subparagraph commented="no" display-inline="yes-display-inline" id="H28AFB1E95B9C4293B05EEF22158FCC86"><enum>(A)</enum><text display-inline="yes-display-inline">The term <term>electricity savings</term> means any of the following:</text>
<clause id="H9B3FD4269883494A9BF7B28147272B76" indent="up1"><enum>(i)</enum><text>Reductions in end-use electricity consumption achieved by a customer facility relative to_</text>
<subclause id="H08F08B3816D647F793D2EB45DFFE079"><enum>(I)</enum><text>consumption at the same facility in a base year, as defined in rules issued by the Secretary;</text> </subclause>
<subclause id="HB8455D9420474E48BF14C81FC3A89728"><enum>(II)</enum><text>in the case of replacement of equipment at the end of its life or of new equipment that does not replace existing equipment, consumption of new equipment of average efficiency, as defined in rules issued by the Secretary; or</text> </subclause>
<subclause id="HA9BA2BA51CD54FB7B41CFEF797E2A220"><enum>(III)</enum><text>in the case of a new facility, consumption at a reference facility, as defined in rules issued by the Secretary.</text> </subclause></clause>
<clause display-inline="no-display-inline" id="H7A31A84C6CB449AF903F90C574ED096" indent="up1"><enum>(ii)</enum><text>Reductions in distribution system losses of electricity achieved by a retail electricity distributor relative to losses attributable to new or replacement distribution system equipment of average efficiency, as defined in rules issued by the Secretary.</text> </clause>
<clause id="HAD26E608F1BB4E9398CD2A555789B83" indent="up1"><enum>(iii)</enum><text>Any combination of the foregoing.</text> </clause></subparagraph>
<subparagraph id="HFE170DC9E298401380007D621BE5BC3C" indent="up1"><enum>(B)</enum><text>The reductions referred to in subparagraph (A) may be due to—</text>
<clause id="H72ECD8B5963F45B7AA6F8312E8036997"><enum>(i)</enum><text>energy efficiency measures, including demand response measures that result in improved energy efficiency;</text> </clause>
<clause id="H052822A848D545649E641F6591BF56F3"><enum>(ii)</enum><text>combined heat and power systems as calculated under subparagraph (D);</text> </clause>
<clause id="H6BF723882C6F43D4B4FCEFD1D3AFE200"><enum>(iii)</enum><text>recycled energy; or</text> </clause>
<clause id="HAB1E1366D1AD4BA9B9C41FACCAC1BD0"><enum>(iv)</enum><text>in the case of distribution system losses, upgraded distribution transformers, upgraded electrical connectors, high temperature superconductors, or other measures to reduce such losses as specified in rules issued by the Secretary.</text> </clause></subparagraph>
<subparagraph id="H19750994B96B483EA900AB08FD66D263" indent="up1"><enum>(C)</enum><text>The reductions in end-use electricity consumption at a customer facility shall be reduced on a Btu basis by the Btu equivalent of any associated increases in fuel consumption at such facility. The conversion of any such fuel consumption increase to an equivalent amount of electricity on a Btu basis shall be determined by the Secretary based on the average heat rate of central station generation in the region (accounting for average transmission and distribution losses in the region), as determined in rules issued by the Secretary.</text> </subparagraph>
<subparagraph id="H69950601C15A4CB29C101EBEF2DF513" indent="up1"><enum>(D)</enum><text>For a combined heat and power (CHP) system, the electricity savings shall be the electricity and mechanical power generated by the CHP system net of fuel used by the system, where the fuel used is the product of—</text>
<clause id="H1E4D6F4C1B3240F1AF00E025003EAC73"><enum>(i)</enum><text>the electricity and mechanical power generated by the CHP system;</text> </clause>
<clause id="H8BE893486F1C4BD1BC016B5383D848CB"><enum>(ii)</enum><text>the net-effective heat rate for the CHP system; and</text> </clause>
<clause id="H538E976D30914038B880BD6D5059DE5"><enum>(iii)</enum><text>the inverse of the average heat rate of central station generation in the region, taking into consideration avoided transmission and distribution losses resulting from on-site generation as determined under subparagraph (C).</text> </clause></subparagraph></paragraph>
<paragraph display-inline="no-display-inline" id="HD1EBA1ECAE964765ACD423D7E067C09B"><enum>(7)</enum><header>Natural gas savings</header>
<subparagraph commented="no" display-inline="yes-display-inline" id="H83237224A7A84DCB95D875671F3B673E"><enum>(A)</enum><text>The term <term>natural gas savings</term> means—</text>
<clause id="H3F98A26313F341509D6BE460EF786F7D" indent="up1"><enum>(i)</enum><text>reductions in end-use natural gas consumption achieved by a customer facility relative to—</text>
<subclause id="HB7B1DD98C63042E083DE566D1B837E1B"><enum>(I)</enum><text>consumption at the same facility in a base year, as defined in rules issued by the Secretary;</text> </subclause>
<subclause id="H2A6E28C1B1884475BF60A547F4051D2B"><enum>(II)</enum><text>in the case of replacement of equipment at the end of its life or of new equipment that does not replace existing equipment, consumption of new equipment of average efficiency, as defined in rules issued by the Secretary; or</text> </subclause>
<subclause id="H1EBD97E48BEA48A6A66866A1AB4BC800"><enum>(III)</enum><text>in the case of a new facility, consumption at a reference facility, as defined in rules issued by the Secretary;</text> </subclause></clause>
<clause id="H78CDE8D43DFD40C0B689A58B5447A9DC" indent="up1"><enum>(ii)</enum><text>reductions in leakage, operational losses, and gas fuel consumption in the operation of a gas distribution system achieved by a retail gas distributor relative to such losses in a base year, as defined in rules issued by the Secretary; or</text> </clause>
<clause id="H2960DE6C88AE49839DB977E57B6EA6CA" indent="up1"><enum>(iii)</enum><text>any combination of the foregoing.</text> </clause></subparagraph>
<subparagraph id="HB5E0E05F5C744EF59C11CD91DC95E9D4" indent="up1"><enum>(B)</enum><text>The natural gas savings may be due to—</text>
<clause id="H8102935945124B11A4E8DBE2D82E5055"><enum>(i)</enum><text>energy efficiency measures;</text> </clause>
<clause id="HC1E05913FB2B40829EB1AA91708B1EA3"><enum>(ii)</enum><text>recycled energy; or</text> </clause>
<clause id="H76BE12F58FFB4F8E958411EB4D92D61D"><enum>(iii)</enum><text>in the case of gas distribution system losses, technologies and practices as specified in rules issued by the Secretary including measures recommended for gas distribution systems by the Natural Gas STAR Program administered by the Environmental Protection Agency.</text> </clause></subparagraph>
<subparagraph id="HEBC11AEAF95346E5A73751CFA1A45462" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">The reductions in natural gas consumption shall be reduced on a Btu equivalent basis by any associated increases in the consumption of electricity or other substitute fuels by a customer facility or a natural gas distributor, as determined under rules issued by the Secretary. The conversion of any such increase in the consumption of electricity or other fuels to an equivalent amount of natural gas consumption on a Btu basis shall be determined by the Secretary based on the average heat rate of central station electric generation in the region and average transmission and distribution losses in the region, as determined under rules issued by the Secretary.</text> </subparagraph></paragraph>
<paragraph id="HEF8225C68F544F0798AB3E7B53C8916E"><enum>(8)</enum><header>Net effective heat rate</header><text display-inline="yes-display-inline">The term <term>net effective heat rate</term> means a ratio, the numerator of which is the higher heating value of the increment of fuel required by a CHP system to produce electricity and mechanical power, over and above the fuel that would be required to produce the equivalent thermal output of the CHP system by a system without power generation, expressed in British thermal units, and the denominator of which is the power output of the CHP system, expressed in kilowatt-hours.</text> </paragraph>
<paragraph id="H94E313321C0A45BCA4CAD55D6D100099"><enum>(9)</enum><header>Performance standard</header><text>The term <term>performance standard</term> means the performance standard for energy savings established under subsection (b).</text> </paragraph>
<paragraph id="H677B0B7E3483409B8EE67924315D5FD8"><enum>(10)</enum><header>Recycled energy</header><text>The term <term>recycled energy</term> means electrical or mechanical power, or both, or thermal energy produced by modifying an industrial or commercial system that was in place prior to January 1, 2007, such that the modified system—</text>
<subparagraph id="H22C4616743114318A67BECD185C3F097"><enum>(A)</enum><text>recaptures energy that would otherwise be wasted from sources, including—</text>
<clause id="H2ACA9DF36B064CBF8B3C99CAAD80165C"><enum>(i)</enum><text>waste heat from industrial processes, natural gas compressor stations, and other sources;</text> </clause>
<clause id="H490D2EB1A9EC45C1B8881BB17632BFCC"><enum>(ii)</enum><text>pressure in a fluid or gas system including but not limited to steam, natural gas, and water; and</text> </clause>
<clause id="H1DD376F10FB240AD853078466576D886"><enum>(iii)</enum><text>blast furnace, coke oven, carbon black, and petrochemical process waste gas, or pollution control projects, including thermal oxidizers and gas flares; and</text> </clause></subparagraph>
<subparagraph display-inline="no-display-inline" id="H22D3B716E5484063B6ACB456638993B9"><enum>(B)</enum><text>uses equipment and technologies including—</text>
<clause id="H8844CE9E33BE4DE78B81378855D8D8E2"><enum>(i)</enum><text>back-pressure turbines in parallel with existing pressure-reducing valves in steam, water and gas systems;</text> </clause>
<clause id="H1377EB7470674029952E224E04437882"><enum>(ii)</enum><text>organic Rankine, Stirling, or Kalina cycle heat engine systems driven by waste heat; or</text> </clause>
<clause id="HA094F742FC5E4120B56EDC41E5E20012"><enum>(iii)</enum><text>heat recovery steam generators with steam turbine generators that recover waste heat.</text> </clause></subparagraph></paragraph>
<paragraph id="HA646519CAD10447092A62336109729CB"><enum>(11)</enum><header>Retail electricity or natural gas distributor</header><text>The term <term>retail electricity or natural gas distributor</term> means a person (including a Federal, State, or local entity) that—</text>
<subparagraph id="HDEB9680E2C5F40AAAF00236326DB7625"><enum>(A)</enum><text>distributes electric energy or natural gas to consumers in the United States for a calendar year, including electricity or natural gas supplied by unregulated suppliers, regardless of whether such suppliers are affiliated or unaffiliated with the distributor; and</text> </subparagraph>
<subparagraph id="H9488A123713B4B3B846000D8DDED762C"><enum>(B)</enum><text>sold not less than 800,000 megawatt-hours of electric energy or 1 billion cubic feet of natural gas to consumers in the United States for purposes other than resale during the preceding calendar year.</text> </subparagraph><continuation-text continuation-text-level="paragraph">For purposes of this paragraph, electricity or natural gas sold at wholesale to large end-use customers shall be included but natural gas sold to wholesale electric generators to generate electric power for resale shall not be not included.</continuation-text></paragraph></subsection>
<subsection id="H4950B5B5F36C434BA8D5A87BF414329D"><enum>(b)</enum><header>Performance standard</header>
<paragraph id="HED5FB1A4D1C74DC6B143D6B1588E8F80"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Each retail electricity or natural gas distributor shall undertake electricity and natural gas savings measures in each calendar year beginning with 2009 that produce electricity and natural gas savings as a percentage of the distributor’s base quantity at the applicable rate specified in paragraph (5).</text> </paragraph>
<paragraph id="H25ABB08B66534DFDB0656F994335D4E2"><enum>(2)</enum><header>Savings</header><text>The savings described in paragraph (1) shall represent savings realized in the specified year from measures implemented in that year and all preceding years beginning with 2007.</text> </paragraph>
<paragraph id="H7C5420649DEE4D8E9300F79602D9D2B8"><enum>(3)</enum><header>Limits</header><text>Savings from combined heat and power systems, recycled energy, and electricity or natural gas distribution system measures may be used by a distributor to satisfy no more than 50 percent of the applicable savings specified for any year in the table contained in paragraph (5).</text> </paragraph>
<paragraph id="H997C6AC5F8A047B0802438D6B3573221"><enum>(4)</enum><header>Compliance</header>
<subparagraph commented="no" display-inline="yes-display-inline" id="HB3967C8B7567483393AEC1142683B86B"><enum>(A)</enum><text>Each retail electricity or natural gas distributor subject to this subsection may use any electricity or natural gas savings measures available to the distributor to achieve compliance with the performance standard established under this section, on the condition that the electricity and natural gas savings achieved by such measures are calculated and verified pursuant to the rules issued under subsection (c).</text> </subparagraph>
<subparagraph id="H74D165F59E454A75A5C6E9606D59B3C8" indent="up1"><enum>(B)</enum><text>A retail electricity or natural gas distributor may demonstrate compliance with the performance standard through the accumulation of_</text>
<clause id="HD90A7275F3D44BACBC97A9874089E508"><enum>(i)</enum><text>electricity or natural gas savings credits achieved by such electricity or natural gas distributor and certified under clause (i) of subsection (d)(2)(A);</text> </clause>
<clause id="HD6D01AC120EF41C3BC35B6AF96B09317"><enum>(ii)</enum><text>electricity or natural gas savings credits obtained by purchase under subsection (d)(6);</text> </clause>
<clause id="HC80BB0A405B040CBAE95F738E3001D33"><enum>(iii)</enum><text>electricity or natural gas savings credits borrowed against future years under subsection (d)(7); or</text> </clause>
<clause id="H7743B62153F54E3EA2A8063622B2400"><enum>(iv)</enum><text>any combination of credits described in clauses (i), (ii), and (iii).</text> </clause></subparagraph></paragraph>
<paragraph id="H9C766690F2D84BEDAC180339C155E2B1"><enum>(5)</enum><header>Applicable rates</header>
<subparagraph commented="no" display-inline="yes-display-inline" id="H3ACF0FDA3FDB47D8AF8373AE9E1865B3"><enum>(A)</enum><text>The applicable rates referred to in paragraph (1) are as follows:</text>
<table table-type="" table-template-name="Generic: 3 text, even cols" align-to-level="section" frame="all" colsep="1" rowsep="1" blank-lines-before="1" line-rules="all-gen" rule-weights="4.4.4.4.4.0">
<tgroup cols="3" rowsep="1" thead-tbody-ldg-size="10.10.10" grid-typeface="1.1"><colspec colname="column1" colsep="0" align="center" coldef="fig" min-data-value="15" colwidth="104.25pt"/><colspec colname="column2" colsep="0" align="center" coldef="fig" min-data-value="15" colwidth="129.75pt"/><colspec colname="column3" align="center" coldef="fig" min-data-value="15" colwidth="127.50pt"/><thead>
<row><entry namest="column1" morerows="0" align="center" colname="column1"><bold>Year</bold></entry><entry namest="column2" morerows="0" align="center" colname="column2"><bold>Electricity<linebreak/> savings (%)</bold></entry><entry namest="column3" morerows="0" align="center" colname="column3"><bold>Natural gas<linebreak/> savings (%)</bold></entry></row></thead>
<tbody>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2009</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 0.25</entry><entry leader-modify="clr-ldr" colname="column3">0.20</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2010</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 0.75</entry><entry leader-modify="clr-ldr" colname="column3">0.50</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2011</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 1.50</entry><entry leader-modify="clr-ldr" colname="column3">0.80</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2012</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 2.25</entry><entry leader-modify="clr-ldr" colname="column3">1.15</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2013</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 3.00</entry><entry leader-modify="clr-ldr" colname="column3">1.50</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2014</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 4.00</entry><entry leader-modify="clr-ldr" colname="column3">2.00</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2015</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 5.00</entry><entry leader-modify="clr-ldr" colname="column3">2.50</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2016</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 6.00</entry><entry leader-modify="clr-ldr" colname="column3">3.00</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2017</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 7.00</entry><entry leader-modify="clr-ldr" colname="column3">3.50</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2018</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 8.00</entry><entry leader-modify="clr-ldr" colname="column3">4.00</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2019</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2"> 9.00</entry><entry leader-modify="clr-ldr" colname="column3">4.50</entry></row>
<row><entry rowsep="1" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2020</entry><entry rowsep="1" leader-modify="clr-ldr" colname="column2">10.00</entry><entry leader-modify="clr-ldr" colname="column3">5.00.</entry></row></tbody></tgroup></table> </subparagraph>
<subparagraph id="HBDBFD4A21201420D86B7007F913DFBA2" indent="up1"><enum>(B)</enum><text>At least 2 years before the beginning of any year after 2020, the Secretary, after notice and opportunity for comment, shall set the applicable rate, taking into consideration the economic and environmental benefits of the energy savings and the cost of the savings measures.</text> </subparagraph></paragraph></subsection>
<subsection id="HB46FFEE72066451293E6DE16B14FAEB5"><enum>(c)</enum><header>Determination of compliance rules</header><text>Not later than 1 year after the date of enactment of this section, the Secretary shall issue rules that describe the means to be used to calculate and verify compliance with the performance standard that include each of the following:</text>
<paragraph id="H94DFC36C751C477BA4A54F265B38095F"><enum>(1)</enum><text>Procedures and standards for defining and measuring electricity savings and natural gas savings from customer facility end-uses and from utility distribution systems that occur in a calendar year (including measures implemented in previous calendar years beginning in 2007). At a minimum, these procedures and standards shall—</text>
<subparagraph id="HCD65E4404FB740C8A62BA931B259872F"><enum>(A)</enum><text>specify the types and categories of efficiency measures that will be eligible for certification under subsection (d)(2);</text> </subparagraph>
<subparagraph id="H3208625F79FF4CDE82CC652A2830948"><enum>(B)</enum><text>require that energy consumption estimates for customer facilities or portions thereof in the base and current years be adjusted, when appropriate, to account for changes in weather, level of production, and building area;</text> </subparagraph>
<subparagraph id="HB573243BAD234E8E993D2608384B8589"><enum>(C)</enum><text>allow energy consumption estimates from discrete processes and equipment within industrial facilities in the base and current years to be adjusted for factors identified by rule that may be responsible for significant year-to-year changes;</text> </subparagraph>
<subparagraph id="HBA5EF427DA5345AA9E5BB7A4774F7CF9"><enum>(D)</enum><text display-inline="yes-display-inline">allow energy consumption estimates from discrete processes and equipment within industrial facilities in the base and current years to be adjusted for factors identified by rule that may be responsible for significant year-to-year changes;</text> </subparagraph>
<subparagraph id="H21A7E94EE6114DCEBCF1D8DB3D21F977"><enum>(E)</enum><text>account for the useful life of energy saving measures;</text> </subparagraph>
<subparagraph id="H5A1EFB097A49442B8DFD06294D49D992"><enum>(F)</enum><text>include deemed savings values for commonly-used efficiency measures and make provision for such values to be periodically reviewed and revised;</text> </subparagraph>
<subparagraph id="H672636028C524F8A9537633840BE1E9B"><enum>(G)</enum><text>minimize the chances that more than one entity will claim credit for the same savings; and</text> </subparagraph>
<subparagraph id="H96B6D1BCD47A4B81BBDC7E29020268C2"><enum>(H)</enum><text display-inline="yes-display-inline">exclude savings that—</text>
<clause id="HE00DE533FA904D98B53753C99148D963"><enum>(i)</enum><text>are attributable to measures or systems installed before January 1, 2007, or to modifications of processes or systems undertaken prior to January 1, 2007;</text> </clause>
<clause id="H0B9A198FD7504B2ABDCE35E8D64B22B2"><enum>(ii)</enum><text>are otherwise required by Federal, State, local, or Indian tribal law or regulation;</text> </clause>
<clause id="HCD55B28846D44EF5A851F314DDBD9843"><enum>(iii)</enum><text>are achieved without the intervention of the electricity or natural gas distributor or of any other entity seeking credits under paragraph (2)(A)(ii) of , except as provided under subsection (e);</text> </clause>
<clause id="H6E950FDF8E9D4562998549D0622F69C"><enum>(iv)</enum><text>are attributable to Federal, State, or local tax incentives, grants, loans, or other public financial support for energy efficiency measures; or</text> </clause>
<clause id="H06D4E08F227A48DAAC7611F51EA96A2"><enum>(v)</enum><text>have already been credited under this section to another entity.</text> </clause></subparagraph></paragraph>
<paragraph id="H54656928A6284B378077FCB82371A563"><enum>(2)</enum><text>Procedures and standards for verification of electricity or natural gas savings reported by retail electricity and natural gas distributors. At a minimum, such procedures and standards shall—</text>
<subparagraph id="H3CD75A6CFD124A3380AC00EBEF57CE0"><enum>(A)</enum><text>provide for periodic spot checks on a sample of sites to verify that measures are in place and functioning;</text> </subparagraph>
<subparagraph id="H1A98672E6BEF4AC2B691F23F5BEFCAE8"><enum>(B)</enum><text>provide that savings estimates are calibrated with billing analysis or end-use metering on a sample of sites where technically feasible and economically justified; and</text> </subparagraph>
<subparagraph id="H399F4655964E4E0DA2D3D67FF400A442"><enum>(C)</enum><text>provide for the protection of customers’ proprietary information against unwarranted disclosure.</text> </subparagraph></paragraph>
<paragraph id="H25585C058F36489EAFD7D1F7DF35E957"><enum>(3)</enum><text>Requirements for the content and format of a biennial report from each retail electricity or natural gas distributor demonstrating the compliance of the distributor with the performance standard, including a detailed description of the calculation of electricity and natural gas savings to enable the appropriate regulatory authority to verify and enforce compliance with the requirements of this section (including regulations issued under this section).</text> </paragraph>
<paragraph id="H6F4489814A4A4BEAA620BA7928983900"><enum>(4)</enum><text>Provision for reviewing and revising the electricity and natural gas consumption of reference facilities and of new equipment of average efficiency at intervals of not greater than 4 years.</text> </paragraph></subsection>
<subsection id="H57254E1BD46E4D4E97463D320100B05D"><enum>(d)</enum><header>Credit and trading system</header>
<paragraph id="HC38EB3F60C0D47488551C2A52FCBAF05"><enum>(1)</enum><header>Establishment</header><text>Not later than one year after the date of enactment of this section, and after consultation with the Administrator of the Environmental Protection Agency, the Secretary shall issue rules establishing a nationwide credit and credit trading system for electricity and natural gas savings.</text> </paragraph>
<paragraph id="H6B4891BEF732419FBDCEE1F21F87734"><enum>(2)</enum><header>Credits</header>
<subparagraph id="H4F5E60B78D584D3B9DBEB6E530E06460"><enum>(A)</enum><header>In general</header><text>In accordance with the rules issued under paragraph (1), the Secretary</text>
<clause id="H47847023C6C04458AD8C7D80F75F4D63"><enum>(i)</enum><text>shall certify as credits, electricity and natural gas savings achieved by a retail electricity or natural gas distributor in a given calendar year if the savings comply with the rules issued under subsection (c)(1);</text> </clause>
<clause id="H68BE23BCC0B0491BA8DA00042F056DFF"><enum>(ii)</enum><text>shall certify as credits, customer electricity and natural gas savings undertaken by State agencies and other entities if—</text>
<subclause id="HDA0F7FEC91944765BF4EE368915B53C"><enum>(I)</enum><text>a retail electricity or natural gas distributor did not help finance measures to achieve these savings; and</text> </subclause>
<subclause id="H9D086047F3224B1DAC74341924973EC6"><enum>(II)</enum><text>the savings comply with the rules issued under subsection (c); and</text> </subclause></clause>
<clause id="H0BF14EC3939E44E2BD1120AF734D6395"><enum>(iii)</enum><text>shall not award credits to any retail electricity or natural gas distributor subject to State administration and enforcement under subsection (g) unless the Secretary has determined that the administration and enforcement are at least equivalent to administration and enforcement by the Secretary.</text> </clause></subparagraph>
<subparagraph id="HD504213CB228472097A1718012A5BFCA"><enum>(B)</enum><header>Amount of credits</header><text>A credit certified by the Secretary under this subsection—</text>
<clause id="H57EABFEF796D4D5FA3B500A49D269FAE"><enum>(i)</enum><text>shall equal 1,000 kilowatt-hours, in the case of an electricity savings credit; or</text> </clause>
<clause id="H8D77A69F61DF47C2A816C3E15982E597"><enum>(ii)</enum><text>shall equal 10 therms, in the case of a natural gas savings credit.</text> </clause></subparagraph></paragraph>
<paragraph id="H210DC16131C94880BB17DB70A10013E4"><enum>(3)</enum><header>Treatment of credits</header>
<subparagraph id="HA4B6182A377B42D5B84F668152E17BC7"><enum>(A)</enum><header>Use of credits</header><text>A credit may be counted toward compliance with the performance standard only once.</text> </subparagraph>
<subparagraph id="H856B5A621F6649CE87EDE5667168006F"><enum>(B)</enum><header>Property rights</header><text>An electricity or natural gas savings credit certified under this subsection shall not be considered to be a property right.</text> </subparagraph>
<subparagraph id="H02F7CFB0F1324409AE99828F44C8D6E9"><enum>(C)</enum><header>Reduction and termination of credits</header><text>Nothing in this section or any other provision of the law limits the authority of the United States to reduce or terminate a credit certified under this subsection.</text> </subparagraph></paragraph>
<paragraph id="H69958FE0D6234C9BB551AA654B7C7000"><enum>(4)</enum><header>Fee</header>
<subparagraph id="HF923D5EE661749C9A1824386C5461D14"><enum>(A)</enum><header>In general</header><text>To receive certification of an electricity or natural gas savings credit under this section, the recipient of the credit shall pay a fee, calculated by the Secretary, in an amount that is equal to the lesser of the following:</text>
<clause id="HA2F6228D9BED4632A9A031963F5400BA"><enum>(i)</enum><text>The administrative costs of issuing, recording, monitoring the sale or exchange, and tracking, of the credit.</text> </clause>
<clause id="H4C5970171FBF47D4BD76552BEF39253D"><enum>(ii)</enum><text>For the years 2009 and 2010, 5 percent of the fair market value of the credit, as determined by the Secretary, and for the years 2011 and thereafter, 3 percent of the fair market value of the credit, as determined by the Secretary.</text> </clause></subparagraph>
<subparagraph id="H3955F012FCA34DB6A38240701B1DAE3B"><enum>(B)</enum><header>Use of fees by Secretary</header><text>Subject to annual appropriation, the Secretary shall use amounts equivalent to the fees paid under this paragraph to pay administrative costs described in subparagraph (A)(i). If receipts exceed the administrative costs incurred by the Secretary in any two consecutive fiscal years, the Secretary shall, not later than January 1 of the first fiscal year thereafter, reduce the fee accordingly.</text> </subparagraph></paragraph>
<paragraph id="H7B7B3C1688DE49CAB07651C8EAF9F09"><enum>(5)</enum><header>Credit sale and use</header>
<subparagraph id="H02DB5BBB0A8542FAA51BA3746136A166"><enum>(A)</enum><header>Sale</header><text>A retail electric or natural gas distributor may sell a credit certified under this subsection to any other entity, and other entities may sell such credit to a retail electric or natural gas distributor or any other entity, in accordance with accounting and verification procedures contained in rules issued by the Secretary under paragraph (1).</text> </subparagraph>
<subparagraph id="H7FA367E0484949C3921E21D4D91BC2B4"><enum>(B)</enum><header>Use</header><text>A credit certified under this subsection and sold under subparagraph (A) may be used by a purchasing retail electricity or natural gas distributor for purposes of complying with the performance standard.</text> </subparagraph>
<subparagraph id="H93B1ACA292F246649F5667D41C0070B6"><enum>(C)</enum><header>Duration of validity</header><text>A credit certified under this subsection may only be used for compliance with this section for 3 years from the date issued.</text> </subparagraph></paragraph>
<paragraph id="H3F47D69587F84976AB481EAFE09C4E77"><enum>(6)</enum><header>Credit borrowing</header>
<subparagraph commented="no" display-inline="yes-display-inline" id="H6D15CD16434E42468689E0AF70F8B1C"><enum>(A)</enum><text>During the first year covered by the performance standard, a retail electricity or natural gas distributor that has reason to believe that the distributor will not have sufficient electricity or natural gas savings credits to comply with the performance standard may—</text>
<clause id="H43BF29FF5AD840BC908FA7A3CDD4CDDA" indent="up1"><enum>(i)</enum><text>submit a plan to the Secretary demonstrating that the retail electricity or natural gas distributor will earn or acquire sufficient credits within the subsequent 2 calendar years that would enable the retail electricity or natural gas distributor to meet the performance standard for all three calendar years; and</text> </clause>
<clause id="HAF37D5C5F7194F8BABD0003CFCA2C79D" indent="up1"><enum>(ii)</enum><text>upon the approval of the plan by the Secretary, apply credits expected to be earned or acquired within the subsequent 2 calendar years to meet the performance standard for the applicable calendar year.</text> </clause></subparagraph>
<subparagraph id="H0B90CEABAD9548F6ACE169B016A967AD" indent="up1"><enum>(B)</enum><text>Any retail electricity or natural gas distributor that has submitted such a plan shall, by March 31 of the fourth calendar year, submit to the Secretary the credits necessary to repay all credits borrowed.</text> </subparagraph></paragraph>
<paragraph id="HE9F740B26E4F48A5B73BB4C4855BADD3"><enum>(7)</enum><header>Buyout option</header>
<subparagraph id="H8327B32A265F457F9ECD52CCCD7E77C5"><enum>(A)</enum><header>In general</header><text>An electricity or natural gas distributor may elect to comply with this section for any calendar year by paying to the certified Electric and Natural Gas Savings Corporation not later than March 31 of the following year, a fee of 5 cents per kilowatt-hour or 50 cents per therm, for any portion of the electricity or natural gas savings credit the distributor would otherwise be obligated to achieve for the year.</text> </subparagraph>
<subparagraph id="HAECF0821F8774923809E045F5BFC18CC"><enum>(B)</enum><header>Use of buyout fees</header><text display-inline="yes-display-inline">The Electric and Natural Gas Savings Corporation shall—</text>
<clause id="H3057BCB3FEAC4FD3A635FAA702757BFB"><enum>(i)</enum><text>deposit fees received under subparagraph (A) in an escrow account established by the Corporation; and</text> </clause>
<clause id="HA83A8090C08B41368B759EC5C800F047"><enum>(ii)</enum><text>periodically distribute amounts in the escrow account to States requesting such funds for use in creating electricity or natural gas savings at customer facilities.</text> </clause><continuation-text continuation-text-level="subparagraph">States requesting funds from the account established by the Corporation shall submit specific program proposals, including funds requested, estimated savings and measure lifetime(s), and estimated cost per kWh or therm saved. The Corporation shall develop guidelines for these submissions. The Corporation shall distribute funds based on the following criteria: Estimated savings per dollar of funds provided from the escrow account, maximizing consumer opportunities to participate across all States, and, beginning in year 3, past history of each State in meeting energy savings and cost-effectiveness targets.</continuation-text></subparagraph>
<subparagraph id="H9DC4950A0F0C4D00BE3EA8704F6F03DE"><enum>(C)</enum><header>Electric and Natural Gas Savings Corporation</header>
<clause id="H498AFD2A70EC46D2B47DB438C775005D"><enum>(i)</enum><header>Establishment and certification</header><text display-inline="yes-display-inline">Any person may submit an application to the Secretary for the establishment and certification of a not-for-profit corporation, to be known as the Electric and Natural Gas Savings Corporation, to carry out this paragraph. The Secretary shall certify the corporation if the Secretary determines that the corporation has submitted the most qualified application indicating capability to carry out this paragraph. The Secretary may revoke such certification at any time for good cause, and in any such case, the Secretary may accept applications from other persons and certify another person as the Electric and Natural Gas Savings Corporation.</text> </clause>
<clause id="H77F94045A86848FB9E685DA32C069E9B"><enum>(ii)</enum><header>Authority of corporation</header><text display-inline="yes-display-inline">No person may distribute more than 800,000 megawatt-hours of electric energy or more than 1 billion cubic feet of natural gas to consumers in the United States for purposes other than resale in any calendar year, including electricity or natural gas supplied by unregulated suppliers, regardless of whether such suppliers are affiliated or unaffiliated with the distributor unless such person complies with requirements established by the Corporation for the payment of fees under this paragraph.</text> </clause>
<clause id="HAEA64EEF964347E78E715212A729EC1F"><enum>(iii)</enum><header>Status of corporation</header><text>The Corporation shall not be treated as a department, agency, or instrumentality of the United States for any purpose.</text> </clause>
<clause id="HDE7BC295280B421EAEA3D7032F72CAE"><enum>(iv)</enum><header>Books and records</header><text>The books and records of the Corporation shall be available to the public at reasonable hours and under reasonable conditions, without charge.</text> </clause>
<clause id="HE5AAB321D88448C0B0CCFA05419D3AF"><enum>(v)</enum><header>Penalty</header><text>Any person who violates clause (ii) of this subparagraph shall be subject to a civil penalty to be assessed and collected by the Secretary in the amount equal to three times the total of the fees which are due and payable to the corporation under this paragraph.</text> </clause></subparagraph></paragraph></subsection>
<subsection id="H047EA118463F4BA600B84ED2388853D6"><enum>(e)</enum><header>Enforcement of compliance</header>
<paragraph id="HD728CD02913F4D36A4FE6E00C04EAE03"><enum>(1)</enum><header>In general</header><text>If a State regulatory authority with jurisdiction over a retail electricity or natural gas distributor notifies the Secretary that the State regulatory authority will enforce compliance by the distributor with the performance standard under this section, the State regulatory authority shall have the authority to administer and enforce the performance standard for the distributor under State law.</text> </paragraph>
<paragraph id="H434972AB0E76499A8EE9D2FF933C7B9"><enum>(2)</enum><header>Authority of Secretary</header><text>The Secretary shall administer and enforce the performance standard for all electricity and natural gas distributors for which a State regulatory authority described in paragraph (1) has not notified the Secretary as described in that paragraph.</text> </paragraph>
<paragraph id="H11459288D59045C4A805B8ADFF89BB82"><enum>(3)</enum><header>Compliance report</header><text>Not later that July 1, 2010, and every 2 years thereafter, each retail electricity and natural gas distributor shall submit a compliance report conforming to the provisions of the rule described in subsection (c)(3) to either—</text>
<subparagraph id="H2DD95A0AC92447CAAAB900709C455B32"><enum>(A)</enum><text>the appropriate State regulatory authority, if the authority has notified the Secretary as described in paragraph (1); or</text> </subparagraph>
<subparagraph id="H7B00E48B361D440299C1F2E0C9F7D04B"><enum>(B)</enum><text>the Secretary.</text> </subparagraph></paragraph>
<paragraph id="H723FA2632E0B4AB49E6147D932524E7F"><enum>(4)</enum><header>Failure to comply</header>
<subparagraph id="H81EA177227CF47229E31F000775BC7AF"><enum>(A)</enum><header>In general</header><text>In the case of any retail electricity or natural gas distributor for which the Secretary is enforcing compliance with the standards under this section, if the distributor fails to comply with the performance standard for more than one calendar year, the Secretary shall_</text>
<clause id="H3D512C8F17AB45CFAA6E8E7BA3309090"><enum>(i)</enum><text>determine the number of kilowatt-hours of electricity savings, or therms of natural gas savings, by which the distributor has fallen short of meeting the performance standard; and</text> </clause>
<clause id="H3BC3381B6DCB4B67B48744FC3BB1D636"><enum>(ii)</enum><text>by order, require the distributor, after notice and opportunity for hearing, to deposit in the escrow account established under paragraph (8)(B) of subsection (e) an amount equal to 6.0 cents per kilowatt-hour for each such kilowatt hour, and 60 cents per therm for each such therm.</text> </clause></subparagraph>
<subparagraph id="H35FA06AE46F54D1CB254550097FF2FFF"><enum>(B)</enum><header>Judicial review of orders</header>
<clause id="HD65359BA990E41B687B6C6288869AA27"><enum>(i)</enum><header>In general</header><text>A retail electricity or natural gas distributor ordered to make a payment under subparagraph (A)(ii) may, not later than 60 days after the date of issuance of the order, bring a civil action in the United States Court of Appeals for the District of Columbia for judicial review of the order.</text> </clause>
<clause id="H3CB24A91B6F748C4ADDA06273C591933"><enum>(ii)</enum><header>Remedies</header><text>The court specified in clause (i) shall have jurisdiction to enter a judgment affirming, modifying, or setting aside an order that is the subject of a civil action brought under that clause, or remanding the order, in whole or in part, to the Secretary.</text> </clause></subparagraph></paragraph></subsection>
<subsection id="H8239B6C502AC48A99124FD4D8EB8F0BE"><enum>(f)</enum><header>Information collection</header><text>The Secretary may collect any information necessary to verify and audit each of the following:</text>
<paragraph id="HFD3D3B2BA8324C3A88CCD8CD90DED0E5"><enum>(1)</enum><text>The annual electric energy sales, natural gas sales, electricity savings, and natural gas savings of any entity applying for electricity or natural gas savings credits under this section.</text> </paragraph>
<paragraph id="H7383EB3138894DF5BE95573B81035F61"><enum>(2)</enum><text>The validity of electricity or natural gas savings credits submitted by a retail electricity or natural gas distributor to the Secretary.</text> </paragraph>
<paragraph id="H6CE2941BA7904BEDB597C2AB36EF97BB"><enum>(3)</enum><text>The quantity of electricity and natural gas sales of all retail electricity and natural gas distributors.</text> </paragraph></subsection>
<subsection id="H4B1B2E973F114C2E90D827CEDA860C2"><enum>(g)</enum><header>State law</header>
<paragraph id="HED3A380FE5244EB88D590080FC9138FE"><enum>(1)</enum><header>In general</header><text>Nothing in this section supersedes or otherwise affects any State or local law or regulation requiring or otherwise relating to electricity or natural gas savings to the extent that the State or local law or regulation contains more stringent savings requirements or has different procedures for buyout or penalties than those contained in this section.</text> </paragraph>
<paragraph id="H99014231F6F74BA900D2B6FE02200E5"><enum>(2)</enum><header>Site-specific savings</header><text display-inline="yes-display-inline">A State may require the performance standard for electricity or natural gas savings of any distributor within its jurisdiction to be achieved by measures undertaken—</text>
<subparagraph id="H910471543E6F43F18022A260DB005DE6"><enum>(A)</enum><text>within the State;</text> </subparagraph>
<subparagraph id="HB38EF56E84F441C0A16DE9C1500F6C2"><enum>(B)</enum><text>within the service territory of any regional transmission organization serving the State;</text> </subparagraph>
<subparagraph id="HA21337880125461BB2D757EAAAD6A946"><enum>(C)</enum><text>within any group of States participating in a regional program for the control of green house gas emissions; or</text> </subparagraph>
<subparagraph id="H7241180F632B4619BBB14DC994E58011"><enum>(D)</enum><text>within any airshed designated by the State.</text> </subparagraph></paragraph>
<paragraph id="H5F735CBC6CBD4FB5946E3013B2DFE450"><enum>(3)</enum><header>Treatment under State law</header><text>A retail electricity or natural gas distributor that achieves electricity or natural gas savings under this section in accordance with any State or local savings requirement specifically applicable to such distributor shall be entitled to full credit under this section for the savings to the extent that the savings meet the requirements of this section (including regulations issued under this section), including measurement, verification, and monitoring requirements.</text> </paragraph></subsection>
<subsection id="H251EA2B826944128A02FDD60792B7DEF"><enum>(h)</enum><header>Development of model provisions</header><text>Not later than 18 months after the date of enactment of this section, the Federal Energy Regulatory Commission shall, following public notice and comment, develop and publish model provisions for adoption by State utility regulatory commissions regarding each of the following:</text>
<paragraph id="HF76C26F0D9054135A81337C005D7224B"><enum>(1)</enum><header>Revenue stability and incentives for distributors</header><text display-inline="yes-display-inline">Policies for rate-setting and return on investment for State-regulated electricity and natural gas distributors that participate in successful, cost-effective energy efficiency programs. Such model language shall include provisions for decoupling the earnings of such regulated entities from full dependence on the volume of electricity or natural gas distributed by them to customer facilities. Such model language shall also include provisions for policies for cost recovery and other financial incentives, such that electric and gas utility investors are rewarded similarly for similar levels of investment in customer energy efficiency and in conventional utility assets and that regulated utilities are encouraged to include end-use efficiency measures and utility-owned, customer-owned, or third party-owned CHP systems in electric capacity and transmission and distribution plans.</text> </paragraph>
<paragraph id="HEBF64DD269E94A6395D96EBE33ED7899"><enum>(2)</enum><header>Nondiscriminatory identification of cost-effective savings opportunities</header><text display-inline="yes-display-inline">Establishing a public, nondiscriminatory bidding process open to customers and demand side management service providers to identify cost-effective electricity or natural gas savings opportunities within a retail electricity or natural gas distributor’s service area. The model bidding plan shall provide for a distributor to procure all or a portion of its proposed savings measures, including measures proposed by the distributor or its affiliates, in cost-effective rank order. The model plan shall also address the process that will be used by the distributor to identify and obtain further electricity or natural gas savings in the event that insufficient savings are procured through the bid process.</text> </paragraph>
<paragraph id="H512A3B70C9ED4C94AA009D001B67FD32"><enum>(3)</enum><header>Development of model language on revenue decoupling and shareholder incentives in ratemaking policies</header><text display-inline="yes-display-inline">Rate-setting and earnings for State-regulated electricity and natural gas distributors that participate in successful, cost-effective energy efficiency programs. Such model language shall include, but not be limited to, recommendations for decoupling the earnings of such regulated entities from full dependence on the volume of electricity or natural gas distributed by them to customer facilities. Such model language shall also include recommendations for policies for cost recovery and shareholder incentives, such that electric and gas utility investors are rewarded similarly for similar levels of investment in customer energy efficiency and in conventional utility assets.</text> </paragraph></subsection>
<subsection id="H9B4F31CB7AD0497989FD44828770AAE2"><enum>(i)</enum><header>State adoption of FERC model provisions</header><text display-inline="yes-display-inline">Each State utility regulatory authority shall adopt the model provisions referred to in subsection (h) in the same manner and subject to the same rules and review as apply in the case of standards referred to in section 113(b) and 303(b). For purposes of any provision of title I or III of this Act, the model provisions referred to in subsection (h) shall be treated as standards under section 113(b) (in the case of State regulated electricity distributors) or 303(b) (in the case of natural gas distributors), except that in the case of such model provisions, any reference contained in this Act to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of this section. Each such State utility regulatory authority shall adopt the model provisions not later than 24 months after the date of enactment of this section in the case of paragraphs (1) and (2) of subsection (h) or 42 months after such date of enactment in the case of paragraph (3) of subsection (h)).</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HAE885599103D4E8E909BEB624DD82BCF"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for title VI of such Act is amended by adding the following new items at the end thereof:</text>
<quoted-block display-inline="no-display-inline" id="HF4F426BB8A6444D190CE4B4DC558E3D" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 609. Rural and remote communities electrification grants.</toc-entry>
<toc-entry level="section">Sec. 610. Efficiency resource standard for retail electricity and natural gas distributors.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle>
<subtitle id="H5A7F926C0A8347F89B5C04BE415C123E"><enum>E</enum><header>Renewable portfolio standard</header>
<section commented="no" id="H19ED078C2BC0427C95816D4300D06F69"><enum>441.</enum><header>Renewable portfolio standard</header><text display-inline="no-display-inline">Title VI of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2601">16 U.S.C. 2601 et seq.</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H34B86F6D392B4423BC8B40E1F944446D" style="OLC">
<section commented="no" id="H643AFDB4D7CA4731959BF27F6236217E"><enum>609.</enum>
<subsection commented="no" id="HB207AEB556E54F0382ACEED34F4EF39F"><enum>(a)</enum><header>Renewable energy requirement</header>
<paragraph commented="no" id="H6CE69C871F71428ABB96EFA689F7ABF"><enum>(1)</enum><header>In general</header><text>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:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="183.75pt" min-data-value="55"/><colspec align="justify" coldef="fig" colname="column2" colwidth="186.75pt" min-data-value="5"/> <thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Minimum annual</bold></entry> </row>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>Calendar years:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>percentage:</bold></entry> </row> </thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2008 through 2011</entry><entry align="right" colname="column2" rowsep="0">5.0</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2012 through 2015</entry><entry align="right" colname="column2" rowsep="0">10.0</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2016 through 2019</entry><entry align="right" colname="column2" rowsep="0">15.0</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2020 through 2030</entry><entry align="right" colname="column2" rowsep="0">20.0.</entry> </row> </tbody> </tgroup> </table> </paragraph>
<paragraph commented="no" id="H9768F22978124ABF9FA8A114D2006150"><enum>(2)</enum><header>Means of compliance</header><text>An electric utility shall meet the requirements of paragraph (1) by—</text>
<subparagraph commented="no" id="H1B8AF8F5BC40466494C100A208BE6988"><enum>(A)</enum><text>generating electric energy using new renewable energy or existing renewable energy;</text> </subparagraph>
<subparagraph commented="no" id="H97D1438D749E488AB3E831D0008B6F1E"><enum>(B)</enum><text>purchasing electric energy generated by new renewable energy or existing renewable energy;</text> </subparagraph>
<subparagraph commented="no" id="H8E15D217523C4D76BF8511B900B4F5B4"><enum>(C)</enum><text>purchasing renewable energy credits issued under subsection (b); or</text> </subparagraph>
<subparagraph commented="no" id="H4FE7AD15C14C4FD4006468FF5686A494"><enum>(D)</enum><text>a combination of the foregoing.</text> </subparagraph></paragraph></subsection>
<subsection commented="no" id="H1CDB505C0DF24C35A9F3FC2CBA4BE7B6"><enum>(b)</enum><header>Renewable energy credit trading program</header>
<paragraph commented="no" id="HBCCF3F119A7047F9A422570095B3D043"><enum>(1)</enum><text>Not later than January 1, 2008, 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.</text> </paragraph>
<paragraph commented="no" id="H4351226C7EB1410580994B58BD4DBA39"><enum>(2)</enum><text>As part of such program the Secretary shall—</text>
<subparagraph commented="no" id="H0FB5C59305AB479C9FEE3529EE3529DD"><enum>(A)</enum><text>issue renewable energy credits to generators of electric energy from new renewable energy;</text> </subparagraph>
<subparagraph commented="no" id="HA6B0488C99CD4EB68F498D5CB5AEE394"><enum>(B)</enum><text>sell renewable energy credits to electric utilities at the rate of 1.5 cents per kilowatt-hour (as adjusted for inflation under subsection (g));</text> </subparagraph>
<subparagraph commented="no" id="H9FB62B716742428200A41B9DB2BB3469"><enum>(C)</enum><text>ensure that a kilowatt hour, including the associated renewable energy credit, shall be used only once for purposes of compliance with this section; and</text> </subparagraph>
<subparagraph commented="no" id="HC29533C6BF794FC68F4B07ACA162A330"><enum>(D)</enum><text>allow double credits for generation from facilities on Indian Lands, and triple credits for generation from small renewable distributed generators (meaning those no larger than 1 megawatt).</text> </subparagraph></paragraph>
<paragraph commented="no" id="HBA2BC4EC47AD4755ABD63D381BD03D6"><enum>(3)</enum><text>Credits under paragraph (2)(A) may only be used for compliance with this section for 3 years from the date issued.</text> </paragraph></subsection>
<subsection commented="no" id="HEE6AB29F20874508A520D2BD802DD121"><enum>(c)</enum><header>Enforcement</header>
<paragraph commented="no" id="H2FF078DEDFB340FCB84B2157137C65CD"><enum>(1)</enum><header>Civil penalties</header><text>Any electric utility that fails to meet the renewable energy requirements of subsection (a) shall be subject to a civil penalty.</text> </paragraph>
<paragraph commented="no" id="H606E6974E3E64966ABDC2D514C00AA43"><enum>(2)</enum><header>Amount of penalty</header><text>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.</text> </paragraph>
<paragraph commented="no" id="H7A193767899E4CF29442E02347D59574"><enum>(3)</enum><header>Mitigation or waiver</header><text>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).</text> </paragraph>
<paragraph commented="no" id="H71ACC388390A4F69BE265CDF13672F1F"><enum>(4)</enum><header>Procedure for assessing penalty</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/6303">42 U.S.C. 6303</external-xref>).</text> </paragraph></subsection>
<subsection commented="no" id="H7D3C2FA60F47468FA1508100228E3E16"><enum>(d)</enum><header>State renewable energy account program</header>
<paragraph commented="no" id="H7AF123456AB54917BC38FE90F18DAB8B"><enum>(1)</enum><text>The Secretary shall establish, not later than December 31, 2008, a State renewable energy account program.</text> </paragraph>
<paragraph commented="no" id="HCA17A37A664B4DF3B1D5387FA419005F"><enum>(2)</enum><text>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.</text> </paragraph>
<paragraph commented="no" id="H57595FC6CF4144549C05D99D6C000056"><enum>(3)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/6322">42 U.S.C. 6322</external-xref>) 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.</text> </paragraph>
<paragraph commented="no" id="H04C5DA8EAD26489FB052E4EBD21907FE"><enum>(4)</enum><text>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.</text> </paragraph>
<paragraph commented="no" id="H6AA4232AFA50483B8CE1EAA21EA0B51E"><enum>(5)</enum><text>In allocating funds under this program, the Secretary shall give preference—</text>
<subparagraph commented="no" id="H41A86E4DF1E84336918CC9B1A58B71FC"><enum>(A)</enum><text>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.</text> </subparagraph></paragraph></subsection>
<subsection commented="no" id="H308DFD8E99584C07ACE4513B22A634F5"><enum>(e)</enum><header>Rules</header><text>The Secretary shall issue rules implementing this section not later than 1 year after the date of enactment of this section.</text> </subsection>
<subsection commented="no" id="HEDF6E2BAB8A64663AF72FDE300944710"><enum>(f)</enum><header>Exemptions</header><text>This section shall not apply in any calendar year to an electric utility—</text>
<paragraph commented="no" id="HCD4D039B30064BF08F183DBE6D9C4285"><enum>(1)</enum><text>that sold less than 4,000,000 megawatt-hours of electric energy to electric consumers during the preceding calendar year; or</text> </paragraph>
<paragraph commented="no" id="H03A14FF0E24641DDAE3344E72ED94B16"><enum>(2)</enum><text>in Hawaii.</text> </paragraph></subsection>
<subsection commented="no" id="H27B0D2C98B8746E28D24295C1B5C2E68"><enum>(g)</enum><header>Inflation adjustment</header><text>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).</text> </subsection>
<subsection commented="no" id="H0956BD1B573549CA8D6C894B9F355361"><enum>(h)</enum><header>State programs</header><text>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.</text> </subsection>
<subsection commented="no" id="HD8BD59E4FCBA46C2B9004026376C00F3"><enum>(i)</enum><header>Definitions</header><text>For purposes of this section:</text>
<paragraph commented="no" id="H0692B31FBFEA4C9A9515297DFE76612D"><enum>(1)</enum><header>Base amount of electricity</header><text>The term <term>base amount of electricity</term> means the total amount of electricity sold by an electric utility to electric consumers in a calendar year, excluding—</text>
<subparagraph commented="no" id="H9807ADDEE60C4A4EBD3DF237E48D7B1"><enum>(A)</enum><text>electricity generated by a hydroelectric facility (including a pumped storage facility but excluding incremental hydropower); and</text> </subparagraph>
<subparagraph commented="no" id="H7BFF5E39934A4379B2979DE2838C762C"><enum>(B)</enum><text>electricity generated through the incineration of municipal solid waste.</text> </subparagraph></paragraph>
<paragraph commented="no" id="H6007A8CF2308465A9C6348DD511004A6"><enum>(2)</enum><header>Distributed generation facility</header><text>The term <term>distributed generation facility</term> means a facility at a customer site.</text> </paragraph>
<paragraph commented="no" id="H064E6E768F2A46B8803FDBB52761E079"><enum>(3)</enum><header>Existing renewable energy</header><text>The term <term>existing renewable energy</term> means, except as provided in paragraph (7)(B), electric energy generated at a facility (including a distributed generation facility) placed in service prior to the date of enactment of this section 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.</text> </paragraph>
<paragraph commented="no" id="H15397E33F1F444FE9E40C2F851B0A06B"><enum>(4)</enum><header>Geothermal energy</header><text>The term <term>geothermal energy</term> means energy derived from a geothermal deposit (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/613">section 613(e)(2)</external-xref> of the Internal Revenue Code of 1986).</text> </paragraph>
<paragraph commented="no" id="H056BA465E5FC4BDEB8B060496B0046B8"><enum>(5)</enum><header>Incremental geothermal production</header>
<subparagraph commented="no" id="HB905658232334EB3B27BD6000020A903"><enum>(A)</enum><header>In general</header><text>The term <term>incremental geothermal production</term> means for any year the excess of—</text>
<clause commented="no" id="H590ECEC4331B4746B800B0A4FCC6BFCE"><enum>(i)</enum><text>the total kilowatt hours of electricity produced from a facility (including a distributed generation facility) using geothermal energy, over</text> </clause>
<clause commented="no" id="H7CEF40713C5E4849852B7C2B26E767EA"><enum>(ii)</enum><text>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.</text> </clause></subparagraph>
<subparagraph commented="no" id="H27A0F40479924CAC9696E8ADD658207B"><enum>(B)</enum><header>Special rule</header><text>A facility described in subparagraph (A) which 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.</text> </subparagraph></paragraph>
<paragraph commented="no" id="HDEFA0697802C4FE2B1FEDA4E77FEBE3B"><enum>(6)</enum><header>Incremental hydropower</header><text>The term <term>incremental hydropower</term> 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.</text> </paragraph>
<paragraph commented="no" id="H22FBF8C49E9244AB92C4FEC4DDB5B5BB"><enum>(7)</enum><header>New renewable energy</header><text>The term <term>new renewable energy</term> means—</text>
<subparagraph commented="no" id="HF074CCD8E8734C8AB602A5C77CC65360"><enum>(A)</enum><text>electric energy generated at a facility (including a distributed generation facility) placed in service on or after January 1, 2003, from—</text>
<clause commented="no" id="HFDD9DFA1DFF24579BCDC98134D182A3"><enum>(i)</enum><text>solar, wind, or geothermal energy or ocean energy;</text> </clause>
<clause commented="no" id="H584CC1ED95A149B9A817816BAD8E9DB0"><enum>(ii)</enum><text>biomass (as defined in section 203(a) of the Energy Policy Act of 2005);</text> </clause>
<clause commented="no" id="H3EB3BDA77C9A46248BD684C300BE3745"><enum>(iii)</enum><text>landfill gas; or</text> </clause>
<clause commented="no" id="H4A4C3232526B4396BB5639049BF0FA3D"><enum>(iv)</enum><text>incremental hydropower; and</text> </clause></subparagraph>
<subparagraph commented="no" id="H323EB24C017545B1A2B0B0BBE9702E8"><enum>(B)</enum><text>for electric energy generated at a facility (including a distributed generation facility) placed in service prior to the date of enactment of this section—</text>
<clause commented="no" id="HEDFAB23B17CA421689A366E8BAA2BAF0"><enum>(i)</enum><text>the additional energy above the average generation in the 3 years preceding the date of enactment of this section at the facility from—</text>
<subclause commented="no" id="H80D45FB4EF2F4BBF95CEFD00587CBE5F"><enum>(I)</enum><text>solar or wind energy or ocean energy;</text> </subclause>
<subclause commented="no" id="HB455082EAB9649718144AA5BA4CD6724"><enum>(II)</enum><text>biomass (as defined in section 203(a) of the Energy Policy Act of 2005);</text> </subclause>
<subclause commented="no" id="H0355335778534F84B38259B8A24B98E1"><enum>(III)</enum><text>landfill gas; or</text> </subclause>
<subclause commented="no" id="H3EBE110D0A164DBC9C01720074D91D4"><enum>(IV)</enum><text>incremental hydropower.</text> </subclause></clause>
<clause commented="no" id="H6DADA88CCE78432087C521EB9C02C469"><enum>(ii)</enum><text>the incremental geothermal production.</text> </clause></subparagraph></paragraph>
<paragraph commented="no" id="HA9ED3A03C0994E78A344F4754483544B"><enum>(8)</enum><header>Ocean energy</header><text>The term <term>ocean energy</term> includes current, wave, tidal, and thermal energy.</text> </paragraph></subsection>
<subsection commented="no" id="H8DDE1A4D93534862AC034DE3007151D7"><enum>(j)</enum><header>Sunset</header><text>This section expires on December 31, 2030.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle>
<subtitle id="HE0C1944524474541A99E8262D66E656F"><enum>F</enum><header>Marine and hydrokinetic renewable energy promotion</header>
<section id="H515027BFC6CF4502B05C5247EDFFE7F4"><enum>451.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote>M<short-title>arine and Hydrokinetic Renewable Energy Promotion Act</short-title> of 2007</quote>.</text> </section>
<section id="H78CFF5600D214DA0914F372280DF07C3" section-type="subsequent-section"><enum>452.</enum><header>Definition</header><text display-inline="no-display-inline">For purposes of this subtitle, the term <term>marine and hydrokinetic renewable energy</term> means electrical energy from—</text>
<paragraph id="HC56E48EEDF764E95A1E54BC633705D9F"><enum>(1)</enum><text>waves, tides, and currents in oceans, estuaries, and tidal areas;</text> </paragraph>
<paragraph id="H9EB0B351F44D4D4886CBE8178538A6C1"><enum>(2)</enum><text>free flowing water in rivers, lakes, and streams;</text> </paragraph>
<paragraph id="HD9A632DEDB4B4BAA99C006E862469DF"><enum>(3)</enum><text>free flowing water in man-made channels, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes; and</text> </paragraph>
<paragraph id="HB36A286013234704A2F5A865BACBE61B"><enum>(4)</enum><text>differentials in ocean temperature (ocean thermal energy conversion).</text> </paragraph></section><appropriations-major id="LEXA-Repairid0B9BE9C632E14C4DA6660499FE349C0E">
<subsection id="LEXA-RepairidBAA4966586A94C66BD283458858C35CD"><enum></enum><continuation-text continuation-text-level="subsection">The term shall not include energy from any source that utilizes a dam, diversionary structure, or impoundment for electric power production purposes, except as provided in paragraph (3).</continuation-text></subsection></appropriations-major>
<section id="H186C821E53034476AC55914D31B20930"><enum>453.</enum><header>Research and development</header>
<subsection id="HF4DA0F08D8AF4894962CE920599B03D0"><enum>(a)</enum><header>Program</header><text display-inline="yes-display-inline">The Secretary of Energy, in consultation with the Secretary of Commerce and the Secretary of the Interior, shall establish a program of marine and hydrokinetic renewable energy research focused on—</text>
<paragraph id="H2379A8AE13754794A0DF24F71869A79E"><enum>(1)</enum><text>developing and demonstrating marine and hydrokinetic renewable energy technologies;</text> </paragraph>
<paragraph id="H161559F673AF4CC685C2336FB5272355"><enum>(2)</enum><text>reducing the manufacturing and operation costs of marine and hydrokinetic renewable energy technologies;</text> </paragraph>
<paragraph id="H1321CD2F10AC4A8393360020B212E8BD"><enum>(3)</enum><text>increasing the reliability and survivability of marine and hydrokinetic renewable energy facilities;</text> </paragraph>
<paragraph id="H8D2045A16AEA4FFFA64D01058D93F55C"><enum>(4)</enum><text>integrating marine and hydrokinetic renewable energy into electric grids;</text> </paragraph>
<paragraph id="H698537D9DDDF42FB8B781DE521852EE6"><enum>(5)</enum><text>identifying opportunities for cross fertilization and development of economies of scale between offshore wind and marine and hydrokinetic renewable energy sources;</text> </paragraph>
<paragraph id="H34DB7BAE4722452D9FD9EF30F253B8C1"><enum>(6)</enum><text>identifying, in consultation with the Secretary of Commerce and the Secretary of the Interior, the environmental impacts of marine and hydrokinetic renewable energy technologies and ways to address adverse impacts, and providing public information concerning technologies and other means available for monitoring and determining environmental impacts; and</text> </paragraph>
<paragraph id="HDE06395832924C8589FFFA5C319DCEE7"><enum>(7)</enum><text>standards development, demonstration, and technology transfer for advanced systems engineering and system integration methods to identify critical interfaces.</text> </paragraph></subsection>
<subsection id="HA6A5CD89BEAB4A66ABADAEAFD1B59E1"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy for carrying out this section $50,000,000 for each of the fiscal years 2008 through 2017.</text> </subsection></section>
<section id="H817DDAF4661D422ABBD296B968B40221"><enum>454.</enum><header>Adaptive Management and Environmental Fund</header>
<subsection id="H9A92B23146F44A088531F5CADCD38BB7"><enum>(a)</enum><header>Findings</header><text>The Congress finds that—</text>
<paragraph id="HFACEB37D22A14C65ADD00013451BBB00"><enum>(1)</enum><text>the use of marine and hydrokinetic renewable energy technologies can avoid contributions to global warming gases, and such technologies can be produced domestically;</text> </paragraph>
<paragraph id="HBED9F56440A0442F925DDB92A1396C3F"><enum>(2)</enum><text>marine and hydrokinetic renewable energy is a nascent industry; and</text> </paragraph>
<paragraph id="HF8825B47076E41F890B0A7818F6D45AD"><enum>(3)</enum><text>the United States must work to promote new renewable energy technologies that reduce contributions to global warming gases and improve our country’s domestic energy production in a manner that is consistent with environmental protection, recreation, and other public values.</text> </paragraph></subsection>
<subsection id="HFFE40701123848AD933280C573AB2190"><enum>(b)</enum><header>Establishment</header><text>The Secretary of Energy shall establish an Adaptive Management and Environmental Fund, and shall lend amounts from that fund to entities described in subsection (f) to cover the costs of projects that produce marine and hydrokinetic renewable energy. Such costs include design, fabrication, deployment, operation, monitoring, and decommissioning costs. Loans under this section may be subordinate to project-related loans provided by commercial lending institutions to the extent the Secretary of Energy considers appropriate.</text> </subsection>
<subsection id="HD908900A95564CF6B614E523DE6C8456"><enum>(c)</enum><header>Reasonable access</header><text>As a condition of receiving a loan under this section, a recipient shall provide reasonable access, to Federal or State agencies and other research institutions as the Secretary considers appropriate, to the project area and facilities for the purposes of independent environmental research.</text> </subsection>
<subsection id="HAD2451AD636C4C4FB3FB665B50A4FD89"><enum>(d)</enum><header>Public availability</header><text>The results of any assessment or demonstration paid for, in whole or in part, with funds provided under this section shall be made available to the public, except to the extent that they contain information that is protected from disclosure under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)</external-xref> of title 5, United States Code.</text> </subsection>
<subsection id="HCD30DEE5B27B40CA95D700DD6D5F00A4"><enum>(e)</enum><header>Repayment of loans</header>
<paragraph id="H434036842EAC459E96BC63620020FF49"><enum>(1)</enum><header>In general</header><text>The Secretary of Energy shall require a recipient of a loan under this section to repay the loan, plus interest at a rate of 2.1 percent per year, over a period not to exceed 20 years, beginning after the commercial generation of electric power from the project commences. Such repayment shall be required at a rate that takes into account the economic viability of the loan recipient and ensures regular and timely repayment of the loan.</text> </paragraph>
<paragraph id="H0A81F66A316F4E3CB51C13C7E3478F15"><enum>(2)</enum><header>Beginning of repayment required</header><text>No repayments shall be required under this subsection until after the project generates net proceeds. For purposes of this paragraph, the term <term>net proceeds</term> means proceeds from the commercial sale of electricity after payment of project-related costs, including taxes and regulatory fees that have not been paid using funds from a loan provided for the project under this section.</text> </paragraph>
<paragraph id="H9383CD6914A34078AC692DA3F5919984"><enum>(3)</enum><header>Termination</header><text>Repayment of a loan made under this section shall terminate as of the date that the project for which the loan was provided ceases commercial generation of electricity if a governmental permitting authority has ordered the closure of the facility because of a finding that the project has unacceptable adverse environmental impacts, except that the Secretary shall require a loan recipient to continue making loan repayments for the cost of equipment, obtained using funds from the loan that have not otherwise been repaid under rules established by the Secretary, that is utilized in a subsequent project for the commercial generation of electricity.</text> </paragraph></subsection>
<subsection id="H584F98E916BD4C99B608AE0717132F18"><enum>(f)</enum><header>Adaptive management plan</header><text>In order to receive a loan under this section, an applicant for a Federal license or permit to construct, operate, or maintain a marine or hydrokinetic renewable energy project shall provide to the Federal agency with primary jurisdiction to issue such license or permit an adaptive management plan for the proposed project. Such plan shall—</text>
<paragraph id="H2CD49D058805409CAA489BCF03AAD930"><enum>(1)</enum><text>be prepared in consultation with other parties to the permitting or licensing proceeding, including all Federal, State, municipal, and tribal agencies with authority under applicable Federal law to require or recommend design or operating conditions, for protection, mitigation, and enhancement of fish and wildlife resources, water quality, navigation, public safety, land reservations, or recreation, for incorporation into the permit or license;</text> </paragraph>
<paragraph id="HA4B48D428D3C4699A946A200ED3C5C51"><enum>(2)</enum><text>set forth specific and measurable objectives for the protection, mitigation, and enhancement of fish and wildlife resources, water quality, navigation, public safety, land reservations, or recreation, as required or recommended by governmental agencies described in paragraph (1), and shall require monitoring to ensure that these objectives are met;</text> </paragraph>
<paragraph id="H94FF793CBBA84B55B502FE4B4C808A0"><enum>(3)</enum><text>provide specifically for the modification or, if necessary, removal of the marine or hydrokinetic renewable energy project based on findings by the licensing or permitting agency that the marine or hydrokinetic renewable energy project has not attained or will not attain the specific and measurable objectives set forth in paragraph (2); and</text> </paragraph>
<paragraph id="H503D4BB3D95248E080E321C24EDCB0C6"><enum>(4)</enum><text>be approved and incorporated in the Federal license or permit.</text> </paragraph></subsection>
<subsection id="H1B0D902FC6BE4AD98331B478B837F144"><enum>(g)</enum><header>Sunset</header><text>The Secretary of Energy shall transmit a report to the Congress when the Secretary of Energy determines that the technologies supported under this subtitle have achieved a level of maturity sufficient to enable the expiration of the programs under this subtitle. The Secretary of Energy shall not make any new loans under this section after the report is transmitted under this subsection.</text> </subsection></section>
<section id="H006256D2F04A44A0A51139F2B6F8513"><enum>455.</enum><header>Programmatic environmental impact statement</header><text display-inline="no-display-inline">The Secretary of Commerce and the Secretary of the Interior shall, in cooperation with the Federal Energy Regulatory Commission and the Secretary of Energy, and in consultation with appropriate State agencies, jointly prepare programmatic environmental impact statements which contain all the elements of an environmental impact statement under section 102 of the National Environmental Policy Act of 1969 (<external-xref legal-doc="usc" parsable-cite="usc/42/4332">42 U.S.C. 4332</external-xref>), regarding the impacts of the deployment of marine and hydrokinetic renewable energy technologies in the navigable waters of the United States. One programmatic environmental impact statement shall be prepared under this section for each of the Environmental Protection Agency regions of the United States. The agencies shall issue the programmatic environmental impact statements under this section not later than 18 months after the date of enactment of this Act. The programmatic environmental impact statements shall evaluate among other things the potential impacts of site selection on fish and wildlife and related habitat. Nothing in this section shall operate to delay consideration of any application for a license or permit for a marine and hydrokinetic renewable energy technology project.</text> </section></subtitle>
<subtitle id="HD5F77A83105E4E878673866C156CF353"><enum>G</enum><header>Carbon capture and sequestration </header>
<section id="H688429BC6CCC4C9289FD31D212125FD"><enum>461.</enum><header>Carbon capture and storage research, development, and demonstration program</header>
<subsection id="H8CC26DE4C8704036B9F35618F2C5BB43"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 963 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16293">42 U.S.C. 16293</external-xref>) is amended—</text>
<paragraph id="HAA81A0FCA8BB40BA8000CB59A624F883"><enum>(1)</enum><text>in the section heading, by striking <quote><header-in-text level="section">research and development</header-in-text></quote> and inserting <quote><header-in-text level="section">and storage research, development, and demonstration</header-in-text></quote>;</text> </paragraph>
<paragraph id="H178C58452573444D90231693318629C3"><enum>(2)</enum><text>in subsection (a)—</text>
<subparagraph id="H9A83BB7C3AEE43B6A78CD6A671E4C344"><enum>(A)</enum><text>by striking <quote>research and development</quote> and inserting <quote>and storage research, development, and demonstration</quote>; and</text> </subparagraph>
<subparagraph id="H1AB1F50432A24C43B1F768EA9B426763"><enum>(B)</enum><text>by striking <quote>capture technologies on combustion-based systems</quote> and inserting <quote>capture and storage technologies related to energy systems</quote>;</text> </subparagraph></paragraph>
<paragraph id="HCCD863A0056D4DAC91E2004BC2AD67F9"><enum>(3)</enum><text>in subsection (b)—</text>
<subparagraph id="HE334D7D41BD54C9EBF0124D5F2C8E2E"><enum>(A)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end;</text> </subparagraph>
<subparagraph id="H2CA059B97BAA47838E2D746FED448BF2"><enum>(B)</enum><text>in paragraph (4), by striking the period at the end and inserting <quote>; and</quote>; and</text> </subparagraph>
<subparagraph id="H017A2E45783A4454B18B33EFB1A552D"><enum>(C)</enum><text>by adding at the end the following:</text>
<quoted-block id="H5EDD585BCCF94015B985477ED00902E" style="OLC">
<paragraph id="HB6142BA59E5B427487EFF0E6DC9E8CFB"><enum>(5)</enum><text>to expedite and carry out large-scale testing of carbon sequestration systems in a range of geological formations that will provide information on the cost and feasibility of deployment of sequestration technologies.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph>
<paragraph id="H2C59892022FD41FBB7A700B31498AC45"><enum>(4)</enum><text>by striking subsection (c) and inserting the following:</text>
<quoted-block id="H817BE77A73C04E1DA1C2F2125DA35713" style="OLC">
<subsection id="HBD67CBE6B4224146957624EC49FC96"><enum>(c)</enum><header>Programmatic Activities</header>
<paragraph id="H8EFBCD01530D40AFBEEF6D9991B46ED0"><enum>(1)</enum><header>Energy research and development underlying carbon capture and storage technologies</header>
<subparagraph id="HC4DD7F6B73FC49C0A2BFE4FBB7A34F82"><enum>(A)</enum><header>In general</header><text>The Secretary shall carry out fundamental science and engineering research (including laboratory-scale experiments, numeric modeling, and simulations) to develop and document the performance of new approaches to capture and store carbon dioxide.</text> </subparagraph>
<subparagraph id="HCCD8B62D2EB34C7A8B298EB3814DB140"><enum>(B)</enum><header>Program integration</header><text>The Secretary shall ensure that fundamental research carried out under this paragraph is appropriately applied to energy technology development activities and the field testing of carbon sequestration activities, including—</text>
<clause id="H78DC86D3C4B94DBEBDB5DB91F1CD8500"><enum>(i)</enum><text>development of new or improved technologies for the capture of carbon dioxide;</text> </clause>
<clause id="HB509A4AFF25B4CE4AA9257E6FEE2A52"><enum>(ii)</enum><text>modeling and simulation of geological sequestration field demonstrations; and</text> </clause>
<clause id="H2C6DC21D59004CF3BB5870E8EB47D59E"><enum>(iii)</enum><text>quantitative assessment of risks relating to specific field sites for testing of sequestration technologies.</text> </clause></subparagraph></paragraph>
<paragraph id="H1A3166B22CDD4E8CBA19E8E6182C6572"><enum>(2)</enum><header>Field validation testing activities</header>
<subparagraph id="HD184A24606CA47839B49281EE3E68D80"><enum>(A)</enum><header>In general</header><text>The Secretary shall promote, to the maximum extent practicable, regional carbon sequestration partnerships to conduct geologic sequestration tests involving carbon dioxide injection and monitoring, mitigation, and verification operations in a variety of candidate geological settings, including—</text>
<clause id="H260FDC019D53416492C039814F2CE885"><enum>(i)</enum><text>operating oil and gas fields;</text> </clause>
<clause id="HFA874A08AD694FF49D88845965F6098"><enum>(ii)</enum><text>depleted oil and gas fields;</text> </clause>
<clause id="H40359F164E0F4435BEC5077C16C49E1"><enum>(iii)</enum><text>unmineable coal seams;</text> </clause>
<clause id="H621B9BBBAF1F401A8DF0855D0485E6DA"><enum>(iv)</enum><text>saline formations; and</text> </clause>
<clause id="HDAE2CED268424A61B7849EAB63066E87"><enum>(v)</enum><text>deep geologic systems that may be used as engineered reservoirs to extract economical quantities of heat from geothermal resources of low permeability or porosity.</text> </clause></subparagraph>
<subparagraph id="H68FBC307981D4FF10072EAA8C5B1EB99"><enum>(B)</enum><header>Objectives</header><text>The objectives of tests conducted under this paragraph shall be—</text>
<clause id="H10A3E1B805934A6DAB04A5DAECD9C650"><enum>(i)</enum><text>to develop and validate geophysical tools, analysis, and modeling to monitor, predict, and verify carbon dioxide containment;</text> </clause>
<clause id="H52EA470FF3D8406791B300C554ED228D"><enum>(ii)</enum><text>to validate modeling of geological formations;</text> </clause>
<clause id="H18F338411B354119938800C2B240D3B"><enum>(iii)</enum><text>to refine storage capacity estimated for particular geological formations;</text> </clause>
<clause id="HE521B4BD18D34A67ADF0809E4D41445C"><enum>(iv)</enum><text>to determine the fate of carbon dioxide concurrent with and following injection into geological formations;</text> </clause>
<clause id="H2AC11AD05FC148B4AACBDFE8E86F60D7"><enum>(v)</enum><text>to develop and implement best practices for operations relating to, and monitoring of, injection and storage of carbon dioxide in geologic formations;</text> </clause>
<clause id="H99D20C542F124166AAE44878924511AB"><enum>(vi)</enum><text>to assess and ensure the safety of operations related to geological storage of carbon dioxide; and</text> </clause>
<clause id="H935C88368B2F4FB795CA5917B772ECFE"><enum>(vii)</enum><text>to allow the Secretary to promulgate policies, procedures, requirements, and guidance to ensure that the objectives of this subparagraph are met in large-scale testing and deployment activities for carbon capture and storage that are funded by the Department of Energy.</text> </clause></subparagraph></paragraph>
<paragraph id="HF1E682523D714C32AA3C57DA0065D163"><enum>(3)</enum><header>Large-scale testing and deployment</header>
<subparagraph id="HAFF36251E01E48BA8900DCECA64426CE"><enum>(A)</enum><header>In general</header><text>The Secretary shall conduct not less than 7 initial large-volume sequestration tests for geological containment of carbon dioxide (at least 1 of which shall be international in scope) to validate information on the cost and feasibility of commercial deployment of technologies for geological containment of carbon dioxide.</text> </subparagraph>
<subparagraph id="H450CE37C0A7D4F588C63DD00D7F3B11F"><enum>(B)</enum><header>Diversity of formations to be studied</header><text>In selecting formations for study under this paragraph, the Secretary shall consider a variety of geological formations across the United States, and require characterization and modeling of candidate formations, as determined by the Secretary.</text> </subparagraph></paragraph>
<paragraph id="H81F2E334F499454AA125E3D479EC295"><enum>(4)</enum><header>Preference in project selection from meritorious proposals</header><text>In making competitive awards under this subsection, subject to the requirements of section 989, the Secretary shall give preference to proposals from partnerships among industrial, academic, and government entities.</text> </paragraph>
<paragraph id="HB25DB233D2214C00B176D7FE0268B9EE"><enum>(5)</enum><header>Cost sharing</header><text>Activities under this subsection shall be considered research and development activities that are subject to the cost-sharing requirements of section 988(b).</text> </paragraph></subsection>
<subsection id="HFA9AC456E8A244D1AA24F82D4B9C007D"><enum>(d)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated to carry out this section—</text>
<paragraph id="H3D823556D5774E55ABD6D0E777E351F4"><enum>(1)</enum><text>$90,000,000 for fiscal year 2008;</text> </paragraph>
<paragraph id="H4F1ED2E8FBE04A67A5A080932DC7005B"><enum>(2)</enum><text>$105,000,000 for fiscal year 2009; and</text> </paragraph>
<paragraph id="HBD5CD65EB0DE41FCBC11A6B80327348"><enum>(3)</enum><text>$120,000,000 for fiscal year 2010.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H51E7D64662BA4614BBEDD17D38A9858"><enum>(b)</enum><header>Table of contents amendment</header><text>The item relating to section 963 in the table of contents for the Energy Policy Act of 2005 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H359634A07EA84BBD818255FC31758D8" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 963. Carbon capture and storage research, development, and demonstration program.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle>
<enum>V</enum><header>Green workforce</header>
<subtitle id="H8F60623962A742CE9766DB61BD42FFC"><enum>A</enum><header>Small manufacturer assistance</header>
<section id="H64A5FC8A38104C13A781A5006C2BDE83"><enum>501.</enum><header>Small manufacturer assistance through Hollings Manufacturing Extension Partnership Program</header>
<subsection id="HF00E29A0B7B2475988D7632D3C1921EE"><enum>(a)</enum><header>In general</header><text>Subsection (b) of section 25 of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k(b)</external-xref>) is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>; and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD7DDEB93AEBE40F1AD39311434BE218" style="traditional">
<paragraph id="HDC4A7C828B784B65B41F2959EF6D047"><enum>(4)</enum><text>information sharing and planning assistance for small manufacturing firms in identifying and implementing new green manufacturing technologies.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HC9F02297BEF44C08A6B2DEFCBED69E02"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated for the assistance described in paragraph (4) of section 25 of such Act $50,000,000 for fiscal year 2009 and for each fiscal year thereafter.</text> </subsection></section></subtitle>
<subtitle id="HC492EE0B48EE448EAEF22542DB7EE389"><enum>B</enum><header>Green workforce education incentives</header>
<section id="H1575A3D7A8054229A4C1A96B3229D716"><enum>511.</enum><header>National Green Certification Standards</header>
<subsection id="H16008F581F024A19BE15B424CCCABB1B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the enactment of this Act and every 3 years thereafter, the Environmental Protection Agency, the Institute of Environmental Health Sciences, National Science Foundation, and National Oceanic and Atmospheric Administration, in consultation with the Department of Labor and Education, (hereinafter in this subtitle collectively referred to as the <quote>Green Certification Standards Board</quote>) shall establish the green workforce standards described in subsection (b).</text> </subsection>
<subsection id="H4122440C8D1E4078B17592E6CF046107"><enum>(b)</enum><header>Green workforce standards</header><text>The green workforce standards described in this subsection are standards—</text>
<paragraph id="HA9DA4089E3BF452E9F3B69DD9427F900"><enum>(1)</enum><text>for successfully training individuals in advanced vehicle manufacturing, alternative fuel vehicle repair and maintenence, energy technology product development and deployment, and green building design and construction, and</text> </paragraph>
<paragraph id="H39BB3EE1C4C14D15929CF90037CABF9"><enum>(2)</enum><text>designed to be applied in determining—</text>
<subparagraph id="HBBD22B35C3F5476B86EA7366D0CB07DF"><enum>(A)</enum><text>eligibility for grants under sections 512, 513, 514, and 515, and</text> </subparagraph>
<subparagraph id="HFEB694F7D7C6425D8D4166A60C0E660"><enum>(B)</enum><text>whether requirements for instruction in green workforce skills are met for purposes of determining eligibility for loan forgiveness under section 428L of the Higher Education Act of 1965.</text> </subparagraph></paragraph></subsection></section>
<section id="H1082B00EB72D4E8C9284A5DD002DF520"><enum>512.</enum><header>Environmentally literate workforce grant program</header>
<subsection id="HCA25CC28D4B74B9B834B001F20FFBB52"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of Education may make grants, in consultation with the Green Certification Standards Board, to institutions of higher education to use for any of the following purposes:</text>
<paragraph id="H6C3A0C8CC77D47C7B1DDA0B5CDEB8DE8"><enum>(1)</enum><text>Reducing or eliminating dependency on combustion engines in the operation of the institution.</text> </paragraph>
<paragraph id="HF382F0E8EBF043258232B5BF5316F501"><enum>(2)</enum><text>Establishing environmental and green energy literacy instruction as a requirement for an undergraduate degree.</text> </paragraph>
<paragraph id="HE1EB5E05289C4E1C80CD0037E4006113"><enum>(3)</enum><text>Integrating environmental awareness and sustainability curriculum in programs of instruction, particularly in business, engineering, architecture, technology, manufacturing programs.</text> </paragraph>
<paragraph id="H0BECBA85FA0A45788578E46D7F5DBE5D"><enum>(4)</enum><text>Conducting professional development programs for faculty in all disciplines to enable faculty to incorporate environmental and sustainability content in their courses.</text> </paragraph></subsection>
<subsection id="HC41A35AE2E5A45059438563E74BABD2"><enum>(b)</enum><header>Application requirement</header><text>To be eligible for a grant under this section, an eligible entity shall prepare and submit to the Secretary an application at such time, and in such manner, and containing such information as the Secretary may require.</text> </subsection>
<subsection id="HA37F8AD0B9F5450894E1B8E544A95CD3"><enum>(c)</enum><header>Eligible entity</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>eligible entity</term> means any institution of higher education that has been deemed qualified by the Green Certification Standards Board.</text> </subsection>
<subsection id="H768649C76E0E4E3EAA46D873634F2B92"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section.</text> </subsection></section>
<section id="H866661B355FD452784B92D5D314639C1"><enum>513.</enum><header>Carbon neutrality grants in institutions of higher educations</header>
<subsection id="H50CEDA02E95B481B87A5D8CD43222994"><enum>(a)</enum><header>In general</header><text>The Secretary of Education may make grants, in consultation with the Green Certification Standards Board, to institutions of higher education to use for any of the following purposes:</text>
<paragraph id="H527F6A9DB69246F29C0076AB335722DF"><enum>(1)</enum><text>Implementing existing plans to achieve full carbon neutrality in the operations of the institution.</text> </paragraph>
<paragraph id="H3EC377CCE665424EBE202F2FFDA62FA0"><enum>(2)</enum><text>Disseminating the institution’s best practices to achieving full carbon neutrality.</text> </paragraph>
<paragraph id="H2B6C126854374CA8BE325E556EA7589D"><enum>(3)</enum><text>Providing technical assistance and training to the institution’s surrounding community in achieving full carbon neutrality.</text> </paragraph></subsection>
<subsection id="H47AD277200EF4B3FB76291718BE7E6DF"><enum>(b)</enum><header>Matching requirement</header><text>A grant made under this section may not exceed the amount that the institute of higher education receiving the grant certifies, to the Secretary, will be provided (in cash or in kind) from non-governmental sources to carry out the purposes for which the grant is made.</text> </subsection>
<subsection display-inline="no-display-inline" id="HC06F15DD64E4405987CF001BB9E64876"><enum>(c)</enum><header>Application requirement</header><text>To be eligible for a grant under this section, an institution of higher education shall prepare and submit to the Secretary an application at such time, and in such manner, and containing such information as the Secretary may require.</text> </subsection>
<subsection id="H37A5A88A8B7D44978640D6C67940F460"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section.</text> </subsection></section>
<section id="H9C54FB7265C04E8A9B17625239C7B872"><enum>514.</enum><header>National green ranking system grant</header>
<subsection id="HE30F6522954D475DB8084F06677C43FD"><enum>(a)</enum><header>In general</header>
<paragraph id="H6B03DA527B784DAC9400892FA9E9715F"><enum>(1)</enum><header>Grant</header><text display-inline="yes-display-inline">The Director of National Institute of Environmental Health Sciences may make grants, in consultation with the Green Certification Standards Board, to a qualified entity to develop and implement standards for a national green ranking system for institutions of higher education based on the following factors:</text>
<subparagraph id="H47DFEDA725064DEFBEC6384167476DD9"><enum>(A)</enum><text>Environmental literacy of an institution’s graduates.</text> </subparagraph>
<subparagraph id="HA385F2DC7278446C946DD89170975D1B"><enum>(B)</enum><text display-inline="yes-display-inline">Availability of programs of instruction in advanced vehicle manufacturing, alternative fuel vehicle repair and maintenance, energy technology product development and deployment, green building design and construction, and other green technology.</text> </subparagraph>
<subparagraph id="HC6AB8CC392C2408A9CD844739C00D3B3"><enum>(C)</enum><text>Extent of the institution’s sustainable and low impact facilities and operations.</text> </subparagraph></paragraph>
<paragraph id="H562C320FB7404343ADC73200EB4C5EFA"><enum>(2)</enum><header>Report</header><text>Such ranking system must be released not later than 1 year after the date of the enactment of this Act, and every 3 years thereafter, and must be made available to the general public and to appropriate publications and student guides.</text> </paragraph></subsection>
<subsection display-inline="no-display-inline" id="H52B1ED3AB99041F7970050A324AD406F"><enum>(b)</enum><header>Application requirement</header><text>To be eligible for a grant under this section, an entity shall prepare and submit to the Director an application at such time, and in such manner, and containing such information as the Director may require.</text> </subsection>
<subsection id="HFDCCE699FDC1404AA9531E52C969E415"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Director such sums as are necessary to carry out this section.</text> </subsection></section>
<section id="H75146C4DB7C54261A46BAEB6621C98EF"><enum>515.</enum><header>Green building and zero-energy home design training grants</header>
<subsection id="HD109E5410C0D49BEA176535E8FA0FC02"><enum>(a)</enum><header>In general</header>
<paragraph id="H3316DDBF50D8486987C1ABF30370562C"><enum>(1)</enum><header>Grants</header><text display-inline="yes-display-inline">The Director of National Institute of Environmental Health Sciences may make grants, in consultation with the Green Certification Standards Board, to institutions of higher education to use for programs of instruction which train individuals in any of the following:</text>
<subparagraph id="HBB7268E31FED40039C4857BFFDF6E14"><enum>(A)</enum><text>Green building design and construction.</text> </subparagraph>
<subparagraph id="HB746A6D165D24C1C8F983CFEAF8B66C4"><enum>(B)</enum><text>Zero-energy home design and construction.</text> </subparagraph></paragraph>
<paragraph id="HCCC57B4CB70E4F4CA0FC6DFB6124FCD8"><enum>(2)</enum><header>Goal</header><text display-inline="yes-display-inline">It shall be the goal of the grant program to help fund the training of 10,000 students in the programs of instruction described in paragraph (1).</text> </paragraph></subsection>
<subsection display-inline="no-display-inline" id="H1EEB3363FB5E4F58875980CA14937777"><enum>(b)</enum><header>Application requirement</header><text>To be eligible for a grant under this section, an institution of higher education shall prepare and submit to the Director an application at such time, and in such manner, and containing such information as the Director may require.</text> </subsection>
<subsection id="HEF607764ECC042D8A58B52326F133849"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Director such sums as are necessary to carry out this section.</text> </subsection></section>
<section display-inline="no-display-inline" id="HB3E624B44CC74A51A86869F5D55CC807" section-type="subsequent-section"><enum>516.</enum><header>Student loan forgiveness for green workforce members</header><text display-inline="no-display-inline">The <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> is amended by inserting after section 428K (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-11">20 U.S.C. 1078–11</external-xref>) the following:</text>
<quoted-block act-name="Higher Education Act of 1965" id="H05F38D3DE5274C7980002F5CD1605F70">
<section id="H02924D7BE6114205B4028542BB46FCF9"><enum>428L.</enum><header>Loan forgiveness for green workforce members</header>
<subsection id="H324C0B56BAB547B784CDE7A3D3362D5"><enum>(a)</enum><header>Program authorized</header>
<paragraph id="H1DCEDB61D51E41E49319B6641200C5A8"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For the purpose of encouraging individuals to enter and continue employment as green workforce members, the Secretary is authorized, from the funds appropriated under <internal-xref idref="HDBDB0B3BCB044CD1BE1B20704F454FF3" legis-path="428L.(h)">subsection (h)</internal-xref>, to forgive, in accordance with this section, the student loan debt of any new borrower after the date of enactment of the New Apollo Energy Act of 2007, who—</text>
<subparagraph id="H9A8AC11E6071437D9FEC4940DB4DBFD0"><enum>(A)</enum><text>is employed as a green workforce member;</text> </subparagraph>
<subparagraph id="HDF0C472020F345C19CE0B950FF548E73"><enum>(B)</enum><text display-inline="yes-display-inline">incurred such student loan debt in obtaining instruction in green workforce skills that complies with the green workforce standards established under section 511 of the New Apollo Energy Act of 2007; and</text> </subparagraph>
<subparagraph id="H36A3B132781144979300D2C4C1EEE4CD"><enum>(C)</enum><text>is not in default on a loan for which the borrower seeks forgiveness.</text> </subparagraph></paragraph>
<paragraph display-inline="no-display-inline" id="HF11052A29C6D4BDDAEB6C89100D018E2"><enum>(2)</enum><header>Method of loan forgiveness</header><text>To provide the loan forgiveness authorized in <internal-xref idref="H1DCEDB61D51E41E49319B6641200C5A8" legis-path="428L.(a)(1)">paragraph (1)</internal-xref>, the Secretary is authorized to carry out a program—</text>
<subparagraph id="H605556F65748480100C5FF1007917083"><enum>(A)</enum><text>through the holder of the loan, to assume the obligation to repay a green loan amount (as determined under <internal-xref idref="H5419FD367AB04C74ADCB226A03C69B3" legis-path="428L.(b)">subsection (b)</internal-xref>) for a loan made under this part; and</text> </subparagraph>
<subparagraph id="H6A95CB47A4354FF0BCB7EBD8615143B"><enum>(B)</enum><text>to cancel a green loan amount (as so determined) for a loan made under part D of this title.</text> </subparagraph></paragraph></subsection>
<subsection id="H5419FD367AB04C74ADCB226A03C69B3"><enum>(b)</enum><header>Qualified loan amounts</header><text display-inline="yes-display-inline">The Secretary shall forgive the loan obligation of the borrower, in accordance with <internal-xref idref="HF11052A29C6D4BDDAEB6C89100D018E2" legis-path="428L.(a)(2)">subsection (a)(2)</internal-xref>, not to exceed $17,500 in the aggregate, in the following increments:</text>
<paragraph id="HDD6EFCDD94BE436DB2C293A4C050F013"><enum>(1)</enum><text display-inline="yes-display-inline">For the completion of the first 2 years of employment as a green workforce member for which the borrower seeks forgiveness under this section, 20 percent of the borrower’s total loan obligation that was incurred in obtaining instruction in green workforce skills that complies with the green workforce standards established under section 511 of the New Apollo Energy Act of 2007, not to exceed $3,500.</text> </paragraph>
<paragraph id="H85AE707B29224F5B879D9F9D6004704D"><enum>(2)</enum><text display-inline="yes-display-inline">For the completion of the 3rd year of such employment, 20 percent of such total loan obligation, not to exceed $4,500.</text> </paragraph>
<paragraph display-inline="no-display-inline" id="H99B5C5CCADBA473998BF38C2F6E638B9"><enum>(3)</enum><text display-inline="yes-display-inline">For the completion of each of the 4th and 5th years of such employment, 40 percent of such total loan obligation, not to exceed $7,000 for each year.</text> </paragraph></subsection>
<subsection display-inline="no-display-inline" id="HFC3C00DA459C4B52A762FFEE448B0003"><enum>(c)</enum><header>Award basis; priority</header>
<paragraph id="H926C250C6F724E37B100C3A689BAA005"><enum>(1)</enum><header>Award basis</header><text>The Secretary shall provide forgiveness benefits under this section on a first-come, first-served basis (subject to <internal-xref idref="H351443D8E76D4BE38B41DFD424C38DE" legis-path="428L.(d)(2)">paragraph (2)</internal-xref>) and subject to the availability of appropriations.</text> </paragraph>
<paragraph id="H351443D8E76D4BE38B41DFD424C38DE"><enum>(2)</enum><header>Priority</header><text display-inline="yes-display-inline">The Secretary, in consultation with Green Certification Standards Board established under section 511 of the New Apollo Energy Act of 2007, shall establish priorities in providing forgiveness benefits under this section for a fiscal year by designating a percentage of loans for green workforce members employed in advanced vehicle manufacturing, alternative fuel vehicle repair and maintenance, clean energy technology product development and deployment, or green building construction based on the national need in each of those areas.</text> </paragraph></subsection>
<subsection id="H7CDB32A899F04EA5856E1CD08FCC4791"><enum>(d)</enum><header>Qualified Instruction Expenses</header><text display-inline="yes-display-inline">To be eligible for forgiveness under this section, a student loan obligation shall have been incurred to cover all or a portion the cost of attendance at an eligible institution for one or more periods of enrollment in a program of instruction that—</text>
<paragraph id="H0E4CA3EB53FD4691A5D940AF93FEE009"><enum>(1)</enum><text>is in a skill required for employment in advanced vehicle manufacturing, alternative fuel vehicle repair or maintenance, clean energy technology product development and deployment, or green building construction, as determined in accordance with regulations prescribed by the Secretary; and</text> </paragraph>
<paragraph id="H7A8563717D9943FDBA1F117B7E26FFDC"><enum>(2)</enum><text display-inline="yes-display-inline">complies with the green workforce standards established under section 511 of the New Apollo Energy Act of 2007.</text> </paragraph></subsection>
<subsection id="H7670261BB47A48779095C77E4351BFCD"><enum>(e)</enum><header>Construction</header><text>Nothing in this section shall be construed to authorize the refunding of any repayment of a loan.</text> </subsection>
<subsection id="HFE097983B5314287BDC609AE85CE2025"><enum>(f)</enum><header>Regulations</header><text>The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.</text> </subsection>
<subsection commented="no" id="H37FD1F6220FD43E3A015CA79B8D4FE00"><enum>(g)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="H898180187C644AC79297FED91D007FF2"><enum>(1)</enum><header>Green workforce member</header><text>The term <term>green workforce member</term> means an individual who is qualified to be and is employed in advanced vehicle manufacturing, alternative fuel vehicle repair and maintenance, clean energy technology product development and deployment, or green building construction.</text> </paragraph>
<paragraph id="H1AA6694CFDE24B9FA30017993F868313"><enum>(2)</enum><header>Advanced vehicle manufacturing</header><text display-inline="yes-display-inline">The term <term>advanced vehicle manufacturing</term> means the manufacturing of —</text>
<subparagraph id="H7A9794EFA68444EBAC640043F3F9BDB1"><enum>(A)</enum><text>any new advanced lean burn technology motor vehicle (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B(c)(3)</external-xref> of the Internal Revenue Code of 1986):</text> </subparagraph>
<subparagraph id="H5897A162B3574EC39CC3FED9D1F7BEC6"><enum>(B)</enum><text>any new qualified hybrid motor vehicle (as defined in section 30B(d)(3)(A) of such Code and determined without regard to any gross vehicle weight rating); or</text> </subparagraph>
<subparagraph id="H44C1CA5BB4EF42418800CFDE10FE9F3"><enum>(C)</enum><text>any new vehicle that is a light-duty, medium-duty, or heavy-duty on-road or nonroad vehicle that is propelled by an internal combustion engine, heat engine, or an electric motor (or any combination thereof) and an energy storage system using (or capable of using)—</text>
<clause id="HEBF77E78582C434983D50180FC8CC64F"><enum>(i)</enum><text>any combustible fuel;</text> </clause>
<clause id="H2318BF94C0F5407D90D1231129C85909"><enum>(ii)</enum><text>an on-board, rechargeable storage device: and</text> </clause>
<clause id="HBBA03623B8C8464D970092ADBBBE4A8"><enum>(iii)</enum><text>a means of using an off-board source of electricity to operate the vehicle in intermittent or continuous all-electric mode.</text> </clause></subparagraph></paragraph>
<paragraph id="H73B4C6E14AE94FCFB4B20021AB12CF63"><enum>(3)</enum><header>Alternative fuel vehicle repair and maintenance</header><text display-inline="yes-display-inline">The term <term>alternative fuel vehicle repair and maintenance</term> means vehicle repair and maintenance for advanced green technologies —</text>
<subparagraph id="HE9EB5945D85249E3B1C3BDE0B07015DA"><enum>(A)</enum><text>to re-equip, expand, or establish any manufacturing facility of the eligible taxpayer to produce advanced technology motor vehicles or to produce components used in such vehicles;</text> </subparagraph>
<subparagraph id="H33D9C713DC4643118FC391972100905D"><enum>(B)</enum><text>for engineering integration of such vehicles;</text> </subparagraph>
<subparagraph id="HF10EE1CD3EA340F28EACB9807358B252"><enum>(C)</enum><text>for research and development related to advanced technology motor vehicles; and</text> </subparagraph>
<subparagraph id="H1D1350AF6D024422A73DF1EE20008F27"><enum>(D)</enum><text display-inline="yes-display-inline">to repair vehicles that utilize an energy supply or end-use technology, including a technology using renewable energy sources, that over its lifecycle and compared to similar technologies in commercial use—</text>
<clause id="H69663BBA07D145AFB8052FD9B6E2DAC"><enum>(i)</enum><text>emits substantially lower levels of pollutants or greenhouse gases, or both; and</text> </clause>
<clause id="HD85DAE64E97F4663A143ACDA9E47935C"><enum>(ii)</enum><text>may generate substantially smaller or less toxic (or both) volumes of solid or liquid waste.</text> </clause></subparagraph></paragraph>
<paragraph id="HA03F7EE2208F465AB86D08CA3655127C"><enum>(4)</enum><header>Clean energy technology product development and deployment</header><text display-inline="yes-display-inline">The term <term>clean energy technology product development and deployment</term> means the development and deployment of an energy supply or end-use technology, including a technology using renewable energy sources, that, over its lifecycle and compared to similar technologies in commercial use—</text>
<subparagraph id="HBCE9D5E9B3974C8D8D45CBC290EEDE00"><enum>(A)</enum><text>emits substantially lower levels of pollutants or greenhouse gases, or both; and</text> </subparagraph>
<subparagraph id="H99EB40CC886A483EA500B43875EFC2D0"><enum>(B)</enum><text>may generate substantially smaller or less toxic (or both) volumes of solid or liquid waste.</text> </subparagraph></paragraph>
<paragraph id="H70BBABB1DB2743B70006099D9F23CD7F"><enum>(5)</enum><header>Green building construction</header><text display-inline="yes-display-inline">The term <term>green building design and construction</term> means building design and construction that uses sustainable design principles to reduce the use of nonrenewable resources, minimize environmental impact, and relate people with the natural environment.</text> </paragraph></subsection>
<subsection id="HDBDB0B3BCB044CD1BE1B20704F454FF3"><enum>(h)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="HE06C8A5093044A258144B6A700DB1E95"><enum>517.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="H1132E1C614444B16ABF3889C501B8168"><enum>(1)</enum><text>The terms <term>advanced vehicle manufacturing</term>, <term>alternative fuel vehicle repair and maintenance</term>, <term>energy technology product development and deployment</term>, <term>green building design and construction</term> have the meaning given such terms, respectively, in section 428L of the Higher Education Act of 1965,</text> </paragraph>
<paragraph id="H975F413183614816A204DB6FFC00A000"><enum>(2)</enum><text>The term <term>institution of higher education</term> has the meaning given such term in section 101(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001(a)</external-xref>).</text> </paragraph></section></subtitle>
<enum>VI</enum><header>Federal Government leverage to move new technologies to market</header>
<subtitle id="H376FF0FF4D6F4B898FCA517293B495D0"><enum>A</enum><header>Incentives for clean energy technology</header>
<section id="H7C9B0202125146DFAD5700C601001702"><enum>601.</enum><header>New Energy Technologies Commission</header>
<subsection id="HE3E223AC3DEC4F82846CB3D9D4E1FC70"><enum>(a)</enum><header>Establishment</header><text>There is established a commission to be known as the <quote>New Energy Technologies Commission</quote> (hereafter in this section referred to as the <quote>Commission</quote>).</text> </subsection>
<subsection id="HD0E0E80D33424844AD74F3CFE874F2CB"><enum>(b)</enum><header>Duties</header>
<paragraph id="H8DD9D0AA6FE9433AB7A44C830053813B"><enum>(1)</enum><header>Identify new energy technologies eligible for incentives</header>
<subparagraph id="HB8CB5B5F6E294114ABCB55D99090444C"><enum>(A)</enum><header>In general</header><text>The Commission shall oversee—</text>
<clause id="HB70A6C4AF04E430B826300F504C4BCB7"><enum>(i)</enum><text>the identification of—</text>
<subclause id="HC74F5F6DF1BC490588F5212FCE9F50B7"><enum>(I)</enum><text>Apollo Approved energy efficiency technologies; and</text> </subclause>
<subclause id="HE0A72D85D50F4ADDAAF700F3336B5EE5"><enum>(II)</enum><text>Apollo Approved domestic clean energy production technologies; that the Commission finds substantially contributes to the goals of this Act and merits consideration for favorable incentives by Congress; and</text> </subclause></clause>
<clause id="HE421C9AE276D4CB7ACF58386B9F47792"><enum>(ii)</enum><text>the identification of criteria and standards for determining technologies eligible under clause (i) as qualifying energy efficiency standards used to determine eligibility for the loan guarantees and grants outlined in this title.</text> </clause></subparagraph>
<subparagraph id="H8899194FE783451FB2E2C00080C02ED3"><enum>(B)</enum><header>Matters to be considered by the commission</header><text>In developing energy efficiency standards, the Commission shall—</text>
<clause id="H7BB158506EC248D186FD7DB0E5E27B7C"><enum>(i)</enum><text>consult with the Environmental Protection Agency program known as <quote>Energy Star</quote>; and</text> </clause>
<clause id="HD2DE00C121994ECA82A2AF6B9E09C988"><enum>(ii)</enum><text>focus on technologies manufactured domestically.</text> </clause></subparagraph></paragraph>
<paragraph id="HB8B80053A03A45C1A053AC7238F9891B"><enum>(2)</enum><header>Report</header><text>Not later than one year after the date of enactment of this Act, and every six months thereafter the Commission shall submit to Congress a report that contains—</text>
<subparagraph id="H851183D2360A4B05B5678D955D86DD3E"><enum>(A)</enum><text>a detailed statement of any technology that qualifies for or merits the incentives in this title;</text> </subparagraph>
<subparagraph id="HBDCDC33E5D664E2DA5553E00C98BEAEA"><enum>(B)</enum><text>recommendations for incentives specifically tailored to be beneficial to such technologies and any standards that should be defined in statute to determine eligibility for such benefits; and</text> </subparagraph>
<subparagraph id="H72642366E9B24523B4E7A4274FE78FC"><enum>(C)</enum><text>recommendations for other legislation, administrative actions, and voluntary actions necessary to implement such incentives.</text> </subparagraph></paragraph>
<paragraph id="H02C8342A00D24798B3E2FC50E026CB87"><enum>(3)</enum><header>Apollo approved energy technologies</header><text>For purposes of this section, the term <term>Apollo Approved energy technologies</term> means any final unit product that the Commission finds substantially contributes to the goals of this Act and merits consideration for favorable incentives by Congress not already included in this Act.</text> </paragraph>
<paragraph id="H0D09CCF734C8480585451DAEFDA38878"><enum>(4)</enum><header>Apollo approved domestic clean energy production technologies</header><text>For purposes of this section, the term <term>Apollo Approved domestic clean energy production technologies</term> means any domestic energy production technology that the Commission finds substantially contributes to the goals of this Act and merits consideration for favorable incentives by Congress not already included in this Act.</text> </paragraph></subsection>
<subsection id="HC8C5EB8C86F548FDBA1D6716EDBE6A"><enum>(c)</enum><header>Membership</header>
<paragraph id="H2D51D638D0584C62B917766B00B8D552"><enum>(1)</enum><header>In general</header><text>The Commission shall be comprised of 11 members.</text> </paragraph>
<paragraph id="HB191AA5D9DAC48C080CF4B213BB9431F"><enum>(2)</enum><header>Appointments by this Act</header><text>The following are hereby designated as members of the Commission:</text>
<subparagraph id="HF6DFB21921C04027008FFFA896E507DE"><enum>(A)</enum><text>The Secretary of the Department of Energy, the Director of the Office of Energy Efficiency and Renewable Energy of the Department of Energy, or the Administrator of the Energy Information Administration of the Department of Energy.</text> </subparagraph>
<subparagraph id="H04E896EED548450BBE5CA45D74BD1D00"><enum>(B)</enum><text>The Secretary of the Department of Commerce or designee.</text> </subparagraph>
<subparagraph id="HD31A1CE8B9AD483CB286AAE91719F17E"><enum>(C)</enum><text>The Secretary of the Department of Treasury or designee.</text> </subparagraph>
<subparagraph id="HC498C13491A24C440099006F81A11CAE"><enum>(D)</enum><text>The Director of the Environmental Protection Agency or designee.</text> </subparagraph></paragraph>
<paragraph id="H24509345240B4C7EB080C9D1C382F139"><enum>(3)</enum><header>Appointments by the Senate and House of Representatives</header><text>Seven members appointed jointly by the majority leader and minority leader of the Senate and the Speaker and minority leader of the House of Representatives, of whom—</text>
<subparagraph id="H43469EBDD637403188C51E9085F19843"><enum>(A)</enum><text>1 shall represent consumer advocacy organizations focusing on energy issues;</text> </subparagraph>
<subparagraph id="HC41D59359B6C45EDA25DA0E3AEF438B7"><enum>(B)</enum><text>1 shall represent auto manufacturers;</text> </subparagraph>
<subparagraph id="H6D28977E8CE84A719145F3A4E860B6B"><enum>(C)</enum><text>1 shall represent the lending community;</text> </subparagraph>
<subparagraph id="H059FD8DE60354A1D97086286F5AAA76"><enum>(D)</enum><text>1 shall represent environmental advocacy organizations focusing on energy issues;</text> </subparagraph>
<subparagraph id="H1EA715E951E742E7AB61E8292FF9CE84"><enum>(E)</enum><text>1 shall represent organized labor;</text> </subparagraph>
<subparagraph id="H3AA701BF6A0D459A89296182351BF6D7"><enum>(F)</enum><text>1 shall represent small business manufacturers; and</text> </subparagraph>
<subparagraph id="H41416475FB6C4187825D8C1102B79C9F"><enum>(G)</enum><text>1 shall represent the energy industry.</text> </subparagraph></paragraph>
<paragraph id="H6C932C9D7E5D44E8BF137665248C023E"><enum>(4)</enum><header>Date of appointments</header><text>The appointment of a member of the Commission shall be made not later than 30 days after the date of enactment of this Act.</text> </paragraph>
<paragraph id="H0315484846E14764BF2E5F5E31657F4E"><enum>(5)</enum><header>Term</header><text>A member shall be appointed for 5 year terms.</text> </paragraph></subsection>
<subsection id="HCAB456AC40B84B1FBAC45C4E3644EE9"><enum>(d)</enum><header>Powers of Commission</header>
<paragraph id="HC19A4018941343ABA1C7C242049C21CA"><enum>(1)</enum><header>Hearings and sessions</header><text>The Commission may, for the purpose of carrying out this section, hold hearings, sit and act at times and places, take testimony, and receive evidence to carry out its duties under subsection (b). The Commission may administer oaths or affirmations to witnesses appearing before it.</text> </paragraph>
<paragraph id="HE1F178F49A354A40BC7C432000A96362"><enum>(2)</enum><header>Powers of members and agents</header><text>Any member or agent of the Commission may, if authorized by the Commission, take any action which the Commission is authorized to take by this section.</text> </paragraph>
<paragraph id="HC8DF908BE9C7488EA7A6E7019415B048"><enum>(3)</enum><header>Obtaining official information</header>
<subparagraph id="H178732CD56AA4631B53682F562CA092C"><enum>(A)</enum><header>Requirement to furnish</header><text>Except as provided in subparagraph (B), if the Commission submits a request to a Federal department or agency for information necessary to enable the Commission to carry out this section, the head of that department or agency shall furnish that information to the Commission.</text> </subparagraph>
<subparagraph id="HEBFDD2716EDE4891B0B2F92C690700AA"><enum>(B)</enum><header>Exception for national security</header><text>If the head of a Federal department or agency determines that it is necessary to withhold requested information from disclosure to protect the national security interests of the United States, the department or agency head shall not furnish that information to the Commission.</text> </subparagraph></paragraph>
<paragraph id="HDBAB81E8E0014314996D386C9FFA68E"><enum>(4)</enum><header>Mails</header><text>The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the United States.</text> </paragraph>
<paragraph id="HF735D98552C8464087002B72003482D7"><enum>(5)</enum><header>Administrative support services</header><text>Upon the request of the Director, the Administrator of General Services shall provide to the Commission, on a reimbursable basis, the administrative support services necessary for the Commission to carry out this section.</text> </paragraph>
<paragraph id="H7A227CFFFA1444DB84A2F762767369F6"><enum>(6)</enum><header>Gifts and donations</header><text>The Commission may accept, use, and dispose of gifts or donations of services or property to carry out this Act, but only to the extent or in the amounts provided in advance in appropriation Acts.</text> </paragraph>
<paragraph id="HF3EFF69B45EB430996CF7F65F2B07549"><enum>(7)</enum><header>Contracts</header><text>The Commission may contract with and compensate persons and government agencies for supplies and services, without regard to section 3709 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/41/5">41 U.S.C. 5</external-xref>).</text> </paragraph></subsection>
<subsection id="HA7088F604B8A47BEB0E84C4987BD2D08"><enum>(e)</enum><header>Initial Meeting-</header><text>The Commission shall hold the initial meeting of the Commission not later than the earlier of—</text>
<paragraph id="H5606F96F651A45F4912684BD3D76BF4"><enum>(1)</enum><text>the date that is 30 days after the date on which all members of the Commission have been appointed; or</text> </paragraph>
<paragraph id="HBC5D2CC5768A429C97DF67F90EDA2D"><enum>(2)</enum><text>the date that is 90 days after the date of enactment of this Act, regardless of whether all members have been appointed.</text> </paragraph></subsection>
<subsection id="H5E13498BB420451E969EAB54052FC4A2"><enum>(f)</enum><header>Chairperson and Vice Chairperson</header><text>The Commission shall select a Chairperson and Vice Chairperson from among the members of the Commission determined under subsection (c)(2).</text> </subsection>
<subsection id="H13F3E705093B4EE7ADE183F15D1F765"><enum>(g)</enum><header>Executive Committee</header><text>The Commission shall have an executive committee comprised of any five members of the Commission.</text> </subsection>
<subsection id="H028585FB2E164971B8BA9798F1654031"><enum>(h)</enum><header>Conflicts of Interest</header><text>Each member appointed to the Commission shall submit a financial disclosure report pursuant to the Ethics in Government Act of 1978, notwithstanding the minimum required rate of compensation or time period employed.</text> </subsection>
<subsection id="H431819A631A94D038BCD04F972E0E811"><enum>(i)</enum><header>Staff Appointment and Compensation</header><text>The Chairperson, in consultation with the Vice Chairperson, in accordance with rules agreed upon by the Commission, may appoint and fix the compensation of a staff director and such other personnel as may be necessary to enable the Commission to carry out its functions, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates; except that no rate of pay fixed under this subsection may exceed the equivalent of that payable for a position at level V of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5316">section 5316</external-xref> of title 5, United States Code.</text> </subsection>
<subsection id="H61E05B2862F34D0B83EEE45058C8C6F"><enum>(j)</enum><header>Personnel as Federal Employees</header>
<paragraph id="H5C77378987C44A2B9F493F668594D89D"><enum>(1)</enum><header>In general</header><text>The staff director and any personnel of the Commission who are employees shall be employees under <external-xref legal-doc="usc" parsable-cite="usc/5/2105">section 2105</external-xref> of title 5, United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.</text> </paragraph>
<paragraph id="HE752BD3759E34B649C1B64AE5755037D"><enum>(2)</enum><header>Members of commission</header><text>Subparagraph (A) shall not be construed to apply to members of the Commission.</text> </paragraph></subsection>
<subsection id="HBCAE98F291FA4E05B91084E12CB2CC4E"><enum>(k)</enum><header>Detailees</header><text>Any Federal Government employee may be detailed to the Commission without reimbursement from the Commission, and such detailee shall retain the rights, status, and privileges of his or her regular employment without interruption.</text> </subsection>
<subsection id="HE768911DF3344EC9BCA4C56979A1839C"><enum>(l)</enum><header>Consultant Services</header><text>The Commission is authorized to procure the services of experts and consultants in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United States Code, but at rates not to exceed the daily rate paid a person occupying a position at level IV of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code.</text> </subsection>
<subsection id="H59839A552915491B8DC986D576EAC98"><enum>(m)</enum><header>Member Compensation</header><text>Each member of the Commission specified in subsection (c)(3) may be compensated at a rate not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level IV of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code, for each day during which that member is engaged in the actual performance of the duties of the Commission.</text> </subsection>
<subsection id="HFF7D1A7589414487A17260CC0434CFEA"><enum>(n)</enum><header>Information and Administrative Expenses</header><text>The Federal agencies and members specified in subsection (c)(3) shall provide the Commission such information and pay such administrative and members expenses as the Commission requires to carry out this section, consistent with the requirements and guidelines of the Federal Advisory Commission Act (5 U.S.C. App.).</text> </subsection>
<subsection id="H8775E39832A540C8879B51A610BE20BC"><enum>(o)</enum><header>Travel Expenses</header><text>While away from their homes or regular places of business in the performance of services for the Commission, members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under <external-xref legal-doc="usc" parsable-cite="usc/5/5703">section 5703</external-xref> of title 5, United States Code.</text> </subsection>
<subsection id="HD81F7EE7B0D440F2AD4C5800EF76B441"><enum>(p)</enum><header>Authorization of Appropriations</header>
<paragraph id="HCAA3FBB68F9E470185DFA88EFD3289E"><enum>(1)</enum><header>In general</header><text>There is authorized to be appropriated to the Commission such sums as may be necessary to carry out this section.</text> </paragraph>
<paragraph id="H6A2510978AE84144BB1E9BBF9C622931"><enum>(2)</enum><header>Availability</header><text>Amounts appropriated under paragraph (1) are authorized to remain available until expended.</text> </paragraph></subsection></section>
<section id="H4551948E8C284384875E4FB07F30833D"><enum>602.</enum><header>Loan Guarantees Program</header>
<subsection id="H8CAF69DB0A3C450FAF3ED0F3CA07EEC4"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The New Energy Technologies Commission shall establish and carry out loan guarantee and grant programs for investments made in structures and equipment necessary to produce innovative energy technologies in the United States, including advanced wind turbines, advanced solar power, advanced marine, high conductivity transmission lines, advanced geothermal, energy efficient appliances, fuel efficient cars, and high capacity efficient airplanes.</text>
<paragraph id="H639C0DFE40A94C2D8165F4FF43692B1D"><enum>(1)</enum><header>Applicant assurances</header><text>An applicant for a loan guarantee under this section shall provide assurances, satisfactory to the Commission, that—</text>
<subparagraph id="HAAF07E7362714AE189063E824C9B2E5D"><enum>(A)</enum><text display-inline="yes-display-inline">the project has been subject to a full technical review;</text> </subparagraph>
<subparagraph id="H8E35432A8CBA40B6A6A8306B5F6F41EC"><enum>(B)</enum><text>the project is covered by adequate project performance guarantees;</text> </subparagraph>
<subparagraph id="H03FAFE6C2DB4447EB1B561C45FDD44E"><enum>(C)</enum><text>the project, with the loan guarantee, is economically viable; and</text> </subparagraph>
<subparagraph id="HD9B8E5410D3D4066A4096E21E972DF00"><enum>(D)</enum><text>there is a reasonable assurance of repayment of the guaranteed loan.</text> </subparagraph></paragraph>
<paragraph id="HAC2E577D277F42C98103009FEE8E01DC"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="H192967EC9A2A4E109FDB9200DE1E4C8E"><enum>(A)</enum><header>Maximum guarantee</header><text>Except as provided in subparagraph (B), a loan guarantee under this section may be issued for up to 70 percent of the estimated cost of a project, but may not exceed $500,000,000 for a project.</text> </subparagraph>
<subparagraph id="H097A9935AB03452D80984C38C2991BA7"><enum>(B)</enum><header>Additional guarantees</header>
<clause id="H94A9655D1C2C430FA8BA1050055A416"><enum>(i)</enum><header>In general</header><text>The Commission may issue additional loan guarantees for a project to cover up to 80 percent of the excess of actual project cost over estimated project cost but not to exceed 15 percent of the amount of the original guarantee.</text> </clause>
<clause id="H15F171B89D364821009E5998F3EC04C4"><enum>(ii)</enum><header>Principal and interest</header><text>Subject to subparagraph (A), the Commission shall guarantee 100 percent of the principal and interest of a loan made under subparagraph (A).</text> </clause></subparagraph></paragraph>
<paragraph id="H6961906AD73C45C8947689C607244A7"><enum>(3)</enum><header>Equity contributions</header><text>To be eligible for a loan guarantee under this section, an applicant for the loan guarantee shall have binding commitments from equity investors to provide an initial equity contribution of at least 30 percent of the total project cost.</text> </paragraph>
<paragraph id="HA18E24461DB446988F3D488BCC34F436"><enum>(4)</enum><header>Approval</header><text>An application for a loan guarantee under this section shall be approved or disapproved by the Commission not later than 90 days after the application is received by the Commission.</text> </paragraph></subsection>
<subsection id="HB06750D87BFB45FF9671358111C8AB07"><enum>(b)</enum><header>Guarantee Fee</header><text>The recipient of a loan guarantee under subsection (a) shall pay the Commission an amount determined by the Commission to be sufficient to cover the administrative costs of the Commission relating to the loan guarantee.</text> </subsection>
<subsection id="H43EF388E324A4C7E95057C00651F4D9E"><enum>(c)</enum><header>Payment of principal and interest; default; recovery of losses</header>
<paragraph commented="no" display-inline="yes-display-inline" id="HE7AAF05D247047A8A3B95B4473D04260"><enum>(1)</enum><text>With respect to any loan guaranteed pursuant to this section, the commission is authorized to enter into a contract to pay the lender for and on behalf of the borrower the principal and interest charges which become due and payable on the unpaid balance of such loan if the commission finds—</text>
<subparagraph id="HECF402A48FD54E16B6AE0039AC81CFE9" indent="up1"><enum>(A)</enum><text>that the borrower is unable to meet principal and interest charges, that it is in the public interest to permit the borrower to continue to pursue the purposes of the project, and that the probable net cost to the Federal Government in paying such principal will be less than that which would result in the event of a default; and</text> </subparagraph>
<subparagraph id="H19FF6BCF1A834C3E89AB00A9A51CFCDF" indent="up1"><enum>(B)</enum><text>that the amount of such principal and interest charges which the Commission is authorized to pay shall be no greater than the amount of principal and interest which the borrower is obligated to pay under the loan agreement shall take such action as may be appropriate to recover the amounts of such payments (including any payment of principal and interest under subsection (a)(2)(ii)) from such assets of the defaulting borrower as are associated with the activity with respect to which the loan was made or from any other surety included in the terms of the guarantee.</text> </subparagraph></paragraph>
<paragraph id="H497164487C474CC4AC1B46524322C42F" indent="up1"><enum>(2)</enum><text>In the event of any default by a qualified borrower on a guaranteed loan, the Commission is authorized to make payment in accordance with the guarantee, and the Attorney General.</text> </paragraph></subsection>
<subsection id="HAFCC4FB318524AF0AD33B0051C647D2"><enum>(d)</enum><header>Full Faith and Credit</header><text>The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Commission shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan.</text> </subsection>
<subsection id="H30680B28E1C44A52BB49D45958B44DDE"><enum>(e)</enum><header>Authorization of Appropriations</header><text>The aggregate amount of guarantees under this section for fiscal years 2008 through 2017 shall not exceed $200,000,000,000.</text> </subsection></section>
<section id="H70C2ED4ACE8646DABB8B08B0B113E9ED"><enum>603.</enum><header>Grant Program to Create Clean Energy Business Districts</header>
<subsection id="HA73A6A46088A40378CF4FB18078154FB"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy is authorized to make grants to units of State government, local government, private, non-profit community development organizations, and Indian tribe economic development entities for the purpose of building infrastructure, promoting and marketing centralized business district developments with a focus on the innovative clean energy technologies.</text>
<paragraph id="H2B0375662DA44A44B0EBF644F731C94"><enum>(1)</enum><header>Conditions</header><text>The Secretary shall issue grants on a competitive basis for projects that will—</text>
<subparagraph id="H07CF9BE197D34A17AEF98C4E9465615B"><enum>(A)</enum><text>promote job growth and economic development in—</text>
<clause id="HF95247FA91D8489A9985B9F9EE5C4746"><enum>(i)</enum><text>rural communities; or</text> </clause>
<clause id="H41771AD70D5A406881B9F73B7EB4E4"><enum>(ii)</enum><text>economically depressed areas, including inner-city urban areas;</text> </clause></subparagraph>
<subparagraph id="HFB9E541483354A0085A14544E90065D0"><enum>(B)</enum><text>promote the deployment of innovative clean energy technologies with broad applications and the potential for export to developing countries;</text> </subparagraph>
<subparagraph id="HEF936F73133E4BA5AA9740113447A1D0"><enum>(C)</enum><text>create partnerships between private industry and public institutions;</text> </subparagraph>
<subparagraph id="H850948B7894645C8A1C600294D11D062"><enum>(D)</enum><text>provide opportunities for the development, demonstration, and deployment of federally-funded research technologies;</text> </subparagraph>
<subparagraph id="HEC6B8FE88AA4432D8EB0A6BDACB0AFE4"><enum>(E)</enum><text>promote smart growth by assuring that projects are located near—</text>
<clause id="H07FDF065749E41B485C192C69FA37455"><enum>(i)</enum><text>residential neighborhoods; or</text> </clause>
<clause id="HCC793DE3F0494350AD1C8461BD7068B2"><enum>(ii)</enum><text>affordable public transportation.</text> </clause></subparagraph></paragraph></subsection>
<subsection id="HD37A8AD2C87941DDBC20BCEF2C96CBBC"><enum>(b)</enum><header>Authorization of Appropriations</header><text>For the purposes of this section there are authorized to be appropriated to the Secretary $250,000,000 for the fiscal years 2008 through 2012.</text> </subsection></section></subtitle>
<subtitle id="H77507CECBF23470E83589636A2B21FDD"><enum>B</enum><header>Clean energy exports and international investment</header>
<section commented="no" display-inline="no-display-inline" id="H03AB6A2C82FE4BF6A249FEB9AFBD7FE7"><enum>611.</enum><header>Clean energy technology exports program</header>
<subsection commented="no" id="HFDC5009ED34D488F93B72D5623FEAD28"><enum>(a)</enum><header>Definitions</header><text>In this section:</text>
<paragraph commented="no" id="H25C0E2D24F3748A39F003538B6DD3DC4"><enum>(1)</enum><header>Interagency Working Group</header><text>The term <term>interagency working group</term> means the Interagency Working Group on Clean Energy Technology Exports established under subsection (b).</text> </paragraph>
<paragraph commented="no" id="H1879FD9FB75A4A79AA74F89E616BAE59"><enum>(2)</enum><header>United States clean energy technology</header><text>The term <term>United States clean energy technology</term> means an energy supply or end-use technology, including a technology using renewable energy sources, that—</text>
<subparagraph commented="no" id="H02596F156F264AE4875CBFFB3C01C995"><enum>(A)</enum><text>over its lifecycle and compared to a similar technology already in commercial use in developing countries, countries in transition, and other partner countries—</text>
<clause commented="no" id="H690576C989BA48D3B7ADD9F2676C11FB"><enum>(i)</enum><text>emits substantially lower levels of pollutants and/or greenhouse gases; and</text> </clause>
<clause commented="no" id="H6A835F16D52F4DF393B95FAA19B738EE"><enum>(ii)</enum><text>may generate substantially smaller and/or less toxic volumes of solid or liquid waste; and</text> </clause></subparagraph>
<subparagraph commented="no" id="H8EC4306167EE4C58A1488C5BAAE87BFD"><enum>(B)</enum><text>consists of manufactured articles, materials, and supplies produced in the United States substantially all from articles, materials, or supplies mined, produced, or manufactured in the United States, within the meaning of the <act-name parsable-cite="BAA">Buy American Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/41/10a">41 U.S.C. 10a</external-xref>).</text> </subparagraph></paragraph></subsection>
<subsection commented="no" id="HE3C7C9E26C8C4105A90744CFB2E3E769"><enum>(b)</enum><header>Interagency Working Group</header>
<paragraph commented="no" id="H36378966BCCD4F4E839EA1B4CE00CE2B"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Not later than 90 days after the date of enactment of this section, the Chairman of the White House Council on Environmental Quality, the Secretary of Energy, the Secretary of Commerce, and the Administrator of the United States Agency for International Development shall jointly establish a Interagency Working Group on Clean Energy Technology Exports. The interagency working group will, in partnership with industry, focus on opening and expanding energy markets and transferring clean energy technology generated in the United States to developing countries, countries in transition, and other partner countries that are expected to experience, over the next 20 years, the most significant growth in energy production and associated greenhouse gas emissions, including through technology transfer programs under the Framework Convention on Climate Change, other international agreements, and relevant Federal efforts.</text> </paragraph>
<paragraph commented="no" id="H69397433D6A1405DBF1D2697AEE9DA6"><enum>(2)</enum><header>Membership</header><text display-inline="yes-display-inline">The interagency working group shall be chaired by the Chairman of the White House Council on Environmental Quality and shall also include representatives from—</text>
<subparagraph id="H66775EEEBE0440E1A5A24461A1536FD6"><enum>(A)</enum><text display-inline="yes-display-inline">the Department of Commerce;</text> </subparagraph>
<subparagraph id="H48A730ADD3C04EB4A0E525F08496A86C"><enum>(B)</enum><text>the Department of the Treasury;</text> </subparagraph>
<subparagraph id="H963C31ACDE83457C9BD796B04158D9C7"><enum>(C)</enum><text>the Department of Energy;</text> </subparagraph>
<subparagraph id="HF66CA9D79D4C47B99775D606D9EDAB93"><enum>(D)</enum><text>the Environmental Protection Agency;</text> </subparagraph>
<subparagraph id="HC368AC9B0BB34CD087D3C746E4E0BC7E"><enum>(E)</enum><text display-inline="yes-display-inline">the United States Agency for International Development;</text> </subparagraph>
<subparagraph id="H4DA11789B1534E10B6ED3F617805D68D"><enum>(F)</enum><text>the Export-Import Bank;</text> </subparagraph>
<subparagraph id="H1FC05C248D8F40C3B3633900C02C2ECC"><enum>(G)</enum><text>the Overseas Private Investment Corporation;</text> </subparagraph>
<subparagraph id="H620B567594C846ED96EC4EAC0612C353"><enum>(H)</enum><text>the Trade and Development Agency;</text> </subparagraph>
<subparagraph id="H47AE74B568CA4A128D751B4E0091CFC7"><enum>(I)</enum><text>the Small Business Administration;</text> </subparagraph>
<subparagraph id="H9EC1259710A14DD2BBA9EE34523EC7F0"><enum>(J)</enum><text>the Office of United States Trade Representative; and</text> </subparagraph>
<subparagraph id="H30E93EF938C14AEA895331C00566CA55"><enum>(K)</enum><text>other Federal agencies, as determined by the President.</text> </subparagraph></paragraph>
<paragraph commented="no" id="H2EEC4A95A82A4B2BB2F7F4B00B813D8"><enum>(3)</enum><header>Duties</header><text>The interagency working group shall—</text>
<subparagraph commented="no" id="H5F32BA798E9E41D68E6C5CBDF885C951"><enum>(A)</enum><text>analyze technology, policy, and market opportunities for international development, demonstration, and deployment of clean energy technology developed in the United States;</text> </subparagraph>
<subparagraph commented="no" id="H4265F60DA4394493A88778DF0038FE42"><enum>(B)</enum><text>investigate issues associated with building capacity to deploy clean energy technology generated in the United States in developing countries, countries in transition, and other partner countries, including—</text>
<clause commented="no" id="H4F8EE06F736F4C28B96B2189FC429C38"><enum>(i)</enum><text>energy-sector reform;</text> </clause>
<clause commented="no" id="H22EC565BF1D44B179FC1FD51159DE151"><enum>(ii)</enum><text>creation of open, transparent, and competitive markets for clean energy technologies;</text> </clause>
<clause commented="no" id="HACB6690E6385485FB01E40A5B918003B"><enum>(iii)</enum><text>availability of trained personnel to deploy and maintain the technology;</text> </clause>
<clause commented="no" id="H8BF4C3D4F12A4B7E80345FC6CC47EFA2"><enum>(iv)</enum><text>demonstration and cost-buydown mechanisms to promote first adoption of the technology; and</text> </clause>
<clause id="H919D27402B7040D5BD8903E3E8D000C5"><enum>(v)</enum><text display-inline="yes-display-inline">to promote sustainable economic development, increase access to modern energy services, reduce greenhouse gas emissions, and strengthen energy security and independence in developing countries in partnership with industry through the deployment of clean energy technologies;</text> </clause></subparagraph>
<subparagraph commented="no" id="H38D9CA41FC434BD7899E8118DB69217F"><enum>(C)</enum><text>examine relevant trade, tax, international, and other policy issues to assess what policies would help open markets and improve United States clean energy technology exports in support of the following areas—</text>
<clause commented="no" id="HD7969FA27AA7403DACFE98F0370769D1"><enum>(i)</enum><text>enhancing energy innovation and cooperation, including energy sector and market reform, capacity building, and financing measures;</text> </clause>
<clause commented="no" id="H407FC48521504CC190FA9717841249"><enum>(ii)</enum><text>improving energy end-use efficiency technologies, including buildings and facilities, vehicle, industrial, and co-generation technology initiatives;</text> </clause>
<clause commented="no" id="H07B0B93BF3934131AFFE93C32FC11B0"><enum>(iii)</enum><text>promoting energy supply technologies, including fossil, nuclear, and renewable technology initiatives;</text> </clause>
<clause id="HDFFEF7AB3FEC43EB8CFB416F8F0152F1"><enum>(iv)</enum><text display-inline="yes-display-inline">reducing the trade deficit of the United States through the export of United States energy technologies and technological, project deployment, and development expertise; and</text> </clause>
<clause id="H4EAC5A06C5714E8EBEB87B2FDB009744"><enum>(v)</enum><text>retaining and creating manufacturing and related service jobs in the United States;</text> </clause></subparagraph>
<subparagraph commented="no" id="HD2077A09F3204C4E80B3B09717D9C210"><enum>(D)</enum><text>establish an advisory committee involving the private sector and other interested groups on the export and deployment of United States clean energy technology;</text> </subparagraph>
<subparagraph commented="no" id="HC7999C570C534342AD86490649A00076"><enum>(E)</enum><text>monitor each agency’s progress towards meeting goals in the 5-year strategic plan submitted to Congress pursuant to the Energy and Water Development Appropriations Act, 2001, and the Energy and Water Development Appropriations Act, 2002;</text> </subparagraph>
<subparagraph commented="no" id="HF47F7EC24354489E97B3A534BBA9B2FD"><enum>(F)</enum><text>make recommendations to heads of appropriate Federal agencies on ways to streamline Federal programs and policies to improve each agency’s role in the international development, demonstration, and deployment of United States clean energy technology;</text> </subparagraph>
<subparagraph commented="no" id="H1A1F03C6FAB94F3D8ED916ECF826EBD9"><enum>(G)</enum><text>make assessments and recommendations regarding the distinct technological, market, regional, and stakeholder challenges necessary to carry out the program;</text> </subparagraph>
<subparagraph commented="no" id="HB71E8BBE553B4539A3510027BCBC6B5"><enum>(H)</enum><text>recommend conditions and criteria that will help ensure that United States funds promote sound energy policies in participating countries while simultaneously opening their markets and exporting United States energy technology;</text> </subparagraph>
<subparagraph id="H1FC57EB420B441860097D57DFAC8433F"><enum>(I)</enum><text>establish methodologies for the measurement, monitoring, verification, and reporting under subsection (d) of the greenhouse gas emission impacts of clean energy projects and policies in developing countries; and</text> </subparagraph>
<subparagraph id="HCFD4CD95122343169FB51C0081620000"><enum>(J)</enum><text>establish a registry that is accessible to the public through electronic means (including through the Internet) in which information reported under subsection (d) shall be collected.</text> </subparagraph></paragraph></subsection>
<subsection commented="no" id="HD22AD74527C041E8B842E3C765FB4635"><enum>(c)</enum><header>Federal support for clean energy technology transfer</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, each Federal agency or Government corporation carrying out an assistance program in support of the activities of United States persons and industry partnerships in the environment or energy sector of a developing country, country in transition, or other partner country shall support, to the maximum extent practicable, the transfer of United States clean energy technology as part of that program. Such assistance programs shall support activities including, but not limited to, financial, environmental and safety consulting, manufacturing, design and engineering, financing, and other services rendered by United States persons and industry partnerships.</text> </subsection>
<subsection commented="no" id="HE0079CD5472046A38D36E89D3FA9026C"><enum>(d)</enum><header>Annual report</header><text>Not later than 90 days after the date of the enactment of this Act, and on March 31 of each year thereafter, the Interagency Working Group shall submit a report to Congress on its activities during the preceding calendar year. The report shall include a description of the technology, policy, and market opportunities for international development, demonstration, and deployment of United States clean energy technology investigated by the Interagency Working Group in that year, as well as any policy recommendations to improve the expansion of clean energy markets and United States clean energy technology exports.</text> </subsection>
<subsection commented="no" id="HD244EA3AAE3946E7AC3533E4EFDAF5A6"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the appropriate departments, agencies, and entities of the United States such sums as may be necessary for each of the fiscal years 2008 through 2018 to support the transfer of United States clean energy technology, consistent with the subsidy codes of the World Trade Organization, as part of assistance programs carried out by those departments, agencies, and entities in support of activities of United States persons in the energy sector of a developing country, country in transition, or other partner country.</text> </subsection></section>
<section commented="no" display-inline="no-display-inline" id="H5A08003A7C164A43916D3237F40089BD" section-type="subsequent-section"><enum>612.</enum><header>International energy technology deployment program</header><text display-inline="no-display-inline">Section 1608 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13387">42 U.S.C. 13387</external-xref>) is amended by striking subsection (l) and inserting the following:</text>
<quoted-block id="H1C957FB6022D4BBBBA1C5DEEB8EB7EF8">
<subsection commented="no" id="H7C87BE9AB41F432585375CACE600A0EC"><enum>(l)</enum><header>International energy technology deployment program</header>
<paragraph commented="no" id="HA6445841747B4D75A31F5CEBC3A11E7C"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text>
<subparagraph commented="no" id="H08B6F72E04B44B2381CFBCE4456DF300"><enum>(A)</enum><header>International energy deployment project</header><text>The term <term>international energy deployment project</term> means a project to construct an energy production facility outside the United States—</text>
<clause commented="no" id="H919C4FCA4E9B487B90C1F47DCC5497B6"><enum>(i)</enum><text>the output of which will be consumed outside the United States; and</text> </clause>
<clause commented="no" id="H8979BD03B2B54209A86B712FD8D47BD6"><enum>(ii)</enum><text>the deployment of which will result in a greenhouse gas reduction per unit of energy produced when compared to the technology that would otherwise be implemented—</text>
<subclause commented="no" id="H44A787DECF6D4A04A230AA00EE62365D"><enum>(I)</enum><text>20 percentage points or more, in the case of a unit placed in service before January 1, 2010;</text> </subclause>
<subclause commented="no" id="HE14FADBD141B43B7B570DD972245E01E"><enum>(II)</enum><text>40 percentage points or more, in the case of a unit placed in service after December 31, 2009, and before January 1, 2020; or</text> </subclause>
<subclause commented="no" id="H783FD3A172524601BFB42BCD71CF7DFB"><enum>(III)</enum><text>60 percentage points or more, in the case of a unit placed in service after December 31, 2019, and before January 1, 2030.</text> </subclause></clause></subparagraph>
<subparagraph commented="no" id="H031CBC1FECD940248FD71F12DBB6045"><enum>(B)</enum><header>Qualifying international energy deployment project</header><text>The term <term>qualifying international energy deployment project</term> means an international energy deployment project that—</text>
<clause commented="no" id="H9B176E8DF86949949B47F2C7BD9200C1"><enum>(i)</enum><text>is submitted by a United States firm to the Secretary and establishes industry partnerships in accordance with procedures established by the Secretary by regulation;</text> </clause>
<clause commented="no" id="HF8C8F80E6DCB47DEA5359C2393FB906E"><enum>(ii)</enum><text display-inline="yes-display-inline">uses technology or services that have been successfully developed or deployed in the United States;</text> </clause>
<clause commented="no" id="H30D7467046DA4D3DBB3C258164A2BEAC"><enum>(iii)</enum><text>uses technology or services that consists of manufactured articles, materials, and supplies produced in the United States substantially from articles, materials, or supplies mined, produced, or manufactured in the United States, within the meaning of the <act-name parsable-cite="BAA">Buy American Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/41/10a">41 U.S.C. 10a</external-xref>);</text> </clause>
<clause commented="no" id="H99A4A3FB812547998E626BB6BA6831B"><enum>(iv)</enum><text>meets the criteria of subsection (k);</text> </clause>
<clause commented="no" id="HCA83C498C7D3424400F2B44BBA1582A"><enum>(v)</enum><text>is approved by the Secretary, with notice of the approval being published in the Federal Register; and</text> </clause>
<clause commented="no" id="HF39964505FB94CD4A8A251E745B97764"><enum>(vi)</enum><text>complies with such terms and conditions as the Secretary establishes by regulation.</text> </clause></subparagraph>
<subparagraph commented="no" id="H9A9473DFF65A4D3086EA3F7ECFB787DA"><enum>(C)</enum><header>United States</header><text>For purposes of this paragraph, the term <term>United States</term>, when used in a geographical sense, means the 50 States, the District of Columbia, Puerto Rico, Guam, the Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana Islands.</text> </subparagraph></paragraph>
<paragraph commented="no" id="HFD9CB9878BC34A7CB96F006025E8B402"><enum>(2)</enum><header>Pilot program for financial assistance</header>
<subparagraph commented="no" id="H14B0E3819DC549B6905509006798D9CD"><enum>(A)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this subsection, the Secretary shall, by regulation, provide for a pilot program for financial assistance for qualifying international energy deployment projects.</text> </subparagraph>
<subparagraph commented="no" id="HEE03DBF0D0894381A026781F515775E1"><enum>(B)</enum><header>Selection criteria</header><text>After consultation with the Secretary of State, the Secretary of Commerce, and the United States Trade Representative, the Secretary shall select projects for participation in the program based solely on the criteria under this title and without regard to the country in which the project is located.</text> </subparagraph>
<subparagraph commented="no" id="H84375E677ADA4DA1983EEDD62B465211"><enum>(C)</enum><header>Financial assistance</header>
<clause commented="no" id="HBCBB5620139A4C04A45EE7000299CF02"><enum>(i)</enum><header>In general</header><text>A United States firm that undertakes a qualifying international energy deployment project that is selected to participate in the pilot program shall be eligible to receive funding support, a loan, or a loan guarantee from the Secretary.</text> </clause>
<clause commented="no" id="HDEB44F76EE17421DA3B878C46800CAB2"><enum>(ii)</enum><header>Rate of interest</header><text>The rate of interest of any loan made under clause (i) shall be equal to the rate for Treasury obligations then issued for periods of comparable maturities.</text> </clause>
<clause commented="no" id="HD7FAA05BD1204B1F82C7A3CBFE057D5D"><enum>(iii)</enum><header>Amount</header><text>The amount of a loan or loan guarantee under clause (i) shall not exceed 50 percent of the total cost of the qualified international energy deployment project.</text> </clause>
<clause commented="no" id="HDE3D01335AD74E4FBB158304BDD45C70"><enum>(iv)</enum><header>Developed countries</header><text>Loans or loan guarantees made for projects to be located in a developed country, as listed in Annex I of the United Nations Framework Convention on Climate Change, shall require at least a 50 percent contribution towards the total cost of the loan or loan guarantee by the host country.</text> </clause>
<clause commented="no" id="H9146906E7289434B89A790A07C127600"><enum>(v)</enum><header>Developing countries</header><text>Loans or loan guarantees made for projects to be located in a developing country (those countries not listed in Annex I of the United Nations Framework Convention on Climate Change) shall require at least a 10 percent contribution towards the total cost of the loan or loan guarantee by the host country.</text> </clause>
<clause commented="no" id="HA6EEEE1F2AD04B73AC82DD9E3346C121"><enum>(vi)</enum><header>Capacity building research</header><text>Proposals made for projects to be located in a developing country may include a research component intended to build technological capacity within the host country. Such research must be related to the technologies being deployed and must involve both an institution in the host country and an industry, university or national laboratory participant from the United States. The host institution shall contribute at least 50 percent of funds provided for the capacity building research.</text> </clause>
<clause id="H50DEDD4D2C7E49A6AA1BE85EF62C86A8"><enum>(vii)</enum><header>Grants</header>
<subclause id="H02510EA2A5C5435DBB8601C2AB582031"><enum>(I)</enum><header>In general</header><text>The Secretary, in consultation with the Secretary of Energy and the Administrator of the United States Agency for International Development, may, at the request of the United States ambassador to a host country, make grants to help address and overcome specific, urgent, and unforeseen obstacles in the implementation of a qualifying project.</text> </subclause>
<subclause id="H5BAAF08991B24C9E9078FEE6352741D7"><enum>(II)</enum><header>Maximum amount</header><text>The total amount of a grant made for a qualifying project under this paragraph may not exceed $1,000,000.</text> </subclause></clause></subparagraph>
<subparagraph commented="no" id="H98DAFC45BCBA484000C57500F7FFBE05"><enum>(D)</enum><header>Coordination with other programs</header><text>A qualifying international energy deployment project funded under this section shall not be eligible as a qualifying clean coal technology under section 415 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7651n">42 U.S.C. 7651n</external-xref>).</text> </subparagraph>
<subparagraph commented="no" id="H758DA81EF4AD4FA5A00759E94261CB33"><enum>(E)</enum><header>Report</header><text>Not later than 5 years after the date of enactment of this subsection, the Secretary shall submit to the President a report on the results of the pilot projects.</text> </subparagraph>
<subparagraph commented="no" id="HD9D6308947124198B8F504CFD290ABDA"><enum>(F)</enum><header>Recommendation</header><text>Not later than 60 days after receiving the report under subparagraph (E), the President shall submit to Congress a recommendation, based on the results of the pilot projects as reported by the Secretary of Energy, concerning whether the financial assistance program under this section should be continued, expanded, reduced, or eliminated.</text> </subparagraph></paragraph>
<paragraph id="H032992A7CF014D16899853C5D10388DA"><enum>(3)</enum><header>Performance criteria for major energy consumers</header>
<subparagraph id="HF83A2111947946269C4E8CFA44FBFE1"><enum>(A)</enum><header>Identification of Major Energy Consumers</header><text>Not later than 1 year after the date of enactment of this subsection, the Task Force shall identify those developing countries that, by virtue of present and projected energy consumption, represent the predominant share of energy use among developing countries.</text> </subparagraph>
<subparagraph id="HA74D459C3FE44D4EB84D31CA7CF570E2"><enum>(B)</enum><header>Performance Criteria</header><text>As a condition of accepting assistance provided under this section, any developing country identified under subparagraph (A) shall—</text>
<clause id="HCF62F81B081C4ECFADDADFA0EF7DEE88"><enum>(i)</enum><text>meet the eligibility criteria established under section 607 of the Millennium Challenge Act of 2003 (<external-xref legal-doc="usc" parsable-cite="usc/22/7706">22 U.S.C. 7706</external-xref>), notwithstanding the eligibility of the developing country as a candidate country under section 606 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/22/7705">22 U.S.C. 7705</external-xref>); and</text> </clause>
<clause id="HCE621E3DAB5949DB8BCE3147D3C0BE31"><enum>(ii)</enum><text>agree to establish and report on progress in meeting specific goals for reduced energy-related greenhouse gas emissions and specific goals for—</text>
<subclause id="H8F7D9432C6E6439FAE33252795C6ADE8"><enum>(I)</enum><text>increased access to clean energy services among unserved and underserved populations;</text> </subclause>
<subclause id="H01A3730A78D94F5D9F09D3EEA549E196"><enum>(II)</enum><text>increased use of renewable energy resources;</text> </subclause>
<subclause id="H135CDEF414E645129FEFB1C3E6330A9"><enum>(III)</enum><text>increased use of lower greenhouse gas-emitting fossil fuel-burning technologies;</text> </subclause>
<subclause id="H2ABEC228CAA544AA86838DB8BD2B2924"><enum>(IV)</enum><text>greater reliance on advanced energy technologies;</text> </subclause>
<subclause id="HEF6109E62C4840808FC184D21C33E6DF"><enum>(V)</enum><text>the sustainable use of traditional energy resources; or</text> </subclause>
<subclause id="H8A382CC80401425BA710DDB91F6676BF"><enum>(VI)</enum><text>other goals for improving energy-related environmental performance, including the reduction or avoidance of local air and water quality and solid waste contaminants.</text> </subclause></clause></subparagraph></paragraph>
<paragraph commented="no" id="HA95AFF50035441ABAADB9F17CD489BD4"><enum>(4)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary to carry out this section $500,000,000 for each of fiscal years 2008 through 2018, to remain available until expended.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle>
<subtitle id="HF714A9F3568049B98EA0A12D74ADA077"><enum>C</enum><header>Export-Import Bank</header>
<section display-inline="no-display-inline" id="H26BAFE18C1A343889E16F2F7BF8739BD"><enum>621.</enum><header>Require the Export-Import Bank of the United States to meet renewable energy targets in its lending practices</header>
<subsection id="H3B31C05FB27B41958B1BAD48C76C8101"><enum>(a)</enum><header>Allocation of Assistance Among Energy Projects</header><text>Of the total amount available to the Export-Import Bank of the United States for the extension of credit for transactions related to energy projects, the Bank shall, not later than the beginning of fiscal year 2008, use—</text>
<paragraph id="HA1CC2820549D4F31BA27938163A62C22"><enum>(1)</enum><text>not more than 85 percent for transactions related to fossil fuel projects; and</text> </paragraph>
<paragraph id="HFDBC1AD4661C4B0DA3AA6FE82813825"><enum>(2)</enum><text>not less than 15 percent for transactions related to renewable energy and energy efficiency projects.</text> </paragraph></subsection>
<subsection id="H59F8968D646E459E87BDA7C5496C844F"><enum>(b)</enum><header>Renewable Energy and Technology Commission</header>
<paragraph id="H397ECE169CAC4DE4858719B9CD27885E"><enum>(1)</enum><header>Establishment</header><text>Within 1 year after the date of the enactment of this Act, the Export-Import Bank of the United States (in this subsection referred to as the <quote>Bank</quote>) shall establish a commission which shall be known as the <quote>Renewable Energy and Technology Commission</quote> (in this subsection referred to as the <quote>Commission</quote>).</text> </paragraph>
<paragraph id="H12F6D98F72044DF490E050B4EE88C62"><enum>(2)</enum><header>Function</header><text>The Commission shall help the Bank achieve the percentage goal set forth in subsection (a)(2) by the beginning of fiscal year 2008, by proactively assisting the Bank in identifying new opportunities for renewable energy and energy efficiency financing.</text> </paragraph>
<paragraph id="H2D23356E8B8148AA9FCFC269CAFBE36"><enum>(3)</enum><header>Composition</header><text>The Commission shall be composed of—</text>
<subparagraph id="H42190EEE550147DB9E268296FEC71445"><enum>(A)</enum><text>6 representatives selected by companies involved in renewable energy and energy efficiency technology;</text> </subparagraph>
<subparagraph id="HEA9B68B6E22C46E79BFA54C3FB82373C"><enum>(B)</enum><text>2 representatives selected by environmental organizations;</text> </subparagraph>
<subparagraph id="HE8DECF17034E4511B362A6B5EFE5D28D"><enum>(C)</enum><text>2 members of the academic community who are knowledgeable about renewable energy; and</text> </subparagraph>
<subparagraph id="H5C0511D121954B03B86F9822082F20F7"><enum>(D)</enum><text>representatives of the Bank.</text> </subparagraph></paragraph>
<paragraph id="HD137A271E9374B49B9EA23DEE830637F"><enum>(4)</enum><header>Reports</header><text>The Commission shall submit annually to the Committee on Natural Resources and the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that contains the following information for the fiscal year covered by the report:</text>
<subparagraph id="H6328DE56124648B58E63671D006D4F67"><enum>(A)</enum><text>A detailed description of the activities of the Commission.</text> </subparagraph>
<subparagraph id="H1F8A825C8F2949E388A46000F05128C3"><enum>(B)</enum><text>Any recommendations made by the Commission that were adopted by the Bank.</text> </subparagraph>
<subparagraph id="H100782C5DE744739A2E9072C0024DD0"><enum>(C)</enum><text>An analysis comparing the level of credit extended by the Bank for renewable energy and energy efficiency projects with the level of credit so extended for the preceding fiscal year.</text> </subparagraph></paragraph></subsection>
<subsection id="HCF31ED7B0F5B4769A446541C1899CAC3"><enum>(c)</enum><header>Definition of Renewable Energy and Energy Efficiency Projects</header><text>In this section, the term <term>renewable energy and energy efficiency projects</term> means projects related to solar, wind, biomass, or geothermal energy sources.</text> </subsection></section>
<section id="H7A6A546B3B5B4AB9AB153CAE9B01CA52" section-type="subsequent-section"><enum>622.</enum><header>Increase in the amount of financing made available by the Export-Import Bank for transactions involving renewable energy and energy efficiency</header><text display-inline="no-display-inline">Section 2(b)(1) of the Export-Import Bank Act of 1945 (<external-xref legal-doc="usc" parsable-cite="usc/12/635">12 U.S.C. 635(b)(1)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H350CE64C9299454BA8F81091FDE27196" style="OLC">
<subparagraph id="HD54B678122804DA49CE9FA005226DFD7" indent="up2"><enum>(M)</enum>
<clause commented="no" display-inline="yes-display-inline" id="HFF164D5E5B6E43CF90D9166CD0DB04CA"><enum>(i)</enum><text display-inline="yes-display-inline">For each fiscal year that begins after the 1-year period that begins with the date of the enactment of this subparagraph, the Bank shall make available, from the aggregate loan authority available to the Bank, an amount to finance transactions directly related to the production of renewable energy or to energy efficiency, which shall be not less than—</text>
<subclause id="H9783F5C00D274881B77BD0D3256E59A4" indent="up1"><enum>(I)</enum><text>in the case of the 1st such fiscal year, $200,000,000;</text> </subclause>
<subclause id="HC44C848D56C843D68FF6E900F7954D2" indent="up1"><enum>(II)</enum><text>in the case of each of the 2nd through 6th such fiscal years, 120 percent of the amount made available in accordance with this clause to finance the transactions for the then preceding fiscal year; and</text> </subclause>
<subclause id="H3B619F3C94D142D0B430E31345751615" indent="up1"><enum>(III)</enum><text display-inline="yes-display-inline">in the case of each fiscal year after the 6th such fiscal year, the amount made available in accordance with this clause to finance the transactions for such 6th fiscal year.</text> </subclause></clause>
<clause id="H2A0533A303D3490CA62932D400EDAE55" indent="up1"><enum>(ii)</enum><text>In this Act, the term <term>renewable energy</term> means solar energy, wind energy, energy generated by the use of a fuel cell, geothermal energy, and less than 10 megawatts of energy generated by hydropower.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section display-inline="no-display-inline" id="H108C64AEC4C1463ABA543D00B5003C52" section-type="subsequent-section"><enum>623.</enum><header>Office of renewable energy promotion</header><text display-inline="no-display-inline">Section 3 of the Export-Import Bank Act of 1945 (<external-xref legal-doc="usc" parsable-cite="usc/12/635a">12 U.S.C. 635a</external-xref>) is amended by adding at the end the following:</text>
<quoted-block id="HDCFE15B0B0964484AD8BD2F18759B623">
<subsection id="H2FA06D01D2C447ACB6FC448DC7A4937B"><enum>(j)</enum><header>Office of renewable energy promotion</header>
<paragraph id="H80D7C77DB2B94BCBB190D8C229DC12D7"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Within 1 year after the date of the enactment of this subsection, the Bank shall establish an Office of Renewable Energy Promotion (in this subsection referred to as the “Office”) staffed by individuals with expertise in financing renewable energy technologies.</text> </paragraph>
<paragraph id="H884057A626C64D71AB23BB908613D01E"><enum>(2)</enum><header>Functions</header><text display-inline="yes-display-inline">The Office shall assist the Bank in complying with section 2(b)(1)(M) by identifying opportunities to provide financing for transactions directly related to the production of renewable energy or to energy efficiency.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="H8D9A1DD85ED14C5FB6242DD5B124BDE8"><enum>624.</enum><header>Report on Export-Import Bank financing for transactions involving renewable energy or energy efficiency</header><text display-inline="no-display-inline">Section 8 of the Export-Import Bank Act of 1945 (<external-xref legal-doc="usc" parsable-cite="usc/12/635g">12 U.S.C. 635g</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEE29CC666BFD4360B7873970C188028" style="OLC">
<subsection id="HEB051314CD864225A4D894E12FAC3232"><enum>(g)</enum><header>Financing for transactions involving renewable energy or energy efficiency</header><text display-inline="yes-display-inline">The Bank shall include in its annual report under subsection (a) of this section—</text>
<paragraph id="H45296ECDF08F4C2D80214C9D3C4D00A1"><enum>(1)</enum><text>a description of the activities of the Office;</text> </paragraph>
<paragraph id="H819E6B9E25FD49DBAA77BDDB35C3C58"><enum>(2)</enum><text>a description of the number of transactions and the amount of credit extended by the Bank for renewable energy and energy efficiency technologies, disaggregated by the types of renewable energy specified in section 2(b)(1)(M)(ii); and</text> </paragraph>
<paragraph id="H9B89C24C05AA40ADB0DC06C25811215D"><enum>(3)</enum><text display-inline="yes-display-inline">a comparison between the number and amount referred to in paragraph (2) for the period covered by the report, and the numbers and amounts reported for all preceding periods pursuant to this subsection.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="H1259D2C0782F42BBB3635CF1B5FC54B"><enum>625.</enum><header>Report on effect of Export-Import Bank financing on greenhouse gas emissions</header>
<subsection id="H81F8EA058B254A0DA26094A58E383CA0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Within 5 years after the date of the enactment of this Act, the Export-Import Bank of the United States shall prepare and submit to the Committee on Financial Services of the House of Representatives and the Committee on Finance of the Senate a report that—</text>
<paragraph id="H5E0656432F8A44EDA5B42EA6E0219AC"><enum>(1)</enum><text>estimates the amount of greenhouse gases emitted annually as a result of the activities financed by the Bank; and</text> </paragraph>
<paragraph id="H13BFEDF5C172497FB5F66664ED8EB9DE"><enum>(2)</enum><text display-inline="yes-display-inline">identifies opportunities to reduce the amount of greenhouse gases emitted as a result of the activities.</text> </paragraph></subsection>
<subsection id="HBBA4630305024D9AAC15A5E1D1BEDDDC"><enum>(b)</enum><header>Greenhouse gas defined</header><text display-inline="yes-display-inline">In subsection (a), the term <term>greenhouse gas</term> means carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, sulfur hexafluoride, or any other anthropogenically-emitted gas that is determined by the Administrator of the Environmental Protection Agency, after notice and comment, to contribute to global warming to a non-negligible degree.</text> </subsection></section></subtitle>
<subtitle id="H1D0796DC56E54543A693B9084F730043"><enum>D</enum><header>Emerging clean energy technology venture capital fund</header>
<section id="H522A861306A74B7B004DF77B894B6EB4"><enum>631.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="H2183D7092A99424BB63697101ED95459"><enum>(1)</enum><text>It is in the interests of the United States to promote technologies that reduce our dependence on fossil fuels.</text> </paragraph>
<paragraph id="H2052E8D0FC254D63A286B9ADA5D24D20"><enum>(2)</enum><text>New and emerging clean energy technologies often fail to achieve commercial success due to funding shortfalls, often termed <quote>the Valley of Death</quote>, before the technologies attract the necessary private venture capital funding required for further development.</text> </paragraph></section>
<section id="H66917A7BB2B74E3288227E95C86E20F8"><enum>632.</enum><header>Establishment of fund</header><text display-inline="no-display-inline">The Secretary of Energy, using authorities granted to the Secretary of Defense under <external-xref legal-doc="usc" parsable-cite="usc/10/2371">section 2371</external-xref> of title 10, United States Code, shall provide for the establishment of a nonprofit venture capital investment corporation, to be known as the Emerging Clean Energy Technology Venture Capital Fund, for the purpose of making funding available to United States companies for the development of technologies used—</text>
<paragraph id="H643F1525C544497AA7F992461E03E16"><enum>(1)</enum><text>for the production of renewable energy; or</text> </paragraph>
<paragraph id="H42E78AABD3B84EA599BC124848D65100"><enum>(2)</enum><text>to improve energy efficiency.</text> </paragraph></section>
<section id="H5DC419A25D7F41F69BCFEC00EBBB0976"><enum>633.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Secretary of Energy $100,000,000 for each of the fiscal years 2008 through 2012 for carrying out this subtitle.</text> </section></subtitle>
<enum>VII</enum><header>Greenhouse gas reductions</header>
<subtitle id="HF8E27CE5AE014548B353E86F8B9BFA56"><enum>A</enum><header>Global climate change</header>
<section id="HF57E7A4802D94F628E865CD46557FE07" section-type="subsequent-section"><enum>701.</enum><header>Global climate change</header>
<subsection id="H57C3EC5E84B04EDBBD6D16019D2E13A5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401 et seq.</external-xref>) is amended by adding at the end the following new title:</text>
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<title id="HE2A8CD1B8B5D4456A514E0050D53957"><enum>VIII</enum><header>GLOBAL CLIMATE CHANGE </header>
<toc container-level="quoted-block-container" idref="H7722C94F8B2B42E28001E512CC654E2B" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HE2A8CD1B8B5D4456A514E0050D53957" level="title">Title VIII—GLOBAL CLIMATE CHANGE </toc-entry>
<toc-entry idref="H181D409A373C47EE97E24FAAB5AB8C47" level="section">Sec. 801. Definitions.</toc-entry>
<toc-entry idref="HF8415B0196994EF698EA97A8143D0A5" level="subtitle">Subtitle A—Stopping and Reversing Greenhouse Gas Emissions</toc-entry>
<toc-entry idref="H3B8AC62FA6CE4E8398C156331388EFA9" level="section">Sec. 811. Regulations; greenhouse gas emissions limitations.</toc-entry>
<toc-entry idref="H36CEE6D0524E4C73BA04C4A9B74B7B09" level="section">Sec. 812. Scientific review of the safe climate level.</toc-entry>
<toc-entry idref="HB51A757A70B847CC8FB4FA65C00A61F" level="section">Sec. 813. Required review of emission reductions needed to maintain the safe climate level.</toc-entry>
<toc-entry idref="H2A752E86920343A0975C8F4BFBC3582" level="section">Sec. 814. Distribution of allowances between auctions and allocations; nature of allowances.</toc-entry>
<toc-entry idref="HB75AB7EDF8D041EEBC551C95B5A33C64" level="section">Sec. 815. Auction of allowances.</toc-entry>
<toc-entry idref="HED3600CC1B1D4E24A2DE63AAF9D46C0" level="section">Sec. 816. Allocation of allowances.</toc-entry>
<toc-entry idref="H2832D4E8E39749E1A83C07F5FD15091B" level="section">Sec. 817. Adaptation assistance.</toc-entry>
<toc-entry idref="H4481195BE59D457D9337917F7E4FE4F0" level="section">Sec. 818. Early reduction credits.</toc-entry>
<toc-entry idref="H3B192A7CD6B440178D005BCBA474007F" level="section">Sec. 819. Avoiding significant economic harm.</toc-entry>
<toc-entry idref="H1B67F48F7538499FBB71FCFC81497BBD" level="section">Sec. 820. Use and transfer of credits.</toc-entry>
<toc-entry idref="H10A0B5A441444235AA5EB6B11E10D019" level="section">Sec. 821. Compliance and enforcement.</toc-entry>
<toc-entry idref="HF168FB2292134FD19C1CEF51BEE6EF0" level="section">Sec. 822. Equalizing the treatment of domestic and imported industrial products sold in the United States.</toc-entry>
<toc-entry idref="HF20BD5DFE6364A1B9680389E4E76CC05" level="subtitle">Subtitle B—Offset Credits</toc-entry>
<toc-entry idref="H9797A0D118F44FBF80C5BAB2B80031CD" level="section">Sec. 831. Outreach initiative on revenue enhancement for agricultural producers.</toc-entry>
<toc-entry idref="H9F1180B6E3C7473BA5F5412B708200FE" level="section">Sec. 832. Offset measurement for agricultural, forestry, wetlands, and other land use-related sequestration projects.</toc-entry>
<toc-entry idref="HFB983F92918F490481E6DB37B1F914FE" level="section">Sec. 833. Offset credits from greenhouse gas emissions reduction projects.</toc-entry>
<toc-entry idref="H79C4DDAD4FC14B679B8D008376B62B5E" level="section">Sec. 834. Borrowing at program start-up based on contracts to purchase offset credits.</toc-entry>
<toc-entry idref="HC769E014BFD34951BB6749B335D442AE" level="section">Sec. 835. Review and correction of accounting for offset credits.</toc-entry>
<toc-entry idref="H6CA0B08AF3CA4A98002FABB3CB8D054E" level="subtitle">Subtitle C—National Registry for Credits</toc-entry>
<toc-entry idref="HCCCE6DAC51804B00ACABB749E7719810" level="section">Sec. 841. Establishment and operation of national registry.</toc-entry>
<toc-entry idref="H06E92705648B44CB90C40273B3022E5" level="section">Sec. 842. Monitoring and reporting.</toc-entry> </toc>
<section id="H181D409A373C47EE97E24FAAB5AB8C47"><enum>801.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="HF492C4F06C2346B0A13277BC8303782"><enum>(1)</enum><header>Allocation</header><text>The term <term>allocation</term>, with respect to an allowance, means the issuance of an allowance directly to covered entities, at no cost, under this title.</text> </paragraph>
<paragraph id="H83FDAF1383AD4F018D9F004EA0D365CE"><enum>(2)</enum><header>Allowance</header><text>The term <term>allowance</term> means an authorization under this title to emit 1 metric ton of carbon dioxide (or a carbon dioxide equivalent), as allocated to a covered entity pursuant to section 816.</text> </paragraph>
<paragraph id="H7E8661B0708E4E0B94E62987944141A7"><enum>(3)</enum><header>Carbon dioxide equivalent</header><text>The term <term>carbon dioxide equivalent</term> means, with respect to a greenhouse gas, the quantity of the greenhouse gas that makes the same contribution to global warming as 1 metric ton of carbon dioxide, as determined by the Administrator.</text> </paragraph>
<paragraph id="H3951740026FA4DB081720558B400D670"><enum>(4)</enum><header>Covered entity</header><text>The term <term>covered entity</term> means an entity (including a branch, department, agency, or instrumentality of Federal, State, or local government) that—</text>
<subparagraph id="H84F2CA32513048F0A70070A0009C0967"><enum>(A)</enum><text>owns or controls a source of greenhouse gas emissions in the electric power, industrial, or commercial sector of the United States economy (as defined in the Inventory), refines or imports products for use in transportation, or produces or imports hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride; and</text> </subparagraph>
<subparagraph id="H37BBC2310DF74416BC8236A5335F5F03"><enum>(B)</enum><text>emits, from any single facility owned by the entity, over 10,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents, or—</text>
<clause id="H2E7953406815470E895E2000003E31CB"><enum>(i)</enum><text>refines or imports products that, when combusted, will emit;</text> </clause>
<clause id="H54796DAC05C8420AAD2C0862D5032F6F"><enum>(ii)</enum><text>produces or imports hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride that, when used, will emit; or</text> </clause>
<clause id="H9AFF40B4E11D4B348467C533B2FA4592"><enum>(iii)</enum><text>produces or imports other greenhouse gases that, when used, will emit, over 10,000 metric tons of greenhouse gas per year, measured in units of carbon dioxide equivalents.</text> </clause></subparagraph></paragraph>
<paragraph id="HB9C300673BF443C1B2DB04FBA767EDAC"><enum>(5)</enum><header>Credit</header>
<subparagraph id="H1A7A8E702C6444BEBC45954BFD379100"><enum>(A)</enum><header>In general</header><text>The term <term>credit</term> means an authorization under this title to emit greenhouse gases equivalent to 1 metric ton of carbon dioxide.</text> </subparagraph>
<subparagraph id="H7390E85DBB53466CA5430256FF1E357D"><enum>(B)</enum><header>Inclusions</header><text>The term <term>credit</term> includes—</text>
<clause id="HAA28DEB761EB4D30A8C8CF62007C426C"><enum>(i)</enum><text>an allowance;</text> </clause>
<clause id="H0C59B3019EFA4DD68FEC05BC04A51428"><enum>(ii)</enum><text>an offset credit;</text> </clause>
<clause id="HE07FC4A856BC4820964EC1E84F6EC1F1"><enum>(iii)</enum><text>an early reduction credit; or</text> </clause>
<clause id="H19CB4CC579C442C2A94F4787716D68C6"><enum>(iv)</enum><text>an international credit.</text> </clause></subparagraph></paragraph>
<paragraph id="H393CB4FDAD694EB6AA73B8ADBB1603E9"><enum>(6)</enum><header>Early reduction credit</header><text>The term <term>early reduction credit</term> means a credit issued under section 818 for a reduction in the quantity of emissions or an increase in sequestration equivalent to 1 metric ton of carbon dioxide.</text> </paragraph>
<paragraph display-inline="no-display-inline" id="H2448C95536924AF3898BE93D3163F532"><enum>(7)</enum><header>Eligible entity</header><text>The term <term>eligible entity</term> include any entity determined by the Administrator to be eligible to receive emissions allowance allocations or the value of such allowances.</text> </paragraph>
<paragraph id="H8D270CEDD93E49F0B73C2B19CC82B41C"><enum>(8)</enum><header>Greenhouse gas authorized account representative</header><text>The term <term>greenhouse gas authorized account representative</term> means, for a covered entity, an individual who is authorized by the owner and operator of the covered entity to represent and legally bind the owner and operator in matters pertaining to this title.</text> </paragraph>
<paragraph id="HC9E9BB54D3164B9ABD32BA10EF6BAB58"><enum>(9)</enum><header>Industry sector</header><text>The term <term>industry sector</term> means any sector of the economy of a country (including, where applicable, the forestry sector) that is responsible for significant quantities of greenhouse gas emissions.</text> </paragraph>
<paragraph id="HEA9A1C15412D4E3F866848F685E9085"><enum>(10)</enum><header>Invasive species</header><text>The term <term>invasive species</term> means a species (including pathogens, seeds, spores, or any other biological material relating to a species) the introduction of which causes or is likely to cause economic or environmental harm or harm to human health.</text> </paragraph>
<paragraph id="H45DDE2C3C34947398D82831D2BAFAE3B"><enum>(11)</enum><header>Inventory</header><text>The term <term>Inventory</term> means the Inventory of U.S. Greenhouse Gas Emissions and Sinks, prepared in compliance with the United Nations Framework Convention on Climate Change Decision 3/CP.5.</text> </paragraph>
<paragraph id="H7C2E412156714100A593DD6B234FCD52"><enum>(12)</enum><header>Land-grant colleges and universities</header><text>The term <term>land-grant colleges and universities</term> has the meaning given the term in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/7/3103">7 U.S.C. 3103</external-xref>).</text> </paragraph>
<paragraph id="HED7AC4DE7DD6400491308DBA348D3DA1"><enum>(13)</enum><header>Leakage</header><text>The term <term>leakage</term> means an increase in greenhouse gas emissions or a decrease in sequestration of greenhouse gases that is—</text>
<subparagraph id="HF3146EADC4514E8BBA1445F3CFD72714"><enum>(A)</enum><text>outside the area of a project; and</text> </subparagraph>
<subparagraph id="H0AAAE1E7883F4F5FACEA4693249645AE"><enum>(B)</enum><text>attributable to the project.</text> </subparagraph></paragraph>
<paragraph id="H95032B09248F406FA15E99722117C379"><enum>(14)</enum><header>Native plant</header><text>The term <term>native plant</term> means an indigenous, terrestrial, or aquatic plant species that evolved naturally in an ecosystem.</text> </paragraph>
<paragraph id="HF2634AB357BA46A0BD655BD16D843000"><enum>(15)</enum><header>New covered entity</header><text>The term <term>new covered entity</term> means a covered entity that has operated for not more than 3 years.</text> </paragraph>
<paragraph id="HF51D6E05B24A47648BF582EB21DFF983"><enum>(16)</enum><header>Offset credit</header><text>The term <term>offset credit</term> means a credit issued for an offset project pursuant to subtitle B certifying a reduction in the quantity of emissions or an increase in sequestration equivalent to 1 metric ton of carbon dioxide.</text> </paragraph>
<paragraph id="H60A89FECFDBC47C7B1B54E56D5C4E07"><enum>(17)</enum><header>Offset practice</header><text>The term <term>offset practice</term> means a practice that—</text>
<subparagraph id="HDE3F78338D0A4A480035B7A26FFDC3F4"><enum>(A)</enum><text>reduces greenhouse gas emissions or increases sequestration; and</text> </subparagraph>
<subparagraph id="H0A0591DF35E14768AAA4208668C62FD9"><enum>(B)</enum><text>may be eligible to create an offset credit under this title.</text> </subparagraph></paragraph>
<paragraph id="HE0D4F59CE4FF4BB8A228F4BB1DF04E5"><enum>(18)</enum><header>Offset project</header><text>The term <term>offset project</term> means a project that reduces greenhouse gas emissions or increases sequestration of carbon dioxide or a carbon dioxide equivalent by a method other than reduction of greenhouse gas emissions at a covered entity.</text> </paragraph>
<paragraph id="H0515E9177F074056B35C15CBA8455FC0"><enum>(19)</enum><header>Panel</header><text>The term <term>Panel</term> means the Climate Science Advisory Panel established by this title.</text> </paragraph>
<paragraph id="H2AAD82CDFC0548F6B21DE95100A173EA"><enum>(20)</enum><header>Plant material</header><text>The term <term>plant material</term> means—</text>
<subparagraph id="HB75C1020F4FC4E9DB1EEEAE421895C26"><enum>(A)</enum><text>a seed;</text> </subparagraph>
<subparagraph id="H0865AA4D353B4469A392002B1867DF84"><enum>(B)</enum><text>a part of a plant; or</text> </subparagraph>
<subparagraph id="H2A52377C8CC04531BAA2AC57A4FC8F19"><enum>(C)</enum><text>a whole plant.</text> </subparagraph></paragraph>
<paragraph id="HA84EF87EA54545BC8C0065FD028C8C58"><enum>(21)</enum><header>Renewable energy</header><text>The term <term>renewable energy</term> means electricity generated from—</text>
<subparagraph id="H865CFCD53BC94BCAB6D9E3FD35F4FA39"><enum>(A)</enum><text>wind;</text> </subparagraph>
<subparagraph id="HC05B51F9F56F4849BDD55355E7B968FB"><enum>(B)</enum><text>organic waste (excluding incinerated municipal solid waste);</text> </subparagraph>
<subparagraph id="H5E1CEDB6553D411F83115ED15816C7C1"><enum>(C)</enum><text>biomass (including anaerobic digestion from farm systems and landfill gas recovery); or</text> </subparagraph>
<subparagraph id="H0DA3ABB8F0944210B34418E57F8E89CB"><enum>(D)</enum><text>a hydroelectric, geothermal, solar thermal, photovoltaic, tidal, wave, or other nonfossil fuel, nonnuclear source.</text> </subparagraph></paragraph>
<paragraph id="HE97EB0C188FF492FA89491205E708859"><enum>(22)</enum><header>Renewable energy entity</header><text>The term <term>renewable energy entity</term> means an electric generating entity that exclusively uses renewable energy to generate electricity for sale.</text> </paragraph>
<paragraph id="H23112085B5EC48F7918C6CC777DEF36F"><enum>(23)</enum><header>Restoration</header>
<subparagraph id="H182E6FB253914F8FB444FE055BFC0312"><enum>(A)</enum><header>In general</header><text>The term <term>restoration</term> means assisting the recovery of an ecosystem that has been degraded, damaged, or destroyed.</text> </subparagraph>
<subparagraph id="H543B299CA458486FBDEA8FF607EDFC34"><enum>(B)</enum><header>Inclusion</header><text>The term <term>restoration</term> includes the reestablishment in an ecosystem of preexisting biotic integrity with respect to species composition and community structure.</text> </subparagraph></paragraph>
<paragraph id="H1C920F8750C1421396044D5144B56255"><enum>(24)</enum><header>Sequestration</header><text>The term <term>sequestration</term> means the separation, isolation, or removal of greenhouse gases from the atmosphere.</text> </paragraph>
<paragraph id="H15403061B6AC4948834252E6C63D5220"><enum>(25)</enum><header>Sequestration flow</header><text>The term <term>sequestration flow</term> means the uptake of greenhouse gases each year from sequestration practices, as calculated under section 832.</text> </paragraph>
<paragraph id="HA85191CFFF1B4A8E006D131957DFFF4F"><enum>(26)</enum><header>UNFCCC</header><text>The term <term>UNFCCC</term> means the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992.</text> </paragraph></section>
<subtitle id="HF8415B0196994EF698EA97A8143D0A5"><enum>A</enum><header>Stopping and Reversing Greenhouse Gas Emissions</header>
<section id="H3B8AC62FA6CE4E8398C156331388EFA9"><enum>811.</enum><header>Regulations; greenhouse gas emissions limitations</header>
<subsection id="H3EDF0D89A2734271B38556834B7B5922"><enum>(a)</enum><header>Regulations</header><text>Not later than 18 months after the date of enactment of this title, the Administrator shall promulgate regulations to establish an allowance trading program to address emissions of greenhouse gases from covered entities in the United States.</text> </subsection>
<subsection id="H710379F84D1C4A1692D4E13DFD114541"><enum>(b)</enum><header>Greenhouse gas emissions limitations</header><text>Not later than 2 years after the date of enactment of this section, the Administrator shall promulgate annual emission reduction targets for each calendar year beginning in 2010 and ending in 2050, as follows:</text>
<paragraph id="HE4B5A20829E54E26AEF22699D89002C"><enum>(1)</enum><text>In 2010, the quantity of United States greenhouse gas emissions shall not exceed the quantity of United States greenhouse gases projected to be emitted in 2009.</text> </paragraph>
<paragraph id="H4FCF193B9E084F339D5F98529300BF30"><enum>(2)</enum><text>Beginning in 2011, the quantity of United States greenhouse gas emissions shall be reduced by approximately 2 percent each year, such that the quantity of such emissions in 2020 does not exceed the quantity of United States greenhouse gases emitted in 1990.</text> </paragraph>
<paragraph id="H62593570299E49539B503600E6CD46D"><enum>(3)</enum><text>Beginning in 2021, the quantity of United States greenhouse gas emissions shall be reduced by approximately 5 percent each year, such that the quantity of such emissions in 2050 does not exceed 20 percent of the quantity of United States greenhouse gases emitted in 1990.</text> </paragraph></subsection></section>
<section id="H36CEE6D0524E4C73BA04C4A9B74B7B09"><enum>812.</enum><header>Scientific review of the safe climate level</header>
<subsection id="HEC91C5B3A10F41B3005502FA435FAB4"><enum>(a)</enum><header>Definition and Objective of Maintaining the Safe Climate Level</header>
<paragraph id="H29F64D1B5F8E4FF78C57FDF100882254"><enum>(1)</enum><header>Finding</header><text>Congress finds that ratification by the Senate in 1992 of the UNFCCC, commitments which were affirmed by the President in 2002, established for the United States an objective of stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.</text> </paragraph>
<paragraph id="H4393D3F2B5984954A32B046C61C9822C"><enum>(2)</enum><header>Definition of safe climate level</header><text>In this section, the term <term>safe climate level</term> means the climate level referred to in paragraph (1).</text> </paragraph></subsection>
<subsection id="H5FBB34458585491996070670008DDF59"><enum>(b)</enum><header>Climate science advisory panel</header>
<paragraph id="HA2F77C2DF3D647D68BD440A6919F00C2"><enum>(1)</enum><header>Establishment</header><text>Not later than 270 days after the date of enactment of this title, the Administrator shall establish an advisory panel, to be known as the <quote>Climate Science Advisory Panel</quote> .</text> </paragraph>
<paragraph id="HACAC6A70384945AB000982B23536F2AE"><enum>(2)</enum><header>Duties</header><text>The Panel shall—</text>
<subparagraph id="HC4FC4AB2B48C4A62B818D8E83E88E0FC"><enum>(A)</enum><text>inform Congress and the Administrator of the state of climate science;</text> </subparagraph>
<subparagraph id="H83D7C92522924ED98FBAD75F92A0A5"><enum>(B)</enum><text>not later than December 31, 2010, and not less frequently than every 4 years thereafter, issue a report that is endorsed by at least 7 members of the Panel that describes recommendations for the Administrator, based on the best available information in the fields of climate science, including reports from the Intergovernmental Panel on Climate Change, relating to—</text>
<clause id="H6773E0E450E54DC2961B9DDE136536D"><enum>(i)</enum><text>the specific concentration, in parts per million, of all greenhouse gases in carbon dioxide equivalents at or below which constitutes the safe climate level; and</text> </clause>
<clause id="HBB17769DDE64459BABE9F4AF00E1D596"><enum>(ii)</enum><text>the projected timeframe for achieving the safe climate level.</text> </clause></subparagraph></paragraph>
<paragraph id="HD2DB476E4E1F461FA2AFAF766FEDA33"><enum>(3)</enum><header>Composition</header>
<subparagraph id="H6378F37A413D43A6BC9C3FC267C892D"><enum>(A)</enum><header>In general</header><text>The Panel shall be composed of 8 climate scientists and 3 former Federal officials, as described in subparagraphs (B) through (D).</text> </subparagraph>
<subparagraph id="H383B7126C6DD4C48A500905E3150B08B"><enum>(B)</enum><header>Climate scientists</header><text>Not later than 270 days after the date of enactment of this title, the President of the National Academy of Sciences shall appoint to serve on the Panel 8 climate scientists from among individuals who—</text>
<clause id="H59899A1BEED8499800A7DA1E00B16E59"><enum>(i)</enum><text>have earned doctorate degrees;</text> </clause>
<clause id="H4FFA81C77A89431190A62FFF856FE516"><enum>(ii)</enum><text>have performed research in physical, biological, or social sciences, mathematics, economics, or related fields, with a particular focus on or link to 1 or more aspects of climate science;</text> </clause>
<clause id="H55FD5308990841A4BD3EDA152F4E62D8"><enum>(iii)</enum><text>have records of peer-reviewed publications that include—</text>
<subclause id="HE584D9B1B57046C4BF9B21592FF249DE"><enum>(I)</enum><text>publications in main-stream, high-quality scientific journals (such as journals associated with respected scientific societies or those with a high impact factor, as determined by the Institute for Scientific Information);</text> </subclause>
<subclause id="H182B9EB9EA2F446C8463F6BDE69F15E3"><enum>(II)</enum><text>recent publications relating to earth systems, and particularly relating to the climate system; and</text> </subclause>
<subclause id="H06F2006488C74461BAB546B500E4A889"><enum>(III)</enum><text>a high publication rate, typically at least 2 or 3 papers per year; and</text> </subclause></clause>
<clause id="HC07C3D28742B4363999B768511C0A3F"><enum>(iv)</enum><text>have participated in high-level committees, such as those formed by the National Academy of Sciences or by leading scientific societies.</text> </clause></subparagraph>
<subparagraph id="H95EC5623D4054923BEE305FF85FC44B4"><enum>(C)</enum><header>Restriction</header><text>A majority of climate scientists appointed to the Panel under subparagraph (B) shall be participating, as of the date of appointment to the Panel, in active research in the physical or biological sciences, with a particular focus on or link to 1 or more aspects of climate science.</text> </subparagraph>
<subparagraph id="H106BF099C13A4389AF9F91A600B7007D"><enum>(D)</enum><header>Federal officials</header>
<clause id="H5E53ACE83A304C28899D120007F49850"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), the Administrator shall appoint as members of the Panel, the longest-serving former Administrators of the Environmental Protection Agency for each of the 3 most recent former Presidents.</text> </clause>
<clause id="H380DC395661C4A59BFEB3E80A1071C73"><enum>(ii)</enum><header>Timing</header><text>The 3 most recent former Presidents described in clause (i) shall be identified as of the deadline for appointments to the Panel under subparagraph (B) or (E)(ii), whichever is applicable.</text> </clause>
<clause id="HFA6DD2FA19D04D34B752264D12DF9BAD"><enum>(iii)</enum><header>Substitutes</header><text>If a former Administrator described in clause (i) declines appointment, or is unable to serve, as a member of the Panel, the Administrator shall appoint in place of the former Administrator—</text>
<subclause id="H5546E72784D74B57B760E22D1201D019"><enum>(I)</enum><text>the longest-serving former Administrator for the applicable President who agrees to serve; or</text> </subclause>
<subclause id="H4EF10F1E637C4987893FB435D8D980BA"><enum>(II)</enum><text>if no individual described in subclause (I) accepts appointment as a member of the Panel, the longest-serving Assistant Administrator for Air and Radiation for the applicable President who agrees to serve.</text> </subclause></clause></subparagraph>
<subparagraph id="H49E7E5F420FF4D3593A874FA4D7E9241"><enum>(E)</enum><header>Terms of service and vacancies</header>
<clause id="HD13FFC2F7EAF4B25A2EADB2A5CF1FF1"><enum>(i)</enum><header>Terms</header><text>The initial term of a member of the Panel shall be—</text>
<subclause id="H803C6CCAFB9B4954BBD81BF3EDC150"><enum>(I)</enum><text>to the maximum extent practicable, the period covered by, and extending through the date of issuance of, each report under paragraph (2)(B); but</text> </subclause>
<subclause id="HF3A7211D07A1406D91EB51E9B7BE9F65"><enum>(II)</enum><text>not longer than 4 years.</text> </subclause></clause>
<clause id="H2198EEFD048B431E815204BF5B7D93E8"><enum>(ii)</enum><header>Subsequent panels and reports</header><text>On the issuance of each report under paragraph (2)(B)—</text>
<subclause id="HEC6597AD9C3D4E91BDAE8738FB5131CC"><enum>(I)</enum><text>the Panel that submitted the report shall terminate; and</text> </subclause>
<subclause id="H20E4B5D252954E0F887578FB003C4103"><enum>(II)</enum>
<item commented="no" display-inline="yes-display-inline" id="H408B99CCCE9A4F7E92063B6B447900EC"><enum>(aa)</enum><text display-inline="yes-display-inline">pursuant to subparagraphs (B) and (C), the President of the National Academy of Sciences shall appoint climate scientists (including at least 3 climate scientists who served as members of the preceding Panel) to serve as members of a new Panel by not later than 15 months after the deadline for issuance of the report under paragraph (2)(B); and</text> </item>
<item id="H95847308BB3148088E0156ACFF05EE17" indent="up1"><enum>(bb)</enum><text>pursuant to subparagraph (D), the Administrator shall appoint 3 Federal officials as members of the new Panel by the deadline described in item (aa).</text> </item></subclause></clause>
<clause id="H747993917ADF4C85BD237FD3D9E863AE"><enum>(iii)</enum><header>Vacancies</header><text>Vacancies in the membership of the Panel—</text>
<subclause id="HBD66BC1678E841179749EB1C4024356E"><enum>(I)</enum><text>shall not affect the power of the remaining members to execute the functions of the Panel; and</text> </subclause>
<subclause id="H82C2E80A511E4E7BBC0459A127DB2F2F"><enum>(II)</enum><text>shall be filled in the same manner in which the original appointment was made.</text> </subclause></clause></subparagraph>
<subparagraph id="H60520C7E157F46B48342D685932BDAAC"><enum>(F)</enum><header>Chairperson and vice chairperson</header><text>The Panel shall elect a Chairperson and Vice Chairperson as soon as practicable.</text> </subparagraph>
<subparagraph id="HC81A91AD0EFB4B5F9095CE59D009011"><enum>(G)</enum><header>Compensation of members</header><text>A member of the Panel shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code, for each day (including travel time) during which the member is engaged in the performance of the duties of the Panel.</text> </subparagraph>
<subparagraph id="HB72346923BC4490AA701C39D6BB4600"><enum>(H)</enum><header>Travel expenses</header><text>A member of the Panel shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for an employee of an agency under subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code, while away from the home or regular place of business of the member in the performance of the duties of the Panel.</text> </subparagraph></paragraph>
<paragraph id="H0D23B4E544B84A5D00E0002D6551DD00"><enum>(4)</enum><header>Staff</header>
<subparagraph id="HBA81A13E34074315ABD1524BBBFC97D"><enum>(A)</enum><header>In general</header><text>The Chairperson of the Panel may, without regard to the civil service laws (including regulations), appoint and terminate an executive director and such other additional personnel as are necessary to enable the Panel to perform the duties of the Panel.</text> </subparagraph>
<subparagraph id="HF79A5CE33E4A44509E53713DB4F59C88"><enum>(B)</enum><header>Confirmation of executive director</header><text>The employment of an executive director shall be subject to confirmation by the Panel.</text> </subparagraph>
<subparagraph id="HBD8AAFD7D4864F18AE4BC5CF339CB8C2"><enum>(C)</enum><header>Compensation</header>
<clause id="H9281D0B14E07442BBD11A577C3CD2C5"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the Chairperson of the Panel may fix the compensation of the executive director and other personnel without regard to the provisions of chapter 51 and subchapter III of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/53">chapter 53</external-xref> of title 5, United States Code, relating to classification of positions and General Schedule pay rates.</text> </clause>
<clause id="H1A778F11FD20437DA780DEBD7CFF3835"><enum>(ii)</enum><header>Exception</header><text>The rate of pay for the executive director and other personnel shall not exceed the rate payable for level V of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5316">section 5316</external-xref> of title 5, United States Code.</text> </clause></subparagraph>
<subparagraph id="HD694D525874D4F86929BBE32D8BB3D09"><enum>(D)</enum><header>Detail of federal government employees</header>
<clause id="HD4E4942AFBE444ED9D28FEB3D7CBE282"><enum>(i)</enum><header>In general</header><text>An employee of the Federal Government may be detailed to the staff of the Panel without reimbursement.</text> </clause>
<clause id="H8404E897AC80434FBF76C76DB851F0C1"><enum>(ii)</enum><header>Treatment of detailees</header><text>The detail of the employee shall be without interruption or loss of civil service status or privilege.</text> </clause></subparagraph>
<subparagraph id="H44AD78CD5A2A429A9155AA00EE7DD1C1"><enum>(E)</enum><header>Procurement of temporary and intermittent services</header><text>The Chairperson or executive director of the Panel may procure temporary and intermittent services in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109(b)</external-xref> of title 5, United States Code, at rates for individuals that do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of that title.</text> </subparagraph></paragraph>
<paragraph id="H0C32ACBE467A414487AE196905ED87E"><enum>(5)</enum><header>Hearings</header><text>The Panel may hold such hearings, meet and act at such times and places, take such testimony, and receive such evidence as the Panel considers advisable to carry out this section.</text> </paragraph>
<paragraph id="H082159527C0A4B41AE02CF0063BEF026"><enum>(6)</enum><header>Information from federal agencies</header>
<subparagraph id="H397CC2D007F744C1AFAD206151F0F74F"><enum>(A)</enum><header>In general</header><text>The Panel may secure directly from a Federal agency such information as the Panel considers necessary to carry out this section.</text> </subparagraph>
<subparagraph id="H3DAE555BF7D840BEBA97E456B0353373"><enum>(B)</enum><header>Provision of information</header><text>On request of the Chairperson of the Panel, the head of the agency shall provide the information to the Panel.</text> </subparagraph></paragraph>
<paragraph id="HAF6F5158246B423BB24721752735FC09"><enum>(7)</enum><header>Postal services</header><text>The Panel may use the United States mail in the same manner and under the same conditions as other agencies of the Federal Government.</text> </paragraph></subsection></section>
<section id="HB51A757A70B847CC8FB4FA65C00A61F"><enum>813.</enum><header>Required review of emission reductions needed to maintain the safe climate level</header>
<subsection display-inline="no-display-inline" id="H3162D4999B1B48EB00C76DA64018B271"><enum>(a)</enum><header>Review and determination regarding reduction rate</header><text>Not later than December 31, 2015, the Administrator, after providing public notice and opportunity to comment, shall promulgate a final rule pursuant to which the Administrator shall review the reduction rate for greenhouse gas emissions required under section 811 and determine—</text>
<paragraph id="H96C61CAF6CA049DEB9091B9C5B26F5B"><enum>(1)</enum><text>whether to—</text>
<subparagraph id="H217159227EEF4DD2873F03F404BA0037"><enum>(A)</enum><text>accept the recommendations of the Panel under section 812(b)(2) regarding the safe climate level and the timeframe for achieving the safe climate level;</text> </subparagraph>
<subparagraph id="H0CC688E3C11D4A1092C6EB53DBEA3AD"><enum>(B)</enum><text>establish a more stringent safe climate level or timeframe, together with a detailed explanation of the justification of the Administrator for rejection of the recommendations of the Panel.</text> </subparagraph></paragraph></subsection>
<subsection display-inline="no-display-inline" id="HABE1BEA97A8F47D3A200BF1C92253D3B"><enum>(b)</enum><header>Modification of reduction rate</header>
<paragraph id="H62C0D74F551F4A2A898818A44300574F"><enum>(1)</enum><header>In general</header><text>If the Administrator makes a determination described in subparagraph (A) or (B) of subsection (a)(1),the final rule promulgated pursuant to subsection (a) shall establish a required level of emissions reductions for each calendar year, beginning with calendar year 2020, based on the considerations described in paragraph (2).</text> </paragraph>
<paragraph id="HF4490A92DB2A4FA69900A1F78C52DF6"><enum>(2)</enum><header>Considerations</header>
<subparagraph id="H34F6CB74CFAA4ADF98A0EB28FA477999"><enum>(A)</enum><header>Primary consideration</header><text>In establishing the required level of emission reductions pursuant to paragraph (1), the Administrator shall take into consideration primarily the emission reductions necessary to stabilize atmospheric greenhouse gas concentrations at the safe climate level within the timeframe specified under section 812(b)(2)(B).</text> </subparagraph>
<subparagraph id="HFA2C36A531A648E395EC11A2F000D6BD"><enum>(B)</enum><header>Secondary considerations</header><text>In establishing the required level of emission reductions pursuant to paragraph (1), in addition to the primary consideration described in paragraph (2), the Administrator shall take into consideration—</text>
<clause id="HC92FFE03CCD04C1BA71F9DF69D5D6002"><enum>(i)</enum><text>technological capability to reduce greenhouse gas emissions;</text> </clause>
<clause id="H421FB518B3B0498D8F7BA1F4C832E40"><enum>(ii)</enum><text>the progress that foreign countries have made toward reducing their greenhouse gas emissions;</text> </clause>
<clause id="H3A2E348CB38B46CC9F732F6707FB0185"><enum>(iii)</enum><text>the economic impacts within the United States of implementing this subtitle, including impacts on the major emitting sectors; and</text> </clause>
<clause id="H7339D3A59C134C10929098BE92F9543F"><enum>(iv)</enum><text>the economic impacts within the United States of inadequate action.</text> </clause></subparagraph></paragraph></subsection>
<subsection id="H7CFF658DD7B446DDA66D31A884CB238"><enum>(c)</enum><header>Enforcement Provision</header>
<paragraph id="HA5D7B05DCF264C19BE813C7F6CC7C09B"><enum>(1)</enum><header>In general</header><text>If the Administrator fails to meet a deadline for promulgation of any regulation under subsection (a), the Administrator shall withhold from allocation to covered entities that would otherwise be entitled to an allocation of allowances under this subtitle a total of 10 percent of the allowances for each covered entity for each year after the deadline until the Administrator promulgates the applicable regulation.</text> </paragraph>
<paragraph id="HC9FECA323D9C443B9B38C0A6D15199BF"><enum>(2)</enum><header>Return of allowances</header><text>On promulgation of a delayed regulation described in paragraph (1), the Administrator shall distribute any allowances withheld under that paragraph—</text>
<subparagraph id="H620D54212039401381B9C3C3DCE8B16"><enum>(A)</enum><text>among the covered entities from which the allowances were withheld; and</text> </subparagraph>
<subparagraph id="H587BB46108B0404C9E1CD819627E45A4"><enum>(B)</enum><text>in accordance with section 816.</text> </subparagraph></paragraph></subsection>
<subsection id="HEF027DBA650F456C9E18B76431C22C22"><enum>(d)</enum><header>Subsequent Rulemakings</header>
<paragraph id="HE9FE953AFDE9472EAD0508293855E3E"><enum>(1)</enum><header>In general</header><text>Not later than December 31, 2019, and every 4 years thereafter, the Administrator shall promulgate a new final rule described in subsection (a) in accordance with this section.</text> </paragraph>
<paragraph id="H09AC538ECC604FC18879040628E2003B"><enum>(2)</enum><header>Effective date</header><text>If a new final rule promulgated pursuant to paragraph (1) changes a level of emission reductions required under the preceding final rule, the effective date of the new final rule shall be January 1 of the calendar year that is 5 years after the deadline for promulgation of the new final rule under paragraph (1).</text> </paragraph></subsection></section>
<section id="H2A752E86920343A0975C8F4BFBC3582"><enum>814.</enum><header>Distribution of allowances between auctions and allocations; nature of allowances</header>
<subsection id="H469941639B704A739459F7EE0061BB5B"><enum>(a)</enum><header>Distribution of Allowances Between Auctions and Allocations</header>
<paragraph id="H87E2CB7EB8CF4ECC91EFC298BCDB79C0"><enum>(1)</enum><header>In general</header><text>For each calendar year, the total quantity of allowances to be auctioned and allocated under this subtitle shall be equal to the annual tonnage limitation for emissions of greenhouse gases from covered entities specified in section 811 for the calendar year.</text> </paragraph>
<paragraph id="HD10CDD6115CA48ECAABBA7A1D7A7121B"><enum>(2)</enum><header>Distribution</header><text>The proportion of allowances to be auctioned pursuant to section 815 and allocated pursuant to section 816 for each calendar year beginning in calendar year 2010 shall be as follows:</text>
<table table-type="" table-template-name="Generic: 3 text, even cols" align-to-level="section" frame="topbot" colsep="1" rowsep="0" blank-lines-before="1" line-rules="hor-ver" rule-weights="4.4.4.0.0.0"><ttitle><bold>Percentages of Allowances To Be Auctioned and Allocated</bold></ttitle>
<tgroup cols="3" rowsep="0" thead-tbody-ldg-size="10.10.10" grid-typeface="1.1"><colspec colname="column1" colsep="0" rowsep="0" align="center" coldef="fig" min-data-value="15" colwidth="179.25pt"/><colspec colname="column2" colsep="0" rowsep="0" align="center" coldef="fig" min-data-value="15" colwidth="141.00pt"/><colspec colname="column3" rowsep="0" align="center" coldef="fig" min-data-value="15" colwidth="168.00pt"/><thead>
<row><entry namest="column1" morerows="0" rowsep="1" align="center" colname="column1"><bold>Calendar year</bold></entry><entry namest="column2" morerows="0" rowsep="1" align="center" colname="column2"><bold>Percentage<linebreak/> to be<linebreak/> auctioned</bold></entry><entry namest="column3" morerows="0" rowsep="1" align="center" colname="column3"><bold>Percentage<linebreak/> to be<linebreak/> allocated</bold></entry></row></thead>
<tbody>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2010</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 50</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">50</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2011</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 53</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">47</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2012</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 56</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">44</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2013</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 59</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">41</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2014</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 62</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">38</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2015</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 65</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">35</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2016</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 68</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">32</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2017</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 71</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">29</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2018</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 74</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">26</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2019</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 77</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">23</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2020</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 80</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">20</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2021</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 83</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">17</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2022</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 86</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">14</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2023</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 89</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3">11</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2024</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 92</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3"> 8</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2025</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2"> 96</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3"> 4</entry></row>
<row><entry rowsep="0" stub-definition="txt-ldr" leader-modify="clr-ldr" colname="column1">2026</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column2">100</entry><entry rowsep="0" leader-modify="clr-ldr" colname="column3"> 0.</entry></row></tbody></tgroup></table> </paragraph></subsection>
<subsection id="H8CCAD44C3C054679B9BA56DDB05BF8FA"><enum>(b)</enum><header>Nature of Allowances</header><text display-inline="yes-display-inline">An allowance—</text>
<paragraph id="H9E5969A41B81440297D73DE3D050D254"><enum>(1)</enum><text>shall not be considered to be a property right; and</text> </paragraph>
<paragraph id="H1164FE771B634190A77FBB7440CF7DEB"><enum>(2)</enum><text>may be terminated or limited by the Administrator.</text> </paragraph></subsection>
<subsection id="H594EC8E2BD0D41BC820000C3688D08E1"><enum>(c)</enum><header>No Judicial Review</header><text>An auction or allocation of an allowance by the Administrator shall not be subject to judicial review.</text> </subsection></section>
<section id="HB75AB7EDF8D041EEBC551C95B5A33C64"><enum>815.</enum><header>Auction of allowances</header>
<subsection id="H6AC20381B7714604A77800FE7E378694"><enum>(a)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations establishing a procedure for the auction of the quantity of allowances specified in section 814(a) for each calendar year.</text> </subsection>
<subsection id="H9B837109D6AD4724AE31A9E7E5714173"><enum>(b)</enum><header>Deposit of proceeds</header><text>The Administrator shall deposit all proceeds from auctions conducted under this section in the General Fund of the United States Treasury.</text> </subsection></section>
<section id="HED3600CC1B1D4E24A2DE63AAF9D46C0"><enum>816.</enum><header>Allocation of allowances</header>
<subsection id="HD23C6580F94A4CB9B955083C8316754B"><enum>(a)</enum><header>Allocations to covered entities and other eligible entities</header><text>Beginning with calendar year 2010, the Administrator shall, by regulation, establish a process for the allocation of free tradeable allowances under this section that will—</text>
<paragraph id="H6D72040379A34372A89BBE00B13DB3C1"><enum>(1)</enum><text>provide equitable compensation for covered entities subject to unrecoverable costs resulting from the regulations promulgated under this title;</text> </paragraph>
<paragraph id="H0690C97C2A0E42B285516D25CA84E8FF"><enum>(2)</enum><text>avoid overcompensating covered entities;</text> </paragraph>
<paragraph id="HA7C174A752B0410D80AECF8D805681D"><enum>(3)</enum><text>minimize the costs to the government of allocating tradeable allowances;</text> </paragraph>
<paragraph id="HCF4C3F902B5A411B82E71FA6A7601743"><enum>(4)</enum><text>provide incentives for the deployment of new low and zero carbon energy technologies and energy efficiency upgrades at covered entities;</text> </paragraph>
<paragraph id="HC568F4B08368411B9561621EE2AB8D22"><enum>(5)</enum><text>give credit to covered entities for emissions reductions made before 2010 and registered with the National Registry established in subtitle C;</text> </paragraph>
<paragraph id="HD1BE393EF1A74BA499832FADE0FB8F03"><enum>(6)</enum><text>recognize the investments that covered entities and their customers have made to reduce their energy use and greenhouse gas emissions prior to enactment of this title; and</text> </paragraph>
<paragraph id="HC6C2FE86708D40CCA1D54C8D51AD5EB4"><enum>(7)</enum><text>maintain the international competitiveness of United States manufacturing and avoid the additional loss of United States manufacturing jobs.</text> </paragraph></subsection>
<subsection id="HB65583FDA9D3492E9DD0BB6F9931DBBF"><enum>(b)</enum><header>Allocations to new covered entities and new eligible entities</header>
<paragraph id="HB7E6A818399244049C00EFCFE65CD6F6"><enum>(1)</enum><header>Establishment</header><text>For each calendar year, the Administrator, in consultation with the Secretary of Energy the Secretary of Commerce, and with consideration to the allocation factors listed in subsection (a) shall promulgate regulations establishing—</text>
<subparagraph id="H1C98F8C5BA394010AEA9DD08D415F916"><enum>(A)</enum><text>a reserve of allowances to be allocated among new covered entities and new eligible entities for the calendar year; and</text> </subparagraph>
<subparagraph id="HC1EE017785AE46EEBEABD110C79FDD90"><enum>(B)</enum><text>the methodology for allocating those allowances among new covered entities and new eligible entities.</text> </subparagraph></paragraph>
<paragraph id="HD60A2E04B116455BAEE09628CE7B428"><enum>(2)</enum><header>Limitation</header><text>The number of allowances allocated under paragraph (1) during a calendar year shall be not more than 3 percent of the total number of allowances allocated among entities for the calendar year.</text> </paragraph>
<paragraph id="H14E0CFC1A84C4AF593213EB52C2942F2"><enum>(3)</enum><header>Unused allowances</header><text>For each calendar year, the Administrator shall reallocate to each entity any unused allowances from the new entity reserve established under paragraph (1) in the proportion that—</text>
<subparagraph id="H9F5FD55516094C3EBB50AADC082F521D"><enum>(A)</enum><text>the number of allowances allocated to each entity for the calendar year; bears to</text> </subparagraph>
<subparagraph id="HBDDD95C012DE410F8E1EA300C7A73303"><enum>(B)</enum><text>the number of allowances allocated to all entities for the calendar year.</text> </subparagraph></paragraph></subsection>
<subsection id="H32F47499ED044F529400652F4F0000CD"><enum>(c)</enum><header>Total quantity of allowances To be allocated</header><text>For each calendar year, the quantity of allowances allocated under subsection (a) shall be equal to the difference between subparagraphs (1) and (2)—</text>
<paragraph id="H964F67CBFF274121959F7946F2F872E"><enum>(1)</enum><text>the allocation percentage in section 814 of the annual limitation for emissions of greenhouse gases from covered entities specified in section 811 for the calendar year, as modified, if applicable, under section 813; and</text> </paragraph>
<paragraph id="H894C21E5CFFB4D918F329726CEB8B6"><enum>(2)</enum><text>the quantity of allowances reserved for new covered entities under subsection (b) for the calendar year.</text> </paragraph></subsection>
<subsection id="H729DF44881DC4C69B3ABC499D4199B1"><enum>(d)</enum><header>Coal-fired covered entities</header>
<paragraph id="H696E99FC94CB4734B6533699C2971428"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of this subtitle, no allowance shall be allocated under this subtitle to a coal-fired covered entity unless the covered entity—</text>
<subparagraph id="HA9B62E3A9DC64CA087E752550010F0BF"><enum>(A)</enum><text>is powered by qualifying advanced clean coal technology, as defined pursuant to paragraph (2); or</text> </subparagraph>
<subparagraph id="HB20BB295FB48462097BF411234138CFA"><enum>(B)</enum><text>entered operation before January 1, 2007.</text> </subparagraph></paragraph>
<paragraph id="H2D3B1E2815AC4B00AD6C0093166B692B"><enum>(2)</enum><header>Definition of qualifying advanced clean coal technology</header>
<subparagraph id="HC384AA95C47245B5879EEF3DC4612717"><enum>(A)</enum><header>In general</header><text>Not later than 18 months after the date of enactment of this title, the Administrator, by regulation, shall define the term <term>qualifying advanced clean coal technology</term> with respect to electric power generation.</text> </subparagraph>
<subparagraph id="HAC78F13C27C74D4D976193989709B900"><enum>(B)</enum><header>Requirement</header><text>In promulgating a definition pursuant to subparagraph (A), the Administrator shall ensure that the term <term>qualifying advanced clean coal technology</term> reflects advances in available technology, taking into consideration—</text>
<clause id="HDE46370637F445698C4F23E41E004B3D"><enum>(i)</enum><text>net thermal efficiency;</text> </clause>
<clause id="HC3E9AD3C138F4B4BBCEB2899E70569A0"><enum>(ii)</enum><text>measures to capture and sequester carbon dioxide; and</text> </clause>
<clause id="HE4225CA30DFA4041BAF09F7016F1CBF8"><enum>(iii)</enum><text>output-based emission rates for—</text>
<subclause id="H51B4FB8E94DB40D7B23B91AF3B7F6782"><enum>(I)</enum><text>carbon dioxide;</text> </subclause>
<subclause id="H9D8549A430084CD89819C8317647BDE6"><enum>(II)</enum><text>sulfur dioxide;</text> </subclause>
<subclause id="H4E8374E0B9D0469397BA45C588AF3336"><enum>(III)</enum><text>oxides of nitrogen;</text> </subclause>
<subclause id="H87FDD9A0FF4C43CD84A73482663259EF"><enum>(IV)</enum><text>filterable and condensable particulate matter; and</text> </subclause>
<subclause id="HAAE2AAF0F37C4CBE9DFA13F84C47D873"><enum>(V)</enum><text>mercury.</text> </subclause></clause></subparagraph>
<subparagraph id="HC3B12556757F492E8D4F002441E6657F"><enum>(C)</enum><header>Review and revision</header>
<clause id="H6C9C4FE82A6040CA9E3D00244F77D4BD"><enum>(i)</enum><header>In general</header><text>Not later than July 1, 2009, and each July 1 of every second year thereafter, the Administrator shall review and, if appropriate, revise the definition under subparagraph (A) based on technological advances during the preceding 2 calendar years.</text> </clause>
<clause id="H0CA4572926694C3880A0679E58CC73AC"><enum>(ii)</enum><header>Notice and comment required</header><text>Subject to clause (iii), after the initial definition is established under subparagraph (A), no subsequent review or revision under this subparagraph shall be subject to the notice and comment provisions of section 307 of this Act or of <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code.</text> </clause>
<clause id="H79C20A6720FA4379AC7E2791F12DD9FD"><enum>(iii)</enum><header>Effect</header><text>Nothing in clause (ii) precludes the application of the notice and comment provisions of section 307 of this Act or of <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code, as the Administrator determines to be practicable.</text> </clause></subparagraph></paragraph></subsection></section>
<section id="H2832D4E8E39749E1A83C07F5FD15091B"><enum>817.</enum><header>Adaptation assistance</header>
<subsection id="H7A585BE8D7674039B4C87E553E640055"><enum>(a)</enum><header>Adaptation Assistance for Workers and Communities Negatively Affected by Climate Change and Greenhouse Gas Regulation</header><text>For each calendar year the Administrator shall, in consultation with the Secretary of labor and the Secretary of commerce, provide adaptation assistance for workers and communities—</text>
<paragraph id="H2AB17053E4B744BCB7864CC089B7398"><enum>(1)</enum><text>to address local or regional impacts of climate change and the impacts, if any, from greenhouse gas regulation, including by providing assistance to displaced workers and disproportionately affected communities; and</text> </paragraph>
<paragraph id="H4F24C6052FD64DA5B25118E5202D9687"><enum>(2)</enum><text>to mitigate impacts of climate change and the impacts, in any, from greenhouse gas regulation on low-income energy consumers.</text> </paragraph></subsection>
<subsection id="HBA78EDAE33A84ACFA1097C32B5CBF6E2"><enum>(b)</enum><header>Adaptation assistance for fish and wildlife habitat</header><text display-inline="yes-display-inline">For each calendar year, the Administrator shall, in consultation with the United States Fish and Wildlife Service, the fund efforts to strengthen and restore habitat that improves the ability of fish and wildlife to adapt successfully to climate change. The funding made available for such purposes shall be directed toward the wildlife restoration fund subaccount known as the Wildlife Conservation and Restoration Account established under section 3 of the Pittman-Robertson Wildlife Restoration Act (<external-xref legal-doc="usc" parsable-cite="usc/16/669b">16 U.S.C. 669b</external-xref>). Amounts deposited in the subaccount under this paragraph shall be available without further appropriation for obligation and expenditure under that Act.</text> </subsection>
<subsection id="HBAFA0D99C5A74D399BC7ED17E68C8D1F"><enum>(c)</enum><text>There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2010 through 2050.</text> </subsection></section>
<section id="H4481195BE59D457D9337917F7E4FE4F0"><enum>818.</enum><header>Early reduction credits</header>
<subsection id="HDA91CAEEF56C467ABFC8807D0000E02D"><enum>(a)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations that provide for the issuance on a 1-time basis, certification, and use of early reduction credits for greenhouse gas reduction or sequestration projects carried out during any of calendar years 2000 through 2010.</text> </subsection>
<subsection id="H2EF8F8893EED44708326EA9063A2FBC3"><enum>(b)</enum><header>Eligible projects</header><text>A greenhouse gas reduction or sequestration project shall be eligible for early reduction credits if the project—</text>
<paragraph id="HECB770326C6A4198879BF94EB13400BF"><enum>(1)</enum><text>is carried out in the United States;</text> </paragraph>
<paragraph id="H67FB546637854032001FD03C5D002CE6"><enum>(2)</enum><text>meets the standards contained in regulations promulgated by the Administrator under subsection (a) that the Administrator determines to be applicable to the project, including consistency with the requirements of—</text>
<subparagraph id="H61A9D67562CD4D769445B86DEECC7D86"><enum>(A)</enum><text>paragraphs (2) through (5) of section 836(a), with respect to greenhouse gas reduction projects; and</text> </subparagraph>
<subparagraph id="HFEE10E75F7CF4F81AAF3D7CB350562C"><enum>(B)</enum><text>section 832(a), with respect to sequestration projects; and</text> </subparagraph></paragraph>
<paragraph id="H19FCAF4DD07F473E86A1F02C3B181474"><enum>(3)</enum><text display-inline="yes-display-inline">was reported to a State, regional or National registry or was otherwise accounted for in a manner that the Administrator determines to be legitimate—</text>
<subparagraph id="HAE5C72DB941945518D9E16C35BE30465"><enum>(A)</enum><text>under section 1605(b) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13385">42 U.S.C. 13385(b)</external-xref>); or</text> </subparagraph>
<subparagraph id="H668C12E7BB2B4C809DE123C819C21111"><enum>(B)</enum><text>to a State or regional greenhouse gas registry.</text> </subparagraph></paragraph></subsection>
<subsection id="H53B0071F89BE41F595DDA2ECF263475E"><enum>(c)</enum><header>Limitation</header>
<paragraph id="H7F044B12133C4AABBF969200A6FAC5B0"><enum>(1)</enum><header>In general</header><text>The aggregate quantity of early reduction credits available for greenhouse gas reduction or sequestration projects for the period of calendar years 2000 through 2009 shall not exceed 10 percent of the tonnage limitation for calendar year 2010 for emissions of greenhouse gases from covered entities under section 811.</text> </paragraph>
<paragraph id="HE7030E3A23E14DF48FFA815D1C8D68BF"><enum>(2)</enum><header>No other exceedance of tonnage limitation</header><text>No provision of this subtitle (other than paragraph (1)) or any regulation promulgated under this subtitle authorizes the issuance or use of a quantity of credits greater than the annual tonnage limitation for emissions of greenhouse gases from covered entities for a calendar year.</text> </paragraph></subsection></section>
<section id="H3B192A7CD6B440178D005BCBA474007F"><enum>819.</enum><header>Avoiding significant economic harm</header>
<subsection id="H25001527F02B4910AD5441841B3DC436"><enum>(a)</enum><header>In general</header><text>Pursuant to the regulations promulgated under this section, the Administrator may permit covered entities to use allowances in a calendar year before the calendar year for which the allowances were allocated.</text> </subsection>
<subsection id="HBC3CA531FA0643E6943900B4C6D73B07"><enum>(b)</enum><header>Regulations</header>
<paragraph id="H9CF65E722CC7416FA3AE7A9AF5970D"><enum>(1)</enum><header>In general</header><text>Not later than 3 years after the date of enactment of this title, the Administrator, in coordination with the Secretary of the Treasury, shall promulgate regulations requiring the continuous monitoring of the operation of the carbon market and the effect of that market on the economy of the United States.</text> </paragraph>
<paragraph id="HED2045BEEDB546A8AE4974939C59483C"><enum>(2)</enum><header>Requirements</header><text>The regulations shall—</text>
<subparagraph id="H241EFB27597A4425959E62E00FDB49E"><enum>(A)</enum><text>establish the criteria for determining whether allowance prices have reached and sustained a level that is causing or will cause significant harm to the economy of the United States; and</text> </subparagraph>
<subparagraph id="HF84B0C08A14D435D9F50AFDDEE0BDC6"><enum>(B)</enum><text>take into consideration—</text>
<clause id="H3008B22F68E74A5E9488A2AFA030300"><enum>(i)</enum><text>the obligation of the United States under this subtitle to stabilize greenhouse gas concentrations in the atmosphere at the safe climate level; and</text> </clause>
<clause id="HE217632B2B914E26A0B5E18B75CC55F7"><enum>(ii)</enum><text>the costs of the anticipated impacts of climate change in the United States.</text> </clause></subparagraph></paragraph>
<paragraph id="H1AC359EBF71641D68E295D5F4D00598B"><enum>(3)</enum><header>Prevention of economic harm</header><text>If the Administrator determines that allowance prices have reached and sustained a level that is causing or will cause significant harm to the economy of the United States, the regulations shall establish a program under which a covered entity may use allowances in a calendar year before the calendar year for which the allowances were allocated, including—</text>
<subparagraph id="HDBE37FED65CA4460974C75B7F5E550F1"><enum>(A)</enum><text>a requirement that allowances borrowed from the allocation of a future year reduce the allocation of allowances to the covered entity for the future year on a 1-to-1 basis;</text> </subparagraph>
<subparagraph id="H3EEAD024CB914D478E90F7E271168B48"><enum>(B)</enum><text>a requirement for payment of interest on borrowed allowances requiring the submission of additional credits upon repayment of the allowances equal to the product obtained by multiplying—</text>
<clause id="HA6931E69B7CF49DF8EF19F830635F8D"><enum>(i)</enum><text>the number of years between the advance use of allowances by a covered entity under clause (i) and the submission of additional credits under this clause; and</text> </clause>
<clause id="H43C6EEA82D8E4467948EDD7300B79576"><enum>(ii)</enum><text>the sum obtained by adding—</text>
<subclause id="HEA9EFA7A195E416EB176E2CCB05522B8"><enum>(I)</enum><text>the Federal short-term rate, as defined pursuant to <external-xref legal-doc="usc" parsable-cite="usc/26/1274">section 1274(d)(1)(C)(i)</external-xref> of the Internal Revenue Code of 1986; and</text> </subclause>
<subclause id="H46F9CA54647C4358AC8167348C007FF1"><enum>(II)</enum><text>2 percent; and</text> </subclause></clause></subparagraph>
<subparagraph id="H2962F32546BB4DF3A19300552405FC9F"><enum>(C)</enum><text>a limitation that in no event may a covered entity—</text>
<clause id="HC01F2DC91D584499BF485DAE2CDC0761"><enum>(i)</enum><text>satisfy more than 10 percent of the obligation of the covered entity under section 821(a) to surrender allowances by submitting allowances in a calendar year before the calendar year for which the allowances were allocated; and</text> </clause>
<clause id="H10BA7826D8A349D600BF8F3D82FF1800"><enum>(ii)</enum><text>use allowances in a calendar year that is more than 3 years before the calendar year for which the allowances were allocated; and</text> </clause></subparagraph></paragraph></subsection></section>
<section id="H1B67F48F7538499FBB71FCFC81497BBD"><enum>820.</enum><header>Use and transfer of credits</header>
<subsection id="HA58B9102F45549828F52CEC1597FD5BC"><enum>(a)</enum><header>Use in Other Greenhouse Gas Allowance Trading Programs</header>
<paragraph id="HF0DFC4EC86EE47DBAA2050D78293F700"><enum>(1)</enum><header>In general</header><text>A credit obtained under this subtitle may be used in any other greenhouse gas allowance trading program, including a program of 1 or more States or subdivisions of States, that is approved by the Administrator and an authorized official for the other program for use of the allowance.</text> </paragraph>
<paragraph id="H9006152B160C4F6AAEF0F739DA8BB6B7"><enum>(2)</enum><header>Reciprocity</header><text>A credit obtained from another greenhouse gas trading program, including a program of 1 or more States or subdivisions of States, that is approved by the Administrator and an authorized official for the other program may be used in the trading program under this title.</text> </paragraph></subsection>
<subsection id="HFF7253453D18439492E57B963BB7A6AC"><enum>(b)</enum><header>Allowance use before applicable calendar year</header><text>Except as provided in section 819, an allowance auctioned or allocated under this subtitle may not be used before the calendar year for which the allowance was auctioned or allocated.</text> </subsection>
<subsection id="H98C7152C7C934621BC59AEBC05F32547"><enum>(c)</enum><header>Transfer</header>
<paragraph id="HFDBEC2431DF2460AAD09B22DEB1DC3C4"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the transfer of a credit shall not take effect until receipt and recording by the Administrator of a written certification of the transfer that is executed by an authorized official of the person making the transfer.</text> </paragraph>
<paragraph id="H78CB3888F6744EA5B35C60593B669EC6"><enum>(2)</enum><header>Special rule for allowances</header><text>Notwithstanding paragraph (1), the transfer of an allowance auctioned or allocated under this subtitle may take effect before the calendar year for which the allowance was auctioned or allocated.</text> </paragraph></subsection>
<subsection id="HE5B65376CA774B97A54C1C4E5EF7488B"><enum>(d)</enum><header>Banking of credits</header><text>Any covered entity may use a credit obtained under this subtitle in the calendar year for which the credit was auctioned or allocated, or in a subsequent calendar year, to demonstrate compliance with section 821.</text> </subsection>
<subsection id="H85C0BA134D434E18B12F4225B5FEC53C"><enum>(e)</enum><header>Limitations on the use of offset credits</header><text>The owner of each covered entity may not satisfy more than 10 percent of the obligation of the covered entity under section 821(a) by submitting offset credits. The Administrator may modify the maximum allowable offset credits that a covered entity may use to demonstrate compliance with section 821(a). In evaluating this determination, the Administrator shall take into consideration:</text>
<paragraph id="H20F0CDD5AEA244CABB1570FF5C5D6100"><enum>(1)</enum><text>technological capability to reduce greenhouse gas emissions; and</text> </paragraph>
<paragraph id="HD0238F6EBC8546C28D67EE330093D204"><enum>(2)</enum><text>the economic impacts within the United States of allowing covered entities to submit a fewer or greater number of offset credits, including impacts on the major emitting sectors.</text> </paragraph></subsection></section>
<section id="H10A0B5A441444235AA5EB6B11E10D019"><enum>821.</enum><header>Compliance and enforcement</header>
<subsection id="H5CA9DF1F3E1D4F8380B22D461CF2E138"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For calendar year 2010 and each calendar year thereafter, the owner of each covered entity shall surrender to the Administrator a quantity of credits that is equal to the total tons of carbon dioxide or, with respect to other greenhouse gases, tons in carbon dioxide equivalent, emitted by a covered entity during a calendar year.</text> </subsection>
<subsection id="H6745F6DE81364E50B9687C0864CA7663"><enum>(b)</enum><header>Regulations</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations establishing the procedures for the surrender of credits.</text> </subsection>
<subsection id="H2F2B6A3EB51A4BBE00E8FCFF40835396"><enum>(c)</enum><header>Penalty</header><text>The owner of a covered entity that emits greenhouse gases in excess of the number of credits that the owner of the covered entity holds for use of the covered entity for the calendar year shall—</text>
<paragraph id="H39A5DDF096944467B1D0F611EFD1870"><enum>(1)</enum><text>submit to the Administrator 1.3 credits for each metric ton of excess greenhouse gas emissions of the covered entity; and</text> </paragraph>
<paragraph id="H27D235EAD27D4ECC86F8159CC709C300"><enum>(2)</enum><text>pay an excess emissions penalty equal to the product obtained by multiplying—</text>
<subparagraph id="HB53215C633ED4FA79005EBEF2E1D30AA"><enum>(A)</enum><text>the number of tons of carbon dioxide, or the carbon dioxide equivalent of other greenhouse gases, emitted in excess of the total quantity of credits held by the covered entity; and</text> </subparagraph>
<subparagraph id="HE58391CB242C4128A0504890E490EA76"><enum>(B)</enum>
<clause commented="no" display-inline="yes-display-inline" id="H07906AC08A06469E9F009578FEE3047"><enum>(i)</enum><text>except as provided in clause (ii), $100, as adjusted for changes beginning on January 1, 2007, in accordance with the Consumer Price Index for All-Urban Consumers published by the Department of Labor; or</text> </clause>
<clause id="H47B25F7885F146FB96CEC3D7FCE66152" indent="up1"><enum>(ii)</enum><text>if the average market price for a metric ton of carbon dioxide equivalent during a calendar year exceeds $60, $200, as adjusted for changes beginning on January 1, 2007, in accordance with the Consumer Price Index for All-Urban Consumers published by the Department of Labor.</text> </clause></subparagraph></paragraph></subsection></section>
<section display-inline="no-display-inline" id="HF168FB2292134FD19C1CEF51BEE6EF0" section-type="subsequent-section"><enum>822.</enum><header>Equalizing the treatment of domestic and imported industrial products sold in the United States</header>
<subsection id="H543044E1547647F98FBA06421E0022FD"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text>
<paragraph id="HDFE0D49670FA4C8F816432211DAA65F1"><enum>(1)</enum><text>Greenhouse gas emission reductions from industry sectors are necessary to protect from dangerous climate change—</text>
<subparagraph id="H24AA361903BA45F39502D342FBAEE383"><enum>(A)</enum><text>human, animal, and plant life and health in the United States; and</text> </subparagraph>
<subparagraph id="H9A07643FF8084911A55B0038561BDE58"><enum>(B)</enum><text>the environment in the United States; and</text> </subparagraph></paragraph>
<paragraph id="H6DC3BA12A850433FB123B713071D33E9"><enum>(2)</enum><text>the environmental and natural resource protections described in paragraph (1) would be undermined if manufacturing of industry sector products shifted to locations outside the United States without comparable limits on greenhouse gas emissions.</text> </paragraph></subsection>
<subsection id="H2BBEC68BD5354339A6C5D197EB75F8D"><enum>(b)</enum><header>Equalize treatment for energy intensive products</header><text>Not later than December 31, 2008, the Administrator, in consultation with the United States Trade Representative, the Secretary of State, and the Secretary of Commerce, shall consider ways to establish equal treatment, with respect to greenhouse gas emissions, of domestic and imported industrial products sold in the United States. Not later than December 31, 2011, the Administrator shall begin to implement policies and recommend to Congress regulatory mechanisms that would assure that energy intensive materials sold into United States commerce, of domestic and foreign origin, are manufactured according to minimum performance standards with respect to the greenhouse gas emissions produced per ton of material produced.</text> </subsection>
<subsection id="H95CF3F398DD34602856CBBB78796D667"><enum>(c)</enum><header>Consultation</header><text>In developing policies and recommendations under this section, the Administrator shall consult with other government entities within and outside the United States having programs for control of greenhouse gas emissions from the manufacturing sector.</text> </subsection>
<subsection id="H2081C158DD5C4ED9B261CAA62DAF3111"><enum>(d)</enum><header>Considerations</header><text>In developing policies and recommendations under this section, the Administrator, in consultation with the United States Trade Representative, the Secretary of State, and the Secretary of Commerce, shall consider—</text>
<paragraph id="H391F74E364A143E4993CEA16D2DED506"><enum>(1)</enum><text>the principle of equal treatment of domestic and imported industrial products sold in the United States;</text> </paragraph>
<paragraph id="H392670E11BC545DFBCF1C6BF89CFAB8"><enum>(2)</enum><text>the need to sustain United States natural resources for use by future generations;</text> </paragraph>
<paragraph id="H70616B270147453492E8003B25E0CBB3"><enum>(3)</enum><text>the distinction between foreign manufacturers from countries with regulation of greenhouse gases comparable to this title, and foreign manufacturers from countries without such comparable regulation;</text> </paragraph>
<paragraph id="H18559EE6374A4B65B5C2146600B09F9D"><enum>(4)</enum><text>the obligations of the United States and other countries under applicable treaties and trade agreements; and</text> </paragraph>
<paragraph id="H27AD64B2789F493A87BD0034287935DA"><enum>(5)</enum><text>such other factors as the Administrator, in consultation with the United States Trade Representative, the Secretary of State, and the Secretary of Commerce, determines to be relevant and appropriate.</text> </paragraph></subsection>
<subsection id="H0164A9B3D3624C2AB4852839F5CD7C1C"><enum>(e)</enum><header>International trade agreements</header><text>The United States Trade Representative shall negotiate trade agreements that are consistent with the standards regulated under this section.</text> </subsection></section></subtitle>
<subtitle id="HF20BD5DFE6364A1B9680389E4E76CC05"><enum>B</enum><header>Offset Credits</header>
<section id="H9797A0D118F44FBF80C5BAB2B80031CD"><enum>831.</enum><header>Outreach initiative on revenue enhancement for agricultural producers</header>
<subsection id="HCB951C8992F24284BC4DC481CBDA34B1"><enum>(a)</enum><header>Purposes</header><text>The purposes of this subtitle are to achieve climate benefits, reduce overall costs to the United States economy, and enhance revenue for domestic agricultural producers, foresters, and other landowners by—</text>
<paragraph id="HA49A3E93441A475E9BC1C52C64CF6982"><enum>(1)</enum><text>establishing procedures by which domestic agricultural producers, foresters, and other landowners can measure and report reductions in greenhouse gas emissions and increases in sequestration; and</text> </paragraph>
<paragraph id="H37DB5001EFA74516A3C42EE67CBD9856"><enum>(2)</enum><text>publishing a handbook of guidance for domestic agricultural producers, foresters, and other landowners to market emission reductions to companies.</text> </paragraph></subsection>
<subsection id="H1BD5D615956342398FDC88DFFA565C39"><enum>(b)</enum><header>Establishment</header><text>The Secretary of Agriculture, acting through the Chief of the Natural Resources Conservation Service, the Chief of the Forest Service, the Administrator of the Cooperative State Research, Education, and Extension Service, and land-grant colleges and universities, in consultation with the Administrator and the heads of other appropriate departments and agencies, shall establish an outreach initiative to provide information to agricultural producers, agricultural organizations, foresters, and other landowners about opportunities under this subtitle to earn new revenue.</text> </subsection>
<subsection id="H73B6988E0E034C42B7008022DE3536C"><enum>(c)</enum><header>Components</header><text>The initiative under this section—</text>
<paragraph id="H273EAA56C7764361BAC61C7879E3144"><enum>(1)</enum><text>shall be designed to ensure that, to the maximum extent practicable, agricultural organizations and individual agricultural producers, foresters, and other landowners receive detailed practical information about—</text>
<subparagraph id="H01DA157C09534CB1A9E3618DD9A2A214"><enum>(A)</enum><text>opportunities to earn new revenue under this subtitle;</text> </subparagraph>
<subparagraph id="H1BC90F092F044FED8980008CF59CBDF"><enum>(B)</enum><text>measurement protocols, monitoring, verifying, inventorying, registering, insuring, and marketing offsets under this title;</text> </subparagraph>
<subparagraph id="H3B28519A284C4B85B663CF00608232F9"><enum>(C)</enum><text>emerging domestic markets for energy crops, allowances, and offsets; and</text> </subparagraph>
<subparagraph id="H97719679DA16495B88F6DCF7334BA3C"><enum>(D)</enum><text>local, regional, and national databases and aggregation networks to facilitate achievement, measurement, registration, and sales of offsets;</text> </subparagraph></paragraph>
<paragraph id="HCC6AEFF3900B4FBA852E7F56B79ECB04"><enum>(2)</enum><text>shall provide—</text>
<subparagraph id="H1FD05F097BB84FCB939D434BF800473B"><enum>(A)</enum><text>outreach materials, including the handbook published under subsection (d)(1), to interested parties;</text> </subparagraph>
<subparagraph id="H30993EA167674C7DB9714F05A37BE6C3"><enum>(B)</enum><text>workshops; and</text> </subparagraph>
<subparagraph id="HE978FE7E0D3F49C99978B1B201A1F2DA"><enum>(C)</enum><text>technical assistance; and</text> </subparagraph></paragraph>
<paragraph id="H38AF825346664FA5863039A5DB433300"><enum>(3)</enum><text>may include the creation and development of regional marketing centers or coordination with existing centers (including centers within the Natural Resources Conservation Service or the Cooperative State Research, Education, and Extension Service or at land-grant colleges and universities).</text> </paragraph></subsection>
<subsection id="H5076C8FDD74C48F1925417028122063E"><enum>(d)</enum><header>Handbook</header>
<paragraph id="HED68F3F524354183A8826C642FCE52D5"><enum>(1)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this title, the Secretary of Agriculture, in consultation with the Administrator and after public input, shall publish a handbook for use by agricultural producers, agricultural cooperatives, foresters, other landowners, offset buyers, and other stakeholders that provides easy-to-use guidance on achieving, reporting, registering, and marketing offsets.</text> </paragraph>
<paragraph id="H28D35D4DF4F842C3A9B83F5829102800"><enum>(2)</enum><header>Distribution</header><text>The Secretary of Agriculture shall ensure, to the maximum extent practicable, that the handbook is distributed widely through land-grant colleges and universities and other appropriate institutions.</text> </paragraph></subsection></section>
<section id="H9F1180B6E3C7473BA5F5412B708200FE"><enum>832.</enum><header>Offset measurement for agricultural, forestry, wetlands, and other land use-related sequestration projects</header>
<subsection id="HB6001C0578C64A6FA52B476E6179A69C"><enum>(a)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this title, the Secretary of Agriculture, in consultation with the Administrator, shall promulgate regulations establishing the requirements regarding the issuance, certification, and use of offset credits for greenhouse gas reductions from agricultural, forestry, wetlands, and other land use-related sequestration projects, including requirements—</text>
<paragraph id="H4DE7353DBA0A4F6A8BC489BF91A843EF"><enum>(1)</enum><text>for a region-specific discount factor for business-as-usual practices for specific types of sequestration projects, in accordance with subsection (c);</text> </paragraph>
<paragraph id="HF80B306270B94AF5A2D7A83C19F7A002"><enum>(2)</enum><text>that ensure that the reductions are real, additional, verifiable, and enforceable;</text> </paragraph>
<paragraph id="H35284EE410794A7295415FC2814202AE"><enum>(3)</enum><text>that address leakage;</text> </paragraph>
<paragraph id="HEE12275471D24D8981D34CDFCB86207B"><enum>(4)</enum><text>that the reductions are not otherwise required by any law (including a regulation) or other legally binding requirement;</text> </paragraph>
<paragraph id="HC93BC0013A83462EAD9D48B028FB3403"><enum>(5)</enum><text>for the quantification, monitoring, reporting, and verification of the reductions;</text> </paragraph>
<paragraph id="H2E0ABB24E82E4B0B9EFC7EFEB1369519"><enum>(6)</enum><text>that ensure that offset credits are limited in duration to the period of sequestration of greenhouse gases, and rectify any loss of sequestration other than a loss caused by an error in calculation identified under this subtitle, by requiring the submission of additional credits of an equivalent quantity to the lost sequestration; and</text> </paragraph>
<paragraph id="HEFC6F906478A495A9E1727D296D0FDF4"><enum>(7)</enum><text>that quantify sequestration flow.</text> </paragraph></subsection>
<subsection id="H7557666097314FF98ED500195BE78C51"><enum>(b)</enum><header>Eligibility To Create Offset Credits</header><text>A sequestration project that commences operation on or after January 1, 2010, is eligible to create offset credits under this subtitle if the sequestration project satisfies the other applicable requirements of this subtitle.</text> </subsection>
<subsection id="H830D27D2E3DC413CB12F0066BFF59D24"><enum>(c)</enum><header>Discounting for Business-as-Usual Practices</header>
<paragraph id="H4E6A9D973FE5457AA657007EE0517B71"><enum>(1)</enum><header>In general</header><text>In order to streamline the availability of offset credits for agricultural and other land use-related sequestration projects, the regulations promulgated under subsection (a) shall provide for the calculation and reporting of region-specific discount factors by the Secretary of Agriculture—</text>
<subparagraph id="HBE3BB3B7C644480D8541B6D2241CBBB3"><enum>(A)</enum><text>to be used by developers of agricultural projects and other land use-related sequestration projects; and</text> </subparagraph>
<subparagraph id="HC01A83923BBE42E89539E0D83DA00527"><enum>(B)</enum><text>to account for business-as-usual practices for specific types of sequestration projects.</text> </subparagraph></paragraph>
<paragraph id="HADD21656B027442EAA6701007BD357BB"><enum>(2)</enum><header>Calculation</header><text>Unless otherwise provided in this subtitle, the region-specific discount factor for business-as-usual practices for sequestration projects shall be calculated by dividing—</text>
<subparagraph id="H3F253AA0E2544EA9A559B447D94A1E"><enum>(A)</enum><text>the difference between—</text>
<clause id="H14B7D68103B84192ACCDDEB5A9A2E731"><enum>(i)</enum><text>the quantity of greenhouse gases sequestered in the region as a result of the offset practice under this subtitle; and</text> </clause>
<clause id="H7012F377AD94415388A0A288FC546D3D"><enum>(ii)</enum><text>the quantity of greenhouse gases sequestered in the region as a result of the projected business-as-usual implementation of the applicable offset practice; by</text> </clause></subparagraph>
<subparagraph id="HF5F090B0E18348349761EED70988B44"><enum>(B)</enum><text>the quantity of greenhouse gases sequestered in the region as a result of the offset practice under this subtitle.</text> </subparagraph></paragraph>
<paragraph id="H7CC6C38C38F74A4F8F07D1C638CF2057"><enum>(3)</enum><header>Requirements</header>
<subparagraph id="H3425E19A26DC4C319BCD82281228B1D0"><enum>(A)</enum><header>In general</header><text>The regulations promulgated under this section shall, to the maximum extent practicable—</text>
<clause id="HB78F8CEC89FE40DAAFBE4CE20057EE00"><enum>(i)</enum><text>define geographic regions with reference to land that has similar agricultural characteristics; and</text> </clause>
<clause id="H3FDC24ADB0C24DF9B628CEB8EF2B72A5"><enum>(ii)</enum><text>subject to subparagraph (B), define baseline historical reference periods for each category of sequestration practice, using the most recent period of sufficient length for which there are reasonably comprehensive data available.</text> </clause></subparagraph>
<subparagraph id="HB25304E8B40040D9B139B95E2CB221BE"><enum>(B)</enum><header>Exception</header><text>If the Secretary of Agriculture determines that entities have increased implementation of the relevant offset practice during the most recent period in anticipation of legislation granting credit for the offsets, the regulations described in subparagraph (A)(ii) may define baseline historical reference periods for each category of sequestration practice using an earlier period.</text> </subparagraph></paragraph></subsection>
<subsection id="H113BA5ABA7D746E6969F650181CE8B3B"><enum>(d)</enum><header>Quantifying sequestration flow</header><text>The regulations that quantify sequestration flow shall include—</text>
<paragraph id="H975E65EE5D9848AABD234297B6079F78"><enum>(1)</enum><text>a default rate of sequestration flow, regionally specific to the maximum extent practicable, for each offset practice or combination of offset practices, that is estimated conservatively to allow for site-specific variations and data uncertainties;</text> </paragraph>
<paragraph id="H1F11A06A71CF4FDABB6102A447FE7479"><enum>(2)</enum><text>a downward adjustment factor for any offset practice or combination of practices for which, in the judgment of the Secretary of Agriculture, there are substantial uncertainties in the sequestration flows estimated in paragraph (1), but still reasonably sufficient data to calculate a default rate of flow; and</text> </paragraph>
<paragraph id="HE984312564C447BCB88C24CE796003D"><enum>(3)</enum><header>Offset practice</header><text>or project-specific measurement, monitoring, and verification requirements for—</text>
<subparagraph id="H2E2E519D14684640A5DD674CC1C638D"><enum>(A)</enum><text>offset practices or projects for which there are insufficiently reliable data to calculate a default rate of sequestration flow; or</text> </subparagraph>
<subparagraph id="H99DE5E56295B4C06A20379D3114588A1"><enum>(B)</enum><text>projects for which the project proponent chooses to use project-specific requirements.</text> </subparagraph></paragraph></subsection>
<subsection id="H9DB7D9684700499FB9F105F7E89EC395"><enum>(e)</enum><header>Use of Native Plant Species in Offset Projects</header><text>Not later than 18 months after the date of enactment of this title, the Administrator, in consultation with the Secretary of Agriculture, shall promulgate regulations for selection, use, and storage of native and nonnative plant materials in the offset projects described in paragraph (2)—</text>
<paragraph id="HEE11A55D72954795882258B80188AACB"><enum>(1)</enum><text>to ensure native plant materials are given primary consideration, in accordance with applicable Department of Agriculture guidance for use of native plant materials;</text> </paragraph>
<paragraph id="HFBFA301B532049E2859EF105F09ED641"><enum>(2)</enum><text>to prohibit the use of Federal or State-designated noxious weeds; and</text> </paragraph>
<paragraph id="HDDF9B29BB96744CE99D5CFC104E12CAC"><enum>(3)</enum><text>to prohibit the use of a species listed by a regional or State invasive plant council within the applicable region or State.</text> </paragraph></subsection></section>
<section id="HFB983F92918F490481E6DB37B1F914FE"><enum>833.</enum><header>Offset credits from greenhouse gas emissions reduction projects</header>
<subsection id="HB7E9D26E43E34469A1D4B2855BB4AFED"><enum>(a)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations establishing the requirements regarding the issuance, certification, and use of offset credits for greenhouse gas emissions reduction offset projects, including requirements—</text>
<paragraph id="H77CB87D6ACA84F2A0041BC03300744B5"><enum>(1)</enum><text>for performance standards for specific types of offset projects, which represent significant improvements compared to recent practices in the geographic area, to be reviewed, and updated if the Administrator determines updating is appropriate, every 5 years;</text> </paragraph>
<paragraph id="HE755523CC34A4FC2AB6488DC9700ED71"><enum>(2)</enum><text>that ensure that the reductions are real, additional, verifiable, enforceable, and permanent;</text> </paragraph>
<paragraph id="H1105B793A55B4D7B93BA688BC1C54BFF"><enum>(3)</enum><text>that address leakage;</text> </paragraph>
<paragraph id="HBEE454AE063441E786D6CB06B3DA16D9"><enum>(4)</enum><text>that the reductions are not otherwise required by any law (including a regulation) or other legally binding requirement;</text> </paragraph>
<paragraph id="H01AC5451410D4F49B855FD423DAB68E"><enum>(5)</enum><text>for the quantification, monitoring, reporting, and verification of the reductions; and</text> </paragraph>
<paragraph id="HBEBE8142D7434898B11682E6F1EEEEBF"><enum>(6)</enum><text>that specify the duration of offset credits for greenhouse gas emissions reduction projects under this section.</text> </paragraph></subsection>
<subsection id="HD1CA2CC5C2D84F64B41070708DD394D1"><enum>(b)</enum><header>Eligibility To create offset credits</header><text>Greenhouse gas emissions reduction offset projects that commence operation on or after January 1, 2007, are eligible to create offset credits under this subtitle if the projects satisfy the other applicable requirements of this subtitle.</text> </subsection>
<subsection id="HD2809DDA7FA2441890F0360396AA3EFD"><enum>(c)</enum><header>Creation of additional categories of greenhouse gas emissions reduction offset projects</header><text>The Administrator may, by regulation, create additional categories of greenhouse gas emissions reduction offset projects for types of projects for which the Administrator determines that compliance with the regulations promulgated under subsection (a) is feasible.</text> </subsection>
<subsection id="HD109264432654E6A83AAB491D201DD85"><enum>(d)</enum><header>Prohibition on use</header><text>Notwithstanding the eligibility of greenhouse gas emission reduction projects to create offset credits in accordance with subsection (d), greenhouse gas emissions reduction offset projects shall not be eligible to create offset credits for use under this section beginning on the date on which the reductions are required by law (including regulations) or other legally binding requirement.</text> </subsection></section>
<section id="H79C4DDAD4FC14B679B8D008376B62B5E"><enum>834.</enum><header>Borrowing at program start-up based on contracts to purchase offset credits</header>
<subsection id="H51AD109EE12C4C518D4187C88CE600E8"><enum>(a)</enum><header>In general</header><text>During calendar years 2011, 2012, and 2013, a covered entity may satisfy not more than 5 percent of the allowance submission requirements of section 822 by submitting to the Administrator contractual commitments to purchase offset credits that will implement an equivalent quantity of emission reductions or sequestration not later than December 31, 2015.</text> </subsection>
<subsection id="HF2DE7A43B25D492C813D1CB8A148827E"><enum>(b)</enum><header>Approval of qualifying offset projects</header><text>Offset projects that may be appropriately carried out under this section shall be approved by the Administrator in accordance with this subtitle.</text> </subsection>
<subsection id="HBEA17FFC71C24B168322E976BE3E1FC"><enum>(c)</enum><header>Repayment by 2015</header>
<paragraph id="HBA4E280130F24F539B529BB9CFF83F38"><enum>(1)</enum><header>In general</header><text>If a covered entity uses subsection (a) to comply with section 822, not later than the deadline in that section for allowance submissions for calendar year 2015, the covered entity shall submit additional credits of a quantity equivalent to the sum obtained by adding—</text>
<subparagraph id="HD7DE3C5CC8164A46AA27A6B56594B874"><enum>(A)</enum><text>the value of credits submitted to comply with credit submission requirements described in subsection (a); and</text> </subparagraph>
<subparagraph id="H9C7FB5D0B6AB48BD8653212D00EEEE3"><enum>(B)</enum><text>interest calculated in accordance with paragraph (2).</text> </subparagraph></paragraph>
<paragraph id="HF4585D38E05A4DF08BECDF4C7B6213BA"><enum>(2)</enum><header>Interest</header><text>Interest referred to in paragraph (1)(B) shall be equal to the product obtained by multiplying—</text>
<subparagraph id="HEC87386CA7EC4589ADA1007EE55BB47E"><enum>(A)</enum><text>the number of years between—</text>
<clause id="H71C3FBD8F31A4D078609F587137A3D2"><enum>(i)</enum><text>the use by a covered entity of the method of compliance described in subsection (a); and</text> </clause>
<clause id="HFE4D647D409249D9A978EF6E438C7EA6"><enum>(ii)</enum><text>the submission by the covered entity of additional credits under this subsection; and</text> </clause></subparagraph>
<subparagraph id="H6D238C0DCF4D40B09096F1386D321135"><enum>(B)</enum><text>the sum obtained by adding—</text>
<clause id="H125FBC99251A4D59B25F83667FE948C7"><enum>(i)</enum><text>the Federal short-term rate, as defined pursuant to <external-xref legal-doc="usc" parsable-cite="usc/26/1274">section 1274(d)(1)(C)(i)</external-xref> of the Internal Revenue Code of 1986; and</text> </clause>
<clause id="H0286E7B0CE0047EA9B542FBBA555CC01"><enum>(ii)</enum><text>2 percent.</text> </clause></subparagraph></paragraph></subsection></section>
<section id="HC769E014BFD34951BB6749B335D442AE"><enum>835.</enum><header>Review and correction of accounting for offset credits</header>
<subsection id="H60435A1FD4AF4C0DBE2D46755ED93488"><enum>(a)</enum><header>Duty to monitor</header><text>The Secretary of Agriculture and the Administrator shall monitor regularly whether offset credits under the respective jurisdiction of each agency head under this subtitle are being awarded only for real and additional sequestration of greenhouse gases and reductions in greenhouse gas emissions, including—</text>
<paragraph id="H9770BDCFF99443E3817CCAA62F89F9F1"><enum>(1)</enum><text>the accuracy of default calculations of sequestration flow and greenhouse gas emission reductions achieved by the use of offset practices;</text> </paragraph>
<paragraph id="H75AA31B36C514721B91414D33C5990C6"><enum>(2)</enum><text>the calculation of region-specific discount factors; and</text> </paragraph>
<paragraph id="HB7AC382826844EBB84F6D9B9F711EE5D"><enum>(3)</enum><text>the accuracy of leakage calculations.</text> </paragraph></subsection>
<subsection id="H58D0EA81BDCA442A8DBB875161901546"><enum>(b)</enum><header>Periodic review</header><text>Not later than December 31, 2013, and every 5 years thereafter, the Secretary of Agriculture and the Administrator shall review the issuance of offset credits under the respective jurisdiction of each agency head under this subtitle to determine—</text>
<paragraph id="HA25454C4B0E9406C91EA8F68ABF49600"><enum>(1)</enum><text>whether offset credits are being awarded only for real and additional sequestration of greenhouse gases or reductions in greenhouse gas emissions, as described in subsection (a);</text> </paragraph>
<paragraph id="HD914D45DDFE2437BB2E6904695022073"><enum>(2)</enum><text>the amount of excessive award of any offset credits;</text> </paragraph>
<paragraph id="H071E204B828F43878CF789D7E82D1DB9"><enum>(3)</enum><text>the volume of offset credits that have been or are expected to be approved;</text> </paragraph>
<paragraph id="H63FCD5D1385045C29B5633ACA954A902"><enum>(4)</enum><text>the impact of the offset credits on market prices; and</text> </paragraph>
<paragraph id="H32EEBA297994479E928738D400EB4015"><enum>(5)</enum><text>the impact of the offset credits on the trajectory of emissions from covered entities.</text> </paragraph></subsection>
<subsection id="HD1E2A5CF32D342F68FE7F6BBEA15E7F"><enum>(c)</enum><header>Duty To correct</header><text>If the Secretary of Agriculture or the Administrator determines that offset credits under the respective jurisdictions of the agency head have been awarded under this subtitle in excess of real and additional sequestration of greenhouse gases or reductions in emissions of greenhouse gases, the Secretary of Agriculture or the Administrator shall—</text>
<paragraph id="H337343E9A4F942DEB4748CDE5E87D8F"><enum>(1)</enum><text>promptly correct on a prospective basis the sources of the errors, including correcting leakage factors, region-specific discount factors, default rates of sequestration flow, and other relevant information for the offset practices involved; and</text> </paragraph>
<paragraph id="H6AE5F10A317A4FB48E8D88D67F898599"><enum>(2)</enum><text>quantify and publicly disclose the quantity of offset credits that have been awarded in excess of real and additional sequestration or emissions reductions.</text> </paragraph></subsection></section></subtitle>
<subtitle id="H6CA0B08AF3CA4A98002FABB3CB8D054E"><enum>C</enum><header>National Registry for Credits</header>
<section id="HCCCE6DAC51804B00ACABB749E7719810"><enum>841.</enum><header>Establishment and operation of national registry</header>
<subsection id="HD8B787717A2A4C9EBD74352BE0149C54"><enum>(a)</enum><header>In general</header><text>Except as provided in subsection (b), not later than July 1 of the year immediately prior to the first calendar year in which an annual tonnage limitation on the emission of greenhouse gases applies under section 811(b), the Administrator shall promulgate regulations to establish, operate, and maintain a national registry through which the Administrator shall—</text>
<paragraph id="H4BF3469BCFA54E099B195FBFBAEDC24B"><enum>(1)</enum><text>record allocations of allowances and the issuance of offset credits or early reduction credits;</text> </paragraph>
<paragraph id="HAC03C8C5FA564F05AD9043A29131E4EB"><enum>(2)</enum><text>track transfers of credits;</text> </paragraph>
<paragraph id="H2F52C300438C4053A5917EC9796F178"><enum>(3)</enum><text>retire all credits used for compliance;</text> </paragraph>
<paragraph id="H8F907E0BB46C4F8BBB831216BD2B5D00"><enum>(4)</enum><text>subject to subsection (b), maintain transparent availability of registry information to the public, including the quarterly reports submitted under section 842(a);</text> </paragraph>
<paragraph id="H25C3ECCCE091455D82C5CA2D6E1223BF"><enum>(5)</enum><text>prepare an annual assessment of the emission data in the quarterly reports submitted under section 842(a); and</text> </paragraph>
<paragraph id="H0CA1A20A911A4C3789C8175E804E8DDD"><enum>(6)</enum><text>take such action as is necessary to maintain the integrity of the registry, including adjustments to correct for—</text>
<subparagraph id="HBEB75BB4CC4C4B74B476D1C824BFA02"><enum>(A)</enum><text>errors or omissions in the reporting of data; and</text> </subparagraph>
<subparagraph id="H0924572548344A31B69FF1DA77518468"><enum>(B)</enum><text>the prevention of counterfeiting, double-counting, multiple registrations, multiple sales, and multiple retirements of credits.</text> </subparagraph></paragraph></subsection>
<subsection id="H01224EC5C95E49C59704911C0048C7CA"><enum>(b)</enum><header>Exception to Public Availability of Data</header>
<paragraph id="H53687DECCDC0421F94D8B58FA7218B5"><enum>(1)</enum><header>In general</header><text>Subsection (a)(4) shall not apply in any case in which the Administrator, in consultation with the Secretary of Defense, determines that publishing or otherwise making available information in accordance with that paragraph poses a risk to national security.</text> </paragraph>
<paragraph id="H98EDAFFC890C4FE1ADFD141EDE84B859"><enum>(2)</enum><header>Statement of reasons</header><text>In a case described in paragraph (1), the Administrator shall publish a description of the determination and the reasons for the determination.</text> </paragraph></subsection></section>
<section id="H06E92705648B44CB90C40273B3022E5"><enum>842.</enum><header>Monitoring and reporting</header>
<subsection id="H3EB57AB82E3B4EFFB614644B8EF6F396"><enum>(a)</enum><header>Requirements</header><text>Each owner or operator of a covered entity, or to the extent applicable, the greenhouse gas authorized account representative for the covered entity, shall—</text>
<paragraph id="H8940A12684E54AE58C47001193E90081"><enum>(1)</enum><text>comply with the monitoring, recordkeeping, and reporting requirements of part 75 of title 40, Code of Federal Regulations (or successor regulations); and</text> </paragraph>
<paragraph id="H9225A1C25F734A79BAE6033BF903858E"><enum>(2)</enum><text>submit to the Administrator electronic quarterly reports that describe the greenhouse gas mass emission data, fuel input data, and electricity output data for the covered entity.</text> </paragraph></subsection>
<subsection id="HD721841C68EA472CADDF888E7B43ACBD"><enum>(b)</enum><header>Biomass cofiring</header><text>Not later than 18 months after the date of enactment of this title, the Administrator shall promulgate regulations that provide monitoring, recordkeeping, and reporting requirements for biomass cofiring at covered entities.</text> </subsection></section></subtitle>.
(b)
(1)Section 113 of the Clean Air Act (42 U.S.C. 7413) is amended—
(A)in subsection (a)(3), by striking or title VI, and inserting title VI, or title VII,
;
(B)in subsection (b)—
(i)by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting the subparagraphs appropriately;
(ii)by striking The Administrator shall
and inserting the following:
(1)The Administrator shall ;
(iii)in paragraph (1) (as designated by clause (ii)), in the matter preceding subparagraph (A) (as redesignated by clause (i)), by striking or a major stationary source
and inserting a major stationary source, or a covered entity under title VII
; and
(iv)in subparagraph (B) (as redesignated by clause (i)), by striking or title VI
and inserting title VI, or title VII
;
(v)in the matter following subparagraph (C) of paragraph (1) (as designated by clauses (i) and (ii))—
(I)by striking Any action
and inserting the following:
(2)
(A)Any action ;
(II)by striking Notice
and inserting the following:
(B)Notice ; and
(III)by striking In the case
and inserting the following:
(C)Actions brought by administratorIn the case ;
(C)in subsection (c)—
(i)in the first sentence of paragraph (1), by striking or title VI (relating to stratospheric ozone control),
and inserting title VI (relating to stratospheric ozone control), or title VII (relating to global warming pollution emission reductions),
; and
(ii)in the first sentence of paragraph (3), by striking or VI
and inserting VI, or VII
;
(D)in subsection (d)(1)(B), by striking or VI
and inserting VI, or VII
; and
(E)in subsection (f), in the first sentence, by striking or VI
and inserting VI, or VII
.
(2)Inspections, monitoring, and entrySection 114(a) of the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking section 112,
and all that follows through (ii)
and inserting the following: section 112, any regulation of solid waste combustion under section 129, or any regulation of greenhouse gas emissions under title VII, (ii)
.
(3)Administrative proceedings and judicial reviewSection 307 of the Clean Air Act (42 U.S.C. 7607) is amended—
(A)in subsection (a), by striking , or section 306
and inserting section 306, or title VII
;
(B)in subsection (b)(1)—
(i)by striking section 111,,
and inserting section 111,
;
(ii)by striking section 120,
each place it appears and inserting section 120, any action under title VII,
; and
(iii)by striking 112,,
and inserting 112,
; and
(C)in subsection (d)(1)—
(i)by striking subparagraph (S);
(ii)by redesignating the second subparagraph (N) and subparagraphs (O) through (R) as subparagraphs (O), (P), (Q), (R), and (S), respectively;
(iii)by redesignating subparagraphs (T) and (U) as subparagraphs (U) and (V), respectively; and
(iv)by inserting after subparagraph (S) (as redesignated by clause (ii)) the following:
(T)the promulgation or revision of any regulation under title VII, .
(4)Unavailability of emissions dataSection 412(d) of the Clean Air Act (42 U.S.C. 7651k(d)) is amended in the first sentence—
(A)by inserting or title VII
after under subsection (a)
; and
(B)by inserting or title VII
after this title
.
BClimate change research initiatives
711.Research grants through National Science FoundationSection 105 of the Global Change Research Act of 1990 (15 U.S.C. 2935) is amended—
(1)by redesignating subsection (c) as subsection (d); and
(2)by inserting after subsection (b) the following:
(c)
(1)List of priority research areasThe Committee shall develop a list of priority areas for research and development on climate change that are not being adequately addressed by Federal agencies.
(2)The Director of the Office of Science and Technology Policy shall submit the list developed under paragraph (1) to the National Science Foundation.
(3)Authorization of appropriationsThere are authorized to be appropriated to the National Science Foundation such sums as are necessary to carry out this subsection, to be made available through the Science and Technology Policy Institute, for research in the priority areas. .
712.Abrupt climate change research
(a)The Secretary of Commerce, acting through the National Oceanic and Atmospheric Administration, shall carry out a program of scientific research on abrupt climate change designed to provide timely warnings of the potential likelihood, magnitude, and consequences of, and measures to avoid, abrupt human-induced climate change.
(b)Authorization of appropriationsThere are authorized to be appropriated to the Secretary of Commerce such sums as are necessary to carry out this section.
713.Development of new measurement technologies
(a)The Administrator of the Environmental Protection Agency shall carry out a program to develop, with technical assistance from appropriate Federal agencies, innovative standards and measurement technologies to calculate greenhouse gas emissions or reductions for which no accurate, reliable, low-cost measurement technology exists.
(b)The program shall include technologies (including remote sensing technologies) to measure carbon changes and other greenhouse gas emissions and reductions from agriculture, forestry, wetlands, and other land use practices.
(c)Authorization of appropriationsThere are authorized to be appropriated to the Administrator such sums as are necessary to carry out this section.
714.Technology development and diffusion
(a)The Director of the National Institute of Standards and Technology, acting through the Manufacturing Extension Partnership program, may develop a program to promote the use, by small manufacturers, of technologies and techniques that result in reduced emissions of greenhouse gases or increased sequestration of greenhouse gases.
(b)Authorization of appropriationsThere are authorized to be appropriated to the Director of the National Institute of Standards and Technology such sums as are necessary to carry out this section.
715.
(a)Not later than 3 years after the date of enactment of this Act, the Secretary of Agriculture and the Secretary of the Interior shall prepare a joint assessment or separate assessments setting forth recommendations for increased sequestration of greenhouse gases and reduction of greenhouse gas emissions on public land that is—
(1)managed forestland;
(2)managed rangeland or grassland; or
(3)protected land, including national parks and designated wilderness areas.
(b)Authorization of appropriationsThere are authorized to be appropriated to the Secretary of Agriculture and the Secretary of the Interior such sums as are necessary to carry out this section.
716.Sea level rise from polar ice sheet melting
(a)The Secretary of Commerce, acting through the National Oceanic and Atmospheric Administration and in cooperation with the Administrator of the National Aeronautics and Space Administration, shall carry out a program of scientific research to support modeling and observations into the potential role of the Greenland, west Antarctic, and east Antarctic ice sheets in any future increase in sea levels.
(b)Authorization of appropriationsThere are authorized to be appropriated to the Secretary of Commerce and the Administrator of the National Aeronautics and Space Administration such sums as are necessary to carry out this section.
<enum>VIII</enum><header>Offsets</header>
<subtitle id="H8B0101E823A146D5B23DA8211021633D"><enum>A</enum><header>Denial of oil and gas tax benefits</header>
<section id="HEBAE3511190D4087A4A2C004433DE069"><enum>801.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>Ending Subsidies for Big Oil Act of 2007</short-title></quote>.</text> </section>
<section display-inline="no-display-inline" id="H668AEAA1E674424FA5F861B4D0477F59"><enum>802.</enum><header>Denial of deduction for income attributable to domestic production of oil, natural gas, or primary products thereof</header>
<subsection id="H000A4E639D914567B32F187D2CC49800"><enum>(a)</enum><header>In general</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/199">section 199(c)(4)</external-xref> of the Internal Revenue Code of 1986 (relating to exceptions) is amended by striking <quote>or</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, or</quote>, and by inserting after clause (iii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HCD754B012D0C4B17A5151EA0D2C71401" style="OLC">
<clause id="H2FC92951851B40C8BDB4E7FAF29DF1D1"><enum>(iv)</enum><text>the sale, exchange, or other disposition of oil, natural gas, or any primary product thereof.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H59824503F4754954A017B9E3D8EEADFF"><enum>(b)</enum><header>Primary product</header><text>Section 199(c)(4)(B) of such Code is amended by adding at the end the following flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="HA96710AE04864C5F95183FB000C351EB" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">For purposes of clause (iv), the term <term>primary product</term> has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HF31988854C924070BD6680DB50D53051"><enum>(c)</enum><header>Conforming amendments</header><text>Section 199(c)(4) of such Code is amended—</text>
<paragraph id="H7D3BB374CDB0412EAAC578C5457B75E8"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)(i)(III) by striking <quote>electricity, natural gas,</quote> and inserting <quote>electricity</quote>, and</text> </paragraph>
<paragraph id="H38B1BC9B07834275B7DD80ABD14FB1C3"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B)(ii) by striking <quote>electricity, natural gas,</quote> and inserting <quote>electricity</quote>.</text> </paragraph></subsection>
<subsection id="H818D6276EE5441B68534EE531E51B2AA"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2007.</text> </subsection></section>
<section id="H2470AAC670BD42218C0800E29D6837E2"><enum>803.</enum><header>7-year amortization of geological and geophysical expenditures for certain major integrated oil companies</header>
<subsection id="H65EA4CF804964296BE9DEE2238E9C217"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/167">section 167(h)(5)</external-xref> of the Internal Revenue Code of 1986 (relating to special rule for major integrated oil companies) is amended by striking <quote>5-year</quote> and inserting <quote>7-year</quote>.</text> </subsection>
<subsection id="HAE3270A7AE7F4F69A31FA7E86ECDB6CF"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.</text> </subsection></section></subtitle>
<subtitle id="HC4AD1E382C6A4B31BDD92845FCC1BFDE"><enum>B</enum><header>Royalties under offshore oil and gas leases</header>
<section display-inline="no-display-inline" id="H7D07F12BA85D48FA8C3BAAB0BD2D75A1" section-type="subsequent-section"><enum>811.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Royalty Relief for American Consumers Act of 2007</short-title></quote>.</text> </section>
<section display-inline="no-display-inline" id="H5E5378EF3FE641359237F73C9CBC3F2"><enum>812.</enum><header>Price thresholds for royalty suspension provisions</header><text display-inline="no-display-inline">The Secretary of the Interior shall agree to a request by any lessee to amend any lease issued for any Central and Western Gulf of Mexico tract during the period of January 1, 1998, through December 31, 1999, to incorporate price thresholds applicable to royalty suspension provisions, that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(C)</external-xref>). Any amended lease shall impose the new or revised price thresholds effective October 1, 2006. Existing lease provisions shall prevail through September 30, 2006.</text> </section>
<section id="HBACCDAECC7604F778F2492E24F2D00"><enum>813.</enum><header>Clarification of authority to impose price thresholds for certain lease sales</header><text display-inline="no-display-inline">Congress reaffirms the authority of the Secretary of the Interior under section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(1)(H)</external-xref>) to vary, based on the price of production from a lease, the suspension of royalties under any lease subject to section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act (<external-xref legal-doc="public-law" parsable-cite="pl/104/58">Public Law 104–58</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337</external-xref> note).</text> </section>
<section display-inline="no-display-inline" id="H47F5F8E8CBD54AD481001F1C8801BEE4" section-type="subsequent-section"><enum>814.</enum><header>Eligibility for new leases and the transfer of leases; conservation of resources fees</header>
<subsection id="HA2893DA12A8E49F49F95A79935544E1F"><enum>(a)</enum><header>Issuance of new leases</header>
<paragraph id="HDBC8B3C4A0CB45AB9471D48934DA009C"><enum>(1)</enum><header>In general</header><text>The Secretary shall not issue any new lease that authorizes the production of oil or natural gas in the Gulf of Mexico under the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>) to a person described in paragraph (2) unless—</text>
<subparagraph id="HBBE071AEC78746C2875EA2DEE81DBE00"><enum>(A)</enum><text>the person has renegotiated each covered lease with respect to which the person is a lessee, to modify the payment responsibilities of the person to include price thresholds that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(C)</external-xref>); or</text> </subparagraph>
<subparagraph id="H1E7E0595D15C4E88A3AA662C6151D0B2"><enum>(B)</enum><text>the person has—</text>
<clause id="HE5E3AF57DCE34ABE809EAB1382C179FD"><enum>(i)</enum><text>paid all fees established by the Secretary under subsection (b) that are due with respect to each covered lease for which the person is a lessee; or</text> </clause>
<clause id="HD0AB75802BF94CC488308676C543FAA7"><enum>(ii)</enum><text>entered into an agreement with the Secretary under which the person is obligated to pay such fees.</text> </clause></subparagraph></paragraph>
<paragraph id="H0B5AA47944224B03B085D0569B171184"><enum>(2)</enum><header>Persons described</header><text>A person referred to in paragraph (1) is a person that—</text>
<subparagraph id="H633887C248234195AACED4FA05AE00D6"><enum>(A)</enum><text>is a lessee that—</text>
<clause id="H4B46F552AF024B64B98352867514B53F"><enum>(i)</enum><text>holds a covered lease on the date on which the Secretary considers the issuance of the new lease; or</text> </clause>
<clause id="HD03C7D717113443EA22983C1E1751914"><enum>(ii)</enum><text>was issued a covered lease before the date of enactment of this Act, but transferred the covered lease to another person or entity (including a subsidiary or affiliate of the lessee) after the date of enactment of this Act; or</text> </clause></subparagraph>
<subparagraph id="HB2BD3D13A6E440DD863D7E598EAC76FA"><enum>(B)</enum><text>any other person or entity who has any direct or indirect interest in, or who derives any benefit from, a covered lease;</text> </subparagraph></paragraph>
<paragraph id="H027A1391DCC7424995086ECE8959B9C1"><enum>(3)</enum><header>Multiple lessees</header>
<subparagraph id="H8E8D5F528AED42FAA757DD963FED5EC6"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (1), if there are multiple lessees that own a share of a covered lease, the Secretary may implement separate agreements with any lessee with a share of the covered lease that modifies the payment responsibilities with respect to the share of the lessee to include price thresholds that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(C)</external-xref>).</text> </subparagraph>
<subparagraph id="H10437BEF46AC48ECA7CC72B99C647BDA"><enum>(B)</enum><header>Treatment of share as covered lease</header><text>Beginning on the effective date of an agreement under subparagraph (A), any share subject to the agreement shall not constitute a covered lease with respect to any lessees that entered into the agreement.</text> </subparagraph></paragraph></subsection>
<subsection display-inline="no-display-inline" id="HE6CF2A9940E64BA0007E888285276FEF"><enum>(b)</enum><header>Conservation of resources fees</header>
<paragraph id="HBC3F27DE37DD45F200711EB092D6479"><enum>(1)</enum><header>In general</header><text>Not later than 60 days after the date of enactment of this Act, the Secretary of the Interior by regulation shall establish—</text>
<subparagraph id="H88B61260FFF64A4487F2C007DF73F019"><enum>(A)</enum><text>a conservation of resources fee for producing Federal oil and gas leases in the Gulf of Mexico; and</text> </subparagraph>
<subparagraph id="H8D134F369D89463985CD52D7352EAD06"><enum>(B)</enum><text>a conservation of resources fee for nonproducing Federal oil and gas leases in the Gulf of Mexico.</text> </subparagraph></paragraph>
<paragraph id="HD98D2A20C71340459CDC9F3D5C44AD7B"><enum>(2)</enum><header>Producing lease fee terms</header><text>The fee under paragraph (1)(A)—</text>
<subparagraph id="H50BF26291B7142969B933EF533A4A96E"><enum>(A)</enum><text>subject to subparagraph (C), shall apply to covered leases that are producing leases;</text> </subparagraph>
<subparagraph id="H857E43AB437747BAA416D1B549F9BF47"><enum>(B)</enum><text display-inline="yes-display-inline">shall be set at $9 per barrel for oil and $1.25 per million Btu for gas, respectively, in 2005 dollars; and</text> </subparagraph>
<subparagraph id="H58A35CD8651A4A8B9EBAEE984CA93BD6"><enum>(C)</enum><text display-inline="yes-display-inline">shall apply only to production of oil or gas occurring—</text>
<clause id="H8339A551371844EA8917CE48FCA7578"><enum>(i)</enum><text>in any calendar year in which the arithmetic average of the daily closing prices for light sweet crude oil on the New York Mercantile Exchange (NYMEX) exceeds $34.73 per barrel for oil and $4.34 per million Btu for gas in 2005 dollars; and</text> </clause>
<clause id="H93A64FBD431441F494FCDC6BB0675699"><enum>(ii)</enum><text>on or after October 1, 2006.</text> </clause></subparagraph></paragraph>
<paragraph id="HB8ADF28C12F845DAAAF0A45F116E00E0"><enum>(3)</enum><header>Nonproducing lease fee terms</header><text>The fee under paragraph (1)(B)—</text>
<subparagraph id="H900129123FEE4752B0EB46F9005CA9F1"><enum>(A)</enum><text display-inline="yes-display-inline">subject to subparagraph (C), shall apply to leases that are nonproducing leases;</text> </subparagraph>
<subparagraph id="H617D260C3673451281E391EEA7A1EA5"><enum>(B)</enum><text>shall be set at $3.75 per acre per year in 2005 dollars; and</text> </subparagraph>
<subparagraph id="HD0D913623BE04E03AC5CEAF629C759D3"><enum>(C)</enum><text>shall apply on and after October 1, 2006.</text> </subparagraph></paragraph>
<paragraph id="H08F04F541B2540578E6425AD8BDBA83B"><enum>(4)</enum><header>Treatment of receipts</header><text>Amounts received by the United States as fees under this subsection shall be treated as offsetting receipts.</text> </paragraph></subsection>
<subsection commented="no" id="H78899E638C944200BFD30726BFC07BBA"><enum>(c)</enum><header>Transfers</header><text>A lessee or any other person who has any direct or indirect interest in, or who derives a benefit from, a lease shall not be eligible to obtain by sale or other transfer (including through a swap, spinoff, servicing, or other agreement) any covered lease, the economic benefit of any covered lease, or any other lease for the production of oil or natural gas in the Gulf of Mexico under the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>), unless—</text>
<paragraph commented="no" id="H0C0456DBCFCD4D88B3EE55D72015BEEE"><enum>(1)</enum><text>the lessee or other person has—</text>
<subparagraph commented="no" id="H92381940C49D46458C77A5125C1C004B"><enum>(A)</enum><text>renegotiated all covered leases of the lessee or other person; and</text> </subparagraph>
<subparagraph commented="no" id="HD69980D624A74B189D3077007F789E7E"><enum>(B)</enum><text>entered into an agreement with the Secretary to modify the terms of all covered leases of the lessee or other person to include limitations on royalty relief based on market prices that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(C)</external-xref>); or</text> </subparagraph></paragraph>
<paragraph commented="no" id="H910176E277484D17B8D7519CC59C4BA"><enum>(2)</enum><text>the lessee or other person has—</text>
<subparagraph id="HAA86827D48E54CD0931ECB4F025DC86E"><enum>(A)</enum><text>paid all fees established by the Secretary under subsection (b) that are due with respect to each covered lease for which the person is a lessee; or</text> </subparagraph>
<subparagraph id="H478A89408D394E88B2D33686DB6FE8F5"><enum>(B)</enum><text>entered into an agreement with the Secretary under which the person is obligated to pay such fees.</text> </subparagraph></paragraph></subsection>
<subsection id="H15B902DD36294B43A100CDD0DC672BCA"><enum>(d)</enum><header>Definitions</header><text>In this section—</text>
<paragraph id="H546B0D360E374652BEEF2FABBF24C3F"><enum>(1)</enum><header>Covered lease</header><text>The term <term>covered lease</term> means a lease for oil or gas production in the Gulf of Mexico that is—</text>
<subparagraph id="H61CD4860BBB94366B742C2F1EDFB03E9"><enum>(A)</enum><text>in existence on the date of enactment of this Act;</text> </subparagraph>
<subparagraph id="H64DBD22545C04A05BDBEFEF805795EE"><enum>(B)</enum><text>issued by the Department of the Interior under section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/104/58">Public Law 104–58</external-xref>); and</text> </subparagraph>
<subparagraph id="H36AD1E6AC1824EB0BCC659F54DBC2248"><enum>(C)</enum><text>not subject to limitations on royalty relief based on market price that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(C)</external-xref>).</text> </subparagraph></paragraph>
<paragraph id="HE5F858B2607A42FB82ABDA84008F0035"><enum>(2)</enum><header>Lessee</header><text>The term <term>lessee</term> includes any person or other entity that controls, is controlled by, or is in or under common control with, a lessee.</text> </paragraph>
<paragraph id="HA9779FED4CE44426944C321400BC2C2C"><enum>(3)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Interior.</text> </paragraph></subsection></section>
<section id="H13A7DC5F128D4EE39169ADE7A2E77D00"><enum>815.</enum><header>Repeal of certain taxpayer subsidized royalty relief for the oil and gas industry</header>
<subsection id="H848718E037B94ECA00A0BBAE6C3F7CC8"><enum>(a)</enum><header>Repeal of provisions of Energy Policy Act of 2005</header><text display-inline="yes-display-inline">The following provisions of the Energy Policy Act of 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/109/58">Public Law 109–58</external-xref>) are repealed:</text>
<paragraph id="H607001C92043447A99E3BD8F3B3CB94D"><enum>(1)</enum><text>Section 344 (<external-xref legal-doc="usc" parsable-cite="usc/42/15904">42 U.S.C. 15904</external-xref>; relating to incentives for natural gas production from deep wells in shallow waters of the Gulf of Mexico).</text> </paragraph>
<paragraph id="H85257BA9081B4A8EB3691E3824F94C3E"><enum>(2)</enum><text>Section 345 (<external-xref legal-doc="usc" parsable-cite="usc/42/15905">42 U.S.C. 15905</external-xref>; relating to royalty relief for deep water production in the Gulf of Mexico).</text> </paragraph>
<paragraph id="H9C0EEEE38EF64C14B2F67D9B0001B833"><enum>(3)</enum><text display-inline="yes-display-inline">Subsection (i) of section 365 (<external-xref legal-doc="usc" parsable-cite="usc/42/15924">42 U.S.C. 15924</external-xref>; relating to the prohibition on drilling-related permit application cost recovery fees).</text> </paragraph></subsection>
<subsection id="H7C71EF6BEEF44CF7B286DE6E0021FE3F"><enum>(b)</enum><header>Provisions relating to Planning Areas offshore Alaska</header><text display-inline="yes-display-inline">Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(B)</external-xref>) is amended by striking <quote>and in the Planning Areas offshore Alaska</quote> after <quote>West longitude</quote>.</text> </subsection>
<subsection id="H28EECB6EB53543B790BD9FEF5434C59"><enum>(c)</enum><header>Provisions relating to Naval Petroleum Reserve in Alaska</header><text display-inline="yes-display-inline">Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as transferred, redesignated, moved, and amended by section 347 of the Energy Policy Act of 2005 (119 Stat. 704)) is amended—</text>
<paragraph id="H81F4DC324633451AA39EF57460B51E67"><enum>(1)</enum><text>in subsection (i) by striking paragraphs (2) through (6); and</text> </paragraph>
<paragraph id="HE62866A336CC4E61BC6881C38D71DE5E"><enum>(2)</enum><text>by striking subsection (k).</text> </paragraph></subsection></section></subtitle>
<subtitle id="H6CA7617E6F554841A1D2DF637FA87531"><enum>C</enum><header>Strategic energy efficiency and renewable reserve</header>
<section id="H398C58DFD7CE40FCA2B2B60009669162"><enum>821.</enum><header>Strategic Energy Efficiency and Renewables Reserve for investments in renewable energy and energy efficiency</header>
<subsection id="HDE8527C1323648B6A1972E55E5BB5D6E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For budgetary purposes, the additional Federal receipts by reason of the enactment of this Act shall be held in a separate account to be known as the <quote>Strategic Energy Efficiency and Renewables Reserve</quote>. The Strategic Energy Efficiency and Renewables Reserve shall be available to offset the cost of subsequent legislation—</text>
<paragraph id="HEBA8AA8CE62D46FA86439ED3BCE86033"><enum>(1)</enum><text display-inline="yes-display-inline">to accelerate the use of clean domestic renewable energy resources and alternative fuels;</text> </paragraph>
<paragraph id="HCF927279F8FB4D4C81524147AAE9E3E"><enum>(2)</enum><text display-inline="yes-display-inline">to promote the utilization of energy-efficient products and practices and conservation; and</text> </paragraph>
<paragraph id="H60CD9CF0D73548F2A085C730181188D4"><enum>(3)</enum><text display-inline="yes-display-inline">to increase research, development, and deployment of clean renewable energy and efficiency technologies.</text> </paragraph></subsection>
<subsection id="H6B056207DCDE4D02AFA788A4F72DEC10"><enum>(b)</enum><header>Procedure for adjustments</header>
<paragraph id="HD7FF0902E7C843649B8EA5FFBAD3EB58"><enum>(1)</enum><header>Budget Committee Chairman</header><text>After the reporting of a bill or joint resolution, or the offering of an amendment thereto or the submission of a conference report thereon, providing funding for the purposes set forth in subsection (a) in excess of the amounts provided for those purposes for fiscal year 2007, the chairman of the Committee on the Budget of the applicable House of Congress shall make the adjustments set forth in paragraph (2) for the amount of new budget authority and outlays in that measure and the outlays flowing from that budget authority.</text> </paragraph>
<paragraph id="H57CF3AB36A3145D7008EE189D2193947"><enum>(2)</enum><header>Matters to be adjusted</header><text>The adjustments referred to in paragraph (1) are to be made to—</text>
<subparagraph id="HA9CA5D390C3749F8A625C4D4B37CC5DC"><enum>(A)</enum><text>the discretionary spending limits, if any, set forth in the appropriate concurrent resolution on the budget;</text> </subparagraph>
<subparagraph id="HCEBF2C1D1236435284A8BE897E678FA"><enum>(B)</enum><text>the allocations made pursuant to the appropriate concurrent resolution on the budget pursuant to section 302(a) of the Congressional Budget Act of 1974; and</text> </subparagraph>
<subparagraph id="HE2B97015AE2D46A59DB2F691E544FBD7"><enum>(C)</enum><text>the budget aggregates contained in the appropriate concurrent resolution on the budget as required by section 301(a) of the Congressional Budget Act of 1974.</text> </subparagraph></paragraph>
<paragraph id="H4831AE179D724F77A16785BCAA7E3113"><enum>(3)</enum><header>Amounts of adjustments</header><text>The adjustments referred to in paragraphs (1) and (2) shall not exceed the receipts estimated by the Congressional Budget Office that are attributable to this Act for the fiscal year in which the adjustments are made.</text> </paragraph></subsection></section></subtitle>