[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3220 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3220

    Moving the United States toward greater energy independence and 
   security, developing innovative new technologies, reducing carbon 
emissions, creating green jobs, protecting consumers, increasing clean 
renewable energy production, and modernizing our energy infrastructure.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2007

   Ms. Pelosi (for herself, Mr. Hoyer, Mr. Clyburn, Mr. Emanuel, Mr. 
 Larson of Connecticut, Ms. DeLauro, Mr. Van Hollen, Mr. Becerra, Mr. 
 Dingell, Mr. Rangel, Mr. George Miller of California, Mr. Waxman, Mr. 
Oberstar, Mr. Rahall, Mr. Lantos, Mr. Gordon of Tennessee, Mr. Peterson 
 of Minnesota, Ms. Velazquez, and Mr. Markey) introduced the following 
 bill; which was referred to the Committee on Energy and Commerce, and 
in addition to the Committees on Education and Labor, Foreign Affairs, 
  Small Business, Science and Technology, Agriculture, Oversight and 
       Government Reform, Natural Resources, Transportation and 
Infrastructure, Armed Services, and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
    Moving the United States toward greater energy independence and 
   security, developing innovative new technologies, reducing carbon 
emissions, creating green jobs, protecting consumers, increasing clean 
renewable energy production, and modernizing our energy infrastructure.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``New Direction for 
Energy Independence, National Security, and Consumer Protection Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                          TITLE I--GREEN JOBS

Sec. 1001. Short title.
Sec. 1002. Energy efficiency and renewable energy worker training 
                            program.
 TITLE II--INTERNATIONAL CLIMATE COOPERATION RE-ENGAGEMENT ACT OF 2007

Sec. 2001. Short title.
Sec. 2002. Definitions.
       Subtitle A--United States Policy on Global Climate Change

Sec. 2101. Congressional findings.
Sec. 2102. Congressional statement of policy.
Sec. 2103. Office on Global Climate Change.
     Subtitle B--Assistance to Promote Clean and Efficient Energy 
                   Technologies in Foreign Countries

Sec. 2201. Congressional findings.
Sec. 2202. United States assistance for developing countries.
Sec. 2203. United States exports and outreach programs for India, 
                            China, and other countries.
Sec. 2204. United States trade missions to encourage private sector 
                            trade and investment.
Sec. 2205. Actions by Overseas Private Investment Corporation.
Sec. 2206. Actions by United States Trade and Development Agency.
Sec. 2207. Global Climate Change Exchange program.
Sec. 2208. Interagency Working Group to support a Clean Energy 
                            Technology Exports Initiative.
           Subtitle C--International Clean Energy Foundation

Sec. 2301. Definitions.
Sec. 2302. Establishment and management of Foundation.
Sec. 2303. Duties of Foundation.
Sec. 2304. Annual report.
Sec. 2305. Powers of the Foundation; related provisions.
Sec. 2306. General personnel authorities.
Sec. 2307. Authorization of appropriations.
              TITLE III--SMALL ENERGY EFFICIENT BUSINESSES

Sec. 3001. Short title.
Sec. 3002. Findings.
Sec. 3003. Larger 504 loan limits to help business develop energy 
                            efficient technologies and purchases.
Sec. 3004. Reduced 7(a) fees and higher loan guarantees for purchase of 
                            energy efficient technologies.
Sec. 3005. Small Business Sustainability Initiative.
Sec. 3006. Small Business Administration to educate and promote energy 
                            efficiency ideas to small businesses and 
                            work with the small business community to 
                            make such information widely available.
Sec. 3007. Energy saving debentures.
Sec. 3008. Investments in energy saving small businesses.
Sec. 3009. Renewable fuel capital investment company.
Sec. 3010. Study and report.
                    TITLE IV--SCIENCE AND TECHNOLOGY

          Subtitle A--Advanced Research Projects Agency-Energy

Sec. 4001. Advanced Research Projects Agency-Energy.
Sec. 4002. Fund.
Sec. 4003. Advice.
Sec. 4004. ARPA-E evaluation.
Sec. 4005. Savings clause.
            Subtitle B--Marine Renewable Energy Technologies

Sec. 4101. Short title.
Sec. 4102. Findings.
Sec. 4103. Definitions.
Sec. 4104. Marine renewable energy research and development.
Sec. 4105. National Marine Renewable Energy Research, Development, and 
                            Demonstration Centers.
Sec. 4106. Applicability of other laws.
Sec. 4107. Authorization of appropriations.
                     Subtitle C--Geothermal Energy

Sec. 4201. Short title.
Sec. 4202. Findings.
Sec. 4203. Definitions.
Sec. 4204. Hydrothermal research and development.
Sec. 4205. General geothermal systems research and development.
Sec. 4206. Enhanced geothermal systems research and development.
Sec. 4207. Geothermal energy production from oil and gas fields and 
                            recovery and production of geopressured gas 
                            resources.
Sec. 4208. Cost sharing and proposal evaluation.
Sec. 4209. Centers for Geothermal Technology Transfer.
Sec. 4210. GeoPowering America.
Sec. 4211. Educational pilot program.
Sec. 4212. Reports.
Sec. 4213. Applicability of other laws.
Sec. 4214. Authorization of appropriations.
                        Subtitle D--Solar Energy

Sec. 4301. Short title.
Sec. 4302. Definitions.
Sec. 4303. Thermal energy storage research and development program.
Sec. 4304. Concentrating solar power commercial application studies.
Sec. 4305. Solar energy curriculum development and certification 
                            grants.
Sec. 4306. Daylighting systems and direct solar light pipe technology.
Sec. 4307. Solar Air Conditioning Research and Development Program.
Sec. 4308. Photovoltaic demonstration program.
                          Subtitle E--Biofuels

Sec. 4401. Short title.
Sec. 4402. Biofuels and biorefinery information center.
Sec. 4403. Biofuels and advanced biofuels infrastructure.
Sec. 4404. Biodiesel.
Sec. 4405. Biogas.
Sec. 4406. Bioresearch centers for systems biology program.
Sec. 4407. Grants for biofuel production research and development in 
                            certain States.
Sec. 4408. Biorefinery energy efficiency.
Sec. 4409. Study of increased consumption of ethanol-blended gasoline 
                            with higher levels of ethanol.
Sec. 4410. Study of optimization of flexible fueled vehicles to use E-
                            85 fuel.
Sec. 4411. Study of engine durability and performance associated with 
                            the use of biodiesel.
Sec. 4412. Bioenergy research and development, authorization of 
                            appropriation.
Sec. 4413. Environmental research and development.
Sec. 4414. Study of optimization of biogas used in natural gas 
                            vehicles.
Sec. 4415. Standards for biofuels dispensers.
Sec. 4416. Algal biomass.
                 Subtitle F--Carbon Capture and Storage

Sec. 4501. Short title.
Sec. 4502. Carbon capture and storage research, development, and 
                            demonstration program.
Sec. 4503. Review of large-scale programs.
Sec. 4504. Safety research.
Sec. 4505. Geological sequestration training and research.
Sec. 4506. University based research and development grant program.
                   Subtitle G--Global Change Research

Sec. 4601. Short title.
                     Part 1--Global Change Research

Sec. 4611. Findings and purpose.
Sec. 4612. Definitions.
Sec. 4613. Interagency cooperation and coordination.
Sec. 4614. United States Global Change Research Program.
Sec. 4615. National Global Change Research and Assessment Plan.
Sec. 4616. Budget coordination.
Sec. 4617. Vulnerability assessment.
Sec. 4618. Policy assessment.
Sec. 4619. Annual report.
Sec. 4620. Relation to other authorities.
Sec. 4621. Repeal.
Sec. 4622. Global change research information.
Sec. 4623. Ice sheet study and report.
Sec. 4624. Hurricane frequency and intensity study and report.
        Part 2--Climate and Other Global Change Data Management

Sec. 4631. Findings and purposes.
Sec. 4632. Definitions.
Sec. 4633. Interagency climate and other global change data management 
                            working group.
                      TITLE V--AGRICULTURE ENERGY

Sec. 5001. Table of contents.
Sec. 5002. Federal procurement of biobased products.
Sec. 5003. Loan guarantees for biorefineries and biofuel production 
                            plants.
Sec. 5004. Biodiesel fuel education program.
Sec. 5005. Energy audit and renewable energy development program.
Sec. 5006. Renewable energy systems and energy efficiency improvements.
Sec. 5007. Biomass Research and Development Act of 2000.
Sec. 5008. Adjustments to the bioenergy program.
Sec. 5009. Research, extension, and educational programs on biobased 
                            energy technologies and products.
Sec. 5010. Energy Council of the Department of Agriculture.
Sec. 5011. Forest bioenergy research program.
                  TITLE VI--CARBON-NEUTRAL GOVERNMENT

Sec. 6001. Short title.
Sec. 6002. Findings.
 Subtitle A--Federal Government Inventory and Management of Greenhouse 
                             Gas Emissions

Sec. 6101. Inventory of Federal Government Greenhouse Gas Emissions.
Sec. 6102. Management of Federal Government Greenhouse Gas Emissions.
Sec. 6103. Pilot project for purchase of offsets and certificates.
Sec. 6104. Impact on agency's primary mission.
Sec. 6105. Savings Clause.
Sec. 6106. Definitions.
Sec. 6107. Authorization of appropriations.
            Subtitle B--Federal Government Energy Efficiency

Sec. 6201. Federal vehicle fleets.
Sec. 6202. Agency analyses for mobility acquisitions.
Sec. 6203. Federal procurement of energy efficient products.
Sec. 6204. Federal building energy efficiency performance standards.
Sec. 6205. Management of Federal building efficiency.
Sec. 6206. Leasing.
Sec. 6207. Procurement and acquisition of alternative fuels.
Sec. 6208. Contracts for renewable energy for executive agencies.
Sec. 6209. Government Efficiency Status Reports.
Sec. 6210. OMB Government Efficiency Reports and Scorecards.
Sec. 6211. Authorization of appropriations.
Sec. 6212. Judicial review.
           TITLE VII--NATURAL RESOURCES COMMITTEE PROVISIONS

Sec. 7001. Short title.
             Subtitle A--Energy Policy Act of 2005 Reforms

Sec. 7101. Fiscally responsible energy amendments.
Sec. 7102. Extension of deadline for consideration of applications for 
                            permits.
Sec. 7103. Oil shale and tar sands leasing.
Sec. 7104. Limitation of rebuttable presumption regarding application 
                            of categorical exclusion under NEPA for oil 
                            and gas exploration and development 
                            activities.
Sec. 7105. Best management practices.
Sec. 7106. Federal consistency appeals.
Subtitle B--Federal Energy Public Accountability, Integrity, and Public 
                                Interest

 Chapter 1--Accountability and Integrity in the Federal Energy Program

Sec. 7201. Audits.
Sec. 7202. Fines and penalties.
Chapter 2--Amendments to Federal Oil and Gas Royalty Management Act of 
                                  1982

Sec. 7211. Amendments to definitions.
Sec. 7212. Interest.
Sec. 7213. Obligation period.
Sec. 7214. Tolling agreements and subpoenas.
Sec. 7215. Liability for royalty payments.
        Chapter 3--Public Interest in the Federal Energy Program

Sec. 7221. Surface owner protection.
Sec. 7222. Onshore oil and gas reclamation and bonding.
Sec. 7223. Protection of water resources.
Sec. 7224. Due diligence fee.
                         Chapter 4--Wind Energy

Sec. 7231. Wind Turbine Guidelines Advisory Committee.
Sec. 7232. Authorization of appropriations for research to study wind 
                            energy impacts on wildlife.
Sec. 7233. Enforcement.
Sec. 7234. Savings clause.
                Chapter 5--Enhancing Energy Transmission

Sec. 7241. Power Marketing Administrations report.
             Subtitle C--Alternative Energy and Efficiency

Sec. 7301. State ocean and coastal alternative energy planning.
Sec. 7302. Canal-side power production at Bureau of Reclamation 
                            projects.
Sec. 7303. Increasing energy efficiencies for water desalination.
Sec. 7304. Establishing a pilot program for the development of 
                            strategic solar reserves on Federal lands.
Sec. 7305. OTEC regulations.
Sec. 7306. Biomass utilization pilot program.
Sec. 7307. Programmatic environmental impact statement.
        Subtitle D--Carbon Capture and Climate Change Mitigation

             Chapter 1--Geological Sequestration Assessment

Sec. 7401. Short title.
Sec. 7402. National assessment.
            Chapter 2--Terrestrial Sequestration Assessment

Sec. 7421. Requirement to conduct an assessment.
Sec. 7422. Methodology.
Sec. 7423. Completion of assessment and report.
Sec. 7424. Authorization of appropriations.
                  Chapter 3--Sequestration Activities

Sec. 7431. Carbon dioxide storage inventory.
Sec. 7432. Framework for geological carbon sequestration on Federal 
                            lands.
           Chapter 4--Natural Resources and Wildlife Programs

     subchapter a--natural resources management and climate change

Sec. 7441. Natural Resources Management Council on Climate Change.
        subchapter b--national policy and strategy for wildlife

Sec. 7451. Short title.
Sec. 7452. National policy on wildlife and global warming.
Sec. 7453. Definitions.
Sec. 7454. National strategy.
Sec. 7455. Advisory board.
Sec. 7456. Authorization of appropriations.
         subchapter c--state and tribal wildlife grants program

Sec. 7461. State and Tribal Wildlife Grants Program.
                       Chapter 5--Ocean Programs

Sec. 7471. Ocean Policy, Global Warming, and Acidification Program.
Sec. 7472. Planning for climate change in the coastal zone.
Sec. 7473. Enhancing climate change predictions.
        Subtitle E--Royalties Under Offshore Oil and Gas Leases

Sec. 7501. Short title.
Sec. 7502. Price thresholds for royalty suspension provisions.
Sec. 7503. Clarification of authority to impose price thresholds for 
                            certain lease sales.
Sec. 7504. Eligibility for new leases and the transfer of leases; 
                            conservation of resources fees.
Sec. 7505. Repeal of certain taxpayer subsidized royalty relief for the 
                            oil and gas industry.
                   Subtitle F--Additional Provisions

Sec. 7601. Oil shale community impact assistance.
Sec. 7602. Additional notice requirements.
Sec. 7603. Davis-Bacon Act.
Sec. 7604. Roan Plateau, Colorado.
             TITLE VIII--TRANSPORTATION AND INFRASTRUCTURE

Sec. 8001. Short title.
Sec. 8002. Findings and purposes.
                Subtitle A--Department of Transportation

Sec. 8101. Center for climate change and environment.
                    Subtitle B--Highways and Transit

                     Part 1--Public Transportation

Sec. 8201. Grants to improve public transportation services.
Sec. 8202. Increased Federal share for Clean Air Act compliance.
Sec. 8203. Commuter rail transit enhancement.
                      Part 2--Federal-Aid Highways

Sec. 8251. Increased Federal share for CMAQ projects.
Sec. 8252. Distribution of rescissions.
Sec. 8253. Sense of Congress regarding use of complete streets design 
                            techniques.
            Subtitle C--Railroad and Pipeline Transportation

                           Part 1--Railroads

Sec. 8301. Advanced technology locomotive grant pilot program.
Sec. 8302. Capital grants for railroad track.
                           Part 2--Pipelines

Sec. 8311. Feasibility studies.
                  Subtitle D--Maritime Transportation

                       Part 1--General Provisions

Sec. 8401. Short sea transportation initiative.
Sec. 8402. Short sea shipping eligibility for capital construction 
                            fund.
Sec. 8403. Report.
                       Part 2--Maritime Pollution

Sec. 8451. References.
Sec. 8452. Definitions.
Sec. 8453. Applicability.
Sec. 8454. Administration and enforcement.
Sec. 8455. Certificates.
Sec. 8456. Reception facilities.
Sec. 8457. Inspections.
Sec. 8458. Amendments to the protocol.
Sec. 8459. Penalties.
Sec. 8460. Effect on other laws.
                          Subtitle E--Aviation

Sec. 8501. Environmental mitigation pilot program.
                      Subtitle F--Public Buildings

                Part 1--General Services Administration

Sec. 8601. Public building energy efficient and renewable energy 
                            systems.
Sec. 8602. Public building life-cycle costs.
Sec. 8603. Installation of photovoltaic system at department of energy 
                            headquarters building.
                          Part 2--Coast Guard

Sec. 8631. Prohibition on incandescent lamps by Coast Guard.
                    Part 3--Architect of the Capitol

Sec. 8651. Capitol complex photovoltaic roof feasibility study.
Sec. 8652. Capitol complex E-85 refueling station.
Sec. 8653. Energy and environmental measures in Capitol complex master 
                            plan.
Sec. 8654. Capitol Power Plant.
   Subtitle G--Water Resources and Emergency Management Preparedness

                        Part 1--Water Resources

Sec. 8701. Policy of the United States.
Sec. 8702. 21st Century Water Commission.
Sec. 8703. Study of Potential Impacts of Climate Change on Water 
                            Resources and Water Quality.
Sec. 8704. Impacts of climate change on Corps of Engineers projects.
                      Part 2--Emergency Management

Sec. 8731. Effects of climate change on FEMA preparedness, response, 
                            recovery, and mitigation programs.
                     TITLE IX--ENERGY AND COMMERCE

                Subtitle A--Promoting Energy Efficiency

Sec. 9000. Short title.
                      Part 1--Appliance Efficiency

Sec. 9001. Energy standards for home appliances.
Sec. 9002. Electric motor efficiency standards.
Sec. 9003. Residential boilers.
Sec. 9004. Regional variations in heating or cooling standards.
Sec. 9005. Procedure for prescribing new or amended standards.
Sec. 9006. Expediting appliance standards rulemakings.
Sec. 9007. Correction of large air conditioner rule issuance 
                            constraint.
Sec. 9008. Definition of energy conservation standard.
Sec. 9009. Improving schedule for standards updating and clarifying 
                            State authority.
Sec. 9010. Updating appliance test procedures.
Sec. 9011. Furnace fan standard process.
Sec. 9012. Technical corrections.
Sec. 9013. Energy efficient standby power devices.
Sec. 9014. External power supply efficiency standards.
Sec. 9015. Standby mode.
                      Part 2--Lighting Efficiency

Sec. 9021. Efficient light bulbs.
Sec. 9022. Incandescent reflector lamps.
Sec. 9023. Use of energy efficient lighting fixtures and bulbs.
                Part 3--Residential Building Efficiency

Sec. 9031. Encouraging stronger building codes.
Sec. 9032. Energy code improvements applicable to manufactured housing.
Sec. 9033. Baseline building designs.
Sec. 9034. Reauthorization of weatherization assistance program.
           Part 4--Commercial and Federal Building Efficiency

Sec. 9041. Definitions.
Sec. 9042. High-performance green Federal buildings.
Sec. 9043. Commercial high-performance green buildings.
Sec. 9044. Zero-energy commercial buildings initiative.
Sec. 9045. Public outreach.
Sec. 9046. Federal procurement.
Sec. 9047. Management of energy and water efficiency in Federal 
                            buildings.
Sec. 9048. Demonstration project.
Sec. 9049. Energy efficiency for data center buildings.
Sec. 9050. Authorization of appropriations.
Sec. 9051. Study and report on use of power management software.
Sec. 9052. High-performance green buildings retrofit loan guarantees.
                  Part 5--Industrial Energy Efficiency

Sec. 9061. Industrial energy efficiency.
            Part 6--Energy Efficiency of Public Institutions

Sec. 9071. Short title.
Sec. 9072. Findings.
Sec. 9073. Definitions.
Sec. 9074. Technical Assistance Program.
Sec. 9075. Revolving Fund.
Sec. 9076. Reauthorization of State energy programs.
             Part 7--Energy Savings Performance Contracting

Sec. 9081. Definition of energy savings.
Sec. 9082. Financing flexibility.
Sec. 9083. Authority to enter into contracts; reports.
Sec. 9084. Permanent reauthorization.
Sec. 9085. Training Federal contracting officers to negotiate energy 
                            efficiency contracts.
Sec. 9086. Promoting long-term energy savings performance contracts and 
                            verifying savings.
       Part 8--Advisory Committee on Energy Efficiency Financing

Sec. 9089. Advisory committee.
             Part 9--Energy Efficiency Block Grant Program

Sec. 9091. Definitions.
Sec. 9092. Establishment of program.
Sec. 9093. Allocations.
Sec. 9094. Eligible activities.
Sec. 9095. Requirements.
Sec. 9096. Review and evaluation.
Sec. 9097. Technical Assistance and Education Program.
Sec. 9098. Authorization of appropriations.
                  Subtitle B--Smart Grid Facilitation

Sec. 9101. Short title.
                           Part 1--Smart Grid

Sec. 9111. Statement of policy on modernization of electricity grid.
Sec. 9112. Grid Modernization Commission.
Sec. 9113. Grid assessment and report.
Sec. 9114. Federal matching fund for smart grid investment costs.
Sec. 9115. Smart Grid technology deployment.
Sec. 9116. Smart Grid Information Requirements.
Sec. 9117. State consideration of incentives for Smart Grid.
Sec. 9118. DOE study of security attributes of Smart Grid systems.
                        Part 2--Demand Response

Sec. 9121. Electricity sector demand response.
                      Subtitle C--Loan Guarantees

Sec. 9201. Amount of loans guaranteed.
Sec. 9202. Exclusion of categories.
Subtitle D--Renewable Fuel Infrastructure and International Cooperation

                 Part 1--Renewable Fuel Infrastructure

Sec. 9301. Renewable fuel infrastructure development.
Sec. 9302. Prohibition on franchise agreement restrictions related to 
                            renewable fuel infrastructure.
Sec. 9303. Renewable fuel dispenser requirements.
Sec. 9304. Pipeline feasibility study.
Sec. 9305. Study of ethanol-blended gasoline with greater levels of 
                            ethanol.
Sec. 9306. Study of the adequacy of railroad transportation of 
                            domestically-produced renewable fuel.
Sec. 9307. Standard specifications for biodiesel.
Sec. 9308. Grants for cellulosic ethanol production.
Sec. 9309. Consumer education campaign relating to flexible-fuel 
                            vehicles.
Sec. 9310. Review of new renewable fuels or new renewable fuel 
                            additives.
Sec. 9311. Domestic manufacturing conversion grant program.
Sec. 9312. Cellulosic ethanol and biofuels research.
Sec. 9313. Federal fleet fueling centers.
Sec. 9314. Study of impact of increased renewable fuel use.
Sec. 9315. Grants for renewable fuel production research and 
                            development in certain States.
Sec. 9316. Study of effect of oil prices.
Sec. 9317. Biodiesel as alternative fuel for CAFE purposes.
            Part 2--United States-Israel Energy Cooperation

Sec. 9321. Short title.
Sec. 9322. Findings.
Sec. 9323. Grant program.
Sec. 9324. International Energy Advisory Board.
Sec. 9325. Definitions.
Sec. 9326. Termination.
Sec. 9327. Authorization of appropriations.
Sec. 9328. Constitutional authority.
      Subtitle E--Advanced Plug-In Hybrid Vehicles and Components

Sec. 9401. Advanced battery loan guarantee program.
Sec. 9402. Domestic manufacturing conversion grant program.
Sec. 9403. Plug-in hybrid vehicle program.
Sec. 9404. Plug-in hybrid demonstration vehicles.
Sec. 9405. Incentive for Federal and State fleets for medium and heavy 
                            duty hybrids.
Sec. 9406. Inclusion of electric drive in Energy Policy Act of 1992.
Sec. 9407. Near-term electric drive transportation deployment program.
Sec. 9408. Studying the benefits of plug-in hybrid electric drive 
                            vehicles and electric drive transportation.
        Subtitle F--Availability of Critical Energy Information

Sec. 9501. Findings.
Sec. 9502. Assessment of resources.
                        TITLE X--TAX PROVISIONS

Sec. 10000. Short title; amendment of 1986 Code; table of contents.
                   Subtitle A--Production Incentives

Sec. 10001. Extension and modification of renewable energy credit.
Sec. 10002. Production credit for electricity produced from marine 
                            renewables.
Sec. 10003. Extension and modification of energy credit.
Sec. 10004. New clean renewable energy bonds.
Sec. 10005. Extension and modification of special rule to implement 
                            FERC and State electric restructuring 
                            policy.
Sec. 10006. Repeal of dollar limitation and allowance against 
                            alternative minimum tax for residential 
                            solar and fuel cell property credit.
                        Subtitle B--Conservation

                         Part 1--Transportation

Sec. 10101. Credit for plug-in hybrid vehicles.
Sec. 10102. Extension and modification of alternative fuel vehicle 
                            refueling property credit.
Sec. 10103. Extension and modification of credits for biodiesel and 
                            renewable diesel.
Sec. 10104. Credit for production of cellulosic alcohol.
Sec. 10105. Extension of transportation fringe benefit to bicycle 
                            commuters.
Sec. 10106. Modification of limitation on automobile depreciation.
Sec. 10107. Restructuring of New York Liberty Zone tax credits.
                 Part 2--Other Conservation Provisions

Sec. 10111. Qualified energy conservation bonds.
Sec. 10112. Qualified residential energy efficiency assistance bonds.
Sec. 10113. Extension of energy efficient commercial buildings 
                            deduction.
Sec. 10114. Modifications of energy efficient appliance credit for 
                            appliances produced after 2007.
Sec. 10115. Five-year applicable recovery period for depreciation of 
                            qualified energy management devices.
                     Subtitle C--Revenue Provisions

               Part 1--Denial of Oil and Gas Tax Benefits

Sec. 10201. Denial of deduction for income attributable to domestic 
                            production of oil, natural gas, or primary 
                            products thereof.
Sec. 10202. 7-year amortization of geological and geophysical 
                            expenditures for certain major integrated 
                            oil companies.
Sec. 10203. Clarification of determination of foreign oil and gas 
                            extraction income.
     Part 2--Clarification of Eligibility for Certain Fuel Credits

Sec. 10211. Clarification of eligibility for renewable diesel credit.
Sec. 10212. Clarification that credits for fuel are designed to provide 
                            an incentive for United States production.
                      Subtitle D--Other Provisions

                            Part 1--Studies

Sec. 10301. Carbon audit of the tax code.
Sec. 10302. Comprehensive study of biofuels.
  Part 2--Application of Certain Labor Standards on Projects Financed 
                         Under Tax Credit Bonds

Sec. 10311. Application of certain labor standards on projects financed 
                            under tax credit bonds.

                          TITLE I--GREEN JOBS

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``Green Jobs Act of 2007''.

SEC. 1002. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER TRAINING 
              PROGRAM.

    Section 171 of the Workforce Investment Act of 1998 (29 U.S.C. 
2916) is amended by adding at the end the following:
    ``(e) Energy Efficiency and Renewable Energy Worker Training 
Program.--
            ``(1) Grant program.--
                    ``(A) In general.--Not later than 6 months after 
                the date of enactment of the Green Jobs Act of 2007, 
                the Secretary, in consultation with the Secretary of 
                Energy, shall establish an energy efficiency and 
                renewable energy worker training program under which 
                the Secretary shall carry out the activities described 
                in paragraph (2) to achieve the purposes of this 
                subsection.
                    ``(B) Eligibility.--For purposes of providing 
                assistance and services under the program established 
                under this subsection--
                            ``(i) target populations of eligible 
                        individuals to be given priority for training 
                        and other services shall include--
                                    ``(I) workers affected by national 
                                energy and environmental policy;
                                    ``(II) individuals in need of 
                                updated training related to the energy 
                                efficiency and renewable energy 
                                industries; and
                                    ``(III) veterans, or past and 
                                present members of reserve components 
                                of the Armed Forces;
                                    ``(IV) unemployed workers;
                                    ``(V) individuals, including at-
                                risk youth, seeking employment pathways 
                                out of poverty and into economic self-
                                sufficiency; and
                                    ``(VI) formerly incarcerated, 
                                adjudicated, non-violent offenders;
                            ``(ii) energy efficiency and renewable 
                        energy industries eligible to participate in a 
                        program under this subsection include--
                                    ``(I) the energy-efficient 
                                building, construction, and retrofits 
                                industries;
                                    ``(II) the renewable electric power 
                                industry;
                                    ``(III) the energy efficient and 
                                advanced drive train vehicle industry;
                                    ``(IV) the biofuels industry;
                                    ``(V) the deconstruction and 
                                materials use industries;
                                    ``(VI) the energy efficiency 
                                assessment industry serving the 
                                residential, commercial, or industrial 
                                sectors; and
                                    ``(VII) manufacturers that produce 
                                sustainable products using 
                                environmentally sustainable processes 
                                and materials.
            ``(2) Activities.--
                    ``(A) National research program.--Under the program 
                established under paragraph (1), the Secretary, acting 
                through the Bureau of Labor Statistics, where 
                appropriate, shall collect and analyze labor market 
                data to track workforce trends resulting from energy-
                related initiatives carried out under this subsection. 
                Activities carried out under this paragraph shall 
                include--
                            ``(i) tracking and documentation of 
                        academic and occupational competencies as well 
                        as future skill needs with respect to renewable 
                        energy and energy efficiency technology;
                            ``(ii) tracking and documentation of 
                        occupational information and workforce training 
                        data with respect to renewable energy and 
                        energy efficiency technology;
                            ``(iii) collaborating with State agencies, 
                        workforce investments boards, industry, 
                        organized labor, and community and nonprofit 
                        organizations to disseminate information on 
                        successful innovations for labor market 
                        services and worker training with respect to 
                        renewable energy and energy efficiency 
                        technology;
                            ``(iv) serving as a clearinghouse for best 
                        practices in workforce development, job 
                        placement, and collaborative training 
                        partnerships;
                            ``(v) promoting the establishment of 
                        workforce training initiatives with respect to 
                        renewable energy and energy efficiency 
                        technologies; and
                            ``(vi) linking research and development in 
                        renewable energy and energy efficiency 
                        technology with the development of standards 
                        and curricula for current and future jobs;
                            ``(vii) assessing new employment and work 
                        practices including career ladder and upgrade 
                        training as well as high performance work 
                        systems;
                            ``(viii) providing technical assistance and 
                        capacity building to national and state energy 
                        partnerships, including industry and labor 
                        representatives.
                    ``(B) National energy training partnership 
                grants.--
                            ``(i) In general.--Under the program 
                        established under paragraph (1), the Secretary 
                        shall award National Energy Training 
                        Partnerships Grants on a competitive basis to 
                        eligible entities to enable such entities to 
                        carry out training that leads to economic self-
                        sufficiency and to develop an energy efficiency 
                        and renewable energy industries workforce. 
                        Grants shall be awarded under this subparagraph 
                        so as to ensure geographic diversity with at 
                        least 2 grants awarded to entities located in 
                        each of the 4 Petroleum Administration for 
                        Defense Districts with no subdistricts, and at 
                        least 1 grant awarded to an entity located in 
                        each of the subdistricts of the Petroleum 
                        Administration for Defense District with 
                        subdistricts, as such districts are established 
                        by the Secretary of Energy.
                            ``(ii) Eligibility.--To be eligible to 
                        receive a grant under clause (i), an entity 
                        shall be a non-profit partnership that--
                                    ``(I) includes the equal 
                                participation of industry, including 
                                public or private employers, and labor 
                                organizations, including joint labor-
                                management training programs, and may 
                                include workforce investment boards, 
                                community-based organizations, 
                                educational institutions, small 
                                businesses, cooperatives, State and 
                                local veterans agencies, and veterans 
                                service organizations; and
                                    ``(II) demonstrates--
                                            ``(aa) experience in 
                                        implementing and operating 
                                        worker skills training and 
                                        education programs;
                                            ``(bb) the ability to 
                                        identify and involve in 
                                        training programs carried out 
                                        under this grant, target 
                                        populations of workers who 
                                        would benefit from activities 
                                        related to energy efficiency 
                                        and renewable energy 
                                        industries; and
                                            ``(cc) the ability to help 
                                        workers achieve economic self-
                                        sufficiency.
                            ``(iii) Priority.--Priority shall be given 
                        to partnerships which leverage additional 
                        public and private resources to fund training 
                        programs, including cash or in-kind matches 
                        from participating employers.
                    ``(C) State labor market research, information, and 
                labor exchange research program.--
                            ``(i) In general.--Under the program 
                        established under paragraph (1), the Secretary 
                        shall award competitive grants to States to 
                        enable such States to administer labor market 
                        and labor exchange information programs that 
                        include the implementation of the activities 
                        described in clause (ii), in coordination with 
                        the one-stop delivery system.
                            ``(ii) Activities.--A State shall use 
                        amounts awarded under a grant under this 
                        subparagraph to provide funding to the State 
                        agency that administers the Wagner-Peyser Act 
                        and State unemployment compensation programs to 
                        carry out the following activities using State 
                        agency merit staff:
                                    ``(I) The identification of job 
                                openings in the renewable energy and 
                                energy efficiency sector.
                                    ``(II) The administration of skill 
                                and aptitude testing and assessment for 
                                workers.
                                    ``(III) The counseling, case 
                                management, and referral of qualified 
                                job seekers to openings and training 
                                programs, including energy efficiency 
                                and renewable energy training programs.
                    ``(D) State energy training partnership program.--
                            ``(i) In general.--Under the program 
                        established under paragraph (1), the Secretary 
                        shall award competitive grants to States to 
                        enable such States to administer renewable 
                        energy and energy efficiency workforce 
                        development programs that include the 
                        implementation of the activities described in 
                        clause (ii).
                            ``(ii) Partnerships.--A State shall use 
                        amounts awarded under a grant under this 
                        subparagraph to award competitive grants to 
                        eligible State Energy Sector Partnerships to 
                        enable such Partnerships to coordinate with 
                        existing apprenticeship and labor management 
                        training programs and implement training 
                        programs that lead to the economic self-
                        sufficiency of trainees.
                            ``(iii) Eligibility.--To be eligible to 
                        receive a grant under this subparagraph, a 
                        State Energy Sector Partnership shall--
                                    ``(I) consist of non-profit 
                                organizations that include equal 
                                participation from industry, including 
                                public or private nonprofit employers, 
                                and labor organizations, including 
                                joint labor-management training 
                                programs, and may include 
                                representatives from local governments, 
                                the workforce investment system, 
                                including worker investment agency one-
                                stop career centers, community based 
                                organizations, community colleges, and 
                                other post-secondary institutions, 
                                small businesses, cooperatives, State 
                                and local veterans agencies, and 
                                veterans service organizations;
                                    ``(II) demonstrate experience in 
                                implementing and operating worker 
                                skills training and education programs; 
                                and
                                    ``(III) demonstrate the ability to 
                                identify and involve in training 
                                programs, target populations of workers 
                                who would benefit from activities 
                                related to energy efficiency and 
                                renewable energy industries.
                            ``(iv) Priority.--In awarding grants under 
                        this subparagraph, the Secretary shall give 
                        priority to States that demonstrate that 
                        activities under the grant--
                                    ``(I) meet national energy policies 
                                associated with energy efficiency, 
                                renewable energy, and the reduction of 
                                emissions of greenhouse gases;
                                    ``(II) meet State energy policies 
                                associated with energy efficiency, 
                                renewable energy, and the reduction of 
                                emissions of greenhouse gases; and
                                    ``(III) leverage additional public 
                                and private resources to fund training 
                                programs, including cash or in-kind 
                                matches from participating employers.
                            ``(v) Coordination.--A grantee under this 
                        subparagraph shall coordinate activities 
                        carried out under the grant with existing other 
                        appropriate training programs, including 
                        apprenticeship and labor management training 
                        programs, including such activities referenced 
                        in subparagraph (C)(ii), and implement training 
                        programs that lead to the economic self-
                        sufficiency of trainees.
                    ``(E) Pathways out of poverty demonstration 
                program.--
                            ``(i) In general.--Under the program 
                        established under paragraph (1), the Secretary 
                        shall award at least 10 competitive grants to 
                        eligible entities to enable such entities to 
                        carry out training that leads to economic self-
                        sufficiency. The Secretary shall give priority 
                        to entities that serve individuals in families 
                        with income of less than 200 percent of the 
                        poverty threshold (as determined by the Bureau 
                        of the Census) or a self-sufficiency standard 
                        for the local areas where the training is 
                        conducted that specifies the income needs of 
                        families, by family size, the number and ages 
                        of children in the family, and sub-State 
                        geographical considerations. Grants shall be 
                        awards to ensure geographic diversity.
                            ``(ii) Eligible entities.--To be eligible 
                        to receive a grant an entity shall be a 
                        partnership that--
                                    ``(I) includes community-based non-
                                profit organizations, educational 
                                institutions with expertise in serving 
                                low-income adults or youth, public or 
                                private employers from the industry 
                                sectors described in paragraph 
                                (1)(B)(ii), and labor organizations 
                                representing workers in such industry 
                                sectors;
                                    ``(II) demonstrates experience in 
                                implementing and operating worker 
                                skills training and education programs;
                                    ``(III) coordinates activities, 
                                where appropriate, with the workforce 
                                investment system; and
                                    ``(IV) demonstrates the ability to 
                                recruit individuals for training and to 
                                support such individuals to successful 
                                completion in training programs carried 
                                out under this grant, targeting 
                                populations of workers who are or will 
                                be engaged in activities related to 
                                energy efficiency and renewable energy 
                                industries.
                            ``(iii) Priorities.--In awarding grants 
                        under this paragraph, the Secretary shall give 
                        priority to applicants that--
                                    ``(I) target programs to benefit 
                                low-income workers, unemployed youth 
                                and adults, high school dropouts, or 
                                other underserved sectors of the 
                                workforce within areas of high poverty;
                                    ``(II) ensure that supportive 
                                services are integrated with education 
                                and training, and delivered by 
                                organizations with direct access to and 
                                experience with targeted populations;
                                    ``(III) leverage additional public 
                                and private resources to fund training 
                                programs, including cash or in-kind 
                                matches from participating employers;
                                    ``(IV) involve employers and labor 
                                organizations in the determination of 
                                relevant skills and competencies and 
                                ensure that the certificates or 
                                credentials that result from the 
                                training are employer-recognized;
                                    ``(V) deliver courses at 
                                alternative times (such as evening and 
                                weekend programs) and locations most 
                                convenient and accessible to 
                                participants; and
                                    ``(VI) link adult remedial 
                                education with occupational skills 
                                training.
                            ``(iv) Data collection.--Grantees shall 
                        collect and report the following information:
                                    ``(I) The number of participants.
                                    ``(II) The demographic 
                                characteristics of participants, 
                                including race, gender, age, parenting 
                                status, participation in other Federal 
                                programs, education and literacy level 
                                at entry, significant barriers to 
                                employment (such as limited English 
                                proficiency, criminal record, addiction 
                                or mental health problem requiring 
                                treatment, or mental disability).
                                    ``(III) The services received by 
                                participants, including training, 
                                education, and supportive services.
                                    ``(IV) The amount of program 
                                spending per participant.
                                    ``(V) Program completion rates.
                                    ``(VI) Factors determined as 
                                significantly interfering with program 
                                participation or completion.
                                    ``(VII) The rate of Job placement 
                                and the rate of employment retention 
                                after 1 year.
                                    ``(VIII) The average wage at 
                                placement, including any benefits, and 
                                the rate of average wage increase after 
                                1 year.
                                    ``(IX) Any post-employment 
                                supportive services provided.
                        The Secretary shall assist grantees in the 
                        collection of data under this clause by making 
                        available, where practicable, low-cost means of 
                        tracking the labor market outcomes of 
                        participants, and by providing standardized 
                        reporting forms, where appropriate.
            ``(3) Activities.--
                    ``(A) In general.--Activities to be carried out 
                under a program authorized by subparagraphs (B), (D), 
                or (E) of paragraph (2) shall be coordinated with 
                existing systems or providers, as appropriate. Such 
                activities may include--
                            ``(i) occupational skills training, 
                        including curriculum development, on-the-job 
                        training, and classroom training;
                            ``(ii) safety and health training;
                            ``(iii) the provision of basic skills, 
                        literacy, GED, English as a second language, 
                        and job readiness training;
                            ``(iv) individual referral and tuition 
                        assistance for a community college training 
                        program, or any training program leading to an 
                        industry-recognized certificate;
                            ``(v) internship programs in fields related 
                        to energy efficiency and renewable energy;
                            ``(vi) customized training in conjunction 
                        with an existing registered apprenticeship 
                        program or labor-management partnership;
                            ``(vii) career ladder and upgrade training;
                            ``(viii) the implementation of transitional 
                        jobs strategies; and
                            ``(ix) the provision of supportive 
                        services.
                    ``(B) Outreach activities.--In addition to the 
                activities authorized under subparagraph (A), 
                activities authorized for programs under subparagraph 
                (E) of paragraph (2) may include the provision of 
                outreach, recruitment, career guidance, and case 
                management services.
            ``(4) Worker protections and nondiscrimination 
        requirements.--
                    ``(A) Application of wia.--The provisions of 
                sections 181 and 188 of the Workforce Investment Act of 
                1998 (29 U.S.C. 2931 and 2938) shall apply to all 
                programs carried out with assistance under this 
                subsection.
                    ``(B) Consultation with labor organizations.--If a 
                labor organization represents a substantial number of 
                workers who are engaged in similar work or training in 
                an area that is the same as the area that is proposed 
                to be funded under this Act, the labor organization 
                shall be provided an opportunity to be consulted and to 
                submit comments in regard to such a proposal.
            ``(5) Performance measures.--
                    ``(A) In general.--The Secretary shall negotiate 
                and reach agreement with the eligible entities that 
                receive grants and assistance under this section on 
                performance measures for the indicators of performance 
                referred to in subparagraph (A) and (B) of section 
                136(b)(2) that will be used to evaluate the performance 
                of the eligible entity in carrying out the activities 
                described in subsection (e)(2) . Each State and local 
                performance measure shall consist of such an indicator 
                of performance, and a performance level referred to in 
                subparagraph (B).
                    ``(B) Performance levels.--The Secretary shall 
                negotiate and reach agreement with the eligible entity 
                regarding the levels of performance expected to be 
                achieved by the eligible entity on the indicators of 
                performance.
            ``(6) Report.--
                    ``(A) Status report.--Not later than 18 months 
                after the date of enactment of the Green Jobs Act of 
                2007, the Secretary shall transmit a report to Congress 
                on the training program established by this subsection. 
                The report shall include a description of the entities 
                receiving funding and the activities carried out by 
                such entities.
                    ``(B) Evaluation.--Not later than 3 years after the 
                date of enactment of such Act, the Secretary shall 
                transmit to Congress an assessment of such program and 
                an evaluation of the activities carried out by entities 
                receiving funding from such program.
            ``(7) Definition.--As used in this subsection, the term 
        `renewable energy' has the meaning given such term in section 
        203(b)(2) of the Energy Policy Act of 2005 (Public Law 109-58).
            ``(8) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection, $125,000,000 
        for each fiscal years, of which--
                    ``(A) not to exceed 20 percent of the amount 
                appropriated in each such fiscal year shall be made 
                available for, and shall be equally divided between, 
                national labor market research and information under 
                paragraph (2)(A) and State labor market information and 
                labor exchange research under paragraph (2)(C), and not 
                more than 2 percent of such amount shall be for the 
                evaluation and report required under paragraph (4);
                    ``(B) 20 percent shall be dedicated to Pathways Out 
                of Poverty Demonstration Programs under paragraph 
                (2)(E); and
                    ``(C) the remainder shall be divided equally 
                between National Energy Partnership Training Grants 
                under paragraph (2)(B) and State energy training 
                partnership grants under paragraph (2)(D).''.

 TITLE II--INTERNATIONAL CLIMATE COOPERATION RE-ENGAGEMENT ACT OF 2007

SEC. 2001. SHORT TITLE.

    This title may be cited as the ``International Climate Cooperation 
Re-engagement Act of 2007''.

SEC. 2002. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Affairs of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (2) Clean and efficient energy technology.--The term 
        ``clean and efficient energy technology'' means an energy 
        supply or end-use technology--
                    (A) such as--
                            (i) solar technology;
                            (ii) wind technology;
                            (iii) geothermal technology;
                            (iv) hydroelectric technology; and
                            (v) carbon capture technology; and
                    (B) that, over its life cycle and compared to a 
                similar technology already in commercial use--
                            (i) is reliable, affordable, economically 
                        viable, socially acceptable, and compatible 
                        with the needs and norms of the country 
                        involved;
                            (ii) results in--
                                    (I) reduced emissions of greenhouse 
                                gases; or
                                    (II) increased geological 
                                sequestration; and
                            (iii) may--
                                    (I) substantially lower emissions 
                                of air pollutants; or
                                    (II) generate substantially smaller 
                                or less hazardous quantities of solid 
                                or liquid waste.
            (3) Geological sequestration.--The term ``geological 
        sequestration'' means the capture and long-term storage in a 
        geological formation of a greenhouse gas from an energy 
        producing facility, which prevents the release of greenhouse 
        gases into the atmosphere.
            (4) Greenhouse gas.--The term ``greenhouse gas'' means--
                    (A) carbon dioxide;
                    (B) methane;
                    (C) nitrous oxide;
                    (D) hydrofluorocarbons;
                    (E) perfluorocarbons; or
                    (F) sulfur hexafluoride.

       Subtitle A--United States Policy on Global Climate Change

SEC. 2101. CONGRESSIONAL FINDINGS.

    Congress makes the following findings:
            (1) There is a global scientific consensus, as established 
        by the Intergovernmental Panel on Climate Change (IPCC) and 
        confirmed by the National Academy of Sciences, that the 
        continued build-up of anthropogenic greenhouse gases in the 
        atmosphere has been, and is now warming the earth and threatens 
        the stability of the global climate. By the estimate of the 
        IPCC, unmitigated global greenhouse gas emissions could drive 
        up global temperatures by as much as 7 to 11 degrees Fahrenheit 
        by 2100.
            (2) Climate change is already having significant impacts in 
        certain regions of the world and on many ecosystems, with poor 
        populations being most vulnerable.
            (3) Climate change is a global problem that can only be 
        managed by a coordinated global response that reduces global 
        emissions of greenhouse gases to a level that stabilizes their 
        concentration in the Earth's atmosphere.
            (4) The United Nations Framework Convention on Climate 
        Change (hereinafter in this section referred to as the 
        ``Convention'') establishes a viable foundation to construct a 
        global regime to combat global warming and manage its impacts.
            (5) The United States, along with 189 other countries, is a 
        party to the Convention, agreed to in New York on May 9, 1992, 
        and entered into force in 1994. The Convention's stated 
        objective is ``to achieve stabilization of greenhouse gas 
        concentrations in the atmosphere at a level that would prevent 
        dangerous anthropogenic interference with the climate system''.
            (6) The Kyoto Protocol to the Convention was adopted by the 
        third Convention Conference of the Parties (COP-3) in December 
        1997, in Kyoto, Japan, and stipulated legally binding 
        reductions in greenhouse gas emissions at an average of 5.2 
        percent below 1990 levels for industrialized countries, but it 
        did not specify policies for its implementation. The Kyoto 
        Protocol also did not stipulate binding reductions in 
        greenhouse gas emissions for rapidly industrializing countries 
        such as China, India, and Brazil.
            (7) Before negotiations were completed on the mechanisms 
        for implementing Kyoto Protocol commitments on greenhouse gas 
        emissions, George W. Bush took office as President of the 
        United States, and in March 2001, announced opposition to 
        continued negotiations over implementation of the Protocol, 
        stating that the Protocol was ``fatally flawed'' from the 
        Administration's point of view.
            (8) President Bush unveiled an ``alternative'' strategy to 
        the Kyoto Protocol for halting global warming on February 14, 
        2002. The President's plan did not contain any international 
        component to amend or supplant the Kyoto Protocol or any kind 
        of blueprint for committing major developing economies such as 
        China, India, and Brazil to reduce future greenhouse gas 
        emissions. The President's plan set a voluntary ``greenhouse 
        gas intensity'' target for the United States that specified an 
        18 percent reduction in ``emissions intensity'' by 2012. This 
        reduction would allow actual emissions to increase by at least 
        12 percent over the same period.
            (9) On February 16, 2005, after Russia's ratification, the 
        Kyoto Protocol entered into force. With entry into force, the 
        emissions targets of the Protocol became legally binding 
        commitments for those industrialized countries that ratified 
        the Protocol. Because the United States and Australia did not 
        ratify the Protocol, and because developing countries are not 
        subject to its limits, the Protocol currently restricts the 
        emissions of countries accounting for only 32 percent of global 
        greenhouse gas emissions.
            (10) The Kyoto Protocol required that parties to the 
        Protocol begin negotiating in 2005 toward a second round of 
        commitments to begin after the expiration of the first 
        emissions budget period in 2012. The eleventh Convention 
        Conference of the Parties (COP-11) in November and December 
        2005 in Montreal, Canada launched the negotiations on the 
        second round of commitments by parties to the Protocol and 
        initiated a dialogue (a ``parallel process'') under the 
        Convention that engaged both the United States and developing 
        countries in discussions on future efforts.
            (11) At the twelfth Convention Conference of the Parties 
        (COP-12) in November 2006 in Nairobi, Kenya, parties continued 
        discussions on a second round of commitments under the Kyoto 
        Protocol as a successor to the first commitment period (2008 
        through 2012) and, in the parallel process, discussed enhanced 
        cooperation under the Convention that would engage countries 
        that did not have commitments under the Protocol.
            (12) At a summit in Brussels, Belgium in March 2007, the 
        head of governments of the European Union committed its Member 
        States to cut greenhouse gas emissions 20 percent below 1990 
        levels by 2020 and committed to move this target up to 30 
        percent if the United States and other major emitters joined 
        the commitment.
            (13) On April 17, 2007, the United Nations Security Council 
        held its first ever ``open meeting'' on the impact of climate 
        change on international security. British Foreign Secretary 
        Margaret Beckett, in her capacity as President of the Security 
        Council, declared in her opening statement that the Council has 
        a ``security imperative'' to tackle climate change because it 
        can exacerbate problems that cause conflicts and because it 
        threatens the entire planet. United Nations Secretary-General 
        Ban Ki-moon told the Council that ``issues of energy and 
        climate change have implications for peace and security''.
            (14) Working Group III of the IPCC met from April 30 
        through May 4, 2007, in Bangkok, Thailand to assess 
        technologies and policies needed to avert dangerous climate 
        change and to provide background for negotiations on a post-
        2012 climate change regime. The draft report by the IPCC 
        Working Group III concludes that by quickly adopting 
        technological options that are available or are being 
        developed, the global concentration of greenhouse gases in the 
        atmosphere can be stabilized at 450-550 parts per million 
        (ppm). The IPCC scientists believe that a 450 to 550 ppm 
        ceiling might limit the global rise in temperatures to no more 
        than 3.6 degrees Fahrenheit and avert impacts of escalating 
        scale, scope, and costs, potentially including the 
        destabilization of large polar ice sheets that could contribute 
        to long-term, catastrophic sea level rise at higher 
        temperatures.
            (15) The United Nations Secretary-General Ban Ki-moon has 
        indicated that one of his top goals is to forge a more 
        comprehensive agreement under the Convention to ensure there is 
        no gap when the first commitment period under the Kyoto 
        Protocol ends in 2012. In order to reach this goal, critical 
        negotiations involving all of the major greenhouse gas 
        emitters, along with the vulnerable countries, must be 
        initiated immediately and be completed by 2009. On May 1, 2007, 
        the Secretary-General named three Special Envoys on Climate 
        Change to assist in ``consultations with Governments''. The 
        Secretary-General will host a ``high-level meeting'' on climate 
        change at the United Nations General Assembly in September 2007 
        to give ``political direction'' to the thirteenth Convention 
        Conference of the Parties (COP-13) to take place in December 
        2007 in Bali, Indonesia.

SEC. 2102. CONGRESSIONAL STATEMENT OF POLICY.

    Congress declares the following to be the policy of the United 
States:
            (1) To promote United States and global security through 
        leadership in cooperation with other nations of the global 
        effort to reduce and stabilize global greenhouse gas emissions 
        and stabilize atmospheric concentration of such gases. As such, 
        the United States will seek to obtain mitigation commitments 
        from all major greenhouse gas emitting countries under the 
        institutional framework provided by the United Nations 
        Framework Convention on Climate Change (hereinafter in this 
        section referred to as the ``Convention'').
            (2) To facilitate progress in global negotiations toward a 
        comprehensive agreement under the Convention, and in service of 
        this goal, the United States will, during the course of 2007, 
        engage in high level dialogue on climate change within the 
        Group of Eight (G-8), with the European Union, with Japan and 
        other industrialized countries, and with China, India, Brazil, 
        and other major developing countries. The United States will 
        also participate in the initiative of the United Nations 
        Secretary-General to build consensus among governments on 
        enhanced international cooperation on these matters.
            (3) To participate more actively and constructively in the 
        intergovernmental climate change process, including at the 
        thirteenth Convention Conference of the Parties (COP-13) to 
        take place in December 2007 in Bali, Indonesia. As such, at the 
        COP-13 meeting, the United States will be represented by a 
        high-level delegation composed of climate experts and career 
        foreign service officers with extensive diplomatic experience, 
        including experience in multi-lateral negotiations, headed by 
        the Secretary of State, the Secretary's Deputy, or the 
        Undersecretary for Global Affairs of the Department of State.
            (4) To engage in serious discussion of possible future 
        commitments under the Convention. These discussions will seek 
        to develop a plan of action and time-table with the goal of 
        adopting a new international agreement under the Convention 
        that stipulates commitments from all major greenhouse gas 
        emitters, including the United States and other countries 
        listed in Annex 1 to the Convention, China, India, and Brazil, 
        at the fifteenth Convention Conference of the Parties (COP-15) 
        to take place in 2009. This process will seek as its objective 
        that a new instrument will come into force by the time the 
        first commitment period under the Kyoto Protocol ends in 2012.
            (5) To protect United States national and economic 
        interests and United States competitiveness in all sectors by 
        negotiating a new agreement under the Convention that is cost 
        effective, comprehensive, flexible, and equitable. Such an 
        agreement shall, at a minimum--
                    (A) require binding mitigation commitments from all 
                major emitting countries based on their level of 
                development;
                    (B) provide for different forms of commitments, 
                including economy-wide emissions targets, policy-based 
                commitments, sectoral agreements, and no-regrets 
                targets;
                    (C) increase cooperation on clean and efficient 
                energy technologies and practices;
                    (D) target all greenhouse gases, including sources, 
                sinks, and reservoirs of greenhouse gases, and should 
                expand the current scope of the Kyoto Protocol and 
                Convention to sectors not covered, such as the 
                international aviation and maritime sectors;
                    (E) include mechanisms to harness market-based 
                solutions, building upon the joint implementation, 
                clean development mechanism, and international 
                emissions trading developed under the Protocol;
                    (F) include incentives for sustainable forestry 
                management that reflect the value of avoided 
                deforestation;
                    (G) address the need for adaptation, especially for 
                the most vulnerable and poorest countries on the 
                planet;
                    (H) consider the impact on United States industry 
                and contain effective mechanisms to protect United 
                States competitiveness; and
                    (I) include the perspectives and address the 
                concerns of impacted indigenous and tribal populations.
            (6) To seek international consensus on long-term objectives 
        including a target range for stabilizing greenhouse gas 
        concentrations. The target range should reflect the consensus 
        recommendations of Intergovernmental Panel on Climate Change 
        (IPCC) scientists, who believe that concentrations of 
        greenhouse gases in the Earth's atmosphere must be stabilized 
        at a level that would provide a reasonable chance of limiting 
        the rise in global temperatures to a level that might avert the 
        most dangerous impacts of climate change.

SEC. 2103. OFFICE ON GLOBAL CLIMATE CHANGE.

    (a) Establishment of Office.--There is established within the 
Department of State an Office on Global Climate Change (hereinafter in 
this section referred to as the ``Office'').
    (b) Head of Office.--
            (1) In general.--The head of the Office shall be the 
        Ambassador-at-Large for Global Climate Change (hereinafter in 
        this section referred to as the ``Ambassador-at-Large'').
            (2) Appointment.--The Ambassador-at-Large shall be 
        appointed by the President, by and with the advice and consent 
        of the Senate.
    (c) Duties.--
            (1) In general.--The primary responsibility of the 
        Ambassador-at-Large shall be to advance the goals of the United 
        States with respect to reducing the emissions of global 
        greenhouse gases and addressing the challenges posed by global 
        climate change.
            (2) Advisory role.--The Ambassador-at-Large--
                    (A) shall be a principal adviser to the President 
                and the Secretary of State on matters relating to 
                global climate change; and
                    (B) shall make recommendations to the President and 
                the Secretary of State on policies of the United States 
                Government with respect to international cooperation on 
                reducing the emission of global greenhouse gases and 
                addressing the challenges posed by global climate 
                change.
            (3) Diplomatic representation.--Subject to the direction of 
        the President and the Secretary of State, the Ambassador-at-
        Large is authorized to represent the United States in matters 
        relating to global climate change in--
                    (A) contacts with foreign governments, 
                intergovernmental organizations, and specialized 
                agencies of the United Nations, the Organization on 
                Security and Cooperation in Europe, and other 
                international organizations of which the United States 
                is a member; and
                    (B) multilateral conferences and meetings relating 
                to global climate change.
    (d) Funding.--The Secretary of State shall provide the Ambassador-
at-Large with such funds as may be necessary for the hiring of staff 
for the Office, the conduct of investigations by the Office, and for 
necessary travel to carry out the provisions of this section.
    (e) Report.--Not later than September 1 of each year, the Secretary 
of State, with the assistance of the Ambassador-at-Large, shall prepare 
and submit to the appropriate congressional committees a report on the 
strategy, policies, and actions of the United States for reducing the 
emissions of global greenhouse gases and addressing the challenges 
posed of global climate change.

     Subtitle B--Assistance to Promote Clean and Efficient Energy 
                   Technologies in Foreign Countries

SEC. 2201. CONGRESSIONAL FINDINGS.

    Congress makes the following findings:
            (1) Several provisions of the Energy Policy Act of 1992 
        were designed to expand Federal programs that support renewable 
        energy and energy efficient equipment exports and to broaden 
        the portfolio of programs to include training and technology 
        transfer activities that help promote development in less 
        industrialized nations, expand global markets, and reduce 
        greenhouse gas emissions. However, few of the export-related 
        provisions of the Energy Policy Act of 1992 were implemented 
        due to a lack of Federal funding.
            (2) In 2000, Congress called for several United States 
        Government agencies to create an Interagency Working Group to 
        support a Clean Energy Technology Exports Initiative to use the 
        combined resources of various agencies to promote the export of 
        clean energy technologies abroad. The Initiative also suffered 
        from low levels of Federal funding and has not produced 
        significant results.
            (3) Large and emerging economies, such as India and China, 
        play significant roles in the global energy security system as 
        large consumers of energy and should be included as member 
        countries in the International Energy Agency to strengthen the 
        common interest of importers in encouraging transparent energy 
        markets and in planning for supply disruptions.
            (4) The challenge of energy security severely affects 
        developing countries where over 1.6 billion people lack access 
        to affordable energy services. In these nations, a lack of 
        transparency and accountability creates a climate of mistrust 
        for investors; bilateral and multilateral lending institutions 
        do not provide sufficient incentives to companies investing in 
        clean and efficient energy technologies; women and children 
        suffer disproportionately due to the lack of energy services; 
        inaccessibility of energy services impedes other development 
        programs in education, health, agriculture, and the 
        environment; and dependence on imported fuels leaves countries 
        vulnerable to supply disruptions and economic shocks.
            (5) In addition to promoting the export of clean energy 
        technologies, large energy-consuming economies must also have 
        appropriate incentive systems, policy and regulatory 
        frameworks, and investment climates in place to accept and 
        promote the adoption of such technologies.
            (6) More than $16 trillion needs to be invested in energy-
        supply infrastructure worldwide by 2030 to meet energy demand, 
        and almost half of total energy investment will take place in 
        developing countries, where production and demand are expected 
        to increase the most.
            (7) Public and private sector capital will be needed to 
        fulfill future demand. The opportunity exists for public and 
        private actors to coordinate efforts and leverage resources to 
        direct this investment into technologies, practices, and 
        services that promote energy efficiency, clean-energy 
        production, and a reduction in global greenhouse gas emissions.
            (8) In attempting to address the global climate change 
        challenge, the United States Government recently launched the 
        Asia Pacific Partnership on Clean Development and Climate, 
        which is meant to accelerate the development and deployment of 
        clean energy technologies. However, this Partnership operates 
        in a non-binding framework that does not require any emissions 
        reductions from the partner countries.

SEC. 2202. UNITED STATES ASSISTANCE FOR DEVELOPING COUNTRIES.

    (a) Assistance Authorized.--The Administrator of the United States 
Agency for International Development shall support policies and 
programs in developing countries that promote clean and efficient 
energy technologies--
            (1) to produce the necessary market conditions for the 
        private sector delivery of energy and environmental management 
        services;
            (2) to create an environment that is conducive to accepting 
        clean and efficient energy technologies that support the 
        overall purpose of reducing greenhouse gas emissions, 
        including--
                    (A) improving policy, legal, and regulatory 
                frameworks;
                    (B) increasing institutional abilities to provide 
                energy and environmental management services; and
                    (C) increasing public awareness and participation 
                in the decision-making of delivering energy and 
                environmental management services; and
            (3) to promote the use of American-made clean and efficient 
        energy technologies, products, and energy and environmental 
        management services.
    (b) Report.--The Administrator of the United States Agency for 
International Development shall submit to the appropriate committees an 
annual report on the implementation of this section for each of the 
fiscal years 2008 through 2012.
    (c) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated to the Administrator of the 
United States Agency for International Development $200,000,000 for 
each of the fiscal years 2008 through 2012.

SEC. 2203. UNITED STATES EXPORTS AND OUTREACH PROGRAMS FOR INDIA, 
              CHINA, AND OTHER COUNTRIES.

    (a) Assistance Authorized.--The Secretary of Commerce shall direct 
the United States and Foreign Commercial Service to expand or create a 
corps of the Foreign Commercial Service officers to promote United 
States exports in clean and efficient energy technologies and build the 
capacity of government officials in India, China, and any other country 
the Secretary of Commerce determines appropriate, to become more 
familiar with the available technologies--
            (1) by assigning or training Foreign Commercial Service 
        attaches, who have expertise in clean and efficient energy 
        technologies from the United States, to embark on business 
        development and outreach efforts to India and China; and
            (2) by deploying the attaches described in paragraph (1) to 
        educate provincial, state, and local government officials in 
        India and China on the variety of United States-based 
        technologies in clean and efficient energy technologies for the 
        purposes of promoting United States exports and reducing global 
        greenhouse gas emissions.
    (b) Report.--The Secretary of Commerce shall submit to the 
appropriate committees an annual report on the implementation of this 
section for each of the fiscal years 2008 through 2012.
    (c) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated to the Secretary of Commerce 
such sums as may be necessary for each of the fiscal years 2008 through 
2012.

SEC. 2204. UNITED STATES TRADE MISSIONS TO ENCOURAGE PRIVATE SECTOR 
              TRADE AND INVESTMENT.

    (a) Assistance Authorized.--The Secretary of Commerce shall direct 
the International Trade Administration to expand or create trade 
missions to and from the United States to encourage private sector 
trade and investment in clean and efficient energy technologies--
            (1) by organizing and facilitating trade missions to 
        foreign countries and by matching United States private sector 
        companies with opportunities in foreign markets so that clean 
        and efficient energy technologies can help to combat increases 
        in global greenhouse gas emissions; and
            (2) by creating reverse trade missions in which the 
        Department of Commerce facilitates the meeting of foreign 
        private and public sector organizations with private sector 
        companies in the United States for the purpose of showcasing 
        clean and efficient energy technologies in use or in 
        development that could be exported to other countries.
    (b) Report.--The Secretary of Commerce shall submit to the 
appropriate committees an annual report on the implementation of this 
section for each of the fiscal years 2008 through 2012.
    (c) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated to the Secretary of Commerce 
such sums as may be necessary for each of the fiscal years 2008 through 
2012.

SEC. 2205. ACTIONS BY OVERSEAS PRIVATE INVESTMENT CORPORATION.

    (a) Findings.--Congress finds the following:
            (1) Many of the emerging markets within which the Overseas 
        Private Investment Corporation supports projects have immense 
        energy needs and will require significant investment in the 
        energy sector in the coming decades.
            (2) The use, or lack of use, of clean and efficient energy 
        technologies can have a dramatic effect on the rate of global 
        greenhouse gas emissions from emerging markets in the coming 
        decades.
    (b) Sense of Congress.--It is the sense of Congress that the 
Overseas Private Investment Corporation should promote greater 
investment in clean and efficient energy technologies by--
            (1) proactively reaching out to United States companies 
        that are interested in investing in clean and efficient energy 
        technologies in countries that are significant contributors to 
        global greenhouse gas emissions;
            (2) giving preferential treatment to the evaluation and 
        awarding of projects that involve the investment or utilization 
        of clean and efficient energy technologies; and
            (3) providing greater flexibility in supporting projects 
        that involve the investment or utilization of clean and 
        efficient energy technologies, including financing, insurance, 
        and other assistance.
    (c) Report.--The Overseas Private Investment Corporation shall 
include in its annual report required under section 240A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2200a)--
            (1) a description of the activities carried out to 
        implement this section; or
            (2) if the Corporation did not carry out any activities to 
        implement this section, an explanation of the reasons therefor.

SEC. 2206. ACTIONS BY UNITED STATES TRADE AND DEVELOPMENT AGENCY.

    (a) Assistance Authorized.--The Director of the Trade and 
Development Agency shall establish or support policies that--
            (1) proactively seek opportunities to fund projects that 
        involve the utilization of clean and efficient energy 
        technologies, including in trade capacity building and capital 
        investment projects;
            (2) give preferential treatment to the evaluation and 
        awarding of projects that involve the utilization of clean and 
        efficient energy technologies, particularly to countries that 
        have the potential for significant reduction in greenhouse gas 
        emissions; and
            (3) recruit and retain individuals with appropriate 
        expertise in clean, renewable, and efficient energy 
        technologies to identify and evaluate opportunities for 
        projects that involve clean and efficient energy technologies 
        and services.
    (b) Report.--The President shall include in the annual report on 
the activities of the Trade and Development Agency required under 
section 661(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2421(d)) a description of the activities carried out to implement this 
section.

SEC. 2207. GLOBAL CLIMATE CHANGE EXCHANGE PROGRAM.

    (a) Program Authorized.--The Secretary of State is authorized to 
establish a program to strengthen research, educational exchange, and 
international cooperation with the aim of reducing global greenhouse 
gas emissions and addressing the challenges posed by global climate 
change. The program authorized by this subsection shall be carried out 
pursuant to the authorities of the Mutual Educational and Cultural 
Exchange Act of 1961 (22 U.S.C. 2451 et seq.) and may be referred to as 
the ``Global Climate Change Exchange Program''.
    (b) Elements.--The program authorized by subsection (a) shall 
contain the following elements:
            (1) The financing of studies, research, instruction, and 
        other educational activities dedicated to reducing carbon 
        emissions and addressing the challenge of global climate 
        change--
                    (A) by or to United States citizens and nationals 
                in foreign universities, governments, organizations, 
                companies, or other institutions; and
                    (B) by or to citizens and nationals of foreign 
                countries in United States universities, governments, 
                organizations, companies, or other institutions.
            (2) The financing of visits and exchanges between the 
        United States and other countries of students, trainees, 
        teachers, instructors, professors, researchers, and other 
        persons who study, teach, and conduct research in subjects such 
        as the physical sciences, environmental science, public policy, 
        economics, urban planning, and other subjects and focus on 
        reducing greenhouse gas emissions and addressing the challenges 
        posed by global climate change.
    (c) Access.--The Secretary of State shall ensure that the program 
authorized by subsection (a) is available to--
            (1) historically Black colleges and universities that are 
        part B institutions (as such term is defined in section 322(2) 
        of the Higher Education Act of 1965 (20 U.S.C. 1061(2))), 
        Hispanic-serving institutions (as such term is defined in 
        section 502(5) of such Act (20 U.S.C. 1101a(5))), Tribal 
        Colleges or Universities (as such term is defined in section 
        316 of such Act (20 U.S.C. 1059c)), and other minority 
        institutions (as such term is defined in section 365(3) of such 
        Act (20 U.S.C. 1067k(3))), and to the students, faculty, and 
        researchers at such colleges, universities, and institutions; 
        and
            (2) small business concerns owned and controlled by 
        socially and economically disadvantaged individuals, and small 
        business concerns owned and controlled by women (as such terms 
        are defined in section 8(d)(3) of the Small Business Act (15 
        U.S.C. 637(d)(3))).
    (d) Report.--The Secretary of State shall transmit to the 
appropriate committees an annual report on the implementation of this 
section for each of the fiscal years 2008 through 2012.
    (e) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated to the Secretary of State 
$3,000,000 for each of the fiscal years 2008 through 2012.

SEC. 2208. INTERAGENCY WORKING GROUP TO SUPPORT A CLEAN ENERGY 
              TECHNOLOGY EXPORTS INITIATIVE.

    (a) Assistance Authorized.--The President shall provide assistance 
to the Interagency Working Group to support a Clean Energy Technology 
Exports Initiative--
            (1) to improve the ability of the United States to respond 
        to international competition by leveraging the resources of 
        Federal departments and agencies effectively and efficiently 
        and by raising policy issues that may hamper the export of 
        United States clean energy technologies abroad;
            (2) to fulfill, as appropriate, the mission and objectives 
        as noted in the report entitled, Five-Year Strategic Plan of 
        the Clean Energy Technology Exports Initiative, submitted to 
        Congress in October 2002; and
            (3) to raise the importance and level of oversight of the 
        Interagency Working Group to the heads of the Federal 
        departments and agencies that are participating in the 
        Interagency Working Group.
    (b) Report.--The Administrator of the United States Agency for 
International Development, the Secretary of Commerce, and the Secretary 
of Energy shall jointly submit to the appropriate committees an annual 
report on the implementation of this section for each of the fiscal 
years 2008 through 2012.
    (c) Authorization of Appropriations.--To carry out this section, 
there are authorized to appropriated to the President $5,000,000 for 
each of the fiscal years 2008 through 2012.

           Subtitle C--International Clean Energy Foundation

SEC. 2301. DEFINITIONS.

    In this subtitle:
            (1) Board.--The term ``Board'' means the Board of Directors 
        of the Foundation established pursuant to section 2302(c).
            (2) Chief executive officer.--The term ``Chief Executive 
        Officer'' means the chief executive officer of the Foundation 
        appointed pursuant to section 2302(b).
            (3) Foundation.--The term ``Foundation'' means the 
        International Clean Energy Foundation established by section 
        2302(a).

SEC. 2302. ESTABLISHMENT AND MANAGEMENT OF FOUNDATION.

    (a) Establishment.--
            (1) In general.--There is established in the executive 
        branch a foundation to be known as the ``International Clean 
        Energy Foundation'' that shall be responsible for carrying out 
        the provisions of this subtitle. The Foundation shall be a 
        government corporation, as defined in section 103 of title 5, 
        United States Code.
            (2) Board of directors.--The Foundation shall be governed 
        by a Board of Directors chaired by the Secretary of State (or 
        the Secretary's designee) in accordance with subsection (d).
            (3) Intent of congress.--It is the intent of Congress, in 
        establishing the structure of the Foundation set forth in this 
        subsection, to create an entity that serves the long-term 
        foreign policy and energy security goals of reducing global 
        greenhouse gas emissions.
    (b) Chief Executive Officer.--
            (1) In general.--There shall be in the Foundation a Chief 
        Executive Officer who shall be responsible for the management 
        of the Foundation.
            (2) Appointment.--The Chief Executive Officer shall be 
        appointed by the Board, with the advice and consent of the 
        Senate, and shall be a recognized leader in clean and efficient 
        energy technologies and climate change and shall have 
        experience in energy security, business, or foreign policy, 
        chosen on the basis of a rigorous search.
            (3) Relationship to board.--The Chief Executive Officer 
        shall report to, and be under the direct authority of, the 
        Board.
            (4) Compensation and rank.--
                    (A) In general.--The Chief Executive Officer shall 
                be compensated at the rate provided for level III of 
                the Executive Schedule under section 5314 of title 5, 
                United States Code.
                    (B) Amendment.--Section 5314 of title 5, United 
                States Code, is amended by adding at the end the 
                following:
        ``Chief Executive Officer, International Clean Energy 
        Foundation.''.
                    (C) Authorities and duties.--The Chief Executive 
                Officer shall be responsible for the management of the 
                Foundation and shall exercise the powers and discharge 
                the duties of the Foundation.
                    (D) Authority to appoint officers.--In consultation 
                and with approval of the Board, the Chief Executive 
                Officer shall appoint all officers of the Foundation.
    (c) Board of Directors.--
            (1) Establishment.--There shall be in the Foundation a 
        Board of Directors.
            (2) Duties.--The Board shall perform the functions 
        specified to be carried out by the Board in this subtitle and 
        may prescribe, amend, and repeal bylaws, rules, regulations, 
        and procedures governing the manner in which the business of 
        the Foundation may be conducted and in which the powers granted 
        to it by law may be exercised.
            (3) Membership.--The Board shall consist of--
                    (A) the Secretary of State (or the Secretary's 
                designee), the Secretary of Energy (or the Secretary's 
                designee), and the Administrator of the United States 
                Agency for International Development (or the 
                Administrator's designee); and
                    (B) four other individuals with relevant experience 
                in matters relating to energy security (such as 
                individuals who represent institutions of energy 
                policy, business organizations, foreign policy 
                organizations, or other relevant organizations) who 
                shall be appointed by the President, by and with the 
                advice and consent of the Senate, of which--
                            (i) one individual shall be appointed from 
                        among a list of individuals submitted by the 
                        majority leader of the House of 
                        Representatives;
                            (ii) one individual shall be appointed from 
                        among a list of individuals submitted by the 
                        minority leader of the House of 
                        Representatives;
                            (iii) one individual shall be appointed 
                        from among a list of individuals submitted by 
                        the majority leader of the Senate; and
                            (iv) one individual shall be appointed from 
                        among a list of individuals submitted by the 
                        minority leader of the Senate.
            (4) Chief executive officer.--The Chief Executive Officer 
        of the Foundation shall serve as a nonvoting, ex officio member 
        of the Board.
            (5) Terms.--
                    (A) Officers of the federal government.--Each 
                member of the Board described in paragraph (3)(A) shall 
                serve for a term that is concurrent with the term of 
                service of the individual's position as an officer 
                within the other Federal department or agency.
                    (B) Other members.--Each member of the Board 
                described in paragraph (3)(B) shall be appointed for a 
                term of 3 years and may be reappointed for a term of an 
                additional 3 years.
                    (C) Vacancies.--A vacancy in the Board shall be 
                filled in the manner in which the original appointment 
                was made.
                    (D) Acting members.--A vacancy in the Board may be 
                filled with an appointment of an acting member by the 
                Chairperson of the Board for up to 1 year while a 
                nominee is named and awaits confirmation in accordance 
                with paragraph (3)(B).
            (6) Chairperson.--There shall be a Chairperson of the 
        Board. The Secretary of State (or the Secretary's designee) 
        shall serve as the Chairperson.
            (7) Quorum.--A majority of the members of the Board 
        described in paragraph (3) shall constitute a quorum, which, 
        except with respect to a meeting of the Board during the 135-
        day period beginning on the date of the enactment of this Act, 
        shall include at least 1 member of the Board described in 
        paragraph (3)(B).
            (8) Meetings.--The Board shall meet at the call of the 
        Chairperson, who shall call a meeting no less than once a year.
            (9) Compensation.--
                    (A) Officers of the federal government.--
                            (i) In general.--A member of the Board 
                        described in paragraph (3)(A) may not receive 
                        additional pay, allowances, or benefits by 
                        reason of the member's service on the Board.
                            (ii) Travel expenses.--Each such member of 
                        the Board shall receive travel expenses, 
                        including per diem in lieu of subsistence, in 
                        accordance with applicable provisions under 
                        subchapter I of chapter 57 of title 5, United 
                        States Code.
                    (B) Other members.--
                            (i) In general.--Except as provided in 
                        clause (ii), a member of the Board described in 
                        paragraph (3)(B)--
                                    (I) shall be paid compensation out 
                                of funds made available for the 
                                purposes of this subtitle at the daily 
                                equivalent of the highest rate payable 
                                under section 5332 of title 5, United 
                                States Code, for each day (including 
                                travel time) during which the member is 
                                engaged in the actual performance of 
                                duties as a member of the Board; and
                                    (II) while away from the member's 
                                home or regular place of business on 
                                necessary travel in the actual 
                                performance of duties as a member of 
                                the Board, shall be paid per diem, 
                                travel, and transportation expenses in 
                                the same manner as is provided under 
                                subchapter I of chapter 57 of title 5, 
                                United States Code.
                            (ii) Limitation.--A member of the Board may 
                        not be paid compensation under clause (i)(II) 
                        for more than 90 days in any calendar year.

SEC. 2303. DUTIES OF FOUNDATION.

    The Foundation shall--
            (1) use the funds authorized by this subtitle to make 
        grants to promote projects outside of the United States that 
        serve as models of how to significantly reduce the emissions of 
        global greenhouse gases through clean and efficient energy 
        technologies, processes, and services;
            (2) seek contributions from foreign governments, especially 
        those rich in energy resources such as member countries of the 
        Organization of the Petroleum Exporting Countries, and private 
        organizations to supplement funds made available under this 
        subtitle;
            (3) harness global expertise through collaborative 
        partnerships with foreign governments and domestic and foreign 
        private actors, including nongovernmental organizations and 
        private sector companies, by leveraging public and private 
        capital, technology, expertise, and services towards innovative 
        models that can be instituted to reduce global greenhouse gas 
        emissions;
            (4) create a repository of information on best practices 
        and lessons learned on the utilization and implementation of 
        clean and efficient energy technologies and processes to be 
        used for future initiatives to tackle the climate change 
        crisis;
            (5) be committed to minimizing administrative costs and to 
        maximizing the availability of funds for grants under this 
        subtitle; and
            (6) promote the use of American-made clean and efficient 
        energy technologies, processes, and services.

SEC. 2304. ANNUAL REPORT.

    (a) Report Required.--Not later than March 31, 2008, and each March 
31 thereafter, the Foundation shall submit to the appropriate 
congressional committees a report on the implementation of this 
subtitle during the prior fiscal year.
    (b) Contents.--The report required by subsection (a) shall 
include--
            (1) the total financial resources available to the 
        Foundation during the year, including appropriated funds, the 
        value and source of any gifts or donations accepted pursuant to 
        section 2305(a)(6), and any other resources;
            (2) a description of the Board's policy priorities for the 
        year and the basis upon which competitive grant proposals were 
        solicited and awarded to nongovernmental institutions and other 
        organizations;
            (3) a list of grants made to nongovernmental institutions 
        and other organizations that includes the identity of the 
        institutional recipient, the dollar amount, and the results of 
        the program; and
            (4) the total administrative and operating expenses of the 
        Foundation for the year, as well as specific information on--
                    (A) the number of Foundation employees and the cost 
                of compensation for Board members, Foundation 
                employees, and personal service contractors;
                    (B) costs associated with securing the use of real 
                property for carrying out the functions of the 
                Foundation;
                    (C) total travel expenses incurred by Board members 
                and Foundation employees in connection with Foundation 
                activities; and
                    (D) total representational expenses.

SEC. 2305. POWERS OF THE FOUNDATION; RELATED PROVISIONS.

    (a) Powers.--The Foundation--
            (1) shall have perpetual succession unless dissolved by a 
        law enacted after the date of the enactment of this Act;
            (2) may adopt, alter, and use a seal, which shall be 
        judicially noticed;
            (3) may make and perform such contracts, grants, and other 
        agreements with any person or government however designated and 
        wherever situated, as may be necessary for carrying out the 
        functions of the Foundation;
            (4) may determine and prescribe the manner in which its 
        obligations shall be incurred and its expenses allowed and 
        paid, including expenses for representation;
            (5) may lease, purchase, or otherwise acquire, improve, and 
        use such real property wherever situated, as may be necessary 
        for carrying out the functions of the Foundation;
            (6) may accept money, funds, services, or property (real, 
        personal, or mixed), tangible or intangible, made available by 
        gift, bequest grant, or otherwise for the purpose of carrying 
        out the provisions of this title from domestic or foreign 
        private individuals, charities, nongovernmental organizations, 
        corporations, or governments;
            (7) may use the United States mails in the same manner and 
        on the same conditions as the executive departments;
            (8) may contract with individuals for personal services, 
        who shall not be considered Federal employees for any provision 
        of law administered by the Office of Personnel Management;
            (9) may hire or obtain passenger motor vehicles; and
            (10) shall have such other powers as may be necessary and 
        incident to carrying out this subtitle.
    (b) Principal Office.--The Foundation shall maintain its principal 
office in the metropolitan area of Washington, District of Columbia.
    (c) Applicability of Government Corporation Control Act.--
            (1) In general.--The Foundation shall be subject to chapter 
        91 of subtitle VI of title 31, United States Code, except that 
        the Foundation shall not be authorized to issue obligations or 
        offer obligations to the public.
            (2) Conforming amendment.--Section 9101(3) of title 31, 
        United States Code, is amended by adding at the end the 
        following:
                    ``(R) the International Clean Energy Foundation.''.
    (d) Inspector General.--
            (1) In general.--The Inspector General of the Department of 
        State shall serve as Inspector General of the Foundation, and, 
        in acting in such capacity, may conduct reviews, 
        investigations, and inspections of all aspects of the 
        operations and activities of the Foundation.
            (2) Authority of the board.--In carrying out the 
        responsibilities under this subsection, the Inspector General 
        shall report to and be under the general supervision of the 
        Board.
            (3) Reimbursement and authorization of services.--
                    (A) Reimbursement.--The Foundation shall reimburse 
                the Department of State for all expenses incurred by 
                the Inspector General in connection with the Inspector 
                General's responsibilities under this subsection.
                    (B) Authorization for services.--Of the amount 
                authorized to be appropriated under section 2307(a) for 
                a fiscal year, up to $500,000 is authorized to be made 
                available to the Inspector General of the Department of 
                State to conduct reviews, investigations, and 
                inspections of operations and activities of the 
                Foundation.

SEC. 2306. GENERAL PERSONNEL AUTHORITIES.

    (a) Detail of Personnel.--Upon request of the Chief Executive 
Officer, the head of an agency may detail any employee of such agency 
to the Foundation on a reimbursable basis. Any employee so detailed 
remains, for the purpose of preserving such employee's allowances, 
privileges, rights, seniority, and other benefits, an employee of the 
agency from which detailed.
    (b) Reemployment Rights.--
            (1) In general.--An employee of an agency who is serving 
        under a career or career conditional appointment (or the 
        equivalent), and who, with the consent of the head of such 
        agency, transfers to the Foundation, is entitled to be 
        reemployed in such employee's former position or a position of 
        like seniority, status, and pay in such agency, if such 
        employee--
                    (A) is separated from the Foundation for any 
                reason, other than misconduct, neglect of duty, or 
                malfeasance; and
                    (B) applies for reemployment not later than 90 days 
                after the date of separation from the Foundation.
            (2) Specific rights.--An employee who satisfies paragraph 
        (1) is entitled to be reemployed (in accordance with such 
        paragraph) within 30 days after applying for reemployment and, 
        on reemployment, is entitled to at least the rate of basic pay 
        to which such employee would have been entitled had such 
        employee never transferred.
    (c) Hiring Authority.--Of persons employed by the Foundation, no 
more than 30 persons may be appointed, compensated, or removed without 
regard to the civil service laws and regulations.
    (d) Basic Pay.--The Chief Executive Officer may fix the rate of 
basic pay of employees of the Foundation without regard to the 
provisions of chapter 51 of title 5, United States Code (relating to 
the classification of positions), subchapter III of chapter 53 of such 
title (relating to General Schedule pay rates), except that no employee 
of the Foundation may receive a rate of basic pay that exceeds the rate 
for level IV of the Executive Schedule under section 5315 of such 
title.
    (e) Definitions.--In this section--
            (1) the term ``agency'' means an executive agency, as 
        defined by section 105 of title 5, United States Code; and
            (2) the term ``detail'' means the assignment or loan of an 
        employee, without a change of position, from the agency by 
        which such employee is employed to the Foundation.

SEC. 2307. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--To carry out this subtitle, 
there are authorized to be appropriated $20,000,000 for each of the 
fiscal years 2008 through 2012.
    (b) Allocation of Funds.--
            (1) In general.--The Foundation may allocate or transfer to 
        any agency of the United States Government any of the funds 
        available for carrying out this subtitle. Such funds shall be 
        available for obligation and expenditure for the purposes for 
        which the funds were authorized, in accordance with authority 
        granted in this subtitle or under authority governing the 
        activities of the United States Government agency to which such 
        funds are allocated or transferred.
            (2) Notification.--The Foundation shall notify the 
        appropriate congressional committees not less than 15 days 
        prior to an allocation or transfer of funds pursuant to 
        paragraph (1).

              TITLE III--SMALL ENERGY EFFICIENT BUSINESSES

SEC. 3001. SHORT TITLE.

    This title may be cited as the ``Small Energy Efficient Businesses 
Act''.

SEC. 3002. FINDINGS.

    Congress finds the following:
            (1) Energy efficiency is in our national interest for our 
        long term economic well being, for the health and safety of our 
        citizens and the world, and for our independence and security.
            (2) Small businesses are more efficient, nimble, and 
        innovative than large businesses and therefore more likely to 
        integrate and benefit from energy efficient technology advances 
        and upgrades, but they are less likely to have the capital to 
        institute these advances quickly.
            (3) The majority of businesses (two-thirds) say they have 
        been unable to invest in comprehensive energy efficiency 
        programs for their businesses thus far, though they know of 
        them and believe they are effective.
            (4) A pilot program has demonstrated that individualized 
        counseling and training combined with loan and grant 
        availability and other incentives are very popular and 
        effective in helping small businesses learn about and adopt 
        energy conservation methods.
            (5) The energy saving benefit of such programs, if they can 
        be implemented on a national basis, would contribute 
        significantly to our energy independence and security.
            (6) New and emerging technologies are on the rise, and 
        small businesses are leading the way, for example the vast 
        majority of renewable fuels producers, such as biodiesel and 
        ethanol, are small businesses.
            (7) Small businesses currently use almost half of the 
        Nation's business related energy consumption and employ half of 
        the Nation's workforce, yet the Energy Star program, the lead 
        Federal energy efficiency program allocates less than 2 percent 
        of its resources to its small business program and should 
        allocate more to educate small businesses.
            (8) Therefore, it is in the national interest for the 
        Federal Government to invest in incentives in the form of 
        improved loan terms, additional investment inducements, and 
        expert counseling and information to assist small businesses to 
        develop, invest in, and purchase energy efficient buildings, 
        equipment, fixtures, and other technology.

SEC. 3003. LARGER 504 LOAN LIMITS TO HELP BUSINESS DEVELOP ENERGY 
              EFFICIENT TECHNOLOGIES AND PURCHASES.

    (a) Eligibility for Energy Efficiency Projects.--Section 501(d)(3) 
of the Small Business Investment Act of 1958 (15 U.S.C. 695(d)(3)) is 
amended--
            (1) in subparagraph (G) by striking ``or'' at the end;
            (2) in subparagraph (H) by striking the period at the end 
        and inserting a comma; and
            (3) by inserting after subparagraph (H) the following:
                    ``(I) reduction of energy consumption by at least 
                10 percent,
                    ``(J) increased use of sustainable design or low-
                impact design to produce buildings that reduce the use 
                of non-renewable resources, minimize environmental 
                impact, and relate people with the natural environment, 
                or
                    ``(K) plant, equipment and process upgrades of 
                renewable energy sources such as micropower or 
                renewable fuels producers including biodiesel and 
                ethanol producers.''.
    (b) Loans for Plant Projects Used for Energy-Efficient Purposes.--
Section 502(2)(A) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)(A)) is amended--
            (1) in clause (ii) by striking ``and'' at the end;
            (2) in clause (iii) by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following new clauses:
                            ``(iv) $4,000,000 for each project that 
                        reduces the borrower's energy consumption by at 
                        least 10 percent; and
                            ``(v) $4,000,000 for each project that 
                        generates renewable energy or renewable fuels, 
                        such as biodiesel or ethanol production.''.

SEC. 3004. REDUCED 7(A) FEES AND HIGHER LOAN GUARANTEES FOR PURCHASE OF 
              ENERGY EFFICIENT TECHNOLOGIES.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following:
            ``(35) Loans for energy efficient technologies.--The 
        Administrator shall carry out a program for loans the proceeds 
        of which are used to purchase energy efficient equipment or 
        fixtures or to reduce the energy consumption of the borrower, 
        including, but not limited to, renewable fuels and energy 
        products such as biodiesel and ethanol, by 10 percent or more. 
        For a loan made under this paragraph, the following shall 
        apply:
                    ``(A) The loan shall include the participation by 
                the Administration equal to 90 percent of the balance 
                of the financing outstanding at the time of 
                disbursement.
                    ``(B) The fees on the loan under paragraphs (18) 
                and (23) shall be reduced by half.''.

SEC. 3005. SMALL BUSINESS SUSTAINABILITY INITIATIVE.

    Section 21 of the Small Business Act (15 U.S.C. 648) is amended by 
adding at the end the following:
    ``(n) Small Business Sustainability Initiative.--
            ``(1) In general.--A Small Business Development Center may 
        apply for an additional grant to carry out a small business 
        sustainability initiative program.
            ``(2) Elements of program.--Under a program under paragraph 
        (1), the Center shall--
                    ``(A) provide necessary support to smaller and 
                medium-sized businesses to--
                            ``(i) evaluate energy efficiency and green 
                        building opportunities;
                            ``(ii) evaluate renewable energy sources 
                        such as the use of solar and small wind to 
                        supplement power consumption;
                            ``(iii) secure financing to achieve energy 
                        efficiency or to construct green buildings; and
                            ``(iv) empower management to implement 
                        energy efficiency projects;
                    ``(B) assist entrepreneurs with clean technology 
                development and technology commercialization through--
                            ``(i) technology assessment;
                            ``(ii) intellectual property;
                            ``(iii) Small Business Innovation Research 
                        submissions;
                            ``(iv) strategic alliances;
                            ``(v) business model development; and
                            ``(vi) preparation for investors; and
                    ``(C) help small business improve environmental 
                performance by shifting to less hazardous materials and 
                reducing waste and emissions at the source, including 
                by providing assistance for businesses to adapt the 
                materials they use, the processes they operate, and the 
                products and services they produce.
            ``(3) Minimum amount.--Each grant under this subsection 
        shall be for at least $150,000.
            ``(4) Maximum amount.--A grant under this subsection may 
        not exceed $300,000.
            ``(5) Authorization of appropriations.--Subject to amounts 
        approved in advance in appropriations Acts and separate from 
        amounts approved to carry out section 21(a)(1), the 
        Administrator may make grants or enter into cooperative 
        agreements to carry out the provisions of this subsection.''.

SEC. 3006. SMALL BUSINESS ADMINISTRATION TO EDUCATE AND PROMOTE ENERGY 
              EFFICIENCY IDEAS TO SMALL BUSINESSES AND WORK WITH THE 
              SMALL BUSINESS COMMUNITY TO MAKE SUCH INFORMATION WIDELY 
              AVAILABLE.

    The Small Business Act is amended--
            (1) by redesignating section 37 as section 99; and
            (2) by inserting after section 36 (15 U.S.C. 657f) the 
        following:

``SEC. 37. PROGRAM TO PROVIDE EDUCATION ON ENERGY EFFICIENCY.

    ``(a) Program Required.--The Administrator shall develop and 
coordinate a Government-wide program, building on the Energy Star for 
Small Business program, to assist small businesses in--
            ``(1) becoming more energy efficient;
            ``(2) understanding the cost savings from improved energy 
        efficiency; and
            ``(3) identifying financing options for energy efficiency 
        upgrades.
    ``(b) Consultation and Cooperation.--The program required by 
subsection (a) shall be developed and coordinated--
            ``(1) in consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency; and
            ``(2) in cooperation with any entities the Administrator 
        considers appropriate, such as industry trade associations, 
        industry members, and energy efficiency organizations.
    ``(c) Availability of Information.--The Administrator shall make 
available the information and materials developed under the program 
required by subsection (a) to--
            ``(1) small businesses; and
            ``(2) other Federal programs for energy efficiency, such as 
        the Energy Star for Small Business program.
    ``(d) Strategy and Report.--
            ``(1) Strategy required.--The Administrator shall develop a 
        strategy to educate, encourage, and assist small business to 
        adopt energy efficient building fixtures and equipment.
            ``(2) Report.--Not later than December 31, 2008, the 
        Administrator shall submit to Congress a report containing a 
        plan to implement the strategy.''.

SEC. 3007. ENERGY SAVING DEBENTURES.

    Section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 
683) is amended by adding at the end the following new subsection:
    ``(k) Energy Saving Debentures.--
            ``(1) In general.--In addition to any other authority under 
        this Act, a small business investment company licensed after 
        September 30, 2007, shall have authority to issue Energy Saving 
        debentures.
            ``(2) Energy saving debenture defined.--As used in this 
        Act, the term `Energy Saving debenture' means a deferred 
        interest debenture that--
                    ``(A) is issued at a discount;
                    ``(B) has a five-year maturity or a ten-year 
                maturity;
                    ``(C) requires no interest payment or annual charge 
                for the first five years;
                    ``(D) is restricted to Energy Saving qualified 
                investments; and
                    ``(E) is issued at no cost (as defined in section 
                502 of the Credit Reform Act of 1990) with respect to 
                purchasing and guaranteeing the debenture.
            ``(3) Energy saving qualified investment defined.--As used 
        in this Act, the term `Energy Saving qualified investment' 
        means investment in a small business that is primarily engaged 
        in researching, manufacturing, developing, or providing 
        products, goods, or services that reduce the use or consumption 
        of non-renewable energy resources.''.

SEC. 3008. INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES.

    (a) Maximum Leverage.--Paragraph (2) of subsection (b) of section 
303 of the Small Business Investment Act of 1958 (15 U.S.C. 303(b)(2)) 
is amended by adding at the end the following new subparagraph:
                    ``(D) Investments in energy saving small 
                businesses.--In calculating the outstanding leverage of 
                a company for purposes of subparagraph (A), the 
                Administrator shall not include the amount of the cost 
                basis of any Energy Saving qualified investment (as 
                defined in subsection (k)) made after September 30, 
                2007, by a company licensed after September 30, 2007, 
                in a smaller enterprise, to the extent that the total 
                of such amounts does not exceed 50 percent of the 
                company's private capital, subject to such terms as the 
                Administrator may impose to assure no cost (as defined 
                in section 502 of the Federal Credit Reform Act of 
                1990) with respect to purchasing or guaranteeing any 
                debenture involved.''.
    (b) Maximum Aggregate Amount of Leverage.--Paragraph (4) of 
subsection (b) of section 303 of the Small Business Investment Act of 
1958 (15 U.S.C. 303(b)(4)) is amended by adding at the end the 
following new subparagraph:
                    ``(E) Investments in energy saving small 
                businesses.--In calculating the aggregate outstanding 
                leverage of a company for purposes of subparagraph (A), 
                the Administrator shall not include the amount of the 
                cost basis of any Energy Saving qualified investment 
                (as defined in subsection (k)) made after September 30, 
                2007, by a company licensed after September 30, 2007, 
                in a smaller enterprise, to the extent that the total 
                of such amounts does not exceed 50 percent of the 
                company's private capital, subject to such terms as the 
                Administrator may impose to assure no cost (as defined 
                in section 502 of the Federal Credit Reform Act of 
                1990) with respect to purchasing or guaranteeing any 
                debenture involved.''.

SEC. 3009. RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.

    Title III of the Small Business Investment Act of 1958 (15 U.S.C. 
681 et seq.) is amended by adding at the end the following new part:

       ``PART C--RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM

``SEC. 381. DEFINITIONS.

    ``In this part, the following definitions apply:
            ``(1) Venture capital.--The term `venture capital' means 
        capital in the form of equity capital investments. For the 
        purposes of this paragraph, the term `equity capital' has the 
        same meaning given such term in section 303(g)(4).
            ``(2) Renewable fuel capital investment company.--The term 
        `Renewable Fuel Capital Investment Company' means a company 
        that--
                    ``(A) has been granted final approval by the 
                Administrator under section 384(e); and
                    ``(B) has entered into a participation agreement 
                with the Administrator.
            ``(3) Operational assistance.--The term `operational 
        assistance' means management, marketing, and other technical 
        assistance that assists a small business concern with business 
        development.
            ``(4) Participation agreement.--The term `participation 
        agreement' means an agreement, between the Administrator and a 
        company granted final approval under section 384(e), that--
                    ``(A) details the company's operating plan and 
                investment criteria; and
                    ``(B) requires the company to make investments in 
                smaller enterprises primarily engaged in researching, 
                manufacturing, developing, or bringing to market 
                renewable energy sources.
            ``(5) Renewable energy.--The term `renewable energy means' 
        energy derived from resources that are regenerative or that 
        cannot be depleted, including but not limited to ethanol and 
        biodiesel fuels.
            ``(6) State.--The term `State' means such of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States.

``SEC. 382. PURPOSES.

    ``The purposes of the Renewable Fuel Capital Investment Program 
established under this part are--
            ``(1) to promote the research, development, manufacture and 
        bringing to market of renewable energy sources by encouraging 
        venture capital investments in smaller enterprises primarily 
        engaged such activities; and
            ``(2) to establish a venture capital program, with the 
        mission of addressing the unmet equity investment needs of 
        small enterprises engaged in researching, developing, 
        manufacturing, and bringing to market renewable energy sources, 
        to be administered by the Administrator--
                    ``(A) to enter into participation agreements with 
                Renewable Fuel Capital Investment companies;
                    ``(B) to guarantee debentures of Renewable Fuel 
                Capital Investment companies to enable each such 
                company to make venture capital investments in smaller 
                enterprises engaged in the research, development, 
                manufacture, and bringing to market renewable energy 
                sources; and
                    ``(C) to make grants to Renewable Fuel Investment 
                Capital companies, and to other entities, for the 
                purpose of providing operational assistance to smaller 
                enterprises financed, or expected to be financed, by 
                such companies.

``SEC. 383. ESTABLISHMENT.

    ``In accordance with this part, the Administrator shall establish a 
Renewable Fuel Capital Investment Program, under which the 
Administrator may--
            ``(1) enter into participation agreements with companies 
        granted final approval under section 384(e) for the purposes 
        set forth in section 382; and
            ``(2) guarantee the debentures issued by Renewable Fuel 
        Capital Investment companies as provided in section 385.

``SEC. 384. SELECTION OF RENEWABLE FUEL CAPITAL INVESTMENT COMPANIES.

    ``(a) Eligibility.--A company shall be eligible to apply to 
participate, as a Renewable Fuel Capital Investment company, in the 
program established under this part if--
            ``(1) the company is a newly formed for-profit entity or a 
        newly formed for-profit subsidiary of an existing entity;
            ``(2) the company has a management team with experience in 
        alternative energy financing or relevant venture capital 
        financing; and
            ``(3) the company has a primary objective of investment in 
        companies that research, manufacture, develop, or bring to 
        market renewable energy sources.
    ``(b) Application.--To participate, as a Renewable Fuel Capital 
Investment company, in the program established under this part a 
company meeting the eligibility requirements set forth in subsection 
(a) shall submit an application to the Administrator that includes--
            ``(1) a business plan describing how the company intends to 
        make successful venture capital investments in smaller 
        businesses primarily engaged in the research, manufacture, 
        development, or bringing to market of renewable energy sources;
            ``(2) information regarding the relevant venture capital 
        qualifications and general reputation of the company's 
        management;
            ``(3) a description of how the company intends to seek to 
        address the unmet capital needs of the smaller businesses 
        served;
            ``(4) a proposal describing how the company intends to use 
        the grant funds provided under this part to provide operational 
        assistance to smaller enterprises financed by the company, 
        including information regarding whether the company intends to 
        use licensed professionals when necessary on the company's 
        staff or from an outside entity;
            ``(5) with respect to binding commitments to be made to the 
        company under this part, an estimate of the ratio of cash to 
        in-kind contributions;
            ``(6) a description of the criteria to be used to evaluate 
        whether and to what extent the company meets the objectives of 
        the program established under this part;
            ``(7) information regarding the management and financial 
        strength of any parent firm, affiliated firm, or any other firm 
        essential to the success of the company's business plan; and
            ``(8) such other information as the Administrator may 
        require.
    ``(c) Conditional Approval.--
            ``(1) In general.--From among companies submitting 
        applications under subsection (b), the Administrator shall, in 
        accordance with this subsection, conditionally approve 
        companies to participate in the Renewable Fuel Capital 
        Investment Program.
            ``(2) Selection criteria.--In selecting companies under 
        paragraph (1), the Administrator shall consider the following:
                    ``(A) The likelihood that the company will meet the 
                goal of its business plan.
                    ``(B) The experience and background of the 
                company's management team.
                    ``(C) The need for venture capital investments in 
                the geographic areas in which the company intends to 
                invest.
                    ``(D) The extent to which the company will 
                concentrate its activities on serving the geographic 
                areas in which it intends to invest.
                    ``(E) The likelihood that the company will be able 
                to satisfy the conditions under subsection (d).
                    ``(F) The extent to which the activities proposed 
                by the company will expand economic opportunities in 
                the geographic areas in which the company intends to 
                invest.
                    ``(G) The strength of the company's proposal to 
                provide operational assistance under this part as the 
                proposal relates to the ability of the applicant to 
                meet applicable cash requirements and properly utilize 
                in-kind contributions, including the use of resources 
                for the services of licensed professionals, when 
                necessary, whether provided by persons on the company's 
                staff or by persons outside of the company.
                    ``(H) Any other factors deemed appropriate by the 
                Administrator.
            ``(3) Nationwide distribution.--The Administrator shall 
        select companies under paragraph (1) in such a way that 
        promotes investment nationwide.
    ``(d) Requirements To Be Met for Final Approval.--The Administrator 
shall grant each conditionally approved company a period of time, not 
to exceed 2 years, to satisfy the following requirements:
            ``(1) Capital requirement.--Each conditionally approved 
        company shall raise not less than $5,000,000 of private capital 
        or binding capital commitments from one or more investors 
        (other than agencies or departments of the Federal Government) 
        who met criteria established by the Administrator.
            ``(2) Nonadministration resources for operational 
        assistance.--
                    ``(A) In general.--In order to provide operational 
                assistance to smaller enterprises expected to be 
                financed by the company, each conditionally approved 
                company--
                            ``(i) shall have binding commitments (for 
                        contribution in cash or in kind)--
                                    ``(I) from any sources other than 
                                the Small Business Administration that 
                                meet criteria established by the 
                                Administrator;
                                    ``(II) payable or available over a 
                                multiyear period acceptable to the 
                                Administrator (not to exceed 10 years); 
                                and
                                    ``(III) in an amount not less than 
                                30 percent of the total amount of 
                                capital and commitments raised under 
                                paragraph (1);
                            ``(ii) shall have purchased an annuity--
                                    ``(I) from an insurance company 
                                acceptable to the Administrator;
                                    ``(II) using funds (other than the 
                                funds raised under paragraph (1)), from 
                                any source other than the 
                                Administrator; and
                                    ``(III) that yields cash payments 
                                over a multiyear period acceptable to 
                                the Administrator (not to exceed 10 
                                years) in an amount not less than 30 
                                percent of the total amount of capital 
                                and commitments raised under paragraph 
                                (1); or
                            ``(iii) shall have binding commitments (for 
                        contributions in cash or in kind) of the type 
                        described in clause (i) and shall have 
                        purchased an annuity of the type described in 
                        clause (ii), which in the aggregate make 
                        available, over a multiyear period acceptable 
                        to the Administrator (not to exceed 10 years), 
                        an amount not less than 30 percent of the total 
                        amount of capital and commitments raised under 
                        paragraph (1).
                    ``(B) Exception.--The Administrator may, in the 
                discretion of the Administrator and based upon a 
                showing of special circumstances and good cause, 
                consider an applicant to have satisfied the 
                requirements of subparagraph (A) if the applicant has--
                            ``(i) a viable plan that reasonably 
                        projects the capacity of the applicant to raise 
                        the amount (in cash or in-kind) required under 
                        subparagraph (A); and
                            ``(ii) binding commitments in an amount 
                        equal to not less than 20 percent of the total 
                        amount required under paragraph (A).
                    ``(C) Limitation.--In order to comply with the 
                requirements of subparagraphs (A) and (B), the total 
                amount of a company's in-kind contributions may not 
                exceed 50 percent of the company's total contributions.
    ``(e) Final Approval; Designation.--The Administrator shall, with 
respect to each applicant conditionally approved to operate as a 
Renewable Fuel Capital Investment Company under subsection (c), 
either--
            ``(1) grant final approval to the applicant to operate as a 
        Renewable Fuel Capital Investment company under this part and 
        designate the applicant as such a company, if the applicant--
                    ``(A) satisfies the requirements of subsection (d) 
                on or before the expiration of the time period 
                described in that subsection; and
                    ``(B) enters into a participation agreement with 
                the Administrator; or
            ``(2) if the applicant fails to satisfy the requirements of 
        subsection (d) on or before the expiration of the time period 
        described in that subsection, revoke the conditional approval 
        granted under that subsection.

``SEC. 385. DEBENTURES.

    ``(a) In General.--The Administrator may guarantee the timely 
payment of principal and interest, as scheduled, on debentures issued 
by any Renewable Fuel Capital Investment company.
    ``(b) Terms and Conditions.--The Administrator may make guarantees 
under this section on such terms and conditions as it deems 
appropriate, except that the term of any debenture guaranteed under 
this section shall not exceed 15 years.
    ``(c) Full Faith and Credit of the United States.--The full faith 
and credit of the United States is pledged to pay all amounts that may 
be required to be paid under any guarantee under this part.
    ``(d) Maximum Guarantee.--
            ``(1) In general.--Under this section, the Administrator 
        may guarantee the debentures issued by a Renewable Fuel Capital 
        Investment company only to the extent that the total face 
        amount of outstanding guaranteed debentures of such company 
        does not exceed 150 percent of the private capital of the 
        company, as determined by the Administrator.
            ``(2) Treatment of certain federal funds.--For the purposes 
        of paragraph (1), private capital shall include capital that is 
        considered to be Federal funds, if such capital is contributed 
        by an investor other than an agency or department of the 
        Federal Government.

``SEC. 386. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

    ``(a) Issuance.--The Administrator may issue trust certificates 
representing ownership of all or a fractional part of debentures issued 
by a Renewable Fuel Capital Investment company and guaranteed by the 
Administrator under this part, if such certificates are based on and 
backed by a trust or pool approved by the Administrator and composed 
solely of guaranteed debentures.
    ``(b) Guarantee.--
            ``(1) In general.--The Administrator may, under such terms 
        and conditions as it deems appropriate, guarantee the timely 
        payment of the principal of and interest on trust certificates 
        issued by the Administrator or its agents for purposes of this 
        section.
            ``(2) Limitation.--Each guarantee under this subsection 
        shall be limited to the extent of principal and interest on the 
        guaranteed debentures that compose the trust or pool.
            ``(3) Prepayment or default.--In the event that a debenture 
        in a trust or pool is prepaid, or in the event of default of 
        such a debenture, the guarantee of timely payment of principal 
        and interest on the trust certificates shall be reduced in 
        proportion to the amount of principal and interest such prepaid 
        debenture represents in the trust or pool. Interest on prepaid 
        or defaulted debentures shall accrue and be guaranteed by the 
        Administrator only through the date of payment of the 
        guarantee. At any time during its term, a trust certificate may 
        be called for redemption due to prepayment or default of all 
        debentures.
    ``(c) Full Faith and Credit of the United States.--The full faith 
and credit of the United States is pledged to pay all amounts that may 
be required to be paid under any guarantee of a trust certificate 
issued by the Administrator or its agents under this section.
    ``(d) Fees.--The Administrator shall not collect a fee for any 
guarantee of a trust certificate under this section, but any agent of 
the Administrator may collect a fee approved by the Administrator for 
the functions described in subsection (f )(2).
    ``(e) Subrogation and Ownership Rights.--
            ``(1) Subrogation.--In the event the Administrator pays a 
        claim under a guarantee issued under this section, it shall be 
        subrogated fully to the rights satisfied by such payment.
            ``(2) Ownership rights.--No Federal, State, or local law 
        shall preclude or limit the exercise by the Administrator of 
        its ownership rights in the debentures residing in a trust or 
        pool against which trust certificates are issued under this 
        section.
    ``(f) Management and Administration.--
            ``(1) Registration.--The Administrator may provide for a 
        central registration of all trust certificates issued under 
        this section.
            ``(2) Contracting of functions.--
                    ``(A) In general.--The Administrator may contract 
                with an agent or agents to carry out on behalf of the 
                Administrator the pooling and the central registration 
                functions provided for in this section including, 
                notwithstanding any other provision of law--
                            ``(i) maintenance, on behalf of and under 
                        the direction of the Administrator, of such 
                        commercial bank accounts or investments in 
                        obligations of the United States as may be 
                        necessary to facilitate the creation of trusts 
                        or pools backed by debentures guaranteed under 
                        this part; and
                            ``(ii) the issuance of trust certificates 
                        to facilitate the creation of such trusts or 
                        pools.
                    ``(B) Fidelity bond or insurance requirement.--Any 
                agent performing functions on behalf of the 
                Administrator under this paragraph shall provide a 
                fidelity bond or insurance in such amounts as the 
                Administrator determines to be necessary to fully 
                protect the interests of the United States.
            ``(3) Regulation of brokers and dealers.--The Administrator 
        may regulate brokers and dealers in trust certificates issued 
        under this section.
            ``(4) Electronic registration.--Nothing in this subsection 
        may be construed to prohibit the use of a book-entry or other 
        electronic form of registration for trust certificates issued 
        under this section.

``SEC. 387. FEES.

    ``(a) In General.--Except as provided in section 386(d), the 
Administrator may charge such fees as it deems appropriate with respect 
to any guarantee or grant issued under this part, in an amount 
established annually by the Administration, as necessary to reduce to 
zero the cost (as defined in section 502 of the Federal Credit Reform 
Act of 1990) to the Administration of purchasing and guaranteeing 
debentures under this Act, which amounts shall be paid to and retained 
by the Administration.
    ``(b) Offset.--The Administrator may, as provided by section 388, 
offset fees changed and collected under subsection (a).

``SEC. 388. FEE CONTRIBUTION.

    ``(a) In General.--To the extent that amounts are made available to 
the Administrator for the purpose of fee contributions, the 
administrator shall contribute to fees paid by the Renewable Fuel 
Capital Investment companies under section 387.
    ``(b) Annual Adjustment.--Each fee contribution under subsection 
(a) shall be effective for one fiscal year and shall be adjusted as 
necessary for each fiscal year thereafter to ensure that amounts under 
subsection (a) are fully used. The fee contribution for a fiscal year 
shall be based on the outstanding commitments made and the guarantees 
and grants that the Administrator projects will be made during that 
fiscal year, given the program level authorized by law for that fiscal 
year and any other factors that the Administrator deems appropriate.

``SEC. 389. OPERATIONAL ASSISTANCE GRANTS.

    ``(a) In General.--
            ``(1) Authority.--In accordance with this section, the 
        Administrator may make grants to Renewable Fuel Capital 
        Investment companies and to other entities, as authorized by 
        this part, to provide operational assistance to smaller 
        enterprises financed, or expected to be financed, by such 
        companies or other entities.
            ``(2) Terms.--Grants made under this subsection shall be 
        made over a multiyear period not to exceed 10 years, under such 
        other terms as the Administrator may require.
            ``(3) Grants to specialized small business investment 
        companies.--
                    ``(A) Authority.--In accordance with this section, 
                the Administrator may make grants to specialized small 
                business investment companies to provide operational 
                assistance to smaller enterprises financed, or expected 
                to be financed, by such companies after the effective 
                date of the Small Energy Efficient Businesses Act.
                    ``(B) Use of funds.--The proceeds of a grant made 
                under this paragraph may be used by the company 
                receiving such grant only to provide operational 
                assistance in connection with an equity investment 
                (made with capital raised after the effective date of 
                the Small Energy Efficient Businesses Act) in a 
                business located in a low-income geographic area.
                    ``(C) Submission of plans.--A specialized small 
                business investment company shall be eligible for a 
                grant under this section only if the company submits to 
                the Administrator, in such form and manner as the 
                Administrator may require, a plan for use of the grant.
            ``(4) Grant amount.--
                    ``(A) Renewable fuel capital investment 
                companies.--The amount of a grant made under this 
                subsection to a Renewable Fuel Capital Investment 
                company shall be equal to the resources (in cash or in 
                kind) raised by the company under section 354(d)(2).
                    ``(B) Other entities.--The amount of a grant made 
                under this subsection to any entity other than a 
                Renewable Fuel Capital Investment company shall be 
                equal to the resources (in cash or in kind) raised by 
                the entity in accordance with the requirements 
                applicable to Renewable Fuel Capital Investment 
                companies set forth in section 384(d)(2).
            ``(5) Pro rata reductions.--If the amount made available to 
        carry out this section is insufficient for the Administrator to 
        provide grants in the amounts provided for in paragraph (4), 
        the Administrator shall make pro rata reductions in the amounts 
        otherwise payable to each company and entity under such 
        paragraph.
    ``(b) Supplemental Grants.--
            ``(1) In general.--The Administrator may make supplemental 
        grants to Renewable Fuel Capital Investment companies and to 
        other entities, as authorized by this part under such terms as 
        the Administrator may require, to provide additional 
        operational assistance to smaller enterprises financed, or 
        expected to be financed, by the companies.
            ``(2) Matching requirement.--The Administrator may require, 
        as a condition of any supplemental grant made under this 
        subsection, that the company or entity receiving the grant 
        provide from resources (in a cash or in kind), other then those 
        provided by the Administrator, a matching contribution equal to 
        the amount of the supplemental grant.
    ``(c) Limitation.--None of the assistance made available under this 
section may be used for any overhead or general and administrative 
expense of a Renewable Fuel Capital Investment company or a specialized 
small business investment company.

``SEC. 390. BANK PARTICIPATION.

    ``(a) In General.--Except as provided in subsection (b), any 
national bank, any member bank of the Federal Reserve System, and (to 
the extent permitted under applicable State law) any insured bank that 
is not a member of such system, may invest in any Renewable Fuel 
Capital Investment company, or in any entity established to invest 
solely in Renewable Fuel Capital Investment companies.
    ``(b) Limitation.--No bank described in subsection (a) may make 
investments described in such subsection that are greater than 5 
percent of the capital and surplus of the bank.

``SEC. 391. FEDERAL FINANCING BANK.

    ``Section 318 shall not apply to any debenture issued by a 
Renewable Fuel Capital Investment company under this part.

``SEC. 392. REPORTING REQUIREMENT.

    ``Each Renewable Fuel Capital Investment company that participates 
in the program established under this part shall provide to the 
Administrator such information as the Administrator may require, 
including--
            ``(1) information related to the measurement criteria that 
        the company proposed in its program application; and
            ``(2) in each case in which the company under this part 
        makes an investment in, or a loan or a grant to, a business 
        that is not primarily engaged in the research, development, 
        manufacture, or bringing to market or renewable energy sources, 
        a report on the nature, origin, and revenues of the business in 
        which investments are made.

``SEC. 393. EXAMINATIONS.

    ``(a) In General.--Each Renewable Fuel Capital Investment company 
that participates in the program established under this part shall be 
subject to examinations made at the direction of the Investment 
Division of the Small Business Administration in accordance with this 
section.
    ``(b) Assistance of Private Sector Entities.--Examinations under 
this section may be conducted with the assistance of a private sector 
entity that has both the qualifications and the expertise necessary to 
conduct such examinations.
    ``(c) Costs.--
            ``(1) Assessment.--
                    ``(A) In general.--The Administrator may assess the 
                cost of examinations under this section, including 
                compensation of the examiners, against the company 
                examined.
                    ``(B) Payment.--Any company against which the 
                Administrator assesses costs under this paragraph shall 
                pay such costs.
            ``(2) Deposit of funds.--Funds collected under this section 
        shall be deposited in the account for salaries and expenses of 
        the Small Business Administration.

``SEC. 394. MISCELLANEOUS.

    ``To the extent such procedures are not inconsistent with the 
requirements of this part, the Administrator may take such action as 
set forth in sections 309, 311, 312, and 314 of this Act.

``SEC. 395. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

    ``Using the procedures for removing or suspending a director or an 
officer of a licensee set forth in section 313 (to the extent such 
procedures are not inconsistent with the requirements of this part), 
the Administrator may remove or suspend any director or officer of any 
Renewable Fuel Capital Investment company.

``SEC. 396. REGULATIONS.

    ``The Administrator may issue such regulations as it deems 
necessary to carry out the provisions of this part in accordance with 
its purposes.

``SEC. 397. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Grants.--The Administrator is authorized to make $15,000,000 
per fiscal year in operational assistance grants.
    ``(b) Funds Collected for Examinations.--Funds deposited under 
section 393(c)(2) are authorized to be appropriated only for the costs 
of examinations under section 393 and for the costs of other oversight 
activities with respect to the program established under this part.''.

SEC. 3010. STUDY AND REPORT.

    The Administrator shall conduct a study of the Renewable Fuel 
Capital Investment Program under part C of title III of the Small 
Business Investment Act of 1958. Not later than 3 years after the date 
of the enactment of this Act, the Administrator shall complete the 
study and submit to the Congress a report of the results of the study.

                    TITLE IV--SCIENCE AND TECHNOLOGY

          Subtitle A--Advanced Research Projects Agency-Energy

SEC. 4001. ADVANCED RESEARCH PROJECTS AGENCY-ENERGY.

    (a) Establishment.--There is established the Advanced Research 
Projects Agency-Energy (in this subtitle referred to as ``ARPA-E'') 
within the Department of Energy to overcome the long-term and high-risk 
technological barriers in the development of energy technologies.
    (b) Goals.--The goals of ARPA-E are to enhance the Nation's 
economic and energy security through the development of energy 
technologies that result in reductions of imports of energy from 
foreign sources, reductions of energy-related emissions including 
greenhouse gases, improvements in the energy efficiency of all economic 
sectors, and to ensure that the United States maintains a technological 
lead in developing and deploying energy technologies. ARPA-E will 
achieve this by--
            (1) identifying and promoting revolutionary advances in 
        fundamental sciences;
            (2) translating scientific discoveries and cutting-edge 
        inventions into technological innovations; and
            (3) accelerating transformational technological advances in 
        areas that industry by itself is not likely to undertake 
        because of technical and financial uncertainty.
    (c) Director.--ARPA-E shall be headed by a Director who shall be 
appointed by the Secretary of Energy. The Director shall report to the 
Secretary. No other programs within the Department of Energy shall 
report to the Director of ARPA-E.
    (d) Responsibilities.--The Director shall administer the Fund 
established under section 4002 to award competitive grants, cooperative 
agreements, or contracts to institutions of higher education, 
companies, research foundations, trade and industry research 
collaborations, or consortia of such entities which may include 
federally funded research and development centers, to achieve the goals 
stated in subsection (b) through targeted acceleration of--
            (1) novel early-stage energy research with possible 
        technology applications;
            (2) development of techniques, processes, and technologies, 
        and related testing and evaluation;
            (3) research and development of manufacturing processes for 
        novel energy technologies; and
            (4) demonstration and coordination with nongovernmental 
        entities for commercial applications of energy technologies and 
        research applications.
    (e) Personnel.--
            (1) Program managers.--The Director shall designate 
        employees to serve as program managers for each of the programs 
        established pursuant to the responsibilities established for 
        ARPA-E under subsection (d). Program managers shall be 
        responsible for--
                    (A) establishing research and development goals for 
                the program, including through the convening of 
                workshops and conferring with outside experts, as well 
                as publicizing the goals to the public and private 
                sectors;
                    (B) soliciting applications for specific areas of 
                particular promise, especially those which the private 
                sector or the Federal Government are not likely to 
                undertake alone;
                    (C) building research collaborations for carrying 
                out the program;
                    (D) selecting on the basis of merit, with advice 
                under section 4003 as appropriate, each of the energy 
                projects to be supported under the program following 
                consideration of--
                            (i) the novelty and scientific and 
                        technical merit of the proposed projects;
                            (ii) the demonstrated capabilities of the 
                        applicants to successfully carry out the 
                        proposed research project;
                            (iii) the applicant's consideration of 
                        future commercial applications of the project, 
                        including the feasibility of partnering with 1 
                        or more commercial entities; and
                            (iv) such other criteria as are established 
                        by the Director; and
                    (E) monitoring the progress of projects supported 
                under the program, and prescribing program restructure 
                or termination of research partnerships or whole 
                projects that do not show promise.
            (2) Hiring and management.--In hiring personnel for ARPA-E, 
        the Director shall have the authority to make appointments of 
        scientific, engineering, and professional personnel without 
        regard to the civil service laws, and fix the compensation of 
        such personnel at a rate to be determined by the Director. The 
        term of appointments for employees may not exceed 3 years 
        before the granting of any extension. In hiring initial staff 
        the Secretary shall give preference to applicants with 
        experience in the Defense Advanced Research Projects Agency, 
        academia, or in private sector technology development. The 
        Secretary or Director may contract with private recruiting 
        firms in hiring qualified technical staff.
            (3) Additional hiring.--The Director may hire additional 
        technical, financial, managerial, or other staff as needed to 
        carry out the activities of the program.
    (f) Coordination and Nonduplication.--To the extent practicable, 
the Director shall ensure that the activities of ARPA-E are coordinated 
with, and do not duplicate the efforts of, existing programs and 
laboratories within the Department of Energy and other relevant 
research agencies. Where appropriate, the Director may coordinate 
technology transfer efforts with the Technology Transfer Coordinator 
established in section 1001 of the Energy Policy Act of 2005 (42 U.S.C. 
16391).
    (g) Federal Demonstration of Technologies.--The Secretary shall 
make information available to purchasing and procurement programs of 
Federal agencies regarding the potential to demonstrate technologies 
resulting from activities funded through ARPA-E.

SEC. 4002. FUND.

    (a) Establishment.--There is established in the Treasury the Energy 
Transformation Acceleration Fund (in this subtitle referred to as the 
``Fund''), which shall be administered by the Director of ARPA-E for 
the purposes of carrying out this subtitle.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Director of ARPA-E for deposit in the Fund 
$300,000,000 for fiscal year 2008, $1,000,000,000 for fiscal year 2009, 
$1,100,000,000 for fiscal year 2010, $1,200,000,000 for fiscal year 
2011, and $1,300,000,000 for fiscal year 2012, to remain available 
until expended.
    (c) Limitation.--No amounts may be appropriated for the first year 
of funding for ARPA-E unless the amount appropriated for the activities 
of the Office of Science of the Department of Energy for that fiscal 
year exceed the amount appropriated for that Office for fiscal year 
2007, as adjusted for inflation according to the Consumer Price Index.
    (d) Allocation.--Of the amounts appropriated for a fiscal year 
under subsection (b)--
            (1) not more than 50 percent shall be for activities under 
        section 4001(d)(4);
            (2) not more than 8 percent shall be made available to 
        Federally Funded Research and Development Centers;
            (3) not more than 10 percent may be used for administrative 
        expenses;
            (4) at least 2.5 percent shall be designated for technology 
        transfer and outreach activities; and
            (5) during the first 5 years of operation of ARPA-E, no 
        funds may be used for construction of new buildings or 
        facilities.

SEC. 4003. ADVICE.

    (a) Advisory Committees.--The Director may seek advice on any 
aspect of ARPA-E from--
            (1) existing Department of Energy advisory committees; and
            (2) new advisory committees organized to support the 
        programs of ARPA-E and to provide advice and assistance on--
                    (A) specific program tasks; or
                    (B) overall direction of ARPA-E.
    (b) Additional Sources of Advice.--The Director may seek advice and 
review from the National Academy of Sciences, the National Academy for 
Engineering, and any other professional or scientific organization with 
expertise in specific processes or technologies under development by 
ARPA-E.

SEC. 4004. ARPA-E EVALUATION.

    After ARPA-E has been in operation for 54 months, the President's 
Committee on Science and Technology shall begin an evaluation (to be 
completed within 12 months) of how well ARPA-E is achieving its goals 
and mission. The evaluation shall include the recommendation of such 
Committee on whether ARPA-E should be continued or terminated, as well 
as lessons-learned from its operation. The evaluation shall be made 
available to Congress and to the public upon completion.

SEC. 4005. SAVINGS CLAUSE.

    The authorities granted by this subtitle are in addition to 
existing authorities granted to the Secretary of Energy, and not 
intended to supersede or modify any existing authorities.

            Subtitle B--Marine Renewable Energy Technologies

SEC. 4101. SHORT TITLE.

    This subtitle may be cited as the ``Marine Renewable Energy 
Research and Development Act of 2007''.

SEC. 4102. FINDINGS.

    The Congress finds the following:
            (1) The United States has a critical national interest in 
        developing clean, domestic, renewable sources of energy in 
        order to reduce environmental impacts of energy production, 
        increase national security, improve public health, and bolster 
        economic stability.
            (2) Marine renewable energy technologies are a nonemitting 
        source of power production.
            (3) Marine renewable energy may serve as an alternative to 
        fossil fuels and create thousands of new jobs within the United 
        States.
            (4) Europe has already successfully delivered electricity 
        to the grid through the deployment of wave and tidal energy 
        devices off the coast of Scotland.
            (5) Recent studies from the Electric Power Research 
        Institute, in conjunction with the Department of Energy's 
        National Renewable Energy Laboratory, have identified an 
        abundance of viable sites within the United States with ample 
        wave and tidal resources to be harnessed by marine power 
        technologies.
            (6) Sustained and expanded research, development, 
        demonstration, and commercial application programs are needed 
        to locate and characterize marine renewable energy resources, 
        and to develop the technologies that will enable their 
        widespread commercial development.
            (7) Federal support is critical to reduce the financial 
        risk associated with developing new marine renewable energy 
        technologies, thereby encouraging the private sector investment 
        necessary to make marine renewable energy resources 
        commercially viable as a source of electric power and for other 
        applications.

SEC. 4103. DEFINITIONS.

    For purposes of this subtitle--
            (1) Marine renewable energy.--The term ``Marine Renewable 
        Energy'' means energy derived from one or more of the following 
        sources:
                    (A) Waves.
                    (B) Tidal flows.
                    (C) Ocean currents.
                    (D) Ocean thermal energy conversion.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 4104. MARINE RENEWABLE ENERGY RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary, in conjunction with other 
appropriate agencies, shall support programs of research, development, 
demonstration, and commercial application to expand marine renewable 
energy production, including programs to--
            (1) study and compare existing marine renewable energy 
        extraction technologies;
            (2) research, develop, and demonstrate advanced marine 
        renewable energy systems and technologies;
            (3) reduce the manufacturing and operation costs of marine 
        renewable energy technologies;
            (4) investigate efficient and reliable integration with the 
        utility grid and intermittency issues;
            (5) advance wave forecasting technologies;
            (6) conduct experimental and numerical modeling for 
        optimization of marine energy conversion devices and arrays;
            (7) increase the reliability and survivability of marine 
        renewable energy technologies, including development of 
        corrosive-resistant materials;
            (8) study, in conjunction with the Assistant Administrator 
        for Research and Development of the Environmental Protection 
        Agency, the Undersecretary of Commerce for Oceans and 
        Atmosphere, and other Federal agencies as appropriate, the 
        environmental impacts of marine renewable energy technologies 
        and ways to address adverse impacts, and provide public 
        information concerning technologies and other means available 
        for monitoring and determining environmental impacts;
            (9) establish protocols, in conjunction with the National 
        Oceanic and Atmospheric Administration, for how the ocean 
        community may best interact with marine renewable energy 
        devices;
            (10) develop power measurement standards for marine 
        renewable energy;
            (11) develop identification standards for marine renewable 
        energy devices;
            (12) address standards development, demonstration, and 
        technology transfer for advanced systems engineering and system 
        integration methods to identify critical interfaces; and
            (13) utilize marine resources in the Gulf of Mexico, the 
        Atlantic Ocean, and the Pacific Ocean.
    (b) Siting Criteria.--The Secretary, in conjunction with other 
appropriate Federal agencies, shall develop, prior to installation of 
any technologies under this section, siting criteria for marine 
renewable energy generation demonstration and commercial application 
projects funded under this subtitle.

SEC. 4105. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION CENTERS.

    (a) Centers.--The Secretary, acting through the National Renewable 
Energy Laboratory, shall award grants to institutions of higher 
education (or consortia thereof) for the establishment of 1 or more 
National Marine Renewable Energy Research, Development, and 
Demonstration Centers. In selecting locations for Centers, the 
Secretary shall consider sites that meet one of the following criteria:
            (1) Hosts an existing marine renewable energy research and 
        development program in coordination with a public university 
        engineering program.
            (2) Has proven expertise to support environmental and 
        policy-related issues associated with harnessing of energy in 
        the marine environment.
            (3) Has access to and utilizes the marine resources in the 
        Gulf of Mexico, the Atlantic Ocean, or the Pacific Ocean.
The Secretary may give special consideration to historically black 
colleges and universities and land grant universities that also meet 
one of these criteria. In establishing criteria for the selection of 
Centers, the Secretary shall coordinate with the Undersecretary of 
Commerce for Oceans and Atmosphere on the criteria related to advancing 
wave forecasting technologies, studying the compatibility with the 
environment of marine renewable energy technologies and systems, and 
establishing protocols for how the ocean community best interacts with 
marine renewable energy devices and parks.
    (b) Purposes.--The Centers shall advance research, development, 
demonstration, and commercial application of marine renewable energy 
through a number of initiatives including for the purposes described in 
section 4104(1) through (13), and shall serve as an information 
clearinghouse for the marine renewable energy industry, collecting and 
disseminating information on best practices in all areas related to 
developing and managing enhanced marine renewable energy systems 
resources.
    (c) Demonstration of Need.--When applying for a grant under this 
section, an applicant shall include a description of why Federal 
support is necessary for the Center, including evidence that the 
research of the Center will not be conducted in the absence of Federal 
support.

SEC. 4106. APPLICABILITY OF OTHER LAWS.

    Nothing in this subtitle shall be construed as waiving the 
applicability of any requirement under any environmental or other 
Federal or State law.

SEC. 4107. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry 
out this subtitle $50,000,000 for each of the fiscal years 2008 through 
2012, except that no funds shall be appropriated under this section for 
activities that are receiving funds under section 931(a)(2)(E)(i) of 
the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(E)(i)).

                     Subtitle C--Geothermal Energy

SEC. 4201. SHORT TITLE.

    This subtitle may be cited as the ``Advanced Geothermal Energy 
Research and Development Act of 2007''.

SEC. 4202. FINDINGS.

    The Congress finds the following:
            (1) The United States has a critical national interest in 
        developing clean, domestic, renewable sources of energy in 
        order to mitigate the causes of climate change, reduce other 
        environmental impacts of energy production, increase national 
        security, improve public health, and bolster economic 
        stability.
            (2) Geothermal energy is a renewable energy resource.
            (3) Geothermal energy is unusual among renewable energy 
        sources because of its ability to provide an uninterrupted 
        supply of baseload electricity.
            (4) Recently published assessments by reputable experts, 
        including the Massachusetts Institute of Technology, the 
        Western Governors Association, and the National Renewable 
        Energy Laboratory, indicate that the Nation's geothermal 
        resources are widely distributed, vast in size, and barely 
        tapped.
            (5) Sustained and expanded research, development, 
        demonstration, and commercial application programs are needed 
        to locate and characterize geothermal resources, and to develop 
        the technologies that will enable their widespread commercial 
        development.
            (6) Federal support is critical to reduce the financial 
        risk associated with developing new geothermal technologies, 
        thereby encouraging the private sector investment necessary to 
        make geothermal resources commercially viable as a source of 
        electric power and for other applications.

SEC. 4203. DEFINITIONS.

    For purposes of this subtitle:
            (1) Engineered.--When referring to enhanced geothermal 
        systems, the term ``engineered'' means subjected to 
        intervention, including intervention to address one or more of 
        the following issues:
                    (A) Lack of effective permeability or porosity or 
                open fracture connectivity within the reservoir.
                    (B) Insufficient contained geofluid in the 
                reservoir.
                    (C) A low average geothermal gradient, which 
                necessitates deeper drilling.
            (2) Enhanced geothermal systems.--The term ``enhanced 
        geothermal systems'' means geothermal reservoir systems that 
        are engineered, as opposed to occurring naturally.
            (3) Geofluid.--The term ``geofluid'' means any fluid used 
        to extract thermal energy from the Earth which is transported 
        to the surface for direct use or electric power generation, 
        except that such term shall not include oil or natural gas.
            (4) Geopressured resources.--The term ``geopressured 
        resources'' mean geothermal deposits found in sedimentary rocks 
        under higher than normal pressure and saturated with gas or 
        methane.
            (5) Geothermal.--The term ``geothermal'' refers to heat 
        energy stored in the Earth's crust that can be accessed for 
        direct use or electric power generation.
            (6) Hydrothermal.--The term ``hydrothermal'' refers to 
        naturally occurring subsurface reservoirs of hot water or 
        steam.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (8) Systems approach.--The term ``systems approach'' means 
        an approach to solving problems or designing systems that 
        attempts to optimize the performance of the overall system, 
        rather than a particular component of the system.

SEC. 4204. HYDROTHERMAL RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary shall support programs of research, 
development, demonstration, and commercial application to expand the 
use of geothermal energy production from hydrothermal systems, 
including the programs described in subsection (b).
    (b) Programs.--
            (1) Advanced hydrothermal resource tools.--The Secretary, 
        in consultation with other appropriate agencies, shall support 
        a program to develop advanced geophysical, geochemical, and 
        geologic tools to assist in locating hidden hydrothermal 
        resources, and to increase the reliability of site 
        characterization before, during, and after initial drilling. 
        The program shall develop new prospecting techniques to assist 
        in prioritization of targets for characterization. The program 
        shall include a field component.
            (2) Industry coupled exploratory drilling.--The Secretary 
        shall support a program of cost-shared field demonstration 
        programs, to be pursued, simultaneously and independently, in 
        collaboration with industry partners, for the demonstration of 
        technologies and techniques of siting and exploratory drilling 
        for undiscovered resources in a variety of geologic settings. 
        The program shall include incentives to encourage the use of 
        advanced technologies and techniques.

SEC. 4205. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

    (a) Subsurface Components and Systems.--The Secretary shall support 
a program of research, development, demonstration, and commercial 
application of components and systems capable of withstanding extreme 
geothermal environments and necessary to cost-effectively develop, 
produce, and monitor geothermal reservoirs and produce geothermal 
energy. These components and systems shall include advanced casing 
systems (expandable tubular casing, low-clearance casing designs, and 
others), high-temperature cements, high-temperature submersible pumps, 
and high-temperature packers, as well as technologies for under-
reaming, multilateral completions, high-temperature logging, and 
logging while drilling.
    (b) Reservoir Performance Modeling.--The Secretary shall support a 
program of research, development, demonstration, and commercial 
application of models of geothermal reservoir performance, with an 
emphasis on accurately modeling performance over time. Models shall be 
developed to assist both in the development of geothermal reservoirs 
and to more accurately account for stress-related effects in stimulated 
hydrothermal and enhanced geothermal systems production environments.
    (c) Environmental Impacts.--The Secretary shall--
            (1) support a program of research, development, 
        demonstration, and commercial application of technologies and 
        practices designed to mitigate or preclude potential adverse 
        environmental impacts of geothermal energy development, 
        production or use, and seek to ensure that geothermal energy 
        development is consistent with the highest practicable 
        standards of environmental stewardship; and
            (2) in conjunction with the Assistant Administrator for 
        Research and Development at the Environmental Protection 
        Agency, support a research program to identify potential 
        environmental impacts of geothermal energy development, 
        production, and use, and ensure that the program described in 
        paragraph (1) addresses such impacts, including effects on 
        groundwater and local hydrology.
Any potential environmental impacts identified as part of the 
development, production, and use of geothermal energy shall be measured 
and examined against the potential emissions offsets of greenhouses 
gases gained by geothermal energy development, production, and use.

SEC. 4206. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary shall support a program of research, 
development, demonstration, and commercial application for enhanced 
geothermal systems, including the programs described in subsection (b).
    (b) Programs.--
            (1) Enhanced geothermal systems technologies.--The 
        Secretary shall support a program of research, development, 
        demonstration, and commercial application of the technologies 
        and knowledge necessary for enhanced geothermal systems to 
        advance to a state of commercial readiness, including advances 
        in--
                    (A) reservoir stimulation;
                    (B) reservoir characterization, monitoring, and 
                modeling;
                    (C) stress mapping;
                    (D) tracer development;
                    (E) three-dimensional tomography;
                    (F) understanding seismic effects of reservoir 
                engineering and stimulation; and
                    (G) laser-based drilling technology.
            (2) Enhanced geothermal systems reservoir stimulation.--
                    (A) Program.--In collaboration with industry 
                partners, the Secretary shall support a program of 
                research, development, and demonstration of enhanced 
                geothermal systems reservoir stimulation technologies 
                and techniques. A minimum of 5 sites shall be selected 
                in locations that show particular promise for enhanced 
                geothermal systems development. Each site shall--
                            (i) represent a different class of 
                        subsurface geologic environments; and
                            (ii) take advantage of an existing site 
                        where subsurface characterization has been 
                        conducted or existing drill holes can be 
                        utilized, if possible.
                    (B) Consideration of existing sites.--The following 
                2 sites, where Department of Energy and industry 
                cooperative enhanced geothermal systems projects are 
                already underway, may be considered for inclusion among 
                the sites selected under subparagraph (A):
                            (i) Desert Peak, Nevada.
                            (ii) Coso, California.

SEC. 4207. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS AND 
              RECOVERY AND PRODUCTION OF GEOPRESSURED GAS RESOURCES.

    (a) In General.--The Secretary shall establish a program of 
research, development, demonstration, and commercial application to 
support development of geothermal energy production from oil and gas 
fields and production and recovery of energy from geopressured 
resources. In addition, the Secretary shall conduct such supporting 
activities including research, resource characterization, and 
technology development as necessary.
    (b) Geothermal Energy Production From Oil and Gas Fields.--The 
Secretary shall implement a grant program in support of geothermal 
energy production from oil and gas fields. The program shall include 
grants for a total of not less than three demonstration projects of the 
use of geothermal techniques such as organic rankine cycle systems at 
marginal, unproductive, and productive oil and gas wells. The Secretary 
shall, to the extent practicable and in the public interest, make 
awards that--
            (1) include not less than five oil or gas well sites per 
        project award;
            (2) use a range of oil or gas well hot water source 
        temperatures from 150 degrees Fahrenheit to 300 degrees 
        Fahrenheit;
            (3) cover a range of sizes up to one megawatt;
            (4) are located at a range of sites;
            (5) can be replicated at a wide range of sites;
            (6) facilitate identification of optimum techniques among 
        competing alternatives;
            (7) include business commercialization plans that have the 
        potential for production of equipment at high volumes and 
        operation and support at a large number of sites; and
            (8) satisfy other criteria that the Secretary determines 
        are necessary to carry out the program and collect necessary 
        data and information.
The Secretary shall give preference to assessments that address 
multiple elements contained in paragraphs (1) through (8).
    (c) Grant Awards.--Each grant award for demonstration of geothermal 
technology such as organic rankine cycle systems at oil and gas wells 
made by the Secretary under subsection (b) shall include--
            (1) necessary and appropriate site engineering study;
            (2) detailed economic assessment of site specific 
        conditions;
            (3) appropriate feasibility studies to determine whether 
        the demonstration can be replicated;
            (4) design or adaptation of existing technology for site 
        specific circumstances or conditions;
            (5) installation of equipment, service, and support;
            (6) operation for a minimum of one year and monitoring for 
        the duration of the demonstration; and
            (7) validation of technical and economic assumptions and 
        documentation of lessons learned.
    (d) Geopressured Gas Resource Recovery and Production.--(1) The 
Secretary shall implement a program to support the research, 
development, demonstration, and commercial application of cost-
effective techniques to produce energy from geopressured resources 
situated in and near the Gulf of Mexico.
    (2) The Secretary shall solicit preliminary engineering designs for 
geopressured resources production and recovery facilities.
    (3) Based upon a review of the preliminary designs, the Secretary 
shall award grants, which may be cost-shared, to support the detailed 
development and completion of engineering, architectural and technical 
plans needed to support construction of new designs.
    (4) Based upon a review of the final design plans above, the 
Secretary shall award cost-shared development and construction grants 
for demonstration geopressured production facilities that show 
potential for economic recovery of the heat, kinetic energy and gas 
resources from geopressured resources.
    (e) Competitive Grant Selection.--Not less than 90 days after the 
date of the enactment of this Act, the Secretary shall conduct a 
national solicitation for applications for grants under the programs 
outlined in subsections (b) and (d). Grant recipients shall be selected 
on a competitive basis based on criteria in the respective subsection.
    (f) Well Drilling.--No funds may be used under this section for the 
purpose of drilling new wells.

SEC. 4208. COST SHARING AND PROPOSAL EVALUATION.

    (a) Federal Share.--(1) The Federal share of costs of projects 
funded under this subtitle shall be in accordance with section 988 of 
the Energy Policy Act of 2005.
    (2) The Secretary may waive the Federal cost share requirement for 
grants awarded to universities, national laboratories, or similar 
noncommercial entities awarded grants under this subtitle.
    (3) The Secretary shall allow for a competitive bidding process to 
play a role in determining the final cost-share ratio.
    (b) Organization and Administration of Programs.--Programs under 
this subtitle shall incorporate the following organizational and 
administrative elements:
            (1) Non-Federal participants shall be chosen through a 
        competitive selection process.
            (2) The request for proposals for each program shall 
        stipulate, at a minimum, the following:
                    (A) The non-Federal funding requirements for 
                projects.
                    (B) The funding mechanism to be used (i.e. grants, 
                contracts, or cooperative agreements).
                    (C) Milestones and a schedule for completion.
                    (D) Criteria for evaluating proposals.
            (3) In evaluating proposals, the Secretary shall give 
        priority to proposals that draw on relevant expertise from 
        industry, academia, and the national laboratories, as 
        appropriate.
            (4) The Secretary shall coordinate with, and where 
        appropriate may provide funds in furtherance of the purposes of 
        this subtitle to, other Department of Energy research and 
        development programs focused on drilling, subsurface 
        characterization, and other related technologies.
            (5) In evaluating proposals, the Secretary shall consult 
        with relevant experts from industry, academia, and the national 
        laboratories, as appropriate.
            (6) In evaluating proposals, the Secretary shall give 
        priority to proposals that demonstrate clear evidence of 
        employing a systems approach.
            (7) In evaluating proposals for projects with a field 
        component, the Secretary shall, where appropriate, give 
        priority consideration to proposals that contain provisions to 
        study local environmental impacts of the technologies developed 
        or the operations undertaken.
            (8) In evaluating proposals, the Secretary, in coordination 
        with other appropriate agencies, shall seek to ensure that no 
        funding authorized under this subtitle is awarded to any 
        project that would result in adverse impacts to land, water, or 
        other resources within the National Wilderness Preservation 
        System, the National Park System, the National Wildlife Refuge 
        System, the National Landscape Conservation System, the 
        National Wild and Scenic Rivers System, the National Trails 
        System, any National Monument, any Wilderness Study Area, any 
        Research Natural Area, any National Marine Sanctuary, any 
        Inventoried Roadless Area, or any Area of Critical 
        Environmental Concern.
            (9) Scientific data collected as a result of any project 
        supported with funds provided under this subtitle shall be made 
        available to the public.

SEC. 4209. CENTERS FOR GEOTHERMAL TECHNOLOGY TRANSFER.

    (a) In General.--The Secretary shall award grants to institutions 
of higher education (or consortia thereof) to establish 2 Centers for 
Geothermal Technology Transfer.
    (b) Centers.--
            (1) Hydrothermal center.--The purpose of one Technology 
        Transfer Center shall be to serve as an information 
        clearinghouse for the geothermal industry, collecting and 
        disseminating information on best practices in all areas 
        related to developing and managing hydrothermal resources, 
        including data available for disclosure as provided under 
        section 4208(b)(9). This Center shall be based at the 
        institution west of the Rocky Mountains that the Secretary 
        considers to be best suited to the purpose. The Center shall 
        collect and disseminate information on all subjects germane to 
        the development and user of hydrothermal systems, including--
                    (A) resource location;
                    (B) reservoir characterization, monitoring, and 
                modeling;
                    (C) drilling techniques;
                    (D) reservoir management techniques; and
                    (E) technologies for electric power conversion or 
                direct use of geothermal energy.
            (2) Enhanced geothermal systems center.--The purpose of a 
        second Technology Transfer Center shall be to serve as an 
        information clearinghouse for the geothermal industry, 
        collecting and disseminating information on best practices in 
        all areas related to developing and managing enhanced 
        geothermal systems resources, including data available for 
        disclosure as provided under section 4208(b)(9). This Center is 
        encouraged to seek opportunities to coordinate efforts and 
        share information with international partners engaged in 
        research and development of enhanced geothermal systems or 
        engaged in collection of data related to enhanced geothermal 
        systems development. This Center shall be based at an academic 
        institution east of the Rocky Mountains which, in the opinion 
        of the Secretary, is best suited to provide national leadership 
        on enhanced geothermal systems-related issues. The Center shall 
        collect and disseminate information on all subjects germane to 
        the development and use of enhanced geothermal systems.
    (c) Award Duration.--An award made by the Secretary under this 
section shall be for an initial period of 5 years, and may be renewed 
for additional 5-year periods on the basis of--
            (1) satisfactory performance in meeting the goals of the 
        research plan proposed by the Center; and
            (2) other requirements as specified by the Secretary.

SEC. 4210. GEOPOWERING AMERICA.

    The Secretary shall expand the Department of Energy's GeoPowering 
the West program to extend its geothermal technology transfer 
activities throughout the entire United States. The program shall be 
renamed ``GeoPowering America''. The program shall continue to be based 
in the Department of Energy office in Golden, Colorado.

SEC. 4211. EDUCATIONAL PILOT PROGRAM.

    The Secretary shall seek to award grant funding, on a competitive 
basis, to an institution of higher education for a geothermal-powered 
energy generation facility on the institution's campus. The purpose of 
the facility shall be to provide electricity and space heating. The 
facility shall also serve as an educational resource to students in 
relevant fields of study, and the data generated by the facility shall 
be available to students and the general public. The total funding 
award shall not exceed $2,000,000.

SEC. 4212. REPORTS.

    (a) Reports on Advanced Uses of Geothermal Energy.--Not later than 
1 year, 3 years, and 5 years, after the date of enactment of this Act, 
the Secretary shall report to the Committee on Science and Technology 
of the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate on advanced concepts and technologies to 
maximize the geothermal resource potential of the United States. The 
reports shall include--
            (1) the use of carbon dioxide as an alternative geofluid 
        with potential carbon sequestration benefits;
            (2) mineral recovery from geofluids;
            (3) use of geothermal energy to produce hydrogen;
            (4) use of geothermal energy to produce biofuels;
            (5) use of geothermal heat for oil recovery from oil shales 
        and tar sands; and
            (6) other advanced geothermal technologies, including 
        advanced drilling technologies and advanced power conversion 
        technologies.
    (b) Progress Reports.--(1) Not later than 36 months after the date 
of enactment of this Act, the Secretary shall submit to the Committee 
on Science and Technology of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate an interim 
report describing the progress made under this subtitle. At the end of 
60 months, the Secretary shall submit to Congress a report on the 
results of projects undertaken under this subtitle and other such 
information the Secretary considers appropriate.
    (2) As necessary, the Secretary shall report to the Congress on any 
legal, regulatory, or other barriers encountered that hinder economic 
development of these resources, and provide recommendations on 
legislative or other actions needed to address such impediments.

SEC. 4213. APPLICABILITY OF OTHER LAWS.

    Nothing in this subtitle shall be construed as waiving the 
applicability of any requirement under any environmental or other 
Federal or State law.

SEC. 4214. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry 
out this subtitle $90,000,000 for each of the fiscal years 2008 through 
2012, of which $10,000,000 for each fiscal year shall be for carrying 
out section 4207. There are also authorized to be appropriated to the 
Secretary for the Intermountain West Geothermal Consortium $5,000,000 
for each of the fiscal years 2008 through 2012.

                        Subtitle D--Solar Energy

SEC. 4301. SHORT TITLE.

    This subtitle may be cited as the ``Solar Energy Research and 
Advancement Act of 2007''.

SEC. 4302. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``Department'' means the Department of Energy.
            (2) The term ``Secretary'' means the Secretary of Energy.

SEC. 4303. THERMAL ENERGY STORAGE RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary shall establish a program of 
research and development to provide lower cost and more viable thermal 
energy storage technologies to enable the shifting of electric power 
loads on demand and extend the operating time of concentrating solar 
power electric generating plants.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $5,000,000 
for fiscal year 2008, $7,000,000 for fiscal year 2009, $9,000,000 for 
fiscal year 2010, $10,000,000 for fiscal year 2011, and $12,000,000 for 
fiscal year 2012.

SEC. 4304. CONCENTRATING SOLAR POWER COMMERCIAL APPLICATION STUDIES.

    (a) Integration.--The Secretary shall conduct a study on methods to 
integrate concentrating solar power into regional electricity 
transmission systems, and to identify new transmission or transmission 
upgrades needed to bring electricity from high concentrating solar 
power resource areas to growing electric power load centers throughout 
the United States. The study shall analyze and assess cost-effective 
approaches for management and large-scale integration of concentrating 
solar power into regional electric transmission grids to improve 
electric reliability, to efficiently manage load, and to reduce demand 
on the natural gas transmission system for electric power. The 
Secretary shall submit a report to Congress on the results of this 
study not later than 12 months after the date of enactment of this Act.
    (b) Water Consumption.--Not later than 6 months after the date of 
the enactment of this Act, the Secretary of Energy shall transmit to 
Congress a report on the results of a study on methods to reduce the 
amount of water consumed by concentrating solar power systems.

SEC. 4305. SOLAR ENERGY CURRICULUM DEVELOPMENT AND CERTIFICATION 
              GRANTS.

    (a) Establishment.--The Secretary shall establish in the Office of 
Solar Energy Technologies a competitive grant program to create and 
strengthen solar industry workforce training and internship programs in 
installation, operation, and maintenance of solar energy products. The 
goal of this program is to ensure a supply of well-trained individuals 
to support the expansion of the solar energy industry.
    (b) Authorized Activities.--Grant funds may be used to support the 
following activities:
            (1) Creation and development of a solar energy curriculum 
        appropriate for the local educational, entrepreneurial, and 
        environmental conditions, including curriculum for community 
        colleges.
            (2) Support of certification programs, such as the North 
        American Board of Certified Energy Practitioners, for 
        individual solar energy system installers, instructors, and 
        training programs.
            (3) Internship programs that provide hands-on participation 
        by students in commercial applications.
            (4) Activities required to obtain certification of training 
        programs and facilities by the Institute of Sustainable Power 
        or an equivalent industry-accepted quality-control 
        certification program.
            (5) Incorporation of solar-specific learning modules into 
        traditional occupational training and internship programs for 
        construction-related trades.
            (6) The purchase of equipment necessary to carry out 
        activities under this section.
            (7) Support of programs that provide guidance and updates 
        to solar energy curriculum instructors.
    (c) Administration of Grants.--Grants may be awarded under this 
section for up to 3 years. The Secretary shall award grants to ensure 
sufficient geographic distribution of training programs nationally. 
Grants shall only be awarded for programs certified by the Institute of 
Sustainable Power or an equivalent industry-accepted quality-control 
certification institution, or for new and growing programs with a 
credible path to certification. Due consideration shall be given to 
women, underrepresented minorities, and persons with disabilities.
    (d) Report.--The Secretary shall make public, via the website of 
the Department or upon request, information on the name and institution 
for all grants awarded under this section, including a brief 
description of the project as well as the grant award amount.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $10,000,000 
for each of the fiscal years 2008 through 2012.

SEC. 4306. DAYLIGHTING SYSTEMS AND DIRECT SOLAR LIGHT PIPE TECHNOLOGY.

    (a) Establishment.--The Secretary shall establish a program of 
research and development to provide assistance in the demonstration and 
commercial application of direct solar renewable energy sources to 
provide alternatives to traditional power generation for lighting and 
illumination, including light pipe technology, and to promote greater 
energy conservation and improved efficiency. All direct solar renewable 
energy devices supported under this program shall have the capability 
to provide measurable data on the amount of kilowatt-hours saved over 
the traditionally powered light sources they have replaced.
    (b) Reporting.--The Secretary shall transmit to Congress an annual 
report assessing the measurable data derived from each project in the 
direct solar renewable energy sources program and the energy savings 
resulting from its use.
    (c) Definitions.--For purposes of this section--
            (1) the term ``direct solar renewable energy'' means energy 
        from a device that converts sunlight into useable light within 
        a building, tunnel, or other enclosed structure, replacing 
        artificial light generated by a light fixture and doing so 
        without the conversion of the sunlight into another form of 
        energy; and
            (2) the term ``light pipe'' means a device designed to 
        transport visible solar radiation from its collection point to 
        the interior of a building while excluding interior heat gain 
        in the nonheating season.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $3,500,000 
for each of the fiscal years 2008 through 2012.

SEC. 4307. SOLAR AIR CONDITIONING RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary shall establish a research, 
development, and demonstration program to promote less costly and more 
reliable decentralized distributed solar-powered air conditioning for 
individuals and businesses.
    (b) Authorized Activities.--Grants made available under this 
section may be used to support the following activities:
            (1) Advancing solar thermal collectors, including 
        concentrating solar thermal and electric systems, flat plate 
        and evacuated tube collector performance.
            (2) Achieving technical and economic integration of solar-
        powered distributed air-conditioning systems with existing hot 
        water and storage systems for residential applications.
            (3) Designing and demonstrating mass manufacturing 
        capability to reduce costs of modular standardized solar-
        powered distributed air conditioning systems and components.
            (4) Improving the efficiency of solar-powered distributed 
        air-conditioning to increase the effectiveness of solar-powered 
        absorption chillers, solar-driven compressors and condensors, 
        and cost-effective precooling approaches.
            (5) Researching and comparing performance of solar-powered 
        distributed air conditioning systems in different regions of 
        the country, including potential integration with other onsite 
        systems, such as solar, biogas, geothermal heat pumps, and 
        propane assist or combined propane fuel cells, with a goal to 
        develop site-specific energy production and management systems 
        that ease fuel and peak utility loading.
    (c) Cost Sharing.--The non-Federal share of research and 
development projects supported under this section shall be not less 
than 20 percent, and for demonstration projects shall be not less than 
50 percent.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $2,500,000 
for each of the fiscal years 2008 through 2012.

SEC. 4308. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary shall establish a program of grants 
to States to demonstrate advanced photovoltaic technology.
    (b) Requirements.--
            (1) Ability to meet requirements.--To receive funding under 
        the program under this section, a State must submit a proposal 
        that demonstrates, to the satisfaction of the Secretary, that 
        the State will meet the requirements of subsection (f).
            (2) Compliance with requirements.--If a State has received 
        funding under this section for the preceding year, the State 
        must demonstrate, to the satisfaction of the Secretary, that it 
        complied with the requirements of subsection (f) in carrying 
        out the program during that preceding year, and that it will do 
        so in the future, before it can receive further funding under 
        this section.
            (3) Funding allocation.--Each State submitting a qualifying 
        proposal shall receive funding under the program based on the 
        proportion of United States population in the State according 
        to the 2000 census. In each fiscal year, the portion of funds 
        attributable under this paragraph to States that have not 
        submitted qualifying proposals in the time and manner specified 
        by the Secretary shall be distributed pro rata to the States 
        that have submitted qualifying proposals in the specified time 
        and manner.
    (c) Competition.--If more than $25,000,000 is available for the 
program under this section for any fiscal year, the Secretary shall 
allocate 75 percent of the total amount of funds available according to 
subsection (b)(3), and shall award the remaining 25 percent on a 
competitive basis to the States with the proposals the Secretary 
considers most likely to encourage the widespread adoption of 
photovoltaic technologies.
    (d) Proposals.--Not later than 6 months after the date of enactment 
of this Act, and in each subsequent fiscal year for the life of the 
program, the Secretary shall solicit proposals from the States to 
participate in the program under this section.
    (e) Competitive Criteria.--In awarding funds in a competitive 
allocation under subsection (c), the Secretary shall consider--
            (1) the likelihood of a proposal to encourage the 
        demonstration of, or lower the costs of, advanced photovoltaic 
        technologies; and
            (2) the extent to which a proposal is likely to--
                    (A) maximize the amount of photovoltaics 
                demonstrated;
                    (B) maximize the proportion of non-Federal cost 
                share; and
                    (C) limit State administrative costs.
    (f) State Program.--A program operated by a State with funding 
under this section shall provide competitive awards for the 
demonstration of advanced photo-voltaic technologies. Each State 
program shall--
            (1) require a contribution of at least 60 percent per award 
        from non-Federal sources, which may include any combination of 
        State, local, and private funds, except that at least 10 
        percent of the funding must be supplied by the State;
            (2) endeavor to fund recipients in the commercial, 
        industrial, institutional, governmental, and residential 
        sectors;
            (3) limit State administrative costs to no more than 10 
        percent of the grant;
            (4) report annually to the Secretary on--
                    (A) the amount of funds disbursed;
                    (B) the amount of photovoltaics purchased; and
                    (C) the results of the monitoring under paragraph 
                (5);
            (5) provide for measurement and verification of the output 
        of a representative sample of the photovoltaics systems 
        demonstrated throughout the average working life of the 
        systems, or at least 20 years; and
            (6) require that applicant buildings must have received an 
        independent energy efficiency audit during the 6-month period 
        preceding the filing of the application.
    (g) Unexpended Funds.--If a State fails to expend any funds 
received under subsection (b) or (c) within 3 years of receipt, such 
remaining funds shall be returned to the Treasury.
    (h) Reports.--The Secretary shall report to Congress 5 years after 
funds are first distributed to the States under this section--
            (1) the amount of photovoltaics demonstrated;
            (2) the number of projects undertaken;
            (3) the administrative costs of the program;
            (4) the amount of funds that each State has not received 
        because of a failure to submit a qualifying proposal, as 
        described in subsection (b)(3);
            (5) the results of the monitoring under subsection (f)(5); 
        and
            (6) the total amount of funds distributed, including a 
        breakdown by State.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for the purposes of carrying out this 
section--
            (1) $15,000,000 for fiscal year 2008;
            (2) $30,000,000 for fiscal year 2009;
            (3) $45,000,000 for fiscal year 2010;
            (4) $60,000,000 for fiscal year 2011; and
            (5) $70,000,000 for fiscal year 2012.

                          Subtitle E--Biofuels

SEC. 4401. SHORT TITLE.

    This subtitle may be cited as the ``Biofuels Research and 
Development Enhancement Act''.

SEC. 4402. BIOFUELS AND BIOREFINERY INFORMATION CENTER.

    (a) In General.--The Secretary of Energy (in this subtitle referred 
to as the ``Secretary''), in cooperation with the Secretary of 
Agriculture, shall establish a technology transfer center to make 
available information on research, development, and commercial 
application of technologies related to biofuels and biorefineries, 
including--
            (1) biochemical and thermochemical conversion technologies 
        capable of making fuels from lignocellulosic feedstocks;
            (2) biotechnology processes capable of making biofuels with 
        an emphasis on development of biorefinery technologies using 
        enzyme-based processing systems;
            (3) biogas collection and production technologies suitable 
        for vehicular use;
            (4) cost-effective reforming technologies that produce 
        hydrogen fuel from biogas sources;
            (5) biogas production from cellulosic and recycled organic 
        waste sources and advancement of gaseous storage systems and 
        advancement of gaseous storage systems; and
            (6) other advanced processes and technologies that will 
        enable the development of biofuels.
    (b) Administration.--In administering this section, the Secretary 
shall ensure that the center shall--
            (1) continually update information provided by the center;
            (2) make information available on biotechnology processes; 
        and
            (3) make information and assistance provided by the center 
        available for those involved in energy research, development, 
        demonstration, and commercial application.

SEC. 4403. BIOFUELS AND ADVANCED BIOFUELS INFRASTRUCTURE.

    Section 932 of the Energy Policy Act of 2005 (42 U.S.C. 16232) is 
amended by adding at the end the following new subsection:
    ``(f) Biofuels and Advanced Biofuels Infrastructure.--The 
Secretary, in consultation with the Secretary of Transportation and the 
Assistant Administrator for Research and Development of the 
Environmental Protection Agency, shall carry out a program of research, 
development, and demonstration as it relates to existing transportation 
fuel distribution infrastructure and new alternative distribution 
infrastructure. The program shall focus on the physical and chemical 
properties of biofuels and efforts to prevent or mitigate against 
adverse impacts of those properties in the following areas:
            ``(1) Corrosion of metal, plastic, rubber, cork, 
        fiberglass, glues, or any other material used in pipes and 
        storage tanks.
            ``(2) Dissolving of storage tank sediments.
            ``(3) Clogging of filters.
            ``(4) Contamination from water or other adulterants or 
        pollutants.
            ``(5) Poor flow properties related to low temperatures.
            ``(6) Oxidative and thermal instability in long-term 
        storage and use.
            ``(7) Microbial contamination.
            ``(8) Problems associated with electrical conductivity.
            ``(9) Such other areas as the Secretary considers 
        appropriate.''.

SEC. 4404. BIODIESEL.

    (a) Biodiesel Study.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit to Congress a report 
on any research and development challenges inherent in increasing to 
2.5 percent the proportion of diesel fuel sold in the United States 
that is biodiesel (within the meaning of section 211(o) of the Clean 
Air Act).
    (b) Materials for the Establishment of Standards.--The Director of 
the National Institute of Standards and Technology shall make publicly 
available the physical property data and characterization of biodiesel, 
as is defined in subsection (a), in order to encourage the 
establishment of standards that will promote their utilization in the 
transportation and fuel delivery system.

SEC. 4405. BIOGAS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall submit to Congress a report on any research and 
development challenges inherent in increasing to 5 percent of the 
transportation fuels sold in the United States fuel with biogas or a 
blend of biogas and natural gas.

SEC. 4406. BIORESEARCH CENTERS FOR SYSTEMS BIOLOGY PROGRAM.

    Section 977(a)(1) of the Energy Policy Act of 2005 (42 U.S.C. 
16317(a)(1)) is amended by inserting before the period at the end the 
following: ``, including the establishment of at least 5 bioresearch 
centers of varying sizes, as appropriate, that focus on biofuels, of 
which at least 1 center shall be located in each of the 5 Petroleum 
Administration for Defense Districts, which shall be established for a 
period of 5 years, after which the grantee may reapply for selection on 
a competitive basis''.

SEC. 4407. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND DEVELOPMENT IN 
              CERTAIN STATES.

    (a) In General.--The Secretary shall provide grants to eligible 
entities for research, development, demonstration, and commercial 
application of biofuel production technologies in States with low rates 
of ethanol production, including low rates of production of cellulosic 
biomass ethanol, as determined by the Secretary.
    (b) Eligibility.--To be eligible to receive a grant under this 
section, an entity shall--
            (1)(A) be an institution of higher education (as defined in 
        section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)) 
        located in a State described in subsection (a); or
            (B) be a consortium including at least 1 such institution 
        of higher education, and industry, State agencies, Indian 
        tribal agencies, National Laboratories, or local government 
        agencies located in the State; and
            (2) have proven experience and capabilities with relevant 
        technologies.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $25,000,000 for 
each of fiscal years 2008 through 2010.

SEC. 4408. BIOREFINERY ENERGY EFFICIENCY.

    Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232), is 
amended by adding at the end the following new subsections:
    ``(g) Biorefinery Energy Efficiency.--The Secretary shall establish 
a program of research, development, demonstration, and commercial 
application for increasing energy efficiency and reducing energy 
consumption in the operation of biorefinery facilities.
    ``(h) Retrofit Technologies for the Development of Ethanol From 
Cellulosic Materials.--The Secretary shall establish a program of 
research, development, demonstration, and commercial application on 
technologies and processes to enable biorefineries that exclusively use 
corn grain or corn starch as a feedstock to produce ethanol to be 
retrofitted to accept a range of biomass, including lignocellulosic 
feedstocks.''.

SEC. 4409. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED GASOLINE 
              WITH HIGHER LEVELS OF ETHANOL.

    (a) In General.--The Secretary, in cooperation with the Secretary 
of Agriculture, the Administrator of the Environmental Protection 
Agency, and the Secretary of Transportation, shall conduct a study of 
the methods of increasing consumption in the United States of ethanol-
blended gasoline with levels of ethanol that are not less than 10 
percent and not more than 40 percent.
    (b) Study.--The study under subsection (a) shall include--
            (1) a review of production and infrastructure constraints 
        on increasing consumption of ethanol;
            (2) an evaluation of the environmental consequences of the 
        ethanol blends described in subsection (a) on evaporative and 
        exhaust emissions from on-road, off-road, and marine vehicle 
        engines;
            (3) an evaluation of the consequences of the ethanol blends 
        described in subsection (a) on the operation, durability, and 
        performance of on-road, off-road, and marine vehicle engines; 
        and
            (4) an evaluation of the life cycle impact of the use of 
        the ethanol blends described in subsection (a) on carbon 
        dioxide and greenhouse gas emissions.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report describing 
the results of the study conducted under this section.

SEC. 4410. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES TO USE E-
              85 FUEL.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Transportation, shall conduct a study of whether optimizing flexible 
fueled vehicles to operate using E-85 fuel would increase the fuel 
efficiency of flexible fueled vehicles.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Science and 
Technology of the House of Representatives the Committee on Energy and 
Natural Resources of the Senate a report that describes the results of 
the study under this section, including any recommendations of the 
Secretary.

SEC. 4411. STUDY OF ENGINE DURABILITY AND PERFORMANCE ASSOCIATED WITH 
              THE USE OF BIODIESEL.

    (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Secretary shall initiate a study on the effects of the 
use of biodiesel on the performance and durability of engines and 
engine systems.
    (b) Components.--The study under this section shall include--
            (1) an assessment of whether the use of biodiesel lessens 
        the durability and performance of conventional diesel engines 
        and engine systems; and
            (2) an assessment of the effects referred to in subsection 
        (a) with respect to biodiesel blends at varying concentrations, 
        including the following percentage concentrations of biodiesel:
                    (A) 5 percent biodiesel.
                    (B) 10 percent biodiesel.
                    (C) 20 percent biodiesel.
                    (D) 30 percent biodiesel.
                    (E) 100 percent biodiesel.
    (c) Report.--Not later than 24 months after the date of enactment 
of this Act, the Secretary shall submit to the Committee on Science and 
Technology of the House of Representatives the Committee on Energy and 
Natural Resources of the Senate a report that describes the results of 
the study under this section, including any recommendations of the 
Secretary.

SEC. 4412. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION OF 
              APPROPRIATION.

    (a) Section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) 
is amended--
            (1) in subsection (b)--
                    (A) at the end of paragraph (2) by striking 
                ``and'';
                    (B) at the end of paragraph (3) by striking the 
                period and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) $963,000,000 for fiscal year 2010.''; and
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``$251,000,000'' 
                and inserting ``$377,000,000'';
                    (B) in paragraph (3), by striking ``$274,000,000'' 
                and inserting ``$398,000,000''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) $419,000,000 for fiscal year 2010, of which 
        $150,000,00 shall be for section 932(d).''.

SEC. 4413. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.

    (a) Amendments.--Section 977 of the Energy Policy Act of 2005 (42 
U.S.C. 16317) is amended--
            (1) in subsection (a)(1), by striking ``and computational 
        biology'' and inserting ``computational biology, and 
        environmental science''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``in sustainable 
                production systems that reduce greenhouse gas 
                emissions'' after ``hydrogen'';
                    (B) at the end of paragraph (3), by striking 
                ``and'';
                    (C) by redesignating paragraph (4) as paragraph 
                (5); and
                    (D) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) develop cellulosic and other feedstocks that are less 
        resource and land intensive and that promote sustainable use of 
        resources, including soil, water, energy, forests, and land, 
        and ensure protection of air, water, and soil quality; and''.
    (b) Tools and Evaluation.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency and the Secretary 
of Agriculture, shall establish a research and development program to--
            (1) improve and develop analytical tools to facilitate the 
        analysis of life-cycle energy and greenhouse gas emissions, 
        including emissions related to direct and indirect land use 
        changes, attributable to all potential biofuel feedstocks and 
        production processes; and
            (2) promote the systematic evaluation of the impact of 
        expanded biofuel production on the environment, including 
        forestlands, and on the food supply for humans and animals.
    (c) Small-Scale Production and Use of Biofuels.--The Secretary, in 
cooperation with the Secretary of Agriculture, shall establish a 
research and development program to facilitate small-scale production, 
local, and on-farm use of biofuels, including the development of small-
scale gasification technologies for production of biofuel from 
cellulosic feedstocks.

SEC. 4414. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS 
              VEHICLES.

    (a) In General.--The Secretary of Energy shall conduct a study of 
methods of increasing the fuel efficiency of vehicles using biogas by 
optimizing natural gas vehicle systems that can operate on biogas, 
including the advancement of vehicle fuel systems and the combination 
of hybrid-electric and plug-in hybrid electric drive platforms with 
natural gas vehicle systems using biogas.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary of Energy shall submit to the Committee on 
Energy and Natural Resources of the Senate and the Committee on Science 
and Technology of the House of Representatives a report that describes 
the results of the study, including any recommendations of the 
Secretary.

SEC. 4415. STANDARDS FOR BIOFUELS DISPENSERS.

    In the absence of appropriate private sector standards adopted 
prior to the date of enactment of this Act, and consistent with the 
National Technology Transfer and Advancement Act of 1995, the Secretary 
of Energy, in consultation with the Director of the National Institute 
of Standards and Technology, shall develop standards for biofuel 
dispenser systems in order to promote broader biofuels adoption and 
utilization.

SEC. 4416. ALGAL BIOMASS.

    Not later than 90 days after the date of enactment of this Act, the 
Secretary shall submit to the Committee on Science and Technology of 
the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on the progress of the research and 
development that is being conducted on the use of algae as a feedstock 
for the production of biofuels. The report shall identify continuing 
research and development challenges and any regulatory or other 
barriers found by the Secretary that hinder the use of this resource, 
as well as recommendations on how to encourage and further its 
development as a viable transportation fuel.

                 Subtitle F--Carbon Capture and Storage

SEC. 4501. SHORT TITLE.

    This subtitle may be cited as the ``Department of Energy Carbon 
Capture and Storage Research, Development, and Demonstration Act of 
2007''.

SEC. 4502. CARBON CAPTURE AND STORAGE RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION PROGRAM.

    (a) Amendments.--Section 963 of the Energy Policy Act of 2005 (42 
U.S.C. 16293) is amended--
            (1) in the section heading, by striking ``research and 
        development'' and inserting ``and storage research, 
        development, and demonstration'';
            (2) in subsection (a)--
                    (A) by striking ``research and development'' and 
                inserting ``and storage research, development, and 
                demonstration''; and
                    (B) by striking ``capture technologies on 
                combustion-based systems'' and inserting ``capture and 
                storage technologies related to electric power 
                generating systems'';
            (3) in subsection (b)--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) 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.''; and
            (4) by striking subsection (c) and inserting the following:
    ``(c) Programmatic Activities.--
            ``(1) Fundamental science and engineering research and 
        development and demonstration supporting carbon capture and 
        storage technologies.--
                    ``(A) In general.--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, or 
                to learn how to use carbon dioxide in products to lead 
                to an overall reduction of carbon dioxide emissions.
                    ``(B) Program integration.--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 and carbon use activities, including--
                            ``(i) development of new or advanced 
                        technologies for the capture of carbon dioxide;
                            ``(ii) development of new or advanced 
                        technologies that reduce the cost and increase 
                        the efficacy of the compression of carbon 
                        dioxide required for the storage of carbon 
                        dioxide;
                            ``(iii) modeling and simulation of 
                        geological sequestration field demonstrations;
                            ``(iv) quantitative assessment of risks 
                        relating to specific field sites for testing of 
                        sequestration technologies; and
                            ``(v) research and development of new and 
                        advanced technologies for carbon use, including 
                        recycling and reuse of carbon dioxide.
            ``(2) Field validation testing activities.--
                    ``(A) In general.--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--
                            ``(i) operating oil and gas fields;
                            ``(ii) depleted oil and gas fields;
                            ``(iii) unmineable coal seams;
                            ``(iv) deep saline formations;
                            ``(v) deep geologic systems that may be 
                        used as engineered reservoirs to extract 
                        economical quantities of heat from geothermal 
                        resources of low permeability or porosity;
                            ``(vi) deep geologic systems containing 
                        basalt formations; and
                            ``(vii) high altitude terrain oil and gas 
                        fields.
                    ``(B) Objectives.--The objectives of tests 
                conducted under this paragraph shall be--
                            ``(i) to develop and validate geophysical 
                        tools, analysis, and modeling to monitor, 
                        predict, and verify carbon dioxide containment;
                            ``(ii) to validate modeling of geological 
                        formations;
                            ``(iii) to refine storage capacity 
                        estimated for particular geological formations;
                            ``(iv) to determine the fate of carbon 
                        dioxide concurrent with and following injection 
                        into geological formations;
                            ``(v) to develop and implement best 
                        practices for operations relating to, and 
                        monitoring of, injection and storage of carbon 
                        dioxide in geologic formations;
                            ``(vi) to assess and ensure the safety of 
                        operations related to geological storage of 
                        carbon dioxide;
                            ``(vii) 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; and
                            ``(viii) to support Environmental 
                        Protection Agency efforts, in consultation with 
                        other agencies, to develop a scientifically 
                        sound regulatory framework to enable 
                        commercial-scale sequestration operations while 
                        safeguarding human health and underground 
                        sources of drinking water.
            ``(3) Large-scale carbon dioxide sequestration testing.--
                    ``(A) In general.--The Secretary shall conduct not 
                less than 7 initial large-volume sequestration tests, 
                not including the FutureGen project, 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.
                    ``(B) Diversity of formations to be studied.--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.
                    ``(C) Source of carbon dioxide for large-scale 
                sequestration demonstrations.--In the process of any 
                acquisition of carbon dioxide for sequestration 
                demonstrations under subparagraph (A), the Secretary 
                shall give preference to purchases of carbon dioxide 
                from industrial and coal-fired electric generation 
                facilities. To the extent feasible, the Secretary shall 
                prefer test projects from industrial and coal-fired 
                electric generation facilities that would facilitate 
                the creation of an integrated system of capture, 
                transportation and storage of carbon dioxide. Until 
                coal-fired electric generation facilities, either new 
                or existing, are operating with carbon dioxide capture 
                technologies, other industrial sources of carbon 
                dioxide should be pursued under this paragraph. The 
                preference provided for under this subparagraph shall 
                not delay the implementation of the large-scale 
                sequestration tests under this paragraph.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `large-scale' means the injection of more than 
                1,000,000 metric tons of carbon dioxide annually, or a 
                scale that demonstrably exceeds the necessary 
                thresholds in key geologic transients to validate the 
                ability continuously to inject quantities on the order 
                of several million metric tons of industrial carbon 
                dioxide annually for a large number of years.
            ``(4) Large-scale demonstration of carbon dioxide capture 
        technologies.--
                    ``(A) In general.--The Secretary shall carry out at 
                least 3 and no more than 5 demonstrations, that include 
                each of the technologies described in subparagraph (B), 
                for the large-scale capture of carbon dioxide from 
                industrial sources of carbon dioxide, at least 2 of 
                which are facilities that generate electric energy from 
                fossil fuels. Candidate facilities for other 
                demonstrations under this paragraph shall include 
                facilities that refine petroleum, manufacture iron or 
                steel, manufacture cement or cement clinker, 
                manufacture commodity chemicals, and ethanol and 
                fertilizer plants. Consideration may be given to 
                capture of carbon dioxide from industrial facilities 
                and electric generation carbon sources that are near 
                suitable geological reservoirs and could continue 
                sequestration. To ensure reduced carbon dioxide 
                emissions, the Secretary shall take necessary actions 
                to provide for the integration of the program under 
                this paragraph with the long-term carbon dioxide 
                sequestration demonstrations described in paragraph 
                (3). These actions should not delay implementation of 
                the large-scale sequestration tests authorized in 
                paragraph (3).
                    ``(B) Technologies.--The technologies referred to 
                in subparagraph (A) are precombustion capture, post-
                combustion capture, and oxycombustion.
                    ``(C) Scope of award.--An award under this 
                paragraph shall be only for the portion of the project 
                that carries out the large-scale capture (including 
                purification and compression) of carbon dioxide, as 
                well as the cost of transportation and injection of 
                carbon dioxide.
            ``(5) Preference in project selection from meritorious 
        proposals.--In making competitive awards under this subsection, 
        subject to the requirements of section 989, the Secretary 
        shall--
                    ``(A) give preference to proposals from 
                partnerships among industrial, academic, and government 
                entities; and  
                    ``(B) require recipients to provide assurances that 
                all laborers and mechanics employed by contractors and 
                subcontractors in the construction, repair, or 
                alteration of new or existing facilities performed in 
                order to carry out a demonstration or commercial 
                application activity authorized under this subsection 
                shall be paid wages at rates not less than those 
                prevailing on similar construction in the locality, as 
                determined by the Secretary of Labor in accordance with 
                subchapter IV of chapter 31 of   title 40, United 
                States Code, and the Secretary of Labor shall, with 
                respect to the labor standards in this paragraph, have 
                the authority and functions set forth in Reorganization 
                Plan Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 
                Appendix) and section 3145 of title 40, United States 
                Code.
            ``(6) Cost sharing.--Activities under this subsection shall 
        be considered research and development activities that are 
        subject to the cost-sharing requirements of section 988(b), 
        except that the Federal share of a project under paragraph (4) 
        shall not exceed 50 percent.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Secretary for carrying out this section, other than 
        subsection (c)(3) and (4)--
                    ``(A) $100,000,000 for fiscal year 2008;
                    ``(B) $100,000,000 for fiscal year 2009;
                    ``(C) $100,000,000 for fiscal year 2010; and
                    ``(D) $100,000,000 for fiscal year 2011.
            ``(2) Sequestration.--There are authorized to be 
        appropriated to the Secretary for carrying out subsection 
        (c)(3)--
                    ``(A) $140,000,000 for fiscal year 2008;
                    ``(B) $140,000,000 for fiscal year 2009;
                    ``(C) $140,000,000 for fiscal year 2010; and
                    ``(D) $140,000,000 for fiscal year 2011.
            ``(3) Carbon capture.--There are authorized to be 
        appropriated to the Secretary for carrying out subsection 
        (c)(4)--
                    ``(A) $180,000,000 for fiscal year 2009;
                    ``(B) $180,000,000 for fiscal year 2010;
                    ``(C) $180,000,000 for fiscal year 2011; and
                    ``(D) $180,000,000 for fiscal year 2012.''.
    (b) Table of Contents Amendment.--The item relating to section 963 
in the table of contents for the Energy Policy Act of 2005 is amended 
to read as follows:

``Sec. 963. Carbon capture and storage research, development, and 
                            demonstration program.''.

SEC. 4503. REVIEW OF LARGE-SCALE PROGRAMS.

    The Secretary of Energy shall enter into an arrangement with the 
National Academy of Sciences for an independent review and oversight, 
beginning in 2011, of the programs under section 963(c)(3) and (4) of 
the Energy Policy Act of 2005, as added by section 4502 of this 
subtitle, to ensure that the benefits of such programs are maximized. 
Not later than January 1, 2012, the Secretary shall transmit to the 
Congress a report on the results of such review and oversight.

SEC. 4504. SAFETY RESEARCH.

    (a) Program.--The Assistant Administrator for Research and 
Development of the Environmental Protection Agency shall conduct a 
research program to determine procedures necessary to protect public 
health, safety, and the environment from impacts that may be associated 
with capture, injection, and sequestration of greenhouse gases in 
subterranean reservoirs.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for carrying out this section $5,000,000 for each fiscal 
year.

SEC. 4505. GEOLOGICAL SEQUESTRATION TRAINING AND RESEARCH.

    (a) Study.--
            (1) In general.--The Secretary of Energy shall enter into 
        an arrangement with the National Academy of Sciences to 
        undertake a study that--
                    (A) defines an interdisciplinary program in 
                geology, engineering, hydrology, environmental science, 
                and related disciplines that will support the Nation's 
                capability to capture and sequester carbon dioxide from 
                anthropogenic sources;
                    (B) addresses undergraduate and graduate education, 
                especially to help develop graduate level programs of 
                research and instruction that lead to advanced degrees 
                with emphasis on geological sequestration science;
                    (C) develops guidelines for proposals from colleges 
                and universities with substantial capabilities in the 
                required disciplines that wish to implement geological 
                sequestration science programs that advance the 
                Nation's capacity to address carbon management through 
                geological sequestration science; and
                    (D) outlines a budget and recommendations for how 
                much funding will be necessary to establish and carry 
                out the grant program under subsection (b).
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Energy shall transmit 
        to the Congress a copy of the results of the study provided by 
        the National Academy of Sciences under paragraph (1).
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary for carrying out this 
        subsection $1,000,000 for fiscal year 2008.
    (b) Grant Program.--
            (1) Establishment.--The Secretary of Energy, through the 
        National Energy Technology Laboratory, shall establish a 
        competitive grant program through which colleges and 
        universities may apply for and receive 4-year grants for--
                    (A) salary and startup costs for newly designated 
                faculty positions in an integrated geological carbon 
                sequestration science program; and
                    (B) internships for graduate students in geological 
                sequestration science.
            (2) Renewal.--Grants under this subsection shall be 
        renewable for up to 2 additional 3-year terms, based on 
        performance criteria, established by the National Academy of 
        Sciences study conducted under subsection (a), that include the 
        number of graduates of such programs.
            (3) Interface with regional geological carbon sequestration 
        partnerships.--To the greatest extent possible, geological 
        carbon sequestration science programs supported under this 
        subsection shall interface with the research of the Regional 
        Carbon Sequestration Partnerships operated by the Department of 
        Energy to provide internships and practical training in carbon 
        capture and geological sequestration.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary for carrying out this 
        subsection such sums as may be necessary.

SEC. 4506. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.

    (a) Establishment.--The Secretary of Energy, in consultation with 
other appropriate agencies, shall establish a university based research 
and development program to study carbon capture and sequestration using 
the various types of coal.
    (b) Grants.--Under this section, the Secretary shall award 5 grants 
for projects submitted by colleges or universities to study carbon 
capture and sequestration in conjunction with the recovery of oil and 
other enhanced elemental and mineral recovery. Consideration shall be 
given to areas that have regional sources of coal for the study of 
carbon capture and sequestration.
    (c) Rural and Agricultural Institutions.--The Secretary shall 
designate that at least 2 of these grants shall be awarded to rural or 
agricultural based institutions that offer interdisciplinary programs 
in the area of environmental science to study carbon capture and 
sequestration in conjunction with the recovery of oil and other 
enhanced elemental and mineral recovery.
    (d) Authorization of Appropriations.--There are to be authorized to 
be appropriated $10,000,000 to carry out this section.

                   Subtitle G--Global Change Research

SEC. 4601. SHORT TITLE.

    This subtitle may be cited as the ``Global Change Research and Data 
Management Act of 2007''.

                     PART 1--GLOBAL CHANGE RESEARCH

SEC. 4611. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress makes the following findings:
            (1) Industrial, agricultural, and other human activities, 
        coupled with an expanding world population, are contributing to 
        processes of global change that are significantly altering the 
        Earth habitat.
            (2) Such human-induced changes, in conjunction with natural 
        fluctuations, may lead to significant alterations of world 
        climate patterns. Over the next century, these changes could 
        adversely affect world agricultural and marine production, 
        coastal habitability, biological diversity, human health, 
        global social and political stability, and global economic 
        activity.
            (3) Developments in interdisciplinary Earth sciences, 
        global observing systems, and satellite and computing 
        technologies make possible significant scientific understanding 
        of global changes and their effects, and have resulted in the 
        significant expansion of environmental data and information.
            (4) Development of effective policies to prevent, mitigate, 
        and adapt to global change will rely on improvement in 
        scientific understanding of global environmental processes and 
        on development of information that is of use to decisionmakers 
        at the local, regional, and national levels.
            (5) Although the United States Global Change Research 
        Program has made significant contributions to understanding 
        Earth's climate and the anthropogenic influences on Earth's 
        climate and its ecosystems, the Program now needs to produce 
        more information to meet the expressed needs of decisionmakers.
            (6) Predictions of future climate conditions for specific 
        regions have considerable uncertainty and are unlikely to be 
        confirmed in a time period necessary to inform decisions on 
        land, water, and resource management. However, improved 
        understanding of global change should be used to assist 
        decisionmakers in the development of policies to ensure that 
        ecological, social, and economic systems are resilient under a 
        variety of plausible climate futures.
            (7) In order to most effectively meet the needs of 
        decisionmakers, both the research agenda of the United States 
        Global Change Research Program and its implementation must be 
        informed by continuous feedback from documented users of 
        information generated by the Program.
    (b) Purpose.--The purpose of this part is to provide for the 
continuation and coordination of a comprehensive and integrated United 
States observation, research, and outreach program which will assist 
the Nation and the world to understand, assess, predict, and respond to 
the effects of human-induced and natural processes of global change.

SEC. 4612. DEFINITIONS.

    For purposes of this part--
            (1) the term ``global change'' means human-induced or 
        natural changes in the global environment (including 
        alterations in climate, land productivity, oceans or other 
        water resources, atmospheric chemistry, biodiversity, and 
        ecological systems) that may alter the capacity of the Earth to 
        sustain life;
            (2) the term ``global change research'' means study, 
        monitoring, assessment, prediction, and information management 
        activities to describe and understand--
                    (A) the interactive physical, chemical, and 
                biological processes that regulate the total Earth 
                system;
                    (B) the unique environment that the Earth provides 
                for life;
                    (C) changes that are occurring in the Earth system; 
                and
                    (D) the manner in which such system, environment, 
                and changes are influenced by human actions;
            (3) the term ``interagency committee'' means the 
        interagency committee established under section 4613;
            (4) the term ``Plan'' means the National Global Change 
        Research and Assessment Plan developed under section 4615;
            (5) the term ``Program'' means the United States Global 
        Change Research Program established under section 4614; and
            (6) the term ``regional climate change'' means the natural 
        or human-induced changes manifested in the local or regional 
        environment (including alterations in weather patterns, land 
        productivity, water resources, sea level rise, atmospheric 
        chemistry, biodiversity, and ecological systems) that may alter 
        the capacity of a specific region to support current or future 
        social and economic activity or natural ecosystems.

SEC. 4613. INTERAGENCY COOPERATION AND COORDINATION.

    (a) Establishment.--The President shall establish or designate an 
interagency committee to ensure cooperation and coordination of all 
Federal research activities pertaining to processes of global change 
for the purpose of increasing the overall effectiveness and 
productivity of Federal global change research efforts. The interagency 
committee shall include representatives of both agencies conducting 
global change research and agencies with authority over resources 
likely to be affected by global change.
    (b) Functions of the Interagency Committee.--The interagency 
committee shall--
            (1) serve as the forum for developing the Plan and for 
        overseeing its implementation;
            (2) serve as the forum for developing the vulnerability 
        assessment under section 4617;
            (3) ensure cooperation among Federal agencies with respect 
        to global change research activities;
            (4) work with academic, State, industry, and other groups 
        conducting global change research, to provide for periodic 
        public and peer review of the Program;
            (5) cooperate with the Secretary of State in--
                    (A) providing representation at international 
                meetings and conferences on global change research in 
                which the United States participates; and
                    (B) coordinating the Federal activities of the 
                United States with programs of other nations and with 
                international global change research activities;
            (6) work with appropriate Federal, State, regional, and 
        local authorities to ensure that the Program is designed to 
        produce information needed to develop policies to reduce the 
        vulnerability of the United States and other regions to global 
        change;
            (7) facilitate ongoing dialog and information exchange with 
        regional, State, and local governments and other user 
        communities; and
            (8) identify additional decisionmaking groups that may use 
        information generated through the Program.

SEC. 4614. UNITED STATES GLOBAL CHANGE RESEARCH PROGRAM.

    (a) Establishment.--The President shall establish an interagency 
United States Global Change Research Program to improve understanding 
of global change, to respond to the information needs of communities 
and decisionmakers, and to provide periodic assessments of the 
vulnerability of the United States and other regions to global and 
regional climate change. The Program shall be implemented in accordance 
with the Plan.
    (b) Lead Agency.--The lead agency for the United States Global 
Change Research Program shall be the Office of Science and Technology 
Policy.
    (c) Interagency Program Activities.--The Director of the Office of 
Science and Technology Policy, in consultation with the interagency 
committee, shall identify activities included in the Plan that involve 
participation by 2 or more agencies in the Program, and that do not 
fall within the current fiscal year budget allocations of those 
participating agencies, to fulfill the requirements of this subtitle. 
The Director of the Office of Science and Technology Policy shall 
allocate funds to the agencies to conduct the identified interagency 
activities. Such activities may include--
            (1) development of scenarios for climate, land-cover 
        change, population growth, and socioeconomic development;
            (2) calibration and testing of alternative regional and 
        global climate models;
            (3) identification of economic sectors and regional 
        climatic zones; and
            (4) convening regional workshops to facilitate information 
        exchange and involvement of regional, State, and local 
        decisionmakers, non-Federal experts, and other stakeholder 
        groups in the activities of the Program.
    (d) Workshops.--The Director shall ensure that at least one 
workshop is held per year in each region identified by the Plan under 
section 4615(b)(11) to facilitate information exchange and outreach to 
regional, State, and local stakeholders as required by this subtitle.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Office of Science and Technology Policy for 
carrying out this section $10,000,000 for each of the fiscal years 2008 
through 2013.

SEC. 4615. NATIONAL GLOBAL CHANGE RESEARCH AND ASSESSMENT PLAN.

    (a) In General.--The President shall develop a National Global 
Change Research and Assessment Plan for implementation of the Program. 
The Plan shall contain recommendations for global change research and 
assessment. The President shall submit an outline for the development 
of the Plan to the Congress within 1 year after the date of enactment 
of this Act, and shall submit a completed Plan to the Congress within 3 
years after the date of enactment of this Act. Revised Plans shall be 
submitted to the Congress at least once every 5 years thereafter. In 
the development of each Plan, the President shall conduct a formal 
assessment process under this section to determine the needs of 
appropriate Federal, State, regional, and local authorities and other 
interested parties regarding the types of information needed by them in 
developing policies to reduce society's vulnerability to global change 
and shall utilize these assessments, including the reviews by the 
National Academy of Sciences and the National Governors Association 
under subsections (e) and (f), in developing the Plan.
    (b) Contents of the Plan.--The Plan shall--
            (1) establish, for the 10-year period beginning in the year 
        the Plan is submitted, the goals and priorities for Federal 
        global change research which most effectively advance 
        scientific understanding of global change and provide 
        information of use to Federal, State, regional, and local 
        authorities in the development of policies relating to global 
        change;
            (2) describe specific activities, including efforts to 
        determine user information needs, research activities, data 
        collection, database development, and data analysis 
        requirements, development of regional scenarios, assessment of 
        model predictability, assessment of climate change impacts, 
        participation in international research efforts, and 
        information management, required to achieve such goals and 
        priorities;
            (3) identify relevant programs and activities of the 
        Federal agencies that contribute to the Program directly and 
        indirectly;
            (4) set forth the role of each Federal agency in 
        implementing the Plan;
            (5) consider and utilize, as appropriate, reports and 
        studies conducted by Federal agencies, the National Research 
        Council, or other entities;
            (6) make recommendations for the coordination of the global 
        change research and assessment activities of the United States 
        with such activities of other nations and international 
        organizations, including--
                    (A) a description of the extent and nature of 
                international cooperative activities;
                    (B) bilateral and multilateral efforts to provide 
                worldwide access to scientific data and information; 
                and
                    (C) improving participation by developing nations 
                in international global change research and 
                environmental data collection;
            (7) detail budget requirements for Federal global change 
        research and assessment activities to be conducted under the 
        Plan;
            (8) catalog the type of information identified by 
        appropriate Federal, State, regional, and local decisionmakers 
        needed to develop policies to reduce society's vulnerability to 
        global change and indicate how the planned research will meet 
        these decisionmakers' information needs;
            (9) identify the observing systems currently employed in 
        collecting data relevant to global and regional climate change 
        research and prioritize additional observation systems that may 
        be needed to ensure adequate data collection and monitoring of 
        global change;
            (10) describe specific activities designed to facilitate 
        outreach and data and information exchange with regional, 
        State, and local governments and other user communities; and
            (11) identify and describe regions of the United States 
        that are likely to experience similar impacts of global change 
        or are likely to share similar vulnerabilities to global 
        change.
    (c) Research Elements.--The Plan shall include at a minimum the 
following research elements:
            (1) Global measurements, establishing worldwide to regional 
        scale observations prioritized to understand global change and 
        to meet the information needs of decisionmakers on all relevant 
        spatial and time scales.
            (2) Information on economic, demographic, and technological 
        trends that contribute to changes in the Earth system and that 
        influence society's vulnerability to global and regional 
        climate change.
            (3) Development of indicators and baseline databases to 
        document global change, including changes in species 
        distribution and behavior, extent of glaciations, and changes 
        in sea level.
            (4) Studies of historical changes in the Earth system, 
        using evidence from the geological and fossil record.
            (5) Assessments of predictability using quantitative models 
        of the Earth system to simulate global and regional 
        environmental processes and trends.
            (6) Focused research initiatives to understand the nature 
        of and interaction among physical, chemical, biological, land 
        use, and social processes related to global and regional 
        climate change.
            (7) Focused research initiatives to determine and then meet 
        the information needs of appropriate Federal, State, and 
        regional decisionmakers.
    (d) Information Management.--The Plan shall incorporate, to the 
extent practicable, the recommendations relating to data acquisition, 
management, integration, and archiving made by the interagency climate 
and other global change data management working group established under 
section 4633.
    (e) National Academy of Sciences Evaluation.--The President shall 
enter into an agreement with the National Academy of Sciences under 
which the Academy shall--
            (1) evaluate the scientific content of the Plan; and
            (2) recommend priorities for future global and regional 
        climate change research and assessment.
    (f) National Governors Association Evaluation.--The President shall 
enter into an agreement with the National Governors Association Center 
for Best Practices under which that Center shall--
            (1) evaluate the utility to State, local, and regional 
        decisionmakers of each Plan and of the anticipated and actual 
        information outputs of the Program for development of State, 
        local, and regional policies to reduce vulnerability to global 
        change; and
            (2) recommend priorities for future global and regional 
        climate change research and assessment.
    (g) Public Participation.--In developing the Plan, the President 
shall consult with representatives of academic, State, industry, and 
environmental groups. Not later than 90 days before the President 
submits the Plan, or any revision thereof, to the Congress, a summary 
of the proposed Plan shall be published in the Federal Register for a 
public comment period of not less than 60 days.

SEC. 4616. BUDGET COORDINATION.

    (a) In General.--The President shall provide general guidance to 
each Federal agency participating in the Program with respect to the 
preparation of requests for appropriations for activities related to 
the Program.
    (b) Consideration in President's Budget.--The President shall 
submit, at the time of his annual budget request to Congress, a 
description of those items in each agency's annual budget which are 
elements of the Program.

SEC. 4617. VULNERABILITY ASSESSMENT.

    (a) Requirement.--Within 1 year after the date of enactment of this 
Act, and at least once every 5 years thereafter, the President shall 
submit to the Congress an assessment which--
            (1) integrates, evaluates, and interprets the findings of 
        the Program and discusses the scientific uncertainties 
        associated with such findings;
            (2) analyzes current trends in global change, both human-
        induced and natural, and projects major trends for the 
        subsequent 25 to 100 years;
            (3) based on indicators and baselines developed under 
        section 4615(c)(3), as well as other measurements, analyzes 
        changes to the natural environment, land and water resources, 
        and biological diversity in--
                    (A) major geographic regions of the United States; 
                and
                    (B) other continents;
            (4) analyzes the effects of global change, including the 
        changes described in paragraph (3), on food and fiber 
        production, energy production and use, transportation, human 
        health and welfare, water availability and coastal 
        infrastructure, and human social and economic systems, 
        including providing information about the differential impacts 
        on specific geographic regions within the United States, on 
        people of different income levels within those regions, and for 
        rural and urban areas within those regions; and
            (5) summarizes the vulnerability of different geographic 
        regions of the world to global change and analyzes the 
        implications of global change for the United States, including 
        international assistance, population displacement, food and 
        resource availability, and national security.
    (b) Use of Related Reports.--To the extent appropriate, the 
assessment produced pursuant to this section may coordinate with, 
consider, incorporate, or otherwise make use of related reports, 
assessments, or information produced by the United States Global Change 
Research Program, regional, State, and local entities, and 
international organizations, including the World Meteorological 
Organization and the Intergovernmental Panel on Climate Change.

SEC. 4618. POLICY ASSESSMENT.

    Not later than 1 year after the date of enactment of this Act, and 
at least once every 4 years thereafter, the President shall enter into 
a joint agreement with the National Academy of Public Administration 
and the National Academy of Sciences under which the Academies shall--
            (1) document current policy options being implemented by 
        Federal, State, and local governments to mitigate or adapt to 
        the effects of global and regional climate change;
            (2) evaluate the realized and anticipated effectiveness of 
        those current policy options in meeting mitigation and 
        adaptation goals;
            (3) identify and evaluate a range of additional policy 
        options and infrastructure for mitigating or adapting to the 
        effects of global and regional climate change;
            (4) analyze the adoption rates of policies and technologies 
        available to reduce the vulnerability of society to global 
        change with an evaluation of the market and policy obstacles to 
        their adoption in the United States; and
            (5) evaluate the distribution of economic costs and 
        benefits of these policy options across different United States 
        economic sectors.

SEC. 4619. ANNUAL REPORT.

    Each year at the time of submission to the Congress of the 
President's budget request, the President shall submit to the Congress 
a report on the activities conducted pursuant to this part, including--
            (1) a description of the activities of the Program during 
        the past fiscal year;
            (2) a description of the activities planned in the next 
        fiscal year toward achieving the goals of the Plan; and
            (3) a description of the groups or categories of State, 
        local, and regional decisionmakers identified as potential 
        users of the information generated through the Program and a 
        description of the activities used to facilitate consultations 
        with and outreach to these groups, coordinated through the work 
        of the interagency committee.

SEC. 4620. RELATION TO OTHER AUTHORITIES.

    The President shall--
            (1) ensure that relevant research, assessment, and outreach 
        activities of the National Climate Program, established by the 
        National Climate Program Act (15 U.S.C. 2901 et seq.), are 
        considered in developing national global and regional climate 
        change research and assessment efforts; and
            (2) facilitate ongoing dialog and information exchange with 
        regional, State, and local governments and other user 
        communities through programs authorized in the National Climate 
        Program Act (15 U.S.C. 2901 et seq.).

SEC. 4621. REPEAL.

    The Global Change Research Act of 1990 (15 U.S.C. 2921 et seq.) is 
repealed.

SEC. 4622. GLOBAL CHANGE RESEARCH INFORMATION.

    The President shall establish or designate a Global Change Research 
Information Exchange to make scientific research and other information 
produced through or utilized by the Program which would be useful in 
preventing, mitigating, or adapting to the effects of global change 
accessible through electronic means.

SEC. 4623. ICE SHEET STUDY AND REPORT.

    (a) Study.--
            (1) Requirement.--The Director of the National Science 
        Foundation and the Administrator of National Oceanic and 
        Atmospheric Administration shall enter into an arrangement with 
        the National Academy of Sciences to complete a study of the 
        current status of ice sheet melt, as caused by climate change, 
        with implications for global sea level rise.
            (2) Contents.--The study shall take into consideration--
                    (A) the past research completed related to ice 
                sheet melt as reviewed by Working Group I of the 
                Intergovernmental Panel on Climate Change;
                    (B) additional research completed since the fall of 
                2005 that was not included in the Working Group I 
                report due to time constraints; and
                    (C) the need for an accurate assessment of changes 
                in ice sheet spreading, changes in ice sheet flow, 
                self-lubrication, the corresponding effect on ice 
                sheets, and current modeling capabilities.
            (3) Report.--Not later than 18 months after the date of 
        enactment of this Act, the National Academy of Sciences shall 
        transmit to the Committee on Science and Technology of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report on the key 
        findings of the study conducted under subsection (a), along 
        with recommendations for additional research related to ice 
        sheet melt and corresponding sea level rise.

SEC. 4624. HURRICANE FREQUENCY AND INTENSITY STUDY AND REPORT.

     (a) Study.--
            (1) Requirement.--The Administrator of the National Oceanic 
        and Atmospheric Administration and the Director of the National 
        Science Foundation shall enter into an arrangement with the 
        National Academy of Sciences to complete a study of the current 
        state of the science on the potential impacts of climate change 
        on patterns of hurricane and typhoon development, including 
        storm intensity, track, and frequency, and the implications for 
        hurricane-prone and typhoon-prone coastal regions.
            (2) Contents.--The study shall take into consideration--
                    (A) the past research completed related to 
                hurricane and typhoon development, track, and intensity 
                as reviewed by Working Groups I and II of the 
                Intergovernmental Panel on Climate Change;
                    (B) additional research completed since the fall of 
                2005 that was not included in the Working Group I and 
                II reports due to time constraints;
                    (C) the need for accurate assessment of potential 
                changes in hurricane and typhoon intensity, track, and 
                frequency and of the current modeling and forecasting 
                capabilities and the need for improvements in 
                forecasting of these parameters; and
                    (D) the need for additional research and monitoring 
                to improve forecasting of hurricanes and typhoons and 
                to understand the relationship between climate change 
                and hurricane and typhoon development.
            (3) Report.--Not later than 18 months after the date of 
        enactment of this Act, the National Academy of Sciences shall 
        transmit to the Committee on Science and Technology of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report on the key 
        findings of the study conducted under subsection (a).

        PART 2--CLIMATE AND OTHER GLOBAL CHANGE DATA MANAGEMENT

SEC. 4631. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress makes the following findings:
            (1) Federal agencies have a primary mission to manage and 
        archive climate and other global change data obtained through 
        their research, development, or operational activities.
            (2) Maintenance of climate and global change data records 
        is essential to present and future studies of the Earth's 
        atmosphere, biogeochemical cycles, and climate.
            (3) Federal capabilities for the management and archiving 
        of these data have not kept pace with advances in satellite and 
        other observational technologies that have vastly expanded the 
        type and amount of information that can be collected.
            (4) Proposals and plans for expansion of global observing 
        networks should include plans for the management of data to be 
        collected and budgets reflecting the cost of support for 
        management and archiving of data.
    (b) Purposes.--The purposes of this part are to establish climate 
and other global change data management and archiving as Federal agency 
missions, and to establish Federal policies for managing and archiving 
climate and other global change data.

SEC. 4632. DEFINITIONS.

    For purposes of this part--
            (1) the term ``metadata'' means information describing the 
        content, quality, condition, and other characteristics of 
        climate and other global change data, compiled, to the maximum 
        extent possible, consistent with the requirements of the 
        ``Content Standard for Digital Geospatial Metadata'' (FGDC-STD-
        001-1998) issued by the Federal Geographic Data Committee, or 
        any successor standard approved by the working group; and
            (2) the term ``working group'' means the interagency 
        climate and other global change data management working group 
        established under section 4633.

SEC. 4633. INTERAGENCY CLIMATE AND OTHER GLOBAL CHANGE DATA MANAGEMENT 
              WORKING GROUP.

    (a) Establishment.--The President shall establish or designate an 
interagency climate and other global change data management working 
group to make recommendations for coordinating Federal climate and 
other global change data management and archiving activities.
    (b) Membership.--The working group shall include the Administrator 
of the National Aeronautics and Space Administration, the Administrator 
of the National Oceanic and Atmospheric Administration, the Secretary 
of Energy, the Secretary of Defense, the Director of the National 
Science Foundation, the Director of the United States Geological 
Survey, the Archivist of the United States, the Administrator of the 
Environmental Protection Agency, the Secretary of the Smithsonian 
Institution, or their designees, and representatives of any other 
Federal agencies the President considers appropriate.
    (c) Reports.--Not later than 1 year after the date of enactment of 
this Act, the working group shall transmit a report to the Congress 
containing the elements described in subsection (d). Not later than 4 
years after the initial report under this subsection, and at least once 
every 4 years thereafter, the working group shall transmit reports 
updating the previous report. In preparing reports under this 
subsection, the working group shall consult with expected users of the 
data collected and archived by the Program.
    (d) Contents.--The reports and updates required under subsection 
(c) shall--
            (1) include recommendations for the establishment, 
        maintenance, and accessibility of a catalog identifying all 
        available climate and other global change data sets;
            (2) identify climate and other global change data 
        collections in danger of being lost and recommend actions to 
        prevent such loss;
            (3) identify gaps in climate and other global change data 
        and recommend actions to fill those gaps;
            (4) identify effective and compatible procedures for 
        climate and other global change data collection, management, 
        and retention and make recommendations for ensuring their use 
        by Federal agencies and other appropriate entities;
            (5) develop and propose a coordinated strategy for funding 
        and allocating responsibilities among Federal agencies for 
        climate and other global change data collection, management, 
        and retention;
            (6) make recommendations for ensuring that particular 
        attention is paid to the collection, management, and archiving 
        of metadata;
            (7) make recommendations for ensuring a unified and 
        coordinated Federal capital investment strategy with respect to 
        climate and other global change data collection, management, 
        and archiving;
            (8) evaluate the data record from each observing system and 
        make recommendations to ensure that delivered data are free 
        from time-dependent biases and random errors before they are 
        transferred to long-term archives; and
            (9) evaluate optimal design of observation system 
        components to ensure a cost-effective, adequate set of 
        observations detecting and tracking global change.

                      TITLE V--AGRICULTURE ENERGY

SEC. 5001. TABLE OF CONTENTS.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is amended by inserting before section 9001 the 
following new section:

``SEC. 9000. TABLE OF CONTENTS.

    ``The table of contents of this title is as follows:

                           ``TITLE IX--ENERGY

``Sec. 9000. Table of contents.
``Sec. 9001. Definitions.
``Sec. 9002. Federal procurement of biobased products.
``Sec. 9003. Biorefinery development grants; loan guarantees for 
                            biorefineries and biofuel production 
                            plants.
``Sec. 9004. Biodiesel fuel education program.
``Sec. 9005. Energy audit and renewable energy development program.
``Sec. 9006. Rural energy for America program.
``Sec. 9007. Hydrogen and fuel cell technologies.
``Sec. 9008. Biomass Research and Development Act of 2000.
``Sec. 9009. Cooperative research and extension projects.
``Sec. 9010. Continuation of bioenergy program.
``Sec. 9011. Research, extension, and educational programs on biobased 
                            energy technologies and products.
``Sec. 9012. Energy Council of the Department of Agriculture.
``Sec. 9013. Forest bioenergy research program.''.

SEC. 5002. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.

    Section 9002 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8102) is amended--
            (1) in subsection (c)(1), by inserting ``, composed of at 
        least five percent of intermediate ingredients and feedstocks 
        (such as biopolymers, methyl soyate, and soy polyols) as 
        designated by the Secretary,'' after ``highest percentage of 
        biobased products practicable'';
            (2) by striking subsection (h)(2) and inserting the 
        following:
            ``(2) Eligibility criteria.--
                    ``(A) In general.--Not later than 90 days after the 
                date of the enactment of the New Direction for Energy 
                Independence, National Security, and Consumer 
                Protection Act, the Secretary, in consultation with 
                other Federal departments and agencies and with non-
                governmental groups with an interest in biobased 
                products, including small and large producers of 
                biobased materials and products, industry, trade 
                organizations, academia, consumer organizations, and 
                environmental organizations, shall issue criteria for 
                determining which products may qualify to receive the 
                label under paragraph (1). The criteria shall encourage 
                the purchase of products with the maximum biobased 
                content, and should, to the maximum extent possible, be 
                consistent with the guidelines issued under subsection 
                (e).
                    ``(B) Intermediate ingredients.--The criteria 
                issued under subparagraph (A) shall provide that the 
                Secretary may designate intermediate ingredients and 
                feedstocks (such as biopolymers, methyl soyate, and soy 
                polyols) as biobased for the purposes of the voluntary 
                program established under this subsection.''; and
            (3) by striking subsection (k)(2)(A) and inserting the 
        following:
                    ``(A) In general.--Of the funds of the Commodity 
                Credit Corporation, the Secretary shall use $2,000,000 
                for each of fiscal years 2008 through 2012 for bio-
                product testing and support ongoing operations of the 
                Designation Program, the Voluntary Labeling Program, 
                procurement program models, procurement research, 
                promotion, education, and awareness of the BioPreferred 
                Program.''.

SEC. 5003. LOAN GUARANTEES FOR BIOREFINERIES AND BIOFUEL PRODUCTION 
              PLANTS.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) is amended--
            (1) in the section heading, by inserting ``; loan 
        guarantees for biorefineries and biofuel production plants'' 
        after ``grants'';
            (2) in subsection (b)(2)(A), by striking ``and'' the 1st 
        place it appears and inserting ``or'';
            (3) in subsection (c), by redesignating subsection (h) as 
        subsection (j) and subsections (d) through (g) as subsections 
        (e) through (h), respectively, and inserting after subsection 
        (c) the following:
    ``(d) Loan Guarantees.--
            ``(1) In general.--The Secretary shall make loan guarantees 
        to eligible entities to assist in paying the cost of 
        development and construction of biorefineries and biofuel 
        production plants (including retrofitting) to carry out 
        projects to demonstrate the commercial viability of 1 or more 
        processes for converting biomass to fuels or chemicals.
            ``(2) Limitations.--
                    ``(A) Maximum percentage of loan guaranteed.--A 
                loan guarantee under paragraph (1) shall be for not 
                more than 90 percent of the principal and interest due 
                on the loan.
                    ``(B) Total amounts guaranteed.--The total amount 
                of principal and interest guaranteed under paragraph 
                (1) shall not exceed--
                            ``(i) $600,000,000, in the case of loans 
                        valued at not more than $100,000,000; or
                            ``(ii) $1,000,000,000, in the case of loans 
                        valued at more than $100,000,000 but not more 
                        than $250,000,000.
                    ``(C) Maximum term of loan guaranteed.--The 
                Secretary shall determine the maximum term of a loan 
                guarantee provided under paragraph (1).'';
            (4) in subsection (f) (as so redesignated)--
                    (A) in paragraph (1), by inserting ``and loan 
                guarantees under subsection (d)'' after ``(c)'';
                    (B) in paragraph (2)(A), by inserting ``or loan 
                guarantees under subsection (d)'' after ``(c)'';
                    (C) in paragraph (2)(B)--
                            (i) by striking ``and'' at the end of 
                        clause (viii);
                            (ii) by striking the period at the end of 
                        clause (ix) and inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(x) The level of local ownership.''; and
                    (D) by adding at the end the following:
            ``(3) Priority in awarding loan guarantees.--In selecting 
        projects to receive loan guarantees under subsection (d), the 
        Secretary shall give priority to projects based on the criteria 
        set forth in paragraph (2)(B) of this subsection.'';
            (5) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Condition of Provision of Assistance.--As a condition of 
receiving a grant or loan guarantee under this section, the eligible 
entity shall ensure that all laborers and mechanics employed by 
contractors or subcontractors in the performance of construction work 
financed in whole or in part with the grant or loan guarantee, as the 
case may be, shall be paid wages at rates not less than those 
prevailing on similar construction in the locality, as determined by 
the Secretary of Labor in accordance with section 3141 through 3144, 
3146, and 3147 of title 40, United States Code. The Secretary of Labor 
shall have, with respect to such labor standards, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F. 
R. 3176; 64 Stat. 1267) and section 3145 of such title.'';
            (6) in subsection (j) (as so redesignated), by striking 
        ``2007'' and inserting ``2012''; and
            (7) by adding at the end the following new subsection:
    ``(k) Additional Funding for Loan Guarantees.--Of the funds of the 
Commodity Credit Corporation, the Secretary shall use to carry out this 
section--
            ``(1) $50,000,000 for fiscal year 2008;
            ``(2) $65,000,000 for fiscal year 2009;
            ``(3) $75,000,000 for fiscal year 2010;
            ``(4) $150,000,000 for fiscal year 2011; and
            ``(5) $300,000,000 for fiscal year 2012.''.

SEC. 5004. BIODIESEL FUEL EDUCATION PROGRAM.

    Section 9004(d) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8104(d)) is amended to read as follows:
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall make available to carry out this 
section $2,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 5005. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.

    Section 9005(i) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8105) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 5006. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS.

    Section 9006 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8106) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.'';

            (2) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``, other agricultural producer'' after 
                ``rancher'';
                    (B) in paragraph (1), by striking ``and'' at the 
                end;
                    (C) in paragraph (2), by striking the period and 
                inserting ``; and''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(3) produce and sell electricity generated by new 
        renewable energy systems.'';
            (3) in subsection (b), by inserting ``, other agricultural 
        producer'' after ``rancher'';
            (4) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking ``50 
                        percent'' and inserting ``75 percent''; and
                            (ii) by redesignating subparagraph (B) as 
                        subparagraph (C) and inserting after 
                        subparagraph (A) the following:
                    ``(B) Loan guarantees.--
                            ``(i) Maximum amount.--The amount of a loan 
                        guaranteed under this section shall not exceed 
                        $25,000,000.
                            ``(ii) Maximum percentage.--A loan 
                        guaranteed under this section shall not exceed 
                        75 percent of the cost of the activity funded 
                        under subsection (a).''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Prioritization.--The Secretary shall give the 
        greatest priority for grants under subsection (a) to activities 
        for which the least percentage of the total cost of such 
        activities is requested by the farmer, rancher, other 
        agricultural producer, or rural small business.''.
            (5) by redesignating subsection (e) as subsection (g) and 
        striking subsection (f);
            (6) by inserting after subsection (d) the following new 
        subsections:
    ``(e) Feasibility Studies.--
            ``(1) In general.--The Secretary may provide assistance to 
        a farmer, rancher, other agricultural producer, or rural small 
        business to conduct a feasibility study of a project for which 
        assistance may be provided under this section.
            ``(2) Limitation.--The Secretary shall use not more than 10 
        percent of the funds made available to carry out this section 
        to provide assistance described in paragraph (1).
            ``(3) Criteria.--The Secretary shall issue regulations 
        establishing criteria for the receipt of assistance under this 
        subsection.
            ``(4) Avoidance of duplicative assistance.--An farmer, 
        rancher, other agricultural producer, or rural small business 
        that receives assistance to carry out a feasibility study for a 
        project under this subsection shall not be eligible for 
        assistance to carry out a feasibility study for the project 
        under any other provision of law.
    ``(f) Small Activities.--
            ``(1) Limitation on use of funds.--The Secretary shall use 
        not less than 15 percent of the funds made available under 
        subsection (h) to provide grants for activities that have a 
        cost of $50,000 or less.
            ``(2) Exception.--Beginning on the first day of the third 
        quarter of a fiscal year, the limitation on the use of funds 
        under paragraph (1) shall not apply to funds made available 
        under subsection (h) for such fiscal year.''; and
            (7) by adding at the end the following new subsection:
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall make available to carry out this 
section--
            ``(1) $40,000,000 for fiscal year 2008;
            ``(2) $60,000,000 for fiscal year 2009;
            ``(3) $75,000,000 for fiscal year 2010;
            ``(4) $100,000,000 for fiscal year 2011; and
            ``(5) $150,000,000 for fiscal year 2012.''.

SEC. 5007. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

    (a) Restatement of Act.--Section 9008 of the Farm Security and 
Rural Investment Act of 2002 (116 Stat. 486) is amended to read as 
follows:

``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

    ``(a) Short Title.--This section may be cited as the `Biomass 
Research and Development Act of 2000'.
    ``(b) Findings.--Congress finds that--
            ``(1) conversion of biomass into biobased industrial 
        products offers outstanding potential for benefit to the 
        national interest through--
                    ``(A) improved strategic security and balance of 
                payments;
                    ``(B) healthier rural economies;
                    ``(C) improved environmental quality;
                    ``(D) near-zero net greenhouse gas emissions;
                    ``(E) technology export; and
                    ``(F) sustainable resource supply;
            ``(2) the key technical challenges to be overcome in order 
        for biobased industrial products to be cost-competitive are 
        finding new technology and reducing the cost of technology for 
        converting biomass into desired biobased industrial products;
            ``(3) biobased fuels have the clear potential to be 
        sustainable, low cost, and high performance fuels that are 
        compatible with both current and future transportation systems 
        and provide near-zero net greenhouse gas emissions;
            ``(4) biobased chemicals have the clear potential for 
        environmentally benign product life cycles;
            ``(5) biobased power can--
                    ``(A) provide environmental benefits;
                    ``(B) promote rural economic development; and
                    ``(C) diversify energy resource options;
            ``(6) many biomass feedstocks suitable for industrial 
        processing show the clear potential for sustainable production, 
        in some cases resulting in improved soil fertility and carbon 
        sequestration;
            ``(7)(A) grain processing mills are biorefineries that 
        produce a diversity of useful food, chemical, feed, and fuel 
        products; and
            ``(B) technologies that result in further diversification 
        of the range of value-added biobased industrial products can 
        meet a key need for the grain processing industry;
            ``(8)(A) cellulosic feedstocks are attractive because of 
        their low cost and widespread availability; and
            ``(B) research resulting in cost-effective technology to 
        overcome the recalcitrance of cellulosic biomass would allow 
        biorefineries to produce fuels and bulk chemicals on a very 
        large scale, with a commensurately large realization of the 
        benefit described in paragraph (1);
            ``(9) research into the fundamentals to understand 
        important mechanisms of biomass conversion can be expected to 
        accelerate the application and advancement of biomass 
        processing technology by--
                    ``(A) increasing the confidence and speed with 
                which new technologies can be scaled up; and
                    ``(B) giving rise to processing innovations based 
                on new knowledge;
            ``(10) the added utility of biobased industrial products 
        developed through improvements in processing technology would 
        encourage the design of feedstocks that would meet future needs 
        more effectively;
            ``(11) the creation of value-added biobased industrial 
        products would create new jobs in construction, manufacturing, 
        and distribution, as well as new higher-valued exports of 
        products and technology;
            ``(12)(A) because of the relatively short-term time horizon 
        characteristic of private sector investments, and because many 
        benefits of biomass processing are in the national interest, it 
        is appropriate for the Federal Government to provide 
        precommercial investment in fundamental research and research-
        driven innovation in the biomass processing area; and
            ``(B) such an investment would provide a valuable 
        complement to ongoing and past governmental support in the 
        biomass processing area; and
            ``(13) several prominent studies, including studies by the 
        President's Committee of Advisors on Science and Technology and 
        the National Research Council--
                    ``(A) support the potential for large research-
                driven advances in technologies for production of 
                biobased industrial products as well as associated 
                benefits; and
                    ``(B) document the need for a focused, integrated, 
                and innovation-driven research effort to provide the 
                appropriate progress in a timely manner.
    ``(c) Definitions.--In this section:
            ``(1) Advisory committee.--The term `Advisory Committee' 
        means the Biomass Research and Development Technical Advisory 
        Committee established by this section.
            ``(2) Biobased fuel.--The term `biobased fuel' means any 
        transportation or heating fuel produced from biomass.
            ``(3) Biobased product.--The term `biobased product' means 
        an industrial product (including chemicals, materials, and 
        polymers) produced from biomass, or a commercial or industrial 
        product (including animal feed and electric power) derived in 
        connection with the conversion of biomass to fuel.
            ``(4) Biomass.--The term `biomass' means any organic matter 
        that is available on a renewable or recurring basis, including 
        agricultural crops and trees, wood and wood wastes and 
        residues, plants (including aquatic plants), grasses, residues, 
        fibers, and animal wastes, municipal wastes, and other waste 
        materials.
            ``(5) Board.--The term `Board' means the Biomass Research 
        and Development Board established by this section.
            ``(6) Demonstration.--The term `demonstration' means 
        demonstration of technology in a pilot plant or semi-works 
        scale facility.
            ``(7) Initiative.--The term `Initiative' means the Biomass 
        Research and Development Initiative established under this 
        section.
            ``(8) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 102(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1002(a)).
            ``(9) National laboratory.--The term `National Laboratory' 
        has the meaning given that term in section 2 of the Energy 
        Policy Act of 2005.
            ``(10) Point of contact.--The term `point of contact' means 
        a point of contact designated under this section.
    ``(d) Cooperation and Coordination in Biomass Research and 
Development.--
            ``(1) In general.--The Secretary of Agriculture and the 
        Secretary of Energy shall cooperate with respect to, and 
        coordinate, policies and procedures that promote research and 
        development leading to the production of biobased fuels and 
        biobased products.
            ``(2) Points of contact.--
                    ``(A) In general.--To coordinate research and 
                development programs and activities relating to 
                biobased fuels and biobased products that are carried 
                out by their respective Departments--
                            ``(i) the Secretary of Agriculture shall 
                        designate, as the point of contact for the 
                        Department of Agriculture, an officer of the 
                        Department of Agriculture appointed by the 
                        President to a position in the Department 
                        before the date of the designation, by and with 
                        the advice and consent of the Senate; and
                            ``(ii) the Secretary of Energy shall 
                        designate, as the point of contact for the 
                        Department of Energy, an officer of the 
                        Department of Energy appointed by the President 
                        to a position in the Department before the date 
                        of the designation, by and with the advice and 
                        consent of the Senate.
                    ``(B) Duties.--The points of contact shall 
                jointly--
                            ``(i) assist in arranging interlaboratory 
                        and site-specific supplemental agreements for 
                        research and development projects relating to 
                        biobased fuels and biobased products;
                            ``(ii) serve as cochairpersons of the 
                        Board;
                            ``(iii) administer the Initiative; and
                            ``(iv) respond in writing to each 
                        recommendation of the Advisory Committee made 
                        under subsection (f).
    ``(e) Biomass Research and Development Board.--
            ``(1) Establishment.--There is established the Biomass 
        Research and Development Board, which shall supersede the 
        Interagency Council on Biobased Products and Bioenergy 
        established by Executive Order No. 13134, to coordinate 
        programs within and among departments and agencies of the 
        Federal Government for the purpose of promoting the use of 
        biobased fuels and biobased products by--
                    ``(A) maximizing the benefits deriving from Federal 
                grants and assistance; and
                    ``(B) bringing coherence to Federal strategic 
                planning.
            ``(2) Membership.--The Board shall consist of--
                    ``(A) the point of contact of the Department of 
                Energy designated under subsection (d), who shall serve 
                as cochairperson of the Board;
                    ``(B) the point of contact of the Department of 
                Agriculture designated under subsection (d), who shall 
                serve as cochairperson of the Board;
                    ``(C) a senior officer of each of the Department of 
                the Interior, the Environmental Protection Agency, the 
                National Science Foundation, and the Office of Science 
                and Technology Policy, each of whom shall--
                            ``(i) be appointed by the head of the 
                        respective agency; and
                            ``(ii) have a rank that is equivalent to 
                        the rank of the points of contact; and
                    ``(D) at the option of the Secretary of Agriculture 
                and the Secretary of Energy, other members appointed by 
                the Secretaries (after consultation with the members 
                described in subparagraphs (A) through (C)).
            ``(3) Duties.--The Board shall--
                    ``(A) coordinate research and development 
                activities relating to biobased fuels and biobased 
                products--
                            ``(i) between the Department of Agriculture 
                        and the Department of Energy; and
                            ``(ii) with other departments and agencies 
                        of the Federal Government;
                    ``(B) provide recommendations to the points of 
                contact concerning administration of this title;
                    ``(C) ensure that--
                            ``(i) solicitations are open and 
                        competitive with awards made annually; and
                            ``(ii) objectives and evaluation criteria 
                        of the solicitations are clearly stated and 
                        minimally prescriptive, with no areas of 
                        special interest; and
                    ``(D) ensure that the panel of scientific and 
                technical peers assembled under subsection (g) to 
                review proposals is composed predominantly of 
                independent experts selected from outside the 
                Departments of Agriculture and Energy.
            ``(4) Funding.--Each agency represented on the Board is 
        encouraged to provide funds for any purpose under this section.
            ``(5) Meetings.--The Board shall meet at least quarterly to 
        enable the Board to carry out the duties of the Board under 
        paragraph (3).
    ``(f) Biomass Research and Development Technical Advisory 
Committee.--
            ``(1) Establishment.--There is established the Biomass 
        Research and Development Technical Advisory Committee, which 
        shall supersede the Advisory Committee on Biobased Products and 
        Bioenergy established by Executive Order No. 13134--
                    ``(A) to advise the Secretary of Energy, the 
                Secretary of Agriculture, and the points of contact 
                concerning--
                            ``(i) the technical focus and direction of 
                        requests for proposals issued under the 
                        Initiative; and
                            ``(ii) procedures for reviewing and 
                        evaluating the proposals;
                    ``(B) to facilitate consultations and partnerships 
                among Federal and State agencies, agricultural 
                producers, industry, consumers, the research community, 
                and other interested groups to carry out program 
                activities relating to the Initiative; and
                    ``(C) to evaluate and perform strategic planning on 
                program activities relating to the Initiative.
            ``(2) Membership.--
                    ``(A) In general.--The Advisory Committee shall 
                consist of--
                            ``(i) an individual affiliated with the 
                        biofuels industry;
                            ``(ii) an individual affiliated with the 
                        biobased industrial and commercial products 
                        industry;
                            ``(iii) an individual affiliated with an 
                        institution of higher education who has 
                        expertise in biobased fuels and biobased 
                        products;
                            ``(iv) two prominent engineers or 
                        scientists from government or academia who have 
                        expertise in biobased fuels and biobased 
                        products;
                            ``(v) an individual affiliated with a 
                        commodity trade association;
                            ``(vi) 2 individuals affiliated with an 
                        environmental or conservation organization;
                            ``(vii) an individual associated with State 
                        government who has expertise in biobased fuels 
                        and biobased products;
                            ``(viii) an individual with expertise in 
                        energy and environmental analysis;
                            ``(ix) an individual with expertise in the 
                        economics of biobased fuels and biobased 
                        products;
                            ``(x) an individual with expertise in 
                        agricultural economics; and
                            ``(xi) at the option of the points of 
                        contact, other members.
                    ``(B) Appointment.--The members of the Advisory 
                Committee shall be appointed by the points of contact.
            ``(3) Duties.--The Advisory Committee shall--
                    ``(A) advise the points of contact with respect to 
                the Initiative; and
                    ``(B) evaluate whether, and make recommendations in 
                writing to the Board to ensure that--
                            ``(i) funds authorized for the Initiative 
                        are distributed and used in a manner that is 
                        consistent with the objectives, purposes, and 
                        considerations of the Initiative;
                            ``(ii) solicitations are open and 
                        competitive with awards made annually and that 
                        objectives and evaluation criteria of the 
                        solicitations are clearly stated and minimally 
                        prescriptive, with no areas of special 
                        interest;
                            ``(iii) the points of contact are funding 
                        proposals under this title that are selected on 
                        the basis of merit, as determined by an 
                        independent panel of scientific and technical 
                        peers predominantly from outside the 
                        Departments of Agriculture and Energy; and
                            ``(iv) activities under this section are 
                        carried out in accordance with this section.
            ``(4) Coordination.--To avoid duplication of effort, the 
        Advisory Committee shall coordinate its activities with those 
        of other Federal advisory committees working in related areas.
            ``(5) Meetings.--The Advisory Committee shall meet at least 
        quarterly to enable the Advisory Committee to carry out the 
        duties of the Advisory Committee.
            ``(6) Terms.--Members of the Advisory Committee shall be 
        appointed for a term of 3 years, except that--
                    ``(A) one-third of the members initially appointed 
                shall be appointed for a term of 1 year; and
                    ``(B) one-third of the members initially appointed 
                shall be appointed for a term of 2 years.
    ``(g) Biomass Research and Development Initiative.--
            ``(1) In general.--The Secretary of Agriculture and the 
        Secretary of Energy, acting through their respective points of 
        contact and in consultation with the Board, shall establish and 
        carry out a Biomass Research and Development Initiative under 
        which competitively awarded grants, contracts, and financial 
        assistance are provided to, or entered into with, eligible 
        entities to carry out research on, and development and 
        demonstration of, biobased fuels and biobased products, and the 
        methods, practices and technologies, for their production.
            ``(2) Objectives.--The objectives of the Initiative are to 
        develop--
                    ``(A) technologies and processes necessary for 
                abundant commercial production of biobased fuels at 
                prices competitive with fossil fuels;
                    ``(B) high-value biobased products--
                            ``(i) to enhance the economic viability of 
                        biobased fuels and power; and
                            ``(ii) as substitutes for petroleum-based 
                        feedstocks and products; and
                    ``(C) a diversity of sustainable domestic sources 
                of biomass for conversion to biobased fuels and 
                biobased products.
            ``(3) Purposes.--The purposes of the Initiative are--
                    ``(A) to increase the energy security of the United 
                States;
                    ``(B) to create jobs and enhance the economic 
                development of the rural economy;
                    ``(C) to enhance the environment and public health; 
                and
                    ``(D) to diversify markets for raw agricultural and 
                forestry products.
            ``(4) Technical areas.--To advance the objectives and 
        purposes of the Initiative, the Secretary of Agriculture and 
        the Secretary of Energy, in consultation with the Administrator 
        of the Environmental Protection Agency and heads of other 
        appropriate departments and agencies (referred to in this 
        subsection as the `Secretaries'), shall direct research and 
        development toward--
                    ``(A) feedstock production through the development 
                of crops and cropping systems relevant to production of 
                raw materials for conversion to biobased fuels and 
                biobased products, including--
                            ``(i) development of advanced and dedicated 
                        crops with desired features, including enhanced 
                        productivity, broader site range, low 
                        requirements for chemical inputs, and enhanced 
                        processing;
                            ``(ii) advanced crop production methods to 
                        achieve the features described in clause (i);
                            ``(iii) feedstock harvest, handling, 
                        transport, and storage; and
                            ``(iv) strategies for integrating feedstock 
                        production into existing managed land;
                    ``(B) overcoming recalcitrance of cellulosic 
                biomass through developing technologies for converting 
                cellulosic biomass into intermediates that can 
                subsequently be converted into biobased fuels and 
                biobased products, including--
                            ``(i) pretreatment in combination with 
                        enzymatic or microbial hydrolysis; and
                            ``(ii) thermochemical approaches, including 
                        gasification and pyrolysis;
                    ``(C) product diversification through technologies 
                relevant to production of a range of biobased products 
                (including chemicals, animal feeds, and cogenerated 
                power) that eventually can increase the feasibility of 
                fuel production in a biorefinery, including--
                            ``(i) catalytic processing, including 
                        thermochemical fuel production;
                            ``(ii) metabolic engineering, enzyme 
                        engineering, and fermentation systems for 
                        biological production of desired products or 
                        cogeneration of power;
                            ``(iii) product recovery;
                            ``(iv) power production technologies; and
                            ``(v) integration into existing biomass 
                        processing facilities, including starch ethanol 
                        plants, sugar processing or refining plants, 
                        paper mills, and power plants; and
                    ``(D) analysis that provides strategic guidance for 
                the application of biomass technologies in accordance 
                with realization of improved sustainability and 
                environmental quality, cost effectiveness, security, 
                and rural economic development, usually featuring 
                system-wide approaches.
            ``(5) Additional considerations.--Within the technical 
        areas described in paragraph (4), and in addition to advancing 
        the purposes described in paragraph (3) and the objectives 
        described in paragraph (2), the Secretaries shall support 
        research and development--
                    ``(A) to create continuously expanding 
                opportunities for participants in existing biofuels 
                production by seeking synergies and continuity with 
                current technologies and practices, such as the use of 
                dried distillers grains as a bridge feedstock;
                    ``(B) to maximize the environmental, economic, and 
                social benefits of production of biobased fuels and 
                biobased products on a large scale through life-cycle 
                economic and environmental analysis and other means; 
                and
                    ``(C) to assess the potential of Federal land and 
                land management programs as feedstock resources for 
                biobased fuels and biobased products, consistent with 
                the integrity of soil and water resources and with 
                other environmental considerations.
            ``(6) Eligible entities.--To be eligible for a grant, 
        contract, or assistance under this subsection, an applicant 
        shall be--
                    ``(A) an institution of higher education;
                    ``(B) a National Laboratory;
                    ``(C) a Federal research agency;
                    ``(D) a State research agency;
                    ``(E) a private sector entity;
                    ``(F) a nonprofit organization; or
                    ``(G) a consortium of two or more entities 
                described in subparagraphs (A) through (F).
            ``(7) Administration.--
                    ``(A) In general.--After consultation with the 
                Board, the points of contact shall--
                            ``(i) publish annually one or more joint 
                        requests for proposals for grants, contracts, 
                        and assistance under this subsection;
                            ``(ii) require that grants, contracts, and 
                        assistance under this section be awarded 
                        competitively, on the basis of merit, after the 
                        establishment of procedures that provide for 
                        scientific peer review by an independent panel 
                        of scientific and technical peers; and
                            ``(iii) give some preference to 
                        applications that--
                                    ``(I) involve a consortia of 
                                experts from multiple institutions;
                                    ``(II) encourage the integration of 
                                disciplines and application of the best 
                                technical resources; and
                                    ``(III) increase the geographic 
                                diversity of demonstration projects.
                    ``(B) Distribution of funding by technical area.--
                Of the funds authorized to be appropriated for 
                activities described in this subsection, funds shall be 
                distributed for each of fiscal years 2007 through 2012 
                so as to achieve an approximate distribution of--
                            ``(i) 20 percent of the funds to carry out 
                        activities for feedstock production under 
                        paragraph (4)(A);
                            ``(ii) 45 percent of the funds to carry out 
                        activities for overcoming recalcitrance of 
                        cellulosic biomass under paragraph (4)(B);
                            ``(iii) 30 percent of the funds to carry 
                        out activities for product diversification 
                        under paragraph (4)(C); and
                            ``(iv) 5 percent of the funds to carry out 
                        activities for strategic guidance under 
                        paragraph (4)(D).
                    ``(C) Distribution of funding within each technical 
                area.--Within each technical area described in 
                subparagraphs (A) through (C) of paragraph (4), funds 
                shall be distributed for each of fiscal years 2007 
                through 2012 so as to achieve an approximate 
                distribution of--
                            ``(i) 15 percent of the funds for applied 
                        fundamentals;
                            ``(ii) 35 percent of the funds for 
                        innovation; and
                            ``(iii) 50 percent of the funds for 
                        demonstration.
                    ``(D) Matching funds.--
                            ``(i) In general.--A minimum 20 percent 
                        funding match shall be required for 
                        demonstration projects under this section.
                            ``(ii) Commercial applications.--A minimum 
                        of 50 percent funding match shall be required 
                        for commercial application projects under this 
                        section.
                    ``(E) Technology and information transfer to 
                agricultural users.--The Administrator of the 
                Cooperative State Research, Education, and Extension 
                Service and the Chief of the Natural Resources 
                Conservation Service shall ensure that applicable 
                research results and technologies from the Initiative 
                are adapted, made available, and disseminated through 
                those services, as appropriate.
    ``(h) Administrative Support and Funds.--
            ``(1) In general.--To the extent administrative support and 
        funds are not provided by other agencies under paragraph 
        (2)(b), the Secretary of Energy and the Secretary of 
        Agriculture may provide such administrative support and funds 
        of the Department of Energy and the Department of Agriculture 
        to the Board and the Advisory Committee as are necessary to 
        enable the Board and the Advisory Committee to carry out their 
        duties under this section.
            ``(2) Other agencies.--The heads of the agencies referred 
        to in subsection (e)(2)(C), and the other members appointed 
        under subsection (e)(2)(D), may, and are encouraged to, provide 
        administrative support and funds of their respective agencies 
        to the Board and the Advisory Committee.
            ``(3) Limitation.--Not more than 4 percent of the amount 
        appropriated for each fiscal year under subsection (g)(6) may 
        be used to pay the administrative costs of carrying out this 
        section.
    ``(i) Reports.--
            ``(1) Annual reports.--For each fiscal year for which funds 
        are made available to carry out this section, the Secretary of 
        Energy and the Secretary of Agriculture shall jointly submit to 
        Congress a detailed report on--
                    ``(A) the status and progress of the Initiative, 
                including a report from the Advisory Committee on 
                whether funds appropriated for the Initiative have been 
                distributed and used in a manner that--
                            ``(i) is consistent with the objectives, 
                        purposes, and additional considerations 
                        described in paragraphs (2) through (5) of 
                        subsection (g);
                            ``(ii) uses the set of criteria established 
                        in the initial report submitted under title III 
                        of the Agricultural Risk Protection Act of 
                        2000;
                            ``(iii) achieves the distribution of funds 
                        described in subparagraphs (B) and (C) of 
                        subsection (g)(7); and
                            ``(iv) takes into account any 
                        recommendations that have been made by the 
                        Advisory Committee;
                    ``(B) the general status of cooperation and 
                research and development efforts carried out at each 
                agency with respect to biobased fuels and biobased 
                products, including a report from the Advisory 
                Committee on whether the points of contact are funding 
                proposals that are selected under subsection 
                (g)(3)(B)(iii); and
                    ``(C) the plans of the Secretary of Energy and the 
                Secretary of Agriculture for addressing concerns raised 
                in the report, including concerns raised by the 
                Advisory Committee.
            ``(2) Updates.--The Secretary and the Secretary of Energy 
        shall update the Vision and Roadmap documents prepared for 
        Federal biomass research and development activities.
    ``(j) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary of Agriculture shall make available 
        to carry out this section--
                    ``(A) $25,000,000 for fiscal year 2008;
                    ``(B) $50,000,000 for fiscal year 2009;
                    ``(C) $75,000,000 for fiscal year 2010;
                    ``(D) $100,000,000 for fiscal year 2011; and
                    ``(E) $100,000,000 for fiscal year 2012.
            ``(2) Additional funding.--In addition to amounts 
        transferred under paragraph (1), there are authorized to be 
        appropriated to carry out this section $200,000,000 for each of 
        fiscal years 2006 through 2015.''.
    (b) Repeal.--Title III of the Agricultural Risk Protection Act of 
2000 (Public Law 106-224) is hereby repealed.

SEC. 5008. ADJUSTMENTS TO THE BIOENERGY PROGRAM.

    Section 9010 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8108) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``and'';
                            (ii) in subparagraph (B), by striking the 
                        final period and inserting a semicolon; and
                            (iii) by adding at the end the following 
                        new subparagraphs:
                    ``(C) production of heat and power at a biofuels 
                plant;
                    ``(D) biomass gasification;
                    ``(E) hydrogen made from cellulosic commodities for 
                fuel cells;
                    ``(F) renewable diesel; and
                    ``(G) such other items as the Secretary considers 
                appropriate.'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Eligible feedstock.--
                    ``(A) In general.--The term `eligible feedstock' 
                means--
                            ``(i) any plant material grown or collected 
                        for the purpose of being converted to energy 
                        (including aquatic plants);
                            ``(ii) any organic byproduct or residue 
                        from agriculture and forestry, including mill 
                        residues and pulping residues that can be 
                        converted into energy;
                            ``(iii) any waste material that can be 
                        converted to energy and is derived from plant 
                        material, including--
                                    ``(I) wood waste and residue;
                                    ``(II) specialty crop waste, 
                                including waste derived from orchard 
                                trees, vineyard crops, and nut crops; 
                                or
                                    ``(III) other fruit and vegetable 
                                byproducts or residues; or
                            ``(iv) animal waste and byproducts.
                    ``(B) Exclusion.--The term `eligible feedstock' 
                does not include corn starch.'';
                    (C) in paragraph (4), by striking ``an eligible 
                commodity'' and inserting ``eligible feedstock''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(5) Renewable diesel.--The term `renewable diesel' means 
        any type of biobased renewable fuel derived from plant or 
        animal matter that may be used as a substitute for standard 
        diesel fuel and meets the requirements of an appropriate 
        American Society for Testing and Material standard. Such term 
        does not include any fuel derived from coprocessing an eligible 
        feedstock with a feedstock that is not biomass.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``The Secretary shall 
                        continue'' and all that follows through ``the 
                        Secretary makes'' and inserting ``The Secretary 
                        shall make''; and
                            (ii) by striking ``eligible commodities'' 
                        and inserting ``eligible feedstock'';
                    (B) in paragraph (2)(B), by striking ``eligible 
                commodities'' and inserting ``eligible feedstock'';
                    (C) in paragraph (3), by striking subparagraphs (B) 
                and (C) and inserting the following:
                    ``(B) Priority.--In making payments under this 
                paragraph, the Secretary shall give priority to 
                contracts by considering the factors referred to in 
                section 9003(e)(2)(B).''; and
                    (D) by striking paragraph (6) and inserting the 
                following:
            ``(6) Limitation.--The Secretary may limit the amount of 
        payments that may be received by an eligible producer under 
        this section as the Secretary considers appropriate.''; and
            (3) by striking subsection (c) and inserting the following:
    ``(c) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall use to carry out this section--
            ``(1) $175,000,000 for fiscal year 2008;
            ``(2) $215,000,000 for fiscal year 2009;
            ``(3) $250,000,000 for fiscal year 2010;
            ``(4) $275,000,000 for fiscal year 2011; and
            ``(5) $300,000,000 for fiscal year 2012.''.

SEC. 5009. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED 
              ENERGY TECHNOLOGIES AND PRODUCTS.

    Section 9011(j)(1)(C) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8109(j)(1)(C)) is amended by striking ``2010'' and 
inserting ``2012''.

SEC. 5010. ENERGY COUNCIL OF THE DEPARTMENT OF AGRICULTURE.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is further amended by adding at the end the 
following new section:

``SEC. 9012. ENERGY COUNCIL OF THE DEPARTMENT OF AGRICULTURE.

    ``(a) In General.--The Secretary of Agriculture shall establish an 
energy council in the Office of the Secretary (in this section referred 
to as the `Council') to coordinate the energy policy of the Department 
of Agriculture and consult with other departments and agencies of the 
Federal Government.
    ``(b) Membership.--
            ``(1) In general.--The Secretary shall appoint the members 
        of the Council from among the staff of the agencies and mission 
        areas of the Department of Agriculture with responsibilities 
        relating to energy programs or policies.
            ``(2) Chair.--The chief economist and the Under Secretary 
        for Rural Development of the Department of Agriculture shall 
        serve as the Chairs of the Council.
    ``(c) Duties of Office of Energy Policy and New Uses.--The Office 
of Energy Policy and New Uses of the Department of Agriculture shall 
support the activities of the Council.''.

SEC. 5011. FOREST BIOENERGY RESEARCH PROGRAM.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is further amended by adding at the end the 
following new section:

``SEC. 9013. FOREST BIOENERGY RESEARCH PROGRAM.

    ``(a) In General.--The Secretary of Agriculture, working through 
the Forest Service, in cooperation with other Federal agencies, land 
grant colleges and universities, and private entities, shall conduct a 
competitive research and development program to encourage new forest-
to-energy technologies. The Secretary may use grants, cooperative 
agreements, and other methods to partner with cooperating entities on 
projects that the Secretary determines shall best promote new forest-
to-energy technologies.
    ``(b) Priority for Project Selection.--The Secretary shall give 
priority to projects that--
            ``(1) develop technology and techniques to use low value 
        forest materials, such as byproducts of forest health 
        treatments and hazardous fuel reduction, for the production of 
        energy;
            ``(2) develop processes for the conversion of cellulosic 
        forest materials that integrate production of energy into 
        existing manufacturing steams or in integrated forest 
        biorefineries;
            ``(3) develop new transportation fuels that use forest 
        materials as a feedstock for the production of such fuels; or
            ``(4) improve the of growth and yield of trees for the 
        purpose of renewable energy and other forest product use.
    ``(c) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall make available to carry out this 
section--
            ``(1) $4,000,000 for fiscal year 2008;
            ``(2) $6,000,000 for fiscal year 2009;
            ``(3) $7,000,000 for fiscal year 2010;
            ``(4) $9,000,000 for fiscal year 2011; and
            ``(5) $10,000,000 for fiscal year 2012.''.

                  TITLE VI--CARBON-NEUTRAL GOVERNMENT

SEC. 6001. SHORT TITLE.

    This title may be cited as the ``Carbon-Neutral Government Act of 
2007''.

SEC. 6002. FINDINGS.

    The Congress finds the following:
            (1) The harms associated with global warming are serious 
        and well recognized. These include the global retreat of 
        mountain glaciers, reduction in snow cover extent, the earlier 
        spring melting of rivers and lakes, the accelerated rate of 
        rise of sea levels during the 20th century relative to the past 
        few thousand years, and increased intensity of hurricanes and 
        typhoons.
            (2) The risks associated with a global mean surface 
        temperature increase above 2 C (3.6 F) above preindustrial 
        temperature are grave. According to the Intergovernmental Panel 
        on Climate Change, such temperature increases would increase 
        the severity of ongoing alterations of terrestrial and marine 
        environments, with potentially catastrophic results. Ongoing 
        and projected effects include more prevalent droughts in dry 
        regions, an increase in the spread of disease, a significant 
        reduction in water storage in winter snowpack in mountainous 
        regions with direct and important economic consequences, a 
        precipitous rise in sea levels by the end of the century, the 
        potential devastation of coastal communities, severe and 
        irreversible changes to natural ecosystems such as the 
        bleaching and destruction of much of the world's coral, and the 
        potential extinction of 30 percent of all living species.
            (3) That these climate change effects and risks of future 
        effects are widely shared does not minimize the adverse affects 
        individual persons have suffered, will suffer, and are at risk 
        of suffering because of global warming.
            (4) That some of the adverse and potentially catastrophic 
        effects of global warming are presently at risk of occurring 
        and not a certainty does not negate the harm persons suffer 
        from actions that increase the likelihood, extent, and severity 
        of such future impacts.
            (5) To preserve the ability to stabilize atmospheric 
        greenhouse gas concentrations at levels likely to protect 
        against a temperature rise above 2 C (3.6 F) and maintain the 
        likelihood of avoiding catastrophic global warming will require 
        reductions of greenhouse gas emissions of 50 percent to 85 
        percent globally.
            (6) Achieving such reductions will require a multitude of 
        actions across the global economy that may each address a 
        relatively minute quantity of emissions, but will be 
        cumulatively significant.
            (7) With only 5 percent of the world population, the United 
        States emits approximately 20 percent of the world's total 
        greenhouse gas emissions, and must be a leader in addressing 
        global warming.
            (8) The United States Government is the largest energy 
        consumer in the United States and is responsible for roughly 
        100,000,000 metric tons of CO2-equivalent emissions annually.
            (9) A reduction in greenhouse gas emissions by Federal 
        agencies would slow the increase of global emissions, thereby 
        slowing the increase of global warming and the exacerbation of 
        the risks associated with global warming. In addition, Federal 
        action would accelerate the pace of development and adoption of 
        technologies that will be critical to addressing global warming 
        in the United States and worldwide.
            (10) A failure by any Federal agency to comply with the 
        provisions of this title requiring reductions in its greenhouse 
        gas emissions would exacerbate the pace, extent, and risks of 
        global warming, causing harms beyond what would otherwise 
        occur. The incremental emissions from a Federal agency's 
        failure to comply with this title create a harm, which is the 
        incremental exacerbation of the adverse effects and risks of 
        global warming. Although the emissions increments involved 
        could be relatively small, such a failure allowing 
        incrementally greater emissions would injure all United States 
        citizens.
            (11) Improved management of Government operations, 
        including acquisitions and procurement and operation of 
        Government facilities, can maximize the use of existing energy 
        efficiency and renewable energy technologies to reduce global 
        warming pollution, while saving taxpayers' money, reducing our 
        dependence on oil, enhancing national security, cleaning the 
        air, and protecting pristine places from drilling and mining.
            (12) Enhancing the accountability and transparency of 
        Government operations through setting milestones for agency 
        activities, planning, measuring results, tracking results over 
        time, and public reporting can improve Government management 
        and make Government operations more efficient and cost 
        effective.

 Subtitle A--Federal Government Inventory and Management of Greenhouse 
                             Gas Emissions

SEC. 6101. INVENTORY OF FEDERAL GOVERNMENT GREENHOUSE GAS EMISSIONS.

    (a) In General.--Each agency shall, in accordance with the guidance 
issued under subsection (b), annually inventory and report its 
greenhouse gas emissions for the preceding fiscal year. Each such 
inventory and report shall indicate as discrete categories--
            (1) any direct emission of greenhouse gas as a result of an 
        activity of the agency;
            (2) the quantity of indirect emissions of greenhouse gases 
        attributable to the generation of electricity used by the 
        agency and commercial air travel by agency personnel; and
            (3) the quantity of emissions of greenhouse gases 
        associated with the work performed for the agency by Federal 
        contractors, comprising direct emissions and indirect emissions 
        associated with electricity used by, and commercial air travel 
        by, such contractors.
    (b) Guidance; Assistance.--Not later than 3 months after the date 
of the enactment of this Act, the Administrator shall issue guidance 
for agencies for conducting inventories under this section and 
reporting under section 6102. Such guidance shall establish inventory 
and reporting procedures that are at least as rigorous as the inventory 
procedures established under the Environmental Protection Agency's 
Climate Leaders program and shall define the scope of the inventories 
of direct emissions described in subsection (a)(1) to be complete and 
consistent with the national obligation for reporting inventories under 
the United Nations Framework Convention on Climate Change. The 
Administrator shall provide assistance to agencies in preparing their 
inventories.
    (c) Initial Inventory by Agencies.--
            (1) Submission.--Not later than 1 year after the date of 
        the enactment of this Act, each agency shall submit to the 
        Administrator and make publicly available on the agency's 
        website an initial inventory of the agency's greenhouse gas 
        emissions for the preceding fiscal year.
            (2) Certification.--Not later than 6 months after an agency 
        submits an initial inventory under paragraph (1), the 
        Administrator shall review the inventory for compliance with 
        the guidance issued under subsection (b) and--
                    (A) certify that the inventory is technically 
                valid; or
                    (B) decline to certify the inventory and provide an 
                explanation of the actions or revisions that are 
                necessary for the inventory to be certified under 
                subparagraph (A).
            (3) Revision.--If the Administrator declines to certify the 
        inventory of an agency under paragraph (2)(B), the agency shall 
        submit to the Administrator and make publicly available on the 
        agency's website a revised inventory not later than 6 months 
        after the date on which the Administrator provides the agency 
        with the explanation required by such paragraph.
    (d) Net Greenhouse Gases From Federal Lands.--Beginning not later 
than 2 years after the date of enactment of this Act, the Secretary of 
the Interior and the Secretary of Agriculture shall include as a 
discrete category in any inventory under this section the net 
biological sequestration or emission of greenhouse gases related to 
human activities and associated with land managed by the Bureau of Land 
Management or the Forest Service. In developing such estimates of the 
net biological sequestration or emission of greenhouse gases, the 
Secretary of the Interior and the Secretary of Agriculture shall take 
into consideration the results of any available related assessments 
performed by the Secretary of the Interior. Such net biological 
sequestration or emissions of greenhouse gases shall not be considered 
for the purposes of setting or measuring progress toward targets under 
section 6102. For the purposes of this subsection, the net biological 
sequestration or emission of greenhouse gases refers to the net 
sequestration or emissions associated with uptake and release of 
greenhouse gases from soil, vegetation, and dead organic matter.

SEC. 6102. MANAGEMENT OF FEDERAL GOVERNMENT GREENHOUSE GAS EMISSIONS.

    (a) Emission Reduction Targets.--Not later than 18 months after the 
date of the enactment of this Act, the Administrator shall promulgate 
annual reduction targets for the total quantity of greenhouse gas 
emissions described in section 6101(a), expressed as carbon dioxide 
equivalents, of all agencies, taken collectively, for each of fiscal 
years 2010 through 2050.
    (b) Goals.--The targets promulgated under subsection (a) shall be 
calculated so as--
            (1) to prevent the total quantity of greenhouse gas 
        emissions of all agencies in fiscal year 2011 and each 
        subsequent fiscal year from exceeding the total quantity of 
        such emissions in fiscal year 2010; and
            (2) to reduce such greenhouse gas emissions as rapidly as 
        possible, but at a minimum by a quantity equal to 2 percent of 
        projected fiscal year 2010 emissions each fiscal year, so as to 
        achieve zero net annual greenhouse gas emissions from the 
        agencies by fiscal year 2050.
    (c) Proportionate Share.--Each agency shall limit the quantity of 
its greenhouse gas emissions described in section 6101(a) to its 
proportionate share so as to enable the agencies to achieve the targets 
promulgated under subsection (a). The Administrator shall promulgate 
annual reduction targets to be met by each agency to comply with this 
subsection, after consultation with the agencies and taking into 
account changes in agency size, structure, and mission over time.
    (d) Agency Plans for Managing Emissions.--
            (1) Submission.--Not later than 2 years after the date of 
        the enactment of this Act, each agency shall develop, submit to 
        the Administrator, and make publicly available on the agency's 
        website a plan for achieving the annual reduction targets 
        applicable to such agency under this section through fiscal 
        year 2020. Not later than 2 years before the 10-year period 
        beginning in 2021 and each subsequent 10-year period, the 
        agency shall develop, submit to the Administrator, and make 
        publicly available an updated plan for achieving such targets 
        for the respective period. Each plan developed under this 
        paragraph shall--
                    (A) identify the specific actions to be taken by 
                the agency; and
                    (B) estimate the quantity of reductions of 
                greenhouse gas emissions to be achieved through each 
                such action.
            (2) Certification.--Not later than 6 months after an agency 
        submits a plan under paragraph (1), the Administrator shall--
                    (A) certify that the plan is technically sound and, 
                if implemented, is expected to limit the quantity of 
                the agency's greenhouse gas emissions to its 
                proportionate share under subsection (c); or
                    (B) decline to certify the plan and provide an 
                explanation of the revisions that are necessary for the 
                plan to be certified under subparagraph (A).
            (3) Revision.--If the Administrator declines to certify the 
        plan of an agency under paragraph (2), the agency shall submit 
        to the Administrator and make publicly available on the 
        agency's website a revised plan not later than 6 months after 
        the date on which the Administrator provides the agency with 
        the explanation required by paragraph (2)(B).
    (e) Emissions Management.--
            (1) Requirement.--Each agency shall implement each 
        provision in its plan under subsection (d) to manage its 
        greenhouse gas emissions to meet the annual reduction targets 
        applicable to such agency under this section. If--
                    (A) an agency has met its applicable reduction 
                target for the most recent year; and
                    (B) the agency demonstrates that it is projected to 
                meet such targets for future years without implementing 
                a provision or provisions included in its plan,
        the agency may revise its plan, subject to subsection (d)(2), 
        to defer implementation of such plan provisions until the date 
        that implementation is needed to meet the agency's applicable 
        targets.
            (2) Revision of plan.--If any agency fails to meet such 
        targets for a fiscal year, as indicated by the inventory and 
        report prepared by the agency for such fiscal year, the agency 
        shall submit to the Administrator and make publicly available 
        on the agency's website a revised plan under subsection (d) not 
        later than March 31 of the following fiscal year. The 
        Administrator shall certify or decline to certify the revised 
        plan in accordance with subsection (d)(2) not later than 3 
        months after receipt of the revised plan.
            (3) Offsets.--
                    (A) Proposal.--If no national mandatory economy-
                wide cap-and-trade program for greenhouse gases has 
                been enacted by fiscal year 2010, the Administrator 
                shall develop and submit to the Congress by 2011 a 
                proposal to allow agencies to meet the annual reduction 
                targets applicable to such agencies under this section 
                in part through emissions offsets, beginning in fiscal 
                year 2015.
                    (B) Contents.--The proposal developed under 
                subparagraph (A) shall ensure that emissions offsets 
                are--
                            (i) real, surplus, verifiable, permanent, 
                        and enforceable; and
                            (ii) additional for both regulatory and 
                        financial purposes (such that the generator of 
                        the offset is not receiving credit or 
                        compensation for the offset in another 
                        regulatory or market context).
                    (C) Rulemaking.--If by 2012 the Congress has not 
                enacted a statute for the express purpose of codifying 
                the proposal developed under subparagraph (A) or an 
                alternative to such proposal, the Administrator shall 
                implement the proposal through rulemaking.
            (4) Exemptions.--The President may exempt an agency from 
        complying with the emissions target established for that year 
        under subsection (c) if the President determines it to be in 
        the paramount interest of the United States to do so. The 
        agency shall, to the greatest extent practicable, continue to 
        implement the provisions in the agency's plan. Any exemption 
        shall be for a period not in excess of one year, but additional 
        exemptions may be granted for periods of not more than one year 
        upon the President's making a new determination.
    (f) Studies on Federal Lands.--The Forest Service, the Bureau of 
Land Management, the National Park Service, and the United States Fish 
and Wildlife Service shall--
            (1) within 3 years after the date of the enactment of this 
        Act, conduct studies of the opportunities for management 
        strategies, and identify those management strategies with the 
        greatest potential, to--
                    (A) enhance net biological sequestration of 
                greenhouse gases on Federal lands they manage while 
                avoiding harmful effects on other environmental values; 
                and
                    (B) reduce negative impacts of global warming on 
                biodiversity, water supplies, forest health, biological 
                sequestration and storage, and related values;
            (2) within 4 years after the date of the enactment of this 
        Act, study the results that could be achieved through applying 
        management strategies identified as having the greatest 
        potential to achieve the benefits described in paragraph (1) by 
        implementing field experiments on discrete portions of selected 
        land management units in different parts of the Nation to test 
        such strategies; and
            (3) report to the Congress on the results of the studies.
    (g) Study on Urban and Wildland-Urban Forestry Programs.--Within 2 
years of the date of enactment of this Act, the Forest Service, in 
consultation with appropriate State and local agencies, shall conduct a 
study of the opportunities of urban and wildland-urban interface 
forestry programs to enhance net biological sequestration of greenhouse 
gases and achieve other benefits.
    (h) Reporting.--
            (1) Reports by agencies.--Not later than December 31 each 
        fiscal year, each agency shall submit to the Administrator and 
        make publicly available on the agency's website a report on the 
        agency's implementation of its plan required by subsection (d) 
        for the preceding fiscal year, including the inventory of 
        greenhouse gas emissions of the agency during such fiscal year.
            (2) Annual report to congress.--The Administrator shall 
        review each report submitted under paragraph (1) for technical 
        validity and compile such reports in an annual report on the 
        Federal Government's progress toward carbon neutrality. The 
        Administrator shall submit such annual report to the Committee 
        on Oversight and Government Reform of the House of 
        Representatives and the Committee on Governmental Affairs of 
        the Senate and make such annual report publicly available on 
        the Environmental Protection Agency's website.
            (3) Electronic submission.--In complying with any 
        requirement of this subtitle for submission of inventories, 
        plans, or reports, an agency shall use electronic reporting in 
        lieu of paper copy reports.

SEC. 6103. PILOT PROJECT FOR PURCHASE OF OFFSETS AND CERTIFICATES.

    (a) GAO Study.--No later than April 1, 2008, the Comptroller 
General of the United States shall issue the report requested by the 
Congress on May 17, 2007, regarding markets for greenhouse gas 
emissions offsets.
    (b) Pilot Project.--Executive agencies and legislative branch 
offices may purchase qualified greenhouse gas offsets and qualified 
renewable energy certificates in any open market transaction that 
complies with all applicable procurement rules and regulations.
    (c) Qualified Greenhouse Gas Offsets.--For purposes of this 
section, the term ``qualified greenhouse gas offset'' means a real, 
additional, verifiable, enforceable, and permanent domestic--
            (1) reduction of greenhouse gas emissions; or
            (2) sequestration of greenhouse gases.
    (d) Qualified Renewable Energy Certificates.--For purposes of this 
section, the term ``qualified renewable energy certificate'' means a 
certificate representing a specific amount of energy generated by a 
renewable energy project that is real, additional, and verifiable.
    (e) Guidance.--No later than September 30, 2008, the Administrator 
shall issue guidelines, for Executive agencies, establishing criteria 
for qualified greenhouse gas offsets and qualified renewable energy 
certificates. Such guidelines shall take into account the findings and 
recommendations of the report issued under subsection (a) and shall--
            (1) establish performance standards for greenhouse gas 
        offset projects that benchmark reliably expected greenhouse gas 
        reductions from identified categories of projects that reduce 
        greenhouse gas emissions or sequester carbon in accordance with 
        subsection (c); and
            (2) establish criteria for qualified renewable energy 
        certificates to ensure that energy generated is renewable and 
        is in accordance with subsection (d).
    (f) Report.--The Comptroller General of the United States shall 
evaluate the pilot program established by this section, including 
identifying environmental and other benefits of the program, as well as 
its financial costs and any disadvantages associated with the program. 
No later than April 1, 2011, the Comptroller General shall provide a 
report to the Committee on Oversight and Government Reform of the House 
of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate providing the details of the 
evaluation and any recommendations for improvement.
    (g) Additional Definitions.--In this section:
            (1) Notwithstanding section 6106(3) of this Act, the term 
        ``Executive agency'' has the meaning given to such term in 
        section 105 of title 5, United States Code.
            (2) The term ``renewable energy'' has the meaning given 
        that term in section 203(b) of the Energy Policy Act of 2005 
        (42 U.S.C. 15852(b)(2)), except that energy generated from 
        municipal solid waste shall not be renewable energy.
    (h) Authorization.--Of the amount of discretionary funds available 
to each Executive agency or legislative branch office for each of 
fiscal years 2009 and 2010, not more than 0.01 percent of such amount 
may be used for the purpose of carrying out this section. Such funding 
shall be in addition to any other funds available to the Executive 
agency or legislative branch office for such purpose.
    (i) Sunset Clause.--This section ceases to be effective at the end 
of fiscal year 2010.

SEC. 6104. IMPACT ON AGENCY'S PRIMARY MISSION.

    In implementing the requirements of this subtitle, each agency 
should adopt compliance strategies that are consistent with the 
agency's primary mission.

SEC. 6105. SAVINGS CLAUSE.

    Nothing in this title or any amendment made by this title shall be 
interpreted to preempt or limit the authority of a State to take any 
action to address global warming.

SEC. 6106. DEFINITIONS.

    In this subtitle:
            (1) The term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency.
            (2) The term ``carbon dioxide equivalent'' means, for each 
        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, taking into 
        account the global warming potentials published by the 
        Intergovernmental Panel on Climate Change.
            (3) The term ``agency'' has the meaning given to that term 
        in section 551 of the National Energy Conservation Policy Act 
        (42 U.S.C. 8259).
            (4) The term ``greenhouse gas'' means--
                    (A) carbon dioxide;
                    (B) methane;
                    (C) nitrous oxide;
                    (D) hydrofluorocarbons;
                    (E) perfluorocarbons;
                    (F) sulfur hexafluoride; or
                    (G) any other anthropogenically-emitted gas that 
                the Administrator, after notice and comment, determines 
                contributes to global warming to a non-negligible 
                degree.

SEC. 6107. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to implement this subtitle.

            Subtitle B--Federal Government Energy Efficiency

SEC. 6201. FEDERAL VEHICLE FLEETS.

    Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is 
amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Vehicle Emission Requirements.--
            ``(1) Prohibition.--No Federal agency shall acquire a light 
        duty motor vehicle or medium duty passenger vehicle that is not 
        a low greenhouse gas emitting vehicle.
            ``(2) Guidance.--Each year, the Administrator of the 
        Environmental Protection Agency shall issue guidance 
        identifying the makes and model numbers of vehicles that are 
        low greenhouse gas emitting vehicles. In identifying such 
        vehicles, the Administrator shall take into account the most 
        stringent standards for vehicle greenhouse gas emissions 
        applicable to and enforceable against motor vehicle 
        manufacturers for vehicles sold anywhere in the United States. 
        The Administrator shall not identify any vehicle as a low 
        greenhouse gas emitting vehicle if the vehicle emits greenhouse 
        gases at a higher rate than such standards allow for the 
        manufacturer's fleet average grams per mile of carbon dioxide-
        equivalent emissions for that class of vehicle, taking into 
        account any emissions allowances and adjustment factors such 
        standards provide.
            ``(3) Definition.--For purposes of this subsection, the 
        term `medium duty passenger vehicle' has the meaning given that 
        term section 523.2 of title 49 of the Code of Federal 
        Regulations.''.

SEC. 6202. AGENCY ANALYSES FOR MOBILITY ACQUISITIONS.

    (a) Cost Estimate Requirement.--Each Federal agency that owns, 
operates, maintains, or otherwise funds infrastructure, assets, or 
personnel to provide delivery of fuel to its operations shall apply 
activity based cost accounting principles to estimate the fully 
burdened cost of fuel.
    (b) Use of Cost Estimate.--Each agency shall use the fully burdened 
cost of fuel, as estimated under subsection (a), in conducting analyses 
and making decisions regarding its activities that create a demand for 
energy. Such analyses and decisions shall include--
            (1) the use of models, simulations, wargames, and other 
        analytical tools to determine the types of energy consuming 
        equipment that an agency needs to conduct its missions;
            (2) life-cycle cost benefit analyses and other trade-off 
        analyses for determining the cost effectiveness of measures 
        that improve the energy efficiency of an agency's equipment and 
        systems;
            (3) analyses and decisions conducted or made by others for 
        the agency; and
            (4) procurement and acquisition source selection criteria, 
        requests for proposals, and best value determinations.
    (c) Revision of Analytical Tools.--If a Federal agency employs 
models, simulations, wargames, or other analytical tools that require 
substantial upgrades to enable those tools to be used in compliance 
with this section, the agency shall complete such necessary upgrades 
not later than 4 years after the date of enactment of this Act.
    (d) Definition.--For purposes of this section, the term ``fully 
burdened cost of fuel'' means the commodity price for the fuel plus the 
total cost of all personnel and assets required to move and, where 
applicable, protect, the fuel from the point at which the fuel is 
received from the commercial supplier to the point of use.

SEC. 6203. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) Amendments.--Section 553 of the National Energy Conservation 
Policy Act (42 U.S.C. 8259b) is amended--
            (1) in subsection (b)(1), by inserting ``in a product 
        category covered by the Energy Star program or the Federal 
        Energy Management Program for designated products'' after 
        ``energy consuming product''; and
            (2) in subsection (c)--
                    (A) by inserting ``list in their catalogues, 
                represent as available, and'' after ``Logistics Agency 
                shall''; and
                    (B) by striking ``where the agency'' and inserting 
                ``where the head of the agency''.
    (b) Catalogue Listing Deadline.--Not later than 9 months after the 
date of enactment of this Act, the General Services Administration and 
the Defense Logistics Agency shall ensure that the requirement in the 
amendment made under subsection (a)(2)(A) has been fully complied with.

SEC. 6204. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.

    (a) Standards.--Section 305(a)(3) of the Energy Conservation and 
Production Act (42 U.S.C. 6834(a)(3)) is amended by adding at the end 
the following new subparagraph:
    ``(D) Not later than 1 year after the date of enactment of the 
Carbon-Neutral Government Act of 2007, the Secretary shall establish, 
by rule, revised Federal building energy efficiency performance 
standards that require that:
            ``(i) For new Federal buildings and Federal buildings 
        undergoing major renovations, with respect to which the 
        Adminstrator of General Services is required to transmit a 
        prospectus to Congress under section 3307 of title 40, United 
        States Code, in the case of public buildings (as defined in 
        section 3301 of title 40, United States Code), or of at least 
        $2,500,000 in costs adjusted annually for inflation for other 
        buildings:
                    ``(I) The buildings shall be designed so that the 
                fossil fuel-generated energy consumption of the 
                buildings is reduced, as compared with such energy 
                consumption by a similar building in fiscal year 2003 
                (as measured by Commercial Buildings Energy Consumption 
                Survey or Residential Energy Consumption Survey data 
                from the Energy Information Agency), by the percentage 
                specified in the following table:


 
 
 
``Fiscal Year                            Percentage Reduction
  2010.................................  55
  2015.................................  65
  2020.................................  80
  2025.................................  90
  2030.................................  100.

                    ``(II) Sustainable design principles shall be 
                applied to the siting, design, and construction of such 
                buildings. Not later than 60 days after the date of 
                enactment of the Carbon-Neutral Government Act of 2007, 
                the Secretary, in consultation with the Administrator 
                of General Services, and in consultation with the 
                Secretary of Defense for considerations relating to 
                those facilities under the custody and control of the 
                Department of Defense, shall identify a certification 
                system and level for green buildings that the Secretary 
                determines to be the most likely to encourage a 
                comprehensive and environmentally-sound approach to 
                certification of green buildings. The identification of 
                the certification system and level shall be based on 
                the criteria specified in clause (ii) and shall achieve 
                results at least comparable to the United States Green 
                Building Council Leadership in Energy and Environmental 
                Design silver level. Within 60 days of the completion 
                of each study required by clause (iii), the Secretary, 
                in consultation with the Administrator of General 
                Services, and in consultation with the Secretary of 
                Defense for considerations relating to those facilities 
                under the custody and control of the Department of 
                Defense, shall review and update the certification 
                system and level, taking into account the conclusions 
                of such study.
            ``(ii) In identifying the green building certification 
        system and level, the Secretary shall take into consideration--
                    ``(I) the ability and availability of assessors and 
                auditors to independently verify the criteria and 
                measurement of metrics at the scale necessary to 
                implement this subparagraph;
                    ``(II) the ability of the applicable certification 
                organization to collect and reflect public comment;
                    ``(III) the ability of the standard to be developed 
                and revised through a consensus-based process;
                    ``(IV) an evaluation of the robustness of the 
                criteria for a high-performance green building, which 
                shall give credit for promoting--
                            ``(aa) efficient and sustainable use of 
                        water, energy, and other natural resources;
                            ``(bb) use of renewable energy sources;
                            ``(cc) improved indoor environmental 
                        quality through enhanced indoor air quality, 
                        thermal comfort, acoustics, day lighting, 
                        pollutant source control, and use of low-
                        emission materials and building system 
                        controls; and
                            ``(dd) such other criteria as the Secretary 
                        determines to be appropriate; and
                    ``(V) national recognition within the building 
                industry.
            ``(iii) At least once every five years, the Administrator 
        of General Services shall conduct a study to evaluate and 
        compare available third-party green building certification 
        systems and levels, taking into account the criteria listed in 
        clause (ii).
            ``(iv) The Secretary may by rule allow Federal agencies to 
        develop internal certification processes, using certified 
        professionals, in lieu of certification by the certification 
        entity identified under clause (i)(II). The Secretary shall 
        include in any such rule guidelines to ensure that the 
        certification process results in buildings meeting the 
        applicable certification system and level identified under 
        clause (i)(II). An agency employing an internal certification 
        process must continue to obtain external certification by the 
        certification entity identified under clause (i)(II) for at 
        least 5 percent of the total number of buildings certified 
        annually by the agency.
            ``(v) With respect to privatized military housing, the 
        Secretary of Defense, after consultation with the Secretary 
        may, through rulemaking, develop alternative criteria to those 
        established by subclauses (I) and (II) of clause (i) that 
        achieve an equivalent result in terms of energy savings, 
        sustainable design, and green building performance.
            ``(vi) In addition to any use of water conservation 
        technologies otherwise required by this section, water 
        conservation technologies shall be applied to the extent that 
        the technologies are life-cycle cost-effective.''.
    (b) Definitions.--Section 303(6) of the Energy Conservation and 
Production Act (42 U.S.C. 6832(6)) is amended by striking ``which is 
not legally subject to State or local building codes or similar 
requirements.'' and inserting ``. Such term shall include buildings 
built for the purpose of being leased by a Federal agency, and 
privatized military housing.''.

SEC. 6205. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY.

    (a) Large Capital Energy Investments.--Section 543 of the National 
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at 
the end the following new subsection:
    ``(f) Large Capital Energy Investments.--Each Federal agency shall 
ensure that any large capital energy investment in an existing building 
that is not a major renovation but involves replacement of installed 
equipment, such as heating and cooling systems, or involves renovation, 
rehabilitation, expansion, or remodeling of existing space, employs the 
most energy efficient designs, systems, equipment, and controls that 
are life-cycle cost effective. Not later than 6 months after the date 
of enactment of the Carbon-Neutral Government Act of 2007, each Federal 
agency shall develop a process for reviewing each such large capital 
energy investment decision to ensure that the requirement of this 
subsection is met, and shall report to the Office of Management and 
Budget on the process established. Not later than one year after the 
date of enactment of the Carbon-Neutral Government Act of 2007, the 
Office of Management and Budget shall evaluate and report to Congress 
on each agency's compliance with this subsection.''.
    (b) Metering.--Section 543(e)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(e)(1)) is amended by inserting 
``By October 1, 2016, each agency shall also provide for equivalent 
metering of natural gas, steam, chilled water, and water, in accordance 
with guidelines established by the Secretary under paragraph (2).'' 
after ``buildings of the agency.''.

SEC. 6206. LEASING.

    (a) In General.--Except as provided in subsection (b), effective 3 
years after the date of enactment of this Act, no Federal agency shall 
enter into a new contract to lease space in a building that has not 
earned the Energy Star label in the most recent year.
    (b) Exception.--If--
            (1) no space is available in such a building that meets an 
        agency's functional requirements, including locational needs;
            (2) the agency is proposing to remain in a building that 
        the agency has occupied previously;
            (3) the agency is proposing to lease a building of 
        historical, architectural, or cultural significance, as defined 
        in section 3306(a)(4) of title 40, United States Code, or space 
        in such a building; or
            (4) the lease is for no more than 10,000 gross square feet 
        of space,
the agency may enter into a contract to lease space in a building that 
has not earned the Energy Star label in the most recent year if the 
lease contract includes provisions requiring that, prior to occupancy, 
or in the case of a contract described in paragraph (2) not later than 
6 months after signing the contract, the space will be renovated for 
all energy efficiency improvements that would be cost effective over 
the life of the lease, including improvements in lighting, windows, and 
heating, ventilation, and air conditioning systems.

SEC. 6207. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

    No Federal agency shall enter into a contract for procurement of an 
alternative or synthetic fuel, including a fuel produced from non-
conventional petroleum sources, for any mobility-related use, other 
than for research or testing, unless the contract specifies that the 
lifecycle greenhouse gas emissions associated with the production and 
combustion of the fuel supplied under the contract must, on an ongoing 
basis, be less than or equal to such emissions from the equivalent 
conventional fuel produced from conventional petroleum sources.

SEC. 6208. CONTRACTS FOR RENEWABLE ENERGY FOR EXECUTIVE AGENCIES.

    Section 501(b)(1) of title 40, United States Code, is amended--
            (1) in subparagraph (B), by striking ``A contract'' and 
        inserting ``Except as provided in subparagraph (C), a 
        contract''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) Renewable energy contracts.--A contract for 
                renewable energy may be made for a period of not more 
                than 30 years. For the purposes of this subparagraph, 
                the term `renewable energy' has the meaning given that 
                term in section 203(b) of the Energy Policy Act of 2005 
                (42 U.S.C. 15852(b)(2)), except that energy generated 
                from municipal solid waste shall not be considered 
                renewable energy.''.

SEC. 6209. GOVERNMENT EFFICIENCY STATUS REPORTS.

    (a) In General.--Each Federal agency subject to any of the 
requirements of this title and the amendments made by this title shall 
compile and submit to the Director of the Office of Management and 
Budget an annual Government efficiency status report on--
            (1) compliance by the agency with each of the requirements 
        of this title and the amendments made by this title;
            (2) the status of the implementation by the agency of 
        initiatives to improve energy efficiency, reduce energy costs, 
        and reduce emissions of greenhouse gases; and
            (3) savings to American taxpayers resulting from mandated 
        improvements under this title and the amendments made by this 
        title
    (b) Submission.--Such report shall be submitted--
            (1) to the Director at such time as the Director requires;
            (2) in electronic, not paper, format; and
            (3) consistent with related reporting requirements.

SEC. 6210. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.

    (a) Reports.--Not later than April 1 of each year, the Director of 
the Office of Management and Budget shall submit an Annual Government 
Efficiency report to the Committee on Oversight and Government Reform 
of the House of Representatives and the Committee on Governmental 
Affairs of the Senate, which shall contain--
            (1) a summary of the information reported by agencies under 
        section 6209;
            (2) an evaluation of the Government's overall progress 
        toward achieving the goals of this title and the amendments 
        made by this title; and
            (3) recommendations for additional actions necessary to 
        meet the goals of this title and the amendments made by this 
        title.
    (b) Scorecards.--The Office of Management and Budget shall include 
in any annual energy scorecard it is otherwise required to submit a 
description of each agency's compliance with the requirements of this 
title and the amendments made by this title.

SEC. 6211. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to implement this subtitle.

SEC. 6212. JUDICIAL REVIEW.

    (a) Final Agency Action.--Any nondiscretionary act or duty under 
this title or any amendment made by this title is a final agency action 
for the purposes of judicial review under chapter 7 of title 5, United 
States Code.
    (b) Venue for Certain Actions.--The United States Court of Appeals 
for the District of Columbia Circuit shall have exclusive jurisdiction 
over any petition for review of action of the Administrator in 
promulgating any rule under subtitle A of this title.
    (c) Limitations.--No action under chapter 7 of title 5, United 
States Code, may be commenced prior to 60 days after the date on which 
the plaintiff has given notice to the Federal agency concerned of the 
alleged violation of this title or any amendment made by this title.
    (d) Common Claims.--When civil actions arising under this title or 
any amendment made by this title are pending in the same court and 
involve one or more common questions of fact or common claims regarding 
the same alleged Federal agency failure or failures to act, the court 
may consolidate such claims into a single action for judicial review. 
When civil actions arising under this title or any amendment made by 
this title are pending in different districts and involve one or more 
common questions of fact or common claims regarding the same alleged 
Federal agency failure or failures to act, such actions may be 
consolidated pursuant to section 1407 of title 28, United States Code.
    (e) Aggrieved Persons.--A person shall be considered aggrieved 
within the meaning of this title or any amendment made by this title 
for purposes of obtaining judicial review under chapter 7 of title 5, 
United States Code, if the person alleges--
            (1) harm attributable to a Federal agency's failure to 
        reduce its greenhouse gas emissions in accordance with the 
        requirements under this title or any amendment made by this 
        title, or take other actions required under this title or any 
        amendment made by this title; or
            (2) a Federal agency's failure to collect and provide 
        information to the public as required by this title or any 
        amendment made by this title.
For purposes of this section, the term ``harm'' includes any effect of 
global warming, currently occurring or at risk of occurring, and the 
incremental exacerbation of any such effect or risk that is associated 
with relatively small increments of greenhouse gas emissions, even if 
the effect or risk is widely shared. An effect or risk associated with 
global warming is ``attributable'' to a Federal agency's failure to act 
as described in paragraph (1) if the failure to act results in larger 
emissions of greenhouse gases than would have been emitted had the 
Federal agency followed the requirements of this title or any amendment 
made by this title, as any such incremental additional emissions will 
exacerbate the pace, extent, and risks of global warming.
    (f) Remedy.--
            (1) In general.--In addition to the remedies available 
        under chapter 7 of title 5, United States Code, a court may 
        provide the remedies specified in this subsection.
            (2) Payment.--In any civil action alleging a violation of 
        this title, if the court finds that an agency has significantly 
        violated this title in its failure to perform any 
        nondiscretionary act or duty under this title or any amendment 
        made by this title, the court may award a payment, payable by 
        the United States Treasury, to be used for a beneficial 
        mitigation project recommended by the plaintiff or to 
        compensate the plaintiff for any impact from global warming 
        suffered by the plaintiff. The total payment for all claims by 
        all plaintiffs in any such action shall not exceed the amount 
        provided in section 1332(b) of title 28, United States Code. A 
        court may deny a second payment under this section if the court 
        determines that the plaintiff has filed multiple separate 
        actions that could reasonably have been combined into a single 
        action. No payment may be awarded under this paragraph for 
        violations of an agency's obligation to collect or report 
        information to the public. No court may award any payment under 
        this paragraph in any given year if the cumulative payments 
        awarded by courts under this paragraph in such year are equal 
        to or greater than $1,500,000.
            (3) Costs.--A court may award costs of litigation to any 
        substantially prevailing plaintiff or to any other plaintiff 
        whenever the court determines such an award is appropriate. 
        Such an award is appropriate when such litigation contributes 
        to the Federal agency's compliance with this title or any 
        amendment made by this title. Costs of litigation include 
        reasonable attorney fees and expert fees.
            (4) Exclusive remedy.--Notwithstanding any other provision 
        of Federal law--
                    (A) no plaintiff who is awarded a payment under 
                this subsection for a failure to perform a mandatory 
                duty under this title or any amendment made by this 
                title may be awarded a payment for such failure under 
                any other Federal law; and
                    (B) no plaintiff may be awarded a payment under 
                this subsection for a failure to perform a mandatory 
                duty under this title or any amendment made by this 
                title if the plaintiff has been awarded a payment for 
                such failure under any other Federal law.
    (g) No State Court Action.--No person may bring any action in State 
court alleging a violation of this title or any amendment made by this 
title.
    (h) Inapplicability to Procurement Protests.--No action may be 
commenced under this section objecting to a solicitation by a Federal 
agency for bids or proposals for a proposed contract or to a proposed 
award or the award of a contract or any alleged violation of statute or 
regulation in connection with a procurement or a proposed procurement 
if such action may be brought by an interested party under section 
1491(b)(1) of title 28, United States Code, or subchapter V of title 
31, United States Code.
    (i) Definition.--In this section, the term ``person'' means a 
United States person. In the case of an individual, such term means a 
citizen or national of the United States.

           TITLE VII--NATURAL RESOURCES COMMITTEE PROVISIONS

SEC. 7001. SHORT TITLE.

    This title may be cited as the ``Energy Policy Reform and 
Revitalization Act of 2007''.

             Subtitle A--Energy Policy Act of 2005 Reforms

SEC. 7101. FISCALLY RESPONSIBLE ENERGY AMENDMENTS.

    (a) Requirement to Establish Cost Recovery Fee.--Section 365(i) of 
the Energy Policy Act of 2005 (Public Law 109-58; 42 U.S.C. 15924(i)) 
is amended to read as follows:
    ``(i) Fee for Applications for Permits to Drill.--
            ``(1) Requirement to establish cost recovery fee.--The 
        Secretary of the Interior shall promulgate regulations to 
        establish a cost recovery fee for applications for a permit to 
        drill for oil and gas on Federal lands administered by the 
        Secretary.
            ``(2) Temporary fee.--Until such time as a fee is 
        established by such regulations, the Secretary shall charge a 
        cost recovery fee of $1,700 for each such application received 
        on or after October 1, 2007.
            ``(3) Deposit and use.--Amounts received by the United 
        States in the form of the fee established under this 
        subsection--
                    ``(A) shall be available to the Secretary of the 
                Interior to administer permit processing; and
                    ``(B) shall be treated as offsetting receipts.''.
    (b) Repeal of BLM Permit Processing Improvement Fund.--
            (1) Repeal.--Section 35 of the Mineral Leasing Act (30 
        U.S.C. 191) is amended by striking subsection (c).
            (2) Treatment of balance.--Any balances remaining in the 
        BLM Permit Processing Improvement Fund on the effective date of 
        this subsection shall be transferred to the general fund of the 
        Treasury of the United States.
            (3) Effective date.--This subsection shall take effect on 
        October 1, 2007.

SEC. 7102. EXTENSION OF DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR 
              PERMITS.

    Subsection (p)(2) of section 17 of the Mineral Leasing Act (30 
U.S.C. 226) is amended by striking ``30'' and inserting ``45''.

SEC. 7103. OIL SHALE AND TAR SANDS LEASING.

    Section 369 of the Energy Policy Act of 2005 (42 U.S.C. 15927) is 
amended--
            (1) in subsection (c), by striking ``not later than 180 
        days after the date of enactment of this Act,'';
            (2) in subsection (c), by striking ``shall make'' and 
        inserting ``may make'';
            (3) in subsection (d)(1), by striking ``Not later than 18 
        months after the date of enactment of this Act, in'' and 
        inserting ``In'';
            (4) in subsection (d)(2)--
                    (A) in the heading by striking ``Final'' and 
                inserting ``Proposed''; and
                    (B) in the text by striking ``final'' and inserting 
                ``proposed'';
            (5) in subsection (d)(2), by striking ``6'' and inserting 
        ``12'';
            (6) in subsection (d)(2) by inserting after the period 
        ``The proposed regulations developed under this paragraph are 
        to be open for public comment for no less than 120 days.'';
            (7) by redesignating subsections (e) through (s) as 
        subsections (g) through (u), and by inserting after subsection 
        (d) the following:
    ``(e) Oil Shale and Tar Sands Leasing and Development Strategy.--
            ``(1) General.--Not later than 6 months after the 
        completion of the programmatic environmental impact statement 
        under subsection (d), the Secretary shall prepare an oil shale 
        and tar sands leasing and development strategy, in cooperation 
        with the Secretary of Energy and the Administrator of the 
        Environmental Protection Agency.
            ``(2) Purpose.--The purpose of the strategy developed under 
        this subsection is to provide a framework for regulations that 
        will allow for the sustainable and publicly acceptable large-
        scale development of oil shale within the Green River Formation 
        and to provide a basis for decisions regarding Federal support 
        for research and other activities to achieve that result.
            ``(3) Contents.--The strategy shall include plans and 
        programs for obtaining information required for determining the 
        optimal methods, locations, amount, and timeframe for potential 
        development on Federal lands within the Green River Formation. 
        The strategy shall also include plans for conducting critical 
        environmental and ecological research, high-payoff process 
        improvement research, an assessment of carbon management 
        options, and a large-scale demonstration of carbon dioxide 
        sequestration in the general vicinity of the Piceance Basin.
    ``(f) Alternative Approaches.--In developing the strategy under 
subsection (e), the Secretary shall, in cooperation with the Secretary 
of Energy and the Administrator of the Environmental Protection Agency, 
consult with industry and other interested persons regarding 
alternative approaches to providing access to Federal lands for early 
first-of-a-kind commercial facilities for extracting and processing oil 
shale and tar sands.'';
            (8) in subsection (g), as so redesignated, by striking ``of 
        the final regulation required by subsection (d)'' and inserting 
        ``of final regulations issued under this section'';
            (9) in subsection (g), as so redesignated, by adding at the 
        end the following: ``Compliance with the National Environmental 
        Policy Act of 1969 is required on a site-by-site basis for all 
        lands proposed to be leased under the commercial leasing 
        program established in this subsection.''; and
            (10) in subsection (i)(1)(B), as so redesignated, by 
        striking ``subsection (e)'' and inserting ``subsection (g)''.

SEC. 7104. LIMITATION OF REBUTTABLE PRESUMPTION REGARDING APPLICATION 
              OF CATEGORICAL EXCLUSION UNDER NEPA FOR OIL AND GAS 
              EXPLORATION AND DEVELOPMENT ACTIVITIES.

    Section 390 of the Energy Policy Act of 2005 (Public Law 109-58; 42 
U.S.C. 15942) is amended by adding at the end the following:
    ``(c) Adherence to CEQ Regulations.--In administering this section, 
the Secretary of the Interior in managing the public lands, and the 
Secretary of Agriculture in managing National Forest System lands, 
shall adhere to the regulations issued by the Council on Environmental 
Quality relating to categorical exclusions (40 C.F.R. 1507.3 and 
1508.4), as in effect on the date of enactment of this Act.''.

SEC. 7105. BEST MANAGEMENT PRACTICES.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of the Interior, through the Bureau of Land Management, 
shall amend the best management practices guidelines for oil and gas 
development on Federal lands, to--
            (1) require public review and comment prior to waiving any 
        stipulation of an oil and gas lease for such lands, except in 
        the case of an emergency; and
            (2) create an incentive for oil and gas operators to adopt 
        best management practices that minimize adverse impacts to 
        wildlife habitat, by providing expedited permit review for any 
        operator that commits to adhering to those practices without 
        seeking waiver of such stipulations.

SEC. 7106. FEDERAL CONSISTENCY APPEALS.

    (a) Short Title.--This section may be cited as the ``Federal 
Consistency Appeals Decision Refinement Act''.
    (b) Clarification of Appeal Decision Time Periods and Information 
Requirements.--Section 319(b) of the Coastal Zone Management Act of 
1972 (16 U.S.C. 1465(b)) is amended--
            (1) in paragraph (1), by striking ``160-day'' and inserting 
        ``200-day'';
            (2) in paragraph (3)(A)--
                    (A) by striking ``160-day'' and inserting ``200-
                day''; and
                    (B) by amending clause (ii) to read as follows:
                            ``(ii) as the Secretary determines 
                        necessary to receive, on an expedited basis, 
                        any supplemental or clarifying information 
                        relevant to the consolidated record compiled by 
                        the lead Federal permitting agency to complete 
                        a consistency review under this title.''; and
            (3) in paragraph (3)(B) by striking ``160-day'' and 
        inserting ``200-day''.

Subtitle B--Federal Energy Public Accountability, Integrity, and Public 
                                Interest

 CHAPTER 1--ACCOUNTABILITY AND INTEGRITY IN THE FEDERAL ENERGY PROGRAM

SEC. 7201. AUDITS.

    (a) Requirement To Increase the Number of Audits.--The Secretary of 
the Interior shall ensure that by fiscal year 2009 the Minerals 
Management Service shall perform no less that 550 audits of oil and gas 
leases each fiscal year.
    (b) Standards.--Not later than 120 days after the date of enactment 
of this Act, the Secretary of the Interior shall issue regulations that 
require that all employees that conduct audits or compliance reviews 
must meet professional auditor qualifications that are consistent with 
the latest revision of the Government Auditing Standards published by 
the Government Accountability Office. Such regulations shall also 
ensure that all audits conducted by the Department of the Interior are 
performed in accordance with such standards.

SEC. 7202. FINES AND PENALTIES.

    (a) Sanctions for Violations Relating to Federal Oil and Gas 
Royalties.--Section 109 of the Federal Oil and Gas Royalty Management 
Act of 1982 (30 U.S.C. 1719) is amended to read as follows:

                           ``civil penalties

    ``Sec. 109.  (a) Royalty Violations.--(1) No person shall--
            ``(A) after due notice of violation or after such violation 
        has been reported under paragraph (3)(A), fail or refuse to 
        comply with any requirement of any mineral leasing law or any 
        regulation, order, lease, or permit under such a law;
            ``(B) fail or refuse to make any royalty payment in the 
        amount or value required by any mineral leasing law or any 
        regulation, order, or lease under such a law, with the intent 
        to defraud;
            ``(C) fail or refuse to make any royalty payment by the 
        date required by any mineral leasing law or any regulation, 
        order, or lease under such a law, with the intent to defraud; 
        or
            ``(D) prepare, maintain, or submit any false, inaccurate, 
        or misleading report, notice, affidavit, record, data, or other 
        written information or filing related to royalty payments that 
        is required under any mineral leasing law or regulation issued 
        under any mineral leasing law, with the intent to defraud.
    ``(2) A person who violates paragraph (1) shall be liable--
            ``(A) in the case of a violation of subparagraph (B) or (C) 
        of paragraph (1) for an amount equal to 3 times the royalty the 
        person fails or refuses to pay, plus interest on that trebled 
        amount measured from the first date the royalty payment was 
        due; and
            ``(B) in the case of any violation, for a civil penalty 
        of--
                    ``(i) except as provided in clause (ii), up to 
                $25,000 per violation for each day the violation 
                continues; or
                    ``(ii) if the person failed or refused to make a 
                payment of royalty owed in an amount less than $25,000, 
                an amount equal to 150 percent of the royalty owed that 
                was not paid;
    ``(3) Paragraph (2) shall not apply to a violation of paragraph (1) 
if the person who commits the violation, within 30 days of knowing of 
the violation--
            ``(A) reports the violation to the Secretary or a 
        representative designated by the Secretary; and
            ``(B) corrects the violation.
    ``(b) Lease Administration Violations.--Any person who--
            ``(1) fails to notify the Secretary of--
                    ``(A) any designation by the person under section 
                102(a); or
                    ``(B) any other assignment of obligations or 
                responsibilities of the person under a lease;
            ``(2) fails or refuses to permit--
                    ``(A) lawful entry;
                    ``(B) inspection, including any inspection 
                authorized by section 108; or
                    ``(C) audit, including any failure or refusal to 
                promptly tender requested documents;
            ``(3) fails or refuses to comply with subsection 102(b)(3) 
        (relating to notification regarding beginning or resumption of 
        production); or
            ``(4) fails to correctly report and timely provide 
        operations or financial records necessary for the Secretary or 
        any authorized designee of the Secretary to accomplish lease 
        management responsibilities,
shall be liable for a penalty of up to $10,000 per violation for each 
day such violation continues.
    ``(c) Theft.--Any person who--
            ``(1) knowingly or willfully takes or removes, transports, 
        uses or diverts any oil or gas from any lease site without 
        having valid legal authority to do so; or
            ``(2) purchases, accepts, sells, transports, or conveys to 
        another, any oil or gas knowing or having reason to know that 
        such oil or gas was stolen or unlawfully removed or diverted,
shall be liable for a penalty of up to $25,000 per violation for each 
day such violation continues without correction.
    ``(d) Administrative Appeal.--(1) Any determination by the 
Secretary or a designee of the Secretary of the amount of any royalties 
or civil penalties owed under subsection (a), (b), or (c) shall be 
final, unless within 120 days after notification by the Secretary or 
designee the person liable for such amount files an administrative 
appeal in accordance with regulations issued by the Secretary.
    ``(2) If a person files an administrative appeal pursuant to 
paragraph (1), the Secretary or designee shall make a final 
determination in accordance with the regulations referred to in 
paragraph (1).
    ``(e) Deduction.--The amount of any penalty under this section, as 
finally determined may be deducted from any sums owing by the United 
States to the person charged.
    ``(f) Compromise and Reduction.--On a case-by-case basis the 
Secretary may compromise or reduce civil penalties under this section.
    ``(g) Notice.--Notice under this subsection (a) shall be by 
personal service by an authorized representative of the Secretary or by 
registered mail. Any person may, in the manner prescribed by the 
Secretary, designate a representative to receive any notice under this 
subsection.
    ``(h) Record of Determination.--In determining the amount of such 
penalty, or whether it should be remitted or reduced, and in what 
amount, the Secretary shall state on the record the reasons for his 
determinations.
    ``(i) Judicial Review.--Any person who has requested a hearing in 
accordance with subsection (e) within the time the Secretary has 
prescribed for such a hearing and who is aggrieved by a final order of 
the Secretary under this section may seek review of such order in the 
United States district court for the judicial district in which the 
violation allegedly took place. Review by the district court shall be 
de novo. Such an action shall be barred unless filed within 90 days 
after the Secretary's final order.
    ``(j) Failure To Pay.--If any person fails to pay an assessment of 
a civil penalty under this Act--
            ``(1) after the order making the assessment has become a 
        final order and if such person does not file a petition for 
        judicial review of the order in accordance with subsection (j), 
        or
            ``(2) after a court in an action brought under subsection 
        (j) has entered a final judgment in favor of the Secretary,
the court shall have jurisdiction to award the amount assessed plus 
interest from the date of the expiration of the 90-day period referred 
to in subsection (j). Judgment by the court shall include an order to 
pay.
    ``(k) Relationship to Mineral Leasing Act.--No person shall be 
liable for a civil penalty under subsection (a) or (b) for failure to 
pay any rental for any lease automatically terminated pursuant to 
section 31 of the Mineral Leasing Act.
    ``(l) Tolling of Statutes of Limitation.--(1) Any determination by 
the Secretary or a designee of the Secretary that a person has violated 
subsection (a), (b)(2), or (b)(4) shall toll any applicable statute of 
limitations for all oil and gas leases held or operated by such person, 
until the later of--
            ``(A) the date on which the person corrects the violation 
        and certifies that all violations of a like nature have been 
        corrected for all of the oil and gas leases held or operated by 
        such person; or
            ``(B) the date a final, nonappealable order has been issued 
        by the Secretary or a court of competent jurisdiction.
    ``(2) A person determined by the Secretary or a designee of the 
Secretary to have violated subsection (a), (b)(2), or (b)(4) shall 
maintain all records with respect to the person's oil and gas leases 
until the later of--
            ``(A) the date the Secretary releases the person from the 
        obligation to maintain such records; and
            ``(B) the expiration of the period during which the records 
        must be maintained under section 103(b).
    ``(m) State Sharing of Penalties.--Amounts received by the United 
States in an action brought under section 3730 of title 31, United 
States Code, that arises from any underpayment of royalties owed to the 
United States under any lease shall be treated as royalties paid to the 
United States under that lease for purposes of the mineral leasing laws 
and the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 
et seq.).''.
    (b) Shared Civil Penalties.--Section 206 of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1736) is amended--
            (1) by inserting ``trebled royalties or'' after ``50 per 
        centum of any''; and
            (2) by striking the second sentence.

CHAPTER 2--AMENDMENTS TO FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 
                                  1982

SEC. 7211. AMENDMENTS TO DEFINITIONS.

    Section 3 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1702) is amended--
            (1) in paragraph (20)(A), by striking ``: Provided, That'' 
        and all that follows through ``subject of the judicial 
        proceeding'';
            (2) in paragraph (20)(B), by striking ``(with written 
        notice to the lessee who designated the designee)'';
            (3) in paragraph (23)(A), by striking ``(with written 
        notice to the lessee who designated the designee)'' ;
            (4) by amending paragraph (24) to read as follows:
            ``(24) `designee' means any person who pays, offsets, or 
        credits monies, makes adjustments, requests and receives 
        refunds, or submits reports with respect to payments a lessee 
        must make pursuant to section 102(a);'';
            (5) in paragraph (25)(B), by striking ``(subject to the 
        provisions of section 102(a) of this Act)''; and
            (6) in paragraph (26), by striking ``(with notice to the 
        lessee who designated the designee)''.

SEC. 7212. INTEREST.

    (a) Estimated Payments; Interest on Amount of Underpayment.--
Section 111(j) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1721(j)) is amended by striking ``If the estimated 
payment exceeds the actual royalties due, interest is owed on the 
overpayment.''.
    (b) Overpayments.--Section 111 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1721) is amended by striking 
subsections (h) and (i).
    (c) Effective Date.--The amendments made by this section shall be 
effective one year after the date of enactment of this Act.

SEC. 7213. OBLIGATION PERIOD.

    Section 115(c) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1724(c)) is amended by adding at the end the following:
            ``(3) Adjustments.--In the case of an adjustment under 
        section 111A(a) (30 U.S.C. 1721a(a)) in which a recoupment by 
        the lessee results in an underpayment of an obligation, for 
        purposes of this Act the obligation becomes due on the date the 
        lessee or its designee makes the adjustment.''.

SEC. 7214. TOLLING AGREEMENTS AND SUBPOENAS.

    (a) Tolling Agreements.--Section 115(d)(1) of the Federal Oil and 
Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(1)) is amended by 
striking ``(with notice to the lessee who designated the designee)''.
    (b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by 
striking ``(with notice to the lessee who designated the designee, 
which notice shall not constitute a subpoena to the lessee)''.

SEC. 7215. LIABILITY FOR ROYALTY PAYMENTS.

    Section 102(a) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1712(a)) is amended to read as follows:
    ``(a) In order to increase receipts and achieve effective 
collections of royalty and other payments, a lessee who is required to 
make any royalty or other payment under a lease or under the mineral 
leasing laws, shall make such payments in the time and manner as may be 
specified by the Secretary or the applicable delegated State. Any 
person who pays, offsets or credits monies, makes adjustments, requests 
and receives refunds, or submits reports with respect to payments the 
lessee must make is the lessee's designee under this Act. 
Notwithstanding any other provision of this Act to the contrary, a 
designee shall be liable for any payment obligation of any lessee on 
whose behalf the designee pays royalty under the lease. The person 
owning operating rights in a lease and a person owning legal record 
title in a lease shall be liable for that person's pro rata share of 
payment obligations under the lease.''.

        CHAPTER 3--PUBLIC INTEREST IN THE FEDERAL ENERGY PROGRAM

SEC. 7221. SURFACE OWNER PROTECTION.

    (a) Definitions.--As used in this section--
            (1) the term ``Secretary'' means the Secretary of the 
        Interior;
            (2) the term ``lease'' means a lease issued by the 
        Secretary under the Mineral Leasing Act (30 U.S.C. 181 et 
        seq.);
            (3) the term ``lessee'' means the holder of a lease; and
            (4) the term ``operator'' means any person that is 
        responsible under the terms and conditions of a lease for the 
        operations conducted on leased lands or any portion thereof.
    (b) Post-Lease Surface Use Agreement.--
            (1) In general.--Except as provided in subsection (c), the 
        Secretary may not authorize any operator to conduct exploration 
        and drilling operations on lands with respect to which title to 
        oil and gas resources is held by the United States but title to 
        the surface estate is not held by the United States, until the 
        operator has filed with the Secretary a document, signed by the 
        operator and the surface owner or owners, showing that the 
        operator has secured a written surface use agreement between 
        the operator and the surface owner or owners that meets the 
        requirements of paragraph (2).
            (2) Contents.--The surface use agreement shall provide 
        for--
                    (A) the use of only such portion of the surface 
                estate as is reasonably necessary for exploration and 
                drilling operations based on site-specific conditions;
                    (B) the accommodation of the surface estate owner 
                to the maximum extent practicable, including the 
                location, use, timing, and type of exploration and 
                drilling operations, consistent with the operator's 
                right to develop the oil and gas estate;
                    (C) the reclamation of the site to a condition 
                capable of supporting the uses which such lands were 
                capable of supporting prior to exploration and drilling 
                operations or other uses as agreed to by the operator 
                and the surface owner; and
                    (D) compensation for damages as a result of 
                exploration and drilling operations, including but not 
                limited to--
                            (i) loss of income and increased costs 
                        incurred;
                            (ii) damage to or destruction of personal 
                        property, including crops, forage, and 
                        livestock; and
                            (iii) failure to reclaim the site in 
                        accordance with this subparagraph (C).
            (3) Procedure.--
                    (A) In general.--An operator shall notify the 
                surface estate owner or owners of the operator's desire 
                to conclude an agreement under this section. If the 
                surface estate owner and the operator do not reach an 
                agreement within 90 days after the operator has 
                provided such notice, the matter shall be referred to 
                third party arbitration for resolution within a period 
                of 90 days. The cost of such arbitration shall be the 
                responsibility of the operator.
                    (B) Identification of arbiters.--The Secretary 
                shall identify persons with experience in conducting 
                arbitrations and shall make this information available 
                to operators and surface owners.
                    (C) Referral to identified arbiter.--Referral of a 
                matter for arbitration by a person identified by the 
                Secretary pursuant to subparagraph (B) shall be 
                sufficient to constitute compliance with subparagraph 
                (A).
            (4) Attorneys fees.--If action is taken to enforce or 
        interpret any of the terms and conditions contained in a 
        surface use agreement, the prevailing party shall be reimbursed 
        by the other party for reasonable attorneys fees and actual 
        costs incurred, in addition to any other relief which a court 
        or arbitration panel may grant.
    (c) Authorized Exploration and Drilling Operations.--
            (1) Authorization without surface use agreement.--The 
        Secretary may authorize an operator to conduct exploration and 
        drilling operations on lands covered by subsection (b) in the 
        absence of an agreement with the surface estate owner or 
        owners, if--
                    (A) the Secretary makes a determination in writing 
                that the operator made a good faith attempt to conclude 
                such an agreement, including referral of the matter to 
                arbitration pursuant to subsection (b)(3), but that no 
                agreement was concluded within 90 days after the 
                referral to arbitration;
                    (B) the operator submits a plan of operations that 
                provides for the matters specified in subsection (b)(2) 
                and for compliance with all other applicable 
                requirements of Federal and State law; and
                    (C) the operator posts a bond or other financial 
                assurance in an amount the Secretary determines to be 
                adequate to ensure compensation to the surface estate 
                owner for any damages to the site, in the form of a 
                surety bond, trust fund, letter of credit, government 
                security, certificate of deposit, cash, or equivalent.
            (2) Surface owner participation.--The Secretary shall 
        provide surface estate owners with an opportunity to--
                    (A) comment on plans of operations in advance of a 
                determination of compliance with this section;
                    (B) participate in bond level determinations and 
                bond release proceedings under this subsection;
                    (C) attend an on-site inspection during such 
                determinations and proceedings;
                    (D) file written objections to a proposed bond 
                release; and
                    (E) request and participate in an on-site 
                inspection when they have reason to believe there is a 
                violation of the terms and conditions of a plan of 
                operations.
            (3) Payment of financial guarantee.--A surface estate owner 
        with respect to any land subject to a lease may petition the 
        Secretary for payment of all or any portion of a bond or other 
        financial assurance required under this subsection as 
        compensation for any damages as a result of exploration and 
        drilling operations. Pursuant to such a petition, the Secretary 
        may use such bond or other guarantee to provide compensation to 
        the surface estate owner for such damages.
            (4) Bond release.--Upon request and after inspection and 
        opportunity for surface estate owner review, the Secretary may 
        release the financial assurance required under this subsection 
        if the Secretary determines that exploration and drilling 
        operations have ended and all damages have been fully 
        compensated.
    (d) Surface Owner Notification.--The Secretary shall--
            (1) notify surface estate owners in writing at least 45 
        days in advance of lease sales;
            (2) within ten working days after a lease is issued, notify 
        surface estate owners regarding the identity of the lessee;
            (3) notify surface estate owners in writing within 10 
        working days concerning any subsequent decisions regarding a 
        lease, such as modifying or waiving stipulations and approving 
        rights-of-way; and
            (4) notify surface estate owners within five business days 
        after issuance of a drilling permit under a lease.
    (e) Regulations.--The Secretary shall issue regulations 
implementing this section by not later than 1 year after the date of 
the enactment of this Act.
    (f) Relationship to State Law.--Nothing in this section preempts 
applicable State law or regulation relating to surface owner 
protection.

SEC. 7222. ONSHORE OIL AND GAS RECLAMATION AND BONDING.

    Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by 
adding at the end the following:
    ``(q) Reclamation Requirements.--An operator producing oil or gas 
(including coalbed methane) under a lease issued pursuant to this Act 
shall--
            ``(1) at a minimum restore the land affected to a condition 
        capable of supporting the uses that it was capable of 
        supporting prior to any drilling, or higher or better uses of 
        which there is reasonable likelihood, so long as such use or 
        uses do not present any actual or probable hazard to public 
        health or safety or pose any actual or probable threat of water 
        diminution or pollution, and the permit applicants' declared 
        proposed land use following reclamation is not impractical or 
        unreasonable, inconsistent with applicable land use policies 
        and plans, or involve unreasonable delay in implementation, or 
        is violative of Federal or State law;
            ``(2) ensure that all reclamation efforts proceed in an 
        environmentally sound manner and as contemporaneously as 
        practicable with the oil and gas drilling operations; and
            ``(3) submit with the plan of operations a reclamation plan 
        that describes in detail the methods and practices that will be 
        used to ensure complete and timely restoration of all lands 
        affected by oil and gas operations.
    ``(r) Reclamation Bond or Other Financial Assurances.--An operator 
producing oil or gas (including coalbed methane) under a lease issued 
under this Act shall post a bond or other financial assurances that 
cover the reclamation of that area of land within the permit area upon 
which the operator will initiate and conduct oil and gas drilling and 
reclamation operations within the initial term of the permit. As 
succeeding increments of oil and gas drilling and reclamation 
operations are to be initiated and conducted within the permit area, 
the lessee shall file with the regulatory authority an additional bond 
or bonds or other financial assurances to cover such increments in 
accordance with this section. The amount of the bond or other financial 
assurances required for each bonded area shall depend upon the 
reclamation requirements of the approved permit; shall reflect the 
probable difficulty of reclamation giving consideration to such factors 
as topography, geology of the site, hydrology, and revegetation 
potential; and shall be determined by the Secretary. The amount of the 
bond or other financial assurances shall be sufficient to assure the 
completion of the reclamation plan if the work had to be performed by 
the Secretary in the event of forfeiture.
    ``(s) Regulations.--No later than one year after the date of the 
enactment of this subsection, the Secretary shall promulgate 
regulations to implement the requirements, including for the release of 
bonds or other financial assurances, of subsections (q) and (r).''.

SEC. 7223. PROTECTION OF WATER RESOURCES.

    (a) Mineral Leasing Act Requirements.--Section 17 of the Mineral 
Leasing Act (30 U.S.C. 226) is further amended by adding at the end the 
following:
    ``(t) Water Requirements.--
            ``(1) In general.--An operator producing oil or gas 
        (including coalbed methane) under a lease issued under this Act 
        shall--
                    ``(A) remediate or replace the water supply of a 
                water user who obtains all or part of such user's 
                supply of water for domestic, agricultural, or other 
                purposes from an underground or surface source that has 
                been affected by contamination, diminution, or 
                interruption proximately resulting from drilling 
                operations for such production; and
                    ``(B) comply with all applicable requirements of 
                Federal and State law for discharge of any water 
                produced under the lease.
            ``(2) Water management plan.--An application for a permit 
        to drill submitted pursuant to a lease issued under this Act 
        shall be accompanied by a proposed water management plan 
        including provisions to--
                    ``(A) protect the quantity and quality of surface 
                and ground water systems, both on-site and off-site, 
                from adverse effects of the exploration, development, 
                and reclamation processes or to provide alternative 
                sources of water if such protection cannot be assured;
                    ``(B) protect the rights of present users of water 
                that would be affected by operations under the lease, 
                including the discharge of any water produced in 
                connection with such operations that is not reinjected; 
                and
                    ``(C) identify any agreements with other parties 
                for the beneficial use of produced waters and the steps 
                that will be taken to comply with State and Federal 
                laws related to such use.''.
    (b) Relation to State Law.--Nothing in this chapter or any 
amendment made by this chapter shall--
            (1) be construed as impairing or in any manner affecting 
        any right or jurisdiction of any State with respect to the 
        waters of such State; or
            (2) be construed as limiting, altering, modifying, or 
        amending any of the interstate compacts or equitable 
        apportionment decrees that apportion water among and between 
        States.
    (c) Regulations.--No later than one year after the date of the 
enactment of this Act, the Secretary of the Interior shall promulgate 
regulations to implement this section.
    (d) Intent of Congress.--Nothing in this section shall be construed 
to be intended by Congress as a precedent for oil and gas management on 
State or privately owned land.

SEC. 7224. DUE DILIGENCE FEE.

    (a) Establishment.--The Secretary of the Interior shall, within 180 
days after the date of enactment of this Act, issue regulations to 
establish a fee with respect to Federal onshore lands that are subject 
to a lease for production of oil, natural gas, or coal under which 
production is not occurring. Such fee shall apply with respect to lands 
that are subject to such a lease that is in effect on the date final 
regulations are promulgated under this subsection or that is issued 
thereafter.
    (b) Amount.--The amount of the fee shall be $1 per year for each 
acre of land that is not in production for that year.
    (c) Assessment and Collection.--The Secretary shall assess and 
collect the fee established under this section.
    (d) Deposit and Use.--Amounts received by the United States in the 
form of the fee established under this section shall be available to 
the Secretary of the Interior for use to repair damage to Federal lands 
and resources caused by oil and gas development, in accordance with the 
the documents submitted by the President with the budget submission for 
fiscal year 2008 relating to the Healthy Lands Initiative. Amounts 
received by the United States as fees under this section shall be 
treated as offsetting receipts.

                         CHAPTER 4--WIND ENERGY

SEC. 7231. WIND TURBINE GUIDELINES ADVISORY COMMITTEE.

    (a) In General.--The Secretary of the Interior, within 30 days 
after the date of enactment of this Act, shall convene or utilize an 
existing Wind Turbine Guidelines Advisory Committee to study and make 
recommendations to the Secretary on guidance for avoiding or minimizing 
impacts to wildlife and their habitats related to land-based wind 
energy facilities. The matters assessed by the Committee shall include 
the following:
            (1) The Service Interim Guidance on Avoiding and Minimizing 
        Wildlife Impacts from Wind Turbines of 2003.
            (2) Balancing potential impacts to wildlife with 
        requirements for acquiring the information necessary to assess 
        those impacts prior to selecting sites and designing 
        facilities.
            (3) The scientific tools and procedures best able to assess 
        pre-development risk or benefits provided to wildlife, measure 
        post-development mortality, assess behavioral modification, and 
        provide compensatory mitigation for unavoidable impacts.
            (4) A process for coordinating State, tribal, local, and 
        national review and evaluation of the impacts to wildlife from 
        wind energy consistent with State and Federal laws and 
        international treaties.
            (5) Determination of project size thresholds or impacts 
        below which guidelines may not apply.
            (6) Appropriate timetables for phasing-in guidance.
            (7) Current State actions to avoid and minimize wildlife 
        impacts from wind turbines in consultation with State wildlife 
        agencies.
    (b) Committee Operations.--The Wind Turbine Guidelines Advisory 
Committee shall conduct its activities in accordance with the Federal 
Advisory Committee Act (5 U.S.C. App.). The Secretary is authorized to 
provide such technical analyses and support as is requested by such 
advisory committee.
    (c) Committee Membership.--The membership of the Wind Turbine 
Guidelines Advisory Committee shall not exceed 20 members, and shall be 
appointed by the Secretary of the Interior to achieve balanced 
representation of wind energy development, wildlife conservation, and 
government. The members shall include representatives from the United 
States Fish and Wildlife Service and other Federal agencies, and 
representatives from other interested persons, including States, 
tribes, wind energy development organizations, nongovernmental 
conservation organizations, and local regulatory or licensing 
commissions.
    (d) Report.--The Wind Turbine Advisory Committee shall, within 18 
months after the date of enactment of this Act, submit a report to 
Congress and the Secretary providing recommended guidance for 
developing effective measures to protect wildlife resources and enhance 
potential benefits to wildlife that may be identified.
    (e) Issuance of Guidance.--Not later than 6 months after receiving 
the report of the Wind Turbine Guidelines Advisory Committee under 
subsection (d), the Secretary shall following public notice and comment 
issue final guidance to avoid and minimize impacts to wildlife and 
their habitats related to land-based wind energy facilities. Such 
guidance shall be based upon the findings and recommendations made in 
the report.

SEC. 7232. AUTHORIZATION OF APPROPRIATIONS FOR RESEARCH TO STUDY WIND 
              ENERGY IMPACTS ON WILDLIFE.

    There is authorized to be appropriated to the Secretary of the 
Interior $2,000,000 for each of fiscal years 2008 through 2015 for new 
and ongoing research efforts to evaluate methods for minimizing 
wildlife impacts at wind energy projects and to explore effective 
mitigation methods that may be utilized for that purpose.

SEC. 7233. ENFORCEMENT.

    The Secretary shall enforce the Endangered Species Act of 1973, the 
Migratory Bird Treaty Act, the Bald Eagle Protection Act, the Golden 
Eagle Protection Act, the Marine Mammal Protection Act of 1973, the 
National Environmental Policy Act of 1969, and any other relevant 
Federal law to address adverse wildlife impacts related to wind 
projects. Nothing in this section preempts State enforcement of 
applicable State laws.

SEC. 7234. SAVINGS CLAUSE.

    Nothing in this chapter preempts any provision of State law or 
regulation relating to the siting of wind projects or to consideration 
or review of any environmental impacts of wind projects.

                CHAPTER 5--ENHANCING ENERGY TRANSMISSION

SEC. 7241. POWER MARKETING ADMINISTRATIONS REPORT.

    (a) Analysis.--The Secretary of Energy, acting through the 
Administrator of the Bonneville Area Power Marketing Administration in 
consultation with the Western Area Power Marketing Administration, and 
in coordination with regional transmission entities, shall conduct, or 
participate with such regional transmission entities to conduct, an 
analysis of the existing capacity of transmission systems serving the 
States of California, Oregon, and Washington to determine whether the 
existing capacity is adequate to accommodate and integrate development 
and commercial operation of ocean wave, tidal, and current energy 
projects in State and Federal marine waters adjacent to those States.
    (b) Report.--Based on the analysis conducted under subsection (a), 
the Secretary of Energy shall prepare and provide to the Natural 
Resources Committee of the House of Representatives and the Energy and 
Natural Resources Committee of the Senate, not later than one year 
after the date of enactment of this Act, a report identifying changes 
required, if any, in the capacity of existing transmission systems 
serving the States referred to in subsection (a) in order to reliably 
and efficiently accommodate and integrate generation from commercial 
ocean wave, tidal, and current energy projects in aggregate, escalating 
amounts equal to 2.5, 5, and 10 percent of the current electrical 
energy consumption in those States.
    (c) Activities Nonreimbursable.--Activities carried out under 
subsection (a) or (b) shall be nonreimbursable.
    (d) Existing Procedures and Queuing Not Affected.--Nothing in this 
section supercedes existing procedures and queuing pursuant to the 
appropriate Open Access Transmission Tariffs filed by the 
Administrators of the Bonneville and Western Area Power 
Administrations.

             Subtitle C--Alternative Energy and Efficiency

SEC. 7301. STATE OCEAN AND COASTAL ALTERNATIVE ENERGY PLANNING.

    (a) In General.--The Coastal Zone Management Act of 1972 (16 U.S.C. 
1451 et seq.) is amended by inserting after section 306A the following:

   ``ocean and coastal alternative energy state surveys; alternative 
                energy site identification and planning

    ``Sec. 306B.  (a) Grants to States.--The Secretary may make grants 
to eligible coastal States to support voluntary State efforts to 
initiate and complete surveys of portions of coastal State waters and 
Federal waters adjacent to a State's coastal zone, in consultation with 
the Minerals Management Service, to identify potential areas suitable 
or unsuitable for the exploration, development, and production of 
alternative energy that are consistent with the enforceable policies of 
coastal management plans approved pursuant to section 306(d).
    ``(b) Survey Elements.--Surveys developed with grants under this 
section may include, but not be limited to--
            ``(1) hydrographic and bathymetric surveys;
            ``(2) oceanographic observations and measurements of the 
        physical ocean environment, especially seismically active 
        areas;
            ``(3) identification and characterization of significant or 
        sensitive marine ecosystems or other areas possessing important 
        conservation, recreational, ecological, historic, or aesthetic 
        values;
            ``(4) surveys of existing marine uses in the outer 
        Continental Shelf and identification of potential conflicts;
            ``(5) inventories and surveys of shore locations and 
        infrastructure capable of supporting alternative energy 
        development;
            ``(6) inventories and surveys of offshore locations and 
        infrastructure capable of supporting alternative energy 
        development; and
            ``(7) other actions as may be necessary.
    ``(c) Participation and Cooperation.--To the extent practicable, 
coastal States shall provide opportunity for the participation in 
surveys under this section by relevant Federal agencies, State 
agencies, local governments, regional organizations, port authorities, 
and other interested parties and stakeholders, public and private, that 
is adequate to develop a comprehensive survey.
    ``(d) Guidelines.--The Secretary shall, within 180 days after the 
date of enactment of this section and after consultation with the 
coastal States, publish guidelines for the application for and use of 
grants under this section.
    ``(e) Annual Grants.--For each of fiscal years 2008 through 2011, 
the Secretary may make a grant to a coastal State under this section if 
the coastal State demonstrates to the satisfaction of the Secretary 
that the grant will be used to develop an alternative energy survey 
consistent with the requirements set forth in this section.
    ``(f) Grant Amounts.--The amount of any grant under this section 
shall not exceed $750,000 for any fiscal year.
    ``(g) State Match.--
            ``(1) Before fiscal year 2010.--The Secretary shall not 
        require any State matching fund contribution for grants awarded 
        under this section for any fiscal year before fiscal year 2010.
            ``(2) After fiscal year 2010.--The Secretary shall require 
        a coastal State to provide a matching fund contribution for a 
        grant under this section for surveys of a State's coastal 
        waters, according to--
                    ``(A) a 2-to-1 ratio of Federal-to-State 
                contributions for fiscal year 2010; and
                    ``(B) a 1-to-1 ratio of Federal-to-State 
                contributions for fiscal year 2011.
            ``(3) Limitation.--The Secretary shall not require any 
        matching funds for surveys of Federal waters adjacent to a 
        State's coastal zone.
    ``(h) Secretarial Review.--After an initial grant is made to a 
coastal State under this section, no subsequent grant may be made to 
that coastal State under this section unless the Secretary finds that 
the coastal State is satisfactorily developing its survey.
    ``(i) Limitation on Eligibility.--No coastal State is eligible to 
receive grants under this section for more than 4 fiscal years.
    ``(j) Applicability.--This section and the surveys conducted with 
assistance under this section shall not be construed to convey any new 
authority to any coastal State, or repeal or supersede any existing 
authority of any Federal agency, to regulate the siting, licensing, 
leasing, or permitting of alternative energy facilities in areas of the 
outer Continental Shelf under the administration of the Federal 
Government. Nothing in this section repeals or supersedes any existing 
coastal State authority pursuant to State or Federal law.
    ``(k) Priority.--Any area that is identified as suitable for 
potential alternative energy development under surveys developed with 
assistance under this section shall be given priority consideration by 
Federal agencies for the siting, licensing, leasing, or permitting of 
alternative energy facilities. Any area that is identified as 
unsuitable under surveys developed with assistance under this section 
shall be avoided by Federal agencies to the maximum extent practicable.
    ``(l) Assistance by the Secretary.--The Secretary shall--
            ``(1) under section 307(a) and to the extent practicable, 
        make available to coastal States the resources and capabilities 
        of the National Oceanic and Atmospheric Administration to 
        provide technical assistance to the coastal States to develop 
        surveys under this section; and
            ``(2) encourage other Federal agencies with relevant 
        expertise to participate in providing technical assistance 
        under this subsection.''.
    (b) Authorization of Appropriations.--Section 318(a) of the Coastal 
Zone Management Act of 1972 (16 U.S.C. 1464) is amended--
            (1) in paragraph (1)(C) by striking ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) for grants under section 306B such sums as are 
        necessary; and''.

SEC. 7302. CANAL-SIDE POWER PRODUCTION AT BUREAU OF RECLAMATION 
              PROJECTS.

    (a) Evaluation and Report.--Not later than one year after the date 
of the enactment of this Act, the Secretary of the Interior shall 
complete an evaluation and report to Congress on the potential for 
developing rights-of-way along Bureau of Reclamation canals and 
infrastructure for solar or wind energy production through leasing of 
lands or other means. The report to Congress shall specify--
            (1) location of potential rights-of-way for energy 
        production;
            (2) total acreage available for energy production;
            (3) existing transmission infrastructure at sites;
            (4) estimates of fair market leasing value of potential 
        energy sites; and
            (5) estimate energy development potential at sites.
    (b) Consultation.--In carrying out this section the Secretary of 
the Interior shall consult with persons that would be affected by 
development of rights-of-ways referred to in subsection (a), including 
the beneficiaries of the canal and infrastructure evaluated under that 
subsection.
    (c) Limitations.--Nothing in this section--
            (1) shall be construed to authorize the Bureau of 
        Reclamation or any contractor hired by the Bureau of 
        Reclamation to inventory or access rights-of-way owned or 
        operated and maintained by non-Federal interests, unless such 
        interests provide written permission for such inventory or an 
        agreement or contract governing Federal access is in effect;
            (2) shall be construed to impede accessibility, impair 
        project operations and maintenance, or create additional costs 
        for entities managing the rights-of-way; or
            (3) shall be used as the basis of an increase in project-
        use power or preference power costs that will be borne by the 
        consumer.

SEC. 7303. INCREASING ENERGY EFFICIENCIES FOR WATER DESALINATION.

    The Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public 
Law 104-298) is amended by adding at the end the following new section:

``SEC. 10. RESEARCH ON REVERSE OSMOSIS TECHNOLOGY FOR WATER 
              DESALINATION AND WATER RECYCLING.

    ``(a) Research Program.--The Secretary of the Interior, in 
consultation with the Secretary of Energy, shall implement a program to 
research methods for improving the energy efficiency of reverse osmosis 
technology for water desalination, water contamination, and water 
recycling.
    ``(b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Interior shall submit to 
Congress a report which shall include--
            ``(1) a review of existing and emerging technologies, both 
        domestic and international, that are likely to improve energy 
        efficiency or utilize renewable energy sources at existing and 
        future desalination and recycling facilities; and
            ``(2) an analysis of the economic viability of energy 
        efficiency technologies.''.

SEC. 7304. ESTABLISHING A PILOT PROGRAM FOR THE DEVELOPMENT OF 
              STRATEGIC SOLAR RESERVES ON FEDERAL LANDS.

    (a) Purpose.--The purpose of this section is to establish a pilot 
program for the development of strategic solar reserves on Federal 
lands for the advancement, development, assessment, and installation of 
commercial solar electric energy systems.
    (b) Strategic Solar Reserve Pilot Program.--
            (1) Site selection.--The Secretary of the Interior, in 
        consultation with the Secretary of Energy, the Secretary of 
        Defense, and the Federal Energy Regulatory Commission, States, 
        tribal, or local units of governments, as appropriate, affected 
        utility industries, and other interested persons, shall 
        complete the following:
                    (A) Identify Federal lands under the jurisdiction 
                of the Bureau of Land Management, subject to valid 
                existing rights, that are suitable and feasible for the 
                installation of solar electric energy systems 
                sufficient to create a solar energy reserve of no less 
                than 4 GW and no more than 25 GW.
                    (B) Perform any environmental reviews that may be 
                required to complete the designation of such solar 
                reserves.
                    (C) Incorporate the designated solar reserves into 
                the relevant agency land use and resource management 
                plans or equivalent plans.
                    (D) Identify the needed transmission upgrades to 
                the solar reserves.
            (2) Minimum power of sites.--Each site identified as 
        suitable and feasible for the installation of solar electric 
        energy systems shall be sufficient for the installation of at 
        least 1 GW.
            (3) Lands not included.--The following Federal lands shall 
        not be included within a strategic solar reserve site:
                    (A) Components of the National Landscape 
                Conservation System.
                    (B) Areas of Critical Environmental Concern.
            (4) Implementation of the pilot program for strategic solar 
        reserves.--
                    (A)  In general.--The Secretary of the Interior, in 
                consultation with the Secretary of Energy and following 
                the completion of the requirements under paragraph 
                (1)(B), shall expeditiously implement a strategic solar 
                reserve pilot program in order to issue rights-of-way 
                on land identified under paragraph (1)(A) to produce no 
                less than 4 GW and no more than 25 GW of solar electric 
                power from that land.
                    (B) Criteria for applications.--The Secretary of 
                the Interior, in consultation with the Secretary of 
                Energy, shall establish criteria for approving 
                applications to obtain rights-of-way on land under this 
                paragraph based, in part, on the proposed solar 
                electric energy technologies proposed to be used on 
                such rights-of-way.
                    (C) Variety of technologies.--The Secretary of the 
                Interior, in consultation with the Secretary of Energy, 
                shall provide for a variety of solar electric energy 
                technologies to be used on rights-of-way on land under 
                this paragraph.
                    (D)  Milestones.--The Secretary of the Interior, in 
                consultation with the Secretary of Energy, shall 
                develop milestones for activities on rights-of-way on 
                land under this paragraph to ensure due diligence in 
                the development of such land.
            (5) Environmental compliance.--The Secretary of the 
        Interior shall complete all necessary environmental surveys, 
        compliance, and permitting for rights-of-way pursuant to title 
        V of the Federal Land Policy and Management Act of 1976 for 
        each strategic solar reserve, as expeditiously as possible. 
        Each applicant shall pay all costs of environmental compliance, 
        including when a determination is made that the land that is 
        the subject of the application is not suitable and feasible for 
        installation or the bid is withdrawn following the initiation 
        of such environmental compliance.
            (6) Permits.--The Secretary of the Interior shall ensure 
        that all strategic solar reserve installations pursuant to this 
        section are permitted using an expedited permitting process. 
        The Secretary shall, in consultation with the Secretary of 
        Energy, complete the preparation of a Programmatic 
        Environmental Impact Statement by the Departments of Energy and 
        the Interior for purposes of this section.
            (7) Rental fee; right-of-way term.--
                    (A) Rental fee.--The rental fee for each strategic 
                solar reserve right-of-way under this subsection shall 
                be in the amount of $300 per acre per year for the 
                initial 10-year period, except that the rental fee 
                shall be phased-in for a right-of-way during the 
                initial 3 years after the signing of the right-of-way 
                authorization. For the first year the rental fee shall 
                be 25 percent of that amount. For the second year the 
                rental fee shall be 50 percent of that amount. For the 
                third year and each year thereafter the fee shall be 
                100 percent of that amount, except that the rental fee 
                after the initial 10-year period shall be adjusted by 
                the Secretary of the Interior according to the Gross 
                Domestic Product Implicit Price Deflator each year for 
                the remainder of the term of the right-of-way 
                authorization. The rental fee shall be paid in annual 
                payments commencing on the day the right-of-way 
                authorization is signed. The rental fee established by 
                this paragraph shall apply to all solar electric 
                projects that have pending applications with the Bureau 
                of Land Management as of June 1, 2007.
                    (B) Term.--Each right-of-way authorization shall be 
                effective for an initial term of 30 years. Such term 
                may be extended by the Secretary of the Interior for 
                periods of 10 years.
            (8) Report to congress.--The Secretary of the Interior, in 
        consultation with the Secretary of Energy, shall submit a 
        report to Congress on the findings of the pilot program--
                    (A) not later than 3 years after the installation 
                of the first facility pursuant to this section; and
                    (B) 10 years after the installation of the first 
                facility pursuant to this section.
    (c) Buy American Act.--Beginning 3 years after the date of 
enactment of this Act, any equipment used on lands included within a 
strategic solar reserve site must be American-made, as that term is 
used in the Buy American Act (41 U.S.C. 10a et seq.).
    (d) Sunset.--Except as provided in subsection (b)(7), the 
authorities contained in this section shall expire 10 years after the 
date of the enactment of this Act.

SEC. 7305. OTEC REGULATIONS.

    The Administrator of the National Oceanic and Atmospheric 
Administration shall, within two years after the date of enactment of 
this Act, issue regulations necessary to implement the Administrator's 
authority to license offshore thermal energy conversion facilities 
under the Ocean Thermal Energy Conversion Research, Development, and 
Demonstration Act (42 U.S.C. 9001 et seq.).

SEC. 7306. BIOMASS UTILIZATION PILOT PROGRAM.

    (a) Replacement of Current Grant Program.--Section 210 of the 
Energy Policy Act of 2005 (42 U.S.C. 15855) is amended to read as 
follows:

``SEC. 210. BIOMASS UTILIZATION PILOT PROGRAM.

    ``(a) Findings.--Congress finds the following:
            ``(1) The supply of woody biomass for energy production is 
        directly linked to forest management planning to a degree far 
        greater than in the case of other types of energy development.
            ``(2) As a consequence of this linkage, the process of 
        developing and evaluating appropriate technologies and 
        facilities for woody biomass energy and utilization must be 
        integrated with long-term forest management planning processes, 
        particularly in situations where Federal lands dominate the 
        forested landscape.
    ``(b) Biomass Definition for Federal Forest Lands.--In this 
section, with respect to organic material removed from National Forest 
System lands or from public lands administered by the Secretary of the 
Interior, the term `biomass' covers only organic material from--
            ``(1) ecological forest restoration;
            ``(2) small-diameter byproducts of hazardous fuels 
        treatments;
            ``(3) pre-commercial thinnings;
            ``(4) brush;
            ``(5) mill residues; and
            ``(6) slash.
    ``(c) Pilot Program.--The Secretary of Agriculture and the 
Secretary of the Interior shall establish a pilot program, to be known 
as the `Biomass Utilization Pilot Program', involving 10 different 
forest types on Federal lands, under which the Secretary concerned will 
provide technical assistance and grants to persons to support the 
following biomass-related activities:
            ``(1) The development of biomass utilization infrastructure 
        to support hazardous fuel reduction and ecological forest 
        restoration.
            ``(2) The research and implementation of integrated 
        facilities that seek to utilize woody biomass for its highest 
        and best uses, with particular emphasis on projects that are 
        linked to implementing community wildfire protection plans, 
        ecological forest restoration, and economic development in 
        rural communities.
            ``(3) The testing of multiple technologies and approaches 
        to biomass utilization for energy, with emphasis on improving 
        energy efficiency, developing thermal applications and 
        distributed heat, biofuels, and achieving cleaner emissions 
        including through combustion with other fuels, as well as other 
        value-added uses.
    ``(d) Biomass Supply Study.--Prior to the development of any 
biomass utilization pilot projects, the Secretary concerned shall 
develop a study to determine the long-term, ecologically sustainable, 
biomass supply available in the pilot program area. The study shall 
incorporate results form coordinated resource offering protocol (CROP) 
studies. The study shall also analyze the long-term availability of 
biomass materials within a reasonable transportation distance. The 
biomass supply studies shall be developed through a collaborative 
approach, as evidenced by the broad involvement, analysis, and 
agreement of interested persons, including local governments, energy 
developers, conservationists, and land management agencies. The results 
of the biomass supply study shall be a basis for determining the 
project scale, as outlined in subsection (g).
    ``(e) Exclusion of Certain Federal Land.--The following Federal 
lands may not be included within a pilot project site:
            ``(1) Federal land containing old-growth forest or late-
        successional forest, unless the Secretary concerned determines 
        that the pilot project on such land is appropriate for the 
        applicable forest type and maximizes and enhances the retention 
        of late-successional and large- and old-growth trees, late-
        successional and old-growth forest structure, and late-
        successional and old-growth forest composition.
            ``(2) Federal land on which the removal of vegetation is 
        prohibited, including components of the National Wilderness 
        Preservation System.
            ``(3) Wilderness Study Areas.
            ``(4) Inventoried roadless areas.
            ``(5) Components of the National Landscape Conservation 
        System.
            ``(6) National Monuments.
    ``(f) Multiple Projects.--In conducting the pilot program, the 
Secretary concerned shall include a variety of projects involving--
            ``(1) innovations in facilities of various sizes and 
        processing techniques; and
            ``(2) the full spectrum of woody biomass producing regions 
        of the United States.
    ``(g) Selection Criteria and Project Scale.--In selecting the 
projects to be conducted under the pilot program, and the appropriate 
scale of projects, the Secretary concerned shall consider criteria that 
evaluate existing economic, ecological, and social conditions, focusing 
on opportunities such as workforce training, job creation, ecosystem 
health, reducing energy costs, and facilitating the production of 
alternative energy fuels. The agreement on the scale of a project shall 
be reached through a collaborative approach, as evidenced by the broad 
involvement, analysis, and agreement of interested persons, including 
local governments, energy developers, conservationists, and land 
management agencies. In selecting the appropriate scale of projects to 
be conducted under the pilot program, the Secretary concerned shall 
also consider the results of the supply study as outlined in subsection 
(d).
    ``(h) Monitoring and Reporting Requirements.--As part of the pilot 
program, the Secretary concerned shall impose monitoring and reporting 
requirements to ensure that the ecological, social, and economic 
effects of the projects conducted under the pilot program are being 
monitored and that the accomplishments, challenges, and lessons of each 
project are recorded and reported.
    ``(i) Other Definitions.--In this section:
            ``(1) Highest and best use.--The term `highest and best 
        use', with regard to biomass, means--
                    ``(A) creating from raw materials those products 
                and those biomass uses that will achieve the highest 
                market value; and
                    ``(B) yielding a wide range of existing and 
                innovative products and biomass uses that create new 
                markets, stimulate existing ones, and improve rural 
                economies, maintains or improves ecosystem integrity, 
                while also supporting traditional biomass energy 
                generation.
            ``(2) Pilot program.--The term `pilot program' means the 
        Biomass Utilization Pilot Program established pursuant to this 
        section.
            ``(3) Secretary concerned.--The term `Secretary concerned' 
        means the Secretary of Agriculture, with respect to National 
        Forest System lands, and the Secretary of the Interior, with 
        respect to public lands administered by the Secretary of the 
        Interior.
            ``(4) Community wildfire protection plan.--The term 
        `community wildfire protection plan' has the meaning given that 
        term in section 101(3) of the Healthy Forest Restoration Act of 
        2003 (16 U.S.C. 6511(3)), which is further described by the 
        Western Governors Association in the document entitled 
        `Preparing a Community Wildfire Protection Plan: A Handbook for 
        Wildland-Interface Communities' and dated March 2004.
            ``(5) Federal land.--The term `Federal land' means--
                    ``(A) land of the National Forest System (as 
                defined in section 11(a) of the Forest and Rangeland 
                Renewable Resources Planning Act of 1974 (16 U.S.C. 
                1609(a)) administered by the Secretary of Agriculture, 
                acting through the Chief of the Forest Service; and
                    ``(B) public lands (as defined in section 103 of 
                the Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1702)), the surface of which is administered by 
                the Secretary of the Interior, acting through the 
                Director of the Bureau of Land Management.
            ``(6) Inventoried roadless area.--The term `Inventoried 
        roadless area' means one of the areas identified in the set of 
        inventoried roadless areas maps contained in the Forest Service 
        Roadless Areas Conservation, Final Environmental Impact 
        Statement, Volume 2, dated November 2000.
    ``(j) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out the pilot 
program.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by striking the item relating to section 210 and 
inserting the following new item:

``Sec. 210. Biomass utilization pilot program.''.

SEC. 7307. PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT.

    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 (42 
U.S.C. 4332), 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.

        Subtitle D--Carbon Capture and Climate Change Mitigation

             CHAPTER 1--GEOLOGICAL SEQUESTRATION ASSESSMENT

SEC. 7401. SHORT TITLE.

    This chapter may be cited as the ``National Carbon Dioxide Storage 
Capacity Assessment Act of 2007''.

SEC. 7402. NATIONAL ASSESSMENT.

    (a) Definitions.--In this section:
            (1) Assessment.--The term ``assessment'' means the national 
        assessment of capacity for carbon dioxide completed under 
        subsection (f).
            (2) Capacity.--The term ``capacity'' means the portion of a 
        storage formation that can retain carbon dioxide in accordance 
        with the requirements (including physical, geological, and 
        economic requirements) established under the methodology 
        developed under subsection (b).
            (3) Engineered hazard.--The term ``engineered hazard'' 
        includes the location and completion history of any well that 
        could affect potential storage.
            (4) Risk.--The term ``risk'' includes any risk posed by 
        geomechanical, geochemical, hydrogeological, structural, and 
        engineered hazards.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the United 
        States Geological Survey.
            (6) Storage formation.--The term ``storage formation'' 
        means a deep saline formation, unmineable coal seam, or oil or 
        gas reservoir that is capable of accommodating a volume of 
        industrial carbon dioxide.
    (b) Methodology.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop a methodology for conducting 
an assessment under subsection (f), taking into consideration--
            (1) the geographical extent of all potential storage 
        formations in all States;
            (2) the capacity of the potential storage formations;
            (3) the injectivity of the potential storage formations;
            (4) an estimate of potential volumes of oil and gas 
        recoverable by injection and storage of industrial carbon 
        dioxide in potential storage formations;
            (5) the risk associated with the potential storage 
        formations; and
            (6) the Carbon Sequestration Atlas of the United States and 
        Canada that was completed by the Department of Energy in April 
        2006.
    (c) Coordination.--
            (1) Federal coordination.--
                    (A) Consultation.--The Secretary shall consult with 
                the Secretary of Energy and the Administrator of the 
                Environmental Protection Agency on issues of data 
                sharing, format, development of the methodology, and 
                content of the assessment required under this section 
                to ensure the maximum usefulness and success of the 
                assessment.
                    (B) Cooperation.--The Secretary of Energy and the 
                Administrator shall cooperate with the Secretary to 
                ensure, to the maximum extent practicable, the 
                usefulness and success of the assessment.
            (2) State coordination.--The Secretary shall consult with 
        State geological surveys and other relevant entities to ensure, 
        to the maximum extent practicable, the usefulness and success 
        of the assessment.
    (d) External Review and Publication.--On completion of the 
methodology under subsection (b), the Secretary shall--
            (1) publish the methodology and solicit comments from the 
        public and the heads of affected Federal and State agencies;
            (2) establish a panel of individuals with expertise in the 
        matters described in paragraphs (1) through (5) of subsection 
        (b) composed, as appropriate, of representatives of Federal 
        agencies, institutions of higher education, nongovernmental 
        organizations, State organizations, industry, and international 
        geoscience organizations to review the methodology and comments 
        received under paragraph (1); and
            (3) on completion of the review under paragraph (2), 
        publish in the Federal Register the revised final methodology.
    (e) Periodic Updates.--The methodology developed under this section 
shall be updated periodically (including at least once every 5 years) 
to incorporate new data as the data becomes available.
    (f) National Assessment.--
            (1) In general.--Not later than 2 years after the date of 
        publication of the methodology under subsection (d)(1), the 
        Secretary, in consultation with the Secretary of Energy and 
        State geological surveys, shall complete a national assessment 
        of capacity for carbon dioxide in accordance with the 
        methodology.
            (2) Geological verification.--As part of the assessment 
        under this subsection, the Secretary shall carry out a drilling 
        program to supplement the geological data relevant to 
        determining storage capacity of carbon dioxide in geological 
        storage formations, including--
                    (A) well log data;
                    (B) core data; and
                    (C) fluid sample data.
            (3) Partnership with other drilling programs.--As part of 
        the drilling program under paragraph (2), the Secretary shall 
        enter, as appropriate, into partnerships with other entities to 
        collect and integrate data from other drilling programs 
        relevant to the storage of carbon dioxide in geologic 
        formations.
            (4) Incorporation into natcarb.--
                    (A) In general.--On completion of the assessment, 
                the Secretary of Energy shall incorporate the results 
                of the assessment using the NatCarb database, to the 
                maximum extent practicable.
                    (B) Ranking.--The database shall include the data 
                necessary to rank potential storage sites for capacity 
                and risk, across the United States, within each State, 
                by formation, and within each basin.
            (5) Report.--Not later than 180 days after the date on 
        which the assessment is completed, the Secretary shall submit 
        to the Committee on Natural Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate a report describing the findings under 
        the assessment.
            (6) Periodic updates.--The national assessment developed 
        under this section shall be updated periodically (including at 
        least once every 5 years) to support public and private sector 
        decisionmaking.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $30,000,000 for the period of 
fiscal years 2008 through 2012.

            CHAPTER 2--TERRESTRIAL SEQUESTRATION ASSESSMENT

SEC. 7421. REQUIREMENT TO CONDUCT AN ASSESSMENT.

    (a) In General.--The Secretary of the Interior, acting through the 
United States Geological Survey, shall--
            (1) conduct an assessment of the amount of carbon stored in 
        terrestrial, aquatic, and coastal ecosystems (including 
        estuaries);
            (2) determine the processes that control the flux of carbon 
        in and out of each ecosystem;
            (3) estimate the potential for increasing carbon 
        sequestration in natural systems through management measures or 
        restoration activities in each ecosystem; and
            (4) develop near-term and long-term adaptation strategies 
        that can be employed to enhance the sequestration of carbon in 
        each ecosystem.
    (b) Use of Native Plant Species.--In developing management 
measures, restoration activities, or adaptation strategies, the 
Secretary shall emphasize the use of native plant species for each 
ecosystem.
    (c) Consultation.--The Secretary shall develop the methodology and 
conduct the assessment in consultation with the Secretary of Energy, 
the Administrator of the National Oceanic and Atmospheric 
Administration, and the heads of other relevant agencies.

SEC. 7422. METHODOLOGY.

    (a) In General.--Within one year after the date of enactment of 
this Act, the Secretary shall develop a methodology for conducting the 
assessment.
    (b) Publication of Proposed Methodology; Comment.--Upon completion 
of a proposed methodology, the Secretary shall publish the proposed 
methodology and solicit comments from the public and heads of affected 
Federal and State agencies for 60 days before publishing a final 
methodology.

SEC. 7423. COMPLETION OF ASSESSMENT AND REPORT.

    The Secretary shall--
            (1) complete the national assessment within 3 years after 
        publication of the final methodology under section 7422; and
            (2) submit a report describing the results of the 
        assessment to the House Committee on Natural Resources and the 
        Senate Committee on Energy and Natural Resources within 180 
        days after the assessment is completed.

SEC. 7424. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this chapter 
$15,000,000 for the period of fiscal years 2008 through 2012.

                  CHAPTER 3--SEQUESTRATION ACTIVITIES

SEC. 7431. CARBON DIOXIDE STORAGE INVENTORY.

    Section 354 of the Energy Policy Act of 2005 (42 U.S.C. 15910) is 
amended by redesignating subsection (d) as subsection (e), and by 
inserting after subsection (c) the following:
    ``(d) Records and Inventory.--The Secretary of the Interior, acting 
through the Bureau of Land Management, shall maintain records on and an 
inventory of the amount of carbon dioxide stored from Federal energy 
leases.''.

SEC. 7432. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON FEDERAL 
              LANDS.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of the Interior shall submit to the Committee on Natural 
Resources of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate a report on a recommended 
regulatory and certification framework for conducting geological carbon 
sequestration activities on Federal lands. The Secretary shall identify 
a lead agency within the Department of the Interior to develop this 
framework. One of the goals of the framework shall be to identify what 
actions need to be taken in order to allow for commercial-scale 
geological carbon sequestration activities to be undertaken on Federal 
lands as expeditiously as possible.

           CHAPTER 4--NATURAL RESOURCES AND WILDLIFE PROGRAMS

     Subchapter A--Natural Resources Management and Climate Change

SEC. 7441. NATURAL RESOURCES MANAGEMENT COUNCIL ON CLIMATE CHANGE.

    (a) Establishment.--The Secretary of the Interior shall establish a 
National Resources Management Council on Climate Change to address the 
impacts of climate change on Federal lands, the ocean environment, and 
the Federal water infrastructure. The Council shall include the head of 
each of the following agencies:
            (1) The Bureau of Land Management.
            (2) The National Park Service.
            (3) United States Geological Survey.
            (4) The United States Fish and Wildlife Service.
            (5) The Forest Service.
            (6) The Bureau of Reclamation.
            (7) The Council on Environmental Quality.
            (8) The Minerals Management Service.
            (9) The Office of Surface Mining Reclamation and 
        Enforcement.
    (b) Plan.--Not later than one year after the date of the enactment 
of this Act, the Secretary of the Interior shall submit a plan to 
Congress describing what the agencies listed in subsection (a) shall do 
both individually and cooperatively to accomplish the following:
            (1) Working in cooperation with the United States 
        Geological Survey, develop an interagency inventory and 
        Geographic Information System database of United States 
        ecosystems, water supplies, and water infrastructure vulnerable 
        to climate change.
            (2) Manage land, water, and ocean resources in a manner 
        that takes into account projected climate change impacts, 
        including but not limited to, prolonged periods of drought and 
        changing hydrology.
            (3) Develop consistent protocols to incorporate climate 
        change impacts in land and water management decisions across 
        land and water resources under the jurisdiction of those 
        agencies listed in subsection (a).
            (4) Incorporate the most current, peer-reviewed science on 
        climate change and the economic, social, and ecological impacts 
        of climate change into the decision making process of those 
        agencies listed in subsection (a).
    (c) Coordination.--The activities of the Natural Resources 
Management Council on Climate Change shall be coordinated with the 
activities of the United States Global Change Research Program.

        Subchapter B--National Policy and Strategy for Wildlife

SEC. 7451. SHORT TITLE.

    This subchapter may be cited as the ``Global Warming Wildlife 
Survival Act''.

SEC. 7452. NATIONAL POLICY ON WILDLIFE AND GLOBAL WARMING.

    It is the policy of the Federal Government, in cooperation with 
State, tribal, and affected local governments, other concerned public 
and private organizations, landowners, and citizens to use all 
practicable means and measures--
            (1) to assist wildlife populations and their habitats in 
        adapting to and surviving the effects of global warming; and
            (2) to ensure the persistence and resilience of the 
        wildlife of the United States, together with its habitat, as an 
        essential part of our Nation's culture, landscape, and natural 
        resources.

SEC. 7453. DEFINITIONS.

    In this chapter:
            (1) Ecological processes.--The term ``ecological 
        processes'' means the biological, chemical, and physical 
        interactions between the biotic and abiotic components of 
        ecosystems, including nutrient cycling, pollination, predator-
        prey relationships, soil formation, gene flow, hydrologic 
        cycling, decomposition, and disturbance regimes such as fire 
        and flooding.
            (2) Habitat linkages.--The term ``habitat linkages'' means 
        areas that connect wildlife habitat or potential wildlife 
        habitat, and that facilitate the ability of wildlife to move 
        within a landscape in response to the effects of global 
        warming.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (4) Wildlife.--The term ``wildlife'' means--
                    (A) any species of wild, free-ranging fauna, 
                including fish and other aquatic species; and
                    (B) any fauna in a captive breeding program the 
                object of which is to reintroduce individuals of a 
                depleted indigenous species into previously occupied 
                range.
            (5) Habitat.--The term ``habitat'' means the physical, 
        chemical, and biological properties that are used by wildlife 
        for growth, reproduction, and survival, including aquatic and 
        terrestrial plant communities, food, water, cover, and space, 
        on a tract of land, in a body of water, or in an area or 
        region.

SEC. 7454. NATIONAL STRATEGY.

    (a) Requirement.--
            (1) In general.--The Secretary shall, within two years 
        after the date of the enactment of this Act, on the basis of 
        the best available science as provided by the science advisory 
        board under section 7455, and in cooperation with State fish 
        and wildlife agencies and Indian tribes, promulgate a national 
        strategy for assisting wildlife populations and their habitats 
        in adapting to the impacts of global warming.
            (2) Consultation and comment.--In developing the national 
        strategy, the Secretary shall--
                    (A) consult with the Secretary of Agriculture, the 
                Secretary of Commerce, the Administrator of the 
                Environmental Protection Agency, local governments, 
                conservation organizations, scientists, and other 
                interested stakeholders; and
                    (B) provide opportunity for public comment.
    (b) Contents.--
            (1) In general.--The Secretary shall include in the 
        national strategy prioritized goals and measures to--
                    (A) identify and monitor wildlife populations, 
                including game species, likely to be adversely affected 
                by global warming, with particular emphasis on wildlife 
                populations at greatest need for conservation;
                    (B) identify and monitor coastal, marine, 
                terrestrial, and freshwater habitat at greatest risk of 
                being damaged by global warming;
                    (C) assist species in adapting to the impacts of 
                global warming;
                    (D) protect, acquire, and restore wildlife habitat 
                to build resilience to global warming;
                    (E) provide habitat linkages and corridors to 
                facilitate wildlife movements in response to global 
                warming;
                    (F) restore and protect ecological processes that 
                sustain wildlife populations vulnerable to global 
                warming; and
                    (G) incorporate consideration of climate change in, 
                and integrate climate change adaptation strategies for 
                wildlife and its habitat into, the planning and 
                management of Federal lands administered by the 
                Department of the Interior and lands administered by 
                the Forest Service.
            (2) Coordination with other plans.--In developing the 
        national strategy, the Secretary shall to the maximum extent 
        practicable--
                    (A) take into consideration research and 
                information in State comprehensive wildlife 
                conservation plans, the North American Waterfowl 
                Management Plan, the National Fish Habitat Action Plan, 
                and other relevant plans; and
                    (B) coordinate and integrate, to the extent 
                consistent with the policy set forth in section 7452, 
                the goals and measures identified in the national 
                strategy with goals and measures identified in such 
                plans.
    (c) Revision.--The Secretary shall revise the national strategy not 
later than five years after its initial promulgation, and not later 
than every ten years thereafter, to reflect new information on the 
impacts of global warming on wildlife and its habitat and advances in 
the development of strategies for adapting to or mitigating for such 
impacts.
    (d) Implementation.--
            (1) Implementation on federal land systems.--To achieve the 
        goals of the national strategy and to implement measures for 
        the conservation of wildlife and its habitat identified in the 
        national strategy--
                    (A) the Secretary of the Interior shall exercise 
                the authority of such Secretary under this title and 
                other laws within the Secretary's jurisdiction 
                pertaining to the administration of lands; and
                    (B) the Secretary of Agriculture shall exercise the 
                authority of such Secretary under this title and other 
                laws within the Secretary's jurisdiction pertaining to 
                the administration of lands.
            (2) Wildlife conservation programs.--To the maximum extent 
        practicable, the Secretary, the Secretary of Agriculture, and 
        the Secretary of Commerce shall utilize their authorities under 
        other laws to achieve the goals of the national strategy.
    (e) Limitation on Effect.--Nothing in this section creates new 
authority or expands existing authority for the Secretary to regulate 
the uses of private property.

SEC. 7455. ADVISORY BOARD.

    (a) Science Advisory Board.--
            (1) In general.--The Secretary shall establish and appoint 
        the members of a science advisory board comprised of not less 
        than 10 and not more than 20 members recommended by the 
        President of the National Academy of Sciences with expertise in 
        wildlife biology, ecology, climate change and other relevant 
        disciplines. The director of the National Global Warming and 
        Wildlife Science Center established under subsection (b) shall 
        be an ex officio member of the science advisory board.
            (2) Functions.--The science advisory board shall--
                    (A) provide scientific and technical advice and 
                recommendations to the Secretary on the impacts of 
                global warming on wildlife and its habitat, areas of 
                habitat of particular importance for the conservation 
                of wildlife populations affected by global warming, and 
                strategies and mechanisms to assist wildlife 
                populations and their habitats in adapting to the 
                impacts of global warming in the management of Federal 
                lands and in other Federal programs for wildlife 
                conservation;
                    (B) advise the National Global Warming and Wildlife 
                Science Center established under subsection (b) and 
                review the quality of the research programs of the 
                Center; and
                    (C) advise the Secretary regarding the best science 
                available for purposes of developing and revising the 
                national strategy under section 7454.
            (3) Public availability.--The advice and recommendations of 
        the science advisory board shall be available to the public.
    (b) National Global Warming and Wildlife Science Center.--
            (1) In general.--The Secretary shall establish the National 
        Global Warming and Wildlife Science Center within the United 
        States Geological Survey.
            (2) Functions.--The National Global Warming and Wildlife 
        Science Center shall--
                    (A) conduct scientific research on national issues 
                related to the impacts of global warming on wildlife 
                and its habitat and mechanisms for adaptation to, 
                mitigation of, or prevention of such impacts;
                    (B) consult with and advise Federal land management 
                agencies and Federal wildlife agencies regarding the 
                impacts of global warming on wildlife and its habitat 
                and mechanisms for adaptation to or mitigation of such 
                impacts, and the incorporation of information regarding 
                such impacts and the adoption of mechanisms for 
                adaptation or mitigation of such impacts in the 
                management and planning for Federal lands and in the 
                administration of Federal wildlife programs; and
                    (C) consult, and to the maximum extent practicable, 
                collaborate with State and local agencies, 
                universities, and other public and private entities 
                regarding their research, monitoring, and other efforts 
                to address the impacts of global warming on wildlife 
                and its habitat.
            (3) Integration with other federal activities.--The 
        Secretary, the Secretary of Agriculture, and the Secretary of 
        Commerce shall ensure that research and other activities 
        carried out pursuant to this section are integrated with 
        climate change program research and activities carried out 
        pursuant to other Federal law.
    (c) Detection of Changes.--The Secretary, the Secretary of 
Agriculture, and the Secretary of Commerce shall each exercise 
authorities under other laws to carry out programs to detect changes in 
wildlife abundance, distribution, and behavior related to global 
warming, including--
            (1) conducting species inventories on Federal lands and in 
        marine areas within the exclusive economic zone of the United 
        States; and
            (2) establishing and implementing robust, coordinated 
        monitoring programs.

SEC. 7456. AUTHORIZATION OF APPROPRIATIONS.

    (a) Implementation of National Strategy.--Of the amounts 
appropriated to carry out this subchapter for each fiscal year--
            (1) 45 percent are authorized to be made available to 
        Federal agencies to develop and implement the national strategy 
        promulgated under section 7454 in the administration of the 
        Federal land systems, of which--
                    (A) 35 percent shall be allocated to the Department 
                of the Interior to--
                            (i) operate the National Global Warming and 
                        Wildlife Science Center established under 
                        section 7455; and
                            (ii) carry out the policy set forth in 
                        section 7452 and implement the national 
                        strategy in the administration of the National 
                        Park System the National Wildlife Refuge 
                        System, and on the Bureau of Land Management's 
                        public lands; and
                    (B) 10 percent shall be allocated to the Department 
                of Agriculture to carry out the policy set forth in 
                section 7452 and implement the national strategy in the 
                administration of the National Forest System;
            (2) 25 percent are authorized to be made available to 
        Federal agencies to carry out the policy set forth in section 
        7452 and to implement the national strategy through fish and 
        wildlife programs, other than for the operation and maintenance 
        of Federal lands, of which--
                    (A) 10 percent shall be allocated to the Department 
                of the Interior to fund endangered species, migratory 
                bird, and other fish and wildlife programs administered 
                by the United States Fish and Wildlife Service, other 
                than operations and maintenance of the national 
                wildlife refuges; and
                    (B) 15 percent shall be allocated to the Department 
                of the Interior for implementation of cooperative grant 
                programs benefitting wildlife including the Cooperative 
                Endangered Species Fund, Private Stewardship Grants, 
                the North American Wetlands Conservation Act, the 
                Multinational Species Conservation Fund, the 
                Neotropical Migratory Bird Conservation Fund, and the 
                National Fish Habitat Action Plan, and used for 
                activities that assist wildlife and its habitat in 
                adapting to the impacts of global warming; and
            (3) 30 percent are authorized to be made available for 
        grants to States and Indian tribes through the State and tribal 
        wildlife grants program authorized under section 7461, to--
                    (A) carry out activities that assist wildlife and 
                its habitat in adapting to the impacts of global 
                warming in accordance with State comprehensive wildlife 
                conservation plans developed and approved under that 
                program; and
                    (B) revise or supplement existing State 
                comprehensive wildlife conservation plans as necessary 
                to include specific strategies for assisting wildlife 
                and its habitat in adapting to the impacts of global 
                warming.
    (b) Availability.--
            (1) In general.--Funding is authorized to be made available 
        to States and Indian tribes pursuant to this section subject to 
        paragraphs (2) and (3).
            (2) Initial 5-year period.--During the 5-year period 
        beginning on the effective date of this title, a State shall 
        not be eligible to receive such funding unless the head of the 
        State's wildlife agency has--
                    (A) approved, and provided to the Secretary, an 
                explicit strategy to assist wildlife populations in 
                adapting to the impacts of global warming; and
                    (B) incorporated such strategy as a supplement to 
                the State's comprehensive wildlife conservation plan.
            (3) Subsequent period.--After such 5-year period, a State 
        shall not be eligible to receive such funding unless the State 
        has submitted to the Secretary, and the Secretary has approved, 
        a revision to its comprehensive wildlife conservation plan 
        that--
                    (A) describes the impacts of global warming on the 
                diversity and health of the State's wildlife 
                populations and their habitat;
                    (B) describes and prioritizes proposed conservation 
                actions to assist wildlife populations in adapting to 
                such impacts;
                    (C) establishes programs for monitoring the impacts 
                of global warming on wildlife populations and their 
                habitats; and
                    (D) establishes methods for assessing the 
                effectiveness of conservation actions taken to assist 
                wildlife populations in adapting to such impacts and 
                for adapting such actions to respond appropriately to 
                new information or changing conditions.
    (c) Intent of Congress.--It is the intent of Congress that funding 
provided to Federal agencies and States pursuant to this subchapter 
supplement, and not replace, existing sources of funding for wildlife 
conservation.

         Subchapter C--State and Tribal Wildlife Grants Program

SEC. 7461. STATE AND TRIBAL WILDLIFE GRANTS PROGRAM.

    (a) Authorization of Program.--There is authorized to be 
established a State and Tribal Wildlife Grants Program to be 
administered by the Secretary of the Interior and to provide wildlife 
conservation grants to States and to the District of Columbia, Puerto 
Rico, Guam, the United States Virgin Islands, the Northern Mariana 
Islands, American Samoa, and federally recognized Indian tribes for the 
planning, development, and implementation of programs for the benefit 
of wildlife and their habitat, including species that are not hunted or 
fished.
    (b) Allocation of Funds.--
            (1) In general.--Of the amounts made available to carry out 
        this section for each fiscal year--
                    (A) 10 percent shall be for a competitive grant 
                program for Indian tribes that are not subject to the 
                remaining provisions of this section;
                    (B) of the amounts remaining after the application 
                of subparagraph (A), and after the deduction of the 
                Secretary's administrative expenses to carry out this 
                section--
                            (i) not more than one-half of 1 percent 
                        shall be allocated to each of the District of 
                        Columbia and to the Common wealth of Puerto 
                        Rico; and
                            (ii) not more than one-fourth of 1 percent 
                        shall be allocated to each of Guam, American 
                        Samoa, the United States Virgin Islands, and 
                        the Commonwealth of the Northern Mariana 
                        Islands; and
                    (C) of the amount remaining after the application 
                of subparagraphs (B) and (C), the secretary shall 
                apportion among the States--
                            (i) one-third based on the ratio that the 
                        land area of each State bears to the total land 
                        area of all States; and
                            (ii) two-thirds based on the ratio that the 
                        population of each State bears to the total 
                        population of all States.
            (2) Adjustments.--The amounts apportioned under 
        subparagraph (C) of paragraph (1) for a fiscal year shall be 
        adjusted equitably so that no State is apportioned under such 
        subparagraph a sum that is--
                    (A) less than 1 percent of the amount available for 
                apportionment under that subparagraph that fiscal year; 
                or
                    (B) more than 5 percent of such amount.
    (c) Cost Sharing.--
            (1) Plan development grants.--The Federal share of the 
        costs of developing or revising a comprehensive wildlife 
        conservation plan shall not exceed 75 percent of the total 
        costs of developing or revising such plan.
            (2) Plan implementation grants.--The Federal share of the 
        costs of implementing an activity in an approved comprehensive 
        wildlife conservation plan carried out with a grant under this 
        section shall not exceed 50 percent of the total costs of such 
        activities.
            (3) Prohibition on use of federal funds.--The non-Federal 
        share of costs of an activity carried out under this section 
        shall not be paid with amounts derived from any Federal grant 
        program.
    (d) Requirement for Plan.--
            (1) In general.--No State, territory, or other jurisdiction 
        shall be eligible for a grant under this section unless it 
        submits to the Secretary a comprehensive wildlife conservation 
        plan that--
                    (A) complies with paragraph (2); and
                    (B) considers the broad range of the State, 
                territory, or other jurisdiction's wildlife and 
                associated habitats, with appropriate priority placed 
                on those species with the greatest conservation need 
                and taking into consideration the relative level of 
                funding available for the conservation of those 
                species.
            (2) Contents.--The comprehensive wildlife conservation plan 
        must contain--
                    (A) information on the distribution and abundance 
                of species of wildlife, including low and declining 
                populations as the State, territory, or other 
                jurisdiction's fish and wildlife agency considers 
                appropriate, that are indicative of the diversity and 
                health of the jurisdiction's wildlife;
                    (B) the location and relative condition of key 
                habitats and community types essential to conservation 
                of species identified in subparagraph (A);
                    (C) descriptions of problems which may adversely 
                affect species identified in subparagraph (A) or their 
                habitats, and priority research and survey efforts 
                needed to identify factors that may assist in 
                restoration and improved conservation of these species 
                and habitats;
                    (D) descriptions of conservation actions proposed 
                to conserve the identified species and habitats and 
                priorities for implementing such actions;
                    (E) proposed plans for monitoring species 
                identified in subparagraph (A) and their habitats, for 
                monitoring the effectiveness of the conservation 
                actions proposed in subparagraph (D), and for adapting 
                these conservation actions to respond appropriately to 
                new information or changing conditions;
                    (F) descriptions of procedures to review the 
                comprehensive wildlife conservation plan at intervals 
                not to exceed ten years;
                    (G) plans for coordinating the development, 
                implementation, review, and revision of the 
                comprehensive wildlife conservation plan with Federal, 
                State, and local agencies and Indian tribes that manage 
                significant land and water areas within the 
                jurisdiction or administer programs that significantly 
                affect the conservation of identified species and 
                habitats; and
                    (H) provisions for broad public participation as an 
                essential element of the development, revision, and 
                implementation of the comprehensive wildlife 
                conservation plan.
    (e) Savings Clause.--State comprehensive wildlife strategies 
approved by the Secretary pursuant to previous congressional 
authorizations and appropriations Acts shall remain in effect until 
such strategies expire or are revised in accordance with their terms. 
Except as specified in section 7456(b) with respect to funds made 
available under such section, conservation and education activities 
conducted or proposed to be conducted pursuant to such previously 
approved strategies shall remain authorized.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

                       CHAPTER 5--OCEAN PROGRAMS

SEC. 7471. OCEAN POLICY, GLOBAL WARMING, AND ACIDIFICATION PROGRAM.

     (a) Development and Implementation.--
            (1) In general.--The Secretary of Commerce, shall, within 
        two years after the date of enactment of this Act, and on the 
        basis of the best available science, develop and implement a 
        national strategy using existing authorities and the authority 
        provided in this section to support coastal State and Federal 
        agency efforts to--
                    (A) predict, plan for, and mitigate the impacts on 
                ocean and coastal ecosystems from global warming, 
                relative sea level rise and ocean acidification; and
                    (B) ensure the recovery, resiliency, and health of 
                ocean and coastal ecosystems.
            (2) Consultation and comment.--Before and during the 
        development of the national strategy, the Secretary shall--
                    (A) consult with the Secretary of the Interior, the 
                Administrator of the Environmental Protection Agency, 
                the Regional Fishery Management Councils, coastal 
                States, Indian tribes, local governments, conservation 
                organizations, scientists, and other interested 
                stakeholders; and
                    (B) provide opportunities for public notice and 
                comment.
    (b) Contents.--
            (1) In general.--The Secretary shall include in the 
        national strategy prioritized goals and measures to--
                    (A) incorporate climate change adaptation 
                strategies into the planning and management of ocean 
                and coastal programs and resources administered by the 
                Department of Commerce;
                    (B) support restoration, protection, and 
                enhancement of natural processes that minimize the 
                impacts of relative sea level rise, global warming, and 
                ocean acidification;
                    (C) minimize the impacts of global warming and 
                ocean acidification on marine species and their 
                habitats;
                    (D) identify, protect, and restore ocean and 
                coastal habitats needed to build healthy and resilient 
                ecosystems;
                    (E) support the development of climate change 
                resiliency plans under the Coastal Zone Management Act 
                of 1972 (16 U.S.C. 1451 et seq.);
                    (F) provide technical assistance and training to 
                other Federal agencies, States, local communities, 
                universities, and other stakeholders; and
                    (G) identify additional research that is needed to 
                better anticipate and plan for the impacts of global 
                warming and ocean acidification on ocean and coastal 
                resources.
            (2) Coordination with other plans.--In developing the 
        national strategy, the Secretary shall--
                    (A) take into consideration research and 
                information available in Federal, regional, and State 
                management and restoration plans and any other relevant 
                reports and information; and
                    (B) encourage and take into account State and 
                regional plans for protecting and restoring the health 
                and resilience of ocean and coastal ecosystems.
    (c) Revision.--The Secretary shall revise the national strategy not 
later than 5 years after its promulgation, and not later than every 10 
years thereafter, to reflect new information on the impacts of global 
warming, relative sea level rise, and acidification on ocean and 
coastal ecosystems and their resources and advances in the development 
of strategies for adapting to or mitigating for such impacts.
    (d) Science Advisory Board.--
            (1) Consultation.--The Secretary shall consult with the 
        National Oceanic and Atmospheric Administration's Science 
        Advisory Board in the development and implementation of the 
        strategy.
            (2) Review information.--The Science Advisory Board shall 
        periodically--
                    (A) review new information on the impacts of global 
                warming, relative sea level rise, and acidification on 
                ocean and coastal ecosystems and their resources and 
                advances in the development of strategies for adapting 
                to or mitigating for such impacts; and
                    (B) provide that information to the Secretary.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to implement this section. 
Amounts appropriated shall be used for the exclusive purpose of 
carrying out the activities specified in this section.
    (f) Report to Congress.--Copies of the strategy and implementation 
plan and any updates shall be provided to Congress.

SEC. 7472. PLANNING FOR CLIMATE CHANGE IN THE COASTAL ZONE.

    (a) In General.--The Coastal Zone Management Act of 1972 (16 U.S.C. 
1451 et seq.) is amended by adding at the end the following:

                  ``climate change resiliency planning

    ``Sec. 320.  (a) In General.--The Secretary shall establish 
consistent with the national policies set forth in section 303 a 
coastal climate change resiliency planning and response program to--
            ``(1) provide assistance to coastal states to voluntarily 
        develop coastal climate change resiliency plans pursuant to 
        approved management programs approved under section 306, to 
        minimize contributions to climate change and to prepare for and 
        reduce the negative consequences that may result from climate 
        change in the coastal zone; and
            ``(2) provide financial and technical assistance and 
        training to enable coastal states to implement plans developed 
        pursuant to this section through coastal states' enforceable 
        policies.
    ``(b) Guidelines.--Within 180 days after the date of enactment of 
this section, the Secretary, in consultation with the coastal states, 
shall issue guidelines for the implementation of the grant program 
established under subsection (c).
    ``(c) Climate Change Resiliency Planning Grants.--
            ``(1) In general.--The Secretary, subject to the 
        availability of appropriations, may make a grant to any coastal 
        state for the purpose of developing climate change resiliency 
        plans pursuant to guidelines issued by the Secretary under 
        subsection (b).
            ``(2) Plan content.--A plan developed with a grant under 
        this section shall include the following:
                    ``(A) Identification of public facilities and 
                public services, coastal resources of national 
                significance, coastal waters, energy facilities, or 
                other water uses located in the coastal zone that are 
                likely to be impacted by climate change.
                    ``(B) Adaptive management strategies for land use 
                to respond or adapt to changing environmental 
                conditions, including strategies to protect 
                biodiversity and establish habitat buffer zones, 
                migration corridors, and climate refugia.
                    ``(C) Requirements to initiate and maintain long-
                term monitoring of environmental change to assess 
                coastal zone resiliency and to adjust when necessary 
                adaptive management strategies and new planning 
                guidelines to attain the policies under section 303.
            ``(3) State hazard mitigation plans.--Plans developed with 
        a grant under this section shall be consistent with State 
        hazard mitigation plans developed under State or Federal law.
            ``(4) Allocation.--Grants under this section shall be 
        available only to coastal states with management programs 
        approved by the Secretary under section 306 and shall be 
        allocated among such coastal states in a manner consistent with 
        regulations promulgated pursuant to section 306(c).
            ``(5) Priority.--In the awarding of grants under this 
        subsection the Secretary may give priority to any coastal state 
        that has received grant funding to develop program changes 
        pursuant to paragraphs (1), (2), (3), (5), (6), (7), and (8) of 
        section 309(a).
            ``(6) Technical assistance.--The Secretary may provide 
        technical assistance to a coastal state consistent with section 
        310 to ensure the timely development of plans supported by 
        grants awarded under this subsection.
            ``(7) Federal approval.--In order to be eligible for a 
        grant under subsection (d), a coastal state must have its plan 
        developed under this section approved by the Secretary.
    ``(d) Coastal Resiliency Project Grants.--
            ``(1) In general.--The Secretary, subject to the 
        availability of appropriations, may make grants to any coastal 
        state that has a climate change resiliency plan approved under 
        subsection (c)(7), in order to support projects that implement 
        strategies contained within such plans.
            ``(2) Program requirements.--The Secretary within 90 days 
        after approval of the first plan approved under subsection 
        (c)(7), shall publish in the Federal Register requirements 
        regarding applications, allocations, eligible activities, and 
        all terms and conditions for grants awarded under this 
        subsection. No less than 30 percent of the funds appropriated 
        in any fiscal year for grants under this subsection shall be 
        awarded through a merit-based competitive process.
            ``(3) Eligible activities.--The Secretary may award grants 
        to coastal states to implement projects in the coastal zone to 
        address stress factors in order to improve coastal climate 
        change resiliency, including the following:
                    ``(A) Activities to address physical disturbances 
                within the coastal zone, especially activities related 
                to public facilities and public services, tourism, 
                sedimentation, and other factors negatively impacting 
                coastal waters, and fisheries-associated habitat 
                destruction or alteration.
                    ``(B) Monitoring, control, or eradication of 
                disease organisms and invasive species.
                    ``(C) Activities to address the loss, degradation 
                or fragmentation of wildlife habitat through projects 
                to establish marine and terrestrial habitat buffers, 
                wildlife refugia or networks thereof, and preservation 
                of migratory wildlife corridors and other transition 
                zones.
                    ``(D) Implementation of projects to reduce, 
                mitigate, or otherwise address likely impacts caused by 
                natural hazards in the coastal zone, including sea 
                level rise, coastal inundation, coastal erosion and 
                subsidence, severe weather events such as cyclonic 
                storms, tsunamis and other seismic threats, and 
                fluctuating Great Lakes water levels.
                    ``(E) Provide technical training and assistance to 
                local coastal policy makers to increase awareness of 
                science, management, and technology information related 
                to climate change and adaptation strategies.''.
    (b) Authorization of Appropriations.--Section 318(a) of the Coastal 
Zone Management Act of 1972 (16 U.S.C. 1464) is further amended by 
adding at the end the following:
            ``(4) for grants under section 320(c) and (d), such sums as 
        are necessary.''.
    (c) Intent of Congress.--Nothing in this section shall be construed 
to require any coastal state to amend or modify its approved management 
program pursuant to section 306(e) of the Coastal Zone Management Act 
of 1972 (16 U.S.C. 1455(e)), or to extend the enforceable policies of a 
coastal state beyond the coastal zone as identified in the coastal 
state's approved management program.

SEC. 7473. ENHANCING CLIMATE CHANGE PREDICTIONS.

    (a) Short Title.--This section may be cited as the ``National 
Integrated Coastal and Ocean Observation Act of 2007''.
    (b) Purposes.--The purposes of this section are the following:
            (1) Establish a National Integrated Coastal and Ocean 
        Observation System comprised of Federal and non-Federal 
        components, coordinated at the national level by the National 
        Ocean Research Leadership Council and at the regional level by 
        a network of Regional Information Coordination Entities, that 
        includes in situ, remote, and other coastal and ocean 
        observations, technologies, and data management and 
        communication systems, to gather specific coastal and ocean 
        data variables and to ensure the timely dissemination and 
        availability of usable observation data--
                    (A) to support national defense, marine commerce, 
                energy production, scientific research, ecosystem-based 
                marine and coastal resource management, weather and 
                marine forecasting, public safety and public outreach 
                training and education; and
                    (B) to promote greater public awareness and 
                stewardship of the Nation's ocean, coastal, and Great 
                Lakes resources and the general public welfare.
            (2) Improve the Nation's capability to measure, track, 
        explain, and predict events related directly and indirectly to 
        weather and climate change, natural climate variability, and 
        interactions between the oceanic and atmospheric environments, 
        including the Great Lakes.
            (3) Authorize activities to promote basic and applied 
        research to develop, test, and deploy innovations and 
        improvements in coastal and ocean observation technologies, 
        modeling systems, and other scientific and technological 
        capabilities to improve our conceptual understanding of weather 
        and climate, ocean atmosphere dynamics, global climate change, 
        and physical, chemical, and biological dynamics of the ocean 
        and coastal and Great Lakes environments.
    (c) Definitions.--In this section:
            (1) Council.--The term ``Council'' means the National Ocean 
        Research Leadership Council referred to in section 7902 of 
        title 10, United States Code.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
            (3) Federal assets.--The term ``Federal assets'' means all 
        relevant nonclassified civilian coastal and ocean observations, 
        technologies, and related modeling, research, data management, 
        basic and applied technology research and development, and 
        public education and outreach programs, that are managed by 
        member agencies of the Council.
            (4) Interagency working group.--The term ``Interagency 
        Working Group'' means the Interagency Working Group on Ocean 
        Observations as established by the U.S. Ocean Policy Committee 
        Subcommittee on Ocean Science and Technology pursuant to 
        Executive Order 13366 signed December 17, 2004.
            (5) Non-federal assets.--The term ``non-Federal assets'' 
        means all relevant coastal and ocean observations, 
        technologies, related basic and applied technology research and 
        development, and public education and outreach programs that 
        are integrated into the System and are managed through States, 
        regional organizations, universities, nongovernmental 
        organizations, or the private sector.
            (6) Regional information coordination entities.--
                    (A) In general.--The term ``Regional Information 
                Coordination Entity'', subject to subparagraphs (B) and 
                (C), means an organizational body that is certified or 
                established by the lead Federal agency designated in 
                subsection (d)(3)(C)(iii) and coordinating State, 
                Federal, local, and private interests at a regional 
                level with the responsibility of engaging the private 
                and public sectors in designing, operating, and 
                improving regional coastal and ocean observing systems 
                in order to ensure the provision of data and 
                information that meet the needs of user groups from the 
                respective regions.
                    (B) Included associations.--Such term includes 
                Regional Associations as described by the System Plan.
                    (C) Limitation.--Nothing in this section shall be 
                construed to invalidate existing certifications, 
                contracts, or agreements between Regional Associations 
                and other elements of the System.
            (7) System.--The term ``System'' means the National 
        Integrated Coastal and Ocean Observation System established 
        under subsection (d).
            (8) System plan.--The term ``System Plan'' means the plan 
        contained in the document entitled ``Ocean.US publication #9, 
        The First Integrated Ocean Observing System (IOOS) Development 
        Plan''.
    (d) National Integrated Coastal and Ocean Observing System.--
            (1) Establishment.--The President, acting through the 
        Council, shall establish a National Integrated Coastal and 
        Ocean Observation System to fulfill the purposes set forth in 
        subsection (b) and the System plan and to fulfill the Nation's 
        international obligations to contribute to the global earth 
        observation system of systems and the global ocean observing 
        system.
            (2) Support of purposes.--The head of each agency that is a 
        member of the Interagency Working Group shall support the 
        purposes of this section.
            (3) Availability of data.--The head of each Federal agency 
        that has administrative jurisdiction over a Federal asset shall 
        make available data that are produced by that asset and that 
        are not otherwise restricted for integration, management, and 
        dissemination by the System.
            (4) Enhancing administration and management.--The head of 
        each Federal agency that has administrative jurisdiction over a 
        Federal asset may take appropriate actions to enhance internal 
        agency administration and management to better support, 
        integrate, finance, and utilize observation data, products, and 
        services developed under this section to further its own agency 
        mission and responsibilities.
            (5) Participation in regional information coordination 
        entity.--The head of each Federal agency that has 
        administrative jurisdiction over a Federal asset may 
        participate in regional information coordination entity 
        activities.
            (6) Non-federal assets.--Non-Federal assets shall be 
        coordinated by the Interagency Working Group or by Regional 
        Information Coordination Entities.
    (e) Policy Oversight, Administration, and Regional Coordination.--
            (1) National ocean research leadership council.--The 
        National Ocean Research Leadership Council shall be responsible 
        for establishing broad coordination and long-term operations 
        plans, policies, protocols, and standards for the System 
        consistent with the policies, goals, and objectives contained 
        in the System Plan, and coordination of the System with other 
        earth observing activities.
            (2) Interagency working group.--The Interagency Working 
        Group shall, with respect to the System, be responsible for--
                    (A) implementation of operations plans and policies 
                developed by the Council;
                    (B) development of and transmittal to Congress at 
                the time of submission of the President's annual budget 
                request an annual coordinated, comprehensive System 
                budget;
                    (C) identification of gaps in observation coverage 
                or needs for capital improvements of both Federal 
                assets and non-Federal assets;
                    (D) establishment of data management and 
                communication protocols and standards;
                    (E) establishment of required observation data 
                variables;
                    (F) development of certification standards for all 
                non-Federal assets or Regional Information Coordination 
                Entities to be eligible for integration into the 
                System;
                    (G) subject to the availability of appropriations, 
                establish through one or more participating Federal 
                agencies, in consultation with the System Advisory 
                Committee established under paragraph (5), a 
                competitive matching grant or other program to promote 
                research and development of innovative observation 
                technologies including testing and field trials; and
                    (H) periodically review and recommend to the 
                Council revisions to the System Plan.
            (3) Lead federal agency.--The Administrator shall function 
        as the lead Federal agency for the System. The Administrator 
        may establish an Interagency Program Coordinating Office to 
        facilitate the Administrator's responsibilities as the lead 
        Federal agency for System oversight and management. The 
        Administrator shall--
                    (A) implement policies, protocols, and standards 
                established by the Council and delegated by the 
                Interagency Working Group;
                    (B) promulgate regulations to integrate the 
                participation of non-Federal assets into the System and 
                enter into and oversee contracts and agreements with 
                Regional Information Coordination Entities to effect 
                this purpose;
                    (C) implement a competitive funding process for the 
                purpose of assigning contracts and agreements to 
                Regional Information Coordination Entities;
                    (D) certify or establish Regional Information 
                Coordination Entities to coordinate State, Federal, 
                local, and private interests at a regional level with 
                the responsibility of engaging private and public 
                sectors in designing, operating, and improving regional 
                coastal and ocean observing systems in order to ensure 
                the provision of data and information that meet the 
                needs of user groups from the respective regions;
                    (E) formulate a process by which gaps in 
                observation coverage or needs for capital improvements 
                of Federal assets and non-Federal assets of the System 
                can be identified by the Regional Information 
                Coordination Entities, the Administrator, or other 
                members of the System and transmitted to the 
                Interagency Working Group;
                    (F) be responsible for the coordination, storage, 
                management, and dissemination of observation data 
                gathered through the System to all end-user 
                communities;
                    (G) implement a program of public education and 
                outreach to improve public awareness of global climate 
                change and effects on the ocean, coastal, and Great 
                Lakes environment; and
                    (H) report annually to the Council through the 
                Interagency Working Group on the accomplishments, 
                operational needs, and performance of the System to 
                achieve the purposes of this title and the System Plan.
            (4) Regional information coordination entity.--To be 
        certified or established under paragraph (3)(D), a Regional 
        Information Coordination Entity must be certified or 
        established by contract or agreement by the Administrator, and 
        must agree to--
                    (A) gather required System observation data and 
                other requirements specified under this section and the 
                System plan;
                    (B) identify gaps in observation coverage or needs 
                for capital improvements of Federal assets and non-
                Federal assets of the System, and transmit such 
                information to the Interagency Working Group via the 
                Administrator;
                    (C) demonstrate an organizational structure and 
                strategic operational plan to ensure the efficient and 
                effective administration of programs and assets to 
                support daily data observations for integration into 
                the System;
                    (D) comply with all financial oversight 
                requirements established by the Administrator, 
                including requirements relating to audits; and
                    (E) demonstrate a capability to work with other 
                governmental and nongovernmental entities at all levels 
                to identify and provide information products of the 
                System for multiple users within the service area of 
                the Regional Information Coordination Entities and 
                otherwise.
            (5) System advisory committee.--
                    (A) In general.--The Administrator shall establish 
                a System Advisory Committee, which shall provide advice 
                as may be requested by the Administrator or the 
                Interagency Working Group.
                    (B) Purpose.--The purpose of the System Advisory 
                Committee is to advise the Administrator and the 
                Interagency Working Group on--
                            (i) administration, operation, management, 
                        and maintenance of the System, including 
                        integration of Federal and non-Federal assets 
                        and data management and communication aspects 
                        of the System, and fulfillment of the purposes 
                        specified under subsection (b);
                            (ii) expansion and periodic modernization 
                        and upgrade of technology components of the 
                        System;
                            (iii) identification of end-user 
                        communities, their needs for information 
                        provided by the System, and the System's 
                        effectiveness in disseminating information to 
                        end-user communities and the general public; 
                        and
                            (iv) any other purpose identified by the 
                        Administrator or the Interagency Working Group.
                    (C) Members.--
                            (i) In general.--The System Advisory 
                        Committee shall be composed of members 
                        appointed by the Administrator. Members shall 
                        be qualified by education, training, and 
                        experience to evaluate scientific and technical 
                        information related to the design, operation, 
                        maintenance, or use of the System, or use of 
                        data products provided through the System.
                            (ii) Terms of service.--Members shall be 
                        appointed for 3-year terms, renewable once. A 
                        vacancy appointment shall be for the remainder 
                        of the unexpired term of the vacancy, and an 
                        individual so appointed may subsequently be 
                        appointed for 2 full 3-year terms if the 
                        remainder of the unexpired term is less than 
                        one year.
                            (iii) Chairperson.--The Administrator shall 
                        designate a chairperson from among the members 
                        of the System Advisory Committee.
                            (iv) Appointment.--Members of the System 
                        Advisory Committee shall be appointed as 
                        special Government employees for purposes of 
                        section 202(a) of title 18, United States Code.
                    (D) Administrative provisions.--
                            (i) Reporting.--The System Advisory 
                        Committee shall report to the Administrator and 
                        the Interagency Working Group, as appropriate.
                            (ii) Administrative support.--The 
                        Administrator shall provide administrative 
                        support to the System Advisory Committee.
                            (iii) Meetings.--The System Advisory 
                        Committee shall meet at least once each year, 
                        and at other times at the call of the 
                        Administrator, the Interagency Working Group, 
                        or the chairperson.
                            (iv) Compensation and expenses.--Members of 
                        the System Advisory Committee shall not be 
                        compensated for service on that Committee, but 
                        may be allowed travel expenses, including per 
                        diem in lieu of subsistence, in accordance with 
                        subchapter I of chapter 57 of title 5, United 
                        States Code.
                            (v) Expiration.--Section 14 of the Federal 
                        Advisory Committee Act (5 U.S.C. App.) shall 
                        not apply to the System Advisory Committee.
            (6) Civil liability.--For purposes of determining liability 
        arising from the dissemination and use of observation data 
        gathered pursuant to this section, any non-Federal asset or 
        Regional Information Coordination Entity that is certified 
        under paragraph (3)(D) and that is participating in the System 
        shall be considered to be part of the National Oceanic and 
        Atmospheric Administration. Any employee of such a non-Federal 
        asset or Regional Information Coordination Entity, while 
        operating within the scope of his or her employment in carrying 
        out the purposes of this section, with respect to tort 
        liability, is deemed to be an employee of the Federal 
        Government.
    (f) Interagency Financing, Grants, Contracts, and Agreements.--
            (1) In general.--The member departments and agencies of the 
        Council, subject to the availability of appropriations, may 
        participate in interagency financing and share, transfer, 
        receive, obligate, and expend funds appropriated to any member 
        agency for the purposes of carrying out any administrative or 
        programmatic project or activity to further the purposes of 
        this section, including support for the Interagency Working 
        Group, the Interagency Coordinating Program Office, a common 
        infrastructure, and integration to expand or otherwise enhance 
        the System.
            (2) Joint centers and agreements.--Member Departments and 
        agencies of the Council shall have the authority to create, 
        support, and maintain joint centers, and to enter into and 
        perform such contracts, leases, grants, and cooperative 
        agreements as may be necessary to carry out the purposes of 
        this section and fulfillment of the System Plan.
    (g) Application With Other Laws.--Nothing in this section 
supersedes or limits the authority of any agency to carry out its 
responsibilities and missions under other laws.
    (h) Report to Congress.--
            (1) In general.--Not later than two years after the date of 
        enactment of this section, the Administrator through the 
        Council shall submit to Congress a report that describes the 
        status of the System and progress made to achieve the purposes 
        of this section and the goals identified under the System Plan.
            (2) Contents.--The report shall include discussion of the 
        following:
                    (A) Identification of Federal and non-Federal 
                assets as determined by the Council that have been 
                integrated into the System, including assets essential 
                to the gathering of required observation data variables 
                necessary to meet the respective missions of Council 
                agencies.
                    (B) A review of procurements, planned or initiated, 
                by each Council agency to enhance, expand, or modernize 
                the observation capabilities and data products provided 
                by the System, including data management and 
                communication subsystems.
                    (C) An assessment regarding activities to integrate 
                Federal and non-Federal assets, nationally and on the 
                regional level, and discussion of the performance and 
                effectiveness of Regional Information Coordination 
                Entities to coordinate regional observation operations.
                    (D) An evaluation of progress made by the Council 
                to achieve the purposes of this section and the goals 
                identified under the System Plan.
                    (E) Recommendations for operational improvements to 
                enhance the efficiency, accuracy, and overall 
                capability of the System.
            (3) Biennial update.--Two years after the transmittal of 
        the initial report prepared pursuant to this subsection and 
        biennially thereafter, the Administrator, through the Council, 
        shall submit to Congress an update of the initial report.
    (i) Public-Private Use Policy.--The Council shall develop a policy 
within 6 months after the date of the enactment of this section that 
defines processes for making decisions about the roles of the Federal 
Government, the States, Regional Information Coordination Entities, the 
academic community, and the private sector in providing to end-user 
communities environmental information, products, technologies, and 
services related to the System. The Council shall publish the policy in 
the Federal Register for public comment for a period not less than 60 
days. Nothing in this subsection shall be construed to require changes 
in policy in effect on the date of the enactment of this Act.
    (j) Independent Cost Estimate.--The Interagency Working Group, 
through the Administrator and the Director of the National Science 
Foundation, shall obtain within one year after the date of the 
enactment of this section an independent cost estimate for operations 
and maintenance of existing Federal assets of the System, and planned 
or anticipated acquisition, operation, and maintenance of new Federal 
assets for the System, including operation facilities, observation 
equipment, modeling and software, data management and communication, 
and other essential components. The independent cost estimate shall be 
transmitted unabridged and without revision by the Administrator to 
Congress.
    (k) Intent of Congress.--It is the intent of Congress that funding 
provided to agencies of the Council to implement this section shall 
supplement, and not replace, existing sources of funding for other 
programs. It is the further intent of Congress that agencies of the 
Council shall not enter into contracts or agreements for the 
development or procurement of new Federal assets for the System that 
are estimated to be in excess of $250,000,000 in life-cycle costs 
without first providing adequate notice to Congress and opportunity for 
review and comment.

        Subtitle E--Royalties Under Offshore Oil and Gas Leases

SEC. 7501. SHORT TITLE.

    This subtitle may be cited as the ``Royalty Relief for American 
Consumers Act of 2007''.

SEC. 7502. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.

    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 (43 U.S.C. 1337(a)(3)(C)). Any 
amended lease shall impose the new or revised price thresholds 
effective October 1, 2006. Existing lease provisions shall prevail 
through September 30, 2006.

SEC. 7503. CLARIFICATION OF AUTHORITY TO IMPOSE PRICE THRESHOLDS FOR 
              CERTAIN LEASE SALES.

    Congress reaffirms the authority of the Secretary of the Interior 
under section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(1)(H)) 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 
(Public Law 104-58; 43 U.S.C. 1337 note).

SEC. 7504. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES; 
              CONSERVATION OF RESOURCES FEES.

    (a) Issuance of New Leases.--
            (1) In general.--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 
        (43 U.S.C. 1331 et seq.) to a person described in paragraph (2) 
        unless--
                    (A) 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 (43 U.S.C. 1337(a)(3)(C)); or
                    (B) the person has--
                            (i) 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
                            (ii) entered into an agreement with the 
                        Secretary under which the person is obligated 
                        to pay such fees.
            (2) Persons described.--A person referred to in paragraph 
        (1) is a person that--
                    (A) is a lessee that--
                            (i) holds a covered lease on the date on 
                        which the Secretary considers the issuance of 
                        the new lease; or
                            (ii) 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
                    (B) any other person or entity who has any direct 
                or indirect interest in, or who derives any benefit 
                from, a covered lease;
            (3) Multiple lessees.--
                    (A) In general.--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 (43 U.S.C. 1337(a)(3)(C)).
                    (B) Treatment of share as covered lease.--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.
    (b) Conservation of Resources Fees.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary of the Interior by 
        regulation shall establish--
                    (A) a conservation of resources fee for producing 
                Federal oil and gas leases in the Gulf of Mexico; and
                    (B) a conservation of resources fee for 
                nonproducing Federal oil and gas leases in the Gulf of 
                Mexico.
            (2) Producing lease fee terms.--The fee under paragraph 
        (1)(A)--
                    (A) subject to subparagraph (C), shall apply to 
                covered leases that are producing leases;
                    (B) shall be set at $9 per barrel for oil and $1.25 
                per million Btu for gas, respectively, in 2005 dollars; 
                and
                    (C) shall apply only to production of oil or gas 
                occurring--
                            (i) 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
                            (ii) on or after October 1, 2006.
            (3) Nonproducing lease fee terms.--The fee under paragraph 
        (1)(B)--
                    (A) subject to subparagraph (C), shall apply to 
                leases that are nonproducing leases;
                    (B) shall be set at $3.75 per acre per year in 2005 
                dollars; and
                    (C) shall apply on and after October 1, 2006.
            (4) Treatment of receipts.--Amounts received by the United 
        States as fees under this subsection shall be treated as 
        offsetting receipts.
    (c) Transfers.--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 (43 U.S.C. 1331 et seq.), unless--
            (1) the lessee or other person has--
                    (A) renegotiated all covered leases of the lessee 
                or other person; and
                    (B) 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 (43 U.S.C. 1337(a)(3)(C)); or
            (2) the lessee or other person has--
                    (A) 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
                    (B) entered into an agreement with the Secretary 
                under which the person is obligated to pay such fees.
    (d) Definitions.--In this section--
            (1) Covered lease.--The term ``covered lease'' means a 
        lease for oil or gas production in the Gulf of Mexico that is--
                    (A) in existence on the date of enactment of this 
                Act;
                    (B) issued by the Department of the Interior under 
                section 304 of the Outer Continental Shelf Deep Water 
                Royalty Relief Act (43 U.S.C. 1337 note; Public Law 
                104-58); and
                    (C) 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 (43 U.S.C. 1337(a)(3)(C)).
            (2) Lessee.--The term ``lessee'' includes any person or 
        other entity that controls, is controlled by, or is in or under 
        common control with, a lessee.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 7505. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR THE 
              OIL AND GAS INDUSTRY.

    (a) Repeal of Provisions of Energy Policy Act of 2005.--The 
following provisions of the Energy Policy Act of 2005 (Public Law 109-
58) are repealed:
            (1) Section 344 (42 U.S.C. 15904; relating to incentives 
        for natural gas production from deep wells in shallow waters of 
        the Gulf of Mexico).
            (2) Section 345 (42 U.S.C. 15905; relating to royalty 
        relief for deep water production in the Gulf of Mexico).
    (b) Provisions Relating to Planning Areas Offshore Alaska.--Section 
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas 
offshore Alaska'' after ``West longitude''.
    (c) Provisions Relating to Naval Petroleum Reserve in Alaska.--
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--
            (1) in subsection (i) by striking paragraphs (2) through 
        (6); and
            (2) by striking subsection (k).

                   Subtitle F--Additional Provisions

SEC. 7601. OIL SHALE COMMUNITY IMPACT ASSISTANCE.

    (a) Establishment of Fund.--There is established on the books of 
the Treasury of the United States a separate account to be known as the 
Oil Shale Community Impact Assistance Fund (hereinafter in this section 
referred to as the ``Fund''). The Fund shall be administered by the 
Secretary of the Interior acting through the Director of the Bureau of 
Land Management.
    (b) Contents.--
            (1) In general.--There shall be credited to the Fund--
                    (A) all amounts paid to the United States as bonus 
                bids in connection with the award of commercial oil 
                shale leases pursuant to section 369(e) of the Energy 
                Policy Act of 2005 (42 U.S.C. 15927(e)); and
                    (B) an amount equal to 25 percent of the portion of 
                the other amounts deposited into the Treasury pursuant 
                to section 35(a) of the Mineral Leasing Act (30 U.S.C. 
                191) with respect to such leases, that remains after 
                deduction of all payments made pursuant to of such 
                section.
            (2) Termination of crediting of royalties.--Paragraph 
        (1)(B) shall not apply to royalties received by the United 
        States under a commercial oil shale lease after the end of the 
        10-year period beginning on the date on which the first amount 
        of royalty under such lease is paid to the United States.
    (c) Distribution.--
            (1) In general.--The Secretary, subject to the availability 
        of appropriations, shall use amounts in the Fund to annually 
        pay to each county in which is located land subject to a 
        commercial oil shale lease referred to in subsection (b)(1) an 
        amount equal to the amount credited to the Fund during the 
        preceding year pursuant to section (b) with respect to such 
        lease. If such land is located in more than one county, the 
        Secretary shall allocate such payment among such counties on 
        the basis of the relative amount of lands subject to the lease 
        within each such county.
            (2) Use of payment.--Amounts paid to a county under this 
        subsection shall be used by the county for the planning, 
        construction, and maintenance of public facilities and the 
        provision of public services.

SEC. 7602. ADDITIONAL NOTICE REQUIREMENTS.

    (a) Permittees.--At least 45 days before offering lands for lease 
pursuant to section 17(f) of the Mineral Leasing Act (30 U.S.C. 
226(f)), the Secretary of the Interior shall provide notice of the 
proposed leasing activity in writing to the holders of special 
recreation permits for commercial use, competitive events, and other 
organized activities on the lands being offered for lease.
    (b) Conservation Easement Holders.--
            (1) If the holder of a conservation easement or similar 
        property interest in the surface estate of lands eligible for 
        leasing under the Mineral Leasing Act has informed the 
        Secretary of the Interior of the existence of such property 
        interest, the Secretary shall treat such holder as a surface 
        estate owner for purposes of section 7221(d) of this title.
            (2) As soon as possible after the date of enactment of this 
        Act, the Secretary of the Interior shall establish a means for 
        holders of property interests described in paragraph (1) to 
        provide notice of such interests, and shall inform the public 
        regarding such means.

SEC. 7603. DAVIS-BACON ACT.

    All laborers and mechanics employed by contractors and 
subcontractors on construction, repair, or alteration projects that are 
funded in whole or in part or otherwise authorized under sections 7304 
or 7306 shall be paid wages at rates not less than those prevailing on 
similar construction in the locality, as determined by the Secretary of 
Labor in accordance with subchapter IV of chapter 31 of title 40, 
United States Code. The Secretary of Labor shall, with respect to the 
labor standards in this title, have the authority and functions set 
forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 5 
U.S.C. App.) and section 3145 of title 40, United States Code.

SEC. 7604. ROAN PLATEAU, COLORADO.

    (a) Leases for Top of Plateau.--
            (1) Prohibition.--The Secretary of the Interior shall 
        include in each lease under the Mineral Leasing Act (30 U.S.C. 
        181 et seq.) for lands to which this subsection applies a 
        prohibition of surface occupancy for purposes of exploration 
        for or development of oil or gas.
            (2) Application.--This subsection applies to all Federal 
        lands in Colorado that were formerly designated as Naval Oil 
        Shale Reserves 1 and 3 that are located within the rim 
        boundary, as such boundary is depicted on Map 1 accompanying 
        the Bureau of Land Management's final Resource Management Plan 
        Amendment and Environmental Impact Statement for the Roan 
        Plateau Planning Area dated August, 2006.
    (b) Report on Cleanup Status.--No later than 30 days after the date 
of enactment of this Act--
            (1) the Secretary of the Treasury shall provide to the 
        appropriate Committees of Congress a report detailing the total 
        amounts received by the United States under leases of Federal 
        lands in Colorado formerly designated as Naval Oil Shale 
        Reserves 1 and 3 pursuant to section 7439 of title 10, United 
        States Code, and covered into the Treasury pursuant to 
        subsection (f) of such section; and
            (2) the Secretary of the Interior shall provide to the 
        appropriate committees of Congress a report--
                    (A) detailing the amounts expended by the United 
                States for environmental restoration, waste management, 
                and environmental compliance activities with respect to 
                the lands described in paragraph (1), to repay the cost 
                to the United States to originally install wells, 
                gathering lines, and related equipment on such lands, 
                and any other cost incurred by the United States with 
                respect to such lands; and
                    (B) stating what further actions are required to 
                complete the needed environmental restoration, waste 
                management, and environmental compliance activities 
                with regard to such lands, the estimated cost of such 
                activities, and when the Secretary expects such 
                activities will be completed.

             TITLE VIII--TRANSPORTATION AND INFRASTRUCTURE

SEC. 8001. SHORT TITLE.

    This title may be cited as the ``Transportation Energy Security and 
Climate Change Mitigation Act of 2007''.

SEC. 8002. FINDINGS AND PURPOSES.

    (a) Findings.--Congress makes the following findings:
            (1) Evidence that atmospheric warming and climate change 
        are occurring is unequivocal.
            (2) Observed and anticipated impacts of climate change can 
        result in economic harm and environmental damage to the United 
        States and the world.
            (3) The Nation's water resources, ecosystems, and 
        infrastructure will be under increasing stress and pressure in 
        coming decades, particularly due to climate change.
            (4) Greenhouse gases, such as carbon dioxide, methane, and 
        nitrous oxides, can lead to atmospheric warming and climate 
        change.
            (5) Transportation and buildings are among the leading 
        sources of greenhouse gas emissions.
            (6) Increased reliance on energy efficient and renewable 
        energy transportation and public buildings can strengthen our 
        Nation's energy security and mitigate the effects of climate 
        change by cutting greenhouse gas emissions.
            (7) The Federal Government can strengthen our Nation's 
        energy security and mitigate the effects of climate change by 
        promoting energy efficient transportation and public buildings, 
        creating incentives for the use of alternative fuel vehicles 
        and renewable energy, and ensuring sound water resource and 
        natural disaster preparedness planning.
    (b) Purposes.--The purposes of this title are to strengthen our 
Nation's energy security and mitigate the effects of climate change by 
promoting energy efficient transportation and public buildings, 
creating incentives for the use of alternative fuel vehicles and 
renewable energy, and ensuring sound water resource and natural 
disaster preparedness planning.

                Subtitle A--Department of Transportation

SEC. 8101. CENTER FOR CLIMATE CHANGE AND ENVIRONMENT.

    (a) In General.--Section 102 of title 49, United States Code, is 
amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by adding after subsection (f) the following:
    ``(g) Center for Climate Change and Environment.--
            ``(1) Establishment.--There is established in the 
        Department a Center for Climate Change and Environment to plan, 
        coordinate, and implement--
                    ``(A) department-wide research, strategies, and 
                actions under the Department's statutory authority to 
                reduce transportation-related energy use and mitigate 
                the effects of climate change; and
                    ``(B) department-wide research strategies and 
                action to address the impacts of climate change on 
                transportation systems and infrastructure.
            ``(2) Clearinghouse.--The Center shall establish a 
        clearinghouse of low-cost solutions, including projects that 
        are being or could be implemented under the congestion 
        mitigation and air quality improvement program of section 149 
        of title 23, to reduce congestion and transportation-related 
        energy use and air pollution and mitigate the effects of 
        climate change.''.
    (b) Coordination.--The Center for Climate Change and Environment of 
the Department of Transportation shall coordinate its activities with 
the United States Global Change Research Program.
    (c) Low-Cost Congestion Solutions.--
            (1) Study.--The Center for Climate Change and Environment, 
        in coordination with the Environmental Protection Agency, shall 
        conduct a study to examine fuel efficiency savings and clean 
        air impacts of major transportation projects, to identify low-
        cost solutions to reduce congestion and transportation-related 
        energy use and mitigate the effects of climate change, and to 
        alleviate such problems as railroad pricing that may force 
        freight off the more fuel efficient railroads and onto less 
        fuel efficient trucks.
            (2) Report.--Not later than one year after the date of 
        enactment of this title, the Secretary of Transportation, in 
        coordination with the Administrator of the Environmental 
        Protection Agency, shall transmit to the Committee on 
        Transportation and Infrastructure and the Committee on Energy 
        and Commerce of the House of Representatives a report on low-
        cost solutions to reducing congestion and transportation-
        related energy use and mitigating the effects of climate 
        change.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for the Center to carry out its duties 
under section 102(g) of title 49, United States Code, such sums as may 
be necessary for fiscal years 2008 through 2011.

                    Subtitle B--Highways and Transit

                     PART 1--PUBLIC TRANSPORTATION

SEC. 8201. GRANTS TO IMPROVE PUBLIC TRANSPORTATION SERVICES.

    (a) Authorizations of Appropriations.--
            (1) Urbanized area formula grants.--In addition to amounts 
        allocated under section 5338(b)(2)(B) of title 49, United 
        States Code, to carry out section 5307 of such title, there is 
        authorized to be appropriated $750,000,000 for each of fiscal 
        years 2008 and 2009 to carry out such section 5307. Such funds 
        shall be apportioned in accordance with section 5336 (other 
        than subsections (i)(1) and (j)) of such title but may not be 
        combined or commingled with any other funds apportioned under 
        such section 5336.
            (2) Formula grants for other than urbanized areas.--In 
        addition to amounts allocated under section 5338(b)(2)(G) of 
        title 49, United States Code, to carry out section 5311 of such 
        title, there is authorized to be appropriated $100,000,000 for 
        each of fiscal years 2008 and 2009 to carry out such section 
        5311. Such funds shall be apportioned in accordance with such 
        section 5311 but may not be combined or commingled with any 
        other funds apportioned under such section 5311.
    (b) Use of Funds.--Notwithstanding sections 5307 and 5311 of title 
49, United States Code, the Secretary of Transportation may make grants 
under such sections from amounts appropriated under subsection (a) only 
for one or more of the following:
            (1) If the recipient of the grant is reducing, or certifies 
        to the Secretary that, during the term of the grant, the 
        recipient will reduce one or more fares the recipient charges 
        for public transportation, those operating costs of equipment 
        and facilities being used to provide the public transportation 
        that the recipient is no longer able to pay from the revenues 
        derived from such fare or fares as a result of such reduction.
            (2) If the recipient of the grant is expanding, or 
        certifies to the Secretary that, during the term of the grant, 
        the recipient will expand public transportation service, those 
        operating and capital costs of equipment and facilities being 
        used to provide the public transportation service that the 
        recipient incurs as a result of the expansion of such service.
    (c) Federal Share.--Notwithstanding any other provision of law, the 
Federal share of the costs for which a grant is made under this section 
shall be 100 percent.
    (d) Period of Availability.--Funds appropriated under this section 
shall remain available for a period of 2 fiscal years.

SEC. 8202. INCREASED FEDERAL SHARE FOR CLEAN AIR ACT COMPLIANCE.

    Notwithstanding section 5323(i)(1) of title 49, United States Code, 
a grant for a project to be assisted under chapter 53 of such title 
during fiscal years 2008 and 2009 that involves acquiring clean fuel or 
alternative fuel vehicle-related equipment or facilities for the 
purposes of complying with or maintaining compliance with the Clean Air 
Act (42 U.S.C. 7401 et seq.) shall be for 100 percent of the net 
project cost of the equipment or facility attributable to compliance 
with that Act.

SEC. 8203. COMMUTER RAIL TRANSIT ENHANCEMENT.

    (a) Amendment.--Part E of subtitle V of title 49, United States 
Code, is amended by adding at the end the following:

            ``CHAPTER 285--COMMUTER RAIL TRANSIT ENHANCEMENT

``Sec.
``28501. Definitions
``28502. Surface Transportation Board mediation of trackage use 
                            requests.
``28503. Surface Transportation Board mediation of rights-of-way use 
                            requests.
``28504. Applicability of other laws.
``28505. Rules and regulations.
``Sec. 28501. Definitions
    ``In this chapter--
            ``(1) the term `Board' means the Surface Transportation 
        Board;
            ``(2) the term `capital work' means maintenance, 
        restoration, reconstruction, capacity enhancement, or 
        rehabilitation work on trackage that would be treated, in 
        accordance with generally accepted accounting principles, as a 
        capital item rather than an expense;
            ``(3) the term `fixed guideway transportation' means public 
        transportation (as defined in section 5302(a)(10)) provided on, 
        by, or using a fixed guideway (as defined in section 
        5302(a)(4));
            ``(4) the term `public transportation authority' means a 
        local governmental authority (as defined in section 5302(a)(6)) 
        established to provide, or make a contract providing for, fixed 
        guideway transportation;
            ``(5) the term `rail carrier' means a person, other than a 
        governmental authority, providing common carrier railroad 
        transportation for compensation subject to the jurisdiction of 
        the Board under chapter 105;
            ``(6) the term `segregated fixed guideway facility' means a 
        fixed guideway facility constructed within the railroad right-
        of-way of a rail carrier but physically separate from trackage, 
        including relocated trackage, within the right-of-way used by a 
        rail carrier for freight transportation purposes; and
            ``(7) the term `trackage' means a railroad line of a rail 
        carrier, including a spur, industrial, team, switching, side, 
        yard, or station track, and a facility of a rail carrier.
``Sec. 28502. Surface Transportation Board mediation of trackage use 
              requests
    ``If, after a reasonable period of negotiation, a public 
transportation authority cannot reach agreement with a rail carrier to 
use trackage of, and have related services provided by, the rail 
carrier for purposes of fixed guideway transportation, the public 
transportation authority or the rail carrier may apply to the Board for 
nonbinding mediation. The Board shall conduct the nonbinding mediation 
in accordance with the mediation process of section 1109.4 of title 49, 
Code of Federal Regulations, as in effect on the date of enactment of 
this section.
``Sec. 28503. Surface Transportation Board mediation of rights-of-way 
              use requests
    ``If, after a reasonable period of negotiation, a public 
transportation authority cannot reach agreement with a rail carrier to 
acquire an interest in a railroad right-of-way for the construction and 
operation of a segregated fixed guideway facility, the public 
transportation authority or the rail carrier may apply to the Board for 
nonbinding mediation. The Board shall conduct the nonbinding mediation 
in accordance with the mediation process of section 1109.4 of title 49, 
Code of Federal Regulations, as in effect on the date of enactment of 
this section.
``Sec. 28504. Applicability of other laws
    ``Nothing in this chapter shall be construed to limit a rail 
transportation provider's right under section 28103(b) to enter into 
contracts that allocate financial responsibility for claims.
``Sec. 28505. Rules and regulations
    ``Not later than 180 days after the date of enactment of this 
section, the Board shall issue such rules and regulations as may be 
necessary to carry out this chapter.''.
    (b) Clerical Amendment.--The table of chapters of such subtitle is 
amended by adding after the item relating to chapter 283 the following:

``285. COMMUTER RAIL TRANSIT ENHANCEMENT....................   28501''.

                      PART 2--FEDERAL-AID HIGHWAYS

SEC. 8251. INCREASED FEDERAL SHARE FOR CMAQ PROJECTS.

    Section 120(c) of title 23, United States Code, is amended--
            (1) in the subsection heading by striking ``for Certain 
        Safety Projects'';
            (2) by striking ``The Federal share'' and inserting the 
        following:
            ``(1) Certain safety projects.--The Federal share''; and
            (3) by adding at the end the following:
            ``(2) CMAQ projects.--The Federal share payable on account 
        of a project or program carried out under section 149 with 
        funds obligated in fiscal year 2008 or 2009, or both, shall be 
        100 percent of the cost thereof.''.

SEC. 8252. DISTRIBUTION OF RESCISSIONS.

    (a) In General.--Any unobligated balances of amounts that are 
appropriated from the Highway Trust Fund for a fiscal year, and 
apportioned under chapter 1 of title 23, United States Code, before, 
on, or after the date of enactment of this Act and that are rescinded 
after such date of enactment shall be distributed within each State (as 
defined in section 101 of such title) among all programs for which 
funds are apportioned under such chapter for such fiscal year, to the 
extent sufficient funds remain available for obligation, in the ratio 
that the amount of funds apportioned for each program under such 
chapter for such fiscal year, bears to the amount of funds apportioned 
for all such programs under such chapter for such fiscal year.
    (b) Treatment of Transportation Enhancement Set-Aside and Funds 
Suballocated to Substate Areas.--Funds set aside under sections 
133(d)(2) and 133(d)(3) of title 23, United States Code, shall be 
treated as being apportioned under chapter 1 of such title for purposes 
of subsection (a).

SEC. 8253. SENSE OF CONGRESS REGARDING USE OF COMPLETE STREETS DESIGN 
              TECHNIQUES.

    It is the sense of Congress that in constructing new roadways or 
rehabilitating existing facilities, State and local governments should 
employ policies designed to accommodate all users, including motorists, 
pedestrians, cyclists, transit riders, and people of all ages and 
abilities, in order to--
            (1) serve all surface transportation users by creating a 
        more interconnected and intermodal system;
            (2) create more viable transportation options; and
            (3) facilitate the use of environmentally friendly options, 
        such as public transportation, walking, and bicycling.

            Subtitle C--Railroad and Pipeline Transportation

                           PART 1--RAILROADS

SEC. 8301. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT PILOT PROGRAM.

    (a) In General.--The Secretary of Transportation, in coordination 
with the Administrator of the Environmental Protection Agency, shall 
establish and carry out a pilot program for making grants to railroad 
carriers (as defined in section 20102 of title 49, United States Code) 
and State and local governments--
            (1) for assistance in purchasing hybrid locomotives, 
        including hybrid switch locomotives; and
            (2) to demonstrate the extent to which such locomotives 
        increase fuel economy, reduce emissions, and lower costs of 
        operation.
    (b) Limitation.--Notwithstanding subsection (a), no grant under 
this section may be used to fund the costs of emissions reductions that 
are mandated under Federal, State, or local law.
    (c) Grant Criteria.--In selecting applicants for grants under this 
section, the Secretary shall consider--
            (1) the level of energy efficiency that would be achieved 
        by the proposed project;
            (2) the extent to which the proposed project would assist 
        in commercial deployment of hybrid locomotive technologies;
            (3) the extent to which the proposed project complements 
        other private or governmental partnership efforts to improve 
        air quality or fuel efficiency in a particular area; and
            (4) the extent to which the applicant demonstrates 
        innovative strategies and a financial commitment to increasing 
        energy efficiency and reducing greenhouse gas emissions of its 
        railroad operations.
    (d) Competitive Grant Selection Process.--
            (1) Applications.--A railroad carrier or State or local 
        government seeking a grant under this section shall submit for 
        approval by the Secretary an application for the grant under 
        this section containing such information as the Secretary may 
        require to receive a grant under this section.
            (2) Competitive selection.--The Secretary shall conduct a 
        national solicitation for applications for grants under this 
        section and shall select grantees on a competitive basis.
    (e) Federal Share.--The Federal share of the cost of a project 
under this section shall not exceed 90 percent of the project cost.
    (f) Report.--Not later than 3 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report on the 
results of the pilot program carried out under this section.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $10,000,000 for each of the fiscal years 
2008 through 2011 to carry out this section. Such funds shall remain 
available until expended.

SEC. 8302. CAPITAL GRANTS FOR RAILROAD TRACK.

    (a) Amendment.--Chapter 223 of title 49, United States Code, is 
amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.
``Sec. 22301. Capital grants for railroad track
    ``(a) Establishment of Program.--
            ``(1) Establishment.--The Secretary of Transportation shall 
        establish a program of capital grants for the rehabilitation, 
        preservation, or improvement of railroad track (including 
        roadbed, bridges, and related track structures) of class II and 
        class III railroads. Such grants shall be for rehabilitating, 
        preserving, or improving track used primarily for freight 
        transportation to a standard ensuring that the track can be 
        operated safely and efficiently, including grants for 
        rehabilitating, preserving, or improving track to handle 
        286,000 pound railcars. Grants may be provided under this 
        chapter--
                    ``(A) directly to the class II or class III 
                railroad; or
                    ``(B) with the concurrence of the class II or class 
                III railroad, to a State or local government.
            ``(2) State cooperation.--Class II and class III railroad 
        applicants for a grant under this chapter are encouraged to 
        utilize the expertise and assistance of State transportation 
        agencies in applying for and administering such grants. State 
        transportation agencies are encouraged to provide such 
        expertise and assistance to such railroads.
            ``(3) Interim regulations.--Not later than December 31, 
        2007, the Secretary shall issue temporary regulations to 
        implement the program under this section. Subchapter II of 
        chapter 5 of title 5 does not apply to a temporary regulation 
        issued under this paragraph or to an amendment to such a 
        temporary regulation.
            ``(4) Final regulations.--Not later than October 1, 2008, 
        the Secretary shall issue final regulations to implement the 
        program under this section.
    ``(b) Maximum Federal Share.--The maximum Federal share for 
carrying out a project under this section shall be 80 percent of the 
project cost. The non-Federal share may be provided by any non-Federal 
source in cash, equipment, or supplies. Other in-kind contributions may 
be approved by the Secretary on a case-by-case basis consistent with 
this chapter.
    ``(c) Project Eligibility.--For a project to be eligible for 
assistance under this section the track must have been operated or 
owned by a class II or class III railroad as of the date of the 
enactment of this chapter.
    ``(d) Use of Funds.--Grants provided under this section shall be 
used to implement track capital projects as soon as possible. In no 
event shall grant funds be contractually obligated for a project later 
than the end of the third Federal fiscal year following the year in 
which the grant was awarded. Any funds not so obligated by the end of 
such fiscal year shall be returned to the Secretary for reallocation.
    ``(e) Employee Protection.--The Secretary shall require as a 
condition of any grant made under this section that the recipient 
railroad provide a fair arrangement at least as protective of the 
interests of employees who are affected by the project to be funded 
with the grant as the terms imposed under section 11326(a), as in 
effect on the date of the enactment of this chapter.
    ``(f) Labor Standards.--
            ``(1) Prevailing wages.--The Secretary shall ensure that 
        laborers and mechanics employed by contractors and 
        subcontractors in construction work financed by a grant made 
        under this section will be paid wages not less than those 
        prevailing on similar construction in the locality, as 
        determined by the Secretary of Labor under subchapter IV of 
        chapter 31 of title 40 (commonly known as the `Davis-Bacon 
        Act'). The Secretary shall make a grant under this section only 
        after being assured that required labor standards will be 
        maintained on the construction work.
            ``(2) Wage rates.--Wage rates in a collective bargaining 
        agreement negotiated under the Railway Labor Act (45 U.S.C. 151 
        et seq.) are deemed for purposes of this subsection to comply 
        with the subchapter IV of chapter 31 of title 40.
    ``(g) Study.--The Secretary shall conduct a study of the projects 
carried out with grant assistance under this section to determine the 
public interest benefits associated with the light density railroad 
networks in the States and their contribution to a multimodal 
transportation system. Not later than March 31, 2009, the Secretary 
shall report to Congress any recommendations the Secretary considers 
appropriate regarding the eligibility of light density rail networks 
for Federal infrastructure financing.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Transportation $250,000,000 for each 
of fiscal years 2008 through 2011 for carrying out this section.''.
    (b) Clerical Amendment.--The item relating to chapter 223 in the 
table of chapters of subtitle V of title 49, United States Code, is 
amended to read as follows:

``223. CAPITAL GRANTS FOR RAILROAD TRACK....................   22301''.

                           PART 2--PIPELINES

SEC. 8311. FEASIBILITY STUDIES.

    (a) In General.--The Secretary of Energy, in coordination with the 
Secretary of Transportation, shall conduct feasibility studies for the 
construction of pipeline dedicated to the transportation of ethanol.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report on such feasibility studies.
    (c) Study Factors.--Feasibility studies funded under this part 
shall include consideration of--
            (1) existing or potential barriers to the construction of 
        pipelines dedicated to the transportation of ethanol, including 
        technical, siting, financing, and regulatory barriers;
            (2) market risk, including throughput risk;
            (3) regulatory, financing, and siting options that would 
        mitigate such risk and help ensure the construction of 
        pipelines dedicated to the transportation of ethanol;
            (4) ensuring the safe transportation of ethanol and 
        preventive measures to ensure pipeline integrity; and
            (5) such other factors as the Secretary of Energy considers 
        appropriate.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this section 
$1,000,000 for each of the fiscal years 2008 and 2009, to remain 
available until expended.

                  Subtitle D--Maritime Transportation

                       PART 1--GENERAL PROVISIONS

SEC. 8401. SHORT SEA TRANSPORTATION INITIATIVE.

    (a) In General.--Title 46, United States Code, is amended by adding 
after chapter 555 the following:

                ``CHAPTER 556--SHORT SEA TRANSPORTATION

``Sec. 55601. Short sea transportation program.
``Sec. 55602. Cargo and shippers.
``Sec. 55603. Financing of short sea transportation projects.
``Sec. 55604. Interagency coordination.
``Sec. 55605. Research on short sea transportation.
``Sec. 55606. Short sea transportation defined.
``Sec. 55601. Short sea transportation program
    ``(a) Establishment.--The Secretary of Transportation shall 
establish a short sea transportation program and designate short sea 
transportation projects to be conducted under the program to mitigate 
landside congestion.
    ``(b) Program Elements.--The program shall encourage the use of 
short sea transportation through the development and expansion of--
            ``(1) documented vessels;
            ``(2) shipper utilization;
            ``(3) port and landside infrastructure; and
            ``(4) marine transportation strategies by State and local 
        governments.
    ``(c) Short Sea Transportation Routes.--The Secretary shall 
designate short sea transportation routes as extensions of the surface 
transportation system to focus public and private efforts to use the 
waterways to relieve landside congestion along coastal corridors. The 
Secretary may collect and disseminate data for the designation and 
delineation of short sea transportation routes.
    ``(d) Project Designation.--The Secretary may designate a project 
to be a short sea transportation project if the Secretary determines 
that the project may--
            ``(1) offer a waterborne alternative to available landside 
        transportation services using documented vessels; and
            ``(2) provide transportation services for passengers or 
        freight (or both) that may reduce congestion on landside 
        infrastructure using documented vessels.
    ``(e) Elements of Program.--For a short sea transportation project 
designated under this section, the Secretary of Transportation may--
            ``(1) promote the development of short sea transportation 
        services;
            ``(2) coordinate, with ports, State departments of 
        transportation, localities, other public agencies, and the 
        private sector and on the development of landside facilities 
        and infrastructure to support short sea transportation 
        services; and
            ``(3) develop performance measures for the short sea 
        transportation program.
    ``(f) Multistate, State and Regional Transportation Planning.--The 
Secretary, in consultation with Federal entities and State and local 
governments, shall develop strategies to encourage the use of short sea 
transportation for transportation of passengers and cargo. The 
Secretary shall--
            ``(1) assess the extent to which States and local 
        governments include short sea transportation and other marine 
        transportation solutions in their transportation planning;
            ``(2) encourage State departments of transportation to 
        develop strategies, where appropriate, to incorporate short sea 
        transportation, ferries, and other marine transportation 
        solutions for regional and interstate transport of freight and 
        passengers in their transportation planning; and
            ``(3) encourage groups of States and multi-State 
        transportation entities to determine how short sea 
        transportation can address congestion, bottlenecks, and other 
        interstate transportation challenges.
``Sec. 55602. Cargo and shippers
    ``(a) Memorandums of Agreement.--The Secretary of Transportation 
shall enter into memorandums of understanding with the heads of other 
Federal entities to transport federally owned or generated cargo using 
a short sea transportation project designated under section 55601 when 
practical or available.
    ``(b) Short-Term Incentives.--The Secretary shall consult shippers 
and other participants in transportation logistics and develop 
proposals for short-term incentives to encourage the use of short sea 
transportation.
``Sec. 55603. Financing of short sea transportation projects
    ``(a) Authority To Make Loan Guarantee.--The Secretary of 
Transportation, subject to the availability of appropriations, may make 
a loan guarantee for the financing of the construction, reconstruction, 
or reconditioning of a vessel that will be used for a short sea 
transportation project designated under section 55601.
    ``(b) Terms and Conditions.--In making a loan guarantee under this 
section, the Secretary shall use the authority, terms, and conditions 
that apply to a loan guarantee made under chapter 537.
    ``(c) General Limitations.--The total unpaid principal amount of 
obligations guaranteed under this chapter and outstanding at one time 
may not exceed $2,000,000,000.
    ``(d) Full Faith and Credit.--The full faith and credit of the 
United States Government is pledged to the payment of a guarantee made 
under this chapter, for both principal and interest, including interest 
(as may be provided for in the guarantee) accruing between the date of 
default under a guaranteed obligation and the date of payment in full 
of the guarantee.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated $25,000,000 to carry out this section for each of fiscal 
years 2008 through 2011.
``Sec. 55604. Interagency coordination
    ``The Secretary of Transportation shall establish a board to 
identify and seek solutions to impediments hindering effective use of 
short sea transportation. The board shall include representatives of 
the Environmental Protection Agency and other Federal, State, and local 
governmental entities and private sector entities.
``Sec. 55605. Research on short sea transportation
    ``The Secretary of Transportation, in consultation with the 
Administrator of the Environmental Protection Agency, may conduct 
research on short sea transportation, regarding--
            ``(1) the environmental and transportation benefits to be 
        derived from short sea transportation alternatives for other 
        forms of transportation;
            ``(2) technology, vessel design, and other improvements 
        that would reduce emissions, increase fuel economy, and lower 
        costs of short sea transportation and increase the efficiency 
        of intermodal transfers; and
            ``(3) identify and seek solutions to impediments to short 
        sea transportation projects designated under section 55601.
``Sec. 55606. Short sea transportation defined
    ``In this chapter, the term `short sea transportation' means the 
carriage by vessel of cargo--
            ``(1) that is--
                    ``(A) contained in intermodal cargo containers and 
                loaded by crane on the vessel; or
                    ``(B) loaded on the vessel by means of wheeled 
                technology; and
            ``(2) that is--
                    ``(A) loaded at a port in the United States and 
                unloaded at another port in the United States or a port 
                in Canada located in the Great Lakes Saint Lawrence 
                Seaway System; or
                    ``(B) loaded at a port in Canada located in the 
                Great Lakes Saint Lawrence Seaway System and unloaded 
                at a port in the United States.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
subtitle V of such title is amended by inserting after the item 
relating to chapter 555 the following:

``556. Short Sea Transportation.............................   55601''.
    (c) Regulations.--
            (1) Interim regulations.--Not later than December 31, 2007, 
        the Secretary of Transportation shall issue temporary 
        regulations to implement the program under this section. 
        Subchapter II of chapter 5 of title 5, United States Code, does 
        not apply to a temporary regulation issued under this paragraph 
        or to an amendment to such a temporary regulation.
            (2) Final regulations.--Not later than October 1, 2008, the 
        Secretary shall issue final regulations to implement the 
        program under this section.

SEC. 8402. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL CONSTRUCTION 
              FUND.

    (a) Definition of Qualified Vessel.--Section 53501 of title 46, 
United States Code, is amended--
            (1) in paragraph (5)(A)(iii) by striking ``or noncontiguous 
        domestic'' and inserting ``noncontiguous domestic, or short sea 
        transportation trade''; and
            (2) by inserting after paragraph (6) the following:
            ``(7) Short sea transportation trade.--The term `short sea 
        transportation trade' means the carriage by vessel of cargo--
                    ``(A) that is--
                            ``(i) contained in intermodal cargo 
                        containers and loaded by crane on the vessel; 
                        or
                            ``(ii) loaded on the vessel by means of 
                        wheeled technology; and
                    ``(B) that is--
                            ``(i) loaded at a port in the United States 
                        and unloaded at another port in the United 
                        States or a port in Canada located in the Great 
                        Lakes Saint Lawrence Seaway System; or
                            ``(ii) loaded at a port in Canada located 
                        in the Great Lakes Saint Lawrence Seaway System 
                        and unloaded at a port in the United States.''.
    (b) Allowable Purpose.--Section 53503(b) of such title is amended 
by striking ``or noncontiguous domestic trade'' and inserting 
``noncontiguous domestic, or short sea transportation trade''.

SEC. 8403. REPORT.

    Not later than one year after the date of enactment of this Act, 
the Secretary of Transportation, in consultation with the Administrator 
of the Environmental Protection Agency, shall submit to the Committee 
on Transportation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of the 
Senate a report on the short sea transportation program established 
under the amendments made by section 8401. The report shall include a 
description of the activities conducted under the program, and any 
recommendations for further legislative or administrative action that 
the Secretary considers appropriate.

                       PART 2--MARITIME POLLUTION

SEC. 8451. REFERENCES.

    Wherever in this part an amendment or repeal is expressed in terms 
of an amendment to or a repeal of a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of the Act to Prevent Pollution from Ships (33 U.S.C. 1901 et 
seq.).

SEC. 8452. DEFINITIONS.

    Section 2(a) (33 U.S.C. 1901(a)) is amended--
            (1) by redesignating paragraphs (1) through (12) as 
        paragraphs (2) through (13), respectively;
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) `Administrator' means the Administrator of the 
        Environmental Protection Agency.'';
            (3) in paragraph (5) (as so redesignated) by striking ``and 
        V'' and inserting ``V, and VI'';
            (4) in paragraph (6) (as so redesignated) by striking 
        ```discharge' and `garbage' and `harmful substance' and 
        `incident''' and inserting ```discharge', `emission', 
        `garbage', `harmful substance', and `incident'''; and
            (5) by redesignating paragraphs (7) through (13) (as 
        redesignated) as paragraphs (8) through (14), respectively, and 
        inserting after paragraph (6) (as redesignated) the following:
            ``(7) `navigable waters' includes the territorial sea of 
        the United States (as defined in Presidential Proclamation 5928 
        of December 27, 1988) and the internal waters of the United 
        States;''.

SEC. 8453. APPLICABILITY.

    Section 3 (33 U.S.C. 1902) is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) by striking the period at the end of paragraph 
                (4) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) with respect to Annex VI to the Convention, and other 
        than with respect to a ship referred to in paragraph (1)--
                    ``(A) to a ship that is in a port, shipyard, 
                offshore terminal, or the internal waters of the United 
                States;
                    ``(B) to a ship that is bound for, or departing 
                from, a port, shipyard, offshore terminal, or the 
                internal waters of the United States, and is in--
                            ``(i) the navigable waters of the United 
                        States;
                            ``(ii) an emission control area designated 
                        pursuant to section 4; or
                            ``(iii) any other area that the 
                        Administrator, in consultation with the 
                        Secretary and each State that is adjacent to 
                        any part of the proposed area, has designated 
                        by order as being an area from which emissions 
                        from ships are of concern with respect to 
                        protection of public health, welfare, or the 
                        environment;
                    ``(C) to a ship that is entitled to fly the flag 
                of, or operating under the authority of, a party to 
                Annex VI, and is in--
                            ``(i) the navigable waters of the United 
                        States;
                            ``(ii) an emission control area designated 
                        under section 4; or
                            ``(iii) any other area that the 
                        Administrator, in consultation with the 
                        Secretary and each State that is adjacent to 
                        any part of the proposed area, has designated 
                        by order as being an area from which emissions 
                        from ships are of concern with respect to 
                        protection of public health, welfare, or the 
                        environment; and
                    ``(D) to the extent consistent with international 
                law, to any other ship that is in--
                            ``(i) the exclusive economic zone of the 
                        United States;
                            ``(ii) the navigable waters of the United 
                        States;
                            ``(iii) an emission control area designated 
                        under section 4; or
                            ``(iv) any other area that the 
                        Administrator, in consultation with the 
                        Secretary and each State in which any part of 
                        the area is located, has designated by order as 
                        being an area from which emissions from ships 
                        are of concern with respect to protection of 
                        public health, welfare, or the environment.'';
            (2) in subsection (b)--
                    (A) in paragraph (1) by striking ``paragraph (2)'' 
                and inserting ``paragraphs (2) and (3)''; and
                    (B) by adding at the end the following:
    ``(3) With respect to Annex VI the Administrator, or the Secretary, 
as relevant to their authorities pursuant to this Act, may determine 
that some or all of the requirements under this Act shall apply to one 
or more classes of public vessels, except that such a determination by 
the Administrator shall have no effect unless the head of the 
Department or agency under which the vessels operate concurs in the 
determination. This paragraph does not apply during time of war or 
during a declared national emergency.'';
            (3) by redesignating subsections (c) through (g) as 
        subsections (d) through (h), respectively;
            (4) by inserting after subsection (b) the following:
    ``(c) Application to Other Persons.--This Act shall apply to all 
persons to the extent necessary to ensure compliance with Annex VI to 
the Convention.''; and
            (5) in subsection (e), as redesignated--
                    (A) by inserting ``or the Administrator, consistent 
                with section 4 of this Act,'' after ``Secretary'';
                    (B) by striking ``of section (3)'' and inserting 
                ``of this section''; and
                    (C) by striking ``Protocol, including regulations 
                conforming to and giving effect to the requirements of 
                Annex V'' and inserting ``Protocol (or the applicable 
                Annex), including regulations conforming to and giving 
                effect to the requirements of Annex V and Annex VI''.

SEC. 8454. ADMINISTRATION AND ENFORCEMENT.

    Section 4 (33 U.S.C. 1903) is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively;
            (2) by inserting after subsection (a) the following:
    ``(b) Duty of the Administrator.--In addition to other duties 
specified in this Act, the Administrator and the Secretary, 
respectively, shall have the following duties and authorities:
            ``(1) The Administrator shall, and no other person may, 
        issue Engine International Air Pollution Prevention 
        certificates in accordance with Annex VI and the International 
        Maritime Organization's Technical Code on Control of Emissions 
        of Nitrogen Oxides from Marine Diesel Engines, on behalf of the 
        United States for a vessel of the United States as that term is 
        defined in section 116 of title 46, United States Code. The 
        issuance of Engine International Air Pollution Prevention 
        certificates shall be consistent with any applicable 
        requirements of the Clean Air Act (42 U.S.C. 7401 et seq.) or 
        regulations prescribed under that Act.
            ``(2) The Administrator shall have authority to administer 
        regulations 12, 13, 14, 15, 16, 17, 18, and 19 of Annex VI to 
        the Convention.
            ``(3) The Administrator shall, only as specified in section 
        8(f), have authority to enforce Annex VI of the Convention.''; 
        and
            (3) in subsection (c), as redesignated--
                    (A) by redesignating paragraph (2) as paragraph 
                (4);
                    (B) by inserting after paragraph (1) the following:
    ``(2) In addition to the authority the Secretary has to prescribe 
regulations under this Act, the Administrator shall also prescribe any 
necessary or desired regulations to carry out the provisions of 
regulations 12, 13, 14, 15, 16, 17, 18, and 19 of Annex VI to the 
Convention.
    ``(3) In prescribing any regulations under this section, the 
Secretary and the Administrator shall consult with each other, and with 
respect to regulation 19, with the Secretary of the Interior.''; and
                    (C) by adding at the end the following:
    ``(5) No standard issued by any person or Federal authority, with 
respect to emissions from tank vessels subject to regulation 15 of 
Annex VI to the Convention, shall be effective until 6 months after the 
required notification to the International Maritime Organization by the 
Secretary.''.

SEC. 8455. CERTIFICATES.

    Section 5 (33 U.S.C. 1904) is amended--
            (1) in subsection (a) by striking ``The Secretary'' and 
        inserting ``Except as provided in section 4(b)(1), the 
        Secretary'';
            (2) in subsection (b) by striking ``Secretary under the 
        authority of the MARPOL protocol.'' and inserting ``Secretary 
        or the Administrator under the authority of this Act.''; and
            (3) in subsection (e) by striking ``environment.'' and 
        inserting ``environment or the public health and welfare.''.

SEC. 8456. RECEPTION FACILITIES.

    Section 6 (33 U.S.C. 1905) is amended--
            (1) in subsection (a) by adding at the end the following:
    ``(3) The Secretary and the Administrator, after consulting with 
appropriate Federal agencies, shall jointly prescribe regulations 
setting criteria for determining the adequacy of reception facilities 
for receiving ozone depleting substances, equipment containing such 
substances, and exhaust gas cleaning residues at a port or terminal, 
and stating any additional measures and requirements as are appropriate 
to ensure such adequacy. Persons in charge of ports and terminals shall 
provide reception facilities, or ensure that reception facilities are 
available, in accordance with those regulations. The Secretary and the 
Administrator may jointly prescribe regulations to certify, and may 
issue certificates to the effect, that a port's or terminal's 
facilities for receiving ozone depleting substances, equipment 
containing such substances, and exhaust gas cleaning residues from 
ships are adequate.'';
            (2) in subsection (b) by inserting ``or the Administrator'' 
        after ``Secretary'';
            (3) in subsection (e) by striking paragraph (2) and 
        inserting the following:
    ``(2) The Secretary may deny the entry of a ship to a port or 
terminal required by the MARPOL Protocol, this Act, or regulations 
prescribed under this section relating to the provision of adequate 
reception facilities for garbage, ozone depleting substances, equipment 
containing those substances, or exhaust gas cleaning residues, if the 
port or terminal is not in compliance with the MARPOL Protocol, this 
Act, or those regulations.'';
            (4) in subsection (f)(1) by striking ``Secretary is'' and 
        inserting ``Secretary and the Administrator are''; and
            (5) in subsection (f)(2) by striking ``(A)''.

SEC. 8457. INSPECTIONS.

    Section 8(f) (33 U.S.C. 1907(f)) is amended to read as follows:
    ``(f)(1) The Secretary may inspect a ship to which this Act applies 
as provided under section 3(a)(5), to verify whether the ship is in 
compliance with Annex VI to the Convention and this Act.
    ``(2) If an inspection under this subsection or any other 
information indicates that a violation has occurred, the Secretary, or 
the Administrator in a matter referred by the Secretary, may undertake 
enforcement action under this section.
    ``(3) Notwithstanding subsection (b) and paragraph (2) of this 
subsection, the Administrator shall have all of the authorities of the 
Secretary, as specified in subsection (b) of this section, for the 
purposes of enforcing regulations 17 and 18 of Annex VI to the 
Convention to the extent that shoreside violations are the subject of 
the action and in any other matter referred to the Administrator by the 
Secretary.''.

SEC. 8458. AMENDMENTS TO THE PROTOCOL.

    Section 10(b) (33 U.S.C. 1909(b)) is amended by inserting ``or the 
Administrator as provided for in this Act,'' after ``Secretary,''.

SEC. 8459. PENALTIES.

    Section 9 (33 U.S.C. 1908) is amended--
            (1) by striking ``Protocol,,'' each place it appears and 
        inserting ``Protocol,'';
            (2) in subsection (b) by inserting ``, or the Administrator 
        as provided for in this Act'' after ``Secretary'' the first 
        place it appears;
            (3) in subsection (b)(2), by inserting ``, or the 
        Administrator as provided for in this Act,'' after 
        ``Secretary'';
            (4) in the matter after paragraph (2) of subsection (b)--
                    (A) by inserting ``, or the Administrator as 
                provided for in this Act'' after ``Secretary'' the 
                first place it appears; and
                    (B) by inserting ``, or the Administrator as 
                provided for in this Act,'' after ``Secretary'' the 
                second and third places it appears;
            (5) in subsection (c) by inserting ``, or the Administrator 
        as provided for in this Act,'' after ``Secretary'' each place 
        it appears; and
            (6) in subsection (f) by inserting ``, or the Administrator 
        as provided for in this Act'' after ``Secretary'' the first 
        place appears.

SEC. 8460. EFFECT ON OTHER LAWS.

    Section 15 (33 U.S.C. 1911) is amended to read as follows:

``SEC. 15. EFFECT ON OTHER LAWS.

    ``Authorities, requirements, and remedies of this Act supplement 
and neither amend nor repeal any other authorities, requirements, or 
remedies conferred by any other provision of law. Nothing in this Act 
shall limit, deny, amend, modify, or repeal any other authority, 
requirement, or remedy available to the United States or any other 
person, except as expressly provided in this Act.''.

                          Subtitle E--Aviation

SEC. 8501. ENVIRONMENTAL MITIGATION PILOT PROGRAM.

    (a) Establishment.--The Secretary of Transportation, in 
coordination with the Administrator of the Environmental Protection 
Agency, shall establish a pilot program to carry out not more than 6 
environmental mitigation demonstration projects at public-use airports.
    (b) Grants.--In implementing the program, the Secretary may make a 
grant to the sponsor of a public-use airport from funds apportioned 
under section 47117(e)(1)(A) of title 49, United States Code, to carry 
out an environmental mitigation demonstration project to measurably 
reduce or mitigate aviation impacts on noise, air quality, or water 
quality in the vicinity of the airport.
    (c) Eligibility for Passenger Facility Fees.--An environmental 
mitigation demonstration project that receives funds made available 
under this section may be considered an eligible airport-related 
project for purposes of section 40117 of such title.
    (d) Selection Criteria.--In selecting among applicants for 
participation in the program, the Secretary shall give priority 
consideration to applicants proposing to carry out environmental 
mitigation demonstration projects that will--
            (1) achieve the greatest reductions in aircraft noise, 
        airport emissions, or airport water quality impacts either on 
        an absolute basis or on a per dollar of funds expended basis; 
        and
            (2) be implemented by an eligible consortium.
    (e) Federal Share.--Notwithstanding any provision of subchapter I 
of chapter 471 of such title, the United States Government share of 
allowable project costs of an environmental mitigation demonstration 
project carried out under this section shall be 50 percent.
    (f) Maximum Amount.--The Secretary may not make grants for a single 
environmental mitigation demonstration project under this section in a 
total amount that exceeds $2,500,000.
    (g) Publication of Information.--The Secretary may develop and 
publish information on the results of environmental mitigation 
demonstration projects carried out under this section, including 
information identifying best practices for reducing or mitigating 
aviation impacts on noise, air quality, or water quality in the 
vicinity of airports.
    (h) Definitions.--In this section, the following definitions apply:
            (1) Eligible consortium.--The term ``eligible consortium'' 
        means a consortium of 2 or more of the following entities:
                    (A) A business incorporated in the United States.
                    (B) A public or private educational or research 
                organization located in the United States.
                    (C) An entity of a State or local government.
                    (D) A Federal laboratory.
            (2) Environmental mitigation demonstration project.--The 
        term ``environmental mitigation demonstration project'' means a 
        project that--
                    (A) demonstrates at a public-use airport 
                environmental mitigation techniques or technologies 
                with associated benefits, which have already been 
                proven in laboratory demonstrations;
                    (B) utilizes methods for efficient adaptation or 
                integration of innovative concepts to airport 
                operations; and
                    (C) demonstrates whether a technique or technology 
                for environmental mitigation identified in research 
                is--
                            (i) practical to implement at or near 
                        multiple public-use airports; and
                            (ii) capable of reducing noise, airport 
                        emissions, greenhouse gas emissions, or water 
                        quality impacts in measurably significant 
                        amounts.

                      Subtitle F--Public Buildings

                PART 1--GENERAL SERVICES ADMINISTRATION

SEC. 8601. PUBLIC BUILDING ENERGY EFFICIENT AND RENEWABLE ENERGY 
              SYSTEMS.

    (a) Estimate of Energy Performance in Prospectus.--Section 3307(b) 
of title 40, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (6) the following:
            ``(7) with respect to any prospectus for the construction, 
        alteration, or acquisition of any building or space to be 
        leased, an estimate of the future energy performance of the 
        building or space and a specific description of the use of 
        energy efficient and renewable energy systems, including 
        photovoltaic systems, in carrying out the project.''.
    (b) Minimum Performance Requirements for Leased Space.--Section 
3307 of such of title is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following:
    ``(f) Minimum Performance Requirements for Leased Space.--With 
respect to space to be leased, the Administrator shall include, to the 
maximum extent practicable, minimum performance requirements requiring 
energy efficiency and the use of renewable energy.''.
    (c) Use of Energy Efficient Lighting Fixtures and Bulbs.--
            (1) In general.--Chapter 33 of such title is amended--
                    (A) by redesignating sections 3313, 3314, and 3315 
                as sections 3315, 3316, and 3317, respectively; and
                    (B) by inserting after section 3312 the following:
``Sec. 3313. Use of energy efficient lighting fixtures and bulbs
    ``(a) Construction, Alteration, and Acquisition of Public 
Buildings.--Each public building constructed, altered, or acquired by 
the Administrator of General Services shall be equipped, to the maximum 
extent feasible as determined by the Administrator, with lighting 
fixtures and bulbs that are energy efficient.
    ``(b) Maintenance of Public Buildings.--Each lighting fixture or 
bulb that is replaced by the Administrator in the normal course of 
maintenance of public buildings shall be replaced, to the maximum 
extent feasible, with a lighting fixture or bulb that is energy 
efficient.
    ``(c) Considerations.--In making a determination under this section 
concerning the feasibility of installing a lighting fixture or bulb 
that is energy efficient, the Administrator shall consider--
            ``(1) the life-cycle cost effectiveness of the fixture or 
        bulb;
            ``(2) the compatibility of the fixture or bulb with 
        existing equipment;
            ``(3) whether use of the fixture or bulb could result in 
        interference with productivity;
            ``(4) the aesthetics relating to use of the fixture or 
        bulb; and
            ``(5) such other factors as the Administrator determines 
        appropriate.
    ``(d) Energy Star.--A lighting fixture or bulb shall be treated as 
being energy efficient for purposes of this section if--
            ``(1) the fixture or bulb is certified under the Energy 
        Star program established by section 324A of the Energy Policy 
        and Conservation Act (42 U.S.C. 6294a); or
            ``(2) the Administrator has otherwise determined that the 
        fixture or bulb is energy efficient.
    ``(e) Applicability of Buy American Act.--Acquisitions carried out 
pursuant to this section shall be subject to the requirements of the 
Buy American Act (41 U.S.C. 10c et seq.).
    ``(f) Effective Date.--The requirements of subsections (a) and (b) 
shall take effect one year after the date of enactment of this 
subsection.''.
            (2) Clerical amendment.--The analysis for such chapter is 
        amended by striking the items relating to sections 3313, 3314, 
        and 3315 and inserting the following:

``3313. Use of energy efficient lighting fixtures and bulbs.
``3314. Maximum period for utility services contracts.
``3315. Delegation.
``3316. Report to Congress.
``3317. Certain authority not affected.''.
    (d) Maximum Period for Utility Service Contracts.--Such chapter is 
further amended by inserting after section 3313 (as inserted by 
subsection (c)(1) of this section) the following:
``Sec. 3314. Maximum period for utility service contracts
    ``Notwithstanding section 501(b)(1)(B), the Administrator of 
General Services may contract for public utility services for a period 
of not more than 30 years if cost effective and necessary to promote 
the use of energy efficient and renewable energy systems, including 
photovoltaic systems.''.
    (e) Evaluation Factor.--Section 3310 of such title is amended--
            (1) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (4), (5), and (6), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) shall include in the solicitation for any lease 
        requiring a prospectus under section 3307 an evaluation factor 
        considering the extent to which the offeror will promote energy 
        efficiency and the use of renewable energy;''.

SEC. 8602. PUBLIC BUILDING LIFE-CYCLE COSTS.

    Section 544(a)(1) of the National Energy Conservation Policy Act 
(42 U.S.C. 8254(a)(1)) is amended by striking ``25'' and inserting 
``40''.

SEC. 8603. INSTALLATION OF PHOTOVOLTAIC SYSTEM AT DEPARTMENT OF ENERGY 
              HEADQUARTERS BUILDING.

    (a) In General.--The Administrator of General Services shall 
install a photovoltaic system, as set forth in the Sun Wall Design 
Project, for the headquarters building of the Department of Energy 
located at 1000 Independence Avenue, SW., Washington, DC, commonly 
known as the Forrestal Building.
    (b) Funding.--There shall be available from the Federal Buildings 
Fund established by section 592 of title 40, United States Code, 
$30,000,000 to carry out this section. Such sums shall be derived from 
the unobligated balance of amounts made available from the Fund for 
fiscal year 2007, and prior fiscal years, for repairs and alternations 
and other activities (excluding amounts made available for the energy 
program). Such sums shall remain available until expended.
    (c) Obligation of Funds.--None of the funds made available pursuant 
to subsection (b) may be obligated prior to September 30, 2007.

                          PART 2--COAST GUARD

SEC. 8631. PROHIBITION ON INCANDESCENT LAMPS BY COAST GUARD.

    (a) Prohibition.--Except as provided by subsection (b), on and 
after January 1, 2009, a general service incandescent lamp shall not be 
purchased or installed in a Coast Guard facility by or on behalf of the 
Coast Guard.
    (b) Exception.--A general service incandescent lamp may be 
purchased, installed, and used in a Coast Guard facility whenever the 
application of a general service incandescent lamp is--
            (1) necessary due to purpose or design, including medical, 
        security, and industrial applications;
            (2) reasonable due to the architectural or historical value 
        of a light fixture installed before January 1, 2009; or
            (3) the Commandant of the Coast Guard determines that 
        operational requirements necessitate the use of a general 
        service incandescent lamp.
    (c) Limitation.--In this section, the term ``facility'' does not 
include a vessel or aircraft of the Coast Guard.

                    PART 3--ARCHITECT OF THE CAPITOL

SEC. 8651. CAPITOL COMPLEX PHOTOVOLTAIC ROOF FEASIBILITY STUDY.

    (a) Study.--The Architect of the Capitol may perform a feasibility 
study regarding construction of a photovoltaic roof for the Rayburn 
House Office Building.
    (b) Report.--Not later than 6 months after the date of enactment of 
this Act, the Architect of the Capitol shall transmit to the Committee 
on Transportation and Infrastructure of the House of Representatives a 
report on the results of the feasibility study and recommendations 
regarding construction of a photovoltaic roof for the building referred 
to in subsection (a).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2008.

SEC. 8652. CAPITOL COMPLEX E-85 REFUELING STATION.

    (a) Construction.--The Architect of the Capitol may construct a 
fuel tank and pumping system for E-85 fuel at or within close proximity 
to the Capitol Grounds Fuel Station.
    (b) Use.--The E-85 fuel tank and pumping system shall be available 
for use by all legislative branch vehicles capable of operating with E-
85 fuel, subject to such other legislative branch agencies reimbursing 
the Architect of the Capitol for the costs of E-85 fuel used by such 
other legislative branch vehicles.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2008.

SEC. 8653. ENERGY AND ENVIRONMENTAL MEASURES IN CAPITOL COMPLEX MASTER 
              PLAN.

    (a) In General.--To the maximum extent practicable, the Architect 
of the Capitol shall include energy efficiency measures, climate change 
mitigation measures, and other appropriate environmental measures in 
the Capitol Complex Master Plan.
    (b) Report.--Not later than 6 months after the date of enactment of 
this Act, the Architect of the Capitol shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Rules of the Senate a report on the energy efficiency 
measures, climate change mitigation measures, and other appropriate 
environmental measures included in the Capitol Complex Master Plan 
pursuant to subsection (a).

SEC. 8654. CAPITOL POWER PLANT.

    (a) In General.--For the purpose of reducing carbon dioxide 
emissions, the Architect of the Capitol shall install technologies for 
the capture and storage or use of carbon dioxide emitted from the 
Capitol Power plant as a result of burning coal.
    (b) Capitol Power Plant Defined.--In this section, the term 
``Capitol power plant'' means the power plant constructed in the 
vicinity of the Capitol Complex in the District of Columbia pursuant to 
the Act of April 28, 1904 (33 Stat. 479, chapter 1762), and designated 
under the Act of March 4, 1911 (2 U.S.C. 2162).

   Subtitle G--Water Resources and Emergency Management Preparedness

                        PART 1--WATER RESOURCES

SEC. 8701. POLICY OF THE UNITED STATES.

    It is the policy of the United States that all Federal water 
resources projects--
            (1) reflect national priorities for flood damage reduction, 
        navigation, ecosystem restoration, and hazard mitigation and 
        consider the future impacts of increased hurricanes, droughts, 
        and other climate change-related weather events;
            (2) avoid the unwise use of floodplains, minimize 
        vulnerabilities in any case in which a floodplain must be used, 
        protect and restore the extent and functions of natural 
        systems, and mitigate any unavoidable damage to aquatic natural 
        system; and
            (3) to the maximum extent possible, avoid impacts to 
        wetlands, which create natural buffers, help filter water, 
        serve as recharge areas for aquifers, reduce floods and 
        erosion, and provide valuable plant and animal habitat.

SEC. 8702. 21ST CENTURY WATER COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the 21st Century Water Commission (in this section referred to as 
the ``Commission'').
    (b) Duties.--The duties of the Commission shall be to--
            (1) use existing water assessments and conduct such 
        additional studies and assessments as may be necessary to 
        project--
                    (A) future water supply and demand;
                    (B) impacts of climate change to our Nation's flood 
                risk and water availability; and
                    (C) associated impacts of climate change on water 
                quality;
            (2)(A) study current water management programs of Federal, 
        interstate, State, and local agencies and private sector 
        entities directed at increasing water supplies and improving 
        the availability, reliability, and quality of freshwater 
        resources; and
            (B) evaluate such programs' hazard mitigation strategies 
        and contingency planning in light of climate change impacts, 
        including sea level rise, flooding, and droughts; and
            (3) consult with representatives of such agencies and 
        entities to develop recommendations, consistent with laws, 
        treaties, decrees, and interstate compacts, for a comprehensive 
        water strategy to--
                    (A) recognize the primary role of States in 
                adjudicating, administering, and regulating water 
                rights and water uses;
                    (B) identify incentives intended to ensure an 
                adequate and dependable supply of water to meet the 
                needs of the United States for the next 50 years, 
                including the future impacts of climate change on water 
                supply and quality;
                    (C) eliminate duplication and conflict among 
                Federal governmental programs;
                    (D) consider all available technologies (including 
                climate change predictions, advanced modeling and 
                mapping of wetlands, floodplains, and other critical 
                areas) and other methods to optimize water supply 
                reliability, availability, and quality, while 
                safeguarding and enhancing the environment and planning 
                for the potential impacts of climate change on water 
                quality, water supply, flood and storm damage 
                reduction, and ecosystem health;
                    (E) recommend means of capturing excess water and 
                flood water for conservation and use in the event of a 
                drought;
                    (F) identify adaptation techniques, or further 
                research needs of adaptation techniques, for 
                effectively conserving freshwater and coastal systems 
                as they respond to climate change;
                    (G) suggest financing options, incentives, and 
                strategies for development of comprehensive water 
                management plans, holistically designed water resources 
                projects, conservation of existing water resources 
                infrastructure (except drinking water infrastructure) 
                and to increase the use of nonstructural elements 
                (including green infrastructure and low impact 
                development techniques);
                    (H) suggest strategies for avoiding increased 
                mandates on State and local governments;
                    (I) suggest strategies for using best available 
                climate science in projections of future flood and 
                drought risk, and for developing hazard mitigation 
                strategies to protect water quality, in extreme weather 
                conditions caused by climate change;
                    (J) identify policies that encourage low impact 
                development, especially in areas near high priority 
                aquatic systems;
                    (K) suggest strategies for encouraging the use of, 
                and reducing biases against, nonstructural elements 
                (including green infrastructure and low impact 
                development techniques) when managing stormwater, 
                including features that--
                            (i) preserve and restore natural processes, 
                        landforms (such as floodplains), natural 
                        vegetated stream side buffers, wetlands, or 
                        other topographical features that can slow, 
                        filter, and naturally store stormwater runoff 
                        and flood waters for future water supply and 
                        recharge of natural aquifers;
                            (ii) utilize natural design techniques that 
                        infiltrate, filter, store, evaporate, and 
                        detain water close to its source; or
                            (iii) minimize the use of impervious 
                        surfaces in order to slow or infiltrate 
                        precipitation;
                    (L) suggest strategies for addressing increased 
                sewage overflow problems due to changing storm dynamics 
                and the impact of aging stormwater and wastewater 
                infrastructure, population growth, and urban sprawl;
                    (M) promote environmental restoration projects that 
                reestablish natural processes; and
                    (N) identify opportunities to promote existing or 
                create regional planning, including opportunities to 
                integrate climate change into water infrastructure and 
                environmental conservation planning.
    (c) Membership.--
            (1) Number and appointment.--The Commission shall be 
        composed of 8 members who shall be appointed, not later than 90 
        days after the date of enactment of this Act, as follows:
                    (A) 2 members appointed by the President.
                    (B) 2 members appointed by the Speaker of the House 
                of Representatives from a list of 4 individuals--
                            (i) 2 nominated for that appointment by the 
                        chairman of the Committee on Transportation and 
                        Infrastructure of the House of Representatives; 
                        and
                            (ii) 2 nominated for that appointment by 
                        the chairman of the Committee Natural Resources 
                        of the House of Representatives.
                    (C) 2 members appointed by the majority leader of 
                the Senate from a list of 4 individuals--
                            (i) 2 nominated for that appointment by the 
                        chairman of the Committee on Environment and 
                        Public Works of the Senate; and
                            (ii) 2 nominated for that appointment by 
                        the chairman of the Committee on Energy and 
                        Natural Resources of the Senate.
                    (D) One member appointed by the minority leader of 
                the House of Representatives from a list of 2 
                individuals--
                            (i) one nominated for that appointment by 
                        the ranking member of the Committee on 
                        Transportation and Infrastructure of the House 
                        of Representatives; and
                            (ii) one nominated for that appointment by 
                        the ranking member of the Committee on Natural 
                        Resources of the Senate.
                    (E) 1 member appointed by the minority leader of 
                the Senate from a list of 2 individuals--
                            (i) one nominated for that appointment by 
                        the ranking member of the Committee on 
                        Environment and Public Works of the Senate; and
                            (ii) one nominated for that appointment by 
                        the ranking member of the Committee on Energy 
                        and Natural Resources of the Senate.
            (2) Qualifications.--
                    (A) Recognized standing and distinction.--Members 
                shall be appointed to the Commission from among 
                individuals who are of recognized standing and 
                distinction in water policy issues.
                    (B) Limitation.--A person while serving as a member 
                of the Commission may not hold any other position as an 
                officer or employee of the United States, except as a 
                retired officer or retired civilian employee of the 
                United States.
                    (C) Other considerations.--In appointing members of 
                the Commission, every effort shall be made to ensure 
                that the members represent a broad cross section of 
                regional and geographical perspectives in the United 
                States.
            (3) Chairperson.--The Chairperson of the Commission shall 
        be elected by a majority vote of the members of the Commission.
            (4) Terms.--Members of the Commission shall serve for the 
        life of the Commission.
            (5) Vacancies.--A vacancy on the Commission shall not 
        affect its operation and shall be filled in the manner in which 
        the original appointment was made.
            (6) Compensation and travel expenses.--Members of the 
        Commission shall serve without compensation; except that 
        members shall receive travel expenses, including per diem in 
        lieu of subsistence, in accordance with applicable provisions 
        under subchapter I of chapter 57, United States Code.
    (d) Meetings and Quorum.--
            (1) Meetings.--The Commission shall hold its first meeting 
        not later than 60 days after the date on which all original 
        members are appointed under subsection (c) and shall hold 
        additional meetings at the call of the Chairperson or a 
        majority of its members.
            (2) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum for the transaction of business.
    (e) Director and Staff.--
            (1) Director.--The Commission shall have a Director who 
        shall be appointed by the Speaker of the House of 
        Representatives and the majority leader of the Senate, in 
        consultation with the minority leader of the House of 
        Representatives, the chairmen of the Committees on Resources 
        and Transportation and Infrastructure of the House of 
        Representatives, the minority leader of the Senate, and the 
        chairmen of the Committee on Energy and Natural Resources and 
        Environment and Public Works of the Senate.
            (2) Applicability of certain civil service laws.--The 
        Director and staff of the Commission may be appointed without 
        regard to the provisions of title 5, United States Code, 
        governing appointments in the competitive service, and may be 
        paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of that title relating to 
        classification and General Schedule pay rates; except that an 
        individual so appointed may not receive pay in excess of the 
        annual rate of basic pay for GS-15 of the General Schedule.
    (f) Hearings.--
            (1) Minimum number.--The Commission shall hold no fewer 
        than 10 hearings during the life of the Commission.
            (2) In conjunction with meetings.--Hearings may be held in 
        conjunction with meetings of the Commission.
            (3) Testimony and evidence.--The Commission may take such 
        testimony and receive such evidence as the Commission considers 
        appropriate to carry out this section.
            (4) Specified.--At least one hearing shall be held in 
        Washington, District of Columbia, for the purpose of taking 
        testimony of representatives of Federal agencies, national 
        organizations, and Members of Congress. At least one hearing 
        shall focus on potential water resource issues relating to 
        climate change and how to mitigate the harms of climate change-
        related weather events.
            (5) Nonspecified.--Hearings, other than those referred to 
        in paragraph (4), shall be scheduled in distinct geographical 
        regions of the United States. In conducting such hearings, the 
        Commission should seek to ensure testimony from individuals 
        with a diversity of experiences, including those who work on 
        water issues at all levels of government and in the private 
        sector.
    (g) Information and Support From Federal Agencies.--Upon request of 
the Commission, the head of a Federal department or agency shall--
            (1) provide to the Commission, within 30 days of the 
        request, such information as the Commission considers necessary 
        to carry out this section; and
            (2) detail to temporary duty with the Commission on a 
        reimbursable basis such personnel as the Commission considers 
        necessary to carry out this section.
    (h) Interim Reports.--Not later than one year after the date of the 
first meeting of the Commission, and every year thereafter, the 
Commission shall submit an interim report containing a detailed summary 
of its progress, including meetings held and hearings conducted before 
the date of the report, to--
            (1) the President; and
            (2) Congress.
    (i) Final Report.--As soon as practicable, but not later than 5 
years after the date of the first meeting of the Commission, the 
Commission shall submit a final report containing a detailed statement 
of the findings and conclusions of the Commission and recommendations 
for legislation and other policies to implement such findings and 
conclusions to--
            (1) the President;
            (2) the Committee on Natural Resources and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives; and
            (3) the Committee on Energy and Natural Resources and the 
        Committee on the Environment and Public Works of the Senate.
    (j) Termination.--The Commission shall terminate not later than 30 
days after the date on which the Commission transmits a final report 
under subsection (h)(1).
    (k) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App. 1 et seq.) shall not apply to the 
Commission.
    (l) Authorization of Appropriations.--There is authorized to be 
appropriated $12,000,000 to carry out this section.

SEC. 8703. STUDY OF POTENTIAL IMPACTS OF CLIMATE CHANGE ON WATER 
              RESOURCES AND WATER QUALITY.

    (a) National Academy Study.--The Administrator of the Environmental 
Protection Agency shall enter into an arrangement with the National 
Academy of Sciences under which the Academy shall--
            (1) produce a 2-part study that will consist of--
                    (A) a study that will identify the potential 
                impacts of climate change on the Nation's watersheds 
                and water resources, including hydrological and 
                ecological impacts;
                    (B) a study that will identify the potential 
                impacts of climate change on water quality, including 
                the extent to which Federal and State efforts under the 
                Federal Water Pollution Control Act (33 U.S.C. 1251 et 
                seq.) and other ocean and coastal laws may be affected 
                by climate change;
                    (C) information, analyses, and data that will 
                identify, to the maximum extent practicable, 
                hydrological and temperature changes by watershed in 
                the United States and that support the findings made 
                under subparagraphs (A) and (B); and
                    (D) identification of the scientific consensus, 
                assumptions, and uncertainties related to predictions 
                of climate change in the United States;
            (2) identify the potential impacts of climate change on the 
        Nation's water resources, watersheds, and water quality, 
        including the potential for impacts to wetlands, shoreline 
        erosion, and saltwater intrusion as a result of sea level rise, 
        and the potential for significant regional variation in 
        precipitation events to impact Federal, State, and local 
        efforts to attain or maintain water quality;
            (3) assess the extent to which Federal and State efforts 
        under the Federal Water Pollution Control Act and other ocean 
        and coastal laws may be affected by climate change;
            (4) identify prudent steps to assess emerging information 
        and identify appropriate response actions to meet the 
        requirements of such Act, including provisions to attain or 
        maintain water quality standards and for adequate stream flows 
        for wetlands and aquatic resources; and
            (5) recommend, if necessary, potential legislative or 
        regulatory changes to address impacts of global climate change 
        on efforts to restore and maintain the chemical, physical, and 
        biological integrity of the Nation's waters.
    (b) Recommendations.--Not later than 2 years after the date of the 
enactment of this Act, the Administrator shall transmit to Congress a 
report on the results of the study under this section.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated $1,500,000 to carry out this section.

SEC. 8704. IMPACTS OF CLIMATE CHANGE ON CORPS OF ENGINEERS PROJECTS.

    (a) In General.--The Secretary of the Army shall ensure that water 
resources projects and studies carried out by the Corps of Engineers 
after the date of enactment of this Act take into account the potential 
short and long term effects of climate change on such projects.
    (b) Consideration.--In carrying out this section, the Secretary 
shall utilize a representative range of climate change scenarios, 
including the current projections of the United States Global Change 
Research Program and the Intergovernmental Panel on Climate Change.
    (c) Report to Congress.--Not later than one year after the date of 
enactment of this Act, the Secretary shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Environment and Public Works of the Senate a report on 
the implementation of this section.

                      PART 2--EMERGENCY MANAGEMENT

SEC. 8731. EFFECTS OF CLIMATE CHANGE ON FEMA PREPAREDNESS, RESPONSE, 
              RECOVERY, AND MITIGATION PROGRAMS.

    (a) Study.--The Administrator of the Federal Emergency Management 
Agency shall conduct a comprehensive study of the increase in demand 
for the Agency's emergency preparedness, response, recovery, and 
mitigation programs and services that may be reasonably anticipated as 
a result of an increased number and intensity of natural disasters 
affected by climate change, including hurricanes, floods, tornadoes, 
fires, droughts, and severe storms.
    (b) Contents.--The study shall include an analysis of the budgetary 
and personnel needs of meeting the increased demand for Agency services 
referred to in subsection (a).
    (c) Report.--Not later than one year after the date of enactment of 
this Act, the Administrator shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Homeland Security and Governmental Affairs of the 
Senate a report and any legislative recommendations on the study 
conducted under this section.

                     TITLE IX--ENERGY AND COMMERCE

                Subtitle A--Promoting Energy Efficiency

SEC. 9000. SHORT TITLE.

    This subtitle may be cited as the ``Energy Efficiency Improvement 
Act of 2007''.

                      PART 1--APPLIANCE EFFICIENCY

SEC. 9001. ENERGY STANDARDS FOR HOME APPLIANCES.

    (a) Appliances.--The Energy Policy and Conservation Act is amended 
as follows:
            (1) Dehumidifiers.--Section 325(cc)(2) (42 U.S.C. 
        6295(cc)(2)) is amended to read as follows:
    ``(2) Dehumidifiers manufactured on or after October 1, 2012, shall 
have an Energy Factor that meets or exceeds the following values:


 
 
 
``Product Capacity (pints/day):          Minimum Energy Factor (liters/
                                          KWh)
  Up to 35.00..........................  1.35
  35.01-45.00..........................  1.50
  45.01-54.00..........................  1.60
  54.01-75.00..........................  1.70
  Greater than 75.00...................  2.5.''.

            (2) Residential clotheswashers and residential 
        dishwashers.--Section 325(g) (42 U.S.C. 6295(g)) is amended by 
        adding at the end the following new paragraphs:
    ``(9) Clotheswashers manufactured on or after January 1, 2011, 
shall have--
            ``(A) a Modified Energy Factor of at least 1.26; and
            ``(B) a water factor of not more than 9.5.
    ``(10) No later than December 31, 2011, the Secretary shall publish 
a final rule determining whether to amend the standards in effect for 
clotheswashers manufactured on or after January 1, 2015. Such rule 
shall contain such amendment, if any.
    ``(11) Dishwashers manufactured on or after January 1, 2010, 
shall--
            ``(A) for standard size dishwashers not exceed 355 kwh/year 
        and 6.5 gallon per cycle; and
            ``(B) for compact size dishwashers not exceed 260 kwh/year 
        and 4.5 gallons per cycle.
    ``(12) No later than January 1, 2015, the Secretary shall publish a 
final rule determining whether to amend the standards for dishwashers 
manufactured on or after January 1, 2018. Such rule shall contain such 
amendment, if any.''.
            (3) Refrigerators and freezers.--Section 325(b) (42 U.S.C. 
        6295(b)) is amended by adding at the end the following new 
        paragraph:
    ``(4) Not later than December 31, 2010, the Secretary shall publish 
a final rule determining whether to amend the standards in effect for 
refrigerators, refrigerator-freezers, and freezers manufactured on or 
after January 1, 2014. Such rule shall contain such amendment, if 
any.''.
    (b) Energy Star.--Section 324A(d)(2) of the Energy Policy and 
Conservation Act (42 U.S.C. 6294a(d)(2)) is amended by striking 
``January 1, 2010'' and inserting ``July 1, 2009''.

SEC. 9002. ELECTRIC MOTOR EFFICIENCY STANDARDS.

    (a) Definitions.--Section 340(13) of the Energy Policy and 
Conservation Act (42 U.S.C. 6311(13)) is amended--
            (1) by redesignating subparagraphs (B) through (H) as 
        subparagraphs (C) through (I), respectively; and
            (2) by striking the text of subparagraph (A) and inserting 
        the following: ``The term `general purpose electric motor 
        (subtype I)' means any motor that meets the definition of 
        `General Purpose' as established in the final rule issued by 
        the Department of Energy for `Energy Efficiency Program for 
        Certain Commercial and Industrial Equipment: Test Procedures, 
        Labeling, and Certification Requirements for Electric Motors' 
        (10 CFR 431), as in effect on the date of enactment of the 
        Energy Efficiency Improvement Act of 2007.
            ``(B) The term `general purpose electric motor (subtype 
        II)' means motors incorporating the design elements of a 
        general purpose electric motor (subtype I) that are configured 
        as one of the following:
                    ``(i) U-Frame Motors.
                    ``(ii) Design C Motors.
                    ``(iii) Close-coupled pump motors.
                    ``(iv) Footless motors.
                    ``(v) Vertical solid shaft normal thrust motor (as 
                tested in a horizontal configuration).
                    ``(vi) 8-pole motors (900 rpm).
                    ``(vii) All poly-phase motors with voltages up to 
                600 volts other than 230/460 volts.''.
    (b) Standards.--
    (1) Amendment.--Section 342(b) of the Energy Policy and 
Conservation Act (42 U.S.C. 6313(b)) is amended by striking the text of 
paragraph (1) and inserting the following: ``(A) Each general purpose 
electric motor (subtype I), except as provided in subparagraph (B), 
with a power rating of 1 horsepower or greater, but not greater than 
200 horsepower, manufactured (alone or as a component of another piece 
of equipment) after the 36-month period beginning on the date of 
enactment of the Energy Efficiency Improvement Act of 2007, shall have 
a nominal full load efficiency not less than as defined in NEMA MG-1 
(2006) Table 12-12.
    ``(B) Each fire pump motor manufactured (alone or as a component of 
another piece of equipment) after the 36-month period beginning on the 
date of enactment of the Energy Efficiency Improvement Act of 2007, 
shall have nominal full load efficiency not less than as defined in 
NEMA MG-1 (2006) Table 12-11.
    ``(C) Each general purpose electric motor (subtype II) with a power 
rating of 1 horsepower or greater, but not greater than 200 horsepower, 
manufactured (alone or as a component of another piece of equipment) 
after the 36-month period beginning on the date of enactment of the 
Energy Efficiency Improvement Act of 2007, shall have a nominal full 
load efficiency not less than as defined in NEMA MG-1 (2006) Table 12-
11.
    ``(D) Each NEMA Design B, general purpose electric motor with a 
power rating of more than 200 horsepower, but not greater than 500 
horsepower, manufactured (alone or as a component of another piece of 
equipment) after the 36-month period beginning on the date of enactment 
of the Energy Efficiency Improvement Act of 2007, shall have a nominal 
full load efficiency not less than as defined in NEMA MG-1 (2006) Table 
12-11.''.
    (2) Effective Date.--The amendment made by paragraph (1) shall take 
effect 36 months after the date of enactment of this Act.

SEC. 9003. RESIDENTIAL BOILERS.

    Section 325(f) of the Energy Policy and Conservation Act (42 U.S.C. 
6925(f)) is amended--
            (1) in the subsection heading, by inserting ``and Boilers'' 
        after ``Furnaces'';
            (2) in paragraph (1), by striking ``except that'' and all 
        that follows through ``(B)'' and inserting ``except that'';
            (3) by redesignating paragraph (3) as paragraph (4); and
            (4) by inserting after paragraph (2) the following:
    ``(3) Boilers.--
            ``(A) In general.--Subject to subparagraph (B), boilers 
        manufactured on or after September 1, 2012, shall meet the 
        following requirements:


----------------------------------------------------------------------------------------------------------------
                                          Minimum Annual Fuel Utilization
              Boiler Type                            Efficiency                      Design Requirements
----------------------------------------------------------------------------------------------------------------
Gas Hot Water.........................  82%                                  No Constant Burning Pilot,
                                                                              Automatic Means for Adjusting
                                                                              Water Temperature
----------------------------------------------------------------------------------------------------------------
 Gas Steam............................  80%                                  No Constant Burning Pilot
----------------------------------------------------------------------------------------------------------------
Oil Hot Water.........................  84%                                  Automatic Means for Adjusting
                                                                              Temperature
----------------------------------------------------------------------------------------------------------------
 Oil Steam............................  82%                                  None
----------------------------------------------------------------------------------------------------------------
Electric Hot Water....................  None                                 Automatic Means for Adjusting
                                                                              Temperature
----------------------------------------------------------------------------------------------------------------
Electric Steam........................  None                                 None
----------------------------------------------------------------------------------------------------------------

            ``(B) Automatic means for adjusting water temperature.--
                    ``(i) In general.--The manufacturer shall equip 
                each gas, oil and electric hot water boiler, except 
                boilers equipped with tankless domestic water heating 
                coils, with automatic means for adjusting the 
                temperature of the water supplied by the boiler to 
                ensure that an incremental change in inferred heat load 
                produces a corresponding incremental change in the 
                temperature of water supplied.
                    ``(ii) Single input rate.--For a boiler that fires 
                at one input rate this requirement may be satisfied by 
                providing an automatic means that allows the burner or 
                heating element to fire only when such means has 
                determined that the inferred heat load cannot be met by 
                the residual heat of the water in the system.
                    ``(iii) No inferred heat load.--When there is no 
                inferred heat load with respect to a hot water boiler, 
                the automatic means described in clause (i) and (ii) 
                shall limit the temperature of the water in the boiler 
                to not more than 140 degrees Fahrenheit.
                    ``(iv) Operation.--A boiler described in clause (i) 
                or (ii) shall be operable only when the automatic means 
                described in clauses (i), (ii), and (iii) is 
                installed.''.

SEC. 9004. REGIONAL VARIATIONS IN HEATING OR COOLING STANDARDS.

    (a) Consumer Appliances.--Section 325(o) of the Energy Policy and 
Conservation Act (42 U.S.C. 6925(o)) is amended by adding at the end 
the following new paragraph:
    ``(6)(A) The Secretary may establish regional standards for space 
heating and air conditioning products, other than window-unit air-
conditioners and portable space heaters. For each space heating and air 
conditioning product, the Secretary may establish a national minimum 
standard and two more stringent regional standards for regions 
determined to have significantly differing climatic conditions. Any 
standards set for any such region shall achieve the maximum level of 
energy savings that are technically feasible and economically justified 
within that region. As a preliminary step to determining the economic 
justifiability of establishing any such regional standard, the 
Secretary shall conduct a study involving stakeholders, including but 
not limited to a representative from the National Institute of 
Standards and Technology; representatives of nongovernmental advocacy 
organizations; representatives of product manufacturers, distributors, 
and installers; representatives of the gas and electric utility 
industries; and such other individuals as the Secretary may designate. 
Such study shall determine the potential benefits and consequences of 
prescribing regional standards for heating and cooling products, and 
may, if favorable to such standards, constitute the evidence of 
economic justifiability required under this Act. Regional boundaries 
shall follow State borders and only include contiguous States (except 
Alaska and Hawaii), except that on the request of a State, the 
Secretary may divide that State to include a part of that State in each 
of two regions.
    ``(B) If the Secretary establishes regional standards, it shall be 
unlawful under section 332 to offer for sale at retail, sell at retail, 
or install noncomplying products except within the specified regions.
    ``(C)(i) Except as provided in clause (ii), no product manufactured 
to a regional standard established pursuant to subparagraph (A) shall 
be distributed in commerce without a prominent label affixed to the 
product which includes at the top of the label, in print of not less 
than 14-point type, the following: `It is a violation of Federal law 
for this product to be installed in any State outside the region shaded 
on the map printed on this label.'. Below this notice shall appear a 
map of the United States with clearly defined State boundaries and 
names, and with all States in which the product meets or exceeds the 
standard established pursuant to subparagraph (A) shaded in a color or 
a manner as to be easily visible without obscuring the State boundaries 
and names. Below the map shall be printed on each label the following: 
`It is a violation of Federal law for this label to be removed, except 
by the owner and legal resident of any single-family home in which this 
product is installed.'.
    ``(ii) A product manufactured that meets or exceeds all regional 
standards established under this paragraph shall bear a prominent label 
affixed to the product which includes at the top of the label, in print 
of not less than 14-point type the following: `This product has 
achieved an energy efficiency rating under Federal law allowing its 
installation in any State.'.
    ``(D) Manufacturers of space heating and air conditioning equipment 
subject to regional standards established under this paragraph shall 
obtain and retain records on the intended installation locations of the 
equipment sold, and shall make such records available to the Secretary 
on request.''.
    (b) Industrial Equipment.--Section 342(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6313(a)) is amended by adding at the end 
the following new paragraph:
    ``(10)(A) The Secretary may establish regional standards for space 
heating and air conditioning products subject to this subsection. For 
each space heating and air conditioning product, the Secretary may 
establish a national minimum standard and two more stringent regional 
standards for regions determined to have significantly differing 
climatic conditions. Any standards set for any such region shall 
achieve the maximum level of energy savings that are technically 
feasible and economically justified within that region. Regional 
boundaries shall follow State borders and only include contiguous 
States (except Alaska and Hawaii), except that on the request of a 
State, the Secretary may divide that State to include a part of that 
State in each of two regions.
    ``(B) If the Secretary establishes regional standards, it shall be 
unlawful under section 345 to offer for sale at retail, sell at retail, 
or install noncomplying products except within the specified regions.
    ``(C) Manufacturers of space heating and air conditioning equipment 
subject to regional standards established under this paragraph shall 
obtain and retain records on the intended installation locations of the 
equipment sold, and shall make such records available to the Secretary 
on request.''.

SEC. 9005. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.

    Section 325(p) of the Energy Policy and Conservation Act (42 U.S.C. 
6925(p)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (4) as 
        paragraphs (1) through (3), respectively.

SEC. 9006. EXPEDITING APPLIANCE STANDARDS RULEMAKINGS.

    (a) Direct Final Rule.--Section 325(p) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(p)) is amended by adding a new 
paragraph (4) as follows:
            ``(4) If manufacturers of any type (or class) of covered 
        products or covered equipment, States, and efficiency 
        advocates, or persons determined by the Secretary to fully 
        represent such parties, submit to the Secretary a joint 
        recommendation of an energy or water conservation standard and 
        the Secretary determines that the recommended standard complies 
        with subsection (o) or section 342(a)(6)(B), as applicable, to 
        that type (or class) of covered products or covered equipment 
        to which the standard would apply, the Secretary may then issue 
        a direct final rule including the standard recommended. If the 
        Secretary determines that a direct final rule cannot be issued 
        based on such a submitted joint recommendation, the Secretary 
        shall publish a determination with an explanation as to why the 
        joint recommendation does not comply with this paragraph. For 
        purposes of this paragraph, the term `direct final rule' means 
        a final rule published the same day with a parallel notice of 
        proposed rulemaking that proposes a new or amended energy or 
        water conservation standard that is identical to the standard 
        set forth in the final rule. There shall be a 110-day period 
        for public comment with respect to the direct final rule. Not 
        later than 10 days after the expiration of such 110-day period, 
        the Secretary shall publish a notice responding to comments 
        received with respect to the direct final rule. The Secretary 
        shall withdraw a direct final rule promulgated pursuant to this 
        paragraph within 120 days after publication in the Federal 
        Register if the Secretary receives, with respect to the direct 
        final rule, one or more adverse public comments or any 
        alternate joint recommendation and, based on the rulemaking 
        record, the Secretary determines that such adverse comments or 
        alternate joint recommendation may provide a reasonable basis 
        for withdrawing the direct final rule under subsection (o), 
        section 342(a)(6)(B), or any applicable law. In such a case, 
        the Secretary shall then proceed with the parallel notice of 
        proposed rulemaking, and shall identify in a notice published 
        in the Federal Register the reasons for the withdrawal of the 
        direct final rule. A direct final rule that is withdrawn in 
        accordance with this paragraph shall not be considered final 
        for purposes of subsection (o)(1) of this section. No person 
        shall be found in violation of this part for noncompliance with 
        a direct final rule that is withdrawn under this paragraph, if 
        that person has complied with the applicable standard in effect 
        under this part immediately prior to issuance of that direct 
        final rule.''.
    (b) Conforming Amendment.--Section 345(b)(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6316(b)(1)) is amended by inserting 
after ``section'' the first time it appears ``325(p)(5), section''.

SEC. 9007. CORRECTION OF LARGE AIR CONDITIONER RULE ISSUANCE 
              CONSTRAINT.

    (a) Definitions.--Section 340 of the Energy Policy and Conservation 
Act (42 U.S.C. 6311) is amended by adding the following new paragraphs 
at the end:
            ``(22) The term `single package vertical air conditioner' 
        means air-cooled commercial package air conditioning and 
        heating equipment; factory assembled as a single package having 
        its major components arranged vertically, which is an encased 
        combination of cooling and optional heating components, is 
        intended for exterior mounting on, adjacent interior to, or 
        through an outside wall; and is powered by a single- or three-
        phase current. It may contain separate indoor grille(s), 
        outdoor louvers, various ventilation options, indoor free air 
        discharge, ductwork, well plenum, or sleeve. Heating components 
        may include electrical resistance, steam, hot water, or gas, 
        but may not include reverse cycle refrigeration as a heating 
        means.
            ``(23) The term `single package vertical heat pump' means a 
        single package vertical air conditioner that utilizes reverse 
        cycle refrigeration as its primary heat source, that may 
        include secondary supplemental heating by means of electrical 
        resistance, steam, hot water, or gas.''.
    (b) Standards.--Section 342(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6313(a)) is amended--
            (1) in each of paragraphs (1) and (2), by inserting after 
        ``heating equipment'' in the first sentence ``, including 
        single package vertical air conditioners and single package 
        vertical heat pumps,'';
            (2) in paragraph (1), by striking ``but before January 1, 
        2010,'';
            (3) in each of paragraphs (7), (8), and (9), by inserting 
        after ``heating equipment'' in the first sentence ``, excluding 
        single package vertical air conditioners and single package 
        vertical heat pumps,'';
            (4) in paragraph (7)--
                    (A) by striking ``manufactured on or after January 
                1, 2010,'';
                    (B) in each of subparagraphs (A), (B), and (C), by 
                striking ``The'' and inserting ``For equipment 
                manufactured on or after January 1, 2010, the''; and
                    (C) by adding at the end the following new 
                subparagraphs:
            ``(D) For equipment manufactured on or after the later of 
        January 1, 2008, or the date six months after enactment of this 
        section, the minimum seasonal energy efficiency ratio of air-
        cooled three-phase electric central air conditioners and 
        central air conditioning heat pumps less than 65,000 Btu per 
        hour (cooling capacity), split systems, shall be 13.0.
            ``(E) For equipment manufactured on or after the later of 
        January 1, 2008, or the date six months after enactment of this 
        section, minimum seasonal energy efficiency ratio of air-cooled 
        three-phase electric central air conditioners and central air 
        conditioning heat pumps less than 65,000 Btu per hour (cooling 
        capacity), single package, shall be 13.0.
            ``(F) For equipment manufactured on or after the later of 
        January 1, 2008, or the date six months after enactment of this 
        section, minimum heating seasonal performance factor of air-
        cooled three-phase electric central air conditioning heat pumps 
        less than 65,000 Btu per hour (cooling capacity), split 
        systems, shall be 7.7.
            ``(G) For equipment manufactured on or after the later of 
        January 1, 2008, or the date six months after enactment of this 
        section, the minimum heating seasonal performance factor of 
        air-cooled three-phase electric central air conditioning heat 
        pumps less than 65,000 Btu per hour (cooling capacity), single 
        package, shall be 7.7.''; and
            (5) by adding the following new paragraphs at the end:
    ``(11) Single package vertical air conditioners and single package 
vertical heat pumps manufactured on or after January 1, 2010, shall 
meet the following standards:
            ``(A) The minimum energy efficiency ratio of single package 
        vertical air conditioners less than 65,000 Btu per hour 
        (cooling capacity), single-phase, shall be 9.0.
            ``(B) The minimum energy efficiency ratio of single package 
        vertical air conditioners less than 65,000 Btu per hour 
        (cooling capacity), three-phase, shall be 9.0.
            ``(C) The minimum energy efficiency ratio of single package 
        vertical air conditioners at or above 65,000 Btu per hour 
        (cooling capacity) but less than 135,000 Btu per hour (cooling 
        capacity), shall be 8.9.
            ``(D) The minimum energy efficiency ratio of single package 
        vertical air conditioners at or above 135,000 Btu per hour 
        (cooling capacity) but less than 240,000 Btu per hour (cooling 
        capacity), shall be 8.6.
            ``(E) The minimum energy efficiency ratio of single package 
        vertical heat pumps less than 65,000 Btu per hour (cooling 
        capacity), single-phase, shall be 9.0; and the minimum 
        coefficient of performance in the heating mode shall be 3.0.
            ``(F) The minimum energy efficiency ratio of single package 
        vertical heat pumps less than 65,000 Btu per hour (cooling 
        capacity), three-phase, shall be 9.0; and the minimum 
        coefficient of performance in the heating mode shall be 3.0.
            ``(G) The minimum energy efficiency ratio of single package 
        vertical heat pumps at or above 65,000 Btu per hour (cooling 
        capacity) but less than 135,000 Btu per hour (cooling 
        capacity), shall be 8.9; and the minimum coefficient of 
        performance in the heating mode shall be 3.0.
            ``(H) The minimum energy efficiency ratio of single package 
        vertical heat pumps at or above 135,000 Btu per hour (cooling 
        capacity) but less than 240,000 Btu per hour (cooling 
        capacity), shall be 8.6; and the minimum coefficient of 
        performance in the heating mode shall be 2.9.
    ``(12) Not later than 36 months after the date of enactment of this 
paragraph, the Secretary shall review the most recently published 
ASHRAE/IES Standard 90.1 with respect to single package vertical air 
conditioners and single package vertical heat pumps according to the 
procedures established in paragraph (6).''.

SEC. 9008. DEFINITION OF ENERGY CONSERVATION STANDARD.

    Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 
6291) is amended by striking paragraph (6) and inserting the following:
            ``(6) Energy conservation standard.--
                    ``(A) In general.--The term `energy conservation 
                standard' means 1 or more performance standards that--
                            ``(i) for covered products (excluding 
                        clothes washers, dishwashers, showerheads, 
                        faucets, water closets, and urinals), prescribe 
                        a minimum level of energy efficiency or a 
                        maximum quantity of energy use, determined in 
                        accordance with test procedures prescribed 
                        under section 323;
                            ``(ii) for showerheads, faucets, water 
                        closets, and urinals, prescribe a minimum level 
                        of water efficiency or a maximum quantity of 
                        water use, determined in accordance with test 
                        procedures prescribed under section 323; and
                            ``(iii) for clothes washers and 
                        dishwashers--
                                    ``(I) prescribe a minimum level of 
                                energy efficiency or a maximum quantity 
                                of energy use, determined in accordance 
                                with test procedures prescribed under 
                                section 323; and
                                    ``(II) may include a minimum level 
                                of water efficiency or a maximum 
                                quantity of water use, determined in 
                                accordance with those test procedures.
                    ``(B) Inclusions.--The term `energy conservation 
                standard' includes--
                            ``(i) 1 or more design requirements, if the 
                        requirements were established--
                                    ``(I) on or before the date of 
                                enactment of this subclause; or
                                    ``(II) as part of a consensus 
                                agreement under section 325(p)(5); and
                            ``(ii) any other requirements that the 
                        Secretary may prescribe under section 325(r).
                    ``(C) Exclusion.--The term `energy conservation 
                standard' does not include a performance standard for a 
                component of a finished covered product, unless 
                regulation of the component is authorized or 
                established pursuant to this title.''.

SEC. 9009. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND CLARIFYING 
              STATE AUTHORITY.

    (a) Consumer Appliances.--Section 325(m) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(m)) is amended to read as follows:
    ``(m) Further Rulemaking.--(1) Not later than 6 years after 
issuance of any final rule establishing or amending a standard, as 
required for a product under this part, the Secretary shall publish 
either--
            ``(A) a notice of the Secretary's determination that 
        standards for that product do not need to be amended, based on 
        the criteria in subsection (n)(2); or
            ``(B) a notice of proposed rulemaking including new 
        proposed standards based on the criteria in subsection (o) and 
        the procedures in subsection (p).
In either case, the Secretary shall also publish a notice stating that 
the Department's analysis is publicly available, and provide 
opportunity for written comment.
    ``(2) Not later than 2 years after a notice is issued under 
paragraph (1)(B), the Secretary shall publish a final rule amending the 
standard for the product. Not later than 3 years after a determination 
under paragraph (1)(A), the Secretary shall make a new determination 
and publication under paragraph (1)(A) or (B).
    ``(3) An amendment prescribed under this subsection shall apply to 
products manufactured after a date which is 3 years after publication 
of the final rule establishing a standard, except that a manufacturer 
shall not be required to apply new standards to a product with respect 
to which other new standards have been required within the prior 6 
years.
    ``(4) The Secretary shall promptly submit to the Committee on 
Energy and Commerce of the House of Representatives and the Committee 
on Energy and Natural Resources of the Senate--
            ``(A) a progress report every 180 days on compliance with 
        this section, including a specific plan to remedy any failures 
        to comply with deadlines for action set forth in this section; 
        and
            ``(B) all required reports to the Court or to any party to 
        the Consent Decree in State of New York v Bodman, Consolidated 
        Civil Actions No.05 Civ. 7807 and No.05 Civ. 7808.''.
    (b) Industrial Equipment.--Section 342(a)(6) of the Energy Policy 
and Conservation Act (42 U.S.C. 6313(a)(6)) is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by amending the remainder of the paragraph to read as 
        follows:
            ``(6)(A) If ASHRAE/IES Standard 90.1 is amended with 
        respect to any small, large, or very large commercial package 
        air conditioning and heating equipment, packaged terminal air 
        conditioners, packaged terminal heat pumps, warm-air furnaces, 
        packaged boilers, storage water heaters, instantaneous water 
        heaters, or unfired hot water storage tanks, the Secretary 
        shall within 6 months publish in the Federal Register for 
        public comment an analysis of the energy savings potential of 
        the amended energy efficiency standards. The Secretary shall 
        establish an amended uniform national standard for that product 
        at the minimum level for each effective date specified in the 
        amended ASHRAE/IES Standard 90.1 within 18 months of the ASHRAE 
        amendment's publication, unless the Secretary determines, by 
        rule published in the Federal Register, and supported by clear 
        and convincing evidence, that adoption of a uniform national 
        standard more stringent than such amended ASHRAE/IES Standard 
        90.1 for such product would result in significant additional 
        conservation of energy and is technologically feasible and 
        economically justified.
            ``(B) If the Secretary issues a rule containing such a 
        determination, the rule shall establish such amended standard, 
        and shall be issued within 30 months of the ASHRAE amendment's 
        publication.
            ``(C)(i) Not later than 6 years after issuance of any final 
        rule establishing or amending a standard, as required for a 
        product under this part, the Secretary shall publish either--
    ``(I) a notice of the Secretary's determination that standards for 
that product do not need to be amended, based on the criteria in 
subparagraph (A); or
    ``(II) a notice of proposed rulemaking including new proposed 
standards based on the criteria and procedures in subparagraph (B).
        In either case, the Secretary shall also publish a notice 
        stating that the Department's analysis is publicly available, 
        and provide opportunity for written comment.
            ``(ii) Not later than 2 years after a notice is issued 
        under clause (i)(II), the Secretary shall publish a final rule 
        amending the standard for the product. Not later than 3 years 
        after a determination under clause (i)(I), the Secretary shall 
        make a new determination and publication under clause (i)(I) or 
        (II).
            ``(iii) An amendment prescribed under this subparagraph 
        shall apply to products manufactured after a date which is 3 
        years after publication of the final rule establishing a 
        standard, except that a manufacturer shall not be required to 
        apply new standards to a product with respect to which other 
        new standards have been required within the prior 6 years.
            ``(iv) The Secretary shall promptly submit to the House 
        Committee on Energy and Commerce and to the Senate Committee on 
        Energy and Natural Resources a progress report every 180 days 
        on compliance with this paragraph, including a specific plan to 
        remedy any failures to comply with deadlines for action set 
        forth in this paragraph.''.

SEC. 9010. UPDATING APPLIANCE TEST PROCEDURES.

    (a) Consumer Appliances.--Section 323(b)(1)(A) of the Energy Policy 
and Conservation Act (42 U.S.C. 6923(b)(1)(A)) is amended by striking 
``The Secretary may'' and all that follows through ``paragraph (3)'' 
and inserting ``At least every 7 years the Secretary shall review test 
procedures for all covered products and shall--
            ``(i) amend test procedures with respect to any covered 
        product if the Secretary determines that amended test 
        procedures would more accurately or fully comply with the 
        requirements of paragraph (3); or
            ``(ii) publish notice in the Federal Register of any 
        determination not to amend a test procedure''.
    (b) Industrial Equipment.--Section 343(a)(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6314(a)(1)) is amended by striking 
``The Secretary may'' and all that follows through ``this section'' and 
inserting ``At least every 7 years the Secretary shall conduct an 
evaluation of each class of covered equipment and--
            ``(A) if the Secretary determines that amended test 
        procedures would more accurately or fully comply with the 
        requirements of paragraphs (2) and (3), shall prescribe test 
        procedures for such class in accordance with the provisions of 
        this section; or
            ``(B) shall publish notice in the Federal Register of any 
        determination not to amend a test procedure''.

SEC. 9011. FURNACE FAN STANDARD PROCESS.

    Section 325(f)(4)(D) of the Energy Policy and Conservation Act (42 
U.S.C. 6295(f)(3)(D)), as redesignated by section 9003(3) of this Act, 
is amended--
            (1) by striking ``may'' and inserting ``shall''; and
            (2) by inserting ``not later than July 1, 2013'' after 
        ``duct work''.

SEC. 9012. TECHNICAL CORRECTIONS.

    (a) Section 135(a)(1)(A)(ii) of the Energy Policy Act of 2005 
(Public Law 109-58) is amended by striking ``C78.1-1978(R1984)'' and 
inserting ``C78.3-1978(R1984)''.
    (b) Section 325 of the Energy Policy and Conservation Act (42 
U.S.C. 6295) (as amended by section 135(c)(4) of the Energy Policy Act 
of 2005) is amended--
            (1) in subsection (v)--
                    (A) in the subsection heading, by striking 
                ``Ceiling Fans and'';
                    (B) by striking paragraph (1); and
                    (C) by redesignating paragraphs (2) through (4) as 
                paragraphs (1) through (3), respectively; and
            (2) in subsection (ff)--
                    (A) in paragraph (1)(A)--
                            (i) by striking clause (iii);
                            (ii) by redesignating clause (iv) as clause 
                        (iii); and
                            (iii) in clause (iii)(II) (as so 
                        redesignated), by inserting ``fans sold for'' 
                        before ``outdoor''; and
                    (B) in paragraph (4)(C)--
                            (i) in the matter preceding clause (i), by 
                        striking ``subparagraph (B)'' and inserting 
                        ``subparagraph (A)'';
                            (ii) by striking clause (ii) and inserting 
                        the following:
            ``(ii) shall be packaged with lamps to fill all sockets.'';
                    (C) in paragraph (6), by redesignating 
                subparagraphs (C) and (D) as clauses (i) and (ii), 
                respectively, of subparagraph (B); and
                    (D) in paragraph (7), by striking ``327'' the 
                second place it appears and inserting ``324''.

SEC. 9013. ENERGY EFFICIENT STANDBY POWER DEVICES.

    (a) Definitions.--In this section:
            (1) Agency.--
                    (A) In general.--The term ``agency'' has the 
                meaning given the term ``Executive agency'' in section 
                105 of title 5, United States Code.
                    (B) Inclusions.--The term ``agency'' includes 
                military departments, as the term is defined in section 
                102 of title 5, United States Code.
            (2) Eligible product.--The term ``eligible product'' means 
        a commercially available, off-the-shelf product that--
                    (A)(i) uses external standby power devices; or
                    (ii) contains an internal standby power function; 
                and
                    (B) is included on the list compiled under 
                subsection (d).
    (b) Federal Purchasing Requirement.--Subject to subsection (c), if 
an agency purchases an eligible product, the agency shall purchase--
            (1) an eligible product that uses not more than 1 watt in 
        the standby power consuming mode of the eligible product; or
            (2) if an eligible product described in paragraph (1) is 
        not available, the eligible product with the lowest available 
        standby power wattage in the standby power consuming mode of 
        the eligible product.
    (c) Limitation.--The requirements of subsection (b) shall apply to 
a purchase by an agency only if--
            (1) the lower-wattage eligible product is--
                    (A) lifecycle cost-effective; and
                    (B) practicable; and
            (2) the utility and performance of the eligible product is 
        not compromised by the lower wattage requirement.
    (d) Eligible Products.--The Secretary of Energy, in consultation 
with the Secretary of Defense and the Administrator of General 
Services, shall compile a list of cost-effective eligible products that 
shall be subject to the purchasing requirements of subsection (b).

SEC. 9014. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.

    (a) Section 321 of the Energy Policy and Conservation Act (42 
U.S.C. 6291) is amended--
            (1) in paragraph (36) by inserting ``(A)'' before the text 
        and adding at the end the following:
            ``(B) The term `class A external power supply' means a 
        device that--
                    ``(i) is designed to convert line voltage AC input 
                into lower voltage AC or DC output;
                    ``(ii) is able to convert to only one AC or DC 
                output voltage at a time;
                    ``(iii) is sold with, or intended to be used with, 
                a separate end-use product that constitutes the primary 
                load;
                    ``(iv) is contained in a separate physical 
                enclosure from the end-use product;
                    ``(v) is connected to the end-use product via a 
                removable or hard-wired male/female electrical 
                connection, cable, cord or other wiring; and
                    ``(vi) has nameplate output power less than or 
                equal to 250 watts.
                    ``(C) The term `class A external power supply' does 
                not include any device that--
                            ``(i) requires Federal Food and Drug 
                        Administration listing and approval as a 
                        medical device, as described under section 513 
                        of the Food, Drug, and Cosmetic Act of 1938; or
                            ``(ii) powers the charger of a detachable 
                        battery pack or charges the battery of a 
                        product that is fully or primarily motor 
                        operated.
                    ``(D) The term `active mode' means the mode of 
                operation when an external power supply is connected to 
                the main electricity supply and the output is connected 
                to a load.
                    ``(E) The term `no-load mode' means the mode of 
                operation when an external power supply is connected to 
                the main electricity supply and the output is not 
                connected to a load.''
            (2) by adding at the end the following:
            ``(52) The term `detachable battery' means a battery that 
        is contained in a separate enclosure from the product and is 
        intended to be removed or disconnected from the product for 
        recharging.''.
    (b) Section 323 of the Energy Policy and Conservation Act (42 
U.S.C. 6293) is amended in subsection (b) by adding at the end the 
following:
            ``(17) Test procedures for class A external power supplies 
        shall be based upon the U.S. Environmental Protection Agency's 
        `Test Method for Calculating the Energy Efficiency of Single-
        Voltage External AC-DC and AC-AC Power Supplies', August 11, 
        2004, provided that the test voltage specified in section 4(d) 
        of such test method shall be only 115 volts, 60 Hz.''.
    (c) Section 325 of the Energy Policy and Conservation Act (42 
U.S.C. 6295) is amended in subsection (u) by adding at the end the 
following:
            ``(6) Efficiency standards for class a external power 
        supplies.--
                    ``(A) Class A external power supplies manufactured 
                on or after July 1, 2008 (or the date of enactment of 
                this paragraph, if later) shall meet the following 
                standards:


----------------------------------------------------------------------------------------------------------------
                                                  ``Active Mode
-----------------------------------------------------------------------------------------------------------------
                                                                     RequiredEfficiency (decimal equivalent of
                        ``Nameplate Output                                          apercentage)
----------------------------------------------------------------------------------------------------------------
Less than 1 watt                                                   0.5 times the NameplateOutput
----------------------------------------------------------------------------------------------------------------
From 1 watt to not more than 51 watts                              The sum of 0.09 times the Natural Logarithm
                                                                    of theNameplate Output and 0.5
----------------------------------------------------------------------------------------------------------------
Greater than 51 watts                                              0.85
----------------------------------------------------------------------------------------------------------------
``No-Load Mode
``Nameplate Output                                                 Maximum Consumption
----------------------------------------------------------------------------------------------------------------
Not more than 250 watts                                            0.5watts
----------------------------------------------------------------------------------------------------------------

                    ``(B) Notwithstanding paragraph (A), any class A 
                external power supply manufactured on or after July 1, 
                2008, and before July 1, 2015, and made available by 
                the manufacturer as a service part or a spare part for 
                an end-use product--
                            ``(i) that constitutes the primary load; 
                        and
                            ``(ii) was manufactured before July 1, 
                        2008,
                shall not be subject to the requirements of paragraph 
                (A).
                    ``(C) Any class A external power supply 
                manufactured on or after July 1, 2008 (or the date of 
                enactment of this paragraph, if later) shall be clearly 
                and permanently marked in accordance with the External 
                Power Supply International Efficiency Marking Protocol, 
                as referenced in the `Energy Star Program Requirements 
                for Single Voltage External AC-DC and AC-AC Power 
                Supplies, version 1.1' published by the Environmental 
                Protection Agency.
                    ``(D)(i) Not later than July 1, 2011 the Secretary 
                shall publish a final rule to determine whether the 
                standards established under paragraph (A) should be 
                amended. Such rule shall provide that any amended 
                standard shall apply to products manufactured on or 
                after July 1, 2013.
                    ``(ii) Not later than July 1, 2015 the Secretary 
                shall publish a final rule to determine whether the 
                standards established under paragraph (A) should be 
                amended. Such rule shall provide that any amended 
                standard shall apply to products manufactured on or 
                after July 1, 2017.
            ``(7) An energy conservation standard for external power 
        supplies shall not constitute an energy conservation standard 
        for the separate end-use product to which it is connected.''.

SEC. 9015. STANDBY MODE.

    (a) Consumer Appliance Requirement.--Section 325 of the Energy 
Policy and Conservation Act (42 U.S.C. 6295) is amended by adding at 
the end the following new subsection:
    ``(ii) Standby Mode.--
            ``(1) Requirement.--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.
            ``(2) Exceptions.--
                    ``(A) Extensions.--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.
                    ``(B) Exemptions.--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--
                            ``(i) achieving the requirement is not 
                        technologically feasible and economically 
                        justified for that covered product; or
                            ``(ii) such an exemption is warranted for 
                        medical or military reasons.
                Any exemption provided under this subparagraph shall be 
                reviewed at least once every 5 years.''.
    (b) Consumer Appliance Test Procedures.--Section 323(b) of the 
Energy Policy and Conservation Act (42 U.S.C. 6293(b)) is amended by 
adding at the end the following new paragraph:
    ``(18) 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.''.
    (c) Repeal.--
            (1) In general.--Section 325(u) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6295(u)), as amended by this 
        subtitle, is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) through (7) as 
                paragraphs (2) through (6), respectively.
            (2) Effective date.--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.
    (d) Industrial Equipment Requirement.--Section 342 of the Energy 
Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at 
the end the following new subsection:
    ``(f) Standby Power.--
            ``(1) Requirement.--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.
            ``(2) Exceptions.--
                    ``(A) Extensions.--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.
                    ``(B) Exemptions.--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--
                            ``(i) achieving the requirement is not 
                        technologically feasible and economically 
                        justified for that covered equipment; or
                            ``(ii) such an exemption is warranted for 
                        medical or military reasons.
                Any exemption provided under this subparagraph shall be 
                reviewed at least once every 5 years.''.
    (e) Industrial Equipment Test Procedures.--Section 343(a) of the 
Energy Policy and Conservation Act (42 U.S.C. 6314(a)) is amended by 
adding at the end the following new paragraph:
    ``(9) 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.''.

                      PART 2--LIGHTING EFFICIENCY

SEC. 9021. EFFICIENT LIGHT BULBS.

    (a) Prohibition.--
            (1) Regulations.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Energy shall issue 
        regulations--
                    (A) prohibiting the sale of 100 watt general 
                service incandescent lamps after January 1, 2012, 
                unless those lamps emit at least 60 lumens per watt;
                    (B) prohibiting the sale of general service lamps 
                manufactured after the effective dates shown in the 
                table below that do not meet the minimum efficacy 
                levels (lumens/watt) shown in the following table:


                                   Minimum Efficacy Levels and Effective Dates
----------------------------------------------------------------------------------------------------------------
                                                             Minimum
                                                            Efficacy
                  Lumen Range (Lumens)                      (Lumens/                 Effective Dates
                                                              Watt)
----------------------------------------------------------------------------------------------------------------
200-449                                                            15   1/1/2014
----------------------------------------------------------------------------------------------------------------
450-699                                                            17   1/1/2014
----------------------------------------------------------------------------------------------------------------
700-999                                                            20   1/1/2013
----------------------------------------------------------------------------------------------------------------
1000-1500                                                          22   1/1/2012
----------------------------------------------------------------------------------------------------------------
1501-3000                                                          24   1/1/2012
----------------------------------------------------------------------------------------------------------------

                    (C) after January 1, 2020, prohibiting the sale of 
                general service lamps that emit less than 300 percent 
                of the average lumens per watt emitted by 100 watt 
                incandescent general service lamps that are 
                commercially available as of the date of enactment of 
                this Act;
                    (D) establishing a minimum color rendering index 
                (CRI) of 80 or higher for all general service lamps 
                manufactured as of the effective dates in subparagraph 
                (B); and
                    (E) prohibiting the manufacture or import for sale 
                in the United States of an adapter device designed to 
                allow a lamp with a different base to fit into a medium 
                screw base socket manufactured after January 1, 2009.
            (2) Exemptions.--The regulations issued under paragraph (1) 
        shall include procedures for the Secretary to exempt specialty 
        lamps from the requirements of paragraph (1). The Secretary may 
        provide such an exemption only in cases where the Secretary 
        finds, after a hearing and opportunity for public comment, that 
        it is not technically feasible to serve a specialized lighting 
        application, such as a military, medical, public safety 
        application, or in certified historic lighting applications 
        using bulbs that meet the requirements of paragraph (1). In 
        addition, the Secretary shall include as an additional 
        criterion that exempted products are unlikely to be used in the 
        general service lighting applications.
            (3) Additional lamps types.--
                    (A) Manufacturers of rough service, vibration 
                service, vibration resistant, appliance, shatter 
                resistant, and three-way lamps shall report annual 
                sales volume to the Secretary. If the Secretary 
                determines that annual sales volume for any of these 
                lamp types increases by 100 percent relative to 2009 
                sales in any later year, then such lamps shall by 
                subject to the following standards:
                            (i) Appliance lamps shall use no more than 
                        40 watts.
                            (ii) Rough service lamps shall use no more 
                        than 40 watts.
                            (iii) Vibration service and vibration 
                        resistant lamps shall use no more than 40 
                        watts.
                            (iv) Three-way lamps shall comply with the 
                        standards in paragraph (1) at each level of 
                        rated lumen output.
                    (B) Rough service, vibration service, vibration 
                resistant, appliance, shatter resistant, and three-way 
                lamps shall be available for sale at retail in single 
                packs only.
            (4) Civil penalty.--The Secretary of Energy shall include 
        in regulations under this subsection a schedule of appropriate 
        civil penalties for violations of the prohibitions under this 
        subsection. Such penalties shall be in an amount sufficient to 
        ensure compliance with this section.
            (5) State preemption.--State standards for general service 
        lamps are preempted as of the date of enactment of this Act, 
        except--
                    (A) any State standard already enacted or adopted 
                as of the date of enactment of this Act may be enforced 
                until the Federal effective dates for each lamp 
                category, and such States may modify existing State 
                standards for general service lamps to conform with the 
                standards in paragraph (1) at any time;
                    (B) any State standard identical to the standards 
                in paragraph (1)(B) with an effective date no sooner 
                than January 1, 2015; and
                    (C) any State standard identical to Federal 
                standards, after such Federal standards are in effect.
            (6) Definitions.--For purposes of this section, the 
        following definitions apply:
                    (A) The term ``general service lamp'' means a 
                nonreflectorized lamp that--
                            (i) is intended for general service 
                        applications;
                            (ii) has a medium screw base;
                            (iii) has an initial lumen output no less 
                        than 200 lumens and no more than 3000 lumens;
                            (iv) has an input voltage range at least 
                        partially within 110 and 130 volts;
                            (v) has a A-15, A-19, A-21, A-23, A-25, PS-
                        25, PS-30, BT-14.5, BT-15, CP-19, TB-19, CA-22, 
                        or similar shape as defined in ANSI C78.20-
                        2003; and
                            (vi) has a bulb finish of the frosted, 
                        clear, soft white, modified spectrum, enhanced 
                        spectrum, full spectrum, or equivalent type.
                The following incandescent lamps are not general 
                service lamps: appliance, black light, bug, colored, 
                infrared, left-hand thread, marine, marine signal 
                service, mine service, plant light, reflector, rough 
                service, shatter resistant, sign service, silver bowl, 
                three-way, traffic signal, and vibration service or 
                vibration resistant.
                    (B) The term ``appliance lamp'' means any lamp 
                specifically designed to operate in a household 
                appliance. Examples of appliance lamps include oven 
                lamps, refrigerator lamps, and vacuum cleaner lamps.
                    (C) The term ``black light lamp'' means a lamp that 
                emits radiant energy in the UV-A band (315-400 nm) and 
                is designated and marketed as a ``black light''.
                    (D) The term ``bug lamp'' means a lamp that 
                contains a filter to suppress the blue and green 
                portions of the visible spectrum and is designated and 
                marketed as a ``bug light''.
                    (E) The term ``colored incandescent lamp'' means an 
                incandescent lamp designated and marketed as a colored 
                lamp that has a CRI of less than 50, as determined 
                according to the test method given in CIE publication 
                13.2, and has a correlated color temperature less than 
                2,500K, or greater than 4,600K, where correlated color 
                temperature is defined as the absolute temperature of a 
                blackbody whose chromaticity nearly resembles that of 
                the light source.
                    (F) The term ``infrared lamp'' means a lamp that 
                radiates predominately in the infrared region of the 
                electromagnetic spectrum, and where visible radiation 
                is not of principal interest.
                    (G) The term ``lamp'' means an electrical appliance 
                that includes a glass envelope and produces optical 
                radiation for the purpose of visual illumination, 
                designed to be installed into a luminaire by means of 
                an integral lamp-holder. Types of lamps include 
                incandescent, fluorescent, and high intensity discharge 
                (high pressure sodium and metal halide).
                    (H) The term ``left-handed thread lamp'' means a 
                lamp on which the base screws into a lamp socket in a 
                counter-clockwise direction, and screws out of a lamp 
                socket in a clockwise direction.
                    (I) The term ``marine lamp'' means a lamp 
                specifically designed and marketed to operate in a 
                marine application.
                    (J) The term ``marine signal service lamp'' means a 
                lamp specifically designed to provide signals to marine 
                vessels for seaway safety.
                    (K) The term ``mine service lamp'' means a lamp 
                specifically designed and marketed for use in mine 
                applications.
                    (L) The term ``plant light lamp'' means a lamp that 
                contains a filter to suppress yellow and green portions 
                of the spectrum and is designated and marketed as a 
                ``plant light''.
                    (M) The term ``rough service lamp'' means a lamp 
                that has a minimum of 5 supports with filament 
                configurations similar to but not limited to C7A, C11, 
                C17, and C22 as listed in Figure 6-12 of the 9th 
                edition of the IESNA Lighting handbook, where lead 
                wires are not counted as supports and that is 
                designated and marketed specifically for ``rough 
                service'' applications.
                    (N) The term ``shatter resistant lamp'' means a 
                lamp with an external coating on the bulb wall to 
                resist breakage and which is designated and marketed as 
                a shatter resistant lamp.
                    (O) The term ``showcase lamp'' means a lamp that 
                has a tubular bulb with a conventional screw base and 
                which is designated and marketed as a showcase lamp.
                    (P) The term ``sign service lamp'' means a lamp of 
                the vacuum type or gas-filled with sufficiently low 
                bulb temperature to permit exposed outdoor use on high-
                speed flashing circuits. The designation shall be on 
                the lamp packaging, and marketing materials shall 
                identify the lamp as being a sign service lamp.
                    (Q) The term ``silver bowl lamp'' means a lamp that 
                has a reflective coating applied directly to part of 
                the bulb surface and that reflects light in a backward 
                direction toward the lamp base. The designation shall 
                be on the lamp packaging, and marketing materials shall 
                identify the lamp as being a silver bowl lamp or 
                similar designation.
                    (R) The term ``three-way lamp'' means a lamp that 
                employs two filaments, operated separately and in 
                combination, to provide three light levels. The 
                designation shall be on the lamp packaging, and 
                marketing materials shall identify the lamp as being a 
                three-way lamp.
                    (S) The term ``traffic signal lamp'' means a lamp 
                that is designed with lifetime, wattage, focal length, 
                filament configuration, mounting, lamp glass, and lamp 
                base characteristics appropriate for use in traffic 
                signals.
                    (T) The term ``vibration service lamp'' or 
                ``vibration resistant lamp'' means a lamp with filament 
                configurations similar to but not limited to C-5, C-7A, 
                or C-9, as listed in Figure 6-12 of the 9th Edition of 
                the IESNA Lighting Handbook. The lamp is designated and 
                marketed specifically for vibration service or 
                vibration resistant applications. The designation shall 
                be on the lamp packaging, and marketing materials shall 
                identify the lamp as being vibration resistant or 
                vibration service.
    (b) Incentive Plan and Public Education.--
            (1) Incentive plan.--Not later than 6 months after the date 
        of enactment of this Act, the Secretary of Energy shall 
        transmit to the Congress a plan for encouraging and providing 
        incentives for the domestic production of light bulbs by United 
        States manufacturers that meet the efficacy levels shown in the 
        table in subsection (a)(1)(B).
            (2) Labeling rulemaking.--The Federal Trade Commission 
        shall conduct a rulemaking to consider the effectiveness of 
        current lamp labeling requirements and to consider alternative 
        labeling approaches that will help consumers to understand new 
        high-efficiency lamp products. Such labeling shall include, at 
        a minimum, information on lighting output (lumens), input power 
        (watts), efficiency (lumens per watt), lamp rated lifetime 
        (hours), annual or lifetime energy operating cost, and any 
        hazardous materials (such as mercury) that may be contained in 
        lamp products. The Federal Trade Commission shall complete this 
        rulemaking within one year after the date of enactment of this 
        Act.
            (3) National sales data tracking system.--The Secretary of 
        Energy shall develop and implement within one year after the 
        date of enactment of this Act a national sales data tracking 
        system in conjunction with the National Electrical 
        Manufacturers Association and other stakeholders for lamp 
        technologies, including Light Emitting Diodes, halogens, 
        incandescents, and compact fluorescent lamps.
    (c) Report on Mercury Use and Release.--Not later than 1 year after 
the date of enactment of this Act, the Secretary of Energy, in 
cooperation with the Administrator of the Environmental Protection 
Agency, shall submit to Congress a report describing recommendations 
relating to the means by which the Federal Government may reduce or 
prevent the release of mercury during the manufacture, transportation, 
storage, or disposal of general service lamps.

SEC. 9022. INCANDESCENT REFLECTOR LAMPS.

    (a) Definitions.--Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) is amended--
            (1) in paragraph (30)(C)(ii)--
                    (A) in the matter preceding subclause (I)--
                            (i) by striking ``or similar bulb shapes 
                        (excluding ER or BR)'' and inserting ``ER, BR, 
                        BPAR, or similar bulb shapes''; and
                            (ii) by striking ``2.75'' and inserting 
                        ``2.25''; and
                    (B) by striking ``is either--'' and all that 
                follows through subclause (II) and inserting ``has a 
                rated wattage that is greater than 40 watts.''; and
            (2) by adding at the end the following:
            ``(53) The term `BPAR incandescent reflector lamp' means a 
        reflector lamp as shown in figure C78.21-278 on page 32 of ANSI 
        C78.21-2003.
            ``(54)(A) The term `BR incandescent reflector lamp' means a 
        reflector lamp that has--
                    ``(i) a bulged section below the major diameter of 
                the bulb and above the approximate baseline of the 
                bulb, as shown in figure 1 (RB) on page 7 of ANSI 
                C79.1-1994, incorporated by reference in section 430.22 
                of title 10, Code of Federal Regulations (as in effect 
                on the date of enactment of this paragraph); and
                    ``(ii) a finished size and shape shown in ANSI 
                C78.21-1989, including the referenced reflective 
                characteristics in part 7 of ANSI C78.21.
            ``(B) The term `BR30' refers to a BR incandescent reflector 
        lamp with a diameter of 30/8ths of an inch and the term `BR40' 
        refers to a BR incandescent reflector lamp with a diameter of 
        40/8ths of an inch.
            ``(55)(A) The term `ER incandescent reflector lamp' means a 
        reflector lamp that has--
                    ``(i) an elliptical section below the major 
                diameter of the bulb and above the approximate baseline 
                of the bulb, as shown in figure 1 (RE) on page 7 of 
                ANSI C79.1-1994, incorporated by reference in section 
                430.22 of title 10, Code of Federal Regulations (as in 
                effect on the date of enactment of this paragraph); and
                    ``(ii) a finished size and shape shown in ANSI 
                C78.21-1989, incorporated by reference in section 
                430.22 of title 10, Code of Federal Regulations (as in 
                effect on the date of enactment of this paragraph).
            ``(B) The term `ER30' refers to an ER incandescent 
        reflector lamp with a diameter of 30/8ths of an inch and the 
        term `ER40' refers to an ER incandescent reflector lamp with a 
        diameter of 40/8ths of an inch.
            ``(56) The term `R20 incandescent reflector lamp' means a 
        reflector lamp that has a face diameter of approximately 2.5 
        inches, as shown in figure 1(R) on page 7 of ANSI C79.1-
        1994.''.
    (b) Standards for Fluorescent Lamps and Incandescent Reflector 
Lamps.--Section 325(i) of the Energy Policy and Conservation Act (42 
U.S.C. 6925(i)) is amended by striking paragraph (1) and inserting the 
following:
            ``(1) Standards.--
                    ``(A) Definition of effective date.--In this 
                paragraph, except as specified in subparagraphs (C) and 
                (D), the term `effective date' means, with respect to 
                each type of lamp specified in a table contained in 
                subparagraph (B), the last day of the period of months 
                corresponding to that type of lamp, as specified in the 
                table, that follows the date of enactment of the Energy 
                Efficiency Improvement Act of 2007.
                    ``(B) Minimum standards.--Each of the following 
                general service fluorescent lamps and incandescent 
                reflector lamps manufactured after the effective date 
                specified in the tables contained in this paragraph 
                shall meet or exceed the following lamp efficacy and 
                CRI standards:


                                               ``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                                  Effective Date
           Lamp Type               Nominal Lamp       Minimum CRI       Minimum Average Lamp        (Period of
                                      Wattage                              Efficacy (LPW)            Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
                                       35 W               45                    75.0                    36
2-foot U-shaped................        >35 W              69                    68.0                    36
                                       35 W               45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
                                       65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
                                       100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------



                     ``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
                                                          Effective Date
     Nominal Lamp Wattage         Minimum Average Lamp      (Period of
                                     Efficacy (LPW)           Months)
------------------------------------------------------------------------
 40-50.......................             10.5                  36
 51-66.......................             11.0                  36
 67-85.......................             12.5                  36
 86-115......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------

                    ``(C) Exemptions.--The standards specified in 
                subparagraph (B) shall not apply to the following types 
                of incandescent reflector lamps:
                            ``(i) Lamps rated at 50 watts or less of 
                        the following types: ER30, BR30, BR40, and ER40 
                        lamps.
                            ``(ii) Lamps rated at 65 watts of the 
                        following types: BR30, BR40, and ER40 lamps.
                            ``(iii) R20 incandescent reflector lamps of 
                        45 watts or less.
                    ``(D) Effective dates.--
                            ``(i) ER, br, and bpar lamps.--Except as 
                        provided in subparagraph (A), the standards 
                        specified in subparagraph (B) shall apply with 
                        respect to ER incandescent reflector lamps, BR 
                        incandescent reflector lamps, BPAR incandescent 
                        reflector lamps, and similar bulb shapes on and 
                        after January 1, 2008.
                            ``(ii) Lamps between 2.25-2.75 inches in 
                        diameter.--The standards specified in 
                        subparagraph (B) shall apply with respect to 
                        incandescent reflector lamps with a diameter of 
                        more than 2.25 inches, but not more than 2.75 
                        inches, on and after January 1, 2008.''.

SEC. 9023. USE OF ENERGY EFFICIENT LIGHTING FIXTURES AND BULBS.

    (a) In General.--Chapter 33 of title 40, United States Code, is 
amended--
            (1) by redesignating sections 3313, 3314, and 3315 as 
        sections 3314, 3315, and 3316, respectively; and
            (2) by inserting after section 3312 the following:
``Sec. 3313. Use of energy efficient lighting fixtures and bulbs
    ``(a) Construction and Alteration of Public Buildings.--Each public 
building constructed or significantly altered by the Administrator of 
General Services shall be equipped, to the maximum extent feasible as 
determined by the Administrator, with lighting fixtures and bulbs that 
are energy efficient.
    ``(b) Maintenance of Public Buildings.--Each lighting fixture or 
bulb that is replaced by the Administrator in the normal course of 
maintenance of public buildings shall be replaced, to the maximum 
extent feasible as determined by the Administrator, with a lighting 
fixture or bulb that is energy efficient.
    ``(c) Considerations.--In making a determination under this section 
concerning the feasibility of installing a lighting fixture or bulb 
that is energy efficient, the Administrator shall consider--
            ``(1) the life cycle cost effectiveness of the fixture or 
        bulb;
            ``(2) the compatibility of the fixture or bulb with 
        existing equipment;
            ``(3) whether use of the fixture or bulb could result in 
        interference with productivity;
            ``(4) the aesthetics relating to use of the fixture or 
        bulb; and
            ``(5) such other factors as the Administrator determines 
        appropriate.
    ``(d) Energy Star.--A lighting fixture or bulb shall be treated as 
being energy efficient for purposes of this section if--
            ``(1) the fixture or bulb is certified under the Energy 
        Star program established by section 324A of the Energy Policy 
        and Conservation Act (42 U.S.C. 6294a);
            ``(2) in the case of all LED luminaires, lamps, and systems 
        whose efficacy (lumens per watt) and Color Rendering Index 
        (CRI) meet the requirements for minimum luminaire efficacy and 
        CRI for the Energy Star certification, as verified by an 
        independent third-party testing laboratory that conducts its 
        tests according to the procedures and recommendations of the 
        Illuminating Engineering Society of North America, even if 
        these luminaires, lamps, and systems have not received such 
        certification; or
            ``(3) the Administrator has otherwise determined that the 
        fixture or bulb is energy efficient.
    ``(e) Significant Alterations.--A public building shall be treated 
as being significantly altered for purposes of subsection (a) if the 
alteration is subject to congressional approval under section 3307.
    ``(f) Effective Date.--The requirements of subsections (a) and (b) 
shall take effect one year after the date of enactment of this 
subsection.''.
    (b) Conforming Amendment.--The analysis for chapter 33 of title 40, 
United States Code, is amended by striking the items relating to 
sections 3313, 3314, and 3315 and inserting the following:

``3313. Use of energy efficient lighting fixtures and bulbs.
``3314. Delegation.
``3315. Report to Congress.
``3316. Certain authority not affected.''.

                PART 3--RESIDENTIAL BUILDING EFFICIENCY

SEC. 9031. ENCOURAGING STRONGER BUILDING CODES.

    (a) In General.--Section 304 of the Energy Conservation and 
Production Act (42 U.S.C. 6833) is amended to read as follows:

``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

    ``(a) Updating National Model Building Energy Codes.--(1) The 
Secretary shall support updating the national model building energy 
codes and standards at least every three years to achieve overall 
energy savings, compared to the 2006 IECC for residential buildings and 
ASHRAE Standard 90.1 2004 for commercial buildings, of at least--
            ``(A) 30 percent by 2010;
            ``(B) 50 percent by 2020; and
            ``(C) targets to be set by the Secretary in intermediate 
        and subsequent years, at the maximum level of energy efficiency 
        that is technologically feasible and life-cycle cost effective.
    ``(2)(A) Whenever the provisions of the IECC or ASHRAE Standard 
90.1 regarding building energy use are revised, the Secretary shall, 
not later than 6 months after the date of such revision, determine--
            ``(i) whether such revision will improve energy efficiency 
        in buildings; and
            ``(ii) whether such revision will meet the targets under 
        paragraph (1).
    ``(B) If the Secretary makes a determination under subparagraph 
(A)(ii) that a code or standard does not meet the targets under 
paragraph (1), or if a national model code or standard is not updated 
for more than three years, then the Secretary shall within 12 months 
propose a modified code or standard that meets such targets. The 
modified code or standard shall serve as the baseline for the next 
determination under subparagraph (A)(i).
    ``(C) The Secretary shall provide the opportunity for public 
comment on targets, determinations, and modified codes and standards 
under this subsection, and shall publish notice of targets, 
determinations, and modified codes and standards under this subsection 
in the Federal Register.
    ``(b) State Certification of Building Energy Code Updates.--(1) Not 
later than 2 years after the date of enactment of the Energy Efficiency 
Improvement Act of 2007, each State shall certify to the Secretary that 
it has reviewed and updated the provisions of its residential and 
commercial building codes regarding energy efficiency. Such 
certification shall include a demonstration that such State's code 
provisions meet or exceed the 2006 IECC for residential buildings and 
the ASHRAE Standard 90.1-2004 for commercial buildings, or achieve 
equivalent or greater energy savings.
    ``(2)(A) If the Secretary makes an affirmative determination under 
subsection (a)(2)(A)(i) or proposes a modified code or standard under 
subsection (a)(2)(B), each State shall within 2 years certify that it 
has reviewed and updated the provisions of its building code regarding 
energy efficiency. Such certification shall include a demonstration 
that such State's code provisions meet or exceed the revised code or 
standard, or achieve equivalent or greater energy savings.
    ``(B) If the Secretary fails to make a determination under 
subsection (a)(2)(A)(i) by the date specified in subsection (a)(2), or 
makes a negative determination, each State shall within 2 years after 
the specified date or the date of the determination, certify that it 
has reviewed the revised code or standard, and updated the provisions 
of its building code regarding energy efficiency to meet or exceed any 
provisions found to improve energy efficiency in buildings, or to 
achieve equivalent or greater energy savings in other ways.
    ``(c) State Certification of Compliance With Building Codes.--(1) 
Each State shall, not later than 3 years after a certification under 
subsection (b), certify that it has achieved compliance with the 
certified building energy code. Such certification shall include 
documentation of the rate of compliance based on independent 
inspections of a random sample of the new and renovated buildings 
covered by the code in the preceding year.
    ``(2) A State shall be considered to achieve compliance under 
paragraph (1) if--
            ``(A) at least 90 percent of new and renovated buildings 
        covered by the code in the preceding year substantially meet 
        all the requirements of the code; or
            ``(B) the estimated excess energy use of new and renovated 
        buildings that did not meet the code in the preceding year, 
        compared to a baseline of comparable buildings that meet the 
        code, is not more than 10 percent of the estimated energy use 
        of all new and renovated buildings covered by the code in the 
        preceding year.
    ``(d) Failure to Meet Deadlines.--(1) The Secretary shall permit 
extensions of the deadlines for the certification requirements under 
subsections (b) and (c) of this section for up to 1 year if a State can 
demonstrate that it has made a good faith effort to comply with such 
requirements and that it has made significant progress in doing so.
    ``(2) Any State for which the Secretary has not accepted a 
certification by a deadline under subsection (b) or (c) of this 
section, with any extension granted under paragraph (1), is out of 
compliance with this section.
    ``(3) In any State that is out of compliance with this section, a 
local government may be in compliance with this section by meeting the 
certification requirements under subsections (b) and (c) of this 
section.
    ``(e) Technical Assistance.--(1) The Secretary shall provide 
technical assistance, including building energy analysis and design 
tools, building demonstrations, and design assistance and training to 
enable the national model building energy codes and standards to meet 
the targets in subsection (a)(1).
    ``(2) The Secretary shall provide technical assistance to States to 
implement the requirements of this section, including procedures for 
States to demonstrate that their code provisions achieve equivalent or 
greater energy savings than the national model codes and standards, and 
to improve and implement State residential and commercial building 
energy efficiency codes or to otherwise promote the design and 
construction of energy efficient buildings.
    ``(f) Availability of Incentive Funding.--(1) The Secretary shall 
provide incentive funding to States to implement the requirements of 
this section, and to improve and implement State residential and 
commercial building energy efficiency codes, including increasing and 
verifying compliance with such codes. In determining whether, and in 
what amount, to provide incentive funding under this subsection, the 
Secretary shall consider the actions proposed by the State to implement 
the requirements of this section, to improve and implement residential 
and commercial building energy efficiency codes, and to promote 
building energy efficiency through the use of such codes.
    ``(2) Additional funding shall be provided under this subsection 
for implementation of a plan to achieve and document at least a 90 
percent rate of compliance with residential and commercial building 
energy efficiency codes, based on energy performance--
            ``(A) to a State that has adopted and is implementing, on a 
        Statewide basis--
                    ``(i) a residential building energy efficiency code 
                that meets or exceeds the requirements of the 2006 
                IECC, or any succeeding version of that code that has 
                received an affirmative determination from the 
                Secretary under subsection (a)(2)(A)(i); and
                    ``(ii) a commercial building energy efficiency code 
                that meets or exceeds the requirements of the ASHRAE 
                Standard 90.1-2004, or any succeeding version of that 
                standard that has received an affirmative determination 
                from the Secretary under subsection (a)(2)(A)(i); or
            ``(B) in a State in which there is no Statewide energy code 
        either for residential buildings or for commercial buildings, 
        or where State codes fail to comply with subparagraph (A), to a 
        local government that has adopted and is implementing 
        residential and commercial building energy efficiency codes, as 
        described in subparagraph (A).
    ``(3) Of the amounts made available under this subsection, the 
Secretary may use amounts required, not exceeding $500,000 for each 
State, to train State and local officials to implement codes described 
in paragraph (2).
    ``(4)(A) There are authorized to be appropriated to carry out this 
subsection--
            ``(i) $25,000,000 for each of fiscal years 2008 through 
        2012; and
            ``(ii) such sums as are necessary for fiscal year 2013 and 
        each fiscal year thereafter.
    ``(B) Funding provided to States under paragraph (2) for each 
fiscal year shall not exceed one-half of the excess of funding under 
this subsection over $5,000,000 for the fiscal year.''.
    (b) Definition.--Section 303 of the Energy Conservation and 
Production Act (42 U.S.C. 6832) is amended by adding at the end the 
following new paragraph:
            ``(17) The term `IECC' means the International Energy 
        Conservation Code.''.

SEC. 9032. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED HOUSING.

    (a) In General.--Not later than 4 years after the date of enactment 
of this Act, the Secretary of Energy shall by regulation establish 
standards for energy efficiency in manufactured housing.
    (b) Certain Requirements.--The regulations under subsection (a) 
shall be in accordance with the following:
            (1) The energy conservation standards established under 
        this subsection shall be based on the most recent version of 
        the International Energy Conservation Code (including 
        supplements) except where the Secretary finds that such code is 
        not cost-effective, or a more stringent standard would be more 
        cost-effective, based on total life-cycle construction and 
        operating costs.
            (2) The energy conservation standards established under 
        this subsection may--
                    (A) take into consideration the design and factory 
                construction techniques of manufactured homes;
                    (B) be based on the climate zones established by 
                the Department of Housing and Urban Development rather 
                than those under the International Energy Conservation 
                Code; and
                    (C) provide for alternative practices that result 
                in net estimated energy consumption equal to or less 
                than the specified standards.
            (3) The energy conservation standards established under 
        this subsection shall be updated within one year after the date 
        of enactment of this Act and within one year after any revision 
        to the International Energy Conservation Code.
    (c) Enforcement.--Any manufacturer of manufactured housing that 
violates a provision of the regulations under subsection (a) is liable 
to the United States for a civil penalty in an amount not exceeding 1 
percent of the manufacturer's retail list price of the manufactured 
housing.

SEC. 9033. BASELINE BUILDING DESIGNS.

    Section 327(f)(3)(D) of the Energy Policy and Conservation Act (42 
U.S.C. 6297(f)(3)(D)) is amended to read as follows:
            ``(D) If the code uses one or more baseline building 
        designs against which all submitted building designs are to be 
        evaluated and such baseline building designs contain a covered 
        product subject to an energy conservation standard established 
        in or prescribed under section 325, the baseline building 
        designs are based on the efficiency level for such covered 
        product which--
                    ``(i) meets but does not exceed such standard;
                    ``(ii) is the efficiency level required by a 
                regulation of that State for which the Secretary has 
                issued a rule granting a waiver under subsection (d) of 
                this section; or
                    ``(iii) is a level that, when evaluated in the 
                baseline building design, the State has found to be 
                feasible and cost-effective.''.

SEC. 9034. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.

    (a) Amendment.--Section 422 of the Energy Conservation and 
Production Act (42 U.S.C. 6872) is amended by striking ``$500,000,000 
for fiscal year 2006, $600,000,000 for fiscal year 2007, and 
$700,000,000 for fiscal year 2008'' and inserting ``$600,000,000 for 
fiscal year 2007, and $750,000,000 for each of fiscal years 2008, 2009, 
2010, 2011, and 2012. From those sums, the Secretary is authorized to 
initiate an Alternative Delivery System Pilot Project to examine 
options for decreasing energy consumption associated with heating and 
cooling while increasing household participation by focusing on key 
energy saving components. Alternative Delivery System Pilot Projects 
should be undertaken in both hot and cold urban areas''.
    (b) Sustainable Energy Resources for Consumers Grants.--(1) The 
Secretary of Energy may make funding available to local Weatherization 
agencies from amounts authorized under the amendment made by subsection 
(a) to expand the weatherization assistance program for residential 
buildings to include materials, benefits, and renewable and domestic 
energy technologies not currently covered by the program, provided that 
the State Weatherization grantee has certified that the applicant has 
the capacity to carry out the proposed activities and that the grantee 
will include the project in its financial oversight of the 
Weatherization Assistance program.
    (2) In selecting the grants, the program shall give priority to--
            (A) the expected effectiveness and benefits of the proposed 
        project to low- and moderate income energy consumers;
            (B) the potential for replication of successful results;
            (C) the impact on the health and safety and energy costs of 
        those served; and
            (D) the extent of partnerships with other public and 
        private entities that contribute to the resources and 
        implementation of the program, including financial 
        partnerships.
    (3) Funding for such projects may equal up to two percent of 
funding in any fiscal year, provided that no funding is utilized for 
Sustainable Energy Resources for Consumers grants in any fiscal year in 
which Weatherization appropriations are less than $275,000,000.

           PART 4--COMMERCIAL AND FEDERAL BUILDING EFFICIENCY

SEC. 9041. DEFINITIONS.

    In this part:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (2) Advisory committee.--The term ``Advisory Committee'' 
        means the Green Building Advisory Committee established under 
        section 9042(c)(2).
            (3) Commercial director.--The term Commercial Director 
        means the individual appointed to the position established 
        under section 9043(a).
            (4) Consortium.--The term ``Consortium'' means the High-
        Performance Green Building Partnership Consortium created in 
        response to section 9042(c)(1) to represent the private sector 
        in a public-private partnership to promote high-performance 
        green buildings and zero-net-energy commercial buildings.
            (5) Federal director.--The term ``Federal Director'' means 
        the individual appointed to the position established under 
        section 9042(a).
            (6) Federal facility.--The term ``Federal facility'' means 
        any building that is constructed, renovated, leased, or 
        purchased in part or in whole for use by the Federal 
        Government.
            (7) High-performance green building.--The term ``high-
        performance green building'' means a building that, during its 
        life-cycle, as compared with similar buildings (as measured by 
        Commercial Buildings Energy Consumption Survey or Residential 
        Energy Consumption Survey data from the Energy Information 
        Agency)--
                    (A) reduces energy, water, and material resource 
                use;
                    (B) improves indoor environmental quality, 
                including reducing indoor pollution, improving thermal 
                comfort, and improving lighting and acoustic 
                environments that affect occupant health and 
                productivity;
                    (C) reduces negative impacts on the environment 
                throughout the life-cycle of the building, including 
                air and water pollution and waste generation;
                    (D) increases the use of environmentally preferable 
                products, including biobased, recycled content, and 
                nontoxic products with lower life-cycle impacts;
                    (E) increases reuse and recycling opportunities;
                    (F) integrates systems in the building;
                    (G) reduces the environmental and energy impacts of 
                transportation through building location and site 
                design that support a full range of transportation 
                choices for users of the building; and
                    (H) considers indoor and outdoor effects of the 
                building on human health and the environment, 
                including--
                            (i) improvements in worker productivity;
                            (ii) the life-cycle impacts of building 
                        materials and operations; and
                            (iii) other factors that the Federal 
                        Director or the Commercial Director consider to 
                        be appropriate.
            (8) Life-cycle.--The term ``life-cycle'', with respect to a 
        high-performance green building, means all stages of the useful 
        life of the building (including components, equipment, systems, 
        and controls of the building) beginning at conception of a 
        high-performance green building project and continuing through 
        site selection, design, construction, landscaping, 
        commissioning, operation, maintenance, renovation, 
        deconstruction or demolition, removal, and recycling of the 
        high-performance green building.
            (9) Life-cycle assessment.--The term ``life-cycle 
        assessment'' means a comprehensive system approach for 
        measuring the environmental performance of a product or service 
        over the life of the product or service, beginning at raw 
        materials acquisition and continuing through manufacturing, 
        transportation, installation, use, reuse, and end-of-life waste 
        management.
            (10) Life-cycle costing.--The term ``life-cycle costing'', 
        with respect to a high-performance green building, means a 
        technique of economic evaluation that--
                    (A) sums, over a given study period, the costs of 
                initial investment (less resale value), replacements, 
                operations (including energy use), and maintenance and 
                repair of an investment decision; and
                    (B) is expressed--
                            (i) in present value terms, in the case of 
                        a study period equivalent to the longest useful 
                        life of the building, determined by taking into 
                        consideration the typical life of such a 
                        building in the area in which the building is 
                        to be located; or
                            (ii) in annual value terms, in the case of 
                        any other study period.
            (11) Office of commercial high-performance green 
        buildings.--The term ``Office of Commercial High-Performance 
        Green Buildings'' refers to the office established under 
        section 9043(a).
            (12) Office of federal high-performance green buildings.--
        The term ``Office of Federal High-Performance Green Buildings'' 
        refers to the Office established undersection 9042(a).
            (13) Practices.--The term ``practices'' means design, 
        financing, permitting, construction, commissioning, operation 
        and maintenance, and other practices that contribute to 
        achieving zero-net-energy buildings or facilities.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (15) Zero-net-energy commercial building.--The term ``zero-
        net-energy commercial building'' means a commercial building 
        that is designed, constructed, and operated to--
                    (A) require a greatly reduced quantity of energy to 
                operate;
                    (B) meet the balance of energy needs from sources 
                of energy that do not produce greenhouse gases;
                    (C) therefore result in no net emissions of 
                greenhouse gases; and
                    (D) be economically viable.

SEC. 9042. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.

    (a) Establishment of Office.--Not later than 60 days after the date 
of enactment of this Act, the Administrator shall establish within the 
General Services Administration an Office of Federal High-Performance 
Green Buildings, and appoint an individual to serve as Federal Director 
in, a position in the career-reserved Senior Executive service, to--
            (1) establish and manage the Office of Commercial High-
        Performance Green Buildings; and
            (2) carry out other duties as required under this part.
    (b) Compensation.--The compensation of the Federal Director shall 
not exceed the maximum rate of basic pay for the Senior Executive 
Service under section 5382 of title 5, United States Code, including 
any applicable locality-based comparability payment that may be 
authorized under section 5304(h)(2)(C) of that title.
    (c) Duties.--The Federal Director shall--
            (1) coordinate the activities of the Office of Federal 
        High-Performance Green Buildings with the activities of the 
        Office of Commercial High-Performance Green Buildings;
            (2) ensure full coordination of high-performance green 
        building information and activities within the General Services 
        Administration and all relevant agencies, including, at a 
        minimum--
                    (A) the Environmental Protection Agency;
                    (B) the Office of the Federal Environmental 
                Executive;
                    (C) the Office of Federal Procurement Policy;
                    (D) the Department of Energy;
                    (E) the Department of Health and Human Services; 
                and
                    (F) the Department of Defense;
            (3) establish a senior-level Federal Green Building 
        Advisory Committee, which shall provide advice and 
        recommendations in accordance with subsection (d);
            (4) identify and biennially reassess improved or higher 
        rating standards recommended by the Advisory Committee;
            (5) ensure full coordination of research and development 
        information relating to Federal high-performance green building 
        initiatives;
            (6) identify and develop Federal high-performance green 
        building standards that could be used for all types of Federal 
        facilities;
            (7) establish green practices that can be used throughout 
        the life of a Federal facility; and
            (8) review and analyze current Federal budget practices and 
        life-cycle costing issues, and make recommendations to 
        Congress, in accordance with subsection (d).
    (d) Additional Duties.--The Federal Director, in coordination with 
the Commercial Director and the Advisory Committee, shall--
            (1) identify, review, and analyze current budget and 
        contracting practices that affect achievement of high-
        performance green buildings, including the identification of 
        barriers to high-performance green building life-cycle costing 
        and budgetary issues;
            (2) develop guidance and conduct training sessions with 
        budget specialists and contracting personnel from Federal 
        agencies and budget examiners to apply life-cycle cost criteria 
        to actual projects;
            (3) identify tools to aid life-cycle cost decisionmaking; 
        and
            (4) explore the feasibility of incorporating the benefits 
        of high-performance green buildings, such as security benefits, 
        into a cost-budget analysis to aid in life-cycle costing for 
        budget and decisionmaking processes.
    (e) Incentives.--As soon as practicable after the date of enactment 
of this Act, the Federal Director shall identify incentives to 
encourage the use of high-performance green buildings and related 
technology in the operations of the Federal Government, including 
through--
            (1) the provision of recognition awards; and
            (2) the maximum feasible retention of financial savings in 
        the annual budgets of Federal agencies for use in reinvesting 
        in future high-performance green building initiatives.
    (f) Report.--Not later than 2 years after the date of enactment of 
this Act, and biennially thereafter, the Federal Director shall submit 
to Congress a report that--
            (1) describes the status of the Federal high-performance 
        green building initiatives in effect as of the date of the 
        report, including--
                    (A) the extent to which the programs are being 
                carried out in accordance with this part; and
                    (B) the status of funding requests and 
                appropriations for those programs;
            (2) identifies within the planning, budgeting, and 
        construction process all types of Federal facility procedures 
        that inhibit new and existing Federal facilities from becoming 
        high-performance green buildings;
            (3) identifies inconsistencies, as reported to the Advisory 
        Committee, in Federal law with respect to product acquisition 
        guidelines and high-performance product guidelines;
            (4) recommends language for uniform standards for use by 
        Federal agencies in environmentally responsible acquisition;
            (5) in coordination with the Office of Management and 
        Budget, reviews the budget process for capital programs with 
        respect to alternatives for--
                    (A) restructuring of budgets to require the use of 
                complete energy and environmental cost accounting;
                    (B) using operations expenditures in budget-related 
                decisions while simultaneously incorporating 
                productivity and health measures (as those measures can 
                be quantified by the Office of Federal High-Performance 
                Green Buildings, with the assistance of universities 
                and national laboratories);
                    (C) permitting Federal agencies to retain all 
                identified savings accrued as a result of the use of 
                life-cycle costing for future high-performance green 
                building initiatives; and
                    (D) identifying short-term and long-term cost 
                savings that accrue from high-performance green 
                buildings, including those relating to health and 
                productivity;
            (6) identifies green, self-sustaining technologies to 
        address the operational needs of Federal facilities in times of 
        national security emergencies, natural disasters, or other dire 
        emergencies;
            (7) summarizes and highlights development, at the State and 
        local level, of high-performance green building initiatives, 
        including executive orders, policies, or laws adopted promoting 
        high-performance green building (including the status of 
        implementation of those initiatives); and
            (8) includes, for the 2-year period covered by the report, 
        recommendations to address each of the matters, and a plan for 
        implementation of each recommendation, described in paragraphs 
        (1) through (7).
    (g) Implementation.--The Office of Federal High-Performance Green 
Buildings shall carry out each plan for implementation of 
recommendations under subsection (f)(8).

SEC. 9043. COMMERCIAL HIGH-PERFORMANCE GREEN BUILDINGS.

    (a) Establishment of Office.--Not later than 60 days after the date 
of enactment of this Act, the Secretary shall establish within the 
Department of Energy, Office of Energy Efficiency and Renewable Energy, 
an Office of Commercial High-Performance Green Buildings, and appoint 
an individual to serve as Commercial Director in, a position in the 
career-reserved Senior Executive service, to--
            (1) establish and manage the Office of Commercial High-
        Performance Green Buildings; and
            (2) carry out other duties as required under this part.
    (b) Compensation.--The compensation of the Commercial Director 
shall not exceed the maximum rate of basic pay for the Senior Executive 
Service under section 5382 of title 5, United States Code, including 
any applicable locality-based comparability payment that may be 
authorized under section 5304(h)(2)(C) of that title.
    (c) Duties.--The Commercial Director shall, with respect to 
development of high-performance green buildings and zero-energy 
commercial buildings nationwide--
            (1) coordinate the activities of the Office of Commercial 
        High-Performance Green Buildings with the activities of the 
        Office of Federal High-Performance Green Buildings;
            (2) develop the legal predicates and agreements for, 
        negotiate, and establish one or more public-private 
        partnerships with the Consortium, members of the Consortium, 
        and other capable parties meeting the qualifications of the 
        Consortium, to further such development;
            (3) represent the public and the Department of Energy in 
        negotiating and performing in accord with such public-private 
        partnerships;
            (4) use appropriated funds in an effective manner to 
        encourage the maximum investment of private funds to achieve 
        such development; and
            (5) establish a national high-performance green building 
        clearinghouse in accordance withsection 9045(1), which shall 
        provide high-performance green building information through--
                    (A) outreach;
                    (B) education; and
                    (C) the provision of technical assistance.
    (d) Reporting.--The Commercial Director shall report directly to 
the Assistant Secretary for Energy Efficiency and Renewable Energy, or 
to other senior officials in a way that facilitates the integrated 
program of this part for both energy efficiency and renewable energy 
and both technology development and technology deployment.
    (e) Coordination.--The Commercial Director shall ensure full 
coordination of high-performance green building information and 
activities, including activities under this part, within the Federal 
Government by working with the General Services Administration and all 
relevant agencies, including, at a minimum--
            (1) the Environmental Protection Agency;
            (2) the Office of the Federal Environmental Executive;
            (3) the Office of Federal Procurement Policy;
            (4) the Department of Energy, particularly the Federal 
        Energy Management Program;
            (5) the Department of Health and Human Services;
            (6) the Department of Housing and Urban Development;
            (7) the Department of Defense; and
            (8) such nonprofit high-performance green building rating 
        and analysis entities as the Commercial Director determines can 
        offer support, expertise, and review services.
    (f) High-Performance Green Building Partnership Consortium.--
            (1) Recognition.--Not later than 90 days after the date of 
        enactment of this Act, the Commercial Director shall formally 
        recognize one or more groups that qualify as a high-performance 
        green building partnership consortium.
            (2) Representation to qualify.--To qualify under this 
        section, any consortium shall include representation from--
                    (A) the design professions, including national 
                associations of architects and of professional 
                engineers;
                    (B) the development, construction, financial, and 
                real estate industries;
                    (C) building owners and operators from the public 
                and private sectors;
                    (D) academic and research organizations, including 
                at least one national laboratory with extensive 
                commercial building energy expertise;
                    (E) building code agencies and organizations, 
                including a model energy code-setting organization;
                    (F) independent high-performance green building 
                associations or councils;
                    (G) experts in indoor air quality and environmental 
                factors;
                    (H) experts in intelligent buildings and integrated 
                building information systems;
                    (I) utility energy efficiency programs; and
                    (J) nongovernmental energy efficiency 
                organizations.
            (3) Funding.--The Secretary may make payments to the 
        Consortium pursuant to the terms of a public-private 
        partnership for such activities of the Consortium undertaken 
        under such a partnership as described in this part directly to 
        the Consortium or through one or more of its members.
    (g) Report.--Not later than 2 years after the date of enactment of 
this Act, and biennially thereafter, the Commercial Director, in 
consultation with the Consortium, shall submit to Congress a report 
that--
            (1) describes the status of the high-performance green 
        building initiatives under this part and other Federal programs 
        affecting commercial high-performance green buildings in effect 
        as of the date of the report, including--
                    (A) the extent to which the programs are being 
                carried out in accordance with this part; and
                    (B) the status of funding requests and 
                appropriations for those programs; and
            (2) summarizes and highlights development, at the State and 
        local level, of high-performance green building initiatives, 
        including executive orders, policies, or laws adopted promoting 
        high-performance green building (including the status of 
        implementation of those initiatives).

SEC. 9044. ZERO-ENERGY COMMERCIAL BUILDINGS INITIATIVE.

    (a) Goal.--The Commercial Director, in partnership with the 
Consortium, shall periodically study and refine a national goal to 
reduce commercial building energy use and achieve zero-net-energy 
commercial buildings. Unless the Commercial Director concludes that 
such targets are unachievable or unrealistic, the goal shall include 
objectives that--
            (1) all new commercial buildings constructed after the 
        beginning of 2025 are zero-net-energy commercial buildings;
            (2) by 2035, 50 percent of the then existing stock of 
        commercial buildings that were constructed before 2025 are 
        zero-net-energy commercial buildings; and
            (3) by 2050, all commercial buildings are zero-net-energy 
        commercial buildings.
    (b) Strategy.--The Commercial Director, in partnership with the 
Consortium, shall develop a market transformation strategy intended to 
achieve the adopted goal by significantly accelerating the development 
and widespread deployment of energy efficiency technologies, practices, 
and policies in both new and existing commercial buildings, and by 
leveraging State, utility, and private sector commercial building 
energy efficiency programs.
    (c) Initiative.--The Commercial Director, in partnership with the 
Consortium, shall implement an initiative to carry out the strategy 
that may include--
            (1) support for industry efforts to develop advanced 
        materials, equipment, controls, practices, and integrated 
        building systems aimed at achieving zero-net-energy commercial 
        buildings and monitoring and benchmarking commercial building 
        energy use;
            (2) training, education, and awareness programs, 
        including--
                    (A) programs in cooperation with industry and 
                professional associations and educational institutions 
                to provide education on achieving sustainable and 
                energy-efficient performance through proper system and 
                structure design, construction, and operation to--
                            (i) architects;
                            (ii) mechanical, electrical, and plumbing 
                        engineers;
                            (iii) contractors; and
                            (iv) construction managers and facility 
                        managers;
                    (B) programs to incorporate energy efficiency and 
                sustainability elements into architecture, engineering, 
                and vocational training and certification curricula, 
                including professional certification and continuing 
                education programs; and
                    (C) regional and national public education 
                campaigns to educate real estate, finance, and other 
                commercial buildings professionals and the general 
                public about the opportunities for energy and cost 
                savings and associated environmental and health 
                benefits associated with high-performance green 
                buildings;
            (3) pilot projects to demonstrate and document the 
        performance of scalable and replicable technologies, practices, 
        and policies to achieve high-performance green buildings and 
        zero-net-energy commercial buildings, including--
                    (A) pilot projects representing each market segment 
                or building type in each climate region that include 
                current best practice in integrated design, technology 
                and systems, construction, commissioning, operation, 
                and building information management;
                    (B) pilot projects, in cooperation with State and 
                local governments, in public buildings; and
                    (C) pilot projects, in cooperation with public 
                school districts and colleges and universities, to--
                            (i) demonstrate such technologies and 
                        practices in new and existing facilities;
                            (ii) involve students and faculty members 
                        in integrating energy efficiency and high-
                        performance green building concepts and 
                        measures within the educational curriculum; and
                            (iii) use education facilities as showcases 
                        to communicate these concepts to the community;
            (4) technical assistance and funding of pilot projects for 
        the development and use of new building energy design 
        standards, model designs, model energy codes, and incentives 
        and other policies, to be provided to designers, builders, 
        developers, commercial building owners, and utility and 
        government energy efficiency programs, including--
                    (A) support for code and standards organizations to 
                develop aggressive model energy codes, beyond-code 
                guidelines, and code compliance programs for new and 
                existing buildings;
                    (B) assistance to utilities, builders, and State 
                and local officials in developing, implementing, and 
                evaluating pilot programs to achieve building design 
                and actual energy performance that meet and exceed 
                performance levels in the model energy codes; and
                    (C) support for development and dissemination of 
                model programs and policies that provide incentives for 
                high-performance green buildings, such as accelerated 
                zoning and construction permitting and inspections, 
                density bonuses, and State and local tax incentives;
            (5) technical assistance and funding of pilot projects for 
        innovative market-based initiatives to advance energy-efficient 
        technologies and practices in new and existing commercial 
        buildings, provided to State agencies, utilities, and other 
        entities, including--
                    (A) design assistance and incentives for 
                incorporating sustainability and energy efficiency 
                beginning with the first stages of building design and 
                continuing through start-up commissioning and long-term 
                operation;
                    (B) performance-based design and construction fees 
                for high-performance green construction and renovation;
                    (C) equipment leasing and financing strategies for 
                energy efficiency upgrades of new and replacement 
                commercial building equipment;
                    (D) trade-in programs for early retirement of low-
                efficiency commercial building equipment and system 
                components, such as motors, air conditioners, boilers, 
                lighting, and windows;
                    (E) improved methods of energy performance 
                contracting to reduce transaction costs and encourage 
                the use of third-party funding and expertise for 
                energy-efficient retrofitting of existing commercial 
                buildings;
                    (F) improved model protocols for commercial 
                building energy audits, energy performance measurement 
                and verification, continuous commissioning, and ongoing 
                performance monitoring and diagnostics; and
                    (G) strategies to reduce barriers to energy 
                efficiency investment by addressing split incentives 
                between commercial building owners and tenants;
            (6) development, dissemination, technical assistance, and 
        pilot project activities to improve the practice of monitoring, 
        benchmarking, and disclosure of actual commercial building 
        energy performance and operating costs, including--
                    (A) improved methods of measuring and compiling 
                energy performance data on a statistically significant 
                share of commercial new construction, renovation, and 
                energy retrofit projects;
                    (B) development and dissemination of energy 
                performance metrics for the commercial building stock 
                and for important subcategories of commercial 
                buildings;
                    (C) improved methods of providing energy 
                performance feedback to commercial building owners, 
                operators, and occupants, including real-time feedback 
                and comparisons to performance goals, past performance, 
                and similar buildings;
                    (D) voluntary programs at the national, regional, 
                and sectoral levels to recognize and reward commercial 
                buildings with exceptional performance or performance 
                improvement;
                    (E) increased availability and use of tools for 
                post occupancy assessment of energy efficiency and 
                occupant satisfaction with commercial high-performance 
                green buildings, and for measuring and documenting non-
                energy financial and other benefits of such buildings;
            (7) in cooperation with the Energy Information 
        Administration and with utility, State, and private sector 
        organizations, development and application of improved methods 
        for assessing trends in the energy performance of the 
        commercial buildings stock, new construction, and building 
        renovations, by building type and region, in order to track 
        progress toward the goals adopted under subsection (a); and
            (8) such otherwise authorized activities that the Secretary 
        and the Commercial Director determine are necessary to the 
        success of the initiative.

SEC. 9045. PUBLIC OUTREACH.

    The Commercial Director, in coordination with the Consortium, shall 
carry out public outreach to inform individuals and entities of the 
information and services available Governmentwide by--
            (1) establishing and maintaining a national high-
        performance green building clearinghouse, including on the 
        internet, that--
                    (A) identifies existing similar efforts and 
                coordinates activities of common interest; and
                    (B) provides information relating to high-
                performance green buildings, including hyperlinks to 
                internet sites that describe the activities, 
                information, and resources of--
                            (i) the Federal Government;
                            (ii) State and local governments;
                            (iii) the private sector (including 
                        nongovernmental and nonprofit entities and 
                        organizations); and
                            (iv) international organizations;
            (2) identifying and recommending educational resources for 
        implementing high-performance green building practices, 
        including security and emergency benefits and practices;
            (3) providing access to technical assistance on using tools 
        and resources to make more cost-effective, energy-efficient, 
        health-protective, and environmentally beneficial decisions for 
        constructing high-performance green buildings, particularly 
        tools available to conduct life-cycle costing and life-cycle 
        assessment;
            (4) providing information on application processes for 
        certifying a high-performance green building, including 
        certification and commissioning;
            (5) providing technical information, market research, or 
        other forms of assistance or advice that would be useful in 
        planning and constructing high-performance green buildings;
            (6) using such other methods as are determined by the 
        Commercial Director to be appropriate;
            (7) surveying existing research and studies relating to 
        high-performance green buildings;
            (8) coordinating activities of common interest;
            (9) developing and recommending a high-performance green 
        building practices that--
                    (A) identify information and research needs, 
                including the relationships between health, occupant 
                productivity, and each of--
                            (i) pollutant emissions from materials and 
                        products in the building;
                            (ii) natural day lighting;
                            (iii) ventilation choices and technologies;
                            (iv) heating, cooling, and system control 
                        choices and technologies;
                            (v) moisture control and mold;
                            (vi) maintenance, cleaning, and pest 
                        control activities;
                            (vii) acoustics; and
                            (viii) other issues relating to the health, 
                        comfort, productivity, and performance of 
                        occupants of the building; and
                    (B) promote the development and dissemination of 
                high-performance green building measurement tools that, 
                at a minimum, may be used--
                            (i) to monitor and assess the life-cycle 
                        performance of facilities (including 
                        demonstration projects) built as high-
                        performance green buildings; and
                            (ii) to perform life-cycle assessments;
            (10) studying and identifying potential benefits of high-
        performance green buildings relating to security, natural 
        disaster, and emergency needs of the Federal Government; and
            (11) supporting other research initiatives determined by 
        the Office of Commercial High-Performance Green Buildings.

SEC. 9046. FEDERAL PROCUREMENT.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Director of the Office of Federal Procurement Policy, 
in consultation with the Federal Director, the Commercial Director, and 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall promulgate revisions of the applicable acquisition 
regulations, to take effect as of the date of promulgation of the 
revisions--
            (1) to direct any Federal procurement executives involved 
        in the acquisition, construction, or major renovation 
        (including contracting for the construction or major 
        renovation) of any facility--
                    (A) to employ integrated design principles;
                    (B) to improve site selection for environmental and 
                community benefits;
                    (C) to optimize building and systems energy 
                performance;
                    (D) to protect and conserve water;
                    (E) to enhance indoor environmental quality; and
                    (F) to reduce environmental impacts of materials 
                and waste flows; and
            (2) to direct Federal procurement executives involved in 
        leasing buildings, to give preference to the lease of 
        facilities that--
                    (A) are energy-efficient; and
                    (B) to the maximum extent practicable, have applied 
                contemporary high-performance and sustainable design 
                principles during construction or renovation.
    (b) Guidance.--Not later than 90 days after the date of 
promulgation of the revised regulations under subsection (a), the 
Director of the Office of Procurement Policy shall issue guidance to 
all Federal procurement executives providing direction and instructions 
to renegotiate the design of proposed facilities, renovations for 
existing facilities, and leased facilities to incorporate improvements 
that are consistent with this section.

SEC. 9047. MANAGEMENT OF ENERGY AND WATER EFFICIENCY IN FEDERAL 
              BUILDINGS.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended by adding at the end the following:
    ``(f) Use of Energy and Water Efficiency Measures in Federal 
Buildings.--
            ``(1) Facility energy managers.--
                    ``(A) In general.--Each Federal agency shall 
                designate a manager responsible for implementing this 
                subsection and reducing energy use at each building or 
                facility that meets criteria under subparagraph (B).
                    ``(B) Covered facilities.--The Secretary shall 
                develop criteria, after consultation with affected 
                agencies, energy efficiency advocates, and energy and 
                utility service providers, that cover, at a minimum, 
                each Federal building or facility with greater than 
                40,000 square feet of space or greater than $75,000 per 
                year in energy costs, including central utility plants 
                and distribution systems and other energy intensive 
                operations, and that constitute in the aggregate at 
                least two-thirds of total Federal building and facility 
                energy use.
            ``(2) Energy and water evaluations and commissioning.--
                    ``(A) Evaluations.--Not later than 18 months after 
                the date of enactment of this subsection, and every 5 
                years thereafter, each energy manager shall complete a 
                comprehensive energy and water evaluation for each 
                building or facility that meets criteria under 
                paragraph (1)(B).
                    ``(B) Recommissioning and retrocommissioning.--As 
                part of the evaluation under subparagraph (A) or on the 
                same schedule the energy manager shall recommission or 
                retrocommission each such building and facility as 
                applicable.
            ``(3) Implementation of identified energy and water 
        efficiency measures.--
                    ``(A) In general.--Not later than 2 years after the 
                completion of each evaluation under paragraph (1), each 
                energy manager--
                            ``(i) shall fully implement each energy and 
                        water-saving measure identified in the 
                        evaluation conducted under paragraph (2) that 
                        is life-cycle cost-effective and has a 12-year 
                        or shorter simple payback period;
                            ``(ii) may implement any energy or water-
                        saving measure that the Federal agency 
                        identified in the evaluation conducted under 
                        paragraph (1) that is life-cycle cost-effective 
                        and has longer than a 12-year simple payback 
                        period; and
                            ``(iii) may bundle individual measures of 
                        varying paybacks together into combined 
                        projects.
                    ``(B) Payback period.--For the purpose of 
                subparagraph (A), the simple payback period of a 
                measure shall be obtained by dividing--
                            ``(i) the estimated initial implementation 
                        cost of the measure (other than financing 
                        costs); by
                            ``(ii) the annual cost savings from the 
                        measure.
                    ``(C) Cost savings.--For the purpose of 
                subparagraph (B), cost savings shall include net 
                savings in estimated--
                            ``(i) energy and water costs; and
                            ``(ii) operations, maintenance, repair, 
                        replacement, and other direct costs.
                    ``(D) Exceptions.--The Secretary may modify or make 
                exceptions to the calculation of a 12-year simple 
                payback under this paragraph in the guidelines issued 
                by the Secretary under paragraph (5), if necessary and 
                appropriate to achieve the purposes of this Act.
                    ``(E) Life-cycle cost-effective.--For the purpose 
                of subparagraph (A), determination of whether a measure 
                is life-cycle cost-effective shall use methods and 
                procedures developed pursuant to section 544.
            ``(4) Follow-up on implemented measures.--For each measure 
        implemented under paragraph (3), each energy manager shall 
        ensure that--
                    ``(A) equipment, including building and equipment 
                controls, is fully commissioned at acceptance to be 
                operating at design specifications;
                    ``(B) a plan for appropriate operations, 
                maintenance, and repair of the equipment is in place at 
                acceptance and is followed;
                    ``(C) equipment and system performance is measured 
                during its entire life to ensure proper operations, 
                maintenance, and repair; and
                    ``(D) energy and water savings are measured and 
                verified.
            ``(5) Guidelines.--
                    ``(A) In general.--The Secretary shall issue 
                guidelines and necessary criteria that each Federal 
                agency shall follow for implementation of--
                            ``(i) paragraphs (1) and (2) not later than 
                        180 days after the date of enactment of this 
                        subsection; and
                            ``(ii) paragraphs (3) and (4) not later 
                        than 1 year after the date of enactment of this 
                        subsection.
                    ``(B) Relationship to funding source.--The 
                guidelines issued by the Secretary under subparagraph 
                (A) shall be appropriate and uniform for measures 
                funded with each type of funding made available under 
                paragraph (9), but may distinguish between different 
                types of measures project size, and other criteria the 
                Secretary determines are relevant.
            ``(6) Web-based certification.--
                    ``(A) In general.--For each building or facility 
                that meets the criteria established by the Secretary 
                under paragraph (1), the energy manager shall use the 
                web-based tracking system under subparagraph (B) to 
                certify compliance with the requirements for--
                            ``(i) energy and water evaluations and 
                        recommissioning and retrocommissioning under 
                        paragraph (2);
                            ``(ii) implementation of identified energy 
                        and water measures under paragraph (3); and
                            ``(iii) follow-up on implemented measures 
                        under paragraph (4).
                    ``(B) Deployment.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of this subsection, 
                        the Secretary shall develop and deploy the web-
                        based tracking system required under this 
                        paragraph in a manner that tracks, at a 
                        minimum--
                                    ``(I) the covered buildings and 
                                facilities;
                                    ``(II) the status of meeting the 
                                requirements specified in subparagraph 
                                (A);
                                    ``(III) the estimated cost and 
                                savings for measures required to be 
                                implemented in a building or facility; 
                                and
                                    ``(IV) the measured savings and 
                                persistence of savings for implemented 
                                measures.
                            ``(ii) Ease of compliance.--The Secretary 
                        shall ensure that energy manager compliance 
                        with the requirements in this paragraph, to the 
                        greatest extent practicable, can be 
                        accomplished with the use of streamlined 
                        procedures, and templates that minimize the 
                        time demands on Federal employees.
                    ``(C) Availability.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall make the web-based tracking 
                        system required under this paragraph available 
                        to Congress, other Federal agencies, and the 
                        public through the Internet.
                            ``(ii) Exemptions.--At the request of a 
                        Federal agency, the Secretary may exempt 
                        specific data for specific buildings from 
                        disclosure under clause (i) for national 
                        security purposes.
            ``(7) Benchmarking of federal facilities.--
                    ``(A) In general.--The energy manager shall enter 
                energy use data for each building or facility that 
                meets the criteria established by the Secretary under 
                paragraph (1) into a building energy use benchmarking 
                system, such as the Energy Star Portfolio Manager.
                    ``(B) System and guidance.--Not later than 1 year 
                after the date of enactment of this subsection, the 
                Secretary shall--
                            ``(i) select or develop the building energy 
                        use benchmarking system required under this 
                        paragraph for each type of building; and
                            ``(ii) issue guidance for use of the 
                        system.
                    ``(C) Public disclosure.--Each Federal agency shall 
                post the benchmarking information generated under this 
                subsection, along with each building's annual energy 
                use per square foot and energy costs, on the agency's 
                website. The agency shall update such information each 
                year, and shall include in such reporting previous 
                years' information to allow changes in building 
                performance to be tracked over time.
            ``(8) Federal agency scorecards.--
                    ``(A) In general.--The Director of the Office of 
                Management and Budget shall issue semiannual scorecards 
                for energy management activities carried out by each 
                Federal agency that includes--
                            ``(i) summaries of the status of 
                        implementing the various requirements of the 
                        agency and its energy managers under this 
                        subsection; and
                            ``(ii) any other means of measuring 
                        performance that the Director considers 
                        appropriate.
                    ``(B) Availability.--The Director shall make the 
                scorecards required under this paragraph available to 
                Congress, other Federal agencies, and the public 
                through the Internet.
            ``(9) Funding and implementation.--
                    ``(A) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as are 
                necessary to carry out this subsection.
                    ``(B) Funding options.--
                            ``(i) In general.--To carry out this 
                        subsection, a Federal agency may use any 
                        combination of--
                                    ``(I) appropriated funds made 
                                available under subparagraph (A); and
                                    ``(II) private financing, including 
                                financing available through energy 
                                savings performance contracts or 
                                utility energy service contracts.
                            ``(ii) Combined funding for same measure.--
                        A Federal agency may use any combination of 
                        appropriated funds and private financing 
                        described in clause (i) to carry out the same 
                        measure under this subsection, with 
                        proportional allocation for any energy and 
                        water savings.
                            ``(iii) Lack of appropriated funds.--Since 
                        measures may be carried out using private 
                        financing described in clause (i), a lack of 
                        available appropriations shall not be 
                        considered a sufficient reason for the failure 
                        of a Federal agency to comply with this 
                        subsection.
                    ``(C) Implementation.--Each Federal agency may 
                implement the requirements under this subsection itself 
                or may contract out performance of some or all of the 
                requirements.
            ``(10) Rule of construction.--This subsection shall not be 
        construed either to require or to obviate any contractor 
        savings guarantees.''.

SEC. 9048. DEMONSTRATION PROJECT.

    (a) In General.--The Federal Director and the Commercial Director 
shall establish guidelines to implement a demonstration project to 
contribute to the research goals of the Office of Commercial High-
Performance Green Buildings and the Office of Federal High-Performance 
Green Buildings.
    (b) Projects.--In accordance with guidelines established by the 
Federal Director and the Commercial Director under subsection (a) and 
the duties of the Federal Director and the Commercial Director 
described in this part, the Federal Director or the Commercial Director 
shall carry out--
            (1) for each of fiscal years 2009 through 2014, 1 
        demonstration project in a Federal building selected by the 
        Federal Director in accordance with relevant agencies and 
        described in subsection (c)(1), that--
                    (A) provides for the evaluation of the information 
                obtained through the conduct of projects and activities 
                under this part; and
                    (B) achieves the highest rating offered by an 
                existing high-performance green building rating system 
                that is developed through a consensus-based process, 
                provides minimum requirements in all performance 
                categories, requires substantiating documentation and 
                verifiable calculations, employs third-party post-
                construction review and verification, and is nationally 
                recognized within the building industry;
            (2) no fewer than 4 demonstration projects at 4 
        universities, that, as competitively selected by the Commercial 
        Director in accordance with subsection (c)(2), have--
                    (A) appropriate research resources and relevant 
                projects to meet the goals of the demonstration project 
                established by the Office of Commercial High-
                Performance Green Buildings; and
                    (B) the ability--
                            (i) to serve as a model for high-
                        performance green building initiatives, 
                        including research and education;
                            (ii) to identify the most effective ways o 
                        use high-performance green building and 
                        landscape technologies to engage and educate 
                        undergraduate and graduate students;
                            (iii) to effectively implement a high-
                        performance green building education program 
                        for students and occupants;
                            (iv) to demonstrate the effectiveness of 
                        various high-performance technologies in each 
                        of the 4 climatic regions of the United States 
                        described in subsection (c)(2)(B); and
                            (v) to explore quantifiable and 
                        nonquantifiable beneficial impacts on public 
                        health and employee and student performance;
            (3) demonstration projects to evaluate replicable 
        approaches to achieving various types of commercial buildings 
        in various climates; and
            (4) deployment activities to disseminate information on and 
        encourage widespread adoption of technologies, practices, and 
        policies to achieve zero-net-energy commercial buildings or low 
        energy use and effective monitoring of energy use in commercial 
        buildings.
    (c) Criteria.--
            (1) Federal facilities.--With respect to the existing or 
        proposed Federal facility at which a demonstration project 
        under this section is conducted, the Federal facility shall--
                    (A) be an appropriate model for a project relating 
                to--
                            (i) the effectiveness of high-performance 
                        technologies;
                            (ii) analysis of materials, components, 
                        systems, and emergency operations in the 
                        building, and the impact of those materials, 
                        components, and systems, including the impact 
                        on the health of building occupants;
                            (iii) life-cycle costing and life-cycle 
                        assessment of building materials and systems; 
                        and
                            (iv) location and design that promote 
                        access to the Federal facility through walking, 
                        biking, and mass transit; and
                    (B) possess sufficient technological and 
                organizational adaptability.
            (2) Universities.--With respect to the 4 universities at 
        which a demonstration project under this section is conducted--
                    (A) the universities should be selected, after 
                careful review of all applications received containing 
                the required information, as determined by the 
                Commercial Director, based on--
                            (i) successful and established public-
                        private research and development partnerships;
                            (ii) demonstrated capabilities to construct 
                        or renovate buildings that meet high indoor 
                        environmental quality standards;
                            (iii) organizational flexibility;
                            (iv) technological adaptability;
                            (v) the demonstrated capacity of at least 1 
                        university to replicate lessons learned among 
                        nearby or sister universities, preferably by 
                        participation in groups or consortia that 
                        promote sustainability;
                            (vi) the demonstrated capacity of at least 
                        1 university to have officially-adopted, 
                        institution-wide ``high-performance green 
                        building'' guidelines for all campus building 
                        projects; and
                            (vii) the demonstrated capacity of at least 
                        1 university to have been recognized by similar 
                        institutions as a national leader in 
                        sustainability education and curriculum for 
                        students of the university; and
                    (B) each university shall be located in a different 
                climatic region of the United States, each of which 
                regions shall have, as determined by the Office of 
                Commercial High-Performance Green Buildings--
                            (i) a hot, dry climate;
                            (ii) a hot, humid climate;
                            (iii) a cold climate; or
                            (iv) a temperate climate (including a 
                        climate with cold winters and humid summers).
    (d) Report.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter through September 30, 2014--
            (1) the Federal Director and the Commercial Director shall 
        submit to the Secretary a report that describes the status of 
        the demonstration projects; and
            (2) each University at which a demonstration project under 
        this section is conducted shall submit to the Secretary a 
        report that describes the status of the demonstration projects 
        under this section.

SEC. 9049. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

    (a) In General.--
            (1) Not later than 90 days after the date of enactment of 
        this Act, the Secretary of Energy and Administrator of the 
        Environmental Protection Agency shall jointly, after consulting 
        with information technology industry and other interested 
        parties, initiate a voluntary national information program for 
        those types of data centers and data center equipment and 
        facilities that are widely used and for which there is a 
        potential for significant data center energy savings as a 
        result of such program.
            (2) Such program shall--
                    (A) consistent with the objectives of paragraph 
                (1), determine the type of data center and data center 
                equipment and facilities to be covered under such 
                program; and
                    (B) include specifications, measurements, and 
                benchmarks that will enable data center operators to 
                make more informed decisions about the energy 
                efficiency and costs of data centers, and that--
                            (i) reflect the total energy consumption of 
                        data centers, including both equipment and 
                        facilities, taking into account--
                                    (I) the performance and utilization 
                                of servers, data storage devices, and 
                                other information technology equipment;
                                    (II) the efficiency of heating, 
                                ventilation, and air conditioning, 
                                cooling, and power conditioning 
                                systems;
                                    (III) energy savings from the 
                                adoption of software and data 
                                management techniques; and
                                    (IV) other factors determined by 
                                the organization described in 
                                subsection (b);
                            (ii) allow for creation of separate 
                        specifications, measurements, and benchmarks 
                        based on data center size and function, as well 
                        as other appropriate characteristics determined 
                        by the organization described in subsection 
                        (b);
                            (iii) advance the design and implementation 
                        of efficiency technologies to the maximum 
                        extent economically practical; and
                            (iv) provide to data center operators in 
                        the private sector and the Federal Government 
                        information about best practices and purchasing 
                        decisions that reduce the energy consumption of 
                        data centers;
                    (C) publish the information described in 
                subparagraph (B), which may be disseminated through 
                catalogs, trade publications, the Internet, or other 
                mechanisms, that will allow data center operators to 
                assess the energy consumption and potential cost 
                savings of alternative data centers and data center 
                equipment and facilities; and
                    (D) not later than 1 year after the date of 
                enactment of this Act, and thereafter on an ongoing 
                basis, transmit the information described in 
                subparagraph (B) to the Secretary and the 
                Administrator.
            (3) Such program shall be developed and coordinated by the 
        data center efficiency organization described in subsection (b) 
        according to commonly accepted procedures for the development 
        of specifications, measurements, and benchmarks.
    (b) Data Center Efficiency Organization.--Upon creation of the 
program under subsection (a), the Secretary and the Administrator shall 
jointly designate an information technology industry organization to 
coordinate the program. Such organization, whether preexisting or 
formed specifically for the purposes of subsection (a), shall--
            (1) consist of interested parties that have expertise in 
        energy efficiency and in the development, operation, and 
        functionality of computer data centers, information technology 
        equipment, and software, as well as representatives of hardware 
        manufacturers, data center operators, and facility managers;
            (2) obtain and address input from Department of Energy 
        National Laboratories or any college, university, research 
        institution, industry association, company, or public interest 
        group with applicable expertise in any of the areas listed in 
        paragraph (1) of this subsection;
            (3) follow commonly accepted procedures for the development 
        of specifications and accredited standards development 
        processes;
            (4) have a mission to develop and promote energy efficiency 
        for data centers and information technology; and
            (5) have the primary responsibility to oversee the 
        development and publishing of the information, measurements, 
        and benchmarks described in subsection (a) and transmission of 
        such information to the Secretary and the Administrator for 
        their adoption under subsection (c).
    (c) Adoption of Specifications.--The Secretary and the 
Administrator shall jointly, in accordance with the requirements of 
section 12(d) of the National Technology Transfer Advancement Act of 
1995, adopt and publish the specifications, measurements, and 
benchmarks described in subsection (a) for use by the Federal Energy 
Management Program and the Energy Star program as energy efficiency 
requirements for the purposes of those programs.
    (d) Monitoring.--The Secretary and the Administrator shall jointly 
monitor and evaluate the efforts to develop the program described in 
subsection (a) and, not later than 3 years after the date of enactment 
of this Act, shall make a determination as to whether such program is 
consistent with the objectives of subsection (a).
    (e) Alternative System.--If the Secretary and the Administrator 
make a determination under subsection (d) that a voluntary national 
information program for data centers consistent with the objectives of 
subsection (a) has not been developed, the Secretary and the 
Administrator shall jointly, after consultation with the National 
Institute of Standards and Technology, develop, not later than 2 years 
after such determination, and implement the program under subsection 
(a).
    (f) Protection of Proprietary Information.--The Secretary, the 
Administrator, or the data center efficiency organization shall not 
disclose any proprietary information or trade secrets provided by any 
individual or company for the purposes of carrying out this program.
    (g) Definitions.--For purposes of this section:
            (1) The term ``data center'' means any facility that 
        primarily contains electronic equipment used to process, store, 
        and transmit digital information, which may be--
                    (A) a free-standing structure; or
                    (B) a facility within a larger structure, that 
                utilizes environmental control equipment to maintain 
                the proper conditions for the operation of electronic 
                equipment.
            (2) The term ``data center operator'' means any person or 
        government entity that builds or operates a data center or 
        purchases data center services, equipment, and facilities.

SEC. 9050. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--In addition to amounts authorized under 
subsections (b), (c), and (d), there are authorized to be appropriated 
to carry out this part, other thansection 9052--
            (1) $10,000,000 for fiscal year 2008; and
            (2) $20,000,000 for each of the fiscal years 2009 through 
        2014, to remain available until expended.
    (b) Zero-Energy Commercial Buildings Initiative.--There are 
authorized to be appropriated to carry out the initiative described 
insection 9044--
            (1) $20,000,000 for fiscal year 2008;
            (2) $50,000,000 for each of fiscal years 2009 and 2010;
            (3) $100,000,000 for each of fiscal years 2011 and 2012;
            (4) $200,000,000 for each of fiscal years 2013 through 
        2050.
    (c) Demonstration Projects.--
            (1) Federal demonstration project.--There are authorized to 
        be appropriated to carry out the Federal demonstration project 
        described insection 9048(b)(1) $10,000,000 for the period of 
        fiscal years 2009 through 2014, to remain available until 
        expended.
            (2) University demonstration projects.--There are 
        authorized to be appropriated to carry out the university 
        demonstration projects described insection 9048(b)(2) 
        $10,000,000 for the period of fiscal years 2009 through 2014, 
        to remain available until expended.
    (d) Energy Efficiency for Data Center Buildings.--There are 
authorized to be appropriated to each of the Secretary and the 
Administrator for carrying outsection 9049 $250,000 for each of the 
fiscal years 2008 through 2012.

SEC. 9051. STUDY AND REPORT ON USE OF POWER MANAGEMENT SOFTWARE.

    (a) Study.--The Secretary of Energy, through the Federal Energy 
Management Program, shall conduct a study on the use of power 
management software by the Department of Energy and Federal facilities 
to reduce the use of electricity in computer monitors and personal 
computers.
    (b) Report.--Not later than 60 days after the date of enactment of 
the Act, the Secretary shall submit to Congress a report containing the 
results of the study under subsection (a), including a description of 
the recommendations developed under the study. The Secretary and the 
Federal Energy Management Program are encouraged to draw upon similar 
studies and efforts by other Federal entities on power management 
software.

SEC. 9052. HIGH-PERFORMANCE GREEN BUILDINGS RETROFIT LOAN GUARANTEES.

    (a) Definitions.--In this section:
            (1) Cost.--The term ``cost'' has the meaning given the term 
        ``cost of a loan guarantee'' within the meaning of section 
        502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a(5)(C)).
            (2) Guarantee.--
                    (A) In general.--The term ``guarantee'' has the 
                meaning given the term ``loan guarantee'' in section 
                502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a).
                    (B) Inclusion.--The term ``guarantee'' includes a 
                loan guarantee commitment (as defined in section 502 of 
                the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
            (3) Obligation.--The term ``obligation'' means the loan or 
        other debt obligation that is guaranteed under this section.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Eligible Purposes.--Except for division C of Public Law 108-
423, the Commercial Director shall make loan guarantees under this 
section for renovation projects that are eligible projects within the 
meaning of section 1703 of the Energy Policy Act of 2005 and that will 
result in a building achieving the United States Green Building Council 
Leadership in Energy and Environmental Design ``certified'' level, or 
meeting a comparable standard approved by the Commercial Director.
    (c) Terms and Conditions.--
            (1) In general.--The Commercial Director shall make 
        guarantees under this section for projects on such terms and 
        conditions as the Commercial Director determines, after 
        consultation with the Secretary of the Treasury, in accordance 
        with this section, including limitations on the amount of any 
        loan guarantee to ensure distribution to a variety of 
        borrowers.
            (2) Specific appropriation or contribution.--No guarantee 
        shall be made under this section unless--
                    (A) an appropriation for the cost has been made; or
                    (B) the Commercial Director has received from the 
                borrower a payment in full for the cost of the 
                obligation and deposited the payment into the Treasury.
            (3) Limitation.--Not more than $100,000,000 in loans may be 
        guaranteed under this section at any one time.
            (4) Amount.--Unless otherwise provided by law, a guarantee 
        by the Commercial Director under this section shall not exceed 
        an amount equal to 80 percent of the project cost that is the 
        subject of the guarantee, as estimated at the time at which the 
        guarantee is issued.
            (5) Repayment.--No guarantee shall be made under this 
        section unless the Commercial Director determines that there is 
        reasonable prospect of repayment of the principal and interest 
        on the obligation by the borrower.
            (6) Interest rate.--An obligation shall bear interest at a 
        rate that does not exceed a level that the Commercial Director 
        determines appropriate, taking into account the prevailing rate 
        of interest in the private sector for similar loans and risks.
            (7) Term.--The term of an obligation shall require full 
        repayment over a period not to exceed the lesser of--
                    (A) 30 years; or
                    (B) 90 percent of the projected useful life of the 
                building whose renovation is to be financed by the 
                obligation (as determined by the Commercial Director).
            (8) Defaults.--
                    (A) Payment by commercial director.--
                            (i) In general.--If a borrower defaults on 
                        the obligation (as defined in regulations 
                        promulgated by the Commercial Director and 
                        specified in the guarantee contract), the 
                        holder of the guarantee shall have the right to 
                        demand payment of the unpaid amount from the 
                        Commercial Director.
                            (ii) Payment required.--Within such period 
                        as may be specified in the guarantee or related 
                        agreements, the Commercial Director shall pay 
                        to the holder of the guarantee the unpaid 
                        interest on, and unpaid principal of the 
                        obligation as to which the borrower has 
                        defaulted, unless the Commercial Director finds 
                        that there was no default by the borrower in 
                        the payment of interest or principal or that 
                        the default has been remedied.
                            (iii) Forbearance.--Nothing in this 
                        paragraph precludes any forbearance by the 
                        holder of the obligation for the benefit of the 
                        borrower which may be agreed upon by the 
                        parties to the obligation and approved by the 
                        Commercial Director.
                    (B) Subrogation.--
                            (i) In general.--If the Commercial Director 
                        makes a payment under subparagraph (A), the 
                        Commercial Director shall be subrogated to the 
                        rights of the recipient of the payment as 
                        specified in the guarantee or related 
                        agreements including, where appropriate, the 
                        authority (notwithstanding any other provision 
                        of law) to--
                                    (I) complete, maintain, operate, 
                                lease, or otherwise dispose of any 
                                property acquired pursuant to such 
                                guarantee or related agreements; or
                                    (II) permit the borrower, pursuant 
                                to an agreement with the Commercial 
                                Director, to continue to pursue the 
                                purposes of the project if the 
                                Commercial Director determines this to 
                                be in the public interest.
                            (ii) Superiority of rights.--The rights of 
                        the Commercial Director, with respect to any 
                        property acquired pursuant to a guarantee or 
                        related agreements, shall be superior to the 
                        rights of any other person with respect to the 
                        property.
                            (iii) Terms and conditions.--A guarantee 
                        agreement shall include such detailed terms and 
                        conditions as the Commercial Director 
                        determines appropriate to--
                                    (I) protect the interests of the 
                                United States in the case of default; 
                                and
                                    (II) have available all the patents 
                                and technology necessary for any person 
                                selected, including the Commercial 
                                Director, to complete and operate the 
                                project.
                    (C) Payment of principal and interest by commercial 
                director.--With respect to any obligation guaranteed 
                under this section, the Commercial Director may enter 
                into a contract to pay, and pay, holders of the 
                obligation, for and on behalf of the borrower, from 
                funds appropriated for that purpose, the principal and 
                interest payments which become due and payable on the 
                unpaid balance of the obligation if the Commercial 
                Director finds that--
                            (i)(I) the borrower is unable to meet the 
                        payments and is not in default;
                            (II) it is in the public interest to permit 
                        the borrower to continue to pursue the purposes 
                        of the project; and
                            (III) the probable net benefit to the 
                        Federal Government in paying the principal and 
                        interest will be greater than that which would 
                        result in the event of a default;
                            (ii) the amount of the payment that the 
                        Commercial Director is authorized to pay shall 
                        be no greater than the amount of principal and 
                        interest that the borrower is obligated to pay 
                        under the agreement being guaranteed; and
                            (iii) the borrower agrees to reimburse the 
                        Commercial Director for the payment (including 
                        interest) on terms and conditions that are 
                        satisfactory to the Commercial Director.
                    (D) Action by attorney general.--
                            (i) Notification.--If the borrower defaults 
                        on an obligation, the Commercial Director shall 
                        notify the Attorney General of the default.
                            (ii) Recovery.--On notification, the 
                        Attorney General shall take such action as is 
                        appropriate to recover the unpaid principal and 
                        interest due from--
                                    (I) such assets of the defaulting 
                                borrower as are associated with the 
                                obligation; or
                                    (II) any other security pledged to 
                                secure the obligation.
            (9) Fees.--
                    (A) In general.--The Commercial Director shall 
                charge and collect fees for guarantees in amounts the 
                Commercial Director determines are sufficient to cover 
                applicable administrative expenses.
                    (B) Availability.--Fees collected under this 
                paragraph shall--
                            (i) be deposited by the Commercial Director 
                        into the Treasury; and
                            (ii) remain available until expended, 
                        subject to such other conditions as are 
                        contained in annual appropriations Acts.
            (10) Records; audits.--
                    (A) In general.--A recipient of a guarantee shall 
                keep such records and other pertinent documents as the 
                Commercial Director shall prescribe by regulation, 
                including such records as the Commercial Director may 
                require to facilitate an effective audit.
                    (B) Access.--The Commercial Director and the 
                Comptroller General of the United States, or their duly 
                authorized representatives, shall have access, for the 
                purpose of audit, to the records and other pertinent 
                documents.
            (11) Full faith and credit.--The full faith and credit of 
        the United States is pledged to the payment of all guarantees 
        issued under this section with respect to principal and 
        interest.

                  PART 5--INDUSTRIAL ENERGY EFFICIENCY

SEC. 9061. INDUSTRIAL ENERGY EFFICIENCY.

    (a) Amendment.--Title III of the Energy Policy and Conservation Act 
(42 U.S.C. 6201 and following) is amended by adding the following after 
part D:

                 ``PART E--INDUSTRIAL ENERGY EFFICIENCY

``SEC. 371. SURVEY OF WASTE INDUSTRIAL ENERGY RECOVERY AND POTENTIAL 
              USE.

    ``Congress finds that--
            ``(1) the Nation should encourage the use of otherwise 
        wasted energy and the development of combined heat and power 
        and other waste energy recovery projects where there is wasted 
        thermal energy in large volumes at potentially useful 
        temperatures;
            ``(2) such projects would increase energy efficiency and 
        lower pollution by generating power with no incremental fossil 
        fuel consumption;
            ``(3) because recovered waste energy and combined heat and 
        power projects are associated with end-uses of thermal energy 
        and electricity at the local level, they help avoid new 
        transmission lines, reduce line losses, reduce local air 
        pollutant emissions, and reduce vulnerability to extreme 
        weather and terrorism; and
            ``(4) States, localities, electric utilities, and other 
        electricity customers may benefit from private investments in 
        recovered waste energy and combined heat and power projects at 
        industrial and commercial sites by avoiding generation, 
        transmission and distribution expenses, and transmission line 
        loss expenses that may otherwise be required to be recovered 
        from ratepayers.

``SEC. 372. DEFINITIONS.

    ``For purposes of this Part:
            ``(1) The term `Administrator' means the Administrator of 
        the Environmental Protection Agency.
            ``(2) The term `waste energy' means_
                    ``(A) exhaust heat and flared gases from any 
                industrial process;
                    ``(B) waste gas or industrial tail gas that would 
                otherwise be flared, incinerated or vented;
                    ``(C) a pressure drop in any gas, excluding any 
                pressure drop to a condenser that subsequently vents 
                the resulting heat; and
                    ``(D) such other forms of waste energy as the 
                Administrator may identify.
            ``(3) The term `recoverable waste energy' means waste 
        energy from which electricity or useful thermal energy may be 
        recovered through modification of existing facilities or 
        addition of new facilities.
            ``(4) The term `net excess power' means, for any facility, 
        recoverable waste energy recovered in the form of electricity 
        in amounts exceeding the total consumption of electricity at 
        the specific time of generation on the site where the facility 
        is located.
            ``(5) The term `useful thermal energy' is energy in the 
        forms of direct heat, steam, hot water, or other thermal forms 
        that is used in production and beneficial measures for heating, 
        cooling, humidity control, process use, or other valid thermal 
        end-use energy requirements, and for which fuel or electricity 
        would otherwise be consumed.
            ``(6) The term `combined heat and power system' means a 
        facility--
                    ``(A) that simultaneously and efficiently produces 
                useful thermal energy and electricity; and
                    ``(B) that recovers not less than 60 percent of the 
                energy value in the fuel (on a lower-heating-value 
                basis) in the form of useful thermal energy and 
                electricity.
            ``(7) The terms `electric utility', `State regulated 
        electric utility', `nonregulated electric utility' and other 
        terms used in this Part have the same meanings as when such 
        terms are used in title I of the Public Utility Regulatory 
        Policies Act of 1978 (relating to retail regulatory policies 
        for electric utilities).

``SEC. 373. SURVEY AND REGISTRY.

    ``(a) Recoverable Waste-Energy Inventory Program.--The 
Administrator, in cooperation with State energy offices, shall 
establish a Recoverable Waste-Energy Inventory Program. The program 
shall include an ongoing survey of all major industrial and large 
commercial combustion sources in the United States and the sites where 
these are located, together with a review of each for quantity and 
quality of waste energy.
    ``(b) Criteria.--The Administrator shall, within 120 days after the 
enactment of this section, develop and publish proposed criteria 
subject to notice and comment, and within 270 days of enactment, 
establish final criteria, to identify and designate those sources and 
sites in the inventory under subsection (a) where recoverable waste 
energy projects or combined heat and power system projects may have 
economic feasibility with a payback of invested costs within 5 years or 
less from the date of first full project operation (including 
incentives offered under this Part). Such criteria will include 
standards that insure that projects proposed for inclusion in the 
Registry are not developed for the primary purpose of making sales of 
excess electric power under the regulatory treatment provided under 
this Part.
    ``(c) Technical Support.--The Administrator shall provide to owners 
or operators of combustion sources technical support and offer partial 
funding (up to one-half of total costs) for feasibility studies to 
confirm whether or not investment in recovery of waste energy or 
combined heat and power at that source would offer a payback period of 
5 years or less.
    ``(d) Registry.--(1) The Administrator shall, within one year after 
the enactment of this section, establish a Registry of Recoverable 
Waste-energy Sources, and sites on which those sources are located, 
which meet the criteria set forth under subsection (b). The 
Administrator shall update the Registry on not less than a monthly 
basis, and make the Registry accessible to the public on the 
Environmental Protection Agency web site. Any State or electric utility 
may contest the listing of any source or site by submitting a petition 
to the Administrator.
    ``(2) The Administrator shall register and include on the Registry 
all sites meeting the criteria of subsection (b). The Administrator 
shall calculate the total amounts of potentially recoverable waste 
energy from sources at such sites, nationally and by State, and shall 
make such totals public, together with information on the air pollutant 
and greenhouse gas emissions savings that might be achieved with 
recovery of the waste energy from all sources and sites listed in the 
Registry.
    ``(3) The Administrator shall notify owners or operators of 
Recoverable Waste-Energy Sources and sites listed in the Registry prior 
to publishing the listing. The owner or operator of sources at such 
sites may elect to have detailed quantitative information concerning 
that site not made public by notifying the Administrator of that 
election. Information concerning that site shall be included in State 
totals unless there are fewer than 3 sites in the State.
    ``(4) As waste energy projects achieve successful recovery of waste 
energy, the Administrator shall remove the related sites or sources 
from the Registry, and shall designate the removed projects as eligible 
for the incentive provisions provided under this Part and the 
regulatory treatment required by this Part. No project shall be removed 
from the Registry without the consent of the owner or operator of the 
project if the owner or operator has submitted a petition under section 
375 and such petition has not been acted upon or denied.
    ``(5) The Administrator shall not list any source constructed after 
the date of the enactment of this Part on the Registry if the 
Administrator determines that such source--
            ``(A) was developed for the primary purpose of making sales 
        of excess electric power under the regulatory treatment 
        provided under this Part; or
            ``(B) does not capture at least 60 percent of the total 
        energy value of the fuels used (on a lower-heating-value basis) 
        in the form of useful thermal energy, electricity, mechanical 
        energy, chemical output, or some combination of them.
    ``(e) Self-Certification.--Owners, operators, or third-party 
developers of industrial waste-energy projects that qualify under 
standards established by the Administrator may self-certify their sites 
or sources to the Administrator for inclusion in the Registry, subject 
to procedures adopted by the Administrator. To prevent a fraudulent 
listing, the sources shall be included on the Registry only if the 
Administrator confirms the submitted data, at the Administrator's 
discretion.
    ``(f) New Facilities.--As a new energy-consuming industrial 
facility is developed after the enactment of this Part, to the extent 
it may constitute a site with recoverable waste energy that may qualify 
for the Registry, the Administrator may elect to include it in the 
Registry at the request of its owner or operator or developer on a 
conditional basis, removing the site if its development ceases or it if 
fails to qualify for listing under this Part.
    ``(g) Optimum Means of Recovery.--For each site listed in the 
Registry, at the request of the owner or operator of the site, the 
Administrator shall offer, in cooperation with Clean Energy Application 
Centers operated by the Secretary of Energy, suggestions of optimum 
means of recovery of value from waste energy stream in the form of 
electricity, useful thermal energy, or other energy-related products.
    ``(h) Revision.--Each annual State report under section 548(a) of 
the National Energy Conservation Policy Act shall include the results 
of the survey for that State under this section.
    ``(i) Authorization.--There are authorized to be appropriated to 
the Administrator for the purposes of creating and maintaining the 
Registry and services authorized by this section not more than 
$1,000,000 for each of fiscal years 2008, 2009, 2010, 2010, and 2012 
and not more than $5,000,000 to the States to provide funding for State 
energy office functions under this section.

``SEC. 374. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM.

    ``(a) Establishment of Program.--There is established in the 
Environmental Protection Agency a Waste Energy Recovery Incentive Grant 
Program to provide incentive grants to owners and operators of projects 
that successfully produce electricity or incremental useful thermal 
energy from waste energy recovery (and to utilities purchasing or 
distributing such electricity) and to reward States that have achieved 
80 percent or more of identified waste-heat recovery opportunities.
    ``(b) Grants to Projects and Utilities.--
            ``(1) In general.--The Administrator shall make grants to 
        the owners or operators of waste energy recovery projects, and, 
        in the case of excess power purchased or transmitted by a 
        electric utility, to such utility. Grants may only be made upon 
        receipt of proof of waste energy recovery or excess electricity 
        generation, or both, from the project in a form prescribed by 
        the Administrator, by rule.
            ``(2) Excess electric energy.--In the case of waste energy 
        recovery, the grants under this section shall be made at the 
        rate of $10 per megawatt hour of documented electricity 
        produced from recovered waste energy (or by prevention of waste 
        energy in the case of a new facility) by the project during the 
        first 3 calendar years of such production, beginning on or 
        after the date of enactment of this Part. If the project 
        produces net excess power and an electric utility purchases or 
        transmits the excess power, 50 percent of so much of such grant 
        as is attributable to the net excess power shall be paid to the 
        electric utility purchasing or transporting the net excess 
        power.
            ``(3) Useful thermal energy.--In the case of waste energy 
        recovery that produces useful thermal energy that is used for a 
        purpose different from that for which the project is 
        principally designed, the grants under this section shall be 
        made to the owner or operator of the waste energy recovery 
        project at the rate of $10 for each 3,412,000 Btus of such 
        excess thermal energy used for such different purpose.
    ``(c) Grants to States.--In the case of States that have achieved 
80 percent or more of waste-heat recovery opportunities identified by 
the Administrator under this Part, the Administrator shall make grants 
to the States of up to $1,000 per Megawatt of waste-heat capacity 
recovered (or its thermal equivalent) to support State-level programs 
to identify and achieve additional energy efficiency.
    ``(d) Eligibility.--The Administrator shall establish rules and 
guidelines to establish eligibility for grants, shall make the grant 
program known to those listed in the Registry, and shall offer such 
grants on the basis of the merits of each project in recovering or 
preventing waste energy throughout the United States on an impartial, 
objective, and not unduly discriminatory basis.
    ``(e) Authorization.--(1) There is authorized to be appropriated to 
the Administrator $100,000,000 for fiscal year 2008, and $200,000,000 
for each of fiscal years 2009, 2010, 2011, and 2012 for grants under 
subsection (b) of this section, and such additional amounts during 
those years and thereafter as may be necessary for administration of 
the Waste Energy Recovery Incentive Grant Program.
    ``(2) There is authorized to be appropriated to the Administrator 
not more than $10,000,000 for each of the first five fiscal years after 
the enactment of this Part, to be available until expended for purposes 
of grants to States under subsection (c).

``SEC. 375. ADDITIONAL INCENTIVES FOR RECOVERY, UTILIZATION AND 
              PREVENTION OF INDUSTRIAL WASTE ENERGY.

    ``(a) Consideration of Standard.--Not later than 180 days after the 
receipt by a State regulatory authority (with respect to each electric 
utility for which it has ratemaking authority), or nonregulated 
electric utility, of a request from a project sponsor or owner or 
operator, the State regulatory authority or nonregulated electric 
utility shall provide public notice and conduct a hearing respecting 
the standard established by subsection (b) and, on the basis of such 
hearing, shall consider and make a determination whether or not it is 
appropriate to implement such standard to carry out the purposes of 
this Part. For purposes of any such determination and any review of 
such determination in any court the purposes of this section supplement 
otherwise applicable State law. Nothing in this Part prohibits any 
State regulatory authority or nonregulated electric utility from making 
any determination that it is not appropriate to adopt any such 
standard, pursuant to its authority under otherwise applicable State 
law.
    ``(b) Standard for Sales of Excess Power.--For purposes of this 
section, the standard referred to in subsection (a) shall provide that 
an owner or operator of a waste energy recovery project identified on 
the Registry who generates net excess power shall be eligible to 
benefit from at least one of the options described in subsection (c) 
for disposal of the net excess power in accordance with the rate 
conditions and limitations described in subsection (d).
    ``(c) Options.--The options referred to in subsection (b) are as 
follows:
            ``(1) Sale of net excess power to utility.--The electric 
        utility shall purchase the net excess power from the owner or 
        operator of the eligible waste-energy recovery project during 
        the operation of the project under a contract entered into for 
        that purpose.
            ``(2) Transport by utility for direct sale to third 
        party.--The electric utility shall transmit the net excess 
        power on behalf of the project owner or operator to up to three 
        separate locations on that utility's system for direct sale by 
        that owner or operator to third parties at such locations.
            ``(3) Transport over private transmission lines.--The State 
        and the electric utility shall permit, and shall waive or 
        modify such laws as would otherwise prohibit, the construction 
        and operation of private electric wires constructed, owned and 
        operated by the project owner or operator, to transport such 
        power to up to 3 purchasers within a 3-mile radius of the 
        project, allowing such wires to utilize or cross public rights-
        of-way, without subjecting the project to regulation as a 
        public utility, and according such wires the same treatment for 
        safety, zoning, land-use and other legal privileges as apply or 
        would apply to the utility's own wires, except that--
                    ``(A) there shall be no grant of any power of 
                eminent domain to take or cross private property for 
                such wires, and
                    ``(B) such wires shall be physically segregated and 
                not interconnected with any portion of the utility's 
                system, except on the customer's side of the utility's 
                revenue meter and in a manner that precludes any 
                possible export of such electricity onto the utility 
                system, or disruption of such system.
            ``(4) Agreed upon alternatives.--The utility and the owner 
        or operator of the project may reach agreement on any alternate 
        arrangement and its associated payments or rates that is 
        mutually satisfactory and in accord with State law.
    ``(d) Rate Conditions and Criteria.--
            ``(1) In general.--The options described in paragraphs (1) 
        and (2) in subsection (c) shall be offered under purchase and 
        transport rate conditions reflecting the rate components 
        defined under paragraph (2) of this subsection as applicable 
        under the circumstances described in paragraph (3) of this 
        subsection.
            ``(2) Rate components.--For purposes of this section:
                    ``(A) Per unit distribution costs.--The term `per 
                unit distribution costs' means the utility's 
                depreciated book-value distribution system costs 
                divided by the previous year's volume of utility 
                electricity sales or transmission at the distribution 
                level in kilowatt hours.
                    ``(B) Per unit distribution margin.--The term `per 
                unit distribution margin' means:
                            ``(i) In the case of a State regulated 
                        electric utility, a per-unit gross pretax 
                        profit determined by multiplying the utility's 
                        State-approved percentage rate of return for 
                        distribution system assets by the per unit 
                        distribution costs.
                            ``(ii) In the case of an nonregulated 
                        utility, a per unit contribution to net 
                        revenues determined by dividing the amount of 
                        any net revenue payment or contribution to the 
                        nonregulated utility's owners or subscribers in 
                        the prior year by the utility's gross revenues 
                        for the prior year to obtain a percentage (but 
                        not less than 10 percent) and multiplying that 
                        percentage by the per unit distribution costs.
                    ``(C) Per unit transmission costs.--The term `per 
                unit transmission costs' means the total cost of those 
                transmission services purchased or provided by a 
                utility on a per-kilowatt-hour basis as included in 
                that utility's retail rate.
            ``(3) Applicable rates.--
                    ``(A) Rates applicable to sale of net excess 
                power.--Sales made by a project owner or operator under 
                the option described in subsection (c) (1) shall be 
                paid for on a per kilowatt hour basis that shall equal 
                the full undiscounted retail rate paid to the utility 
                for power purchased by such a facility minus per unit 
                distribution costs, as applicable to the type of 
                utility purchasing the power. If the net excess power 
                is made available for purchase at voltages that must be 
                transformed to or from voltages exceeding 25 kilovolts 
                to be available for resale by the utility, then the 
                purchase price shall further be reduced by per unit 
                transmission costs.
                    ``(B) Rates applicable to transport by utility for 
                direct sale to third parties.--Transportation by 
                utilities of power on behalf of the owner or operator 
                of a project under the option described in subsection 
                (c)(2) shall incur a transportation rate equal to the 
                per unit distribution costs and per unit distribution 
                margin, as applicable to the type of utility 
                transporting the power. If the net excess power is made 
                available for transportation at voltages that must be 
                transformed to or from voltages exceeding 25 kilovolts 
                to be transported to the designated third-party 
                purchasers, then the transport rate shall further be 
                increased by per unit transmission costs. In States 
                with competitive retail markets for electricity, the 
                applicable transportation rate for similar 
                transportation shall be applied in lieu of any rate 
                calculated under this paragraph.
            ``(4) Limitations.--(A) Any rate established for sale or 
        transportation under this section shall be modified over time 
        with changes in the electric utility's underlying costs or 
        rates, and shall reflect the same time-sensitivity and billing 
        periods as are established in the retail sales or 
        transportation rates offered by the utility.
            ``(B) No utility shall be required to purchase or transport 
        an amount of net excess power under this section that exceeds 
        the available capacity of the wires, meter, or other equipment 
        of the electric utility serving the site unless the owner or 
        operator of the project agrees to pay necessary and reasonable 
        upgrade costs.
    ``(e) Procedural Requirements for Consideration and 
Determination.--(1) The consideration referred to in subsection (b) 
shall be made after public notice and hearing. The determination 
referred to in subsection (b) shall be--
            ``(A) in writing,
            ``(B) based upon findings included in such determination 
        and upon the evidence presented at the hearing, and
            ``(C) available to the public.
    ``(2) The Administrator may intervene as a matter of right in a 
proceeding conducted under this section and may calculate the energy 
and emissions likely to be saved by electing to adopt one or more of 
the options, as well as the costs and benefits to ratepayers and the 
utility and to advocate for the waste-energy recovery opportunity.
    ``(3) Except as otherwise provided in paragraph (1), and paragraph 
(2), the procedures for the consideration and determination referred to 
in subsection (a) shall be those established by the State regulatory 
authority or the nonregulated electric utility. In the instance that 
there is more than one project seeking such consideration 
simultaneously in connection with the same utility, such proceeding may 
encompass all such projects, provided that full attention is paid to 
their individual circumstances and merits, and an individual judgment 
is reached with respect to each project.
    ``(f) Implementation.--(1) The State regulatory authority (with 
respect to each electric utility for which it has ratemaking authority) 
or nonregulated electric utility may, to the extent consistent with 
otherwise applicable State law--
            ``(A) implement the standard determined under this section, 
        or
            ``(B) decline to implement any such standard.
    ``(2) If a State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) or nonregulated 
electric utility declines to implement any standard established by this 
section, such authority or nonregulated electric utility shall state in 
writing the reasons therefor. Such statement of reasons shall be 
available to the public, and the Administrator shall include the 
project in an annual report to Congress concerning lost opportunities 
for waste-heat recovery, specifically identifying the utility and 
stating the amount of lost energy and emissions savings calculated. If 
a State regulatory authority (with respect to each electric utility for 
which it has ratemaking authority) or nonregulated electric utility 
declines to implement the standard established by this section, the 
project sponsor may submit a new petition under this section with 
respect to such project at any time after 24 months after the date on 
which the State regulatory authority or nonregulated utility has 
declined to implement such standard.

``SEC. 376. CLEAN ENERGY APPLICATION CENTERS.

    ``(a) Purpose.--The purpose of this section is to rename and 
provide for the continued operation of the United States Department of 
Energy's Regional Combined Heat and Power (CHP) Application Centers.
    ``(b) Findings.--The Congress finds the Department of Energy's 
Regional Combined Heat and Power (CHP) Application Centers program has 
produced significant energy savings and climate change benefits and 
will continue to do so through the deployment of clean energy 
technologies such as Combined Heat and Power (CHP), recycled waste 
energy and biomass energy systems, in the industrial and commercial 
energy markets.
    ``(c) Renaming.--The Combined Heat and Power Application Centers at 
the Department of Energy are hereby be redesignated as Clean Energy 
Application Centers. Any reference in any law, rule or regulation or 
publication to the Combined Heat and Power Application Centers shall be 
treated as a reference to the Clean Energy Application Centers.
    ``(d) Relocation.--In order to better coordinate efforts with the 
separate Industrial Assessment Centers and to assure that the energy 
efficiency and, when applicable, the renewable nature of deploying 
mature clean energy technology is fully accounted for, the Secretary of 
Energy shall relocate the administration of the Clean Energy 
Application Centers to the Office of Energy Efficiency and Renewable 
Energy within the Department of Energy. The Office of Electricity 
Delivery and Energy Reliability shall continue to perform work on the 
role of such technology in support of the grid and its reliability and 
security, and shall assist the Clean Energy Application Centers in 
their work with regard to the grid and with electric utilities.
    ``(e) Grants.--
            ``(1) In general.--The Secretary of Energy shall make 
        grants to universities, research centers, and other appropriate 
        institutions to assure the continued operations and 
        effectiveness of 8 Regional Clean Energy Application Centers in 
        each of the following regions (as designated for such purposes 
        as of the date of the enactment of this section):
                    ``(A) Gulf Coast.
                    ``(B) Intermountain.
                    ``(C) Mid-Atlantic.
                    ``(D) Midwest.
                    ``(E) Northeast.
                    ``(F) Northwest.
                    ``(G) Pacific.
                    ``(H) Southeast.
            ``(2) Establishment of goals and compliance.--In making 
        grants under this section, the Secretary shall ensure that 
        sufficient goals are established and met by each Center 
        throughout the program duration concerning outreach and 
        technology deployment.
    ``(f) Activities.--Each Clean Energy Application Center shall 
operate a program to encourage deployment of clean energy technologies 
through education and outreach to building and industrial 
professionals, and to other individuals and organizations with an 
interest in efficient energy use. In addition, the Centers shall 
provide project specific support to building and industrial 
professionals through assessments and advisory activities. Funds made 
available under this section may be used for the following activities:
            ``(1) Developing and distributing informational materials 
        on clean energy technologies, including continuation of the 
        eight existing Web sites.
            ``(2) Developing and conducting target market workshops, 
        seminars, internet programs and other activities to educate end 
        users, regulators, and stakeholders in a manner that leads to 
        the deployment of clean energy technologies.
            ``(3) Providing or coordinating onsite assessments for 
        sites and enterprises that may consider deployment of clean 
        energy technology.
            ``(4) Performing market research to identify high profile 
        candidates for clean energy deployment.
            ``(5) Providing consulting support to sites considering 
        deployment of clean energy technologies.
            ``(6) Assisting organizations developing clean energy 
        technologies to overcome barriers to deployment.
            ``(7) Assisting companies and organizations with 
        performance evaluations of any clean energy technology 
        implemented.
    ``(g) Duration.--A grant awarded under this section shall be for a 
period of 5 years. each grant shall be evaluated annually for its 
continuation based on its activities and results.
    ``(h) Authorization.--There is authorized to be appropriated for 
purposes of this section the sum of $10,000,000 for each of fiscal 
years 2008, 2009, 2010, 2011, and 2012.''.
    (b) Table of Contents.--The table of contents for such Act is 
amended by inserting the following after the items relating to part D 
of title III:

                 ``Part E--Industrial Energy Efficiency

``Sec. 371. Survey of waste industrial energy recovery and potential 
                            use.
``Sec. 372. Definitions.
``Sec. 373. Survey and registry.
``Sec. 374. Waste Energy Recovery Incentive Grant Program.
``Sec. 375. Additional incentives for recovery, utilization and 
                            prevention of industrial waste energy.
``Sec. 376. Clean Energy Application Centers.''.

            PART 6--ENERGY EFFICIENCY OF PUBLIC INSTITUTIONS

SEC. 9071. SHORT TITLE.

    This part may be cited as the ``Sustainable Energy Institutional 
Infrastructure Act of 2007''.

SEC. 9072. FINDINGS.

    The Congress finds the following:
            (1) Many institutional entities own and operate, or are 
        served by, district energy systems.
            (2) A variety of renewable energy resources could be tapped 
        by governmental and institutional energy systems to meet energy 
        requirements.
            (3) Use of these renewable energy resources to meet energy 
        requirements will reduce reliance on fossil fuels and the 
        associated emissions of air pollution and carbon dioxide.
            (4) CHP is a highly efficient and environmentally 
        beneficial means to generate electric energy and heat, and 
        offers total efficiency much greater than conventional separate 
        systems, where electric energy is generated at and transmitted 
        long distances from a centrally located generation facility, 
        and onsite heating and cooling equipment is used to meet 
        nonelectric energy requirements.
            (5) Heat recovered in a CHP generation system can be used 
        for space heating, domestic hot water, or process steam 
        requirements, or can be converted to cooling energy to meet air 
        conditioning requirements.
            (6) The increased efficiency of CHP results in reduction in 
        emissions of air pollution and carbon dioxide.
            (7) District energy systems represent a key opportunity for 
        expanding implementation of CHP because district energy systems 
        provide a means of delivering thermal energy from CHP to a 
        substantial base of end users.
            (8) District energy systems help cut peak power demand and 
        reduce power transmission and distribution system constraints 
        by meeting air conditioning demand through delivery of chilled 
        water produced with CHP-generated heat or other energy sources, 
        shifting power demand through thermal storage, and, with CHP, 
        generating power near load centers.
            (9) Evaluation and implementation of sustainable energy 
        infrastructure is a complex undertaking involving a variety of 
        technical, economic, legal, and institutional issues and 
        barriers, and technical assistance is often required to 
        successfully navigate these barriers.
            (10) The major constraint to significant expansion of 
        sustainable energy infrastructure by institutional entities is 
        a lack of capital funding for implementation.

SEC. 9073. DEFINITIONS.

    For purposes of this part--
            (1) the term ``CHP'' means combined heat and power, or the 
        generation of electric energy and heat in a single, integrated 
        system;
            (2) the term ``district energy systems'' means systems 
        providing thermal energy to buildings and other energy 
        consumers from one or more plants to individual buildings to 
        provide space heating, air conditioning, domestic hot water, 
        industrial process energy, and other end uses;
            (3) the term ``institutional entities'' means local 
        governments, public school districts, municipal utilities, 
        State governments, Federal agencies, and other entities 
        established by local, State, or Federal agencies to meet public 
        purposes, and public or private colleges, universities, 
        airports, and hospitals;
            (4) the term ``renewable thermal energy sources'' means 
        non-fossil-fuel energy sources, including biomass, geothermal, 
        solar, natural sources of cooling such as cold lake or ocean 
        water, and other sources that can provide heating or cooling 
        energy;
            (5) the term ``sustainable energy infrastructure'' means 
        facilities for production of energy from CHP or renewable 
        thermal energy sources and distribution of thermal energy to 
        users; and
            (6) the term ``thermal energy'' means heating or cooling 
        energy in the form of hot water or steam (heating energy) or 
        chilled water (cooling energy).

SEC. 9074. TECHNICAL ASSISTANCE PROGRAM.

    (a) Establishment.--The Secretary of Energy shall, with funds 
appropriated for this purpose, implement a program of information 
dissemination and technical assistance to institutional entities to 
assist them in identifying, evaluating, designing, and implementing 
sustainable energy infrastructure.
    (b) Information Dissemination.--The Secretary shall develop and 
disseminate information and assessment tools addressing--
            (1) identification of opportunities for sustainable energy 
        infrastructure;
            (2) technical and economic characteristics of sustainable 
        energy infrastructure;
            (3) utility interconnection, and negotiation of power and 
        fuel contracts;
            (4) financing alternatives;
            (5) permitting and siting issues;
            (6) case studies of successful sustainable energy 
        infrastructure systems; and
            (7) computer software for assessment, design, and operation 
        and maintenance of sustainable energy infrastructure systems.
    (c) Eligible Costs.--Upon application by an institutional entity, 
the Secretary may make grants to such applicant to fund--
            (1) 75 percent of the cost of feasibility studies to assess 
        the potential for implementation or improvement of sustainable 
        energy infrastructure;
            (2) 60 percent of the cost of guidance on overcoming 
        barriers to project implementation, including financial, 
        contracting, siting, and permitting barriers; and
            (3) 45 percent of the cost of detailed engineering and 
        design of sustainable energy infrastructure.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $15,000,000 for fiscal year 
2008, $15,000,000 for fiscal year 2009, and $15,000,000 for fiscal year 
2010.

SEC. 9075. REVOLVING FUND.

    (a) Establishment.--The Secretary of Energy shall, with funds 
appropriated for this purpose, create a Sustainable Institutions 
Revolving Fund for the purpose of establishing and operating a 
Sustainable Institutions Revolving Fund (in this section referred to as 
the ``SIRF'') for the purpose of providing loans for the construction 
or improvement of sustainable energy infrastructure to serve 
institutional entities.
    (b) Eligible Costs.--A loan provided from the SIRF shall be for no 
more than 70 percent of the total capital costs of a project, and shall 
not exceed $15,000,000. Such loans shall be for constructing 
sustainable energy infrastructure, including--
            (1) plant facilities used for producing thermal energy, 
        electricity, or both;
            (2) facilities for storing thermal energy;
            (3) facilities for distribution of thermal energy; and
            (4) costs for converting buildings to use thermal energy 
        from sustainable energy sources.
    (c) Qualifications.--Loans from the SIRF may be made to 
institutional entities for projects meeting the qualifications and 
conditions established by the Secretary, including the following 
minimum qualifications:
            (1) The project shall be technically and economically 
        feasible as determined by a detailed feasibility analysis 
        performed or corroborated by an independent consultant.
            (2) The borrower shall demonstrate that adequate and 
        comparable financing was not found to be reasonably available 
        from other sources, and that the project is economically more 
        feasible with the availability of the SIRF loan.
            (3) The borrower shall obtain commitments for the remaining 
        capital required to implement the project, contingent on 
        approval of the SIRF loan.
            (4) The borrower shall provide to the Secretary reasonable 
        assurance that all laborers and mechanics employed by 
        contractors or subcontractors in the performance of 
        construction work financed in whole or in part with a loan 
        provided under this section will be paid wages at rates not 
        less than those prevailing on similar work in the locality as 
        determined by the Secretary of Labor in accordance with 
        subchapter IV of chapter 31 of title 40, United States Code 
        (commonly referred to as the Davis-Bacon Act).
    (d) Financing Terms.--(1) Interest on a loan under this section may 
be a fixed rate or floating rate, and shall be equal to the Federal 
cost of funds consistent with the loan type and term, minus 1.5 
percent.
    (2) Interest shall accrue from the date of the loan, but the first 
payment of interest shall be deferred, if desired by the borrower, for 
a period ending not later than 3 years after the initial date of 
operation of the system.
    (3) Interest attributable to the period of deferred payment shall 
be amortized over the remainder of the loan term.
    (4) Principal shall be repaid on a schedule established at the time 
the loan is made. Such payments shall begin not later than 3 years 
after the initial date of operation of the system.
    (5) Loans made from the SIRF shall be repayable over a period 
ending not more than 20 years after the date the loan is made.
    (6) Loans shall be prepayable at any time without penalty.
    (7) SIRF loans shall be subordinate to other loans for the project.
    (e) Funding Cycles.--Applications for loans from the SIRF shall be 
received on a periodic basis at least semiannually.
    (f) Application of Repayments for Deficit Reduction.--Loans from 
the SIRF shall be made, with funds available for this purpose, during 
the 10 years starting from the date that the first loan from the fund 
is made. Until this 10-year period ends, funds repaid by borrowers 
shall be deposited in the SIRF to be made available for additional 
loans. Once loans from the SIRF are no longer being made, repayments 
shall go directly into the United States Treasury.
    (g) Priorities.--In evaluating projects for funding, priority shall 
be given to projects which--
            (1) maximize energy efficiency;
            (2) minimize environmental impacts, including from 
        regulated air pollutants, greenhouse gas emissions, and the use 
        of refrigerants known to cause ozone depletion;
            (3) use renewable energy resources;
            (4) maximize oil displacement; and
            (5) benefit economically-depressed areas.
    (h) Regulations.--Not later than one year after the date of 
enactment of this Act, the Secretary of Energy shall develop a plan and 
adopt rules and procedures for establishing and operating the SIRF.
    (i) Program Review.--Every two years the Secretary shall report to 
the Congress on the status and progress of the SIRF.
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $250,000,000 for fiscal year 
2008 and $500,000,000 for each of the fiscal years 2009 through 2012.

SEC. 9076. REAUTHORIZATION OF STATE ENERGY PROGRAMS.

    Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C. 
6325(f)) is amended by striking ``$100,000,000 for each of the fiscal 
years 2006 and 2007 and $125,000,000 for fiscal year 2008'' and 
inserting ``$125,000,000 for each of the fiscal years 2007, 2008, 2009, 
2010, 2011, and 2012''.

             PART 7--ENERGY SAVINGS PERFORMANCE CONTRACTING

SEC. 9081. DEFINITION OF ENERGY SAVINGS.

    Section 804(2) of the National Energy Conservation Policy Act (42 
U.S.C. 8287c(2)) is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively, and indenting 
        appropriately;
            (2) by striking ``means a reduction'' and inserting 
        ``means--
                    ``(A) a reduction'';
            (3) by striking the period at the end and inserting a 
        semicolon; and
            (4) by adding at the end the following:
                    ``(B) the increased efficient use of an existing 
                energy source by cogeneration or heat recovery, and 
                installation of renewable energy systems;
                    ``(C) if otherwise authorized by Federal or State 
                law (including regulations), the sale or transfer of 
                electrical or thermal energy generated onsite but in 
                excess of Federal needs, to utilities or non-Federal 
                energy users; and
                    ``(D) the increased efficient use of existing water 
                sources in interior or exterior applications.''.

SEC. 9082. FINANCING FLEXIBILITY.

    Section 801(a)(2) of the National Energy Conservation Policy Act 
(42 U.S.C. 8287(a)(2)) is amended by adding at the end the following:
    ``(E) Separate Contracts.--In carrying out a contract under this 
title, a Federal agency may--
            ``(i) enter into a separate contract for energy services 
        and conservation measures under the contract; and
            ``(ii) provide all or part of the financing necessary to 
        carry out the contract.''.

SEC. 9083. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS.

    (a) Authority to Enter Into Contracts.--Section 801(a)(2)(D) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(D)) is 
amended--
            (1) in clause (ii), by inserting ``and'' after the 
        semicolon at the end;
            (2) by striking clause (iii); and
            (3) by redesignating clause (iv) as clause (iii).
    (b) Reports.--Section 548(a)(2) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(a)(2)) is amended by inserting ``and any 
termination penalty exposure'' after ``the energy and cost savings that 
have resulted from such contracts''.
    (c) Conforming Amendment.--Section 2913 of title 10, United States 
Code is amended by striking subsection (e).

SEC. 9084. PERMANENT REAUTHORIZATION.

    Section 801 of the National Energy Conservation Policy Act (42 
U.S.C. 8287) is amended by striking subsection (c).

SEC. 9085. TRAINING FEDERAL CONTRACTING OFFICERS TO NEGOTIATE ENERGY 
              EFFICIENCY CONTRACTS.

    (a) Program.--The Secretary of Energy shall create and administer 
in the Federal Energy Management Program a training program to educate 
Federal contract negotiation and contract management personnel so that 
such contract officers are prepared to--
            (1) negotiate energy savings performance contracts;
            (2) conclude effective and timely contracts for energy 
        efficiency services with all companies offering energy 
        efficiency services; and
            (3) review Federal contracts for all products and services 
        for their potential energy efficiency opportunities and 
        implications.
    (b) Schedule.--The Federal Energy Management Program shall plan, 
staff, announce, and begin such training not later than one year after 
the date of enactment of this Act.
    (c) Personnel To Be Trained.--Personnel appropriate to receive such 
training shall be selected by and sent for such training from--
            (1) the Department of Defense;
            (2) the Department of Veterans Affairs;
            (3) the Department of Energy;
            (4) the General Services Administration;
            (5) the Department of Housing and Urban Development;
            (6) the United States Postal Service; and
            (7) all other Federal agencies and departments that enter 
        contracts for buildings, building services, electricity and 
        electricity services, natural gas and natural gas services, 
        heating and air conditioning services, building fuel purchases, 
        and other types of procurement or service contracts determined 
        by Federal Energy Management Program to offer the potential for 
        energy savings and greenhouse gas emission reductions if 
        negotiated with such goals in mind.
    (d) Trainers.--Such training may be conducted by attorneys or 
contract officers with experience in negotiating and managing such 
contracts from any agency, and the Department of Energy shall reimburse 
their related salaries and expenses from amounts appropriated for 
carrying out this section to the extent they are not already employees 
of the Department of Energy. Such training may also be provided by 
private experts hired by the Department of Energy for the purposes of 
this section, except that the Department may not hire experts who are 
simultaneously employed by any company under contract to provide such 
energy efficiency services to the Federal Government.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$750,000 for each of fiscal years 2008 through 2012.

SEC. 9086. PROMOTING LONG-TERM ENERGY SAVINGS PERFORMANCE CONTRACTS AND 
              VERIFYING SAVINGS.

    Section 801(a)(2) of the National Energy Conservation Policy Act 
(42 U.S.C. 8287(a)(2)) is amended--
            (1) in subparagraph (D), by inserting ``beginning on the 
        date of the delivery order'' after ``25 years''; and
            (2) by adding at the end the following:
    ``(F) Promotion of Contracts.--In carrying out this section, a 
Federal agency shall not--
            ``(i) establish a Federal agency policy that limits the 
        maximum contract term under subparagraph (D) to a period 
        shorter than 25 years; or
            ``(ii) limit the total amount of obligations under energy 
        savings performance contracts or other private financing of 
        energy savings measures.
    ``(G) Measurement and Verification Requirements for Private 
Financing.--
            ``(i) In general.--The evaluations and savings measurement 
        and verification required under paragraphs (1) and (3) of 
        section 543(f) shall be used by a Federal agency to meet the 
        requirements for--
                    ``(I) in the case of energy savings performance 
                contracts, the need for energy audits, calculation of 
                energy savings, and any other evaluation of costs and 
                savings needed to implement the guarantee of savings 
                under this section; and
                    ``(II) in the case of utility energy service 
                contracts, needs that are similar to the purposes 
                described in subclause (I).
            ``(ii) Modification of existing contracts.--Not later than 
        180 days after the date of enactment of this subparagraph, each 
        Federal agency shall, to the maximum extent practicable, modify 
        any indefinite delivery and indefinite quantity energy savings 
        performance contracts, and other indefinite delivery and 
        indefinite quantity contracts using private financing, to 
        conform to the amendments made by subtitle G of title I of the 
        Energy Efficiency Improvement Act of 2007.''.

       PART 8--ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCING

SEC. 9089. ADVISORY COMMITTEE.

    (a) Establishment.--The Assistant Secretary of Energy for Energy 
Efficiency and Renewable Energy shall establish an advisory committee 
to provide advice and recommendations to the Department of Energy on 
energy efficiency finance and investment issues, options, ideas, and 
trends, and to assist the energy community in identifying practical 
ways of lowering costs and increasing investments in energy efficiency 
technologies.
    (b) Membership.--The advisory committee established under this 
section shall have a balanced membership that shall include members 
representing the following communities:
            (1) Providers of seed capital.
            (2) Venture capitalists.
            (3) Private equity sources.
            (4) Investment banking corporate finance.
            (5) Investment banking mergers and acquisitions.
            (6) Equity capital markets.
            (7) Debt capital markets.
            (8) Research analysts.
            (9) Sales and trading.
            (10) Commercial lenders.
            (11) Residential lenders.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to the Secretary of Energy 
for carrying out this section.

             PART 9--ENERGY EFFICIENCY BLOCK GRANT PROGRAM

SEC. 9091. DEFINITIONS.

    For purposes of this part--
            (1) the term ``eligible entity'' means a State or an 
        eligible unit of local government within a State;
            (2) the term ``eligible unit of local government'' means--
                    (A) a city with a population of at least 50,000; 
                and
                    (B) a county with a population of at least 200,000;
            (3) the term ``Secretary'' means the Secretary of Energy; 
        and
            (4) the term ``State'' means one of the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, Guam, 
        American Samoa, the United States Virgin Islands, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States.

SEC. 9092. ESTABLISHMENT OF PROGRAM.

    The Secretary shall establish an Energy Efficiency Block Grant 
Program to make block grants to eligible entities as provided in this 
part.

SEC. 9093. ALLOCATIONS.

    (a) In General.--Of the funds appropriated for making grants under 
this part for each fiscal year, the Secretary shall allocate 70 percent 
to be provided to eligible units of local government as provided in 
subsection (b) and 30 percent to be provided to States as provided in 
subsection (c).
    (b) Eligible Units of Local Government.--The Secretary shall 
provide grants to eligible units of local government according to a 
formula giving equal weight to--
            (1) population, according to the most recent available 
        Census data; and
            (2) daytime population, or another similar factor such as 
        square footage of commercial, office, and industrial space, as 
        determined by the Secretary.
    (c) States.--The Secretary shall provide grants to States according 
to a formula based on population, according to the most recent 
available Census data.
    (d) Publication of Allocation Formulas.--Not later than 90 days 
before the beginning of any fiscal year in which grants are to made 
under this part, the Secretary shall publish in the Federal Register 
the formulas for allocation described in subsection (b)(1) and (b)(2).

SEC. 9094. ELIGIBLE ACTIVITIES.

    Funds provided through a grant under this part may be used for the 
following activities:
            (1) Development and implementation of an Energy Efficiency 
        Strategy under section 9095.
            (2) Retaining technical consultant services to assist an 
        eligible entity in the development of such Strategy, 
        including--
                    (A) formulation of energy efficiency, energy 
                conservation, and energy usage goals;
                    (B) identification of strategies to meet such goals 
                through efforts to increase energy efficiency and 
                reduce energy consumption;
                    (C) identification of strategies to encourage 
                behavioral changes among the populace that will help 
                achieve such goals;
                    (D) development of methods to measure progress in 
                achieving such goals;
                    (E) development and preparation of annual reports 
                to the citizenry of the eligible entity's energy 
                efficiency strategies and goals, and progress in 
                achieving them; and
                    (F) other services to assist in the implementation 
                of the Energy Efficiency Strategy.
            (3) Conducting energy audits.
            (4) Development and implementation of weatherization 
        programs.
            (5) Creation of financial incentive programs for energy 
        efficiency retrofits, including zero-interest or low-interest 
        revolving loan funds.
            (6) Grants to nonprofit organizations and governmental 
        agencies for energy retrofits.
            (7) Development and implementation of energy efficiency 
        programs and technologies for buildings and facilities of 
        nonprofit organizations and governmental agencies.
            (8) Development and implementation of building and home 
        energy conservation programs, including--
                    (A) design and operation of the programs;
                    (B) identifying the most effective methods for 
                achieving maximum participation and efficiency rates;
                    (C) public education;
                    (D) measurement protocols; and
                    (E) identification of energy efficient 
                technologies.
            (9) Development and implementation of energy conservation 
        programs, including--
                    (A) use of flex time by employers;
                    (B) satellite work centers; and
                    (C) other measures that have the effect of 
                increasing energy efficiency and decreasing energy 
                consumption.
            (10) Development and implementation of building codes and 
        inspection services for public, commercial, industrial, and 
        single and multifamily residential buildings to promote energy 
        efficiency.
            (11) Application and implementation of alternative energy 
        and energy distribution technologies that significantly 
        increase energy efficiency and promote distributed resources 
        and district heating and cooling systems.
            (12) Development and promotion of zoning guidelines or 
        requirements that result in increased energy efficiency, 
        efficient development, active living land use planning, and 
        infrastructure such as bike lanes and pathways, and pedestrian 
        walkways.
            (13) Promotion of greater participation and efficiency 
        rates for material conservation programs, including source 
        reduction, recycling, and recycled content procurement programs 
        that lead to increases in energy efficiency.
            (14) Establishment of a State, county, or city office to 
        assist in the development and implementation of the Energy 
        Efficiency Strategy.

SEC. 9095. REQUIREMENTS.

    (a) Requirements for Eligible Units of Local Government.--
            (1) Proposed strategy.--Not later than 1 year after being 
        awarded a grant under this part, an eligible unit of local 
        government shall submit to the Secretary a proposed Energy 
        Efficiency Strategy which establishes goals for increased 
        energy efficiency in the jurisdiction of the eligible units of 
        local government. The Strategy shall include plans for the use 
        of funds received under the grant to assist the eligible unit 
        of local government in the achievement of such goals, 
        consistent with section 9094. In developing such a Strategy, an 
        eligible unit of local government shall take into account any 
        plans for the use of funds by adjoining eligible units of local 
        governments funded under this part.
            (2) Approval.--The Secretary shall approve or disapprove a 
        proposed Strategy submitted under paragraph (1) not later than 
        90 days after receiving it. If the Secretary disapproves a 
        proposed Strategy, the Secretary shall provide to the eligible 
        unit of local government the reasons for such disapproval. The 
        eligible unit of local government may revise and resubmit the 
        Strategy, as many times as required, until approval is granted.
            (3) Funding for preparation of strategy.--
                    (A) In general.--Until the Secretary has approved a 
                proposed Energy Efficiency Strategy under paragraph 
                (2), the Secretary shall only disburse to an eligible 
                unit of local government $200,000 or 20 percent of the 
                grant, whichever is greater, which may be used only for 
                preparation of the Strategy.
                    (B) Remainder of funds.--The remainder of an 
                eligible unit of local government's grant funds awarded 
                but not disbursed under subparagraph (A) shall remain 
                available and shall be disbursed by the Secretary upon 
                approval of the Strategy.
            (4) Limitations on use of funds.--Of the amounts provided 
        through a grant under this part, an eligible unit of local 
        government may use--
                    (A) not more than 10 percent, or $75,000, whichever 
                is greater, for administrative expenses, not including 
                expenses needed to meet reporting requirements under 
                this part;
                    (B) not more than 20 percent, or $250,000, 
                whichever is greater, for the establishment of 
                revolving loan funds; and
                    (C) not more than 20 percent, or $250,000, 
                whichever is greater, for subgranting to 
                nongovernmental organizations for the purpose of 
                assisting in the implementation of the Energy 
                Efficiency Strategy.
            (5) Annual report.--Not later than 2 years after receipt of 
        the first disbursement of funds from a grant awarded under this 
        part, and annually thereafter, an eligible unit of local 
        government shall submit a report to the Secretary on the status 
        of the Strategy's development and implementation, and, where 
        practicable, a best available assessment of energy efficiency 
        gains within the jurisdiction of the eligible unit of local 
        government.
    (b) Requirements for States.--
            (1) Allocation of grant funds.--A State receiving a grant 
        under this part shall use at least 70 percent of the funds 
        received to provide subgrants to units of local government in 
        the State that are not eligible units of local government. The 
        State shall make such subgrant awards not later than 6 months 
        after approval of the State's Strategy under paragraph (3).
            (2) Proposed strategy.--Not later than 120 days the date of 
        enactment of this Act, each State shall submit to the Secretary 
        a proposed Energy Efficiency Strategy which establishes a 
        process for making subgrants described in paragraph (1), and 
        establishes goals for increased energy efficiency in the 
        jurisdiction of the State. The Strategy shall include plans for 
        the use of funds received under a grant under this part to 
        assist the State in the achievement of such goals, consistent 
        with section 9094.
            (3) Approval.--The Secretary shall approve or disapprove a 
        proposed Strategy submitted under paragraph (2) not later than 
        90 days after receiving it. If the Secretary disapproves a 
        proposed Strategy, the Secretary shall provide to the State the 
        reasons for such disapproval. The State may revise and resubmit 
        the Strategy, as many times as required, until approval is 
        granted.
            (4) Funding for preparation of strategy.--
                    (A) In general.--Until the Secretary has approved a 
                proposed Energy Efficiency Strategy under paragraph 
                (2), the Secretary shall only disburse to a State 
                $200,000 or 20 percent of the grant, whichever is 
                greater, which may be used only for preparation of the 
                Strategy.
                    (B) Remainder of funds.--The remainder of a State's 
                grant funds awarded but not disbursed under 
                subparagraph (A) shall remain available and shall be 
                disbursed by the Secretary upon approval of the 
                Strategy.
            (5) Limitations on use of funds.--Of the amounts provided 
        through a grant under this part, a State may use not more than 
        10 percent for administrative expenses.
            (6) Annual reports.--A State shall annually report to the 
        Secretary on the development and implementation of its 
        Strategy. Each such report shall include--
                    (A) a status report on the State's subgrant program 
                described in paragraph (1);
                    (B) a best available assessment of energy 
                efficiency gains achieved through the State's Strategy; 
                and
                    (C) specific energy efficiency and energy 
                conservation goals for future years.
    (c) State and Local Advisory Committee.--
            (1) State and local advisory committee.--The Secretary 
        shall establish a State and Local Advisory Committee to provide 
        advice regarding the administration, direction, and evaluation 
        of the program under this part.

SEC. 9096. REVIEW AND EVALUATION.

    The Secretary may review and evaluate the performance of grant 
recipients, including by performing audits, and may deny funding to 
such grant recipients for failure to properly adhere to--
            (1) the Secretary's guidelines and regulations relating to 
        the program under this part, including the misuse or 
        misappropriation of funds; or
            (2) the grant recipient's Strategy.

SEC. 9097. TECHNICAL ASSISTANCE AND EDUCATION PROGRAM.

    (a) Establishment.--The Secretary shall establish and carry out a 
technical assistance and education program to provide--
            (1) technical assistance to State and local governments;
            (2) public education programs;
            (3) demonstration of innovative energy efficiency systems 
        and practices; and
            (4) identification of effective measurement methodologies 
        and methods for changing or influencing public participation 
        in, and awareness of, energy efficiency programs.
    (b) Eligible Recipients.--Eligible recipients of assistance under 
this section shall include State and local governments, State and local 
government associations, public and private nonprofit organizations, 
and colleges and universities.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section 
$150,000,000 for each of the fiscal years 2008 through 2012.

SEC. 9098. AUTHORIZATION OF APPROPRIATIONS.

    (a) Grants.--There are authorized to be appropriated to the 
Secretary for grants under this part, $2,000,000,000 for each of fiscal 
years 2008 through 2012.
    (b) Administration.--There are authorized to be appropriated to the 
Secretary for administrative expenses of the program established under 
this part--
            (1) $20,000,000 for fiscal year 2008;
            (2) $20,000,000 for fiscal year 2009;
            (3) $25,000,000 for fiscal year 2010;
            (4) $25,000,000 for fiscal year 2011; and
            (5) $30,000,000 for fiscal year 2012.

                  Subtitle B--Smart Grid Facilitation

SEC. 9101. SHORT TITLE.

    This subtitle may be cited as the ``Smart Grid Facilitation Act of 
2007''.

                           PART 1--SMART GRID

SEC. 9111. STATEMENT OF POLICY ON MODERNIZATION OF ELECTRICITY GRID.

    (a) Smart Grid Characteristics.--It is the policy of the United 
States to support the modernization of the Nation's electricity 
transmission and distribution system to incorporate digital information 
and controls technology and to share real-time pricing information with 
electricity customers to achieve each of the following, which together 
characterize a smart grid:
            (1) Increased reliability, security and efficiency of the 
        electric grid.
            (2) Dynamic optimization of grid operations and resources, 
        with full cyber-security.
            (3) Deployment and integration of distributed resources and 
        generation.
            (4) Development and incorporation of demand response 
        demand-side resources, and energy efficiency resources.
            (5) Deployment of ``smart'' technologies for metering, 
        communications concerning grid operations and status, and 
        distribution automation.
            (6) Integration of ``smart'' appliances and consumer 
        devices.
            (7) Deployment and integration of renewable energy 
        resources, both to the grid and on the customer side of the 
        electric meter.
            (8) Deployment and integration of advanced electricity 
        storage and peak-sharing technologies, including plug-in 
        electric and hybrid electric vehicles, and thermal-storage air 
        conditioning.
            (9) Provision to consumers of new information and control 
        options.
            (10) Continual environmental improvement in electricity 
        production and distribution.
            (11) Enhanced capacity and efficiency of electricity 
        networks, reduction of line losses, and maintenance of power 
        quality.
    (b) Support.--The Secretary of Energy and the Federal Energy 
Regulatory Commission and other Federal agencies as appropriate shall 
undertake programs to support the development and demonstration of 
Smart Grid technologies and standards to maximize the achievement of 
these goals.
    (c) Barriers.--It is further the policy of the United States that 
no State, State agency, or local government or instrumentality thereof 
should prohibit, or erect unreasonable barriers to, the deployment of 
smart grid technologies on an electric utility's distribution 
facilities, or unreasonably limit the services that may be provided 
using such technologies.
    (d) Information.--It is further the policy of the United States 
that electricity purchasers are entitled to receive information about 
the varying value of electricity at different times and places, and 
that States shall not prohibit nor erect unreasonable barriers to the 
provision of such information flows to end users.

SEC. 9112. GRID MODERNIZATION COMMISSION.

    (a) Establishment and Mission.--
            (1) Establishment.--The President shall establish a Grid 
        Modernization Commission composed of 9 members. Three members 
        of the Commission shall be appointed by the President, and one 
        each shall be appointed by the Speaker and Minority Leader of 
        the United States House of Representatives and by the Majority 
        Leader and Minority Leader of the United States Senate. Two 
        members shall be appointed by the President from among persons 
        recommended by an association representing State utility 
        regulatory commissioners. The President shall designate one 
        Commissioner to serve as Chairperson.
            (2) Mission.--The mission of the Grid Modernization 
        Commission shall be to facilitate the adoption of Smart Grid 
        standards, technologies, and practices across the Nation's 
        electricity grid to the point of general adoption and ongoing 
        market support in the United States electric sector. The 
        Commission shall be responsible for monitoring developments, 
        encouraging progress toward common standards and protocols, 
        identifying barriers and proposing solutions, coordinating with 
        all Federal departments and agencies, and coordinating 
        approaches on smart grid implementation with States and local 
        governmental authorities.
    (b) Membership.--The members appointed to the Commission shall, 
collectively, have qualifications in electric utility operations and 
infrastructure, digital information and control technologies, security, 
market development, finance and utility regulation, energy efficiency, 
demand response, renewable energy, and consumer protection.
    (c) Authorities to Intervene.--The Commission shall have the 
authority to intervene and represent itself before the Federal Energy 
Regulatory Commission and other Federal and State agencies as it deems 
necessary to accomplish its mission.
    (d) Terms of Office.--The term of office of each Commissioner shall 
be 5 years, and any member may be reappointed for not more than one 
additional term of 5 years.
    (e) Termination.--Unless extended by Act of Congress, the 
Commission shall complete its work and cease its activities by January 
1, 2020, or on such earlier date that the Commission determines that 
the proliferation, evolution, and adaptation of Smart Grid technologies 
no longer require Federal leadership and assistance.
    (f) Compensation of Members.--Each member of the Commission who is 
not an officer or employee of the Federal Government shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level III of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Commission. All members of the Commission who are 
officers or employees of the United States shall serve without 
compensation in addition to that received for their services as 
officers or employees of the United States.
    (g) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (h) Meetings.--The Commission shall meet at the call of the 
Chairman. Commission meetings shall be open to the public, but as many 
as three Commissioners may meet in private without constituting a 
meeting requiring public access.
    (i) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App. 1 et seq.) shall not apply to the 
Commission.
    (j) Offices and Staff.--The Secretary of Energy shall provide the 
Commission with offices in the Department of Energy and shall make 
available to the Commission the expertise and staff resources of both 
the Office of Electricity Delivery and Energy Reliability and the 
Office of Energy Efficiency and Renewable Energy.
    (k) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement, and 
such detail shall be without interruption or loss of civil service 
status or privilege.
    (l) Executive Director.--The Secretary of Energy shall appoint an 
officer of the Senior Executive Service to serve as Executive Director 
to the Commission.
    (m) Procurement of Temporary and Intermittent Services.--The 
Chairman of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which 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 such title.
    (n) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out this part. Upon request of 
the Chairman of the Commission, the head of such department or agency 
shall furnish such information to the Commission. The Commission shall 
maintain the same level of confidentiality for such information made 
available under this subsection as is required of the head of the 
department or agency from which the information was obtained.
    (o) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.

SEC. 9113. GRID ASSESSMENT AND REPORT.

    (a) In General.--The Grid Modernization Commission shall undertake, 
and update on a biannual basis, an assessment of the progress toward 
modernizing the electric system from generation to ultimate electricity 
consumption, including implementation of ``smart grid'' technologies. 
The Commission shall prepare this assessment with input from 
stakeholders including but not limited to electric utilities, other 
Federal offices, States, companies involved in developing related 
technologies, the National Electric Reliability Organization recognized 
by the Federal Energy Regulatory Commission, electricity customers, and 
persons with special related expertise. The assessment shall include 
each of the following:
            (1) An updated inventory of existing smart grid systems.
            (2) A description of the condition of existing grid 
        infrastructure and procedures for determining the need for new 
        infrastructure;
            (3) A description of any plans of States, utilities, or 
        others to introduce smart grid systems and technologies.
            (4) An assessment of constraints to deployment of smart 
        grid technology and most important opportunities for doing so, 
        including the readiness or lack thereof of enabling 
        technologies.
            (5) An assessment of remaining potential benefits resulting 
        from introduction of smart grid systems, including benefits 
        related to demand-side efficiencies, improved reliability, 
        improved security, reduced prices, and improved integration of 
        renewable resources.
            (6) Recommendations for legislative or regulatory changes 
        to remove barriers to and create incentives for smart grid 
        system implementation and to meet the policy goals of this 
        title.
            (7) An estimate of the potential costs required for 
        modernization of the electricity grid, with specificity 
        relative to geographic areas and components of the grid, 
        together with an assessment of whether the necessary funds 
        would be available to meet such costs, and the sources of such 
        funds.
            (8) An assessment of ancillary benefits to other economic 
        sectors or activities beyond the electricity sector, such as 
        potential broadband service over power lines.
            (9) An assessment of technologies, activities or 
        opportunities in energy end use devices, customer premises, 
        buildings, and power generation and storage devices that could 
        accelerate or expand the impact and effectiveness of smart grid 
        advances.
            (10) An assessment of potential risks to personal privacy, 
        corporate confidentiality, and grid security from the spread of 
        smart grid technologies, and if so what additional measures and 
        policies are needed to assure privacy and information 
        protection for electric customers and grid partners, and cyber-
        security protection for extended grid systems.
            (11) An assessment of the readiness of market forces to 
        drive further implementation and evolution of ``smart grid'' 
        technologies in the absence of government leadership.
            (12) Recommendations to the Secretary of Energy and other 
        Federal officers on actions they should take to assist.
The Commission may request electric utilities to provide information 
relating to deployment and planned deployment of smart grid systems and 
technologies. At the request of the utility, the Commission shall 
maintain the confidentiality of utility-specific or specific security-
related information. The Commission shall provide opportunities for 
input and comment by interested persons, including representatives of 
electricity consumers, Smart Grid technology service providers, the 
electric utility industry, and State and local government.
    (b) State and Regional Assessment and Report.--States or groups of 
States are encouraged to participate in the development of State or 
region-specific components of the assessment and report under 
subsection (a). Such State-specific components may address the 
assessment and reporting criteria above but also may include but not be 
limited to any of the following:
            (1) Assessment of types of security threats to electricity 
        delivery.
            (2) Energy assurance and response plans to address security 
        threats.
            (3) Plans for introduction of smart grid systems and 
        technologies over 3, 5, and 10 year planning horizons.
The Commission may make grants to States that begin development of a 
State or Regional Plan within 180 days after the enactment of this Act 
to offset up to one-half of the costs required to develop such plans.
    (c) Smart Grid Report.--Based on its completed initial assessment 
under subsection (a), the Commission shall submit a report to Congress 
and the President not later than 2 years after the date of enactment of 
this Act and subsequent reports every 2 years thereafter. Each report 
shall include recommendations to the President and to the Congress on 
actions necessary to modernize the electricity grid. The Commission 
shall annually update and revise its report and as well as conduct 
ongoing monitoring and evaluation activities.
    (d) Consultation and Public Input.--The Commission shall consult 
with the Secretary of Energy and the Federal Energy Regulatory 
Commission on technical issues associated with advanced electricity 
grid technologies. The Commission shall to the extent feasible provide 
for broad and frequent input from stakeholders and the general public.
    (e) Interoperability Protocols and Model Standards for Information 
Management.--
            (1) In general.--The Grid Modernization Commission shall 
        work with the National Institute of Standards and Technology, 
        as well as with Smart Grid stakeholders, to develop protocols 
        and model standards for information management to achieve 
        interoperability of smart grid devices and systems. Such 
        protocols and model standards shall be flexible, uniform, and 
        technology-neutral, including but not limited to technologies 
        for communication of Smart Grid information. Such protocols and 
        standards shall further align policy, business, and technology 
        approaches in a manner that--
                    (A) enables all electric resources, including 
                demand-side resources, storage devices, renewable 
                generation resources, other distributed generation 
                resources, to be interconnected to and function 
                compatibly with the grid, on an automated basis to the 
                extent appropriate;
                    (B) enables electricity-consuming equipment to 
                communicate with and contribute to an efficient, 
                reliable electricity network, on an automated basis to 
                the extent appropriate;
                    (C) enhances two-way communication between Smart-
                Grid enabled devices connected to the electric power 
                grid;
                    (D) supports the ability of Smart-Grid enabled 
                devices to exchange information, regardless of the 
                operating system, programming languages, or media of 
                communication utilized by such devices;
                    (E) enables the operators of utilities and regional 
                system operators of the grid to automatically detect 
                anomalies and respond to isolate areas affected in 
                order to maintain reliability; and
                    (F) enables State regulators and individual utility 
                managers to develop rate structures and regulations 
                incorporating Smart Grid capabilities for the benefit 
                of consumers and the electricity system, accommodating 
                increased demand response and distributed generation.
            (2) Meetings and working group for development of 
        interoperability protocols and model standards.--Within 60 days 
        after the enactment of this section, the Director of the 
        National Institute of Standards and Technology shall convene 
        meetings of experts and stakeholders to discuss and achieve 
        such standards, for the purpose of forming an ongoing voluntary 
        working group. Upon the creation of the Grid Modernization 
        Commission, the Commission shall assume the role of convening 
        further such meetings and collaborating with such a working 
        group to continue progress towards such standards, with 
        continued technical support from the Director of the National 
        Institute of Standards and Technology. The Gridwise 
        Architecture Council, the International Electrical and 
        Electronics Engineers, the National Electric Reliability 
        Organization recognized by the Federal Energy Regulatory 
        Commission, and National Electrical Manufacturer's Association 
        shall be among stakeholders invited to such meetings, together 
        with other groups of manufacturers of equipment that could 
        usefully be Smart-Grid capable, groups of customers, State and 
        Federal regulators, electric utility groups, communications and 
        computer experts, and other Federal offices and agencies that 
        have roles related to security, communications, 
        computerization, and reliability of the electricity system.
            (3) Reporting and adoption of protocols and model 
        standards.--
                    (A) Reporting requirements.--The Director of the 
                National Institute of Standards and Technology and the 
                Grid Modernization Commission, after it is created, 
                shall report annually to Congress on the progress of 
                creating such protocols and model standards.
                    (B) Adoption.--The Commission shall review such 
                protocols and standards as are recommended by the 
                working group and, upon finding that they meet the 
                goals stated in paragraph (1), shall publish such 
                finding, and shall encourage utilities, regulators, and 
                other stakeholders to adopt to such standards.
                    (C) Publication.--Except to the extent they may 
                allow or create threats to grid reliability and 
                security, such standards and protocols shall be made 
                publicly available for general use by manufacturers, 
                utilities, regulators, and others.
                    (D) Goal.--The intent of Congress is that such 
                protocols and model standards will be initially 
                developed, reviewed, and approved for general adoption, 
                subject to further improvements, within 3 years of the 
                enactment of this section.
    (f) Authorization.--There are authorized to be appropriated for the 
purposes of this section--
            (1) $5,000,000 to the National Institute of Standards and 
        Technology for each of fiscal years 2009 through 2012, and such 
        sums as may thereafter be necessary to support the purposes of 
        this section; and
            (2) $20,000,000 to the Secretary of Energy to support the 
        operations of the Grid Modernization Commission for each of 
        fiscal years 2009 through 2020.

SEC. 9114. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT COSTS.

     (a) Matching Fund.--The Secretary of Energy shall establish a 
Smart Grid Investment Matching Grant Program to provide reimbursement 
of one-fourth of qualifying Smart Grid investments.
    (b) Qualifying Investments.--Qualifying Smart Grid investments may 
include any of the following made on or after the date of enactment of 
this Act:
            (1) In the case of appliances covered for purposes of 
        establishing energy conservation standards under part B of 
        title III of the Energy Policy and Conservation Act of 1975 (42 
        U.S.C. 6291 and following), the documented expenditures 
        incurred by a manufacturer of such appliances associated with 
        purchasing or designing, creating the ability to manufacture, 
        and manufacturing and installing for one calendar year, 
        internal devices that allow the appliance to engage in Smart 
        Grid functions.
            (2) In the case of specialized electricity-using equipment, 
        including motors and drivers, installed in industrial or 
        commercial applications, the documented expenditures incurred 
        by its owner or its manufacturer of installing devices or 
        modifying that equipment to engage in Smart Grid functions.
            (3) In the case of transmission and distribution equipment 
        fitted with monitoring and communications devices to enable 
        smart grid functions, the documented expenditures incurred by 
        the electric utility to purchase and install such monitoring 
        and communications devices.
            (4) In the case of metering devices, sensors, control 
        devices, and other devices integrated with and attached to an 
        electric utility system that are capable of engaging in Smart 
        Grid functions, the documented expenditures incurred by the 
        electric utility and its customers to purchase and install such 
        devices.
            (5) In the case of software that enables devices or 
        computers to engage in Smart Grid functions, the documented 
        purchase costs of the software.
            (6) In the case of entities that operate or coordinate 
        operations of regional electric grids, the documented 
        expenditures for purchasing and installing such equipment that 
        allows Smart Grid functions to operate and be combined or 
        coordinated among multiple electric utilities and between that 
        region and other regions.
            (7) In the case of persons or entities other than electric 
        utilities owning and operating a distributed electricity 
        generator, the documented expenditures of enabling that 
        generator to be monitored, controlled, or otherwise integrated 
        into grid operations and electricity flows on the grid 
        utilizing Smart Grid functions.
            (8) In the case of electric or hybrid-electric vehicles, 
        the documented expenses for devices that allow the vehicle to 
        engage in Smart Grid functions.
            (9) The documented expenditures related to purchasing and 
        implementing Smart Grid functions in such other cases as the 
        Secretary of Energy shall identify. In making such grants, the 
        Secretary shall seek to reward innovation and early adaptation, 
        even if success is not complete, rather than deployment of 
        proven and commercially viable technologies.
    (c) Investments Not Included.--Qualifying Smart Grid investments do 
not include any of the following:
            (1) Expenditures for electricity generation, transmission, 
        or distribution infrastructure or equipment not directly 
        related to enabling Smart Grid functions.
            (2) After the effective date of a standard under paragraph 
        (21) of section 111(d) of the Public Utility Regulatory 
        Policies Act of 1978 (relating to Smart Grid information), an 
        investment that is not in compliance with such standard.
            (3) After the development and publication by the Commission 
        of protocols and model standards for interoperability of smart 
        grid devices and technologies, an investment that fails to 
        incorporate any of such protocols or model standards.
            (4) Expenditures for physical interconnection of generators 
        or other devices to the grid except those that are directly 
        related to enabling Smart Grid functions.
            (5) Expenditures for ongoing salaries, benefits, or 
        personnel costs not incurred in the initial installation, 
        training, or start up of smart grid functions.
            (6) Expenditures for travel, lodging, meals or other 
        personal costs.
            (7) Ongoing or routine operation, billing, customer 
        relations, security, and maintenance expenditures.
            (8) Such other expenditures that the Secretary of Energy 
        determines not to be Qualifying Smart Grid Investments by 
        reason of the lack of the ability to perform smart grid 
        functions or lack of direct relationship to smart grid 
        functions.
    (d) Smart Grid Functions.--The term ``smart grid functions'' means 
any of the following:
            (1) The ability to develop, store, send and receive digital 
        information concerning electricity use, costs, prices, time of 
        use, nature of use, storage, or other information relevant to 
        device, grid, or utility operations, to or from or by means of 
        the electric utility system, through one or a combination of 
        devices and technologies.
            (2) The ability to develop, store, send and receive digital 
        information concerning electricity use, costs, prices, time or 
        use, nature of use, storage, or other information relevant to 
        device, grid, or utility operations to or from a computer or 
        other control device.
            (3) The ability to measure or monitor electricity use as a 
        function of time of day, power quality characteristics such as 
        voltage level, current, cycles per second, or source or type of 
        generation and to store, synthesize or report that information 
        by digital means.
            (4) The ability to sense and localize disruptions or 
        changes in power flows on the grid and communicate such 
        information instantaneously and automatically for purposes of 
        enabling automatic protective responses to sustain reliability 
        and security of grid operations.
            (5) The ability to detect, prevent, communicate with regard 
        to, respond to, or recover from system security threats, 
        including cyber-security threats and terrorism, using digital 
        information, media, and devices.
            (6) The ability of any appliance or machine to respond to 
        such signals, measurements, or communications automatically or 
        in a manner programmed by its owner or operator without 
        independent human intervention.
            (7) The ability to use digital information to operate 
        functionalities on the electric utility grid that were 
        previously electro-mechanical or manual.
            (8) The ability to use digital controls to manage and 
        modify electricity demand, enable congestion management, assist 
        in voltage control, provide operating reserves, and provide 
        frequency regulation.
            (9) Such other functions as the Secretary of Energy may 
        identify as being necessary or useful to the operation of a 
        Smart Grid.
    (e) Office.--The Secretary of Energy shall--
            (1) establish an Office to administer the Smart Grid 
        Investment Grant Program, assuring that expert resources from 
        the Commission on Grid Modernization, the Office of Energy 
        Distribution and Electricity Reliability, and the Office of 
        Energy Efficiency and Renewable Energy are fully available to 
        advise on its administration and actions;
            (2) appoint a Senior Executive Service officer to direct 
        the Office, together with such personnel as are required to 
        administer the Smart Grid Investment Grant program;
            (3) establish and publish in the Federal Register, within 
        180 days after the enactment of this Act procedures by which 
        applicants who have made qualifying Smart Grid investments can 
        seek and obtain reimbursement of one-fourth of their documented 
        expenditures;
            (4) establish procedures to assure that there is no 
        duplication or multiple reimbursement for the same investment 
        or costs, that the reimbursement goes to the party making the 
        actual expenditures for Qualifying Smart Grid Investments, and 
        that the grants made have significant effect in encouraging and 
        facilitating the development of a smart grid.;
            (5) maintain public records of reimbursements made, 
        recipients, and qualifying Smart Grid investments which have 
        received reimbursements;
            (6) establish procedures to provide, in cases deemed by the 
        Secretary to be warranted, advance payment of moneys up to the 
        full amount of the projected eventual reimbursement, to 
        creditworthy applicants whose ability to make Qualifying Smart 
        Grid Investments may be hindered by lack of initial capital, in 
        lieu of any later reimbursement for which that applicant 
        qualifies, and subject to full return of the advance payment in 
        the event that the Qualifying Smart Grid investment is not 
        made;
            (7) establish procedures to provide, in the event 
        appropriated moneys in any year are insufficient to provide 
        reimbursements for qualifying Smart Grid investments, that such 
        reimbursement would be made in the next fiscal year or whenever 
        funds are again sufficient, with the condition that the 
        insufficiency of funds to reimburse Qualifying Smart Grid 
        Investments from moneys appropriated for that purpose does not 
        create a Federal obligation to that applicant; and
            (8) have and exercise the discretion to deny grants for 
        investments that do not qualify in the reasonable judgement of 
        the Secretary.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy the sums of--
            (1) $10,000,000 for each of fiscal years 2008 through 2012 
        to provide for administration of the Smart Grid Investment 
        Matching Fund; and
            (2) $250,000,000 for fiscal year 2008 and $500,000,000 for 
        each of fiscal years 2009 through 2012 to provide 
        reimbursements of one-fourth of Qualifying Smart Grid 
        Investments.

SEC. 9115. SMART GRID TECHNOLOGY DEPLOYMENT.

    (a) Power Grid Digital Information Technology.--The Secretary of 
Energy shall conduct programs to--
            (1) deploy advanced techniques for measuring peak load 
        reductions and energy efficiency savings on customer premises 
        from smart metering, demand response, distributed generation 
        and electricity storage systems;
            (2) implement means for demand response, distributed 
        generation, and storage to provide ancillary services;
            (3) advance the use of wide-area measurement networks 
        including data mining, visualization, advanced computing, and 
        secure and dependable communications in a highly distributed 
        environment; and
            (4) implement reliability technologies in a grid control 
        room environment against a representative set of local outage 
        and wide area blackout scenarios.
    (b) Smart Grid Regional Demonstration Program.--
            (1) Establishment of program.--The Secretary of Energy 
        shall establish a program of demonstration projects 
        specifically focused on advanced technologies for power grid 
        sensing, communications, analysis, and power flow control, 
        including the integration of demand-side resources into grid 
        management. The goals of this program shall be to--
                    (A) demonstrate the potential benefits of 
                concentrated investments in advanced grid technologies 
                on a regional grid;
                    (B) facilitate the commercial transition from the 
                current power transmission and distribution system 
                technologies to advanced technologies; and
                    (C) facilitate the integration of advanced 
                technologies in existing electric networks to improve 
                system performance, power flow control and reliability.
            (2) Demonstration projects.--The Secretary shall establish 
        Smart Grid demonstration projects for not more than 5 electric 
        utility systems of various types and sizes under this 
        subsection. Such demonstration projects shall be undertaken in 
        cooperation with the electric utility. Under such demonstration 
        projects, financial assistance shall be available to cover not 
        more than one-half of the qualifying Smart Grid technology 
        investments made by the electric utility. Any project receiving 
        financial assistance under this section shall not be eligible 
        to receive financial assistance (including loan guarantees) 
        under any other Federal program.
    (c) Authorization.--
            (1) Power grid digital information technology programs.--
        There are authorized to be appropriated to carry out subsection 
        (a) such sums as are necessary for each of the fiscal years 
        2008 through 2012.
            (2) Smart grid regional demonstration program.--There is 
        authorized to be appropriated to carry out subsection (b) 
        $20,000,000 for each of the fiscal years 2008 through 2012.

SEC. 9116. SMART GRID INFORMATION REQUIREMENTS.

    (a) Findings.--Congress finds that Smart Grid technologies will 
require, for their optimum use by electricity consumers, that such 
consumers have access to information on prices, use, and other factors 
in possession of their utilities or electricity suppliers, in order to 
assist the customers in optimizing their electricity use and limiting 
the associated environmental impacts.
    (b) Development of Rules.--The Commission on Grid Modernization 
shall within one year of its initial meeting develop and declare a 
standard for the collection, presentation and delivery of information 
to electricity purchasers as required by the standard under section 
111(d)(21) of the Public Utility Regulatory Policies Act of 1978. Such 
standard shall provide purchasers with different access options for 
such information. Such standard shall be developed with input from the 
Secretary of Energy, the Federal Energy Regulatory Commission, the 
Administrator of the Environmental Protection Agency, States, and 
stakeholders representing, but not limited to, electric utilities, 
energy efficiency and demand response experts, environmental 
organizations and consumer organizations.
    (c) Application of Smart Grid Information Standard to Federal 
Entities and Wholesale Markets.--Within 60 days of the declaration of 
the standard under subsection (b), the Federal Energy Regulatory 
Commission shall propose a rule under which all public utilities, with 
respect to federally jurisdictional sales for resale of electricity in 
interstate commerce, and all approved regional transmission 
organizations subject to its jurisdiction, will implement those 
elements of the Smart Grid information standard developed pursuant to 
this section that the Commission determines to be relevant and to add 
value for purchasers of wholesale power or those utilizing interstate 
transmission. The Tennessee Valley Authority, Bonneville Power 
Administration, and Federal power administrations shall, within 90 days 
of the adoption of a final rule by the Commission, adopt it for their 
own sales or transmission of electricity.

SEC. 9117. STATE CONSIDERATION OF INCENTIVES FOR SMART GRID.

    (a) Consideration of Additional Standards.--Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is 
amended by adding at the end:
            ``(16) Utility investment in smart grid investments.--Each 
        electric utility shall prior to undertaking investments in non-
        advanced grid technologies demonstrate that alternative 
        investments in advanced grid technologies have been considered, 
        including from a standpoint of cost-effectiveness, where such 
        cost-effectiveness considers costs and benefits on a life-cycle 
        basis.
            ``(17) Utility cost of smart grid investments.--Each 
        electric utility shall be permitted to--
                    ``(A) recover from ratepayers the capital and 
                operating expenditures and other costs of the utility 
                for qualified smart grid system, including a reasonable 
                rate of return on the capital expenditures of the 
                utility for a qualified smart grid system, and
                    ``(B) recover in a timely manner the remaining 
                book-value costs of equipment rendered obsolete by the 
                deployment of a qualified smart grid system, based on 
                the remaining depreciable life of the obsolete 
                equipment.
            ``(18) Rate design modifications to promote energy 
        efficiency investments.--
                    ``(A) In general.--The rates allowed to be charged 
                by any electric utility shall--
                            ``(i) align utility incentives with the 
                        delivery of cost-effective energy efficiency; 
                        and
                            ``(ii) promote energy efficiency 
                        investments.
                    ``(B) Policy options.--In complying with 
                subparagraph (A), each State regulatory authority and 
                each nonregulated utility shall consider--
                            ``(i) removing the throughput incentive and 
                        other regulatory and management disincentives 
                        to energy efficiency;
                            ``(ii) providing utility incentives for the 
                        successful management of energy efficiency 
                        programs;
                            ``(iii) 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;
                            ``(iv) adopting rate designs that encourage 
                        energy efficiency for each customer class; and
                            ``(v) allowing timely recovery of energy 
                        efficiency-related costs.
            ``(19) Smart grid information.--
                    ``(A) Standard.--All electricity purchasers shall 
                be provided direct access, both in written and 
                electronic machine-readable form, to information from 
                their electricity provider as provided in subparagraph 
                (B).
                    ``(B) Information.--Information provided under this 
                section shall conform to the standardized rules issued 
                by the Commission on Grid Modernization under section 
                9116(b) of the Smart Grid Facilitation Act of 2007 and 
                shall include:
                            ``(i) Prices.--Purchasers and other 
                        interested persons shall be provided with 
                        information on:
                                    ``(I) Time-based electricity prices 
                                in the wholesale electricity market; 
                                and
                                    ``(II) Time-based electricity 
                                retail prices or rates that are 
                                available to the purchasers.
                            ``(ii) Usage.--Purchasers shall be provided 
                        with the number of electricity units, expressed 
                        in kwh, purchased by them
                            ``(iii) Intervals and projections.--Updates 
                        of information on prices and usage shall be 
                        offered on not less than a daily basis, shall 
                        include hourly price and use information, where 
                        available, and shall include a day-ahead 
                        projection of such price information to the 
                        extent available.
                            ``(iv) Sources.--Purchasers and other 
                        interested person shall be provided with 
                        written information on the sources of the power 
                        provided by the utility, to the extent it can 
                        be determined, by type of generation, including 
                        greenhouse gas emissions and criteria 
                        pollutants associated each type of generation, 
                        for intervals during which such information is 
                        available on a cost-effective basis, but not 
                        less than monthly.
                    ``(C) Access.--Purchasers shall be able to access 
                their own information at any time through the internet 
                and on other means of communication elected by that 
                utility for Smart Grid applications. Other interested 
                persons shall be able to access information not 
                specific to any purchaser through the Internet. 
                Information specific to any purchaser shall be provided 
                solely to that purchaser.''.
    (b) Reconsideration of Certain Standards.--Section 112 of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is 
amended by adding the following at the end thereof:
    ``(g) Reconsideration of Prior Time-of-Day and Communication 
Standards.--Not later than 1 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 utility shall commence a reconsideration under section 
111, or set a hearing date for reconsideration, with respect to the 
standards established by paragraphs (3) and (14) of section 111(d) to 
take into account Smart Grid technologies. Not later than 2 years after 
the date of 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 
complete the reconsideration, and shall make the determination, 
referred to in section 111 with respect to the standards established by 
paragraphs (3) and (14) of section 111(d).''.
    (c) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
        by adding the following at the end thereof:
    ``(6)(A) Not later than 1 year after the enactment of this 
paragraph, but not less than 3 years after the conclusion of any prior 
review of such standards, 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 standards established by paragraphs (16) through (18) of section 
111(d). Not later than 6 months after the promulgation of rules by the 
Commission on Grid Modernization under section 9116(b) of the Smart 
Grid Facilitation Act of 2007, 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 (19) of section 
111(d).
            ``(B) Not later than 2 years after the date of the 
        enactment of the this paragraph, but not less than 4 years 
        after the conclusion of any prior review of such standard, 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 
        paragraphs (16) through (18) of section 111(d). Not later than 
        18 months after the promulgation of rules by the Commission on 
        Grid Modernization under section 9116(b) of the Smart Grid 
        Facilitation Act of 2007 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 (19) of section 111(d).''.
            (2) Failure to comply.--Section 112(c) of such Act is 
        amended by adding the following at the end: ``In the case of 
        the standards established by paragraphs (16) through (19) of 
        section 111(d), 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 such paragraphs.''.
            (3) Prior state actions.--Section 112(d) of such Act is 
        amended by inserting ``and paragraphs (16) through (18)'' 
        before ``of section 111(d)''.

SEC. 9118. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID SYSTEMS.

    (a) DOE Study.--The Secretary of Energy shall, within 6 months 
after the Grid Modernization Commission completes its first biennial 
assessment and report under section 9113 of this Act, submit a report 
to Congress that provides a quantitative assessment and determination 
of the existing and potential impacts of the deployment of Smart Grid 
systems on improving the security of the Nation's electricity 
infrastructure and operating capability. The report shall include but 
not be limited to specific recommendations on each of the following:
            (1) How smart grid systems can help in making the Nation's 
        electricity system less vulnerable to disruptions due to 
        intentional acts against the system.
            (2) How smart grid systems can help in restoring the 
        integrity of the Nation's electricity system subsequent to 
        disruptions.
            (3) How smart grid systems can facilitate emergency 
        communications and control of the Nation's electricity system 
        during times of localized or nationwide emergency.
    (b) Consultation.--The Secretary shall consult with other Federal 
agencies in the development of the report under this section, including 
but not limited to the Secretary of Homeland Security, the Federal 
Energy Regulatory Commission and the Electric Reliability Organization 
certified by the Commission under section 215(c) of the Federal Power 
Act (16 U.S.C. 824 o) as added by section 1211 of the Energy Policy Act 
of 2005 (Public Law 109-58; 119 Stat. 941)
    (c) Funding.--The Secretary shall fund demonstration projects for 
the purpose of demonstrating the findings of the report under this 
section. Not more than $10,000,000 are authorized to be appropriated 
for such projects.

                        PART 2--DEMAND RESPONSE

SEC. 9121. ELECTRICITY SECTOR DEMAND RESPONSE.

    (a) Amendment of NECPA.--Title V of the National Energy 
Conservation Policy Act (42 U.S.C. 8201 and following) is amended by 
adding the following new part at the end thereof:

                    ``PART 5--PEAK DEMAND REDUCTION

``SEC. 571. DEFINITIONS.

    ``(a) Secretary.--As used in this part, the term `Secretary' means 
the Secretary of Energy.
    ``(b) Federal Agency.--As used in this part, the term `Federal 
agency' has the same meaning as provided by section 551 of this Act.

``SEC. 572. FEDERAL ELECTRICITY PEAK DEMAND REDUCTION STANDARD.

    ``(a) 2008 Agency Annual Energy Plan.--Each Federal agency shall 
prepare, and include in its annual report under section 548(a) of this 
Act, each of the following:
            ``(1) A determination of the agency's aggregate electricity 
        demand during the system peak hours for the utilities providing 
        electricity service to its facilities during 2006 and 2007.
            ``(2) A forecast for each year through 2018 of the 
        projected growth in such peak demand in light of projected 
        growth of facilities, staff, activities, electric intensity of 
        activities, and other relevant factors.
    ``(b) Federal Electricity Peak Demand Reduction Standard.--
            ``(1) In general.--Except as provided in paragraph (2), for 
        calendar year 2009 and each calendar year thereafter, each 
        Federal agency shall reduce its aggregate peak electricity 
        demand or make such amounts of electricity demand available in 
        the form of demand response, by the percentage amount specified 
        in the Federal Electricity Peak Demand Reduction Standard set 
        forth in the following table:


          ``Federal Electricity Peak Demand Reduction Standard
------------------------------------------------------------------------
        Calendar Year              Reduction of Peak Demand Forecast
------------------------------------------------------------------------
2009.........................   2 percent of the peak demand forecast
                                for calendar year 2009
2010.........................   4 percent of the peak demand forecast
                                for calendar year 2010
2011.........................   6 percent of the peak demand forecast
                                for calendar year 2011
2012.........................   8 percent of the peak demand forecast
                                for calendar year 2012
2013.........................   10 percent of the peak demand forecast
                                for calendar year 2013
2014.........................   12 percent of the peak demand forecast
                                for calendar year 2014
2015.........................  14 percent of the peak demand forecast
                                for calendar year 2015
2016.........................  16 percent of the peak demand forecast
                                for calendar year 2016
2017.........................  18 percent of the peak demand forecast
                                for calendar year 2017
2018 and each calendar year    20 percent of the peak demand forecast
 thereafter.                    for the applicable calendar year
------------------------------------------------------------------------

        In the table above, the term `forecast' refers to the forecast 
        set forth in the 2008 report under section 548(a) of this Act 
        as updated in accordance with subsection in (c)(1)(C).
            ``(2) Exception.--The standard under this subsection shall 
        not apply to any activity of a Federal agency relating to 
        defense or national security if compliance with the standard 
        would have an adverse mission impact on the activity, as 
        determined by the Secretary of Defense or the Secretary of 
        Homeland Security.
    ``(c) Implementation of Standard.--
            ``(1) In general.--Not later than January 1, 2010, and each 
        calendar year thereafter, each Federal agency shall include in 
        the annual energy plan of the Federal agency each of the 
        following:
                    ``(A) An assessment of whether the Federal agency 
                was in compliance with the standard under subsection 
                (b) for the preceding year.
                    ``(B) A description of--
                            ``(i) the method by which the Federal 
                        agency proposes to comply with the standard for 
                        the following calendar year; and
                            ``(ii) the factors relied on by the head of 
                        the Federal agency in determining whether to 
                        participate in demand response programs offered 
                        by an electric utility or others during the 
                        preceding calendar year; and
                            ``(iii) if the Federal agency did not 
                        participate in a demand response program 
                        offered by each utility providing electric 
                        service to facilities of the agency during the 
                        preceding calendar year, an explanation for the 
                        decision by the head of the Federal agency to 
                        not participate.
                    ``(C) An update of the agency's prior forecast for 
                the remaining years in the period until 2018.
            ``(2) Availability to public.--Not later than January 1, 
        2010, and each calendar year thereafter, the head of each 
        Federal agency shall make available to the public a description 
        of each provision included in the annual energy plan of the 
        Federal agency described in subparagraphs (A) through (C) of 
        paragraph (1).
    ``(d) Modifications to Federal Energy Management Program.--The 
Secretary shall make any modification to the Federal Energy Management 
Program of the Department of Energy that the Secretary determines to be 
necessary to--
            ``(1) incorporate the standard established under subsection 
        (b) into the Federal Energy Management Program;
            ``(2) assist any Federal agency to comply with the standard 
        established under subsection (b) through any appropriate means, 
        including conducting 1 or more demonstration projects at 
        Federal facilities.
    ``(e) Annual Report.--Not later than March 1, 2010, and annually 
thereafter, the Secretary shall submit to Congress a report that 
evaluates the success of agencies in meeting the standard established 
under subsection (b) and the success of the Federal Energy Management 
Program in assisting agencies with meeting the standard, and the costs 
and benefits of such participation.

``SEC. 573. NATIONAL ACTION PLAN FOR DEMAND RESPONSE.

    ``(a) National Assessment and Report.--The Grid Modernization 
Commission established under subtitle A of title I of the Smart Grid 
Facilitation Act of 2007 shall conduct a National Assessment of Demand 
Response. The Commission shall, within 18 months of the date on which 
the full Commission first meets, submit a Report to Congress that 
includes each of the following:
            ``(1) Estimation of nationwide demand response potential in 
        5 and 10 year horizons, including data on a State-by-State 
        basis, and a methodology for updates of such estimates on an 
        annual basis.
            ``(2) Estimation of how much of this potential can be 
        achieved within 5 and 10 years after the enactment of this Act 
        accompanied by specific policy recommendations that if 
        implemented can achieve the estimated potential. Such 
        recommendations shall include options for funding and/or 
        incentives for the development of demand response resources. 
        The Commission shall seek to take advantage of preexisting 
        research and ongoing work, and shall assume that there is no 
        duplication of effort. The Commission shall further note any 
        barriers to demand response programs that are flexible , non-
        discriminatory, and fairly compensatory for the services and 
        benefits made available and shall provide recommendations for 
        overcoming such barriers.
    ``(b) National Action Plan on Demand Response.--The Grid 
Modernization Commission shall further develop and implement a National 
Action Plan on Demand Response. Such Plan shall be completed within one 
year after the completion of the National Assessment of Demand 
Response, and shall meet each of the following objectives:
            ``(1) Provision of adequate technical assistance to States 
        to allow them to maximize the amount of demand response 
        resources that can be developed and deployed.
            ``(2) Implementation of a national communications program 
        that includes broad-based customer education and support.
            ``(3) Development and dissemination of tools, information 
        and other support mechanisms for use by customers, states, 
        utilities and demand response providers.
    ``(c) Authorization.--There are authorized to be appropriated to 
carry out this section not more than $10,000,000 for each of the fiscal 
years 2008 and 2009 and $20,000,000 for each of the fiscal years 2010 
through 2020.

``SEC. 574. REPORT ON ENVIRONMENTAL ATTRIBUTES AND IMPACTS OF DEMAND 
              RESPONSE AND SMART GRID SYSTEMS.

    ``(a) Report.--The Administrator of the Environmental Protection 
Agency shall solicit public input and, within 6 months after completion 
of the National Assessment of Demand Response required by section 573, 
submit a report to Congress that addresses each of the following:
            ``(1) A quantitative assessment and determination of the 
        existing and potential impacts of demand response and `smart 
        grid' systems on air emissions and air quality, including but 
        not limited to carbon dioxide, oxides of nitrogen and oxides of 
        sulfur.
            ``(2) An assessment and determination of the existing and 
        potential impacts of demand response and `smart grid' systems 
        on environmental parameters other than emissions and air 
        quality, including but not limited to:
                    ``(A) Land use.
                    ``(B) Water use.
                    ``(C) Use of renewable energy.
                    ``(D) Effect on energy sources other than 
                electricity.
            ``(3) A detailed plan for how Energy Efficiency and Clean 
        Energy programs administered by the Agency, including the 
        Energy Star Program, will incorporate and encourage end-use 
        efficiency, demand response and `smart grid' systems and 
        technologies, including but not limited to each of the 
        following:
                    ``(A) Requirements that appliances and other 
                equipment are capable of manually and automatically 
                receiving and acting upon pricing and control 
                information and or instructions provided by the 
                customer, a load serving entity or a third-party 
                designated by the customer.
                    ``(B) Requirements for time-based valuation of 
                kilowatt hour reductions in planning and evaluation of 
                energy efficiency programs.
                    ``(C) Education and communication, including to 
                state energy officials and state regulators, that build 
                awareness of demand response and smart grid systems and 
                technologies and their existing and potential 
                relationship to such Agency programs.
    ``(b) Funding.--There are authorized to be appropriated to carry 
out this section such sums as may be necessary for fiscal year 2010, to 
remain available until expended.''.
    (b) Table of Contents.--The table of contents for such Act is 
amended by adding the following after the items relating to part 4 of 
title V:

                    ``Part 5--Peak Demand Reduction

``Sec. 571. Definitions.
``Sec. 572. Federal Electricity Peak Demand Reduction Standard.
``Sec. 573. National action plan for demand response.
``Sec. 574. Report on environmental attributes and impacts of demand 
                            response and smart grid systems.''.

                      Subtitle C--Loan Guarantees

SEC. 9201. AMOUNT OF LOANS GUARANTEED.

    Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is 
amended--
            (1) by amending subsection (c) to read as follows:
    ``(c) Amount.--
            ``(1) Percentage of project cost.--A guarantee by the 
        Secretary shall not exceed an amount equal to 80 percent of the 
        project cost of the facility that is the subject of the 
        guarantee, as estimated at the time at which the guarantee is 
        issued, and shall be no less than the minimum amount determined 
        by the Secretary to be likely to attract nonguaranteed 
        investment adequate to capitalize the project.
            ``(2) Percentage of loan.--Subject to paragraph (1), the 
        Secretary may guarantee up to 100 percent of any loan or other 
        debt obligation of the borrower to fund an eligible project, 
        and may not issue a rule or regulation establishing a lower 
        percentage limit.''; and
            (2) by adding at the end the following new subsection:
    ``(k) Wages.--No loan guarantee shall be made under this title 
unless the borrower has provided to the Secretary reasonable assurances 
that all laborers and mechanics employed by contractors or 
subcontractors in the performance of construction work financed in 
whole or in part with the loan will be paid wages at rates not less 
than those prevailing on similar work in the locality as determined by 
the Secretary of Labor in accordance with subchapter IV of chapter 31 
of title 40, United States Code (commonly referred to as the Davis-
Bacon Act).''.

SEC. 9202. EXCLUSION OF CATEGORIES.

    Section 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) is 
amended by adding at the end the following new subsection:
    ``(c) Exclusion of Categories.--No appropriation authorized 
pursuant to this section may exclude any category of eligible project 
described in section 1703.''.

Subtitle D--Renewable Fuel Infrastructure and International Cooperation

                 PART 1--RENEWABLE FUEL INFRASTRUCTURE

SEC. 9301. RENEWABLE FUEL INFRASTRUCTURE DEVELOPMENT.

    (a) Definition.--For purposes of this subtitle--
            (1) the term ``renewable fuel'' means E85 biofuel, or B20;
            (2) the term ``biofuel'' means fuel produced entirely from 
        biological material and determined by the Department of Energy 
        and the Environmental Protection Agency to be commercially 
        viable;
            (3) the term ``B20'' means a mixture of biodiesel and 
        diesel fuel meeting the standard established by the American 
        Society for Testing and Materials or under section 211(u) of 
        the Clean Air Act for fuel containing 20 percent biodiesel;
            (4) the term ``E85'' means a fuel blend containing 85 
        percent denatured ethanol and 15 percent gasoline by volume;
            (5) the term ``flexible-fuel vehicle'' means any motor 
        vehicle warranted by the manufacturer of the vehicle as capable 
        of operating on gasoline or diesel fuel and on--
                    (A) E85; or
                    (B) B20; and
            (6) the term ``motor vehicle'' means, as defined in 
        regulations promulgated by the Administrator of the 
        Environmental Protection Agency that are in effect on the date 
        of enactment of this Act--
                    (A) a light-duty truck;
                    (B) a light-duty vehicle; or
                    (C) medium-duty passenger vehicle,
        that is designed to be propelled by gasoline or diesel fuel.
    (b) Infrastructure Development Grants.--The Secretary of Energy 
shall establish a program for making grants for providing assistance to 
retail and wholesale motor fuel dealers or other entities for the 
installation, replacement, or conversion of motor fuel storage and 
dispensing infrastructure to be used exclusively to store and dispense 
renewable fuel. Such infrastructure may include equipment used in the 
blending, distribution, and transport of such fuels.
    (c) Retail Technical and Marketing Assistance.--The Secretary of 
Energy shall enter into contracts with entities with demonstrated 
experience in assisting retail fueling stations in installing refueling 
systems and marketing renewable fuels nationally, for the provision of 
technical and marketing assistance to recipients of grants under this 
section. Such assistance shall include--
            (1) technical advice for compliance with applicable Federal 
        and State environmental requirements;
            (2) help in identifying supply sources and securing long-
        term contracts; and
            (3) provision of public outreach, education, and labeling 
        materials.
    (d) Allocation.--The Secretary of Energy may reserve funds 
appropriated for carrying out this section to support renewable fuels 
infrastructure development projects with a cost of greater than 
$1,000,000, that are of national significance. The Secretary shall 
reserve funds appropriated for the renewable fuels infrastructure 
development grant program for technical and marketing assistance 
described in subsection (c).
    (e) Selection Criteria.--Not later than 12 months after the date of 
enactment of this Act, the Secretary shall establish criteria for 
evaluating applications for grants under this section that will 
maximize the availability and use of renewable fuel, and that will 
ensure that renewable fuel is available across the country. Such 
criteria shall provide for--
            (1) consideration of the public demand for each renewable 
        fuel in a particular geographic area based on State 
        registration records showing the number of flexible-fuel 
        vehicles;
            (2) consideration of the opportunity to create or expand 
        corridors of renewable fuel stations along interstate or State 
        highways;
            (3) consideration of the experience of each applicant with 
        previous, similar projects;
            (4) consideration of population, number of flexible-fuel 
        vehicles, number of retail fuel outlets, and saturation of 
        flexible-fuel vehicles; and
            (5) priority consideration to applications that--
                    (A) are most likely to maximize displacement of 
                petroleum consumption, measured as a total quantity and 
                a percentage;
                    (B) are best able to incorporate existing 
                infrastructure while maximizing, to the extent 
                practicable, the use of renewable fuels; and
                    (C) demonstrate the greatest commitment on the part 
                of the applicant to ensure funding for the proposed 
                project and the greatest likelihood that the project 
                will be maintained or expanded after Federal assistance 
                under this section is completed.
    (f) Combined Applications.--States and local government entities 
and nonprofit entities may apply for assistance under this section on 
behalf of a group of retailers within a certain geographic area, or to 
carry out regional or multistate deployment projects. Any such 
application shall certify the availability and details of a program to 
match the Federal grant as required under subsection (g) and list the 
retail locations that would receive the funds.
    (g) Limitations.--Assistance provided under this section shall not 
exceed--
            (1) 33 percent of the estimated cost of the installation, 
        replacement, or conversion of motor fuel storage and dispensing 
        infrastructure; or
            (2) $180,000 for a combination of equipment at any one 
        retail outlet location.
    (h) Operation of Renewable Fuel Stations.--The Secretary shall 
establish rules that set forth requirements for grant recipients under 
this section that include providing to the public the renewable fuel, 
establishing a marketing plan that informs consumers of the price and 
availability of the renewable fuel, clearly labeling the dispensers and 
related equipment, and providing periodic reports on the status of the 
renewable fuel sales, the type and amount of the renewable fuel 
dispensed at each location, and the average price of such fuel.
    (i) Notification Requirements.--Not later than the date on which 
each renewable fuel station begins to offer renewable fuel to the 
public, the grant recipient that used grant funds to construct or 
upgrade such station shall notify the Secretary of Energy of such 
opening. The Secretary of Energy shall add each new renewable fuel 
station to the renewable fuel station locator on its Website when it 
receives notification under this subsection.
    (j) Ineligibility.--No person may receive assistance under this 
section and receive a credit under section 30C of the Internal Revenue 
Code of 1986.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$200,000,000 for each of the fiscal years 2008 through 2014.
    (l) Restriction.--No grant shall be provided under this section to 
a large, vertically integrated oil company.

SEC. 9302. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS RELATED TO 
              RENEWABLE FUEL INFRASTRUCTURE.

    (a) In General.--Title I of the Petroleum Marketing Practices Act 
(15 U.S.C. 2801 et seq.) is amended by adding at the end the following:

``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF RENEWABLE 
              FUEL PUMPS.

    ``(a) Definition.--In this section:
            ``(1) Renewable fuel.--The term `renewable fuel' means any 
        fuel--
                    ``(A) at least 85 percent of the volume of which 
                consists of ethanol; or
                    ``(B) any mixture of biodiesel and diesel or 
                renewable diesel (as defined in regulations adopted 
                pursuant to section 211(o) of the Clean Air Act (40 
                C.F.R., Part 80)), determined without regard to any use 
                of kerosene and containing at least 20 percent 
                biodiesel or renewable diesel.
            ``(2) Franchise-related document.--The term `franchise-
        related document' means--
                    ``(A) a franchise under this Act; and
                    ``(B) any other contract or directive of a 
                franchisor relating to terms or conditions of the sale 
                of fuel by a franchisee.
    ``(b) Prohibitions.--
            ``(1) In general.--No franchise-related document entered 
        into or renewed on or after the date of enactment of this 
        section shall contain any provision allowing a franchisor to 
        restrict the franchisee or any affiliate of the franchisee 
        from--
                    ``(A) installing on the marketing premises of the 
                franchisee a renewable fuel pump or tank, except that 
                the franchisee's franchisor may restrict the 
                installation of a tank on leased marketing premises of 
                such franchisor;
                    ``(B) converting an existing tank or pump on the 
                marketing premises of the franchisee for renewable fuel 
                use, so long as such tank or pump and the piping 
                connecting them are either warranted by the 
                manufacturer or certified by a recognized standards 
                setting organization to be suitable for use with such 
                renewable fuel;
                    ``(C) advertising (including through the use of 
                signage) the sale of any renewable fuel;
                    ``(D) selling renewable fuel in any specified area 
                on the marketing premises of the franchisee (including 
                any area in which a name or logo of a franchisor or any 
                other entity appears);
                    ``(E) purchasing renewable fuel from sources other 
                than the franchisor if the franchisor does not offer 
                its own renewable fuel for sale by the franchisee;
                    ``(F) listing renewable fuel availability or 
                prices, including on service station signs, fuel 
                dispensers, or light poles; or
                    ``(G) allowing for payment of renewable fuel with a 
                credit card,
        so long as such activities described in subparagraphs (A) 
        through (G) do not constitute mislabeling, misbranding, willful 
        adulteration, or other trademark violations by the franchisee.
            ``(2) Effect of provision.--Nothing in this section shall 
        be construed to preclude a franchisor from requiring the 
        franchisee to obtain reasonable indemnification and insurance 
        policies.
    ``(c) Exception to 3-Grade Requirement.--No franchise-related 
document that requires that 3 grades of gasoline be sold by the 
applicable franchisee shall prevent the franchisee from selling an 
renewable fuel in lieu of 1, and only 1, grade of gasoline.''.
    (b) Enforcement.--Section 105 of the Petroleum Marketing Practices 
Act (15 U.S.C. 2805) is amended by striking ``102 or 103'' each place 
it appears and inserting ``102, 103, or 107''.
    (c) Conforming Amendments.--
            (1) In general.--Section 101(13) of the Petroleum Marketing 
        Practices Act (15 U.S.C. 2801(13)) is amended by aligning the 
        margin of subparagraph (C) with subparagraph (B).
            (2) Table of contents.--The table of contents of the 
        Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is 
        amended--
                    (A) by inserting after the item relating to section 
                106 the following:

``Sec. 107. Prohibition on restriction of installation of renewable 
                            fuel pumps.''; and
                    (B) by striking the item relating to section 202 
                and inserting the following:

``Sec. 202. Automotive fuel rating testing and disclosure 
                            requirements.''.

SEC. 9303. RENEWABLE FUEL DISPENSER REQUIREMENTS.

    (a) Market Penetration Reports.--The Secretary of Energy, in 
consultation with the Secretary of Transportation, shall determine and 
report to Congress annually on the market penetration for flexible-fuel 
vehicles in use within geographic regions to be established by the 
Secretary of Energy.
    (b) Dispenser Feasibility Study.--Not later than 24 months after 
the date of enactment of this Act, the Secretary of Energy, in 
consultation with the Department of Transportation, shall report to the 
Congress on the feasibility of requiring motor fuel retailers to 
install E-85 compatible dispensers and related systems at retail fuel 
facilities in regions where flexible-fuel vehicle market penetration 
has reached 15 percent of motor vehicles. In conducting such study, the 
Secretary shall consider and report on the following factors:
            (1) The commercial availability of E-85 fuel and the number 
        of competing E-85 wholesale suppliers in a given region.
            (2) The level of financial assistance provided on an annual 
        basis by the Federal Government, State governments, and 
        nonprofit entities for the installation of E-85 compatible 
        infrastructure.
            (3) The number of retailers whose retail locations are 
        unable to support more than 2 underground storage tank 
        dispensers.
            (4) The expense incurred by retailers in the installation 
        and sale of E-85 compatible dispensers and related systems and 
        any potential effects on the price of motor vehicle fuel.

SEC. 9304. PIPELINE FEASIBILITY STUDY.

    (a) In General.--The Secretary of Energy, in consultation with the 
Secretary of Transportation, shall conduct a study of the feasibility 
of the construction of dedicated ethanol pipelines.
    (b) Factors.--In conducting the study, the Secretary shall 
consider--
            (1) the quantity of ethanol production that would make 
        dedicated pipelines economically viable;
            (2) existing or potential barriers to dedicated ethanol 
        pipelines, including technical, siting, financing, and 
        regulatory barriers;
            (3) market risk (including throughput risk) and means of 
        mitigating the risk;
            (4) regulatory, financing, and siting options that would 
        mitigate risk in those areas and help ensure the construction 
        of 1 or more dedicated ethanol pipelines;
            (5) financial incentives that may be necessary for the 
        construction of dedicated ethanol pipelines, including the 
        return on equity that sponsors of the initial dedicated ethanol 
        pipelines will require to invest in the pipelines;
            (6) technical factors that may compromise the safe 
        transportation of ethanol in pipelines, identifying remedial 
        and preventative measures to ensure pipeline integrity; and
            (7) such other factors as the Secretary considers 
        appropriate.
    (c) Report.--Not later than 15 months after the date of enactment 
of this Act, the Secretary shall submit to Congress a report describing 
the results of the study conducted under this section.

SEC. 9305. STUDY OF ETHANOL-BLENDED GASOLINE WITH GREATER LEVELS OF 
              ETHANOL.

    (a) In General.--The Administrator of the Environmental Protection 
Agency, in cooperation with the Secretary of Energy and the Secretary 
of Transportation, and after providing notice and an opportunity for 
public comment, shall conduct a study of the feasibility of widespread 
utilization in the United States of ethanol blended gasoline with 
levels of ethanol greater than 10 percent.
    (b) Study.--The study under subsection (a) shall include--
            (1) a review of production and infrastructure constraints 
        on increasing the consumption of ethanol;
            (2) an evaluation of the economic, market, and energy 
        impacts of State and regional differences in ethanol blends;
            (3) an evaluation of the economic, market, and energy 
        impacts on gasoline retailers and consumers of separate and 
        distinctly labeled fuel storage facilities and dispensers;
            (4) an evaluation of the environmental impacts of mid-level 
        ethanol blends on evaporative and exhaust emissions from on-
        road, off-road and marine engines, recreational boats, 
        vehicles, and equipment;
            (5) an evaluation of the impacts of mid-level ethanol 
        blends on the operation, durability, and performance of on-
        road, off-road, and marine engines, recreational boats, 
        vehicles, and equipment; and
            (6) an evaluation of the safety impacts of mid-level 
        ethanol blends on consumers that own and operate off-road and 
        marine engines, recreational boats, vehicles, or equipment.
    (c) Report.--Not later than 24 months after the date of enactment 
of this Act, the Administrator shall submit to the Committee on Energy 
and Commerce of the House of Representatives and the Committee on 
Environment and Public Works of the Senate a report describing the 
results of the study conducted under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator such sums as may be necessary for the 
completion of the study required under this section.

SEC. 9306. STUDY OF THE ADEQUACY OF RAILROAD TRANSPORTATION OF 
              DOMESTICALLY-PRODUCED RENEWABLE FUEL.

    (a) Study.--
            (1) In general.--The Secretary of Energy, in consultation 
        with the Secretary of Transportation, shall conduct a study of 
        the adequacy of railroad transportation of domestically-
        produced renewable fuel.
            (2) Components.--In conducting the study under paragraph 
        (1), the Secretary shall consider--
                    (A) the adequacy of, and appropriate location for, 
                tracks that have sufficient capacity, and are in the 
                appropriate condition, to move the necessary quantities 
                of domestically-produced renewable fuel;
                    (B) the adequacy of the supply of railroad tank 
                cars, locomotives, and rail crews to move the necessary 
                quantities of domestically-produced renewable fuel in a 
                timely fashion;
                    (C)(i) the projected costs of moving the 
                domestically-produced renewable fuel using railroad 
                transportation; and
                    (ii) the impact of the projected costs on the 
                marketability of the domestically-produced renewable 
                fuel;
                    (D) whether there is adequate railroad competition 
                to ensure--
                            (i) a fair price for the railroad 
                        transportation of domestically-produced 
                        renewable fuel; and
                            (ii) acceptable levels of service for 
                        railroad transportation of domestically-
                        produced renewable fuel;
                    (E) any rail infrastructure capital costs that the 
                railroads indicate should be paid by the producers or 
                distributors of domestically-produced renewable fuel;
                    (F) whether Federal agencies have adequate legal 
                authority to ensure a fair and reasonable 
                transportation price and acceptable levels of service 
                in cases in which the domestically-produced renewable 
                fuel source does not have access to competitive rail 
                service;
                    (G) whether Federal agencies have adequate legal 
                authority to address railroad service problems that may 
                be resulting in inadequate supplies of domestically-
                produced renewable fuel in any area of the United 
                States; and
                    (H) any recommendations for any additional legal 
                authorities for Federal agencies to ensure the reliable 
                railroad transportation of adequate supplies of 
                domestically-produced renewable fuel at reasonable 
                prices.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report that describes the 
results of the study conducted under subsection (a).

SEC. 9307. STANDARD SPECIFICATIONS FOR BIODIESEL.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
redesignating subsection (s) as subsection (t), redesignating 
subsection (r) (relating to conversion assistance for cellulosic 
biomass, waste-derived ethanol, approved renewable fuels) as subsection 
(s) and by adding the following new subsection at the end thereof:
    ``(u) Standard Specifications for Biodiesel.--Unless the American 
Society for Testing and Materials has adopted a standard for diesel 
fuel containing 20 percent biodiesel, not later than 1 year after the 
date of enactment of this subsection, the Administrator shall initiate 
a rulemaking establishing a series of uniform per gallon fuel standards 
for categories of fuels that contain biodiesel, including one standard 
for fuel containing 20 percent biodiesel, and designate an 
identification number for fuel meeting each standard in each such 
category so that vehicle manufacturers are able to design engines to 
use fuel meeting one or more of such standards. The Administrator shall 
finalize the standards under this subsection 18 months after the date 
of the enactment of this subsection.''.

SEC. 9308. GRANTS FOR CELLULOSIC ETHANOL PRODUCTION.

    Subsection (s) of section 211 of the Clean Air Act (as added by 
section 1512 of the Energy Policy Act of 2005) (and as redesignated by 
section 9307 of this Act), relating to conversion assistance for 
cellulosic biomass, waste-derived ethanol, and approved renewable 
fuels, is amended as follows:
            (1) By adding the following new subparagraphs at the end of 
        paragraph (3):
                    ``(D) $500,000,000 for fiscal year 2009.
                    ``(E) $500,000,000 for fiscal year 2010.''.
            (2) By adding the following new paragraph at the end 
        thereof:
            ``(5) Criteria.--In awarding grants under this section, the 
        Secretary shall give priority to applications that promote 
        feedstock diversity and the geographic dispersion of production 
        facilities.''.

SEC. 9309. CONSUMER EDUCATION CAMPAIGN RELATING TO FLEXIBLE-FUEL 
              VEHICLES.

    The Secretary of Transportation, in consultation with the Secretary 
of Energy, shall carry out an education program to inform consumers 
about which motor vehicles are flexible-fuel vehicles and how to 
exercise their opportunity to choose E85 or B20. As part of such 
program, the Secretary of Transportation may coordinate with motor 
vehicle manufacturers to notify owners of flexible-fuel vehicles of 
locations where E85 and B20 are sold in their area.

SEC. 9310. REVIEW OF NEW RENEWABLE FUELS OR NEW RENEWABLE FUEL 
              ADDITIVES.

    Notwithstanding any other provision of law, a waiver under section 
211(f)(4) of the Clean Air Act for any renewable fuel or renewable fuel 
additive shall not be considered granted unless the Administrator of 
the Environment Protection Agency, following a public notice and 
comment period, takes final action granting the application for a 
waiver based on an application of the section 211(f)(4) standards and 
criteria with respect to emissions control devices or systems and 
vehicle emissions standards to on-road and non-road engines and 
vehicles. The Administrator shall take final action on an application 
for a waiver no later than 270 days after the Administrator receives 
the application.

SEC. 9311. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``, flexible-fuel,'' after 
                ``production of efficient hybrid''; and
                    (B) by adding at the end the following: ``Priority 
                shall be given to the refurbishment or retooling of 
                manufacturing facilities that have recently ceased 
                operation or will cease operation in the near 
                future.''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Coordination With State and Local Programs.--The Secretary 
may coordinate implementation of this section with State and local 
programs designed to accomplish similar goals, including the retention 
and retraining of skilled workers from the such manufacturing 
facilities, including by establishing matching grant arrangements.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.''.

SEC. 9312. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.

    There are authorized to be appropriated to the Secretary of Energy 
$50,000,000 for fiscal year 2008, to remain available until expended, 
for cellulosic ethanol and biofuels research and development grants to 
10 entities from among 1890 land grant colleges, Historically Black 
Colleges or Universities, Tribal serving institutions, or Hispanic 
serving institutions, selected by the Secretary of Energy to receive a 
grant under this section through a peer-reviewed competitive process. 
The selected entities shall then collaborate with one of the Department 
of Energy's Office of Science Bioenergy Research Centers.

SEC. 9313. FEDERAL FLEET FUELING CENTERS.

    (a) In General.--Not later than January 1, 2010, the head of each 
Federal agency shall install at least 1 renewable fuel pump at each 
Federal fleet fueling center in the United States under the 
jurisdiction of the head of the Federal agency.
    (b) Report.--Not later than October 31 of the first calendar year 
beginning after the date of the enactment of this Act, and each October 
31 thereafter, the President shall submit to Congress a report that 
describes the progress toward complying with subsection (a), including 
identifying--
            (1) the number of Federal fleet fueling centers that 
        contain at least 1 renewable fuel pump; and
            (2) the number of Federal fleet fueling centers that do not 
        contain any renewable fuel pumps.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 9314. STUDY OF IMPACT OF INCREASED RENEWABLE FUEL USE.

    (a) In General.--The Secretary of Energy shall, after consultation 
with the Administrator of the Environmental Protection Agency, the 
Administrator of the Energy Information Administration, and the 
Secretary of Agriculture, conduct a study to assess the impact of 
increased use of renewable fuels on the United States economy. The 
Secretary shall enter into an arrangement with the National Academy of 
Sciences to provide peer review of the study.
    (b) Study Elements.--The study shall analyze, in terms of renewable 
fuels, the following:
            (1) The impact of the use of renewable fuels on the energy 
        security of the United States.
            (2) The impact of the use of renewable fuels on public 
        health and the environment, including air and water quality.
            (3) The impact of renewable fuels on the infrastructure of 
        the United States, including the deliverability of materials, 
        goods, and products other than alternative fuels.
            (4) The impact of the use of renewable fuels on job 
        creation, the price and supply of agricultural commodities, and 
        rural economic development.
    (c) Participation.--In conducting the study under this section, the 
Secretary and other agencies shall seek the participation, and consider 
the input, of the following:
            (1) Producers of feed grains.
            (2) Producers of livestock, poultry, and pork products.
            (3) Producers of energy.
            (4) Individuals and entities interested in issues relating 
        to conservation, the environment, and nutrition, and users of 
        renewable fuels.
    (d) Report.--The Secretary shall submit a report to the Congress 
containing the initial results of the study under this section not 
later than 2 years after enactment of this Act and subsequently 
supplement and update such report every 3 years thereafter.

SEC. 9315. GRANTS FOR RENEWABLE FUEL PRODUCTION RESEARCH AND 
              DEVELOPMENT IN CERTAIN STATES.

    (a) In General.--The Secretary shall provide grants to eligible 
entities to conduct research into, and develop and implement, renewable 
fuel production technologies in States with low rates of ethanol 
production, including low rates of production of cellulosic biomass 
ethanol, as determined by the Secretary.
    (b) Eligibility.--To be eligible to receive a grant under the 
section, an entity shall--
            (1)(A) be an institution of higher education (as defined in 
        section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)) 
        located in a State described in subsection (a);
            (B) be an institution--
                    (i) referred to in section 532 of the Equity in 
                Educational Land-Grant Status Act of 1994 (Public Law 
                103-382; 7 U.S.C. 301 note);
                    (ii) that is eligible for a grant under the 
                Tribally Controlled College or University Assistance 
                Act of 1978 (25 U.S.C. 1801 et seq.), including Dine 
                College; or
                    (iii) that is eligible for a grant under the Navajo 
                Community College Act (25 U.S.C. 640a et seq.); or
            (C) be a consortium of such institutions of higher 
        education, industry, State agencies, Indian tribal agencies, or 
        local government agencies located in the State; and
            (2) have proven experience and capabilities with relevant 
        technologies.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2008 through 2010.

SEC. 9316. STUDY OF EFFECT OF OIL PRICES.

    The Secretary of Energy shall conduct a study to review the 
anticipated effects on renewable fuels production if oil were priced no 
lower than $40 per barrel. The Secretary shall report the findings of 
such study to Congress by December 31, 2008.

SEC. 9317. BIODIESEL AS ALTERNATIVE FUEL FOR CAFE PURPOSES.

    Section 32901(a) of title 49, United States Code, is amended--
            (1) in paragraph (1), by redesignating subparagraphs (J) 
        and (K) as subparagraphs (K) and (L), respectively, and 
        inserting after subparagraph (I) the following:
                    ``(J) B20 biodiesel blend;''; and
            (2) by redesignating paragraphs (7) through (16) as 
        paragraphs (9) through (18), respectively, and insert after 
        paragraph (6) the following:
            ``(7) `biodiesel' means the monoalkyl esters of long chain 
        fatty acids derived from plant or animal matter which meet--
                    ``(A) the registration requirements for fuels and 
                fuel additives established by the Environmental 
                Protection Agency under section 211 of the Clean Air 
                Act (42 U.S.C. 7545); and
                    ``(B) the requirements of the American Society of 
                Testing and Materials D6751.
            ``(8) `B20 biodiesel blend' means a mixture of biodiesel 
        and diesel fuel approximately 20 percent of the content of 
        which is biodiesel, and commonly known as `B20'.''.

            PART 2--UNITED STATES-ISRAEL ENERGY COOPERATION

SEC. 9321. SHORT TITLE.

    This part may be cited as the ``United States-Israel Energy 
Cooperation Act''.

SEC. 9322. FINDINGS.

    Congress finds that--
            (1) it is in the highest national security interests of the 
        United States to ensure secure access to reliable energy 
        sources;
            (2) the United States relies heavily on the foreign supply 
        of crude oil to meet the energy needs of the United States, 
        currently importing 58 percent of the total oil requirements of 
        the United States, of which 45 percent comes from member states 
        of the Organization of Petroleum Exporting Countries (OPEC);
            (3) revenues from the sale of oil by some of these 
        countries directly or indirectly provide funding for terrorism 
        and propaganda hostile to the values of the United States and 
        the West;
            (4) in the past, these countries have manipulated the 
        dependence of the United States on the oil supplies of these 
        countries to exert undue influence on United States policy, as 
        during the embargo of OPEC during 1973 on the sale of oil to 
        the United States, which became a major factor in the ensuing 
        recession;
            (5) research by the Energy Information Administration of 
        the Department of Energy has shown that the dependence of the 
        United States on foreign oil will increase by 33 percent over 
        the next 20 years;
            (6) a rise in the price of imported oil sufficient to 
        increase gasoline prices by 10 cents per gallon at the pump 
        would result in an additional outflow of $18,000,000,000 from 
        the United States to oil-exporting nations;
            (7) for economic and national security reasons, the United 
        States should reduce, as soon as practicable, the dependence of 
        the United States on nations that do not share the interests 
        and values of the United States;
            (8) the State of Israel has been a steadfast ally and a 
        close friend of the United States since the creation of Israel 
        in 1948;
            (9) like the United States, Israel is a democracy that 
        holds civil rights and liberties in the highest regard and is a 
        proponent of the democratic values of peace, freedom, and 
        justice;
            (10) cooperation between the United States and Israel on 
        such projects as the development of the Arrow Missile has 
        resulted in mutual benefits to United States and Israeli 
        security;
            (11) the special relationship between Israel and the United 
        States has been and continues to be manifested in a variety of 
        jointly-funded cooperative programs in the field of scientific 
        research and development, such as--
                    (A) the United States-Israel Binational Science 
                Foundation (BSF);
                    (B) the Israel-United States Binational 
                Agricultural Research and Development Fund (BARD); and
                    (C) the Israel-United States Binational Industrial 
                Research and Development (BIRD) Foundation;
            (12) these programs, supported by the matching 
        contributions from the Government of Israel and the Government 
        of the United States and directed by key scientists and 
        academics from both countries, have made possible many 
        scientific breakthroughs in the fields of life sciences, 
        medicine, bioengineering, agriculture, biotechnology, 
        communications, and others;
            (13) on February 1, 1996, United States Secretary of Energy 
        Hazel R. O'Leary and Israeli Minister of Energy and 
        Infrastructure Gonen Segev signed the Agreement Between the 
        Department of Energy of the United States of America and the 
        Ministry of Energy and Infrastructure of Israel Concerning 
        Energy Cooperation, to establish a framework for collaboration 
        between the United States and Israel in energy research and 
        development activities;
            (14) the United States and Israeli governments should 
        promote cooperation in a broad range of projects designed to 
        enhance supplies of nonpetroleum energy for both countries, and 
        to provide for cutting edge research in each country;
            (15) Israeli scientists and researchers have long been at 
        the forefront of research and development in the field of 
        alternative renewable energy sources;
            (16) many of the top corporations of the world have 
        recognized the technological and scientific expertise of Israel 
        by locating important research and development facilities in 
        Israel;
            (17) among the technological breakthroughs made by Israeli 
        scientists and researchers in the field of alternative, 
        renewable energy sources are--
                    (A) the development of a cathode that uses 
                hexavalent iron salts that accept 3 electrons per ion 
                and enable rechargeable batteries to provide 3 times as 
                much electricity as existing rechargeable batteries;
                    (B) the development of a technique that vastly 
                increases the efficiency of using solar energy to 
                generate hydrogen for use in energy cells; and
                    (C) the development of a novel membrane used in new 
                and powerful direct-oxidant fuel cells that is capable 
                of competing favorably with hydrogen fuel cells and 
                traditional internal combustion engines; and
            (18) cooperation between the United States and Israel in 
        the field of research and development of alternative renewable 
        energy sources would be in the interests of both countries, and 
        both countries stand to gain much from such cooperation.

SEC. 9323. GRANT PROGRAM.

    (a) Authority.--Pursuant to the responsibilities described in 
section 102(10), (14), and (17) of the Department of Energy 
Organization Act (42 U.S.C. 7112(10), (14), and (17)) and section 
103(9) of the Energy Reorganization Act of 1974 (42 U.S.C. 5813(9)), 
the Secretary, in consultation with the BIRD or BSF, shall award grants 
to eligible entities.
    (b) Application.--
            (1) Submission of applications.--To receive a grant under 
        this section, an eligible entity shall submit an application to 
        the Secretary containing such information and assurances as the 
        Secretary, in consultation with the BIRD or BSF, may require.
            (2) Selection of eligible entities.--The Secretary, in 
        consultation with the Directors of the BIRD and BSF, may review 
        any application submitted by any eligible entity and select any 
        eligible entity meeting criteria established by the Secretary, 
        in consultation with the Advisory Board, for a grant under this 
        section.
    (c) Amount of Grant.--The amount of each grant awarded for a fiscal 
year under this section shall be determined by the Secretary, in 
consultation with the BIRD or BSF.
    (d) Recoupment.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish procedures 
        and criteria for recoupment in connection with any eligible 
        project carried out by an eligible entity that receives a grant 
        under this section, which has led to the development of a 
        product or process which is marketed or used.
            (2) Amount required.--
                    (A) Except as provided in subparagraph (B), such 
                recoupment shall be required as a condition for award 
                and be proportional to the Federal share of the costs 
                of such project, and shall be derived from the proceeds 
                of royalties or licensing fees received in connection 
                with such product or process.
                    (B) In the case where a product or process is used 
                by the recipient of a grant under this section for the 
                production and sale of its own products or processes, 
                the recoupment shall consist of a payment equivalent to 
                the payment which would be made under subparagraph (A).
            (3) Waiver.--The Secretary may at any time waive or defer 
        all or some of the recoupment requirements of this subsection 
        as necessary, depending on--
                    (A) the commercial competitiveness of the entity or 
                entities developing or using the product or process;
                    (B) the profitability of the project; and
                    (C) the commercial viability of the product or 
                process utilized.
    (e) Private Funds.--The Secretary may accept contributions of funds 
from private sources to carry out this part.
    (f) Office of Energy Efficiency and Renewable Energy.--The 
Secretary shall carry out this section through the existing programs at 
the Office of Energy Efficiency and Renewable Energy.
    (g) Report.--Not later than 180 days after receiving a grant under 
this section, each recipient shall submit a report to the Secretary--
            (1) documenting how the recipient used the grant funds; and
            (2) evaluating the level of success of each project funded 
        by the grant.

SEC. 9324. INTERNATIONAL ENERGY ADVISORY BOARD.

    (a) Establishment.--There is established in the Department of 
Energy an International Energy Advisory Board.
    (b) Duties.--The Advisory Board shall advise the Secretary on--
            (1) criteria for the recipients of grants awarded under 
        section 9323(a);
            (2) the total amount of grant money to be awarded to all 
        grantees selected by the Secretary, in consultation with the 
        BIRD; and
            (3) the total amount of grant money to be awarded to all 
        grantees selected by the Secretary, in consultation with the 
        BSF, for each fiscal year.
    (c) Membership.--
            (1) Composition.--The Advisory Board shall be composed of--
                    (A) 1 member appointed by the Secretary of 
                Commerce;
                    (B) 1 member appointed by the Secretary of Energy; 
                and
                    (C) 2 members who shall be Israeli citizens, 
                appointed by the Secretary of Energy after consultation 
                with appropriate officials in the Israeli Government.
            (2) Deadline for appointments.--The initial appointments 
        under paragraph (1) shall be made not later than 60 days after 
        the date of enactment of this Act.
            (3) Term.--Each member of the Advisory Board shall be 
        appointed for a term of 4 years.
            (4) Vacancies.--A vacancy on the Advisory Board shall be 
        filled in the manner in which the original appointment was 
        made.
            (5) Basic pay.--
                    (A) Compensation.--A member of the Advisory Board 
                shall serve without pay.
                    (B) Travel expenses.--Each member of the Advisory 
                Board shall receive travel expenses, including per diem 
                in lieu of subsistence, in accordance with applicable 
                provisions of subchapter I of chapter 57 of title 5, 
                United States Code.
            (6) Quorum.--Three members of the Advisory Board shall 
        constitute a quorum.
            (7) Chairperson.--The Chairperson of the Advisory Board 
        shall be designated by the Secretary of Energy at the time of 
        the appointment.
            (8) Meetings.--The Advisory Board shall meet at least once 
        annually at the call of the Chairperson.
    (d) Termination.--Section 14(a)(2)(B) of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Advisory Board.

SEC. 9325. DEFINITIONS.

    In this part:
            (1) Advisory board.--The term ``Advisory Board'' means the 
        International Energy Advisory Board established by section 
        9324(a).
            (2) BIRD.--The term ``BIRD'' means the Israel-United States 
        Binational Industrial Research and Development Foundation.
            (3) BSF.--The term ``BSF'' means the United States-Israel 
        Binational Science Foundation.
            (4) Eligible entity.--The term ``eligible entity'' means a 
        joint venture comprised of both Israeli and United States 
        private business entities or a joint venture comprised of both 
        Israeli academic persons (who reside and work in Israel) and 
        United States academic persons, that--
                    (A) carries out an eligible project; and
                    (B) is selected by the Secretary, in consultation 
                with the BIRD or BSF, using the criteria established by 
                the Secretary, in consultation with the Advisory Board.
            (5) Eligible project.--The term ``eligible project'' means 
        a project to encourage cooperation between the United States 
        and Israel on research, development, or commercialization of 
        alternative energy, improved energy efficiency, or renewable 
        energy sources.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy, acting through the Assistant Secretary of Energy for 
        Energy Efficiency and Renewable Energy.

SEC. 9326. TERMINATION.

    The grant program authorized under section 9323 and the Advisory 
Board shall terminate upon the expiration of the 7-year period which 
begins on the date of the enactment of this Act.

SEC. 9327. AUTHORIZATION OF APPROPRIATIONS.

    The Secretary is authorized to expend not more than $20,000,000 to 
carry out this part for each of fiscal years 2008 through 2014 from 
funds previously authorized to the Office of Energy Efficiency and 
Renewable Energy.

SEC. 9328. CONSTITUTIONAL AUTHORITY.

    The Constitutional authority on which this part rests is the power 
of Congress to regulate commerce with foreign nations as enumerated in 
Article I, Section 8 of the United States Constitution.

      Subtitle E--Advanced Plug-In Hybrid Vehicles and Components

SEC. 9401. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.

    (a) Establishment of Program.--The Secretary of Energy shall 
establish a program to provide guarantees of loans by private 
institutions for the construction of facilities for the manufacture of 
advanced vehicle batteries and battery systems that are developed and 
produced in the United States, including advanced lithium ion batteries 
and hybrid electrical system and component manufacturers and software 
designers.
    (b) Requirements.--The Secretary may provide a loan guarantee under 
subsection (a) to an applicant if--
            (1) without a loan guarantee, credit is not available to 
        the applicant under reasonable terms or conditions sufficient 
        to finance the construction of a facility described in 
        subsection (a);
            (2) the prospective earning power of the applicant and the 
        character and value of the security pledged provide a 
        reasonable assurance of repayment of the loan to be guaranteed 
        in accordance with the terms of the loan; and
            (3) the loan bears interest at a rate determined by the 
        Secretary to be reasonable, taking into account the current 
        average yield on outstanding obligations of the United States 
        with remaining periods of maturity comparable to the maturity 
        of the loan.
    (c) Criteria.--In selecting recipients of loan guarantees from 
among applicants, the Secretary shall give preference to proposals 
that--
            (1) meet all applicable Federal and State permitting 
        requirements;
            (2) are most likely to be successful; and
            (3) are located in local markets that have the greatest 
        need for the facility.
    (d) Maturity.--A loan guaranteed under subsection (a) shall have a 
maturity of not more than 20 years.
    (e) Terms and Conditions.--The loan agreement for a loan guaranteed 
under subsection (a) shall provide that no provision of the loan 
agreement may be amended or waived without the consent of the 
Secretary.
    (f) Assurance of Repayment.--The Secretary shall require that an 
applicant for a loan guarantee under subsection (a) provide an 
assurance of repayment in the form of a performance bond, insurance, 
collateral, or other means acceptable to the Secretary in an amount 
equal to not less than 20 percent of the amount of the loan.
    (g) Guarantee Fee.--The recipient of a loan guarantee under 
subsection (a) shall pay the Secretary an amount determined by the 
Secretary to be sufficient to cover the administrative costs of the 
Secretary relating to the loan guarantee.
    (h) Full Faith and Credit.--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 Secretary 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.
    (i) Reports.--Until each guaranteed loan under this section has 
been repaid in full, the Secretary shall annually submit to Congress a 
report on the activities of the Secretary under this section.
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (k) Termination of Authority.--The authority of the Secretary to 
issue a loan guarantee under subsection (a) terminates on the date that 
is 10 years after the date of enactment of this Act.

SEC. 9402. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.

    Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``and components thereof'' after 
                ``sales of efficient hybrid and advanced diesel 
                vehicles'';
                    (B) by inserting ``and hybrid component 
                manufacturers'' after ``grants to automobile 
                manufacturers'';
                    (C) by inserting ``, plug-in electric hybrid,'' 
                after ``production of efficient hybrid'';
                    (D) by inserting ``and suppliers'' after 
                ``automobile manufacturers''; and
                    (E) by adding at the end the following: ``Priority 
                shall be given to the refurbishment or retooling of 
                manufacturing facilities that have recently ceased 
                operation or will cease operation in the near 
                future.''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Coordination With State and Local Programs.--The Secretary 
may coordinate implementation of this section with State and local 
programs designed to accomplish similar goals, including the retention 
and retraining of skilled workers from the such manufacturing 
facilities, including by establishing matching grant arrangements.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.''.

SEC. 9403. PLUG-IN HYBRID VEHICLE PROGRAM.

    (a) Plug-In Electric Drive Vehicle Program.--
            (1) Establishment.--The Secretary of Energy (in this 
        section referred to as the ``Secretary'') shall establish a 
        competitive program to provide grants on a cost-shared basis to 
        State governments, local governments, metropolitan 
        transportation authorities, air pollution control districts, 
        private or nonprofit entities or combinations thereof, to carry 
        out a project or projects to encourage the use of plug-in 
        electric drive vehicles or other emerging electric vehicle 
        technologies, as determined by the Secretary.
            (2) Administration.--The Secretary shall establish 
        requirements for applications for grants under this section, 
        including reporting of data to be summarized for dissemination 
        to the Department, other grantees, and the public, including 
        vehicle and component performance and vehicle and component 
        life cycle costs.
            (3) Selection criteria.--
                    (A) Priority.--When making awards under this 
                subsection, the Secretary shall give priority 
                consideration to applications that encourage early 
                widespread utilization of such vehicles and are likely 
                to make a significant contribution to the advancement 
                of the production of such vehicles in the United 
                States.
                    (B) Scope of programs.--When making awards under 
                this subsection, the Secretary shall ensure that the 
                programs will maximize diversity in applications, 
                manufacturers, end-uses and vehicle control systems.
            (4) Authorizations of appropriations.--There are authorized 
        to be appropriated to the Secretary to carry out the program 
        under this subsection, such sums as may be necessary.
            (5) Certain applicants.--A battery manufacturer that 
        proposes to supply to an applicant for a grant under this 
        section a battery with a capacity of greater than 1 kilowatt-
        hour for use in a plug-in electric drive vehicle shall--
                    (A) ensure that the applicant includes in the 
                application a description of the price of the battery 
                per kilowatt hour;
                    (B) on approval by the Secretary of the 
                application, publish, or permit the Secretary to 
                publish, the price described in subparagraph (A); and
                    (C) for any order received by the battery 
                manufacturer for at least 1,000 batteries, offer 
                batteries at that price.
    (b) Electric Drive Education Program.--
            (1) In general.--The Secretary shall develop a nationwide 
        electric drive transportation education program under which the 
        Secretary shall provide--
                    (A) teaching materials to secondary schools and 
                high schools; and
                    (B) assistance for programs relating to electric 
                drive system and component engineering to institutions 
                of higher education.
            (2) Electric vehicle competition.--The program established 
        under paragraph (1) shall include a plug-in hybrid electric 
        vehicle competition for institutions of higher education, which 
        shall be known as the ``Dr. Andrew Frank Plug-In Hybrid 
        Electric Vehicle Competition''.
            (3) Engineers.--In carrying out the program established 
        under paragraph (1), the Secretary shall provide financial 
        assistance to institutions of higher education to create new, 
        or support existing, degree programs to ensure the availability 
        of trained electrical and mechanical engineers with the skills 
        necessary for the advancement of--
                    (A) plug-in electric drive vehicles; and
                    (B) other forms of electric drive vehicles.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary to carry out this 
        subsection such sums as may be necessary.

SEC. 9404. PLUG-IN HYBRID DEMONSTRATION VEHICLES.

    (a) In General.--The Secretary of Energy shall establish a program 
to make grants to owners of domestic motor vehicle manufacturing or 
production facilities for the production of plug-in hybrid electric 
motors or conversion modules to be used as electricity storage capacity 
for utilities.
    (b) Programs.--The Secretary of Energy shall establish programs to 
determine how to best integrate plug-in hybrid vehicles into the 
electric power grid and into the overall electricity infrastructure. 
These programs shall be conducted in 5 separate regions across the 
United States at the discretion of the Secretary.
    (c) Pilot Programs.--The Secretary shall establish during the first 
6 months of 2008, with other governmental entities, no less than 5 
separate pilot programs to convert at least 1000 vehicles in each 
program to plug-hybrid electric vehicles.
    (d) Federal Contribution.--The Department of Energy shall 
contribute up to 50 percent of the cost of conversion modules.
    (e) Installation.--Installations of electricity storage devices 
shall be undertaken by trained and certified mechanics.
    (f) Monitoring.--The Secretary of Energy shall require the 
monitoring of reliability, efficiency, breakeven costs, and customer 
satisfaction for a period of 3 years.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.

SEC. 9405. INCENTIVE FOR FEDERAL AND STATE FLEETS FOR MEDIUM AND HEAVY 
              DUTY HYBRIDS.

    Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is 
amended--
            (1) in paragraph (3), by striking ``or a dual fueled 
        vehicle'' and inserting ``, a dual fueled vehicle, or a medium 
        or heavy duty vehicle that is a hybrid vehicle'';
            (2) by redesignating paragraphs (11), (12), (13), and (14) 
        as paragraphs (12), (14), (15), and (16), respectively;
            (3) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) the term `hybrid vehicle' means a vehicle powered 
        both by a diesel or gasoline engine and an electric motor or 
        hydraulic energy storage device that is recharged as the 
        vehicle operates;''; and
            (4) by inserting after paragraph (12) (as so redesignated 
        by paragraph (2) of this section) the following new paragraph:
            ``(13) the term `medium or heavy duty vehicle' means a 
        vehicle that--
                    ``(A) in the case of a medium duty vehicle, has a 
                gross vehicle weight rating of more than 8,500 pounds 
                but not more than 14,000 pounds; and
                    ``(B) in the case of a heavy duty vehicle, has a 
                gross vehicle weight rating of more than 14,000 
                pounds;''.

SEC. 9406. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
amended--
            (1) by striking ``The Secretary'' in subsection (a) and 
        inserting ``(1) The Secretary''; and
            (2) by adding at the end of subsection (a) the following:
    ``(2) Not later than January 31, 2009, the Secretary shall allocate 
credit in an amount to be determined by the Secretary for acquisition 
of--
            ``(A) a hybrid electric vehicle;
            ``(B) a plug-in hybrid electric vehicle;
            ``(C) a fuel cell electric vehicle;
            ``(D) a neighborhood electric vehicle; or
            ``(E) a medium-duty or heavy-duty electric, hybrid 
        electric, hybrid hydraulic, or plug-in hybrid electric 
        vehicle.''; and
            (3) by adding at the end the following:
    ``(e) Definitions.--In this section:
            ``(1) Fuel cell electric vehicle.--The term `fuel cell 
        electric vehicle' means an on-road or nonroad vehicle that uses 
        a fuel cell (as defined in section 803 of the Spark M. 
        Matsunaga Hydrogen Research, Development, and Demonstration Act 
        of 2005 (42 U.S.C. 16152).
            ``(2) Hybrid electric vehicle.--The term `hybrid electric 
        vehicle' means a new qualified hybrid motor vehicle (as defined 
        in section 30B(d)(3) of the Internal Revenue Code of 1986).
            ``(3) Medium-duty or heavy-duty electric, hybrid electric, 
        or plug-in hybrid electric vehicle.--The term `medium-duty or 
        heavy-duty electric, hybrid electric, or plug-in hybrid 
        electric vehicle' is an electric, hybrid electric, or plug-in 
        hybrid electric motor vehicle greater than 8,501 pounds gross 
        vehicle rating.
            ``(4) Neighborhood electric vehicle.--The term 
        `neighborhood electric vehicle' means a 4-wheeled on-road or 
        nonroad vehicle, with a top attainable speed in 1 mile of more 
        than 20 mph and not more than 25 mph on a paved level surface, 
        that is propelled by an electric motor and on board, 
        rechargeable energy storage system that is rechargeable using 
        an off-board source of electricity.
            ``(5) Plug-in hybrid electric vehicle.--The term `plug-in 
        hybrid electric vehicle' means a light-duty, medium-duty, or 
        heavy-duty on-road or nonroad vehicle that is propelled by any 
        combination of--
                    ``(A) an electric motor and on-board, rechargeable 
                energy storage system capable of operating the vehicle 
                in intermittent or continuous all-electric mode and 
                which is rechargeable using an off-board source of 
                electricity; and
                    ``(B) an internal combustion engine or heat engine 
                using any combustible fuel.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2008 through 2013.''.

SEC. 9407. NEAR-TERM ELECTRIC DRIVE TRANSPORTATION DEPLOYMENT PROGRAM.

    (a) Revolving Loan Program.--
            (1) In general.--The Secretary shall establish a revolving 
        loan program to provide loans to eligible entities for the 
        conduct of qualified electric transportation projects.
            (2) Criteria.--The Secretary shall establish criteria for 
        the provision of loans under this subsection.
    (b) Market Assessment and Electricity Usage Program.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency, in consultation with the Secretary and 
        private industry, shall carry out a program--
                    (A) to inventory and analyze existing electric 
                drive transportation technologies and hybrid 
                technologies and markets; and
                    (B) to identify and implement methods of removing 
                barriers for existing and emerging applications of 
                electric drive transportation technologies and hybrid 
                transportation technologies.
            (2) Electricity usage.--The Secretary, in consultation with 
        the Administrator of the Environmental Protection Agency and 
        private industry, shall carry out a program--
                    (A) to develop systems and processes--
                            (i) to enable plug-in electric vehicles to 
                        enhance the availability of emergency back-up 
                        power for consumers; and
                            (ii) to study and demonstrate the potential 
                        value to the electric grid of using the energy 
                        stored in the on-board storage systems to 
                        improve the efficiency of the grid generation 
                        system; and
                    (B) to work with utilities and other interested 
                stakeholders to study and demonstrate the implications 
                of the introduction of plug-in electric vehicles and 
                other types of electric transportation on the 
                production of electricity from renewable resources.
            (3) Off-peak electricity usage grants.--In carrying out the 
        program under paragraph (2), the Secretary shall provide grants 
        to assist eligible public and private electric utilities to 
        conduct programs or activities to encourage owners of electric 
        drive transportation technologies--
                    (A) to use off-peak electricity; or
                    (B) to have the load managed by the utility.
    (c) Definition of Qualified Electric Transportation Project.--In 
this section, the term ``qualified electric transportation project'' 
includes a project relating to--
            (1) ship-side or shore-side electrification for vessels;
            (2) truck-stop electrification;
            (3) electric truck refrigeration units;
            (4) battery-powered auxiliary power units for trucks;
            (5) electric airport ground support equipment;
            (6) electric material/cargo handling equipment;
            (7) electric or dual-mode electric freight rail;
            (8) any distribution upgrades needed to supply electricity 
        to the qualified electric transportation projects; and
            (9) any ancillary infrastructure, including panel upgrades, 
        battery chargers, in-situ transformer, and trenching.
    (d) Authorization of Appropriations.--There are authorized to carry 
this section such sums as may be necessary.

SEC. 9408. STUDYING THE BENEFITS OF PLUG-IN HYBRID ELECTRIC DRIVE 
              VEHICLES AND ELECTRIC DRIVE TRANSPORTATION.

    (a) Study.--
            (1) City cars.--Not later than 1 year after the date of 
        enactment of this section, the Secretary of Transportation in 
        consultation with the Secretary of Energy and appropriate 
        Federal agencies and interested stakeholders in the public, 
        private and non-profit sectors, shall study and report to 
        Congress on the benefits of and barriers to the widespread use 
        of a potentially new class of vehicles known as city cars with 
        performance capability that exceeds that of low speed vehicles 
        but is less than that of passenger vehicles, and which may be 
        battery electric, fuel cell electric, or plug-in hybrid 
        electric vehicles. Such study shall examine the benefits and 
        issues associated with limiting city cars to a maximum speed of 
        35 mph, 45 mph, 55 mph, or any other maximum speed, and make a 
        recommendation regarding maximum speed.
            (2) Authorization of appropriations.--Such sums as may be 
        necessary are authorized to be appropriated to carry out this 
        subsection.
    (b) Definitions.--In this section--
            (1) Nonroad vehicle.--The term ``nonroad vehicle'' has the 
        meaning given that term in section 216 of the Clean Air Act (42 
        U.S.C. 7550)), or vehicles of the same classification that are 
        fully or partially powered by an electric motor powered by a 
        fuel cell, a battery, or an off-board source of electricity.
            (2) Plug-in electric drive vehicle.--The term `` plug-in 
        electric drive vehicle'' means a means a light-duty, medium-
        duty, or heavy-duty on-road or nonroad battery electric, hybrid 
        or fuel cell vehicle that can be recharged from an external 
        electricity source for motive power.
            (3) Plug-in hybrid electric vehicle.--The term ``plug-in 
        hybrid electric vehicle'' means a light-duty, medium-duty, or 
        heavy-duty on-road or nonroad vehicle that is propelled by any 
        combination of--
                    (A) an electric motor and on-board, rechargeable 
                energy storage system capable of operating the vehicle 
                in intermittent or continuous all-electric mode and 
                which is rechargeable using an off-board source of 
                electricity; and
                    (B) an internal combustion engine or heat engine 
                using any combustible fuel.

        Subtitle F--Availability of Critical Energy Information

SEC. 9501. FINDINGS.

    The Congress finds that--
            (1) the Energy Information Administration's data is 
        critical not merely for analysis of the role of energy in our 
        economy and environment, but for the effective functioning of 
        domestic and international energy markets.
            (2) Federal and State policymakers rely on the Energy 
        Information Administration to collect and report State level 
        energy information needed for energy policymaking, compliance 
        with Federal and State mandates, and for purposes of emergency 
        energy preparedness and response;
            (3) as policymakers consider and implement policies to cut 
        greenhouse gas emissions, accurate, timely, and comparable 
        State energy information becomes even more important;
            (4) new and expanded sources of information about energy 
        demand and supply have become available and need to be 
        incorporated in the Energy Information Administration's data 
        and analysis functions;
            (5) the Energy Information Administration needs to maintain 
        and enhance its ability to collect, process, and analyze data 
        while confronting broader demands for information in greater 
        detail; and
            (6) budget and personnel constraints have forced the Energy 
        Information Administration to curtail surveys relied upon by 
        energy and financial markets and could further defer important 
        improvements in the scope and quality of resulting information.

SEC. 9502. ASSESSMENT OF RESOURCES.

    (a) 5-Year Plan.--The Administrator of the Energy Information 
Administration shall establish a 5-year plan to enhance the quality and 
scope of the data collection necessary to ensure the scope, accuracy, 
and timeliness of the information needed for efficient functioning of 
energy markets and related financial operations. Particular attention 
shall be paid to restoring data series terminated because of budget 
constraints, data on demand response, timely data series of State-level 
information, improvements in the area of oil and gas data, and the 
ability to provide data mandated by Congress promptly and completely.
    (b) Submittal to Congress.--The Administrator shall submit this 
plan to Congress detailing improvements needed to enhance the Energy 
Information Administration's ability to collect and process energy 
information in a manner consistent with the needs of energy markets.
    (c) Guidelines.--The Administrator shall--
            (1) establish guidelines to ensure the quality, 
        comparability, and scope of State energy data, including data 
        on energy production and consumption by product and sector and 
        renewable and alternative sources, required to provide a 
        comprehensive, accurate energy profile at the State level;
            (2) share company-level data collected at the State level 
        with the State involved, provided the State has agreed to 
        reasonable guidelines for its use adopted by the Administrator;
            (3) assess any existing gaps in data obtained by and 
        compiled by the Energy Information Administration; and
            (4) evaluate the most cost effective ways to address any 
        data quality and quantity issues in conjunction with State 
        officials.
The Energy Information Administration shall consult with State 
officials and the Federal Energy Regulatory Commission on a regular 
basis in establishing these guidelines and scope of State level data, 
as well as in exploring ways to address data needs and serve data uses.
    (d) Assessment of State Data Needs.--The Administrator shall 
provide an assessment of these State-level data needs to the Congress 
not later than 1 year after the date of enactment of this Act, 
detailing a plan to address the needs identified.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator for carrying out this section, in 
addition to any other authorizations--
            (1) $10,000,000 for fiscal year 2008;
            (2) $10,000,000 for fiscal year 2009;
            (3) $10,000,000 for fiscal year 2010;
            (4) $15,000,000 for fiscal year 2011;
            (5) $20,000,000 for fiscal year 2012; and
            (6) such sums as are necessary for subsequent fiscal years.

                        TITLE X--TAX PROVISIONS

SEC. 10000. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This title may be cited as the ``Renewable Energy 
and Energy Conservation Tax Act of 2007''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this title is as 
follows:

                        TITLE X--TAX PROVISIONS

Sec. 10000. Short title; amendment of 1986 Code; table of contents.
                   Subtitle A--Production Incentives

Sec. 10001. Extension and modification of renewable energy credit.
Sec. 10002. Production credit for electricity produced from marine 
                            renewables.
Sec. 10003. Extension and modification of energy credit.
Sec. 10004. New clean renewable energy bonds.
Sec. 10005. Extension and modification of special rule to implement 
                            FERC and State electric restructuring 
                            policy.
Sec. 10006. Repeal of dollar limitation and allowance against 
                            alternative minimum tax for residential 
                            solar and fuel cell property credit.
                        Subtitle B--Conservation

                         Part 1--Transportation

Sec. 10101. Credit for plug-in hybrid vehicles.
Sec. 10102. Extension and modification of alternative fuel vehicle 
                            refueling property credit.
Sec. 10103. Extension and modification of credits for biodiesel and 
                            renewable diesel.
Sec. 10104. Credit for production of cellulosic alcohol.
Sec. 10105. Extension of transportation fringe benefit to bicycle 
                            commuters.
Sec. 10106. Modification of limitation on automobile depreciation.
Sec. 10107. Restructuring of New York Liberty Zone tax credits.
                 Part 2--Other Conservation Provisions

Sec. 10111. Qualified energy conservation bonds.
Sec. 10112. Qualified residential energy efficiency assistance bonds.
Sec. 10113. Extension of energy efficient commercial buildings 
                            deduction.
Sec. 10114. Modifications of energy efficient appliance credit for 
                            appliances produced after 2007.
Sec. 10115. Five-year applicable recovery period for depreciation of 
                            qualified energy management devices.
                     Subtitle C--Revenue Provisions

               Part 1--Denial of Oil and Gas Tax Benefits

Sec. 10201. Denial of deduction for income attributable to domestic 
                            production of oil, natural gas, or primary 
                            products thereof.
Sec. 10202. 7-year amortization of geological and geophysical 
                            expenditures for certain major integrated 
                            oil companies.
Sec. 10203. Clarification of determination of foreign oil and gas 
                            extraction income.
     Part 2--Clarification of Eligibility for Certain Fuel Credits

Sec. 10211. Clarification of eligibility for renewable diesel credit.
Sec. 10212. Clarification that credits for fuel are designed to provide 
                            an incentive for United States production.
                      Subtitle D--Other Provisions

                            Part 1--Studies

Sec. 10301. Carbon audit of the tax code.
Sec. 10302. Comprehensive study of biofuels.
  Part 2--Application of Certain Labor Standards on Projects Financed 
                         Under Tax Credit Bonds

Sec. 10311. Application of certain labor standards on projects financed 
                            under tax credit bonds.

                   Subtitle A--Production Incentives

SEC. 10001. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY CREDIT.

    (a) Extension of Credit.--Each of the following provisions of 
section 45(d) (relating to qualified facilities) is amended by striking 
``January 1, 2009'' and inserting ``January 1, 2013'':
            (1) Paragraph (1).
            (2) Clauses (i) and (ii) of paragraph (2)(A).
            (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
            (4) Paragraph (4).
            (5) Paragraph (5).
            (6) Paragraph (6).
            (7) Paragraph (7).
            (8) Subparagraphs (A) and (B) of paragraph (9).
    (b) Modification of Credit Phaseout.--
            (1) Repeal of phaseout.--Subsection (b) of section 45 is 
        amended--
                    (A) by striking paragraph (1), and
                    (B) by striking ``the 8 cent amount in paragraph 
                (1),'' in paragraph (2) thereof.
            (2) Limitation based on investment in facility.--Subsection 
        (b) of section 45 is amended by inserting before paragraph (2) 
        the following new paragraph:
            ``(1) Limitation based on investment in facility.--
                    ``(A) In general.--In the case of any qualified 
                facility originally placed in service after December 
                31, 2008, the amount of the credit determined under 
                subsection (a) for any taxable year with respect to 
                electricity produced at such facility shall not exceed 
                the product of--
                            ``(i) the applicable percentage with 
                        respect to such facility, multiplied by
                            ``(ii) the eligible basis of such facility.
                    ``(B) Carryforward of unused limitation and excess 
                credit.--
                            ``(i) Unused limitation.--If the limitation 
                        imposed under subparagraph (A) with respect to 
                        any facility for any taxable year exceeds the 
                        credit determined under subsection (a) 
                        (determined without regard to this paragraph) 
                        with respect to such facility for such taxable 
                        year, the limitation imposed under subparagraph 
                        (A) with respect to such facility for the 
                        succeeding taxable year shall be increased by 
                        the amount of such excess.
                            ``(ii) Excess credit.--If the credit 
                        determined under subsection (a) (determined 
                        without regard to this paragraph) with respect 
                        to any facility for any taxable year exceeds 
                        the limitation imposed under subparagraph (A) 
                        with respect to such facility for such taxable 
                        year, the credit determined under subsection 
                        (a) with respect to such facility for the 
                        succeeding taxable year (determined before the 
                        application of subparagraph (A) for such 
                        succeeding taxable year) shall be increased by 
                        the amount of such excess. With respect to any 
                        facility, no amount may carried forward under 
                        this clause to any taxable year beginning after 
                        the 10-year period described in subsection 
                        (a)(2)(A)(ii) with respect to such facility.
                    ``(C) Applicable percentage.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `applicable 
                        percentage' means, with respect to any 
                        facility, the appropriate percentage prescribed 
                        by the Secretary for the month in which such 
                        facility is originally placed in service.
                            ``(ii) Method of prescribing percentages.--
                        The percentages prescribed by the Secretary for 
                        any month under clause (i) shall be percentages 
                        which yield over a 10-year period amounts of 
                        limitation under subparagraph (A) which have a 
                        present value equal to 35 percent of the 
                        eligible basis of the facility.
                            ``(iii) Method of discounting.--The present 
                        value under clause (ii) shall be determined--
                                    ``(I) as of the last day of the 1st 
                                year of the 10-year period referred to 
                                in clause (ii),
                                    ``(II) by using a discount rate 
                                equal to the average annual interest 
                                rate of tax-exempt obligations having a 
                                term of 10 years or more which are 
                                issued during the month preceding the 
                                month for which the percentage is being 
                                prescribed, and
                                    ``(III) by taking into account the 
                                limitation under subparagraph (A) for 
                                any year on the last day of such year.
                    ``(D) Eligible basis.--For purposes of this 
                paragraph, the term `eligible basis' means, with 
                respect to any facility, the basis of such facility 
                determined as of the time that such facility is 
                originally placed in service.
                    ``(E) Special rule for first and last year of 
                credit period.--In the case of any taxable year any 
                portion of which is not within the 10-year period 
                described in subsection (a)(2)(A)(ii) with respect to 
                any facility, the amount of the limitation under 
                subparagraph (A) with respect to such facility shall be 
                reduced by an amount which bears the same ratio to the 
                amount of such limitation (determined without regard to 
                this subparagraph) as such portion of the taxable year 
                which is not within such period bears to the entire 
                taxable year.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property 
        originally placed in service after December 31, 2008.
            (2) Repeal of credit phaseout.--The amendments made by 
        subsection (b)(1) shall apply to taxable years ending after 
        December 31, 2008.

SEC. 10002. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE 
              RENEWABLES.

    (a) In General.--Paragraph (1) of section 45(c) (relating to 
resources) is amended by striking ``and'' at the end of subparagraph 
(G), by striking the period at the end of subparagraph (H) and 
inserting ``, and'', and by adding at the end the following new 
subparagraph:
                    ``(I) marine and hydrokinetic renewable energy.''.
    (b) Marine Renewables.--Subsection (c) of section 45 is amended by 
adding at the end the following new paragraph:
            ``(10) Marine and hydrokinetic renewable energy.--
                    ``(A) In general.--The term `marine and 
                hydrokinetic renewable energy' means energy derived 
                from--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas,
                            ``(ii) free flowing water in rivers, lakes, 
                        and streams,
                            ``(iii) free flowing water in an irrigation 
                        system, canal, or other man-made channel, 
                        including projects that utilize nonmechanical 
                        structures to accelerate the flow of water for 
                        electric power production purposes, or
                            ``(iv) differentials in ocean temperature 
                        (ocean thermal energy conversion).
                    ``(B) Exceptions.--Such term shall not include any 
                energy which is derived from any source which utilizes 
                a dam, diversionary structure (except as provided in 
                subparagraph (A)(iii)), or impoundment for electric 
                power production purposes.''.
    (c) Definition of Facility.--Subsection (d) of section 45 is 
amended by adding at the end the following new paragraph:
            ``(11) Marine and hydrokinetic renewable energy 
        facilities.--In the case of a facility producing electricity 
        from marine and hydrokinetic renewable energy, the term 
        `qualified facility' means any facility owned by the taxpayer--
                    ``(A) which has a nameplate capacity rating of at 
                least 150 kilowatts, and
                    ``(B) which is originally placed in service on or 
                after the date of the enactment of this paragraph and 
                before January 1, 2013.''.
    (d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is amended 
by striking ``or (9)'' and inserting ``(9), or (11)''.
    (e) Coordination With Small Irrigation Power.--Paragraph (5) of 
section 45(d), as amended by this Act, is amended by striking ``January 
1, 2013'' and inserting ``the date of the enactment of paragraph 
(11)''.
    (f) Effective Date.--The amendments made by this section shall 
apply to electricity produced and sold after the date of the enactment 
of this Act, in taxable years ending after such date.

SEC. 10003. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

    (a) Extension of Credit.--
            (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
        (3)(A)(ii) of section 48(a) (relating to energy credit) are 
        each amended by striking ``January 1, 2009'' and inserting 
        ``January 1, 2017''.
            (2) Fuel cell property.--Subparagraph (E) of section 
        48(c)(1) (relating to qualified fuel cell property) is amended 
        by striking ``December 31, 2008'' and inserting ``December 31, 
        2016''.
    (b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified credits) is 
amended by striking ``and'' at the end of clause (iii), by striking the 
period at the end of clause (iv) and inserting ``, and'', and by adding 
at the end the following new clause:
                            ``(v) the credit determined under section 
                        46 to the extent that such credit is 
                        attributable to the energy credit determined 
                        under section 48.''.
    (c) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking ``$500'' 
and inserting ``$1,500''.
    (d) Public Electric Utility Property Taken Into Account.--
            (1) In general.--Paragraph (3) of section 48(a) is amended 
        by striking the second sentence thereof.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 48(c) is amended by 
                striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
                    (B) Paragraph (2) of section 48(c) is amended by 
                striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
    (e) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of section 
48(c) are each amended by striking ``paragraph (1)'' and inserting 
``subsection (a)''.
    (f) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Allowance against alternative minimum tax.--The 
        amendments made by subsection (b) shall apply to credits 
        determined under section 46 of the Internal Revenue Code of 
        1986 in taxable years beginning after the date of the enactment 
        of this Act and to carrybacks of such credits.
            (3) Increase in limitation for fuel cell property.--The 
        amendment made by subsection (c) shall apply to periods after 
        the date of the enactment of this Act, in taxable years ending 
        after such date, under rules similar to the rules of section 
        48(m) of the Internal Revenue Code of 1986 (as in effect on the 
        day before the date of the enactment of the Revenue 
        Reconciliation Act of 1990).
            (4)  Public electric utility property.--The amendments made 
        by subsection (d) shall apply to periods after June 20, 2007, 
        in taxable years ending after such date, under rules similar to 
        the rules of section 48(m) of the Internal Revenue Code of 1986 
        (as in effect on the day before the date of the enactment of 
        the Revenue Reconciliation Act of 1990).

SEC. 10004. NEW CLEAN RENEWABLE ENERGY BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 (relating to 
credits against tax) is amended by adding at the end the following new 
subpart:

                ``Subpart I--Qualified Tax Credit Bonds

``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.

``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a qualified tax 
credit bond on one or more credit allowance dates of the bond during 
any taxable year, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal to the sum 
of the credits determined under subsection (b) with respect to such 
dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified tax credit bond is 25 percent of the annual 
        credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified tax credit bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate is the rate which the Secretary 
        estimates will permit the issuance of qualified tax credit 
        bonds with a specified maturity or redemption date without 
        discount and without interest cost to the qualified issuer. The 
        applicable credit rate with respect to any qualified tax credit 
        bond shall be determined as of the first day on which there is 
        a binding, written contract for the sale or exchange of the 
        bond.
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Qualified Tax Credit Bond.--For purposes of this section--
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means a new clean renewable energy bond which is 
        part of an issue that meets the requirements of paragraphs (2), 
        (3), (4), (5), and (6).
            ``(2) Special rules relating to expenditures.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if, as of 
                the date of issuance, the issuer reasonably expects--
                            ``(i) 100 percent or more of the available 
                        project proceeds to be spent for 1 or more 
                        qualified purposes within the 3-year period 
                        beginning on such date of issuance, and
                            ``(ii) a binding commitment with a third 
                        party to spend at least 10 percent of such 
                        available project proceeds will be incurred 
                        within the 6-month period beginning on such 
                        date of issuance.
                    ``(B) Failure to spend required amount of bond 
                proceeds within 3 years.--
                            ``(i) In general.--To the extent that less 
                        than 100 percent of the available project 
                        proceeds of the issue are expended by the close 
                        of the expenditure period for 1 or more 
                        qualified purposes, the issuer shall redeem all 
                        of the nonqualified bonds within 90 days after 
                        the end of such period. For purposes of this 
                        paragraph, the amount of the nonqualified bonds 
                        required to be redeemed shall be determined in 
                        the same manner as under section 142.
                            ``(ii) Expenditure period.--For purposes of 
                        this subpart, the term `expenditure period' 
                        means, with respect to any issue, the 3-year 
                        period beginning on the date of issuance. Such 
                        term shall include any extension of such period 
                        under clause (iii).
                            ``(iii) Extension of period.--Upon 
                        submission of a request prior to the expiration 
                        of the expenditure period (determined without 
                        regard to any extension under this clause), the 
                        Secretary may extend such period if the issuer 
                        establishes that the failure to expend the 
                        proceeds within the original expenditure period 
                        is due to reasonable cause and the expenditures 
                        for qualified purposes will continue to proceed 
                        with due diligence.
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means a purpose 
                specified in section 54B(a)(1).
                    ``(D) Reimbursement.--For purposes of this 
                subtitle, available project proceeds of an issue shall 
                be treated as spent for a qualified purpose if such 
                proceeds are used to reimburse the issuer for amounts 
                paid for a qualified purpose after the date that the 
                Secretary makes an allocation of bond limitation with 
                respect to such issue, but only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the issuer declared its intent to 
                        reimburse such expenditure with the proceeds of 
                        a qualified tax credit bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the issuer adopts 
                        an official intent to reimburse the original 
                        expenditure with such proceeds, and
                            ``(iii) the reimbursement is made not later 
                        than 18 months after the date the original 
                        expenditure is paid.
            ``(3) Reporting.--An issue shall be treated as meeting the 
        requirements of this paragraph if the issuer of qualified tax 
        credit bonds submits reports similar to the reports required 
        under section 149(e).
            ``(4) Special rules relating to arbitrage.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if the 
                issuer satisfies the requirements of section 148 with 
                respect to the proceeds of the issue.
                    ``(B) Special rule for investments during 
                expenditure period.--An issue shall not be treated as 
                failing to meet the requirements of subparagraph (A) by 
                reason of any investment of available project proceeds 
                during the expenditure period.
                    ``(C) Special rule for reserve funds.--An issue 
                shall not be treated as failing to meet the 
                requirements of subparagraph (A) by reason of any fund 
                which is expected to be used to repay such issue if--
                            ``(i) such fund is funded at a rate not 
                        more rapid than equal annual installments,
                            ``(ii) such fund is funded in a manner that 
                        such fund will not exceed the amount necessary 
                        to repay the issue if invested at the maximum 
                        rate permitted under clause (iii), and
                            ``(iii) the yield on such fund is not 
                        greater than the discount rate determined under 
                        paragraph (5)(B) with respect to the issue.
            ``(5) Maturity limitation.--
                    ``(A) In general.--An issue shall not be treated as 
                meeting the requirements of this paragraph if the 
                maturity of any bond which is part of such issue 
                exceeds the maximum term determined by the Secretary 
                under subparagraph (B).
                    ``(B) Maximum term.--During each calendar month, 
                the Secretary shall determine the maximum term 
                permitted under this paragraph for bonds issued during 
                the following calendar month. Such maximum term shall 
                be the term which the Secretary estimates will result 
                in the present value of the obligation to repay the 
                principal on the bond being equal to 50 percent of the 
                face amount of such bond. Such present value shall be 
                determined using as a discount rate the average annual 
                interest rate of tax-exempt obligations having a term 
                of 10 years or more which are issued during the month. 
                If the term as so determined is not a multiple of a 
                whole year, such term shall be rounded to the next 
                highest whole year.
            ``(6) Prohibition on financial conflicts of interest.--An 
        issue shall be treated as meeting the requirements of this 
        paragraph if the issuer certifies that--
                    ``(A) applicable State and local law requirements 
                governing conflicts of interest are satisfied with 
                respect to such issue, and
                    ``(B) if the Secretary prescribes additional 
                conflicts of interest rules governing the appropriate 
                Members of Congress, Federal, State, and local 
                officials, and their spouses, such additional rules are 
                satisfied with respect to such issue.
    ``(e) Other Definitions.--For purposes of this subchapter--
            ``(1) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(2) Bond.--The term `bond' includes any obligation.
            ``(3) State.--The term `State' includes the District of 
        Columbia and any possession of the United States.
            ``(4) Available project proceeds.--The term `available 
        project proceeds' means--
                    ``(A) the excess of--
                            ``(i) the proceeds from the sale of an 
                        issue, over
                            ``(ii) the issuance costs financed by the 
                        issue (to the extent that such costs do not 
                        exceed 2 percent of such proceeds), and
                    ``(B) the proceeds from any investment of the 
                excess described in subparagraph (A).
    ``(f) Credit Treated as Interest.--For purposes of this subtitle, 
the credit determined under subsection (a) shall be treated as interest 
which is includible in gross income.
    ``(g) S Corporations and Partnerships.--In the case of a tax credit 
bond held by an S corporation or partnership, the allocation of the 
credit allowed by this section to the shareholders of such corporation 
or partners of such partnership shall be treated as a distribution.
    ``(h) Bonds Held by Regulated Investment Companies and Real Estate 
Investment Trusts.--If any qualified tax credit bond is held by a 
regulated investment company or a real estate investment trust, the 
credit determined under subsection (a) shall be allowed to shareholders 
of such company or beneficiaries of such trust (and any gross income 
included under subsection (f) with respect to such credit shall be 
treated as distributed to such shareholders or beneficiaries) under 
procedures prescribed by the Secretary.
    ``(i) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a qualified tax credit bond and 
        the entitlement to the credit under this section with respect 
        to such bond. In case of any such separation, the credit under 
        this section shall be allowed to the person who on the credit 
        allowance date holds the instrument evidencing the entitlement 
        to the credit and not to the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the qualified tax credit bond as if it were a stripped 
        bond and to the credit under this section as if it were a 
        stripped coupon.

``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.

    ``(a) New Clean Renewable Energy Bond.--For purposes of this 
subpart, the term `new clean renewable energy bond' means any bond 
issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for capital expenditures incurred by 
        public power providers or cooperative electric companies for 
        one or more qualified renewable energy facilities,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Reduced Credit Amount.--The annual credit determined under 
section 54A(b) with respect to any new clean renewable energy bond 
shall be 70 percent of the amount so determined without regard to this 
subsection.
    ``(c) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--The maximum aggregate face amount of 
        bonds which may be designated under subsection (a) by any 
        issuer shall not exceed the limitation amount allocated under 
        this subsection to such issuer.
            ``(2) National limitation on amount of bonds designated.--
        There is a national new clean renewable energy bond limitation 
        of $2,000,000,000 which shall be allocated by the Secretary as 
        provided in paragraph (3), except that--
                    ``(A) not more than 60 percent thereof may be 
                allocated to qualified projects of public power 
                providers, and
                    ``(B) not more than 40 percent thereof may be 
                allocated to qualified projects of cooperative electric 
                companies.
            ``(3) Method of allocation.--
                    ``(A) Allocation among public power providers.--
                After the Secretary determines the qualified projects 
                of public power providers which are appropriate for 
                receiving an allocation of the national new clean 
                renewable energy bond limitation, the Secretary shall, 
                to the maximum extent practicable, make allocations 
                among such projects in such manner that the amount 
                allocated to each such project bears the same ratio to 
                the cost of such project as the limitation under 
                subparagraph (2)(A) bears to the cost of all such 
                projects.
                    ``(B) Allocation among cooperative electric 
                companies.--The Secretary shall make allocations of the 
                amount of the national new clean renewable energy bond 
                limitation described in paragraph (2)(B) among 
                qualified projects of cooperative electric companies in 
                such manner as the Secretary determines appropriate.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means a qualified 
        facility (as determined under section 45(d) without regard to 
        paragraphs (8) and (10) thereof and to any placed in service 
        date) owned by a public power provider or a cooperative 
        electric company.
            ``(2) Public power provider.--The term `public power 
        provider' 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 the enactment of this paragraph).
            ``(3) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C).
            ``(4) Clean renewable energy bond lender.--The term `clean 
        renewable energy bond lender' means a lender which is a 
        cooperative which is owned by, or has outstanding loans to, 100 
        or more cooperative electric companies and is in existence on 
        February 1, 2002, and shall include any affiliated entity which 
        is controlled by such lender.
            ``(5) Qualified issuer.--The term `qualified issuer' means 
        a public power provider, a cooperative electric company, a 
        clean renewable energy bond lender, or a not-for-profit 
        electric utility which has received a loan or loan guarantee 
        under the Rural Electrification Act.''.
    (b) Reporting.--Subsection (d) of section 6049 (relating to returns 
regarding payments of interest) is amended by adding at the end the 
following new paragraph:
            ``(9) Reporting of credit on qualified tax credit bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54A and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54A(e)(1)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (c) Conforming Amendments.--
            (1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended 
        by striking ``subpart C'' and inserting ``subparts C and I''.
            (2) Section 1397E(c)(2) is amended by striking ``subpart 
        H'' and inserting ``subparts H and I''.
            (3) Section 6401(b)(1) is amended by striking ``and H'' and 
        inserting ``H, and I''.
            (4) The heading of subpart H of part IV of subchapter A of 
        chapter 1 is amended by striking ``Certain Bonds'' and 
        inserting ``Clean Renewable Energy Bonds''.
            (5) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by striking the item relating to subpart H 
        and inserting the following new items:

``subpart h. nonrefundable credit to holders of clean renewable energy 
                                 bonds.

              ``subpart i. qualified tax credit bonds.''.

    (d) Effective Dates.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 10005. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT 
              FERC AND STATE ELECTRIC RESTRUCTURING POLICY.

    (a) Extension for Qualified Electric Utilities.--
            (1) In general.--Paragraph (3) of section 451(i) (relating 
        to special rule for sales or dispositions to implement Federal 
        Energy Regulatory Commission or State electric restructuring 
        policy) is amended by striking ``before January 1, 2008,'' and 
        inserting ``before January 1, 2010, by a qualified electric 
        utility,''.
            (2) Qualified electric utility.--Subsection (i) of section 
        451 is amended by redesignating paragraphs (6) through (10) as 
        paragraphs (7) through (11), respectively, and by inserting 
        after paragraph (5) the following new paragraph:
            ``(6) Qualified electric utility.--For purposes of this 
        subsection, the term `qualified electric utility' means--
                    ``(A) an electric utility (as defined in section 
                3(22) of the Federal Power Act (16 U.S.C. 796(22))), 
                and
                    ``(B) any person in the same holding company system 
                (as defined in section 1262(9) of the Public Utility 
                Holding Company Act of 2005 (42 U.S.C. 16451(9))) as an 
                electric utility referred to subparagraph (A).''.
    (b) Extension of Period for Transfer of Operational Control 
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is amended by 
striking ``December 31, 2007'' and inserting ``the date which is 4 
years after the close of the taxable year in which the transaction 
occurs''.
    (c) Property Located Outside the United States Not Treated as 
Exempt Utility Property.--Paragraph (5) of section 451(i) is amended by 
adding at the end the following new subparagraph:
                    ``(C) Exception for property located outside the 
                united states.--The term `exempt utility property' 
                shall not include any property which is located outside 
                the United States.''.
    (d) Effective Dates.--
            (1) Extension.--The amendment made by subsection (a) shall 
        apply to transactions after December 31, 2007.
            (2) Transfers of operational control.--The amendment made 
        by subsection (b) shall take effect as if included in section 
        909 of the American Jobs Creation Act of 2004.
            (3) Exception for property located outside the united 
        states.--The amendment made by subsection (c) shall apply to 
        transactions after the date of the enactment of this Act.

SEC. 10006. REPEAL OF DOLLAR LIMITATION AND ALLOWANCE AGAINST 
              ALTERNATIVE MINIMUM TAX FOR RESIDENTIAL SOLAR AND FUEL 
              CELL PROPERTY CREDIT.

    (a) Repeal of Maximum Dollar Limitation.--
            (1) In general.--Subsection (b) of section 25D (relating to 
        limitations) is amended to read as follows:
    ``(b) Certification of Solar Water Heating Property.--No credit 
shall be allowed under this section for an item of property described 
in subsection (d)(1) unless such property is certified for performance 
by the non-profit Solar Rating Certification Corporation or a 
comparable entity endorsed by the government of the State in which such 
property is installed.''.
            (2) Conforming amendments.--
                    (A) Subsection (e) of section 25D is amended by 
                striking paragraph (4) and by redesignating paragraphs 
                (5) through (9) as paragraphs (4) through (8), 
                respectively.
                    (B) Paragraph (1) of section 25C(e) is amended by 
                striking ``(8), and (9)'' and inserting ``and (8) (and 
                paragraph (4) as in effect before its repeal by the 
                Renewable Energy and Energy Conservation Tax Act of 
                2007)''.
    (b) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subsection (c) of section 25D is amended 
        to read as follows:
    ``(c) Limitation Based on Amount of Tax; Carryforward of Unused 
Credit.--
            ``(1) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
            ``(2) Carryforward of unused credit.--
                    ``(A) Rule for years in which all personal credits 
                allowed against regular and alternative minimum tax.--
                In the case of a taxable year to which section 26(a)(2) 
                applies, if the credit allowable under subsection (a) 
                exceeds the limitation imposed by section 26(a)(2) for 
                such taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this section), 
                such excess shall be carried to the succeeding taxable 
                year and added to the credit allowable under subsection 
                (a) for such succeeding taxable year.
                    ``(B) Rule for other years.--In the case of a 
                taxable year to which section 26(a)(2) does not apply, 
                if the credit allowable under subsection (a) exceeds 
                the limitation imposed by paragraph (1) for such 
                taxable year, such excess shall be carried to the 
                succeeding taxable year and added to the credit 
                allowable under subsection (a) for such succeeding 
                taxable year.''.
            (2) Conforming amendments.--
                    (A) Section 23(b)(4)(B) is amended by inserting 
                ``and section 25D'' after ``this section''.
                    (B) Section 24(b)(3)(B) is amended by striking 
                ``and 25B'' and inserting ``, 25B, and 25D''.
                    (C) Section 25B(g)(2) is amended by striking 
                ``section 23'' and inserting ``sections 23 and 25D''.
                    (D) Section 26(a)(1) is amended by striking ``and 
                25B'' and inserting ``25B, and 25D''.
    (c) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        expenditures made after the date of the enactment of this Act.
            (2) Allowance against alternative minimum tax.--
                    (A) In general.--The amendments made by subsection 
                (b) shall apply to taxable years beginning after the 
                date of the enactment of this Act.
                    (B) Application of egtrra sunset.--The amendments 
                made by subparagraphs (A) and (B) of subsection (b)(2) 
                shall be subject to title IX of the Economic Growth and 
                Tax Relief Reconciliation Act of 2001 in the same 
                manner as the provisions of such Act to which such 
                amendments relate.

                        Subtitle B--Conservation

                         PART 1--TRANSPORTATION

SEC. 10101. CREDIT FOR PLUG-IN HYBRID VEHICLES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to other credits) is amended by adding at the end the 
following new section:

``SEC. 30D. PLUG-IN HYBRID VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of the credit amounts determined under subsection (b) 
with respect to each qualified plug-in hybrid vehicle placed in service 
by the taxpayer during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--
            ``(1) In general.--The amount determined under this 
        subsection with respect to any qualified plug-in hybrid vehicle 
        is the sum of the amounts determined under paragraphs (2) and 
        (3) with respect to such vehicle.
            ``(2) Base amount.--The amount determined under this 
        paragraph is $4,000.
            ``(3) Battery capacity.--In the case of vehicle which draws 
        propulsion energy from a battery with not less than 5 kilowatt 
        hours of capacity, the amount determined under this paragraph 
        is $200, plus $200 for each kilowatt hour of capacity in excess 
        of 5 kilowatt hours. The amount determined under this paragraph 
        shall not exceed $2,000.
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23 and 25D) and section 27 for the 
                        taxable year.
    ``(d) Qualified Plug-In Hybrid Vehicle.--For purposes of this 
section--
            ``(1) In general.--The term `qualified plug-in hybrid 
        vehicle' means a motor vehicle (as defined in section 
        30(c)(2))--
                    ``(A) the original use of which commences with the 
                taxpayer,
                    ``(B) which is acquired for use or lease by the 
                taxpayer and not for resale,
                    ``(C) which is made by a manufacturer,
                    ``(D) which has a gross vehicle weight rating of 
                less than 14,000 pounds,
                    ``(E) which has received a certificate of 
                conformity under the Clean Air Act and meets or exceeds 
                the Bin 5 Tier II emission standard 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,
                    ``(F) which is propelled to a significant extent by 
                an electric motor which draws electricity from a 
                battery which--
                            ``(i) has a capacity of not less than 4 
                        kilowatt hours, and
                            ``(ii) is capable of being recharged from 
                        an external source of electricity, and
                    ``(G) which either--
                            ``(i) is also propelled to a significant 
                        extent by other than an electric motor, or
                            ``(ii) has a significant onboard source of 
                        electricity which also recharges the battery 
                        referred to in subparagraph (F).
            ``(2) Exception.--The term `qualified plug-in hybrid 
        vehicle' shall not include any vehicle which is not a passenger 
        automobile or light truck if such vehicle has a gross vehicle 
        weight rating of less than 8,500 pounds.
            ``(3) Other terms.--The terms `passenger automobile', 
        `light truck', and `manufacturer' have the meanings given such 
        terms in regulations prescribed by the Administrator of the 
        Environmental Protection Agency for purposes of the 
        administration of title II of the Clean Air Act (42 U.S.C. 7521 
        et seq.).
            ``(4) Battery capacity.--The term `capacity' means, with 
        respect to any battery, the quantity of electricity which the 
        battery is capable of storing, expressed in kilowatt hours, as 
        measured from a 100 percent state of charge to a 0 percent 
        state of charge.
    ``(e) Limitation on Number of Qualified Plug-In Hybrid Vehicles 
Eligible for Credit.--
            ``(1) In general.--In the case of a qualified plug-in 
        hybrid vehicle sold during the phaseout period, only the 
        applicable percentage of the credit otherwise allowable under 
        subsection (a) shall be allowed.
            ``(2) Phaseout period.--For purposes of this subsection, 
        the phaseout period is the period beginning with the second 
        calendar quarter following the calendar quarter which includes 
        the first date on which the number of qualified plug-in hybrid 
        vehicles manufactured by the manufacturer of the vehicle 
        referred to in paragraph (1) sold for use in the United States 
        after the date of the enactment of this section, is at least 
        60,000.
            ``(3) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage is--
                    ``(A) 50 percent for the first 2 calendar quarters 
                of the phaseout period,
                    ``(B) 25 percent for the 3d and 4th calendar 
                quarters of the phaseout period, and
                    ``(C) 0 percent for each calendar quarter 
                thereafter.
            ``(4) Controlled groups.--Rules similar to the rules of 
        section 30B(f)(4) shall apply for purposes of this subsection.
    ``(f) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (c)).
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(4) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
            ``(5) Property used by tax-exempt entity; interaction with 
        air quality and motor vehicle safety standards.--Rules similar 
        to the rules of paragraphs (6) and (10) of section 30B(h) shall 
        apply for purposes of this section.''.
    (b) Plug-In Vehicles Not Treated as New Qualified Hybrid 
Vehicles.--Section 30B(d)(3) is amended by adding at the end the 
following new subparagraph:
                    ``(D) Exclusion of plug-in vehicles.--Any vehicle 
                with respect to which a credit is allowable under 
                section 30D (determined without regard to subsection 
                (c) thereof) shall not be taken into account under this 
                section.''.
    (c) Credit Made Part of General Business Credit.--Section 38(b) is 
amended--
            (1) by striking ``and'' each place it appears at the end of 
        any paragraph,
            (2) by striking ``plus'' each place it appears at the end 
        of any paragraph,
            (3) by striking the period at the end of paragraph (31) and 
        inserting ``, plus'', and
            (4) by adding at the end the following new paragraph:
            ``(32) the portion of the plug-in hybrid vehicle credit to 
        which section 30D(c)(1) applies.''.
    (d) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B), as amended by this Act, is 
        amended by striking ``and 25D'' and inserting ``25D, and 30D''.
            (B) Section 25(e)(1)(C)(ii) is amended by inserting 
        ``30D,'' after ``25D,''.
            (C) Section 25B(g)(2), as amended by this Act, is amended 
        by striking ``and 25D'' and inserting ``, 25D, and 30D''.
            (D) Section 26(a)(1), as amended by this Act, is amended by 
        striking ``and 25D'' and inserting ``25D, and 30D''.
            (E) Section 1400C(d)(2) is amended by striking ``and 25D'' 
        and inserting ``25D, and 30D''.
            (2) Section 1016(a) is amended by striking ``and'' at the 
        end of paragraph (36), by striking the period at the end of 
        paragraph (37) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(38) to the extent provided in section 30D(f)(1).''.
            (3) Section 6501(m) is amended by inserting ``30D(f)(4),'' 
        after ``30C(e)(5),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 30D. Plug-in hybrid vehicles.''.
    (e) Treatment of Alternative Motor Vehicle Credit as a Personal 
Credit.--
            (1) In general.--Paragraph (2) of section 30B(g) is amended 
        to read as follows:
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) for any taxable year (after application of paragraph (1)) 
        shall be treated as a credit allowable under subpart A for such 
        taxable year.''.
            (2) Conforming amendments.--
                    (A) Subparagraph (A) of section 30C(d)(2) is 
                amended by striking ``sections 27, 30, and 30B'' and 
                inserting ``sections 27 and 30''.
                    (B) Paragraph (3) of section 55(c) is amended by 
                striking ``30B(g)(2),''.
    (f) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2007.
            (2) Treatment of alternative motor vehicle credit as 
        personal credit.--The amendments made by subsection (e) shall 
        apply to taxable years beginning after December 31, 2006.
    (g) Application of EGTRRA Sunset.--The amendment made by subsection 
(d)(1)(A) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates.

SEC. 10102. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE 
              REFUELING PROPERTY CREDIT.

    (a) Increase in Credit Amount.--Section 30C (relating to 
alternative fuel vehicle refueling property credit) is amended--
            (1) by striking ``30 percent'' in subsection (a) and 
        inserting ``50 percent'', and
            (2) by striking ``$30,000'' in subsection (b)(1) and 
        inserting ``$50,000''.
    (b) Extension of Credit.--Paragraph (2) of section 30C(g) (relating 
to termination) is amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2010''.
    (c) Effective Date.--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.

SEC. 10103. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND 
              RENEWABLE DIESEL.

    (a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are 
each amended by striking ``December 31, 2008'' and inserting ``December 
31, 2010''.
    (b) Uniform Treatment of Diesel Produced From Biomass.--Paragraph 
(3) of section 40A(f) is amended--
            (1) by striking ``using a thermal depolymerization 
        process'', and
            (2) by striking ``or D396'' in subparagraph (B) and 
        inserting ``or other equivalent standard approved by the 
        Secretary for fuels to be used in diesel-powered highway 
        vehicles''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel produced, 
        and sold or used, after the date of the enactment of this Act.
            (2) Uniform treatment of diesel produced from biomass.--The 
        amendments made by subsection (b) shall apply to fuel produced, 
        and sold or used, after the date which is 30 days after the 
        date of the enactment of this Act.

SEC. 10104. CREDIT FOR PRODUCTION OF CELLULOSIC ALCOHOL.

    (a) In General.--Subsection (b) of section 40 is amended by 
redesignating paragraph (5) as paragraph (6) and by inserting after 
paragraph (4) the following new paragraph:
            ``(5) Cellulosic alcohol fuel producer credit.--
                    ``(A) In general.--The cellulosic alcohol fuel 
                producer credit of any cellulosic alcohol fuel producer 
                for any taxable year is 50 cents for each gallon of 
                qualified cellulosic fuel production of such producer.
                    ``(B) Qualified cellulosic fuel production.--For 
                purposes of this paragraph, the term `qualified 
                cellulosic fuel production' means any cellulosic 
                alcohol which is produced by a cellulosic alcohol fuel 
                producer, and which during the taxable year--
                            ``(i) is sold by such producer to another 
                        person--
                                    ``(I) for use by such other person 
                                in the production of a qualified 
                                mixture in such other person's trade or 
                                business (other than casual off-farm 
                                production),
                                    ``(II) for use by such other person 
                                as a fuel in a trade or business, or
                                    ``(III) who sells such alcohol at 
                                retail to another person and places 
                                such alcohol in the fuel tank of such 
                                other person, or
                            ``(ii) is used or sold by such producer for 
                        any purpose described in clause (i).
                    ``(C) Cellulosic alcohol.--For purposes of this 
                paragraph, the term `cellulosic alcohol' means any 
                alcohol which--
                            ``(i) is produced in the United States for 
                        use as a fuel in the United States, and
                            ``(ii) is derived from any lignocellulosic 
                        or hemicellulosic matter that is available on a 
                        renewable or recurring basis.
                For purposes of this subparagraph, the term `United 
                States' includes any possession of the United States.
                    ``(D) Cellulosic alcohol fuel producer.--For 
                purposes of this paragraph, the term `cellulosic 
                alcohol fuel producer' means any person who produces 
                cellulosic alcohol in a trade or business and is 
                registered with the Secretary as a cellulosic alcohol 
                fuel producer.
                    ``(E) Additional distillation excluded.--The 
                qualified cellulosic fuel production of any producer 
                for any taxable year shall not include any alcohol 
                which is purchased by the producer and with respect to 
                which such producer increases the proof of the alcohol 
                by additional distillation.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 40 is amended by striking 
        ``plus'' at the end of paragraph (1), by striking ``plus'' at 
        the end of paragraph (2), by striking the period at the end of 
        paragraph (3) and inserting ``, plus'', and by adding at the 
        end the following new paragraph:
            ``(4) in the case of a cellulosic alcohol fuel producer, 
        the cellulosic alcohol fuel producer credit.''.
            (2) Clause (ii) of section 40(d)(3)(C) is amended by 
        striking ``subsection (b)(4)(B)'' and inserting ``paragraph 
        (4)(B) or (5)(B) of subsection (b)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to alcohol produced after December 31, 2007.

SEC. 10105. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE 
              COMMUTERS.

    (a) In General.--Paragraph (1) of section 132(f) (relating to 
general rule for qualified transportation fringe) is amended by adding 
at the end the following:
                    ``(D) Any qualified bicycle commuting 
                reimbursement.''.
    (b) Limitation on Exclusion.--Paragraph (2) of section 132(f) is 
amended by striking ``and'' at the end of subparagraph (A), by striking 
the period at the end of subparagraph (B) and inserting ``, and'', and 
by adding at the end the following new subparagraph:
                    ``(C) the applicable annual limitation in the case 
                of any qualified bicycle commuting reimbursement.''.
    (c) Definitions.--Paragraph (5) of section 132(f) (relating to 
definitions) is amended by adding at the end the following:
                    ``(F) Definitions related to bicycle commuting 
                reimbursement.--
                            ``(i) Qualified bicycle commuting 
                        reimbursement.--The term `qualified bicycle 
                        commuting reimbursement' means, with respect to 
                        any calendar year, any employer reimbursement 
                        during the 15-month period beginning with the 
                        first day of such calendar year for reasonable 
                        expenses incurred by the employee during such 
                        calendar year for the purchase of a bicycle and 
                        bicycle improvements, repair, and storage, if 
                        such bicycle is regularly used for travel 
                        between the employee's residence and place of 
                        employment.
                            ``(ii) Applicable annual limitation.--The 
                        term `applicable annual limitation' means, with 
                        respect to any employee for any calendar year, 
                        the product of $20 multiplied by the number of 
                        qualified bicycle commuting months during such 
                        year.
                            ``(iii) Qualified bicycle commuting 
                        month.--The term `qualified bicycle commuting 
                        month' means, with respect to any employee, any 
                        month during which such employee--
                                    ``(I) regularly uses the bicycle 
                                for a substantial portion of the travel 
                                between the employee's residence and 
                                place of employment, and
                                    ``(II) does not receive any benefit 
                                described in subparagraph (A), (B), or 
                                (C) of paragraph (1).''.
    (d) Constructive Receipt of Benefit.--Paragraph (4) of section 
132(f) is amended by inserting ``(other than a qualified bicycle 
commuting reimbursement)'' after ``qualified transportation fringe''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 10106. MODIFICATION OF LIMITATION ON AUTOMOBILE DEPRECIATION.

    (a) In General.--Paragraph (5) of section 280F(d) (defining 
passenger automobile) is amended to read as follows:
            ``(5) Passenger automobile.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `passenger automobile' means 
                any 4-wheeled vehicle--
                            ``(i) which is primarily designed or which 
                        can be used to carry passengers over public 
                        streets, roads, or highways (except any vehicle 
                        operated exclusively on a rail or rails), and
                            ``(ii) which is rated at not more than 
                        14,000 pounds gross vehicle weight.
                    ``(B) Exceptions.--The term `passenger automobile' 
                shall not include--
                            ``(i) any exempt-design vehicle, and
                            ``(ii) any exempt-use vehicle.
                    ``(C) Exempt-design vehicle.--The term `exempt-
                design vehicle' means--
                            ``(i) any vehicle which, by reason of its 
                        nature or design, is not likely to be used more 
                        than a de minimis amount for personal purposes, 
                        and
                            ``(ii) any vehicle--
                                    ``(I) which is designed to have a 
                                seating capacity of more than 9 persons 
                                behind the driver's seat,
                                    ``(II) which is equipped with a 
                                cargo area of at least 5 feet in 
                                interior length which is an open area 
                                or is designed for use as an open area 
                                but is enclosed by a cap and is not 
                                readily accessible directly from the 
                                passenger compartment, or
                                    ``(III) has an integral enclosure, 
                                fully enclosing the driver compartment 
                                and load carrying device, does not have 
                                seating rearward of the driver's seat, 
                                and has no body section protruding more 
                                than 30 inches ahead of the leading 
                                edge of the windshield.
                    ``(D) Exempt-use vehicle.--The term `exempt-use 
                vehicle' means--
                            ``(i) any ambulance, hearse, or combination 
                        ambulance-hearse used by the taxpayer directly 
                        in a trade or business,
                            ``(ii) any vehicle used by the taxpayer 
                        directly in the trade or business of 
                        transporting persons or property for 
                        compensation or hire, and
                            ``(iii) any truck or van if substantially 
                        all of the use of such vehicle by the taxpayer 
                        is directly in--
                                    ``(I) a farming business (within 
                                the meaning of section 263A(e)(4)),
                                    ``(II) the transportation of a 
                                substantial amount of equipment, 
                                supplies, or inventory, or
                                    ``(III) the moving or delivery of 
                                property which requires substantial 
                                cargo capacity.
                    ``(E) Recapture.--In the case of any vehicle which 
                is not a passenger automobile by reason of being an 
                exempt-use vehicle, if such vehicle ceases to be an 
                exempt-use vehicle in any taxable year after the 
                taxable year in which such vehicle is placed in 
                service, a rule similar to the rule of subsection (b) 
                shall apply.''.
    (b) Conforming Amendment.--Section 179(b) (relating to limitations) 
is amended by striking paragraph (6).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007.

SEC. 10107. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.

    (a) In General.--Part I of subchapter Y of chapter 1 is amended by 
redesignating section 1400L as section 1400K and by adding at the end 
the following new section:

``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.

    ``(a) In General.--In the case of a New York Liberty Zone 
governmental unit, there shall be allowed as a credit against any taxes 
imposed for any payroll period by section 3402 for which such 
governmental unit is liable under section 3403 an amount equal to so 
much of the portion of the qualifying project expenditure amount 
allocated under subsection (b)(3) to such governmental unit for the 
calendar year as is allocated by such governmental unit to such period 
under subsection (b)(4).
    ``(b) Qualifying Project Expenditure Amount.--For purposes of this 
section--
            ``(1) In general.--The term `qualifying project expenditure 
        amount' means, with respect to any calendar year, the sum of--
                    ``(A) the total expenditures paid or incurred 
                during such calendar year by all New York Liberty Zone 
                governmental units and the Port Authority of New York 
                and New Jersey for any portion of qualifying projects 
                located wholly within the City of New York, New York, 
                and
                    ``(B) any such expenditures--
                            ``(i) paid or incurred in any preceding 
                        calendar year which begins after the date of 
                        enactment of this section, and
                            ``(ii) not previously allocated under 
                        paragraph (3).
            ``(2) Qualifying project.--The term `qualifying project' 
        means any transportation infrastructure project, including 
        highways, mass transit systems, railroads, airports, ports, and 
        waterways, in or connecting with the New York Liberty Zone (as 
        defined in section 1400K(h)), which is designated as a 
        qualifying project under this section jointly by the Governor 
        of the State of New York and the Mayor of the City of New York, 
        New York.
            ``(3) General allocation.--
                    ``(A) In general.--The Governor of the State of New 
                York and the Mayor of the City of New York, New York, 
                shall jointly allocate to each New York Liberty Zone 
                governmental unit the portion of the qualifying project 
                expenditure amount which may be taken into account by 
                such governmental unit under subsection (a) for any 
                calendar year in the credit period.
                    ``(B) Aggregate limit.--The aggregate amount which 
                may be allocated under subparagraph (A) for all 
                calendar years in the credit period shall not exceed 
                $2,000,000,000.
                    ``(C) Annual limit.--The aggregate amount which may 
                be allocated under subparagraph (A) for any calendar 
                year in the credit period shall not exceed the sum of--
                            ``(i) $169,000,000, plus
                            ``(ii) the aggregate amount authorized to 
                        be allocated under this paragraph for all 
                        preceding calendar years in the credit period 
                        which was not so allocated.
                    ``(D) Unallocated amounts at end of credit 
                period.--If, as of the close of the credit period, the 
                amount under subparagraph (B) exceeds the aggregate 
                amount allocated under subparagraph (A) for all 
                calendar years in the credit period, the Governor of 
                the State of New York and the Mayor of the City of New 
                York, New York, may jointly allocate to New York 
                Liberty Zone governmental units for any calendar year 
                in the 5-year period following the credit period an 
                amount equal to--
                            ``(i) the lesser of--
                                    ``(I) such excess, or
                                    ``(II) the qualifying project 
                                expenditure amount for such calendar 
                                year, reduced by
                            ``(ii) the aggregate amount allocated under 
                        this subparagraph for all preceding calendar 
                        years.
            ``(4) Allocation to payroll periods.--Each New York Liberty 
        Zone governmental unit which has been allocated a portion of 
        the qualifying project expenditure amount under paragraph (3) 
        for a calendar year may allocate such portion to payroll 
        periods beginning in such calendar year as such governmental 
        unit determines appropriate.
    ``(c) Carryover of Unused Allocations.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        the amount allocated under subsection (b)(3) to a New York 
        Liberty Zone governmental unit for any calendar year exceeds 
        the aggregate taxes imposed by section 3402 for which such 
        governmental unit is liable under section 3403 for periods 
        beginning in such year, such excess shall be carried to the 
        succeeding calendar year and added to the allocation of such 
        governmental unit for such succeeding calendar year.
            ``(2) Reallocation.--If a New York Liberty Zone 
        governmental unit does not use an amount allocated to it under 
        subsection (b)(3) within the time prescribed by the Governor of 
        the State of New York and the Mayor of the City of New York, 
        New York, then such amount shall after such time be treated for 
        purposes of subsection (b)(3) in the same manner as if it had 
        never been allocated.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Credit period.--The term `credit period' means the 
        12-year period beginning on January 1, 2008.
            ``(2) New york liberty zone governmental unit.--The term 
        `New York Liberty Zone governmental unit' means--
                    ``(A) the State of New York,
                    ``(B) the City of New York, New York, and
                    ``(C) any agency or instrumentality of such State 
                or City.
            ``(3) Treatment of funds.--Any expenditure for a qualifying 
        project taken into account for purposes of the credit under 
        this section shall be considered State and local funds for the 
        purpose of any Federal program.
            ``(4) Treatment of credit amounts for purposes of 
        withholding taxes.--For purposes of this title, a New York 
        Liberty Zone governmental unit shall be treated as having paid 
        to the Secretary, on the day on which wages are paid to 
        employees, an amount equal to the amount of the credit allowed 
        to such entity under subsection (a) with respect to such wages, 
        but only if such governmental unit deducts and withholds wages 
        for such payroll period under section 3401 (relating to wage 
        withholding).
    ``(e) Reporting.--The Governor of the State of New York and the 
Mayor of the City of New York, New York, shall jointly submit to the 
Secretary an annual report--
            ``(1) which certifies--
                    ``(A) the qualifying project expenditure amount for 
                the calendar year, and
                    ``(B) the amount allocated to each New York Liberty 
                Zone governmental unit under subsection (b)(3) for the 
                calendar year, and
            ``(2) includes such other information as the Secretary may 
        require to carry out this section.
    ``(f) Guidance.--The Secretary may prescribe such guidance as may 
be necessary or appropriate to ensure compliance with the purposes of 
this section.''
    (b) Termination of Special Allowance and Expensing.--Subparagraph 
(A) of section 1400K(b)(2), as redesignated by subsection (a), is 
amended by striking the parenthetical therein and inserting ``(in the 
case of nonresidential real property and residential rental property, 
the date of the enactment of the Renewable Energy and Energy 
Conservation Tax Act of 2007 or, if acquired pursuant to a binding 
contract in effect on such enactment date, December 31, 2009)''.
    (c) Conforming Amendments.--
            (1) Section 38(c)(3)(B) is amended by striking ``section 
        1400L(a)'' and inserting ``section 1400K(a)''.
            (2) Section 168(k)(2)(D)(ii) is amended by striking 
        ``section 1400L(c)(2)'' and inserting ``section 1400K(c)(2)''.
            (3) The table of sections for part I of subchapter Y of 
        chapter 1 is amended by redesignating the item relating to 
        section 1400L as an item relating to section 1400K and by 
        inserting after such item the following new item:

``Sec. 1400L. New York Liberty Zone tax credits.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

                 PART 2--OTHER CONSERVATION PROVISIONS

SEC. 10111. QUALIFIED ENERGY CONSERVATION BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of chapter 1, 
as added by section 10004, is amended by adding at the end the 
following new section:

``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.

    ``(a) Qualified Energy Conservation Bond.--For purposes of this 
subchapter, the term `qualified energy conservation bond' means any 
bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for one or more qualified conservation 
        purposes,
            ``(2) the bond is issued by a State or local government, 
        and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (d).
    ``(c) National Limitation on Amount of Bonds Designated.--There is 
a national qualified energy conservation bond limitation of 
$3,600,000,000.
    ``(d) Allocations.--
            ``(1) In general.--The limitation applicable under 
        subsection (c) shall be allocated by the Secretary among the 
        States in proportion to the population of the States.
            ``(2) Allocations to largest local governments.--
                    ``(A) In general.--In the case of any State in 
                which there is a large local government, each such 
                local government shall be allocated a portion of such 
                State's allocation which bears the same ratio to the 
                State's allocation (determined without regard to this 
                subparagraph) as the population of such large local 
                government bears to the population of such State.
                    ``(B) Allocation of unused limitation to state.--
                The amount allocated under this subsection to a large 
                local government may be reallocated by such local 
                government to the State in which such local government 
                is located.
                    ``(C) Large local government.--For purposes of this 
                section, the term `large local government' means any 
                municipality or county if such municipality or county 
                has a population of 100,000 or more.
            ``(3) Allocation to issuers; restriction on private 
        activity bonds.--Any allocation under this subsection to a 
        State or large local government shall be allocated by such 
        State or large local government to issuers within the State in 
        a manner that results in not less than 70 percent of the 
        allocation to such State or large local government being used 
        to designate bonds which are not private activity bonds.
    ``(e) Qualified Conservation Purpose.--For purposes of this 
section--
            ``(1) In general.--The term `qualified conservation 
        purpose' means any of the following:
                    ``(A) Capital expenditures incurred for purposes 
                of--
                            ``(i) reducing energy consumption in 
                        publicly-owned buildings by at least 20 
                        percent,
                            ``(ii) implementing green community 
                        programs, or
                            ``(iii) rural development involving the 
                        production of electricity from renewable energy 
                        resources.
                    ``(B) Expenditures with respect to research 
                facilities, and research grants, to support research 
                in--
                            ``(i) development of cellulosic ethanol or 
                        other nonfossil fuels,
                            ``(ii) technologies for the capture and 
                        sequestration of carbon dioxide produced 
                        through the use of fossil fuels,
                            ``(iii) increasing the efficiency of 
                        existing technologies for producing nonfossil 
                        fuels,
                            ``(iv) automobile battery technologies and 
                        other technologies to reduce fossil fuel 
                        consumption in transportation, or
                            ``(v) technologies to reduce energy use in 
                        buildings.
                    ``(C) Mass commuting facilities and related 
                facilities that reduce the consumption of energy, 
                including expenditures to reduce pollution from 
                vehicles used for mass commuting.
                    ``(D) Demonstration projects designed to promote 
                the commercialization of--
                            ``(i) green building technology,
                            ``(ii) conversion of agricultural waste for 
                        use in the production of fuel or otherwise,
                            ``(iii) advanced battery manufacturing 
                        technologies,
                            ``(iv) technologies to reduce peak use of 
                        electricity, or
                            ``(v) technologies for the capture and 
                        sequestration of carbon dioxide emitted from 
                        combusting fossil fuels in order to produce 
                        electricity.
                    ``(E) Public education campaigns to promote energy 
                efficiency.
            ``(2) Special rules for private activity bonds.--For 
        purposes of this section, in the case of any private activity 
        bond, the term `qualified conservation purposes' shall not 
        include any expenditure which is not a capital expenditure.
    ``(f) Population.--
            ``(1) In general.--The population of any State or local 
        government shall be determined for purposes of this section as 
        provided in section 146(j) for the calendar year which includes 
        the date of the enactment of this section.
            ``(2) Special rule for counties.--In determining the 
        population of any county for purposes of this section, any 
        population of such county which is taken into account in 
        determining the population of any municipality which is a large 
        local government shall not be taken into account in determining 
        the population of such county.
    ``(g) Application to Indian Tribal Governments.--An Indian tribal 
government shall be treated for purposes of this section in the same 
manner as a large local government, except that--
            ``(1) an Indian tribal government shall be treated for 
        purposes of subsection (d) as located within a State to the 
        extent of so much of the population of such government as 
        resides within such State, and
            ``(2) any bond issued by an Indian tribal government shall 
        be treated as a qualified energy conservation bond only if 
        issued as part of an issue the available project proceeds of 
        which are used for purposes for which such Indian tribal 
        government could issue bonds to which section 103(a) 
        applies.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d), as added by section 
        10004, is amended to read as follows:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means--
                    ``(A) a new clean renewable energy bond, or
                    ``(B) a qualified energy conservation bond,
        which is part of an issue that meets requirements of paragraphs 
        (2), (3), (4), and (5).''.
            (2) Subparagraph (C) of section 54A(d)(2), as added by 
        section 10004, is amended to read as follows:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means--
                            ``(i) in the case of a new clean renewable 
                        energy bond, a purpose specified in section 
                        54B(a)(1), and
                            ``(ii) in the case of a qualified energy 
                        conservation bond, a purpose specified in 
                        section 54C(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54C. Qualified energy conservation bonds.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 10112. QUALIFIED RESIDENTIAL ENERGY EFFICIENCY ASSISTANCE BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of chapter 1 
(as amended by this Act) is amended by adding at the end the following 
new section:

``SEC. 54D. QUALIFIED RESIDENTIAL ENERGY EFFICIENCY ASSISTANCE BONDS.

    ``(a) Qualified Residential Energy Efficiency Assistance Bond.--For 
purposes of this subchapter, the term `qualified residential energy 
efficiency assistance bond' means any bond issued as part of an issue 
if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for 1 or more qualified residential energy 
        efficiency assistance purposes,
            ``(2) not less than 20 percent of the available project 
        proceeds of such issue are to be used for 1 or more qualified 
        low-income residential energy efficiency assistance purposes,
            ``(3) repayments of principal and applicable interest on 
        financing provided by the issue are used not later than the 
        close of the 3-month period beginning on the date the 
        prepayment (or complete repayment) is received to redeem bonds 
        which are part of the issue or to provide for 1 or more 
        qualified residential energy efficiency assistance purposes,
            ``(4) the bond is issued by a State, and
            ``(5) the issuer designates such bond for purposes of this 
        section.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated 
under subsection (d) to such issuer.
    ``(c) National Limitation on Amount of Bonds Designated.--There is 
a national qualified energy conservation bond limitation of 
$2,400,000,000.
    ``(d) Limitation Allocated Among States.--The limitation under 
subsection (c) shall be allocated by the Secretary among the States in 
proportion to the population of the States.
    ``(e) Qualified Residential Energy Efficiency Assistance Purpose.--
For purposes of this section--
            ``(1) In general.--The term `qualified residential energy 
        efficiency assistance purpose' means any grant or low-interest 
        loan to acquire (including reasonable installation costs)--
                    ``(A) any property which meets (at a minimum) the 
                requirements of the Energy Star program and which is to 
                be installed in a dwelling unit,
                    ``(B) any property which uses wind, solar, or 
                geothermal energy or qualified fuel cell property (as 
                defined in section 48(c)(1)) to generate electricity, 
                or to heat or cool water, for use in a dwelling unit 
                (other than property described in section 25D(e)(3)), 
                and
                    ``(C) any improvements to a dwelling unit which are 
                made pursuant to a plan certified by an energy 
                efficiency expert that such improvement will yield at 
                least a 20 percent reduction in total household energy 
                consumption related to heating, cooling, lighting, and 
                appliances.
            ``(2) Geothermal heat pump.--Any geothermal heat pump to 
        provide heating or cooling in a dwelling unit described in 
        paragraph (1)(B) shall be treated as described in paragraph 
        (1)(B).
            ``(3) Dollar limitations.--
                    ``(A) In general.--Such term shall not include any 
                grant or loan for improvements described in paragraph 
                (1)(C) with respect to any dwelling unit to the extent 
                that such grant or loan (when added to all other grants 
                or loans for such improvements) exceeds $5,000.
                    ``(B) Increased limitation for certain principal 
                residences.--In the case of a dwelling unit which is 
                used as a principal residence (within the meaning of 
                section 121) by the recipient of the grant or loan 
                referred to in subparagraph (A)--
                            ``(i) subparagraph (A) shall be applied by 
                        substituting `$12,000' for `$5,000' if such 
                        grant or loan would satisfy the requirements of 
                        paragraph (1)(A) if such paragraph were applied 
                        by substituting `50 percent' for `20 percent', 
                        and
                            ``(ii) in any case to which clause (i) does 
                        not apply, subparagraph (A) shall be applied by 
                        substituting `$8,000' for `$5,000' if such 
                        grant or loan would satisfy the requirements of 
                        paragraph (1)(A) if such paragraph were applied 
                        by substituting `35 percent' for `20 percent'.
            ``(4) Low-interest loan.--The term `low interest loan' 
        means any loan which charges interest at a rate which does not 
        exceed the applicable Federal rate in effect under section 
        1288(b)(1) determined as of the issuance of the loan.
            ``(5) Exclusion of certain property.--The following 
        property shall not be taken into account for purposes of 
        paragraph (1)(A):
                    ``(A) Any equipment used in connection with a 
                swimming pool, hot tub, or similar property.
                    ``(B) Any television.
                    ``(C) Any device for converting digital signal to 
                analog.
                    ``(D) Any DVD player.
                    ``(E) Any video cassette recorder (VCR).
                    ``(F) Any audio equipment.
                    ``(G) Any cordless phone.
                    ``(H) Any other item of property where there is 
                substantial recreational use.
    ``(f) Qualified Low-Income Residential Efficiency Assistance 
Purpose.--For purposes of this section--
            ``(1) In general.--The term `qualified low-income 
        residential energy efficiency assistance purpose' means any 
        qualified residential energy efficiency assistance purpose with 
        respect to a dwelling unit which is occupied (at the time of 
        the grant or loan) by individuals whose income is 50 percent or 
        less of area median gross income. Rules similar to the rules of 
        section 142(d)(2)(B) shall apply for purposes of this 
        paragraph.
            ``(2) Restriction to grants.--Such term shall not include 
        any loan.
    ``(g) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Applicable interest.--The term `applicable interest' 
        means, with respect to any loan, so much of any interest on 
        such loan which exceeds 1 percentage point.
            ``(2) Special rule relating to arbitrage.--An issue shall 
        not be treated as failing to meet the requirements of section 
        54A(d)(4)(A) by reason of any investment of available project 
        proceeds in 1 or more qualified residential energy efficiency 
        assistance purposes.
            ``(3) Population.--The population of any State or local 
        government shall be determined as provided in section 146(j) 
        for the calendar year which includes the date of the enactment 
        of this section.
            ``(4) Reporting.--
                    ``(A) Reports by issuers.--Issuers of qualified 
                residential energy efficiency assistance bonds shall, 
                not later than 6 months after the expenditure period 
                (as defined in section 54A) and annually thereafter 
                until the last such bond is redeemed, submit reports to 
                the Secretary regarding such bonds, including 
                information regarding--
                            ``(i) the number and monetary value of 
                        loans and grants provided and the purposes for 
                        which provided,
                            ``(ii) the number of dwelling units the 
                        energy efficiency of which improved as result 
                        of such loans and grants,
                            ``(iii) the types of property described in 
                        subsection (e)(1)(A) installed as a result of 
                        such loans and grants and the projected energy 
                        savings with respect to such property,
                            ``(iv) the types of property described in 
                        subsection (e)(1)(B) installed as a result of 
                        such loans and grants and the projected 
                        production of such property, and
                            ``(v) the projected energy savings as a 
                        result of such loans and grants for 
                        improvements described in subsection (e)(1)(C).
                    ``(B) Report to congress.--Not later than 12 months 
                after receipt of the first report under subparagraph 
                (A) and annually thereafter until the last such report 
                is required to be submitted, the Secretary, in 
                consultation with the Secretary of Energy and the 
                Administrator of the Environmental Protection Agency, 
                shall submit a report to Congress regarding the bond 
                program under this section, including information 
                regarding--
                            ``(i) the aggregate of each category of 
                        information described in subparagraph (A) 
                        (including any independent assessment of 
                        projected energy savings), and
                            ``(ii) an estimate of the amount of 
                        greenhouse gas emissions reduced as a result of 
                        such bond program.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d), as added by section 
        10004 and amended by section 10111, is amended by striking 
        ``or'' at the end of subparagraph (A), by inserting ``or'' at 
        the end of subparagraph (B), and by inserting after 
        subparagraph (B) the following new subparagraph:
                    ``(C) a qualified residential energy efficiency 
                assistance bond,''.
            (2) Subparagraph (C) of section 54A(d)(2), as added by 
        section 10004 and amended by section 10111, is amended by 
        striking ``and'' at the end of clause (i), by striking the 
        period at the end of clause (ii) and inserting ``, and'', and 
        by adding at the end the following new clause:
                            ``(iii) in the case of a qualified 
                        residential energy efficiency assistance bond, 
                        a purpose specified in section 54D(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1, as amended by this Act, is amended 
        by adding at the end the following new item:

``Sec. 54D. Qualified residential energy efficiency assistance 
                            bonds.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 10113. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
              DEDUCTION.

    Subsection (h) of section 179D (relating to termination) is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2013''.

SEC. 10114. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR 
              APPLIANCES PRODUCED AFTER 2007.

    (a) In General.--Subsection (b) of section 45M (relating to 
applicable amount) is amended to read as follows:
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Dishwashers.--The applicable amount is--
                    ``(A) $45 in the case of a dishwasher which is 
                manufactured in calendar year 2008 or 2009 and which 
                uses no more than 324 kilowatt hours per year and 5.8 
                gallons per cycle, and
                    ``(B) $75 in the case of a dishwasher which is 
                manufactured in calendar year 2008, 2009, or 2010 and 
                which uses no more than 307 kilowatt hours per year and 
                5.0 gallons per cycle (5.5 gallons per cycle for 
                dishwashers designed for greater than 12 place 
                settings).
            ``(2) Clothes washers.--The applicable amount is--
                    ``(A) $75 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 which 
                meets or exceeds a 1.72 modified energy factor and does 
                not exceed a 8.0 water consumption factor,
                    ``(B) $125 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 or 
                2009 which meets or exceeds a 1.8 modified energy 
                factor and does not exceed a 7.5 water consumption 
                factor,
                    ``(C) $150 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009 or 2010 which meets or exceeds 2.0 modified 
                energy factor and does not exceed a 6.0 water 
                consumption factor, and
                    ``(D) $250 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009, or 2010 which meets or exceeds 2.2 modified 
                energy factor and does not exceed a 4.5 water 
                consumption factor.
            ``(3) Refrigerators.--The applicable amount is--
                    ``(A) $50 in the case of a refrigerator which is 
                manufactured in calendar year 2008, and consumes at 
                least 20 percent but not more than 22.9 percent less 
                kilowatt hours per year than the 2001 energy 
                conservation standards,
                    ``(B) $75 in the case of a refrigerator which is 
                manufactured in calendar year 2008 or 2009, and 
                consumes at least 23 percent but no more than 24.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards,
                    ``(C) $100 in the case of a refrigerator which is 
                manufactured in calendar year 2008, 2009 or 2010, and 
                consumes at least 25 percent but not more than 29.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards, and
                    ``(D) $200 in the case of a refrigerator 
                manufactured in calendar year 2008, 2009 or 2010 and 
                which consumes at least 30 percent less energy than the 
                2001 energy conservation standards.
            ``(4) Dehumidifiers.--The applicable amount is--
                    ``(A) $15 in the case of a dehumidifier 
                manufactured in calendar year 2008 that has a capacity 
                less than or equal to 45 pints per day and is 7.5 
                percent more efficient than the applicable Department 
                of Energy energy conservation standard effective 
                October 2012, and
                    ``(B) $25 in the case of a dehumidifier 
                manufactured in calendar year 2008 that has a capacity 
                greater than 45 pints per day and is 7.5 percent more 
                efficient than the applicable Department of Energy 
                energy conservation standard effective October 2012.''.
    (b) Eligible Production.--
            (1) Similar treatment for all appliances.--Subsection (c) 
        of section 45M (relating to eligible production) is amended--
                    (A) by striking paragraph (2),
                    (B) by striking ``(1) In general'' and all that 
                follows through ``the eligible'' and inserting ``The 
                eligible'', and
                    (C) by moving the text of such subsection in line 
                with the subsection heading and redesignating 
                subparagraphs (A) and (B) as paragraphs (1) and (2), 
                respectively.
            (2) Modification of base period.--Paragraph (2) of section 
        45M(c), as amended by paragraph (1) of this subsection, is 
        amended by striking ``3-calendar year'' and inserting ``2-
        calendar year''.
    (c) Types of Energy Efficient Appliances.--Subsection (d) of 
section 45M (defining types of energy efficient appliances) is amended 
to read as follows:
    ``(d) Types of Energy Efficient Appliance.--For purposes of this 
section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection (b)(1),
            ``(2) clothes washers described in subsection (b)(2),
            ``(3) refrigerators described in subsection (b)(3), and
            ``(4) dehumidifiers described in subsection (b)(4).''.
    (d) Aggregate Credit Amount Allowed.--
            (1) Increase in limit.--Paragraph (1) of section 45M(e) 
        (relating to aggregate credit amount allowed) is amended to 
        read as follows:
            ``(1) Aggregate credit amount allowed.--The aggregate 
        amount of credit allowed under subsection (a) with respect to a 
        taxpayer for any taxable year shall not exceed $75,000,000 
        reduced by the amount of the credit allowed under subsection 
        (a) to the taxpayer (or any predecessor) for all prior taxable 
        years beginning after December 31, 2007.''.
            (2) Exception for certain refrigerator and clothes 
        washers.--Paragraph (2) of section 45M(e) is amended to read as 
        follows:
            ``(2) Amount allowed for certain refrigerators and clothes 
        washers.--Refrigerators described in subsection (b)(3)(D) and 
        clothes washers described in subsection (b)(2)(D) shall not be 
        taken into account under paragraph (1).''.
    (e) Qualified Energy Efficient Appliances.--
            (1) In general.--Paragraph (1) of section 45M(f) (defining 
        qualified energy efficient appliance) is amended to read as 
        follows:
            ``(1) Qualified energy efficient appliance.--The term 
        `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in subsection 
                (b)(1),
                    ``(B) any clothes washer described in subsection 
                (b)(2),
                    ``(C) any refrigerator described in subsection 
                (b)(3), and
                    ``(D) any dehumidifier described in subsection 
                (b)(4).''.
            (2) Clothes washer.--Section 45M(f)(3) (defining clothes 
        washer) is amended by inserting ``commercial'' before 
        ``residential'' the second place it appears.
            (3) Top-loading clothes washer.--Subsection (f) of section 
        45M (relating to definitions) is amended by redesignating 
        paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), 
        and (8), respectively, and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Top-loading clothes washer.--The term `top-loading 
        clothes washer' means a clothes washer which has the clothes 
        container compartment access located on the top of the machine 
        and which operates on a vertical axis.''.
            (4) Dehumidifier.--Subsection (f) of section 45M, as 
        amended by paragraph (3), is amended by redesignating 
        paragraphs (6), (7), and (8) as paragraphs (7), (8) and (9), 
        respectively, and by inserting after paragraph (5) the 
        following new paragraph:
            ``(6) Dehumidifier.--The term `dehumidifier' means a self-
        contained, electrically operated, and mechanically refrigerated 
        encased assembly consisting of--
                    ``(A) a refrigerated surface that condenses 
                moisture from the atmosphere,
                    ``(B) a refrigerating system, including an electric 
                motor,
                    ``(C) an air-circulating fan, and
                    ``(D) means for collecting or disposing of 
                condensate.''.
            (5) Replacement of energy factor.--Section 45M(f)(7), as 
        amended by paragraph (4), is amended to read as follows:
            ``(7) Modified energy factor.--The term `modified energy 
        factor' means the modified energy factor established by the 
        Department of Energy for compliance with the Federal energy 
        conservation standard.''.
            (6) Gallons per cycle; water consumption factor.--Section 
        45M(f) (relating to definitions) is amended by adding at the 
        end the following:
            ``(10) Gallons per cycle.--The term `gallons per cycle' 
        means, with respect to a dishwasher, the amount of water, 
        expressed in gallons, required to complete a normal cycle of a 
        dishwasher.
            ``(11) Water consumption factor.--The term `water 
        consumption factor' means, with respect to a clothes washer, 
        the quotient of the total weighted per-cycle water consumption 
        divided by the cubic foot (or liter) capacity of the clothes 
        washer.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007.

SEC. 10115. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
              QUALIFIED ENERGY MANAGEMENT DEVICES.

    (a) In General.--Section 168(e)(3)(B) (relating to 5-year property) 
is amended by striking ``and'' at the end of clause (v), by striking 
the period at the end of clause (vi) and inserting ``, and'', and by 
inserting after clause (vi) the following new clause:
                            ``(vii) any qualified energy management 
                        device.''.
    (b) Definition of Qualified Energy Management Device.--Section 
168(i) (relating to definitions and special rules) is amended by 
inserting at the end the following new paragraph:
            ``(18) Qualified energy management device.--
                    ``(A) In general.--The term `qualified energy 
                management device' means any energy management device 
                which is installed on real property of a customer of 
                the taxpayer and is placed in service by a taxpayer 
                who--
                            ``(i) is a supplier of electric energy or a 
                        provider of electric energy services, and
                            ``(ii) provides all commercial and 
                        residential customers of such supplier or 
                        provider with net metering upon the request of 
                        such customer.
                    ``(B) Energy management device.--For purposes of 
                subparagraph (A), the term `energy management device' 
                means any time-based meter and related communication 
                equipment which is capable of being used by the 
                taxpayer as part of a system that--
                            ``(i) measures and records electricity 
                        usage data on a time-differentiated basis in at 
                        least 24 separate time segments per day,
                            ``(ii) provides for the exchange of 
                        information between supplier or provider and 
                        the customer's energy management device in 
                        support of time-based rates or other forms of 
                        demand response, and
                            ``(iii) provides data to such supplier or 
                        provider so that the supplier or provider can 
                        provide energy usage information to customers 
                        electronically.
                    ``(C) Net metering.--For purposes of subparagraph 
                (A), the term `net metering' means allowing customers a 
                credit for providing electricity to the supplier or 
                provider.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

                     Subtitle C--Revenue Provisions

               PART 1--DENIAL OF OIL AND GAS TAX BENEFITS

SEC. 10201. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC 
              PRODUCTION OF OIL, NATURAL GAS, OR PRIMARY PRODUCTS 
              THEREOF.

    (a) In General.--Subparagraph (B) of section 199(c)(4) (relating to 
exceptions) is amended by striking ``or'' at the end of clause (ii), by 
striking the period at the end of clause (iii) and inserting ``, or'', 
and by inserting after clause (iii) the following new clause:
                            ``(iv) the sale, exchange, or other 
                        disposition of oil, natural gas, or any primary 
                        product thereof.''.
    (b) Primary Product.--Section 199(c)(4)(B) is amended by adding at 
the end the following flush sentence:
                ``For purposes of clause (iv), the term `primary 
                product' has the same meaning as when used in section 
                927(a)(2)(C), as in effect before its repeal.''.
    (c) Conforming Amendments.--Section 199(c)(4) is amended--
            (1) in subparagraph (A)(i)(III) by striking ``electricity, 
        natural gas,'' and inserting ``electricity'', and
            (2) in subparagraph (B)(ii) by striking ``electricity, 
        natural gas,'' and inserting ``electricity''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 10202. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
              EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES.

    (a) In General.--Subparagraph (A) of section 167(h)(5) (relating to 
special rule for major integrated oil companies) is amended by striking 
``5-year'' and inserting ``7-year''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after the date of the enactment of this 
Act.

SEC. 10203. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND GAS 
              EXTRACTION INCOME.

    (a) In General.--Paragraph (1) of section 907(c) is amended by 
redesignating subparagraph (B) as subparagraph (C), by striking ``or'' 
at the end of subparagraph (A), and by inserting after subparagraph (A) 
the following new subparagraph:
                    ``(B) so much of any transportation of such 
                minerals as occurs before the fair market value event, 
                or''.
    (b) Fair Market Value Event.--Subsection (c) of section 907 is 
amended by adding at the end the following new paragraph:
            ``(6) Fair market value event.--For purposes of this 
        section, the term `fair market value event' means, with respect 
        to any mineral, the first point in time at which such mineral--
                    ``(A) has a fair market value which can be 
                determined on the basis of a transfer, which is an 
                arm's length transaction, of such mineral from the 
                taxpayer to a person who is not related (within the 
                meaning of section 482) to such taxpayer, or
                    ``(B) is at a location at which the fair market 
                value is readily ascertainable by reason of 
                transactions among unrelated third parties with respect 
                to the same mineral (taking into account source, 
                location, quality, and chemical composition).''.
    (c) Special Rule for Certain Petroleum Taxes.--Subsection (c) of 
section 907, as amended by subsection (b), is amended to by adding at 
the end the following new paragraph:
            ``(7) Oil and gas taxes.--In the case of any tax imposed by 
        a foreign country which is limited in its application to 
        taxpayers engaged in oil or gas activities--
                    ``(A) the term `oil and gas extraction taxes' shall 
                include such tax,
                    ``(B) the term `foreign oil and gas extraction 
                income' shall include any taxable income which is taken 
                into account in determining such tax (or is directly 
                attributable to the activity to which such tax 
                relates), and
                    ``(C) the term `foreign oil related income' shall 
                not include any taxable income which is treated as 
                foreign oil and gas extraction income under 
                subparagraph (B).''.
    (d) Conforming Amendments.--
            (1) Subparagraph (C) of section 907(c)(1), as redesignated 
        by this section, is amended by inserting ``or used by the 
        taxpayer in the activity described in subparagraph (B)'' before 
        the period at the end.
            (2) Subparagraph (B) of section 907(c)(2) is amended to 
        read as follows:
                    ``(B) so much of the transportation of such 
                minerals or primary products as is not taken into 
                account under paragraph (1)(B),''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

     PART 2--CLARIFICATION OF ELIGIBILITY FOR CERTAIN FUEL CREDITS

SEC. 10211. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL CREDIT.

    (a) Coproduction With Petroleum Feedstock.--
            (1) In general.--Paragraph (3) of section 40A(f) (defining 
        renewable diesel) is amended by adding at the end the following 
        flush sentence:
        ``Such term does not include any fuel derived from coprocessing 
        biomass with a feedstock which is not biomass. For purposes of 
        this paragraph, the term `biomass' has the meaning given such 
        term by section 45K(c)(3).''.
            (2) Conforming amendment.--Paragraph (3) of section 40A(f) 
        is amended by striking ``(as defined in section 45K(c)(3))''.
    (b) Clarification of Eligibility for Alternative Fuel Credit.--
            (1) In general.--Subparagraph (F) of section 6426(d)(2) is 
        amended by striking ``hydrocarbons'' and inserting ``fuel''.
            (2) Conforming amendment.--Section 6426 is amended by 
        adding at the end the following new subsection:
    ``(h) Denial of Double Benefit.--No credit shall be determined 
under subsection (d) or (e) with respect to any fuel with respect to 
which credit may be determined under subsection (b) or (c) or under 
section 40 or 40A.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel produced, 
        and sold or used, after June 30, 2007.
            (2) Clarification of eligibility for alternative fuel 
        credit.--The amendment made by subsection (b) shall take effect 
        as if included in section 11113 of the Safe, Accountable, 
        Flexible, Efficient Transportation Equity Act: A Legacy for 
        Users.

SEC. 10212. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE 
              AN INCENTIVE FOR UNITED STATES PRODUCTION.

    (a) Biodiesel Fuels Credit.--Paragraph (5) of section 40A(d), as 
added by subsection (c), is amended to read as follows:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any biodiesel unless--
                    ``(A) such biodiesel is produced in the United 
                States for use as a fuel in the United States, and
                    ``(B) the taxpayer obtains a certification (in such 
                form and manner as prescribed by the Secretary) from 
                the producer of the biodiesel which identifies the 
                product produced and the location of such production.
        For purposes of this paragraph, the term `United States' 
        includes any possession of the United States.''.
    (b) Excise Tax Credit.--Paragraph (2) of section 6426(i), as added 
by subsection (c), is amended to read as follows:
            ``(2) Biodiesel and alternative fuels.--No credit shall be 
        determined under this section with respect to any biodiesel or 
        alternative fuel unless--
                    ``(A) such biodiesel or alternative fuel is 
                produced in the United States for use as a fuel in the 
                United States, and
                    ``(B) the taxpayer obtains a certification (in such 
                form and manner as prescribed by the Secretary) from 
                the producer of such biodiesel or alternative fuel 
                which identifies the product produced and the location 
                of such production.''.
    (c) Provisions Clarifying Treatment of Fuels With No Nexus to the 
United States.--
            (1) Alcohol fuels credit.--Subsection (d) of section 40 is 
        amended by adding at the end the following new paragraph:
            ``(6) Limitation to alcohol with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any alcohol which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
            (2) Biodiesel fuels credit.--Subsection (d) of section 40A 
        is amended by adding at the end the following new paragraph:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under this section with 
        respect to any biodiesel which is produced outside the United 
        States for use as a fuel outside the United States. For 
        purposes of this paragraph, the term `United States' includes 
        any possession of the United States.''.
            (3) Excise tax credit.--
                    (A) In general.--Section 6426, as amended by 
                section 10211, is amended by adding at the end the 
                following new subsection:
    ``(i) Limitation to Fuels With Connection to the United States.--
            ``(1) Alcohol.--No credit shall be determined under this 
        section with respect to any alcohol which is produced outside 
        the United States for use as a fuel outside the United States.
            ``(2) Biodiesel and alternative fuels.--No credit shall be 
        determined under this section with respect to any biodiesel or 
        alternative fuel which is produced outside the United States 
        for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any 
possession of the United States.''.
                    (B) Conforming amendment.--Subsection (e) of 
                section 6427 is amended by redesignating paragraph (5) 
                as paragraph (6) and by inserting after paragraph (4) 
                the following new paragraph:
            ``(5) Limitation to fuels with connection to the united 
        states.--No amount shall be payable under paragraph (1) or (2) 
        with respect to any mixture or alternative fuel if credit is 
        not allowed with respect to such mixture or alternative fuel by 
        reason of section 6426(i).''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel produced, 
        and sold or used, after the date of the enactment of this Act.
            (2) Provisions clarifying treatment of fuels with no nexus 
        to the united states.--
                    (A) In general.--Except as otherwise provided in 
                this paragraph, the amendments made by subsection (c) 
                shall take effect as if included in section 301 of the 
                American Jobs Creation Act of 2004.
                    (B) Alternative fuel credits.--So much of the 
                amendments made by subsection (c) as relate to the 
                alternative fuel credit or the alternative fuel mixture 
                credit shall take effect as if included in section 
                11113 of the Safe, Accountable, Flexible, Efficient 
                Transportation Equity Act: A Legacy for Users.
                    (C) Renewable diesel.--So much of the amendments 
                made by subsection (c) as relate to renewable diesel 
                shall take effect as if included in section 1346 of the 
                Energy Policy Act of 2005.

                      Subtitle D--Other Provisions

                            PART 1--STUDIES

SEC. 10301. CARBON AUDIT OF THE TAX CODE.

    (a) Study.--The Secretary of the Treasury shall enter into an 
agreement with the National Academy of Sciences to undertake a 
comprehensive review of the Internal Revenue Code of 1986 to identify 
the types of and specific tax provisions that have the largest effects 
on carbon and other greenhouse gas emissions and to estimate the 
magnitude of those effects.
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the National Academy of Sciences shall submit to Congress a 
report containing the results of study authorized under this section.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,500,000 for the period of 
fiscal years 2008 and 2009.

SEC. 10302. COMPREHENSIVE STUDY OF BIOFUELS.

    (a) Study.--The Secretary of the Treasury, in consultation with the 
Secretary of Agriculture, the Secretary of Energy, and the 
Administrator of the Environmental Protection Agency, shall enter into 
an agreement with the National Academy of Sciences to produce an 
analysis of current scientific findings to determine--
            (1) current biofuels production, as well as projections for 
        future production,
            (2) the maximum amount of biofuels production capable on 
        United States farmland,
            (3) the domestic effects of a dramatic increase in biofuels 
        production on, for example--
                    (A) the price of fuel,
                    (B) the price of land in rural and suburban 
                communities,
                    (C) crop acreage and other land use,
                    (D) the environment, due to changes in crop 
                acreage, fertilizer use, runoff, water use, emissions 
                from vehicles utilizing biofuels, and other factors,
                    (E) the price of feed,
                    (F) the selling price of grain crops,
                    (G) exports and imports of grains,
                    (H) taxpayers, through cost or savings to commodity 
                crop payments, and
                    (I) the expansion of refinery capacity,
            (4) the ability to convert corn ethanol plants for other 
        uses, such as cellulosic ethanol or biodiesel,
            (5) a comparative analysis of corn ethanol versus other 
        biofuels and renewable energy sources, considering cost, energy 
        output, and ease of implementation, and
            (6) the need for additional scientific inquiry, and 
        specific areas of interest for future research.
    (b) Report.--The National Academy of Sciences shall submit an 
initial report of the findings of the report required under subsection 
(a) to the Congress not later than 3 months after the date of the 
enactment of this Act, and a final report not later than 6 months after 
such date of enactment.

  PART 2--APPLICATION OF CERTAIN LABOR STANDARDS ON PROJECTS FINANCED 
                         UNDER TAX CREDIT BONDS

SEC. 10311. APPLICATION OF CERTAIN LABOR STANDARDS ON PROJECTS FINANCED 
              UNDER TAX CREDIT BONDS.

    Subchapter IV of chapter 31 of title 40, United States Code, shall 
apply to projects financed with the proceeds of any tax credit bond (as 
defined in section 54A of the Internal Revenue Code of 1986).
                                 <all>