[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3236 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3236

                 To promote greater energy efficiency.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2007

  Mr. Boucher (for himself and Mr. Dingell) introduced the following 
 bill; which was referred to the Committee on Energy and Commerce, and 
in addition to the Committees on Transportation and Infrastructure and 
   Oversight and Government Reform, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
                 To promote greater energy efficiency.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Efficiency 
Improvement Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                  TITLE I--PROMOTING ENERGY EFFICIENCY

                    Subtitle A--Appliance Efficiency

Sec. 101. Energy standards for home appliances.
Sec. 102. Electric motor efficiency standards.
Sec. 103. Residential boilers.
Sec. 104. Regional variations in heating or cooling standards.
Sec. 105. Procedure for prescribing new or amended standards.
Sec. 106. Expediting Appliance Standards Rulemakings.
Sec. 107. Correction of large air conditioner rule issuance constraint.
Sec. 108. Definition of energy conservation standard.
Sec. 109. Improving schedule for standards updating and clarifying 
                            State authority.
Sec. 110. Updating appliance test procedures.
Sec. 111. Furnace fan standard process.
Sec. 112. Technical corrections.
Sec. 113. Energy efficient standby power devices.
Sec. 114. External power supply efficiency standards.
Sec. 115. Standby mode.
                    Subtitle B--Lighting Efficiency

Sec. 121. Efficient light bulbs.
Sec. 122. Incandescent reflector lamps.
Sec. 123. Use of energy efficient lighting fixtures and bulbs.
              Subtitle C--Residential Building Efficiency

Sec. 131. Encouraging stronger building codes.
Sec. 132. Energy code improvements applicable to manufactured housing.
Sec. 133. Baseline building designs.
Sec. 134. Reauthorization of weatherization assistance program.
         Subtitle D--Commercial and Federal Building Efficiency

Sec. 141. Definitions.
Sec. 142. High-performance green buildings.
Sec. 143. Zero-energy commercial buildings initiative.
Sec. 144. Public outreach.
Sec. 145. Budget and life-cycle costing and contracting.
Sec. 146. Incentives.
Sec. 147. Federal procurement.
Sec. 148. Use of energy and water efficiency measures in Federal 
                            buildings.
Sec. 149. Demonstration project.
Sec. 150. Energy efficiency for data center buildings.
Sec. 151. Authorization of appropriations.
Sec. 152. Study and report on use of power management software.
                Subtitle E--Industrial Energy Efficiency

Sec. 161. Industrial energy efficiency.
          Subtitle F--Energy Efficiency of Public Institutions

Sec. 171. Short title.
Sec. 172. Findings.
Sec. 173. Definitions.
Sec. 174. Technical Assistance Program.
Sec. 175. Revolving Fund.
Sec. 176. Reauthorization of State energy programs.
           Subtitle G--Energy Savings Performance Contracting

Sec. 181. Definition of energy savings.
Sec. 182. Financing flexibility.
Sec. 183. Authority to enter into contracts; reports.
Sec. 184. Permanent reauthorization.
Sec. 185. Training Federal contracting officers to negotiate energy 
                            efficiency contracts.
Sec. 186. Promoting long-term energy savings performance contracts and 
                            verifying savings.
     Subtitle H--Advisory Committee on Energy Efficiency Financing

Sec. 189. Advisory committee.
           Subtitle I--Energy Efficiency Block Grant Program

Sec. 191. Definitions.
Sec. 192. Establishment of program.
Sec. 193. Allocations.
Sec. 194. Eligible activities.
Sec. 195. Requirements.
Sec. 196. Review and evaluation.
Sec. 197. Technical Assistance and Education Program.
Sec. 198. Authorization of appropriations.
          Subtitle J--Green Buildings Retrofit Loan Guarantees

Sec. 199. Green buildings retrofit loan guarantees.

                  TITLE I--PROMOTING ENERGY EFFICIENCY

                    Subtitle A--Appliance Efficiency

SEC. 101. ENERGY STANDARDS FOR HOME APPLIANCES.

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


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

            (2) Residential clotheswashers and residential 
        dishwashers.--Section 325(g) (42 U.S.C. 6295(g)) is amended by 
        adding at the end the following new paragraphs:
    ``(9) Clotheswashers manufactured on or after January 1, 2011, 
shall have--
            ``(A) a Modified Energy Factor of at least 1.26; and
            ``(B) a water factor of not more than 9.5.
    ``(10) No later than December 31, 2011, the Secretary shall publish 
a final rule determining whether to amend the standards in effect for 
clotheswashers manufactured on or after January 1, 2015. Such rule 
shall contain such amendment, if any.
    ``(11) Dishwashers manufactured on or after January 1, 2010, 
shall--
            ``(A) for standard size dishwashers not exceed 355 kwh/year 
        and 6.5 gallon per cycle; and
            ``(B) for compact size dishwashers not exceed 260 kwh/year 
        and 4.5 gallons per cycle.
    ``(12) No later than January 1, 2015, the Secretary shall publish a 
final rule determining whether to amend the standards for dishwashers 
manufactured on or after January 1, 2018. Such rule shall contain such 
amendment, if any.''.
            (3) Energy conservation standard.--Section 321(6)(A) (42 
        U.S.C. 6291(6)(A)) is amended by striking ``or, in the case 
        of'' and inserting ``and, in the case of residential 
        clotheswashers, residential dishwashers,''.
            (4) 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. 102. 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 
        [short title].
    ``(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.--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 [short title], 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 [short title], 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 
[short title], 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 [short title], shall have a nominal full load efficiency not 
less than as defined in NEMA MG-1 (2006) Table 12-11.''.

SEC. 103. RESIDENTIAL BOILERS.

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


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

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

SEC. 104. 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. 105. 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. 106. 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 (5) as follows:
            ``(5) 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. 107. 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 paragraph (6)(A)(i), by striking ``January 1, 
        2010,'' and inserting ``October 24, 1992'';
            (4) in paragraph (6)(A)(ii)--
                    (A) by striking ``5'' and inserting ``2''; and
                    (B) by striking ``the effective date of a 
                standard'' and inserting ``January 10, 2010, or 
                beginning on the effective date of the most recent 
                revision made under clause (i) of this subparagraph,''; 
                and
                    (C) by adding the following new clause at the end:
    ``(iii) The Secretary may only initiate a rulemaking under clause 
(ii) of this subparagraph for a particular product so long as any 
standard established under a previous rulemaking with respect to that 
product has become effective.'';
            (5) 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,'';
            (6) in paragraph (7)--
                    (A) by striking ``manufactured on or after January 
                1, 2010'';
                    (B) in each of subparagraphs (A), (B), and (C), by 
                adding at the beginning ``For equipment manufactured on 
                or after January 1, 2010,''; 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
            (7) by adding the following new paragraphs at the end:
    ``(10) 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.
    ``(11) 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. 108. 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(hh); 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. 109. 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. 110. 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--
            ``(B) 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
            ``(C) shall publish notice in the Federal Register of any 
        determination not to amend a test procedure''.

SEC. 111. FURNACE FAN STANDARD PROCESS.

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

SEC. 112. 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. 113. 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. 114. 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:
            ``(16) Test procedures for class A external power supplies 
        shall be based upon the U.S. Environmental Protection Agency's 
        `Test Method for Calculating the Energy Efficiency of Single-
        Voltage External AC-DC and AC-AC Power Supplies', August 11, 
        2004, provided that the test voltage specified in section 4(d) 
        of such test method shall be only 115 volts, 60 Hz.''.
    (c) Section 325 of the Energy Policy and Conservation Act (42 
U.S.C. 6295) is amended in subsection (u) by adding at the end the 
following:
            ``(6) Efficiency standards for class a external power 
        supplies.--
                    ``(A) Class A external power supplies manufactured 
                on or after July 1, 2008 (or the date of enactment of 
                this paragraph, if later) shall meet the following 
                standards:


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

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

SEC. 115. STANDBY MODE.

    (a) Consumer Appliance Requirement.--Section 325 of the Energy 
Policy and Conservation Act (42 U.S.C. 6295) is amended by adding at 
the end the following new subsection:
    ``(ii) Standby Mode.--
            ``(1) Requirement.--Except as provided in paragraph (2), 
        any final rule adopted after July 1, 2012, to set a new or 
        revised energy efficiency standard for a covered product shall 
        specify that a covered product manufactured on or after the 
        effective date of such new or revised standard shall, when in 
        standby mode, operate with not more than 1 watt of electric 
        power.
            ``(2) Exceptions.--
                    ``(A) Extensions.--The Secretary may provide a 
                single extension of up to 2 years for compliance with 
                paragraph (1) with respect to a covered product if the 
                Secretary finds that such extension is appropriate.
                    ``(B) Exemptions.--The Secretary may provide an 
                exemption from the requirement under paragraph (1) for 
                a covered product, after public notice and opportunity 
                for comment, if the Secretary finds that--
                            ``(i) achieving the requirement is not 
                        technologically feasible and economically 
                        justified for that covered product; or
                            ``(ii) such an exemption is warranted for 
                        medical or military reasons.
                Any exemption provided under this subparagraph shall be 
                reviewed at least once every 5 years.''.
    (b) Consumer Appliance Test Procedures.--Section 323(b) of the 
Energy Policy and Conservation Act (42 U.S.C. 6293(b)) is amended by 
adding at the end the following new paragraph:
    ``(17) Not later than July 1, 2009, the Secretary shall issue a 
final rule establishing test procedures for standby power consumption 
for all covered products, except for products for which the current 
test procedure already measures standby power consumption.''.
    (c) Repeal.--
            (1) In general.--Section 325(u) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6295(u)) is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date described in section 325(ii)(I) 
        of the Energy Policy and Conservation Act as, added by 
        subsection (a) of this section.
    (d) Industrial Equipment Requirement.--Section 342 of the Energy 
Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at 
the end the following new subsection:
    ``(f) Standby Power.--
            ``(1) Requirement.--Except as provided in paragraph (2), 
        any final rule adopted after July 1, 2012, to set a new or 
        revised energy efficiency standard for covered equipment shall 
        specify that covered equipment manufactured on or after the 
        effective date of such new or revised standard shall, when in 
        standby mode, operate with not more than 1 watt of electric 
        power.
            ``(2) Exceptions.--
                    ``(A) Extensions.--The Secretary may provide a 
                single extension of up to 5 years for compliance with 
                paragraph (1) with respect to a covered equipment if 
                the Secretary finds that such extension is appropriate.
                    ``(B) Exemptions.--The Secretary may provide an 
                exemption from the requirement under paragraph (1) for 
                covered equipment, after public notice and opportunity 
                for comment, if the Secretary finds that--
                            ``(i) achieving the requirement is not 
                        technologically feasible and economically 
                        justified for that covered equipment; or
                            ``(ii) such an exemption is warranted for 
                        medical or military reasons.
                Any exemption provided under this subparagraph shall be 
                reviewed at least once every 5 years.''.
    (e) Industrial Equipment Test Procedures.--Section 343(a) of the 
Energy Policy and Conservation Act (42 U.S.C. 6314(a)) is amended by 
adding at the end the following new paragraph:
    ``(9) Not later than July 1, 2009, the Secretary shall issue a 
final rule establishing test procedures for standby power consumption 
for all covered equipment, except for equipment for which the current 
test procedure already measures standby power consumption.''.

                    Subtitle B--Lighting Efficiency

SEC. 121. 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. 122. 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:
            ``(52) 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.
            ``(53)(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.
            ``(54)(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.
            ``(55) 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 [short 
                title].
                    ``(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. 123. 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.''.

              Subtitle C--Residential Building Efficiency

SEC. 131. ENCOURAGING STRONGER BUILDING CODES.

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

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

    ``(a) Updating National Model Building Energy Codes.--(1) The 
Secretary shall support updating the national model building energy 
codes and standards at least every three years to achieve overall 
energy savings, compared to the 2006 IECC for residential buildings and 
ASHRAE Standard 90.1-2004 for commercial buildings, of at least--
            ``(A) 30 percent by 2010;
            ``(B) 50 percent by 2020; and
            ``(C) targets to be set by the Secretary in intermediate 
        and subsequent years, at the maximum level of energy efficiency 
        that is technologically feasible and life-cycle cost effective.
    ``(2)(A) Whenever the provisions of the IECC or ASHRAE Standard 
90.1 regarding building energy use are revised, the Secretary shall, 
not later than 6 months after the date of such revision, determine--
            ``(i) whether such revision will improve energy efficiency 
        in buildings; and
            ``(ii) whether such revision will meet the targets under 
        paragraph (1).
    ``(B) If the Secretary makes a determination under subparagraph 
(A)(ii) that a code or standard does not meet the targets under 
paragraph (1), or if a national model code or standard is not updated 
for more than three years, then the Secretary shall within 12 months 
propose a modified code or standard that meets such targets. The 
modified code or standard shall serve as the baseline for the next 
determination under subparagraph (A)(i).
    ``(C) The Secretary shall provide the opportunity for public 
comment on targets, determinations, and modified codes and standards 
under this subsection, and shall publish notice of targets, 
determinations, and modified codes and standards under this subsection 
in the Federal Register.
    ``(b) State Certification of Building Energy Code Updates.--(1) Not 
later than 2 years after the date of enactment of the [short title], 
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. 132. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED HOUSING.

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

SEC. 133. 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. 134. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.

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

         Subtitle D--Commercial and Federal Building Efficiency

SEC. 141. DEFINITIONS.

    In this subtitle:
            (1) Consortium.--The term ``Consortium'' means the Green 
        Building Partnership Consortium created in response to section 
        142(c)(1) to represent the private sector in a Public-Private 
        Partnership to promote high-performance green buildings and 
        zero-net-energy commercial buildings.
            (2) Director.--The term ``Director'' means the individual 
        appointed to the position established under section 142(b).
            (3) Federal facility.--
                    (A) In general.--The term ``Federal facility'' 
                means any building or facility the intended use of 
                which requires the building or facility to be--
                            (i) accessible to the public; and
                            (ii) constructed or altered by or on behalf 
                        of the United States.
                    (B) Exclusions.--The term ``Federal facility'' does 
                not include a privately-owned residential or commercial 
                structure that is not leased by the Federal Government.
            (4) High-performance green building.--The term ``high-
        performance green building'' means a building that, during its 
        life-cycle--
                    (A) reduces energy, water, and material resource 
                use, and in the case of a new or renovated Federal 
                building, meets or exceeds the standards under section 
                305(a)(3) of the Energy Conservation and Production Act 
                (42 U.S.C. 6834(a)(3));
                    (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 Office 
                        considers to be appropriate.
            (5) 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 
        green building project and continuing through site selection, 
        design, construction, landscaping, commissioning, operation, 
        maintenance, renovation, deconstruction or demolition, removal, 
        and recycling of the green building.
            (6) 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.
            (7) 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.
            (8) Office.--The term ``Office'' means the Office of High-
        Performance Green Buildings established under section 142(a).
            (9) Practices.--The term ``practices'' mean design, 
        financing, permitting, construction, commissioning, operation 
        and maintenance, and other practices that contribute to 
        achieving zero-net-energy commercial buildings.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (11) Zero-net-energy.--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. 142. 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 
Office of Energy Efficiency and Renewable Energy an Office of High-
Performance Green Buildings.
    (b) Director.--
            (1) Appointment.--The Secretary shall appoint an individual 
        to serve as Director, a position in the career-reserved Senior 
        Executive service, to carry out duties as required under this 
        subtitle.
            (2) Compensation.--The compensation of the 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.
            (3) Duties.--The Director shall, with respect to Federal 
        facilities--
                    (A) identify and biennially reassess improved or 
                higher rating standards;
                    (B) identify and develop green building standards 
                that could be used for all types of Federal facilities;
                    (C) establish green practices that can be used 
                throughout the life of a Federal facility;
                    (D) review and analyze current Federal budget 
                practices and life-cycle costing issues, and make 
                recommendations to Congress, in accordance with section 
                145;
                    (E) identify 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;
                    (F) identify inconsistencies in Federal law with 
                respect to product acquisition guidelines for energy 
                efficient and environmentally preferable products;
                    (G) recommend actions to improve compliance by 
                Federal agencies with standards for environmentally 
                responsible acquisition;
                    (H) in coordination with the Office of Management 
                and Budget, review the budget process for capital 
                programs with respect to alternatives for--
                            (i) restructuring of budgets to require the 
                        use of complete energy- and environmental-cost 
                        accounting;
                            (ii) using operations expenditures in 
                        budget-related decisions while simultaneously 
                        incorporating productivity and health measures 
                        (as those measures can be quantified by the 
                        Office, with the assistance of universities and 
                        national laboratories);
                            (iii) 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
                            (iv) identifying short-term and long-term 
                        cost savings that accrue from high-performance 
                        green buildings, including those relating to 
                        health and productivity;
                    (I) identify green, self-sustaining technologies to 
                address the operational needs of Federal facilities in 
                times of national security emergencies, natural 
                disasters, or other dire emergencies;
                    (J) in consultation with the Environmental 
                Protection Agency, develop and implement a 
                comprehensive indoor air quality program for all 
                Federal facilities to ensure the safety of Federal 
                workers and facility occupants--
                            (i) during new construction and renovation 
                        of facilities; and
                            (ii) in existing facilities;
                    (K) implement the zero-energy commercial buildings 
                initiative under section 143; and
                    (L) perform such other functions as are assigned 
                under this subtitle.
            (4) Duties.--The Director shall, with respect to 
        development of high performance green buildings and zero-energy 
        commercial buildings throughout the economy--
                    (A) 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 counterparties 
                meeting the qualifications of the Consortium, to 
                further such development;
                    (B) represent the public and the Department of 
                Energy in negotiating and performing in accord with 
                such public-private partnerships; and
                    (C) use appropriated funds in an effective manner 
                to encourage the maximum investment of private funds to 
                achieve such development.
            (5) Reporting.--The 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 subtitle for both energy efficiency 
        and renewable energy and both technology development and 
        technology deployment.
            (6) Coordination.--The Director shall ensure full 
        coordination of high-performance green building information and 
        activities, including activities under this subtitle, within 
        the Federal Government by working with 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, particularly the 
                Federal Energy Management Program;
                    (E) the Department of Health and Human Services;
                    (F) the Department of Housing and Urban 
                Development;
                    (G) the Department of Defense;
                    (H) such other Federal agencies as the Director 
                considers to be appropriate; and
                    (I) such nonprofit green building rating and 
                analysis entities as the Director determines can offer 
                support, expertise, and review services.
    (c) Green Building Partnership Consortium.--
            (1) Recognition.--Not later than 90 days after the date of 
        enactment of this Act, the Director shall formally recognize 
        one or more groups that qualify as a 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 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 subtitle directly 
        to the Consortium or through one or more of its members.
    (d) Report.--Not later than 2 years after the date of enactment of 
this Act, and biennially thereafter, the Director, in consultation with 
the Consortium, shall submit to Congress a report that--
            (1) describes the status of the green building initiatives 
        under this subtitle and other Federal programs 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 subtitle; and
                    (B) the status of funding requests and 
                appropriations for those programs;
            (2) summarizes and highlights development, at the State and 
        local level, of green building initiatives, including executive 
        orders, policies, or laws adopted promoting green building 
        (including the status of implementation of those initiatives); 
        and
            (3) 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 paragraph 
        (1) of this subsection and subparagraphs (E) through (I) of 
        subsection (b)(3).

SEC. 143. ZERO-ENERGY COMMERCIAL BUILDINGS INITIATIVE.

    (a) Goal.--The 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 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.--
            (1) In general.--The 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.
            (2) Federal compliance with goal.--The Director, in 
        partnership with the Consortium, shall further identify and 
        adopt a strategy leading to zero-net-energy performance for all 
        Federal buildings in accordance with the adopted goal.
    (c) Initiative.--The 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 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; and
                    (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 Director determine are necessary to the success of the 
        initiative.

SEC. 144. PUBLIC OUTREACH.

    The 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 
        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) assisting the budget and life-cycle costing functions 
        of the Office under section 145;
            (11) studying and identifying potential benefits of green 
        buildings relating to security, natural disaster, and emergency 
        needs of the Federal Government; and
            (12) supporting other research initiatives determined by 
        the Office.

SEC. 145. BUDGET AND LIFE-CYCLE COSTING AND CONTRACTING.

    The Director, in coordination with the Consortium, 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 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 decision-making; 
        and
            (4) explore the feasibility of incorporating the benefits 
        of green buildings, such as security benefits, into a cost-
        budget analysis to aid in life-cycle costing for budget and 
        decision making processes.

SEC. 146. INCENTIVES.

    As soon as practicable after the date of enactment of this Act, the 
Director shall identify incentives to encourage the use of 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 green building initiatives.

SEC. 147. 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 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. 148. USE OF ENERGY AND WATER EFFICIENCY MEASURES 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 buildings and 
                facilities, including central utility plants and 
                distribution systems and other energy intensive 
                operations, comprising 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 retrofitting.--As part of 
                the evaluation under subparagraph (A) or on the same 
                schedule the energy manager shall recommission and 
                retrofit each such building and facility if 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).
                    ``(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 retrofitting 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.
            ``(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. 149. DEMONSTRATION PROJECT.

    (a) In General.--The Director shall establish guidelines to 
implement a demonstration project to contribute to the research goals 
of the Office.
    (b) Projects.--In accordance with guidelines established by the 
Director under subsection (a) and the duties of the Director described 
in this subtitle, the Director shall carry out--
            (1) for each of fiscal years 2009 through 2014, 1 
        demonstration project in a Federal building selected by the 
        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 subtitle; 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 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; 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 non-
                        quantifiable 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 
                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 ``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--
                            (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 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. 150. 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. 151. 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 subtitle--
            (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 143--
            (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; 
        and
            (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 149(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 149(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 150 $250,000 for each of the 
fiscal years 2008 through 2012.

SEC. 152. 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.

                Subtitle E--Industrial Energy Efficiency

SEC. 161. INDUSTRIAL ENERGY EFFICIENCY.

    (a) Amendment.--Title III of the Energy Conservation and Policy 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. Incentives for recovery, utilization and prevention of 
                            industrial waste energy.
``Sec. 375. Clean Energy Application Centers.''.

          Subtitle F--Energy Efficiency of Public Institutions

SEC. 171. SHORT TITLE.

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

SEC. 172. 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. 173. DEFINITIONS.

    For purposes of this subtitle--
            (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. 174. 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. 175. 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. 176. 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''.

           Subtitle G--Energy Savings Performance Contracting

SEC. 181. 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. 182. 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. 183. 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. 184. PERMANENT REAUTHORIZATION.

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

SEC. 185. 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. 186. 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 [short title].''.

     Subtitle H--Advisory Committee on Energy Efficiency Financing

SEC. 189. 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.

           Subtitle I--Energy Efficiency Block Grant Program

SEC. 191. DEFINITIONS.

    For purposes of this subtitle--
            (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. 192. ESTABLISHMENT OF PROGRAM.

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

SEC. 193. ALLOCATIONS.

    (a) In General.--Of the funds appropriated for making grants under 
this subtitle 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 subtitle, the Secretary shall publish in the Federal 
Register the formulas for allocation described in subsection (b)(1) and 
(b)(2).

SEC. 194. ELIGIBLE ACTIVITIES.

    Funds provided through a grant under this subtitle may be used for 
the following activities:
            (1) Development and implementation of an Energy Efficiency 
        Strategy under section 195.
            (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. 195. REQUIREMENTS.

    (a) Requirements for Eligible Units of Local Government.--
            (1) Proposed strategy.--Not later than 1 year after being 
        awarded a grant under this subtitle, 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 194. 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 subtitle.
            (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 subtitle, 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 subtitle;
                    (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 
        subtitle, 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 subtitle 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 subtitle, 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 subtitle to assist the State in the achievement of such 
        goals, consistent with section 194.
            (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 subtitle, 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 subtitle.

SEC. 196. 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 subtitle, including the misuse or 
        misappropriation of funds; or
            (2) the grant recipient's Strategy.

SEC. 197. 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. 198. AUTHORIZATION OF APPROPRIATIONS.

    (a) Grants.--There are authorized to be appropriated to the 
Secretary for grants under this subtitle, $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 subtitle--
            (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 J--Green Buildings Retrofit Loan Guarantees

SEC. 199. 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 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 Director.
    (c) Terms and Conditions.--
            (1) In general.--The Director shall make guarantees under 
        this section for projects on such terms and conditions as the 
        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 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 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 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 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 Director).
            (8) Defaults.--
                    (A) Payment by director.--
                            (i) In general.--If a borrower defaults on 
                        the obligation (as defined in regulations 
                        promulgated by the 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 Director.
                            (ii) Payment required.--Within such period 
                        as may be specified in the guarantee or related 
                        agreements, the 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 
                        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 
                        Director.
                    (B) Subrogation.--
                            (i) In general.--If the Director makes a 
                        payment under subparagraph (A), the 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 Director, to 
                                continue to pursue the purposes of the 
                                project if the Director determines this 
                                to be in the public interest.
                            (ii) Superiority of rights.--The rights of 
                        the 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 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 Director, to 
                                complete and operate the project.
                    (C) Payment of principal and interest by 
                director.--With respect to any obligation guaranteed 
                under this section, the 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 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 
                        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 
                        Director for the payment (including interest) 
                        on terms and conditions that are satisfactory 
                        to the Director.
                    (D) Action by attorney general.--
                            (i) Notification.--If the borrower defaults 
                        on an obligation, the 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 Director shall charge and 
                collect fees for guarantees in amounts the Director 
                determines are sufficient to cover applicable 
                administrative expenses.
                    (B) Availability.--Fees collected under this 
                paragraph shall--
                            (i) be deposited by the 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 
                Director shall prescribe by regulation, including such 
                records as the Director may require to facilitate an 
                effective audit.
                    (B) Access.--The 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.
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