[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3221 Placed on Calendar Senate (PCS)]
Calendar No. 340
110th CONGRESS
1st Session
H. R. 3221
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 4, 2007
Received and read the first time
September 5, 2007
Read the second time and placed on the calendar
_______________________________________________________________________
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:
LORRAINE C. MILLER,
Clerk.
By Jorge E. Sorenson,
Deputy Clerk.
Calendar No. 340
110th CONGRESS
1st Session
H. R. 3221
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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.
_______________________________________________________________________
September 5, 2007
Read the second time and placed on the calendar