    [Congressional Bills 110th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 3221 Engrossed in House (EH)]

    110th CONGRESS
      1st Session
                                    H. R. 3221

    _______________________________________________________________________

                                     AN ACT

        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,
         and to amend the Internal Revenue Code of 1986 to provide tax
         incentives for the production of renewable energy and energy
                                 conservation.

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

    SECTION 1. SHORT TITLES; TABLE OF CONTENTS.

        (a) Short Titles.--This Act may be cited as the ``New Direction for
    Energy Independence, National Security, and Consumer Protection Act''
    and the ``Renewable Energy and Energy Conservation Tax Act of 2007''.
        (b) Table of Contents.--The table of contents for this Act is as
    follows:

    Sec. 1. Short titles; table of contents.
     DIVISION A--NEW DIRECTION FOR ENERGY INDEPENDENCE, NATIONAL SECURITY,
                          AND CONSUMER PROTECTION ACT

                              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.
    Sec. 2104. Report on progress made in promoting transparency in
                                extractive industries resource payments.
         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.
    Sec. 2209. Report on impact of global climate change on developing
                                countries.
               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

                        Part 1--Research and Advancement

    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.
              Part 2--Development and Use of Solar Energy Products

    Sec. 4311. Definitions.
    Sec. 4312. Solar research and information program.
    Sec. 4313. Certification of organizations to nominate.
    Sec. 4314. Referendum.
    Sec. 4315. Refunds.
    Sec. 4316. Enforcement.
    Sec. 4317. Investigations.
    Sec. 4318. Administrative provision.
                              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.
    Sec. 4417. University based research and development grant program.
                     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.
                              Subtitle H--H-PRIZE

    Sec. 4701. H-Prize.
                          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.
    Sec. 5012. Feedstock flexibility program for bioenergy producers.
                      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.
                        Subtitle C--Telework Enhancement

    Sec. 6301. Short title.
    Sec. 6302. Federal Government telework requirement.
    Sec. 6303. Training and monitoring.
    Sec. 6304. Telework managing employee.
    Sec. 6305. Annual telework agency rating.
    Sec. 6306 Definitions.
               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.
    Sec. 7605. Report on status of regulations with respect to wind energy
                                projects.
                 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.
    Sec. 8204. Capital cost of contracting vanpool pilot program.
                          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.
    Sec. 8655. Promoting Maximum Efficiency in Operation of Capitol Power
                                Plant.
    Sec. 8656. Promoting Maximum Efficiency in Operation of 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.
    Sec. 9016. Battery chargers.
    Sec. 9017. Walk-in coolers and walk-in freezers.
                          Part 2--Lighting Efficiency

    Sec. 9021. Efficient light bulbs.
    Sec. 9022. Incandescent reflector lamps.
    Sec. 9023. Use of energy efficient lighting fixtures and bulbs.
    Sec. 9024. Metal halide lamp fixtures.
                    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.
    Sec. 9035. Renewable energy rebate program study.
               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.
    Sec. 9053. Geothermal heat pump technology acceleration program.
    Sec. 9054. Green meetings.
    Sec. 9055. Energy sustainability and efficiency grants for institutions
                                of higher education.
                      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.
    Sec. 9077. Study on indoor environmental quality in schools.
                 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.
                       Subtitle G--Natural Gas Utilities

    Sec. 9511. Natural gas utilities.
                Subtitle H--Federal Renewable Portfolio Standard

    Sec. 9611. Federal renewable portfolio standard.
                  Subtitle I--Large and Small Scale Hydropower

    Sec. 9621. Sense of Congress.
      DIVISION B--RENEWABLE ENERGY AND ENERGY CONSERVATION TAX ACT OF 2007

    Sec. 10001. Short title; amendment of 1986 Code; table of contents.
                        TITLE XI--PRODUCTION INCENTIVES

    Sec. 11001. Extension and modification of renewable energy credit.
    Sec. 11002. Production credit for electricity produced from marine
                                renewables.
    Sec. 11003. Extension and modification of energy credit.
    Sec. 11004. New clean renewable energy bonds.
    Sec. 11005. Extension and modification of special rule to implement
                                FERC and State electric restructuring
                                policy.
    Sec. 11006. Repeal of dollar limitation and allowance against
                                alternative minimum tax for residential
                                solar and fuel cell property credit.
                            TITLE XII--CONSERVATION

                           Subtitle A--Transportation

    Sec. 12001. Credit for plug-in hybrid vehicles.
    Sec. 12002. Extension and modification of alternative fuel vehicle
                                refueling property credit.
    Sec. 12003. Extension and modification of credits for biodiesel and
                                renewable diesel.
    Sec. 12004. Credit for production of cellulosic alcohol.
    Sec. 12005. Extension of transportation fringe benefit to bicycle
                                commuters.
    Sec. 12006. Modification of limitation on automobile depreciation.
    Sec. 12007. Restructuring of New York Liberty Zone tax credits.
                   Subtitle B--Other Conservation Provisions

    Sec. 12011. Qualified energy conservation bonds.
    Sec. 12012. Qualified residential energy efficiency assistance bonds.
    Sec. 12013. Extension of energy efficient commercial buildings
                                deduction.
    Sec. 12014. Modifications of energy efficient appliance credit for
                                appliances produced after 2007.
    Sec. 12015. Five-year applicable recovery period for depreciation of
                                qualified energy management devices.
                         TITLE XIII--REVENUE PROVISIONS

                 Subtitle A--Denial of Oil and Gas Tax Benefits

    Sec. 13001. Denial of deduction for income attributable to domestic
                                production of oil, natural gas, or primary
                                products thereof.
    Sec. 13002. 7-year amortization of geological and geophysical
                                expenditures for certain major integrated
                                oil companies.
    Sec. 13003. Clarification of determination of foreign oil and gas
                                extraction income.
       Subtitle B--Clarification of Eligibility for Certain Fuel Credits

    Sec. 13011. Clarification of eligibility for renewable diesel credit.
    Sec. 13012. Clarification that credits for fuel are designed to provide
                                an incentive for United States production.
                          TITLE XIV--OTHER PROVISIONS

                              Subtitle A--Studies

    Sec. 14001. Carbon audit of the tax code.
    Sec. 14002. Comprehensive study of biofuels.
    Subtitle B--Application of Certain Labor Standards on Projects Financed
                             Under Tax Credit Bonds

    Sec. 14011. Application of certain labor standards on projects financed
                                under tax credit bonds.

     DIVISION A--NEW DIRECTION FOR ENERGY INDEPENDENCE, NATIONAL SECURITY,
                          AND CONSUMER PROTECTION ACT

                              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 subparagraph (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 subparagraphs (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.

    SEC. 2104. REPORT ON PROGRESS MADE IN PROMOTING TRANSPARENCY IN
                  EXTRACTIVE INDUSTRIES RESOURCE PAYMENTS.

        (a) Purpose.--The purpose of this section is to--
                (1) ensure greater United States energy security by
            combating corruption in the governments of foreign countries
            that receive revenues from the sale of their natural resources,
            and
                (2) enhance the development of democracy and increase
            political and economic stability in such resource-rich foreign
            countries.
        (b) Findings.--Congress makes the following findings:
                (1) The United States is the world's largest consumer of
            oil. The United States accounts for 25 percent of global daily
            oil demand--despite having less than 3 percent of the world's
            proven reserves.
                (2) 6 of the top 10 suppliers of United States crude oil
            imports rank in the bottom third of the world's most corrupt
            countries, according to Transparency International.
                (3) Corrupt and non-transparent foreign governments have a
            much higher risk of instability and violent unrest, often
            leading to disruptions of energy supplies. In addition, the
            citizens of such countries often remain impoverished despite
            significant resource wealth.
                (4) Oil is a fungible commodity. Therefore supply
            disruptions due to political instability in other parts of the
            world affect United States domestic price and supply regardless
            of the source of supply.
                (5) Transparency in extractive revenue transactions is
            important to decreasing corruption and increasing energy
            security.
                (6) The Extractive Industries Transparency Initiative
            (EITI) serves to improve investment climates through the
            audited disclosure of revenue payments.
        (c) Statement of Policy.--It is the policy of the United States--
                (1) to increase energy security by decreasing energy
            reliance on corrupt foreign governments;
                (2) to promote global energy security through promotion of
            programs such as EITI that seek to instill transparency and
            accountability into extractive industries resource payments.
        (d) Sense of Congress.--It is the sense of Congress that the United
    States should further global energy security and promote democratic
    development in resource-rich foreign countries by--
                (1) encouraging further participation in the Extractive
            Industries Transparency Initiative (EITI) by eligible countries
            and companies;
                (2) promoting the efficacy of the EITI program by ensuring
            a robust and candid review mechanism;
                (3) establishing a domestic reporting requirement for all
            companies that purchase natural resources from or make payments
            to government officials or entities connected with the
            extraction of such resources so that citizens can monitor
            expenditures by government officials to ensure accountability
            for illicit diversion and wasteful use of revenues received;
            and
                (4) seeking to establish an international reporting
            requirement similar to the reporting requirement described in
            paragraph (3) in order to ensure that all international
            companies and foreign countries are competing and cooperating
            on a level playing field.
        (e) Report.--
                (1) Report required.--Not later than 180 days after the
            date of the enactment of this Act, and annually thereafter, the
            Secretary of State shall submit to Congress a report on
            progress made in promoting transparency in extractive
            industries resource payments.
                (2) Matters to be included.--The report required by
            paragraph (1) shall include a detailed description of United
            States participation in the Extractive Industries Transparency
            Initiative (EITI), bilateral and multilateral diplomatic
            efforts to further participation in the EITI, and other United
            States initiatives to strengthen energy security, deter energy
            kleptocracy, and promote transparency in the extractive
            industries.

         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 such countries; and
                (2) by deploying the attaches described in paragraph (1) to
            educate provincial, state, and local government officials in
            such countries 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.

    SEC. 2209. REPORT ON IMPACT OF GLOBAL CLIMATE CHANGE ON DEVELOPING
                  COUNTRIES.

        (a) Report Required.--Not later than 180 days after the date of the
    enactment of this Act, the Secretary of State, in consultation with the
    Administrator of the United States Agency for International
    Development, the Administrator of the Environmental Protection Agency,
    and the heads of other appropriate Federal departments and agencies,
    shall submit to the appropriate congressional committees a report on
    the impact of global climate change on developing countries.
        (b) Matters to Be Included.--The report required by subsection (a)
    shall include--
                (1) an assessment of the current and anticipated needs of
            developing countries in adapting to the impact of global
            climate change; and
                (2) a strategy to address the current and anticipated needs
            of developing countries in adapting to the impact of global
            climate change, including the provision of United States
            assistance to developing countries, and an identification of
            existing funding sources and a description of new funding
            sources that will be required specifically for such purposes.

               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

                        PART 1--RESEARCH AND ADVANCEMENT

    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 part:
                (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.

              PART 2--DEVELOPMENT AND USE OF SOLAR ENERGY PRODUCTS

    SEC. 4311. DEFINITIONS.

        For purposes of this part:
                (1) The term ``Board'' means the Solar Energy Industries
            Research and Promotion Board established under section
            4312(b)(1).
                (2) The term ``Committee'' means the Solar Energy Research
            and Promotion Operating Committee established under section
            4312(b)(4).
                (3) The term ``Department'' means the Department of Energy.
                (4) The term ``importer'' means any person who imports
            solar energy products from outside the United States.
                (5) The term ``order'' means a solar energy product
            research and promotion order issued under section 4312.
                (6) The term ``promotion'' means any action to advance the
            image and desirability of solar energy products with the
            express intent of improving the competitive position and
            stimulating sales of solar energy products in the marketplace.
                (7) The term ``Secretary'' means the Secretary of Energy.
                (8) The term ``solar energy products'' means solar water
            heating components and systems and photovoltaic components and
            systems.

    SEC. 4312. SOLAR RESEARCH AND INFORMATION PROGRAM.

        (a) Issuance of Orders.--
                (1) Proposed order.--Not later than 30 days after receipt
            of a proposal for a solar energy product research and promotion
            order, the Secretary shall publish such proposed order and give
            due notice and opportunity for public comment on such proposed
            order. Such proposal may be submitted by any organization
            meeting the requirements for certification under section 4313
            or any interested person, including the Secretary.
                (2) Final order.--After notice and opportunity for public
            comment are given, as provided for in paragraph (1), the
            Secretary shall issue a solar energy product research and
            promotion order. The order shall become effective not later
            than 120 days after publication of the proposed order.
        (b) Required Terms in Orders.--An order issued under subsection (a)
    shall contain the following terms and conditions:
                (1) The order shall provide for the establishment and
            selection of a Solar Energy Industries Research and Promotion
            Board. In addition to nonpermanent members of the Board, there
            shall be two permanent members of the Board, a representative
            chosen by the Secretary and a representative chosen by one of
            the organizations certified under section 4313. Nonpermanent
            members of the Board shall be solar energy products producers
            and importers appointed by the Secretary from--
                        (A) nominations submitted by eligible organizations
                    certified under section 4313; and
                        (B) nominations submitted by importers under such
                    procedures as the Secretary determines appropriate.
             The Secretary shall ensure adequate representation of all
            geographic regions of the United States on the Board.
                (2) The order shall define the powers and duties of the
            Board, which shall be exercised at an annual meeting, and shall
            include only the following powers:
                        (A) To administer the order in accordance with its
                    terms and provisions.
                        (B) To make rules and regulations to effectuate the
                    terms and provisions of the order.
                        (C) To elect members of the Board to serve on the
                    Committee.
                        (D) To approve or disapprove budgets submitted by
                    the Committee.
                        (E) To receive, investigate, and report to the
                    Secretary complaints of violations of the order.
                        (F) To recommend to the Secretary amendments to the
                    order. In addition, the order shall determine the
                    circumstances under which special meetings of the Board
                    may be held.
                (3) The order shall provide that the term of appointment
            for nonpermanent members of the Board shall be 3 years with no
            nonpermanent member serving more than 2 consecutive terms,
            except that initial appointments shall be proportionately for
            1-year, 2-year, and 3-year terms; and that Board members shall
            serve without compensation, but shall be reimbursed for their
            reasonable expenses incurred in performing their duties as
            members of the Board.
                (4)(A) The order shall provide that the Board shall elect
            from its membership 10 members to serve on the Solar Energy
            Research and Promotion Operating Committee.
                (B) The Committee shall develop plans or projects of
            research, information, and promotion which shall be paid for
            with assessments collected by the Board. In developing plans or
            projects, the Committee shall, to the extent practicable,
            ensure that all segments of the solar industry receive fair
            treatment under this part based upon contributions made under
            paragraph (8).
                (C) The Committee shall be responsible for developing and
            submitting to the Board, for its approval, budgets on a fiscal
            year basis of its anticipated expenses and disbursements,
            including probable costs of research, promotion, and
            information projects. The Board shall approve or disapprove
            such budgets and, if approved, shall submit such budget to the
            Secretary for the Secretary's approval.
                (D) The total costs of collection of assessments and
            administrative staff incurred by the Board during any fiscal
            year shall not exceed 5 percent of the projected total
            assessments to be collected by the Board for such fiscal year.
            The Board shall use, to the extent possible, the resources,
            staffs, and facilities of existing organizations.
                (5) The order shall provide that terms of appointment to
            the Committee shall be 1 year, and that no person may serve on
            the Committee for more than 6 consecutive terms. Committee
            members shall serve without compensation, but shall be
            reimbursed for their reasonable expenses incurred in performing
            their duties as members of the Committee. The Committee may
            utilize the resources, staffs, and facilities of the Board and
            industry organizations. An employee of an industry organization
            may not receive compensation for work performed for the
            Committee, but shall be reimbursed from assessments collected
            by the Board for reasonable expenses incurred in performing
            such work.
                (6) The order shall provide that, to ensure coordination
            and efficient use of funds, the Committee shall enter into
            contracts or agreements for implementing and carrying out the
            activities authorized by this part with established national
            nonprofit industry-governed organizations to implement programs
            of research, promotion, and information. In any fiscal year,
            the total assessments available for spending for this program
            (including administrative expenses under paragraph (4)(D))
            shall not exceed 50 percent of the projected total assessments
            for that year. Any such contract or agreement shall provide
            that--
                        (A) the person entering the contract or agreement
                    shall develop and submit to the Committee a plan or
                    project together with a budget or budgets that shows
                    estimated costs to be incurred for the plan or project;
                        (B) the plan or project shall become effective on
                    the approval of the Secretary; and
                        (C) the person entering the contract or agreement
                    shall keep accurate records of all of its transactions,
                    account for funds received and expended, and make
                    periodic reports to the Committee of activities
                    conducted, and such other reports as the Secretary, the
                    Board, or the Committee may require.
                (7) The order shall require the Board and the Committee
            to--
                        (A) maintain such books and records, which shall be
                    available to the Secretary for inspection and audit, as
                    the Secretary may prescribe;
                        (B) prepare and submit to the Secretary, from time
                    to time, such reports as the Secretary may prescribe;
                    and
                        (C) account for the receipt and disbursement of all
                    funds entrusted to them.
                (8)(A) The order shall provide that each manufacturer of a
            solar energy product shall collect an assessment and pay the
            assessment to the Board.
                (B) The order also shall provide that each importer of
            solar energy products shall pay an assessment, in the manner
            prescribed by the order, to the Board.
                (C) The assessments shall be used for payment of the costs
            of plans and projects, as provided for in paragraph (4), and
            expenses in administering the order, including more
            administrative costs incurred by the Secretary after the order
            has been promulgated under this part, and to establish a
            reasonable reserve. The rate of assessment prescribed by the
            order shall be determined by the Secretary in consultation with
            the Solar Energy Industry Association.
                (9) The order shall provide that the Board, with the
            approval of the Secretary, may invest, pending disbursement,
            funds collected through assessments only in obligations of the
            United States or any agency thereof, in any interest-bearing
            account or certificate of deposit of a bank that is a member of
            the Federal Reserve System, or in obligations fully guaranteed
            as to principal and interest by the United States.
                (10) The order shall prohibit any funds collected by the
            Board under the order from being used in any manner for the
            purpose of influencing governmental action or policy, with the
            exception of recommending amendments to the order.
                (11)(A) The order shall require that each manufacturer or
            importer making payment to the Board maintain and make
            available for inspection such books and records as may be
            required by the order and file reports at the time, in the
            manner, and having the content prescribed by the order. Such
            information shall be made available to the Secretary as is
            appropriate to the administration or enforcement of this part.
            All information so obtained shall be kept confidential by all
            officers and employees of the Department, and only such
            information so obtained as the Secretary deems relevant may be
            disclosed by them and then only in a suit or administrative
            hearing brought at the request of the Secretary, or to which
            the Secretary or any officer of the United States is a party,
            and involving the order. Nothing in this paragraph may be
            deemed to prohibit--
                        (i) the issuance of general statements, based on
                    the reports, of the number of entities subject to the
                    order or statistical data collected therefrom, which
                    statements do not identify the information furnished by
                    an person; or
                        (ii) the publication, by direction of the
                    Secretary, of the name of any person violating the
                    order, together with a statement of the particular
                    provisions of the order violated by the person.
                (B) No information obtained under the authority of this
            part may be made available to any agency or officer of the
            United States for any purpose other than the implementation of
            this part and any investigatory or enforcement act necessary
            for the implementation of this part. Any person violating the
            provisions of this paragraph shall be subject to a fine of not
            more than $1,000, or to imprisonment for not more than one
            year, or both, and if an officer or employee of the Board or
            the Department, shall be removed from office.
                (12) The order shall contain terms and conditions, not
            inconsistent with the provisions of this part, as necessary to
            effectuate the provisions of the order.

    SEC. 4313. CERTIFICATION OF ORGANIZATIONS TO NOMINATE.

        (a) Eligibility.--The eligibility of any national, regional, or
    State organization to represent manufacturers and to participate in the
    making of nominations under section 4312(b) shall be certified by the
    Secretary. The Secretary shall certify any organization that the
    Secretary determines meets the eligibility criteria established under
    subsection (b), and such determination as to eligibility shall be
    final.
        (b) Criteria.--An organization may be certified as described in
    subsection (a) if such organization meets all of the following
    eligibility criteria:
                (1) The organization represents a majority of manufacturers
            of solar energy products in the Nation.
                (2) The organization has a history of stability and
            permanency.
                (3) A primary purpose of the organization is to promote the
            economic welfare of the solar energy products industry.
        (c) Basis for Certification.--Certification of an organization
    shall be based upon a factual report submitted by the organization.

    SEC. 4314. REFERENDUM.

        (a) Initial Referendum.--For the purpose of determining whether the
    initial order shall be continued, not later than 48 months after the
    issuance of the order (or any earlier date recommended by the Board),
    the Secretary shall conduct a referendum among persons who have been
    manufacturers or importers of solar energy products during a
    representative period, as determined by the Secretary. The order shall
    be continued only if the Secretary determines that it has been approved
    by not less than a majority of the manufacturers voting in the
    referendum who, during a representative period as determined by the
    Secretary, have been engaged in the manufacturing of solar energy
    products. If continuation of the order is not approved by a majority
    voting in the referendum, the Secretary shall terminate the collection
    of assessments under the order within 6 months after the Secretary
    determines that continuation of the order is not favored by a majority
    voting in the referendum, and shall terminate the order in an orderly
    manner as soon as practicable after such determination.
        (b) Subsequent Referenda.--After the initial referendum, the
    Secretary may conduct a referendum on the request of a representative
    group comprising 25 percent or more of the number of manufacturers of
    solar energy products to determine whether manufacturers favor the
    termination or suspension of the order. The Secretary shall suspend or
    terminate collection of assessments under the order within 6 months
    after the Secretary determines that suspension or termination of the
    order is favored by a majority of the manufacturers voting in the
    referendum who, during a representative period as determined by the
    Secretary, have been engaged in the manufacture of solar energy
    products, and shall terminate or suspend the order in an orderly manner
    as soon as practicable after such determination.
        (c) Procedures.--The Department shall be reimbursed from
    assessments collected by the Board for any expenses incurred by the
    Department in connection with conducting any referendum under this
    section, except for the salaries of Government employees. Any
    referendum conducted under this section shall be conducted on a date
    established by the Secretary, whereby manufacturers shall certify that
    they were engaged in the production of solar energy products during the
    representative period and, on the same day, shall be provided an
    opportunity to vote in the referendum.

    SEC. 4315. REFUNDS.

        (a) In General.--During the period prior to the approval of the
    continuation of an order pursuant to the referendum required under
    section 4314(a), subject to subsection (f) of this section, the Board
    shall--
                (1) establish an escrow account to be used for assessment
            refunds;
                (2) place funds in such account in accordance with
            subsection (b); and
                (3) refund assessments to persons in accordance with this
            section.
        (b) Amounts Placed in Account.--Subject to subsection (f), the
    Board shall place in such account, from assessments collected under
    section 4312 during the period referred to in subsection (a), an amount
    equal to the product obtained by multiplying the total amount of
    assessments collected under section 4312 during such period by 15
    percent.
        (c) Full Refund Election.--Subject to subsections (d), (e), and (f)
    and notwithstanding any other provision of this part, any manufacturer
    or importer shall have the right to demand and receive from the Board a
    one-time refund of all assessments collected under section 4312 from
    such manufacturer or importer during the period referred to in
    subsection (a) if such manufacturer or importer--
                (1) is responsible for paying such assessment; and
                (2) does not support the program established under this
            part.
        (d) Procedure.--Such demand shall be made in accordance with
    regulations, on a form, and within a time period prescribed by the
    Board.
        (e) Proof.--Such refund shall be made on submission of proof
    satisfactory to the Board that the manufacturer or importer--
                (1) paid the assessment for which refund is sought; and
                (2) did not collect such assessment from another
            manufacturer or importer.
        (f) Distribution.--If the amount in the escrow account required to
    be established by subsection (a) is not sufficient to refund the total
    amount of assessments demanded by all eligible persons under this
    section, and the continuation of an order is approved pursuant to the
    referendum required under section 4314(b), the Board shall--
                (1) continue to place in such account, from assessments
            collected under section 4312, the amount required under
            subsection (b), until such time as the Board is able to comply
            with paragraph (2); and
                (2) provide to all eligible persons the total amount of
            assessments demanded by all eligible persons under this
            section.
    If the continuation of an order is not approved pursuant to the
    referendum required under section 4314(b), the Board shall prorate the
    amount of such refunds among all eligible persons who demand such
    refund.

    SEC. 4316. ENFORCEMENT.

        (a) In General.--If the Secretary believes that the administration
    and enforcement of this part or an order would be adequately served by
    such procedure, following an opportunity for an administrative hearing
    on the record, the Secretary may--
                (1) issue an order to restrain or prevent a person from
            violating an order; and
                (2) assess a civil penalty of not more than $25,000 for
            violation of such order.
        (b) Jurisdiction.--The district courts of the United States are
    vested with jurisdiction specifically to enforce, and to prevent and
    restrain a person from violating, an order or regulation made or issued
    under this part.
        (c) Attorney General.--A civil action authorized to be brought
    under this section shall be referred to the Attorney General for
    appropriate action.

    SEC. 4317. INVESTIGATIONS.

        The Secretary may make such investigations as the Secretary deems
    necessary for the effective administration of this part or to determine
    whether any person subject to this part has engaged or is about to
    engage in any act that constitutes or will constitute a violation of
    this part, the order, or any rule or regulation issued under this part.

    SEC. 4318. ADMINISTRATIVE PROVISION.

        The provisions of this part applicable to the order shall be
    applicable to amendments to the order.

                              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.

    SEC. 4417. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.

        (a) Establishment.--The Secretary shall establish a competitive
    grant program, in a geographically diverse manner, for projects
    submitted for consideration by institutions of higher education to
    conduct research and development of renewable energy technologies. Each
    grant made shall not exceed $2,000,000.
        (b) Eligibility.--Priority shall be given to institutions of higher
    education with--
                (1) established programs of research in renewable energy;
                (2) locations that are low income or outside of an
            urbanized area;
                (3) a joint venture with an Indian tribe; and
                (4) proximity to trees dying of disease or insect
            infestation as a source of woody biomass.
        (c) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary $25,000,000 for carrying out this
    section.
        (d) Definitions.--In this section:
                (1) Indian tribe.--The term ``Indian tribe'' has the
            meaning as defined in section 126(c) of the Energy Policy Act
            of 2005.
                (2) Institutions of higher education.--The term
            ``institutions of higher education'' has the meaning as defined
            in section 102(a) of the Higher Education Act of 1965.
                (3) Renewable energy.--The term ``renewable energy'' has
            the meaning as defined in section 902 of the Energy Policy Act
            of 2005.
                (4) Urbanized area.--The term ``urbanized area'' has the
            mean as defined by the U.S. Bureau of the Census.

                     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 Fed. Reg. 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.

                              Subtitle H--H-PRIZE

    SEC. 4701. H-PRIZE.

        Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is
    amended by adding at the end the following new subsection:
        ``(f) H-PRIZE.--
                ``(1) Prize authority.--
                        ``(A) In general.--As part of the program under
                    this section, the Secretary shall carry out a program
                    to competitively award cash prizes in conformity with
                    this subsection to advance the research, development,
                    demonstration, and commercial application of hydrogen
                    energy technologies.
                        ``(B) Advertising and solicitation of
                    competitors.--
                                ``(i) Advertising.--The Secretary shall
                            widely advertise prize competitions under this
                            subsection to encourage broad participation,
                            including by individuals, universities
                            (including historically Black colleges and
                            universities and other minority serving
                            institutions), and large and small businesses
                            (including businesses owned or controlled by
                            socially and economically disadvantaged
                            persons).
                                ``(ii) Announcement through federal
                            register notice.--The Secretary shall announce
                            each prize competition under this subsection by
                            publishing a notice in the Federal Register.
                            This notice shall include essential elements of
                            the competition such as the subject of the
                            competition, the duration of the competition,
                            the eligibility requirements for participation
                            in the competition, the process for
                            participants to register for the competition,
                            the amount of the prize, and the criteria for
                            awarding the prize.
                        ``(C) Administering the competitions.--The
                    Secretary shall enter into an agreement with a private,
                    nonprofit entity to administer the prize competitions
                    under this subsection, subject to the provisions of
                    this subsection (in this subsection referred to as the
                    `administering entity'). The duties of the
                    administering entity under the agreement shall
                    include--
                                ``(i) advertising prize competitions under
                            this subsection and their results;
                                ``(ii) raising funds from private entities
                            and individuals to pay for administrative costs
                            and to contribute to cash prizes, including
                            funds provided in exchange for the right to
                            name a prize awarded under this subsection;
                                ``(iii) developing, in consultation with
                            and subject to the final approval of the
                            Secretary, the criteria for selecting winners
                            in prize competitions under this subsection,
                            based on goals provided by the Secretary;
                                ``(iv) determining, in consultation with
                            the Secretary, the appropriate amount and
                            funding sources for each prize to be awarded
                            under this subsection, subject to the final
                            approval of the Secretary with respect to
                            Federal funding;
                                ``(v) providing advice and consultation to
                            the Secretary on the selection of judges in
                            accordance with paragraph (2)(D), using
                            criteria developed in consultation with and
                            subject to the final approval of the Secretary;
                            and
                                ``(vi) protecting against the administering
                            entity's unauthorized use or disclosure of a
                            registered participant's trade secrets and
                            confidential business information. Any
                            information properly identified as trade
                            secrets or confidential business information
                            that is submitted by a participant as part of a
                            competitive program under this subsection may
                            be withheld from public disclosure.
                        ``(D) Funding sources.--Prizes under this
                    subsection shall consist of Federal appropriated funds
                    and any funds provided by the administering entity
                    (including funds raised pursuant to subparagraph
                    (C)(ii)) for such cash prize programs. The Secretary
                    may accept funds from other Federal agencies for such
                    cash prizes and, notwithstanding section 3302(b) of
                    title 31, United States Code, may use such funds for
                    the cash prize program under this subsection. Other
                    than publication of the names of prize sponsors, the
                    Secretary may not give any special consideration to any
                    private sector entity or individual in return for a
                    donation to the Secretary or administering entity.
                        ``(E) Announcement of prizes.--The Secretary may
                    not issue a notice required by subparagraph (B)(ii)
                    until all the funds needed to pay out the announced
                    amount of the prize have been appropriated or committed
                    in writing by the administering entity. The Secretary
                    may increase the amount of a prize after an initial
                    announcement is made under subparagraph (B)(ii) if--
                                ``(i) notice of the increase is provided in
                            the same manner as the initial notice of the
                            prize; and
                                ``(ii) the funds needed to pay out the
                            announced amount of the increase have been
                            appropriated or committed in writing by the
                            administering entity.
                        ``(F) Sunset.--The authority to announce prize
                    competitions under this subsection shall terminate on
                    September 30, 2018.
                ``(2) Prize categories.--
                        ``(A) Categories.--The Secretary shall establish
                    prizes under this subsection for--
                                ``(i) advancements in technologies,
                            components, or systems related to--
                                        ``(I) hydrogen production;
                                        ``(II) hydrogen storage;
                                        ``(III) hydrogen distribution; and
                                        ``(IV) hydrogen utilization;
                                ``(ii) prototypes of hydrogen-powered
                            vehicles or other hydrogen-based products that
                            best meet or exceed objective performance
                            criteria, such as completion of a race over a
                            certain distance or terrain or generation of
                            energy at certain levels of efficiency; and
                                ``(iii) transformational changes in
                            technologies for the distribution or production
                            of hydrogen that meet or exceed far-reaching
                            objective criteria, which shall include minimal
                            carbon emissions and which may include cost
                            criteria designed to facilitate the eventual
                            market success of a winning technology.
                        ``(B) Awards.--
                                ``(i) Advancements.--To the extent
                            permitted under paragraph (1)(E), the prizes
                            authorized under subparagraph (A)(i) shall be
                            awarded biennially to the most significant
                            advance made in each of the four subcategories
                            described in subclauses (I) through (IV) of
                            subparagraph (A)(i) since the submission
                            deadline of the previous prize competition in
                            the same category under subparagraph (A)(i) or
                            the date of enactment of this subsection,
                            whichever is later, unless no such advance is
                            significant enough to merit an award. No one
                            such prize may exceed $1,000,000. If less than
                            $4,000,000 is available for a prize competition
                            under subparagraph (A)(i), the Secretary may
                            omit one or more subcategories, reduce the
                            amount of the prizes, or not hold a prize
                            competition.
                                ``(ii) Prototypes.--To the extent permitted
                            under paragraph (1)(E), prizes authorized under
                            subparagraph (A)(ii) shall be awarded
                            biennially in alternate years from the prizes
                            authorized under subparagraph (A)(i). The
                            Secretary is authorized to award up to one
                            prize in this category in each 2-year period.
                            No such prize may exceed $4,000,000. If no
                            registered participants meet the objective
                            performance criteria established pursuant to
                            subparagraph (C) for a competition under this
                            clause, the Secretary shall not award a prize.
                                ``(iii) Transformational technologies.--To
                            the extent permitted under paragraph (1)(E),
                            the Secretary shall announce one prize
                            competition authorized under subparagraph
                            (A)(iii) as soon after the date of enactment of
                            this subsection as is practicable. A prize
                            offered under this clause shall be not less
                            than $10,000,000, paid to the winner in a lump
                            sum, and an additional amount paid to the
                            winner as a match for each dollar of private
                            funding raised by the winner for the hydrogen
                            technology beginning on the date the winner was
                            named. The match shall be provided for 3 years
                            after the date the prize winner is named or
                            until the full amount of the prize has been
                            paid out, whichever occurs first. A prize
                            winner may elect to have the match amount paid
                            to another entity that is continuing the
                            development of the winning technology. The
                            Secretary shall announce the rules for
                            receiving the match in the notice required by
                            paragraph (1)(B)(ii). The Secretary shall award
                            a prize under this clause only when a
                            registered participant has met the objective
                            criteria established for the prize pursuant to
                            subparagraph (C) and announced pursuant to
                            paragraph (1)(B)(ii). Not more than $10,000,000
                            in Federal funds may be used for the prize
                            award under this clause. The administering
                            entity shall seek to raise $40,000,000 toward
                            the matching award under this clause.
                        ``(C) Criteria.--In establishing the criteria
                    required by this subsection, the Secretary--
                                ``(i) shall consult with the Department's
                            Hydrogen Technical and Fuel Cell Advisory
                            Committee;
                                ``(ii) shall consult with other Federal
                            agencies, including the National Science
                            Foundation; and
                                ``(iii) may consult with other experts such
                            as private organizations, including
                            professional societies, industry associations,
                            and the National Academy of Sciences and the
                            National Academy of Engineering.
                        ``(D) Judges.--For each prize competition under
                    this subsection, the Secretary in consultation with the
                    administering entity shall assemble a panel of
                    qualified judges to select the winner or winners on the
                    basis of the criteria established under subparagraph
                    (C). Judges for each prize competition shall include
                    individuals from outside the Department, including from
                    the private sector. A judge, spouse, minor children,
                    and members of the judge's household may not--
                                ``(i) have personal or financial interests
                            in, or be an employee, officer, director, or
                            agent of, any entity that is a registered
                            participant in the prize competition for which
                            he or she will serve as a judge; or
                                ``(ii) have a familial or financial
                            relationship with an individual who is a
                            registered participant in the prize competition
                            for which he or she will serve as a judge.
                ``(3) Eligibility.--To be eligible to win a prize under
            this subsection, an individual or entity--
                        ``(A) shall have complied with all the requirements
                    in accordance with the Federal Register notice required
                    under paragraph (1)(B)(ii);
                        ``(B) in the case of a private entity, shall be
                    incorporated in and maintain a primary place of
                    business in the United States, and in the case of an
                    individual, whether participating singly or in a group,
                    shall be a citizen of, or an alien lawfully admitted
                    for permanent residence in, the United States; and
                        ``(C) shall not be a Federal entity, a Federal
                    employee acting within the scope of his employment, or
                    an employee of a national laboratory acting within the
                    scope of his employment.
                ``(4) Intellectual property.--The Federal Government shall
            not, by virtue of offering or awarding a prize under this
            subsection, be entitled to any intellectual property rights
            derived as a consequence of, or direct relation to, the
            participation by a registered participant in a competition
            authorized by this subsection. This paragraph shall not be
            construed to prevent the Federal Government from negotiating a
            license for the use of intellectual property developed for a
            prize competition under this subsection.
                ``(5) Liability.--
                        ``(A) Waiver of liability.--The Secretary may
                    require registered participants to waive claims against
                    the Federal Government and the administering entity
                    (except claims for willful misconduct) for any injury,
                    death, damage, or loss of property, revenue, or profits
                    arising from the registered participants' participation
                    in a competition under this subsection. The Secretary
                    shall give notice of any waiver required under this
                    subparagraph in the notice required by paragraph
                    (1)(B)(ii). The Secretary may not require a registered
                    participant to waive claims against the administering
                    entity arising out of the unauthorized use or
                    disclosure by the administering entity of the
                    registered participant's trade secrets or confidential
                    business information.
                        ``(B) Liability insurance.--
                                ``(i) Requirements.--Registered
                            participants in a prize competition under this
                            subsection shall be required to obtain
                            liability insurance or demonstrate financial
                            responsibility, in amounts determined by the
                            Secretary, for claims by--
                                        ``(I) a third party for death,
                                    bodily injury, or property damage or
                                    loss resulting from an activity carried
                                    out in connection with participation in
                                    a competition under this subsection;
                                    and
                                        ``(II) the Federal Government for
                                    damage or loss to Government property
                                    resulting from such an activity.
                                ``(ii) Federal government insured.--The
                            Federal Government shall be named as an
                            additional insured under a registered
                            participant's insurance policy required under
                            clause (i)(I), and registered participants
                            shall be required to agree to indemnify the
                            Federal Government against third party claims
                            for damages arising from or related to
                            competition activities under this subsection.
                ``(6) Report to congress.--Not later than 60 days after the
            awarding of the first prize under this subsection, and annually
            thereafter, the Secretary shall transmit to the Congress a
            report that--
                        ``(A) identifies each award recipient;
                        ``(B) describes the technologies developed by each
                    award recipient; and
                        ``(C) specifies actions being taken toward
                    commercial application of all technologies with respect
                    to which a prize has been awarded under this
                    subsection.
                ``(7) Authorization of appropriations.--
                        ``(A) In general.--
                                ``(i) Awards.--There are authorized to be
                            appropriated to the Secretary for the period
                            encompassing fiscal years 2008 through 2017 for
                            carrying out this subsection--
                                        ``(I) $20,000,000 for awards
                                    described in paragraph (2)(A)(i);
                                        ``(II) $20,000,000 for awards
                                    described in paragraph (2)(A)(ii); and
                                        ``(III) $10,000,000 for the award
                                    described in paragraph (2)(A)(iii).
                                ``(ii) Administration.--In addition to the
                            amounts authorized in clause (i), there are
                            authorized to be appropriated to the Secretary
                            for each of fiscal years 2008 and 2009
                            $2,000,000 for the administrative costs of
                            carrying out this subsection.
                        ``(B) Carryover of funds.--Funds appropriated for
                    prize awards under this subsection shall remain
                    available until expended, and may be transferred,
                    reprogrammed, or expended for other purposes only after
                    the expiration of 10 fiscal years after the fiscal year
                    for which the funds were originally appropriated. No
                    provision in this subsection permits obligation or
                    payment of funds in violation of section 1341 of title
                    31 of the United States Code (commonly referred to as
                    the Anti-Deficiency Act).
                ``(8) Nonsubstitution.--The programs created under this
            subsection shall not be considered a substitute for Federal
            research and development programs.''.

                          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 sections 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 Fed.
    Reg. 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 subsections:
        ``(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) $250,000,000 for fiscal year 2012.
        ``(l) Continuation of Operations.--
                ``(1) Funding.--The Secretary shall continue to carry out
            this section at the rate of operation in effect on September
            30, 2012, from sums in the Treasury not otherwise appropriated,
            through September 30, 2017.
                ``(2) Authority.--The program and authorities provided
            under this section shall continue in force and effect through
            September 30, 2017.''.

    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.--
                ``(1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary of Agriculture shall make available
            to carry out this section--
                        ``(A) $40,000,000 for fiscal year 2008;
                        ``(B) $60,000,000 for fiscal year 2009;
                        ``(C) $75,000,000 for fiscal year 2010;
                        ``(D) $100,000,000 for fiscal year 2011; and
                        ``(E) $150,000,000 for fiscal year 2012.
                ``(3) Continuation of operations.--
                        ``(A) Funding.--The Secretary shall continue to
                    carry out this section at the rate of operation in
                    effect on September 30, 2012, from sums in the Treasury
                    not otherwise appropriated, through September 30, 2017.
                        ``(B) Authority.--The program and authorities
                    provided under this section shall continue in force and
                    effect through September 30, 2017.''.

    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) $18,000,000 for fiscal year 2008;
                        ``(B) $28,000,000 for fiscal year 2009;
                        ``(C) $40,000,000 for fiscal year 2010;
                        ``(D) $50,000,000 for fiscal year 2011; and
                        ``(E) $100,000,000 for fiscal year 2012.
                ``(2) Continuation of operations.--
                        ``(A) Funding.--The Secretary shall continue to
                    carry out this section at the rate of operation in
                    effect on September 30, 2012, from sums in the Treasury
                    not otherwise appropriated, through September 30, 2017.
                        ``(B) Authority.--The program and authorities
                    provided under this section shall continue in force and
                    effect through September 30, 2017.''.
        (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.--
                ``(1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary of Agriculture shall use to carry
            out this section--
                        ``(A) $150,000,000 for fiscal year 2008;
                        ``(B) $150,000,000 for fiscal year 2009;
                        ``(C) $170,000,000 for fiscal year 2010;
                        ``(D) $180,000,000 for fiscal year 2011; and
                        ``(E) $286,000,000 for fiscal year 2012.
                ``(2) Continuation of operations.--
                        ``(A) Funding.--The Secretary shall continue to
                    carry out this section at the rate of operation in
                    effect on September 30, 2012, from sums in the Treasury
                    not otherwise appropriated, through September 30, 2017.
                        ``(B) Authority.--The program and authorities
                    provided under this section shall continue in force and
                    effect through September 30, 2017.''.

    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.''.

    SEC. 5012. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

        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. 9014. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

        ``(a) Definitions.--In this section:
                ``(1) Bioenergy.--The term `bioenergy' means fuel grade
            ethanol and other biofuel.
                ``(2) Bioenergy producer.--The term `bioenergy producer'
            means a producer of bioenergy that uses an eligible commodity
            to produce bioenergy under this section.
                ``(3) Eligible commodity.--The term `eligible commodity'
            means a form of raw or refined sugar or in-process sugar that
            is eligible to be marketed in the United States for human
            consumption or to be used for the extraction of sugar for human
            consumption.
                ``(4) Eligible entity.--The term `eligible entity' means an
            entity located in the United States that markets an eligible
            commodity in the United States.
        ``(b) Feedstock Flexibility Program.--
                ``(1) In general.--
                        ``(A) Purchases and sales.--For each of fiscal
                    years 2008 through 2012, the Secretary shall purchase
                    eligible commodities from eligible entities and sell
                    such commodities to bioenergy producers for the purpose
                    of producing bioenergy in a manner that ensures that
                    156 of the Federal Agricultural Improvement and Reform
                    Act (7 U.S.C. 7272) is operated at no cost to the
                    Federal Government by avoiding forfeitures to the
                    Commodity Credit Corporation.
                        ``(B) Competitive procedures.--In carrying out the
                    purchases and sales required under subparagraph (A),
                    the Secretary shall, to the maximum extent practicable,
                    use competitive procedures, including the receiving,
                    offering, and accepting of bids, when entering into
                    contracts with eligible entities and bioenergy
                    producers, provided that such procedures are consistent
                    with the purposes of subparagraph (A).
                        ``(C) Limitation.--The purchase and sale of
                    eligible commodities under subparagraph (A) shall only
                    be made in fiscal years in which such purchases and
                    sales are necessary to ensure that the program
                    authorized under section 156 of the Federal Agriculture
                    Improvement and Reform Act (7 U.S.C. 7272) is operated
                    at no cost to the Federal Government by avoiding
                    forfeitures to the Commodity Credit Corporation.
                ``(2) Notice.--
                        ``(A) In general.--Not later than September 1,
                    2007, and each September 1 thereafter through fiscal
                    year 2011, the Secretary shall provide notice to
                    eligible entities and bioenergy producers of the
                    quantity of eligible commodities that shall be made
                    available for purchase and sale for the subsequent
                    fiscal year under this section.
                        ``(B) Reestimates.--Not later than the first day of
                    each of the second through fourth quarters of each of
                    fiscal years 2008 through 2012, the Secretary shall
                    reestimate the quantity of eligible commodities
                    determined under subparagraph (A), and provide notice
                    and make purchases and sales based on such reestimates.
                ``(3) Commodity credit corporation inventory.--To the
            extent that an eligible commodity is owned and held in
            inventory by the Commodity Credit Corporation (accumulated
            pursuant to the program authorized under section 156 of the
            Federal Agriculture Improvement and Reform Act (7 U.S.C.
            7272)), the Secretary shall sell such commodity to bioenergy
            producers under this section.
                ``(4) Transfer rule; storage fees.--
                        ``(A) General transfer rule.--Except as provided in
                    subparagraph (C), the Secretary shall ensure that
                    bioenergy producers that purchase eligible commodities
                    pursuant to this subsection take possession of such
                    commodities within 30 calendar days of the date of such
                    purchase from the Commodity Credit Corporation.
                        ``(B) Payment of storage fees prohibited.--
                                ``(i) In general.--The Secretary shall, to
                            the greatest extent practicable, carry out this
                            subsection in a manner that ensures no storage
                            fees are paid by the Commodity Credit
                            Corporation in the administration of this
                            subsection.
                                ``(ii) Exception.--Clause (i) shall not
                            apply with respect to any commodities owned and
                            held in inventory by the Commodity Credit
                            Corporation (accumulated pursuant to the
                            program authorized under section 156 of the
                            Federal Agriculture Improvement and Reform Act
                            (7 U.S.C. 7272)).
                        ``(C) Option to prevent storage fees.--
                                ``(i) In general.--The Secretary may enter
                            into contracts with bioenergy producers to sell
                            eligible commodities to such producers prior in
                            time to entering into contracts with eligible
                            entities to purchase such commodities to be
                            used to satisfy the contracts entered into with
                            the bioenergy producers.
                                ``(ii) Special transfer rule.--If the
                            Secretary makes a sale and purchase referred to
                            in clause (i), the Secretary shall ensure that
                            the bioenergy producer that purchased eligible
                            commodities takes possession of such
                            commodities within 30 calendar days of the date
                            the Commodity Credit Corporation purchases such
                            commodities.
                ``(5) Relation to other laws.--If sugar that is subject to
            a marketing allotment under part VII of subtitle B of title III
            of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et
            seq.) is the subject of a payment under this section, such
            sugar shall be considered marketed and shall count against a
            processor's allocation of an allotment under such part, as
            applicable.
                ``(6) Funding.--The Secretary shall use the funds,
            facilities, and authorities of the Commodity Credit
            Corporation, including the use of such sums as are necessary,
            to carry out this section.''.

                      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.--
                        ``(A) In general.--No Federal agency shall acquire
                    a light duty motor vehicle or medium duty passenger
                    vehicle that is not a low greenhouse gas emitting
                    vehicle.
                        ``(B) Special rule for vehicles provided by funds
                    contained in members' representational allowance.--If
                    any portion of a Members' Representational Allowance is
                    used to provide any individual with a vehicle described
                    in paragraph (1), including providing an individual
                    with a vehicle under a long-term lease, the House of
                    Representatives shall be considered to have acquired
                    the vehicle for purposes of paragraph (1).
                        ``(C) Definitions.--In this paragraph--
                                ``(i) the term `Federal agency' includes
                            any office of the legislative branch; and
                                ``(ii) the term `Members' Representational
                            Allowance' means the allowance described in
                            section 101(a) of the House of Representatives
                            Administrative Reform Technical Corrections Act
                            (2 U.S.C. 57b(a)).
                ``(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.

                        Subtitle C--Telework Enhancement

    SEC. 6301. SHORT TITLE.

        This subtitle may be cited as the ``Telework Enhancement Act of
    2007''.

    SEC. 6302. FEDERAL GOVERNMENT TELEWORK REQUIREMENT.

        (a) In General.--
                (1) Eligibility.--Within 1 year after the date of enactment
            of this Act, the head of each Executive agency shall establish
            a policy under which each employee of the agency, except as
            provided in subsection (b), shall be eligible to participate in
            telework.
                (2) Participation policy.--The policy shall ensure that
            eligible employees participate in telework to the maximum
            extent possible without diminishing employee performance or
            agency operations.
        (b) Ineligible Employees.--Subsection (a)(1) does not apply to
    executive agency employees whose duties require the daily handling of
    national security or intelligence materials or daily on-site physical
    presence for activity such as necessary contact with special equipment
    or other activity that cannot be handled remotely or at an alternate
    worksite.

    SEC. 6303. TRAINING AND MONITORING.

        The head of each executive agency shall ensure that--
                (1) telework training is incorporated in the agency's new
            employee orientation procedures;
                (2) telework training is provided to managers and all new
            teleworkers; and
                (3) periodic employee reviews are conducted for all
            employees to ascertain whether telework is appropriate for the
            employee's job description and the extent to which it is being
            utilized by the employee.

    SEC. 6304. TELEWORK MANAGING EMPLOYEE.

        (a) In General.--The head of each executive agency shall appoint a
    full time senior level employee of the agency as the Telework Managing
    Officer. The Telework Managing Office shall be established within the
    office of the chief administrative officer or a comparable office with
    similar functions.
        (b) Duties.--The Telework Managing Officer shall--
                (1) serve as liaison between employees engaged in
            teleworking and their employing entity;
                (2) ensure that the organization's telework policy is
            communicated effectively to employees;
                (3) encourage all eligible employees to engage in telework
            to the maximum practicable extent consistent with meeting
            performance requirements and maintaining operations;
                (4) assist the head of the agency in the development and
            maintenance of agencywide telework policies;
                (5) provide assistance and advice in labor-management
            interactions regarding telework;
                (6) educate administrative units on telework policies,
            programs, and training courses;
                (7) provide written notification to each employee of
            specific telework programs and the employee's eligibility for
            those programs;
                (8) focus on expanding and monitoring agency telework
            programs;
                (9) recommend and oversee telework-specific pilot programs
            for employees and managers, including tracking performance and
            monitoring activities;
                (10) develop and administer a telework performance
            reporting system;
                (11) promote and monitor agency and other resources
            necessary for effective teleworking;
                (12) develop telework promotion and incentive programs; and
                (13) assist the head of the agency in designating employees
            to telework to continue agency operations in the event of a
            major disaster (as defined in section 102 of the Robert T.
            Stafford Disaster Relief and Emergency Assistance Act (42
            U.S.C. 5122)).
        (c) Report.--The Telework Managing Officer shall submit a report to
    the head of the employing agency and the Comptroller General at least
    once every 12 months that includes a statement of the applicable
    telework policy, a description of measures in place to carry out the
    policy, and an analysis of the participation by employees of the entity
    in teleworking during the preceding 12-month period.

    SEC. 6305. ANNUAL TELEWORK AGENCY RATING.

        (a) In General.--The Comptroller General shall establish a system
    for evaluating--
                (1) the telework policy of each executive agency; and
                (2) on an annual basis the participation in teleworking by
            their employees.
        (b) Report.--The Comptroller General shall publish a report each
    year rating--
                (1) the telework policy of each entity to which this
            subtitle applies;
                (2) the degree of participation by employees of each such
            entity in teleworking during the 12-month period covered by the
            report;
                (3) for each executive agency--
                        (A) the number of employees in the agency;
                        (B) the number of those employees who are eligible
                    to telework;
                        (C) the number of employees who engage on a regular
                    basis in teleworking; and
                        (D) the number of employees who engage on an
                    occasional or sporadic basis (at least one day per
                    month) in teleworking; and
                (4) for each executive agency, an assessment of agency
            compliance with this subtitle.

    SEC. 6306 DEFINITIONS.

        In this subtitle:
                (1) Employee.--The term ``employee'' has the meaning given
            that term by section 8101(1) of title 5, United States Code.
                (2) Executive agency.--The term ``Executive agency'' has
            the meaning given that term by section 105 of title 5, United
            States Code.
                (3) Telework.--The term ``telework'' means a work
            arrangement in which an employee regularly performs officially
            assigned duties at home or other worksites geographically
            convenient to the residence of the employee that--
                        (A) reduces or eliminates the employee's commute
                    between his or her residence and his or her place of
                    employment; and
                        (B) occurs at least 2 business days per week in at
                    least 48 weeks in a year.

               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 CFR 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
    Secretary concerned may direct a resource advisory committee
    established under section 205 of the Secure Rural Schools and Community
    Self-Determination Act of 2000 (16 U.S.C. 500 note; Public Law 106-
    393), and reauthorized by the amendments made by Public Law 110-28, to
    carry out the requirements of this subsection. 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 No.
            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 Fed. Reg. 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.

    SEC. 7605. REPORT ON STATUS OF REGULATIONS WITH RESPECT TO WIND ENERGY
                  PROJECTS.

        Not later than 30 days after the date of the enactment of this Act,
    the Secretary of the Interior, acting through the Minerals Management
    Service, shall submit a report to Congress on the status of regulations
    required to be issued under section 8(p)(8)) of the Outer Continental
    Shelf Lands Act (43 U.S.C. 1337(p)(8)) with respect to the production
    of wind energy on the Outer Continental Shelf.

                 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, to
            alleviate such problems as railroad pricing that may force
            freight off the more fuel efficient railroads and onto less
            fuel efficient trucks, and to examine the potential fuel
            savings from intelligent transportation systems that help
            businesses and consumers to plan their travel and avoid delays,
            including web-based real-time transit information systems,
            congestion information systems, carpool information systems,
            parking information systems, freight route management, and
            traffic management systems.
                (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, or in the case of subsection (f) of
            such section 5311, intercity bus service, those operating costs
            of equipment and facilities being used to provide the public
            transportation, or in the case of subsection (f) of such
            section 5311, intercity bus service, 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, or in
            the case of subsection (f) of such section 5311, intercity bus
            service, those operating and capital costs of equipment and
            facilities being used to provide the public transportation
            service, or in the case of subsection (f) of such section 5311,
            intercity bus 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''.

    SEC. 8204. CAPITAL COST OF CONTRACTING VANPOOL PILOT PROGRAM.

        (a) Establishment.--The Secretary of Transportation shall establish
    and implement a pilot program to carry out vanpool demonstration
    projects in not more than 3 urbanized areas and not more than 2 other
    than urbanized areas.
        (b) Pilot Program.--
                (1) In general.--Notwithstanding section 5323(i) of title
            49, United States Code, for each project selected for
            participation in the pilot program, the Secretary shall allow
            the non-Federal share provided by a recipient of assistance for
            a capital project under chapter 53 of such title to include the
            amounts described in paragraph (2).
                (2) Conditions on acquisition of vans.--The amount expended
            by a private provider of public transportation by vanpool for
            the acquisition of vans to be used by such private provider in
            the recipient's service area, excluding any amounts the
            provider may have received in Federal, State, or local
            government assistance for such acquisition, if the private
            provider enters into a legally binding agreement with the
            recipient that requires the private provider to use all
            revenues it receives in providing public transportation in such
            service area, in excess of its operating costs, for the purpose
            of acquiring vans to be used by the private provider in such
            service area.
        (c) Program Term.--The Secretary may approve an application for a
    vanpool demonstration project for fiscal years 2008 through 2009.
        (d) Report to Congress.--Not later than 1 year after the date of
    enactment of this Act, the Secretary shall transmit to the Committee on
    Transportation and Infrastructure of the House of Representatives and
    the Committee on Banking, Housing, and Urban Affairs of the Senate, a
    report containing an assessment of the costs, benefits, and
    efficiencies of the vanpool demonstration projects.

                          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).

    SEC. 8655. PROMOTING MAXIMUM EFFICIENCY IN OPERATION OF CAPITOL POWER
                  PLANT.

        (a) Steam Boilers.--
                (1) In general.--The Architect of the Capitol shall take
            such steps as may be necessary to operate the steam boilers at
            the Capitol Power Plant in the most energy efficient manner
            possible to minimize carbon emissions and operating costs,
            including adjusting steam pressures and adjusting the operation
            of the boilers to take into account variations in demand,
            including seasonality, for the use of the system.
                (2) Effective date.--The Architect shall implement the
            steps required under paragraph (1) not later than 30 days after
            the date of the enactment of this Act.
        (b) Chiller Plant.--
                (1) In general.--The Architect of the Capitol shall take
            such steps as may be necessary to operate the chiller plant at
            the Capitol Power Plant in the most energy efficient manner
            possible to minimize carbon emissions and operating costs,
            including adjusting water temperatures and adjusting the
            operation of the chillers to take into account variations in
            demand, including seasonality, for the use of the system.
                (2) Effective date.--The Architect shall implement the
            steps required under paragraph (1) not later than 30 days after
            the date of the enactment of this Act.
        (c) Meters.--Not later than 90 days after the date of the enactment
    of this Act, the Architect of the Capitol shall evaluate the accuracy
    of the meters in use at the Capitol Power Plant and correct them as
    necessary.
        (d) Report on Implementation.--Not later than 180 days after the
    date of the enactment of this Act, the Architect of the Capitol, in
    conjunction with the Chief Administrative Officer of the House of
    Representatives, shall complete the implementation of the requirements
    of this section and submit a report describing the actions taken and
    the energy efficiencies achieved to the Committee on Transportation and
    Infrastructure of the House of Representatives, the Committee on
    Commerce, Science, and Transportation of the Senate, the Committee on
    House Administration of the House of Representatives, and the Committee
    on Rules and Administration of the Senate.

    SEC. 8656. PROMOTING MAXIMUM EFFICIENCY IN OPERATION OF CAPITOL POWER
                  PLANT.

        (a) Steam Boilers and Chiller Plant.--
                (1) In general.--The Architect of the Capitol shall take
            such steps as may be necessary to operate the steam boilers and
            the chiller plant at the Capitol Power Plant in the most energy
            efficient manner possible to minimize carbon emissions and
            operating costs, including adjusting steam pressures, adjusting
            the operation of the boilers, adjusting water temperatures, and
            adjusting the operation of the chillers to take into account
            variations in demand, including seasonality, for the use of the
            systems.
                (2) Effective date.--The Architect shall implement the
            steps required under paragraph (1) not later than 30 days after
            the date of the enactment of this Act.
        (b) Meters.--Not later than 90 days after the date of the enactment
    of this Act, the Architect of the Capitol shall evaluate the accuracy
    of the meters in use at the Capitol Power Plant and correct them as
    necessary.
        (c) Report on Implementation.--Not later than 180 days after the
    date of the enactment of this Act, the Architect of the Capitol, in
    conjunction with the Chief Administrative Officer of the House of
    Representatives, shall complete the implementation of the requirements
    of this section and submit a report describing the actions taken and
    the energy efficiencies achieved to the Committee on Transportation and
    Infrastructure of the House of Representatives, the Committee on
    Commerce, Science, and Transportation of the Senate, the Committee on
    House Administration of the House of Representatives, and the Committee
    on Rules and Administration of the Senate.

       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 eight members who shall be appointed, not later
            than 90 days after the date of enactment of this Act, as
            follows:
                        (A) Two members appointed by the President.
                        (B) Two members appointed by the Speaker of the
                    House of Representatives from a list of four
                    individuals--
                                (i) two nominated for that appointment by
                            the chairman of the Committee on Transportation
                            and Infrastructure of the House of
                            Representatives; and
                                (ii) two nominated for that appointment by
                            the chairman of the Committee Natural Resources
                            of the House of Representatives.
                        (C) Two members appointed by the majority leader of
                    the Senate from a list of four individuals--
                                (i) two nominated for that appointment by
                            the chairman of the Committee on Environment
                            and Public Works of the Senate; and
                                (ii) two 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 two
                    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) One member appointed by the minority leader of
                    the Senate from a list of two 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) A top-loading or front-loading standard-size residential
    clotheswasher 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.
                ``(C) Exception.--Boilers that are manufactured to operate
            without any need for electricity, any electric connection, any
            electric gauges, electric pumps, electric wires, or electric
            devices of any sort, shall not be required to meet the
            requirements of this section.''.

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

                        ``(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.

        Section 325 of the Energy Policy and Conservation Act (42 U.S.C.
    6295) is amended--
                (1) in subsection (u)--
                        (A) by striking paragraphs (2), (3), and (4); and
                        (B) by redesignating paragraph (5), and paragraphs
                    (6) and (7) (as added by this Act) as paragraphs (2),
                    (3), and (4), respectively; and
                (2) by adding at the end the following new subsection:
        ``(ii) Standby Mode Energy Use.--
                ``(1) Definitions.--
                        ``(A) In general.--Unless the Secretary determines
                    otherwise pursuant to subparagraph (B), the definitions
                    in this subsection, for the purpose of this subsection,
                    shall apply:
                                ``(i) The term `active mode' means the
                            condition in which an energy using product is
                            connected to a mains power source, has been
                            activated, and provides one or more main
                            functions.
                                ``(ii) The term `off mode' means the
                            condition in which an energy using product is
                            connected to a mains power source and is not
                            providing any standby or active mode function.
                                ``(iii) The term `standby mode' means the
                            condition in which an energy using product is
                            connected to a mains power source and offers
                            one or more of the following user oriented or
                            protective functions:
                                        ``(I) To facilitate the activation
                                    or deactivation of other functions
                                    (including active mode) by remote
                                    switch (including remote control),
                                    internal sensor, or timer.
                                        ``(II) Continuous functions,
                                    including information or status
                                    displays (including clocks) or sensor-
                                    based functions.
                        ``(B) Amended definitions.--The Secretary may, by
                    rule, amend the definitions under subparagraph (A),
                    taking into consideration the most current versions of
                    Standards 62301 and 62087 of the International
                    Electrotechnical Commission.
                ``(2) Test procedures.--(A) Test procedures for all covered
            products shall be amended pursuant to section 323 to include
            standby mode and off mode energy consumption, taking into
            consideration the most current versions of Standards 62301 and
            62087 of the International Electrotechnical Commission, with
            such energy consumption integrated into the overall energy
            efficiency, energy consumption, or other energy descriptor for
            each covered product, unless the Secretary determines that--
                        ``(i) the current test procedures for a covered
                    product already fully account for and incorporate its
                    standby mode and off mode energy consumption; or
                        ``(ii) such an integrated test procedure is
                    technically infeasible for a particular covered
                    product, whereupon the Secretary shall promulgate a
                    separate standby mode and off mode energy use test
                    procedure for such product, if technically feasible.
                ``(B) The test procedure amendments required by
            subparagraph (A) shall be prescribed in a final rule no later
            than the following dates:
                        ``(i) December 31, 2008, for battery chargers and
                    external power supplies.
                        ``(ii) March 31, 2009, for clothes dryers, room air
                    conditioners, and fluorescent lamp ballasts.
                        ``(iii) June 30, 2009, for residential clothes
                    washers.
                        ``(iv) September 30, 2009, for residential furnaces
                    and boilers.
                        ``(v) March 31, 2010, for residential water
                    heaters, direct heating equipment, and pool heaters.
                        ``(vi) March 31, 2011, for residential dishwashers,
                    ranges and ovens, microwave ovens, and dehumidifiers.
                ``(C) The test procedure amendments adopted pursuant to
            subparagraph (B) shall not be used to determine compliance with
            product standards established prior to the adoption of such
            amended test procedures.
                ``(3) Incorporation into standard.--Based on the test
            procedures required under paragraph (2), any final rule
            establishing or revising a standard for a covered product,
            adopted after July 1, 2010, shall incorporate standby mode and
            off mode energy use into a single amended or new standard,
            pursuant to subsection (o), where feasible. Where not feasible,
            the Secretary shall promulgate within such final rule a
            separate standard for standby mode and off mode energy
            consumption, if justified under subsection (o).''.

    SEC. 9016. BATTERY CHARGERS.

        Section 325(u) is amended--
                (1) in paragraph (1)(E)(i)--
                        (A) by inserting ``(I)'' after ``(E)(i)'';
                        (B) by striking ``battery chargers and'' each place
                    it appears; and
                        (C) by adding at the end the following new
                    subclause:
        ``(II) Not later than July 1, 2011, the Secretary shall issue a
    final rule that prescribes energy conservation standards for battery
    chargers or classes of battery chargers or determine that no energy
    conservation standard is technically feasible and economically
    justified.''; and
                (2) in paragraph (4), by striking ``3 years'' and inserting
            ``2 years''.

    SEC. 9017. WALK-IN COOLERS AND WALK-IN FREEZERS.

        (a) Definitions.--Section 340 of the Energy Policy and Conservation
    Act (42 U.S.C. 6311) is amended--
                (1) in paragraph (1)--
                        (A) by redesignating subparagraphs (G) through (K)
                    as subparagraphs (H) through (L), respectively; and
                        (B) by inserting after subparagraph (F) the
                    following:
                        ``(G) Walk-in coolers and walk-in freezers.'';
                (2) by redesignating paragraphs (20) and (21) as paragraphs
            (21) and (22), respectively; and
                (3) by inserting after paragraph (19) the following:
                ``(20) The terms `walk-in cooler' and `walk-in freezer'
            mean an enclosed storage space refrigerated to temperatures,
            respectively, above and at or below 32 degrees Fahrenheit that
            can be walked into, and has a total chilled storage area of
            less than 3000 square feet. These terms exclude products
            designed and marketed exclusively for medical, scientific, or
            research purposes.''.
        (b) Standards.--Section 342 of the Energy Policy and Conservation
    Act (42 U.S.C. 6313) is amended by adding at the end the following:
        ``(f) Walk-in Coolers and Walk-in Freezers.--(1) Each walk-in
    cooler or walk-in freezer manufactured on or after January 1, 2009,
    shall meet the following specifications:
                ``(A) Have automatic door closers that firmly close all
            walk-in doors that have been closed to within one inch of full
            closure. This requirement does not apply to doors wider than 3
            feet 9 inches or taller than 7 feet.
                ``(B) Have strip doors, spring hinged doors, or other
            method of minimizing infiltration when doors are open.
                ``(C) Contain wall, ceiling, and door insulation of at
            least R-25 for coolers and R-32 for freezers. Door insulation
            requirements do not apply to glazed portions of doors, nor to
            structural members.
                ``(D) Contain floor insulation of at least R-28 for
            freezers.
                ``(E) For evaporator fan motors of under one horsepower and
            less than 460 volts, use either--
                        ``(i) electronically commutated motors (brushless
                    direct current motors); or
                        ``(ii) three-phase motors.
            The portion of the requirement for electronically commuted
            motors shall take effect January 1, 2009, unless, prior to this
            date, the Secretary determines that such motors are only
            available from one manufacturer. The Secretary may also allow
            other types of motors if the Secretary determines that, on
            average, these other motors use no more energy in evaporator
            fan applications than electronically commutated motors. The
            Secretary shall establish this maximum energy consumption level
            no later than January 1, 2010.
                ``(F) For condenser fan motors of under one horsepower,
            use--
                        ``(i) electronically commutated motors;
                        ``(ii) permanent split capacitor-type motors; or
                        ``(iii) three-phase motors.
                ``(G) For all interior lights, use light sources with an
            efficacy of 40 lumens per watt or more, including ballast
            losses (if any). Light sources with an efficacy of 40 lumens
            per watt or less, including ballast losses (if any), may be
            used in conjunction with a timer or device that turns off the
            lights within 15 minutes of when the walk-in cooler or walk-in
            freezer is not occupied.
        ``(2) Each walk-in cooler or walk-in freezer with transparent
    reach-in doors manufactured on or after January 1, 2009, shall also
    meet the following specifications:
                ``(A) Transparent reach-in doors and windows in walk-in
            doors for walk-in freezers shall be of triple-pane glass with
            either heat-reflective treated glass or gas fill.
                ``(B) Transparent reach-in doors for walk-in coolers and
            windows in walk-in doors shall be either--
                        ``(i) double-pane glass with heat-reflective
                    treated glass and gas fill; or
                        ``(ii) triple pane glass with either heat-
                    reflective treated glass or gas fill.
                ``(C) If the appliance has an antisweat heater without
            antisweat heat controls, then the appliance shall have a total
            door rail, glass, and frame heater power draw of no more than
            7.1 watts per square foot of door opening (for freezers) and
            3.0 watts per square foot of door opening (for coolers).
                ``(D) If the appliance has an antisweat heater with
            antisweat heat controls, and the total door rail, glass, and
            frame heater power draw is more than 7.1 watts per square foot
            of door opening (for freezers) and 3.0 watts per square foot of
            door opening (for coolers), then the antisweat heat controls
            shall reduce the energy use of the antisweat heater in an
            amount corresponding to the relative humidity in the air
            outside the door or to the condensation on the inner glass
            pane.
                ``(3) Not later than January 1, 2012, the Secretary shall
            publish performance-based standards for walk-in coolers and
            walk-in freezers that achieve the maximum improvement in energy
            which the Secretary determines is technologically feasible and
            economically justified. Such standards shall apply to products
            manufactured three years after the final rule is published
            unless the Secretary determines, by rule, that three years is
            inadequate, in which case the Secretary may set an effective
            date for products manufactured no greater than five years after
            the date of publication of a final rule for these products.
                ``(4) Not later than January 1, 2020, the Secretary shall
            publish a final rule to determine if the standards established
            under paragraph (3) should be amended. The rule shall provide
            that such standards shall apply to products manufactured three
            years after the final rule is published unless the Secretary
            determines, by rule, that three years is inadequate, in which
            case the Secretary may set an effective date for products
            manufactured no greater than five years after the date of
            publication of a final rule for these products.''.
        (c) 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:
        ``(9) For walk-in coolers and walk-in freezers:
                ``(A) R value is defined as 1/K factor multiplied by the
            thickness of the panel. K factor shall be based on ASTM test
            procedure C518-2004. For calculating R value for freezers, the
            K factor of the foam at 20F (average foam temperature) shall be
            used. For calculating R value for coolers the K factor of the
            foam at 55F (average foam temperature) shall be used.
                ``(B) Not later than January 1, 2010, the Secretary shall
            establish a test procedure to measure the energy-use of walk-in
            coolers and walk-in freezers. Such test procedure may be based
            on computer modeling, if the computer model or models have been
            verified using the results of laboratory tests on a significant
            sample of walk-in coolers and walk-in freezers.''.
        (d) Labeling.--Section 344(e) of the Energy Policy and Conservation
    Act (42 U.S.C. 6315(e)) is amended by inserting ``walk-in coolers and
    walk-in freezers,'' after ``commercial clothes washers,'' each place it
    appears.
        (e) Administration, Penalties, Enforcement, and Preemption.--
    Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 6316),
    is amended--
                (1) by striking ``subparagraphs (B), (C), (D), (E), and
            (F)'' and inserting ``subparagraphs (B), (C), (D), (E), (F),
            and (G)'' each place it appears; and
                (2) by adding at the end the following:
        ``(h)(1)(A)(i) Except as provided in clause (ii) and paragraphs (2)
    and (3), section 327 shall apply to walk-in coolers and walk-in
    freezers for which standards have been established under paragraphs (1)
    and (2) of section 342(f) to the same extent and in the same manner as
    the section applies under part A on the date of enactment of this
    subsection.
        ``(ii) Any State standard issued before the date of enactment of
    this subsection shall not be preempted until the standards established
    under paragraphs (1) and (2) of section 342(f) take effect.
        ``(B) In applying section 327 to the equipment under subparagraph
    (A), paragraphs (1), (2), and (3) of subsection (a) shall apply.
        ``(2)(A) If the Secretary does not issue a final rule for a
    specific type of walk-in cooler or walk-in freezer within the time
    frame specified in section 342(f)(3) or (4), subsections (b) and (c) of
    section 327 shall no longer apply to the specific type of walk-in
    cooler or walk-in freezer for the period beginning on the day after the
    scheduled date for a final rule and ending on the date on which the
    Secretary publishes a final rule covering the specific type of walk-in
    cooler or walk-in freezer.
        ``(B) Any State standard issued before the publication of the final
    rule shall not be preempted until the standards established in the
    final rule take effect.
        ``(3) Any standard issued in the State of California before January
    1, 2011, under Title 20 of the California Code of Regulations, which
    refers to walk-in coolers and walk-in freezers, for which standards
    have been established under paragraphs (1) and (2) of section 342(f),
    shall not be preempted until the standards established under paragraph
    (3) of section 342(f) take effect.''.

                          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.''.

    SEC. 9024. METAL HALIDE LAMP FIXTURES.

        (a) Definitions.--Section 321 of the Energy Policy and Conservation
    Act (42 U.S.C. 6291) is amended by adding at the end the following:
                ``(57) The term `ballast' means a device used with an
            electric discharge lamp to obtain necessary circuit conditions
            (voltage, current, and waveform) for starting and operating.
                ``(58) The term `metal halide lamp' means a high intensity
            discharge lamp in which the major portion of the light is
            produced by radiation of metal halides and their products of
            dissociation, possibly in combination with metallic vapors.
                ``(59) The term `metal halide lamp fixture' means a light
            fixture for general lighting application designed to be
            operated with a metal halide lamp and a ballast for a metal
            halide lamp.
                ``(60) The term `metal halide ballast' means a ballast used
            to start and operate metal halide lamps.
                ``(61) The term `pulse-start metal halide ballast' means an
            electronic or electromagnetic ballast that starts a pulse start
            metal halide lamp with high voltage pulses. Lamps are started
            by first providing a high voltage pulse for ionization of the
            gas to produce a glow discharge. To complete the starting
            process, power is provided by the ballast to sustain the
            discharge through the glow-to-arc transition.
                ``(62) The term `probe-start metal halide ballast' means a
            ballast that starts a probe start metal halide lamp which
            contains a third starting electrode (probe) in the arc tube.
            This ballast does not generally contain an igniter and instead
            starts lamps with high ballast open circuit voltage.
                ``(63) The term `electronic ballast' means a device that
            uses semiconductors as the primary means to control lamp
            starting and operation.
                ``(64) The term `general lighting application' means
            lighting that provides an interior or exterior area with
            overall illumination.
                ``(65) The term `ballast efficiency' for a high intensity
            discharge fixture means the efficiency of a lamp and ballast
            combination, expressed as a percentage, and calculated by
            Efficiency = Pout/Pin, as measured. Pout is the measured
            operating lamp wattage, and Pin is the measured operating input
            wattage. The lamp, and the capacitor when it is provided, is to
            constitute a nominal system in accordance with the ANSI
            Standard C78.43-2004. Pin and Pout are to be measured after
            lamps have been stabilized according to Section 4.4 of ANSI
            Standard C82.6-2005 using a wattmeter with accuracy specified
            in Section 4.5 of ANSI Standard C82.6-2005 for ballasts with a
            frequency of 60 Hz, and shall have a basic accuracy of
            <plus-minus> 0.5 percent at the higher of--
                        ``(A) three times the output operating frequency of
                    the ballast; or
                        ``(B) 2 kHz for ballast with a frequency greater
                    than 60 Hz.
            The Secretary may, by rule, modify this definition if he
            determines that such modification is necessary or appropriate
            to carry out the purposes of this Act.''.
        (b) Coverage.--Section 322(a) of the Energy Policy and Conservation
    Act (42 U.S.C. 6292(a)) is amended--
                (1) by redesignating paragraph (19) as paragraph (20); and
                (2) by inserting after paragraph (18) the following:
                ``(19) Metal halide lamp fixtures.''.
        (c) Test Procedures.--Section 323(c) of the Energy Policy and
    Conservation Act (42 U.S.C. 6293(c)) is amended by adding at the end
    the following:
        ``(17) Test procedures for metal halide lamp ballasts shall be
    based on American National Standards Institute Standard C82.6-2005,
    entitled `Ballasts for High Intensity Discharge Lamps--Method of
    Measurement'.''.
        (d) Labeling.--Section 324(a)(2) of the Energy Policy and
    Conservation Act (42 U.S.C. 6294(a)(2)) is amended--
                (1) by redesignating subparagraphs (C) through (G) as
            subparagraphs (D) through (H), respectively; and
                (2) by inserting after subparagraph (B) the following:
        ``(C) The Commission shall prescribe labeling rules under this
    section applicable to the covered product specified in paragraph (19)
    of section 322(a) and to which standards are applicable under section
    325. Such rules shall provide that the labeling of any metal halide
    lamp fixture manufactured on or after the later of January 1, 2009, or
    nine months after enactment of this subparagraph, will indicate
    conspicuously, in a manner prescribed by the Commission under
    subsection (b) by July 1, 2008, a capital letter `E' printed within a
    circle on the packaging of the fixture, and on the ballast contained in
    such fixture.''.
        (e) Standards.--Section 325 of the Energy Policy and Conservation
    Act (42 U.S.C. 6295) is amended--
                (1) by redesignating subsection (gg) as subsection (hh);
                (2) by inserting after subsection (ff) the following:
        ``(gg) Metal Halide Lamp Fixtures.--
                ``(1)(A) Metal halide lamp fixtures designed to be operated
            with lamps rated greater than or equal to 150 watts but less
            than or equal to 500 watts shall contain--
                        ``(i) a pulse-start metal halide ballast with a
                    minimum ballast efficiency of 88 percent;
                        ``(ii) a magnetic probe-start ballast with a
                    minimum ballast efficiency of 94 percent; or
                        ``(iii) a non-pulse-start electronic ballast with a
                    minimum ballast efficiency of 92 percent for wattages
                    greater than 250 watts and a minimum ballast efficiency
                    of 90 percent for wattages less than or equal to 250
                    watts.
                ``(B) The standards in subparagraph (A) do not apply to
            fixtures with regulated lag ballasts, fixtures that use
            electronic ballasts that operate at 480 volts, or fixtures that
            meet all of the following criteria:
                        ``(i) Rated only for 150 watt lamps.
                        ``(ii) Rated for use in wet locations as specified
                    by the National Electrical Code 2002, Section 410.4(A).
                        ``(iii) Contain a ballast that is rated to operate
                    at ambient air temperatures above 50\o\ C as specified
                    by UL 1029-2001.
                ``(C) The standard in subparagraph (A) shall apply to metal
            halide lamp fixtures manufactured on or after the later of
            January 1, 2009, or 9 months after the date of enactment of
            this subsection.
                ``(2) Not later than January 1, 2012, the Secretary shall
            publish a final rule to determine whether the standards
            established under paragraph (1) should be amended. Such final
            rule shall contain the amended standards, if any, and shall
            apply to products manufactured after January 1, 2015.
                ``(3) Not later than January 1, 2019, the Secretary shall
            publish a final rule to determine whether the standards then in
            effect should be amended. Such final rule shall contain the
            amended standards, if any, and shall apply to products
            manufactured after January 1, 2022.
                ``(4) Notwithstanding any other provision of law, any
            standard established pursuant to this subsection may contain
            both design and performance requirements.''; and
                (3) in subsection (hh), as so redesignated by paragraph (1)
            of this subsection, by striking ``(ff)'' both places it appears
            and inserting ``(gg)''.
        (f) Effect on Other Law.--Section 327(c) of the Energy Policy and
    Conservation Act (42 U.S.C. 6297(c)) is amended--
                (1) by striking the period at the end of paragraph (8)(B)
            and inserting ``; and''; and
                (2) by adding at the end the following:
                ``(9) is a regulation concerning metal halide lamp fixtures
            adopted by the California Energy Commission on or before
            January 1, 2011. If the Secretary fails to issue a final rule
            within 6 months after the deadlines for rulemakings in section
            325(gg) then, notwithstanding any other provision of this
            section, preemption does not apply to a regulation concerning
            metal halide lamp fixtures adopted by the California Energy
            Commission on or before July 1, 2015, if the Secretary misses
            the deadline specified in paragraph (2) of section 325(gg), or
            on or before July 1, 2022, if the Secretary misses the deadline
            specified in paragraph (3) of section 325(gg).''.

                    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. Any such
    modified code or standard shall achieve the maximum level of energy
    savings that are technically feasible and economically justified,
    incorporating available appliances, technologies, materials, and
    construction practices. 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. Such standards
    shall be established after notice and an opportunity for comment by
    manufacturers of manufactured housing and other interested parties, and
    after consultation with the Secretary of Housing and Urban Development
    who may seek further counsel from the Manufactured Housing Consensus
    Committee.
        (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 ``$1,200,000,000 for
    fiscal year 2007, and $1,400,000,000 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.
    In implementing the Alternative Delivery System Pilot Project, the
    Secretary shall consider: (1) the expected effectiveness and benefits
    of the proposed Pilot Project to low- and moderate-income energy
    consumers; (2) the potential for replication of successful results; (3)
    the impact on the energy costs of those served; and (4) the extent of
    partnerships with other public and private entities that contribute to
    the resources and implementation of the program, including financial
    partnerships. Funding for such projects may equal up to two percent of
    funding in any fiscal year, provided that no funding is utilized for
    such demonstrations in any fiscal year in which Weatherization
    appropriations are less than $275,000,000''.
        (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.

    SEC. 9035. RENEWABLE ENERGY REBATE PROGRAM STUDY.

        Not later than 120 days after the date of enactment of this Act,
    the Secretary of Energy shall conduct, and transmit to Congress a
    report on, a study regarding the rebate program described in section
    206(c) of the Energy Policy Act of 2005. The study shall--
                (1) develop a plan for how such a rebate program would be
            carried out if it were funded; and
                (2) determine the minimum amount of funding the program
            would need to receive in order to accomplish the goal of
            encouraging consumers to install renewable energy systems in
            their homes or small businesses.

               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 than section 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 in
    section 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 in section 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 in section 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 out section 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.

    SEC. 9053. GEOTHERMAL HEAT PUMP TECHNOLOGY ACCELERATION PROGRAM.

        (a) Definitions.--In this section:
                (1) Administrator.--The term ``Administrator'' means the
            Administrator of General Services.
                (2) General services administration facility.--
                        (A) In general.--The term ``General Services
                    Administration facility'' means any building,
                    structure, or facility, in whole or in part (including
                    the associated support systems of the building,
                    structure, or facility), that--
                                (i) is constructed (including facilities
                            constructed for lease), renovated, or
                            purchased, in whole or in part, by the
                            Administrator for use by the Federal
                            Government; or
                                (ii) is leased, in whole or in part, by the
                            Administrator for use by the Federal
                            Government--
                                        (I) except as provided in subclause
                                    (II), for a term of not less than 5
                                    years; or
                                        (II) for a term of less than 5
                                    years, if the Administrator determines
                                    that use of cost-effective technologies
                                    and practices would result in the
                                    payback of expenses.
                        (B) Inclusion.--The term ``General Services
                    Administration facility'' includes any group of
                    buildings, structures, or facilities described in
                    subparagraph (A) (including the associated energy-
                    consuming support systems of the buildings, structures,
                    and facilities).
                        (C) Exemption.--The Administrator may exempt from
                    the definition of ``General Services Administration
                    facility'' under this paragraph a building, structure,
                    or facility that meets the requirements of section
                    543(c) of Public Law 95-619 (42 U.S.C. 8253(c)).
        (b) Establishment.--
                (1) In general.--The Administrator shall establish a
            program to accelerate the use of geothermal heat pumps at
            General Services Administration facilities.
                (2) Requirements.--The program established under this
            subsection shall--
                        (A) ensure centralized responsibility for the
                    coordination of geothermal heat pump recommendations,
                    practices, and activities of all relevant Federal
                    agencies;
                        (B) provide technical assistance and operational
                    guidance to applicable tenants to achieve the goal
                    identified in subsection (c)(2)(B)(ii); and
                        (C) establish methods to track the success of
                    Federal departments and agencies with respect to that
                    goal.
        (c) Accelerated Use of Geothermal Heat Pump Technologies.--
                (1) Review.--
                        (A) In general.--As part of the program under this
                    section, not later than 90 days after the date of
                    enactment of this Act, the Administrator shall conduct
                    a review of--
                                (i) current use of geothermal heat pump
                            technologies in General Services Administration
                            facilities; and
                                (ii) the availability to managers of
                            General Services Administration facilities of
                            geothermal heat pumps.
                        (B) Requirements.--The review under subparagraph
                    (A) shall--
                                (i) examine the use of geothermal heat
                            pumps by Federal agencies in General Services
                            Administration facilities; and
                                (ii) as prepared in consultation with the
                            Administrator of the Environmental Protection
                            Agency, identify geothermal heat pump
                            technology standards that could be used for all
                            types of General Services Administration
                            facilities.
                (2) Replacement.--
                        (A) In general.--As part of the program under this
                    section, not later than 180 days after the date of
                    enactment of this Act, the Administrator shall
                    establish, using available appropriations, a geothermal
                    heat pump technology acceleration program to achieve
                    maximum feasible replacement of existing heating and
                    cooling technologies with geothermal heat pump
                    technologies in each General Services Administration
                    facility.
                        (B) Acceleration plan timetable.--
                                (i) In general.--To implement the program
                            established under subparagraph (A), not later
                            than 1 year after the date of enactment of this
                            Act, the Administrator shall establish a
                            timetable, including milestones for specific
                            activities needed to replace existing heating
                            and cooling technologies with geothermal heat
                            pump technologies, to the maximum extent
                            feasible (including at the maximum rate
                            feasible), at each General Services
                            Administration facility.
                                (ii) Goal.--The goal of the timetable under
                            clause (i) shall be to complete, using
                            available appropriations, maximum feasible
                            replacement of existing heating and cooling
                            technologies with geothermal heat pump
                            technologies by not later than the date that is
                            5 years after the date of enactment of this
                            Act.
        (d) General Services Administration Facility Geothermal Heat Pump
    Technologies and Practices.-- Not later than 180 days after the date of
    enactment of this Act, and annually thereafter, the Administrator
    shall--
                (1) ensure that a manager responsible for accelerating the
            use of geothermal heat pump technologies is designated for each
            General Services Administration facility geothermal heat pump
            technologies and practices facility; and
                (2) submit to Congress a plan, to be implemented to the
            maximum extent feasible (including at the maximum rate
            feasible) using available appropriations, by not later than the
            date that is 5 years after the date of enactment of this Act,
            that--
                        (A) includes an estimate of the funds necessary to
                    carry out this section;
                        (B) describes the status of the implementation of
                    geothermal heat pump technologies and practices at
                    General Services Administration facilities, including--
                                (i) the extent to which programs, including
                            the program established under subsection (b),
                            are being carried out in accordance with this
                            Act; and
                                (ii) the status of funding requests and
                            appropriations for those programs;
                        (C) identifies within the planning, budgeting, and
                    construction processes, all types of General Services
                    Administration facility-related procedures that inhibit
                    new and existing General Services Administration
                    facilities from implementing geothermal heat pump
                    technologies;
                        (D) recommends language for uniform standards for
                    use by Federal agencies in implementing geothermal heat
                    pump technologies and practices;
                        (E) in coordination with the Office of Management
                    and Budget, reviews the budget process for capital
                    programs with respect to alternatives for--
                                (i) permitting Federal agencies to retain
                            all identified savings accrued as a result of
                            the use of geothermal heat pump technologies;
                            and
                                (ii) identifying short- and long-term cost
                            savings that accrue from the use of geothermal
                            heat pump technologies and practices;
                        (F) achieves substantial operational cost savings
                    through the application of geothermal heat pump
                    technologies; and
                        (G) includes recommendations to address each of the
                    matters, and a plan for implementation of each
                    recommendation, described in subparagraphs (A) through
                    (F).
        (e) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section, to
    remain available until expended.

    SEC. 9054. GREEN MEETINGS.

        (a) Purchase of Meeting and Conference Services.--Not later than
    180 days after the date of the enactment of this Act, the Administrator
    for Federal Procurement Policy shall ensure that the Federal
    Acquisition Regulation is revised to require each Federal agency to
    consider, in each purchase of meeting and conference services, the
    environmentally preferable features and practices of a vendor in a
    manner substantially similar to that required of the Environmental
    Protection Agency in section 1523.703-1 (relating to acquisition of
    environmentally preferable meeting and conference services) and section
    1552.223-71 (relating to EPA Green Meetings and Conferences) of title
    48, Code of Federal Regulations, as set forth in the Environmental
    Protection Agency final rule published on pages 18401 through 18404 of
    volume 72, Federal Register (April 12, 2007).
        (b) Definitions.--In this section--
                (1) the terms ``environmentally preferable'' and ``Federal
            agency'' have the meanings given them by section 2.101 of the
            Federal Acquisition Regulation; and
                (2) the term ``meeting and conference services'' means the
            use of off-site commercial facilities for a Federal agency
            event, including an event for a meeting, conference, training
            session, or other purpose.

    SEC. 9055. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS FOR INSTITUTIONS
                  OF HIGHER EDUCATION.

        Part G of title III of the Energy Policy and Conservation Act is
    amended by inserting after section 399 (42 U.S.C. 371h) the following:

    ``SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS FOR
                  INSTITUTIONS OF HIGHER EDUCATION.

        ``(a) Definitions.--In this section:
                ``(1) Energy sustainability.--The term `energy
            sustainability' includes using a renewable energy resource and
            a highly efficient technology for electricity generation,
            transportation, heating, or cooling.
                ``(2) Institution of higher education.--The term
            `institution of higher education' has the meaning given the
            term in section 2 of the Energy Policy Act of 2005 (42 U.S.C.
            15801).
        ``(b) Grants for Energy Efficiency Improvement.--
                ``(1) In general.--The Secretary shall award not more than
            100 grants per year to institutions of higher education to
            carry out projects to improve energy efficiency on the grounds
            and facilities of the institution of higher education,
            including not less than 1 grant to an institution of higher
            education in each State.
                ``(2) Condition.--As a condition of receiving a grant under
            this subsection, an institution of higher education shall agree
            to--
                        ``(A) implement a public awareness campaign
                    concerning the project in the community in which the
                    institution of higher education is located; and
                        ``(B) submit to the Secretary, and make available
                    to the public, reports on any efficiency improvements,
                    energy cost savings, and environmental benefits
                    achieved as part of a project carried out under
                    paragraph (1).
        ``(c) Grants for Innovation in Energy Sustainability.--
                ``(1) In general.--The Secretary shall award not more than
            250 grants per year to institutions of higher education to
            engage in innovative energy sustainability projects, including
            not less than 2 grants to institutions of higher education in
            each State.
                ``(2) Innovation projects.--An innovation project carried
            out with a grant under this subsection shall--
                        ``(A) involve--
                                ``(i) an innovative technology that is not
                            yet commercially available; or
                                ``(ii) available technology in an
                            innovative application that maximizes energy
                            efficiency and sustainability;
                        ``(B) have the greatest potential for testing or
                    demonstrating new technologies or processes; and
                        ``(C) ensure active student participation in the
                    project, including the planning, implementation,
                    evaluation, and other phases of the project.
                ``(3) Condition.--As a condition of receiving a grant under
            this subsection, an institution of higher education shall agree
            to submit to the Secretary, and make available to the public,
            reports that describe the results of the projects carried out
            under paragraph (1).
        ``(d) Awarding of Grants.--
                ``(1) Application.--An institution of higher education that
            seeks to receive a grant under this section may submit to the
            Secretary an application for the grant at such time, in such
            form, and containing such information as the Secretary may
            prescribe.
                ``(2) Selection.--The Secretary shall establish a committee
            to assist in the selection of grant recipients under this
            section.
        ``(e) Allocation to Institutions of Higher Education With Small
    Endowments.--Of the amount of grants provided for a fiscal year under
    this section, the Secretary shall provide not less than 50 percent of
    the amount to institutions of higher education that have an endowment
    of not more than $100,000,000, with 50 percent of the allocation set
    aside for institutions of higher education that have an endowment of
    not more than $50,000,000.
        ``(f) Grant Amounts.--The maximum amount of grants for a project
    under this section shall not exceed--
                ``(1) in the case of grants for energy efficiency
            improvement under subsection (b), $1,000,000; or
                ``(2) in the case of grants for innovation in energy
            sustainability under subsection (c), $500,000.
        ``(g) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2008 through 2012.''.

                      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''.

    SEC. 9077. STUDY ON INDOOR ENVIRONMENTAL QUALITY IN SCHOOLS.

        (a) In General.--The Administrator of the Environmental Protection
    Agency shall enter into an arrangement with the Secretary of Education
    and the Secretary of Energy to conduct a detailed study of how
    sustainable building features such as energy efficiency affect multiple
    perceived indoor environmental quality stressors on students in K-12
    schools.
        (b) Contents.--The study shall--
                (1) investigate synergistic effects of multiple perceived
            stressors, including thermal discomfort, visual discomfort,
            acoustical dissatisfaction such as noise and loss of speech
            privacy, and air quality dissatisfaction;
                (2) identify how sustainable building features, such as
            energy efficiency, are influencing these human outcomes singly
            and in concert; and
                (3) ensure that the impacts of the indoor environmental
            quality are evaluated as a whole.
        (c) Authorization of Appropriations.--There are authorized to be
    appropriated for carrying out this section $200,000 for each of the
    fiscal years 2008 through 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 et seq.), 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;
                                ``(v) allowing timely recovery of energy
                            efficiency-related costs; and
                                ``(vi) offering home energy audits,
                            publicizing the financial and environmental
                            benefits associated with making home energy
                            efficiency improvements, and educating
                            homeowners about all existing Federal and State
                            incentives, including the availability of low-
                            cost loans, that make home energy efficiency
                            improvements more affordable.
                ``(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) Double Counting.--No person that receives a credit under
    section 30C of the Internal Revenue Code of 1986 may receive assistance
    under this section.
        (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
                    CFR, 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) Five-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, improvements
    in data on solid byproducts from coal-based energy-producing
    facilities, 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.

                       Subtitle G--Natural Gas Utilities

    SEC. 9511. NATURAL GAS UTILITIES.

        (a) In General.--Section 303(b) of the Public Utility Regulatory
    Policies Act of 1978 (15 U.S.C. 3203(b)) is amended by adding at the
    end the following:
                ``(5) Energy efficiency.--Each natural gas utility shall--
                        ``(A) integrate energy efficiency resources into
                    the plans and planning processes of the natural gas
                    utility; and
                        ``(B) adopt policies that establish energy
                    efficiency as a priority resource in the plans and
                    planning processes of the natural gas utility.
            For purposes of applying the provisions of this subtitle to
            this paragraph, any reference in this subtitle to the date of
            enactment of this Act shall be treated as a reference to the
            date of the enactment of this paragraph.
                ``(6) Rate policy modifications to promote energy
            efficiency investments.--
                        ``(A) In general.--The rates allowed to be charged
                    by a natural gas utility shall align utility incentives
                    with the deployment of cost-effective energy
                    efficiency.
                        ``(B) Policy options.--In complying with
                    subparagraph (A), each State regulatory authority and
                    each nonregulated utility shall consider--
                                ``(i) ensuring that utilities' recovery of
                            authorized revenues is independent of the
                            amount of customers' natural gas consumption;
                                ``(ii) providing to utilities incentives
                            for the successful management of energy
                            efficiency programs, such as allowing utilities
                            to retain a portion of the cost-reducing
                            benefits accruing from the programs;
                                ``(iii) promoting the impact on adoption of
                            energy efficiency as 1 of the goals of retail
                            rate design, recognizing that energy efficiency
                            must be balanced with other objectives; and
                                ``(iv) adopting rate designs that encourage
                            energy efficiency for each customer class.
                    For purposes of applying the provisions of this
                    subtitle to this paragraph, any reference in this
                    subtitle to the date of enactment of this Act shall be
                    treated as a reference to the date of the enactment of
                    this paragraph.''.
        (b) Conforming Amendment.--Section 303(b)(2) of such Act is amended
    by striking ``and (4)'' inserting ``(4), (5), and (6)'' in lieu
    thereof.

                Subtitle H--Federal Renewable Portfolio Standard

    SEC. 9611. FEDERAL RENEWABLE PORTFOLIO STANDARD.

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

    ``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

        ``(a) Definitions.--For purposes of this section:
                ``(1) Biomass.--
                        ``(A) In general.--The term `biomass' means--
                                ``(i) cellulosic (plant fiber) organic
                            materials from a plant that is planted for the
                            purpose of being used to produce energy; or
                                ``(ii) nonhazardous, plant or algal matter
                            that is derived from any of the following:
                                        ``(I) An agricultural crop, crop
                                    byproduct or residue resource.
                                        ``(II) Waste such as landscape or
                                    right-of-way trimmings (but not
                                    including municipal solid waste,
                                    recyclable postconsumer waste paper,
                                    painted, treated, or pressurized wood,
                                    wood contaminated with plastic or
                                    metals).
                                        ``(III) Gasified animal waste.
                                        ``(IV) Landfill methane.
                        ``(B) National forest lands and certain other
                    public lands.--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 (i)
                    ecological forest restoration; (ii) pre-commercial
                    thinnings; (iii) brush; (iv) mill residues; and (v)
                    slash.
                        ``(C) Exclusion of certain federal lands.--
                    Notwithstanding subparagraph (B), material or matter
                    that would otherwise qualify as biomass are not
                    included in the term biomass if they are located on the
                    following Federal lands:
                                ``(i) Federal land containing old growth
                            forest or late successional forest unless the
                            Secretary of the Interior or the Secretary of
                            Agriculture determines that the removal of
                            organic material from such land is appropriate
                            for the applicable forest type and maximizes
                            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.
                                ``(ii) Federal land on which the removal of
                            vegetation is prohibited, including components
                            of the National Wilderness Preservation System.
                                ``(iii) Wilderness Study Areas.
                                ``(iv) Inventoried roadless areas.
                                ``(v) Components of the National Landscape
                            Conservation System.
                                ``(vi) National Monuments.
                ``(2) Eligible facility.--The term `eligible facility'
            means--
                        ``(A) a facility for the generation of electric
                    energy from a renewable energy resource that is placed
                    in service on or after January 1, 2001; or
                        ``(B) a repowering or cofiring increment.
                ``(3) Existing facility.--The term `existing facility'
            means a facility for the generation of electric energy from a
            renewable energy resource that is not an eligible facility.
                ``(4) Incremental hydropower.--The term `incremental
            hydropower' means additional generation that is achieved from
            increased efficiency or additions of capacity made on or after
            January 1, 2001, or the effective date of an existing
            applicable State renewable portfolio standard program at a
            hydroelectric facility that was placed in service before that
            date.
                ``(5) Indian land.--The term `Indian land' means--
                        ``(A) any land within the limits of any Indian
                    reservation, pueblo, or rancheria;
                        ``(B) any land not within the limits of any Indian
                    reservation, pueblo, or rancheria title to which was on
                    the date of enactment of this paragraph either held by
                    the United States for the benefit of any Indian tribe
                    or individual or held by any Indian tribe or individual
                    subject to restriction by the United States against
                    alienation;
                        ``(C) any dependent Indian community; or
                        ``(D) any land conveyed to any Alaska Native
                    corporation under the Alaska Native Claims Settlement
                    Act.
                ``(6) Indian tribe.--The term `Indian tribe' means any
            Indian tribe, band, nation, or other organized group or
            community, including any Alaskan Native village or regional or
            village corporation as defined in or established pursuant to
            the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
            seq.), which is recognized as eligible for the special programs
            and services provided by the United States to Indians because
            of their status as Indians.
                ``(7) Renewable energy.--The term `renewable energy' means
            electric energy generated by a renewable energy resource.
                ``(8) Renewable energy resource.--The term `renewable
            energy resource' means solar (including solar water heating),
            wind, ocean, tidal, geothermal energy, biomass, landfill gas,
            or incremental hydropower.
                ``(9) Repowering or cofiring increment.--The term
            `repowering or cofiring increment' means--
                        ``(A) the additional generation from a modification
                    that is placed in service on or after January 1, 2001,
                    to expand electricity production at a facility used to
                    generate electric energy from a renewable energy
                    resource or to cofire biomass that was placed in
                    service before the date of enactment of this section;
                    or
                        ``(B) the additional generation above the average
                    generation in the 3 years preceding the date of
                    enactment of this section at a facility used to
                    generate electric energy from a renewable energy
                    resource or to cofire biomass that was placed in
                    service before the date of enactment of this section.
                ``(10) Retail electric supplier.--The term `retail electric
            supplier' means a person that sells electric energy to electric
            consumers (other than consumers in Hawaii) that sold not less
            than 1,000,000 megawatt-hours of electric energy to electric
            consumers for purposes other than resale during the preceding
            calendar year; except that such term does not include the
            United States, a State or any political subdivision of a State,
            or any agency, authority, or instrumentality of any one or more
            of the foregoing, or a rural electric cooperative.
                ``(11) Retail electric supplier's base amount.--The term
            `retail electric supplier's base amount' means the total amount
            of electric energy sold by the retail electric supplier,
            expressed in terms of kilowatt hours, to electric customers for
            purposes other than resale during the most recent calendar year
            for which information is available, excluding--
                        ``(A) electric energy that is not incremental
                    hydropower generated by a hydroelectric facility; and
                        ``(B) electricity generated through the
                    incineration of municipal solid waste.
        ``(b) Compliance.--For each calendar year beginning in calendar
    year 2010, each retail electric supplier shall meet the requirements of
    subsection (c) by submitting to the Secretary, not later than April 1
    of the following calendar year, one or more of the following:
                ``(1) Federal renewable energy credits issued under
            subsection (e).
                ``(2) Federal energy efficiency credits issued under
            subsection (i), except that Federal energy efficiency credits
            may not be used to meet more than 27 percent of the
            requirements of subsection (c) in any calendar year.
                ``(3) Certification of the renewable energy generated and
            electricity savings pursuant to the funds associated with State
            compliance payments as specified in subsection (e)(3)(G).
                ``(4) Alternative compliance payments pursuant to
            subsection (j).
        ``(c) Required Annual Percentage.--For calendar years 2010 through
    2039, the required annual percentage of the retail electric supplier's
    base amount that shall be generated from renewable energy resources, or
    otherwise credited towards such percentage requirement pursuant to
    subsection (d), shall be the percentage specified in the following
    table:

                                                            Required annual
    ``Calendar Years                                             percentage
                    2010.......................................        2.75
                    2011.......................................        2.75
                    2012.......................................        3.75
                    2013.......................................         4.5
                    2014.......................................         5.5
                    2015.......................................         6.5
                    2016.......................................         7.5
                    2017.......................................        8.25
                    2018.......................................       10.25
                    2019.......................................       12.25
                    2020 and thereafter through 2039...........          15
        ``(d) Renewable Energy and Energy Efficiency Credits.--(1) A retail
    electric supplier may satisfy the requirements of subsection (b)(1)
    through the submission of Federal renewable energy credits--
                ``(A) issued to the retail electric supplier under
            subsection (e);
                ``(B) obtained by purchase or exchange under subsection (f)
            or (g); or
                ``(C) borrowed under subsection (h).
        ``(2) A retail electric supplier may satisfy the requirements of
    subsection (b)(2) through the submission of Federal energy efficiency
    credits issued to the retail electric supplier obtained by purchase or
    exchange pursuant to subsection (i).
        ``(3) A Federal renewable energy credit may be counted toward
    compliance with subsection (b)(1) only once. A Federal energy
    efficiency credit may be counted toward compliance with subsection
    (b)(2) only once.
        ``(e) Issuance of Credits.--(1) The Secretary shall establish by
    rule, not later than 1 year after the date of enactment of this
    section, a program to verify and issue Federal renewable energy credits
    to generators of renewable energy, track their sale, exchange and
    retirement and to enforce the requirements of this section. To the
    extent possible, in establishing such program, the Secretary shall rely
    upon existing and emerging State or regional tracking systems that
    issue and track non-Federal renewable energy credits.
        ``(2) An entity that generates electric energy through the use of a
    renewable energy resource may apply to the Secretary for the issuance
    of renewable energy credits. The applicant must demonstrate that the
    electric energy will be transmitted onto the grid or, in the case of a
    generation offset, that the electric energy offset would have otherwise
    been consumed on site. The application shall indicate--
                ``(A) the type of renewable energy resource used to produce
            the electricity;
                ``(B) the location where the electric energy was produced;
            and
                ``(C) any other information the Secretary determines
            appropriate.
        ``(3)(A) Except as provided in subparagraphs (B), (C), and (D), the
    Secretary shall issue to a generator of electric energy one Federal
    renewable energy credit for each kilowatt hour of electric energy
    generated by the use of a renewable energy resource at an eligible
    facility.
        ``(B) For purpose of compliance with this section, Federal
    renewable energy credits for incremental hydropower shall be based, on
    the increase in average annual generation resulting from the efficiency
    improvements or capacity additions. The incremental generation shall be
    calculated using the same water flow information used to determine a
    historic average annual generation baseline for the hydroelectric
    facility and certified by the Secretary or the Federal Energy
    Regulatory Commission. The calculation of the Federal renewable energy
    credits for incremental hydropower shall not be based on any
    operational changes at the hydroelectric facility not directly
    associated with the efficiency improvements or capacity additions.
        ``(C) The Secretary shall issue 2 renewable energy credits for each
    kilowatt hour of electric energy generated and supplied to the grid in
    that calendar year through the use of a renewable energy resource at an
    eligible facility located on Indian land. For purposes of this
    paragraph, renewable energy generated by biomass cofired with other
    fuels is eligible for two credits only if the biomass was grown on such
    land.
        ``(D) For electric energy generated by a renewable energy resource
    at an on-site eligible facility and used to offset part or all of the
    customer's requirements for electric energy, the Secretary shall issue
    3 renewable energy credits to such customer for each kilowatt hour
    generated.
        ``(E) If both a renewable energy resource and a non-renewable
    energy resource are used to generate the electric energy, the Secretary
    shall issue the Federal renewable energy credits based on the
    proportion of the renewable energy resources used.
        ``(F) When a generator has sold electric energy generated through
    the use of a renewable energy resource to a retail electric supplier
    under a contract for power from an existing facility, and the contract
    has not determined ownership of the Federal renewable energy credits
    associated with such generation, the Secretary shall issue such Federal
    renewable energy credits to the retail electric supplier for the
    duration of the contract.
        ``(G) Payments made by a retail electricity supplier, directly or
    indirectly, to a State for compliance with a State renewable portfolio
    standard program, or for an alternative compliance mechanism, shall be
    valued for the purpose of subsection (b)(2) based on the amount of
    electric energy generation from renewable resources and electricity
    savings that results from those payments.
        ``(f) Existing Facilities.--The Secretary shall ensure that a
    retail electric supplier that acquires Federal renewable energy credits
    associated with the generation of renewable energy from an existing
    facility may use such credits for purpose of its compliance with
    subsection (b)(1). Such credits may not be sold or traded for the
    purpose of compliance by another retail electric supplier.
        ``(g) Renewable Energy Credit Trading.--A Federal renewable energy
    credit, may be sold, transferred or exchanged by the entity to whom
    issued or by any other entity who acquires the Federal renewable energy
    credit, except for those renewable energy credits from existing
    facilities. A Federal renewable energy credit for any year that is not
    submitted to satisfy the minimum renewable generation requirement of
    subsection (c) for that year may be carried forward for use pursuant to
    subsection (b)(1) within the next 3 years.
        ``(h) Renewable Energy Credit Borrowing.--At any time before the
    end of calendar year 2012, a retail electric supplier that has reason
    to believe it will not be able to fully comply with subsection (b)
    may--
                ``(1) submit a plan to the Secretary demonstrating that the
            retail electric supplier will earn sufficient Federal renewable
            energy credits within the next 3 calendar years which, when
            taken into account, will enable the retail electric supplier to
            meet the requirements of subsection (b) for calendar year 2012
            and the subsequent calendar years involved; and
                ``(2) upon the approval of the plan by the Secretary, apply
            Federal renewable energy credits that the plan demonstrates
            will be earned within the next 3 calendar years to meet the
            requirements of subsection (b) for each calendar year involved.
    The retail electric supplier must repay all of the borrowed Federal
    renewable energy credits by submitting an equivalent number of Federal
    renewable energy credits, in addition to those otherwise required under
    subsection (b), by calendar year 2020 or any earlier deadlines
    specified in the approved plan. Failure to repay the borrowed Federal
    renewable energy credits shall subject the retail electric supplier to
    civil penalties under subsection (i) for violation of the requirements
    of subsection (b) for each calendar year involved.
        ``(i) Energy Efficiency Credits.--
                ``(1) Definitions.--In this subsection--
                        ``(A) Customer facility savings.--The term
                    `customer facility savings' means a reduction in end-
                    use electricity at a facility of an end-use consumer of
                    electricity served by a retail electric supplier, as
                    compared to--
                                ``(i) consumption at the facility during a
                            base year;
                                ``(ii) in the case of new equipment
                            (regardless of whether the new equipment
                            replaces existing equipment at the end of the
                            useful life of the existing equipment),
                            consumption by the new equipment of average
                            efficiency; or
                                ``(iii) in the case of a new facility,
                            consumption at a reference facility.
                        ``(B) Electricity savings.--The term `electricity
                    savings' means--
                                ``(i) customer facility savings of
                            electricity consumption adjusted to reflect any
                            associated increase in fuel consumption at the
                            facility;
                                ``(ii) reductions in distribution system
                            losses of electricity achieved by a retail
                            electricity distributor, as compared to losses
                            attributable to new or replacement distribution
                            system equipment of average efficiency (as
                            defined by the Secretary by regulation);
                                ``(iii) the output of new combined heat and
                            power systems, to the extent provided under
                            paragraph (5); and
                                ``(iv) recycled energy savings.
                        ``(C) Qualifying electricity savings.--The term
                    `qualifying electricity savings' means electricity
                    saving that meet the measurement and verification
                    requirements of paragraph (4).
                        ``(D) Recycled energy savings.--The term `recycled
                    energy savings' means a reduction in electricity
                    consumption that is attributable to electrical or
                    mechanical power, or both, produced by modifying an
                    industrial or commercial system that was in operation
                    before July 1, 2007, in order to recapture energy that
                    would otherwise be wasted.
                ``(2) Petition.--The Governor of a State may petition the
            Secretary to allow up to 25 percent of the requirements of a
            retail electric supplier under subsection (c) in the State to
            be met by submitting Federal energy efficiency credits issued
            pursuant to this subsection.
                ``(3) Issuance of credits.--
                        ``(A) The Secretary shall issue energy efficiency
                    credits in States described in paragraph (2) in
                    accordance with this subsection.
                        ``(B) In accordance with regulations promulgated by
                    the Secretary, the Secretary shall issue credits for--
                                ``(i) qualified electricity savings
                            achieved by a retail electric supplier in a
                            calendar year; and
                                ``(ii) qualified electricity savings
                            achieved by other entities (including State
                            agencies) if--
                                        ``(I) the measures used to achieve
                                    the qualifying electricity savings were
                                    installed or place in operation by the
                                    entity seeking the credit or the
                                    designated agent of the entity; and
                                        ``(II) no retail electric supplier
                                    paid a substantial portion of the cost
                                    of achieving the qualified electricity
                                    savings (unless the utility has waived
                                    any entitlement to the credit).
                ``(4) Measurement and verification of electricity
            savings.--Not later than June 30, 2009, the Secretary shall
            promulgate regulations regarding the measurement and
            verification of electricity savings under this subsection,
            including regulations covering--
                        ``(A) procedures and standards for defining and
                    measuring electricity savings that will be eligible to
                    receive credits under paragraph (3), which shall--
                                ``(i) specify the types of energy
                            efficiency and energy conservation that will be
                            eligible for the credits;
                                ``(ii) require that energy consumption for
                            customer facilities or portions of facilities
                            in the applicable base and current years be
                            adjusted, as appropriate, to account for
                            changes in weather, level of production, and
                            building area;
                                ``(iii) account for the useful life of
                            electricity savings measures;
                                ``(iv) include specified electricity
                            savings values for specific, commonly-used
                            efficiency measures;
                                ``(v) specify the extent to which
                            electricity savings attributable to measures
                            carried out before the date of enactment of
                            this section are eligible to receive credits
                            under this subsection; and
                                ``(vi) exclude electricity savings that (I)
                            are not properly attributable to measures
                            carried out by the entity seeking the credit;
                            or (II) have already been credited under this
                            section to another entity;
                        ``(B) procedures and standards for third-party
                    verification of reported electricity savings; and
                        ``(C) such requirements for information, reports,
                    and access to facilities as may be necessary to carry
                    out this subsection.
                ``(5) Combined heat and power.--Under regulations
            promulgated by the Secretary, the increment of electricity
            output of a new combined heat and power system that is
            attributable to the higher efficiency of the combined system
            (as compared to the efficiency of separate production of the
            electric and thermal outputs), shall be considered electricity
            savings under this subsection.
                ``(6) State delegation.--On application of the Governor of
            a State, the Secretary may delegate to the State the
            administration of this subsection in the State if the Secretary
            determines that the State is willing and able to carry out the
            functions described in this subsection.
        ``(j) Enforcement.--A retail electric supplier that does not comply
    with subsection (b) shall be liable for the payment of a civil penalty.
    That penalty shall be calculated on the basis of the number of
    kilowatt-hours represented by the retail electric supplier's failure to
    comply with subsection (b), multiplied by the lesser of 4.5 cents
    (adjusted for inflation for such calendar year, based on the Gross
    Domestic Product Implicit Price Deflator) or 300 percent of the average
    market value of Federal renewable energy credits and energy efficiency
    credits for the compliance period. Any such penalty shall be due and
    payable without demand to the Secretary as provided in the regulations
    issued under subsection (e).
        ``(k) Alternative Compliance Payments.--The Secretary shall accept
    payment equal to 200 percent of the average market value of Federal
    renewable energy credits and Federal energy efficiency credits for the
    applicable compliance period or 3.0 cents per kilowatt hour adjusted on
    January 1 of each year following calendar year 2006 based on the Gross
    Domestic Product Implicit Price Deflator, as a means of compliance
    under subsection (b)(4).
        ``(l) Information Collection.--The Secretary may collect the
    information necessary to verify and audit--
                ``(1) the annual renewable energy generation of any retail
            electric supplier, Federal renewable energy credits submitted
            by a retail electric supplier pursuant to subsection (b)(1) and
            Federal energy efficiency credits;
                ``(2) annual electricity savings achieved pursuant to
            subsection (i);
                ``(3) the validity of Federal renewable energy credits
            submitted for compliance by a retail electric supplier to the
            Secretary; and
                ``(4) the quantity of electricity sales of all retail
            electric suppliers.
        ``(m) Environmental Savings Clause.--Incremental hydropower shall
    be subject to all applicable environmental laws and licensing and
    regulatory requirements.
        ``(n) State Programs.--(1) Nothing in this section diminishes any
    authority of a State or political subdivision of a State to--
        ``(A) adopt or enforce any law or regulation respecting renewable
    energy or energy efficiency, including but not limited to programs that
    exceed the required amount of renewable energy or energy efficiency
    under this section, or
        ``(B) regulate the acquisition and disposition of Federal renewable
    energy credits and Federal energy efficiency credits by electric
    suppliers.
    No law or regulation referred to in subparagraph (A) shall relieve any
    person of any requirement otherwise applicable under this section. The
    Secretary, in consultation with States having renewable energy programs
    and energy efficiency programs, shall preserve the integrity of such
    State programs, including programs that exceed the required amount of
    renewable energy and energy efficiency under this section, and shall
    facilitate coordination between the Federal program and State programs.
        ``(2) In the rule establishing the program under this section, the
    Secretary shall incorporate common elements of existing renewable
    energy and energy efficiency programs, including State programs, to
    ensure administrative ease, market transparency and effective
    enforcement. The Secretary shall work with the States to minimize
    administrative burdens and costs to retail electric suppliers.
        ``(o) Recovery of Costs.--An electric utility whose sales of
    electric energy are subject to rate regulation, including any utility
    whose rates are regulated by the Commission and any State regulated
    electric utility, shall not be denied the opportunity to recover the
    full amount of the prudently incurred incremental cost of renewable
    energy and energy efficiency obtained to comply with the requirements
    of subsection (b). For purposes of this subsection, the definitions in
    section 3 of this Act shall apply to the terms electric utility, State
    regulated electric utility, State agency, Commission, and State
    regulatory authority.
        ``(p) Program Review.--The Secretary shall enter into a contract
    with the National Academy of Sciences to conduct a comprehensive
    evaluation of all aspects of the program established under this
    section, within 8 years of enactment of this section. The study shall
    include an evaluation of--
                ``(1) the effectiveness of the program in increasing the
            market penetration and lowering the cost of the eligible
            renewable energy and energy efficiency technologies;
                ``(2) the opportunities for any additional technologies and
            sources of renewable energy and energy efficiency emerging
            since enactment of this section;
                ``(3) the impact on the regional diversity and reliability
            of supply sources, including the power quality benefits of
            distributed generation;
                ``(4) the regional resource development relative to
            renewable potential and reasons for any under investment in
            renewable resources; and
                ``(5) the net cost/benefit of the renewable portfolio
            standard to the national and State economies, including retail
            power costs, economic development benefits of investment,
            avoided costs related to environmental and congestion
            mitigation investments that would otherwise have been required,
            impact on natural gas demand and price, effectiveness of green
            marketing programs at reducing the cost of renewable resources.
    The Secretary shall transmit the results of the evaluation and any
    recommendations for modifications and improvements to the program to
    Congress not later than January 1, 2016.
        ``(q) State Renewable Energy and Energy Efficiency Account
    Program.--(1) The Secretary shall establish, not later than December
    31, 2009, a State renewable energy account program.
        ``(2) All money collected by the Secretary from the alternative
    compliance payments under subsection (k) shall be deposited into the
    State renewable energy and energy efficiency account established
    pursuant to this subsection.
        ``(3) Proceeds deposited in the State renewable energy and energy
    efficiency account shall be used by the Secretary, subject to annual
    appropriations, for a program to provide grants to the State agency
    responsible for administering a fund to promote renewable energy
    generation and energy efficiency for customers of the state, or an
    alternative agency designated by the state, or if no such agency
    exists, to the state agency developing State energy conservation plans
    under section 363 of the Energy Policy and Conservation Act (42 U.S.C.
    6322) for the purposes of promoting renewable energy production and
    providing energy assistance and weatherization services to low-income
    consumers.
        ``(4) The Secretary may issue guidelines and criteria for grants
    awarded under this subsection. At least 75 percent of the funds
    provided to each State shall be used for promoting renewable energy
    production and energy efficiency through grants, production incentives
    or other state-approved funding mechanisms. The funds shall be
    allocated to the States on the basis of retail electric sales subject
    to the Renewable Portfolio Standard under this section or through
    voluntary participation. State agencies receiving grants under this
    section shall maintain such records and evidence of compliance as the
    Secretary may require.''.
        (b) Table of Contents.--The table of contents for such title is
    amended by adding the following new item at the end:

    ``Sec. 610. Federal renewable portfolio standard''.
        (c) Sunset.--Section 610 of such title and the item relating to
    such section 610 in the table of contents for such title are each
    repealed as of December 31, 2039.

                  Subtitle I--Large and Small Scale Hydropower

    SEC. 9621. SENSE OF CONGRESS.

        Congress recognizes and supports renewable energy. Specifically,
    the clean, consistent, pollution free large and small scale
    conventional hydropower energy.

      DIVISION B--RENEWABLE ENERGY AND ENERGY CONSERVATION TAX ACT OF 2007

    SEC. 10001. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

        (a) Short Title.--This division 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 division 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 for this division is
    as follows:

    Sec. 10001. Short title; amendment of 1986 Code; table of contents.
                        TITLE XI--PRODUCTION INCENTIVES

    Sec. 11001. Extension and modification of renewable energy credit.
    Sec. 11002. Production credit for electricity produced from marine
                                renewables.
    Sec. 11003. Extension and modification of energy credit.
    Sec. 11004. New clean renewable energy bonds.
    Sec. 11005. Extension and modification of special rule to implement
                                FERC and State electric restructuring
                                policy.
    Sec. 11006. Repeal of dollar limitation and allowance against
                                alternative minimum tax for residential
                                solar and fuel cell property credit.
                            TITLE XII--CONSERVATION

                           Subtitle A--Transportation

    Sec. 12001. Credit for plug-in hybrid vehicles.
    Sec. 12002. Extension and modification of alternative fuel vehicle
                                refueling property credit.
    Sec. 12003. Extension and modification of credits for biodiesel and
                                renewable diesel.
    Sec. 12004. Credit for production of cellulosic alcohol.
    Sec. 12005. Extension of transportation fringe benefit to bicycle
                                commuters.
    Sec. 12006. Modification of limitation on automobile depreciation.
    Sec. 12007. Restructuring of New York Liberty Zone tax credits.
                   Subtitle B--Other Conservation Provisions

    Sec. 12011. Qualified energy conservation bonds.
    Sec. 12012. Qualified residential energy efficiency assistance bonds.
    Sec. 12013. Extension of energy efficient commercial buildings
                                deduction.
    Sec. 12014. Modifications of energy efficient appliance credit for
                                appliances produced after 2007.
    Sec. 12015. Five-year applicable recovery period for depreciation of
                                qualified energy management devices.
                         TITLE XIII--REVENUE PROVISIONS

                 Subtitle A--Denial of Oil and Gas Tax Benefits

    Sec. 13001. Denial of deduction for income attributable to domestic
                                production of oil, natural gas, or primary
                                products thereof.
    Sec. 13002. 7-year amortization of geological and geophysical
                                expenditures for certain major integrated
                                oil companies.
    Sec. 13003. Clarification of determination of foreign oil and gas
                                extraction income.
       Subtitle B--Clarification of Eligibility for Certain Fuel Credits

    Sec. 13011. Clarification of eligibility for renewable diesel credit.
    Sec. 13012. Clarification that credits for fuel are designed to provide
                                an incentive for United States production.
                          TITLE XIV--OTHER PROVISIONS

                              Subtitle A--Studies

    Sec. 14001. Carbon audit of the tax code.
    Sec. 14002. Comprehensive study of biofuels.
    Subtitle B--Application of Certain Labor Standards on Projects Financed
                             Under Tax Credit Bonds

    Sec. 14011. Application of certain labor standards on projects financed
                                under tax credit bonds.

                        TITLE XI--PRODUCTION INCENTIVES

    SEC. 11001. 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. 11002. 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. 11003. 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. 11004. 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. 11005. 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. 11006. 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.

                            TITLE XII--CONSERVATION

                           Subtitle A--Transportation

    SEC. 12001. 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. 12002. 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. 12003. 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. 12004. 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. 12005. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE
                  COMMUTERS.

        (a) In General.--Paragraph (1) of section 132(f) of the Internal
    Revenue Code of 1986 (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) of
    such Code 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) of such Code
    (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. 12006. MODIFICATION OF LIMITATION ON AUTOMOBILE DEPRECIATION.

        (a) In General.--Paragraph (5) of section 280F(d) of the Internal
    Revenue Code of 1986 (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) of such Code (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. 12007. 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.

                   Subtitle B--Other Conservation Provisions

    SEC. 12011. QUALIFIED ENERGY CONSERVATION BONDS.

        (a) In General.--Subpart I of part IV of subchapter A of chapter 1,
    as added by section 104, 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
            104, 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 104, 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. 12012. 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
            104 and amended by section 211, 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 104 and amended by section 211, 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. 12013. 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. 12014. 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 section, 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. 12015. 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.

                         TITLE XIII--REVENUE PROVISIONS

                 Subtitle A--Denial of Oil and Gas Tax Benefits

    SEC. 13001. 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. 13002. 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. 13003. 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.

       Subtitle B--Clarification of Eligibility for Certain Fuel Credits

    SEC. 13011. 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. 13012. 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 311, 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.

                          TITLE XIV--OTHER PROVISIONS

                              Subtitle A--Studies

    SEC. 14001. 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. 14002. 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.

    Subtitle B--Application of Certain Labor Standards on Projects Financed
                             Under Tax Credit Bonds

    SEC. 14011. 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).

                Passed the House of Representatives August 4, 2007.

                Attest:

                                                                     Clerk.
    110th CONGRESS

      1st Session

                                   H. R. 3221

    _______________________________________________________________________

                                     AN ACT

        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,
         and to amend the Internal Revenue Code of 1986 to provide tax
         incentives for the production of renewable energy and energy
                                 conservation.